Tetragon Financial Group Limited

Thank you for joining Tetragon's 2022 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.tetragoninv.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 Tepsegon Financial Group Limited, I'd like to welcome you all to our investor call. And we're going to focus on the company's 2022 annual 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, both those taken electronically via the web-based system at the end of the presentation, 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, Tetragon shares are subject to restrictions on ownership by US persons and are not intended for European retail investors. These are both described on our website. Tetragon 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 Tetragon 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 the financial condition on the products and markets in which Tetragon invests. Our performance may change materially as a result of various possible events or factors. So with that intro, I'd like to pass over to Paul.

Thank you, Paddy. So as you will be familiar with, Tetragon continues to focus on three main metrics. Firstly, we look at how value is being created via net asset value per share total return or NAV for share total return. Secondly, we look at investment returns measured as a return on equity. And thirdly, we monitor how value is being returned to shareholders through distributions. mainly in the form of dividends. The fully diluted NAV per share was $29.69 at 31st of December 2022. After adjusting for dividends reinvested at the NAV, the NAV per share total return for the year was 1%, which compared to 14.1% in 2021. Since IPO in 2007, Tectracon has now achieved an annualised NAV per share total return of 10.8%. Moving on to the ROE. So for monitoring investment returns, we use an ROE calculation, which was minus 0.8% for 2022. That's net of all fees and expenses, which is below our target ROE range of 10 to 15%. With reference to that target, the average ROE achieved since IPO is now 11.6%, which is within the target range I just mentioned. Later on in the call, we'll give more colour 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 in the fourth quarter, which represents a dividend of 44 cents for the full year. Based on the year-end share price of $9.62, the last four quarters dividend represents a yield of approximately 4.6 cents. Now I'm going to move on to the NAV bridge. This breaks down into the component parts, the change in TETRACON's fully diluted NAV per share from $29.86 at the end of 2021 to $29.69 per share at 31st December 2022. So the different component parts here are as follows. Investment income increased NAV per share by 65 cents. Operating expenses, management and incentive fees reduced NAV per share by 78 cents, with a further 11 cents per share reduction due to interest expense incurred on the revolving credit facility. On the capital side, gross dividends reduced now per share by 44 cents, and there was a net dilution of 88 cents per share, which is labeled as other share dilution. This bucket primarily reflects the impact of dilution from stock dividends, plus the additional recognition of equity-based compensation shares. Finally, share repurchases were accretive to Napa Share. During 2022, it increased this number by $1.39. So I will now hand back over to Paddy.