Aventus Capital Inc. · TSXV:AVTS
Aventus Capital — The Westaim — Q2 2023 Earnings Presentation
34 slides from Aventus Capital's earnings presentation, Aug 15, 2023
Slide 1: Q2 2023 Investor Presentation
Q2 2023 Investor Presentation August 15, 2023
Slide 2: Disclaimer
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
Disclaimer Safe Harbour Statement Supplementary financial measures concerning the Arena FINCOs and Arena Investors (the “Arena Supplementary Financial Measures”) contained in this presentation are unaudited and have been derived from the unaudited consolidated financial statements of Arena FINCOs an
Slide 4: Important Disclosures
Important Disclosures Non-GAAP Measures Westaim Westaim reports its 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”) measures to
Slide 5: Important Disclosures
Important Disclosures Arena Investors With respect to the section on Arena Investors 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
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 Q2 2023 Quarterly Operating Highlights
Westaim Q2 2023 Quarterly Operating Highlights Westaim's Q2 2023 earnings continue to be driven by gains on its Skyward Specialty ownership • Q2 2023 Net Income attributable to AIGH (100%) was $1.5 million compared to Q2 2022 Net Income attributable to AIGH of $0.1 million; YTD 2023 Net Income attri
Slide 8: Westaim Summary Quarterly Operating Results
Westaim Summary Quarterly Operating Results • Profit and comprehensive income for Q2 2023 was $31.3 Three months Six months million ($0.22 diluted earnings per share) compared to a profit ended June 30 ended June 30 and comprehensive loss of $1.6 million ($0.01 diluted loss per (Amounts in millions
Slide 9: Westaim Summary Statement of Financial Position
Westaim Summary Statement of Financial Position As at June 30, 2023 March 31, 2023 December 31, 2022 • Book value per fully diluted share increased $0.81 (31.9%) to (Amounts in millions of US$ except per share data) $3.37 at June 30, 2023 from $2.56 at December 31, 2022. Book value per fully diluted
Slide 10: Westaim Diluted Earnings per Share (US$): Three months ended June 30, 2023
Westaim Diluted Earnings per Share (US$): Three months ended June 30, 2023 10
Slide 11: Westaim Book Value per Share (US$): Three months ended June 30, 2023
Westaim Book Value per Share (US$): Three months ended June 30, 2023 11
Slide 12: Westaim Diluted Earnings per Share (US$): Six months ended June 30, 2023
Westaim Diluted Earnings per Share (US$): Six months ended June 30, 2023 12
Slide 13: Westaim Book Value per Share (US$): Six months ended June 30, 2023
Westaim Book Value per Share (US$): Six months ended June 30, 2023 13
Slide 14: Arena Investors Global Holdings overview
All data is as of June 30, 2023 unless otherwise specified Arena Investors Global Holdings, 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 15: About Arena Investors
About Arena Investors 15 • Credit-oriented, asset backed-orientated investments, but not “traditional private credit”. ABOUT ARENA • Broad Platform – capabilities across Corporate, Real Estate, Structured Finance, and Corporate INVESTORS ( 1 ) Securities allow the firm to find the most compelling op
Slide 16: Arena Investors – Key Highlights
Arena Investors – Key Highlights 16 • Arena Investors 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 system
Slide 17: Arena Investors – Q2 2023 Quarterly Result Highlights
Arena Investors – Q2 2023 Quarterly Result Highlights 17 Q2 2023 Results: Three Months Ended June 30 Six Months Ended June 30 • Net income attributable to AIGH for Q2 2023 was $1.5 (Currency amounts in millions of US$) 2023 2022 2023 2022 million (Q2 2022: $0.1 million) Management fees $ 7.7 $ 8.1 $
Slide 18: Arena Investors – Investment vehicles
Arena Investors – Investment vehicles (1) 18 $ 3 . 3 B AU M (2) Permanent Capital (Arena F INCOs) EXCESS CAPACIT Y OPPO RT UN IT IES • Arena Finance $0.9B A R E N A F U L LY D I V E R S I F I E D • Arena Origination Company New Zealand S T R AT E G Y $ 2 . 1 B Open-ended Evergreen Funds • Arena Spec
Slide 19: Arena Investors – Investing: Performance & Deployment
Arena Investors – Investing: Performance & Deployment 19 • Arena Investors’ strategies have consistently performed well on an outright and relative basis. • The returns below cover a period which included the COVID-19 pandemic, a surge in global inflation, steep increases in interest rates and a per
Slide 20: Arena Investors – AUM Through June 30, 2023
Arena Investors – AUM Through June 30, 2023 20 Arena Investors’ AUM (including undrawn commitments) were $3.3B at June 30, 2023. From December 31, 2015 to June 30, 2023, AUM has grown at a CAGR of ~44%. In 2023, Arena is launching/has launched additional multi-strategy drawdown funds, additional acc
Slide 21: Arena Investors – Deal Structure Aligns Management and Westaim
Arena Investors – Deal Structure Aligns Arena Investors Management and Westaim • Arena Investors was founded by Dan Zwirn and Westaim in August 2015 under an arrangement designed to align Arena Investors’ senior management interests very tightly with those of Westaim and its shareholders. The princi
Slide 22: Arena
fs ARENA
Slide 23: Arena FINCOs: Summary of Operating Results
Arena FINCOs: Summary of Operating Results Three months ended Six months ended • Q2 2023 Net Loss was $3.3 million (-2.1% net June 30 June 30 investment return) compared to Q2 2022 Net Income (Currency amounts in millions of US$) 2023 2022 2023 2022 of $3.7 million (2.2% net investment return) Inves
Slide 24: Arena FINCOs: Summary of Net Assets
Arena FINCOs: Summary of Net Assets (Currency amounts in millions of US$) Fair Value June 30, 2023 March 31, 2023 December 31, 2022 • The combination of the secured notes and revolving Cash and cash equivalents $15.4 $20.4 $16.7 credit facility are being utilized for efficient treasury Investments:
Slide 25: Arena FINCOs: Portfolio breakdown as at June 30, 2023
Arena FINCOs: Portfolio breakdown as at June 30, 2023 Equity / REO / Hard (1) Other Securities Corporate Assets 20% Private 49% Investments 26% Debt 51% Structured Finance and Assets Real Estate 29% Investments 25% Arena FINCOs held 237 positions at June 30, 2023 compared to 297 positions at Decembe
Slide 26: Company Update: Skyward Specialty Insurance
SKYWARD SPECIALTY INSURANCE COMPANY UPDATE
Slide 27: Skyward Specialty at a Glance
SKYWARD SPECIALTY AT A GLANCE Business Overview Select Financial Metrics • A rapidly growing and innovative specialty insurance company, YTD FY (US$ millions) delivering commercial property and casualty products and solutions on 2023(1) 2022(1) a non-admitted and admitted basis Select Income Stateme
Slide 28: Skyward Specialty Trading Price and Volume
SKYWARD SPECIALTY TRADING PRICE AND VOLUME • At December 31, 2022, Westaim's estimated fair value of Skyward Specialty’s fully diluted common shares, using multiple valuation techniques, was determined to be $15.00 per share • At June 30, 2023, the Westaim’s estimated fair value of Skyward Specialty
Slide 29: Skyward Specialty - Summary Statements of Operations
SKYWARD SPECIALTY - SUMMARY STATEMENTS OF OPERATIONS (1) (Currency amounts in millions of US$) Three months ended June 30 Six months ended June 30 Written Premium Growth and Revenue As at 2023 2022 2023 2022 • GWP increased 29.4% to $422.0 million in Q2 2023 vs. $326.2 million in Q2 2022; GWP increa
Slide 30: Skyward Specialty - Summary Balance Sheets
SKYWARD SPECIALTY - SUMMARY BALANCE SHEETS (Currency amounts in millions of US$) As at June 30, 2023 March 31, 2023 December 31, 2022 Assets • Total stockholders’ equity increased to Investments $1,290.8 $1,290.3 $1,082.4 $522.7 million or 24.0% from Q4 2022; Cash and cash equivalents 67.5 41.2 45.4
Slide 31: Appendix
SKYWARD SPECIALTY INSURANCE APPENDIX
Slide 32: Appendix – Skyward Specialty Supplementary Financial Measures
APPENDIX – SKYWARD SPECIALTY SUPPLEMENTARY FINANCIAL MEASURES (1) • Adjusted operating income (loss) – Skyward Specialty define 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
Slide 33: Appendix – Skyward Specialty Supplementary Financial Measures
APPENDIX – SKYWARD SPECIALTY SUPPLEMENTARY FINANCIAL MEASURES (1) • Adjusted Loss Ratio / Adjusted Combined Ratio – Skyward Specialty define adjusted loss ratio and adjusted combined ratio as the corresponding ratio (calculated in accordance with GAAP), excluding losses and LAE related to the LPT an
Slide 34: The Westaim Corporation contact details
The Westaim Corporation 70 York Street, Suite 1700 Toronto, Ontario Canada M5J 1S9 www.westaim.com [email protected]