Caledonia Investments PLC · LSE:CLDN
Caledonia Investments — H1 2010 Earnings Presentation
19 slides from Caledonia Investments's earnings presentation, November 2010
Slide 1: Presentation of half year results for the six months ending 30 September 2010
Presentation of half year results for the six months ending 30 September 2010 www.caledonia.com
Slide 2: Caledonia – background and today
Caledonia – background and today Background: Quoted since 1960 Originally holding company for Cayzer shipping interests 1987 becomes pure investment company post sale of British & Commonwealth Holdings C Converted d to investment i trust status in i Aprilil 2003 Today: y FTSE 250 company
Slide 3: Look back review
Look back review Successful core strategy Wellll differentiated d ff d niche h in market k Annualised TSR return of 9.8% vs. FTSE of 7.7% over 23 years 2
Slide 4: Core investment philosophy unchanged
Core investment philosophy unchanged Significant minority stakes Board seat Quoted and unquoted companies/funds Global reach Value orientated style into growth companies Long term approach h Particular emphasis on high quality management 3
Slide 5: Areas for improvement
Areas for improvement Too many investments Many are sub-scale b l Management structure reflects a smaller organisation Dividend yield 2.1% - low vs. FTSE All-Share 4
Slide 6: Initial recommendations
Initial recommendations Reorganise management structure - Distinct ‘pools’ ‘ l ’ off capitall - Direct responsibility - Clear objectives New income ‘pool’ to underpin sustainable dividend growth Fewer but larger investments Enhance exposure to Asia 5
Slide 7: Objectives remain
Objectives remain To provide an increasing store of wealth for shareholders To pay a progressive annual dividend Outperform FTSE All-Share All Share TR over 5 and 10 year basis 6
Slide 8: Highlights to 30 September 2010
Highlights to 30 September 2010 3.5% increase in diluted NAV per share since 31 March 2010 Outperformance of FTSE All-Share All Share Index by 5% Summary u a y of o the six months o to o 30 September p b 2010 0 0 30 September 31 March Change 2010 2010 Diluted NAV per share 2105p 2034p +3.5% FTSE
Slide 9: Highlights to 30 September 2010 (continued)
Highlights to 30 September 2010 (continued) NAV per share increase +130% over 7½ years* (64% outperformance) +20% over 5 years (15% outperformance) TSR increase i +159% over 10 years (127% outperformance) +9% over 5 years (15% underperformance) CAGR Caledonia: +3.6% +3 6% FTSE All-Share: +0.9% N
Slide 10: Dividend
Dividend 43 years of rising dividends – 10 year CAGR +4.4% (10 year RPI +2.7%) 11.1p per share interim dividend: +4.7% increase 9
Slide 11: Cash / facilities
Cash / facilities Net cash position maintained – net cash of £19m at 30 Sep 10 (£8m at 31 Mar 10) Continued cautious stance in fragile markets Increasing g liquidity q y during g second half £100m five year revolving facilities – expiry July 2013 10
Slide 12: Share Price discount/(premium) to NAV per share
Share Price discount/(premium) to NAV per share Mindful of impact of widening discount on shareholder value Limited scope to impact through share buy backs Long term NAV performance will remain our focus 11
Slide 13: Performance attribution for the period ending 30 September 2010
Performance attribution for the period ending 30 September 2010 6 month Since change (%) conversion(%) Net asset value per share performance +3 5% +3.5% +129 6% +129.6% FTSE All-Share Index -1.5% +65.2% Outperformance p / ((Underperformance) p ) +5.0% +64.4% Relative performance due to sector exposu
Slide 14: Principal investments in the six months to 30 September 2010
Principal investments in the six months to 30 September 2010 Investments of £49m Holding £m New investments De La Rue (high-security printing) 1.4% 10.0 IAP Gateway to India (new Indian listed equities fund) 93.8% 9.8 e us Microcap Perlus c ocap (US micro-cap c o cap fund) u d) 4.7 Wedbush (US sec
Slide 15: Principal realisations in the six months to 30 September 2010
Principal realisations in the six months to 30 September 2010 Realisations of £60m Proceeds Realised £m gain £m Realisations Rathbones (part sale of holding) 20.4 12.5 P l Capital Polar C it l funds f d (redemptions) ( d ti ) 13 6 13.6 11 1.1 Avanti Communications (repayment of loan)* 11.2 - Other
Slide 16: Contribution to change in net assets
Re CALEDONIA INVESTMENTS Contribution to change in net assets between 31 March 2010 and 30 September 2010 1240 fim 1220 £15m 1200 £26m 1180 £m 1160 - Portfolio valuation by class: Quoted equities 62%, unquoted investments 38%. 1140 - Quoted equities increased in value by 2%, unquotec investments inc
Slide 17: Top ten investments: contribution to change in net assets
ae CALEDONIA INVESTMENTS Top ten investments: Contribution to change in net assets between 31 March 2010 and 30 September 2010 1230 r | £1,224m 21% 1220 8% 1210 50% 1200 8% _ a 40% & 1190 £1,182m 1180 + 2% 4% Figures shown indicate the underlying 9ercentage change in value of the investments over tn
Slide 18: Key drivers of change in unquoted valuations
Re CALEDONIA INVESTMENTS Key drivers of change in unquoted valuations between 31 March 2010 and 30 September 2010 470 £14.3m £461.8m 460 450 £9.5m -£1.7m || Pe 440 £2.4m £433.2m | £m 4130 420 410 400 T T T T T T 1 March 2010 Add'ns/Real'ns Profits Multiples Change in fund val'n Other September 2010
Slide 19: Net asset distribution at 30 September 2010
Net asset distribution at 30 September 2010 Business Currency % % Geography % Sector Pounds sterling 76 Funds 28 UK 64 US dollar 8 Financial 23 Europe 15 Euro 8 Consumer 17 Asia 14 Indian rupee 7 Industrial 12 N.America 7 Oth Other 1 P Property t 10 Oil & Gas 9 Cash & Other 1 18
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