30.03.2023
TAALERI PLC STOCK EXCHANGE RELEASE 30 MARCH 2023 AT 16:45 (EEST)
Taaleri publishes comparative financial information for 2022 according to the IFRS 17 standard
Taaleri has adopted the IFRS 17 Insurance Contracts standard and publishes adjusted comparative financial information about the Taaleri Group and its business segments from 2022.
Taaleri applies the IFRS 17 Insurance Contracts standard from January 1, 2023. The standard replaces the IFRS 4 standard. IFRS 17 standard is about valuing insurance and reinsurance contracts at fair value, based on the estimated cash flows and risks arising from the contracts. The application of the IFRS 17 standard is not expected to have a material effect on Taaleri's reported profitability nor a significant effect on the Group's equity. However, according to management's assessment, the implementation of the IFRS 17 standard will increase earnings volatility between the reporting periods.
Taaleri records the Insurance service result, as defined by IFRS 17 standard, in the Group's Total income both in the IFRS income statement and in segment reporting. According to IFRS 17 standard, the Insurance service result includes insurance revenue and insurance service expenses. In addition to incurred claims, insurance service expenses include, among other things, operating expenses incurred from insurance operations and losses on onerous contracts and reversal of those losses. When applying the IFRS 4 standard, operating expenses incurred from insurance operations have been presented below Total income, and losses on onerous contracts have been recognized in proportion to time. The implementation of IFRS 17 therefore has the effect of decreasing Taaleri Group's Total income and Other operating expenses.
The negative net difference of EUR 2.2 million, arising from the valuation of groups of insurance contracts at the time of transition has been retroactively recorded in Group’s equity on January 1, 2022, and Group’s income statement for 2022 has been restated to comply with the IFRS 17 standard. The implementation of the standard had an impact of EUR 0.0 million in Taaleri Group’s profit for the period of 2022. The Insurance liability measured according to IFRS 17 standard was at transition date, January 1, 2022, EUR 41.2 million.
The implementation of IFRS 17 standard has no effect on the Insurance investment assets.
Taaleri has described the most important transition effects in more detail in Note 2 of the Consolidated Financial Statements included in the 2022 Annual Report on page 79. Below is presented Taaleri Group's adjusted IFRS income statement for the period January 1–December 31, 2022, the adjusted IFRS balance sheet from the transition date January 1, 2022 and December 31, 2022, as well as adjusted Group result according to segment reporting for the period January 1–December 31, 2022. Taaleri Group's adjusted quarterly IFRS income statement for January 1–December 31, 2022 and adjusted business segment specific figures according to segment reporting quarterly and for the entire year January 1–December 31, 2022, are presented as attachments to this release.
Taaleri Group publishes the 2023 Consolidated Financial Statements applying the IFRS 17 standard. The 2023 Financial Statements include the opening balance sheet on January 1, 2022 and the changed accounting principles of the Consolidated Financial Statements. Management's judgement may change until then.
CHANGES TO THE TAALERI GROUP’S INCOME STATEMENT DUE TO THE IMPLEMENTATION OF IFRS 17 STANDARD
|
CONSOLIDATED INCOME STATEMENT EUR 1,000 |
Reported 2022 (audited) |
Change 2022 (unaudited) |
Adjusted 2022 (unaudited) |
|
|
CONTINUING OPERATIONS |
|
|||
|
Fee and commission income |
42,945 |
- |
42,945 |
|
|
Net income from insurance |
9,515 |
-4,275 |
5,240 |
|
|
Net income from guaranty insurance operations |
17,969 |
-17,969 |
- |
|
|
Insurance service result |
- |
14,102 |
14,102 |
|
|
Net finance expenses from insurance contracts |
- |
-409 |
-409 |
|
|
Net income from investment operations |
-8,453 |
- |
-8,453 |
|
|
Net gains or net losses on trading in securities and foreign currencies |
5,454 |
- |
5,454 |
|
|
Income from equity investments |
1,816 |
- |
1,816 |
|
|
Interest income |
1,139 |
- |
1,139 |
|
|
Other operating income |
159 |
-3 |
156 |
|
|
TOTAL INCOME |
61,030 |
-4,278 |
56,752 |
|
|
Fee and commission expense |
-10,035 |
187 |
-9,848 |
|
|
Administrative expenses |
||||
|
Personnel costs |
-16,593 |
2,096 |
-14,497 |
|
|
Other administrative expenses |
-6,076 |
1,303 |
-4,773 |
|
|
Depreciation, amortisation and impairment of tangible and intangible assets |
-1,203 |
10 |
-1,193 |
|
|
Other operating expenses |
-3,715 |
659 |
-3,056 |
|
|
Expected credit losses from financial assets measured at amortised cost |
166 |
- |
166 |
|
|
Share of associates' profit or loss |
3,797 |
- |
3,797 |
|
|
OPERATING PROFIT |
27,372 |
-24 |
27,347 |
|
|
Interest and other financing expense |
-953 |
- |
-953 |
|
|
Income tax expense |
-5,096 |
4 |
-5,092 |
|
|
PROFIT FROM CONTINUING OPERATIONS |
21,323 |
-20 |
21,302 |
|
|
|
|
|
||
|
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
|
|
|
|
|
Profit for the period |
21,323 |
-20 |
21,302 |
|
|
Items that may be reclassified to profit or loss |
||||
|
|
Translation differences |
42 |
- |
42 |
|
|
Changes in the fair value reserve |
-10,141 |
- |
-10,141 |
|
|
Income tax |
2,028 |
- |
2,028 |
|
Items that may be reclassified to profit or loss in total |
-8,071 |
- |
-8,071 |
|
|
Items that may not be reclassified to profit or loss |
||||
|
|
Changes in the fair value reserve |
-3,986 |
- |
-3,986 |
|
|
Income tax |
99 |
- |
99 |
|
Items that may not be reclassified to profit or loss in total |
-3,887 |
- |
-3,887 |
|
|
|
|
|||
|
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
9,364 |
-20 |
9,344 |
|
CHANGES TO THE TAALERI GROUP’S CONSOLIDATED BALANCE SHEET DUE TO THE IMPLEMENTATION OF IFRS 17 STANDARD
|
CONSOLIDATED BALANCE SHEET Assets, EUR 1,000 |
Reported 31.12.2021 (audited) |
Change 1.1.2022 (unaudited) |
Adjusted 1.1.2022 (unaudited) |
|
|
Receivables from credit institutions |
53,255 |
- |
53,255 |
|
|
Receivables from the public and general government |
6,021 |
- |
6,021 |
|
|
Shares and units |
41,546 |
- |
41,546 |
|
|
Assets classified as held for sale |
5,246 |
- |
5,246 |
|
|
Participating interests |
8,889 |
- |
8,889 |
|
|
Insurance assets |
168,973 |
-1,790 |
167,183 |
|
|
Insurance assets |
3,119 |
-3,119 |
- |
|
|
Reinsurance contract assets |
- |
1,329 |
1,329 |
|
|
Investments |
165,854 |
- |
165,854 |
|
|
Intangible assets |
711 |
- |
711 |
|
|
Goodwill |
696 |
- |
696 |
|
|
Other intangible assets |
15 |
- |
15 |
|
|
Tangible assets |
1,149 |
- |
1,149 |
|
|
Owner-occupied properties |
746 |
- |
746 |
|
|
Other tangible assets |
403 |
- |
403 |
|
|
Other assets |
13,669 |
5 |
13,674 |
|
|
Accrued income and prepayments |
16,921 |
- |
16,921 |
|
|
Deferred tax assets |
2,343 |
- |
2,343 |
|
|
|
318,723 |
-1,785 |
316,938 |
|
|
|
|
|
||
|
Liabilities, EUR 1,000 |
|
|
|
|
|
LIABILITIES |
88,975 |
368 |
89,344 |
|
|
Liabilities to the public and general government |
- |
- |
- |
|
|
Insurance liabilities |
39,421 |
-39,421 |
- |
|
|
Insurance contract liabilities |
- |
41,175 |
41,175 |
|
|
Other liabilities |
3,318 |
-416 |
2,902 |
|
|
Accrued expenses and deferred income |
14,172 |
-431 |
13,741 |
|
|
Deferred tax liabilities |
16,580 |
-538 |
16,042 |
|
|
Derivative contracts |
630 |
- |
630 |
|
|
Subordinated debt |
14,854 |
- |
14,854 |
|
|
|
||||
|
EQUITY CAPITAL |
229,747 |
-2,154 |
227,594 |
|
|
Share capital |
125 |
- |
125 |
|
|
Reserve for invested non-restricted equity |
18,831 |
- |
18,831 |
|
|
Fair value reserve |
-1,285 |
- |
-1,285 |
|
|
Translation difference |
-18 |
- |
-18 |
|
|
Retained earnings or loss |
76,694 |
-2,154 |
74,541 |
|
|
Profit or loss for the period |
136,088 |
- |
136,088 |
|
|
Non-controlling interest |
-687 |
- |
-687 |
|
|
|
318,723 |
-1,785 |
316,938 |
|
|
CONSOLIDATED BALANCE SHEET Assets, EUR 1,000 |
Reported 31.12.2022 (audited) |
Change 31.12.2022 (unaudited) |
Adjusted 31.12.2022 (unaudited) |
|
|
Receivables from credit institutions |
46,817 |
- |
46,817 |
|
|
Receivables from the public and general government |
6,243 |
- |
6,243 |
|
|
Shares and units |
44,462 |
- |
44,462 |
|
|
Assets classified as held for sale |
- |
- |
- |
|
|
Participating interests |
3,708 |
- |
3,708 |
|
|
Insurance assets |
153,898 |
-855 |
153,043 |
|
|
Insurance assets |
1,381 |
-1,381 |
- |
|
|
Reinsurance contract assets |
- |
526 |
526 |
|
|
Investments |
152,517 |
- |
152,517 |
|
|
Intangible assets |
355 |
- |
355 |
|
|
Goodwill |
347 |
- |
347 |
|
|
Other intangible assets |
8 |
- |
8 |
|
|
Tangible assets |
421 |
- |
421 |
|
|
Owner-occupied properties |
83 |
- |
83 |
|
|
Other tangible assets |
338 |
- |
338 |
|
|
Other assets |
13,206 |
4 |
13,210 |
|
|
Accrued income and prepayments |
28,510 |
-59 |
28,451 |
|
|
Deferred tax assets |
3,150 |
58 |
3,208 |
|
|
|
300,770 |
-852 |
299,918 |
|
|
|
|
|
||
|
Liabilities, EUR 1,000 |
|
|
|
|
|
LIABILITIES |
98,075 |
1,322 |
99,397 |
|
|
Liabilities to the public and general government |
410 |
- |
410 |
|
|
Insurance liabilities |
43,950 |
-43,950 |
- |
|
|
Insurance contract liabilities |
- |
46,544 |
46,544 |
|
|
Other liabilities |
1,749 |
-295 |
1,454 |
|
|
Accrued expenses and deferred income |
19,620 |
-435 |
19,185 |
|
|
Deferred tax liabilities |
17,476 |
-543 |
16,933 |
|
|
Derivative contracts |
- |
- |
- |
|
|
Subordinated debt |
14,870 |
- |
14,870 |
|
|
EQUITY CAPITAL |
202,695 |
-2,174 |
200,521 |
|
|
Share capital |
125 |
- |
125 |
|
|
Reserve for invested non-restricted equity |
18,831 |
- |
18,831 |
|
|
Fair value reserve |
-13,285 |
- |
-13,285 |
|
|
Translation difference |
23 |
- |
23 |
|
|
Retained earnings or loss |
176,785 |
-2,154 |
174,631 |
|
|
Profit or loss for the period |
20,617 |
-20 |
20,597 |
|
|
Non-controlling interest |
-400 |
- |
-400 |
|
|
|
300,770 |
-852 |
299,918 |
|
CHANGES TO THE TAALERI GROUP’S SEGMENT REPORTING DUE TO THE IMPLEMENTATION OF IFRS 17 STANDARD
| 1.1.-31.12.2022, EUR 1,000 |
Reported 2022 (audited) |
Change 2022 (unaudited) |
Adjusted 2022 (unaudited) |
|
Continuing earnings |
41,049 |
-4,279 |
36,770 |
|
Performance fees |
19,365 |
- |
19,365 |
|
Investment operations |
2,811 |
- |
2,812 |
|
Total income |
63,226 |
-4,278 |
58,947 |
|
Fee and commission expenses |
-8,876 |
187 |
-8,689 |
|
Personnel costs |
-16,197 |
2,164 |
-14,033 |
|
Direct expenses |
-10,401 |
1,891 |
-8,510 |
|
Depreciation, amortisation and impairment |
-407 |
12 |
-395 |
|
Impairment losses on loans and other receivables |
-17 |
- |
-17 |
|
Operating profit |
27,329 |
-24 |
27,304 |
|
Operating profit, % |
43.2% |
46.3% |
|
|
Interest expenses |
-916 |
- |
-916 |
|
Allocation of financing expenses |
- |
- |
- |
|
Profit before taxes and NCI |
26,412 |
-24 |
26,388 |
|
Change in fair value of investments |
-14,085 |
- |
-14,085 |
|
Profit before taxes and NCI at fair value |
12,327 |
-24 |
12,302 |
For further information, please contact:
CFO Minna Smedsten, +358 40 700 1738, minna.smedsten@taaleri.com
Attachments:
Taaleri Group's adjusted IFRS income statement quarterly for January 1–December 31, 2022
Taaleri Group's adjusted business segment specific figures according to segment reporting quarterly and for the entire financial year January 1–December 31, 2022
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 Investor Relations, Sustainability and Communications Siri Markula, +358 40 743 2177, siri.markula@taaleri.com
Attachments
- Adjusted IFRS income statement quarterly for 2022.pdf
- Adjusted business segment specific figures according to segment reporting quarterly for 2022.pdf