Tetragon Financial Group Limited

Good afternoon. Thank you for joining Tetragon's 2024 half-yearly 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 and As a reminder, this call is being recorded. I will now turn you over to Patty Deer to commence the presentation.

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 2024 first half results. Paul Gannon, our CFO, We'll 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 will 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 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 Tetragon shares, and who 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, and that may result from the investment. I would like to remind everyone that the following may contain forward-looking comments, including statements regarding the attentions, beliefs or current expectations concerning performance and financial condition on the product and markets in which Tetragon invests. Our performance may change materially as a result of various possible events or factors. So with that, I will 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. And finally, how value is being returned to shareholders through distributions, mainly in the form of dividends, but also in the form of buybacks. The fully diluted NAV for share was $31.50 at 30th June, with a NAV for share total return of 1.9% for the first half. Since its IPO in 2007, Tetragon has achieved an annualized NAFTA share total return of 10.3%. For monitoring investment returns, we use an ROE calculation, which was plus 1.3% for H1 2024, and that's net of all fees and expenses. The average ROE achieved since IPO is now at 11%, which is within the target range of 10 to 15%. So looking at the final key metric, Tetragon declared a dividend of 11 cents in the second quarter, which represents a dividend of 22 cents year to date. Based on the quarter end share price of $10.30, the last four quarters dividend represents a yield of approximately 4.3%. In addition to this, Tetragon also returned approximately $25 million to shareholders during the first half to a tender offer in April. And we'll reference this again when we go to the next slide which is the NAVBridge. So this shows the NAVBridge, which breaks down into its component parts, the change in Tetragon's fully diluted NAV per share, which started the year at $31.13 and ended the 30th of June at $31.50. Investment income increased NAV per share by 82 cents per share. Operating expenses, management and incentive fees a reduced NAV per share by 26 cents with a further 14 cents per share reduction due to interest expense incurred on the revolving credit facility. On the capital side, gross dividends reduced NAV per share by 22 cents. There was a net dilution of 40 cents per share, which is labeled in the NAV bridge as other share dilution. This bucket primarily reflects the impact of dilution from stock dividends, plus the additional recognition of equity-based compensation shares. This was offset by share repurchases, which were accretive to NAFTA share, increasing this number by 57 cents. Tetracon repurchased $25 million of its non-voting shares during H1 2024, with the tender offer being completed in April. Inception state, the company has returned approximately $1.7 billion to investors through dividends and share repurchases. I will now hand back over to Paddy.