Pershing Square Holdings, Ltd. Public Class USD Accum.Shs · LSE:PSH
Pershing Square Holdings, Ltd. Public Class USD Accum.Shs — Pershing Square Holdings — Investor Presentation (February 2025)
75 slides from Pershing Square Holdings, Ltd. Public Class USD Accum.Shs's investor presentation, Feb 11, 2025
Slide 1: Annual Investor Presentation
Annual Investor Presentation February 11, 2025
Slide 2: Disclaimer
Disclaimer All information provided herein is for informational purposes only and should not be deemed a recommendation to buy or sell any security mentioned. Pershing Square Capital Management, L.P. (“Pershing Square”) believes this presentation contains a balanced presentation of the performance o
Slide 3: Agenda
Agenda Chairman’s Introduction Strategic Update 2024 PSH Performance Review Business & Organizational Update Equity Portfolio Update Q&A
Slide 4: Chairman's Introduction
Chairman’s Introduction
Slide 5: Board of Directors of PSH
Board of Directors of PSH Board Director Summary Experience ‾ Chairman of the Board, Bremont Watch Company Rupert Morley ‾ Trustee and Chairman of investment advisory group, Comic Relief Independent Director Chairman of the Board ‾ Trustee, Kennedy Memorial Trust ‾ Former CEO of Sterling Relocation,
Slide 6: PSH Board Process
PSH Board Process Quarterly meetings; additional meetings as needed Review and monitor Investment performance and portfolio Operational risk management Investor relations Share price performance Expenses Regulatory matters Board Committees (membership limited to independent directo
Slide 7: PSH Board Additional Matters Considered in 2024
PSH Board Additional Matters Considered in 2024 Share buybacks Dividend policy Debt strategy Fee-related amendments to the Investment Management Agreement Pershing Square Capital Management, L.P. (“PSCM”) stake sale Pershing Square USA, Ltd. (“PSUS”) UK fee disclosure forbearance Eur
Slide 8: Long-Term Debt Financing Strategy
Long-Term Debt Financing Strategy PSH’s ability to access low-cost, investment grade, long-term debt is an important competitive advantage for PSH PSH has attractive credit characteristics Simple, transparent and highly liquid investment portfolio Significant asset coverage: PSH debt is covere
Slide 9: Total Debt to Total Capital Ratio Over Time
Total Debt to Total Capital Ratio Over Time Regardless of market or portfolio volatility, PSH has continuously maintained conservative leverage levels and investment grade ratings Total Debt to Total Capital Ratio | 6/30/2015 to 12/31/2024: 10/4/21: Redeemed $369mm of 5.500% 7/25/19: Private 10/1/21
Slide 10: Performance Overview
Performance Overview In 2024, PSH’s NAV appreciated 10.2% and total shareholder return was 3.9%. 2025 is off to a good start, with PSH NAV appreciation of 8.4% and total shareholder return of 12.9%(1) Annualized Returns Market Indices HFRX Indices PSH S&P FTSE 100 MSCI Equity (2) (2) Period NAV Shar
Slide 11: Strategies to Address the Discount
Strategies to Address the Discount Strong investment performance Compound annual NAV net returns of 22.9% for the last seven years(1) Global marketing efforts outside of the United States Inclusion of PSH in the FTSE 100 index in December 2020. Now the 53rd largest company by market capitali
Slide 12: Strategic Update
Strategic Update
Slide 13: PSCM Stake Sale
PSCM Stake Sale On June 3, 2024, PSCM announced the sale of a 10% primary common equity interest for $1.05 billion to a consortium of strategic investors Transaction has no impact on PSCM’s management team and its role in managing PSH PSCM’s obligations under the Investment Management Agreemen
Slide 14: PSUS IPO Update
PSUS IPO Update Made the decision to postpone PSUS IPO, initially planned for July 2024 Received substantial interest from retail and institutional investors (family offices, asset managers, sovereign wealth funds, high-net worth individuals) over a two-month marketing phase However, investor
Slide 15: PSH Discount to NAV Narrowed During PSUS Process
PSH Discount to NAV Narrowed During PSUS Process PSH’s discount to NAV narrowed meaningfully in anticipation of the PSUS IPO and potential associated reduction in PSH performance fees PSH Discount to NAV | 12/31/2023 to 2/10/2025: (20%) July 31, 2024: Pershing Square (22%) withdraws IPO of PSUS (24%
Slide 16: HHH Transaction Background
HHH Transaction Background Pershing Square’s involvement with HHH dates back to its spin-off from GGP in 2010 In November 2010, Pershing Square received 7.8 million shares(1) from the spin-off and, along with other investors, initially capitalized the company with a $250 million rights offering
Slide 17: HHH Transaction Background (Cont'd)
HHH Transaction Background (Cont’d) Over time, PSH and the Pershing Square private funds (collectively, the “Pershing Square Funds”) have increased their ownership in HHH to 37.6% through a series of transactions: Sold 4.7 million shares at an average price of $125 per share in 2018 Acquired 1
Slide 18: Post-Transaction HHH Business Plan
Post-Transaction HHH Business Plan Pershing Square’s proposal is fundamentally to transform HHH into a diversified holding company that purchases controlling interests in public and private companies Pershing Square’s senior leadership becomes the management team of HHH, the holding company Pers
Slide 19: Benefits to PSH from Proposed Transaction
Benefits to PSH from Proposed Transaction Reduction in PSH management fees Management fees paid by PSH to PSCM associated with PSH's current stake of 16.5 million HHH shares would be eliminated These fees today equate to ~$21 million(1), or ~0.15% of PSH's current equity AUM, implying a post-t
Slide 20: 2024 Performance Review
2024 Performance Review
Slide 21: 2024 Performance Overview
2024 Performance Overview 1 2024 Return: PSH NAV Net of Fees vs. Indices Total Return 25.0% 19.2% 10.2% 8.5% 7.8% 7.5% PSH NAV S&P 500 FTSE MSCI HFRX HFRX Equity 100(1) World Activist Hedge Index(2) Index(2) Reflects returns from 12/31/23 through 12/31/24, including dividend reinvestment for indices
Slide 22: Cumulative Net Returns Since Inception
Cumulative Net Returns Since Inception Pershing Square L.P. (“PSLP”) / PSH Since Firm Inception (1/1/04 – 2/10/25) 2,400% PSH Annual Investor Presentation PSLP/PSH: January 19, 2018 2,370% 2,200% Since PSH Inception 2,000% (12/31/12 – 2/10/25) 1,800% PSH: 366% S&P 500: 431% 1,600% 1,400% 1,200% 1,00
Slide 23: Reinforced Commitment to Core Principles
Reinforced Commitment to Core Principles The above is intended to be illustrative and there is no guarantee that PSCM will be able to identify the constituent investments that reflect these characteristics 23
Slide 24: Significant Outperformance Since Permanent Capital Era
Significant Outperformance Since the Inception of Pershing Square’s Permanent Capital Era 1 7 Year Compound Annual Return: PSH NAV Net of Fees vs. Indices Total Return 22.9% 13.8% 10.8% 8.7% 3.6% 4.0% PSH NAV S&P 500 FTSE MSCI HFRX HFRX Equity 100(1) World Activist Hedge Index(2) Index(2) PSH Annual
Slide 25: PSLP / PSH Annual Net Returns
PSLP / PSH Annual Net Returns Year PSLP / PSH S&P 500 2004 42.6% 10.9% 2005 39.9% 4.9% 2006 22.5% 15.8% 2007 22.0% 5.5% PSLP 1.5% Management Fee, 2008 (13.0%) (37.0%) 20% Incentive Fee, 2009 40.6% 26.4% Unlevered 2010 29.7% 15.1% 2011 (1.1%) 2.1% 2012 13.3% 16.0% 2013 9.6% 32.4% 2014 40.4% 13.7% 201
Slide 26: PSLP / PSH Cumulative Net Returns
PSLP / PSH Cumulative Net Returns Net Returns vs. S&P 500 through December 31, 2024 PSH PSLP / PSH 2,185% 694% 415% 324% 331% 173% 147% 180% 242% 97% 10% 25% 1-Year 5-Year 7-Year 10-Year Since PSH Since Firm Inception Inception (12/31/2012) (1/1/2004) PSLP / PSH S&P 500 Note: PSLP/PSH data represent
Slide 27: 2024 Contributors
2024 Contributors Contributors Gross Net(1) Alphabet 4.9% 3.9% Chipotle Mexican Grill 4.4% 3.5% Hilton Worldwide 4.0% 3.2% Brookfield 3.8% 3.0% Freddie Mac 2.3% 1.8% Fannie Mae 2.2% 1.7% Accretion from Share Buybacks 0.4% 0.3% All Other Positions & Other Income / Expense 0.4% 0.3% Total Contributors
Slide 28: 2024 Detractors
2024 Detractors Detractors Gross Net(1) Nike (2.2%) (1.9%) Interest Rate Swaptions (1.9%) (1.7%) Universal Music Group (1.7%) (1.5%) Restaurant Brands International (1.6%) (1.4%) Howard Hughes Holdings (0.6%) (0.5%) Total Detractors - Underlying Portfolio (8.0%) (7.0%) Bond Interest Expense (0.6%) (
Slide 29: Total Assets Under Management
Total Assets Under Management (1) (2) AUM Insider Capital As of 2/10/2025 ($ in millions) Total Equity Total % of Equity Pershing Square Holdings ("PSH") $16,531 $14,215 $3,864 27.2% Pershing Square, L.P. ("PSLP") 1,460 1,460 591 40.5% Pershing Square International ("PSI") 478 478 98 20.4% Total Cor
Slide 30: Business and Organizational Update
Business and Organizational Update
Slide 31: Key Business Developments in the Last Year
Key Business Developments in the Last Year The last twelve months were a productive period marked by robust idea generation and significant progress on strategic initiatives Initiated new core investments in Brookfield and Nike in 2024, and Uber in 2025 Closely monitored macroeconomic developmen
Slide 32: Average Stock Lagged Index Performance in 2024
Average Stock Lagged Index Performance in 2024 While the S&P 500 appreciated by 25% including dividend reinvestment in 2024, the average stock in the index was up just 13%(1) S&P 500 Index vs. S&P 500 Equal Weight Index Return (12/29/2023 to 12/31/2024): 30% 25% 25% 20% Total Return 15% 13% 10% 5% –
Slide 33: Recent Performance Spread is a Historical Outlier
Recent Performance Spread is a Historical Outlier The S&P 500 Equal Weight Index has closely tracked the S&P 500 Index over time, but has significantly underperformed in the last two years as a handful of mega-cap technology stocks has driven outsized returns Spread Between S&P 500 Index and S&P 500
Slide 34: Market Concentration is High Relative to History
Market Concentration is High Relative to History The 10 largest companies in the S&P 500 accounted for nearly 40% of total market capitalization and nearly 60% of total index returns in 2024 Market Capitalization of the 10 Largest S&P 500 Companies As % of Index Total (1984 to 2024): 40% 39% 35% 30%
Slide 35: Index Valuation Skewed by Top 10 Stocks
Index Valuation Skewed by Top 10 Stocks The 10 largest companies in the S&P 500 index trade at 27x earnings, compared to 20x for the other 490 companies Aggregate NTM P/E Multiples (12/31/1984 to 2/10/2025): 50.0x 45.0x 40.0x 35.0x 10 Largest 30.0x Companies: 27x 25.0x S&P 500 Index: 22x 20.0x Other
Slide 36: Index Inclusion Becoming Increasingly Important
Index Inclusion Becoming Increasingly Important Passive funds now represent more than half of all mutual fund and ETF assets, making inclusion in the indices they track increasingly important Passive Funds as % of Total Global Equity Mutual Fund and ETF Assets (2003 to 2024): 100% 75% 54% 50% 25% 7%
Slide 37: Implications for the Pershing Square Portfolio
Implications for the Pershing Square Portfolio 2024 performance more closely resembled the average S&P 500 stock Lagged the overall performance of the market-cap-weighted S&P 500 index Most stocks in the S&P 500 trade at less elevated valuations vs. history Overall S&P 500 index trades at a
Slide 38: Our Portfolio Companies are Taking Steps to Enter U.S. Indices
Our Portfolio Companies are Taking Steps to Enter U.S. Indices UMG, Brookfield Asset Management (“BAM”), and QSR all have the potential for eventual U.S. index inclusion UMG has committed to pursuing a U.S. listing by September 2025 BAM has adopted a simplified corporate structure, changed its headq
Slide 39: Robust New Idea Generation
Robust New Idea Generation We have initiated new investments in three core positions since the beginning of 2024 Leading alternative asset manager with high-quality and rapidly growing cash flows trading at a significant discount to intrinsic value (2024) Market leader in the attractive athletic
Slide 40: The Pershing Square Portfolio: Attractive Earnings Growth and Valuation
The Pershing Square Portfolio: Attractive Earnings Growth and Valuation Four stocks in our portfolio underperformed the S&P 500 after delivering one year of earnings growth well-below their long-term potential 2024 Total Shareholder Return Decomposition(1): 60% NTM EPS Growth Dividend Yield 47% 36%
Slide 41: Organizational Update
Organizational Update Lean, collaborative, and investment-centric organization continues to perform at the highest levels Unique, high-performance culture stems from small organization and long tenure of team members Ben Hakim promoted to President of PSCM in May 2024 13 years with Pershing Sq
Slide 42: PSCM Organization Chart
PSCM Organization Chart (8) Joining in early 2025 Name (PSCM Tenure in Years) 42
Slide 43: Pershing Square Investment Team
Pershing Square Investment Team Career PSCM Employee Education and Summary Prior Experience Experience Tenure (Years) (Years) Gotham Partners, Co-Founder and Portfolio Manager (1992 - 2003) Bill Ackman M.B.A., Harvard Business School, 1992 33 21 CEO / Portfolio Manager A.B., Harvard College, magna c
Slide 44: Equity Portfolio Update
Equity Portfolio Update
Slide 45: Universal Music Group ("UMG")
Universal Music Group (“UMG”) UMG is a high-quality, capital-light, rapidly growing royalty on greater music consumption Music is in the early stages of higher monetization “Streaming 2.0” era will be driven by both subscriber growth and higher prices New tiers for superfans and bundles will all
Slide 46: UMG Share Price Performance Since IPO
UMG Share Price Performance Since IPO UMG’s share price including dividend reinvestment decreased 2% in 2024 and has increased 12% year-to-date in 2025(1) UMG Share Price Performance from 9/21/2021 to 2/10/2025 (€EUR): 11/21/23: Spotify announces changes 1/15/25: UMG 9/21/21: UMG completes 10/24/22:
Slide 47: Alphabet ("GOOG")
Alphabet (“GOOG”) Alphabet’s underappreciated leadership in AI and substantial margin expansion opportunity led to impressive business results in 2024 Strong growth fueled by key AI advances and dominant market positioning Early results from integration of AI Overviews in Search have been highly e
Slide 48: GOOG Share Price Performance Since Inception
GOOG Share Price Performance Since Inception GOOG’s share price including dividend reinvestment increased 36% in 2024 and has decreased 1% year-to-date in 2025(1) GOOG Share Price Performance from 3/2/2023 to 2/10/2025: 8/5/24: D.C. District Court rules against 5/11/23: Company holds its annual I/O
Slide 49: Brookfield Corporation ("BN")
Brookfield Corporation (“BN”) Leading alternative asset manager with high-quality and rapidly growing cash flows trading at a significant discount to intrinsic value Leading global alternative asset manager with deep domain expertise Owns 73% of publicly-listed asset manager (Brookfield Asset Mana
Slide 50: BN Share Price Performance Since Inception
BN Share Price Performance Since Inception Since inception of the position, BN’s share price including dividend reinvestment increased 47% in 2024 and has increased 3% year-to-date in 2025(1) BN Share Price Performance from 4/11/2024 to 2/10/2025: $65 9/10/2024: BN hosts 2024 $60 8/14/2024: Pershing
Slide 51: Restaurant Brands International ("QSR")
Restaurant Brands International (“QSR”) QSR is a high-quality business with significant long-term growth potential trading at a highly discounted valuation Largest businesses outperforming peers Tim Hortons comparable sales of 5% are driven by positive traffic and are above all peers Internation
Slide 52: QSR Trades at a Highly Discounted Valuation
QSR Trades at a Highly Discounted Valuation Despite similar long-term profit growth, QSR trades at more than a 30% discount to YUM, MCD, and DPZ Long-Term Growth Algorithm and Valuation Unit Growth 5%+ 5% 4-5% ~5% Same-Store Sales Growth 3%+ ~3% ~3% 3% System-wide Sales Growth 8%+ 7% ~7% 7%+ Profit
Slide 53: QSR Share Price Performance Since Inception
QSR Share Price Performance Since Inception QSR’s share price including dividend reinvestment decreased 14% in 2024 and has increased 2% year-to-date in 2025(1) QSR Share Price Performance From 6/19/2012 to 2/10/2025: 11/15/21: QSR announces 2/14/23: QSR appoints acquisition of Firehouse Josh Kobza
Slide 54: Chipotle Mexican Grill ("CMG")
Chipotle Mexican Grill (“CMG”) Chipotle’s industry-leading value proposition continues to resonate with customers and drive outsized growth Industry-leading financial performance in 2024 Same-store sales grew 7% in 2024, or 52% from 2019 levels Traffic increased over 5%, driven by successful mar
Slide 55: CMG Share Price Performance Since Inception
CMG Share Price Performance Since Inception CMG’s share price increased 32% in 2024 and has decreased 4% year-to- date in 2025(1) CMG Share Price Performance From 8/4/2016 to 2/10/2025: $70 3/19/24: CMG directors approve 50:1 stock split $60 9/6/16: Pershing Square $58 7/18/23: CMG announces files 1
Slide 56: NIKE, Inc. ("NKE")
NIKE, Inc. (“NKE”) NIKE’s turnaround is in the early stages as new CEO Elliott Hill lays the foundations to drive sustainable, long-term growth Market leader in the high-growth athletic footwear and apparel industry NIKE is one of the world’s most valuable and iconic brands Dominant market posit
Slide 57: NIKE Update
NIKE Update In early 2025, we converted our NIKE common equity position to deep in- the-money call options New structure allows us to preserve the upside potential of owning the stock outright while unlocking capital to make new investments Positive intrinsic value and low break-even price minim
Slide 58: NKE Share Price Performance Since Inception
NKE Share Price Performance Since Inception NKE’s share price including dividend reinvestment decreased 17% since inception in 2024 and has decreased 6% year-to-date in 2025(1) NKE Share Price Performance From 5/15/2024 to 2/10/2025: $100 Average Cost at Announcement: $91* 6/27/24: NKE reports disap
Slide 59: Hilton Worldwide ("HLT")
Hilton Worldwide (“HLT”) Hilton is a high-quality business with a long runway of strong earnings growth led by an exceptional management team Continued strong financial and operational performance in 2024 Fee revenues increased 9% in 2024, driven primarily by strong net unit growth (“NUG”), with d
Slide 60: HLT Share Price Performance Since Inception
HLT Share Price Performance Since Inception HLT’s share price including dividend reinvestment increased 36% in 2024 and has increased 8% year-to-date in 2025(1) HLT Share Price Performance From 10/8/2018 to 2/10/2025: 4/3/24: HLT acquires NoMad Hotels brand $275 3/19/24: HLT hosts first Investor Day
Slide 61: Howard Hughes Holdings ("HHH")
Howard Hughes Holdings (“HHH”) HHH’s strong business momentum highlights its uniquely advantaged business model of owning master planned communities (“MPCs”) Robust results across every segment in HHH’s high-quality portfolio Shortage of resale housing inventory has fueled robust demand for new ho
Slide 62: HHH Share Price Performance Since Inception
HHH Share Price Performance Since Inception HHH’s share price decreased 6% in 2024 and has decreased 2% year-to- date in 2025(1) HHH Share Price Performance From 11/9/2010 to 2/10/2025: 6/27/19: Announces its 10/21/19: Board 8/6/24: Pershing Square 12/1/20: Announces $180 Board of Directors will con
Slide 63: Canadian Pacific Kansas City ("CPKC")
Canadian Pacific Kansas City (“CPKC”) CPKC’s one-of-a-kind network and industry-leading management team continue to deliver synergy wins and excellent operations High-quality, inflation-protected business model Operates in an oligopolistic industry with significant barriers to entry Pricing powe
Slide 64: CPKC Share Price Performance Since Inception
CPKC Share Price Performance Since Inception CPKC’s share price including dividend reinvestment was flat in 2024 and has increased 7% year-to-date in 2025(1) CPKC Share Price Performance From 10/11/2021 to 2/10/2025 ($CAD): 11/5/24: Donald Trump $125 wins presidential 4/14/23: CP officially closes t
Slide 65: Fannie Mae ("FNMA") and Freddie Mac ("FMCC")
Fannie Mae (“FNMA”) and Freddie Mac (“FMCC”) Fannie and Freddie appreciated sharply in 2024 as President Trump’s victory increased their probability of exiting conservatorship President Trump has publicly committed to privatizing Fannie and Freddie Meaningful progress was made during President Tru
Slide 66: FNMA and FMCC Share Price Performance Since Inception
FNMA and FMCC Share Price Performance Since Inception FNMA and FMCC share prices increased 207% and 284%, respectively, in 2024 and have increased 104% and 89%, respectively, year-to-date in 2025(1) FNMA and FMCC Share Price Performance from 10/7/2013 to 2/10/2025: 5/5/14: Pershing Square 2/21/17 US
Slide 67: New Investment in Uber Technologies ("UBER")
New Investment in Uber Technologies (“UBER”) World’s leading rideshare (mobility) and delivery (Uber Eats) marketplace Uber’s business model has strong network effects that reinforce supply and demand growth Ticker: UBER 170mm monthly customers and 8mm drivers across 70 countries Stock Price:
Slide 68: Uber Investment Thesis
Uber Investment Thesis Uber is a high-quality business which is positioned for rapid earnings growth over the medium-term based on strong revenue growth and robust operating leverage Attractive business model Leading global two-sided marketplace with strong and growing network effects and ingraine
Slide 69: Significant Future Earnings Growth Potential
Significant Future Earnings Growth Potential Uber has generated significant earnings growth since turning profitable in 2023. We believe the company’s rapid earnings growth is likely to continue as it maintains high revenue growth and leverages its fixed cost base Adj. EBITDA and Adj. EBITDA Margin
Slide 70: Recent Share Price Overview
Recent Share Price Overview Since Uber’s February 2024 Investor Update, Uber’s share price has decreased 3% while analysts’ earnings estimates increased more than 50%, resulting in a significant decrease in Uber’s multiple, now 29x earnings per share Uber Share Price and Forward Consensus GAAP Earni
Slide 71: Long-Term Risk to Uber from AVs is Limited
Long-Term Risk to Uber from AVs is Limited AV companies likely to partner with Uber over time due to its strong value proposition Uber’s 20% per ride take-rate is low relative to the value it provides which maximizes vehicle utilization and driver revenues. Attempting to replicate Uber’s capabilit
Slide 72: Q&A
Q&A
Slide 73: Additional Disclaimers and Notes to Performance Results
Additional Disclaimers and Notes to Performance Results PSH NAV appreciation is calculated with respect to PSH’s Public Shares. Results are presented on a net-of-fees basis. Net returns include the reinvestment of all dividends, interest, and capital gains from underlying portfolio companies and ass
Slide 74: Additional Disclaimers and Notes to Performance Results
Additional Disclaimers and Notes to Performance Results Share price performance data for a portfolio company reflects the reinvestment of the issuer’s dividends, if any. Share price performance data is provided for illustrative purposes only and is not an indication of actual returns of PSH over the
Slide 75: Additional Disclaimers and Notes to Performance Results
Additional Disclaimers and Notes to Performance Results An investment in PSH will entail substantial risks, including, but not limited to, those listed below, and a prospective investor should carefully consider the following summary of certain risk factors below: Speculative Investment and High Deg
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