Taaleri Oyj - Financial Statement Release

Taaleri Group Financial Statements bulletin January-December 2016

TAALERI PLC FINANCIAL STATEMENTS BULLETIN 28 FEBRUARY 2017 AT 9.00

TAALERI GROUP 1 JANUARY – 31 DECEMBER 2016

  -- The Group's income grew by 3.7 percent to EUR 60.6 million (1–12/2015: EUR
     58.4 million)
  -- The Group's assets under management grew by 22.7 percent to EUR 4.8 billion
     (EUR 3.9 billion).
  -- The Group's operating profit was EUR 16.3 million (47.4). The result for
     the reference year 2015 included the entry of EUR 27.3 million of negative
     goodwill from the acquisition of Garantia.
  -- The Group's adjusted operating profit was EUR 16.3 million (20.1). EUR 2.5
     million costs related to rebranding, stock exchange listing and sale of
     Finsilva affect the financial comparability.
  -- The result per share was EUR 0.45 (1.53) and the adjusted result per share
     EUR 0.45 (0.55).
  -- The Board of Directors proposes a dividend of EUR 0.22 per share to be
     distributed.
  -- The company carried out a major brand change, and changed its name from
     Taaleritehdas Plc to Taaleri Plc in January 2016.

TAALERI GROUP 1 JULY – 31 DECEMBER 2016

  -- The Group’s income declined by 5.4 percent to EUR 26.9 million (1-7/2015:
     EUR 28.4 million)
  -- The Group’s assets under management grew by 14 percent to EUR 4.8 billion
     (30 June 2016: 4.2)
  -- The Group’s operating profit was EUR 4.6 million (8.3).
  -- The result per share was EUR 0.12 (0.21)

The Group's realised financial          Year      Year      H2      H2      2016
 objectives                             2016      2015    2016    2015  objectiv
                                                                               e
--------------------------------------------------------------------------------
Adjusted operating profit, EUR          16.3      20.1     4.6     8.3         -
 million                                                                        
--------------------------------------------------------------------------------
Adjusted operating profit,  %           27.0      34.4    17.1    29.0    > 15.0
--------------------------------------------------------------------------------
Adjusted profit after taxes, EUR        12.8      16.8     3.6     6.9         -
 million                                                                        
--------------------------------------------------------------------------------
Adjusted return on equity,  %           13.4      24.9     7.9    14.8   > 15.0*
--------------------------------------------------------------------------------
Equity ratio                            44.0      44.8    44.0    44.8    > 30.0
--------------------------------------------------------------------------------
Conglomerate's capital adequacy        268.9     259.2   268.9   259.2   > 150.0
 ratio,  %                                                                      
--------------------------------------------------------------------------------

* long term objective

Estimate of likely future development

The company’s management thinks that the business environment has become more
demanding, but that the company has an opportunity to win market share in
capital markets. The development of the Wealth Management segment has been
positive, particularly in the latter half of the year, and the company has
gained new customers in a competitive market, thanks to successful and varied
private equity fund projects. The development of the Financing segment has been
positive, both in relation to premiums written and claims incurred. The company
believes that through active sales and high-level risk management, significant
growth can be achieved. It is expected that the Group’s expansion into the
energy sector will significantly increase the assets managed by the company’s
private equity funds in the long term. 

Taaleri’s Board of Directors confirms at least 20 percent of income as the new
target for operating profit. Financial targets related to growth are growth of
more than 15 percent per annum in assets under management for the Wealth
Management segment and growth of more than 15 percent per annum in gross
premiums written for the Financing segment. Taaleri’s target for return on
equity over a long period is more than 15 percent and equity ratio is at least
30 percent. In addition to these, the company is endeavouring to increase the
amount of dividend it distributes, and annually to distribute a competitive
dividend, taking into account the company’s financial and financing situation,
the capital adequacy requirements, and future investment plans. 

CEO Juhani Elomaa on the result

2016 certainly brought plenty of changes and anticipation of other changes to
come, both within the company and in our operating environment. Tensions in the
operating environment, driven by the Brexit referendum and the US presidential
election, in particular, caused much uncertainty, but interestingly the direct
impact on the market was lower and shorter than expected. The long-term effects
remain to be seen, however. 

Taaleri Group achieved good financial results with an operating profit of 27
percent. While the market situation was characterised by nervousness, which
affected customers’ investment activity, thus weakening continuing earnings,
sales profits and the positive development of investment assets drove improved
profits for the period. Streamlining of cost structures also continued to gain
momentum. 

Assets under management increased during the year from EUR 3.9 billion to EUR
4.8 billion. Assets are still growing by a good rate of 20 percent. We see the
fastest growth in private equity funds, where assets under management increased
by more than 40 percent. In June, we established the world's first private
equity fund investing in the circular economy and, at the end of the year, a
solar energy and wind power fund and a fund for social housing, financing the
production of reasonably-priced rental units. 

Taaleri's equity and money market funds also continue to play a significant
role, and last year they were a great success. The continuing earnings from
wealth management have remained at the level of the previous year. Fewer sales
of private equity projects were recorded last year than the year before. On the
other hand, in spring 2016 Taaleri's investment company sold its share of
forestry business Finsilva to Etera, a mutual employment pension insurance
company, from which we recorded a significant sales profit. 

Last year was the first whole financial period that Garantia, which sells
guaranty insurance, was part of Taaleri Group. In August, credit rating company
Standard & Poors confirmed Garantia's credit rating as an independent company
at A- (stable outlook). Garantia's income from insurance premiums grew by 22
percent, a significant change of direction for the company. Garantia's
investment activity was also very successful last year, showing a return of
+5.8 percent. Significant events for Taaleri also included the company's move 
from the First North marketplace to the Helsinki main market as a medium-sized
company with a market value of about EUR 230 million, and the establishment of
its Energy segment. At the end of 2016, a EUR 35 million bond issue targeted at
institutions was significantly oversubscribed. 

Taaleri has published statements on Corporate Governance and Remuneration

Compliance with the Securities Market Association’s Finnish Corporate
Governance Code, Taaleri Plc has published a Corporate Governance Statement and
the Taaleri Group’s Remuneration Statement at the address
www.taaleri.com/en/investor-relations/governance/statements. 

Taaleri Plc

Communications

Additional information:

Juhani Elomaa, CEO, Tel. +358 40 778 9020
Minna Smedsten, CFO, Tel. +358 40 700 1738
Taneli Hassinen, Head of Communications and IR, Tel. +358 40 504 3321

Taaleri in brief

Taaleri is a Finnish financial service company, whose parent company Taaleri
Plc is listed on Nasdaq Helsinki's main market. The Taaleri Group comprises
three business areas: Wealth Management, Financing, and Energy. Taaleri
provides services to institutional investors, companies and private
individuals. The Group’s operational subsidiaries are: Taaleri Wealth
Management Ltd and its subsidiaries, Taaleri Private Equity Funds Group,
Taaleri Investments Group, Taaleri Energia Oy and Garantia Insurance Company
Ltd. In addition, Taaleri has associated companies Fellow Finance Plc, which
offers peer-to-peer lending services, and Inderes Oy, which produces analyses
and media content for investors. 

At the end of 2016, Taaleri had assets under management totalling EUR 4.8
billion and 3,900 wealth management customers. Taaleri Plc has some 2,700
shareholders. Taaleri's operations are supervised by the Finnish Financial
Supervisory Authority. 

More information about our company and services:

www.taaleri.com
www.fellowfinance.fi
www.garantia.fi

Taaleri on Twitter

Attachments:

Taaleri Financial statements bulletin 2016.pdf