Sandon Capital Investments (SNC) Investor Presentation summary

Key investment highlights

• Shares offer a 6.2% yield (8.2% grossed up for franking) and trade at a 7.2% discount to NTA, with monthly dividends providing regular cash flow.

• Portfolio companies are resilient, with strong balance sheets and exposure to performing sectors.

• Profits reserves and franking balance support current dividend levels for approximately four years.

• SNC has outperformed key indices over 3 years and since inception, with a 67% win/loss ratio in investment selection.

• Compared to peers, SNC offers a higher yield and trades at a larger discount to NTA among monthly income LICs.

Portfolio company updates

• Carbon Conscious Investments Ltd generates revenue from large-scale carbon projects, with major contracts extending to 2027/2030 and a premium ACCU price; paid a $720K fully franked dividend.

• QPM Energy is expanding gas-fired power generation, with a new 112MW plant due in 2027 and significant gas reserves.

• Southern Cross Media Group is considered undervalued, with activist efforts underway to change the board and unlock value.

• COG Financial Services has strengthened its board, sold non-core assets, and acquired EasiFleet, expanding public sector exposure.

• Karoon Energy has shifted to a capital management focus, initiating dividends and buybacks following activist engagement.

Investment philosophy and approach

• Focus on undervalued companies where prices are below intrinsic value, using activism to unlock value.

• Employs both visible and less visible engagement techniques, including board changes and proxy contests.

• Long-term, patient approach supported by a strong investor base and extensive network.

• Team has decades of experience in financial markets and asset management.