Ann: Shareholder Presentation November 2018, page-2

I attended. While it was stated the main aim is always not to lose money, they have lost money recently (less than the market). They did not seem to have any plans to change what they do to reduce the risk of more losses.

I asked about why they hold so many shares (over 30 at 30 June). Almost by definition they are underperformers (poor management) given Sandon's aim is to unlock value. They will be realising some holdings, but at present hold little cash. They have only minor shorts and reduced them since 30 June. They had half the money in 6 shares at 30 June and the portfolio could certainly be rationalised to hold more cash.

The comment was they are not planning on a crash, but that is not the point. If markets are trending down rather than trending up as previously, how does the company change strategy so as not to lose money. The answer seemed to be it will not do so.

I asked whether they would do more partnerships to increase the leverage they have on Boards, but they prefer to act independently and persuade others to their point of view. That is also the rationale for so many tiny share holdings as that gives them a voice (but no leverage) with Boards.

SNC will have enough franking credits (almost) to keep paying franked dividends for another year which will help the share price, but I am nervous the manager seemed inflexible about changing what they do even though the share market environment is much riskier.

Interested in the views of others as there was a reasonable turn out for the AGM.