Taaleri Plc Interim Statement 1.1.–31.12.2024: Taaleri’s positive financial performance continued in the final quarter of the year

12.2.2025 08:00:00 EET | Taaleri Oyj | Financial Statement Release

TAALERI PLC        STOCK EXCHANGE RELEASE          12 FEBRUARY 2025 AT 8:00 (EET)

Taaleri Plc Interim Statement 1.1.–31.12.2024: Taaleri’s positive financial performance continued in the final quarter of the year

October–December 2024

• Continuing earnings grew by 5.7% to EUR 10.4 (9.9) million. The Private Asset Management segment’s continuing earnings grew by 6.1% to EUR 7.1 (6.7) million, and the Garantia segment’s continuing earnings grew by 11.1% to EUR 3.1 (2.8) million.
• Performance fees were EUR 1.8 (0.0) million, and net income from investment operations was EUR 7.7 (7.8) million.
• Income increased by 13.0% to EUR 20.0 (17.7) million.
• Operating profit was EUR 9.4 (6.9) million, corresponding to 47.0% (38.9) of income.
• Earnings per share were EUR 0.23 (0.14).

January–December 2024

• Continuing earnings grew by 1.6% to EUR 40.5 (39.9) million. The Private Asset Management segment’s continuing earnings grew by 3.3% to EUR 25.2 (24.4) million, and the Garantia segment’s continuing earnings grew by 0.4% to EUR 13.6 (13.6) million.
• Performance fees were EUR 1.8 (1.5) million, and net income from investment operations was EUR 28.2 (25.0) million.
• Income increased by 6.3% to EUR 70.5 (66.3) million.
• Operating profit was EUR 38.0 (31.9) million, corresponding to 53.9% (48.1) of income.
• The assets under management in the Private Asset Management segment grew by 2.2% to EUR 2.7 (31 December 2023: 2.6) billion.
• Earnings per share were EUR 1.00 (0.81).
• The Board of Directors proposes that a dividend of EUR 0.50 per share be paid for 2024, distributed in two equal instalments of EUR 0.25 each.

This Financial Statements Bulletin has been prepared in accordance with IAS 34. The Financial Statements Bulletin is based on the audited Financial Statements of 2024. The auditor's report has been issued on 12 February 2025. Unless otherwise stated, the figures in parentheses in the Financial Statements Bulletin refer to the corresponding period of the previous year. See page 24 for further information of the accounting policies of this Financial Statements Bulletin. The financial figures in the explanatory section of the Financial Statements Bulletin are based on the Taaleri's segment reporting unless otherwise stated.

Review by CEO Ilkka Laurila

I started as CEO of Taaleri at the beginning of January 2025. I am excited about my new role and our opportunity to strengthen Taaleri as a Nordic investment and asset manager. Our goal is to promote profitable growth across all businesses.

The Taaleri Group’s result for the final quarter of the year was strong, mainly due to the continuing earnings from the renewable energy business, recognised performance fees, and Garantia’s result. We advanced our strategy in a challenging operating environment.

The Taaleri Group’s income was EUR 20.0 million in the final quarter of the year, reflecting a 13.0% increase compared to the previous period, driven by the growth in continuing earnings and performance fees. Continuing earnings grew by 5.7% to EUR 10.4 million. The operating profit margin was 47.0%. In the Private Asset Management segment, continuing earnings grew by 6.1% to EUR 7.1 million, thanks to new commitments raised for the SolarWind III Fund after the comparison period. The management fees received from private equity funds increased as a result of the increase in the assets under management that produce the fees. The income of the Private Asset Management segment, in turn, grew by 13.0% compared to the comparison period to EUR 14.4 million. The growth in income was primarily driven by performance fees recognised during the review period based on management’s estimates.

The renewable energy business continued the fundraising for Taaleri SolarWind III Fund. In the final quarter of the year, we increased the size of the fund to EUR 481 million. We succeeded in attracting new international investors to the fund. Fundraising for the fund is scheduled to continue until the end of June. We have already surpassed the size of the previous Taaleri SolarWind II Fund by 36%. Our goal is to significantly grow the fund size further within the current year, but reaching the original target size of EUR 700 million is uncertain given the current market. The fund’s project development portfolio allows for efficient allocation of capital, and the fund’s investment activities remained active in the final quarter of the year. The Taaleri Wind II and Taaleri Wind III 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. The torrefied biomass plant in Joensuu was completed, and our goal is to begin production with smaller test batches. A broader ramp-up will take place in 2025.

The real estate business continued to develop new products in the final quarter of the year. We agreed on a mandate-based strategic partnership with a large Finnish pension insurer at the beginning of 2025. Our goal is to launch additional new products within the current year. The timing of the launches will depend not only on investor discussions but also on the development of the real estate market.

Garantia’s insurance revenue in the final quarter of the year remained at the level of the comparison period, amounting to EUR 4.5 million. The housing market, which is linked to company’s residential mortgage guarantee sales, has shown signs of recovery following interest rate cuts. The combined ratio, which measures the profitability of insurance operations, stayed strong at 26.2%. Garantia’s net income from investment operations measured at fair value through profit or loss was EUR 2.2 million, and the return on investments at fair value was 1.1% in the final quarter of the year. The investment market strengthened compared to the comparison period, but the development in the final quarter was more moderate compared to the first nine months of 2024.

The result for the final quarter of the year marked a strong end to 2024. Although progress was slower than desired, we have advanced our key strategic initiatives in the prevailing market. We will refine our strategy during the current year. We have built a strong foundation, and we have the right people, expertise, and resources to achieve results. Our goal is to continue developing our processes to enhance productivity and quality, ensuring we can provide the best solutions and products to our clients as well in the future.

Key figures

Dividend proposal of the Board of Directors

The Board proposes to the Annual General Meeting that a dividend of EUR 0.50 per share be paid for 2024, totalling EUR 14,098,126.50. The parent company’s distributable assets at the balance sheet date were EUR 114,274,142.31, of which the profit for the financial year was EUR 13,715,113.92. The Board proposes that the company transitions to a biannual dividend distribution arrangement, whereby the dividend for 2024 is proposed to be paid in two equal instalments.

The Board proposes that the first instalment of EUR 0.25 per share be paid to shareholders who are registered in the shareholder register held by Euroclear Finland Oy on the dividend record date of 4 April 2025. The Board proposes that the first instalment of the dividend be paid on 11 April 2025.

The Board proposes that the second instalment of EUR 0.25 per share be paid to shareholders who are registered in the shareholder register held by Euroclear Finland Oy on the dividend record date of 3 October 2025. The Board proposes that the second instalment of the dividend be paid on 10 October 2025.

The Board of Directors’ report and Financial Statements for 2024 will be available at www.taaleri.com on 12 March 2025 at the latest.

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 net income from investment operations and 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 businesses focus on strong international growth, 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.

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. 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 income from the Other group in 2025 is heavily dependent on changes in the fair value of non-strategic investments and final exits in particular. 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 12 February 2025 at 11:00 a.m. EET at Event Venue Stage located at Itämerentori 2, Helsinki. The webcast can be followed online at https://taaleri.events.inderes.com/q4-2024.The event will be recorded and available later on Taaleri's investor pages at www.taaleri.com/en/investors/reports-and-presentations.

Helsinki, 12 February 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
Director, Investor Relations and Communications 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 Financial Statements Bulletin for the period 1 January–31 December 2024. The complete bulletin 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 (UNPRI) 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 two business segments: Private Asset Management and Garantia. Private Asset Management consists of bioindustry, renewable energy and real estate businesses.

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, Director, Investor Relations and Communications, +358 40 571 7895, linda.tierala@taaleri.com

Attachments

• Financial Statements Bulletin 2024.pdf