BKI Investment Co. Ltd. · ASX:BKI
BKI Investment — FY2011 Earnings Presentation
18 slides from BKI Investment's earnings presentation, Jul 18, 2011
Slide 1: Full Year Results 2011
For personal use only Full Year Results 2011 1
Slide 2: Disclaimer
For personal use only Disclaimer 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 individuals financial circumstances or investment objectives. This is general investment adv
Slide 3: Background
Background For personal use only BKI was formed on the 17th October 2003 to take over and manage the investment portfolio of Brickworks Limited (BKW). BKW established the core portfolio during the 1980’s with the objective to generate an increasing income stream through long term investment in a por
Slide 4: Philosophy, Style, Process
Philosophy, Style, Process For personal use only Corporate Objectives The Group aims to generate an increasing income stream for distribution to its shareholders in the form of fully franked dividends, to the extent of its available imputation tax credits, through long-term investment in a portfolio
Slide 5: Board and Management
Board and Management For personal use only Directors Robert Millner Chairman of Directors David Hall Director, Chairman of Audit Committee Alexander Payne Director, Chairman of Remuneration Committee Ian Huntley Director Chief Executive Officer Investment Committee Thomas Millner Robert Millner Alex
Slide 6: Benefits of Investing in BKI
Benefits of Investing in BKI For personal use only Dividends - Strong dividend payout ability with abundant franking credits. Historical fully franked dividend yield of 5.8%, grossed up yield 8.3% (as at 30 June 2011). Diversification - High quality diversified portfolio through BKI shares listed on
Slide 7: Benefits of Investing in BKI
Benefits of Investing in BKI For personal use only Washington H. Soul Pattinson (WHSP) - In 2009 WHSP increased their shareholding in BKI to become the largest shareholder at 13.6%. Listed in 1903, WHSP is the second oldest listed company on the ASX and holds investments worth in excess of $4.5bln.
Slide 8: Dividend Income and Operating Profits
Dividend Income FY 2011 Result Highlights 40,000 35,000 30,000 For personal use only 25,000 20,000 15,000 10,000 Total Ordinary Income for the full year 5,000 increased 12.2% after a majority of the companies held within the BKI Portfolio lifted 0 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 2004
Slide 9: Earnings Per Share and Dividend Per Share
Earnings Per Share FY 2011 Result Highlights 9.0 8.0 7.0 For personal use only 6.0 5.0 4.0 3.0 EPS excluding special dividends increased 2.0 1.0 from 5.44cps in FY2010 to 6.02cps in 0.0 FY2011. 2004 2005 2006 2007 2008 2009 2010 2011 EPS Excluding Special Dividends Basic EPS Dividend Per Share $0.07
Slide 10: Portfolio Valuation and Management Expense Ratio
Portfolio Valuation FY 2011 Result 600,000 500,000 Highlights For personal use only 400,000 300,000 200,000 The BKI Portfolio Valuation has grown from 100,000 $171m as at listing on 12 December 2003 0 to $599m as at 30 June 2011. $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 2004 2005 2006 2007 20
Slide 11: Stock Selection Criteria
Stock Selection Criteria For personal use only BKI is a research driven, long term manager focusing on well managed companies, with a profitable history and that offer attractive dividend yields. Stock selection is bottom up, focusing on the merits of individual companies rather than market and econ
Slide 12: Portfolio Movements
Portfolio Movements For personal use only BKI invested $38m into the Australian market during FY2011. Major investments included: ANZ Banking Corporation AMP Limited Milton Corporation QUBE Logistics Telstra Corporation UGL Limited Commonwealth Bank QBE Insurance Group Coca Cola Amatil Woolworths Li
Slide 13: BKI Portfolio
BKI Portfolio As at 30 June 2011 For personal use only 1 New Hope Corporation 11 Woodside Petroleum Limited 2 BHP Billiton Limited 12 ANZ Banking Group 3 National Australia Bank 13 QBE Insurance Group 4 Commonwealth Bank 14 Metcash Limited 5 Westpac Banking Corp 15 Coca Cola Amatil 6 Wesfarmers Limi
Slide 14: BKI Performance
BKI Performance as at 30 June 2011 For personal use only BKI Performance 6 Mths 1 Year 3 Years 5 Years 7 Years as at 30 June 2011 (pa) (pa) (pa) S&P/ASX 300 ACC INDEX (XKOAI) -1.3% 11.9% 0.3% 2.4% 8.4% BKI Portfolio Returns are BKI Total Shareholder Returns -1.3% 11.2% 5.1% 2.9% 8.0% measured after
Slide 15: Market Commentary
Market Commentary For personal use only Retail investors continue to be bombarded with negativity surrounding weak global economies, high local interest rates and pressure on household affordability. As a defensive reaction to these circumstances we have seen household savings increase as the uncert
Slide 16: Market Commentary
Market Commentary For personal use only As a long term investor, however, BKI needs to continue to act upon these opportunities and invest for the future. BKI has been investing in good quality companies for many years and through many cycles. This period is no different. The quality of the BKI port
Slide 17: Market Commentary
Market Commentary For personal use only Balance sheets of quality companies appear more robust than ever. With this in mind, BKI remains confident that dividend distributions will continue to improve during the FY2011 reporting season and into FY2012. BKI will, however, be cautious of companies whos
Slide 18: For personal use only
For personal use only Low Cost Office Level 2, 160 Pitt Street Mall Sydney NSW 2000 Telephone +61 2 9210 7000 Fax +61 2 9210 7099 Low Risk Web www.bkilimited.com.au ABN 23 106 719 868 High Yield… …all through BKI.ASX 18
BKI Investment Company — FY2011 Earnings Presentation on 6ix