Earnings call transcript: Thaleri Q2 2025 sees revenue growth, stock rises

Thaleri reported an 8.3% increase in revenue to €12.9 million for Q2 2025, driven by strong performance in its Private Asset Management segment and Carantia’s investment results. Despite the positive revenue growth, the company did not provide EPS figures, making it challenging to compare against forecasts. The stock price responded positively, climbing 3% in pre-market trading to €7.21. According to InvestingPro data, the company maintains a healthy dividend yield of 7.14% and has consistently paid dividends for 13 consecutive years, reflecting investor optimism about the company’s strategic developments and market position.

Key Takeaways

• Revenue grew by 8.3% to €12.9 million.
• Operating profit reached €4.5 million, with a margin of 34.8%.
• Stock price increased by 3% in pre-market trading.
• Strong performance in Private Asset Management and Carantia.
• Discontinued cooperation with Taktia but strengthened sales capabilities.

Company Performance

Thaleri’s revenue growth in Q2 2025 was driven by robust performance in its Private Asset Management segment and Carantia’s investment results. The company’s operating profit stood at €4.5 million, translating to a healthy operating margin of 34.8%. With a strong gross profit margin of 88.2% and a current ratio of 3.71, the company demonstrates solid financial health, earning a "GOOD" rating from InvestingPro’s comprehensive analysis. This growth aligns with broader industry trends, particularly in renewable energy and asset management, where Thaleri has been actively expanding.

Financial Highlights

• Revenue: €12.9 million, up 8.3% year-over-year.
• Operating profit: €4.5 million.
• Operating profit margin: 34.8%.
• Continuing earnings growth on a rolling 12-month basis: 1.5%.

Market Reaction

Thaleri’s stock rose 3% in pre-market trading to €7.21, moving closer to its 52-week high of €8.79. Trading at a P/E ratio of 9.57, InvestingPro analysis suggests the stock is currently undervalued, presenting a potential opportunity for investors. This upward trend reflects investor confidence in the company’s strategic direction and operational improvements, particularly in the renewable energy sector. The stock’s movement contrasts with broader market trends, where many companies face challenges due to economic uncertainties. For more undervalued opportunities, visit our Most Undervalued Stocks list.

Outlook & Guidance

Looking forward, Thaleri anticipates positive profitability in its Private Asset Management segment, despite expecting a slight decrease in Carantia’s operating activities. With a market capitalization of $237.54 million and a return on equity of 10%, the company demonstrates strong fundamentals. The company is focusing on developing its renewable energy project portfolio, with wind fund exits likely after 2025. These strategic initiatives are expected to bolster Thaleri’s market position and financial performance in the coming quarters. Discover more detailed insights and 8 additional ProTips about Thaleri through InvestingPro’s comprehensive research reports.

Executive Commentary

CEO Ilkka Laurila highlighted the company’s resilience amid mixed media signals, stating, "Even though the media is somewhat more negative, the actual discussions with investors have been quite positive." CFO Lauri Lipsonen noted the company’s strong liquidity position, with €46 million available, including a €30 million unused revolving credit facility.

Risks and Challenges

• Potential delays in wind fund exits due to slow transaction markets.
• Negative electricity price forecasts impacting renewable energy investments.
• Mixed signals in the bioindustry market could affect investor sentiment.
• Delayed revenue recognition in mortgage guarantee sales.
• Macroeconomic pressures and market saturation in certain segments.

Q&A

During the earnings call, analysts focused on the delays in wind fund exits and the impact of negative electricity price forecasts. The management addressed these concerns, emphasizing ongoing positive investor interest and strategic efforts to mitigate potential challenges in the renewable energy sector.

Full transcript - Taaleri Oyj (TAALA) Q2 2025:

Linda Tiarola, Investor Relations, Thaleri: Good morning, and welcome to Thaleri’s presentation of our results for the 2025. My name is Linda Tiarola, and I’m heading Investor Relations here at Thaleri. With me presenting today, we have Ilkka Laurila, our CEO and our new CFO, Lauri Lipsane. If you would like to ask a question during or after this webcast, you may do so in writing at any time through the webcast platform. And now it’s my pleasure to hand over this presentation to Ilk.

Please go ahead.

Ilkka Laurila, CEO, Thaleri: Thank you, Linda. Good morning on my behalf as well. And as usually, we will go through some of the highlights that has happened during the second quarter twenty five, and that is then followed by result presentation of Laura Lipsonen, our new CFO. Starting with the highlights of the second quarter. Second quarter was actually quite eventful quarter in our context, even though that all the activities have not been yet seen in the P and L.

There is a lot of things that has happened during the second quarter. But if you take a look at the headline highlights, the first one is that the continuing earnings, especially in the Private Asset Management, grew quite significantly at 34.5%. That is mainly driven by retroactive management fees, but there’s also other good positive development in there. Then if you take a look at the SolarWind three fund, the fundraising activity continued quite strong. Through the second quarter, total amount of the new fund raised new amount that was raised during the second quarter was EUR 64,000,000, and the end result is such that at the moment, the total size of the fund is EUR $5.00 3,000,000, but it’s still open for one bigger investor.

And hopefully, we will see the end result during the 2025. The third highlight is then that the Thaleri strategic partnership with Keva progressed quite nicely during the second quarter, and they were able to make their first investments during the second quarter, and there’s a lot of activities in addition going on at the moment. In Bioindustry side, all the projects still progressing quite nicely. And the Joensu Biocol plant was able to ship the first best batches to customers, and the quality seems to be on a good level, so that we have a good possibility to progress in that ramp up project as well. Maria Tarutama started as a Managing Director of Thaler RBIRDAS during the second quarter, and there has been some other key management people changes also during the second quarter, which we will also go through.

Carantia’s market position has improved, so both the kind of the new sales is increasing as well as the market share is increasing. However, that is not fully seen in the P and L numbers, and Lauri will open a bit the logic behind the P and L and the kind of the delays and why and how that is then seen hopefully in the later stage. Finally, we made a strategic decision to strengthen our distribution and sales capabilities, especially in Finland but also internationally. And we also discontinued our cooperation agreement with Taktia. We are still having obviously good dialogue with them.

But at this stage, we made a decision that for us, especially when considering Tier two and Tier three customers, it is strategically important that we are able to have an open dialogue with our potential investors as we are operating such funds that are requiring quite deep expertise. And therefore, it’s important to have a direct dialogue with the team and our own salespeople and sales team as well. Going forward, take a bit closer look on the SolarWinds refund. Like I said, the total number is now EUR503 million, out of which 56% is coming from the international investors, which is obviously a great number, and a lot of new investors coming from different countries, European countries. The size at the moment is 43% bigger than the previous vintage, which is also a good testimony how our Fund and our track record has been seen in the market.

Fund has already invested 55% of its capacity, which kind of is a good sign in that sense that they have a quite strong development portfolio in their hands and therefore, the investment capacity is quite even though that it’s quite high at the moment, they are able to deploy most likely the investments in a quite fast pace, which then leads to faster initiation of the next vintage. Then if you take a look at a bit closer look at on the market and how the transactions in the market has developed lately, I think we have all seen here in Finland quite positive news when it comes to real estate transaction market volume. It has increased quite significantly during the first half of the year. The volume has increased almost onethree compared to the previous year. But on the left hand side, you can actually see that the actual level where we are at the moment, even though that the development is positive and we have been able to benefit from the positive development both in our real estate funds as well as in our guarantyas business, even though that the actual volume is quite significantly below twenty twenty one and twenty twenty two levels.

Then on the other hand, the other important factor that we follow quite closely is M and A transactions here in Finland. There actually you could call that the picture is more, let’s say, mixed. On the right hand side, you can see that actual number of transactions here in Finland has increased. But if you take a look at the euro value of the transactions, you can have a different kind of statistics. So the picture is somewhat mixed.

And as you can see, the actual level of the activity is still quite somewhat lower level than it used to be a few years ago in 2021 and 2022. But all in all, in both of these kind of key transaction markets, which are crucial obviously for us, the first half year development has been positive, even though that the kind of the comparison period has been quite low. Like I said, there has been a lot of key management team member changes in our in Talleres management team. Lauri will introduce himself later in the presentation. Marjat Arutemann started as a Managing Director in our BEO Industry business in May and Timo Teivan Macki was appointed to Head of Institutional Sales and will start his duties then later this year in October.

Then some of the key figures. Kind of the overall picture of the key numbers is that if you take compare this to the previous year development, you can actually see that all relevant key numbers developed positively during the second quarter. However, like already mentioned, it was partially explained by the retroactively recognized management fees related to closing of the SolarWinds three fund. But then on the other hand, as we will see in the following slide, there was also negative development in the current AS business, which is more related to, let’s put it that way, technical accounting treatments than the actual negative kind of actual numbers and the cash flow. Then if we would go through some of the highlights of different segments.

Starting with the Renewable Energy. As you can see, the operating profit increased from 1,900,000.0 to 3,100,000.0, which is obviously driven by that retroactive management fees mainly. Then on the other hand, like already mentioned, $5.00 €3,000,000 fund, which is the total number in commitment that is actually the biggest infrastructure fund here in Finland, which is a great testimony of the performance and the track record of our Renewable Energy business. Then maybe a bit more other type of news was that we were actually partly refinancing TalaRewind two and three funds. And with that, we are more fully able to optimize the actual timing of the exit in those funds, even though that those funds are still active on the active we are active in the market with those funds and looking for the exit.

But most likely, as we have said in our outlook, the actual exit most likely will happen only after 2025. Moving more towards the other Private Asset Management, maybe three things to highlight in that segment as well. Operating profit developed quite positively, as we have said in our outlook that it will develop positively in this year from negative 0.7% to negative 0.2%. Then on the other hand, Thaleri Bioindustry Fund prepared to execute its sixth investment And hopefully, we are able to have some news on that later this year. And in Real Estate, positive development in that joint venture between Keva and Thaleri, and they were able to rearrange the refinance our agreements on certain funds, which is obviously positive thing in this kind of environment and especially when it considers the real estate market.

Moving forward to Qarantia. Like already mentioned, kind of the overall activity is developing positively, which can be seen that the new sales is increasing and actually the market share in that business is also increasing. However, the Insurance Service result is declining from 3,500,000.0 to €3,400,000 which is driven by factors behind the combined annual ratio as well as the kind of the changes in the portfolio, which Lauri will open then later during the presentation and the logic behind that. Total income from the investment operation increased from EUR 3,400,000.0 to EUR 3,500,000.0, which actually combines those two items there on the right hand side. So that part of the investment income, which is recognized in the P and L, was the €2,800,000 And then the part of the investment portfolio result, which is recognized in the comprehensive income, was €600,000 And it’s important actually to combine those two when kind of making or looking at the performance of the investment portfolio.

And when we take a bit deeper look on the investment portfolio, even though that this is a static picture from the at the end of the first half of the year, it’s worth noting that if you would compare the portfolio split between the at the end of the last year and the current situation, the total amount of the debt instruments at fair value, if you combine those light gray areas and light blue areas, is now 70% when it used to be 76% at the end of the last year. Then on the other hand, equity proportion has increased from 18% to current 21%. So we have increased our equity risk in our Carantias investment portfolio during the first half of the year. Then our next segment is the Investment. Revenue was actually negative, but that is only linked to one specific USD related investment and one USD receivable, and that’s driving those numbers.

No major other changes in that segment. But then if you take a look at our Investment segment, Investment Portfolio at fair value, maybe worth noting is that three biggest investment comprises more than 50% of the total investment portfolio. Out of these three, that Truscott, Chileade is that wind farm in Texas, out of which we own that roughly 7%. But those two other investments, namely Fintoil and Turntory Parki, in both of those investments, actually, the first half development has been quite positive. In Fintoil, even though that is a quite cyclical business, obviously, they have been able to operate their facilities almost at the full capacity during the second quarter.

Obviously, it’s like I said, it’s a cyclical business, it increases the working capital, etcetera, etcetera. But they have been able to gain new customers and therefore able to increase the capacity utilization in between the or during the second quarter. On the other hand, Turntory Park, revenue is also increasing in there, utilization rates are increasing and we have been able to pass through some of the price increases in that business as well. Then if we would take a look at the smaller investments, the development in those has been more varied, you could call. There has been some positive development, but also negative development in those.

But out of the total investment portfolio, three biggest investments comprises more than half of the total portfolio. Then I would like to invite to stage our new CFO, Lauri Lipsonen, who will go through some of the highlights of the result and balance sheet development.

Lauri Lipsonen, CFO, Thaleri: Thank you, Ilkka. My name is Lauri Lipsonen. I started as CFO three months ago. My professional background is that I have two master degrees, one from industrial engineering and one from finance. I have worked five years in Consultancy and two years in Pulp and Paper industry and the last twelve years as Group CFO in Private Equity Owned Companies, the last company before Thaleri being Swapi.

Then about the result. Talari had a strong second quarter of the year. Revenue grew by 8.3% to €12,900,000 mainly driven by Private Asset Management segment and strong investment result from Carantia. These were partially offset by adverse changes in euro USD effect rates as well as decline in Zuran’s service result of Carantia. And as Ilkka said, Private Asset Management segment revenue was driven by continuing earnings mainly related to the SolarWinds three related retrospective fee bookings, and this accounted for roughly twothree of the continuing earnings growth in Private Asset Management and also impacted fee level fee expense level in Q2.

Qarantia’s investment result was plus €2,800,000 whereas in Q1, the result was negative by €600,000 And in Q2 twenty twenty four, the investment result of Carantia was plus €1,400,000 As Jelka mentioned, exchange rate fluctuations were related to 1 USD investment and 1 USD receivable, and these burdened Q2 results by €1,200,000 Then Carantia’s Insurance Service result decreased from the comparison period due to increased Insurance Services expenses, mainly due to costs arising from Onerous contracts and higher acquisition costs. And as a result, operating profit was €4,500,000 In summary, the group’s continuing earnings, revenue and operating profit all increased and the operating profit margin was 34.8%. In contrast, in the previous quarter, operating profit was €400,000 burdened by market turbulence driven net investment result. And therefore, the first half of the year, the operating profit was €4,900,000 As evidenced from this slide, continuing earnings development has been fairly stable on a quarterly basis. However, both Talleres’ quarterly revenue and operating profit have been fluctuating, mostly driven by other than continuing earnings, which in this period under review mainly relates to the net investment operations.

And then we look respective figures in rolling twelve month basis. We can see that the LTM growth in continuing earnings has been 1.5% and other revenue than continuing earnings has been fluctuating on LTM basis. Operating profit has remained strong at over 45%. In Private Asset Management, continuing earnings have increased by 12.5% in LTM basis and operating profit growth has been strong in this segment. What comes to Carantia?

Carantia’s revenue has declined recently as both Insure and Service result and net income from investment operations have declined. Declined interest rates boosted 2024 net income result at Carantia, whereas the recent decline in Insurance Service result has been driven by two matters. Insurance revenue has been declining on a rolling twelve month basis until it has started to rebound from Q2 twenty twenty five onwards. This explains the drop in Q1 twenty twenty five LTM Insurance Service result, whereas the decline in Q2 twenty twenty five LTM Insurance Service result largely relates to increased Insurance Service expenses mainly relating to the Onerous contracts and increased acquisition costs. When it comes to actual claims, those have remained at fairly low level and increased only by €100,000 in the first half of this year compared to the first half of the last year.

The decline in net income from investment operations has been the main driver behind the declined operating profit on a rolling twelve month basis. It should be noted that the part of Carantha’s investment portfolio’s fair value changes are visible only in the other comprehensive income reported below operating profit. And as Ilkka mentioned, guarantee as share of residential mortgage guarantees in new housing loans in Finland has increased materially during 2025, which had had a slight positive impact on current insurance portfolio. You can see that the insurance portfolio has been the amount of insurance portfolio has been declining on rolling part started to rebound from Q2 twenty twenty five onwards. But compared to the rolling LTM insurance revenue, you can see that the rebound impact is rather immaterial.

And this is due to the fact that our insurance revenue is recognized with some delay. On the right hand side, we can see an illustrative example of how insurance revenue of a new residential mortgage guarantee group is recognized over the years. A thumb rule is that recognized insurance revenue decreases over time, mostly driven by decreasing risk exposure. However, the recognized revenue is materially lower for the first year compared to the subsequent few years due to the fact that new residential markets guarantee contracts start more or less constantly throughout the year. And under IFRS 17, new insurance contract is recognized based on the weighted average timing of each annual insurance cohort.

Then shortly about balance sheet. Our equity ratio and liquidity have remained strong. Available total liquidity was €46,000,000 including the unused revolving credit facility of €30,000,000 The first dividend tranche of €7,000,000 was distributed in April and the second dividend tranche will be paid in October. When it comes to investments, nonstrategic investments have declined by €3,600,000 during the 2025, mostly because of the rest of Aktia’s shares has been sold in Q1 twenty twenty five. Carantia’s investment portfolio increased slightly compared to year end despite Carantia distributed a dividend of €7,500,000 in the spring.

This concludes my presentation. And as a next step, Ilkka will present the outlook section. Thank you.

Ilkka Laurila, CEO, Thaleri: Thank you, Lauri. And finally, the outlook for year 2025. We made a slight update to our outlook considering the Private Asset Management and Renewable business in there. We are now saying that the exits from the Thaleri Wind two and Thaleri Wind three funds are likely to take place after 2025. And that’s the only update in our outlook.

So we are still saying that in Renewable Energy, obviously, the result of this year is dependent on how the timing of the certain fundraising activities, performance fees and the exits are coming. In other Private Asset Management, we are expecting positive profitability development compared to the previous period. And then on the Carantia side, like I said, they had an extremely strong comparison period, especially in the investment operations. And therefore, we are expecting a slight decrease in there as well as in the operating activity as well. But that actually concludes the presentation part of the second quarter.

And now we have time for the Q and A.

Linda Tiarola, Investor Relations, Thaleri: Thank you both. And as a reminder, if you would like to ask a question, you may do so through the chat box in the webcast platform. And for those of you present here in the studio, you may ask questions over the microphone here. There’s a question here from Sauli Vilein from Inderes. Sauli, please go ahead.

Sauli Vilein, Analyst, Inderes: Good afternoon, Sauli from Inderes. About the sale of Wind two and three, can you explain why it takes so long? Because I mean, it’s a fairly simple asset and you have a long, long track record about it. So is it about the market situation, fluctuation in interest rates, etcetera? Or what is behind the fairly long process?

Ilkka Laurila, CEO, Thaleri: I think there’s two key drivers on that. The first one is that the overall transaction market activity, which has been quite slow lately, as we all have recognized during the last few years. But the second one is related to kind of the electricity market development here in Finland. And the actuality, the kind of the future price forecast prices for the electricity prices are kind of moving have been lately moving towards negative prices. And that has also had an impact, obviously, for the kind of the interest from the buyer size.

We all know that here in Finland, we are expecting a lot of activity coming through different kind of investment activities, be it in those data center investments or whatever related to hydrogen and everything and new industrial facilities, but those have not yet realized in that matter that would have a significant impact of the price forecast of electricity prices. And that has also had an impact on those exit processes.

Sauli Vilein, Analyst, Inderes: Are you still comfortable with the carry you have booked from those?

Ilkka Laurila, CEO, Thaleri: Obviously, this stage because those are not we have not made changes on those.

Sauli Vilein, Analyst, Inderes: Okay. Then about the SolarWind development portfolio. Are you building a similar development portfolio as we speak, what you did before the SolarWind three? I’m already looking at the SolarWind four now, so

Ilkka Laurila, CEO, Thaleri: Well, they are developing the development portfolio continuously, kind of project by project going forward. And that is actually quite actually significant kind of will have a significant impact for the next vintage in that sense that there’s a lot of those kind of projects that they are able to move to the next fund. And that will enable, obviously, the faster development both on the SolarWind three, but then on the other hand, on the SolarWind four as well.

Sauli Vilein, Analyst, Inderes: So basically, the SolarWind three can sell the rest of the development portfolio?

Ilkka Laurila, CEO, Thaleri: Most likely so.

Sauli Vilein, Analyst, Inderes: Okay. That makes sense. Then about the current year’s dividend, is the rest of the seven you now pay the 7.5%, are you paying the 7.5% like in autumn when you pay the dividend out from the parent company?

Ilkka Laurila, CEO, Thaleri: Yes. That was the decision by the Board.

Sauli Vilein, Analyst, Inderes: Yes. Then on your Texas wind farm project, obviously, you were also planning to exit that at some stage. I think at some point, you also said that it can be during 2025 or so. Has the current political situation in The U. S.

Affected the exit market of that kind of an asset?

Ilkka Laurila, CEO, Thaleri: Well, yes and no. Obviously, there’s a lot of turbulence in that market, as we all can maybe recognize. But then on the other hand, actually, it has had you could say that it has actually had a good positive impact for the existing facilities because there’s now certain regulation which has an impact for the new investments, but which then increases kind of the demand for the existing operating activities. And therefore, it’s a bit mixed situation and we all kind of recognize the turbulence in that market. But it might end positively, let’s put it that way.

Sauli Vilein, Analyst, Inderes: And what about the timing on the possible exit there?

Ilkka Laurila, CEO, Thaleri: It is the asset itself, it is on that stage, but the same applies as it applies to other exit market and exit situation that it’s a you need a seller and buyer and you need a kind of the market this low, as we all know, the transaction market. And that’s it. That’s not the Finnish issue. It’s a global issue, as we know.

Sauli Vilein, Analyst, Inderes: Okay. Then about the guarantee, why do you think that your market share has been increasing on the Finnish mortgage market?

Ilkka Laurila, CEO, Thaleri: Well, we are able to well, internally, are able to measure it such a way that if you take a look, know how much mortgage loan has been granted here in Finland. That’s the available data, and we can see our own data. And through those two kind of KPIs, we can see that we have had a positive development in there.

Sauli Vilein, Analyst, Inderes: Why you think is that why it has been increasing?

Ilkka Laurila, CEO, Thaleri: Well, I think there’s a couple of things that are driving it. I think the first one is that we had a quite actually, the first time at the history of Carantia, we had a quite extensive marketing campaign at the end of the last year. And we see positive development since that. That’s the first one. I think that not all Multiclo customers in Finland yet recognize the opportunity that is linked to that kind of service and product.

And our plan is to continue that activity going forward, so to increase the recognition of the services and products that Carantia is providing. That’s the first thing. The second thing is that we have made some updates to the product, which makes it easier to our customers to utilize, meaning banks in this case. And therefore, it has been more attractive for them as well. Technical changes, but important to them as well.

Sauli Vilein, Analyst, Inderes: Then finally, about the tax rate, it was really high in Q2. There is probably some technical explanation behind that.

Ilkka Laurila, CEO, Thaleri: Yes. Maybe I don’t know if you would like to answer on that one.

Lauri Lipsonen, CFO, Thaleri: Yes. So if you look at the comprehensive income statement, one of the drivers there were related to like deferred tax liabilities. So and those are related to, for instance, low other comprehensive income.

Sauli Vilein, Analyst, Inderes: Okay. Okay. That’s good. Okay. Thanks.

Linda Tiarola, Investor Relations, Thaleri: Great. Thank you. And we have a couple of more questions from the floor. Please go ahead.

Patrick, Analyst, Nordea: Hi. It’s Patrick from Nordea. Just going back to the exits in the wind fund. Maybe could you give any indication on when these could materialize based on the discussions you’re having now? I know you mentioned electricity prices, the transaction market, but what do you kind of need to see for this to kind of materialize?

Ilkka Laurila, CEO, Thaleri: Like I said, we are still we have different avenues what we are kind of investigating continuously. And like we have said, it is likely, not necessarily, but it is likely that it will happen only after this year. But more saying more than that, I would it would be more guessing than having an estimate. It would be nice to give you an exact timing, but unfortunately, given the kind of the exit market situation that is evident that today it is quite difficult.

Patrick, Analyst, Nordea: Thank you.

Jan Eisenberger, Analyst, Nordea: Yes. Thanks. Jan Eisenberger from Nordea also. Maybe one question on the BI industry market as a whole. How would you describe the interest on that market?

Ilkka Laurila, CEO, Thaleri: Sorry, which market?

Jan Eisenberger, Analyst, Nordea: Bioindustry How the market or investor interest on that side has developed, let’s say, during the past year?

Ilkka Laurila, CEO, Thaleri: That’s a good question because I think we are all receiving quite mixed signals on that area. On the other hand, there has been this wave of, I don’t know if you want to call it, new conservatism where everything that is related to kind of the green transition is maybe not so fashionable that it used to be a few years ago. But then on the other hand, when we are discussing with our own customers and investors in our funds, their view is actually quite different than you could see from the media. And based on our discussions with the investors, they see it quite positively, and they are kind of giving quite positive signal and asking that when are the next opportunities coming. And it’s kind of this soft commitment towards that direction that there is a demand for that kind of services and products also in the future.

So even though that the media is and the picture and the news and the headlines are somewhat more negative and mixed, the actual discussions with the investors has been quite positive.

Jan Eisenberger, Analyst, Nordea: Thanks. That’s all from me.

Linda Tiarola, Investor Relations, Thaleri: Go ahead.

Sauli Vilein, Analyst, Inderes: Yes. Sali from Intersteel. About the Garantias claims, you had a slight bump in the claims ratio in Q2. And if I understood correctly, some of it came actually from the mortgages, which is, if that’s the case, I think it’s like super rare in Finland to have actually risk realizing in the mortgage book. So I like do you see this as like a onetime thing?

Or should we like expect claim duration to be elevated for a prolonged period of time as long as the employment rate is high and Finnish economy is struggling.

Ilkka Laurila, CEO, Thaleri: Yes. Maybe, Lavri, you can open the logic behind that.

Lauri Lipsonen, CFO, Thaleri: Yes. When it comes to claims ratio, there are other items as well such as those onerous contracts. And that onerous contracts were the main driver behind the increased claims ratio. And as I explained, when you look at the first half of the year compared to last year, Those have increased claims have increased only by €500,000

Sauli Vilein, Analyst, Inderes: That’s clear. Thanks.

Linda Tiarola, Investor Relations, Thaleri: Great. Thank you. And we have a couple of questions online as well. So first one is related to the fundraising of SolarWinds three. And you now left the fund open still for the remainder of the year.

So how much more can we expect into that fund?

Ilkka Laurila, CEO, Thaleri: Well, as said, the number today is that EUR503 million, and obviously, we keep it open only for one significant investor. But the total increase would be less than 10% of and that gives some kind of magnitude of the potential still before the final closing.

Linda Tiarola, Investor Relations, Thaleri: Okay. Thank you. And then there’s a question related to this lag that you, Lauri, mentioned between these new mortgage guarantees of Garantia and the insurance income. So when can we expect that these improved sales of Garantia are actually visible in the results?

Lauri Lipsonen, CFO, Thaleri: Yes. If we think the Garantia sales development, the main drivers are the changes in Carantia interest portfolio and pricing tariffs, of course. But as explained in that one example slide that there are some delays with the new contracts when it comes to insurance revenue recognition under IFRS 17. The main driver is that how the current insurance portfolio is developing.

Linda Tiarola, Investor Relations, Thaleri: All right. Thank you. There are no more questions on line. Are there more questions from the floor at this stage? If there are no more questions, then we’ll conclude the webcast.

Thank you, and have a good day.

Ilkka Laurila, CEO, Thaleri: Thank you.

Lauri Lipsonen, CFO, Thaleri: Thanks.

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