Sandon Capital Investments (SNC) Investor Presentation summary

Investment highlights and performance

• Shares offer a 7.3% yield (9.7% grossed up for franking) and trade at a 14.9% discount to NTA as of early April 2025.

• Portfolio companies generally have strong balance sheets and are positioned for economic headwinds and capital management.

• Quarterly dividends provide regular cash flow, with reserves and franking to sustain payouts for about four years.

• Since inception, 63cps in dividends and 24cps in imputation credits have been paid or announced.

• Gross performance to March 2025: 1-year return 17.3%, 3-year return 3.7%, since inception 9.1% p.a.

Portfolio composition and key holdings

• Selected holdings make up about 50% of the portfolio, including Fleetwood Ltd (13.8%), Spectra Systems (10.5%), and COG Financial Services (9.3%).

• Portfolio provides exposure to SME financial services, infrastructure, resources, agriculture, unique technologies, and turnaround opportunities.

• Top 5 contributors in the past year: Fleetwood Ltd, Wellard Ltd, Nuix Ltd, Global Data Centres, Midway Ltd.

• Win/loss ratio of ~63% for the 12 months to March 2025, reflecting disciplined investment selection.

Notable investments and exits

• Fleetwood Ltd has shown a successful turnaround, with strong performance in building and community solutions and an on-market buy-back.

• Spectra Systems delivers high EPS growth (36% in CY2024), high margins, and strong cash flow, with a 4.2% dividend yield.

• Carbon Conscious Investments manages large-scale carbon projects, with major contracts to 2027/2030 and premium ACCUs.

• COG Financial Services is Australia’s largest SME finance broker, with recent board changes and strong sector growth.

• Karoon Energy transitioned from explorer to producer, initiated dividends and buy-backs, and focuses on operational improvements.

• Magellan Financial Group identified as undervalued; engagement led to operational stabilization, but concerns remain over acquisition strategy.

• Recent exits include Global Data Centres, Midway Ltd, Wellard Ltd, A2B, and Foundation Life, often via sales or capital returns.