BKI Investment Co. Ltd. · ASX:BKI
BKI Investment — Investor Presentation (May 2018)
27 slides from BKI Investment's investor presentation, May 11, 2018
Slide 1: BKI Investment Company Limited: Entitlement Offer, Shortfall Offer and General Offer
BKI INVESTMENT COMPANY LIMITED For personal use only ENTITLEMENT OFFER, SHORTFALL OFFER AND GENERAL OFFER BKI is managed by Contact Asset Management AFSL 494045
Slide 2: Disclaimer and Important Information
DISCLAIMER AND IMPORTANT INFORMATION For personal use only This investor Presentation (Presentation) has been prepared by Contact Asset Management Pty Limited ACN 614 316 595 on behalf of BKI Investment Company Limited ACN 106 719 868 (BKI). This Presentation has been prepared in connection with the
Slide 3: Offer and Timetable Details
OFFER AND TIMETABLE DETAILS For personal use only BKI is raising capital at a discount to share price and NTA BKI is managed by Contact Asset Management AFSL 494045
Slide 4: Offer Details
OFFER DETAILS For personal use only • Entitlement Offer: Pro-rata non-renounceable Entitlement Offer to all Eligible Offer Price Shareholders of 1 New Share for every 15 Existing Shares at $1.50 (“Offer Price”) to raise approximately $62.2 million $1.50 per share − Shareholders at the record date 14
Slide 5: Important Dates
IMPORTANT DATES For personal use only Simultaneous announcement of Entitlement Offer, Shortfall Offer and General Offer Wednesday, 9 May 2018 Opening of General Offer Wednesday, 9 May 2018 Ex-Date for the Entitlement Offer Friday, 11 May 2018 Record Date for the Entitlement Offer (7.00pm AEST) Monda
Slide 6: A Concentrated, High Conviction, Australian Equities Portfolio
BKI INVESTMENT COMPANY LIMITED For personal use only A Concentrated, High Conviction, Australian Equities Portfolio BKI is managed by Contact Asset Management AFSL 494045
Slide 7: BKI Introduction
BKI INTRODUCTION For personal use only • Fully Franked Dividends − New shares entitled to July 2018 Final Dividend Grossed Up Management Fee − 7.0% Grossed up dividend yield1 Dividend Yield1 • ASX Listed Investment Company 7.0% 0.10% − A simple and transparent investment vehicle − BKI.ASX has a 14 y
Slide 8: BKI Introduction
BKI INTRODUCTION For personal use only • Experienced Investment Team − The BKI Board and Investment Manager have over 170 years of collective industry experience, with an average of 29 years’ experience each • Alignment with Shareholders Recommended − BKI’s major shareholder, Washington H. Soul Patt
Slide 9: Key Risks
KEY RISKS For personal use only • General Risks − Economic conditions impacting the value of BKI’s investments − Market and listed securities risk causing the trading price of both the Shares and the Company’s investments to fluctuate − Regulatory risk associated with changes to law, tax and account
Slide 10: Fully Franked Dividends
FULLY FRANKED DIVIDENDS For personal use only BKI has paid over $500m in dividends and franking credits to shareholders since listing in 2003 BKI is managed by Contact Asset Management AFSL 494045
Slide 11: Dividend History of BKI
DIVIDEND HISTORY OF BKI For personal use only BKI Half and Full Year Dividend History2 As at 30 April 2018, BKI’ s full y frank ed div i dend yi el d 8.00 was 4. 9% (based on t he i mmedi ate past 12 mont hs 7.00 rolli ng div i dend and Offer P ri ce of $ 1. 50), whil e the grossed up yield was 7.0%
Slide 12: Low Fee Structure
LOW FEE STRUCTURE For personal use only A low Management Fee of only 0.10% and no performance fee. BKI is managed for its shareholders with a low MER of 0.17% BKI is managed by Contact Asset Management AFSL 494045
Slide 13: Low Management Fees
LOW MANAGEMENT FEES For personal use only • Activ e manag ement i s somet hi ng we beli ev e i n whol eheartedl y. The BKI B oard and I nv estment Manag er has over 170 years of collective industry experience (average of 29 years) • C ontact Asset Manag ement charg es BKI a l ow manag e ment fee of
Slide 14: Positive Returns
POSITIVE RETURNS For personal use only Total Shareholder Returns of 10.8% per annum over 14 years BKI is managed by Contact Asset Management AFSL 494045
Slide 15: History and Track Record of BKI
HISTORY AND TRACK RECORD OF BKI For personal use only BKI Performance Over Time Share Price and Cumulative Value1 Volume $4.75 Volume Cumulative Value Share Price NTA/Share 30.0m $3.97 $4.50 $4.25 Oct 2013: Rights Issue at $4.00 $1.48/share and raised $48m 25.0m $3.75 May 2007: Rights Sep 2013: Plac
Slide 16: Concentrated Portfolio
CONCENTRATED PORTFOLIO For personal use only BKI offers investors a high conviction portfolio of 46 positions, with diversified sector exposure BKI is managed by Contact Asset Management AFSL 494045
Slide 17: Investment Process
INVESTMENT PROCESS For personal use only BKI is focused on investing in stocks using the 5 basic fundamentals below as part of the stock selection process: 1 Income – Dividend Yields, Franking Credits, Pay Out Ratios, Dividend Growth 2 Principal Activity – Sustainable Business Model, Competitive Adv
Slide 18: Top Investments
TOP 25 INVESTMENTS For personal use only AS AT 30 APRIL 2018 Stock % of Total Portfolio Stock % of Total Portfolio 1 National Australia Bank 8.2% 14 TPG Telecom 2.7% 2 Westpac Banking Corp 6.8% 15 Sydney Airport 2.7% 3 Commonwealth Bank 6.8% 16 IAG Limited 2.5% 4 Wesfarmers Limited 4.6% 17 ASX Limit
Slide 19: Portfolio Positioning - Financials
PORTFOLIO POSITIONING - FINANCIALS For personal use only Banking stocks continue to form a very important segment of the BKI Investment Portfolio. They Banks Weighting of BKI 2 Income Received from Banks 2 provide good long term value as well as a very Banks attractive and sustainable dividend strea
Slide 20: Portfolio Positioning - Infrastructure
PORTFOLIO POSITIONING - INFRASTRUCTURE For personal use only Australia is undergoing a significant transformation thanks to federal and state government spending on major infrastructure projects. The benefits of this spending will be captured by companies who have made long term infrastructure inves
Slide 21: Portfolio Positioning – Investment Examples
PORTFOLIO POSITIONING – INVESTMENT EXAMPLES For personal use only Commonwealth Bank ARB Corporation Woolworths Limited Flight Centre Limited Telstra Corporation InvoCare Limited 21
Slide 22: Research and Ratings
RESEARCH AND RATINGS For personal use only Strong recommendations from research houses and good support from the broker and advisor community BKI is managed by Contact Asset Management AFSL 494045
Slide 23: Research and Ratings
RESEARCH AND RATINGS For personal use only Research and Ratings1 Lonsec RECOMMENDED October 2017 IIR RECOMMENDED PLUS July 2017 Morningstar NEUTRAL October 2017 ThreeSixty APPROVED PRODUCT LIST Broker/Advisor Research Evans Dixon Morgans Bell Potter Baillieu Holst Patersons Securities 1 Research and
Slide 24: Additional Information
ADDITIONAL INFORMATION For personal use only Shareholder presentations and contact details on how to invest BKI is managed by Contact Asset Management AFSL 494045
Slide 25: Main Shareholder Presentations
MAIN SHAREHOLDER PRESENTATIONS For personal use only Melbourne Brisbane 12.00pm 12.00pm Monday 21st May 2018 Tuesday 29th May 2018 Park Hyatt, 1 Parliament Square Hilton Hotel, 190 Elizabeth Street Melbourne VIC Brisbane QLD Sydney Adelaide 12.00pm 12.00pm Thursday 24th May 2018 Wednesday 30th May 2
Slide 26: Contacts for the Offer
CONTACTS FOR THE OFFER For personal use only Investment Manager: Contact Asset Management Pty Limited Level 1, 160 Pitt Street Mall Sydney NSW 2000 T: (02) 9238 0522 F: (02) 9210 7099 www.contactam.com.au Joint Lead Managers: Co-Manager: Taylor Collison Limited Evans Dixon Corporate Advisory Morgans
Slide 27: BKI Fact Sheet
BKI FACT SHEET For personal use only ASX Code BKI.ASX Investment Manager Listing Date December 2003 Contact Asset Management Level 1 Mandate Australian Listed Equities 160 Pitt Street Mall Investment Sectors Diversified Sydney NSW 2000 Benchmark S&P/ASX 300 Accumulation Index (02) 9238 0522 Research
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