Cion Investment Corporation · NYSE:CION
Cion Investment — Q3 2024 Earnings Presentation
31 slides from Cion Investment's earnings presentation, November 2024
Slide 1: CION Investment Corporation Investor Presentation Third Quarter 2024
CION Investment Corporation Investor Presentation Third Quarter 2024
Slide 2: Disclosures and Forward-Looking Statements
Disclosures and Forward-Looking Statements This presentation has been prepared by CĪON Investment Corporation (NYSE: CION) (the “Company” or “CION”) and may be used for information purposes only. This presentation shall not constitute an offer to sell or the solicitation of any offer to buy any secu
Slide 3: CION Investment Corporation (CION) at a Glance
CION Investment Corporation (CION) at a Glance NYSE: CION Size & Scale Strategy Focus • Externally managed • Origination via proprietary • High quality senior secured business development sources and a strong debt financings, primarily company (BDC) with a network of public and first lien market cap
Slide 4: CION Platform Overview
CION Platform Overview CION Investment Group is a vertically integrated alternative investment manager and retail distribution organization founded in 2011 Key Products CION Investment CION Ares Diversified Corporation Credit Fund Profile Publicly listed business Globally diversified development com
Slide 5: Evolution of CION Investment Corporation
Evolution of CION Investment Corporation 2012 $1.15B 30+ 0.022% Inception Year Total Equity Raised Advisor Years of Annualized Loss Rate Experience Since Inception1 $2,500 Total Portfolio Investments ($ in Millions, at Fair Value) $1,954 $2,000 Apollo Investment $1,865 Management (“AIM”) $1,765 $1,8
Slide 6: History of Value Creation
History of Value Creation $35.00 32.50 32.51 31.90 32.06 30.93 29.74 30.04 29.51 30.05 $30.00 28.66 28.95 29.09 29.06 28.22 27.73 27.04 26.85 26.50 26.13 26.41 26.56 26.52 25.56 25.91 26.23 26.02 24.85 25.22 25.18 25.46 $25.00 24.04 24.33 23.49 16.42 22.67 15.67 21.96 22.29 22.25 21.78 21.86 11.35 1
Slide 7: Credit Portfolio is Focused on First Lien Loans
Credit Portfolio is Focused on First Lien Loans $2.0b $1.84b $1.82b $1.79b $1.80b $1.75b $1.74b $1.74b $1.75b $1.73b $1.74b $1.75b $1.68b $1.67b $1.69b $1.63b $1.66b $1.58b $1.54b $1.52b $1.53b $1.50b $1.5b $ (Billions) 80.9% 77.9% 85.0% 84.3% $1.0b 89.8% 85.7% 84.2% 85.30% 80.6% 84.0% 91.8% 92.7% 9
Slide 8: Differentiated Investment Platform
Differentiated Investment Platform CION’s unique platform drives selectivity, efficiency and focus Direct first lien and club investments based on deep, long-standing relationships with like-minded Sourcing Powered partners, including other leading private and public lenders by Strong Network In
Slide 9: Sourcing Strategy Drives Selectivity
Sourcing Strategy Drives Selectivity CION’s open architecture origination approach capitalizes on a deep and diverse network of highly experienced and like-minded partners: Relationships are deep, long-term and Private and Public Lenders personal; often date back for decades Select middle mark
Slide 10: Investment Strategy
Investment Strategy CION drives investor returns primarily through a first lien focus supplemented with select, opportunistic investments First lien primarily, with unitranche and second lien CORE Companies with EBITDA between $20-$75 million; target $20 million initial hold sizes 85.5% senior
Slide 11: Fund Flexibility and Scale are Highly Advantageous
Fund Flexibility and Scale are Highly Advantageous CION has attractive scale within its niche market along with investing flexibility At $1.9 billion in total assets(1), CION is a scaled BDC with enough influence to have “a voice at the table” Flexibility to invest across a borrower’s capital st
Slide 12: Solid Performance and Current Valuation
Solid Performance and Current Valuation Senior Secured1 Portfolio Yield2 Leverage3 90.0% 14.00% 140.00% 85.50% 85.72% 127.5% 85.0% 13.00% 130.00% 12.23% 11.89% 120.00% 113.4% 80.0% 12.00% 110.00% 75.0% 11.00% 100.00% 70.0% 10.00% 90.00% 65.0% 80.00% 60.0% 9.00% 70.00% 55.0% 8.00% 60.00% 50.0% 7.00%
Slide 13: Recent Developments
Recent Developments During the three months ended September 30, 2024, CION repurchased 165,737 shares of its common stock under its 10b5-1 trading plan at an average price of $12.08 per share for a total repurchase amount of $2.0 million. Through September 30, 2024, CION repurchased a total of 3,5
Slide 14: Conclusion
Conclusion CION offers investors a differentiated investment platform and strategy built over a decade of operations High-quality portfolio focused on senior secured loans, primarily first lien Sourcing, origination & investment pipeline product of strong network not easily replicated Underwriting a
Slide 15: Third Quarter 2024
Third Quarter 2024 AN
Slide 16: Third Quarter and Other Highlights – Ended September 30, 2024
Third Quarter and Other Highlights – Ended September 30, 2024 • Net investment income and earnings per share for the quarter ended September 30, 2024 were $0.40 per share and $(0.01) per share, respectively; • Net asset value per share was $15.73 as of September 30, 2024, compared to $16.08 as of Ju
Slide 17: Third Quarter and Other Highlights – Ended September 30, 2024
Third Quarter and Other Highlights – Ended September 30, 2024 • On September 30, 2024, the Company entered into a 3-year unsecured term loan agreement with an Israeli institutional investor under which the Company borrowed $30 million, which bears interest at a floating rate equal to the three-month
Slide 18: Selected Financial Highlights
Selected Financial Highlights ($ in millions) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Investment portfolio, at fair value(1) $1,753 $1,823 $1,741 $1,841 $1,728 Total debt outstanding(2) $1,070 $1,070 $1,070 $1,092 $1,008 Net assets $839 $861 $863 $880 $861 Debt-to-equity 1.28x 1.24x 1.24x 1.24x 1.17
Slide 19: Investment Activity
Investment Activity • New investment commitments for the quarter were $97 million, of which $78 million were funded and $19 million were unfunded. • New investment commitments were made across 1 new and 10 existing portfolio companies. • Fundings of previously unfunded commitments for the quarter we
Slide 20: Portfolio Asset Composition
Portfolio Asset Composition 14% 15% 13% 14% 0%* 11% 7% 1% 0%* 0%* 1% 1% 0%* 0%* 1% 0%* 2% 1% 0%* 2% 0%* 7% 1% 93% 100% 85% 84% 84% 85% 86% 93% 99% 100% * Less than 1%. The discussion of the investment portfolio is at fair value and excludes short term investments. 20
Slide 21: Credit Quality of Investments
Credit Quality of Investments INTERNAL INVESTMENT RISK RATINGS(1) Q3 2024 NON-ACCRUAL %(1) (% of Total Portfolio, Fair Value) Higher Credit Quality Rating Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 1 0.6% 1.3% 0.0%* 5.3% 0.0%* 2 85.7% 88.3% 88.5% 87.2% 90.7% 3 11.8% 9.0% 10.4% 6.5% 8.2% 4 1.5% 1.1% 0.7
Slide 22: Portfolio Summary
Portfolio Summary Portfolio Characteristics (as of September 30, 2024)(4) 85.5% Senior PORTFOLIO BY SECURITY TYPE(4) * Investment Portfolio Secured Debt Total investments and unfunded commitments $1,823.8 million Investments Unfunded commitments $71.1 million Investments at fair value $1,752.7 milli
Slide 23: Q3 2024 Net Asset Value Bridge
Q3 2024 Net Asset Value Bridge Per Share Data 23
Slide 24: YTD 2024 Net Asset Value Bridge
YTD 2024 Net Asset Value Bridge Per Share Data 24
Slide 25: Debt Summary
Debt Summary $162 million in available capacity within existing senior secured facilities DEBT SCHEDULE* ($ in millions) DEBT MATURITIES ($ in millions) Total Principal Commitment Amount Amount Outstanding Interest Rate Maturity Date JPM Credit Facility $562 $450 S + 2.55%(2) 6/15/2027 UBS Facility
Slide 26: Distribution Per Share and Distribution Coverage
Distribution Per Share and Distribution Coverage Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Net Investment Income (per share) $0.43 $0.54 $0.43 $0.55 $0.40 $0.60 $0.43 $0.40 Distribution (per share) $0.58(1) $0.34 $0.34 $0.39(1) $0.54(1) $0.34 $0.41(1) $0.36 Distribution coverag
Slide 27: Quarterly Operating Results
Quarterly Operating Results All figures in thousands, except share and per share data Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Investment income Interest income(1) $ 53,390 $ 53,863 $ 69,654 $ 56,403 $ 63,913 Dividend income 434 5,152 27 128 95 Fee income 5,803 2,342 3,873 3,468 3,532 Total investmen
Slide 28: Quarterly Balance Sheet
Quarterly Balance Sheet All figures in thousands, except per share data and asset coverage ratio Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Assets Investments, at fair value $ 1,806,229 $ 1,906,125 $ 1,870,837 $ 1,954,270 $ 1,844,877 Cash 29,765 9,798 48,482 8,415 6,805 Interest receivable on investmen
Slide 29: Appendix
Appendix AN
Slide 30: CION Team Overview and Corporate Information
CION Team Overview and Corporate Information Board of Directors Senior Management Corporate Headquarters Research Coverage Mark Gatto Mark Gatto 100 Park Avenue, 25th Floor Finian O’Shea Mitchel Penn Co-Chairman of the Board Co-Chief Executive Officer New York, NY 10017 Wells Fargo Oppenheimer & Co.
Slide 31: > | g
> | g