BKI Investment Co. Ltd. · ASX:BKI
BKI Investment — FY2023 Earnings Presentation
34 slides from BKI Investment's earnings presentation, Jul 19, 2023
Slide 1: Results for the full year ended 30 June 2023
For personal use only BKI Investment Company Limited Results for the full year ended 30 June 2023 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: Full Year Results
Full Year Results For the full year ended 30 June 2023 For personal use only Result excluding special investment revenue 2023 2022 Movement Investment revenue – ordinary $71.1m $62.6m 14% Revenue from operating activities $72.8m $63.4m 15% Net operating profit after tax $65.1m $58.1m 12% Earnings pe
Slide 4: Dividend History
Dividend History BKI is paying a fully franked final ordinary dividend of 4.00cps, taking full year dividends to 8.20cps. For personal use only Based on the 4.20cps FY2023 interim dividends and the 4.00cps FY2023 final dividend, the current BKI grossed up dividend yield is 6.8%, based on a tax rate
Slide 5: Final Dividend Key Dates
Final Dividend Key Dates Last trading date to be eligible for the BKI FY2023 final dividend is Thursday 10 August 2023. For personal use only Key Dates BKI Announce Full Year FY2023 Results Wednesday 19 July 2023 Last trading date to be eligible for dividend Thursday 10 August 2023 Ex-dividend Date
Slide 6: 2023 Share Purchase Plan
2023 Share Purchase Plan BKI completed another successful Share Purchase Plan (SPP) during FY2023, raising $72.98 million. For personal use only SPP Shares are eligible for the fully franked final dividend of 4.00cps. Source: BKI, Contact Asset Management, Factset. As at 30 June 2023. Assumes the fu
Slide 7: FY2023 Year in Review
For personal use only BKI Investment Company Limited FY2023 Year in Review BKI is managed by Contact Asset Management AFSL 494045
Slide 8: Performance: Total Shareholder Returns (TSR)
Performance As at 30 June 2023 For personal use only Total Shareholder Returns (TSR) BKI’s TSR, including franking credits, was positive 11.6% for 1 year. The S&P/ASX Accumulation Index (franked at 70%) returned 16.0% over the same period. 20.0% 16.0% 15.0% 14.3% 12.5% 11.6% 9.7% 10.0% 9.6% 10.0% 8.
Slide 9: Long Term Investing: Cumulative Share Price Returns
Long Term Investing As at 30 June 2023 For personal use only Cumulative Share Price Returns Assuming all dividends were reinvested and using the benefit of franking credits, the cumulative share price of BKI shares is currently $6.15 per share. $6.15 $7.00 $6.50 $6.00 $5.50 $5.00 $4.50 $4.00 $3.50 G
Slide 10: Premium / Discount to NTA
Premium / Discount to NTA For personal use only During FY2023, BKI’s share price has tracked in line with the Pre-Tax NTA $2.00 1.5% $1.90 Discount $1.80 $1.70 $1.60 $1.50 $1.40 $1.30 $1.20 $1.10 $1.00 Pre Tax NTA BKI Share Price Source: BKI, Contact Asset Management, Factset. as at 30 June 2023. 10
Slide 11: Portfolio Positioning
For personal use only BKI Investment Company Limited Portfolio Positioning BKI is managed by Contact Asset Management AFSL 494045
Slide 12: Portfolio Positioning: Purchases/Disposals during FY2023
Portfolio Positioning Purchases/Disposals during FY2023 For personal use only Purchases Disposals Add Exit Source: BKI, Contact Asset Management. As at 30 June 2023. 12
Slide 13: BKI Investment Portfolio
BKI Investment Portfolio As at 30 June 2023 For personal use only Stock % of Total Portfolio Stock % of Total Portfolio 1 BHP Group 8.54% 11 Sonic Healthcare 3.23% 2 Macquarie Group 8.37% 12 Telstra Group Limited 3.01% 3 Commonwealth Bank 6.62% 13 Rio Tinto Limited 2.43% 4 National Australia Bank 6.
Slide 14: BKI Investment Portfolio
BKI Investment Portfolio As at 30 June 2023 For personal use only Stock % of Total Portfolio Stock % of Total Portfolio 21 Aurizon Holdings 1.48% 31 Reece Limited 0.69% 22 Lindsay Australia 1.41% 32 Ampol Limited 0.59% 23 Goodman Group Limited 1.36% 33 Orora Limited 0.59% 24 Yancoal Australia 1.15%
Slide 15: Portfolio Positioning – Overweight/Underweight Positions
Portfolio Positioning – Overweight/Underweight Positions As at 30 June 2023 For personal use only Overweight Positions Underweight Positions Company Active Weight Company Active Weight APA Group 5.6% CSL Limited -5.6% Macquarie Group 5.5% Westpac Bank -3.1% New Hope Corporation 4.3% ANZ Banking Grou
Slide 16: Current Markets and Looking Ahead
For personal use only BKI Investment Company Limited Current Markets and Looking Ahead BKI is managed by Contact Asset Management AFSL 494045
Slide 17: Opportunities for Long-Term Investment
Opportunities for Long-Term Investment For personal use only 17
Slide 18: High Inflation and low Consumer Confidence
Opportunities for Long-Term Investment For personal use only High Inflation and low Consumer Confidence has dominated the macroeconomic discussion Source: RBA, ABS, Refinitiv, ANZ-Roy Morgan, Westpac and Melbourne Institute 18
Slide 19: Retail – Consumer Staples/Discretionary
Opportunities for Long-Term Investment For personal use only Retail – Consumer Staples/Discretionary • Robust employment market. • Significant wage growth. • Consumer staples all performing well in this environment. • Consumer staples will continue to provide goods to the consumer to buy regardless
Slide 20: Infrastructure – Utilities/Transportation/Telecommunications
Opportunities for Long-Term Investment For personal use only Infrastructure – Utilities/Transportation/Telecommunications Telecommunications • Increases to the price of mobile and broadband packages. Utilities and Transportation • Fixed price growth rates. • Price increases indexed to inflation. • P
Slide 21: Financials - Banks
Opportunities for Long-Term Investment For personal use only Financials - Banks • Reserve Bank lifted rates 10 times in FY2023. • Official cash rate of 4.10%. • This tool used by the Reserve Bank to combat high inflation, has created a highly profitable period for the Australian Banks. • Net Interes
Slide 22: Resources – Materials/Energy
Opportunities for Long-Term Investment For personal use only Resources – Materials/Energy BP Energy Outlook 2023 • “The energy transition requires substantial levels of investment across a wide range of energy value chains. The implied level of investment in wind and solar capacity accelerates marke
Slide 23: Australian Super Contributions
Opportunities for Long-Term Investment For personal use only Australian Super Contributions The projected superannuation assets in Australia continues to be substantial. Typical Asset Allocation to Australian Listed Shares is 22%. Projected Superannuation Assets in Australia ($billion) Projected Sup
Slide 24: ASX Index – PE Multiple - Last 5 Years
Opportunities for Long-Term Investment As at 30 June 2023 For personal use only ASX 300 Index – PE Multiple - Last 5 Years The PE Multiple for the BKI Portfolio is 14.7X The PE Multiple of the ASX 300 Index of 15.8X S&P/ASX 300 Index BKI Investment Company Source: BKI, Contact Asset Management, Fact
Slide 25: ASX Index – Dividend Yield - Last 5 Years
Opportunities for Long-Term Investment As at 30 June 2023 For personal use only ASX 300 Index – Dividend Yield - Last 5 Years The Dividend Yield for the BKI Portfolio is 4.9% The Dividend Yield of the ASX BKI Investment Company 300 Index of 3.9% S&P/ASX 300 Index Source: BKI, Contact Asset Managemen
Slide 26: Portfolio Sector Positioning - Growth and Valuation
Portfolio Sector Positioning - Highlighting Growth and Valuation For personal use only Larger bubbles represent a higher weighting in the portfolio 30% Cheap & High Expected Growth Expensive & High Expected Growth 20% Health Care Communications Industrials 10% Real Estate Growth (FY2) Infra / Utilit
Slide 27: Portfolio Sector Positioning - Yield and Valuation
Portfolio Sector Positioning - Highlighting Yield and Valuation For personal use only Larger bubbles represent a higher weighting in the portfolio 12% Cheap & High Expected Dividend Yield Expensive & High Expected Dividend Yield 10% Energy 8% Yield (FY2) 6% Banks Materials Infra / Utilities Industri
Slide 28: Portfolio Sector Positioning
Portfolio Sector Positioning For personal use only Active Positions and Exposure by Sector BKI Portfolio: Active Weight by Sector BKI Portfolio: Exposure by Sector Communication Services, Real Estate, 1.7% Cash 8.3% 5.8% Materials, 14.2% Energy 5.5% Health Care, 5.8% Utilities 4.6% Utilities, 6.1% C
Slide 29: Portfolio Stock Positioning - Yield and Valuation
Portfolio Stock Positioning - Highlighting Yield and Valuation For personal use only BKI’s Top 25 Positions 12% Cheap & High Expected Dividend Yield Expensive & High Expected Dividend Yield NHC 10% YAL 8% WDS Yield (FY2) HVN NAB 6% BHP SUN LAU RIO APA MTS AZJ MQG CBA TLS 4% AMC TCL TPG COL WES SHL W
Slide 30: Current Markets and Looking Ahead
For personal use only BKI Investment Company Limited Current Markets and Looking Ahead BKI is managed by Contact Asset Management AFSL 494045
Slide 31: Opportunities for Long-Term Investment
Opportunities for Long-Term Investment For personal use only A sensible, low-cost investment option, focused on quality. Despite the negativity surrounding global equity markets, BKI believes that the current market is offering a great opportunity for the long-term investor. Many companies within th
Slide 32: BKI Investment Company
BKI Investment Company For personal use only A sensible, low-cost investment option, focused on quality. Closed-End Company - Enabling a long-term view on investments without fund redemptions. High Value / Low Cost - Active, high conviction, no debt. No performance fees. Performance - Deliveri
Slide 33: BKI Investment Company key metrics
BKI Investment Company For personal use only A sensible, low-cost investment option, focused on quality. Historical Grossed 1 Year TSR^ 15 Year TSR^ MER Dividend Yield 1^ 6.8% 11.6% 9.6%pa 0.18% As at 30 June 2023 As at 30 June 2023 As at 30 June 2023 As at 30 June 2023 FY2023 Ordinary Investment To
Slide 34: For more information, please visit
For personal use only For more information, please visit www.bkilimited.com.au
BKI Investment Company — FY2023 Earnings Presentation on 6ix