Aventus Capital Inc. · TSXV:AVTS

Aventus Capital — The Westaim — Q1 2021 Earnings Presentation

28 slides from Aventus Capital's earnings presentation, May 20, 2021

  1. Slide 1: Q1 2021 Investor Presentation

    Q1 2021 Investor Presentation May 20, 2021

  2. 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

  3. Slide 3: Important Disclosures

    Important Disclosures Non-GAAP Measures Westaim Westaim uses both international financial reporting standards (as issued by the International Accounting Standards Board) (“IFRS”) and non-GAAP measures to assess performance. Westaim cautions readers about non-GAAP measures that do not have a standard

  4. Slide 4: Important Disclosures

    Important Disclosures Arena Investors The following is being provided solely in relation to Arena Investors, its funds and affiliates: Returns shown are unaudited. Past performance is not indicative or a reliable indicator of future performance. Actual results may vary. The information set forth her

  5. Slide 5: The Westaim Corporation

    The Westaim Corporation The Westaim Corporation Westaim is a publicly listed (TSXV:WED) 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 high qualit

  6. Slide 6: Q1 2021 Quarterly Operating Highlights

    Q1 2021 Quarterly Operating Highlights Westaim reports Q1 2021 earnings and growth across all businesses • Skyward Specialty’s Q1 Net Income was $13.6 million compared to Q1 2020 Net Loss of $48.1 million (Q1 2020 excluding unusual items – Net Loss of $13.8 million) • Continued improvement in underw

  7. Slide 7: Westaim Summary Quarterly Operating Results

    Westaim Summary Quarterly Operating Results • GAAP profit and comprehensive income in Q1 2021 was Operating result Q1 2021 Q4 2020 Q1 2020 $9.1 million ($0.06 per share) compared to a GAAP loss and comprehensive loss of $14.5 million (adjusted profit Income from investment in Arena FINCOs and ASOF $

  8. Slide 8: Westaim Summary Statement of Financial Position

    Westaim Summary Statement of Financial Position • Book value per share increased US$0.07 Q1 2021 or As at March 31, 2021 December 31, 2020 3.1% over Q4 2020 Assets Cash $8.6 $8.7 • In Q1 2021, the fair value of investments increased Income tax receivable 0.1 0.1 $10.1 million, which was $12.1 millio

  9. Slide 9: Westaim Book Value per Share: Three months ended March 31, 2021

    Westaim Book Value per Share: Three months ended March 31, 2021 $0.01 ($0.02) $0.05 $2.31 $0.03 $2.24 BVPS Income from Skyward Income from Arena FINCOs Income from Arena Westaim holding company BVPS December 31, 2020 Specialty and ASOF Investors net expenses March 31, 2021 Any terms not defined in t

  10. Slide 10: Company Update: Skyward Specialty Insurance

    SKYWARD SPECIALTY INSURANCE COMPANY UPDATE

  11. Slide 11: Skyward Specialty at a Glance

    SKYWARD SPECIALTY AT A GLANCE Business Overview Select Financial Metrics • A private, US-based specialty property and casualty insurer that (US$ millions) Q1 2021 FY 2020(1) writes on both an admitted and non-admitted basis Select Income Statement Metrics • Strategy focuses on building defensible po

  12. Slide 12: Summary Statements of Operations

    SUMMARY STATEMENTS OF OPERATIONS Quarter-to-date Q1 2021 Q1 2020 Written Premium Growth • Skyward Specialty is focused on being a disciplined gross line underwriter, Gross written premium (GWP) $237.8 $232.9 Net written premium (NWP) 109.8 99.9 earning an underwriting profit on a gross and net basis

  13. Slide 13: Summary Balance Sheets

    SUMMARY BALANCE SHEETS As at March 31, 2021 December 31, 2020 • Adjusted stockholders’ equity increased to $414.8 or 2.3% from Q4 2020 reflecting income of $13.6 million partially offset by $4.4 million of unrealized losses on our fixed Investments $822.5 $764.8 income portfolio recorded in OCI Cash

  14. Slide 14: Adjusted Stockholders' Equity: For the Three Months Ended March 31, 2021

    ADJUSTED STOCKHOLDERS' EQUITY: FOR THE THREE MONTHS ENDED MARCH 31, 2021 (1) $12.2 ($1.6) ($3.6) $0.1 ($4.4) $414.8 $6.6 $405.5 Adjusted stockholders' Underwriting Income Net Investment Interest and Income Tax Expense Employee Share Unrealized Loss on Adjusted stockholders' equity Income Amortizatio

  15. Slide 15: Conservative Investment Portfolio

    CONSERVATIVE INVESTMENT PORTFOLIO 1% • The total portfolio of approximately $814 million ($823 million net of a $9 million payable for securities sold) is comprised of core fixed income and short-term investments, cash and cash equivalents, 27% common and preferred equities, and alternative investme

  16. Slide 16: Seeing What's Possible

    March 31, 2021 Seeing What’s Possible

  17. Slide 17: About Arena Investors

    About Arena 17 • Global originator and underwriter of proprietary investments ABOU T ARENA INV ESTORS seeking to produce consistent and uncorrelated returns • Institutional scale and experience with transactions sizes typically $2.2B between $5 million – $50 million, which avoids competition with As

  18. Slide 18: Arena Investors – Well Positioned to Accelerate Growth

    Arena Investors – Well Positioned to Accelerate Growth 18 • Global senior staff in place Platform Fully • Infrastructure and entities fully established and operational Constructed • Platform of product offerings complete • In process to secure appropriate financing for capital pools • ~$2.75 billion

  19. Slide 19: Q1 2021 Quarterly Result Highlights

    Q1 2021 Quarterly Result Highlights 19 (dollars in millions) Q1 2021 Q4 2020 Q1 2020 Q1 2021 Results: • Net profit was $2.1 million for Q1 2021, compared to Recurring Income $2.8 million profit in Q4 2020 and a $1.5 million loss Management / Servicing Fees $ 6.4 $ 5.9 $ 5.0 in Q1 2020. Other Income

  20. Slide 20: Arena Fully Diversified Strategy

    Investment vehicles(1) 20 $2.2 B UNDER MANAGEMENT, $1.6 B DEPLOYED (1) ARENA FULLY DIVERSIFIED STRATEGY Permanent Capital (Arena FINCOs) EXCESS CAPACITY OPPORTUNITIES • Ar en a F in an c e $0.5 B , $0.2 B DEPLOYED • Ar en a O r ig in atio n $1.6 B , $1.4 B DEPLOYED Arena New Zealand Open-ended Everg

  21. Slide 21: Arena Investors – Performance

    Arena Investors – Performance(1) 21 Arena’s core investment strategy seeks to build a highly diversified and uncorrelated portfolio of investments. Consistent performance including stable performance during COVID-19. Since inception, Arena has also outperformed the LSTA Leveraged Loan 100 index on a

  22. Slide 22: Arena Investors – Assets Under Management Through 3/31/2021

    Arena Investors – Assets Under Management Through 3/31/2021(1) 22 $ 2,500 mm $130 $57 $2,167 $2,041 Arena Group’s assets $ 2,000 mm ($55) ($6) under management (including undrawn $ 1,500 mm commitments) grew $1,251 modestly over the first $1,024 quarter. $ 1,000 mm $760 From December 31, 2015 to Dec

  23. Slide 23: Arena Investors – Deal Structure Aligns Arena Management and Westaim

    Arena Investors – Deal Structure Aligns Arena 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 principal elemen

  24. Slide 24: Arena

    fs ARENA

  25. Slide 25: Arena FINCOs: Summary of Operating Results

    Arena FINCOs: Summary of Operating Results Q1 2021 Q4 2020 Q1 2020 • Proceeds from the bond offering continue to be Investment income $1.0 $0.2 $2.4 invested, with Arena FINCOs total investments Net gain (losses) on investments 9.1 3.5 (4.4) increasing 12% in the quarter from $180.3 million at Q4 20

  26. Slide 26: Arena FINCOs: Summary of Net Assets

    Arena FINCOs: Summary of Net Assets Fair Value March 31, 2021 December 31, 2020 • The Arena FINCOs were able to deploy Cash and cash equivalents $26.5 $21.4 Due from brokers, net (20.3) (5.5) cash to investments in the quarter, but the Investments: cash balance remained high at March 31, Corporate P

  27. Slide 27: Arena FINCOs: Portfolio breakdown as at March 31, 2021

    Arena FINCOs: Portfolio breakdown as at March 31, 2021 Equity / Other Debt Corporate REO / Securities 59% Private Credit Hard 27% 26% Assets (1) 41% Consumer Assets 7% Structured Finance Real Estate and Real 3% Estate Private Credit Commercial and 18% Industrial Assets 19% Arena FINCOs held 221 posi

  28. Slide 28: The Westaim Corporation Contact Details

    The Westaim Corporation 70 York Street, Suite 1700 Toronto, Ontario Canada M5J 1S9 www.westaim.com [email protected]

The Westaim — Q1 2021 Earnings Presentation on 6ix