04.11.2022
TAALERI PLC STOCK EXCHANGE RELEASE 4 NOVEMBER 2022 AT 8:00 (EET)
Taaleri Plc Interim Statement 1 January–30 September 2022: Taaleri’s continuing earnings in the third quarter of the year grew by 14.2% and operating profit more than tripled due to a completed exit
July–September 2022
- Continuing earnings grew by 14.2% to EUR 10.5 (9.2) million. The Private Asset Management segment’s continuing earnings grew by 10.1% to EUR 5.3 (4.8) million and the Strategic Investments segment’s continuing earnings by 13.7% to EUR 4.4 (3.9) million.
- Performance fees were EUR 6.5 (0.0) million, and net income from investment operations was EUR 9.9 (3.1) million.
- Income more than doubled to EUR 26.9 (12.3) million as a result of performance fees and net income from investment operations.
- Operating profit more than tripled and was EUR 18.5 (4.9) million, corresponding to 68.6% of income.
- The assets under management in the Private Asset Management segment grew by 10.9% to EUR 2.5 (31 December 2021: 2.2) billion.
- Earnings per share were 0.53 (0.11) EUR.
January–September 2022
- Continuing earnings grew by 0.4% to EUR 29.4 (29.3) million. The Private Asset Management segment’s continuing earnings grew by 2.3% to EUR 15.0 (14.7) million, and the Strategic Investments segment’s continuing earnings grew by 2.1% to EUR 12.3 (12.1) million.
- Performance fees were EUR 7.0 (0.8) million, and net income from investment operations was EUR 9.5 (10.2) million.
- Income grew by 13.9% to EUR 45.9 (40.3) million.
- Operating profit was EUR 20.2 (16.1) million, corresponding to 44.1% of income.
- Earnings per share were 0.48 (4.38) EUR.
This Interim Statement has not been prepared in accordance with IAS 34. The Interim Statement is unaudited. Unless otherwise stated, the figures in parentheses in the Interim Statement refer to the corresponding period of the previous year. See page 19 of the Interim Statement for further information of the accounting policies.
REVIEW BY CEO PETER RAMSAY
In the third quarter of 2022, we continued to promote our strategy that focuses on renewable energy, real estate and bioindustry. Both the private asset management business and Garantia’s guaranty insurance operations developed well, and the Group’s continuing earnings increased by 14%. Our operating profit was EUR 18.5 million, corresponding to a profit margin of 67%. Operating profit was increased by a profit of EUR 14.0 million recognized from the sale of Ficolo Ltd and the related exit of Taaleri Datacenter Ky.
Operationally, we progressed according to plan in the third quarter despite the changes and uncertainties in the operating environment. Our strategy works well also in the current situation. Europe’s desire to break away from Russian gas, oil and coal will increase the demand for renewable energy and for bioindustry products, which in the long term will support our private asset management business.
The Private Asset Management segment’s continuing earnings grew by 10% and the operating profit grew by 56% to EUR 7.0 million due to the performance fee connected to the exit of Taaleri Datacenter Ky.
During the third quarter, the renewable energy business focused on advancing projects of the Taaleri SolarWind II fund that were in the construction phase and on preparations for the Taaleri SolarWind III fund announced yesterday. The fund is the seventh Taaleri product to comply with Article 9 of the EU Sustainable Finance Disclosure Regulation. The future project flow of SolarWind III is based on our project development portfolio, which included 17 projects at the end of the review period. Our goals for the new fund are ambitious: we are aiming to double the size of Taaleri SolarWind II, which was around EUR 350 million.
The real estate business carried out several acquisitions in the third quarter, both for Aktia’s special investment funds in its portfolio management and for the Taaleri Housing Fund VIII and Taaleri Rental Home funds, which invest in rental housing. In September, Taaleri Housing Fund VIII carried out a significant portfolio transaction worth approximately EUR 85 million for three residential properties.
The first fund of the bioindustry business, Taaleri Bioindustry I, reached a size of over EUR 100 million in its second round of funding and continues fundraising backed up by strong demand. The fund’s anchor investor, the Finnish Climate Fund, made an additional EUR 5 million investment in the fund in accordance with its option. The tall oil refinery of Taaleri’s associated company Fintoil, which is reported under bioindustry business, was opened in September, and its start of operations has proceeded as planned. The first batches of high-quality distilled tall oil have already been delivered to customers.
In the Strategic Investments segment, Garantia’s net income from insurance operations increased by 14% from the corresponding period to EUR 4.4 million. Garantia’s net income from investment operations recovered from the particularly weak previous quarter, and operating profit was EUR 4.3 million. Once again, the combined ratio describing the profitability of insurance operations was excellent at 29.0%.
Sustainable development is at the heart of Taaleri’s strategy. We are a pioneer among private asset management operators, as we already manage eight funds that comply with either Article 8 or Article 9 of the EU’s Sustainable Finance Disclosure Regulation (SFDR). This has required, and will continue to require, ambitious goals, strong sustainability expertise and a strong commitment to the sustainability of funds. We also signed the Net Zero Asset Managers (NZAM) initiative, in which we, both as a company and for our assets under management, commit to the goal of net zero greenhouse gas emissions by 2050 in accordance with the Paris Climate Agreement. Our interim target is to manage 75% of the assets under management in accordance with the initiative by 2030. We will report annually on our progress starting next year, and we will ambitiously assess opportunities to accelerate the timetable to reach our net zero target.
GROUP KEY FIGURES
|
Group key figures |
7–9/2022 |
7–9/2021 |
Change, % |
1–9/2022 |
1–9/2021 |
Change, % |
1–12/2021 |
|
Earnings key figures |
|
|
|
|
|
|
|
|
Continuing earnings, MEUR |
10.5 |
9.2 |
14.2 |
29.4 |
29.3 |
0.4 |
40.7 |
|
Income, MEUR |
26.9 |
12.3 |
118.7 |
45.9 |
40.3 |
13.9 |
69.7 |
|
Operating profit, MEUR |
18.5 |
4.9 |
280.7 |
20.2 |
16.1 |
25.4 |
30.8 |
|
Operating profit, % |
68.6 |
39.4 |
|
44.1 |
40.0 |
|
44.2 |
|
Profit for the period in consolidated income statement, MEUR |
15.4 |
3.2 |
>100.0 |
14.2 |
124.1 |
-88.5 |
136.1 |
|
Return on equity*, % |
32.5 |
5.8 |
|
8.9 |
93.7 |
|
75.0 |
|
Balance sheet key figures |
|
|
|
|
|
|
|
|
Equity ratio, % |
67.8 |
67.5 |
|
67.8 |
67.5 |
|
72.1 |
|
Other key figures |
|
|
|
|
|
|
|
|
Cost/income ratio excluding investment operations |
50.8 |
84.2 |
|
72.4 |
85.2 |
|
77.9 |
|
Cost/income ratio |
32.1 |
63.0 |
|
57.3 |
63.6 |
|
58.3 |
|
Full-time personnel in continuing operations, at the end of the period |
107 |
107 |
0.0 |
107 |
107 |
0.0 |
104 |
|
Assets under management in Private Asset Management segment, BEUR |
2.5 |
2.1 |
|
2.5 |
2.1 |
|
2.2 |
|
Guaranty insurance portfolio, BEUR |
1.8 |
1.7 |
|
1.8 |
1.7 |
|
1.7 |
*Annualised
OUTLOOK AND FINANCIAL TARGETS
Taaleri does not publish a short-term outlook. However, the company has set itself targets related to growth, profitability and return on invested capital.
Taaleri’s long-term targets include:
- Continuing earnings growth at least 15 per cent
- Operating profit at least 25 per cent of income
- Return on equity at least 15 per cent.
The company’s goal is to distribute to its shareholders at least 50 per cent of the profit for the financial year as well as the capital that the company does not need for growth investments or to fulfil its targets for solvency.
WEBCAST PRESENTATION FOR ANALYSTS, INVESTORS AND MEDIA
An analyst, investor and media conference will be held in English by CEO Peter Ramsay and CFO Minna Smedsten on November 4, 2022, at 11:30 EET at Hotel Kämp, Symposion room, Pohjoisesplanadi 29, Helsinki. The event is in English. The webcast can be followed online at: https://taaleri.videosync.fi/results-q3-2022. The event will be recorded and available later on Taaleri's investor pages at www.taaleri.com/investors/reports-and-presentations.
Helsinki, 4 November 2022
Taaleri Plc
Board of Directors
For further information, please contact:
CEO Peter Ramsay, +358 50 343 7493, peter.ramsay@taaleri.com
CFO Minna Smedsten, +358 40 700 1738, minna.smedsten@taaleri.com
Head of Communications and IR Siri Markula, +358 40 743 2177, siri.markula@taaleri.com
Distribution:
Nasdaq Helsinki
Key media
www.taaleri.com
Taaleri in brief
Taaleri is a Nordic investment and asset manager with an emphasis on renewable energy and other alternative investments. We channel capital towards economically profitable undertakings that have a lasting positive impact on the environment and society. We combine capital with talent, expertise, entrepreneurship, and a bold sense of purpose. We are 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 be a Nordic forerunner in alternative investments focusing on sustainability.
Taaleri has two business segments: Private Asset Management and Strategic Investments. Private Asset Management consists of renewable energy, real estate and bioindustry businesses. The Strategic Investments segment includes Garantia Insurance Company Ltd.
Taaleri has EUR 2.5 bn of assets under management in its private equity funds and co-investments. The company has approximately 120 employees. Taaleri Plc is listed on Nasdaq Helsinki.
Head of Communications and IR Siri Markula, +358 40 743 2177, siri.markula@taaleri.com