Slide 1: Taaleri's Half-Year Financial Report 2018
TAALERI’S HALF-YEAR FINANCIAL REPORT 2018 Juhani Elomaa CEO Taaleri Group
Slide 2: Agenda
TAALERI’S HALF-YEAR FINANCIAL RESULTS 2018 AGENDA Taaleri In brief.............................................page 3 Half-year highlights………….……..……… page 6 Key figures………………………………...….page 8 Segment information.................................page 12 Wealth Management…….......…………page 14 Financing
Slide 3: Taaleri proactively seeks opportunities
TAALERI’S HALF-YEAR FINANCIAL RESULTS 2018 TAALERI PROACTIVELY SEEKS OPPORTUNITIES Listed on Nasdaq Helsinki’s Key figures 2017 WEALTH OTHER OTHER FINANCING main market MANAGEMENT ENERGY OPERATIONS (utilizing the balance sheet) • An agile and visionary growth OWN INVESTMENTS • Income 81 MEUR company
Slide 4: We encourage responsibility by action
TAALERI’S HALF-YEAR FINANCIAL RESULTS 2018 WE ENCOURAGE RESPONSIBILITY BY ACTION Wind Power Solar Power The goal as a company is to grow profitably, responsibly. Geo- thermal Transparency guide our operations. energy CDP1, UNPRI2, FIBS3, FINSIF4 Forest 1) CDP is an international, independent, non-pr
Slide 5: Group long-term strategic and financial targets
TAALERI’S HALF-YEAR FINANCIAL RESULTS 2018 GROUP LONG -TERM STRATEGIC AND FINANCIAL TARGETS STRATEGIC TARGETS FINANCIAL TARGETS • Strong but controlled growth and • >20% profit margin increasing profitability. • >15% ROE • Growth in AuM* and clientele • >30% equity ratio • Profitable growth in insur
Slide 6: Taaleri's financial results
TAALERI’S FINANCIAL RESULTS FOR HALF-YEAR JANUARY-JUNE 2018 6
Slide 7: Highlights
TAALERI’S HALF-YEAR FINANCIAL RESULTS 2018 HIGHLIGHTS • Wealth Management profitability was excellent - operating profit 48% of income and 80% growth compared to the comparision period. • The Financiang-segment’s income from insurance operations grew by 10% - Insurance portfolio grew 7% and the comb
Slide 8: Operating profit on good level; assets under management and guaranty insurance portfolio grew
TAALERI’S HALF-YEAR FINANCIAL RESULTS 2018 OPERATING PROFIT ON GOOD LEVEL; ASSETS UNDER MANAGEMENT AND GUARANTY INSURANCE PORTFOLIO GREW Group key figures 1-6/2018 1-6/2017 2017 Long-term target Earnings key figures Income, MEUR 35.2 38.7 81.0 Operating profit, MEUR 12.4 15.6 27.6 Operating profit,
Slide 9: Good growth and profitability development, although earnings from investment operations weakened
TAALERI’S HALF-YEAR FINANCIAL RESULTS 2018 GOOD GROWTH AND PROFITABILITY DEVELOPMENT, ALTHOUGH EARNINGS FROM INVESTMENT OPERATIONS WEAKENED TOTAL INCOME, MEUR OPERATING PROFIT, MEUR 45 40 35.5 38.9 12.4 15.6 20 35 30 15 25 20 10 15 10 5 5 0 0 -5 -5 -10 Wealth Management Financing Energy Other Wealth
Slide 10: Taaleri results
TAALERI’S HALF-YEAR FINANCIAL RESULTS 2018 TAALERI RESULTS EUR 1 000 1-6/2018 1-6/2017 2017 Continuing earnings 26,865 25,079 48,947 Performance fees 5,637 5,745 15,806 Investment operations 2,979 8,103 16,820 Income 35,481 38,927 81,572 Fee and commission expense -3,152 -2,539 -6,391 Interest expen
Slide 11: Key figures
TAALERI’S HALF-YEAR FINANCIAL RESULTS 2018 KEY FIGURES AN N U AL I S E D C O M PAR I S I O N ( LT M ) INCOME, MEUR OPERATING PROFIT, MEUR EQUITY, MEUR 90 30 120 109.6 80 77.5 25 24.4 100 70 12 60 42 20 80 42 12 H2/2017 H2/2017 50 27 15 60 40 5 30 10 40 16 20 39 35 12 34 5 12 H1/2018 20 H1/2018 10 0
Slide 12: Operating profit by segment, MEUR
TAALERI’S HALF-YEAR FINANCIAL RESULTS 2018 OPERATING PROFIT BY SEGMENT, MEUR 18 16 -0.9 2.4 14 -3.3 12 10 8 14.1 6 12.4 4 2 0 WEALTH FINANCING ENERGY OTHER OPERATING MANAGEMENT PROFIT 16/08/2018 12
Slide 13: Wealth Management
WEALTH MANAGEMENT 13
Slide 14: Wealth Management profitability was excellent; focusing on growth
TAALERI’S HALF-YEAR RESULTS 2018 WEALTH MANAGEMENT PROFITABILITY WAS EXCELLENT; FOCUSING ON GROWTH • Income increased, primary drivers were: • the increase in assets under management as well as the increased advisory fees, • performance fees that stayed at last year’s levels, and • the additional ea
Slide 15: Wealth Management's operating profit grew and was 48% of income
TAALERI’S HALF-YEAR RESULTS 2018 WEALTH MANAGEMENT’S OPERATING PROFIT GREW AND WAS 48 % OF INCOME INCOME, MEUR OPERATING PROFIT, MEUR OPERATING PROFIT, % 70 25 22.9 60% 60.4 60 50% 48 20 50 9 31 40% 40 31 15 9 30% 30 20 10 20% 20 14 30 5 10 24 4 8 10% 18 2 0 0 0% Income H1 Income H2 Operating profit
Slide 16: Financing
FINANCING 16
Slide 17: Premiums written increased and combined ratio improved
TAALERI’S HALF-YEAR RESULTS 2018 PREMIUMS WRITTEN INCREASED AND COMBINED RATIO IMPROVED COMBINED RATIO, % 80 72% 70 • Insurance income grew. 64% 60% 60 • Premiums written grew 5% 50 41% • Net income from insurance operations 40 52 52 grew 10% 50 30 • The guaranty insurance portfolio increased 20 45
Slide 18: Guaranty insurance portfolio grew 7%
TAALERI’S HALF-YEAR RESULTS 2018 GUARANTY INSURANCE PORTFOLIO GREW 7% 1 800 1 595 1 600 1 491 126 1 320 85 1 400 1 164 93 1 200 598 92 579 1 000 467 383 800 600 353 462 531 258 400 200 431 407 365 340 0 Loan guaranties Commercial bonds Residential mortgage guaranties Other guaranties 16/08/2018 18
Slide 19: Energy
ENERGY 19
Slide 20: The Energy segment took significant growth steps
TAALERI HALF-YEAR REPORT 2018 THE ENERGY SEGMENT TOOK SIGNIFICANT GROWTH STEPS • The Solar Wind fund’s wind power and solar energy projects were successfully developed forward. • Project rights for a 227 MW wind power project were purchased in North America. • Taaleri Energy received the alternative
Slide 21: Other operations
OTHER OPERATIONS 21
Slide 22: We are constantly pursuing new opportunities
TAALERI’S HALF-YEAR FINANCIAL RESULTS 2018 WE ARE CONSTANTLY PURSUING NEW OPPORTUNITIES • Income and operating profit were negatively affected by an impairment of a geothermal project. • During the first part of the year we increased our ownership in, e.g., Fellow Finance, we invested in Turun Torip
Slide 23: Balance sheet and capital adequacy
BALANCE SHEET AND CAPITAL ADEQUACY 23
Slide 24: Balance sheet
TAALERI’S HALF-YEAR FINANCIAL RESULTS 2018 BALANCE SHEET Assets 30 June 2018 31 Dec. 2017 EUR 1,000 Receivables from credit instutions 24,288 34,567 Redemption of fixed Receivables from the public and general government 12,114 6,598 Shares and units 14,013 25,883 income funds Participating interests
Slide 25: Capital adequacy – RaVa & Financing sector
TAALERI’S HALF-YEAR FINANCIAL RESULTS 2018 CAPITAL ADEQUACY – RAVA & FINANCING SECTOR Capital adequacy of RaVa conglomerate, Financing sector’s capital adequacy, EUR thousand 30 June 31 Dec. EUR thousand 30 June 2018 30 Dec. 2017 (with the CRR 49 special permission) 2018 2017 Common Equity Tier befo
Slide 26: Summary
—_— SUMMARY | | a
Slide 27: Group strategy
TAALERI’S HALF-YEAR FINANCIAL RESULTS 2018 GROUP STRATEGY • Value driven growth company • Utiliser of new technology • Enabler • Forerunner 16/08/2018 27
Slide 28: Summary of the half-year financial report
TAALERI’S HALF-YEAR FINANCIAL RESULTS 2018 SUMMARY OF THE HALF-YEAR FINANCIAL REPORT • Continuing earnings grew. • Wealth Management’s profitability was excellent and the continuing earnings grew. • The Financing segment’s continuing earnings grew and the balance on the technical account was excelle
Slide 29: Taaleri as an investment
TAALERI’S HALF-YEAR FINANCIAL RESULTS 2018 TAALERI AS AN INVESTMENT Profitable growth Strong financial Growing ownership Opportunistic position and value, approach to Dividend organic / excellent responsibly growing business non-organic profitability 16/08/2018 29
Slide 30: Garantia key figures, IFRS
TAALERI’S HALF-YEAR FINANCIAL RESULTS 2018 GARANTIA KEY FIGURES, IFRS Financing, EUR million 1-6/2018 1-6/2017 Change, % Net income from guaranty insurance operations 5.8 5.3 9.5 Net income from investment operations 0.4 6.4 -93.9 Income 6.2 11.7 -47.2 Operating expenses -3.8 -3.8 -0.4 Operating pro
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