Tetragon Financial Group Limited

Welcome to the Tetragon Financial Group Limited Investor Call. So ask a question during the audio Q&A. Press 01. After the tone, please state your full name and company and then press the hash key. Thank you. Good afternoon. Thank you for joining Tetragon's 2021 Annual Report Investor Call. You are all in listen-only mode. The call will be accompanied by a live presentation, which can be viewed online by registering at the link provided in the company's conference call press release. This press release can be found on the homepage of the company's website, www.tetragonv.com. In addition, questions can be submitted online while watching the presentation. As a reminder, this call is being recorded. I will now turn you over to Paddy Deer to commence the presentation.

As one of the principals and founders of the investment manager of Tepstone Financial Group Limited, I'd like to welcome you to our investor call. We're going to focus on the company's 2021 results. Paul Gannon, our CFO, will review the company's financial performance for the period. Steve Prince and I will talk through some of the detail of the portfolio and performance, and Steve will spend some time discussing the outlook. As usual, we'll conclude with questions, those taken electronically via the web-based system at the end of the presentations. as well as those received since the last update. The PDF of the slides are now available to download on our website, and if you're on the webcast, directly from the webcast portal. Before I go into the presentation, some reminders. First, Teflon shares are subject to restrictions on ownership by U.S. persons and are not intended for European retail investors. These are both described on our website. Tescon anticipates that its typical investors will be institutional and professional investors who wish to invest for the long term in a capital appreciation and income-producing investment. These investors should have experience in investing in financial markets and collective investment undertakings and be capable themselves of evaluating the merits and risks of Tescon shares, and they should have sufficient resources both to invest in potentially illiquid securities and to be able to bear any losses. which may equal the whole amount invested that may result from the investment. I'd like to remind everyone that the following may contain forward-looking comments, including statements regarding the intentions, beliefs, or current expectations concerning performance and financial condition on the products and markets in which Tepcon invests. Our performance may change materially as a result of various possible events or factors. So with that introduction, over to Paul.

Thanks, Paddy. TETSCON continues to focus on three main metrics. We look at how value is being created via NAF per share total return. We also look at investment returns measured as a return on equity. And finally, we monitor how value is being returned to shareholders through distributions, mainly in the form of dividends. The fully diluted NAF per share was $29.86 at the 31st of December 2021. After adjusting for dividends reinvested at the NAS, the NAS per share total return for the year was 14.1%, which compares to 9.5% the prior year. Since IPO in 2007, TETRON has now achieved an annualised NAS per share total return of 11.5%. For monitoring investment returns, we use an ROE calculation, which was 17.3% for 2021 net full fees and expenses, and above our target ROE range of 10% to 15%. With reference to that target, the average ROE achieved since IPO is now plus 12.5%, which is in the middle of the target range I just mentioned. Later on the call, we'll give more color as to how the different asset classes contributed to the return this year. Finally, moving on to the last key metric, dividends. Techcon declared a dividend of 11 cents for the fourth quarter, an increase on the previous quarter of one cent, and represents a dividend of 41 cents for the full year. Based on the quarter end share price of $8.50, the last four quarters dividend represents a yield of approximately 4.8%. Finally, onto the NavBridge. This breaks down into its component parts, the change in TetraGons Blue Diluted NAPRA share from $26.57 at the end of 2020 through to $29.86 per share at the end of 2021. Some of the component parts here. Investment income increased NAPRA share by $6.38 per share. Operating expenses, management, and incentive fees reduced NAPRA share by $1.82 per share. with a further $0.06 per share reduction due to interest expense incurred on the revolving credit facility. On the capital side, gross dividends reduced the NAFTA share by $0.41, and there was a net dilution of $0.81 per share, which is labelled as other share dilution. This bucket primarily reflects the impact of dilution from stock dividends, plus the additional recognition of equity-based compensation shares. I will now hand over to Paddy.