16.03.2021
TAALERI PLC STOCK EXCHANGE RELEASE 16 MARCH 2021 AT 8:15 EET
Taaleri revises its strategy and updates its long-term financial targets – growth driven by private equity funds focusing on renewable energy and other alternative investments
Taaleri has revised its strategy for 2021–2023 and updated its long-term financial targets. The goal of the strategy is to increase Taaleri’s assets under management to over EUR 3 billion in 2023. Growth will be driven by private equity funds focusing on renewable energy and other alternative investments. Taaleri’s vision is to be a Nordic forerunner in alternative investments focusing on sustainability.
“Our purpose is to channel capital to economically profitable undertakings that have a lasting positive impact on the environment and society. I think this is perfectly realised in our revised strategy. We use our private equity funds to create, for example, wind and solar power, biofuels and real estate,” says Robin Lindahl, CEO of Taaleri. “Our experience has taught us that sustainability and profitability thrive side by side.”
Our strategic priorities for 2021–2023 are:
1. We put impact and renewable energy at the heart of our operations
We are developing and expanding private equity funds that seek not only economic returns but also measurable benefits for the environment and society. We use our funds to create, among other things, wind and solar power, biofuels and real estate.
2. We seek to scale all our businesses
In our private equity funds, we aim to significantly increase the average size of funds and our assets under management, which will increase continuing earnings and improve the profitability of the funds. At Garantia Insurance Company Ltd, we will continue to promote a strategy based on a scalable business model, risk pooling and an extensive distribution network.
3. We are expanding the sales and distribution of our private equity funds
We are starting a strategic partnership with Aktia Bank Plc, which will open a significant distribution channel for our products. We are strengthening our own sales to major institutional clients and international investors. In addition, we are seeking new international distribution channels.
4. We optimise return on capital and balance sheet usage
We will increase the efficiency of our use of capital and distribute to shareholders the capital that the company does not need for growth investments or to fulfil its targets for solvency.
The implementation of Taaleri’s strategy is supported by our deep expertise and extensive experience in private equity funds focusing on alternative investments. The pillars of our strategy are:
- Diverse offering in impact and renewables: Unique product offering across multiple asset classes
- Integrated way of working: Strong track record in connecting capital, ideas, talent and entrepreneurship
- End-to-end expertise: Robust capabilities to develop, build, manage and exit investments
Taaleri’s long-term financial targets are:
- Growth in recurring revenues: at least 15% (unchanged)
- Operating profit: at least 25% (previously at least 20%)
- Return on equity: at least 15% (unchanged)
According to Taaleri’s updated dividend policy, the company’s objective is to distribute to shareholders at least 50 percent of the profit for the financial year, and the capital that the company does not need for growth investments or to fulfil its targets for solvency.
Taaleri is changing the reporting of its business segments to reflect the revised strategy. As of 1 January 2021, the Taaleri Group has two reporting business segments: Private Asset Management and Strategic Investments. The Private Asset Management segment includes the renewable energy, real estate, bioindustry and infrastructure businesses. The Strategic Investments segment includes Garantia Insurance Company Ltd. In addition, the Other group is used to present the Group’s non-strategic investments, Taaleri Kapitaali and Group operations not included in the business segments.
The regulation of Taaleri will change with the divestment of the wealth management business operations. Following the completion of the transaction, Taaleri will in its own view not be subject to the regulation of the investment services business, nor will Taaleri form a Financial and Insurance Conglomerate.
Taaleri will present its revised strategy in its Capital Markets Day live webcast on Tuesday, 23 March 2021. All the presentations of the day can be followed via a webcast at https://taaleri.videosync.fi/2021-03-23-capitalmarketsdaytaaleri.
Taaleri Plc
Board of Directors
For more information, please contact:
CEO Robin Lindahl, tel. 358 50 595 9616, robin.lindahl@taaleri.com
Please note:
The information presented in this stock exchange release is conditional on the completion of the sale of Taaleri’s wealth management business operations announced by Taaleri on 10 March 2021. Should the implementation not take place for any reason, the matters set out in this stock exchange release will not be implemented, and Taaleri will inform about the non-implementation and its effects on the matters set out in this stock exchange release.
Taaleri in brief
Taaleri is a Finnish financial services company, whose parent company, Taaleri Plc, is listed on Nasdaq Helsinki main market. At the end of 2020, Taaleri had assets under management totalling EUR 7.6 billion and over 6,000 wealth management customers. Taaleri Plc has some 6,000 shareholders. Taaleri’s operations are supervised by the Finnish Financial Supervisory Authority.
More information about our company and services:
www.taaleri.com/en
www.taalerivarainhoito.com/en
www.taalerienergia.com
www.taalerikapitaali.com/en
www.garantia.fi/en
Siri Markula, Head of Communications and IR, tel. 358 40 743 2177, siri.markula@taaleri.com