Caledonia Investments Plc · LSE:CLDN
Caledonia Investments — FY2025 Earnings Presentation
41 slides from Caledonia Investments's earnings presentation, May 20, 2025
Slide 1: Full-year results
Full-year results Year ended 31 March 2025 www.caledonia.com
Slide 2: Cautionary statement
Cautionary statement This presentation contains certain statements that are, or may be deemed to be, forward-looking. Phrases such as "aim", "plan", "intend", “should”, "anticipate", "well-placed", "believe", "estimate", "expect", "target", "consider" and similar expressions are generally intended t
Slide 3: Caledonia
Caledonia We are a long-term equity investor NAV Growth Self-managed investment company NAV total return growth since 2005 800 Net assets of £2.9 billion 700 600 500 Targeting long-term compounding real returns 400 300 CPIH +3% to +6% 200 100 0 Progressive dividend policy 2005 2010 2015 2020 2025 Su
Slide 4: Time well invested
Time well invested We invest in high quality companies that have the potential to generate exceptional long-term value We buy to hold, investing in companies with strong market positions and fundamentals, as well as fund managers with track records of success Team Opportunity Alignment We have a tea
Slide 5: A well-balanced portfolio
A well-balanced portfolio Providing access to both private and public companies, diversified by sector and geography Public Companies Private Capital Funds Strategic Allocation: 30%-40% Strategic Allocation: 25%-35% Strategic Allocation: 25%-35% Target return: 10% p.a. Capital and Target return: 14%
Slide 6: Long-term performance
Long-term performance Targeting real returns and outperformance of FTSE All-Share TR • Aim to grow capital value and income over the long-term (10 years) measured in real terms • Target return of CPIH +3% to +6% over medium / long-term • Aim to outperform FTSE All-Share Total Return over 10 years An
Slide 7: Full-year results
Full-year results Year ended 31 March 2025 Full-year results 31 March 2025 6
Slide 8: Highlights
Highlights NAVTR of +3.3% Performance impacted by market volatility in March and FX • Public Companies 4.7% return Net assets ‒ Strong performance during the year impacted by public equity market volatility in March £2.9bn 3.3% (5,475p per share) Total return (1 year) • Private Capital 3.7% return ‒
Slide 9: Public Companies
Public Companies Year ended 31 March 2025 Full-year results 31 March 2025 8
Slide 10: Public Companies
Public Companies High quality companies where long-term ownership will be rewarded Annualised Performance – total return £964.7m invested in 30 companies, with strong market 15% Internal positions and fundamentals +13.2% +11.8% targets Performance 10% +8.5% +8.4% +10.2% Capital Income • 4.7% return
Slide 11: Moody's: Credit Ratings and Analytics
Public Companies Moody’s: Credit Ratings and Analytics $64bn £38m Market capitalisation NAV at 31 March 2025 Initial investment: March 2022 Share price ($) Built a position in the Capital portfolio over Mar-Oct 2022, following a c.40% share price decline due to market concerns 550 regarding debt iss
Slide 12: Private Capital
Private Capital Year ended 31 March 2025 Full-year results 31 March 2025 11
Slide 13: Private Capital
Private Capital Direct investments in established high quality private businesses £870.7m invested in eight predominantly UK focused % Annualised Performance – Total return companies, with five investments representing circa 90% of 20% +19.2% value Internal target 15% +12.4% Performance 10% +8.1% 5%
Slide 14: Stonehage Fleming & AIR-serv Europe
Private Capital Strong performance of Stonehage Fleming & AIR-serv Europe, offset by reduction in valuation of Cooke Optics Private Capital portfolio company metrics • EV/ EBITDA valuation multiple of Valuation £198m Valuation £193m between 10x to 14.5x Return 20.0% Return 7.8% Year of Investment 20
Slide 15: Stonehage Fleming & AIR-serv Europe
Private Capital Strong performance of Stonehage Fleming & AIR-serv Europe, offset by reduction in valuation of Cooke Optics Valuation £137m Valuation (purchase cost) £55m Valuation £44m Return 0.9% Return 0.6% Return -63.2% Year of Investment 2016 Year of Investment 2024 Year of Investment 2018 Sect
Slide 16: Stonehage Fleming
Stonehage Fleming A leading ultra-high net worth advisor – value creation Management Operational efficiency Business development • Carefully managed succession • Improvement of profit • Enhanced business of founders from key executive margins towards industry development performance Valuation: £221m
Slide 17: Funds
Funds Year ended 31 March 2025 Full-year results 31 March 2025 16
Slide 18: Funds
Funds Providing exposure to over 600 companies operating in North America and Asia £897.3m invested in 80 funds managed by 45 managers Annualised Performance – total return 63% focused on North America lower mid market buyout and 20% 37% on Asia buyout, growth & VC funds +17.1% 15% Internal +13.3% t
Slide 19: Funds
Funds Realisations gained momentum in FY25 Portfolio maturity1 North America realisations Realisations 50 Distributions of £174m2 broadly split 65%/35% North America and Asia < 1 year 12% 1 - 3 years 21% 25 GBP £m 3 - 5 years 32% 5- 7 years 20% North America 0 7 years+ 15% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 •
Slide 20: KLH Capital
KLH Capital Tampa Florida-based, lower mid-market buyout manager The US lower mid-market has been a core part of our Target company criteria investment strategy for the last 15 years and we have built a • Enterprise Value: $20m to $125m strong network of relationships over this time • Revenue: $20m+
Slide 21: KLH Capital
KLH Capital Tampa Florida-based, lower mid-market buyout manager Portfolio Company Snapshots Specialty Services & Value- Sub-sector Categories Specialty Services Specialty Services Specialty Services Added Distribution Portfolio Company Specialty industrial services Leading field services provider L
Slide 22: Financial review
Financial review Full-year results 31 March 2025 21
Slide 23: Financial overview
Financial overview £2.9bn NAV – strong balance sheet with zero structural leverage 3.3% NAV total return – 4.7% in local currencies £2.7bn Portfolio value – high quality, diversified portfolio £476m Liquidity – new RCF agreed, increasing available resources by £75m to £325m in total dividend to 73.6
Slide 24: Investment portfolio and returns
Investment portfolio and returns Total portfolio return of 3.5% Investment movement (£m) Portfolio by Pool (£m) Net realisations £16m Funds Private Capital £897m £871m 3050 320 £2,733m 3000 2950 2900 Public Companies 2850 £965m 2800 Return Return Yield1 2750 94 2,733 % (excl. % 2700 2,696 FX) % 2650
Slide 25: Change in net asset value
Change in net asset value NAVTR of 3.3%, £42m FX reducing NAVTR by 1.4% NAV movement (£m) 3.3% Foreign Currency Exposure (NAV) Total return £94m 59p / 1.1% 3100 44 NAV per share 3080 accretion 3060 92 -42 3040 6 3,033 3020 -32 3000 2980 2,965 US dollar 53% Pound sterling 38% 2960 -63 Euro 7% Other c
Slide 26: Cash & facilities
Cash & facilities Significant liquidity of £476m Movement in net cash (£m) Net realisation 300 £19m 39 • New £325m RCF facility 337 agreed with three banks at 250 227 -31 improved terms 200 -38 - £150m to August 2029 151 150 -64 - £175m to August 2027 100 Cash 31 March 2025 50 0 £151m -50 Liquidity
Slide 27: Share buybacks and shareholder initiatives
Share buybacks and shareholder initiatives It is important that our shareholders benefit from the long-term increase in NAV Share buybacks • Discount narrowed from 39% to 35% over the year Annualised NAVTR and TSR • Increased capacity for share buybacks following shareholder approval for an 15% +13.
Slide 28: Summary
Summary Full-year results 31 March 2025 27
Slide 29: Summary
Summary essence of long-term investing is the ability to endure shorter-term fluctuations and maintain a focus 1 The on achieving sustainable returns over the longer term The diverse and resilient portfolio invested in high quality businesses remains well placed to deliver 2 target returns over the
Slide 30: Q&A
Q&A Full-year results 31 March 2025 29
Slide 31: Appendix
Appendix Full-year results 31 March 2025 30
Slide 32: Private Capital: realisation activity
Private Capital: realisation activity Successful track record of exits and generating a meaningful valuation uplift on realisations BioA LTM NAV growth vs. Caledonia IRR (size of bubble represents Caledonia total proceeds) • £1.1bn of proceeds generated from realisations2, generating c.£0.5bn of net
Slide 33: A well-balanced portfolio
A well-balanced portfolio Diversified by sector and geography Provides shareholders with access to companies operating across diverse sectors with global exposure Geography (Headquartered) Sector Industrials Industrials 27% Consumer Discretionary 14% Includes Private Capital investments Financials 1
Slide 34: Public Companies – Capital portfolio
Public Companies – Capital portfolio Top holdings as at 31 March 2025 Value 3 years 5 years 10 years First 31 March Top Holdings (£m) Invested 2025 Annualised Returns 6.1% 13.2% 10.2% Microsoft 2014 73.6 Sector Oracle 2014 72.3 Distribution Information Technology 27% Philip Morris1 2016 64.8 Industr
Slide 35: Public Companies – Income portfolio
Public Companies – Income portfolio Top holdings as at 31 March 2025 3 years 5 years 10 years Value Annualised Returns 4.0% 8.5% 4.6% First 31 March Yield2 Top Holdings (£m) Invested 2025 % Annualised Yield 3.9% 4.2% 4.3% Phillip Morris1 2021 25.3 5.7 Sector National Grid 2015 20.9 5.6 Distribution
Slide 36: Private Capital
Private Capital Portfolio as at 31 March 2025 3 years 5 years 10 years Value Annualised Returns 8.1% 19.2% 12.4% First 31 March Portfolio (£m) Invested 2025 Sector 1 Stonehage Fleming 2019 221.4 Distribution Industrials 43% Financials 26% AIR-serv Europe 2023 197.7 Consumer Discretionary 21% Materia
Slide 37: Funds
Funds Top holdings as at 31 March 2025 3 years 5 years 10 years Value First 31 March Annualised Returns 5.8% 17.1% 13.3% Top Holdings (£m) Invested 2025 HighVista Strategies 2013 99.9 Strategy Axiom Asia funds 2012 73.4 De Cheng funds 2015 58.5 N America buyout 52% Unicorn funds 2018 39.9 N America
Slide 38: Statement of financial position
Statement of financial position Year ended 31 March 2025 Investment £m 31 Mar 24 Investments Realisations income 1 Total return 31 Mar 25 Pool Public Companies 949.8 106.8 (114.2) (21.8) 44.1 964.7 Private Capital2 820.3 83.7 (48.6) (15.3) 30.6 870.7 Funds 926.3 129.8 (173.6) (4.4) 19.2 897.3 Total
Slide 39: Summary of comprehensive income
Summary of comprehensive income Year ended 31 March 2025 31 Mar 25 31 Mar 24 £m £m Revenue Capital Total Revenue Capital Total Investment income – portfolio1 43.7 - 43.7 47.1 - 47.1 Net gains on fair value investments – portfolio2 - 50.2 50.2 - 185.3 185.3 Total return 43.7 50.2 93.9 47.1 185.3 232.
Slide 40: Further information
Further information If you have any questions, or to request a meeting, please contact us in the following ways: • Send an email to: investorrelations@caledonia.com • Call us on tel: 020 7802 8080 • Website: www.caledonia.com • The Company’s ordinary shares are premium listed on the LSE under SEDOL:
Slide 41: Caledonia Investments plc
Caledonia Investments plc Cayzer House 30 Buckingham Gate London SW1E 6NN Tel: +44 20 7802 8080 Web: www.caledonia.com © Caledonia Investments plc 2025. Caledonia Investments, Time Well Invested and the sealion guardant are registered trademarks.