Tetragon Financial Group Limited · EURONEXT:TFG
Tetragon Financial — H1 2022 Earnings Presentation
22 slides from Tetragon Financial's earnings presentation, Jul 29, 2022
Slide 1: Tetragon Financial Group Limited 2022 Half-Yearly Investor Call
Tetragon Financial Group Limited 2022 Half-Yearly Investor Call 29 July 2022 THE INFORMATION CONTAINED HEREIN DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO PURCHASE ANY SECURITY OF TETRAGON. THIS INFORMATION IS CURRENT ONLY AS OF 30 JUNE 2022, UNLESS OTHERWISE STATED. TETRAGO
Slide 2: Contents
Contents Key Performance Metrics 3 NAV Progression 6 Net Asset Composition Summary 9 Investment Performance 10 Future Investment Expectations 17 Q&A 18 2022 Half-Yearly Report Investor Presentation | 2
Slide 3: Key Performance Metrics: NAV Per Share Total Return
Key Performance Metrics: NAV Per Share Total Return 14.1% 13.6% 9.5% 10.3% 8.1% 4.4% 0.0% (1.9%) (3.5%) 2018 2019 2020 2021 2022 H1 FY (i) Please refer to Endnotes on page 20 for certain relevant definitions. Source: Tetragon. 2022 Half-Yearly Report Investor Presentation | 3
Slide 4: Key Performance Metrics: Return on Equity (RoE)
Key Performance Metrics: Return on Equity (RoE)(i) ♦ Target RoE: 10-15% ♦ Average RoE: 11.7% 17.3% 13.4% 12.1% 7.6% (5.0%) 2018 2019 2020 2021 2022 (i) Average RoE is calculated from Tetragon’s IPO in 2007. Tetragon seeks to deliver 10-15% Return on Equity (RoE) per annum to shareholders. Please ref
Slide 5: Key Performance Metrics: Dividends Per Share (DPS)
Key Performance Metrics: Dividends Per Share (DPS) $0.72 $0.74 $0.40 $0.41 $0.22 2018 2019 2020 2021 2022 H1 FY Source: Tetragon. 2022 Half-Yearly Report Investor Presentation | 5
Slide 6: NAV Progression during H1 2022
NAV Progression during H1 2022(i) 31.00 30.00 (1.23) 29.00 (0.25) (0.05) 0.89 28.00 (0.22) 29.86 (0.41) 27.00 28.59 26.00 25.00 NAV at 31 Investment Operating Interest Dividends Other share Share NAV at 30 June December 2021 income and expenses, expense dilution repurchase 2022 losses management and
Slide 7: Tetragon NAV Per Share Total Return and Share Price
Tetragon NAV Per Share Total Return and Share Price(i) Since April 2007 IPO to 30 June 2022 400% 376% 350% 300% 250% 200% 165% 126% 150% 100% 103% 79% 50% 0% Jun-08 Jan-09 Jul-12 Jun-15 Jan-16 Jul-19 Jun-22 Mar-10 Mar-17 Feb-13 Feb-20 Nov-07 Dec-11 Nov-14 Dec-18 Nov-21 Aug-09 Sep-13 Aug-16 Sep-20 Oc
Slide 8: Delivering Results Since 2005
Delivering Results Since 2005(i) NAV Per Share Total Return(ii) 10.0% 9.9% 10.9% 10.8% 376% One Year to 30 June 2022 Five Years Annualised Ten Years Annualised Since IPO Annualised Since IPO Investment Returns/Return On Equity(iii) -5.0% 10-15% 11.7% Annual Average 2022 YTD RoE RoE Target Since IPO
Slide 9: Net Asset Composition Summary
Net Asset Composition Summary Net Asset Breakdown at 31 December 2021 Net Asset Breakdown at 30 June 2022 Other Other equities Legal assets equities and and credit credit Legal assets Private equity and Private equity 1% 1% and venture venture 8% capital 7% capital Private equity in Private equity i
Slide 10: Net Asset Breakdown Summary
Net Asset Breakdown Summary In millions of U.S. dollars NAV at (i) Disposals/ Gains/ NAV at Asset Classes Additions (i) 31 Dec 2021 Receipts Losses 30 Jun 2022 Private equity in asset management companies 1,256.3 23.1 (38.9) (31.4) 1,209.1 Event-driven equities, convertible bonds and other hedge 586
Slide 11: Private equity in asset management companies
Private equity in asset management companies In millions of U.S. dollars NAV at Disposals/ Gains/ NAV at Asset Classes 31 Dec 2021 Additions(i) Receipts(i) Losses 30 Jun 2022 % of NAV Private equity in asset management companies Equitix 725.6 10.4 (28.8) (82.5) 624.7 22.5% BentallGreenOak 213.5 2.9
Slide 12: Event-driven equities, convertible bonds and other hedge funds
Event-driven equities, convertible bonds and other hedge funds In millions of U.S. dollars NAV at Disposals/ Gains/ NAV at Asset Classes Additions(i) % of NAV 31 Dec 2021 Receipts(i) Losses 30 Jun 2022 Event-driven equities, convertible bonds and other hedge funds Polygon European Equity Opportunity
Slide 13: Bank loans
Bank loans In millions of U.S. dollars NAV at Disposals/ Gains/ NAV at Asset Classes Additions(i) % of NAV 31 Dec 2021 Receipts(i) Losses 30 Jun 2022 Bank loans U.S. CLOs (LCM) 154.2 21.4 (37.1) 19.2 157.7 5.7% Tetragon Credit Partners funds 117.8 0.6 (15.1) 19.5 122.8 4.4% U.S. CLOs (non-LCM) 13.6
Slide 14: Real estate
Real estate In millions of U.S. dollars NAV at Disposals/ Gains/ NAV at Asset Classes Additions(i) % of NAV 31 Dec 2021 Receipts(i) Losses 30 Jun 2022 Real estate BentallGreenOak Europe funds & co- 38.5 3.7 (4.3) 2.3 40.2 1.4% investments BentallGreenOak U.S. funds & co-investments 48.0 1.3 - (0.7)
Slide 15: Private equity and venture capital
Private equity and venture capital In millions of U.S. dollars NAV at Disposals/ Gains/ NAV at Asset Classes Additions(i) % of NAV 31 Dec 2021 Receipts(i) Losses 30 Jun 2022 Private equity and venture capital Hawke's Point funds & co-investments 57.9 5.2 (15.5) (17.3) 30.3 1.1% Banyan Square funds 9
Slide 16: Legal Assets
Legal Assets In millions of U.S. dollars NAV at Disposals/ Gains/ NAV at Asset Classes Additions(i) % of NAV 31 Dec 2021 Receipts(i) Losses 30 Jun 2022 Legal Assets Contingency Capital funds 30.3 8.9 (14.4) 1.3 26.1 0.9% (i) Any gains or losses on foreign exchange hedging instruments attributable to
Slide 17: Other equities & credit; cash
Other equities & credit; cash In millions of U.S. dollars NAV at Disposals/ Gains/ NAV at Asset Classes Additions(i) % of NAV 31 Dec 2021 Receipts(i) Losses 30 Jun 2022 Other equities & credit(ii) Other equities 215.5 145.5 (57.9) (125.7) 177.4 6.4% Other credit 20.1 - (1.7) (1.2) 17.2 0.6% Cash Net
Slide 18: Future Investment Expectations
Future Investment Expectations(i) TFG Asset Management Continue funding commitments to Contingency Capital Event-driven equities, = Stable allocation to equities and slight reduction to convertible bonds convertible bonds Other hedge funds = Stable allocation Bank loans = Stable allocation; will i
Slide 19: Q&A
Q&A Contact us anytime: ir@tetragoninv.com 2022 Half-Yearly Report Investor Presentation | 19
Slide 20: Endnotes
Endnotes Page 3 Page 7 (i) NAV Per Share Total Return as of 30 June 2022 since Tetragon’s initial public Certain definitions: offering in April 2007. Tetragon uses the following metrics, among others, to understand the progress and performance of the business: (ii) Total shareholder return to 30 Jun
Slide 21: Endnotes
Endnotes Page 8 (i) Tetragon commenced investing as an open-ended investment company in (iv) The dividend yield represents the last four quarterly dividends divided by 2005, before its initial public offering in April 2007. the TFG NA share price at 30 June 2022. The latest declared dividend is incl
Slide 22: Legal Disclaimer
Legal Disclaimer This document has been prepared by Tetragon Financial Group Limited, referred to in this report as Tetragon. References to “we” are to Tetragon Financial Management LP, Tetragon’s investment manager. Tetragon is a closed-ended investment company that invests in a broad range of asse
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