Western Investment Company Of Canada Limited · TSXV:WI
Western Investment Company Of Canada — The Western Investment Company of Canada — Investor Presentation (June 2022)
31 slides from Western Investment Company Of Canada's investor presentation, June 2022
Slide 1: Investor Presentation June 2022
INVESTOR PRESENTATION June 2022 1 TSX.V: WI
Slide 2: Western Overview
WESTERN OVERVIEW PURPOSE To create long-term wealth for shareholders by building and maintaining a diversified portfolio of strong, stable and profitable Western-based companies and helping them grow. STRATEGY Acquire significant ownership positions in successful companies by: 1. Offering “Continuit
Slide 3: Western's Investment Criteria
WESTERN’S INVESTMENT CRITERIA Investment Criteria 1) Insurance / Financial Services 2) Retail/Distribution (“Dynamic Retailing”) Deep Verticals 3) Agriculture and Food 4) Health care, Long-Term Care 5) Special Situations Acquisition $10-100 million Enterprise Value Ownership 25%-100% Geographic West
Slide 4: Significant Insider Ownership
SIGNIFICANT INSIDER OWNERSHIP 1 Western Insider Ownership Shareholder Shares Ownership Scott Tannas (CEO) 1,452,500 4.79% Shafeen Mawani (COO) 827,106 2.73% Kabir Jivraj (Director) 692,000 2.28% Willard Yuill (Director) 608,000 2.01% James Dinning (Director) 607,000 2.00% Jennie Moushos (Director) 6
Slide 5: Ability to Execute Deals in the SME Space
ABILITY TO EXECUTE DEALS IN THE SME SPACE Acquisition Sources Conversion % Directors / Mgmt 35% LOI Success: 50% (5/10) M&A Advisors 60% EOI Success: 35% (5/14) Private Equity 5% 5 Acquisitions 10 LOIs Submitted 14 EOIs Submitted (reviewed documents and met investment criteria) Founding Phase ~100+
Slide 6: Unique Oversight Program for Portfolio Companies
UNIQUE OVERSIGHT PROGRAM FOR PORTFOLIO COMPANIES Pattison Principles, Rockefeller Habits • Quarterly rhythms / meetings • Industry analysis to support decisions of portfolio companies • Critical number generation/monitoring (KPIs) • One year planning with 10 year BHAG (“Big Hairy Audacious Goal”) •
Slide 7: Our Portfolio
OUR PORTFOLIO # Trailing 12 Ownership employees month sales1 Leading automotive glass retailer/wholesaler 58%2 130 $27.0 Saskatchewan’s largest private nursing home 30% 133 $8.9 operator Canada’s largest demonstration sales 75% 30 $16.7 organization Western based maker of high quality butter and ice
Slide 8: Net Asset Value
Net Asset Value Western completed a market value assessment of each portfolio company as at December 31, 2021 ― Using the inherent market value of our investments, our value per share is $0.82. This is approximately double the market price of our shares ― Market value assessment shows an unrealized
Slide 9: Portfolio Company – Debt Strategy
PORTFOLIO COMPANY – DEBT STRATEGY Western has ownership in five portfolio companies, each with amortizing debt ― No parent company guarantee on portfolio company debt. No subsidiary cross guarantees ― Debt capacity increasing substantially which can be used to pay dividends or reinvestment in high
Slide 10: Cornerstone Acquisition: Fortress Insurance
CORNERSTONE ACQUISTION: FORTRESS INSURANCE Transaction Overview Gross Premiums Written Growth ($mm) • Fortress Insurance Company was an Alberta registered property and casualty insurer that exclusively provided automobile third party liability coverage in the rental car $24.0 business ⎼ Western’s go
Slide 11: Western EPS
WESTERN EPS Below summarizes the contribution by year for Western — Poised for strong profit and cash flow in 2023 — Focused on internal value creation through 2022 Earnings per Share1 0.050 0.025 0.000 (0.025) (0.050) (0.075) (0.100) (0.125) (0.150) 2017 2018 2019 2020 2021 1 Basic and diluted co
Slide 12: COVID-19 Response
COVID-19 RESPONSE ✓ Resilient performance demonstrated at all companies ✓ Clear transparent communication to stakeholders ✓ Western executives shoulder to shoulder with management at portfolio companies ✓ Year-to-date 2022 4 out of 5 associates have operating profits. The 5th is still digging out. ✓
Slide 13: Summary
SUMMARY ✓ Management oversight philosophy resonates with entrepreneurs - provides the opportunity to de-risk but maintain control of the company ✓ Board at Western provides a key differentiator for targeted companies ✓ Successful in finding and executing acquisitions in the marketplace ―Five transac
Slide 14: Why Invest?
WHY INVEST? ✓ Strong management and directors aligned with shareholders and with a history of creating exceptional long term value ✓ Initial phase complete – five investments including key insurance platform ✓ Entering growth phase with current portfolio companies, organic growth, and potential for
Slide 15: Appendix A: Portfolio Companies
APPENDIX A: PORTFOLIO COMPANIES TSX.V: WI
Slide 16: Investment #5
INVESTMENT #5 Company Overview • An multi-province registered property and casualty insurer. ⎼ Western is transforming Fortress into specialty and surplus insurance lines of business within the Canadian marketplace ⎼ License to cover property, boiler & machinery, accident & sickness, personal and co
Slide 17: Investment #4
INVESTMENT #4 Company Overview • Producer of high quality butter and ice cream products in Western Canada ⎼ Headquartered in Calgary with two distribution facilities in Alberta and BC. Acquisition included $15mm in real estate assets ⎼ Company has a long history of profitability pre- covid in a regu
Slide 18: Investment #3
INVESTMENT #3 Company Overview • Ocean Sales markets high-quality, household products across North America ⎼ Founded 39 years ago; headquartered in Calgary with warehouses located in Eastern Canada and USA ⎼ Strong relationship with Costco Canada ⎼ Western owns 75% while current management owns 25%
Slide 19: Investment #2
INVESTMENT #2 Company Overview • Purchased 30% ownership in three retirement homes in Regina, Estevan and Prince Albert ⎼ Partners include management and a provincial Labour-sponsored Investment Fund who together own and operate 457 beds in eight communities ⎼ Operations date back to 2003 ⎼ Full ser
Slide 20: Investment #1
INVESTMENT #1 Company Overview • Founded in 2001, GlassMasters is one of the largest windshield replacement and repair companies in AB • 10 retail locations in principal markets in Alberta and Saskatchewan and 4 warehouse locations • Western owns 58.2%, Fort McKay 39.3% and management 2.5% ⎼ Expansi
Slide 21: Appendix B: Management Team & Board of Directors
APPENDIX B: MANAGEMENT TEAM & BOARD OF DIRECTORS TSX.V: WI
Slide 22: Scott Tannas
SCOTT TANNAS • Scott Tannas is the Founder of Western Financial Group (“Western”), having served as its CEO from 1996 to 2014. Western was founded as a Junior Capital Pool in 1996. From its headquarters in High River, Alberta, Mr. Tannas oversaw the building of Western through more than one hundred
Slide 23: Shafeen Mawani
SHAFEEN MAWANI • Shafeen has served as a strategic advisor to Western‘s Board of Directors since 2016. He was appointed Chief Operating Officer in 2017. In 2021 Shafeen became Chief Executive Officer at Fortress Insurance, where his key focus is now on growing our insurance company. Shafeen continue
Slide 24: Stacey Cross
STACEY CROSS • Stacey is a Chartered Professional Accountant with extensive experience in financial accounting and reporting, tax, auditing and management reporting. Prior to joining Western, Stacey worked in a number of financial accounting lead roles, including most recently with Western’s first e
Slide 25: James F. Dinning
JAMES F. DINNING • Jim Dinning is a corporate director. In addition to chairing the board of Western Investment Company he chairs Russel Metals Inc and serves on various other boards of private companies, foundations and trusts. He was chair of Western Financial Group Inc. from 2005 to 2017 when the
Slide 26: Willard Yuill
WILLARD YUILL • Willard Yuill is the CEO of The Monarch Corporation, a Canadian private equity company and is a recent inductee into the Calgary Business Hall of Fame. He was previously Chairman and CEO of Monarch Communications Inc., the parent Company of Monarch Broadcasting Ltd. and Monarch Cable
Slide 27: Dr. Kabir Jivraj
DR. KABIR JIVRAJ • Dr. Kabir Jivraj is co-founder of Age Care, a senior care home operator across Canada. Dr. Jivraj has acute understanding of health care and the seniors market and extensive business acumen and experience. He served as Senior Vice-President and Chief Medical Officer at Alberta Hea
Slide 28: Jennie Moushos
JENNIE MOUSHOS • Jennie Moushos has spent the majority of her career in the financial and insurance sectors and has over 25 years’ experience in the insurance industry. Jennie is currently serving as Executive Vice President and Business Development for the conservation association Ocean Wise. Prior
Slide 29: For more information, please contact:
For more information, please contact: Scott Tannas Chief Executive Officer, President, Secretary, Director (403) 652-2663 stannas@winv.ca TSX.V: WI 29
Slide 30: Cautionary Statements
Cautionary Statements This presentation (the "Presentation") has been prepared by the management of The Western Investment Company of Canada Limited ("Western" or "WIC") for informational purposes only based on public information and from Western's confidential and proprietary materials, and may con
Slide 31: Cautionary Statements (cont'd)
Cautionary Statements (cont’d) Forward looking statements or information are based on current expectations, estimates and projections that involve substantial known and unknown risks and uncertainties which are beyond the control of Western and which could cause actual results to differ materially f
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