Aventus Capital Inc. · TSXV:AVTS
Aventus Capital — The Westaim — Q1 2023 Earnings Presentation
33 slides from Aventus Capital's earnings presentation, May 16, 2023
Slide 1: Q1 2023 Investor Presentation
Q1 2023 Investor Presentation May 16, 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 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 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 2023 Quarterly Operating Highlights
Westaim Q1 2023 Quarterly Operating Highlights Public market support for Skyward Specialty lifts Q1 2023 earnings for Westaim Skyward Specialty listed on NASDAQ and Arena Investors continued to achieve solid investment returns • Skyward Specialty’s Net Income (100%) was $15.6 million in Q1 2023 comp
Slide 8: Westaim Summary Quarterly Operating Results
Westaim Summary Quarterly Operating Results • GAAP profit and comprehensive income in Q1 2023 was $94.5 million ($0.66 Three months diluted earnings per share) compared to a GAAP profit and comprehensive ended March 31 income of $3.5 million ($0.02 diluted earnings per share) in Q1 2022 (Amounts in
Slide 9: Westaim Summary Statement of Financial Position
Westaim Summary Statement of Financial Position As at March 31, 2023 December 31, 2022 • Book value per fully diluted share increased $0.65 (25.4%) to $3.21 at (Amounts in millions of US$ except per share data) March 31, 2023 from $2.56 at December 31, 2022; Book value per fully diluted share increa
Slide 10: Westaim Diluted Earnings per Share (US$): Three months ended March 31, 2023
Westaim Diluted Earnings per Share (US$): Three months ended March 31, 2023 $0.69 ($0.02) $0.01 ($0.02) $0.66 Income from Skyward Specialty Loss from Arena FINCOs and Income from Arena Investors Westaim holding company net Fully diluted EPS ASOF expenses (excluding RSU March 31, 2023 expense) 10
Slide 11: Westaim Book Value per Share (US$): Three months ended March 31, 2023
Westaim Book Value per Share (US$): Three months ended March 31, 2023 11
Slide 12: Company Update: Skyward Specialty Insurance
SKYWARD SPECIALTY INSURANCE COMPANY UPDATE
Slide 13: Skyward Specialty at a Glance
SKYWARD SPECIALTY AT A GLANCE Business Overview Select Financial Metrics • A rapidly growing and innovative specialty insurance company, Q1 FY (US$ millions) delivering commercial property and casualty products and solutions on 2023(1) 2022(1) a non-admitted and admitted basis Select Income Statemen
Slide 14: Skyward Specialty Trading Price and Volume
SKYWARD SPECIALTY TRADING PRICE AND VOLUME $25.00 4.50 In January 2023, Skyward Specialty listed March 31, 2023, Skyward Specialty trading $24.00 on the NASDAQ under the ticker at $21.87 per common share 4.00 symbol “SKWD” at $15.00 per common share 3.50 $23.00 3.00 Volume (million) $22.00 2.50 Pric
Slide 15: Skyward Specialty - Summary Statements of Operations
SKYWARD SPECIALTY - SUMMARY STATEMENTS OF OPERATIONS (1) (Currency amounts in millions of US$) Three months ended March 31 As at 2023 2022 Written Premium Growth and Revenue Revenues • GWP increased 27.5% to $360.5 million in Q1 2023 vs. $282.6 million in Q1 2022; GWP increase was Net earned premium
Slide 16: Skyward Specialty - Summary Balance Sheets
SKYWARD SPECIALTY - SUMMARY BALANCE SHEETS (Currency amounts in millions of US$) As at March 31, 2023 December 31, 2022 Assets • Total stockholders’ equity increased to Investments $1,290.3 $1,082.4 $507.1 million or 20.3% from Q4 2022; Cash and cash equivalents 41.2 45.4 increase in stockholders’ e
Slide 17: Arena Investors Group Holdings global financial institution
All data is as of March 31, 2023 unless otherwise specified Arena Investors Group 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 18: About Arena Investors
About Arena Investors 18 • 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 19: Arena Investors – Key Highlights
Arena Investors – Key Highlights 19 • 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 20: Arena Investors – Q1 2023 Quarterly Result Highlights
Arena Investors – Q1 2023 Quarterly Result Highlights 20 Three Months Ended March 31 Q1 2023 Results: 1 (dollars in millions) 2023 2022 • Net income for Q1 2023 was $2.0 million (Q1 2022: $9.4 Recurring Income million) Management Fees $ 7.8 $ 7.5 • Management fees for Q1 2023 was $7.8 million (Q1 20
Slide 21: Arena Investors – Investment vehicles
Arena Investors – Investment vehicles (1) 21 $ 3 . 4 B AU M (2) Permanent Capital (Arena F INCOs) EXCESS CAPACIT Y OPPO RT UN IT IES • Arena Finance LLC $0.9B A R E N A F U L LY D I V E R S I F I E D • Arena Origination Co., LLC New Zealand S T R AT E G Y $ 2 . 2 B Open-ended Evergreen Funds • Arena
Slide 22: Arena Investors – Performance
Arena Investors – Performance (1) 22 Arena Investors’ 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 and since inception track records have also outperformed th
Slide 23: Arena Investors – AUM through April 1, 2023
Arena Investors – AUM through April 1, 2023 23 Arena Investors’ AUM (including undrawn commitments) were $3.4B at April 1, 2023. From December 31, 2015, to April 1, 2023, AUM has grown at a compound annual growth rate of ~46%. In 2023, Arena Investors is contemplating new offerings across additional
Slide 24: Arena Investors – Deal Structure Aligns Arena Investors 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 25: Arena
fs ARENA
Slide 26: Arena FINCOs: Summary of Operating Results
Arena FINCOs: Summary of Operating Results Three months ended • Q1 2023 Net Loss was $2.7 million (-1.7% net investment return) March 31 compared to Q1 2022 Net Income of $2.6 million (1.5% net investment (Currency amounts in millions of US$) 2023 2022 return) Investment (loss) income ($1.0) $1.3 •
Slide 27: Arena FINCOs: Summary of Net Assets
Arena FINCOs: Summary of Net Assets (Currency amounts in millions of US$) Fair Value March 31, 2023 December 31, 2022 • The combination of the secured notes and revolving credit Cash and cash equivalents $20.4 $16.7 facility are being utilized for efficient treasury management, Investments: limiting
Slide 28: Arena FINCOs: Portfolio breakdown as at March 31, 2023
Arena FINCOs: Portfolio breakdown as at March 31, 2023 Equity / REO / Hard Other Securities Assets (1) 21% Corporate 51% Private Investments 29% Debt 49% Structured Finance and Assets 27% Real Estate Investments 23% Arena FINCOs held 238 positions at March 31, 2023 compared to 297 positions at Decem
Slide 29: Appendix
SKYWARD SPECIALTY INSURANCE APPENDIX
Slide 30: Appendix – Skyward Specialty Supplementary Financial Measures
APPENDIX – SKYWARD SPECIALTY SUPPLEMENTARY FINANCIAL MEASURES (1) • Adjusted operating income (loss) – 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
Slide 31: 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 32: Appendix – Skyward Specialty Supplementary Financial Measures
APPENDIX – SKYWARD SPECIALTY SUPPLEMENTARY FINANCIAL MEASURES (1) • Adjusted Return on Equity - The following table provides a reconciliation of adjusted return on equity to return on equity for the periods ended March 31, 2023 and 2022: Three months ended March 31 (Currency amounts in millions of U
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]