Tetragon Financial Group Limited

Good afternoon. Thank you for joining Tetragon's 2023 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.

Thank you. As one of the principals and founders of the investment manager of Tetragon Financial Group Limited, I'd like to welcome you to our investor call, which will focus on the company's 2023 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 performance, and Steve will spend some time discussing the outlook. As usual, we'll conclude with questions, those taken electronically via our 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 U.S. persons and are not intended for European retail investors. These are described in some detail on our website. Tetragon anticipates that its typical investors will be institutional and professional investors who wish to invest for the long term and who have experience in investing in financial markets and collective investment undertakings, who are capable themselves of evaluating the merits and risks of Tepcon shares, and who have sufficient resources both to invest in potentially illiquid securities and to be able to bear any losses that may result from the investment, which may equal the whole amount invested. I would 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 conditions 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, let me pass over to Paul.

Thank you, Paddy. Tetragon continues to focus on three key metrics when assessing how value is being created for and delivered to Tetragon shareholders. Firstly, how value is being created via NAV for share total return. Secondly, how investment returns are contributing to value creation measured as a return on equity or ROE. Thirdly, how value is being returned to shareholders through distributions in the form of dividends and buybacks. The fully diluted NAV per share was $31.13 at 31st of December, 23, with a NAV per share total return of 6.4% for the calendar year. Since its IPO in 2007, Tetragon has achieved an annualized NAV per share total return of 10.5%. For monitoring investment returns, we use an ROE calculation. which was positive 5.5% for 2023, and that's net of all fees and expenses. The average ROE that's been achieved since IPO is now positive 11.3%, which is within the target range of 10 to 15% per annum. Moving on to the final key metric, Tetragon declared a dividend of 11 cents for the fourth quarter, which represents a dividend of 44 cents for the full year. Based on the year end share price of $9.88, the last four quarters dividend represents a yield of approximately 4.5%. In addition to this, Tetron also returned approximately $60 million to shareholders during 2023 through two separate tenant offers. And we'll reference this again when we go through the next slide, which is the NAV Bridge. So now onto the NAVBridge, which breaks down into its component parts, the change in Tetragon's fully diluted NAV per share from $29.69 at the end of 2022 to $31.13 per share at the end of 2023. So the key component parts are as follows. Investment income increased NAV per share by $2.56 per share. Operating expenses increased including management and incentive fees, reduced NAB per share by 69 cents, with a further 27 cents per share reduction due to interest expense incurred on the revolving credit facility. On the capital side, gross dividends reduced NAB per share by 44 cents. There was a net dilution of 95 cents per share, which is labeled as other share dilution in the bridge. This bucket primarily reflects the impact of dilution from stock dividends, plus the additional recognition of equity-based compensation shares. However, this was offset by share repurchases, which were accretive to NAV per share by $1.23. So overall, a net accretion here of approximately 28 cents per share. Tetragon repurchased $60 million of its non-voting shares during 2023, with tender offers completing in April and December. Inception to date, the company has now returned approximately $1.7 billion to investors through dividends and share repurchases. And Tetragon also announced yesterday its intention to repurchase approximately $25 million worth of shares, which, based on Tetragon's current NAV and share price, will be accretive to NAV for shares. I will now hand back over to Paddy.