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SNC Shareholder Presentation September2025 For personal use only
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Thispresentation is prepared by Sandon Capital Investments Limited (SNC) for general information purposes only. The information contained in this presentation is for information purposes only and has been prepared for use in conjunction with a verbal presentation and should be read in that context. Thepresentation is not a recommendation, offer or invitation by any person or to any person to buy, sell or apply for securities or interests in any company. You should not construe the contents of this presentation as tax or investment advice. No financial product advice is provided in this presentation and nothing in it should be taken to construe a recommendation or statement of opinion that is intended to influence a person in making a financial product decision. Neither SNC, its manager, Sandon Capital Pty Ltd (Sandon Capital), nor any related or associated companies guarantees the performance of SNC, the return of investor’s capital or any specific rate of return. Nothing in this presentation takes into account any person’s investment objectives, financial situation or particular needs. You should seek advice before making any investment decision. The projected results and any forward-looking statements contained in this presentation are not historical facts. They are based on current expectations, speak only as of the date of this presentation, as the case may be, and are susceptible to a number of risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those expressed or implied by such projected results and statements. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of SNC and Sandon Capital. Although we believe that the assumptions underlying any projected results and forward-looking statements are reasonable, any of the assumptions could be inaccurate and, therefore, there can be no assurance that the forward-looking statements included in this presentation will prove to be accurate. In light of the significant uncertainties inherent in such forward-looking statements, the inclusion of such information should not be regarded as a representation to future results or that the objectives and plans expressed or implied by such forward-looking statements will be achieved. We will not undertake, and specifically decline any obligation to disclose the results of, any revisions that may be made to any forward- looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of any events. In addition, it is our policy generally not to make any projections as to future results, and we do not endorse any projections regarding future performance that may be made by third parties. Any quoted performance is post fees and expenses but before tax and assumes distributions were reinvested. Dollars are AUD, unless otherwise stated. We are not responsible for the statements made by or attributed to others in this presentation. Past performance is no guarantee, nor does it provide any indication, of future returns. © Sandon Capital Investments Limited 2025 Lonsec Research Ratings and Logos: The rating issued 10/2024 is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and received a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report.© 2024 Lonsec. All rights reserved. 2 Important Information For personal use only
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Opportunity –monthly yield at a discount to NTA Highlights • SNC shares trade at an attractive yield of 6.2% (8.2% grossed up for franking) 1 • The SNC portfolio can be bought at a 7.2% discount to NTA 2 • Many of SNC’s investments trade at meaningful discounts to our estimate of their intrinsic value • Investors buying SNC today are buying a “discount at a discount” • Current profits reserves and franking balance allow SNC to sustain the current dividend for ~4 years, all else held equal3 0.47 cps fully franked monthly dividends • Monthly dividends provide more regular cashflow to shareholders • Board has announced dividends for Oct, Nov & Dec 2025 Portfolio companies • The bulk of the portfolio remains exposed to resilient, performing sectors of the economy • The majority of our investments have very strong balance sheets, leaving them well placed to deal with any economic headwinds as well as undertaking capital management initiatives Turnaround opportunities • Board and management changes over the last three years at some companies have delivered better financial and operational performance Sandon Capital Investments Ltd (ASX:SNC) 3 1. Based on SNC closing share price on 8 Sep 2025 ($0.915) 2.Based on pre-tax NTA as at 31 Aug 2025 ($0.9855) 3. As at 31 Aug 2025 A T T R A C T I V E D I V I D E N D Y I E L D 6.2% (8.2% incl. franking )1 D I S C O U N T T O N T A 7.2%1,2 S O L I D P R O F I T S R E S E R V E S & F R A N K I N G 3 42.3 cps 7.1 cps For personal use only
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Investment Highlights 4 Sandon Capital Investments Limited • SNC has paid fully franked dividends each year since inception • Annualised dividend increased to 5.64cps 1 • Monthly dividends will provide more regular cashflow • Paid 65.8 cps of dividends and 24.9 cps of imputation credits since inception Since inception (annualised) 3 yr return (p.a.) 1 yr return Gross Performance to 31 Aug 2025 10.0% 15.1% 21.4% SNC 7.9% 9.8% 23.4% Small Ordinaries Accumulation Index +2.1% +5.3% -2.0% outperformance 9.5% 12.8% 14.9% All Ordinaries Accumulation Index 0.5% +2.3% +6.5% outperformance Source: Bloomberg, Sandon Capital analysis. LIC price data is as of 25 Aug 2025 Note: SNC Gross performance is after management fees but before any performance fees, corporate expenses and taxes Source: Sandon Capital Investments Ltd 1. Annualised dividend is calculated as 12 x 0.47cps monthly dividend. Note dividends are not guaranteed. 65.8 24.9 0 10 20 30 40 50 60 70 80 90 100 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Int FY22 Final FY23 Int FY23 Final FY24 Int FY24 Final FY25 Qtr 2 FY25 Qtr 3 FY25 Qtr 4 Total Cumulative Dividends Dividends Imputation Credits For personal use only
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Investment Highlights 5 Sandon Capital Investments Limited • Larger discount, higher yield when compared to other monthly income paying LICs Source: Bloomberg, Sandon Capital analysis. LIC price data is as of 8 Sep 2025. Peer data is based on announced or target yields, where appropriate. Source: Sandon Capital Investments Ltd SNC Dividend Yield 6.2% P/NTA -7.2% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% Price-to-NTA Dividend Yield Monthly Income LICs (using equity-dominant strategies) For personal use only
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Investment highlights 12-mths to 31 Aug 2025 6 Sandon Capital Investments Limited Sources: Sandon Capital, Enfusion. Win/Loss ratio is calculated as gross return before all fees and expenses for those investments owned during the 12 months ended 31 Aug 2025. This includes both realised and unrealised (marked-to market) gains and losses. Performance in rising and falling markets also uses gross returns of the SNC portfolio after investment management fees but before any performance fees, corporate expenses and taxes. • Win/loss ratio ~67% highlights investment selection and portfolio discipline 2.9% -3.3% 1.9% -1.3% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% Up Market Average Down Market Average SNC Gross Performance in Rising and Falling Markets (since inception to 31 Aug 2025) All Ords SNC Gross -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% Gains vs Losses (12 months to 31 Aug 2025) For personal use only
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Carbon Conscious Investments Ltd 7 Sandon Capital Investments Ltd • CCIL manages large scale projects (~17,000 ha) registered with the Clean Energy Regulator that generate Australian Carbon Credit Units (ACCUs) • CCIL has Carbon Plantation Agreements (CPAs) with Origin Energy and BP • The CPAs are management / ACCU offtake contracts that extend to December 2027 and 2025 respectively (with BP having the right to extend to 2030) • During the contracted period, most ACCUs are attributable to Origin and BP. CCIL’s major revenue source is management and license fees • Once the CPAs have ended, all ACCUs generated will be credited to CCIL and will become the basis of revenue through to late 2039, providing exposure to ACCU prices • CCIL ACCUs are high quality environmental plantings and attract a premium to the ACCU spot price ($54 vs $35 generic) • SNC received a fully franked dividend of $720K from CCIL in February 2025 • CCIL currently holds approximately $3.0 million in cash Source: Bloomberg $30.00 $32.00 $34.00 $36.00 $38.00 $40.00 $42.00 $44.00 05-Aug-24 05-Nov-24 05-Feb-25 05-May-25 05-Aug-25 ACCU Spot Price For personal use only
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QPM Energy Ltd (QPM) 8 Sandon Capital Investments Ltd Financial Summary Sources: Bloomberg, QPM Announcements Share price as at 8 Sep 2025. • QPM generates revenue from: • Direct sale of gas from its Moranbah Gas Project • Using gas to generate electricity, mainly peaking power • QPM has operating control of two gas fired power stations: • 242MW Townsville Power Station • 12.8MW Moranbah Power Station • QPM is now developing the Isaac Energy Hub. Stage 1 involves building the Isaac Power Station (IPS), a 112MW gas fired power station, due to be commissioned in mid-2027 • IPS Capital Cost is estimated at $196m, with estimated $71m annual revenue and $49m operating margins 1 • QPM secured two 55.8MW gas turbines, which accelerates the development timeline • IPS will bring generation capacity to 284MW, with aims to grow to 500MW • We expect further capital will be required • Peaking/firming gas is essential as renewables are rolled out $0.031 Share price $95.8m Market capitalisation $44.9m Net debt / (cash) $140.7m Enterprise value (EV) >400PJ Gas reserves 1. QPM ASX Announcement dated 30 June 2025, figures based on Feasibility Study For personal use only
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Southern Cross Media Group Ltd (SXL) 9 Sandon Capital Investments Ltd Financial Summary Sources: Bloomberg, SXL Announcements Share price as at 8 Sep 2025. • SXL owns FM radio stations including Triple M and Hit FM • SXL also owns the LiSTNRpodcast platform • We believe SXL has valuable assets. The company trades at a substantial discount to our estimate of its intrinsic value, though we consider that its full value can only be realised with Board and management changes. • In 2019, SXL shares traded at over $9.00 per share • In late 2024, they traded as low as $0.49 per share • Sandon Capital began accumulating shares November 2024 • Following some private discussions with SXL Directors, we commenced a public campaign in May 2025 • We have sought the removal of ALL current SXL Directors $0.75 Share price $179.9m Market capitalisation $67.6m Net debt / (cash) $247.5m Enterprise value (EV) $80.0 EBITDA FY26E 3.1x EV/EBITDA 0.00 0.50 1.00 1.50 2.00 2.50 3.00 19-Mar-20 19-Mar-21 19-Mar-22 19-Mar-23 19-Mar-24 19-Mar-25 SXL Share Price For personal use only
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COG Financial Services Ltd (COG) 10 Sandon Capital Investments Ltd Financial Summary Sources: ASX Announcements, Bloomberg, Sandon Capital analysis. Share price as at 8 Sep 2025. • COG is: • Australia’s largest SME finance broker network (~21% share) • a fast-growing novated lease provider • a specialist lender through its Westlawn business • Recent Board and shareholder changes have begun to change investor perceptions • Non-core investments (EPY, CAF) have been sold, generating cash to fund further investment opportunities • Tony Robinson, ex-PSC Insurance, has joined COG Board as new chair as well as a shareholder • COG recently announced the $40 million acquisition of EasiFleet Pty Ltd, a salary packaging and novated leasing business, via its Paywisesubsidiary • Paywisenow has contracts with WA, NT, Tas, Qld and ACT governments –providing exposure to the public sector workforce $2.00 Share price $403.7m Market capitalisation 0.60 0.80 1.00 1.20 1.40 1.60 1.80 2.00 03-Aug-2303-Nov-2303-Feb-2403-May-2403-Aug-2403-Nov-2403-Feb-2503-May-2503-Aug-25 COG Share Price For personal use only
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Karoon Energy Ltd (KAR) 11 Sandon Capital Investments Ltd Financial Summary Sources: KAR ASX Announcements, Share price as at 8 Sep 2025. AUD/USD=0.66 • KAR is an oil and gas producer with offshore operations in USA (Gulf of Mexico) and Brazil (Santos Basin) • In recent years, KAR has evolved from being an explorer to producer • We invested on the basis that its capital management approach had to evolve as well • Since commencing a public campaign last year, KAR has commenced paying dividends, completed two US$25 million buy- backs and is undertaking a third US$75 million buy-back • It also announced a revised focus on improved operational performance and organic growth, both of which we support • We commend the KAR Board for these decisions. They are establishing their credentials as astute capital allocators $1.62 Share price $1,188m Market capitalisation ( A$m ) $784.0 Market capitalisation ( US$m ) $237.9m Net debt / (cash) ( US$m ) $1,022m Enterprise value ( US$m ) For personal use only
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About us For personal use only
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Extensive contacts We build coalitions of like-minded investors Stakeholders include institutional investors, directors, proxy advisers, investment bankers, journalists and ultimate owners Built and nurtured over many years When public, our analysis is widely circulated and read We seek change to create or enhance value 13 Why Sandon Capital Our track record and investor base allows us to be careful and patient Long, established track record of outperformance, with an investor base that supports us to play a long game with investments. Pre-eminent and unique track record of shareholder activism We have unrivalled experience in >40 public and private campaigns For personal use only
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We invest in undervalued companies 14 Investment Opportunities Prices are below their intrinsic value We can encourage positive changes As value investors, we look for undervalued assets, where: Human nature creates attractive investment opportunities that require shareholders to liberate or create value. For personal use only
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Identify companies that are mispriced and where there are opportunities to promote positive changes, and shape the future. Transform a company so its value is better appreciated by the market. Takes time for our approach to bear fruit. Capital we manage is similarly aligned. Allows us to be patient and persistent. Use rigorous analysis to build shareholder consensus. We actively engage with companies to promote positive changes Our Approach 15 For personal use only
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We unlock value by taking a proactive approach Our Activism Technique 16 Discount Less Visible More Visible Intrinsic Value We focus on engaging to maximisethe certainty of our value creation strategies We adapt to each unique situation, employing both a range of visible and less visible techniques Proxy contests Seek board & management changes Multilateral meetings with other shareholders Public Presentations Bilateral meetings with board and management Letters to the board (Asset Value) (Opportunity) For personal use only
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17 Our Team Led by a team with decades of success The CIO is the ultimate decision maker however the depth of expertise and industry experience results in a collaborative process Gabriel Radzyminski Founder, CIO & Portfolio Manager + 2 5 Y R S E X P E R I E N C E As the founder of Sandon Capital in 2008, Gabriel has been involved in the financial services sector for more than 25 years. Gabriel has a BA(Hons) and MCom both from the University of New South Wales. Campbell joined Sandon Capital in 2014 and has more than 20 years of experience in both Australian and international financial markets. Prior to joining Sandon Capital, Campbell work in the United States at Millenium and Citadel, two global hedge funds. Campbell has a BCom and BSci both from University of Melbourne Derek Skeen Chief Operating Officer + 2 5 Y R S E X P E R I E N C E Derek is the Chief Operating Officer of Sandon Capital and has over 25 years experience in the asset management industry. Derek commenced his career at Macquarie Bank in 1995 and over 25 years held increasingly senior roles in the including as Chief Operating Officer –APAC and, most recently, as Global Head of Investment Operations. Derek has a Master of Business Administration from the AGSM at the University of New South Wales. Campbell Morgan Portfolio Manager + 2 0 Y R S E X P E R I E N C E Scarlett is Head of Client Solutions for Sandon Capital and has nearly 20 years’ experience in the finance sector. Scarlett has held senior executive roles at MSCI and Blackrock where she has developed deep expertise across distribution, marketing, management, product and strategy. More recently Scarlett was the Head of Investment Solutions at Morgan Stanley Wealth Australia. Scarlett holds a Bachelor of Commerce from the University of Sydney. Scarlett Dorney Head of Client Solutions ~ 2 0 Y R S E X P E R I E N C E For personal use only
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Gabriel Radzyminski CIO & Portfolio Manager T 02 8014 1188 M 0408 936 357 E gabriel@sandoncapital.com.au C O N T A C T For personal use only