Taaleri Plc Interim Statement 1 January–31 March 2022: Taaleri’s
continuing earnings increased to EUR 9.3 million in Q1, but
unrealized changes in the fair value of investment operations
weighed on income and operating profit
TAALERI
PLC STOCK
EXCHANGE RELEASE 6
MAY 2022 AT 8:00 (EEST)
Taaleri Plc Interim Statement 1 January–31 March
2022: Taaleri’s
continuing earnings increased to EUR 9.3 million in Q1, but
unrealized changes in the fair value of investment operations
weighed on income and operating profit
January–March 2022
- Continuing earnings grew by 4.3% to
EUR 9.3 (8.9) million. The continuing earnings of the Private Asset
Management segment grew by 15.8% to EUR 4.9 (4.2) million, and the
continuing earnings of the Strategic Investments segment by 7.5% to
EUR 3.9 (3.6) million.
- Performance fees were EUR 0.5 (0.8)
million and earnings from investment operations were EUR -2.6 (4.0)
million due to changes in fair value.
- Income was EUR 7.2 (13.7) million, a
decrease of 47.6% due to unrealized changes in the fair value of
investment operations amounting EUR -2.8 (1.7) million.
- Operating profit was EUR -0.7 (5.8)
million.
- The assets under management in the
Private Asset Management segment grew by 1.5% to EUR 2.3
(31.12.2021: 2.2) billion.
- Earnings per share were EUR -0.05
(0.25).
The interim statement has not been prepared in accordance with
IAS 34. The interim statement is unaudited. See page 16 for further
information on the accounting policies of the interim
statement.
REVIEW BY CEO PETER RAMSAY
In the first quarter of 2022, we continued to advance our
strategy focusing on renewable energy, real estate and bioindustry.
Both the private asset management business and Garantia’s guaranty
insurance operations developed well, and operating profit excluding
investment operations was EUR 2.0 million, corresponding to a
profit margin of 20%. By contrast, changes in the fair value of the
Group’s investment operations weighed on the Group’s income and
operating profit. The decrease in the fair values of investments is
due to, among other things, the rise in interest rates, which has
affected the valuations of Garantia’s investment portfolio.
The Russian invasion of Ukraine and the resulting changed
geopolitical situation has not had a direct impact on our business.
Taaleri has no business operations or investments in Russia or
Ukraine. Europe’s desire to break away from Russian gas, oil and
coal will increase the demand for renewable energy, which will
support our private asset management business in the long term. At
the same time, the transition to renewable energy is reflected, for
example, in project development as tightening competition and
rising costs. We consider that our strong long-term investment in
our own project development improves our relative competitiveness
in this situation.
In spite of the geopolitical situation and the rise in interest
rates, we believe that demand for private equity funds will remain
strong, as they will allow investors to diversify risks and even
out returns. The country risk in Finland that was dreaded in the
early stages of the crisis in Ukraine does not seem to have
materialised so far. One indication of this was a transaction made
after the review period, in which Taaleri Datacenter Ky sold its
stake in Ficolo Ltd to a British company. Taaleri expects to record
profits of a total of approximately EUR 14 million from the
transaction on the co-investment it manages in the form of returns
and performance fees in the third quarter of the year.
In the Private Asset Management segment, operational activity
has strengthened from last year, and continuing earnings grew by
around 16% in the first quarter. During the review period, the
renewable energy business focused, for example, on advancing
projects of the Taaleri SolarWind II fund that were in the
construction phase. In addition, the building of the project
development portfolio started as planned and at the end of the
review period our portfolio already included 12 projects.
The real estate business carried out several transactions in
March. We successfully exited the Taaleri Daycare Properties fund
by selling the fund’s ten daycare properties to a Norwegian buyer.
In addition, we carried out four new investments in Aktia’s special
investment funds in the portfolio management of the real estate
business.
In the bioindustry business, the sale of the Taaleri Bioindustry
I private equity fund began in Aktia. During the review period, a
decision was made to invest in a torrefied biomass plant to be
built in Joensuu. The project will be implemented as a
co-investment. In addition, we made an investment in Nordtreat, a
company that produces environmentally friendly fire retardants,
which opens up investment opportunities for the private equity
fund.
In the Strategic Investments segment, Garantia’s guaranty
insurance operations continued to develop well. The net income from
the guaranty insurance operations grew from the corresponding
period by 7.4% to EUR 3.9 million, and the combined ratio
describing the profitability of insurance operations was excellent
at 31.3%. In particular, Garantia’s investment operations suffered
from rising interest rates and changes in risk premiums, but most
of the investment losses were unrealized changes in fair value.
During the first quarter, we completed the project on corporate
culture and values we started last year. Taaleri changed as a
company with the sale of the wealth management operations, so we
wanted to update our target culture and values into something that
supports the implementation of our strategy and our daily work in
the best possible way. Our three new values – With know-how, skills
and will, Dare to succeed and Support each other – give us an
excellent foundation from which to pursue our vision of being a
Nordic pioneer in alternative investments focusing on
sustainability.
GROUP KEY FIGURES
Group key figures |
1–3/2022 |
1–3/2021 |
Change, % |
1–12/2021 |
Earnings key figures |
|
|
|
|
Continuing
earnings, MEUR |
9.3 |
8.9 |
4.3 |
40.7 |
Income,
MEUR |
7.2 |
13.7 |
-47.6 |
69.7 |
Operating
profit, MEUR |
-0.7 |
5.8 |
n/a |
30.8 |
Operating
profit, % |
neg |
42.7 |
|
44.2 |
Profit for the
period in consolidated income statement, MEUR |
-1.2 |
6.8 |
n/a |
136.1 |
Return on
equity*, % |
-2.2 |
20.7 |
|
75.0 |
Balance
sheet key figures |
|
|
|
|
Equity ratio,
% |
72.1 |
48.1 |
|
72.1 |
Other
key figures |
|
|
|
|
Cost/income
ratio excluding investment operations |
83.3 |
88.6 |
|
77.9 |
Cost/income
ratio |
111.6 |
60.8 |
|
58.3 |
Full-time
personnel in continuing operations, at the end of the period |
101 |
103 |
-2.0 |
104 |
Assets under
management in Private Asset Management segment, BEUR |
2.3 |
1.7 |
|
2.2 |
Guaranty
insurance portfolio, BEUR |
1.7 |
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 AND MEDIA
A live webcast for analysts and the media will be held on May 6,
2022, at 11:00 a.m. The event is in Finnish. The webcast can be
followed online at
https://taaleri.videosync.fi/osavuosikatsaus-q1-2022/. The event
will be recorded and available later on Taaleri's investor pages at
www.taaleri.com/investors/reports-and-presentations.
Helsinki, 6 May 2022 Taaleri Plc Board of Directors
For further information, please contact:CEO
Peter Ramsay, +358 50 343 7493, peter.ramsay@taaleri.comCFO
Minna Smedsten, +358 40 700 1738, minna.smedsten@taaleri.comHead of
Communications and IR Siri Markula, +358 40 743 2177,
siri.markula@taaleri.com
Distribution:Nasdaq HelsinkiKey
mediawww.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 2.3 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.
www.taaleri.com
Siri Markula, Head of Communications and IR, tel. +358 40
743 2177, siri.markula@taaleri.com
- Taaleri Interim Statement Q1 2022
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