Aventus Capital Inc. · TSXV:AVTS
Aventus Capital — The Westaim — Q1 2024 Earnings Presentation
33 slides from Aventus Capital's earnings presentation, May 14, 2024
Slide 1: Q1 2024 Investor Presentation
Q1 2024 Investor Presentation May 14, 2024
Slide 2: Disclaimer - Safe Harbour Statement
Disclaimer Safe Harbour Statement This document and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole or in part either directly or indirectly without the prior written consent of each of The Westaim Corporation (“Westaim” or the “Corporation” or t
Slide 3: Disclaimer - Safe Harbour Statement
Disclaimer Safe Harbour Statement Supplementary financial measures concerning the Arena FINCOs and Arena (the “Arena Supplementary Financial Measures”) contained in this presentation are unaudited and have been derived from the unaudited consolidated financial statements of Arena FINCOs and Arena fo
Slide 4: Important Disclosures
Important Disclosures Non-GAAP Measures Westaim Westaim reports its interim consolidated financial statements using Generally Accepted Accounting Principles (“GAAP”) and accounting policies consistent with IFRS. Westaim uses both IFRS and non-generally accepted accounting principles (“non-GAAP”) mea
Slide 5: Important Disclosures
Important Disclosures Arena With respect to the section on Arena the information therein is being provided solely in relation to the management company and the investment manager, including their funds, subsidiaries and affiliates. Returns shown are unaudited. Past performance is not indicative or a
Slide 6: The Westaim Corporation
The Westaim Corporation The Westaim Corporation Westaim is a publicly listed (TSXV:WED) Canadian investment holding company specializing in providing long-term capital to businesses operating primarily within the global financial services industry. Our focus has been, and continues to be, to seek hi
Slide 7: Westaim Q1 2024 Operating Highlights
Westaim Q1 2024 Operating Highlights Westaim’s Q1 2024 earnings driven by gains from all three of its businesses • Q1 2024 Net Income attributable to AIGH (100%) was $1.2 million compared to Q1 2023 Net Income attributable to AIGH of $2.0 million(1) • Committed AUM was $3.4 billion at March 31, 2024
Slide 8: Westaim Summary Q1 2024 Operating Results
Westaim Summary Q1 2024 Operating Results Three months • Westaim’s profit and comprehensive income for Q1 2024 ended March 31 was $23.3 million ($0.17 diluted earnings per share) (Amounts in millions of US$ except per share data) 2024 2023 compared to a profit and comprehensive income of $94.5 Incom
Slide 9: Westaim Summary Statement of Financial Position
Westaim Summary Statement of Financial Position As at March 31, 2024 December 31, 2023 • Book value per fully diluted share increased $0.19 (5.0%) to $4.02 (Amounts in millions of US$ except per share data) at March 31, 2024 from $3.83 at December 31, 2023. Book value Assets per fully diluted share
Slide 10: Westaim Diluted Earnings per Share: Three months ended March 31, 2024
Westaim Diluted Earnings per Share (US$): Three months ended March 31, 2024 $0.01 - - ($0.02) $0.18 $0.17 Income from Skyward Income from Arena FINCOs Income from Westaim's net holding Income tax expense Fully diluted EPS Specialty and ASOF Arena company expenses three months ended March (excluding
Slide 11: Westaim Book Value per Share: Three months ended March 31, 2024
Westaim Book Value per Share (US$): Three months ended March 31, 2024 $0.18 $0.01 - - ($0.02) $0.02 $4.02 $3.83 Fully diluted BVPS Income from Income from Income from Westaim holding Income tax Favorable impact Fully diluted BVPS December 31, 2023 Skyward Arena FINCOs Arena company net expenses expe
Slide 12: AIGH global financial institution overview
All data is as of March 31, 2024 unless otherwise specified AIGH, including its joint ventures and affiliates, is a global financial institution with over 150 people across 8 global offices and operating in over 20 countries
Slide 13: About Arena
About Arena 13 • Credit-oriented, asset backed-orientated investments, but not “traditional private credit”. ABOU T ARENA ( 1 ) • Broad Platform – capabilities across Corporate, Real Estate, Structured Finance, and Corporate Securities allow the firm to find the most compelling opportunities across
Slide 14: Arena – Key Highlights
Arena – Key Highlights 14 • Arena is a growing global financial institution • Mandate flexibility and diversification contribute to consistency across cycles Differentiated Approach • Proprietary sourcing and global infrastructure with a focus on small size • Servicing and systems that govern proces
Slide 15: Arena – Q1 2024 Quarterly Result Highlights
Arena – Q1 2024 Quarterly Result Highlights 15 Three months ended March 31, (dollars in millions) 2024 2023 Q1 2024 Results: Arena Investors Management fees $ 7.3 $ 7.8 • Net income for Q1 2024 was $1.2 million (Q1 2023: $2.0 million) Asset servicing fees 2.9 2.7 Other income 1.3 0.2 • Management fe
Slide 16: Arena – Investment Vehicles
Arena – Investment vehicles (1) 16 $ 3 . 4 B AU M (2) Permanent Capital (Arena FINCOs) EXCESS CA PACI T Y OPP ORTUNI TI ES • Arena Finance $1.0B A R E N A F U L LY D I V E R S I F I E D • Arena Origination Company Open-ended Evergreen Funds New Zealand Real Estate Credit S T R AT E G Y $ 2 . 1 B • A
Slide 17: Arena – Investing: Performance & Deployment
Arena – Investing: Performance & Deployment 17 • The following table presents the performance data for the significant drawdown funds and accounts: As of March 31, 2024 Year of Original Capital Capital Invested Realized Unrealized Total MoIC2 IRR3 Primary Investment AUM ($ in millions) inception Com
Slide 18: Arena – Investing: Performance & Deployment
Arena – Investing: Performance & Deployment 18 • The following table presents the performance data for the significant open-ended funds and Stable Income strategies: As of March 31, 2024 Returns (%) Since Inception Year of Quarter-to-date Year-to-date Primary Investment Strategy AUM (Annualized) inc
Slide 19: Arena – AUM Through March 31, 2024
Arena – AUM Through March 31, 2024 19 • Arena’s AUM (including undrawn commitments) were $3.4B at March 31, 2024. From December 31, 2015, to March 31, 2024, AUM has grown at a CAGR of ~39%. AUM temporarily decreased due to the return of capital from vehicles that are in their redemption periods rela
Slide 20: Arena – Deal Structure Aligns Arena Management and Westaim
Arena – Deal Structure Aligns Arena Management and Westaim • Arena was founded by Dan Zwirn and Westaim in August 2015 under an arrangement designed to align Arena’s senior management interests very tightly with those of Westaim and its shareholders. The principal elements of the arrangement include
Slide 21: Arena FINCOs
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Slide 22: Arena FINCOs: Summary of Operating Results
Arena FINCOs: Summary of Operating Results Three months ended March 31 • Q1 2024 Net Profit was $1.3 million (0.9% net investment return) compared to Q1 2023 Net Loss (Currency amounts in millions of US$) 2024 2023 of $2.7 million (-1.7% net investment return) Investment income (loss) $2.0 ($1.0) Ne
Slide 23: Arena FINCOs: Summary of Net Assets
Arena FINCOs: Summary of Net Assets (Currency amounts in millions of US$) Fair Value March 31, 2024 December 31, 2023 • The combination of the secured notes and revolving credit Cash and cash equivalents $6.8 $27.3 facility are being utilized for efficient treasury management and Investments: limiti
Slide 24: Arena FINCOs: Portfolio breakdown as at March 31, 2024
Arena FINCOs: Portfolio breakdown as at March 31, 2024 Equity / REO / Other Securities Corporate Hard (1) 18.1% Private Assets Investments 49.5% Debt 26.1% 50.5% Structured Finance and Assets 28.2% Real Estate Investments 27.6% Arena FINCOs held 225 positions at March 31, 2024 compared to 221 positi
Slide 25: Company Update: Skyward Specialty Insurance
SKYWARD SPECIALTY INSURANCE COMPANY UPDATE
Slide 26: Skyward Specialty at a Glance
SKYWARD SPECIALTY AT A GLANCE Business Overview Select Financial Metrics • A rapidly growing and innovative specialty insurance company, Q1 FY (US$ millions) delivering commercial property and casualty products and solutions on 2024(1) 2023(1) a non-admitted and admitted basis Select Income Statemen
Slide 27: Skyward Specialty Trading Price and Volume
SKYWARD SPECIALTY TRADING PRICE AND VOLUME 4.50 March 31, 2024, Skyward Specialty trading In January 2023, Skyward Specialty listed at $37.41 per common share on the NASDAQ under the ticker 4.00 symbol “SKWD” at $15.00 per common share $36.00 3.50 Stock Price (US$) Volume (million) 3.00 $31.00 2.50
Slide 28: Skyward Specialty - Summary Statements of Operations
SKYWARD SPECIALTY - SUMMARY STATEMENTS OF OPERATIONS (1) (Currency amounts in millions of US$) Three months ended March 31 As at 2024 2023 Written Premium Growth and Revenue Revenues • GWP increased 27.2% to $458.6 million in Q1 2024 vs. $360.5 million in Q1 2023; Q1 2024 GWP was Net earned premiums
Slide 29: Skyward Specialty - Summary Balance Sheets
SKYWARD SPECIALTY - SUMMARY BALANCE SHEETS (Currency amounts in millions of US$) As at Assets March 31, 2024 December 31, 2023 • Total Skyward Specialty stockholders’ equity increased Investments $1,673.2 $1,613.7 to $692.3 million or 4.7% from Q4 2023, primarily due Cash and cash equivalents 85.1 6
Slide 30: Appendix
SKYWARD SPECIALTY INSURANCE APPENDIX
Slide 31: Appendix – Skyward Specialty Supplementary Financial Measures
APPENDIX – SKYWARD SPECIALTY SUPPLEMENTARY FINANCIAL MEASURES (1) • Adjusted operating income – Skyward Specialty defines adjusted operating income (loss) as net income (loss) excluding the impact of certain items that may not be indicative of underlying business trends, operating results, or future
Slide 32: Appendix – Skyward Specialty Supplementary Financial Measures
APPENDIX – SKYWARD SPECIALTY SUPPLEMENTARY FINANCIAL MEASURES (1) • Adjusted Loss Ratio / Adjusted Combined Ratio – Skyward Specialty defines adjusted loss ratio and adjusted combined ratio as the corresponding ratio (calculated in accordance with GAAP), excluding losses and LAE related to the LPT a
Slide 33: The Westaim Corporation contact details
The Westaim Corporation 70 York Street, Suite 1700 Toronto, Ontario Canada M5J 1S9 www.westaim.com [email protected]