BKI Investment Co. Ltd. · ASX:BKI
BKI Investment — FY2022 Earnings Presentation
25 slides from BKI Investment's earnings presentation, Jul 20, 2022
Slide 1: Results for the Full Year 2022
For personal use only BKI Investment Company Limited Results for the Full Year 2022 BKI is managed by Contact Asset Management AFSL 494045
Slide 2: Disclaimer
Disclaimer For personal use only This material has been prepared by Contact Asset Management on behalf of BKI Investment Company Limited. The information within this document is not intended to provide advice to investors or take into account an individual’s financial circumstances or investment obj
Slide 3: 2022 Full Year Results
2022 Full Year Results For the year ended 30 June 2022 For personal use only Result excluding special investment revenue FY2022 FY2021 Movement Ordinary revenue from Investment Portfolio $62.6m $39.7m 58% Total Revenue - Ordinary $63.4m $40.2m 58% Operating result after tax $58.1m $35.7m 63% Earning
Slide 4: 2022 Full Year Results
2022 Full Year Results For the full year ended 30 June 2022 For personal use only 2022 Full Year Results Investment Portfolio Revenue $62.2m Up 58% Operating Result After Tax $58.1m Up 63% Net Profit After Tax* $100.8m Up 175% Source: BKI, Contact Asset Management, Factset. * Includes Special Invest
Slide 5: Ongoing Dividend Improvement
Ongoing Dividend Improvement BKI’s Top 10 increases in dividend income year on year. For personal use only Company Name % of Total FY23e $ Increase % Change Portfolio Dividend Yield 1 BHP Group* $7,776,029 180% 8.8% 9.5% 2 New Hope Group $4,273,814 825% 3.6% 23.2% 3 Rio Tinto Limited* $3,064,607 270
Slide 6: Special Dividend Income
Special Dividend Income BKI received a significant amount of Special Dividend income over FY2022. For personal use only Company Name $ Commentary Special Dividend 1 Commonwealth Bank $15,102,761 Participation in the Off-Market Buyback 2 BHP Group $14,196,978 Non-Cash In-specie distribution of WDS sh
Slide 7: Fully Franked Final and Special Dividends
Fully Franked Final and Special Dividends For personal use only Final Ordinary Dividend Final Special Dividend FY22 Total Dividends 3.65cps 1.00cps 8.65cps Up 22% Up 100% Up 73% Dividend Key Dates Last trading date to be eligible for the dividends Monday 8 August 2022 Ex-dividend date Tuesday 9 Augu
Slide 8: Strong History of Dividend and Yield
Strong History of Dividend and Yield BKI has a strong history of paying fully franked dividends and offering an attractive yield. For personal use only 9.0% 5.00 8.0% 7.4% 7.0% Grossed up Dividend Yield 4.00 6.0% Cents per share 3.00 5.0% 4.0% 2.00 3.0% 2.0% 1.35% 1.00 1.0% 0.00 0.0% Ordinary Divide
Slide 9: Competitive Fee and Compounding Returns
Competitive Fee and Compounding Returns BKI has an investor focused approach. Higher fees don’t automatically translate into better returns. For personal use only 0.80% $6.00 $5.50 0.70% $5.00 0.60% $5.15 $4.50 0.50% $4.00 $3.50 0.40% $3.00 0.30% $2.50 0.20% $2.00 $1.50 0.10% 0.17% $1.00 0.00% $0.50
Slide 10: Rating and Research Update
Rating and Research Update For personal use only BKI has maintained its Lonsec Rating of “Recommended”. BKI has maintained its IIR Rating of “Recommended Plus”. BKI is currently Ord Minnett‘s “Preferred Traditional LIC” Source: BKI, Contact Asset Management. Lonsec, Independent Investment Research,
Slide 11: Performance
For personal use only BKI Investment Company Limited Performance BKI is managed by Contact Asset Management AFSL 494045
Slide 12: Total Shareholder Return
Total Shareholder Return As at 30 June 2022 For personal use only BKI’s Total Shareholder Return, including franking credits, was positive 8.7% for the year. Outperforming the S&P/ASX 300 Accumulation Index, franked at 80%, by 14.0%. BKI’s Net Portfolio Return* for the year was positive 1.5%. 15.0%
Slide 13: Premium/Discount to NTA
Premium/Discount to NTA As at 30 June 2022 For personal use only BKI’s Pre-Tax Net Tangible Assets as at 30 June 2022 was $1.66. BKI has closed the discount to NTA to 0% $1.90 $1.80 40% $1.70 $1.60 30% $1.50 $1.40 20% $1.30 $1.20 10% $1.10 $1.00 0% $0.90 $0.80 -10% $0.70 $0.60 -20% Prem/Disc % Pre T
Slide 14: BKI Portfolio Discussion
For personal use only BKI Investment Company Limited BKI Portfolio Discussion BKI is managed by Contact Asset Management AFSL 494045
Slide 15: Portfolio Positioning - Purchases / Disposals
Portfolio Positioning - Purchases / Disposals As at 30 June 2022 For personal use only Purchases Purchases Disposals Disposals Add New Reduce Exit Source: BKI, Contact Asset Management. Endeavour Group was a demerger dividend from Woolworths Limited. Commonwealth Bank, Metcash Limited and Woolworths
Slide 16: Portfolio Positioning - MSCI ESG Portfolio Exposure
Portfolio Positioning - MSCI ESG Portfolio Exposure* A MSCI ESG Rating aims to measure a company's resilience to long-term ESG risks. For personal use only Number of Companies in BKI Investment Portfolio 14 12 10 8 6 4 2 0 CCC B BB BBB A AA AAA LAGGARD AVERAGE LEADER Source: BKI, Contact Asset Manag
Slide 17: Portfolio Positioning – Exposure/Active Weight by Sector
Portfolio Positioning – Exposure/Active Weight by Sector As at 30 June 2022 For personal use only Exposure by Sector Active Weight by Sector Real Estate, 1.7% Teleco Services, Utilities 6.6% 5.7% Health Care, 5.9% Materials, 14.8% Cash 6.4% Energy 5.9% Cash, 6.4% Consumer Staples 2.0% Financials 1.8
Slide 18: Portfolio Positioning - Active Positions
Portfolio Positioning - Active Positions As at 30 June 2022 For personal use only Overweight Positions Underweight Positions Company Active Weight* Company Active Weight* APA Group 7.4% CSL Limited (5.9)% Macquarie Group 5.8% Westpac Bank (3.2)% New Hope Corporation 3.5% ANZ Banking Group (2.9)% Ram
Slide 19: Top Investments
Top 25 Investments As at 30 June 2022 For personal use only Stock % of Total Portfolio Stock % of Total Portfolio 1 BHP Group 8.8% 14 Sonic Healthcare 2.6% 2 Macquarie Group 8.7% 15 Rio Tinto Limited 2.5% 3 APA Group 8.0% 16 Amcor 2.4% 4 Commonwealth Bank 6.7% 17 ARB Corporation 2.2% 5 National Aust
Slide 20: Portfolio Positioning – Macro
Portfolio Positioning – Macro For personal use only S&P/ASX 300 PE Multiple (X) – Last 5 Years S&P/ASX 300 Dividend Yield (%) – Last 5 Years RBA Cash Rate – Last 15 Years Australian Dollar ($US) – Last 5 Years 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 07 08 09 10 11 12 13 14 15 16 17 18 19 2
Slide 21: Portfolio Positioning – Resources and Energy
Portfolio Positioning – Resources and Energy For personal use only Oil Price – WTI Spot (US$/bbl) – Last 5 Years Iron Ore Price (US$/t) – Last 5 Years Thermal Coal (gc NEWC 6,000 kcal/kg) – Last 5 Years Energy/Resources 450 9.8% Ave FY23 Dividend Yield 400 8.6X Ave FY23 PE Multiple 350 20.3% Portfol
Slide 22: Portfolio Positioning – Banks and Financials
Portfolio Positioning – Banks and Financials For personal use only Capital Ratios1 Employment and Hours Worked2 Increase in House Prices – ABS Housing Prices and Household Debt3 Bank/Financials 5.5% Ave FY23 Dividend Yield 13.7X Ave FY23 PE Multiple 22.4% Portfolio Exposure Source: BKI, Contact Asse
Slide 23: Portfolio Positioning – Consumer and Retail
Portfolio Positioning – Consumer and Retail For personal use only Positive Savings Ratio - Household Income and Consumption1 Non-Discretionary Inflation Growth (%)2 Australian Retailer Baskets v’s Bonds3 Consumer/Retail 4.2% Ave FY23 Dividend Yield 19.5X Ave FY23 PE Multiple 15.7% Portfolio Exposure
Slide 24: BKI Investment Company
BKI Investment Company A sensible, low cost investment option, focused on quality. For personal use only Dividend Yield #^ 1 Year TSR^ 10 Year TSR^ MER 7.4% 8.7% pa 10.6% pa 0.17% Net Profit After Tax* Total Assets No $100.8m $1,245m Performance Fees Lonsec Recommended Rating As at 30 June 2022 Sour
Slide 25: For more information, please visit
For personal use only For more information, please visit www.bkilimited.com.au
BKI Investment Company — FY2022 Earnings Presentation on 6ix