Caledonia Investments PLC · LSE:CLDN
Caledonia Investments — H1 2011 Earnings Presentation
25 slides from Caledonia Investments's earnings presentation, November 2011
Slide 1: Presentation of half-year results for the six months ended 30 September 2011
Presentation of half-year results for the six months ended 30 September 2011 www.caledonia.com
Slide 2: Introduction and Highlights for the six months
Introduction and Highlights for the six months Will Wyatt Chief Executive 1
Slide 3: Highlights six months to 30 September 2011
Highlights six months to 30 September 2011 • 13.4% decrease in diluted NAV per share since 31 March 2011 • 0.1% NAV outperformance of FTSE All-Share Index (down -13.5%) • 12.3% decrease in diluted NAV total return per share since March 2011 (0.5% underperformance vs FTSE All-Share TR) Summary of the
Slide 4: Highlights six months to 30 September 2011
Highlights six months to 30 September 2011 • NAV per share performance -9% over 5 years (4.0% outperformance) +104.6% over 8½ years since conversion to IT status (51.7% outperformance) • TSR performance -18.8% over 5 years (22.8% underperformance) +177.9% over 10 years (118.7% outperformance) • 44 y
Slide 5: Share price discount/(premium) to NAV
Share Price – discount/(premium) to NAV per share 30% Ranged between 17% - 22% during period 25% Share price discount/(premium) to NAV 20% 15% 10% 5% 0% -5% Caledonia AIC Global Growth Sector Half-year results 2011 4
Slide 6: Dividend Growth
Dividend Growth – 10 year CAGR 4.5% 40 44 years of increasing dividends 35 Interim increased +5.4% 30 pence per share 25 20 15 10 5 0 Half-year results 2011 5
Slide 7: NAV Summary by Pool period to 30 September 2011
NAV Summary by Pool period to 30 September 2011 Value Net gains Value 31 Mar 11 Investments Disposals and other 30 Sep 11 Total £m £m £m £m £m return Quoted 427.0 16.6 – (88.2) 355.4 -19.8% Unquoted 281.2 0.3 (4.9) (16.2) 260.4 -4.3% Asia 159.0 18.7 (11.9) (18.1) 147.7 -10.4% Property 105.3 4.7 (0.2
Slide 8: Portfolio by Pool and Geography as at 30 September 2011
Portfolio by Pool and Geography as at 30 September 2011 Pool Distribution Geographical Distribution 7% 1% UK Quoted 10% 15% 32% Unquoted Continental 15% Europe Asia Asia Property N America Funds 10% Income & Other Growth 18% 56% 13% 23% Region is based on the country of listing, country of domicile
Slide 9: Significant Contributors to Performance during the period
Significant Contributors to Performance during the period Value Value Income Total return Investment Pool 31 Mar 2011 30 Sep 2011 in period in period £m £m £m £m Significant Outperformers Capital Today China Asia 20.7 27.2 – 10.2 Polar Capital Quoted 14.5 19.3 0.6 5.4 Sterling Industries Unquoted 25
Slide 10: Investment Activity during the period
Investment Activity during the period • Total investments of £124m Holding £m % Significant Investments Income and Growth pool n.a. 71.1 Fund investments n.a. 12.6 Eredene Capital 21.6 6.5 Realised • Total realisations of £39m Proceeds gain/(losses) £m £m Significant Realisations Nova Springboard 10
Slide 11: Income and Growth Pool as at 30 September 2011
Income and Growth Pool as at 30 September 2011 • 5.0% yield • Stephen Mitchell Sector Distribution Geographic Distribution 4% 19% 13% 29% 9% UK Financial Europe Property N America Oil & Gas 4% Asia Industrial Australia Consumer 52% S.America 25% 20% 17% Half-year results 2011 10
Slide 12: Financial Review
Financial Review Stephen King Finance Director 11
Slide 13: Summary Statement of Financial Position as at 30 September 2011
Summary Statement of Financial Position as at 30 September 2011 Sep 2011 Mar 2011 Change £m £m £m Investments and other non-current assets 1,113.9 1,184.0 (70.1) Trade and other receivables 7.4 3.6 3.8 Cash and cash equivalents 1.7 101.2 (99.5) Current assets 9.1 104.8 (95.7) Total assets 1,123.0 1,
Slide 14: Caledonia NAV annual relative performance since conversion
Caledonia NAV annual relative performance since conversion 15% 3500 3300 10% 3100 5% 2900 0% FTSE All-Share index 2700 -5% 2500 2300 -10% 2100 -15% 1900 -20% 1700 Mar Mar Mar Mar Mar Mar Mar Mar Mar Sep 2003 2004 2005 2006 2007 2008 2009 2010 2011 2011 Annual relative performance (LHS) FTSE All-Shar
Slide 15: Movements in Net Asset Value for the period
Movements in Net Asset Value for the period as at 30 September 2011 1,300 £1,259m £7m -£159m 1,250 1,200 £m 1,150 -£15m -£1m £1,091m 1,100 1,050 1,000 Opening NAV Revenue return Capital losses Dividends Other Closing NAV Category Half-year results 2011 14
Slide 16: Appendices
Appendices Page • 5 year NAV Performance 16 • Portfolio Distribution by Sector 17 • Strategy and Themes for each Pool 18-19 • Top Five in each Pool 20-24 15
Slide 17: 5 Year Diluted NAV per Share Performance
5 Year Diluted NAV per Share Performance 2,400 2,200 2,000 1,800 (p) 1,600 Diluted NAV/share FTSE All Share rebased 1,400 1,200 CAGR: Caledonia = -2.0% FTSE All-Share = -2.7% Half-year results 2011 16
Slide 18: Portfolio Distribution by Sector as at 30 September 2011
Portfolio Distribution by Sector as at 30 September 2011 18% 24% 11% Financial Funds Property Oil & Gas Industrial Consumer 8% 27% 12% Half-year results 2011 17
Slide 19: Strategy – pools of capital
Strategy – pools of capital Pool 31 Mar 2011 31 Mar 2011 30 Sep 2011 30 Sep 2011 Possible future £m % £m % disposition Quoted 427.0 34% 355.4 32% 20-30% Unquoted 281.2 22% 260.4 24% 20-30% Asia 159.0 13% 147.7 13% 15-20% Property 105.3 8% 105.8 10% 5-10% Funds 198.6 16% 171.6 16% 10-15% Income & Gro
Slide 20: Key Themes for each Pool
Key Themes for each Pool Quoted - Concentrated portfolio of 10-15 companies, partnership approach, long hold periods Unquoted - 8-10 companies, MBOs, growth/development capital, structured equity, co-investment Asia - India – selective direct portfolio of 3-5 companies with local partners, funds and
Slide 21: Quoted Pool
Quoted Pool Net cash Value investment Net gains Value 31 Mar 11 and income and income 30 Sep 11 Total return Significant investments £m £m £m £m % Close Brothers 165.9 – (36.1) 129.8 -22% Bristow Group 72.0 (0.4) (5.1) 66.5 -7% AG Barr 42.0 (0.6) (0.7) 40.7 -2% Avanti Communication 55.9 1.3 (23.4) 3
Slide 22: Unquoted Pool
Unquoted Pool Net cash Value investment Net gains Value 31 Mar 11 and income and income 30 Sep 11 Total return Significant investments £m £m £m £m % Cobepa 85.1 (1.4) 2.7 86.4 +3% Oval 41.6 (0.6) (8.8) 32.2 -21% Satellite Information Services 38.5 - (9.3) 29.2 -24% Sterling Industries 25.4 (1.5) 4.2
Slide 23: Asia Pool
Asia Pool Net cash Value investment Net gains Value 31 Mar 11 and income and income 30 Sep 11 Total return Significant investments £m £m £m £m % Dewan Housing Finance 37.6 (0.5) (6.2) 30.9 -17% Alok Industries 28.8 (5.4) (4.4) 19.0 -18% First Blue Home Finance 21.0 – (6.6) 14.4 -31% Capital Today Ch
Slide 24: Property Pool
Property Pool Net cash Value investment Net gains Value 31 Mar 11 and income and income 30 Sep 11 Total return Significant investments £m £m £m £m % London & Stamford 39.4 (1.0) (1.5) 36.9 -4% Quintain Estates 24.4 – (2.3) 22.1 -9% Edinmore Investments 12.3 – 1.3 13.6 +10% Buckingham Gate 10.5 – 0.2
Slide 25: Funds Pool
Funds Pool Net cash Value investment Net gains Value 31 Mar 11 and income and income 30 Sep11 Total return Significant investments £m £m £m £m % British Empire Securities 103.3 (0.4) (15.0) 87.9 -14% Nova Springboard 24.2 (10.7) (1.5) 12.0 -10% Pragma funds 13.4 2.7 (0.6) 15.5 -4% Perlus Microcap 10
Caledonia Investments — H1 2011 Earnings Presentation on 6ix