Taaleri Plc Interim Statement 1.1.–31.3.2025: Continuing earnings from Taaleri’s private asset management business grew, but financial market volatility strained the Group’s performance

TAALERI PLC        STOCK EXCHANGE RELEASE          29 APRIL 2025 AT 8:00 (EEST)

Taaleri Plc Interim Statement 1.1.–31.3.2025: Continuing earnings from Taaleri’s private asset management business grew, but financial market volatility strained the Group’s performance

January–March 2025

• Continuing earnings decreased by 9.0% to EUR 9.3 (10.2) million. The Private Asset Management segment’s continuing earnings grew by 3.6% to EUR 6.2 (6.0) million, and the Garantia segment’s continuing earnings decreased by 23.0% to EUR 3.0 (3.9) million.
• Performance fees were EUR 0.0 (0.0) million, and net income from investment operations was EUR -1.2 (6.3) million.
• Revenue decreased by 49.5% to EUR 8.6 (17.0) million.
• Operating profit was EUR 0.5 (9.6) million, corresponding to 5.3% (56.2) of revenue.
• The assets under management in the Private Asset Management segment remained at the level of the turn of the year at EUR 2.7 (31 December 2024: 2.7) billion.
• Earnings per share were EUR 0.02 (0.26).

 

This Interim Statement has not been prepared in accordance with IAS 34. The information presented is unaudited. Unless otherwise stated, the figures in parentheses in the Interim Statement refer to the corresponding period of the previous year. The key figures regarding the Consolidated Income Statement presented in the explanatory part of this Interim Statement have been calculated on the basis of the Group's segment reporting, unless otherwise stated.

 

Review by CEO Ilkka Laurila

In the first quarter of 2025, continuing earnings from the renewable energy business were stronger than in the corresponding period. Garantia strengthened its market position in the first months of the year. However, the overall result in the first quarter of the year fell below the strong corresponding period, mainly due to lower investment income. The key underlying factor was the recent market turbulence.

Taaleri Group’s revenue was EUR 8.6 million in the first quarter of the year, a decrease of 49.5% from the corresponding period’s EUR 17.0 million. This drop is explained by investment income that was lower compared to the corresponding period. Continuing earnings fell by 9% to EUR 9.3 million. The Group’s operating profit was EUR 0.5 million, resulting in a modest operating profit margin of 5.3%.   

At the beginning of the year, we updated our financial reporting to clarify the Group’s income formation and the role of direct investments in Taaleri’s business. Taaleri’s business consists of three reported segments: Private Asset Management, Investments and Garantia. In the Private Asset Management segment, continuing earnings grew by 3.6% to EUR 6.2 million, thanks to new commitments raised for the Taaleri SolarWind III Fund after the corresponding period. The revenue of the Private Asset Management segment remained at the level of the corresponding period, amounting to EUR 6.5 million. 

The renewable energy business continued the fundraising for Taaleri SolarWind III Fund. The fund is already at its current size the largest infrastructure-focused private equity fund in Finland, although we will likely fall short of our initial target size given the current market. The project development portfolio owned by the fund facilitates quick deployment of capital. The Taaleri Wind II, Taaleri Wind III and Taaleri SolarWind Funds are in the exit phase, and we are actively engaged in sales negotiations.  

The bioindustry business focused on value creation from existing investments in the Taaleri Bioindustry I Fund and actively identifying new investment opportunities. Early in the year, Taaleri’s real estate business agreed on a strategic partnership with a large Finnish pension insurer with the aim of investing in build-to-rent real estate. Taaleri is actively pursuing potential targets according to its mandate.  

The Investments segment consists of Taaleri’s direct investments, development projects and non-strategic investments. Revenue from the segment decreased to EUR -0.6 million, mainly as a result of changes in exchange rates related to our renewable energy projects in the United States. However, we advanced our direct investments and projects in the first quarter of the year. The production plant in Joensuu produced its first batches of torrefied biomass and has secured the initial test batch orders from customers. The operating volumes of Taaleri’s associated company Fintoil’s biorefinery in Hamina are growing and the financial development for 2025 seems promising.

In the first quarter of the year, Garantia’s insurance revenue was EUR 4.7 million, which was 7.5% lower than in the corresponding period. The recovery of the housing market has an actuarially delayed effect on Garantia’s insurance revenue. Garantia’s market position has become stronger in the first quarter of the year and the share of residential mortgage guarantees issued by Garantia for new mortgages in Finland has grown. The turmoil in the investment market early in the year was reflected in Garantia’s net income from investment operations measured at fair value through profit or loss, which was EUR -0.6 million in the first quarter of the year. Investment income still exceeded the basic allocation benchmark index. Garantia has continued the development of guarantee solutions for its corporate customers. In the first quarter of the year, Garantia prepared a guarantee for a multi-issuer bond worth EUR 62.5 million for four Finnish companies. The multi-issuer bond was issued in April, and it is fully guaranteed by Garantia.   

Taaleri’s strategy review is on track. In line with the new segment reporting, our business operations focus on Private Asset Management, Investments and Garantia. We will refine the role of these segments further in our strategy.

The first-quarter development has not met our expectations, reflecting the challenging market environment. However, the fundaments of our operations, such as comprehensive expertise and capacity to identify attractive investment opportunities in the market, remain solid, and in support of our objective of offering our customers profitable solutions also in the future.

 

Key figures

Group key figures	1–3/ 2025	1–3/ 2024	Change, %	1–12/ 2024
Earnings key figures
Continuing earnings, MEUR	9.3	10.2	-9.0	40.4
Revenue, MEUR	8.6	17.0	-49.5	70.5
Operating profit, MEUR	0.5	9.6	-95.2	38.0
Operating profit, %	5.3	56.2		53.9
Profit for the period, MEUR	0.8	7.5	-90.0	32.5
Return on equity, annualised %	1.4	14.2		15.3
Balance sheet key figures
Equity ratio, %	74.0	69.1		73.8
Other key figures
FTE (full-time equivalents), at the end of the period	128	126	1.8	129
Assets under management in Private Asset Management segment, BEUR	2.7	2.6		2.7
Guaranty insurance portfolio, BEUR	1.6	1.7		1.7

 

Outlook and financial targets

Taaleri’s business outlook for the current financial year is described below. The outlook is based on Taaleri’s understanding of business developments during the current financial year and in relation to the corresponding period.

Private Asset Management

The growth in continuing earnings from the renewable energy business for 2025 will be clarified as the final size of the Taaleri SolarWind III Fund and the final exit timings for the Taaleri Wind II and Taaleri Wind III Funds become clear. The operating profit for 2025 will depend, among other factors, on the clarification of the estimated performance fees for the funds in the exit phase or their final amount and timing of the exits.

Taaleri’s bioindustry, real estate and other fund businesses focus on developing new products, which burdens the profitability of Other private asset management. The operating profit for 2025 is expected to remain negative in Other private asset management, but to develop positively compared to the previous period.

Investments

The operating profit for 2025 will depend, among other factors, on changes in the fair value of direct investments and non-strategic investments and final exits in particular.

Garantia

Garantia’s continuing earnings are expected to remain slightly below the comparison period due to, in particular, the prolonged weak development of the Finnish housing market, which is reflected in the company’s results with a delay. In a market environment in line with expectations, Garantia’s net income from investment operations is expected to decrease compared to the exceptionally strong comparison period.

Other group

The cost level of Group operations is expected to remain at approximately the level of the corresponding period.

Long-term targets

Taaleri has set itself targets related to growth, return on invested capital and dividend payout. Taaleri’s long-term targets are:

• Growth in Group’s continuing earnings and performance fees at least 15 percent
• Return on equity at least 15 percent
• Dividend payout at least 50 percent of the FY profit.

Webcast presentation for analysts, investors and media

An analyst, investor and media conference will be held in English on 29 April 2025 at 11:00 a.m. EEST at Event Venue Eliel located at Sanomatalo, Töölönlahdenkatu 2, Helsinki. The webcast can be followed online at https://taaleri.events.inderes.com/q1-2025/.The event will be recorded and available later on Taaleri's investor pages at www.taaleri.com/en/investors/reports-and-presentations.

 

Helsinki, 29 April 2025
Taaleri Plc
Board of Directors

 

For further information, please contact:

CEO Ilkka Laurila, +358 40 076 1360, ilkka.laurila@taaleri.com
Interim CFO Elina Lintuala, +358 40 573 8849, elina.lintuala@taaleri.com
Head of Investor Relations, Communications and Sustainability Linda Tierala, +358 40 571 7895, linda.tierala@taaleri.com

 

Distribution:

Nasdaq Helsinki
Principal media
www.taaleri.com

 

This stock exchange release is an abbreviation of Taaleri Plc’s Interim Statement for the period 1 January–31 March 2025. The complete statement is attached to this release and also available at www.taaleri.com/en/investors/reports-and-presentations.

 

Taaleri in brief

Taaleri is a Nordic investment and asset manager that focuses on businesses with industrial-scale opportunities within bioindustry and renewable energy. We create value by combining extensive know-how, deep expertise, entrepreneurship and capital through both funds under management and direct investments. We have been a signatory of the UN Principles for Responsible Investment (PRI) since 2010, and we joined the Net Zero Asset Managers initiative in 2021. Taaleri’s vision is to become a leading investment manager operating internationally in bioindustry and renewable energy.

Taaleri has three business segments: Private Asset Management, Investments and Garantia. The Private Asset Management consists of renewable energy, bioindustry and real estate businesses. The Investments segment consists of direct investments, project development and non-strategic investments. The Garantia segment consists of Garantia Insurance Company.

Taaleri has EUR 2.7 bn of assets under management in its private equity funds and co-investments. The company has approximately 130 employees. Taaleri Plc is listed on Nasdaq Helsinki.

www.taaleri.com

 

Linda Tierala, Head of Investor Relations, Communications and Sustainability, +358 40 571 7895, linda.tierala@taaleri.com