05.11.2024
TAALERI PLC STOCK EXCHANGE RELEASE 5 NOVEMBER 2024 AT 8:00 (EET)
Taaleri Plc Interim Statement 1.1.–30.9.2024: Taaleri’s financial result was strong in the third quarter of the year
July–September 2024
- Continuing earnings decreased by 5.9% to EUR 9.7 (10.3) million. The Private Asset Management segment’s continuing earnings decreased by 5.4% to EUR 6.1 (6.5) million, and the Garantia segment’s continuing earnings decreased by 3.9% to EUR 3.3 (3.4) million.
- Performance fees were EUR 0.0 (0.0) million, and net income from investment operations was EUR 11.9 (2.8) million.
- Income increased by 65.0% to EUR 21.6 (13.1) million.
- Operating profit was EUR 14.7 (5.7) million, corresponding to 67.9% (43.5%) of income.
- Earnings per share were EUR 0.39 (0.16).
January–September 2024
- Continuing earnings grew by 0.3% to EUR 30.1 (30.0) million. The Private Asset Management segment’s continuing earnings grew by 2.3% to EUR 18.1 (17.7) million, while the Garantia segment’s continuing earnings decreased by 2.3% to EUR 10.5 (10.8) million.
- Performance fees were EUR 0.0 (1.5) million, and net income from investment operations was EUR 20.5 (17.2) million.
- Income increased by 3.9% to EUR 50.6 (48.7) million.
- Operating profit was EUR 28.6 (25.0) million, corresponding to 56.7% (51.4%) of income.
- The assets under management in the Private Asset Management segment remained at the level of the turn of the year at EUR 2.6 (31 December 2023: 2.6) billion.
- Earnings per share were EUR 0.76 (0.67).
This Interim Statement has not been prepared in accordance with IAS 34. The information presented is unaudited. Unless otherwise stated, the figures in parentheses in the Interim Statement refer to the corresponding period of the previous year. See page 21 for further information of the accounting policies of this Interim Statement.
Review by CEO Peter Ramsay
Taaleri Group’s third-quarter result was strong due to the recognised earn-out from last year’s sale of the renewable energy project development portfolio. Garantia’s net income from investment operations developed positively. We continued to systematically promote our strategy in a challenging operating environment.
Taaleri Group’s income amounted to EUR 21.6 million in the third quarter, increasing by 65% from the comparison period as a result of the recognition of the earn-out from the sale of the renewable energy project development portfolio in 2023. Continuing earnings decreased by 6% to EUR 9.7 million. The operating profit margin was excellent at 68%.
In the Private Asset Management segment, continuing earnings decreased by 5% to EUR 6.1 million, partly due to a non-recurring fee recorded for the renewable energy business in the comparison period. The management fees received from private equity funds increased as a result of the increase in fee-generating assets under management. Income, in turn, increased by 72% from the comparison period to EUR 14.4 million. The increase in income was due to the earn-out from the renewable energy project development portfolio recorded in the review period.
We promoted our strategy of internationalisation, which was reflected, for example, in investors from new geographical areas. The renewable energy business continued the fundraising for Taaleri SolarWind III Fund. In addition to capital raised in the third quarter, we received further commitments to the fund in October, which will bring the fund to EUR 470 million. Our goal is to raise EUR 700 million for the fund by the end of June next year. We will also continue the active development of the fund’s project development portfolio. In the third quarter of the year, the fund invested in a 154-megawatt wind power project in Serbia. Preparations to exit the Taaleri Wind II and Taaleri Wind III Funds continued during the third quarter.
We continue the value creation work in the existing investments of the Taaleri Bioindustry I Fund. Over one-third of the fund’s investment commitments have now been deployed, and the fund continues to actively source potential new investments. The bioindustry business has decided to discontinue preparations for the new venture capital fund and to refrain from launching it. The torrefied biomass plant in Joensuu will be completed during 2024, after which production can be launched in small batches and ramped up next year.
The real estate business continued to develop new products in the third quarter of the year. The expertise of the real estate team was strengthened. Our goal is to develop and launch new products next year. The real estate market remains soft, but simultaneously provides opportunities in real estate development.
Garantia’s insurance service result fell slightly in the third quarter to EUR 3.4 million from EUR 3.6 million in the comparison period due to the sluggish development of the housing market. The combined ratio, which measures the profitability of insurance operations, remained strong at 25.8%. Garantia’s net income from investment operations was EUR 3.5 million and the return on investment at fair value was 4.0% in the third quarter, mainly due to positive market developments and the transition towards the investment portfolio’s target allocation.
We continued taking long-term systematic operational actions in line with our strategy. Fundraising for our new and established funds is progressing, albeit at a slower pace than the original schedule. Creating value for our customers is at the heart of our operations now and in the future, as our industry’s outlook improves.
Key figures
|
Group key figures |
7–9/2024 |
7–9/2023 |
Change, % |
1–9/2024 |
1–9/2023 |
Change, % |
1–12/2023 |
|
Earnings key figures |
|
|
|
|
|
|
|
|
Continuing earnings, MEUR |
9.7 |
10.3 |
-5.9 |
30.1 |
30.0 |
0.3 |
39.9 |
|
Income, MEUR |
21.6 |
13.1 |
65.0 |
50.6 |
48.7 |
3.9 |
66.3 |
|
Operating profit, MEUR |
14.7 |
5.7 |
157.8 |
28.6 |
25.0 |
14.6 |
31.9 |
|
Operating profit, % |
67.9 |
43.5 |
|
56.7 |
51.4 |
|
48.1 |
|
Profit for the period, MEUR |
13.1 |
4.9 |
168.2 |
24.1 |
21.5 |
11.8 |
26.5 |
|
Return on equity, annualised % |
26.3 |
9.6 |
|
15.4 |
14.1 |
|
13.0 |
|
Balance sheet key figures |
|
|
|
|
|
|
|
|
Equity ratio, % |
68.7 |
67.7 |
|
68.7 |
67.7 |
|
67.8 |
|
Other key figures |
|
|
|
|
|
|
|
|
Cost/income ratio, % |
33.0 |
58.0 |
|
44.8 |
50.5 |
|
52.8 |
|
FTE (full-time equivalents), at the end of the period |
129 |
119 |
8.5 |
129 |
119 |
8.5 |
118 |
|
Assets under management in Private Asset Management segment, BEUR |
2.6 |
2.6 |
|
2.6 |
2.6 |
|
2.6 |
|
Guar anty insurance portfolio, BEUR |
1.7 |
1.8 |
|
1.7 |
1.8 |
|
1.7 |
Outlook and financial targets
Taaleri’s Taaleri’s business outlook for the current financial year is described below. The outlook is based on Taaleri’s understanding of business developments during the current financial year and in relation to the corresponding period.
Private Asset Management
Continuing earnings from the renewable energy business are expected to develop positively during the financial year 2024. The operating profit for 2024 will depend on, among other things, the net income from the investment operations and the revision of the estimated performance fees of the exit-phase funds Taaleri Wind II and Taaleri Wind III Funds, or their final amount, and on the timing of such exits. It is possible, that the exits will be postponed to the 2025 financial year.
According to Taaleri’s updated strategy, strong international growth is sought in Taaleri’s bioindustry, real estate and other businesses, which is reflected in the profitability of Other private asset management and the increase in the number of employees. Operating profit in Other private asset management is expected to be negative for 2024.
Garantia
Garantia’s continuing earnings are expected to fall slightly from the level of the corresponding period, in particular due to the development of the Finnish housing market. In an interest rate environment in line with market expectations, Garantia’s net income from investment operations is expected to develop positively compared to the corresponding period.
Other group
The income from the Other group in 2024 is heavily dependent on changes in the fair value of non-strategic investments, and final exits in particular. The cost level of Group operations is expected to remain at approximately the level of the corresponding period.
Long-term targets
Taaleri has set itself targets related to growth, return on invested capital and dividend payout. Taaleri’s long-term targets are:
- Growth in Group’s continuing earnings and performance fees at least 15 percent
- Return on equity at least 15 percent
- Dividend payout at least 50 percent of the FY profit.
Webcast presentation for analysts, investors and media
An analyst, investor and media conference will be held in English by CEO Peter Ramsay and CFO Ilkka Laurila today, 5 November 2024, at 11:00 am EET at Event Venue Eliel at Sanomatalo, Töölönlahdenkatu 2, Helsinki. The conference can be followed as a live webcast at https://taaleri.videosync.fi/q3-2024. The event will be recorded and available later on Taaleri's investor pages at www.taaleri.com/en/investors/reports-and-presentations.
Helsinki, 5 November 2024
Taaleri Plc
Board of Directors
For further information, please contact:
CEO Peter Ramsay, +358 50 343 7493, peter.ramsay@taaleri.com
CFO Ilkka Laurila, +358 40 076 1360, ilkka.laurila@taaleri.com
Director, Investor Relations and Communications Linda Tierala, +358 40 571 7895, linda.tierala@taaleri.com
Distribution:
Nasdaq Helsinki
Principal media
www.taaleri.com
This stock exchange release is a summary of Taaleri Plc’s Interim Statement for the period 1 January–30 September 2024. The complete report is attached to this release and also available at www.taaleri.com/en/investors/reports-and-presentations.
Taaleri in brief
Taaleri is a Nordic investment and asset manager that focuses on businesses with industrial-scale opportunities within bioindustry and renewable energy. We create value by combining extensive know-how, deep expertise, entrepreneurship and capital through both funds under management and direct investments. We have been a signatory of the UN Principles for Responsible Investment (UNPRI) since 2010, and we joined the Net Zero Asset Managers initiative in 2021. Taaleri’s vision is to become a leading investment manager operating internationally in bioindustry and renewable energy.
Taaleri has two business segments: Private Asset Management and Garantia. Private Asset Management consists of bioindustry, renewable energy and real estate businesses.
Taaleri has EUR 2.6 bn of assets under management in its private equity funds and co-investments. The company has approximately 130 employees. Taaleri Plc is listed on Nasdaq Helsinki.
Linda Tierala, Director, Investor Relations and Communications, +358 40 571 7895, linda.tierala@taaleri.com