- Continuing Earnings: EUR9.7 million for Q3, a decline of almost 6% from EUR10.3 million a year ago.
- Total Income: EUR21.6 million for Q3, a significant increase from EUR13 million a year ago.
- Operating Profit: EUR14.7 million for Q3, up from EUR5.7 million a year ago.
- Assets Under Management (AUM): EUR2.6 billion.
- Operating Margin: 68% for the quarter.
- Solar Wind Three Fund Commitments: EUR470 million.
- Insurance Service Result (Garantia): EUR3.4 million, a slight decrease from the previous year.
- Investment Operations (Garantia): EUR3.5 million for Q3.
- Combined Ratio (Garantia): 25.8% for Q3.
- Renewable Energy Segment Income: EUR13.2 million, a 90% increase from a year ago.
- Renewable Energy Segment Operating Profit: EUR9.7 million, up from EUR2.8 million a year ago.
- Renewable Energy AUM: EUR1.7 billion.
- Other Private Asset Management Continuing Earnings: EUR1.2 million, down from EUR1.4 million a year ago.
- Other Private Asset Management Operating Profit: EUR500,000 negative, compared to a slight minus of EUR100,000 a year ago.
- Other Private Asset Management AUM: EUR1 billion.
- Investment Yield (Garantia): 4% for Q3, EUR6.2 million.
- Operating Profit (Garantia): EUR6.3 million for Q3, up from EUR3.9 million a year ago.
- Non-Strategic Investments Balance: EUR23.8 million, down from EUR35.5 million at year-end last year.
- Earnings Per Share (YTD): EUR0.88, matching the full year 2023.
- Investment Operations Revenue: EUR11.9 million for Q3.
Release Date: November 05, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Taaleri PLC (FRA:295, Financial) reported a significant increase in income to EUR 21.6 million, up from EUR 13 million a year ago, primarily driven by investment income.
- The operating profit for the third quarter was EUR 14.7 million, a substantial increase from EUR 5.7 million a year ago.
- The renewable energy segment saw a 90% increase in income to EUR 13.2 million, with an operating profit of EUR 9.7 million compared to EUR 2.8 million a year ago.
- Garantia's investment operations performed strongly, yielding EUR 3.5 million, with a combined ratio of 25.8% for the third quarter.
- Taaleri PLC (FRA:295) has successfully attracted tier-one international investors into its Solar Wind Three fund, reaching commitments of EUR 470 million.
Negative Points
- Continuing earnings for the third quarter declined by almost 6% to EUR 9.7 million from EUR 10.3 million a year ago.
- The fundraising environment remains challenging, with the average time for fundraising increasing from 14 months in 2019 to 29 months currently.
- The bioindustry fund did not secure a strong anchor investor, leading to the postponement of its venture capital fund launch.
- The real estate market, particularly in Finland, is experiencing low transaction volumes, impacting related business activities.
- The exit of the Wind Two and Wind Three funds might be postponed to 2025, affecting the timing of potential performance fees.
Q & A Highlights
Q: Why did Taaleri decide not to launch the venture capital fund for the bioindustry and delay the real estate products to 2025?
A: Peter Ramsey, CEO, explained that the lack of a strong anchor investor and the tough fundraising environment led to the decision not to launch the VC fund. For the real estate products, preparations have been slower, and they want to ensure the timing is right before proceeding.
Q: Has the US Presidential election affected the solar wind three fundraising?
A: Peter Ramsey, CEO, stated that the US election has not specifically impacted the fundraising. They have secured commitments from tier one international investors, and while the process is slower, they have a good pipeline of due diligences underway.
Q: Is it more likely that the wind two and three exits will be postponed to 2025?
A: Peter Ramsey, CEO, mentioned that the exact timing is uncertain, and these processes take time. It is possible that the exits could be postponed to 2025.
Q: What is the plan for the remaining Aktia shares?
A: Peter Ramsey, CEO, confirmed that Taaleri plans to sell the remaining Aktia shares, having already moved them from strategic to non-strategic investments.
Q: Why did the headcount drop despite new recruitments in real estate?
A: Ilkka Einari Laurila, CFO, clarified that the new recruitments were replacements, not additions, so the headcount did not increase.
Q: Will there be any profit booked in Q4 if the old wind funds exit next year?
A: Ilkka Einari Laurila, CFO, explained that according to IFRS, revenue recognition depends on the likelihood and amount of the exit. Since no additional revenue has been recognized, it suggests that the likelihood and amount have not increased.
Q: How have interest rates affected Taaleri's businesses?
A: Peter Ramsey, CEO, noted that lower interest rates positively impact financing costs and IRRs, especially in asset-heavy businesses like renewable energy. However, other factors like inflation and input costs also play significant roles.
Q: Will Taaleri distribute cash from the sale of Aktia shares to shareholders?
A: Peter Ramsey, CEO, stated that Taaleri will stick to its dividend policy of distributing at least half of annual earnings to shareholders, with no plans for extraordinary distributions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
