Taaleri Plc · OMXHEX:TAALA
Taaleri — Investor Day (March 2021)
74 slides from Taaleri's investor day presentation, Mar 23, 2021
Slide 1: Impact through alternatives
Impact through alternatives Capital Markets Day 23 March 2021
Slide 2: Disclaimer
DISCLA IMER This presentation and the information contained herein is being provided solely for information purposes. This presentation does not constitute an invitation to underwrite, subscribe for, or otherwise acquire or dispose of any Taaleri shares. Past performance is no guide to future perfor
Slide 3: Taaleri Capital Markets Day 2021 Agenda
TAALERI CAPITAL MARKETS DAY 2021 AGENDA 12:00-12:05 Welcome Siri Markula, Head of Communications and IR 12:05-12:35 Taaleri’s revised strategy Robin Lindahl, CEO 12:35-12:45 Cooperation with Aktia Bank Perttu Purhonen, Director, Wealth Management 12:45-12:50 Private Asset Management segment Robin Li
Slide 4: Taaleri – Impact through alternatives
TAALERI – IMPACT THROUGH ALTERNATIVES FOCUS GROWTH RETURNS Efficient use of capital Creating value through Strong growth by excelling in alternative and resources enabled impact and renewables investment funds by scalable business models 4
Slide 5: Megatrends affecting Taaleri's business environment
MEGATRENDS AFFECTIN G TAALERI’S BUSINESS ENVIRONMENT Electrification Urbanisation Changing values Ageing populations Climate change
Slide 6: Electricity consumption escalates
ELECTRICITY CONSUMPTION ESCALATES 6 Capital Markets Day 2021 Source: Shell’s analysis based on data from the IEA (2020) World Energy Balances
Slide 7: Market trends
MARKET TRENDS Investment in renewables Rising allocations into highly attractive private asset classes Growing institutional & Zero interest rate private wealth environment 7 Capital Markets Day 2021
Slide 8: Alternatives attract
ALTERNATIVES AT TRACT 81% of investors expect to increase allocations to alternatives* * Preqin: Future of Alternatives 2025 survey 8 Capital Markets Day 2021
Slide 9: Alternatives attract
ALTERNATIVES Natural Resources 2010–2025 AT TRACT Alternative Assets Under Management 2020 vs. 2025 Real Estate 1,046 1,238 +20% Infrastructure 639 795 +18% Real Estate 2010–2025 Natural Resources 211 271 +24% 9 Capital Markets Day 2021
Slide 10: We strive to be a Nordic forerunner in alternative investments
WE STRIVE TO BE A NORDIC FORERUNNER IN ALTERNATIVE INVESTMENTS FOCUSING ON SUSTAINABILITY 10 Capital Markets Day 2021
Slide 11: Strategic priorities 2021–2023
STRATEGIC PRIORITIES 2021–2023 We put impact and renewable energy 1 at the heart of our operations 2 We seek to scale all our businesses We are expanding the sales and We optimise return on 3 distribution of our private equity 4 capital and balance sheet funds usage
Slide 12: We put impact and renewable energy at the heart of our operations
WE PUT IMPACT AND RENEWABLE ENERGY 1 AT THE HEART OF OUR OPERATION S 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,
Slide 13: We seek to scale all our businesses
WE SEEK TO SCALE 2 ALL OUR BUSINESSES 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
Slide 14: We are expanding the sales and distribution of our private equity funds
WE ARE EXPANDING THE SALES AND DISTRIBUTION OF 3 OUR PRIVATE EQUITY FUNDS We are starting a strategic partnership with Aktia, which We are seeking new will open a significant international distribution distribution channel for our channels. products. We are strengthening our own sales towards major
Slide 15: We optimise return on capital and balance sheet usage
WE OPTIMISE RETURN ON CAPITAL AND 4 BALANCE SHEET USAGE 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 gro
Slide 16: Strategic roadmap for the Group
STRATEGIC ROADMAP FOR THE GROUP 2021 2022 2023 • Ensure synergies with Aktia • Maximise the potential of Aktia • Grow internationally in Tier 1 • Grow Real Estate, launch cooperation • Scale up channels in new markets Bioindustry and Infra funds • Grow internationally in Tier 1 • Launch Solarwind II
Slide 17: Competitive shareholder returns
COMPETITIVE SHAREHOLDER RETURNS Growth in Stable Growth of Increased Performance assets under recurring = recurring + fees + efficiency of management margins earnings balance sheet Earnings Growth Competitive shareholder returns 17 Capital Markets Day 2021
Slide 18: Long-term financial targets
LONG-TERM FINANCIA L TARGETS GROWTH >15% growth in recurring revenues PROFITABILITY Operating profit >25% SHAREHOLDER VALUE ROE >15% Taaleri’s objective is to distribute to shareholders at least 50 percent of the profit for the financial year, DIVIDEND POLICY as well as the capital that the company
Slide 19: New strategy is built on Taaleri's strengths
NEW STRATEGY IS BUILT ON TAALERI’S UNIQUE PRODUCT OFFERING ACROSS STRONG TRACK-RECORD IN CONNECTING CAPITAL, STRENGTHS SELECTED ASSET IDEAS, TALENT AND CLASSES ENTREPRENEURSHIP Diverse Integrated offering in way of impact and working renewables End-to-end expertise ROBUST END-TO-END CAPABILITIES TO
Slide 20: Taaleri group structure
SHAREHOLDERS TAALERI Strong returns PRIVATE ASSET MANAGEMENT STRATEGIC INVESTMENTS (. G Steady BIOINDUSTRY INFRASTRUCTURE cash flow RENEWABLE” ENERGY Diverse offering End-to-end expertise Integrated way of working > << Private equity funds Ls eel Distribution: Strategic seed Aktia investments Invest
Slide 21: Cooperation agreement with Aktia
COOPERATION AGREEMENT WITH AKTIA • As part of the transaction regarding Taaleri’s wealth management operations, Taaleri and Aktia agreed on cooperation in terms of development, distribution, sales and marketing of Taaleri’s alternative investment products • Aktia will distribute Taaleri’s alternativ
Slide 22: Q&A
Q&A TAALERI – IMPACT THROUGH ALTERNATIVES 22 Capital Markets Day 2021
Slide 23: Our businesses deliver on our group-level goals
OUR BUSINESSES DELIVER ON OUR GROUP-LEVEL GOALS 23 Capital Markets Day 2021
Slide 24: Private Asset Management
PRIVATE ASSET MANAGEMENT 24 Capital Markets Day 2021
Slide 25: Private Asset Management
PRIVATE ASSET MANAGEMENT • Among the rare few Nordic players that possess the expertise and resources to create a positive impact while delivering strong returns • An investment and asset manager with a convincing 10- year track record • Strong capabilities in developing and managing sustainable inf
Slide 26: Taaleri alternative funds earnings model
TAALERI ALTERNATIVE FUNDS EARNINGS MODEL Taaleri receives long-term income from its alternative funds. The fee income comprises of management fees and carried interest. The recognition of fee income is somewhat different between domestic and international funds. 26 Capital Markets Day 2021
Slide 27: Renewable Energy
RENEWABLE ENERGY 27 Capital Markets Day 2021
Slide 28: Renewable Energy – What we do
RENEWABLE ENERGY WHAT WE DO AUM • Invest in utility-scale wind and solar power plants €700 4 • Manage energy infrastructure assets throughout their million funds entire lifecycles • One of the largest teams in Europe, with end-to-end expertise in project development, deal sourcing, technical due dil
Slide 29: Renewable Energy – Our strategic priorities
RENEWABLE ENERGY – OUR STRATEGIC PRIORITIES CONTINUE THE Maximise the performance and value of the solar and GROWTH IN FUND wind investments under management, making Taaleri MANAGEMENT Energia managed funds attractive to a wide pool of institutional investors Together with our investors, we are EXPA
Slide 30: Renewable Energy roadmap 2021–2023
RENEWABLE ENERGY ROADMA P 2021–20 23 HOW WE EXECUTE OUR STRATEGY 2021 2022 2023 Managing the construction of Reaching the effective end of Managing the construction of SolarWind I and II fund SolarWind II fund investment SolarWind II fund projects projects period 2025 First closing of the SolarWind
Slide 31: Renewable Energy – A strong team with deep expertise
RENEWABLE ENERGY A STRONG TEAM WITH DEEP EXPERTISE TEAM EMPLOYEES VALUE ADD Deal sourcing, transaction execution at entry and exit, INVESTMENT 16 financial engineering, refinancing, investment management Technical due diligence management, on-time and budget delivery, TECHNICAL 8 production optimisa
Slide 32: Renewable Energy technology and geography
RENEWABLE ENERGY TECHNOLOGY AND GEOGRAPHY Source: Bloomberg New Energy Finance Nordics Southeast & Baltics Poland Europe Iberia Texas 32 Capital Markets Day 2021
Slide 33: Renewable Energy – A platform for future growth
RENEWABLE ENERGY A PLATFORM FOR FUTURE GROWTH STRONG RELATIONSHIPS WITH OUR INSTITUTIONAL ANCHOR INVESTORS 33 Capital Markets Day 2021
Slide 34: Q&A
Q&A TAALERI – IMPACT THROUGH ALTERNATIVES 34 Capital Markets Day 2021
Slide 35: Real Estate
REAL ESTATE 35 Capital Markets Day 2021
Slide 36: Real Estate – What we do
REAL ESTATE WHAT WE DO AUM • Specialise in real estate investments and real estate funds. €400 million • Strong team of 12 real estate investment, finance, development, fund and asset management professionals. • Strong track record in rental residential: among the first managers to introduce housing
Slide 37: Real Estate – Our strategic priorities
REAL ESTATE – OUR STRATEGIC PRIORITIES GROW THE FUND Grow the Fund Management Business through Scalable MANAGEMENT Investment Products and Funds We aim to be BUSINESS the leading local partner for investors who seek to gain EXPAND profitable returns Expand the Managed Account Business through high T
Slide 38: Real Estate roadmap 2021–2023
REAL ESTATE ROADMAP 2021–2023 HOW WE EXECUTE OUR STRATEGY 2021 2022 2023 NEW SCALE UP BROADEN CORE PRODUCTS THE CORE PRODUCTS THE INVESTOR BASE 2025 Ambition Launch a new closed-end Scale up the core funds Launch new scalable housing fund investment products Portfolio management for New fundraising
Slide 39: Real Estate – Our funds & mandates
REAL ESTATE OUR FUNDS & MANDATES TAALERI Asunto VIII LAUNCHING PHASE Type: Closed End Strategy: Built to Rent Residential, ESG TAALERI AKTIA TAALERI TAALERI TAALERI AKTIA Life Kiinteistöt Toimitilakiinteistöt Vuokrakoti Päiväkoti Tallikiinteistöt Portfolio INVESTMENT PERIOD Type: Open End Type: Open
Slide 40: Real Estate – A versatile team of in-house experts
REAL ESTATE A VERSATILE TEAM OF IN-HOUSE EXPERTS TEAM EMPLOYEES VALUE ADD INVESTMENT 4 Deal sourcing, investment analysis, due diligence, acquisitions & sales PROPERTY FINANCE 2 Debt sourcing, finance planning & optimisation, loan & collateral arrangements PROPERTY DEVELOPMENT 2 Project analysis, pr
Slide 41: Real Estate – A platform for future growth
REAL ESTATE A PLATFORM FOR FUTURE GROWTH 41 Capital Markets Day 2021
Slide 42: Q&A
Q&A TAALERI – IMPACT THROUGH ALTERNATIVES 42 Capital Markets Day 2021
Slide 43: Bioindustry
BIOINDUSTRY 43 Capital Markets Day 2021
Slide 44: Bioindustry – What we do
BIOINDUSTRY WHAT WE DO AUM • Focus on investments developing and producing resource-efficient and sustainable biofuels and €45 materials on an industrial scale million • Combine investment capital, industry partnerships and strong expertise on new technologies to offer our investors good returns and
Slide 45: What is bioindustry
WHAT IS BIOINDUSTRY • Bioindustry is a part of bioeconomy • Bioindustry production facilities can use renewable or re-usable natural resources as their feedstock. The guiding principle is for bioindustry factories to replace the use of fossil or virgin natural resources. • Modern pulp mills are comm
Slide 46: Bioindustry – Our strategic priorities
BIOINDUSTRY – OUR STRATEGI C PRIORITIES FOCUS ON Our focus areas are in renewable materials and SUSTAINABLE replacing the use of virgin natural resources in several INVESTMENTS different industries like construction, fabrics, energy and mobility We aim to speed up the shift from BUILD PROFESSIONAL f
Slide 47: Bioindustry roadmap 2021–2023
BIOINDUSTRY ROADMA P 2021–2 023 HOW WE EXECUTE OUR STRATEGY 2021 2022 2023 BUILD THE PLATFORM GROW FIRST FUNDS SCALE UP 2025 Ambition Launch of first fund Grow fund size Expand new materials and bio-coal Secure success of Fintoil Secure attractive deal flow Evaluate hydro/pump storage AUM Bio-coal i
Slide 48: Taaleri Bioindustry team with deep technological knowledge
TAALERI BIOINDUSTRY TEAM WITH DEEP TECHNOLOGI CAL KNOWLEDGE TEAM EMPLOYEES VALUE ADD Deal sourcing, transaction execution at entry and exit, financial engineering, INVESTMENT 1 refinancings, investment management Technical due diligence management, on time and budget delivery, TECHNICAL 1 production
Slide 49: Q&A
Q&A TAALERI – IMPACT THROUGH ALTERNATIVES 49 Capital Markets Day 2021
Slide 50: Strategic Investments
STRATEGIC INVESTMENTS 50 Capital Markets Day 2021
Slide 51: Taaleri group structure
SHAREHOLDERS TAALERI Strong returns PRIVATE ASSET MANAGEMENT STRATEGIC INVESTMENTS (. G Steady BIOINDUSTRY INFRASTRUCTURE cash flow RENEWABLE” ENERGY Diverse offering End-to-end expertise Integrated way of working > << Private equity funds Ls eel Distribution: Strategic seed Aktia investments Invest
Slide 52: Taaleri's Strategic Investments
TAALERI’S STRATEGIC INVESTMENTS Non-life insurance company specialising in guarantee insurance STRATEGIC SEED INVESTMENTS IN PRIVATE ASSET MANAGEMENT TOTAL MEUR 24 RENEWABLE ENERGY REAL ESTATE BIOINDUSTRY FINTOIL Turun Toriparkki Truscott-Gilliland East Munkkiniemi Group RE Sepos Oy Refiner of crude
Slide 53: Garantia
GARANTIA 53 Capital Markets Day 2021
Slide 54: Garantia as part of the Taaleri Group
GARANTIA AS PART OF THE TAALERI GROUP • Garantia has strong positive cash flows and continues to grow profitably. • Runs as an independent company, complying with the Financial Supervisory Authority rules for the group. • Garantia has its own external Board, Corporate Governance, business plan and r
Slide 55: Garantia – What we do
GARANTIA WHAT WE DO €1.82 38% • Our guarantee is a collateral when there is a need to increase billion Combined trustworthiness. 12/2020 ratio • We provide our customers with easy and cost-effective Gross insurance exposure guarantee solutions and new business opportunities. • We underwrite housing
Slide 56: Garantia's strengths
GARANTIA’S STRENGTHS • Tailored customer-specific solutions • Scalable business model • Strong capital adequacy • Extensive knowledge in the financial sector • Extensive collaboration and distribution network; bancassurance partnerships, online distribution channels and direct relationships 56 Capit
Slide 57: Garantia – Our strategic priorities
GARANTIA – OUR STRATEGIC PRIORITIES Expanding insurance operations with corporate customers to SHIFT FROM SELECTIVE scalable guarantee solutions. Through corporate cooperation UNDERWRITING TO and partnerships, the issuance of guarantees is shifting from RISK POOLING individual risks to an increasing
Slide 58: Garantia roadmap 2021–2023
GARANTIA ROADMA P 2021–2023 HOW WE EXECUTE OUR STRATEGY 2021 2022 2023 FROM INDIVIDUAL RISKS TO MAXIMISING POTENTIAL OF FOCUS ON DIVERSIFIED A DIVERSIFIED PORTFOLIO DISTRIBUTION NETWORK PORTFOLIOS Distribution network potential Distribution network for residential Expanding distribution network scal
Slide 59: Garantia in numbers
GARANTIA IN NUMBERS Business has been on a growth path since the beginning of Taaleri’s ownership in 2015 59 Capital Markets Day 2021
Slide 60: Garantia in numbers
GARANTIA IN NUMBERS 60 Capital Markets Day 2021
Slide 61: Q&A
Q&A TAALERI – IMPACT THROUGH ALTERNATIVES 61 Capital Markets Day 2021
Slide 62: Financials
FINANCIALS 62 Capital Markets Day 2021
Slide 63: Key figures 2016–2020
KEY FIGURES 2016–2 020 INCOME, MEUR OPERATING PROFIT, MEUR EQUITY, MEUR 90 140 133 30 122 126 80 120 106 70 25 33 10 100 94 60 20 12 12 20 50 21 12 80 15 40 5 60 30 10 55 59 10 15 48 52 40 20 40 16 12 12 5 20 10 6 3 0 0 0 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Con
Slide 64: Key figures 2016–2020
KEY FIGURES 2016–2 020 OPERATING PROFIT % RETURN ON EQUITY, % EQUITY RATIO, % 40% 25% 60% 35% 50% 49.7% 20% 30% 25.3% 40% 25% 15% 20% 30% 10.1% 15% 10% 20% 10% 5% 10% 5% 0% 0% 0% 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 DIVIDEND/SHARE, EUR EARNINGS/SHARE, EUR 0,40 1
Slide 65: Income development 2018–2020 according to the revised strategy
INCOME DEVELOPMENT 2018–202 0 – ACCORDING TO THE REVISED STRATEGY WITHOUT WEALTH MANAGEMENT INCOME 2018–2020, MEUR CONTINUING REVENUES 2018–2020, MEUR 50,0 40,0 40,0 30,0 30,0 20,0 20,0 10,0 10,0 0,0 0,0 2018 2019 2020 2018 2019 2020 Continuing Other than continuing Private AM Strategic Investments
Slide 66: Segment result in 2020 according to revised strategy
SEGMENT RESULT IN 2020 ACCORDIN G TO REVISED STRATEGY WEALTH MANAGEMENT CLASSIFI ED AS HELD-FOR- SALE MEUR PRIVATE ASSET Renewable Other private STRATEGIC OTHER TOTAL MANAGEMENT energy asset INVESTMENTS management (Garantia) Continuing earnings* 18.5 14.3 4.2 14.6 2.7 35.9 Performance fees 1.0 1.0 0
Slide 67: Private Asset Management
PRIVATE ASSET MANAGEMENT MEUR PRIVATE ASSET Renewable Other private MANAGEMENT energy asset FINANCIAL PERFORMANCE management Continuing earnings of Renewable Continuing earnings 18.5 14.3 4.2 Energy comprises 77% of Private Asset Performance fees 1.0 1.0 0.0 Management continuing earnings, while Inv
Slide 68: Strategic Investments (Garantia)
STRATEGIC INVESTMENTS (GARANTI A) MEUR STRATEGIC FINANCIAL PERFORMANCE INVESTMENTS (Garantia) Continuing earnings 14.6 Strategic Investments consist only of Garantia Insurance Company Ltd. The strategic seed Performance fees - investments are presented directly under Private Investment operations 2.
Slide 69: Other – Non-strategic investments, Kapitaali, Mobify, Group services
OTHER – NON-STRATEGIC INVESTMENTS, KAPITAALI, MOBIFY, GROUP SERVICES MEUR OTHER FINANCIAL PERFORMANCE The Other group consists of Taaleri’s non-strategic Continuing earnings* 2.7 investments, Taaleri Kapitaali, Mobify and Taaleri Performance fees - Group Services. Investment operations -1.8 The repo
Slide 70: Group balance sheet, MEUR
GROUP BALANCE SHEET, MEUR Assets 2020 2019 The divested wealth management Receivables from credit institutions 25.8 29.1 business is to be sold at its enterprise Receivables from the public and general government 6.7 8.3 value of MEUR 120 + net cash of ~ MEUR Debt securities 1.5 1.5 10. Shares and u
Slide 71: Capital adequacy
CAPITAL ADEQUAC Y RAVA CONGLOMERATE & FINANCING SECTOR CAPITAL ADEQUACY OF RAVA CONGLOMERATE, EUR 1,000 2020 2019 FINANCING SECTOR’S CAPITAL ADEQUACY, 2020 2019 EUR 1,000 (CRR 49 PERMISSION) Shareholders’ equity of the Taaleri Group 133.2 125.7 Common Equity Tier 1 before deductions 79.9 81.2 Goodwi
Slide 72: Q&A
Q&A TAALERI – IMPACT THROUGH ALTERNATIVES 72 Capital Markets Day 2021
Slide 73: Taaleri – Impact through alternatives
TAALERI – IMPACT THROUGH ALTERNATIVES FOCUS GROWTH RETURNS Efficient use of capital Creating value through Strong growth by excelling in alternative and resources enabled impact and renewables investment funds by scalable business models 73
Slide 74: Taaleri
TAALERI