Taaleri Plc · OMXHEX:TAALA
Taaleri — Investor Day (June 2022)
60 slides from Taaleri's investor day presentation, Jun 8, 2022
Slide 1: Taaleri Investor Day 2022
TAALERI eri estor Day 2022 June 2022
Slide 2: Agenda and presenters
Siri Markula, Head of Communications and IR Peter Ramsay, CEO Minna Smedsten, CFO Renewable Energy – Investing in the energy transition Kai Rintala, Director, Renewable Energy Real Estate – A housing fund pioneer in Finland Essi Sten, Director, Real Estate Bioindustry – Leading the way in Europe Ter
Slide 3: Peter Ramsay, CEO
Peter Ramsay, CEO Investor Day 2022
Slide 4: Climate change, electrification, changing values, urbanisation
Climate change Electrification Changing values Urbanisation 4 Taaleri Investor Day 2022
Slide 5: Taaleri Investor Day 2022
Source: Shell’s analysis based on data from the IEA (2020) World Energy Balances 5 Taaleri Investor Day 2022
Slide 6: Focus, Growth, Returns
Focus Growth Returns Creating value through Strong growth by excelling in Efficient use of capital impact and renewables alternative investment funds and resources enabled by scalable business models 6 Taaleri Investor Day 2022
Slide 7: Investment in renewables highly attractive
Investment in Rising allocations into Growing institutional and Security of supply and renewables highly private asset classes private wealth self-sufficiency (e.g. attractive energy production) 7 Taaleri Investor Day 2022
Slide 8: Investors expect to increase allocations to alternatives
($tn) 20 18 17.2 16 15.6 14.2 14 13 11.8 12 10.8 10.7 of investors expect to 10 9.5 8.8 increase allocations 7.8 8 7.35 to alternatives* 6.4 6.9 6 5.6 4.6 4.1 4 2 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 * Preqin: Future of Alternatives 2025 survey Source: Pr
Slide 9: Alternative Assets under Management 2020 vs. 2025
($bn) 300 271 258 233 245 250 219 223 228 222 215 211 200 176 185 163 150 130 109 95 100 Alternative Assets under 50 Management 2020 vs. 2025 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Real Estate 1,046 1,238 +20% Infrastructure 639 795 +18% ($bn) 1400 1,238 1,
Slide 10: Taaleri business model
Shareholders Strong returns Private Asset Management Renewable Energy Distribution: Aktia + Direct - Investment / capital Management and performance fees Institutional & ret: investors Strategic Investments e Bioindustry Steady cash flow Returns TAALERI
Slide 11: We put impact and renewable energy at the heart of our operations
We put impact and We seek to scale all our We are expanding the We optimize return on renewable energy at the businesses sales and distribution of capital and balance sheet heart of our operations our private equity funds usage 11 Taaleri Investor Day 2022
Slide 12: Developing and expanding private equity funds
• We are developing and expanding private equity funds that seek not only economic returns but also measurable benefits for the environment and society. • We use our funds to create, among other things, wind and solar power, biofuels and affordable rental homes. • The cumulative realized emission re
Slide 13: Increasing average fund size and AUM
• In our private equity funds, we aim to significantly increase the average size of funds and our assets under management, which will increase continuing earnings and improve the funds' profitability. • At Garantia Insurance Company Ltd, we will continue to promote a strategy based on a scalable bus
Slide 14: Strategic partnership with Aktia
• We started a strategic partnership with Aktia, which opened a significant distribution channel for our products. • We are strengthening our own sales towards major institutional clients and international investors. • We are seeking new international distribution channels. 14 Taaleri Investor Day 2
Slide 15: Distributing at least 50 percent of profit
• Our objective is to distribute at least 50 percent of the profit for the financial year to our shareholders. • We will increase the efficiency of our use of capital and distribute to shareholders the capital that the company does not need for growth investments or to fulfil its targets for solvenc
Slide 16: Our strategy is built on Taaleri's strengths
Our strategy is built on Taaleri’s strengths Unique product offering in impact and Strong track record in connecting d ey capital, ideas, talent and renewables across & a entrepreneurship multiple asset classes ® oy 3 g Q, & € ) ° 2} & =i Ko} Robust capabilities to develop, build, manage and exit in
Slide 17: Strategic roadmap 2022-2024
2022 2023 2024 • Maximise the potential of Aktia • Grow internationally in Tier 1 • Grow internationally in Tier 1 and 2 cooperation • Scale up channels in new markets • SolarWind III second close • Launch SolarWind III • SolarWind III first close • Scale Real Estate • Establish own sales function •
Slide 18: Competitive shareholder returns
Competitive shareholder returns Growth in Stable Growth of Perf. Increased assets under x recurring E—— = continuing + CIRCIAMETISE) + efficiency of management margins earnings Ges) balance sheet Earnings growth l Competitive shareholder returns 18 aaleri Investor Day 2022 TAALERI
Slide 19: Growth, Profitability, Shareholder value
Growth Profitability Shareholder value Operating profit ROE Growth in continuing earnings Dividend policy Taaleri’s objective is to distribute to shareholders at least 50 percent of the profit for the financial year, as well as the capital that the company does not need for growth investments or to
Slide 20: Taaleri history and business mix
2021 Wealth management operations Divested 2016 Taaleri Plc Nasdaq Helsinki 2016 Million Euro, million Billion Taaleri Energia Ltd Operating profit, % 44.2 12/2021 3/2021 Founded 2015 Garantia Acquired 2013 Taaleritehdas Plc Helsinki First North Million 31 December 2021 2011 Taaleri Investments Ltd
Slide 21: Taaleri Investor Day 2022
4,4 21 Taaleri Investor Day 2022
Slide 22: Continuing earnings and operating profit
80.0 45.8% 44.2% 35.0 42.3% 50.00% 70.0 40.6% 45.00% 30.0 38.5% 60.0 40.00% 29.0 25.0 Pitkän35.00% aikavälin tavoite, 22.1 50.0 liikevoitto yli 25 % 17.1 16.9 18.2 30.00% 20.0 40.0 Long term 25.00% target >25% 15.0 30.8 30.0 20.00% 25.0 23.6 24.3 22.7 15.00% 20.0 38.7 39.1 40.7 41.1 10.0 36.4 10.00%
Slide 23: Taaleri share
Taaleri share The development of Taaleri’s share price since the IPO 20 April 2013-34 May 2022 Taaleri has approximately 9,600 shareholders s500 (6,022 on 34 April 2021) § 1000 te atl a 2014 2015 2016 2047 2018 2019 2020 2004 2029 TAALERI
Slide 24: Nordic forerunner in sustainable alternative investments
We Strive to be a Nordic forerunner in alternative investments focusing on sustainability 24 Taaleri Investor-Day 2022 TAALERI
Slide 25: Minna Smedsten, CFO
Minna Smedsten, CFO Taaleri Investor Day 2022
Slide 26: We put impact and renewable energy at the heart of our operations
We put impact and We seek to scale all our We are expanding the We optimize return on renewable energy at the businesses sales and distribution of capital and balance sheet heart of our operations our private equity funds usage 26 Taaleri Investor Day 2022
Slide 27: Competitive shareholder returns
Competitive shareholder returns Growth in Stable Growth of Perf. Increased assets under x recurring E—— = continuing + CIRCIAMETISE) + efficiency of management margins earnings Ges) balance sheet Earnings growth l Competitive shareholder returns 27 aaleri Investor Day 2022 TAALERI
Slide 28: Long-term fee income from alternative funds
Taaleri receives long-term income from its alternative funds. The fee income comprises of management fees and performance fees. The recognition of fee income is somewhat different between domestic and international funds. 1 2 3 4 5 6 7 8 9 10 Management fee Performance fee AUM 28 Taaleri Investor Da
Slide 29: Long-term fee income from alternative funds
Taaleri receives long-term income from its alternative funds. The fee income comprises of management fees and performance fees. The recognition of fee income is somewhat different between domestic and international funds. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Management fee Performance fee AUM 29 Taal
Slide 30: Exited Taaleri funds and co-investments 2014-2022
3.0 Exited Taaleri funds and co-investments 2014–2022 2.5 2.2 2.0 1.7 1.0 1.4 1.5 0.6 1.1 1.0 0.5 1.0 0.4 0.4 1.1 1.2 0.5 0.9 0.6 0.6 Exited Taaleri funds and co-investments 0.0 2014–2022 2017 2018 2019 2020 2021 Renewable energy Other private asset management 30 Taaleri Investor Day 2022
Slide 31: Continuing earnings and cumulative distributions
600 50 45 500 40 35 22.1 400 30 300 25 20 41.1 200 15 10 100 5 0 0 Continuing earnings 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Other than continuing earnings Cumulative distributions, MEUR Taaleri's profit at exit, MEUR 31 Taaleri Investor Day 2022
Slide 32: Taaleri Investor Day 2022
4,4 32 Taaleri Investor Day 2022
Slide 33: Growth, Profitability, Shareholder value
Growth Profitability Shareholder value Growth in continuing earnings Operating profit ROE 33 Taaleri Investor Day 2022
Slide 34: Dividend policy
18.0 15.9 2.20 16.0 15.0 14.0 13.3 2.00 12.0 11.0 10.7 10.0 10.0 1.50 10.0 1.80 7.3 8.0 6.8 1.00 6.1 6.0 6.0 5.0 4.0 4.0 3.0 0.50 0.30 0.32 0.20 0.22 0.26 0.09 0.16 2.0 0.05 0.40 0.00 0.0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2015 2016 2017 2018 2019 2020 2021 Additional distribution of capit
Slide 35: Balance sheet composition
31.12.2021: €33.1 31.12.2021: €165.9 31.12.2021: €318.7 A dividend of EUR 1.20 per Million Million Million share, a total of EUR 34.0 million, was paid on 8 April Other assets 2022 for the financial year 2021. Cash Garantia Investment Portfolio 31.12.2021: €23.7 31.12.2021: €53.3 Non-strategic inves
Slide 36: Taaleri Investor Day 2022
-34,0 36 Taaleri Investor Day 2022
Slide 37: Total shareholder return, annualized
Total shareholder return, annualized • 16.6% increase in share price • 4.1% dividends paid Total shareholder return, annualized • 19.4% increase in share price • 19.7% dividends paid 37 Taaleri Investor Day 2022
Slide 38: Total shareholder return
Total shareholder return • 305.4% increase in share price • 147.6% dividends paid Total shareholder return • 28.6% increase in share price • 31.0% dividends paid 38 Taaleri Investor Day 2022
Slide 39: Investing in energy transition
Investing in energy transition
Slide 40: Investing in the energy transition
Investing in the energy transition Billion AUM • Taaleri Energia develops and invests in utility scale wind farms and solar plants. It manages assets throughout their entire lifecycles. • Our team is one of the largest in Europe, with end-to-end expertise in project development, deal sourcing, techn
Slide 41: Strategic priorities
Strategic priorities Maintain strong Maximise the performance and value of solar and investment wind investments, making Taaleri Energia performance managed funds attractive to a wide pool of institutional investors SolarWind III Present an attractive investment opportunity to fundraising internatio
Slide 42: 2022-2025 ambition
2022 2023 2024 • Reach the end of SolarWind • Manage construction of • Conclude II investment period SolarWind II projects SolarWind III fundraising • Manage construction • First closing of the • Invest SolarWind III 2025 of SolarWind II projects SolarWind III fund • Manage construction of ambition
Slide 43: Renewable energy earnings and AUM
25.0 1.6 8.0 34.5 % 34.8 % 40.00% 1.4 7.0 30.6 % 30.1 % 35.00% CAGR on AUM (2017–2021) 18.3% 20.0 6.8 6.3 1.2 28.7 % 6.0 30.00% 3.0 2.2 3.0 1.0 15.0 5.0 25.00% 0.8 4.0 20.00% 7.6 7.6 10.0 0.6 1.2 3.0 15.00% 1.1 15.2 15.2 15.2 15.6 5.2 5.5 14.0 5.0 0.9 2.0 0.4 10.00% 5.0 0.6 0.6 1.0 0.2 5.00% 0.0 0.0
Slide 44: A housing fund pioneer in Finland
A housing fund pioneer in Finland
Slide 45: What we do
What we do • Local real estate partner – Specialising in real estate fund, investment and asset management. • Closed-end real estate funds – authorised AIF manager for 9 closed-end real estate Million Portfolio funds. • Real estate mandates – Portfolio manager for two open-end funds and asset manage
Slide 46: Strategic priorities
Strategic priorities Real estate funds Scale real estate funds through Aktia sales business channel and through own sales organisation. Real estate mandate Scale real estate mandates through professional business investment and asset management services. Sustainable Gain substantive competitive edge
Slide 47: Strategic roadmap
Strategic roadmap 2022 2023 2024 • Launch new Taaleri Housing • Launch a new sustainable • Launch a new sustainable Fund VIII (SFDR Article 8) investment product investment product • Grow Taaleri closed-end • Grow Taaleri closed-end • Grow Taaleri closed-end funds funds funds 2025 • Grow Aktia open-
Slide 48: Funds and mandates
Funds and mandates Fund raising Type: Closed-end, AIF Strategy: Built to Rent, Residential, ESG Investment Commercial Properties* Residential Fund+ * period Type: Closed-end, AIF Type: Closed-end, AIF Type: Open-end, non-UCITS Type: Open-end, non-UCITS Strategy: Built to Rent, Strategy: Built to Ren
Slide 49: Bioindustry: Leading the way in Europe
TAALERI Bioindustry Leading the way in Europe
Slide 50: A European forerunner
A European forerunner • Taaleri Bioindustry develops and invests in industrial scale plants that enable the growth of bioeconomy sector globally. • As a European pioneer, we launched a bioindustry fund, which focuses on industrial-scale bioindustry projects that promote sustainable development. The
Slide 51: Strategic priorities
Strategic priorities Focus on Our focus areas are in renewable materials and sustainable replacing the use of virgin natural resources in investments several different industries like packaging, fabrics, energy and circularity of materials Current investors Finnish institutional, family Attract new
Slide 52: 2022-2025 ambition
2022 2023 2024 • Fundraising of Taaleri • Fintoil first operational year, • Launch of Biocoal Canada Bioindustry I (target MEUR 80) active management on Fund both directly and together production side through with Aktia. Manage first Board work • Manage investments 2025 to Bioindustry Fund I investm
Slide 53: Key drivers affecting multiple segments
Key drivers affecting multiple segments Demand for organic and / or non-fossil Discarded waste material can replace virgin Innovative production of cotton-like fibres fertilisers is driven by the input-intensive raw materials as feedstock in a variety of from recycled clothing and production of indu
Slide 54: Modernising collateral practices
Modernising collateral practices
Slide 55: Scalable guarantee insurance solutions
Scalable guarantee insurance solutions Billion, Q1/2022 Gross insurance exposure • Garantia is an independent non-life insurance company specialising in guarantee services. Million Portfolio • We pool together premiums that our customers pay to offset the risk of loss Combined ratio, Q1/2022 • Premi
Slide 56: Modernising collateral practices
Modernising collateral practices • We increase the trust between different parties. Million Portfolio • We provide customers with easy and cost-effective guarantee solutions and • guarantees for new business opportunities. homeowners, landlords and • We collaborate closely with our customers and par
Slide 57: Strategic priorities
Strategic priorities Further diversify our Expanding insurance operations with new ways to insurance portfolio deploy guarantee, and through co-operation and partnerships. Targeting a more diversified insurance portfolio. Optimise Efficient capital management while maintaining the use of the strong
Slide 58: Expanding distribution network 2022-2024
2022 2023 2024 • Maximise the potential of • Expand distribution network • Distribution agreement current distribution cannels. channels. with a Nordic partner. • Creating and launching co- • Scale portfolio guarantee • Exploring “Connected operation with corporations in models with new strategic In
Slide 59: Business on a growth path since 2015
Business has been on a growth path since the beginning of Taaleri’s ownership in 2015. M€ 30.0 90% 79% 80% 71% 25.0 70% 64% 28% 59% 60% 60% 55% 20.0 50% 43% 46% 55% 35% 15.0 40% 36% 37% 35% 56% 53% 30% 45% 51% 32% 10.0 42% 20% 41% 35% 33% 10% 22% 5.0 17% 12% 4% 8% 8% 10% 2% 2% 0% -6% 0.0 -10% 2011 2
Slide 60: Taaleri
TAALERI