Earnings call transcript: Taaleri reports strong Q3 2025, stock rises 5.26%

Taaleri Group delivered robust financial results for Q3 2025, with operating profit reaching €15.3 million, up from €14.7 million in the previous period. Revenue increased to €23 million from €21.6 million. The company’s stock responded positively, rising by 5.26% to €7.20. According to InvestingPro analysis, the company maintains a GOOD financial health score, with particularly strong profitability metrics. The stock’s RSI currently suggests oversold conditions, potentially indicating a buying opportunity.

Key Takeaways

• Taaleri’s operating profit increased to €15.3 million, indicating strong financial performance.
• Revenue rose to €23 million, driven by growth in private asset management.
• The stock price surged 5.26% post-earnings announcement.
• Taaleri launched the largest infrastructure-focused private equity fund in Finland.

Company Performance

Taaleri Group’s Q3 2025 results showcased a solid financial performance with significant growth in operating profit and revenue. The company strengthened its market position, particularly in residential mortgage guarantees, and expanded its distribution channels. Despite challenges in the Finnish housing market and slower M&A activity, Taaleri’s diversified investment portfolio across energy, real estate, and logistics sectors provided resilience.

Financial Highlights

• Revenue: €23 million, up from €21.6 million in the previous period.
• Operating Profit: €15.3 million, up from €14.7 million.
• Continuing Earnings: €10.1 million, a 4.2% increase.
• Net Investment Income: €10.5 million.
• Fair Value Changes: €7.4 million.

Market Reaction

Following the earnings announcement, Taaleri’s stock price rose by 5.26% to €7.20. Trading at a P/E ratio of 10.24, InvestingPro analysis suggests the stock is currently undervalued. The stock has remained within its 52-week range, with a high of €8.48 and a low of €6.16. While the positive market reaction reflects investor confidence, analysts anticipate a sales decline in the current year. Discover more detailed valuation insights and analyst forecasts with InvestingPro’s comprehensive research reports.

Outlook & Guidance

Taaleri aims for a 12% average annual growth in operating profit and targets a return on equity of over 15%. The company plans to maintain a minimum dividend payout ratio of 50%. Despite expectations of continuing earnings slightly below the comparison period, Taaleri remains focused on new investment opportunities in first-of-kind facilities and generational business transformations.

Executive Commentary

Ilkka Laurila, CEO, highlighted the importance of cash flow-generating businesses, stating, "It’s much easier to sleep your nights when having solid cash flow generating businesses." CFO Lauri Lipsanen noted, "The extended weak development of the Finnish housing market in recent years has reflected in Taaleri’s result."

Risks and Challenges

• Weakness in the Finnish housing market could impact future earnings.
• Slower M&A market activity may limit growth opportunities.
• Declining electricity price forecasts in Finland could affect renewable energy investments.
• Challenges in the renewable energy and bio-industry sectors may pose risks to profitability.

Q&A

During the earnings call, analysts inquired about potential co-investments in the Solar Wind 3 Fund and sought explanations for fair value changes in the investment portfolio. Discussions also covered challenges faced by the Bioindustry One Fund and potential exit strategies for older wind farm assets.

Full transcript - Taaleri Oyj (TAALA) Q3 2025:

Linda Tierala, Investor Relations, Taaleri: Good morning and welcome to the presentation of Taaleri’s Q3 2025 results. My name is Linda Tierala and I’m heading Investor Relations here at Taaleri. With me presenting today, we have Ilkka Laurila, our CEO, and Lauri Lipsanen, our CFO. Following the presentations, we will host a Q&A session. For those of you wishing to ask a question, you may submit that through the chat box in the webcast platform. Now it’s my pleasure to hand over to Ilkka. Please go ahead.

Ilkka Laurila, CEO, Taaleri Group: Good morning on my behalf as well. My name is Ilkka Laurila and I’m the CEO of Taaleri Group. As usual, it’s time to go through the third quarter result of year 2025. Actually, before we jump into the operational activities during the third quarter, we also had our Capital Markets Day at the beginning of the third quarter. Just as a recap, we also updated our strategic priorities from 2026 to 2028, together with our updated financial targets. In the current year, the target is to order priorities three-fold. First of all, increase the awareness that would drive growth both in mortgage and credit guarantees. Secondly, expand the distribution channel with new partnerships. Finally, investigate international opportunities in our neighboring markets.

In private asset management, the target is two-fold: increase the fund sizes within our existing strategies, as well as to expand to new strategies in which we believe that we can kind of identify both customer demand and opportunities to scale either organically or inorganically. In development capital, of which reporting we have updated in this quarter, the target is to kind of exceed the target return on equity, which we updated both in current and new investments, and as well as in development projects, by combining our active ownership and expertise and also working with the best possible partners. All these activities are supported by our M&A and M&A capabilities. If we kind of conclude the execution, even though it’s still year 2025, the execution of this strategy, we can already see some results in the third quarter.

First of all, in current, obviously, as we can see from the result and what we have communicated, the market share is increasing. One factor driving that is the increased awareness of the businesses. In addition to that, we hopefully can see news in the near future in other kinds of targets as well. In private asset management, obviously, existing strategies are continuing their investing activities. We have, like said in our Capital Markets Day, we see a lot of opportunities in new strategies and we are actively looking at those at the moment. In development capital, new people in place, new processes, and therefore new development in that and building a pipeline for new kind of investments. Obviously, when the time is set, the news are published on that front as well. In M&A again, it’s a process.

We are building a process and we are already having a dialogue with several kind of counterparties. In the Finnish market, in the neighboring market, in existing businesses, as well as in kind of new strategies and also in a wider kind of geographical scope. All sort of kind of target discussions that we are having, obviously, all of those are kind of initiated by us and therefore it will typically take time and you never know what will happen at the end of the process. It’s a continuous process which we have initiated this year. Starting with the Q3 highlights, starting with the continuing earnings, in which we had a quite solid development, increased by 4.2% up to €10.1 million. In private asset management, the increase was 8.1%. In current year, the continued earnings remained at a rather stable level.

In current year, market share and the market position have strengthened significantly during this year. The insurance service result grew slightly during the third quarter up to €3.5 million. As everybody can see, who have opened our third quarter report, we increased the transparency for the investors when it comes to our investment segment and activities in there. We have now classified investments into development capital, fund investments, and other investments. We will obviously go through some of the highlights on those categories as well during the presentation. The kind of definition of the development capital is such that Taaleri plays an active role both in value creation as well as in exit planning of those entities.

The kind of third quarter result was quite significantly defined by the fair value changes that were booked on the investments and especially the valuation method, which we shifted during the third quarter in one of the wind farms in Texas from acquisition cost to net asset value, which is reported in our fund report. Out of our funds, Tesola Venture has also invested in the same wind farm. In real estate, Eden Living, the joint venture with Keva, made its second investments in Espoo, as well as in the Bioindustry One Fund. They had their sixth investment in Finnish Food Factory, which is a producer of plant-based daily alternatives, and they are focusing on active value creation in their NATO target companies as well. Following with the key figures.

If you take a look at the upper slide, the upper boxes there, you can actually see that all the headline numbers have improved compared to a year ago previous period. Revenue from €21.6 million to €23 million and operating profit from €14.7 million to €15.3 million. When taking a look at the lower side boxes, the picture is more mixed. The key drivers there are that during the previous 12-month period, we had a quite extraordinary good year in investing activities within Taaleri’s investment portfolio, as well as we recognized some of the development portfolio revenues from the renewable energy businesses, which had a positive impact for the 12-month period previously. To the segments, starting with current year. Like already mentioned, Taaleri’s share of residential mortgage guarantees increased and the result on the investment operations was actually really solid.

The net income from investment operations was €3.7 million compared to the previous period when it was €6.2 million. Like I said, it was exceptionally strong during that period of time. Combined ratio has slightly weakened and therefore the increase in insurance service expenses can be seen. On the insurance portfolio, it has grown that 3.5%, which is some sort of proxy also for the, let’s say, future likely revenue development. Portfolio is at €1.7 billion, 83% relates to consumer exposure and 17% corporate exposure. Investment portfolio, €157 million. In a quite, let’s say, neutral position in such a way that roughly 75% or so is related to fixed income type of investments and instruments. The total size is €157 million, which is at a good level. Following with the private asset management and starting with the renewable energy. Continuing earnings grew.

The key driver there obviously being Solar Wind 3 Fund and its fundraising, which has progressed compared to a year ago situation. It still continues until the end of the year. It’s open for one of the major investors. Hopefully we see some results before the year ends. As a reminder, the fund is the largest infrastructure-focused private equity fund in Finland. Therefore it’s exceptionally good, kind of a showcase in our capabilities. Revenue increased from €5.2 million to €6.9 million, followed by the operating profit remaining still at a rather stable level on €2.1 million. Then other private asset management. In addition to that sixth investment in the Bioindustry One Fund, the Bio Coal Factory in Joensuu is continuing its ramp-up and seeking additional funding to improve the energy efficiency and therefore the kind of guaranteed the kind of the speedy ramp-up process after that additional funding.

In real estate, the kind of the continuing earnings increase is majorly explained by the retroactive management fees from the certain funds, which were recognized in the third quarter. Therefore, operating profit actually was positive in this quarter, being that €100,000 roughly. AUM is still that €1 billion in other private asset management. The investment segment, the reclassification obviously can be seen in our reporting. Like I said, it’s now split in three categories: development capital, fund investments, and other investments. We have a new team together with the old team that manages and is building kind of the pipeline for the new investments. Therefore, the fair value changes increased at €7.4 million, which flows directly obviously to operating profit. The total size of the investment portfolio or the fair value of that is that €65 million compared to €52 million during the last quarter.

Here you can see the split of the investment portfolio. Three largest investments, meaning the wind farm in Texas, Fintoil Hamina, and Turun Toriparkki are clearly more than 50%. Jointly together with Toripalk Group is obviously the biggest part of our investment portfolio. We also included some kind of highlights of those major investments that are categorized under the development capital. Maybe highlighting out of these that if you take a look at Turun Toriparkki, which is a parking facility situated in underground close to Market Square in Turku, the parking volumes have increased during this year 4.8%. The company has been able to make extra payment of the bank loans and returned capital to the shareholders. It’s a very solid, stable business obviously and very predictable and therefore good quality and good value business.

Fintoil Hamina, which at least most of you are familiar with, the net sales increased 67% in second quarter 2025 compared to previous year and in total 68% during the first quarter compared to the last year numbers. The LTM EBITDA after the second quarter was that €12.4 million. Obviously, when the sales increases and if the sales continue to increase, most likely that will have a positive impact on the EBITDA as well due to the fact that this is typically the process industry, and typically in the process industry, higher capacity utilization has a positive impact for the profitability. Obviously, having said that, also kind of the sales mix has a major impact as well to the profitability, and kind of the market overall has also a major impact for the profitability levels.

Oribalte Group, which is a market leader in pharma and healthcare product logistics in Baltics, has three businesses: wholesale business, marketing business, and in addition to those, they also have an online pharmacy, especially growing rapidly in Latvia. There are also some operations in other Baltic countries, namely Estonia. The growth during the first eight months was that kind of significant, 60% total volume being 6 million in 2024. Obviously, the growth prospects of that sort of business are quite obvious when you have such a good kind of quality business as Oribalte that we consider. Next, Lauri, our CFO, will walk you through our financial results and highlights of that.

Lauri Lipsanen, CFO, Taaleri Group: Thanks, Ilkka. Hi, my name is Lauri Lipsanen, Taaleri Group CFO. Today I’ll present Q3 interim financials to you. Before jumping to the financials, let’s recap our updated long-term financial targets for the strategy period of 2026 to 2028. In connection to the Capital Markets Day, we published these new financial targets. We aim for 12% average annual growth in operating profit from continuous earnings. Return on equity target was amended slightly. Now we will start to measure return on equity at fair value, capturing the full impact of fair value changes and realized investment income. We aim for over 15% return on equity at fair value on average. We keep our dividend payout ratio target at 50% minimum, however, taking possible capital requirements into account. For instance, Ilkka talked about inorganic growth opportunities, which may have an impact on capital requirements.

About Q3 result, in the third quarter, operating profit was €15.3 million, slightly exceeding the comparison period when the operating profit was €14.7 million. There were two key drivers behind the operating profit growth. The first one was the continuing earnings within the private asset management segment, and then net investment income of €10.5 million, of which €7.4 million was related to the investment segment’s fair value changes. Regarding the cost base, other expenses were impacted by billable expenses of €1.8 million, not having an impact on operating profit. Those invoices have been invoices from the funds as they belong to the funds. Personal cost of €3.3 million declined slightly from the comparison period, mostly due to variable personal costs.

Ilkka showed the facts regarding our new investment reporting, and we have now published a new tabular listing of Taaleri’s investments for the investments exceeding a fair value of €1 million. Facts were already covered in the previous pages, and now you can see the new tabular listing format. You can see the basis of accounting by each investment exceeding the fair value of €1 million, background of fair value changes such as discounted cash flow driven or fund net asset value driven changes. It should be noted that fair value of the investments may deviate from the balance sheet or book value depending on the basis of accounting. For instance, we consider that Turun Toriparkki’s fair value is currently €15.8 million, exceeding the book value by €4.8 million. In other words, this investment contains hidden value, which is not visible in our balance sheet or P&L statement.

Investment segment’s fair value and other balance sheet value changes amounted to €13.1 million in total in Q3. Out of that amount, balance sheet impact was €8.3 million and further impacting operating profit by €7.4 million and other comprehensive income by €0.8 million. The main three fair value changes were related to the direct wind park investment in Traskot, Chilin and East Wind, Turun Toriparkki, and Wastewise Group. In Wastewise Group, there was a material machinery breakdown that took place in Q3, which further resulted in the liquidity shortage. Wastewise Group was able to complete an additional funding round early October, which resulted in a material ownership dilution for Taaleri Group. In Q3, we made a write-down of €3.2 million for equity and loans related to the Wastewise in total. In Turun Toriparkki, as Ilkka Laurila presented, the operative performance has been strong.

There was a non-recurring income of €2.1 million, which was booked in Q3, relating to the sale of designated parking spaces with rental priority. As equity method is not applied to Turun Toriparkki investment, positive fair value changes exceeding the book value do not impact on P&L or balance sheet. In the direct wind park investment, the fair value assessment shifted from acquisition cost to net asset value reported in the fund report. Here you can see the quarterly revenue and operating profit. As visible in the black bars, continuing earnings have remained fairly stable. However, the total revenue has been fluctuating. This fluctuation has been mostly driven by net investment income. For instance, in Q1, market turbulence coupled with adverse euro/USD effects rate changes drove net investment income negative, whereas in Q3, net investment income was positively impacted by aforementioned fair value changes.

This quarter revenue fluctuation has resulted in a respective or similar fluctuation in terms of operating profit. However, when we look at these figures over a longer period, the composition of revenue is more balanced. Both revenue and operating profit have been developed very stable. We have been, however, lacking growth recently, as in 2024, both revenue and operating profit were positively impacted by strong net investment result in Taaleri subject to declined interest rates and strong equity gains, whereas during this year, Taaleri’s net investment income has been lower. Continuing earnings growth has been modest, mostly because of the declined interest service result of Taaleri. As a result of changes in Taaleri’s financials, operating profit level on an LTM basis has been lower this year compared to the last year.

What comes to Taaleri’s business, the extended weak development of the Finnish housing market in recent years has reflected in Taaleri’s result. However, you can see from the back bars that interest revenue has remained quite stable over a longer period, whilst interest service expenses have increased slightly. On the other hand, as stated in the CEO section, Taaleri’s market position has strengthened materially during this year. However, the related impact is reflected in interest revenue with a delay. When looking at the operating profit of Taaleri, it has declined on an LTM basis, mainly because of previously mentioned strong investment result in 2024 and also by increased insurance service expenses. A couple of words about Taaleri’s SSL KPIs. Combined annual ratio has remained strong, despite it has increased this year, driven by increased claims ratio.

The driver behind the increased claims ratio is that it has been driven by changes in estimates of claims that have incurred during previous financial years. The impact of new claims incurred this year has not been that material, as it has impacted or increased claims ratio only by 2 percentage points or €0.2 million compared to the last year. Solvency ratio has also remained very strong. What comes to private asset management, continuing earnings have grown by 13.3% on an LTM basis. This has been mainly driven by renewable energy business, especially driven by Solar Wind 3. As a result, profitability has improved to around 30% of revenue. You can see with the blue that other continuing earnings have increased, and that increase is mostly due to invoicing of these pass-through items not having an impact on operating profit. A short outlook on Taaleri’s balance sheet.

Both equity ratio and balance sheet have remained strong. Total assets amounting to €303 million and equity ratio being 72% in Q3. Over €200 million of total assets were tied up in investments, of which over €40 million was related to development capital and €150 million to Taaleri’s investment portfolio. Taaleri’s investment portfolio has declined slightly compared to the previous quarter and compared to the year-end, as Taaleri recently distributed a dividend of €7.5 million to Taaleri Plc in late September. Taaleri further distributed the second dividend transfer of €7 million in early October. Now our CEO, Ilkka, will present an outlook for 2025.

Ilkka Laurila, CEO, Taaleri Group: Thank you, Lauri. No major updates when it comes to our outlook. In private asset management, the growth in continuing earnings is linked to the size of the final size of the Solar Wind 3 Fund. The kind of the exits of Wind 2 and 3 funds have been most likely postponed for the next year, like we have said already earlier. In other private asset management business, operating profit is expected to remain negative. However, the kind of the profitability should develop positively compared to the previous year. In investment activities, the operating profit for 2025 will depend obviously among other things, the changes in the fair values, especially in the development capital, as well as also in the other investment asset categories.

In Taaleri, continuing earnings expected to remain slightly below the comparison period, partly due to the prolonged weak development in the Finnish housing market, which is reflected in the company’s result at this stage. Obviously, the investment activities faced the exceptionally strong comparison period. In other group activities, operating expenses are expected to remain approximately at the level of the corresponding period. With that, I think it’s time to conclude the kind of the operational kind of presentation, and we have then time for the Q&A.

Linda Tierala, Investor Relations, Taaleri: Thank you, Ilkka, and thank you, Lauri. Now we will have time for Q&A. If you would like to ask a question, you may do so at any time during the Q&A session by submitting the question through the chat box in the webcast platform. Those of you on the floor, if you would like to ask a question, please wait for the microphone before asking. All right, the first question comes from Sauli Vilén from Inderes. Please go ahead.

Yes, thank you. Good afternoon. About your renewed investment team on the group level, you have the team of four people at the moment. Are these people, like, have you just reallocated resources inside the company? Are they new recruitments?

Ilkka Laurila, CEO, Taaleri Group: Both. We have reallocated resources, but we have Antti Salmela joined three months ago to Taaleri. Antti has a very long experience in the private equity industry, namely at Vaaka Partners. He joined three months ago and is now kind of taking responsibility of the development capital activities.

Can you give us any insight, like what kind of targets or what sectors or however, what kind of targets are the team currently scanning? Obviously, I guess they are focusing on something.

Obviously there’s a lot of opportunities in the market, and the more we are able to, let’s say, convey the message that we are active in the market, the more pipeline and deal flow you’re able to build. If you would like to categorize, there’s maybe two kinds of investments which we have also communicated earlier. There’s these types of investments like Fintoil and BioCoal in Joensuu, the factory type of investments in which we either invest with our own or together with some other partners. Typically, those might be these kind of first-of-a-kind facilities or factories. That’s one category.

The second category is that there is some sort of generational shift or some sort of other transformational opportunity in a company, which is typically maybe family-owned businesses or a similar type of ownership structure so that they are not able to maybe take the risk to take the leap and invest in their future growth. We are able to help them in that kind of opportunities together with our partners or alone. Those are the two classic categories that we are looking at and seeing in the market.

On the investments, how should we think about the ticket sizes? What would be a sweet spot ticket size for you? Obviously, what is the limit that it’s not worth doing under some amount for you? I guess there’s no point of doing hundreds of thousands of euros investments on your balance sheet.

Yeah, we haven’t set any specific target sizes for the tickets. Neither have we set any minimum sizes for the tickets, obviously. The kind of the first investment can actually be quite small if there is then continuing kind of investment opportunities going forward in that sort of statement. Obviously, our balance sheet sets some sort of limiting factors, but we haven’t set any specific targets.

If I can continue still on the Bioindustry One, you made some fairly large write-downs during the third quarter there. Obviously, the market situation on the whole bioindustry is kind of difficult, as you say in the report. The question is how confident you are that you actually can raise the second flagship fund on bio in 2026 as you were planning on the CMD, considering the current track record of Fund One and the market situation?

If you would take kind of, let’s say, more strategic context, that’s one example and exactly the reason why we made the insourcing of the distribution for tier two and tier three type of customers. The kind of and discontinued the exclusivity agreement with Daktia, namely meaning that we need to be able to face the investors and the LPs and to explain the market situation and explain the activities that we take in our funds. In that namely fund, the logic is such that obviously that specific target entity is facing some kind of some issues in their operations and that’s why we took a write-down. On the opposite, the upgrades of the valuations only take place in that fund when there is some sort of new financing route on that sort of activities.

We haven’t taken the valuations up, but we took the write-down because of that kind of the refinancing of the operational kind of issues in that one investment. In that sense, because those investments are kind of early phase investments, that’s why at this stage when the fund is still in investment phase, it’s too early to say and make any conclusions of the value of those investments or the kind of the end result. That’s why we need to have a direct dialogue with our customers and LPs to be able to explain the factors that are driving the valuations in the certain funds.

Linda Tierala, Investor Relations, Taaleri: Thank you. The next question comes from Patrick Campbell from Nordea.

Hi, thank you. I just had a few quick ones. First off, starting with Solar Wind 3, could you maybe explain the rationale behind the €70 million co-investment and what effects does it have on Taaleri, if any?

Ilkka Laurila, CEO, Taaleri Group: The logic is that it increases the kind of the investment capacity of the fund. It’s no fee, no carry type of amount, but it kind of gives opportunity to participate in a larger project with that co-investment vehicle. That’s the logic.

Thank you. Just going back to the investment segment, is it correct to assume that the fair value changes are going to be revised each quarter?

As they have been so far as well. In this quarter, we had a quite, in many, there are two categories. I think from the numbers perspective or the target entity perspective, there was actually in quite many target companies, they had some kind of operational events that explain the kind of the fair value changes that can happen in every quarter. In that one wind farm in Texas, we made that shift to recognize the kind of the value based on the kind of the fund value because it’s now categorized under the development capital. That’s the logic. In that sense, you basically, I think the answer is that you never know. Obviously, we do it in every quarter like we have done it earlier as well.

All right, thank you. Just the last one on guarantee and the claims ratio increased this year. Could you maybe break it down a bit more clearly? Maybe how should we think about the claims ratio going into next year?

Lauri Lipsanen, CFO, Taaleri Group: Yeah, as I’ve said, the impact of new claims incurred this year played only a minor role. That increased the claims ratio by 2 percentage points, actually 1.8 percentage points to be exact. The rest of the change were mainly driven by the changes in estimates related to the claims incurred in the previous years.

Is there any possibility that next year we would see similar changes from previous years as well?

It’s hard to say what’s going to happen with the estimates each year, but there might be changes or not.

All right.

Ilkka Laurila, CEO, Taaleri Group: IFRS, you know.

Thank you.

By combining insurance business and IFRS, not the perfect combination.

Linda Tierala, Investor Relations, Taaleri: We have some follow-up questions from Sauli Vilén.

Yes, thanks. About the Canadian BioCoal, you obviously moved on to the next phase, so to speak, on the planning, the funding. Do you see it as a viable option to fund the whole thing from your balance sheet?

Ilkka Laurila, CEO, Taaleri Group: At this stage, I see it quite unlikely. The amount of capital that is required to establish the facilities is quite sizable. In that sense, at this stage, I would say it’s quite unlikely.

Okay, great. About the Fintoil figures, can you help us a bit how we should interpret those? Are those figures like in the ballpark where they should be? How the utilization actually is at the moment? Just trying to figure out when the Fintoil would be in the optimal spot to refinance, obviously.

As you see from the numbers, the growth pace has been quite fast during this year. Obviously, the utilization rates, which we have communicated earlier, are, let’s say, not at an optimal level, but already start to be on a high level. There is, like typically in many, let’s say, new process type of industries, a certain bottlenecks within the operations. When you invest in those bottlenecks, you can kind of improve the sales mix and opportunities in there. Therefore, we see actually quite significant opportunities, or they see quite significant opportunities in their business going forward as well.

Do you think that with the current figures, the refinance could be done? Obviously, 12 months ago, it wasn’t possible and then you kind of stepped in with your balance sheet?

As we have said earlier, there’s a certain kind of timeline in which it has to be done. Obviously, we have still plenty of time to do that. Obviously, improving profitability helps the kind of the refinancing. As we are not in the middle of or haven’t executed that one, it’s difficult to say what sort of impact certain KPIs and the parameters will have.

Okay. Just out of curiosity about the Turun Toriparkki fair value difference between the actual book value or your view of the fair value, why isn’t the book value just the fair value you say? I guess you are the ones who decide how to value Turun Toriparkki since you own the 40% or so. How does the process go, basically?

Lauri Lipsanen, CFO, Taaleri Group: Is your question that why it’s in the balance sheet?

Yeah, why the balance sheet number is lower than what you think of the fair value, since at least I have thought that you are the ones who decide what the actual fair value is.

Yeah, yeah, yeah. We have calculated the current fair value, estimated that. What comes to balance sheet, it’s been consolidated based on the equity methods. Basically, there is a purchase price and then the accumulated profit or loss impacts on that. If you distribute capital, it reduces the value of that balance sheet item.

Ilkka Laurila, CEO, Taaleri Group: IFRS, you know.

Lauri Lipsanen, CFO, Taaleri Group: Yes.

Yeah, that sounds logical. Then finally, one more about the old wind farms. Obviously, the electricity price in Finland is not what you would like it to be at the moment. How long can you kick the can, so to speak, forward? Is there any deadline somewhere when you just have to move with the farms, or is it okay just to wait for the better market situation for a longer period of time?

Ilkka Laurila, CEO, Taaleri Group: Sorry for related to...

The old wind farms.

Okay. We are not, let’s say, in that sort of situation that we would need to sell them first. We can, not eternity, but we can still continue the life cycle of those farms. We have done it with the refinancing in the previous quarter. We are not in a hurry in that sense. Obviously, like we have communicated actively, we are scanning the market and the opportunities. It’s just optimizing the value for the investors. That’s where it comes to.

To make sure that in each quarter you test the carry already booked on those.

Yes.

Yes, great. Okay, that’s all for me. Thank you.

Linda Tierala, Investor Relations, Taaleri: There’s a related question online on the exit market for these older wind farms as well. If you could elaborate a bit on what makes a challenging market environment now?

Ilkka Laurila, CEO, Taaleri Group: I would say it’s actually maybe two-folded. Obviously, I think everybody can see if you take a look at any statistics. I think the overall M&A market in any businesses is lagging behind the kind of activity that used to be normal a few years back. That’s one element, the slow M&A market overall. Secondly, in Finland, the electricity price forecasts have come down recently. Obviously, you don’t know when they start to go up. That kind of fluctuating electricity price forecasts have an impact for processes as well, especially considering these Finnish assets.

Linda Tierala, Investor Relations, Taaleri: Regarding the wind farm asset in Texas, is there a potential buyer already? Is that the reason behind the increase in fair value?

Ilkka Laurila, CEO, Taaleri Group: Our direct ownership is that 7% in that wind farm. In that sense, we are in a backseat of any processes. Obviously, I would put it more in an overall context. There’s maybe four different kind of buyer categories. There’s utility companies, there’s independent power producers, there’s financial sponsors, as well as there is this sovereign type of investors that are looking at those big assets, but not maybe communicating specifically towards these specific assets.

Linda Tierala, Investor Relations, Taaleri: All right, thank you. We have a question about guarantee and the strategic importance. This person is asking regarding when we can expect the guarantee partnership or any expansion news from that business unit. Is there a reason why you are now bringing guarantee into the strategy and why have you not done it earlier?

Ilkka Laurila, CEO, Taaleri Group: There are many questions, maybe starting from the latter one. Obviously, I don’t know the facts why that was not the case earlier because I was not in the company at the time. With the existing strategy or the new strategy, we had a quite thorough process with the extended management team in which we kind of make the conclusion that it’s a crucial part in our business, namely for the reasons that we explained in our Capital Markets Day. It’s a solid cash flow business, kind of countercyclical compared to our equity risk that we take elsewhere in our group. It provides stable cash flow, which helps us to kind of expand our activities in private asset management, providing, for example, seed capital to new funds and new operations.

That’s why I think that especially in times like this, when the market is, and the kind of both the fundraising market and the M&A market is not, let’s say, in an optimal pace, it’s highly valuable to have these kind of assets which are generating stable cash flow. It’s much easier to sleep your nights when having solid cash flow generating businesses.

Linda Tierala, Investor Relations, Taaleri: Thank you for that answer. Are there any further questions from the audience? If there are no further questions, then we are ready to conclude this webcast at this time. We thank you very much for all of your thoughtful questions and also for your time. Taaleri will publish our results for the full year 2025 on February 11. Stay tuned for that. I wish you a pleasant rest of the day.

Ilkka Laurila, CEO, Taaleri Group: Thank you.

Lauri Lipsanen, CFO, Taaleri Group: Thank you.

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