Future Outlook

Taaleri Plc announced 19 June that the year 2019 operating profit margin is estimated to be slightly lower than in 2018. The decrease is mainly due to the weakened continuing earnings of Wealth Management during the first half-year, and the realization of planned projects that has been postponed to the second half of 2019. 

Short-term risks and concerns 

The most significant external uncertainties affecting the Group’s operating profit are changes in the operating and regulatory environment and the development of the financial markets globally and especially in Finland.

The results of the Wealth Management and the Energia segments are influenced by the development of assets under management, which depends among other things on the progress of the private equity funds’ projects and the development of capital markets. Profit development is also influenced by the realization of performance fees, which are tied to the success of the investment operations. The Energia segment’s earnings are also affected by the success of its own investments in energy projects.

The Financing segment’s guaranty insurance business and investment activities have a major impact on Taaleri’s operational income and capital adequacy.

The Other Operations returns consist of the market value changes in investments and of sales profits/losses gained as well as returns of loans granted. The returns and income of the Other Operations may thus vary significantly between periods under review.

Long-term financial targets

Taaleri’s long-term operating profit target is at least 20 per cent of income, its long-term return-on-equity target is at least 15 per cent, and its long-term equity ratio target is at least 30 per cent. 

The company strives to increase the amount of dividend it distributes, and to annually distribute a competitive dividend, with consideration to the company’s financial and financing situation as well as the Group’s capital adequacy requirement.

Financial Statements Bulletin H1 2019