Aventus Capital Inc. · TSXV:AVTS
Aventus Capital — The Westaim — Q2 2021 Earnings Presentation
30 slides from Aventus Capital's earnings presentation, Aug 19, 2021
Slide 1: Q2 2021 Investor Presentation
Q2 2021 Investor Presentation August 19, 2021
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: 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
Slide 4: Important Disclosures
Important Disclosures Arena Investors The following is being provided solely in relation to Arena Investors, LP, its funds, subsidiaries and affiliates: Returns shown are unaudited. Past performance is not indicative or a reliable indicator of future performance. Actual results may vary. The informa
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
Slide 6: Q2 2021 Quarterly Operating Highlights
Q2 2021 Quarterly Operating Highlights Westaim reports consecutive quarters of earnings and growth across all businesses • Skyward Specialty’s Q2 2021 Net Income was $13.4 million (excluding unusual items – Net Income of $14.9 million) compared to Q2 2020 Net Income of $0.9 million (excluding unusua
Slide 7: Westaim Summary Quarterly Operating Results
Westaim Summary Quarterly Operating Results Operating result Three months Six months ended June 30 ended June 30 • GAAP profit and comprehensive income in Q2 2021 was $10.9 million ($0.08 per share) compared to a 2021 2020 2021 2020 GAAP loss and comprehensive loss of ($0.1) million Income from inve
Slide 8: Westaim Summary Statement of Financial Position
Westaim Summary Statement of Financial Position As at June 30, 2021 March 31, 2021 December 31, 2020 • Book value per share increased US$0.07 (+3.0%) in Assets Q2 2021 and US$0.14 (+6.3%) YTD Q2 2021 Cash $9.7 $8.6 $8.7 Income tax receivable 0.1 0.1 0.1 Other assets 1.5 1.5 1.6 • In Q2 2021, the fai
Slide 9: Westaim Book Value per Share: Three months ended June 30, 2021
Westaim Book Value per Share (US$): Three months ended June 30, 2021 $0.01 $2.38 $0.01 $0.02 $0.03 $2.31 BVPS Income from Skyward Income from Arena FINCOs Income from Arena Westaim holding company BVPS March 31, 2021 Specialty and ASOF Investors net recovery June 30, 2021 Any terms not defined in th
Slide 10: Westaim Book Value per Share: Six months ended June 30, 2021
Westaim Book Value per Share (US$): Six months ended June 30, 2021 $0.02 ($0.01) $2.38 $0.07 $0.06 $2.24 BVPS Income from Skyward Income from Arena FINCOs Income from Arena Westaim holding company BVPS December 31, 2020 Specialty and ASOF Investors net expenses June 30, 2021 Any terms not defined in
Slide 11: Company Update: Skyward Specialty Insurance
SKYWARD SPECIALTY INSURANCE COMPANY UPDATE
Slide 12: Skyward Specialty at a Glance
SKYWARD SPECIALTY AT A GLANCE Business Overview Select Financial Metrics • A private, US-based specialty property and casualty insurer that (US$ millions) YTD FY Q2 2021(1) 2020(1) writes on both an admitted and non-admitted basis Select Income Statement Metrics • Strategy focuses on building defens
Slide 13: Summary Statements of Operations
SUMMARY STATEMENTS OF OPERATIONS Three months ended Six months ended June 30 June 30 2021 2020 2021 2020 Written Premium Growth Gross written premium (GWP) $262.7 $253.0 $500.5 $485.8 • Skyward Specialty is focused on being a disciplined gross line Net written premium (NWP) $136.3 $110.9 $246.1 $210
Slide 14: Summary Balance Sheets
SUMMARY BALANCE SHEETS As at June 30, 2021 March 31, 2021 December 31, 2020 • Adjusted stockholders’ equity increased to $429.1 million or 5.8% from Q4 2020 reflecting income of $27.0 million partially offset by $4.0 million of Investments $856.6 $822.5 $764.8 unrealized losses on fixed income inves
Slide 15: Adjusted Stockholders' Equity: Three Months Ended June 30, 2021
ADJUSTED STOCKHOLDERS' EQUITY: FOR THE THREE MONTHS ENDED JUNE 30, 2021 (1) $15.3 ($1.9) $0.4 429.1 $0.5 $414.8 Adjusted stockholders' equity Employee shareholder activity Net comprehensive income Goodwill impairment Tax impact of Adjusted stockholders' equity March 31, 2021 Goodwill impairment June
Slide 16: Adjusted Stockholders' Equity: Six Months Ended June 30, 2021
ADJUSTED STOCKHOLDERS' EQUITY: FOR THE SIX MONTHS ENDED JUNE 30, 2021 (1) $24.5 ($1.9) $0.4 429.1 $405.5 $0.6 Adjusted stockholders' equity Employee shareholder activity Net comprehensive income Goodwill impairment Tax impact of Goodwill Adjusted stockholders' equity December 31, 2020 impairment Jun
Slide 17: Conservative Investment Portfolio
CONSERVATIVE INVESTMENT PORTFOLIO • The total portfolio of approximately $857 million is comprised of 1% core fixed income and short-term investments, cash and cash 19% equivalents, common and preferred equities, and alternative investments(1) • Conservative investment portfolio with a 4.3 duration
Slide 18: Seeing What's Possible
June31,30, March 2021 2021 Seeing What’s Possible
Slide 19: About Arena Investors
About Arena Investors(1) 19 • Global originator and underwriter of proprietary investments ABOUT ARENA INVESTORS seeking to produce consistent and uncorrelated returns • Institutional scale and experience with transaction sizes between $2.6B $5 million – $50 million, which avoids competition with gl
Slide 20: Arena Investors – Well Positioned to Accelerate Growth
Arena Investors – Well Positioned to Accelerate Growth 20 • 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 • ~$3B deployed
Slide 21: Q2 2021 Quarterly Result Highlights
Q2 2021 Quarterly Result Highlights 21 YTD YTD Q2 2021 Results: (dollars in millions) Q2 2021 Q2 2020 Q2 2021 Q2 2020 • Net profit was $4.2 million for Q2 2021 and $6.3 million for YTD Q2 2021, compared to a ($0.8) million loss in Recurring Income Q2 2020 and a ($2.3) million loss for YTD Q2 2020. M
Slide 22: Arena Fully Diversified Investment Vehicles
Investment vehicles (1), (2) 22 $ 2 . 6 B U N D E R M A N A G E M E N T, $ 1 . 7 B D E P LOY E D * Permanent Capital (Arena F INCOs) EXCESS CAPACIT Y OPPO RT UN IT IES S T R AT E G Y $ 1 . 9 B , $ 1 . 5 B D E PLOY E D * • Arena Finance $ 0 . 5 5 B, $ 0 . 2 B D E PLOYED * • Arena Origination Company
Slide 23: Arena Investors – Performance
Arena Investors – Performance (1) 23 Arena’s core investment strategy seeks to build a highly diversified and uncorrelated portfolio of investments. Consistent performance including stable performance during COVID-19. Our five-year track record has also outperformed the LSTA Leveraged Loan 100 index
Slide 24: Arena Investors – Assets Under Management
Arena Investors – Assets Under Management (1) 24 $2,615 $ 2,500 mm $78 $2,320 $98 Arena Group’s assets under $2,166 $2,041 ($21) ($1) management (including $ 2,000 mm undrawn commitments) grew $154 million in Q2 and $ 1,500 mm an additional $295 million $1,251 through August 2, 2021. $1,024 $ 1,000
Slide 25: 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
Slide 26: Arena FINCOs
fs ARENA
Slide 27: Arena FINCOs: Summary of Operating Results
Arena FINCOs: Summary of Operating Results Three months ended Six months ended June 30, 2021 June 30, 2021 • Proceeds from the bond offering continue to be 2021 2020 2021 2020 invested, with Arena FINCOs total investments Investment income $2.0 $1.2 $3.0 $3.6 increasing 17.9% in YTD Q2 2021 from $18
Slide 28: Arena FINCOs: Summary of Net Assets
Arena FINCOs: Summary of Net Assets Fair Value June 30, 2021 March 31, 2021 December 31, 2020 Cash and cash equivalents $22.3 $26.5 $21.4 • The Arena FINCOs were able to Due from brokers, net (24.3) (20.3) (5.5) Investments: deploy cash to investments in Corporate Private Credit 53.8 52.2 46.2 the q
Slide 29: Arena FINCOs: Portfolio breakdown as at June 30, 2021
Arena FINCOs: Portfolio breakdown as at June 30, 2021 Equity / Corporate REO / Other Private Credit Hard Securities 26% Assets Debt 29% 43% (1) 57% Consumer Assets 6% Structured Real Estate and Real Finance Estate Private Credit 2% 18% Commercial and Industrial Assets 19% Arena FINCOs held 240 posit
Slide 30: The Westaim Corporation
The Westaim Corporation 70 York Street, Suite 1700 Toronto, Ontario Canada M5J 1S9 www.westaim.com [email protected]