Q2 2026 Taaleri Oyj Earnings Call

August 12, 2026

Speaker #1: Good morning, everyone, and welcome to Taaleri's half-year report webcast. My name is Linda Tiedola, and I'm heading investor relations here at Taaleri. Thank you for joining us, both of you, who are joining us online, and you who are here in person.

Linda Tierala: Good morning everyone, and welcome to Taaleri's half year report webcast. My name is Linda Tierala, and I am heading investor relations here at Taaleri. Thank you for joining us, both of you who are joining us online and you who are here in person. Presenting today's results, we have Ilkka Laurila, our CEO, who will provide the highlights for the second quarter, and Lauri Lipsanen, our CFO, who will review the key financial developments over the quarter. In addition, we have Ari-Pekka Määttänen, who is CEO of Fintoil, who will present Fintoil's business and strategic outlook. Following the presentations, we will have a Q&A, and that session will be in two parts. We will begin with questions related to Fintoil and its operations, with Ari-Pekka available to answer those.

Linda Tierala: Good morning everyone, and welcome to Taaleri's Half-Year Report Webcast. My name is Linda Tierala, and I am heading investor relations here at Taaleri. Thank you for joining us, both of you who are joining us online and you who are here in person. Presenting today's results, we have Ilkka Laurila, our CEO, who will provide the highlights for the second quarter, and Lauri Lipsanen, our CFO, who will review the key financial developments over the quarter.

Speaker #1: Presenting today's results, we have Ilkka Laurila, our CEO, who will provide the highlights for the second quarter, and Lauri Lipsanen, our CFO, who will review the key financial developments over the quarter.

Speaker #1: And in addition, we have Ari-Pekka Määttänen, who is CEO of Fintoil, who will present Fintoil's business and strategic outlook. Following the presentations, we will have a Q&A, and that session will be in two parts.

Linda Tierala: In addition, we have Ari-Pekka Määttänen, who is CEO of Fintoil, who will present Fintoil's business and strategic outlook. Following the presentations, we will have a Q&A, and that session will be in two parts. We will begin with questions related to Fintoil and its operations, with Ari-Pekka available to answer those.

Speaker #1: We will begin with questions related to Fintoil and its operations, with Ari-Pekka available to answer those. After that, we will move forward with questions related to Taaleri's Q2 financials and performance, and Ilkka and Lauri will address those questions.

Linda Tierala: After that, we will move forward with questions related to Taaleri's Q2 financials and performance, and Ilkka and Lauri will address those questions. For those of you joining remotely, you may ask questions through the webcast platform, and you can do so at any time. Those of you joining here live may ask questions through the microphone. With that, I am happy to hand over to Ilkka.

Speaker #1: And for those of you joining remotely, you may ask questions through the webcast platform, and you can do so at any time. Those of you joining here live may ask questions through the microphone.

Speaker #1: And with that, I'm happy to hand over to Ilkka.

Speaker #2: Good morning on my behalf as well, and, as usual, it's time to go over the latest operational and financial developments. This time, it's the development for the first half of 2026.

Ilkka Laurila: Good morning on my behalf as well. Like usual, it is time to go through the latest operational and financial development. This time it is the development of the H1 of 2026. Starting with the highlights. First of all, growth in Garantia's insurance portfolio as well as in markets have continued versus the year ago. Utilization rate, especially in the residential mortgage guarantees, increased by more than 20% compared to year ago period. We were also able to launch new international non-payment insurance, and been able to underwrite several new contracts in that area. So internationalization also continues in Garantia's business. Next, the net income from the investment operations was strong. So the Garantia's investment returns were extremely strong, obviously mainly supported by the good development in the equity market.

Speaker #2: Starting with the highlights: First of all, growth in the guarantee and insurance portfolio, as well as in market share, continued versus a year ago. The utilization rate, especially in the rental residential mortgage guarantees, increased by more than 20% compared to a year ago.

Speaker #2: We were also able to launch new international non-payment insurance and have been able to underwrite several new contracts in that area. So internationalization also continues in guarantee as a business.

Ilkka Laurila: We were also able to launch new international non-payment insurance, and been able to underwrite several new contracts in that area. So internationalization also continues in Garantia's business. Next, the net income from the investment operations was strong. So the Garantia's investment returns were extremely strong, obviously mainly supported by the good development in the equity market.

Speaker #2: Next, the net income from the investment operations was strong. So the guarantees as investment returns were extremely strong, obviously mainly supported by the good development in the equity market.

Speaker #2: Then, on the other hand, revenue and operating profit in the investment segment were negative due to certain fair value changes, which we will also cover during the presentation.

Ilkka Laurila: Then on the other hand, revenue and operating profit in investment segment was negative due to certain fair value changes, which we will also cover during the presentation. In private asset management, the operations proceeded according to the plan. So in renewable business team and business focused on the active management of the funds, new investments, and so on. Then on the other hand, we continued and progressed with the exit processes during the review period. In real estate, Eden Living completed several new investments. Completion of the Nordic Science Investments also happened during the second quarter. That was obviously published during the time, and it has been consolidated now in the numbers since May. Further preparation for the fundraising for SolarWind IV were initiated, and as the investment activities concerning SolarWind III, so the previous vintages has continued as planned earlier.

Speaker #2: In private asset management, the operations proceeded according to the plan. In the renewable business, the team and business focused on the active management of the funds, new investments, and so on.

Speaker #2: Then, on the other hand, we continued and progressed with the exit processes during the review period. And in real estate, they didn't, in fact, complete several new investments.

Ilkka Laurila: In real estate, Eden Living completed several new investments. Completion of the Nordic Science Investments also happened during the second quarter. That was obviously published during the time, and it has been consolidated now in the numbers since May. Further preparation for the fundraising for SolarWind IV were initiated, and as the investment activities concerning SolarWind III, so the previous vintages has continued as planned earlier.

Speaker #2: Completion of the Nordic Science Investments also happened during the second quarter. That was obviously published during the time, and it has now been consolidated in the numbers since May.

Speaker #2: Further, preparation for the fundraising for SolarWind 4 were initiated, and, as with the investment activities concerning SolarWind 3, so the previous vintages, these have continued as planned earlier.

Speaker #2: Finally, we published during July that we have made a significant follow-on investment in Fintoil and participated in the financing round on that. And that's one of the indications that we will continue our active allocation of capital within our balance sheet.

Ilkka Laurila: Finally, we published during July that we have made a significant follow-on investment in Fintoil and participated in the financing round on that. That is one of the indications that we will continue our active allocation of capital within our balance sheet. If you then compare these activities towards our strategic priorities for this year, starting with Garantia's growth potential, first of all, like I said, growth in the utilization rate of the residential mortgage guarantee is quite evident. That has continued on a strong level and continue to improve growth in insurance service result is evident from the numbers. Like I said, we have been able to underwrite several new contracts on the international non-payment insurance market.

Speaker #2: So, if we then kind of compare these activities to our strategic priorities for this year, starting with the guarantee as growth potential, first of all, like I said, growth in the utilization rate of the residential mortgage guarantee is quite evident. That has continued at a strong level and continued to improve.

Ilkka Laurila: That has continued on a strong level and continue to improve growth in insurance service result is evident from the numbers. Like I said, we have been able to underwrite several new contracts on the international non-payment insurance market.

Speaker #2: Growth in the insurance service result is evident from the numbers, and like I said, we are happy to be able to underwrite several new contracts on the international non-payment insurance market.

Speaker #2: In private asset management, completion of the Nordic Science Investments happened during the quarter, and we also published that we are launching a private credit strategy later this year and next year. Further milestones on that will be published later in the autumn.

Ilkka Laurila: In the private asset management, completion of the Nordic Science Investments happened during the quarter, and we have also published that we are launching private credit strategy later in this year and next year. Further milestones on that we will publish later in the autumn. On the direct investments and development capital, like mentioned, the follow-on investment in Fintoil was quite significant, although happened after the review period during the July. We also published that we will have a smaller follow-on investment on the RenGas, the kind of investment which was published at the end of last year. Then a couple of words of the Nordic Science Investments in a nutshell. We acquired 51% of the management company. Nordic Science Investments is a Nordic venture capital manager focusing on early-stage investments in science-based technologies, mostly in university spin-outs.

Speaker #2: And then on the direct investments and development capital, like mentioned, the follow-on investment in Fintoil was quite significant, although it happened after the review period during July. We also published that we will have a smaller follow-on investment in RenGas, the kind of investment which was published at the end of last year.

Ilkka Laurila: We also published that we will have a smaller follow-on investment on the RenGas, the kind of investment which was published at the end of last year. Then a couple of words of the Nordic Science Investments in a nutshell. We acquired 51% of the management company. Nordic Science Investments is a Nordic venture capital manager focusing on early-stage investments in science-based technologies, mostly in university spin-outs.

Speaker #2: Then a couple of words of the Nordic Science Investments. In a nutshell, so we are quite 51% of the management company, it is the Nordic Science Investment is a Nordic venture capital manager, focusing on early stage investments in science-based technologies, mostly in university spin-outs.

Speaker #2: The strategy, obviously, is to scale the fund management operations later with larger, much more significant fund sizes. The company itself was founded in 2022, launched its first fund in 2024 with €45 million, and has made more than 20 investments so far, with the six partners who will remain in operational roles.

Ilkka Laurila: The strategy, obviously, is to scale the fund management operations later with the larger, much more significant fund sizes. Company itself was founded in 2022, launched first fund in 2024 with EUR 45 million, and has made more than 20 investments so far with the six partners who will remain in the operational roles. Following then, a couple of words on the expansion on the Nordic Private Credit. We published that we are launching new strategy in private credit, which will primarily focus on direct lending to small and mid-size companies in Nordic countries and other neighboring markets. We obviously see quite significant synergies when it comes to fundraising, the fund management operations. On the other hand, also we have excellent expertise, long track record in credit risk assessment through Garantia, which we also believe that we are able to, from the competence perspective, leverage in private credit operations.

Speaker #2: Following then, a couple of words on the expansion of the Nordic private credit. We published that we are launching a new strategy in private credit, which will primarily focus on direct lending to small and mid-size companies in Nordic countries and other neighboring markets.

Ilkka Laurila: We published that we are launching new strategy in private credit, which will primarily focus on direct lending to small and mid-size companies in Nordic countries and other neighboring markets. We obviously see quite significant synergies when it comes to fundraising, the fund management operations. On the other hand, also we have excellent expertise, long track record in credit risk assessment through Garantia, which we also believe that we are able to, from the competence perspective, leverage in private credit operations.

Speaker #2: We obviously see quite significant synergies when it comes to fundraising and fund management operations. On the other hand, we also have excellent expertise and a long track record in credit risk assessment through guarantee, which we believe we are able to leverage from a competence perspective in private credit operations.

Speaker #2: As we all know, Nordic countries are traditionally quite bank-dominated market. Then on the other hand, there is a kind of the private equity investors operating in the market, and we believe that this sort of financing when it's also kind of the regulation market is tightening, so working in cooperation with the private equity and then on the other hand with the banks and other financing institutions, there is a clear demand for these kind of funding opportunities and financing opportunities in the Nordic and the neighboring markets.

Ilkka Laurila: As we all know, Nordic countries are traditionally quite bank-dominated market. On the other hand, there is the private equity investors operating in the market. We believe that this sort of financing, when it is also kind of the regulation market is tightening, working in cooperation with the private equity and on the other hand, with the banks and other financing institutions, there is a clear demand for these kind of funding opportunities and financing opportunities in the Nordic and the neighboring markets. Next milestones with regards to private credit strategy will be announced later this year. On the numbers, key figures. I will focus on the lower side of the slide, so the longer-term numbers. Starting with the revenue, growth in revenue was at 3.9% from the previous 12-month period, so EUR 65.6 million, out of which continuing earnings increased 6.5% to 42.6%.

Speaker #2: Next milestones, with regards to private credit strategy, will be announced later this year. Then on the numbers, key figures I will focus on the lower side of the slide.

Ilkka Laurila: Next milestones with regards to private credit strategy will be announced later this year. On the numbers, key figures. I will focus on the lower side of the slide, so the longer-term numbers. Starting with the revenue, growth in revenue was at 3.9% from the previous 12-month period, so EUR 65.6 million, out of which continuing earnings increased 6.5% to 42.6%.

Speaker #2: So, the longer-term numbers—if we start with the revenue, growth in revenue was at 3.9% from the previous 12-month period, so €65.6 million, out of which continuing earnings increased 6.5%.

Speaker #2: To 42.6%. Then, on the other hand, operating profit—as we all know, in our case especially the operating profit, but also total revenue—will fluctuate on a quarterly basis quite significantly.

Ilkka Laurila: Then, on the other hand, operating profit, as we all know, in our case, especially the operating profit, but also total revenue will fluctuate on a quarterly basis quite significantly. Operating profit declined a bit, 4.9% from the previous 12-month period down to 27.6%. But still out of that operating profit from continuing earnings increased 12.6% from the previous 12-month period. Then covering different business segments, starting with Garantia, and starting with the numbers on the right-hand side. Insurance service result was at EUR 3 million, up from 3.4, so 26.5% increase. Total net income from the investment operations amounted EUR 8.6 million, and the split between the P&L and other comprehensive income you can see on the right-hand side. Claim expense ratio remained on a low level. Risk position, meaning solvency ratio, is still stable and improving.

Speaker #2: Operating profit declined a bit, 4.9% from the previous 12-month period, down to 27.6%. However, despite that, operating profit from continuing earnings increased 12.6% from the previous 12-month period.

Speaker #2: Then covering different business segments, starting with Guarantee. Starting with the numbers on the right-hand side: insurance service result was €3 million, up from €2.4 million, so a 26.5% increase.

Ilkka Laurila: Insurance service result was at EUR 3 million, up from 3.4, so 26.5% increase. Total net income from the investment operations amounted EUR 8.6 million, and the split between the P&L and other comprehensive income you can see on the right-hand side. Claim expense ratio remained on a low level. Risk position, meaning solvency ratio, is still stable and improving.

Speaker #2: Total net income from the investment operations amounted to €8.6 million, and the split between the P&L and other comprehensive income you can see on the right-hand side.

Speaker #2: So, claim expense ratio remained at a low level, risk position—meaning solvency ratio—is still stable and improving, and that obviously resulted in very strong profitability, as the combined ratio was 36.7%. Sorry, 36.7%.

Ilkka Laurila: And that obviously resulted very strong profitability as the combined ratio was 36.7%. We also saw, like discussed, increased activity in North European non-payment insurance workers and successfully were able to underwrite some of new contracts in that area. Finally, the premiums received. Even though that is obviously in our case highly linked to residential mortgage guarantees, and even though that we all know that the residential transaction market in Finland has been quite slow, and the volumes have been declining. Even in that sort of market, the growth in premiums that we have been able to receive has increased on an LTM basis almost 20%, which is a good proxy also concerning the cash flow of the operation. It is a very good development in that area as well.

Speaker #2: And we also saw, like discussed, increased activity in North European non-payment insurance markets and were successfully able to underwrite some new contracts in that area.

Speaker #2: Finally, the premiums received—even though that is obviously in our case highly linked to residential mortgage guarantees, and even though we all know that the residential transaction market in Finland has been quite slow and the volumes have been declining—even in that sort of market, the growth in premiums that we have been able to receive has increased on an LTM basis by almost 20%, which is a good proxy also concerning the cash flow of the operations.

Ilkka Laurila: Finally, the premiums received. Even though that is obviously in our case highly linked to residential mortgage guarantees, and even though that we all know that the residential transaction market in Finland has been quite slow, and the volumes have been declining. Even in that sort of market, the growth in premiums that we have been able to receive has increased on an LTM basis almost 20%, which is a good proxy also concerning the cash flow of the operation. It is a very good development in that area as well.

Speaker #2: So, very good development in that area as well. No major movement in the guarantees insurance portfolio split, still amounting to approximately €1.8 billion when rounded at that level.

Ilkka Laurila: No major movement in Garantia's insurance portfolio split, still amounting that EUR 1.8 billion when rounded on that level, and the investment portfolio, EUR 169 million. No major movements in that either. Moving forward to private asset management, and starting with the renewable energy. The accounting earnings there declined a bit due to the fact that in a comparison period, there were those SolarWind III-related retroactivity fees, which were recognized during the comparison period. From the operational perspective, funds management continued and investing activities continued on an active level. SolarWind III Fund investment in Hallanvahti, which is the largest solar power plant in Finland, was completed during the quarter and commenced its operations. Then, on the other hand, we made a write-down with regards to one fund, and that is related to certain market environment development in certain countries outside Finland.

Speaker #2: And the investment portfolio 169 million euros in no major movements in that either. Moving forward to private asset management. And starting with the renewable energy, the continuing earnings there declined a bit due to the fact that in a comparison period there were those solar wind tree related retroactive fees, which were recognized during the comparison period.

Speaker #2: From the operational perspective, funds management and investing activities continued at an active level. The SolarWind Tree fund's investment in Hallonlahti, which is the largest solar power plant in Finland, was completed during the quarter and commenced its operations.

Ilkka Laurila: From the operational perspective, funds management continued and investing activities continued on an active level. SolarWind III Fund investment in Hallanvahti, which is the largest solar power plant in Finland, was completed during the quarter and commenced its operations. Then, on the other hand, we made a write-down with regards to one fund, and that is related to certain market environment development in certain countries outside Finland.

Speaker #2: Then, on the other hand, we made a write-down with regards to one fund, and that is related to certain market environment developments in certain countries outside Finland.

Speaker #2: Exit processes continued to be quite active, and we still expect to be able to see some of the closings of those transactions during this year.

Ilkka Laurila: Exit processes continued quite active, and we still expect to be able to see some of the closings of those transactions during this year. Other private asset management business, NSI, is now consolidated on the numbers since May. Bioindustry continued its activities within the portfolio companies, participated in some of the follow-on investments in financing rounds. So good development in some of the portfolio companies. In real estate, despite the, let us say, quite slow market, the occupancy rates have remained on a high level, and Eden Living, our JV with the Keva Pension Insurance Company, acquired three additional assets during the Q2. In venture capital business, Nordic Science Investments continued its investment activities, made new investments, and participated in additional follow-on financing rounds. No major movements in the numbers in other private asset management business. Then finally, the investment segment.

Speaker #2: Other private asset management business, NSI, is now consolidated in the numbers since May. Bioindustry continued its activities within the portfolio companies and participated in some of the follow-on investments, in financing rounds, or in good development in some of the portfolio companies.

Speaker #2: In real estate, despite the quite slow market, the occupancy rates have remained at a high level. And Eden Living, our joint venture with the KEVA pension insurance company, acquired three additional assets during the second quarter.

Ilkka Laurila: In real estate, despite the, let us say, quite slow market, the occupancy rates have remained on a high level, and Eden Living, our JV with the Keva Pension Insurance Company, acquired three additional assets during the Q2. In venture capital business, Nordic Science Investments continued its investment activities, made new investments, and participated in additional follow-on financing rounds. No major movements in the numbers in other private asset management business. Then finally, the investment segment.

Speaker #2: In the venture capital business, Nordic Science Investments continued its investment activities. Made new investments and participated in additional follow-on financing rounds. No major movements in the numbers.

Speaker #2: In other private asset management business. Then finally, the investment segment. Obviously, numbers are dominated by the fair value changes. Therefore, the revenue is now negative and operating profit is negative.

Ilkka Laurila: Obviously, numbers are dominated by the fair value changes, so therefore, the revenue is now negative and operating profit is negative, and that is clearly driven by the fair value changes in Truscott, Gilliland East Wind, which will, like said earlier, fluctuate on a quarterly basis depending on how the NAV is developing in the fund that has made the investment in Texas. Obviously, a key driver there, not the only one, but one of the key drivers obviously there is the electricity price development and the forecast development on that in Texas. Like I said, we made that during the review period, we agreed that EUR 30 million follow-on investment in Fintoil, which we expect to be completed during Q3 this year.

Speaker #2: And that is clearly driven by the fair value changes in Trusco, Chile, and Eastwind, which will, like I said earlier, fluctuate on a quarterly basis depending on how the NAV is developing in the fund that has made the investment in Texas. And obviously, the key driver—though not the only one, but one of the key drivers—obviously is the electricity price development and the forecast development on that in Texas.

Speaker #2: And like I said, we made that during the review period. We agreed to a €30 million follow-on investment in Fintoil, which we kind of expect to be completed during the third quarter this year.

Ilkka Laurila: Like I said, we made that during the review period, we agreed that EUR 30 million follow-on investment in Fintoil, which we expect to be completed during Q3 this year. Finally, we also published follow-on investments for the earlier investments that we made in 2025 to RenGas, as it was able to enter in the long-term offtake agreement with avanca Energy, which is a significant step towards the final investment decision concerning the RenGas production facility in Tampere.

Speaker #2: Finally, we also published follow-on investments for the earlier investments that we made in '25 to Renkas, as it was able to enter into a long-term off-take agreement with Avanza Energy, which is a significant step towards the final investment decision concerning the Renkas production facility in Tampere.

Ilkka Laurila: Finally, we also published follow-on investments for the earlier investments that we made in 2025 to RenGas, as it was able to enter in the long-term offtake agreement with avanca Energy, which is a significant step towards the final investment decision concerning the RenGas production facility in Tampere. The kind of the process obviously is such that first you need to have all the planning ready, and you need to have a committed offtake agreement, then you are able to collect the financing for the investments, and then you are able to do the final investment decision. This is an important milestone for that company. No major changes in the total amount of the investments and fair values on that. As a reminder, obviously, the Fintoil investments can only be seen after completion of the investment.

Speaker #2: So the city kind of the process obviously is such that the first you need to kind of have all the kind of the planning ready and you need to have a committed off-take agreement.

Ilkka Laurila: The kind of the process obviously is such that first you need to have all the planning ready, and you need to have a committed offtake agreement, then you are able to collect the financing for the investments, and then you are able to do the final investment decision. This is an important milestone for that company. No major changes in the total amount of the investments and fair values on that. As a reminder, obviously, the Fintoil investments can only be seen after completion of the investment.

Speaker #2: Then you are able to collect the financing for the investments, and then you are able to proceed to the final investment decision. So, this is an important milestone for that company.

Speaker #2: There are no major changes in the total amount of the investments or their fair values. As a reminder, the Fintoil investment will only be visible after completion of the investment.

Ilkka Laurila: Out of the development capital investments, we already have covered most of those, but maybe worth mentioning is that at Turun Toriparkki, volumes have continued to increase during 2026, and that obviously is highly correlated in that business with the EBITDA, and therefore, EBITDA has also grown and improving and developing positively during 2026. In Oribalt, online pharmacy sales continued strong growth during the beginning of 2026 and that is also developing positively, and we can see clear positive development in that company as well. Moving forward with the presentation, I will invite Lauri Lipsanen, our CFO, to cover result and balance sheet development.

Speaker #2: Out of the development capital investments, we already have covered most of those, but maybe worth mentioning is that Intori Parkki volumes have continued to increase during Q2 '26.

Speaker #2: And that, obviously, is highly correlated in that business with the EBITDA, and therefore EBITDA has also grown and improved, developing positively during 2026.

Speaker #2: In Oribalt, online pharmacy sales continued a strong growth during the beginning of '26, and that is also developing positively. We can see clear positive development in that company as well.

Ilkka Laurila: In Oribalt, online pharmacy sales continued strong growth during the beginning of 2026 and that is also developing positively, and we can see clear positive development in that company as well. Moving forward with the presentation, I will invite Lauri Lipsanen, our CFO, to cover result and balance sheet development.

Speaker #2: So, moving forward with the presentation, I will invite Lauri Lipsanen, our CFO, to cover results and balance sheet development.

Speaker #1: Thank you, Ilkka. Hi, my name is Lauri Lipsanen, Taaleri Group CFO, and today I will present the Q2 and H1 interim financials to you. In the second quarter of this year, revenue was €13.2 million and operating profit was €4.4 million, as stated by Ilkka.

Lauri Lipsanen: Thank you, Ilkka. Hi, my name is Lauri Lipsanen, Taaleri Group CFO, and today I present Q2 and H1 interim financials to you. In Q2 of this year, revenue was EUR 13.2 million and operating profit EUR 4.4 million, as stated by Ilkka. Continuing earnings not related to Garantia were EUR 7.5 million, which fell behind the comparison period, which was positively impacted by the retroactive management fee of EUR 1.6 million, which in turn means that the underlying growth continued. Performance fees were -EUR 1.7 million, driven by the earlier mentioned write-down. No other major changes were recognized in terms of performance fees. Garantia's operative performance was strong, and net results from insurance grew by over 25%. Net income from investment operations were driven by Garantia's strong net investment income, mostly driven by strong equity or stock market-related gains.

Speaker #1: Continuing earnings not related to Karantia were €7.5 million, but fell behind the comparison period, which was positively impacted by the retrospective management fee of €1.6 million.

Speaker #1: Which, in turn, means that the underlying growth continued. Performance fees were minus €1.7 million, driven by the earlier-mentioned write-down. No other major changes were recognized in terms of performance fees.

Lauri Lipsanen: Performance fees were -EUR 1.7 million, driven by the earlier mentioned write-down. No other major changes were recognized in terms of performance fees. Garantia's operative performance was strong, and net results from insurance grew by over 25%. Net income from investment operations were driven by Garantia's strong net investment income, mostly driven by strong equity or stock market-related gains.

Speaker #1: Karantia's operative performance was strong, and its result from insurance grew by over 25%. Net income from investment operations was driven by Karantia's strong net investment income, mostly driven by strong equity or stock market-related gains.

Speaker #1: When comparing first-half operating profit to the previous year, operating profit improved by €1.6 million. First of all, continuing earnings increased by 2.2%, driven by Karantia.

Lauri Lipsanen: When comparing H1 operating profit to the previous year, operating profit improved by EUR 1.6 million. First of all, continuing earnings increased by 3.2%, driven by Garantia. Mainly due to, as stated, comparison period was positively impacted by the retroactive management fees. Secondly, the performance fee-related write-down of EUR 1.7 million was buried in the result. Thirdly, net income from investment operations improved materially from EUR 0.4 million to EUR 4.8 million, driven by the strong net investment income from Garantia's portfolio. Net income from investment result was partially offset by negative fair value changes in investment segment, mainly driven by wind park investment in Texas, of which fair value declined by EUR 2 million through the H1 of this year. This was also adversely impacted by the Joensuu Biocoal related write-down of EUR 0.9 million in Q1 this year.

Speaker #1: Mainly due to, as stated, the comparison period was positively impacted by the retrospective management fees. Secondly, the performance fee-related write-down of €1.7 million was burdening the result.

Speaker #1: Thirdly, net income from investment operations improved materially from €0.4 million to €4.8 million, driven by the strong net investment income from Karantia's portfolio.

Lauri Lipsanen: Thirdly, net income from investment operations improved materially from EUR 0.4 million to EUR 4.8 million, driven by the strong net investment income from Garantia's portfolio. Net income from investment result was partially offset by negative fair value changes in investment segment, mainly driven by wind park investment in Texas, of which fair value declined by EUR 2 million through the H1 of this year. This was also adversely impacted by the Joensuu Biocoal related write-down of EUR 0.9 million in Q1 this year.

Speaker #1: Net income from investment result was partially offset by negative fair value changes in the investment segment, mainly driven by the wind farm investment in Texas, of which fair value declined by €2 million through the first half of this year.

Speaker #1: And this was also adversely impacted by the Joensuu Pajakolla related write down of 0.9 million euros in Q1 this year. In addition, net expenses increased by 1.5 million euros mainly because the fact that Pajakolla investment related write downs were 0.8 million euros impacting Q1 cost base.

Lauri Lipsanen: In addition, net expenses increased by EUR 1.5 million, mainly because the fact that Joensuu Biocoal investment related write-downs were EUR 0.8 million, impacting Q1 cost base. Acquisition of Nordic Science Investments and related consolidation effect impacted cost base by EUR 0.3 million, and in addition, in order to execute our strategy, we have expanded our sales team. As visible on the left-hand chart, quarterly continuing earnings have been fairly stable, but the total revenue has been fluctuating. This has been mostly driven by fluctuation in net investment income, but in Q1 also by changes in performance fees. The similar revenue fluctuation is visible in terms of operating profits on the right-hand side chart. When we are looking at the last 12-month basis figures, the composition of revenue is more balanced. Continuing earnings have been growing by 6.5%, whereas other than continuing earnings have been fluctuating on an LTM basis.

Speaker #1: Acquisition of Nordic Size Investment and the related consolidation effect impacted the cost base by €0.3 million. In addition, in order to execute our strategy, we have expanded our sales team.

Speaker #1: As visible on the left-hand chart, quarterly continuing earnings have been fairly stable, but the total revenue has been fluctuating. This has been mostly driven by fluctuation in net investment income, but in Q1 also by changes in performance fees.

Lauri Lipsanen: This has been mostly driven by fluctuation in net investment income, but in Q1 also by changes in performance fees. The similar revenue fluctuation is visible in terms of operating profits on the right-hand side chart. When we are looking at the last 12-month basis figures, the composition of revenue is more balanced. Continuing earnings have been growing by 6.5%, whereas other than continuing earnings have been fluctuating on an LTM basis.

Speaker #1: And a similar revenue fluctuation is visible in terms of operating profit on the right-hand side chart. When we're looking at the last 12 months' figures, the composition of revenue is more balanced.

Speaker #1: Continuing earnings have been growing by 6.5%, whereas earnings other than continuing have been fluctuating on an LTM basis. For instance, the Q2 and Q3 2025 LTM figures here are positively impacted by the renewable energy development portfolio gains and performance fees recognized for the last quarter of 2024.

Lauri Lipsanen: For instance, Q2 and Q3 2025 LTM figures here are positively impacted by the renewable energy development portfolio gains and performance fees recognized for the last quarter of 2024. However, most of this recognized performance fee was written down in Q2 2026. This impact was, on the other hand, offset by the previously mentioned strong Garantia's net investment income. It should be emphasized that the operating profit from continuing earnings have been developing positively trend-wise, as visible on the right hand. A couple of words regarding Garantia. As already discussed by Ilkka, despite the weak development of the Finnish housing market has continued, Garantia's insurance revenue has increased by almost 5% on a last 12-month basis, while insurance service expenses have remained fairly stable and recently even declined.

Speaker #1: However, most of this recognized performance fee was written down in Q2 '26. This impact was, on the other hand, offset by the previously mentioned strong Karantia's net investment income.

Speaker #1: It should be emphasized that the operating profit from continuing earnings has been developing a positive trend, as visible on the right-hand side. Then a couple of words regarding Karantia.

Lauri Lipsanen: A couple of words regarding Garantia. As already discussed by Ilkka, despite the weak development of the Finnish housing market has continued, Garantia's insurance revenue has increased by almost 5% on a last 12-month basis, while insurance service expenses have remained fairly stable and recently even declined.

Speaker #1: As already discussed by Ilkka, despite the weak development of the Finnish housing market continuing, Karantia's interest revenue has increased by almost 5% on a 12-month basis.

Speaker #1: Whilst insurance service expenses have remained fairly stable and recently even declined, these together have resulted in the positive net insurance result performance, which, combined with the positive development of the net investment income, have increased Karantia's operating profit above €26 million on an LTM basis.

Lauri Lipsanen: These together have resulted in the positive net insurance result performance, which combined with the positive development of the net investment income, have increased Garantia's operating profit up of EUR 26 million on an LTM basis. The underlying performance has been even stronger. Cash-based premiums received, we saw colored here with the black, increased by almost 20% on an LTM basis. However, the growth in terms of insurance revenue has been modest, mostly due to the IFRS accounting principles causing delays in revenue recognition. On the right-hand side, it can be seen that the combined annual ratio was again strong in the H1 of this year, and the claims ratio was low. It should be noted that expense ratio was impacted by the strategy development cost of EUR 0.4 million, equaling to 4 percentage points impact on expense ratio.

Speaker #1: And the underlying performance has been even stronger. So, cash-based premiums received, which are colored here with black, increased by almost 20% on an LTM basis.

Speaker #1: However, the growth in terms of insurance revenue has been modest, mostly due to the IFRS accounting principles causing delays in revenue recognition. On the right-hand side, it can be seen that the combined ratio was again strong in the first half of this year.

Lauri Lipsanen: However, the growth in terms of insurance revenue has been modest, mostly due to the IFRS accounting principles causing delays in revenue recognition. On the right-hand side, it can be seen that the combined annual ratio was again strong in the H1 of this year, and the claims ratio was low. It should be noted that expense ratio was impacted by the strategy development cost of EUR 0.4 million, equaling to 4 percentage points impact on expense ratio.

Speaker #1: And the claims ratio was low. It should be noted that the expense ratio was impacted by the strategy development cost of €0.4 million, equaling a 4 percentage point impact on the expense ratio.

Speaker #1: Here you can see that Karantia's return on equity at fair value continued to be at an excellent level, and the solvency ratio has remained strong. Basic own funds have also continued to grow and reached €125 million in Q2.

Lauri Lipsanen: Here you can see that Garantia's return on equity at fair value continued to be at excellent level, and solvency ratio has remained strong. Basic own funds have continued to grow and reads EUR 125 million in Q2. Garantia paid half of the dividend of EUR 80 million to the parent company, Taaleri Oyj, in March, and the second dividend payment will be made in September. Then a couple of words regarding private asset management. As visible, continuing earnings grew by 4.3% on an LTM basis, and this development has been mainly driven by Taaleri SolarWind III final closing that took place in Q4 2025. When looking at the chart on the right, you can see that both LTM operating profit and especially LTM operating profit margin have been declining, and the declines accelerated in Q2 2026. Two drivers largely explain the decline in profitability.

Speaker #1: Karantia paid half of the €18 million dividend to the parent company, Taaleri PLC, in March, and the second dividend payment will be made in September.

Speaker #1: Then a couple of words regarding private asset management. As visible, continuing earnings grew by 4.3% on an LTM basis. And this development has been mainly driven by SolarWind 3 final closing that took place in Q4 '25.

Lauri Lipsanen: As visible, continuing earnings grew by 4.3% on an LTM basis, and this development has been mainly driven by Taaleri SolarWind III final closing that took place in Q4 2025. When looking at the chart on the right, you can see that both LTM operating profit and especially LTM operating profit margin have been declining, and the declines accelerated in Q2 2026. Two drivers largely explain the decline in profitability.

Speaker #1: When looking at the chart on the right, you can see that both LTM operating profit and especially LTM operating profit margin have been declining, and the declines accelerated in Q2 2026.

Speaker #1: Two drivers largely explain the decline in profitability. First of all, Q2 and Q3 '25 LTM profits are positively impacted by the earlier recognized performance fee of €1.8 million.

Lauri Lipsanen: First of all, Q2 and Q3 2025 LTM profits are positively impacted by the earlier recognized performance fee of EUR 1.8 million, whereas most of this performance fee was written off during the last quarter. Secondly, LTM impact of retroactive fees relating to Taaleri SolarWind III were lowest in the last quarter compared to the other LTM periods visible in this chart. When it comes to investment segment, fair value of the investment portfolio declined by EUR 3.1 million during the last quarter, and it was mainly driven by the already mentioned negative fair value changes in the wind park in Texas Truscott-Gilliland East wind investment. The total value of investments will increase materially subject to the announced follow-on investments in the Fintoil and RenGas. As a reminder, when looking at this table, fair value of the investment may deviate from the balance sheet value depending on the basis of accounting.

Speaker #1: Whereas most of this performance fee was written off during the last quarter. Secondly, the LTM impact of retrospective fees relating to SolarWind 3 was lowest in the last quarter compared to the other LTM periods visible in this chart.

Speaker #1: When it comes to the investment segment, the fair value of the investment portfolio declined by €3.1 million during the last quarter. This was mainly driven by the already mentioned negative fair value changes in the wind park in Texas, Truscott-Gilliland East Wind investment.

Lauri Lipsanen: When it comes to investment segment, fair value of the investment portfolio declined by EUR 3.1 million during the last quarter, and it was mainly driven by the already mentioned negative fair value changes in the wind park in Texas Truscott-Gilliland East wind investment. The total value of investments will increase materially subject to the announced follow-on investments in the Fintoil and RenGas. As a reminder, when looking at this table, fair value of the investment may deviate from the balance sheet value depending on the basis of accounting.

Speaker #1: The total value of investments will increase materially, subject to the announced following investments in the Fin Tool and Rain Cars. And as a reminder, when looking at this table, fair value of the investment may deviate from the balance sheet value depending on the basis of accounting.

Speaker #1: And this is visible in Turun Toriparkki, of which the fair value is currently €16.6 million, whereas the balance sheet value is €10.5 million.

Lauri Lipsanen: This is visible in Turun Toriparkki, of which fair value is currently EUR 60.6 million, whereas the balance sheet value is EUR 10.5 million. At the end, a short recap regarding Taaleri's balance sheet. Both balance sheet and equity ratio have remained strong. Total assets were EUR 304 million, and equity ratio 71%. We entered into new financing arrangement of EUR 30 million in order to execute upcoming follow-on investment of EUR 30 million into Fintoil, and in order to maintain flexible implementation of strategic initiatives. Investments were EUR 226 million at the quarter end, of which Garantia's investment portfolio accounted for 73%, and development capital portfolio slightly below 20%. On top of these investments, we have the net cash position of EUR 50 million, and this in total exceeds our market cap of EUR 201 million as per the end of Q2.

Speaker #1: At the end, a short recap regarding Taaleri's balance sheet. Both the balance sheet and equity ratio have remained strong. Total assets were €304 million and the equity ratio was 71%.

Speaker #1: We entered into the new financing arrangement of €30 million in order to execute an upcoming follow-on investment of €30 million in the fin toil.

Lauri Lipsanen: We entered into new financing arrangement of EUR 30 million in order to execute upcoming follow-on investment of EUR 30 million into Fintoil, and in order to maintain flexible implementation of strategic initiatives. Investments were EUR 226 million at the quarter end, of which Garantia's investment portfolio accounted for 73%, and development capital portfolio slightly below 20%. On top of these investments, we have the net cash position of EUR 50 million, and this in total exceeds our market cap of EUR 201 million as per the end of Q2.

Speaker #1: And in order to maintain flexible implementation of strategic initiatives, investments were €226 million at the quarter end, of which Karantia's investment portfolio accounted for 73%.

Speaker #1: And the development capital portfolio is slightly below 20%. On top of these investments, we have a net cash position of €15 million. This in total exceeds our market cap of €201 million as of the end of Q2.

Speaker #1: It should be noted that, on top of the investments which generate operative cash flow, our LTM operating profit from continuing earnings not related to the investment portfolio was €11.2 million.

Lauri Lipsanen: It should be noted that on top of the investments, which generate positive operative cash flow, our LTM operating profit from continuing earnings not related to the investment portfolio was EUR 11.2 million. Also, it is worth to highlight that Taaleri distributed the first dividend tranche of EUR 4.2 million in April, and the second tranche will be paid in October. Ilkka will present an outlook for 2026.

Speaker #1: Also, it is worth highlighting that Taaleri distributed the first dividend tranche of €4.2 million in April, and the second tranche will be paid in October.

Speaker #1: And now, Ilkka will present an outlook for 2026.

Speaker #2: All right. Thank you, Lauri. We haven't made any changes to the outlook for 26. So repeating the previous outlook is such that in renewable energy business we expect to continue earnings decline versus the comparison period and versus the 25 due to the fact of those subsequent management fees which were recognized in 25.

Ilkka Laurila: All right. Thank you, Lauri. We haven't made any changes to the outlook for 2026. So repeating the previous outlook is such that in renewable energy business, we expect the continuing earnings decline versus the comparison period and versus 2025 due to the fact of those subsequent management fees which were recognized in 2025. Obviously, other than that, it's very much dependent on the exit processes and how those will develop during the year, and that will have a major impact on the operating profit and the result of that operation. In other private asset management, we expect the operating profit remain still negative in 2026 as we are investing in growth and new asset classes and new activities in that area. In Garantia, insurance revenue is expected to grow in 2026, and profitability of the reinsurance operations expected to remain stable.

Speaker #2: Obviously, other than that, it's very much dependent on the exit processes and how those will develop during the year, and that will have a major impact on the operating profit and the result of that operation.

Speaker #2: Then, in other private asset management, we expect the operating profit to remain negative in '26, as we are investing in growth, new asset classes, and new activities in that area.

Ilkka Laurila: In other private asset management, we expect the operating profit remain still negative in 2026 as we are investing in growth and new asset classes and new activities in that area. In Garantia, insurance revenue is expected to grow in 2026, and profitability of the reinsurance operations expected to remain stable. Then on the other hand, the other side of the business, the investing operations, obviously, development in that area is very much dependent on the overall interest market and the equity market development.

Speaker #2: In Karantia, insurance revenues are expected to grow in '26, and profitability of the reinsurance operations is expected to remain stable. Then, on the other hand, the other side of the business, the investing operations, obviously development in that area is very much dependent on the overall interest market and the equity market development.

Ilkka Laurila: Then on the other hand, the other side of the business, the investing operations, obviously, development in that area is very much dependent on the overall interest market and the equity market development. In the investment segment, like we saw also during this quarter, the result both the revenue and the operating profit is very much dependent on the fair value changes as the other revenue, as well as the other cost structure is quite limited in that segment. On the cost structure, no major changes are expected during 2026. To summarize, the headline title of this report was that the strategy execution is proceeding quite rapidly. We also have a good operational development in our business.

Speaker #2: In the investment segment, like we saw also during this quarter, the result—both the revenue and the operating profit—is very much dependent on the fair value changes, as the other revenue as well as the other cost structure is quite limited in that segment.

Ilkka Laurila: In the investment segment, like we saw also during this quarter, the result both the revenue and the operating profit is very much dependent on the fair value changes as the other revenue, as well as the other cost structure is quite limited in that segment. On the cost structure, no major changes are expected during 2026. To summarize, the headline title of this report was that the strategy execution is proceeding quite rapidly. We also have a good operational development in our business.

Speaker #2: And on the cost structure, no major changes are expected during '26. So to summarize, the headline title of the report was that the strategy execution is proceeding quite rapidly.

Speaker #2: We also have a good operational development in our business. Obvious is in our case that good strategy execution and the operational development are not always shown in the short-term quarterly numbers, but in the longer term, we strongly believe that as we continue the high activity level that we are, and we continue to execute our strategy, that can be seen in a positive development of our numbers during the incoming quarters.

Ilkka Laurila: Obviously, in our case, that good strategy execution and the operation development are not always shown in a short-term quarterly numbers, but in a longer term, we strongly believe that as we continue the high activity level that we are and we continue to execute our strategy, that can be seen in a positive development of our numbers through the incoming quarters. That will conclude this section, and moving forward to the next section of the presentation is to cover shortly Fintoil and our investment on that. Like I said, we have made a decision to invest EUR 30 million in Fintoil as a part of the bigger much larger financing round. So EUR 25 million out of that is paid on completion, and then EUR 5 million is then conditional on the Fintoil strategic investments.

Speaker #2: That will conclude this section and move forward to the next section of the presentation, which is to cover shortly the Fintoil and our investments on that.

Speaker #2: So, like I said, we have made a decision to invest €30 million in Fin Toil, as part of a bigger, much larger financing round.

Ilkka Laurila: Like I said, we have made a decision to invest EUR 30 million in Fintoil as a part of the bigger much larger financing round. So EUR 25 million out of that is paid on completion, and then EUR 5 million is then conditional on the Fintoil strategic investments. That will result approximately 35% ownership in Fintoil post-transaction, subject to certain final conditions and final development and timing, and so on and so forth.

Speaker #2: Financing round. So the €25 million, out of that, is paid on completion, and then €5 million is conditional on these FinToil strategic investments.

Speaker #2: That will result in approximately 35% ownership in Fin Toil post-transaction, subject to certain final conditions and final development and timing, and so on and so forth.

Ilkka Laurila: That will result approximately 35% ownership in Fintoil post-transaction, subject to certain final conditions and final development and timing, and so on and so forth. The expected completion is to happen during this quarter, so Q3 2026, and that is subject to customary authority and other conditions. But with that, it's my pleasure to invite Ari-Pekka Määttänen, the CEO of Fintoil, to the stage to go through what Fintoil actually is, what are the operation and how we see the future development and the company sees the future development now going forward. But with that, Ari-Pekka, please, stage is yours.

Speaker #2: And the expected completion is to happen during this quarter, so the third quarter of 2026, and that is subject to customary authority and other conditions.

Ilkka Laurila: The expected completion is to happen during this quarter, so Q3 2026, and that is subject to customary authority and other conditions. But with that, it's my pleasure to invite Ari-Pekka Määttänen, the CEO of Fintoil, to the stage to go through what Fintoil actually is, what are the operation and how we see the future development and the company sees the future development now going forward. But with that, Ari-Pekka, please, stage is yours.

Speaker #2: With that, it's my pleasure to invite Ari Pekka Määttänen, the CEO of Fintoil, to the stage to go through what Fintoil actually is, what the operations are, and how we see the future development—and how the company sees the future development.

Speaker #2: And now, going forward. But with that, Ari-Pekka, please—the stage is yours.

Speaker #3: Thank you, Ilkka. So pleased to be here, and good morning on my behalf also. My name is Ari Pekka Määttänen, and I'm the CEO at Fintoil for the last two years.

Ari-Pekka Määttänen: Thank you, Ilkka. Pleased to be here, and good morning on my behalf also. My name is Ari-Pekka Määttänen, and I am a CEO at Fintoil since last 2 years. I joined the company 1 July 2024. Before that, I was heading Andritz EMEA business, EUR 1.7 billion sales, pulp and paper and power, and a strong background on forest industry because before Andritz, I was at Stora Enso, having a long career there. Last position there was running the Containerboard business unit, where we created quite a significant growth in 8 years. The Fintoil story itself, who we are. We are the most modern crude tall oil refining company in the world. We are located well logistic-wise next to the port and good connections to the railway and road transportation.

Speaker #3: I joined the company 1st of July, 2024. Before that, I was heading Andritz Emea business 1.7 billion sales. Palpan paper and power. And a strong background on forest industry because before Andritz, I was at Stora Enso having a long career there.

Speaker #3: And last position there was running the container boat business unit, where we created quite significant growth in eight years. But the Fintoil story itself, who we are—we are the most modern crude tall oil refining company in the world.

Ari-Pekka Määttänen: The Fintoil story itself, who we are. We are the most modern crude tall oil refining company in the world. We are located well logistic-wise next to the port and good connections to the railway and road transportation. The bioindustry, pulp mills who are producing the crude tall oil are located near to us, and so is our customers who are producing biofuels are also close to us. We have a perfect logistics setup with this Hamina Kotka port.

Speaker #3: We are located well, logistics-wise, next to the port and have good connections to the railway and road transportation. The buyer industry pulp mills, who are producing the crude tall oil, are located near to us.

Ari-Pekka Määttänen: The bioindustry, pulp mills who are producing the crude tall oil are located near to us, and so is our customers who are producing biofuels are also close to us. We have a perfect logistics setup with this Hamina Kotka port. Our technology is based on a Neste technology, NEXBTL technology, which is very cost efficient. It is a low energy setup as such, so we actually utilize 40% less energy in our refining facilities compared to the competitors. What is crude tall oil? Crude tall oil is originated from the forest. It is an extractives from pine and spruce, which is separated in a pulping process in our pulp mills. Then crude tall oil is delivered to Fintoil facilities, where we fractionate that to four different kind of products. One is a turpentine, which goes to aromatics and hygiene products.

Speaker #3: And so our customers who are producing biofuels are also close to us. So we have a perfect logistics setup with this HaminaKotka port.

Speaker #3: Our technology is based on a nestless technology, Next Pinus technology, which is very cost-efficient. It's a low-energy setup, as such, so we actually utilize 40% less energy in our refining facilities compared to the competitors.

Ari-Pekka Määttänen: Our technology is based on a Neste technology, NEXBTL technology, which is very cost efficient. It is a low energy setup as such, so we actually utilize 40% less energy in our refining facilities compared to the competitors. What is crude tall oil? Crude tall oil is originated from the forest. It is an extractives from pine and spruce, which is separated in a pulping process in our pulp mills. Then crude tall oil is delivered to Fintoil facilities, where we fractionate that to four different kind of products. One is a turpentine, which goes to aromatics and hygiene products.

Speaker #3: So, what is crude tall oil? Crude tall oil is originated from the forest. It's an extractive from pine and spruce, which is separated in a pulping process in our pulp mills.

Speaker #3: The crude tall oil is delivered to Fintoil facilities, where we fractionate that into four different kinds of products. One is turpentine, which goes to aromatics and hygiene products.

Speaker #3: Then the main product is fatty acids, and that goes to the renewable diesel feedstock. There, the demand is really high today, and we are really focusing on that.

Ari-Pekka Määttänen: Then the main product is fatty acids, and that goes to the renewable diesel feedstock. There, the demand is really high today, and we are really focusing on that. The third product is rosin, which goes to the adhesives, inks, paints, coatings, and similar applications. The last but not least, we have two different kind of pitch products, which currently goes to the bioenergy. The bioenergy is actually a bit of the outlet for us, and it is the lowest value-added application for the pitch. So we are having more and more of these high value-added applications like construction, asphalt, sterols, and that kind of things. That is the market optimization, what we are currently doing. What we have achieved so far.

Speaker #3: The third product is rosin which goes to the adhesives inks paints coatings and a similar applications. And the last but not least we have a two different kind of a pitch products which currently goes to the bioenergy but the bioenergy is actually a bit of the outlet for us and it's the lowest value added application for the pitch.

Speaker #3: So we are having more and more of these high value-added applications, like construction asphalt, sterols, and that kind of things. And that is market optimization, what we are currently doing.

Ari-Pekka Määttänen: So we are having more and more of these high value-added applications like construction, asphalt, sterols, and that kind of things. That is the market optimization, what we are currently doing. What we have achieved so far. As said, we are a leading producer of the crude tall oil derivatives, and our capacity is roughly 10% of the global refining capacity with 200,000 tons of the capacity at Hamina Kotka. Our purpose is to replace fossil-based materials, and we can do that in our customers' applications up to 400,000 tons of equivalent fossil CO2 tons.

Speaker #3: And what we have achieved so far, as said, we are a leading producer of crude oil derivatives. Our capacity is roughly 10% of the global refining capacity, with 200,000 tonnes of capacity.

Ari-Pekka Määttänen: As said, we are a leading producer of the crude tall oil derivatives, and our capacity is roughly 10% of the global refining capacity with 200,000 tons of the capacity at Hamina Kotka. Our purpose is to replace fossil-based materials, and we can do that in our customers' applications up to 400,000 tons of equivalent fossil CO2 tons. To put that in a context, that means roughly 45% of Finnish road traffic emissions, CO2 emissions. So it is quite a significant amount what we are doing. We are a very lean organization. We are only 47 people, which means on a turnover-wise, EUR 4 million per single employee. With the full capacity, it is EUR 5 million per single employee. We have a proven track record, last 3, 4 years in operations. It functions well. It is very effective, flexible, and cost efficient.

Speaker #3: At Hamina Kotka. Our purpose is to replace fossil based materials and we can do that in our customers applications up to 400,000 tonnes of equivalent CO2 fossil CO2 tonnes to put that in a context that means roughly 45% of Finnish road traffic emissions CO2 emissions.

Ari-Pekka Määttänen: To put that in a context, that means roughly 45% of Finnish road traffic emissions, CO2 emissions. So it is quite a significant amount what we are doing. We are a very lean organization. We are only 47 people, which means on a turnover-wise, EUR 4 million per single employee. With the full capacity, it is EUR 5 million per single employee. We have a proven track record, last 3, 4 years in operations. It functions well. It is very effective, flexible, and cost efficient.

Speaker #3: So, it's quite a significant amount, what we are doing. We are a very lean organization; we are only 47 people, which means, turnover-wise, €4 million per single employee.

Speaker #3: And with the full capacity, it's €5 million per single employee. We have a proven track record. In the last three to four years in operations, it has functioned well.

Speaker #3: It's a very effective flexible and cost efficient. And with that we have also created during the last year quite a significant growth. As we can see in here in 2025 in comparison to 2024 we grew 43% in our top line.

Ari-Pekka Määttänen: And with that, we have also created, during the last year, quite a significant growth. As we can see in here, in 2025, in comparison to 2024, we grew 43% in our top line. We have a heavy market acquisition during those days. Currently, by the end of Q2, last 12 months in comparison year-on-year, we have already grown another 23%, and we will for sure this year exceed more than 30%. So we have 2025, 2026, really aggressive growth years at the moment. Here we can see that a big part of our business is located in Finland, and there is a reason for that one, and that is the pitch. We need to have an outlet market for the pitch nearby at the moment. When you are growing aggressively, the market mix, it is not optimum at all at this stage.

Speaker #3: So, we had a heavy market acquisition during those days. Currently, by the end of Q2, the last 12 months in comparison year on year, we have already grown another 23%, and we will for sure this year exceed more than 30%.

Speaker #3: So we have two really aggressive growth years, 2025 and 2026, at the moment. Here we can see that a big part of our business is located in Finland, and there is a reason for that.

Ari-Pekka Määttänen: Here we can see that a big part of our business is located in Finland, and there is a reason for that one, and that is the pitch. We need to have an outlet market for the pitch nearby at the moment. When you are growing aggressively, the market mix, it is not optimum at all at this stage. And that is why the profitability starts to follow gradually the growth rates. But that will come later when we have optimized our market and customer footprint.

Speaker #3: And that's a pitch. We need to have an outlet market for the pitch nearby at the moment. When you are growing aggressively, the market mix is not optimum at all at this stage.

Speaker #3: And that's why the profitability starts to follow, gradually, the growth rates. But that will come later, when we have optimized our market and customer footprint.

Ari-Pekka Määttänen: And that is why the profitability starts to follow gradually the growth rates. But that will come later when we have optimized our market and customer footprint. And that is why we have these multiple earning and growth levers, which we can see in here. Our capacity is 75% at the moment, what we are utilizing. There are still more room for the sales volumes because the market is not the bottleneck in here. Market exists. We have a broad customer base in general, and we can improve our customer and product mix, and market mix. And of course, with the innovation, we could have high return investment opportunities in the future. By saying that, I will go to our next steps, what the future will bring us. We have set the strategy in stages, so different milestones, and that is clear because you cannot do everything at once.

Speaker #3: And that's why we have these multiple earnings and growth levers, which we can see in here. Our capacity is 75% at the moment, which we are utilizing.

Ari-Pekka Määttänen: And that is why we have these multiple earning and growth levers, which we can see in here. Our capacity is 75% at the moment, what we are utilizing. There are still more room for the sales volumes because the market is not the bottleneck in here. Market exists. We have a broad customer base in general, and we can improve our customer and product mix, and market mix. And of course, with the innovation, we could have high return investment opportunities in the future.

Speaker #3: There is still more room for the sales volumes, because the market is not the bottleneck here. The market exists. We have a broad customer base in general, and we can improve our customer and product mix.

Speaker #3: And market mix. And of course, with the innovation, we could have high-return investment opportunities in the future. So by saying that, I will go to our next steps.

Ari-Pekka Määttänen: By saying that, I will go to our next steps, what the future will bring us. We have set the strategy in stages, so different milestones, and that is clear because you cannot do everything at once. You have to do it stepwise, systematically. The first step is already behind us, and that is the startup stage. In the startup phase, we had a limited market access due to the offtake contracts, but actually, that secured our business for the first years, initial years.

Speaker #3: What the future will bring us. We have set the strategy in stages, with different milestones. And that's clear, because you cannot do everything at once.

Speaker #3: You have to do it stepwise, systematically. The first step is already behind us, and that's the startup stage. And in the startup phase, we had limited market access due to the off-day contracts.

Ari-Pekka Määttänen: You have to do it stepwise, systematically. The first step is already behind us, and that is the startup stage. In the startup phase, we had a limited market access due to the offtake contracts, but actually, that secured our business for the first years, initial years. Now we are already in a fast growth stage, which really means that our top line is growing really rapidly, and the enabler is that we have broadened our customer base quite aggressively from the totally different applications, different categories. And with that, we are understanding the market much better than we had understood before. And by understanding the market, we start to create an innovation and R&D work towards the next steps.

Speaker #3: But actually, that's secured our business for the first initial years. Now, we are already in a fast growth stage, which really means that our top line is growing really rapidly. And the enabler is that we have broadened our customer base quite aggressively.

Ari-Pekka Määttänen: Now we are already in a fast growth stage, which really means that our top line is growing really rapidly, and the enabler is that we have broadened our customer base quite aggressively from the totally different applications, different categories. And with that, we are understanding the market much better than we had understood before.

Speaker #3: From the totally different applications, different categories, and with that we are understanding the market much better than we had understood before. And by understanding the market, we start to create innovation and R&D work towards the next steps.

Ari-Pekka Määttänen: And by understanding the market, we start to create an innovation and R&D work towards the next steps. And really find the right customers, right markets, right applications, where we can make most out of the value with our customers in these applications, with our products, with the crude tall oil value chain. Then we are entering to the optimization stage. There, we are actually selecting the right customers who to partner with, right applications, and improve our customer and market mix quite rapidly.

Speaker #3: And really find the right customers, right markets, right applications where we can make most out of the value with our customers in these applications, with our products, with the crude oil value chain.

Ari-Pekka Määttänen: And really find the right customers, right markets, right applications, where we can make most out of the value with our customers in these applications, with our products, with the crude tall oil value chain. Then we are entering to the optimization stage. There, we are actually selecting the right customers who to partner with, right applications, and improve our customer and market mix quite rapidly. At the same time, we need to have a right geographical footprint, which means that we understand what are the key markets and what are so-called outlet markets for us, and how we set up our organization to support the strategy. Then when you enter into the new business, the first question is always that, is the business profitable? Can you make it profitable? And that is a yes. We can make this profitable because the demand is growing.

Speaker #3: And then we are entering into the optimization stage. There, we are actually selecting the right customers to partner with, the right applications, and improving our customer and market mix quite rapidly.

Speaker #3: At the same time, we need to have the right geographical footprint, which means that we understand what the key markets are and what are so-called outlet markets for us.

Ari-Pekka Määttänen: At the same time, we need to have a right geographical footprint, which means that we understand what are the key markets and what are so-called outlet markets for us, and how we set up our organization to support the strategy. Then when you enter into the new business, the first question is always that, is the business profitable? Can you make it profitable? And that is a yes. We can make this profitable because the demand is growing.

Speaker #3: And how we set up our organization to support the strategy. Then, when you enter into a new business, the first question is always: is the business profitable?

Speaker #3: Can you make it profitable? And that's a yes. We can make this profitable because the demand is growing. There is the RED III directive, which increases the demand for bio-based fuels quite rapidly in the coming years.

Ari-Pekka Määttänen: There is a RED III directive, which increases the demand of bio-based fuels quite rapidly in coming years. 2026, 2027, we are in balance, but 2028, advanced feedstock, it is already scarce in the market in 2028, based on this one. The second question, which is a more important question, is that, can you differentiate from the competitors? Yes, we can. We have set up our innovation work, and as a proof point of that, we have filed our application of the environmental permit for the next investment stage six weeks ago. With that, we are differentiating further from our competitors towards that, and are able to adapt to the changing market environment.

Speaker #3: In 2026 and 2027, we are in balance, but in 2028, advanced feedstock is already scarce in the market in 2028, based on this. The second question, which is a more important question, is: Can you differentiate from the competitors?

Speaker #3: Yes, we can. And we have set up our innovation work, and as a proof point of that, we filed our application for the environmental permit for the next investment stage six weeks ago.

Speaker #3: And with that, we are differentiating further from our competitors. Towards that, we are able to adapt to the changing market environment. As once again said, I'm really pleased to have High Tech Vision—the private equity investment leading investor in the energy sector—on board, and especially Taaleri's support to this business to really remove the barriers in our balance sheet to execute our strategy towards the profitable growth.

Ari-Pekka Määttänen: With that, we are differentiating further from our competitors towards that, and are able to adapt to the changing market environment. As once again said, I am really pleased to have HitecVision, the private equity investment, leading investor in energy sector on board, and especially Taaleri's support to this business to really remove the barriers in our balance sheet to execute our strategy towards the profitable growth. Thank you so much to letting me be here to tell the Fintoil story. Thank you.

Ari-Pekka Määttänen: As once again said, I am really pleased to have HitecVision, the private equity investment, leading investor in energy sector on board, and especially Taaleri's support to this business to really remove the barriers in our balance sheet to execute our strategy towards the profitable growth. Thank you so much to letting me be here to tell the Fintoil story. Thank you.

Speaker #3: Thank you so much for letting me be here to tell the fintech story. Thank you.

Speaker #1: Thank you for the presentation, Ari Pekka, and thank you also to Ilkka and Lauri for your presentations earlier. We will now move forward to the Q&A session, and as mentioned earlier, we will start with a Q&A with Fintal CEO Ari Pekka Määttänen, as he's here on stage with me.

Linda Tierala: Thank you for the presentation, Ari-Pekka, and thank you also, Ilkka and Lauri, for your presentations earlier. We will now move forward to the Q&A session. As mentioned earlier, we will start with a Q&A with Fintoil's CEO, Ari-Pekka Määttänen, as he is here on stage with me. So if you have any questions online, please continue to submit those through the platform, and we are happy to take questions here also from the audience. Please go ahead. We have the first question here from the audience.

Speaker #1: So if you have any questions online, please continue to submit those through the platform, and we're happy to take questions here also from the audience.

Speaker #1: So please go ahead. We have the first question here from the audience.

Speaker #2: Yes, thank you. Samu Vilhelmsson from Nordea Great Research. Thank you, Ari Pekka, for the great presentation. Maybe a few questions regarding Fintal. First of all, regarding the new growth strategy—are you expecting these investments to tackle more towards creating new sites, or does it focus more on expanding the existing Hamina site?

Samu Wilhelmsson: Yes. Thank you. Samu Wilhelmsson from Nordea Equity Research. Thank you, Ari-Pekka, for the great presentation. Maybe a few questions regarding Fintoil. First of all, regarding the new growth strategy, are you expecting to these investments tackle into more creating new sites, or does it focus more on expanding the existing Hamina site?

Speaker #3: The first stage is an existing site, but in the future stage, we are not excluding also other options for the profitable growth.

Ari-Pekka Määttänen: The first stage, it is an existing site. But in the future stage, we are not excluding also other options for the profitable growth.

Speaker #2: Okay, got it. Then, you mentioned in the announcement the EBITDA margin target of 20% by 2030 from around 9%. So, just trying to understand—does that mainly stem from the new multi-site strategy, or does it include some internal efficiency measures from the existing site?

Samu Wilhelmsson: Okay. Got it. Then you mentioned in the announcement, the EBITDA margin target of 20% by 2030 from around 9%. Just trying to understand, does that mainly stem from the new multi-site strategy, or does it include some internal efficiency measures from existing site?

Speaker #3: The first stage is really that we need to optimize our customer and market mix because we are not optimal at all. With such aggressive growth, there is an acquisition cost in the markets, and we are actually carrying that acquisition cost at the moment.

Ari-Pekka Määttänen: The first stage is really that we need to optimize our customer and market mix because we are not optimal at all. With such an aggressive growth, there is an acquisition cost of the markets, and we are actually carrying that acquisition cost at the moment. To get rid of that one, it takes year and a half, couple of years to the optimization part, and then the profitability start to follow. But on the top of that, there are also the investments behind that 20%.

Speaker #3: And to get rid of that one, it takes a year and a half, a couple of years to the optimization part, and then the profitability starts to follow.

Speaker #3: But on top of that, there are also the investments behind that 20%.

Speaker #2: Okay, thank you. Then the final question regarding the crew toilet availability, because we know that it's a tight market. And you said that now, because of what is happening in the Middle East, the capacity utilization has been low in Fintal now because of availability concerns.

Samu Wilhelmsson: Okay. Thank you. Then the final question regarding the crude tall oil availability, because we know that it is a tight market. You said that now because what is happening in the Middle East, the capacity utilization has been low in Fintoil now because of availability concerns.

Speaker #2: Have these impacted the market prices of CTO, and are you managing these price-related risks? Is there a risk that these price increases would force you to downgrade your capacity even further if the prices increase further?

Samu Wilhelmsson: Have these impacted the market prices of CTO and are you managing these price related risks? Is there a risk that these price increases would force you to downgrade your capacity even further if the prices would increase further?

Speaker #3: That's an interesting thing. In general, because actually crude tall oil producers are following our pricing. So, first we add up the pricing and they are actually following us.

Ari-Pekka Määttänen: That is an interesting thing in general because actually crude tall oil producers are following our pricing. First we add up the pricing, and they are actually following us. This is a totally new business environment for me because normally it is vice versa in here. At the same time, I would say in our strategy, we have to concentrate in investments to upgrade our products further to increase the crude tall oil paying capability, and we have to be much better than the competitors in that sense.

Speaker #3: So this is a totally new business environment for me, because normally it's vice versa in here. But at the same time, I will say now, strategy-wise, we have to concentrate on investments to upgrade our products further to increase the crude tall oil paying capability.

Speaker #3: And we have to be much better than the competitors in that sense, and not just increasing the fractionation capacity.

Samu Wilhelmsson: Okay.

Ari-Pekka Määttänen: Not just increasing the fractionation capacity.

Speaker #2: Yes, yes, of course. Thank you.

Samu Wilhelmsson: Yes, of course.

Ari-Pekka Määttänen: Yeah.

Samu Wilhelmsson: Thank you.

Speaker #1: And we have a question here from the audience as well.

Linda Tierala: We have a question here from the audience as well.

Speaker #4: Yes, good afternoon. Sauli Vilhelm from Inderes. About the top line potential of the current site, can you give us any insight? Obviously, Taaleri has said that you are aiming for double-digit growth annually, but that doesn't tell much about the potential.

Sauli Vilén: Yes, good afternoon. Sauli Vilén from Inderes. About the top line potential of the current site, can you give us any insight? Obviously, Taaleri has said that you are aiming for double-digit growth annually, but that doesn't tell much about the potential.

Speaker #3: Our target was €180 million to achieve that one, but it seems that we are already achieving that this year. So, we have upgraded our targets in this strategic round, but it will be clear about the €200 million.

Ari-Pekka Määttänen: Our target was EUR 180 million to achieve that one, but it seems that we are already achieving that this year. We have upgraded our targets in this strategic round, but it will be clear about the EUR 200 million in hindsight.

Sauli Vilén: Is that the level where you think you could achieve the profitability target also?

Speaker #4: And is that the level where you think you could achieve the profitability target also?

Sauli Vilén: Is that the level where you think you could achieve the profitability target also?

Speaker #3: No, not only, not only. Because then we need these investments that we are actually currently studying, or even additional capacity to be acquired.

Ari-Pekka Määttänen: No, not only. Because then we need these investments, what we are actually currently starting on, or even additional capacity to be acquired.

Speaker #4: By acquiring more capacity, do you mean expanding the current site or...?

Sauli Vilén: By acquiring more capacity, do you mean expanding the current site, or how are you doing it?

Speaker #3: Not only that. There are also other options. You can also acquire downstream.

Ari-Pekka Määttänen: Not only. There are also other options. You can also acquire downstream.

Speaker #4: Oh, right. Okay. Then about the investment—maybe can you shed more light on what kind of capex you are actually making now, now that you have a notable amount of wiggle room, so to speak, and you’re not constrained anymore by the balance sheet?

Sauli Vilén: Right. Okay. Then about the investment, maybe can you shed more light on what kind of CapEx you are actually making now, once you have the notable amount of wiggle room, so to speak, and you are not restrained anymore with the balance sheet. Obviously, the greenfield operation was maybe far down in the future, but for the next 24 months, can you open up more what you are planning to do with the cash pile?

Speaker #4: So, obviously, yes, the greenfield operation is maybe far down in the future, but for the next 24 months, can you elaborate more on what you are planning to do with the cash pile?

Speaker #3: I don't want to speculate too much about the capex at this stage, but it's not that significant in the first stage. But the thing is that we want to upgrade our so-called commodity products towards the market, which is growing really rapidly.

Ari-Pekka Määttänen: I do not want to speculate too much about the CapEx at this stage, but it is not that significant in the first stage. But the thing is that we want to upgrade our so-called commodity products towards the market, which is growing really rapidly in coming years. I hope that we are up and running in 2028 with that one.

Speaker #3: In the coming years, I hope that we are up and running in 2028 with that one.

Speaker #4: So what you are basically saying is that you actually have excess capital at this stage, since it clearly hasn't been earmarked.

Sauli Vilén: What you are basically saying, that you actually have excess capital at this stage, since it has not been earmarked.

Speaker #3: In general, that's my belief—that the CapEx is not the bottleneck today. The perfect business ideas and innovation are the bottleneck. And I think that we have found something now to go further with that one, but we are expecting the final investment decision by the end of this year, latest January next year.

Ari-Pekka Määttänen: In general, that is my belief, that the CapEx is not the bottleneck today. The perfect business ideas and innovation is the bottleneck. I think that we have found something now to go further with that one. But we are expecting the final investment decision by the end of this year, latest January next year, when we have done our feasibility study regarding this business case.

Speaker #3: When we have done our feasibility study regarding this business case.

Speaker #4: Okay. Then, about your new partner, the High Tech Vision—about their role. Obviously, Taaleri has been at the helm during the past six years or so, but now High Tech Vision will be the main owner.

Sauli Vilén: Okay. Then about your new partner, HitecVision, about their role. Obviously, Taaleri has been at the helm during the past six years or so, but now HitecVision will be the main owner. So how you see what kind of role they will be playing to your operations?

Speaker #4: So, how do you see they—what kind of role will they be playing in your operations?

Speaker #3: They are very strong in the energy sector in general. And I think that's the value they are going to bring us to the POD work as such.

Ari-Pekka Määttänen: They are very strong in the energy sector in general, and I think that is the value, what they are going to bring us to the board work as such. To really, let us say, challenge us in the right way and then give the right guidance. What should we do on that side? We have our strategy, our opinions on that side, but I am really waiting forward this strategy round and very fruitful discussion regarding the energy sector in general.

Speaker #3: To really, let's say, challenge us in the right way and give the right guidance, what should we do on that side? We have our strategy, our opinions on that side, but I'm really looking forward to this strategy round and a very fruitful discussion regarding the energy sector in general.

Speaker #4: And they, of course, will operate mainly from the Board, I would assume.

Sauli Vilén: They, of course, will operate mainly from the board, I would assume.

Speaker #3: Yes. That's the case.

Ari-Pekka Määttänen: Yes, that is the case.

Speaker #4: Okay great. Thank you.

Sauli Vilén: Okay, great. Thank you.

Speaker #3: Thank you.

Ari-Pekka Määttänen: Thank you.

Speaker #1: Thank you. And we have a question online as well. This is regarding the regulatory risk related to Fintal's operations, for example, related to what's in Finnish called sekoitevelvoite, or blending obligations.

Linda Tierala: Thank you. We have a question online as well. This is regarding the regulatory risk related to Fintoil's operations, for example, related to what is in Finnish called "sekoitevelvoite" or blending obligations.

Sauli Vilén: Blending mandate.

Ari-Pekka Määttänen: Blending mandate.

Linda Tierala: Blending mandate.

Speaker #1: Blending mandate—so is that something you could elaborate on?

Sauli Vilén: Yes.

Ari-Pekka Määttänen: Yes.

Linda Tierala: Is there something that you could elaborate on that?

Speaker #3: Yes, it is always a risk as such. But as said, that's why we have two market segments: we have a segment for biofuels and biochemicals, and we will keep the biochemicals alive.

Ari-Pekka Määttänen: Yes. It is always a risk as such, but as said, that's why we have two market segments. We have a segment for biofuels and biochemicals, and we will keep the biochemicals alive for sure. It's going to be a niche business, but anyway, we are keeping that alive. If the market environment is rapidly changing because of the regulatory things,

Speaker #3: For sure. It's going to be in each business, but anyway, we are keeping that alive. So if the market environment is rapidly changing because of regulatory things, we can quite quickly adapt to the changing market environment and conditions.

Ari-Pekka Määttänen: we can quite quickly adapt to the changing market environment and conditions as such. That's what we need to have, the agility to build in this business.

Speaker #3: As such, that's what we need—to have agility built into this business.

Speaker #1: Thank you.

Linda Tierala: Thank you.

Speaker #3: Thank you.

Speaker #1: And thank you, Ari Pekka. We will now move to the second part of this Q&A, so please join me here on stage, Ilkka and Lauri, for the financial Q&A.

Sauli Vilén: Thank you.

Ari-Pekka Määttänen: Thank you.

Linda Tierala: Thank you, Ari-Pekka. We will now move to the second part of this Q&A. Please join me here on stage, Ilkka and Lauri, for the financial Q&A. Again, if you would like to ask a question, you can do so through the platform. We have a question here online, so please go ahead.

Speaker #1: And again, if you would like to ask a question, you can do so through the platform. We have a question here online, so please go ahead.

Speaker #5: Hi, it's Patrick Campbell from Nordea. Just going back to Fintal and the arrangement, my question relates to other private asset management. So, you're still guiding for negative profitability despite the expectation of some performance fees.

Patrick Campbell: Hi, it is Patrick Campbell from Nordea. Just going back to Fintoil and the arrangement, my question relates to other private asset management. You are still guiding for negative profitability despite the expectation of some performance fees. Can you break down this more clearly, please?

Speaker #5: Can you break this down more clearly, please?

Lauri Lipsanen: The performance fees mainly relate to the renewable energy, as well as we have that regarding Fintoil, we have some upsides there. But part of the profits relating to Fintoil relate to other division, not other private asset management.

Speaker #2: The performance fees may be related to the renewable energy as well, as we have that. Regarding Fintal, we have some upsides there, but part of the profit related to Fintal relates to another division, not to other private asset management.

Speaker #5: All right. Thank you. Then just going back to SolarWind 1 and the kind of reversal of the performance fees there. Can you kind of explain a bit more the rationale behind this decision and maybe a follow up regarding this is what are kind of the implications for the other funds currently in the exit phase?

Patrick Campbell: All right. Thank you. Just going back to SolarWind I and the reversal of the performance fees there, can you explain a bit more the rationale behind this decision? Maybe a follow-up regarding this is, what are the implications for the other funds currently in the exit phase?

Speaker #2: Yes, first as a reminder—or first, you need to understand that this is a market-related question. And in SolarWind 1, it's good to note that there is one investment in Jordan in the Middle East.

Ilkka Laurila: Yeah. First, as a reminder, you need to understand that is a market-related question. In SolarWind Fund, it is good to note that there is one investment in Jordan, in Middle East, one investment in Serbia, and two investments in Sweden. For example, there are no investments in Finland. That is maybe good to highlight. The write-down relates to the market development in those areas, especially in Middle East. We all know what the geopolitical situation is there. On the other hand, I think all that are following the energy market knows what the renewable energy market situation is in Sweden as there has been certain cancellation of the investments, especially in the Northern Sweden area.

Speaker #2: One investment in Serbia and two investments in Sweden. So, for example, there's no investments in Finland. That's maybe good to highlight. And the write-down relates to sort of the market development in those areas, especially in the Middle East.

Speaker #2: We all know what the geopolitical situation is there. And then, on the other hand, I think all who are following the energy market know what the renewable energy market situation in Sweden is, as there have been certain cancellations of investments, especially in the northern Sweden area.

Ilkka Laurila: On the other hand, I think all that are following the energy market knows what the renewable energy market situation is in Sweden as there has been certain cancellation of the investments, especially in the Northern Sweden area.

Speaker #5: All right, thank you. And then just a final one on SolarWind 4. So you've started the initial preparations—do you kind of have an initial timeline for the fund? What's kind of the track or timeline for launching this new fund?

Patrick Campbell: All right. Thank you. Just a final one on SolarWind IV. You have started the initial preparations. Do you kind of have an initial timeline for the fund? What is kind of the track or timeline for launching this new fund?

Speaker #2: Yeah, like I said, we started the initial preparation for the fund. We haven't set yet any kind of exact timeline, but let's put it that way: during the next 12 months, we expect to have a first closing on that.

Ilkka Laurila: Yeah, like I said, we started the initial preparation for the fund. We have not set yet any kind of exact timeline, but let us put it that way, that during the next 12 months, we expect to have a first closing on that.

Speaker #5: Perfect. Thank you.

Patrick Campbell: Perfect. Thank you.

Speaker #1: Thank you. And we have a question here from the audience as well.

Linda Tierala: Thank you. We have a question here from the audience as well.

Speaker #4: Yes. Hi, Sauli from Inderes. About the SolarWind 1 carry, can you give us any idea, like, how far below the hurdle you actually are now?

Sauli Vilén: Yes. Hi, Sauli from Inderes still. About the SolarWind One carry, can you give us any idea, like how far below the hurdle you actually are now? Is it just a tad or

Speaker #4: Is it just a tad, or...?

Ilkka Laurila: We are still above the hurdle, so there is still some carry which is recognized in the balance sheet. There is still small amount of carry that is recognized in the balance sheet. So we are still above the hurdle.

Speaker #2: We are still above the hurdle, so there is still some carry which is recognized in the balances. So, it was not a complete write-down of that.

Speaker #2: There is still a small amount of carry that is recognized in the balance sheet, so we are still above the hurdle.

Speaker #4: And do you still—if I understood correctly, you previously applied fairly large buffers for the carry calculation. Are those buffers still there, or have you...?

Sauli Vilén: Do you still have the Previously, if I understood correctly, you apply fairly large buffers for the carry calculation. Are those buffers still there, or have you-

Ilkka Laurila: Typically, yes. This process itself is similar to previous quarters, so there is no changes in the technical process how we do it.

Speaker #2: Typically, yes, this process itself is similar to previous quarters, so there's no change in the technical process for how we do it.

Speaker #4: Then, about the renewable energy—your personnel costs were fairly high in Q2. Usually, those spikes relate to the final closings of the fund, but now there wasn’t any of that.

Sauli Vilén: About the renewable energy, your personal costs were fairly high in Q2. Usually, those spikes relate to the final closings of the fund. But now there was not any of that, so what was the reason?

Speaker #4: So what was the reason?

Speaker #2: Variable personnel costs were higher, and that was mainly related to the changes in bonus provisions compared to what has actually realized in the previous periods.

Ilkka Laurila: Well, personal costs were higher, and that was mainly related to the changes in bonus provisions compared to what has actually realized in the previous periods. That also applies to the comparison period as well.

Lauri Lipsanen: Well, personal costs were higher, and that was mainly related to the changes in bonus provisions compared to what has actually realized in the previous periods. That also applies to the comparison period as well.

Speaker #2: And that also applies to the comparison period as well.

Speaker #4: Okay. Then, regarding the older wind funds, you still maintain the outlook that you could divest those in 2026—obviously, the year is closing soon.

Sauli Vilén: Okay. Then about the older wind funds. You still maintain the outlook that you could divest those in 2026. Obviously, the year is closing soon, so how confident are you that you can actually divest those in this current market?

Speaker #4: So, I mean, how confident are you that you can actually divest those in this current market?

Speaker #2: Well, there's no, let's say, news in that area. So, like I said, we still believe that we are able to close those, and are targeting to close those during 2026.

Ilkka Laurila: Well, there's no, let's say, news on that area. Like I said, we still believe that we're able to close those and targeting to close those during 2026.

Speaker #4: Then on the SolarWind 4, have you started some early investor discussions already? Are you at that phase?

Sauli Vilén: Then on the SolarWind IV, have you started some early investor discussions already? Are you in that phase?

Speaker #2: Well, obviously, as we are now having our, let's say, insourced and safe resources, we are continually having active dialogue with the LPs. And that's obviously a continuous process with the professional investors.

Ilkka Laurila: Well, obviously, as we are now having our, let's say, in-sourced and safe resources, we are continually having active dialogue with the LPs. That's obviously continuous process with the professional investors. So in that sense, yes, but like I said, we have only started the initial preparations. Like I said, we are expecting to have or targeting to have, even so haven't set any exact timeline, targeting to have a first closing during the 12 months or so.

Speaker #2: So, in that sense, yes, but like I said, we have only started the initial preparations, and like I said, we are expecting to have or targeting to have an event, so we haven't set any exact timeline. We're targeting to have a first closing during the next 12 months or so.

Sauli Vilén: What is your view about the fundraising market? Obviously, with the third fund, the market was super tough due to the difficulties in the alternative space, due to the raising interest rates, et cetera. So how do you feel now the market conditions when you start to raise?

Speaker #4: What is your view about the fundraising market? Obviously, with the third fund, the market was super tough due to the difficulties in the alternative space, such as the rising interest rates, etc.

Speaker #4: So how do you feel about the market conditions now, when you start to raise?

Speaker #2: I would say that I think, in general, obviously, we have other funds that will be in an active phase later as well. And I think overall, we are seeing—and we are also seeing from the statistics—that the activity level is increasing.

Ilkka Laurila: I would say that I think in general, obviously, we have other funds will be on active phase later as well. I think overall, I think we are seeing, and we are also seeing from the statistics that the activity level is increasing. But on the other hand, the kind of the, let's say, the actual reservation still remains the same. So the kind of the same LPs, they also need kind of the exits and therefore, so that we should be able to return some of the capital and so that the circling of the capital starts to and will continue. But I think the activity level and the optimism within the LPs is, you could say, is improving, has improved in the last six months or so. That can also be seen on the international statistics that obviously we follow quite actively.

Speaker #2: But then on the other hand the kind of the let's say the actual reservations still remains the same. So they the kind of the same LPs they also need kind of the exits and therefore so that we should be able to return some of the capital so that the circling of the capital starts to and will continue.

Speaker #2: But I think the activity level and the optimism within the LPs is, you could say, improving—has improved in the last six months or so.

Ilkka Laurila: But I think the activity level and the optimism within the LPs is, you could say, is improving, has improved in the last six months or so. That can also be seen on the international statistics that obviously we follow quite actively.

Speaker #2: And that can also be seen in the international statistics that, obviously, we follow quite actively.

Speaker #4: Then about your own investment, or the ticket size—I think in the third fund you put like $6 million, if I remember correctly, or so.

Sauli Vilén: Then about your own investment or the ticket size, I think in the third fund, you put like EUR 6 million, if I remember correctly or so. Is that a right ballpark figure for your own investment in the fund?

Speaker #4: Is that the right ballpark figure for your own investment fund?

Speaker #2: That's dependent on the LPA negotiations, so that's agreed together with the investors. So, no kind of final figures for that yet.

Ilkka Laurila: Dependent on the LPA negotiations. That is agreed together with the investors. No kind of final figures for that yet.

Speaker #4: Okay. Then, moving on to fundraisings—about the NSI, now that you have made the acquisition, any idea when you could start launching the second fund?

Sauli Vilén: Okay, then moving on to fundraisings. About the NSI, now when you have made the acquisition, any idea when you could start launching the second fund? How much of the investment capacity has been deployed on the first fund?

Speaker #4: How much of the investment capacity has been deployed on the first fund?

Ilkka Laurila: Roughly, I would say 40% or so has been invested so far. In venture capital fund, that is already a quite sizable amount, meaning that there is only room for a handful or so new investments, and then obviously lots of reserve to follow on investments. That is the classic case in venture capital fund. Therefore, obviously we are having, let us say, strategic discussions already ongoing, how and when we should proceed with the next vintage. But obviously nothing has been decided yet, nor published.

Speaker #2: Roughly, I would say 40% or so has been invested so far. So, in a venture capital fund, that is already quite a sizable amount, meaning that there is only room for a handful or so of new investments, and then obviously lots of reserve for follow-on investments.

Speaker #2: That's the classic case in a venture capital fund. So therefore, obviously we are having, let's say, strategic discussions already ongoing about how and when we should proceed with the next vintage.

Speaker #2: But obviously, nothing has been decided yet, nor is there anything to publish.

Speaker #4: Then, basically the same question about the private credit. Any timeline on that? Obviously, you need the team to come in first, but...

Sauli Vilén: Then just basically same question about the private credit. Any timeline on that? Obviously you need the team to come in first, but

Speaker #2: Yeah. And on that we have said that the next milestones we will publish this autumn. So stay tuned on that. And obviously following the team recruitment and the kind of the starting of the employment that will then follow the kind of the fundraising process with the permissions and regulatory approvals and everything.

Ilkka Laurila: Yeah. On that, we have said that the next milestones we will publish this autumn. So stay tuned on that. Obviously, following the team recruitment and the starting of the employment, that will then follow the fundraising process with the permissions and regulatory approvals and everything. In that sense, obviously, if the team will start later this year, obviously the fundraising will start then early next year, and that is the target timeline for that.

Speaker #2: So, in that sense, obviously if the team will start later this year, obviously the fundraising will start then early next year. And that's the target timeline for that.

Speaker #4: Then, if I may still continue about the rent gas—you said that you will deploy the last of the initial investment during Q3.

Sauli Vilén: If I may still continue about the RenGas, you said that you will be deployed the last of the initial investment during Q3. Overall, the facility or the investment plans seem to be moving on fairly quickly. Do you see Taaleri playing a role on the funding of the initial on the actual factory investment if that comes to that?

Speaker #4: Overall, the facility or the investment plans seem to be moving on fairly quickly. Do you see Taaleri playing a role in the funding of the initial, you know, the actual factory investment, if it comes to that?

Speaker #2: I haven't made any of those sorts of decisions. Like I think we have earlier communicated that we participated in that €16 million financing round for that development company.

Ilkka Laurila: Haven't made any of that sort of decisions. I think we earlier have communicated that we participated on that EUR 16 million financing round for that development company. Then obviously the asset companies are completely separate vehicles, and we haven't made any decision to participate on those.

Speaker #2: And then, obviously, the asset companies are completely separate vehicles, and we haven't made any decision to participate in those.

Speaker #4: But initially, do you see those—could those be interesting opportunities for you? Are those something you could look at?

Sauli Vilén: Initially, do you see those could those be interesting opportunities for you? Are those something you could look at?

Speaker #2: Well, I would say that most—it's quite likely that, at this stage, no, not with our—at least not a significant amount from our own balance sheet.

Ilkka Laurila: Well, I would say that it is quite likely that at this stage that no, not with our at least not a significant amount from our own balance sheet.

Speaker #4: Okay. Then a couple still on guarantees. You booked some €400,000 on strategy update costs, or whatever those were named. I thought you did the strategy process already.

Sauli Vilén: Okay. Then a couple still on Garantia. You booked some EUR 400,000 on strategy update cost or whatever those were named. I thought you did the strategy process already a year ago.

Speaker #4: Like a year ago so.

Speaker #2: Yes, and that is related to—in that we kind of, like we have stated—one of the angles on that is the international expansion.

Ilkka Laurila: Yes, and that is related to in that we kind of, and like we have stated, that one of the angles on that is the international expansion, and these costs now related to market study relating to that international expansion. Obviously, the resources of Garantia is 22 employees or so. So the internal resources are quite limited to carry out any more extensive market studies, and that's why obviously it's typical that you utilize external counterparties to do that sort of studies.

Speaker #2: And these costs now relate to market studies concerning that international expansion. Obviously, Garantia’s resources are 22 employees or so. So the internal resources are quite limited to carry out any more extensive market studies.

Speaker #2: And that's why, obviously, it's typical that you utilize external counterparties to do that sort of studies.

Speaker #4: Then, final question about the solvency on guarantee. The dividend is—are the upcoming dividends already deducted from the 260% solvency, right?

Sauli Vilén: Then final question about the solvency on Garantia. The upcoming dividend is already deducted from the 260% solvency, right?

Speaker #2: I have to check that.

Ilkka Laurila: I have to check that.

Lauri Lipsanen: I have to check that.

Speaker #4: Yeah. In either case, even then the solvency is still super high. So I have asked this before, but why don't you just take an extraordinary dividend out of the guarantee company now, when you actually could use the money to fund Fintoil, instead of raising debt or so?

Sauli Vilén: Yeah. Either case.

Ilkka Laurila: Yeah

Sauli Vilén: Even if it would not be, the solvency is still super high. I have asked this before, but why you just don't take an extraordinary dividend out of the Garantia now once you actually could use the money to fund Fintoil instead of raising debt or so?

Speaker #2: Well, it has to keep, it is quite, let’s say, as a foreign insurance company, it’s quite small in size. And to be able to keep a stable outlook with the red credit thing, which is crucial for the continuity of the business, it’s good to have strong solvency, strong balance sheet, to show that we are able to also kind of target the growth, or that the guarantee is able to kind of target its own growth activity.

Ilkka Laurila: Well, it has to keep. It is quite, let's say, as a foreign insurance company, it's quite small size. To be able to keep a stable outlook with the credit rating, which is crucial for the continuity of the business, it's good to have a strong solvency, strong balance sheet to show that we are able to also kind of target the growth, or the Garantia is able to kind of target its own growth activity. There is a clear rationale for that. It is a quite small size insurance company.

Speaker #2: So there is a clear rationale for that. It is quite a small-size insurance company.

Speaker #4: Okay. Thank you very much.

Sauli Vilén: Okay. Thank you very much.

Speaker #1: Thank you. And we have a few questions online as well. There's one regarding the SolarWind 4 fund. Have you received any indications from investors in previous SolarWind funds regarding commitments to the next fund?

Linda Tierala: Thank you. We have a few questions online as well. There is one regarding the Taaleri SolarWind IV fund. Have you received any indications from investors in previous SolarWind funds regarding commitments to the next fund?

Speaker #2: Nothing to communicate. Obviously, like I said, we are only in the initial preparatory phase at the moment, so nothing to say on that area.

Ilkka Laurila: Nothing to communicate. We are only initial preparatory phase at the moment, so nothing to say on that area.

Speaker #1: Okay, and then there's a question also regarding Garantia. The performance in Q2—the second quarter—was quite strong. So, how much of Garantia's growth is coming from markets outside Finland at the moment?

Linda Tierala: Okay. There is a question also regarding Garantia, and the performance in Q2 was quite strong. How much of Garantia's growth is coming from markets outside Finland at the moment?

Speaker #2: We haven't separated that, but obviously, if you take a look at the total insurance portfolio, still 80-something percent is deriving from the Finnish housing market.

Ilkka Laurila: We haven't separated that, but obviously if you take a look at the total insurance portfolio, still 80-something percent is deriving from the Finnish housing market. So that is clearly the most meaningful part of that. And the international activities, even though that is strategically important and the activity level is increasing and we have several new contracts that we have been able to underwrite during the quarter, the impact for the growth is still quite limited.

Speaker #2: So that is a clearly the most the international activities even though that is a strategically important and the activity level is increasing and we have a several new contracts that we have been able to underwrite during the quarter that is the impact for the growth is still quite limited.

Speaker #1: Thank you. Do we have any further questions here in the audience? If there are no further questions, then we will conclude today's webcast session.

Linda Tierala: Thank you. Do we have any further questions here in the audience? If there are no further questions, then we will conclude today's webcast session. So on behalf of everyone here from Taaleri, we'd like to thank you for your interest in Taaleri and for your participation both here in the audience and also online. And should you have any follow-up questions, you're more than welcome to reach out to any of us with those. And we continue to appreciate your interest in Taaleri and wish you a great day. Thank you.

Speaker #1: So, on behalf of everyone here from Taaleri, we'd like to thank you for your interest in Taaleri and for your participation, both here in the audience and also online.

Speaker #1: And should you have any follow-up questions, you're more than welcome to reach out to any of us with those. We continue to appreciate your interest in Taaleri and wish you a great day.

Speaker #1: Thank you.

Ilkka Laurila: Thank you.

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Q2 2026 Taaleri Oyj Earnings Call

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