BKI Investment Co. Ltd. · ASX:BKI
BKI Investment — Investor Presentation (February 2012)
16 slides from BKI Investment's investor presentation, Feb 13, 2012
Slide 1: Presentation to Shareholders
For personal use only Presentation to Shareholders February 2012
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 individual’s financial circumstances or investment objectives. This is general investment ad
Slide 3: Directors and Management
Directors and Management For personal use only Name Position Special Responsibilities Mr Robert Millner Non-Executive Director and Investment Committee Chairman Remuneration Committee Mr David Hall Independent Non-Executive Chairman Audit Committee Director Remuneration Committee Mr Alex Payne Non-E
Slide 4: Fund Manager of the Year Awards
Fund Manager of the Year Awards For personal use only BKI awarded “2011 Listed Investment Company of the Year”. The award is a great endorsement of an LIC whose major focus is to invest in quality companies, enabling it to generate a growing dividend stream and capital growth. Exciting future
Slide 5: BKI Result Highlights
BKI Result Highlights For personal use only 1H 2012 1H 2011 Growth Ordinary Dividend Income $14.34m $12.46m 12.4% Net Operating Result $14.16m $12.81m 10.5% Net Operating Profit $16.42m $15.60m 5.2% Earnings Per Share 3.33cps 3.03cps 9.3% Dividend Per Share 3.20cps 3.00cps 6.7% 5
Slide 6: Dividends Paid
Dividends Paid For personal use only 7.0 1 6.0 1 1 5.0 4.0 3.0 6 6 6 5 5.3 5.25 2.0 4.3 3.2 1.0 2 0.0 cps cps cps cps cps cps cps cps cps 2004 2005 2006 2007 2008 2009 2010 2011 2012 Ordinary Dividends Special Dividends 6
Slide 7: Management Expense Ratio
Management Expense Ratio For personal use only 0.80% 0.69% 0.71% 0.70% 0.56% 0.60% 0.46% 0.46% 0.50% 0.40% 0.31% 0.30% 0.19% 0.18% 0.18% 0.20% 0.10% 2004 2005 2006 2007 2008 2009 2010 2011 1H 2012 7
Slide 8: BKI Performance
BKI Performance as at 31 January 2012 For personal use only BKI Performance 6 Mths 1 Year 3 Years 5 Years 7 Years as at 31 January 2012 (pa) (pa) (pa) S&P/ASX 300 ACC INDEX (XKOAI) -1.4% -6.5% 11.3% -1.8% 4.9% BKI Portfolio Returns are BKI Total Shareholder Returns 1.1% -1.7% 14.9% 0.2% 6.1% measure
Slide 9: Valuation – PE Ratios
Valuation – PE Ratios For personal use only 25 Australia US Euro UK 20 Historical PE Multiples (X) - Global Markets 15 10 5 2001 2003 2005 2007 2009 2011 2013 18 15 12 Australian Historical 9 PE Ratios (X) Australia Average 6 2001 2003 2005 2007 2009 2011 2013 Source: Credit Suisse 9
Slide 10: Income – Dividend Yields
Income – Dividend Yields For personal use only 7% 6% 5% Historical Dividend Yields (%) 4% - Global Markets 3% 2% 1% Australia US Euro UK 0% 2001 2003 2005 2007 2009 2011 2013 7% 6% Australia Average 5% Australian Historical 4% Dividend Yield (%) 3% 2% 2001 2003 2005 2007 2009 2011 2013 Source: Credi
Slide 11: Investment Opportunity
Investment Opportunity For personal use only Balance sheets of quality companies are robust and dividend distributions have continued to improve. Cautious of companies exposed to: Retail, Media and Manufacturing Focused on our Stock Selection Criteria: 1. Income Dividend Yields, Franking, Pay
Slide 12: Diversification
Diversification Top 20 Investments For personal use only As at 31 January 2012 1 New Hope Corporation 11 ANZ Banking Group 2 BHP Billiton Limited 12 Woodside Petroleum 3 Commonwealth Bank 13 Metcash Limited 4 National Australia Bank 14 Coca Cola Amatil Limited 5 Westpac Banking Corp 15 Westpac Pref
Slide 13: Value
Value For personal use only Opportunity for investment at an 11% discount to the Pre Tax NTA. Ideal for long term passive shareholders and SMSF. $1.70 $1.60 30.0% $1.50 $1.40 20.0% $1.30 $1.20 10.0% $1.10 $1.00 0.0% $0.90 $0.80 $0.70 -10.0% $0.60 $0.50 -20.0% Prem/Disc % Pre Tax NTA BKI Share Price
Slide 14: Outlook
Outlook For personal use only Mixed economic data from international economies and markets is expected to continue for the short to medium term. The uncertainty on the future cost of living and pressure on household affordability continues to leave the local investor with a low level of confidence.
Slide 15: Outlook
Outlook For personal use only Rates offered by banks and other financial institutions will negatively impact the level of income received by some investors. BKI believe that the lower levels of income received from cash and other fixed interest products could be a catalyst for retail investors to se
Slide 16: Low Cost, Low Risk, High Yield
Low Cost For personal use only Office Level 2, 160 Pitt Street Low Risk Sydney NSW 2000 Telephone +61 2 9210 7000 Fax +61 2 9210 7099 Web www.bkilimited.com.au ABN 23 106 719 868 High Yield… …all through BKI.ASX www.bkilimited.com.au
BKI Investment Company — Investor Presentation (February 2012) on 6ix