Good afternoon, and welcome to the presentation of Taaleri's first-quarter 2026 results. My name is Linda Tierala, and I'm heading Investor Relations here at Taaleri.

Presenting today, we have as usual our CEO, Ilkka Laurila, and our CFO, Lauri Lipsanen. There's a Q&A session after the presentations.

If you would like to ask a question, you may do so through the chat box in the webcast function. With that, I'm happy to hand over to Ilkka.

Please go ahead.

Thank you, Linda. Maybe before we start, it's to kind of summarize the first-quarter development is that we had a very strong quarter behind us.

Overall performance improved quite significantly compared to to to previous year, and the key drivers being mainly improved insurance service result as well as the private asset management, especially in renewable energy. Then if you take a look at the the highlights of the first quarter, continuing earnings grew 13% up to €10.5 million.

As said, it's mainly driven by Garantia's strong insurance service result as well as the the continuing earnings from the renewable energy business. Operating profit also improved significantly versus a year ago, up to €2.1 million, with a nice operating profit margin improving up to 17%.

Maybe highlighting the the performance of the of the Garantia, the the insurance service result increased by 21% almost year-on-year up to €3.8 million. Insurance revenue increased 4.2% up to €4.9 million, while at the same time, premiums received, which is a proxy for the cash flow, increased by by 15.7%.

That combined with the fact that that simultaneously, Garantia was able to strengthen its solvency ratio with almost 25%. Nice growth, nice improvement in cash flow, and strengthened solvency ratio, and therefore also the risk position.

Market share and and and that's from operational perspective is driven by the market share increase, especially in the residential mortgage guarantees, which strengthened further in the during the first quarter, and also clearly increasing activity in in corporate finance arrangement. Renewable energy also grew that 9.3%, and exit processes progressed quite nicely.

We have lots of lots of processes ongoing, and and the energy business continued preparation of those those processes. Finally, two strategic initiatives were also completed.

We after the review period, we acquired majority of the Nordic Science Investments, which is the the science-driven venture capital, which expands our offering in that area. In addition, we've also published that we are launching our private credit strategy later on.

If you take a look at our strategic priorities for this year, Garantia's capture growth potential, like said, it was able to increase the insurance revenue, increase the the the market share, and and at the same time also strengthening its its risk position. Private asset management also saw good progress in there, expansion into venture capital, establishing private credit business, and then on the other hand, we also started the preparation of the next vintage renewable energy fund.

As we have stated, that we are selectively utilizing M&A as one of the growth engines for for Taaleri. In that area, we've made that first first acquisition, namely Nordic Science Investments.

Which now means that with these new kind of growth adventures, we are now also involved into venture capital and direct lending. This is familiar slide from the Capital Markets Day.

Darker blue illustrates those that we are currently in, and and the lighter blue, which we have said that we have ongoing processes, and now, let's say, two of those are are in the in the completion phase, venture capital and direct lending. That will further increase our our offering and expand our offering into into these products and sectors.

Then key figures for the first quarter, maybe focusing on the on the bottom side of the slide, LTM numbers. Continuing earnings LTM, almost 10% growth up to €43.3 million.

Revenue increase 4% up to €65.2 million. Operating profit, slight decline, 4.4% versus the LTM period earlier.

Then on the other hand, one of our financial targets is to improve operating profit from continuing earnings, and in that, we had that 26% increase on an LTM basis. Then on the other hand, our investments at fair value is that €226 million.

If you would like to kind of give a proxy for what what the shareholder gets when when owns our shares, it's the operating profit from continuing earnings added with the investments at the fair value, added with the with the liquid assets, and and the the performance accrued performance fees. That's the kind of kind of what the what the shareholder of Taaleri actually actually owns and gets by acquiring our shares.

Then going through different business segments, starting with with with Garantia. Expansion of of the volume was was quite nice, so the insurance service result increased that 21% from the comparison period.

Like already said, the market share in residential mortgage guarantees increased despite that that they had a had a quite soft housing market, and that's obviously result of the increased awareness of the of the of of Garantia's product and services, and then on the other hand, is a good proof point of the kind of the quality and and the service level that they are able to provide to our our customers. Then on the other hand, demand for the corporate guarantees strengthened by by approximately 50% compared to previous quarter, meaning the Q4 '25.

That's also driven by the by the continuous activity with the customers. The customer management at at at Garantia is has developed quite nicely during the last quarters, and and now we are seeing the results of of the of the customer activity.

Claim expenses remained at the low level, and the combined ratio was that that 21.8%. Like said simultaneously, which is the most important thing in in Garantia's case, solvency ratio, and therefore the risk position, still further strengthened by by almost that 25% even though that the that the operational growth and and the profitability development was was good.

Then if you take a look at the investment income from the from the investment operations, net total was that negative €1.4 million, so that the that the P&L recognized investment income was that positive €0.8 million, but then offset by by negative €2.3 million investment income, meaning the fair value changes in in other comprehensive income. Then on the graph, you can see that the premiums on an LTM basis has increased 32% compared to 27% on a on a previous quarter.

That's also increased on an LTM basis quite quite significantly. No major changes in the insurance portfolio split, but then on the other hand, investment portfolio declined €9 million, which is the exactly the same amount that the Garantia paid during the first quarter as a dividend to to the parent company.

That's the that's explaining the investment portfolio decline from from €166 million to €157 million. Then further to private asset management, starting with the renewable energy business.

Nice growth, 9%, driven by SolarWind III Fund, which was closed at the end of last year. The operating profit improved to €2 million, with the with the quite solid almost 29% operating operating margins.

Renewable energy focused during the quarter on the fund operations and the execution of the exit processes in in in in many of the previous fund vintages, and also started its preparation of the of the next vintage. AUM remained on that stable €1.8 billion.

Then continuing with with private asset management, continuing earnings develop positively. However, the the the profitability was deteriorated by the fact that there was this one-off negative impact driven by the Joensuu Biocoal project.

Despite after that, bio in the bioindustry business, they were focusing on on the value creation and and the preparation of the follow-on investments and financing rounds for the for the existing portfolio companies. Then on the other hand, good development in the real estate as well so that the that the operational performance of the funds actually improved through increased occupancy rates, especially within the within the larger funds.

Then EAB Living, our JV with the with the Keva, entered into financing arrangement, which obviously supports the portfolio operations going forward as well. Transaction activity also picked up.

EAB Living acquired two assets in in first quarter and and two additional assets actually after the reporting period. Then finally, the third segment, namely Investments.

Net income declined due to that the the write-off of related to to Biocoal development, but then on the other hand, the the total amount of or the fair value of the investment remained at that €69 million. That's the the key driver there was the positive fair value change in the in the Truscott-Gillen and East Point wind farm in in Texas.

If you take a closer look at the the investment portfolio, 72% now is categorized under the development capital. No major changes is in there, and we haven't made during the during the first quarter new investments in there.

Then if you take a look at the operation and development of the of the of of these five development capital investments, starting with the with the Fintoil, as a reminder, clear majority of that is of the production is related to to renewable fuels, and there was the the market remained on a positive side and and and developed quite quite strongly. Then on the other hand, the the smaller business, namely biochemicals, demand and the price for for tall oil rosin and the tall oil pitch remained weak during the first first quarter.

If you take a look at the '25 numbers, you can see that the that the revenue increase was was 43%, and EBITDA increased 34%, and those are obviously nice numbers in any any business, but especially in these kind of process industry-related refinery business, although it's fair to say that Fintoil partly still is in the in the ramp-up phase from the operational perspective. Then Toriparkki, nice volume growth in in '25, 7% in in parking volumes, and that has continued quite quite strong also during the first quarter.

Very strong development. You can then argue that that might be driven by the winter cold cold winter months, but but there's also other other good operational development in in that business, and and that's also developing quite strongly.

Oribalt, our wholesale business, pharmacy wholesale business in Baltics, and the online pharmacy business grew grew there quite rapidly, and it's also picking up in in 2026. Good development, operational development also within the the Oribalt's business.

Finally, Ren-Gas, if starting first first with the with the macro and the and the market development, many countries have now implemented and and continued to to implement the RED III regulation on on a national level. I think the most important was that the German the Bundestag in Germany published that they are implementing this, and that will have a have obviously a positive impact for for the Ren-Gas business, but also then on the other hand, should support Fintoil's business as well.

First project in Tampere is a ready-to-build stage, and the other other or the next three projects also are progressing quite quite nicely and that they already have environmental permits. As a reminder, it's as a Ren-Gas case, it's dependent on the offtake agreement, and then then the next phase after the offtake agreement is the financing financing of the projects, and then then it is on a on a financial investment decision phase.

Then it's time to hand over to to Lauri, who will walk you through with the latest financial development.

Thank you, Ilkka. Hi, my name is Lauri Lipsanen, Taaleri Group CFO.

Although Ilkka already presented some key financials, I'll deep-dive those a bit. Yes, Taaleri has four sources of revenue, of which continuing earnings create a strong foundation for profitability, whilst other revenue sources have been fluctuating through the historical period.

In Q1, the revenue in total was €12.6 million, driven by private asset management and Garantia, as stated already by Ilkka, whilst other revenue components were immaterial. You can see from the chart that net income from investment operations was only €0.2 million, mainly because the fact that high volatility in both equity markets and interest rates, coupled with the Biocoal development investment write-down, limited the the incoming income from investments.

Also, Biocoal impacted on the cost base, and and in total, the Biocoal-related impact for the Q1 result was -€1.7 million. As a result, operating profit ended up to €2.1 million.

However, when compared to the prior year, we can see that operating profit increased by €1.6 million to €2.1 million, mainly driven by the strong performance in Garantia and renewable energy. Also, net income from investment operations, the delta was positive by €1.4 million, as in Q1 2025, the investment result was burdened by the high market turbulence a year ago.

The expenses, excluding billed expenses, that has mainly been impacted by the forementioned Biocoal write-downs. Here you can see on the left-hand side that the continuing earnings development, in terms of revenue, has been fairly stable, whereas other than continuing earnings have been fluctuating.

The fluctuation behind the other than continuing earnings have been largely driven by the net investment income. For instance, in Q1 2025, as stated, there was a high market turbulence, and in Q3 2025, it was positively impacted by material positive fair value changes.

This fluctuation in other than continuing earnings has also impacted in operating profit, being the key driver behind the fluctuation in terms of EBIT. The composition of revenue is more balanced when we look those on an LTM basis.

Growth in continuing earnings have been 10%, whilst other than continuing earnings have been slightly declining. In terms of operating profit, profitability has declined slightly, mainly driven by those other than continuing earnings, which have been impacted on an LTM basis by the performance fees of €2 million or €1.8 million in more detail booked for Q4 2024.

This year, lack of new performance fees recognized and lower investment income are the main drivers why total operating profit has declined recently. It should be, however, emphasized, like Ilkka said, that operating profits from continuing earnings have been developing positively, trend-wise.

Then an outlook for Garantia. Despite the weak development of the Finnish housing market has continued, Garantia's insurance revenue has increased by 6% on a last-12-month basis.

The insurance service result has remained fairly stable in proportion to the insurance revenue. As a result, total operating profit of Garantia has been increasing on an LTM basis.

When adding the full result, other comprehensive income, covering Garantia's all fair value changes, the profit profitability has been quite stable. This is how the reported P&L looks like.

However, the underlying performance has been stronger. On the left-hand side, you can see that with with black bars, the cash-based premiums received has increased by 32% on an LTM basis, driven by strengthened market position and increase in sales.

Sales volumes in residential mortgage guarantees, whilst the revenue shown in light gray have increased with a delay due to IFRS accounting principles. On the right-hand side, you can see that combined annual ratio was strong again in Q1, and the claims ratio was close to zero mostly because of the positive changes in estimated claims that have incurred during the previous financial years.

Here you can see on the left left-hand side Garantia's return on equity at fair value. It was again excellent in Q1, and the solvency ratio has remained strong.

Garantia paid half of the dividend of €18 million in March to the parent company, Taaleri Plc. Then a couple of words regarding private asset management.

Continuing earnings have been growing by 18% on an LTM basis, mostly driven by the final closing of SolarWind III that took place in Q4. However, when you look the the profitability development, the trend has been slightly declining recently.

That is due to the fact that, for instance, the Q3 '25 LTM operating profit was boosted by the forementioned performance fee of €1.8 million booked in Q4 2024. There is also a slight negative gap between Q4 '25 and Q1 Q1 2026, and that is mainly related to the Biocoal-related receivable write-downs.

Fair value of the investment segment investment portfolio declined by €1.5 million, and that was mainly driven by the two drivers: first, Biocoal impact of -€0.9 million, and secondly, the Alisa Bank's fair value change of -€1.2 million or 34%. To recap in this table, the fair value might deviate from the balance sheet value, depending on the basis of accounting.

Specifically in this table, what is visible is the difference between Turun Toriparkki's fair value of €16.4 million and the balance sheet value of €10.3 million. As a side note, this balance sheet value declined by €0.5 million during Q1 due to the fact that Turun Toriparkki distributed funds by €0.6 million to Taaleri Plc.

At last, let's have a short outlook on Taaleri's balance sheet. Both asset total and equity ratio remain strong.

Asset total were €304 million, and equity ratio 73%. The value of total investments declined by €9 million, which was mainly related to the fact that Garantia distributed the dividend, first dividend tranche of €9 million.

Total liquidity was €56 million at the quarter-end, including the unused revolving credit facility of €30 million and overdraft facility of €10 million. The total liquidity was further strengthened this week as we signed a loan long-term loan agreement of €30 million, enabling flexible implementation of strategic initiatives.

After the quarter-end, Taaleri has distributed the first dividend tranche of €4.2 million in April, and second tranche will be paid in October. Now, Ilkka will present an outlook for 2026.

Thank you. No major changes in the in the outlook.

Starting with the with the private asset management, renewable energy business continuing earnings expected to decline compared to '25 due to the subsequent management fees which were recognized in '25. In addition, there's a lot of planned exits, like explained, which obviously then will have an impact on the on the fee fee base when they are executed.

Then with the other funds private asset management businesses, the the further development of the new products, which are according to our updated strategy, will further deteriorate the profitability of the of the other private asset management business. There the operating profit is is expected to remain negative for for this year as well.

Garantia, insurance revenue expected to grow in 2026, and profitability of the insurance operation expected to remain stable. Then on the other hand, it's quite obvious that the that how the investment operations will develop in in Garantia's case, it's very much dependent on the overall market development in the equity markets as well, especially in the interest rates development and and the market.

In the investment segment, operating profit in 2026 will depend, obviously, as well, pretty much on the on how the fair values will change within the different development capital investments, then on the other hand, fund investments as well as the the other investments. Obviously, if we would have a have a major exits there or the exits overall, that will also have a have a significant impact on the investment segment's result.

Then on the other group, which is basically most of that business is relates to our our cost structure, and that is expected to to remain approximately at the level of the of the previous year, and therefore, giving us us supporting our scalability of the of the growth. That's that's the highlights and the development of the first quarter.

Then I think we have a have a time for the Q&A.

Thank you for the presentation. Yes, now you have an opportunity to ask questions, and you may do so through the box in the webcast platform.

For those of you following the presentation here live, please wait for the microphone before you ask your question. The first question comes from Sauli Vilén from Inderes.

Please go ahead.

Yes, thank you. About the new €30 million credit line you took, can you open up more why exactly did you do it since you obviously won't need it to your day-to-day operations and you already have lots of flexibility already, like €40 million or so in just the credit facilities?

Like said, that is to support our liquidity, and obviously, if there is opportunities, then obviously, that enables us to grasp those opportunities. Just as a reminder, the other €30 million is actually revolving credit facility, which is a bit kind of different from the structure perspective.

Just to be clear, you can use this both at the same time, right?

Simultaneously, yes.

Yes, right. Then about your fundraising, if you roll back historically, Aktia played kind of a big role in your distribution when we think about the previous vintages you raised.

Now you are about to enter a new phase when you raise simultaneously several funds, how you see your distribution capabilities at the moment? Do you still see need for a partner to fill in some gaps on that field?

Yes, we are looking for partners as well, but then on the other hand, as a reminder, two thirds of the AUM came from the international LPs, so that's the clear majority, and hopefully that will also grow in the future when the fund sizes will grow. Then on the other hand, we have, like you said, built the capability in-house.

Now we have a good people and good team which is ready for the further fundraising in renewable energy and also obviously in other fund strategies. Then

continuing on that about the SolarWind IV, you said that you are now building the capability to launch the fundraising, should we expect the fundraising to launch during H2?

We haven't stated the exact time, but as you see from the corporate structure changes, we have started the preparation for the next vintage, but we haven't stated the exact timeline and when we will kick off with the fundraising. The preparation have started because lots of the capacity in SolarWind III has already been invested, and that's why we started the legal structure changes at the beginning of this year.

Then

finally, on the Canadian bio plant or can you walk us through the decision-making process, like why you decided not to not to continue? Obviously, it's relates to the Joensuu Joensuu, I guess,

but-- That's relates to Joensuu. Joensuu have been kind of the POC for the Canadian project, especially from the technological perspective.

Basically, you need a raw material, you need a technology, and you need a customers. Now obviously, it proved that the technology that was utilized in Joensuu has had a quite significant issues, which obviously had an impact for the Biocoal project in Joensuu.

Then further, after analyzing other technological opportunities globally in a biocoal, we made a conclusion that at the moment, there is no such technology that we would like to proceed with, and made a conclusion to discontinue our Canadian operations as well.

Thank you.

Hi, it's Patrick Campbell from Nordea. Going back to Garantia, the combined ratio was clearly lower on a year-on-year basis and also quarter-on-quarter, which is a positive.

How should we think about Garantia's combined ratio going forward, assuming that more exposure is taken on the corporate side?

We expect that to remain at a great level as it has been. Of course, there will be fluctuation, driven by IFRS changes, and of course, nobody knows that what's going to happen with the claims, but the expectation is that it remains at a really good level.

All right, thank you. Then maybe could you explain some of the concrete measures that are contributing to Garantia's overperformance, considering that the market has been quite weak?

Happy to do so. I think the key driver there is that, which is part of Garantia strategy in this case, as we communicated in our Capital Markets Day, that the increased awareness, continued activity with the customers are finally bearing fruits.

I think that's one of the key drivers in there. We are seeing kind of continuous increase in the customer activity.

It doesn't mean that the Garantia has made any changes when it comes to the risk-taking. They continue.

I think the key thing to understand is that the key criteria in that business is to keep up the disciplined risk management and the risk position, and that also strengthened during the first quarter. I think it's all about the customers and developing products and the services so that we can see the increase in the customer activity.

All right, thank you. Then maybe going on to the new initiatives, private credit and venture capital, could you maybe break down the vision behind these initiatives, and when do you expect these to kind of start supporting other private asset management?

The vision obviously is that it is our strategy, like we said, that we are kind of selectively going to expand to new strategies during the strategy periods, and they are now two that we have selected at this stage. The vision obviously with the NSI first of all is to, like we said, is to grow significantly in the next vintage.

We see that with this science-driven deep tech venture capital investments, it is quite niche, and there's a clear demand on the LP side so that we have a strong believe that we are able to grow both international as well as the scale of the business significantly with the next vintage and then go further with the further vintages. Then with the private credit, well, maybe starting with the market, obviously, I think everybody that follows the financial media have seen the turmoil on that market, but I would like to highlight that turmoil is related to US markets, which has its specific features.

It's listed evergreen structures, lots of insurance float flowing to private credit business, and that has created, let's say, abnormal risk-taking position within the funds, which kind of has tilted the, let's say, the risk management of those funds in the US market. That combined with the fact that lots of that financing has been flowing to different SaaS businesses, which have been also focus areas of the buyout funds during the several years, and that's obviously now distorted and disrupted by the AI.

Also there's a several kind of components: evergreen structure combined with the kind of not so liquid assets, and then the kind of the businesses that they have been financing. That's not the case in Europe and even much less in the Nordics.

That's where we see the opportunity. Nordic market is completely in a completely different position.

It's very bank-centralized and bank-dominated market, especially here in Finland, and there we see clear opportunity, especially now when we kind of hopefully see that the European LP capital flow will remain in European market, and demand therefore for that sort of fund and strategy will continue to strengthen here in the Nordics and in Europe. That's why we entered into that market now.

I think the timing from the Nordic perspective is actually quite good at the moment.

Great, thank you. Then maybe a final question, going to renewable energy.

You obviously have a few funds in the exit phase. What are you kind of seeing in the market, and when should we kind of expect exits to materialize?

They will materialize when there is a buyer and the seller find a common place and put the names on the paper. You never know, and it's impossible to budget this sort of process.

There's a lots of activity, and let's say that slightly you can be more positive continuously because I think the overall transaction market is developing positively, and we are seeing more and more activity in the market. That's also one of the reasons why we have such a lots of activity in that area.

Thank you. That's all from me.

Yes, hi, Sauli from Inderes still. Continuing on the older wind funds, you obviously have close to €20 million or so receivables on those, a lot of stake in that sense.

Can you talk about the outlook on those specific assets in Finland? Since on the other hand, interest rates have gone up, which should be negative, but at the other hand, I guess the electricity market outlook in Finland has become kind of better because of the data center boom gathering more speed, etc.

How do you see that market developed if you compare it the current situation for 6 months ago or so?

I think the net-net, it's slightly positive. There's a lot of different factors that are moving in different directions.

Obviously, like you said, there's this lots of data center investments which have been published lately, although not ready yet, but obviously in few years' time will increase demand significantly. Then on the other hand, there's lots of projects in wind and solar and also in batteries that are in a ready-to-build phase that they are able to support then the demand if the demand increases.

I think the net-net is that it is slightly positive, and that's also why we are I think seeing increased activity in the market, also in the transaction market. Then

a couple of housekeeping ones. Any idea when you will close the NSI?

I guess it's due to the Finnish Financial Authority to decide.

Let's hope that as soon as possible. It's the authorities' approval that defines the actual date.

Then

on the Garantia, you mentioned the corporate. I think you said the what was the word, interest or so has grown 50% year-on-year, but your portfolio is flat.

Were you talking about inquiries or--

Yes.

Yes.

Inquiries.

Yes, clear. Then finally, about the Forestry III Fund, you obviously have a tail on the performance fee, at least United Bankers' forest funds have gone through the roof, there should be kind of high chance you receive some fees there.

When was the deadline for that again?

I can't actually remember the exact deadline. I don't know if you have it in your mind, but there's nothing to let's say publish at this stage on that area, and that's not let's say not fully linked to the value development of the assets.

That's clear. Thanks.

Thank you. Again,

I'd just like to remind you that if you would like to ask a question, you can do so through the webcast function. There are some questions here online, the first one is regarding the credit facility and if you could just provide a bit more information on what the impact will be on the return on capital and on the balance sheet efficiency.

This is pure speculation,

but

obviously when you have more loans in your balance sheet and if you're able to generate profits from that, it should improve your return on equity.

Great, thank you. Then there's a question on Garantia.

You mentioned in Q4 that Garantia had had some international projects. What's the development in Garantia's international business, and are there any new contracts?

We haven't and we will not publish every contract that we will have internationally, but let's put it that way that the activity is there and there is a clear demand for Garantia's services also in that area.

Great. Thank you.

If there are no further questions at this point, it's my pleasure to thank the people presenting and then also wish you a wonderful rest of the afternoon.

Thank you, and have a nice vappu.

Thanks a lot.