BKI Investment Co. Ltd. · ASX:BKI
BKI Investment — Shareholder Meeting (October 2017)
28 slides from BKI Investment's shareholder meeting presentation, Oct 10, 2017
Slide 1: BKI Investment Company Limited 2017 Annual General Meeting
For personal use only BKI INVESTMENT COMPANY LIMITED 2017 ANNUAL GENERAL MEETING BKI is managed by Contact Asset Management AFSL 494045
Slide 2: Chairman's Address
For personal use only CHAIRMAN’S ADDRESS 2017 ANNUAL GENERAL MEETING BKI is managed by Contact Asset Management AFSL 494045
Slide 3: Disclaimer
For personal use only DISCLAIMER 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 4: Non Executive Directors
For personal use only NON EXECUTIVE DIRECTORS Robert Millner Chairman of the Board Chairman of the Investment Committee Member of the Remuneration Committee, Nomination Committee David Hall AM Independent Non-Executive Director Chairman of the Audit Committee Member of the Remuneration Committee Ale
Slide 5: Investment Manager
For personal use only INVESTMENT MANAGER Tom Millner Portfolio Manager – Contact Asset Management Member of the Investment Committee Will Culbert Portfolio Manager – Contact Asset Management Member of the Investment Committee Rahul Tamilarasan Investment Analyst – Contact Asset Management Jovana Gag
Slide 6: Company Secretaries and Auditor
For personal use only COMPANY SECRETARIES Jaime Pinto Company Secretary – Corporate Administration Services Larina Tcherkezian Company Secretary (Alternate) – Corporate Administration Services COMPANY AUDITOR Ivan Lee Company Auditor – MGI Sydney Assurance Services 6
Slide 7: Background and History
For personal use only BACKGROUND AND HISTORY 7 * Assumes a tax rate of 30% # Total Shareholder Return including Franking Credits **Includes FY2017 Final Dividend
Slide 8: FY2017 Result Highlights
For personal use only FY2017 RESULT HIGHLIGHTS FY 2017 FY 2016 Growth Net Operating Result* $41.8m $41.2m 1% Net Profit Attributable to Shareholders $45.6m $42.3m 8% Earnings Per Share* 6.93cps 7.16cps -3% Earnings Per Share including Specials 7.57cps 7.35cps 3% Total Ordinary Dividend Per Share 7.3
Slide 9: Dividend History of BKI
For personal use only DIVIDEND HISTORY OF BKI A fully franked Final Ordinary Dividend of 3.70cps 0.50 1.00 was declared, bringing the total FY2017 dividend 1.00 to 7.30cps, representing a 96% pay-out ratio on 1.00 BKI’s Net Profit. 7.30 7.25 7.20 6.95 6.65 As at 30 June 2017, BKI’s fully franked div
Slide 10: Externalised Management
For personal use only EXTERNALISED MANAGEMENT On 26 September 2016 BKI announced that the management of its investment portfolio would be externalised. The portfolio management and advisory function has been assumed by Contact Asset Management Pty Ltd, an investment Board of Directors management com
Slide 11: Share Purchase Plan and Share Sale Agreement
For personal use only SHARE PURCHASE PLAN BKI announced on 22 June 2017 that it had raised $21.2m under its 2017 Share Purchase Plan (SPP). BKI Shareholders were given the opportunity to purchase shares up to a maximum value of $15,000 at $1.58 per share. The offer was once again attractive for shar
Slide 12: Investment Manager's Address
For personal use only INVESTMENT MANAGER’S ADDRESS 2017 ANNUAL GENERAL MEETING BKI is managed by Contact Asset Management AFSL 494045
Slide 13: Net Operating Profits
For personal use only NET OPERATING PROFITS 50,000 Net Operating Result before special investment 45,000 revenue increased from $41.2m to $41.8m, while 40,000 the Net Profit Attributable to Shareholders 35,000 increased 8% to $45.6m. 30,000 $ ‘000 FY2017 results were mainly driven by higher 25,000 d
Slide 14: Total Shareholder Returns
For personal use only TOTAL SHAREHOLDER RETURNS 18.0% BKI’s Total Shareholder Return including franking 15.5% credits for the year to 30 June 2017 was 9.3%, 14.1% 13.3% compared to the S&P/ASX 300 Accumulation 13.0% 11.2% Index, which returned 15.5%. 9.3% 10.1% 7.8% BKI’s 13 year Total Shareholder R
Slide 15: Portfolio Positioning - Financials
For personal use only PORTFOLIO POSITIONING - FINANCIALS Banking stocks continue to form a very important segment of the BKI Investment Portfolio. They Banks Weighting of BKI Income Received from Banks provide good long term value as well as a very attractive and sustainable dividend stream. Banks F
Slide 16: Portfolio Positioning – Growing Economies
For personal use only PORTFOLIO POSITIONING – GROWING ECONOMIES Australia and NSW in particular are undergoing a significant transformation, with our major cities and economies growing. Creating opportunities in employment, housing, education, health services and tourism. Sydney’s population is esti
Slide 17: Portfolio Positioning - Infrastructure
For personal use only PORTFOLIO POSITIONING - INFRASTRUCTURE 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 18: Portfolio Positioning - Retail
For personal use only PORTFOLIO POSITIONING - RETAIL The impending arrival of Amazon.com into the Australian marketplace has sent shock waves through the retail sector. Especially those associated with our relatively undeveloped online retail market. Market Capitalisation of Amazon.com is over AUD$5
Slide 19: Portfolio Positioning - Retail
For personal use only PORTFOLIO POSITIONING - RETAIL Progress is impossible without change. Change brings opportunity. Amazon.com will offer many opportunities for Australian companies, workers and investors. Amazon.com will need Distribution Centres built. They will need access to packaging, supply
Slide 20: Portfolio Positioning - Energy
For personal use only PORTFOLIO POSITIONING - ENERGY What is the impact on electricity bills? To ensure Australia reaches its Renewable Energy Targets, electricity subsidies on renewable energy sources such as wind and solar are expected to cost $2.7 billion. These subsidies are then expected to gro
Slide 21: 1Q FY2018 Update
For personal use only 1Q FY2018 UPDATE 2017 ANNUAL GENERAL MEETING BKI is managed by Contact Asset Management AFSL 494045
Slide 22: Benefit of Long Term Investing
For personal use only BENEFIT OF LONG TERM INVESTING The capital appreciation of BKI shares since IPO in $4.50 December 2003 has been strong. As at 30 $4.00 $4.07 September 2017 BKI shares were valued at $1.66. $3.50 $3.00 As at 30 September 2017 BKI shares including the $2.50 reinvestment of divide
Slide 23: Income Generation
For personal use only INCOME GENERATION Dividends + Franking Credits received from a $2,000 $1,865 $10,000 investment in BKI at inception versus $1,800 Bank Quarterly Interest. $1,600 $1,400 $1,200 An investor who spent the equivalent of $10,000 $1,000 to purchase BKI shares upon listing in December
Slide 24: Total Shareholder Returns
For personal use only TOTAL SHAREHOLDER RETURNS 15.0% BKI’s Total Shareholder Return including franking 13.0% 12.6% credits for the year to 30 September 2017 was 11.6% 11.2% 13.0%, compared to the S&P/ASX 300 10.7% 9.7% Accumulation Index, which returned 10.7%. 10.0% 8.3% BKI’s 13 year Total Shareho
Slide 25: Portfolio Positioning - Investment Portfolio Purchases
For personal use only PORTFOLIO POSITIONING Investment Portfolio Purchases 1. Ramsay Healthcare 2. Amcor Limited 3. Invocare Limited 4. Sonic Healthcare 5. Woodside Corporation 6. Lendlease Group 7. Woolworths Limited 25
Slide 26: Portfolio Positioning - Top Holdings
PORTFOLIO POSITIONING For personal use only As at 30 September 2017 Stock % of Total Stock % of Total Portfolio Portfolio 1 National Australia Bank 8.8% 14 Invocare Limited 2.4% 2 Westpac Banking Corp 7.4% 15 Ramsay HealthCare 2.2% 3 Commonwealth Bank 7.2% 16 Macquarie Group 2.2% 4 ANZ Banking Group
Slide 27: Portfolio Positioning - Sector Allocation
PORTFOLIO POSITIONING For personal use only As at 30 September 2017 Bank Hybrids , 1% Real Estate, 1% Energy, 2% Health Care, 5% Banks, 29% Materials, 5% Telco’s 6% Cash, 6% Utilities, 6% Consumer Discretionary, 6% Financials, 14% Consumer Staples, 8% 27 Industrials, 10%
Slide 28: FY2018 Update
For personal use only FY2018 Update Income from Operating Activities and Operating Result after Tax (Before Special Investment Revenue) for FY2018 is expected to be in line with last year. Barring any unforeseen circumstances, BKI is confident of at least maintaining the Interim and Final Ordinary F
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