BKI Investment Co. Ltd. · ASX:BKI
BKI Investment — FY2016 Earnings Presentation
24 slides from BKI Investment's earnings presentation, Jul 20, 2016
Slide 1: FY2016 Financial Results Presentation
For personal use only BKI Investment Company Limited FY2016 FINANCIAL RESULTS PRESENTATION 1
Slide 2: Disclaimer
Disclaimer For personal use only This material has been prepared by 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 objectives. This is general investment ad
Slide 3: Business Overview
Business Overview For personal use only BKI is a research driven, active equities manager investing for the long term in profitable, high yielding, well managed companies. BKI is a closed end company listed on the ASX (BKI.ASX) and does not charge external portfolio management or performance fee
Slide 4: FY2016 Result Highlights
FY2016 Result Highlights For personal use only FY 2016 FY 2015 Growth Ordinary Investment Income $43.8m $44.6m -2% Net Operating Result* $41.2m $40.9m +1% Earnings Per Share* 7.16cps 7.40cps -3% Total Ordinary Dividends Per Share 7.25cps 7.20cps +1% Management Expense Ratio (MER) 0.16% Down from 0.1
Slide 5: For personal use only
12Yr Total Low Market Management Shareholder Return# Portfolio Cap Expense For personal use only Turnover $946m 11.3% pa 7.1% Ratio As at 30 June 2016 Yearly average as at 30 June 2016 14,358 Shareholders 0.16% As at 30 June 2016 Franking Dividend Experience Credits Yield The Board and Management $2
Slide 6: Dividend History
Dividend History We focus on creating wealth for all shareholders by keeping costs low For personal use only and increasing fully franked dividends and capital growth. Growing Fully Franked Dividend 7.00 0.50 1.00 6.00 1.00 1.00 5.00 4.00 BKI’s pay out 7.25 7.20 6.95 6.65 6.40 6.00 6.00 6.00 3.00 5.
Slide 7: Dividend History
Dividend History Dividends + Franking Credits received from a $10,000 investment in BKI at inception V’s Bank Quarterly Interest. For personal use only $1,800 $1,726 $1,600 $1,400 Highlights the $1,200 $1,000 opportunity of $800 receiving a fully $600 franked dividend in $400 $200 $411 a falling int
Slide 8: Final 2016 Fully Franked Dividend – Key Dates
Final 2016 Fully Franked Dividend – Key Dates For personal use only Event Date Last trading date to be eligible for the Final 2016 Dividend Thursday 4 August 2016 Ex-Dividend Date Friday 5 August 2016 Record Date Monday 8 August 2016 DRP Nomination Tuesday 9 August 2016 Payment Date Friday 26 August
Slide 9: BKI = Low Cost
BKI = Low Cost BKI’s Board & Management are shareholders in BKI. For personal use only We invest for the long term and do not charge external portfolio management or performance fees. The thicker 0.80% 0.70% the carpet… 0.60% 0.50% The thinner 0.40% the dividend! 0.30% 0.16% 0.20% 0.10% Low Costs -
Slide 10: Total Shareholder Returns
Total Shareholder Returns Total Shareholder Including Franking Credits For personal use only As at 30 June 2016 Returns including the benefit of franking 15.0% 13.6% credits passed on from 12.5% 13.0% 11.3% BKI to shareholders. 10.1% 10.5% 9.6% 10.0% 9.3% 9.0% 9.0% 7.5% 6.5% BKI has ample franking 5
Slide 11: Portfolio
For personal use only BKI Investment Company Limited PORTFOLIO 11
Slide 12: Stock selection Process
Stock selection Process For personal use only BKI is a research driven, active equities manager investing for the long term in profitable, high yielding, well managed companies. Stock selection is bottom up, focusing on the merits of individual companies rather than market and economic trends. BKI i
Slide 13: Purchases and Sales
Purchases and Sales Main purchases and sales from the Investment Portfolio, excludes any portfolio movements from the acquired unlisted investment companies. For personal use only Main Purchases Main Sales Challenger Limited Bendigo & Adelaide Bank Commonwealth Bank BHP Billiton Low Portfolio Turnov
Slide 14: Purchases and Sales
Purchases and Sales Net asset values of the acquired unlisted investment companies. For personal use only During FY2016 BKI Investment Company completed the acquisition of three unlisted investment companies: 1. 6 August 2015 Net assets of approximately $17m 2. 5 February 2016 Net assets of approxim
Slide 15: BKI Portfolio – Top Shareholdings as at June 2016
BKI Portfolio – Top 25 Shareholdings as at 30 June 2016 For personal use only Stock % of Total Stock % of Total Portfolio Portfolio 1 Commonwealth Bank 8.8% 14 Ramsay HealthCare 2.0% 2 National Australia Bank 7.4% 15 Invocare Limited 1.9% 3 Westpac Bank 7.2% 16 IAG Limited 1.9% 4 TPG Telecom 5.7% 17
Slide 16: BKI Portfolio – Exposure by Sector
BKI Portfolio – Exposure by Sector High Conviction For personal use only Utilities 6.3% Real Estate 0.4% Healthcare 6.7% Benchmark Unaware Resources 6.9% Financials 39.4% BKI’s long term strategy of investing in Cash 7.8% dividend paying stocks means the portfolio is not aligned with an index. Retai
Slide 17: Weighting by Sector and Income Received by Sector
Weighting by Sector Income Received by Sector Weighting by Sector Income Received by Sector Financials Financials Industrial Industrial For personal use only Telco Telco Retail Retail Cash 39.4% 52.6% Cash 11.2% 7.8% Resources Resources Healthcare Healthcare Utilities Utilities Real Estate Real Esta
Slide 18: Appendix
For personal use only BKI Investment Company Limited APPENDIX 18
Slide 19: History of the Discount/Premium
History of the Discount/Premium As at 30 June 2016 For personal use only $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 Tax NTA BKI Share Price Prem/Disc Trend 19
Slide 20: Key Differentiators
Key Differentiators For personal use only High Value / Low Cost - Active, high conviction, closed end portfolio, with no Debt. MER of 0.16%. No external portfolio management or performance fees. Performance - Delivering sound returns plus dividend growth. Alignment - Directors and Management a
Slide 21: Key Differentiators
Key Differentiators For personal use only Diversification – Exposure to well managed, dividend paying companies. Listed on the ASX • ASX Listing Rules - Continuous Disclosure requirements, High levels of Transparency and Compliance. • Size & strength - Market Capitalisation of $946m*. • Simplici
Slide 22: Key Differentiators
Key Differentiators For personal use only Washington H Soul Pattinson and Company Limited - In 2009 WHSP increased their shareholding in BKI to become the largest shareholder (currently holding 10.9% of BKI shares). Listed in 1903, WHSP is the second oldest listed company on the ASX and holds inve
Slide 23: Staff Retention – Alignment
Staff Retention – Alignment For personal use only We are shareholders in Team Investment Tenure With BKI Equity BKI, and that’s why we: Member Qualifications Experience Investment Co. Ownership 1 Robert Millner FAICD Don’t charge Shareholders 33 yrs 12.5 yrs 8,555,552 large management or any David H
Slide 24: BKI Online
www.bkilimited.com.au For personal use only Our aim is to BKI Online create wealth Sign up online to receive news and information about your company via for BKI email. shareholders, Subscribe to: • NTA+Monthly Reports • Quarterly Reports through an • Presentations to Shareholders • Annual Report inc
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