Taaleri (TAALA) investor relations material

Executive summary

• Garantia's insurance portfolio and utilization rates, especially in residential mortgage guarantees, grew over 20% year-over-year, with a 24% increase in utilization rate and strong international expansion in non-payment insurance contracts.

• Net income from investment operations was robust, mainly due to strong equity market performance, while the investment segment saw negative revenue and operating profit from fair value changes, notably in the Texas wind farm investment.

• Private Asset Management progressed as planned, focusing on active fund management, value creation, asset exits, and new investments in renewables, real estate, bioindustry, and the consolidation of Nordic Science Investments.

• Significant follow-on investments were made in Fintoil and Ren-Gas, with a €30 million commitment to Fintoil after the review period, supporting strategic capital allocation.

• Acquisition of a 51% stake in Nordic Science Investments marks entry into early-stage science-based venture capital, expanding the group's growth initiatives.

Financial highlights

• Revenue grew 3.9% year-over-year to EUR 65.6 million; Q2 2026 revenue was EUR 13.2 million, and H1 2026 revenue rose 20.2% to EUR 25.8 million.

• Operating profit declined 4.9% to EUR 27.6 million LTM, but H1 2026 operating profit rose 33.2% to EUR 6.6 million; Q2 operating profit was EUR 4.4 million.

• Garantia's insurance service result increased 26.5% to EUR 3 million; net income from investment operations reached EUR 8.6 million.

• Combined ratio in Garantia was 36.7%, with premiums received up nearly 20% LTM; H1 2026 combined ratio improved to 29.1%.

• Investments at fair value were EUR 236.1 million at period end; group equity ratio remained strong at 70.6%.

Outlook and guidance

• No changes to 2026 outlook: renewable energy earnings expected to decline due to lower management fees and planned fund exits; operating profit will depend on performance fees and exit timings.

• Private Asset Management operating profit expected to remain negative in 2026 as growth investments continue.

• Garantia insurance revenue projected to grow in 2026, with stable profitability; investment returns depend on market conditions.

• Investment segment results will remain highly sensitive to market and fair value changes.

• Long-term targets include 12% average annual growth in operating profit from continuing earnings, ROE above 15%, and at least 50% dividend payout.