Onex (ONEX) investor relations material

Strategic priorities and progress

• Shifted asset mix to focus on long-term holdings, reducing private equity exposure by 19 points in six months.

• Achieved a more efficient, fully invested balance sheet with net debt at zero after the Convex transaction.

• Asset management business projected to deliver $35 million profit this year, emphasizing FRE and carry generation.

• Resumed share buybacks, viewing current share prices as compelling for repurchase.

• Future capital allocation will balance new investments, buybacks, and liquidity, with priority on the next major deal.

Convex transaction and its impact

• Convex now represents about 45% of investing capital and is the largest value driver.

• Strategic partnership with AIG brought $2 billion in assets to manage and enhanced industry relevance.

• Convex's technology-enabled platform allows for scalable growth and high ROE with minimal incremental costs.

• Convex can double gross written premium without significant expense increases, offering strong operating leverage.

• Expectation of consistent dividends from Convex due to excess capital and efficient operations.

Forward-looking strategy and value creation

• Next three to five years will focus on completing another major direct investment, likely in financial services.

• Asset manager expected to scale rapidly from a small base, contributing more to earnings.

• Aim to shift market perception from NAV-based to earnings-based valuation, with increased transparency on business performance.

• Optionality for shareholders includes potential asset sales or spin-offs if re-rating does not occur.

• Disciplined approach to new deals, prioritizing long-term value and strategic fit over rapid deployment.