Sandon Capital Investments (SNC) Investor Presentation summary

Investment highlights and performance

• Shares offer a 7.1% yield (9.5% grossed up) and trade at a 16.9% discount to NTA, with strong profit reserves and franking to sustain dividends for about four years.

• Over 60cps in dividends and 21cps in imputation credits have been paid since inception, outperforming key indices since inception.

• Win/loss ratio of ~65% in the past year, with top contributors including Nuix Ltd and Spectra Systems Inc.

• Portfolio is concentrated in resilient sectors, with most holdings having strong balance sheets and capital management initiatives.

• Board and management changes in portfolio companies are expected to drive improved performance.

Portfolio composition and key holdings

• Selected holdings make up about 54% of the portfolio, spanning SME financial services, infrastructure, resources, agriculture, and unique technologies.

• Top holdings include Spectra Systems Inc. (11.8%), Fleetwood Ltd (10.6%), Carbon Conscious Investments Ltd (8.0%), and Nuix Ltd (7.2%).

• Investments target companies with turnaround potential, capital management opportunities, and exposure to growing markets.

Case studies and investment theses

• Nuix Ltd: Acquired at a significant discount after scandals; board changes and product focus are restoring confidence.

• Spectra Systems Inc.: Delivers high revenue growth, strong margins, and consistent dividend growth, with central banks as major clients.

• Carbon Conscious Investments Ltd: Manages large-scale carbon projects with long-term contracts, expected to pay fully franked dividends.

• Fleetwood Ltd: Post-management change, legacy issues resolved, benefiting from demand in modular and community solutions.

• Coventry Group Ltd: Achieved a strong turnaround since 2017, with accelerated growth and greenfield expansion plans.

• Midway Ltd: Strategic shift after board changes, asset sales, and a scheme of arrangement at $1.19 per share.

• Karoon Energy Ltd: Transitioned from explorer to producer, initiated dividends and buybacks following activist engagement.

• Magellan Financial Group Ltd: Identified as undervalued, with a five-point plan for change; actions include buybacks, dividends, and product rationalisation.