Aventus Capital Inc. · TSXV:AVTS
Aventus Capital — The Westaim — Q1 2022 Earnings Presentation
29 slides from Aventus Capital's earnings presentation, May 17, 2022
Slide 1: Q1 2022 Investor Presentation
Q1 2022 Investor Presentation May 17, 2022
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 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 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: Westaim Q1 2022 Quarterly Operating Highlights
Westaim Q1 2022 Quarterly Operating Highlights Westaim reports strong underlying results from all businesses • Skyward Specialty’s Q1 2022 Net Income (100%) was $16.3 million (Net Income excluding unusual items of $16.3 million) compared to Q1 2021 Net Income of $14.9 million (Net Income excluding u
Slide 7: Westaim Summary Quarterly Operating Results
Westaim Summary Quarterly Operating Results Three months • GAAP profit and comprehensive income in Q1 2022 was $3.5 Operating result million ($0.02 earnings per share) compared to a GAAP profit ended March 31 and comprehensive income of $9.1 million ($0.06 earnings per (Amounts in millions of US$ ex
Slide 8: Westaim Summary Statement of Financial Position
Westaim Summary Statement of Financial Position As at March 31, 2022 December 31, 2021 (Amounts in millions of US$ except per share data) • Book value per share increased US$0.02 (0.8%) Assets in Q1 2022 Cash $7.2 $6.6 Other assets 0.7 0.8 • Despite strong earnings in Q1 2022 at Skyward Investment i
Slide 9: Westaim Diluted Earnings per Share (US$): Three months ended March 31
Westaim Diluted Earnings per Share (US$): Three months ended March 31, 2022 $0.05 ($0.06) $0.03 ($0.01) ($0.01) $0.02 $0.02 Income from Arena Westaim's Share of Westaim's Share of Income from Arena Westaim holding Westaim income tax Diluted EPS FINCOs and ASOF Skyward Specialty's Net Skyward Special
Slide 10: Westaim Book Value per Share (US$): Three months ended March 31, 2022
Westaim Book Value per Share (US$): Three months ended March 31, 2022 $0.05 ($0.06) $0.03 ($0.01) ($0.01) $0.02 $2.45 $2.43 BVPS Income from Arena Westaim's Share of Westaim's Share of Income from Arena Westaim holding Westaim income tax BVPS December 31, 2021 FINCOs and ASOF Skyward Specialty's Sky
Slide 11: Company Update: Skyward Specialty Insurance
SKYWARD SPECIALTY INSURANCE COMPANY UPDATE
Slide 12: Skyward Specialty at a Glance
SKYWARD SPECIALTY AT A GLANCE Business Overview Select Financial Metrics • A private, US-based specialty property and casualty insurer that (US$ millions) Q1 FY 2022(1) 2021(1) writes on both an admitted and non-admitted basis Select Income Statement Metrics • Strategy focuses on building defensible
Slide 13: Skyward Specialty - Summary Statements of Operations
SKYWARD SPECIALTY - SUMMARY STATEMENTS OF OPERATIONS (1) Three months ended Written Premium Growth March 31 • Skyward Specialty is focused on being a disciplined gross line underwriter, earning an (Currency amounts in millions of US$) 2022 2021 underwriting income on a gross and net basis Gross writ
Slide 14: Skyward Specialty - Summary Balance Sheets
SKYWARD SPECIALTY - SUMMARY BALANCE SHEETS As at (Currency amounts in millions of US$) March 31, 2022 December 31, 2021 • Adjusted stockholders’ equity increased to $435.6 million or 0.1% from Q4 2021 primarily reflecting net income of $16.3 million primarily offset by $16.4 million of unrealized lo
Slide 15: Skyward Specialty - Adjusted Stockholders' Equity
SKYWARD SPECIALTY - ADJUSTED STOCKHOLDERS' EQUITY: FOR THE THREE MONTHS ENDED MARCH 31, 2022 (1) $16.3 ($16.4) $0.5 $435.6 $435.2 Adjusted stockholders' equity Employee shareholder Net Income Other comprehensive loss Adjusted stockholders' equity December 31, 2021 activity and other March 31, 2022 C
Slide 16: Skyward Specialty - Conservative Investment Portfolio
SKYWARD SPECIALTY – CONSERVATIVE INVESTMENT PORTFOLIO Balanced portfolio predominantly composed of investments that Investment Portfolio as of March 31, 2022 generate predictable and stable returns, augmented by select strategic investments that generate attractive risk-adjusted returns Fixed inco
Slide 17: Seeing What's Possible
March March 31, 2022 31, 2021 Seeing What’s Possible
Slide 18: About Arena Investors
About Arena Investors 18 ABOUT ARENA • Global originator and underwriter of proprietary investments INVESTORS ( 1 ) seeking to produce consistent and uncorrelated returns $3.5B • Institutional scale and experience with transaction sizes between Assets Under Management $5 million – $50 million, which
Slide 19: Arena Investors – Well Positioned to Accelerate Growth
Arena Investors – Well Positioned to Accelerate Growth 19 • 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 • ~$3.8 billion
Slide 20: Q1 2022 Quarterly Result Highlights
Q1 2022 Quarterly Result Highlights 20 Three Months Ended March 31, Q1 2022 Results: (dollars in millions) 2022 2021 • Net profit was $9.4 million for Q1 2022, compared to $11.3 million profit in Q4 2021 and $2.1 million profit in Q1 2021 Recurring Income Management Fees $ 7.5 $ 5.0 • Management fee
Slide 21: Arena Investors - Investment vehicles
Arena Investors - Investment vehicles (1) 21 $ 3 . 5 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 . 3 B Open-ended Evergreen Funds • Arena Spec
Slide 22: Arena Investors – Performance
Arena Investors – Performance (1) 22 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 one-year, three-year, five-year and since inception track records have also ou
Slide 23: Arena Investors – Assets Under Management Through 3/31/2022
Arena Investors – Assets Under Management Through 3/31/2022 23 Arena Investors’ AUM (including undrawn commitments) grew $661 million (mm) in Q1 2022. From December 31, 2015 to March 31, 2022 AUM has grown at a CAGR of ~56%. Arena Investors – Assets Under Management Through 3/31/2022 (1) $ 3,600 mm
Slide 24: 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 25: Arena FINCOs
fs ARENA
Slide 26: Arena FINCOs: Summary of Operating Results
Arena FINCOs: Summary of Operating Results Three months ended March 31, • Q1 2022 Net Income was $2.6 million (Currency amounts in millions of US$) 2022 2021 (+1.5% net investment return) Investment income $1.3 $1.0 compared to Q1 2021 Net Income of $7.4 million (+4.5% net investment Net gain on inv
Slide 27: Arena FINCOs: Summary of Net Assets
Arena FINCOs: Summary of Net Assets Fair Value March 31, 2022 December 31, 2021 (Currency amounts in millions of US$) Cash and cash equivalents $17.6 $36.3 • In 2021, the combined secure notes Due from brokers, net (45.0) (1.7) payable of $45 million and the Investments: revolving credit facility of
Slide 28: Arena FINCOs: Portfolio breakdown as at March 31, 2022
Arena FINCOs: Portfolio breakdown as at March 31, 2022 Equity / REO / Hard Corporate Assets(1) Private Credit 55% 23% Other Securities Debt 38% 45% Consumer Real Estate and Real Assets Estate Private Credit 7% 16% Structured Commercial and Finance Industrial Assets 2% 14% Arena FINCOs held 293 posit
Slide 29: Future Events
Future Events: AGM: May 18, 2022 Investor Day: September 29, 2022 The Westaim Corporation 70 York Street, Suite 1700 Toronto, Ontario Canada M5J 1S9 www.westaim.com [email protected]