Taaleri Oyj (TAALA) Earnings Call Transcript & Summary

Good afternoon, and welcome to Taaleri's Capital Markets Day. My name is Linda Tierala, and I'm heading Investor Relations here at Taaleri. We have a full agenda ahead today featuring presentations from our group management and our business units. The day will be divided into 2 sessions. In the first session, our CEO, Ilkka Laurila, will present Talaris strategic objectives and focus areas, and he will be followed by a presentation by Henrik Allonen, who is heading Taaleri's nonlife insurance company, Garantia. Both Ilkka and Henrik will join a Q&A session after this first part of the day. Then after a short break, we will continue with presentations from Kai Rintala, who is Managing Director of Taaleri Energia; Marjatta Rytömaa, who is Managing Director of Taaleri Bioindustry; and Mikko Krootila, who is Managing Director of Taaleri Real Estate. And this session will be concluded by a presentation by our CFO, Lauri Lipsanen, and followed by a second Q&A session. [Operator Instructions] I wish you an insightful and interesting Capital Markets Day.

Good afternoon on my behalf as well. My name is Ilkka Laurila, and I'm CEO of Taaleri since January this year. It's my pleasure to walk you through Taaleri's strategy update for the next strategy period covering a year from '26 to '28. My presentation comprises of 3 sections. During the first section, we will go to some of the highlights in Taaleri's journey so far and what kind of company Taaleri currently is. In the second part of the presentation, we will go through the trends that are having an impact in our future. And in the third section, we will go through strategic highlights of different business areas in Taaleri going forward. But starting with the entity. When we started our strategy process during the last winter, we had a wider management team that we grouped together. And we had quite thorough discussions that what kind of company we really think that we are and what's really embedded in our DNA, and we came to this conclusion that Taaleri is a front-runner in investment and asset management, focusing on those transformational opportunities in private capital. During today's presentation, we will go to what we mean by how Taaleri has been a front runner and what, on the other hand, we mean that how we focus in the future, especially on those transformational opportunities in private capital. In addition, so we also updated our purpose, which is that we leverage expertise and capital to power long-term returns. So what it means is that we power long-term returns to our customers and to be successful in that, you need to have the best people and experts in that relevant investment and business area. During today's presentation, we will also enlighten you how we will bring these 3 crucial components together to make our purpose reality. But then starting with Taaleri at glance. So Taaleri as a company was established in 2007. Currently, we have EUR 2.7 billion assets under management. Our guarantee insurance portfolio is EUR 1.7 billion, and we have that roughly 130 employees in our books. Our revenue on an LTM basis is EUR 63.1 million and notice that 88% of all products have Then some highlights of Taaleri's journey so far. Taaleri entered in the private asset management business especially in the real estate in 2009. First, renewable energy fund, also one of the first in Finland, was established in 2011. Taaleri was the first asset manager in Finland, which was listed in 2013, and it entered into insurance business in 2015 acquiring Garantia's shares. Since then, many other international private equity companies have also entered in the insurance business and that's also a testimony how we have been a front-runner in that area. And we have been owning and developing Garantia's business over for 10 years. In '21, Taaleri sold its wealth management operations to and entered at the same year in the bioindustry business. So we can conclude that in '22, Taaleri became and received its current format to become -- and became a private capital provider and investment manager. So Taaleri today. Taaleri is a specialized private asset manager and credit risk insurance company. And what we mean by that is that, yes, Taaleri operates in insurance business, but we specialize through Garantia only in the credit risk insurance, providing specializing credit risk insurance for residential mortgages as well as corporate loans. In private asset management, we operate currently in 3 asset classes: infra, private equity and real estate. But in infra, currently, we only focus on renewable energy, which is in investing and developing utility scale wind farms, solar plants and battery storages. In private equity, we only focus at the moment in a bioindustry growth investments, which is investing in bio-based materials and scalable enterprises that accelerate transition towards circular economy. And in real estate, our core is in residential in which we have been a pioneer already since 2009. And our third segment these investments in which we will, in the future, divide the reporting in fund investments, development capital and other investments. In development capital, we invest in different kind of project development as well as direct investments for the companies. And we will walk you through -- later during today's presentation that what we mean that and what's our methodology when we are taking a look at our current portfolio as well as if we are looking for new investments. Then this is maybe one of the most important slides to take during the presentation. So Taaleri relies on these 3 synergistic businesses that are driving impact, growth and value creation. So starting from the bottom, Garantia has proven to be a stable cash flow provider over business through operations. The first of all, obviously, it is actually operating in the same business that our real estate, although on the other side of the balance sheet. And therefore, they can share the insights and the market knowledge quite smoothly, especially when we have now new plans and strategy in place. On the other hand, it can provide its corporate solutions when we are establishing new funds to enhance the liquidity in new products and asset classes. In its investment portfolio, which is quite conservative, so 75% of the investment portfolio roughly is based on fixed income type of items, it strengthens its solvency which, on the first hand, enables Garantia's -- to fulfill Garantia's own growth plan. And then on the other hand, it's a countercyclical if you would compare it to the equity risk that we are taking elsewhere in the group. Then going forward, in the private asset management, our plan is that we are growing through expanding the existing platform that we have. We will go with later during the presentation, but the growth plan is to fold at grow through existing strategies and entering into new strategies. And finally, we have this opportunistic growth driver development capital, which is capitalizing the insights and the expertise that we have in our other parts of our organization and the group. And if you think about those journey so far, what kind of journey we have had, you can actually see that Taaleri has exceptionally strong track record in seizing transformational opportunities, which are strongly supported by these global mega trends. First of all, urbanization and digital infrastructure. We already went through that we went to the housing in 2009 and acquired Garantia shares 10 years ago in 2015. We also entered in a data center business in 2018 and exited in '22. In green transition, like mentioned, the first renewable energy fund was established in 2011, and we have came to a situation in which we actually run the largest infrastructure fund in Finland, which is at the moment at EUR 503 million. In circular economy and resource efficiency, Taaleri entered in the Forest Fund, one of the first in Finland in 2012, exited '23, entered in a biorefinery co-investment in 2020 and establish a Bioindustry Fund I and Biocoal coinvestment in '21. Obviously, this is not a complete list of the investments and the assets nor the funds that Taaleri has had in these categories during this journey, but just show you and illustrate some of the highlights that how Taaleri has been kind of taking and capitalizing these transformational opportunities, which are created by these global megatrends. Then if you would think about what's really kind of link between all these 3 global megatrends. It's actually sustainability. So sustainability is really ingrained in Taaleri business model, it's really embedded in our DNA. And what it actually means that the sustainability really means business opportunity for us. It's not a reporting framework, but we see it through different kind of business opportunities, which we have been able, historically, to capitalize and also looking for new opportunities in the future. Then on the other hand, in addition to these global megatrends, there's also big trend in our industry where we operate in. So private capital market is expected to grow by nice double-digit numbers also going forward. It has grown with quite fast base during the last decades, even it grew a bit faster a few years ago, but it's still forecast to grow with double-digit numbers. And if you take a look at the table on the right-hand side of the slide, you can actually note that in addition to that at the growth rates between different asset classes are forecast to balance going forward. So for example, in real estate, CAGR growth is forecast to increase from the previous 5% to more, let's say, long-standing and stable number 9%. Infrastructure, then on the other hand, is forecast to slightly decline or somewhat to decline from 16% to 10% going forward. And private equity forecast to remain on a rather stable level, declining only from 14% to 12%. Another note maybe on this slide that if you take a look at the forecast numbers, those are actually quite close to each other. So we can always debate the underlying kind of forecast in parameters that they are using in this. But I think the takeaway and the conclusion is that overall, in Europe, the private capital market is double-digit numbers. In addition, obviously, to this private capital market, we are also operating, especially in the Finnish home loan will walk you through later during today's presentations. But none of these be it a global megatrend or be it nicely growing market cannot be capitalized without the people. And we strongly believe that expertise has been and will be the cornerstone of our success. And what really distinct us to our competitors and other players in the market that our employees really have a quite versatile background be it in engineering be it in legal, environmental or even in forestry. So in addition to investment and asset management professionals we have professionals in also in many other areas. And we have kind of in-source resources to carry out and carry through the whole investment life cycle. And our people have extremely long history of different investments and exits that they have been able to execute in their business areas. In addition to that, we have also established and renewed our management model this year, and we have established a strategy management group, of which main task is to increase the execution power, and therefore, execute our operated strategy. We have also recruited several new competencies to support work of that team and that's why we really strongly believe that we have now increased execution power, and we can already see signs of faster forward-looking activities that we are carrying out. These are the kind of the rationale why we really see that there is a huge opportunity for all kind of specialized private asset manager and also opportunity for our kind of permanent capital -- permanent development capital, which is strongly backed by these megatrends, market growth and the expertise that we have within our employees and our partners. Then during the next section, we will go through some of the strategic priorities from '26 to '28 and obviously, our management team members will then go a bit deeper in these priorities during their presentations. First priority is to capture Garantia's growth potential. Through increased awareness drive growth both in mortgages as well as in credit guarantees. We have also planned to expand our distribution channel with new partnerships and we are continuously investigating growth opportunities in our neighboring markets. In Private Asset Management, growth plan is twofolded. First of all, is to grow franchises within our existing strategies. But then on the other hand, we are also looking for -- to expand new product within the asset classes where we truly believe that we can have or we can gain expertise that both for the customer demand and opportunities to scale can be met. And third priority is that within that development capital, our target is to achieve returns on equity that exceeds a group-level target equity both from the existing portfolio that we have in place and possible new investments that we are identifying and investing them later. And all these is enabled or supported by selectively utilized inorganic M&A opportunities in which we are -- so it's part of our toolbox and the rationale to utilize that is to maximize the value creation for the business units and to provide the best-in-class solutions to our customers. But it's only one tool in our toolbox. So during the next slides, we will go each one of these a bit deeper, starting with Garantia. Garantia strategic objectives and KPIs for the next strategy period are that we are targeting more than 10% growth in insurance service result. Like I said, we are investigating expansion to neighboring markets, and we are planning or we are targeting to increase market share and expanded distribution channel through new partnerships. And at the same time, our plan is to maintain exceptionally efficient combined ratio that Garantia currently has in its operations. So balancing between the growth, but still kind of keeping the strong balance sheet and combined ratio that it has. Then in Private Asset Management. Our strategic objectives are that we will launch new vintages in our existing 3 flagship strategies. In addition to that, we are launching several new parallel strategies, and we are targeting to increase profitability, especially to make this other Private Asset Management revenue reporting segment a highly more profitable business as well in the future. And that can be -- we can do through leverage and scale. And our CFO will walk you through those plans later in today's presentation. And why we believe that we are able to deliver this is that we actually already have a strong track record in our existing strategies. So in Taaleri Energia, we have been able to increase vintage-by-vintage the franchises and our plan is to launch a new SolarWind I with the target size exceeding EUR 800 million. In real estate, we have a proven concept with one of the largest pension insurers in Finland, Eden Living, which is a good testimony for the capabilities and the competencies of the team, in a difficult market that we all know that we have here in Finland at the moment in real estate. And Bioindustry, we have been able to increase our equity commitments through that Bioindustry Fund, and we are targeting to increase the next vintage up to and even exceeding EUR 150 million when that is then launched and funds are raised. Then on the other hand, when looking at our current offering, there's many opportunities in these strategies that we are not operating at the moment. The dark blue indicates and illustrates those categories that we are currently present; the lighter blue illustrates those kind of categories that we are currently actually investigating already and looking for opportunities concretely as we speak today. So obviously, this is not a complete list of different kind of asset classes. But the purpose of this slide is just to illustrate you what kind of opportunities we see in different asset classes. However, having said that, we also had to be quite selective when entering in new strategies so that we believe that we have or we are able to build an expertise that is able to provide unique benefits to our customers, so it can either be nearby thematic strategy to our existing strategies or we need to build an expertise outside in that certain thematic team. Thirdly, as we have published, during H1, we also made a strategic decision to in-source customer activity, especially concerning Tier 2 and Tier 3 customers here in Finland. And if we take a closer look on our investor and AUM base, which you can see on the numbers, you can actually see that Tier 2 and Tier 3 covers the biggest part of our existing AUM and that's why we made this strategic decision of consideration that, in our case, when we are operating in these specialized funds, it is the best way to kind of coordinate this to have a direct dialogue with the LPs, together with our teams and together with our customer management team. Then on the other hand, high networth individuals will be still covered through partners and cooperation agreements with different players. There's also another thing that I would like to highlight on this slide. So when we are successful in increasing and launching next vintages and increase the fund sizes, we obviously become more and more relevant to Finnish Tier 1 LPs, of which share in our AUM is actually quite small nowadays, and we see a lot of opportunities in there. And finally, our international investor base is that 15%. It's actually quite a nice number compared to many other numbers there, but you should take into account that, that only covers at the moment renewable energy. So we actually see a lot of synergies and opportunities going forward and within the international LPs as well. And we have already strengthened our team in that category. Then development capital. Like mentioned, strategic objective with this is to get the investment returns that are exceeding Taaleri group's return on equity target. So this is really a kind of capital allocation goal for us so that we are able to optimally kind of allocate capital in those kind of opportunities that our funds are not able to capture and capitalize. In the future, if we enter into new investments, the focus still is going to be more on cash flow. So we need to have some kind of visibility for the cash flow generation and the rationale and the end result of that you can hear later in today's presentation. And why we believe there is an opportunity? Well, I think all things we can -- we have seen many projects and research program during the last years or even decades in Finland, which are emphasizing the fact and the conclusion of the different project has been like with project was that that there is a clear lack of capital, when the capital requirement exceeds EUR 10 million in companies or if the capital requirement actually exceeds EUR 50 million or more in the certain development type of projects. And that's where we see that there is a clear opportunity for the -- this kind of tool in Taaleri's case in which we are not able to invest through our funds. But still, we can utilize the same insights and expertise that we have in our -- within our organization. So there's many formats and ways that we can kind of capitalize and execute this one. But the overall is -- the overall target with this one is to allocate capital on a more prudent or more profitable way. Well, to simplify the methodology is that we have this existing portfolio of our investments, which we are continuously analyzing. We have recruited a new investment director to cover that area having an extensive private equity background, and we are continuously analyzing those existing investments, but we are also looking for new investment opportunities. And with our expertise, with our capital capabilities, we are creating value through this development capital and the value capture then can be so that the investment can become a new Taaleri entity or exit route can be happened through either IPO or trade sale. That's the kind of the methodology that we are looking for with these investments. And like mentioned, M&A is one crucial element in our toolbox going forward. This slide illustrates some of the quota revenues that we can see that through M&A. First of all, obviously, we are targeting and looking for new teams and strategies which are able to complement our current offering. On the other hand, we might partner with the distribution channel, we might look for new geographies or investor groups. And finally, we can even look for complementary insurance market partnerships, which are complementing current year's offering or target market. And like I said, we actually are actively already exploring these multiple avenues for growth, and we are quite excited of those opportunities that we can see and concretely are working on. Obviously, we are not able to open it, but we have concrete plans and activities that we are continuously looking for and developing. Whether those it and what of those which of those will then happen in reality that obviously remains to be seen. But in any case that our strategy is that we will look for several new growth avenues when we go forward and when we are executing our strategy during the next strategy period. So road map towards strategic milestones for the next period. First of all, in Garantia, it is to expand Garantia's banking partner network and it is to increase sales activity to build trust and recognition in the market. In Private Asset Management, it is to grow within the existing segments, launching new funds and flagship funds and selectively launching new product groups and expanding therefore, the new either parallel strategies or completely new sets of strategies. And in development capital, we are further developing opportunities in our existing portfolio, but we are also continuously actively looking for a new development capital type of investments. Yesterday, we also published our updated financial targets, which our new CFO, Lauri Lipsanen, will go through later during today's presentation. But despite of that, the new targets are the following: so 12% profitability growth in operating profit from continuing earnings. And why we replaced the revenue target for this one is that it's better linked to our strategic ambition, it better takes into account Garantia's operations and growth from Garantia's insurance operations. It better takes into account the profitability improvement target in Private Asset Management, and it better takes into account the cash flow focus that we put on our new investments in development capital. Then on the other hand, we have slightly amended our return on equity target, which has now taken into account the fair value, and that's also done due to the fact that it better takes therefore into account Garantia's activities. Dividend policy. We have decided to remain the same -- on the same level. So it should be 50% or exceed 50% of the net result. By executing all that we have covered through and we will cover during today's presentation, we believe that will take us closer to our updated vision, which is to be a preferred choice for our investors and our partners. So as a summary, we see growth across all these 3 synergistic businesses. We are targeting to capitalize Garantia's distinctive market position to open up multiple avenues for new kind of growth opportunities through enhanced marketing and sales activities. And we seek to improve profitability in Private Asset Management by scaling our flagship funds and expanding selectively into new parallel strategies or new asset classes. And in development capital, we are targeting to achieve returns that are exceeding our return on equity target on a group level, both from the existing investments as well as possible new investments that we are looking for. And we are continuously looking for selectively M&A opportunities that might arise in the market. So by leveraging our strongly successful track record, these global megatrends that are supporting us, the expertise, the skilled then and experienced team, and during H1 renewed distribution channel, we strongly believe that we are able to achieve strong returns for our investors and our shareholders. And we are really excited when we are looking at our future and our strategic plans. So with that, I will hand over the stage to Henrik Allonen, our Managing Director of Garantia.

Good afternoon, ladies and gentlemen. I will take you through 3 points about Garantia in the next 15 minutes-or-so. The first point is what Garantia really is and what makes our products and services excellent. The second point is that I will give you an overview of the market that we operate in. I will discuss the housing market, the home loan market, give you some idea how to go forward. And finally, I will touch upon the 3 priorities that we have in Garantia for the coming years. Garantia really is very similar to the other businesses within Taaleri Group in the sense that we operate in an industry, which, in our case, is the insurance industry, but we only serve a very narrow segment of that industry, a very niche segment. We are a niche business. So we are only engaged in credit risk insurance. Our purpose really is to provide easy and cost-effective solutions for consumers and businesses who like to borrow money and for lenders who like to lend that money. It is rare that someone buys insurance because they enjoy it. Most people buy insurance because they need the insurance to or the guarantee to solve a problem that they have. And the problem that we solve is, from the consumer point of view or the business point of view, that we are able to provide a guarantee that enables them the loan that they need. It could be that they want to purchase the home of their dreams or close the financing for their business. And also for the lenders, the problem is that they want to lend money, but there's some reason that they can't do it, and we are there to help them. So bring these 2 parties, the borrowers and lenders together. We currently have 2 business lines, which are both very important to us. The total portfolio, about 80%, is consumer guarantees, that is mostly finished residential mortgage loans; and then we have corporate guarantees for Finnish businesses. A very defining example of what we do is the fact that actually we started underwriting residential mortgage guarantees for Finnish home loans in 2005, so almost exactly 20 years ago. Since then, we have underwritten more than 100,000 guarantees. Behind each guarantee, there is a loan, a home loan and behind each home loan, there is a home. So we made possible the purchase of more than 100,000 homes in the last 20 years, which really means that we are an established part of the market and really the product brings in value to all the parties in the market. Now if you look at any statistics on the Finnish housing market, it has to be said that during the last 2 or 3 years, it has been quite different. The housing market peaked in 2021, at least when you look at the number of new home loans, which you can see on the left-hand side, so in 2021, EUR 22.5 billion of new loans, mortgage loans were drawn in Finland. Last year, the figure was EUR 13.2 billion. That is, ladies and gentlemen, a decrease of over 40%. However, if we look at the statistics from the first half of this year, it is clear that some kind of a change has happened. And the change is mainly driven by the fact that if you went to the bank and draw a mortgage last year in June, the interest rate that you pay would have been, on average, 4.3%. And in this June, the corresponding loan rate is 2.7%. And for the average Finnish mortgage borrower who, let's say, borrows EUR 200,000, it means that every month he or she has to spend almost -- can spend almost EUR 200 less for debt service every month. And that really has sort of relieved a lot of the pressure that has been going on in the Finnish market. And if you look at the statistics for the first 6 months for this year, the amount of homes transaction, so the number of homes being sold in the market has increased by 18% compared to the first 6 months last year. Now for Garantia's business, it's obvious that housing market demand is an important factor at the amount of new homes, the amount of new loans, that is mainly driven by consumer confidence, which, again, is affected by the expectations on interest rates, expectations on employment and so forth. You have to say that the relief on the interest rate side has been significant. What we're still dragging behind is the average -- the level of consumer confidence, which is below long-term average rates. Consumers are still quite careful about many things such as buying their home. So if you're looking for a guess that how the market is going, we would say that it is recovering at a considerable pace, but it's somewhat muted, so to see very large figures, growth figures, it would take that the consumer confidence would have to go back on normal levels. Now in our business, there are obviously many other things that affect the demand for our products. I have picked one. One of them is a financial sector regulation. So usually, when you think about regulation, it's considered a negative; for us, it can be sometimes positive as well. One thing that has happened, for example, for us, is that the regulations for banks, how the banks can accept and value collaterals has changed dramatically during the last couple of years-or-so. So in order for a bank to accept a physical collateral, you need to document have documentation, you need to value the collateral, you need to administer the collateral while you're holding it and you need to reassess the collateral every year-or-so, which makes the collateral administration very expensive. And in many cases, it's often much more easier to have a guarantee in place instead of a physical collateral because you don't need to revalue a guarantee, it's a document. And so we see some sort of supporting tailwind factors in addition to the pure volumes in the housing markets that really support our way forward. Of course, we are monitoring very closely so that the level of bankruptcies and loan defaults in Finland, bankruptcies are quite high. We have been traditionally quite careful with corporate underwriting rather conservative approach to risk. But this is also -- the fact that if you have high bankruptcies, you have lots of uncertainty, which, again, might sort of provide some tailwind for guarantees because the guarantee is a safety against a materializing risk. And moving on, the interesting question is, of course, that how is this all reflected in our figures? On the left-hand side, you can see Garantia's insurance revenue, so that is the interest premiums that we earn every year. Since 2015, the 2021 was the peak year in the housing market. We booked an insurance revenue of EUR 18.6 million for that year. And currently, on a last 12-month basis, we're at EUR 18.7 million. So you could say that despite the 40% market slump, we have done reasonably well in relative terms, at least. So we have been able to sort of by sales and sort of upkeeping the business, we have been able to maintain a rather good level of revenue for the duration of the decline in the last couple of years. On the right-hand side, again, you can see our combined ratio, that is the measure of our profitability of our business. So you could say that we currently report, on a 12-month basis, a combined ratio of 34%, which is pretty much the same level as in 2021. So we have -- we see some increases in claims, obviously, because of the downturn in the economy. And so -- but overall, sort of things are very stable, again. Now when you look at Garantia, you always have to remember that we actually have 2 sources of income. We have the insurance profit and then the investment profit. And the underlying factor behind both these profits -- these sources of revenue is that we like to have both quite low risk. So on the insurance portfolio side, most of the portfolio is made out of consumer guarantees, very well-diversified, high numbers of rather small guarantees and low risk. On the investment portfolio side, we have an investment portfolio of EUR 158 million, including cash and interest. 75%, as Ilkka mentioned previously, of that portfolio is fixed income investments and only 25%, that is 1/4, is equity investments. So we have a rather conservative approach to risk, so which highlights the fact that that we more claim for stability than sort of opportunistic ventures. Now we tend to do 4 things really well in order to be successful in this business. First of all, our business is based on very long-term partnerships with our lender banks, our customers, our clients. We have a very deep understanding of how those lenders work, how our clients work, how their business process work and how we are able to produce solutions that really drive their business because that's our job to be the enabler of loans. Secondly, we run a very efficient insurance operation, as you saw in the previous slide, which enables many things for us. But for us, it's very important to be efficient. Thirdly, we have very strong solvency. We have very good governance culture, and we understand risk, and we have the track record to show that and we have a traditional being disciplined in underwriting. And finally, none of the 3 would be possible without having a committed team because the insurance company doesn't have any physical assets, it is the 20-or-so professionals that really make through these 3 advantages for us. We have 3 priorities looking ahead at Garantia. The first one is to increase the market share of the residential mortgage guarantee. The residential mortgage guarantee has been a success, and we still see there's a lot of room to make it the #1 additional collateral in Finland. Second, we aim to expand our distribution. It means that we might consider building partnerships with new lenders or extend our existing partnerships in order to distribute more guarantees, both on the residential market side and then on the corporate lending side. And this also includes the dimension that we are actually studying whether we could do this in the Baltic states, for example, or in the Nordics through the international credit risk insurance markets. We're not there yet, but something that we're very actively looking. And finally, we need to make sure, because we're quite capital-heavy compared to the other businesses in the group, we need to make sure that we optimally use our capital, both to retain good solvency and then to -- in order to pay a stable stream of dividends to our parent. A couple of words, how we're going to plan to do it. We have been investing money in increasing the brand and product awareness of Finnish home buyers. So really, we want the market participants, consumers, households really to know that there is such an excellent option that instead of placing a physical collateral, you can actually apply for a guarantee for a reasonable price. Finally, another point is that we are in the face of finalizing certain product improvements. which will make our guarantee more available and more easier to use for the banks and the borrowers. And this, we expect to facilitate the growth of the consumer guarantee business. On the distribution network side, as mentioned, we tend -- we are looking into increasing our corporate underwriting in Finland, especially that means Finnish corporate loans and then investigating the international aspect, mainly in the nearby markets. Here, you can see some of our key figures for the last 12 months. On the left-hand side, you can see the segment revenue. The reported revenue for the last 12 months is EUR 19.5 million for Garantia. And the operating profit, which is in the center for Garantia is EUR 18.2 million. And on the left-hand side, you can clearly see that the the 2 sources of income where the insurance income is the rather stable one then you have the investment income that changes according to the market situation. And on the right-hand side, you can see the development of the total insurance portfolio that is the outstanding exposure. Ladies and gentlemen, Taaleri acquired Garantia in 2015. Since then, we have paid EUR 93 million in dividends to Taaleri plc and the company is as good as ever. So we wish to maintain this track and fulfill our role within Taaleri Group, which is to be the enabler and the cash provider. So just to summarize, we have a good performance in the recovery market. We see a clear potential to increase our market share. And our job in the group is to be the stable provider of cash flow. Thank you very much, ladies and gentlemen.

Thank you, Henrik, for a great presentation. We now have time for Q&A, so you can please have a seat, and Ilkka, you may also join us here on the stage.

[Operator Instructions] We have a question from Sauli Vilen from Inderes.

Sauli from Inderes. About Garantia, about the international expansion. In the previous strategy period, you also mentioned the possibility to expand abroad a, why haven't you done it? And b, why you still think it's a feasible option to do since you haven't done it yet?

Okay. We are actively working towards entering the market that we have engaged during the last couple of years or so, we have engaged in certain arrangements in order to enter this market, but we're not there yet. The question is pretty much about this selection of risk that what we want to really want to concentrate on and what is the sort of the deal flow of business, whether it's suitable for the rather conservative approach to risk. But we're -- it is an attractive market, and we are really working towards it.

Then about your growth target of 10% on the insurance service profit -- do you -- does it include the international expansion? And b, what kind of market recovery are you projecting from the Finnish housing market? Obviously, that's one of the key drivers for you.

Yes. Of course, the 10% growth assumes the materialization of many of the plants that we have. And it was, of course, a certain -- has a certain expectation on the recovery of the Finnish home loan market. I'm not going to give you any exact numbers, but we could say that as you've seen in the history that the mortgage volume has been EUR 20 billion a couple of years ago, so that would be a reasonable level to estimate in the next couple of years.

Okay. Then I may continue still on Garantia. About your solvency, that's been going up during the past 4 years-or-so, it's now really, really high. I mean, at what stage do you feel that in order to optimize the balance sheet or optimize capital use, as you said in your presentation, it would be feasible to extra dividend for the parent company in order to keep your balance sheet lean enough?

Okay. So looking at -- if you look at the second quarter solvency ratio, which is 275, of course, that will be reduced when we declare a dividend for this year, which we'll have to wait for some time. So when the dividend -- possible dividend will be taken into account, then it will be reduced. But answering your question, I would like to say that in Finland typical insurance companies have a solvency ratio in excess of 200%.

Adding 1 comment on that. Obviously, Garantia has an extremely strong balance sheet. And one function of that is obviously that it enables its own growth plans as well. So like we discussed today is that Garantia is having quite attractive growth plans for Garantia itself. And obviously, high solvency is supporting those ambitions as well.

If I can add 2 more questions for you, Ilkka. About your investment portfolio, the target size you previously aimed for the plus EUR 100 million in the Bioindustry now you have scrapped that. So is the current EUR 50 million investment portfolio in the parent company, a good proxy for the future or how we should look at that?

Well, that's exactly why we haven't set any specific deployment target is that we are looking for opportunities within our existing portfolio. And if we see a kind of attractive investment opportunities, we are ready to kind of seize the opportunity. And that also applies to new additional investments in development capital. But we haven't set the specific deployment target because of the fact that we don't want to get in a situation that because of certain targets, we start to invest in our capital to certain directions. And the kind of -- on a group level, we are optimizing the capital allocation between these 3 different businesses. So we can actually invest quite heavily. If we are looking for organic growth, for example, in private asset management business, that typically requires quite significant seed financing to establish a new fund. So that's why we haven't set a specific target between this because we are kind of looking for opportunities between these 3 categories.

Yes, still continuing that you didn't mention about the extra dividends or any extra shareholder payments, I guess, that is because you aim to deploy all of the excess capital back to your growth plans?

Well, yes, as an operational management, our job is to -- and our strategic plan is growth plan now. So we are targeting growth in all 3 businesses and what we have a dividend policy. Whether we will then increase the dividend or whatever would happen before that, that's obviously decided or proposed by Board to AGM and decided by the AGM. So our plan is a growth strategy, and we are targeting growth. And what will happen then kind of with the dividend is kind of other side of coin and end result of our execution of growth plans.

Thank you, Sauli. And now we have a question from Joni Sandvall from Nordea.

Yes. Maybe a question still on Garantia. I mean you mentioned that you aim to increase exposure in corporate side. Do you see any increased risks because now your combined ratio has been coming down to really good levels? And if I remember correctly, it's partly driven by lower exposure to corporate. So could you give any an indication of what sectors you are looking more on the corporate side?

I would say that for us, it's typical to underwrite guarantees not in the very small businesses. So we're looking at medium -- most medium-sized businesses. And of course, on the corporate sector, the risk profiles are high, but it's really in our core to really do the underwriting in a way that we have the best possible track record with regards to claims.

Okay. And then the second question on development capital. Do you see any conflict of interest with the funds or upcoming funds given you are targeting higher return on equity on this development capital investments?

So actually, on contrary, the crucial thing is that we -- the first thing that we always check is that we don't end up in a conflict with our existing funds. So if we end up in a new investment in development capital, there is obviously something that is not suitable for our funds. But then on the other hand, when kind of the target of exceeding our return on equity target, that applies typically obviously also on many of our fund and fund level investment. So it is actually more and more common. If you take a look at the global private equity market that these global major players in addition that they have acquired both non-life and life insurance businesses, they have also deployed capital for the permanent type of investments. because they see clear opportunity in that area when the investment lifetime is not tied to life cycle of the fund and that's where we see opportunities. And obviously, as we explained, we are not present in many asset classes at the moment. So there's plenty of opportunities that are not conflict with our -- any of our fund activities.

Thank you so much. And we have a question from online. So you mentioned that in your growth strategy that you're planning to move into new asset classes, so which are the asset classes that you think you would be most successful in?

Well, as we had that slide which illustrates the current activities that we are looking for. Obviously, the final strategy and where we enter are not obviously yet ready because we haven't published that. So we can only say at this stage that we are investigating many opportunities, and we are actually seeing many opportunities of the directions where we can grow and where we can enter in. And that slide illustrates some of those examples that we -- where we see possibilities.

Thank you. And then could you also elaborate a bit on your distribution strategy, since you announced some months ago that you are terminating the cooperation agreement with Aktia? So what was the reasoning behind that and what going to happen with that fundraising that was created through Aktia before?

So yes, so it was actually part of the strategy process that we went through. It's first part of the strategy implementation that we have already carried out. The current consideration and the conclusion was that it is highly important that in our kind of specialized fund or asset manager, it is crucial that our teams can have a direct dialogue with the LPs. And that's why we made this strategic decision to in-source Tier 2 and Tier 3 customers so that in our case, we can have that direct dialogue. So it was a strategic decision. And then on the other hand, like I explained, we will still continue distributing our funds in high network category through cooperation and partnership agreements.

Great. Thank you. And we have a follow-up question from Sauli Vilen from Inderes.

Yes. Just to clarify about the -- your target base here? Is it '24 or '25?

'25.

Okay. That's clear. Then about your sales strategy. Still, obviously, for the past strategic period, the biggest bottleneck in asset management growth has been your own sales capabilities at least that it seems from that side. So now you have made a couple of recruitments there. But what other capabilities do you feel you need in order to get the sales to the next level, so to speak?

Well, first of all, I'm actually not so sure, and I'm actually quite confident that the fundraising has not kind of been our bottleneck in growth as such. It has been mainly driven by the overall market circumstances that we have been facing in private equity industry. The second thing is that, obviously, when we are targeting growth, I think it comes back to the question and the strategic consideration that what we have noted that the LPs really would like to have a direct dialogue with our experts and with our investment team members. And that's why we believe that when our experts and team members can explain the strategy of the certain fund, the kind of the market situation and the circumstances where we are operating in, we can have a kind of better dialogue with the LPs and they are also more confident to invest in our products and services, and that's the kind of the backbone of that decision.

Thank you. And there's a question online about why you're not buying back your own shares because the price to book is 1x?

Well, that's obviously our job in operations management is to run the company and, in this case, also grow the company that's then but the share buyback program is launched at the decision by the Board.

And we have time for a couple of more questions. There's one question regarding the Biocoal project in Canada and whether that's now out of question, if you are focusing on more cash flow-based investments at the moment?

No, it's not out of questions. And Marjatta will walk you through later during today the strategic highlights and priorities for Bioindustry business, but that's still under our plans and the kind of the timetable and the time line you will see in Marjatta's presentation.

Great. Do we have any more questions here from the floor? And let's take one final question from the line before we move to the break. So maybe this one goes to Henrik. So the combined ratio has been going up slightly this past few years, is this something that we should be worried about?

If you look at the last 12-month figure, so the combined ratio was 34%, which is sort of slightly higher. As I mentioned, we have some sort of -- we have had slightly more claims than usual. And then, of course, we have had more operating expenses. We have invested in sales and marketing activity. So there are sort of sort of positive reasons behind the combined ratio as well.

Thank you. In case there are no further questions, we will move on to a 15-minute break. I'd just like to remind you that there will be a second Q&A session after the second half of this event, and you are welcome to submit any questions until then. Now let's move on to the break. [Break]

My name is Kai Rintala, and I'm the Managing Director of Taaleri Energia. Now just this week starting the tenth year at Taaleri. And today, I'm going to take you through a bit of definition who Taaleri Energia are and then look at our strategic priorities for the coming 3 years, okay? So we are a renewables fund manager investing in wind, solar and battery storage and the business model is very much to buy projects during the development phase then take them through development, contract, put -- run through the procurements and put all the contracts into place, then build the projects, then bring them into a steady state of operations and then sell them to a buyer that has a lower cost of capital. It's a 50 people team, about 20 in the investment team and then about 20 people in the engineering roles. All of our funds are Article 9 funds, so deep green under the EU taxonomy. And then we work with LPs of the highest caliber. So European investment fund, European Bank for Reconstruction Development, KBC from Belgium and then Barman and as the anchor investors. At the moment, EUR 1.7 billion AUM. The portfolio is 9.1 gigawatts, about 2 gigawatts of that is either operational or under construction, rest of its development and then target return 10% IRR. This is just to say that we are in the energy transition business. In terms of the market, Ilkka already outlined how investments into infrastructure are going to grow during this period, but this is here to illustrate that in Europe and U.S. onshore wind, PV solar and battery storage is going to be about 513 gigawatt market over the next 5 years. We are going to be investing in approximately 2 to 4 gigawatts in that period, depending on the degree of leverage that we use and how much we do together with partners, still, there is plenty of room for a player like that in this market. And how we invest is we are diversified across geographies. So in 2016, when we started going outside of Finland, this was a key tenant, the acknowledgment that power markets move in different phases and also government policies with respect to renewables work in basis. And then if you're diversifying your investments, as any investment that is a smart thing to be doing. So that's one whereas then on technologies, we have 3 onshore in PV solar and then battery storage and then various combinations of those, so you can have all 3 behind the same grid connection or you can just have 2 of those. The priorities for the coming 3 years, so first of all, its investment performance in this business, that is absolutely everything. You need to be having your assets perform, and you need to be exiting them at good valuations in order to then attract new investments. So look after the operational and under construction assets. Then equally, you need to be putting new assets into the construction. We're just approaching the final close of our SolarWind III Fund. So we are busy investing that. And then SolarWind IV fundraising preparations are now ongoing and we expect to be launching that next year, and then the fund raise will go on for a couple of years, years from that. Then in terms of new things. So what we are saying is that in this strategy period, we'll evaluate 1 or 2 things. And what those might be is effective in parallel strategies that will require your own investment team. And just to give an illustrative example of something that we won't do, but it could be that we would evaluate whether we should be getting into U.K. offshore wind. So that's a new market in terms of the U.K. and new technology in terms of an offshore wind. So it is those sort of things that we will be looking at whether we should be doing. And then the final decision will naturally depend on the on the merits of the strategies that will be established in the valuation. Our story. So we started in 2011. And we've been systematically able to grow the fund size since then. SolarWind III is currently at EUR 503 million. We expect it to go slightly before the end of the year. Final growth will be will be at the end of the year. But we are extremely, extremely proud of the fact that we've managed to truly internationalize the investor base investor base now for this fund. And indeed, investment activity, it's well on its way. We are 55% invested already. And then in a bit more detail. So what are we doing? Deployment, just look after the operational assets. SolarWind III, finalize the investments from that, eventually start the investments from SolarWind IV. SolarWind IV, the prep has already started, will hit the market next year for fundraising and then that will go on for a couple of years. The target size is EUR 800 million. And then exits. So we have been running processes for our existing projects, we need to complete those. And then indeed, it is SolarWind II fund that comes into the exit window during that strategy period as well. Again, investment performance is everything. Then in terms of what does the business look like in numbers? And really the summary is that, that revenue is growing. Operating profit is growing and the AUM is growing. And this is the plan -- the plan is to continue that same trend going forward as well. This is a quote saying that diversification in investments is a good thing. We're in 13 countries and 3 technologies at the moment, and that naturally helps you -- helps you to go through the low power price periods. Then coming into the summary of the presentation. And that's to say that, okay, look, we've been at this for 14 years, we raised EUR 1.7 billion of equity for this strategy. Technology and geographical diversification is a good thing and then investment performance is absolutely everything. Thank you. I will now hand it across to my colleague, Marjatta.

Thank you, Kai. I'm Marjatta Rytömaa, and I joined Taaleri as the Managing Director of Bioindustry May this year. I bring to this business a long experience from private equity, where I've been supporting growth of 11 companies from different sectors, mainly through board work and through close collaboration with the management teams. My background is originally from biochemistry and both from academic and industrial environments, and that also gives me somewhat different perspective. It is a pleasure to be here presenting the outlook for Taaleri Bioindustry. And in Bioindustry, we accelerate the shift from fossil-based economy to renewable materials and circular business models. And here, in this picture, you can see a Biocoal which is a good example of this as it is a clean alternative that can replace fossil raw materials. Basically, it can replace coal in power plants without any expensive investments. As you've heard, Taaleri Bioindustry is the youngest of our businesses. And we focus on growth and industrial investments where biobased and circular economic solutions are solving real industrial challenges. We operate through -- currently with 1 fund and 2 single-asset vehicles, and we provide hands-on strategic value to market -- to go-to-market strategy and scaling production. We are currently a team of 10 experts and we have EUR 164 million on assets under management in 2 single-asset vehicles and fixed investments from our Fund I. We have diverse expertise in our team, which gives us the opportunity to support our investments in many different ways in growth strategy, in ESG, in technical issues. So we want to be there to support the value creation in our investments. If we look at the market situation, the clean tech market is cautiously optimistic. The manufacturing growth has been moderate, but especially in the beginning of 2020s, the bioeconomy was growing stronger. This also correlates well with the number of clean-tech investments, which were also growing beginning of 2020s. However, there has been a clear decline of 24% from '23 to '24. And this somehow correlates to the situation now that both customers and businesses or consumers and businesses are not really willing to pay any premium on sustainability. However, we believe that the -- as the economic outlook improves, also interest towards sustainability will increase. We have also regulation supporting us as, for example, the reduction target for greenhouse gas emissions is 55% by 2030. Another example could be the packaging and packaging waste regulation, which targets to have all the packaging materials, renewable or recyclable by 2030. So basically, in Europe, we -- European Commission wants to make the future like that wants to make the economy to be future-proof, so that we have less carbon dioxide emissions, less use of raw materials -- loss of raw materials and more reuse of materials. Let's then look a bit on the investment scope in Bioindustry focus. We invest in different sectors. And as you can see here, these include packaging and sustainable food as well as construction, and for example, energy. These sectors reflect to our commitment of solving industrial problems through bio-based and circular economic solutions. Let's just give an example of -- from our companies. Colombia is a leading innovator of sustainable packaging, which products replace plastic-coated materials that can be used, for example, in beverage cups and food wraps. You can also see here our newest investment Finnish food factory, which is -- it was actually published yesterday, and it is a contract manufacturer for plant-based dairy products. In our Fund I, we have committed capital of EUR 107 million, and about half of it is currently invested. We are still looking 1 to 2 additional platform investments, and we mainly target from our -- target companies from our proprietary sourcing, so our networks and our own insights. We are looking at the Northern European markets when we look at the potential investments. We have those 2 single asset vehicles, one of which is being the biocoal. The biocoal is Europe's largest industrial-scale biocoal facility with 60,000 tonnes of annual capacity. It is -- biocoal is produced by terrifaction technology, and the end product can be used in various process industry applications. The facility produces biocoal from byproducts of domestic sustainable certified forest industry. And we have also been now looking at opportunities outside of Finland, Canada being the one that we are looking as we can -- we believe that there, you have the raw material source as well as the good potential for offtake opportunities. The second single asset vehicle that we have is fintoil which is -- which refines crude oil oil in its facility in The resulting fractions give clients the essential base for renewable biofuels, adhesives, health and wellness products. The facility is one of the world's largest refineries and it has been operational since autumn '22. Currently, the facility is producing -- or using 80% of its capacity, which is 200,000 tonnes annual capacity. The growth has been very good during the last 12 months ending June this year, as the revenue grew 55% to EUR 123 million. Our strategic priorities include monetizing expertise through value creation. This is basically in our current investments where we work closely with the management teams and provide them with our expertise from our team in growth strategy, ESG and in technical issues. Our target is net IRR of 15%. We obviously also target to invest -- expand our investment scope, and we are targeting to raise Fund II where we can leverage our learnings from Fund I and focus on companies with already proven -- industrial proven bioeconomy and circular economic solutions. And the new fund size is targeted to be EUR 150 million or over. We use to leverage our knowledge from biocoal and we are making the decision to go forward with the Canadian expansion during the next 12 months. We are also planning to further institutionalize our investor base as currently our main investors are family offices from Finland and high networth individuals. We are targeting both institutional investors in Finland and internationally, especially those that have specific interest into sustainable investments. We target over 20% of international investors. Our road map towards our strategic milestones during this next 3-year period include to complete our platform investments in Fund I and to start, towards the end of this period, the first investments from Fund II. Obviously, we will need to raise the Fund II first and that's one of the -- that's the fund raising activity that we are going to have and then the decision to go forward in Canada is obviously an important decision for us as well. We will focus on the value creation of the companies in our Fund I and plan and target to have the biocoal fully operational during basically next year. Towards the end of this period, we are targeting to have the first exits from Fund I. To summarize, the Bioindustry business is backed by strong megatrends that support resource efficiency and circular economic focused business models. We enhance strategic value in portfolio companies through financial and industry expertise. We aim to grow both through flagship funds and asset -- single-asset vehicles. And I'd like to leave you with a note that there is a clear need to replace fossil materials. And we invest in industries and solutions that enable this necessary shift in both production and consumption. Thank you. And I'd like now to welcome my colleague, Mikko Krootila.

Thank you, Marjatta. My name is Mikko Krootila, and I'm the Managing Director of Taaleri Real Estate. I've been working at the group since the beginning of 2024. My own industrial background is from the Nordic real estate market within investments, transactions, asset management and portfolio management. I will walk you through our business unit strategic initiatives for the target period, but first, let's visit what Taaleri real estate is and also show the glance about the market environment. So Taaleri real estate is a fund and investment manager with 15 years of operational expertise and excellence in the market with successful exits of 8 funds in the past. Today, our assets under management is roughly EUR 700 million, with portfolios in Finland and Sweden through closed funds and SMA, so separately managed accounts structures. These also include structures. In 2019, Taaleri the entry in real estate markets being one of the first closed-end funds and also we pioneered in residential investments. And since that, we have been scaling that business through launching several new residential vintage series and -- along with other sector strategies. Since 2009, the market has changed a lot. There's been ups and downs. But throughout the years, we have been able to provide consistent and stable returns to our investors, generating outside returns compared to market. Today, we have a team of 13 people and having all strategic capabilities in-house. Looking at the market situation, we know it's been tough for real estate for a long time. In 2022, interest rates started to increase rapidly and that actually created one of the largest downturns in the real estate market since the global financial crisis. And the interest rate increase affected also asset valuations throughout the geographies and jurisdictions, but also across the real estate sectors, and with the magnitude actually compared to global financial crisis. And that also affected the transaction volumes. So looking at the slide, we can see we are demonstrating the Nordic transaction volumes in Denmark, Finland, Norway, Sweden, which shows the transaction volumes actually dropped from the peak roughly 70%. However, recently, we have seen some relief in the market, having over 200 basis points of change in interest rates, and that has actually created more activity also in the transaction market, which actually today is something like 30% up on a year-on-year basis. So that are positive signals. Also other positive signals, for example, stock market and equity market rebound. And as real estate market is post cyclical, these trends tend to move also direct real estate market at some point. So in our view the market is actually right now on the turning point, and it's -- this rapid recovery presents actually idle moment to deploy capital in attractive deals in the market. Our investment strategy are shaped and following the megatrends where urbanization is one of the key megatrends. And however also in that category, there's been quite a lot of changes in the Finnish housing market, which is our core in our operations. So looking at the left-hand side graph, we can see the permit, starts and completions in the Finnish residential dwelling construction volumes in Finland. And at its peak, we faced something like 45,000 new completions per year. which is well above the estimated average, which is 35,000 new dwelling units, which is the demand per annum. However, during the last 2 years, it has drastically -- the completion levels has drastically dropped at the level of 20,000 new units and the estimate is that is still on the low levels in the next couple of years. Looking at the demand side that comes from the people and population growth. So looking at the annual population growth in main growth centers in Finland, so Helsinki, HMA area, and Turku, the population growth has been steady in history, but also in the future, it's been forecasted to be something like 10% up to 20 -- before 2030. So that really drives actually the demand in residential sector. And despite of the market sluggish and I mean challenges in the market, we have successfully taken advantage of the cycle. For example, we have been able to transact in the market worth of EUR 75 million through 6 transactions during the last 12 months, which is a great success. We also launched a new vehicle Eden Living with Keva, the Finnish largest pension insurer, which is now seeking to deploy EUR 300 million into the market. Our team has been also successful on completing and closing refinancings, which are very important in order to stabilize the our vehicles operational base. And with this, we have been able to secure and actually improve the risk position of our vehicles. And still, we have continued our important work on asset management side, bringing value add on the table, for example, increasing the occupancy rates and optimizing operational expenditures. But also on the ESG side, we have just completed our whole portfolio in Housing Fund VIII, where all the assets are EU taxonomy aligned, EPC A rated and will be certified. So all in all, despite the challenges in the market, we haven't been on the active, but also executed in a great way. And this is actually a testament for our team with strong expertise and capabilities what we have, but also the strong platform we've got in place right now. So I think this slide -- showing our real estate platform. And I think this slide actually underscores the strength and scalability of our portfolio and what we have been able to build up during the last 15 years, which is diversified, and again, showing resilient -- as a resident portfolio. We have done, again, as said, several successful exits weighted towards our residential fund series in the past boosting our track record. And also along and throughout the years, we have been able to grow our vehicle sizes. And that has actually continued till today and will continue in the future. So for the future, our focus will be on scalable products, close to our core competencies. And our strategic priorities for the target period, we can split it in 4 components, but the link is actually growth. So these strategic priorities are actually designed to ensure our growth in this shifting market environment. The first one is about cyclical advantage, what we want to capture and also do it in a profitable way. This will happen through new vehicles, which can be in flexible way closed-ended funds or separately managed accounts. Second. We will keep leveraging our exceptional track record and expertise in residential sector and we are assessing 1 to 2 -- constantly assess in 1 to 2 new initiatives in the sector. Third is about AUM, assets under management, which we aim to hit the level of EUR 1.4 billion at the end of the strategic period, so basically doubling our AUM. That is challenging and an ambitious target, but still definitely achievable. And last is the operational excellence, as we need to ensure the returns to our investors exceeding our target IRRs in our vehicles. And the focus will be on our great value-add work and to provide the best risk-adjusted returns for our investors. To split this in more down and looking at the milestones. So the growth will happen, again, as said, through additional vehicles in residential sector, but also we are exploring to launch new winded series in new sector. And as Ilkka said, M&A is in our toolbox. We are exploring opportunities over there besides of new potential partnerships. Successful capital deployment is all in all, as the investment performance is very, very important within this sector. And there will be much focus on doing successful deals in the market. And last, portfolio optimization, value creation and exits. We aim to exit the final assets in our funds, #1 and #2, but also exit our fund -- Small Business Unit fund during the strategic period. All in all, we are well position to continue our robust work win in the shifting market environment and continue our growth journey going forward. To summarize, we are well positioned to take advantage of the cycle and deliver value to our investors and stakeholders. Also, opportunities in built environment and urbanization that supports our core strategy, which is residential and where we got very good track record. And our strategy is captured. Strategy is designed to capture these elements and these changes in the market. And we will be active in the residential market where we have been long-time front-runner. Last, we will leverage our platform and group synergies to grow in profitable way to launch new investment products. Thank you. This was my part. And now I will hand over to my colleague, Lauri Lipsanen and the Group CFO.

My name is Lauri Lipsanen. I started as Group CFO at Taaleri roughly 4 months ago. My professional background is that I have 2 Master degrees, one from industrial engineering and one from finance. I have 5 years in consultancy and 2 years in pulp and paper industry and the last 12 years as Group CFO in private equity on companies. Past company before Taaleri being Today, I'll start by opening up Taaleri's different sources of revenue, then going through some historical revenue and profitability trends, after that, I'll talk about our balance sheet and historical dividend distribution; and finally, about our financial targets and related leverage to achieve those during the strategy period. Our revenue is based on multiple different streams. We currently have 5 distinct sources of revenue driving shareholder returns. And our aim is to have 6 distinct sources in the future. Garantia's main income stream is insurance service result supported by net investment income on Garantia's large investment portfolio of almost EUR 160 million. Net investment income comprises both realized and unrealized investment income. However, it should be noted that part of fair value changes is only visible below revenue and operating profit and presented in the other comprehensive income. Private asset management generates continuing management fees from different funds and fees from operational asset management in renewable energy. In we generate performance fees from funds exceeding the target internal rate of retail levels. These performance fees can be recognized as revenue through the lifetime of a fund. However, on a cash flow basis, once performance fees have been received, subject to a successful fund exit, no management fees will be generated from the exit fund. Investments include development capital, currently generating investment income such as dividends and changes in fair value and realized income. As Ilkka mentioned, our target is to generate continuing earnings from the stream via different kinds of fees and other earnings. During the last 5.5 years, revenue has almost doubled and operating profit almost tripled. Roughly 40% of the revenue growth has been subject to the fairly stable growth in continuing earnings. Net investment income has generated over 50% of the total revenue growth. However, the annual net investment income has fluctuated largely driven by challenging market sentiment impacting especially direct investments. Also, the rapid changes taking place in interest rates during the period under review has caused fluctuation in the current year related net income as Garantia's investment portfolio has been mostly related to fixed income investments. When we look at the most recent growth from 2022 onwards, we can see that the growth has been modest. For instance, performance fees has played a significant role during 2021 and 2022. In addition, a challenging market sentiment, a limited amount of new funds loans have limited our growth. Exit markets has been challenging, impacting adversely on our direct and fund investments as well as our performance fees, whereas the material declined mortgage loan volume has limited Garantia's net insurance income growth. It can be summarized that continued earnings have been growing rather steadily. However, volatility of the and continuing earnings has been high, further emphasizing a need to asset-related results over periods longer than 1 year. There was some technical mistake there. But as stated, the volatility has been high in the past, and now we are looking for the continuing earnings in more detail. As stated, the growth in continuing earnings has been fairly stable from 2020 onwards. The picture is similar when we look at rolling 12 months, continuing earnings figures on a quarterly basis to the last 3.5 years. The respective compound annual growth rate has been 4.9%; at the same time, operating profit from continuing earnings has increased from EUR 7.7 million to EUR 9.9 million, resulting in respective CAGR of 10.7%. This means that we have been able to improve our related operating profit margin by 3 percentage points to 25% despite the fact that first, current market environment has been challenging; secondly, we have invested in new asset classes such as Bioindustry-related assets and operations resulting in relatively higher personnel and other operating costs. However, when it comes to OpEx and fixed personnel costs, excluding bonuses in general, we foresee that these costs will increase only slightly compared to revenue growth as we have been and are building scalability, we have the current efficiency initiatives, including, for instance, the company-wide AI program and several cost-saving initiatives. When we look at rolling 12 months revenue and operating profit development on a quarterly basis, it is clearly visible that both the group total revenue and operating profit development have been volatile. This has been mostly due to higher volatility in performance fees and investment operations. Therefore, as stated earlier, a period of 1 year is not enough to assess underlying performance of net investment income and performance fees. And as on the right-hand side, it should be noted that the part of the investment operation result is only visible in the other comprehensive income presented below operating profit. As evidenced from the adjacent operating profit bridge, continuing earnings cover a vast majority of the group's cost base, leaving also a decent surplus in terms of operating profit. Net investment income and performance fees impact almost directly to operating profit as related costs are fairly minor. However, as discussed on the previous slides, net investment income and performance fees have been fluctuating largely over the years, especially what comes to performance fees, whereas continuing earnings have generated more stable positive profitability. Therefore, it can be concluded that operating profit from continuing earnings is one of the key value drivers for the company, but also both net interest income and performance fees are essential shareholder value drivers. As presented in the CEO section, we consider that there are synergies between the businesses, driving impact, growth and value creation. We have Garantia of its stable cash flows over business cycles, enable a strong dividend level and higher risk profile in other segments. Garantia's total operating profit during the last 24 months has been EUR 39 million, out of which EUR 30 million have been or will be distributed as dividends. What comes to private asset management. Renewable energy subsegment is clearly profitable and has generated operating profit of EUR 17 million during the last 24 months, whereas operating profit has been negative in other Private Asset Management business. We aim to grow Private Asset Management further both organically and inorganically and stable cash flows generated by Garantia, help us to take more risk with new growth initiatives further resulting in higher growth and profitability in Private Asset Management segment. We also aim for turning other Private Asset Management profitable, as mentioned by Ilkka. Then we have development capital, which has accumulated operating profit of EUR 50 million during the last 24 months. We consider this segment to be more opportunistic, and our target is to further boost shareholder returns within this segment. In addition, we have group function and other businesses such as Taaleri Capitali. The accumulated cost base through the last 2 years has been EUR 30 million. As stated, we have been and currently are building scalability, and we consider that we are well equipped to improve our margin levels and profitability whilst revenue is growing. We'll soon talk about roles of each investment portfolio, divided development capital and other investments fund investments and Garantia's investment portfolio. But before going to that topic, let's have a short overview of Taaleri's balance sheet. Taaleri's strong balance sheet mainly consists of investments and equity supported by net cash position. Our equity ratio was over 70% as the end of Q2 and liquidity have remained strong. Available total liquidity was EUR 46 million consisting of cash balance of roughly EUR 16 million and the unused revolving credit facility of EUR 30 million as per the end of June 2025. The first dividend tranche of EUR 7 million was distributed in April and the second dividend tranche of also EUR 7 million will be paid in October. Investments account for over 70% of Taaleri's total assets and have an essential role in both value creation and financial stability. The main role of fund investments is to support new vintage launches and penetration to new asset classes with an aim to leverage income from fund success. Currently, the fair value of fund investments is EUR 11 million. Development capital and other investments accounted for EUR 42 million as per the end of June. As discussed by our CEO, we aim to create value via development capital by utilizing our expertise. We consider investments in both our existing investment portfolio and through new investments. Then we have Garantia's investment portfolio, which accounted for over half of total assets as per the end of June. It should be highlighted that the investment profile is fairly conservative as roughly 75% is invested in fixed income and the rest on equity. This is because of the main objective of this investment portfolio is to secure capital and active stable and steadily increasing asset growth to meet potential insurance claims. We currently have no financial loans. And as discussed, our total liquidity position was EUR 46 million as per the end of the last quarter. The strong liquidity is one of the key enablers to exploit inorganic growth opportunities. Our equity is strong, mainly because of Garantia-related solvency requirements and debt restrictions as well as high amount of invested capital with our debt. The strong equity in more stable and strong dividend distribution and Garantia plays a key role behind this as evidence for instance, from the Garantia's dividend slide presented by Mr. Henrik Allonen. Also with strong equity we see that we are well positioned for potentially exploring inorganic growth opportunities. Here you can see our dividend payout history. The dividend payout ratio has fluctuated between 34% to 123% historically the 3 years being on average, clearly higher in terms of dividend payout ratio. This year, we have already paid a dividend of EUR 0.25 in April and the second payment tranche of EUR 0.25 will be paid in October. And as already mentioned by Ilkka, we aim to keep the dividend payout ratio at minimum 50%. As Ilkka mentioned and shortly presented yesterday, we published our new updated financial targets for the strategy period. As mentioned earlier, increasing operating profit from continuing earnings is a key value driver for our business as performance fees and net investment income are typically highly volatile. In artisan, we consider that operating profit from continuing earnings is better linked to our strategic ambition piston to grow Garantia's income from internal operations, scale Private Asset Management business with bigger flagship funds and new scalable asset classes and And thirdly, we also aim to gain fees and other continuing earnings via development capital. Therefore, one of our main financial targets, it's profitability, growth related; more exactly, we aim to achieve a compound annual growth rate of 12% on operating profit from continuing earnings. Ilkka talked about our targets to invest in development capital and new direct investments. We also went through the high volatility of performance fees and net investment income as well as the fact that over EUR 200 million of our balance sheet is tied up to investments. Therefore, we consider that the best way to measure underlying performance of these revenue streams is to continue utilizing return on equity as one of our main targets and we aim to exceed on average the level of over 15%. Compared to the previous financial targets, there is now a slight amendment made to calculation in order to capture full impact of fair value changes and realized investment income at the current return on equity calculation, dismissed investment items reported only in the consolidated statement of comprehensive income, whereas all fair value changes and related income -- investment income impact equity in both calculations. So in other words, now the full investment income impact is visible in both numerator and denominator in return on equity at fair value formula. We also went through our historical dividend payout ratio and our strong balance sheet position. We keep our dividend payout ratio target of 50% at minimum; however, taking possible capital requirements into account. For instance, Ilkka talked about inorganic growth opportunities which may have an impact on capital requirements. As the next step, I'll go through key levers to achieve profitability and return on equity improvements. We have categorized levers by segment to improve operating profit from continuing earnings and also levers further improving return on equity at fair value on top of the levers relating to operating profit from continuing earnings. As presented in the Garantia's section earlier today, Garantia's net insurance result has been flat during the most recent years. We expect net interest result to grow during the period, driven by rebounding residential low mortgage volumes in Finland, supported by our increased market share, which we aim to maintain and also grow further. Garantia's, Henrik Allonen also talked about growth initiatives, such as expanding our distribution with new and extended partnerships and possibly enter into new market areas. On top of this, slightly increasing net interest income is an important driver to further improve return on equity. In Private Asset Management, there will be exits decrease in management fee flows, and it is essential to replace those management fee flows via new flagship funds such as via SolarWind IV and also by entering to new asset classes, generating new management fees. We also discussed that we are on our way to turn other private asset management profitable. These levers are vital to increase our EBIT growth from continuing earnings. What comes to new funds, the termination of Aktia distributor agreement enables potential longer-term fee expense savings, meaning that we expect relative fee expenses to be lower compared to the currency expense levels. In addition, we discussed about highly volatile performance fees and in order to improve our return on equity we also need to grow our performance fee levels. In terms of development capital, our ambition is the thought to generate fees and other earnings developing capital as well as increased net investment income growth by, for instance, providing active capital for transformation of value creation and growth in situations where capital markets don't function optimally. And as stated earlier, we have been and currently are building scalability and consider that we are well equipped to improve our margin levels and profitability whilst revenue is growing. Furthermore, there is a possibility to leverage our balance sheet. So as a summary, our long-term financial targets are supported by our growth strategy and strong balance sheet. Our long-term financial targets for the strategy period are: Operating profit from continuing earnings with a average growth rate of 12%; return on equity at fair value being over 15% on average; dividend payout ratio of at least 50% taking possible capital requirements in the account. We have a scalable business model and concrete action plan which together enable us to achieve our long-term financial targets. In addition, our strong balance sheet is dominated by investments and equity providing flexibility for optimal capital allocation. In a nutshell, we create value from increasing profitability from continuing earnings, boosted by net interest income and performance fees as well as our strong balance sheet. Thank you, and then Linda will intro Q&A session.

Thank you, Laurie. And thank you all of you who have been presenting today. Could you please join us here on the stage, and we'll conduct a Q&A session with all the presenters, not just the ones who are presenting in the second part of this session. [Operator Instructions] We have the questions from the floor as well. Sauli Vilen from Inderes, would you like to go ahead?

Yes. Sure. So Kai, you have been saying that the parallel funds that they are kind of an out of question, if I recall correctly, it's because your team is tied up on the flagship fund. Is something changed on this statement?

The flagship funds will forever, continue to be the flagship funds, i.e., the main growth strategy and the main strategy for us. However, there is now, given that we've reached the critical scale, also an opportunity to look at other things.

And -- so how confident are you that you can actually launch something during the strategy period?

That is naturally what -- we are committing to is we are committing to evaluating 1 to 2 alternatives in the strategy period. Naturally, if you find something that you are fundamentally convinced that you can have credibility with the right team, with the right deal flow and with the team having the track record that you can go and execute this strategy and then the investors will back you, then, of course, it becomes more flausible that this will happen.

[indiscernible] as an answer to your question as well, the most likely situation would be that it would be a separate team and carried out by the separate resources.

That's clear. Then about the real estate, just wondering why you decide to go with the residential focus since, I mean residential, it's kind of the most crowded play in the town, I guess, and it's kind of difficult to differentiate comparing what you have been done in history, basically, you have been kind of a niche player and doing fairly opportunistic funds here and there, so why the residential focus?

Well, first of all, I mean, we've got great track record and history, as you said, about the residential fund vintage series. So that's something we should not forget. Second, the market is actually -- is quite big in residential sector. I know it's crowded. There are plenty of players, but still, there's quite a much of room to be part of the game over there. Third, although we do have residential as our core or one of the core aspects, it doesn't exclude anything else from our playbook. So I want to highlight that, that is and will be on the core. But as a site, we are also exploring opportunities in other sectors.

What about the track record of the residential aid fund you have been deploying most of it, I guess, by now. So can you give us any insight like what kind of IRRs. Are you aiming there?

Well, not at the moment, I mean, we have now deployed the capital and now it's the value creation moment. And we will see at the end of the life cycle -- fund life cycle, what will be the IRRs. But in general, within the residential investments, we have categorized them as to be core plus products, which means that we are targeting something like [ 10-ish ] IRRs.

In the real estate still, how much capital are you expecting to return to investors during debt strategy period. Just trying to count how much actual net flows do you -- or gross sales do you need in order to achieve the EUR 1.4 billion?

So to be -- well, I mean, it depends obviously on the strategy and typically, well, as we know, real estate is quite capital-intensive. We need equity, we need debt. In roughly if we say 50% is in general level, the LTV levels. So 50% of debt and equity that would mean that we need something like EUR 300 million to EUR 400 million of equity -- new equity if that was your question.

Yes, just trying to figure out how much the gross volume would be. Yes. I hand over to Mikko for the next -- before my next questions.

All right. The next question comes from Joni Sandvall from Nordea.

Maybe on the bio side question on the bio premiums. You were bit speaking about this, but how these have actually developed now during past years? And what's your expectations, I mean, currently, customers are not so willing to pay these premiums. But how you see the long-term view there? Are the premiums here to stay on shrink level? Or should we see a rebound on these premiums when the economical situation improves?

It's really difficult to say whether the premiums are going to come back. But I'm sure that as the economy improves, sustainability as such is going to be an interesting topic, but you need to do sustainable business with similar business logics to any other business and find ways to do that. And then that would be preferred for other types of solutions. But whether the premium is going to come back, it is really difficult to estimate.

Maybe continuing on that further, obviously, it is also much related to how the regulatory environment will develop in the future. We have seen that during the last years, some backlash of regulatory environment. But obviously, there has been a lot of debate inside the European Union that kind of tightening regulation when it comes to CO2 and these sort of things are going to happen in the near future, but that remains to be seen. But that's one of the key drivers of that component.

And maybe a follow-up. You mentioned 6 investments done currently and roughly 50% of capital deployed, and now you were speaking about 1 to 2 more investments. So should we expect larger investments? Or are you leaving some cash for the -- for refunding or stuff like this.

Yes. We think -- because these are growth investments, we think it is really important to leave cash for the follow-on investments in the platform investments. And obviously, that's kind of the plan in the beginning to be able to grow the companies and that -- depending on the situation, cases may be different, but there should be left some money to be deployed for follow-on investments. That's also a kind of a learning that I have from private equity in general. So you should never invest the fund completely too early.

Then coming back a little bit follow-up on the real estate side. You are in harvesting, and I understand you answered partly Sauli's question, but -- then maybe a question on vehicles, but you are now planning to reach the EUR [ 1.4 million ]. So are you seeing similar vehicles that you are now conducting with Keva, so Eden Living? Are you expecting similar structures during the strategy period?

So basically, the question is about the structure and vehicles. Is it closed-end fund structure or separately managed account.

Yes, yes, exactly.

So as I said in my presentation, we will be flexible going forward in this structure, and I think that will be one of our advantages in the market.

Then last question from my side on the return on equity target. Does this include higher leverage? Because now as you said, there is no financial debt. So does it include some debt.

Well, there's a possibility to leverage our balance sheet in the future.

Great. Thank you. There's a question from Patrick Campbell from Nordea.

This is Patrick. Just a quick question on Garantia. Given that you're trying to grow and maybe you're looking to get more exposure on the corporate side, should we kind of expect the combined ratio to increase in the future?

I would like to state by saying that if you look at corporate lending in Finland, for example, or the Scandinavian countries, but especially in Finland, we are evidencing very low default rates if we go outside the SME sector, so the small -- outside the small companies, and that's something that we don't do. We only operate with medium-sized or large companies. So technically, of course, in corporate lending, you have higher level of risk. But then again, it depends on your underwriting discipline and your ability to underwrite the exposures that will not lead into the average default rate. And that's really what we aim to do.

Great. Thank you. And we have a question online for Kai. So you mentioned plans for SolarWind IV. So this is -- you're still only finalizing SolarWind III. So how come you're in the market?

We are not in the market, just to be clear, we are in the prep. So we are 55% invested on the money that we've raised for SolarWind III. And in terms of the way that, that's setup is that we have 60 projects in the fund. We will end up building approximately 10 to 12 of those -- the rest of it, we will either sell to the market or we will roll on to the SolarWind IV. And what we will need to do is we will need to set up SolarWind IV in the course of next year to then roll over the project so that we create room in SolarWind III in order to construct the final investments out of that fund. So that's very much driving the time lines, and that's also driving the preparations that we are doing at the moment. We will not start formal marketing of that fund until sometime next year.

Great. And then a question for Marjatta regarding bioindustry. So could the biocoal project in Canada, could that be a focus for the Bioindustry I fund.

It is a separate investment. It is a single-asset vehicle, which has its own investors. So I'm rather see it in that sense, a separate kind of path, not an investment from Fund I. The Fund I investments, we are looking more on to continue on those promises that we've done the 6 or maybe the latest investments there.

Great. Thank you. And then there's a question to maybe Ilkka can start and Marjatta can elaborate. But regarding sustainability. So sustainability was not mentioned in the strategy explicitly. So what's the role of sustainability going forward?

Well, it is a crucial part of Taaleri's operations also going forward. But it's really kind of embedded in our DNA. And what we mean by that is that we see sustainability as a business opportunity. So it's not a reporting framework, but we see a lot of existing business opportunities and also new business opportunities through sustainability and the goals that are related to that. So that's maybe one thing and then maybe Marjatta can continue from the bioindustry perspective?

Yes. We really see sustainability as an integrated part of our business. So it's not a separate issue. We look at sustainability when we are looking at new investments in the, for example, due diligence phase, we look at sustainability. When we are thinking about value creation of the companies. So it's really part of the business. It's not a separate issue. We have a person that is -- whose focus is in ESG, but not as a separate, but as part of all the normal processes that we are doing.

Great. Thank you. And then there's a question for Mikko. So you mentioned an AUM goal of EUR 1.4 billion. So what kind of products and investments are you going to need to achieve this.

So what I elaborated on our milestones, the growth will be facilitated through new vehicles, and those will be, as said, residential sector is in our core. So that is something where we are going to, hoping to increase our AUM in the future. And besides of that, it comes down that we are exploring opportunities in other real estate sectors also. So I mean there is no one route. There are multiple routes on that. On top of that, as a kind of enabler also is the M&A, which is in the toolbox, all the time.

Great. And there's a question from the floor from Sauli Vilen from Inderes.

Yes. Continuing on the real estate, you mentioned M&A several times. I'm having kind of a hard time to figure out what you could actually possibly buy. So you already like have a team, the distribution stuff is on the group side, so to speak. So I mean, can you give us any idea, help me out here, what you could possibly -- I mean what kind of things you could be looking for?

Yes, that's a good question in the sense that, that can be basically divided into 2. So it typically could go into a new geography or it could be actually in a new kind of acquiring sector expertise team, which is not residential, it could be something more. So I mean, that is the very simple answer and maybe I can also give your thoughts about that one. But that's a very simplification to make this in -- put it in 2 baskets. So new geographies or either new sectors?

Yes. But yes, I think you summarized it quite well. Those are the classic opportunities that you can see in the market.

What about your headcount for the whole private asset management? Let's say that you execute the current plans, energy doesn't need to build a new separate teams or anything like that. What happens to your headcount roughly flat?

Well, if we -- well, let's put it in kind of two separate answers. So while we are continuing -- increasing our flagship funds, the headcount should remain rather stable with the existing strategies. But obviously, when we are entering into new strategies or parallel strategies, those are most likely carried out and executed by a completely separate team. And then it obviously depends on the scale and the opportunity that we are kind of taking and are starting to capitalize. And the amount of that only kind of remains to be seen when we have something concrete in our hands.

Then just like out of curiosity, but on the bioindustry side, on the group level, you could say you kind of pivoted for the previous investment plans, you were planning to plus EUR 100 million direct investments on the sector. And now you kind of decided that not to go there because of the regulatory changes, market changes, et cetera. But at the same time, you are saying that investors should invest your new fund in the roughly same field. So is there like a mismatch here that group doesn't want to invest, but the investors should [indiscernible]?

Well actually, not so much, but because if you take a look at our existing investment portfolio as well, that is only also tilt towards the bioindustry investments. And what we were highlighting is that we are looking for opportunities in our existing investment portfolio as well. Then on the other hand, we are only saying that we are sector agnostic when it comes to the new investments. So it does not have to be bioindustry investment. It can be bioindustry investment, but we don't have a deployment target for the bioindustry investments for the future. So like I said, we see possibilities in there within the existing and with new investments as well, but we don't have any specific target for bioindustry investments.

Thank you. And there's a follow-up question from Joni Sandvall from Nordea.

Yes. This goes Kai, to you maybe regarding the U.S. market situation under the Trump administration currently, we have seen the impact, especially on the offshore wind side. So have you seen actually any changes or impact on investor perception of the situation? Or maybe even is there a risk for higher risks on the market because of this kind of, let's say, negative regulatory effects.

So clearly, we're not in offshore, but in offshore, it's pretty bad. Then if you take battery storage, PV solar and wind, the sectors where we are in, then the support system for battery is unaffected. The only thing you need to consider, it's the tariffs. And actually, the support system is so generous that you can buy U.S. manufactured stuff. So you're good there. Then in terms of onshore wind and PV solar, so actually, what is changing is the qualification rules. So provided that you start construction on enough capacity on wind and solar projects before July 14, when the One Big Beautiful Bill was signed into an act, then you qualify. And then you have 4 years to finish your project, which takes you to the next President. So therefore, there is a way through the system, but the uncertainty in terms of how everything is going to be playing out is there, and that is naturally impacting on investment appetite.

Great. Thank you. And we have a question on M&A for Ilkka. So could you get back to traditional asset management through M&A if the right opportunity arises?

Well, that is highly unlikely. And one of the, let's say, main rationale behind that is the regulatory environment, which is really unfavorable for us to go towards that direction.

Great. Thank you. And then this is also for Ilkka. So do you have an internal view of Taaleri's true value that you use as a benchmark when considering acquisitions? And why do you see it as better for shareholders to continue as one group rather than splitting into separate companies?

Well, I think there's 2 questions. So first of all, we don't have any specific kind of the benchmark value when we -- how we value our company, and it's maybe not a management job to kind of let the market decide on that. And when it comes to these 3 kind of different businesses that I think we highlighted in our presentation that we have clear synergies between these different businesses, which are quite evident at the moment. And if you take a look at a bit more global perspective outside Finland. It is actually more and more common theme that the global big private equity companies like KKR or Apollo or these global giants, they are also entering into insurance businesses, be it life or even non-life type of insurance. And in addition to that, they are actually investing even though that they have buyout funds. They have also typically started to invest in a separate investments, whatever they want to call it. But the point is that they kind of like the perpetual capital type of businesses, be it then invested in a separate entities or be it then an insurance company, which provides them a float during difficult fundraising environment that we have seen during the last 2 years. So in that sense, we are actually not alone with this kind of strategy, even though that in Finland, there's no -- not the kind of similar type of company that ours. And as explained during our presentation, our goal and target is to capitalize the synergies between these 3 entities going forward and the growth in all those 3 businesses and capitalize those that the benefits of those.

Great. Thank you. And let's wrap up with one final question. So do you see nuclear power as a possible investment area since you are in both in power in other areas as well.

I don't know who wants to answer on that one.

Yes, I think we can probably start with Kai and then Ilkka can continue.

Indeed, the risk return profile is not quite suitable for our funds.

And on a PLC level, we haven't discussed on that opportunity.

Great. Thank you. Unless there are further questions from the floor, then this concludes the Q&A portion of this Capital Markets Day. Now Ilkka will present some concluding remarks.

Thank you, Linda. So you have heard today, our management team members representing their plans, how we are executing our plans, which we have stated on this slide. So like I explained many times, during the day, we see growth opportunities and concrete growth opportunities in all our 3 synergistic businesses. And we have concrete plans, and we have a strong belief that we are able to execute it, and we are actually quite excited about the opportunities that we have been able to identify. So I would like to conclude my part of today's presentation with the final words that how and why we think that Taaleri might be a good investment going forward. So as explained, Taaleri's business is strongly backed by these strong global megatrends. Private market penetration increasing continuously in the market, and there is a continuous kind of increasing emphasizing decreased green transition, urbanization and circular economy. And when taking a look at our businesses, we have this stable cash flow provider, Garantia, generating stable income and balancing the overall risk in a different kind of economic cycles, be it then difficulties in difficult fundraising environment or when investing in growth in other parts of the group. Thirdly, we have a strong, proven track record in scaling investment platform in these transformational opportunities, which we went through during our presentation. And we have been able to capitalize a lots of those opportunities during the last few years. And we have strong execution power in making investments with the additional earnings opportunities, which Taaleri has been able to prove during its journey so far. So like already said, we see that we have multiple avenues for growth in all these 3 segments. We have new competencies in place. We have a new management structure who has already started to work with the execution, and we strongly believe that we have been able to increase the execution power and how we are able to implement the strategy for the next strategy period. So with that, I would like to conclude my part of the day and the final words to close the day will be carried out by Linda.

Great. Thank you, Ilkka. And thank you all, ladies and gentlemen. This concludes the Taaleri's Capital Markets Day. And I would like to, on behalf of the entire team, thank you for your time, your great questions and also for your interest in Taaleri. We look forward to staying in touch and to continue on updating on our progress in the months ahead. Thank you, and have a great evening.

Thank you.