Aventus Capital Inc. · TSXV:AVTS
Aventus Capital — The Westaim — Q3 2022 Earnings Presentation
32 slides from Aventus Capital's earnings presentation, Nov 10, 2022
Slide 1: Q3 2022 Investor Presentation
Q3 2022 Investor Presentation November 10, 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) 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 6: Westaim Q3 2022 Quarterly Operating Highlights
Westaim Q3 2022 Quarterly Operating Highlights Westaim reports strong underlying results from its businesses despite ongoing market volatility • Skyward Specialty’s Net Loss (100%) was $2.4 million in Q3 2022 compared to Net Income of $10.0 million in Q3 2021; Net Income was $19.0 million YTD 2022 c
Slide 7: Westaim Summary Quarterly Operating Results
Westaim Summary Quarterly Operating Results • GAAP loss and comprehensive loss in Q3 2022 was $16.7 (Amounts in millions of US$ except per share data) Three months ended Nine months ended million ($0.12 loss per share) compared to a GAAP profit and September 30 September 30 comprehensive income of $
Slide 8: Westaim Summary Statement of Financial Position
Westaim Summary Statement of Financial Position (Amounts in millions of US$ except per share data) As at September 30, 2022 June 30, 2022 December 31, 2021 Assets • Book value per share decreased US$0.10 (-4.1%) to Cash $2.2 $3.1 $6.6 $2.33 at September 30, 2022 from $2.43 at December Other assets 0
Slide 9: Westaim Diluted Earnings per Share: Three months ended September 30, 2022
Westaim Diluted Earnings per Share (US$): Three months ended September 30, 2022 $0.03 ($0.02) ($0.05) ($0.02) ($0.03) ($0.01) ($0.02) ($0.12) Skyward Specialty's Loss from Skyward Loss from Skyward Loss from Arena Loss from Arena Westaim holding Westaim share of Fully diluted EPS adjusted operating
Slide 10: Westaim Book Value per Share: Three months ended September 30, 2022
Westaim Book Value per Share (US$): Three months ended September 30, 2022 $0.03 ($0.02) ($0.05) $2.44 ($0.02) ($0.03) $0.00 ($0.02) $2.33 Fully diluted BVPS Skyward Loss from Skyward Loss from Skyward Loss from Arena Loss from Arena Westaim holding Westaim share of Fully diluted BVPS June 30, 2022 S
Slide 11: Westaim Diluted Earnings per Share: Nine months ended September 30, 2022
Westaim Diluted Earnings per Share (US$): Nine months ended September 30, 2022 $0.15 ($0.06) ($0.16) $0.03 $0.00 ($0.04) ($0.02) ($0.10) Skyward Specialty's Loss from Skyward Loss from Skyward Income from Arena Income from Arena Westaim holding Westaim share of Fully diluted EPS adjusted operating S
Slide 12: Westaim Book Value per Share: Nine months ended September 30, 2022
Westaim Book Value per Share (US$): Nine months ended September 30, 2022 $0.15 ($0.06) ($0.16) $2.43 $0.03 $0.00 ($0.04) ($0.02) $2.33 Fully diluted BVPS Skyward Specialty's Loss from Skyward Loss from Skyward Income from Arena Income from Arena Westaim holding Westaim share of Fully diluted BVPS De
Slide 13: Company Update: Skyward Specialty Insurance
SKYWARD SPECIALTY INSURANCE COMPANY UPDATE
Slide 14: Skyward Specialty at a Glance
SKYWARD SPECIALTY AT A GLANCE Business Overview Select Financial Metrics • A private, US-based specialty property and casualty insurer that (US$ millions) YTD Q3 FY 2022(1) 2021(1) writes on both an admitted and non-admitted basis Select Income Statement Metrics • Strategy focuses on building defens
Slide 15: Skyward Specialty - Summary Statements of Operations
SKYWARD SPECIALTY - SUMMARY STATEMENTS OF OPERATIONS (1) Three months ended Nine months ended September 30 September 30 Written Premium Growth (Currency amounts in millions of US$) 2022 2021(1) 2022 2021(1) • GWP increased 25.6% in Q3 2022 vs. Q3 2021 and NWP increased 31.1% in Q3 2022 vs. Q3 2021;
Slide 16: Skyward Specialty - Summary Balance Sheets
SKYWARD SPECIALTY - SUMMARY BALANCE SHEETS (Currency amounts in millions of US$) As at September 30, 2022 June 30, 2022 December 31, 2021 • Adjusted stockholders’ equity decreased to Investments $1,017.9 $989.4 $949.4 $406.7 million or (-6.5%) from Q4 2021 primarily reflecting net income of $19.0 Ca
Slide 17: Skyward Specialty - Adjusted Stockholders' Equity: Three Months Ended September 30, 2022
SKYWARD SPECIALTY - ADJUSTED STOCKHOLDERS' EQUITY: FOR THREE MONTHS ENDED SEPTEMBER 30, 2022 (1) $10.6 ($5.7) ($17.8) $426.5 $0.4 ($7.3) $406.7 Adjusted stockholders' Employee shareholder Adjusted operating Net realized and Net unrealized losses on Impact of LPT, net of tax Adjusted stockholders' eq
Slide 18: Skyward Specialty - Adjusted Stockholders' Equity: Nine Months Ended September 30, 2022
SKYWARD SPECIALTY - ADJUSTED STOCKHOLDERS' EQUITY: FOR NINE MONTHS ENDED SEPTEMBER 30, 2022 (1) $46.9 ($20.6) ($48.9) $435.2 $1.4 ($7.3) $406.7 Adjusted stockholders' Employee shareholder Adjusted operating Net realized and Net unrealized losses on Impact of LPT, net of tax Adjusted stockholders' eq
Slide 19: Skyward Specialty - High Quality Investment Portfolio
SKYWARD SPECIALTY – HIGH QUALITY INVESTMENT PORTFOLIO Skyward Specialty has a well diversified portfolio designed to produce stable and predictable income augmented by attractive risk-adjusted returns Key tenets of our investment strategy include capital preservation, asset-liability duration matchi
Slide 20: Arena Investors is a global financial institution
All data is as of September 30, 2022 unless otherwise specified Arena Investors is a global financial institution with over 120 people across 7 global offices and operating in over 20 countries including its joint ventures and affiliates
Slide 21: About Arena Investors
About Arena Investors 21 • Credit-oriented, asset backed investments, but not “traditional private credit”. ABOUT AREN A IN VES TORS ( 1 ) • Broad Platform – capabilities across Corporate, Real Estate, Structured Finance, and Corporate Securities allow the firm to find the most compelling opportunit
Slide 22: Arena Investors - Key Highlights
Arena Investors – Key Highlights 22 • Arena 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 systems that gov
Slide 23: Arena Investors - Q3 2022 Quarterly Result Highlights
Arena Investors - Q3 2022 Quarterly Result Highlights 23 (dollars in millions) Q3 2022 Q3 2021 YTD Q3 2022 YTD Q3 2021 Q3 2022 Results: • Net loss was $8.2 million for Q3 2022, compared to Recurring Revenue $2.0 million income in Q3 2021 Management Fees $ 8.1 $ 6.4 $ 23.6 $ 16.8 Servicing Fees 2.9 1
Slide 24: Arena Investors - Investment Vehicles
Arena Investors - Investment vehicles (1) 24 $ 3 . 5 B AU M (2) Permanent Capital (Arena F INCOs) EXCESS CAPACIT Y OPPO RT UN IT IES D I V E R S I F I E D S T R AT E G Y $ 2 . 3 B • Arena Finance $0.9B A R E N A I N V E S T O R S F U L LY • Arena Origination Company Open-ended Evergreen Funds New Ze
Slide 25: Arena Investors - Performance
Arena Investors – Performance (1) 25 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 one-year, three-year, five-year and since inception track records hav
Slide 26: Arena Investors - AUM Through September 30, 2022
Arena Investors – AUM Through September 30, 2022 26 Arena Investors’ AUM (including undrawn commitments) contracted $50 mm in Q3 2022 largely due to fund performance. From December 31, 2015, to September 30, 2022, AUM has grown at a compounded annual growth rate of over 50%. Arena Investors – AUM Th
Slide 27: 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 28: Arena FINCOs
fs ARENA
Slide 29: Arena FINCOs: Summary of Operating Results
Arena FINCOs: Summary of Operating Results Three months ended Nine months ended • Q3 2022 Net Loss was $2.6 million September 30 September 30 (-1.5% net investment return) (Currency amounts in millions of US$) 2022 2021 2022 2021 compared to Q3 2021 Net Loss of Investment (loss) income ($0.8) $2.6 $
Slide 30: Arena FINCOs: Summary of Net Assets
Arena FINCOs: Summary of Net Assets (Currency amounts in millions of US$) September 30, June 30, 2022 December 31, 2021 Fair Value 2022 Cash and cash equivalents $11.7 $4.6 $36.3 • The combination of the secured Due from brokers, net (29.0) (30.3) (1.7) notes and revolving credit facility are Invest
Slide 31: Arena FINCOs: Portfolio breakdown as at September 30, 2022
Arena FINCOs: Portfolio breakdown as at September 30, 2022 Equity / REO / Hard Assets(1) Corporate 53% Private Credit Other 25% Securities 32% Debt 47% Consumer Assets 8% Structured Real Estate and Real Finance Estate Private Credit 2% Commercial and 19% Industrial Assets 14% Arena FINCOs held 284 p
Slide 32: The Westaim Corporation
The Westaim Corporation 70 York Street, Suite 1700 Toronto, Ontario Canada M5J 1S9 www.westaim.com info@westaim.com