BKI Investment Co. Ltd. · ASX:BKI
BKI Investment — H1 2016 Earnings Presentation
29 slides from BKI Investment's earnings presentation, Jan 20, 2016
Slide 1: FY2016 Half Year Results Presentation
For personal use only BKI Investment Company Limited FY2016 HALF YEAR 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: BKI Overview
For personal use only BKI Investment Company Limited BKI OVERVIEW 3
Slide 4: 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 5: Non Executive Directors and Management
Non Executive Directors For personal use only Robert Millner Chairman of the Board David Hall AM Chairman of the Audit Committee Experience Alex Payne Member of the Investment Committee Ian Huntley Member of the Investment Committee The Board and Management of BKI has over 180 years Management Tom M
Slide 6: Result Highlights
For personal use only BKI Investment Company Limited RESULT HIGHLIGHTS 6
Slide 7: Delivering Strong Results
Delivering Strong Results For personal use only 1H 2016 1H 2015 Growth Ordinary Investment Income $21.7m $20.2m 7.4% Net Operating Result* $21.4m $20.8m 2.6% Earnings Per Share* 3.78cps 3.80cps -0.5% Total Ordinary Dividends Per Share 3.60cps 3.55cps 1.4% Management Expense Ratio (MER) 0.17% Down fr
Slide 8: Dividend, Performance
For personal use only BKI Investment Company Limited DIVIDEND, PERFORMANCE 8
Slide 9: Low Cost
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% 0.20% 0.17% 0.10% Low Costs - BKI Ma
Slide 10: Growing Fully Franked Dividend
Growing Fully Franked Dividend We focus on creating wealth for all shareholders by keeping costs low For personal use only and increasing fully franked dividends and capital growth. 7.50 0.50 1.00 6.50 The thicker 1.00 1.00 5.50 the carpet… 4.50 7.20 6.95 6.65 3.50 6.40 6.00 6.00 6.00 The thinner 5.
Slide 11: Interim 2016 Fully Franked Dividend – Key Dates
Interim 2016 Fully Franked Dividend – Key Dates For personal use only Event Date Last trading date to be eligible for the Interim 2016 Dividend Wednesday 3 February 2016 Ex-Dividend Date Thursday 4 February 2016 Record Date Monday 8 February 2016 DRP Nomination Tuesday 9 February 2016 Payment Date F
Slide 12: Portfolio Performance
Portfolio Performance BKI Portfolio Net of tax and Expenses For personal use only As at 31 December 2015 Returns are 12.0% measured after 10.2% 9.9% 10.0% 9.0% all operating 8.0% 8.2% 7.4% 6.7% 6.5% expenses, 6.0% 5.5% provision and 4.0% 3.0% 2.8% payment of 2.0% income tax and 0.0% 1 Year 3 Yrs pa
Slide 13: Total Shareholder Returns
Total Shareholder Returns Total Shareholder Including Franking Credits For personal use only As at 31 December 2015 Returns including the benefit of franking 20.0% credits passed on from 16.4% 15.0% 13.9% BKI to shareholders. 12.8% 13.6% 11.9% 10.7% 10.4% 10.0% 8.5% 7.3% BKI has ample franking 5.0%
Slide 14: Long Term Investment Portfolio
For personal use only BKI Investment Company Limited LONG TERM INVESTMENT PORTFOLIO 14
Slide 15: BKI Portfolio – 1H 2016 Movements
BKI Portfolio – 1H 2016 Movements July – December 2015 For personal use only Main Purchases Main Sales Low Portfolio Turnover ANZ Banking Group MaxiTrans Industries National Australia Bank G8 Education 70% 60% Commonwealth Bank Origin Energy 50% APA Group Skilled Group 40% Sydney Airport 30% Woolwor
Slide 16: BKI Portfolio – Top Shareholdings as at December 2015
BKI Portfolio – Top 25 Shareholdings as at 31 December 2015 For personal use only Stock % of Total Stock % of Total Portfolio Portfolio 1 Commonwealth Bank 9.7% 14 IAG Limited 1.9% 2 National Australia Bank 8.8% 15 Invocare Limited 1.8% 3 Westpac Bank 7.7% 16 Ramsay Healthcare 1.7% 4 Telstra Corpora
Slide 17: BKI Portfolio – Exposure by Sector
BKI Portfolio – Exposure by Sector High Conviction For personal use only Cash 5.5% Resources 9.2% Benchmark Unaware Industrials 8.2% Health Care 4.0% Telecommunications 10.2% BKI’s long term Property 0.4% strategy of investing in Utilities 5.7% dividend paying stocks means the portfolio is not align
Slide 18: BKI Portfolio – Active Weight by Sector
BKI Portfolio – Active Weight by Sector For personal use only Cash 5.5% Telecommunication Services 5.0% Utilities 3.8% Banks 1.8% Consumer Staples 1.4% Energy 1.0% Industrials 0.2% Financials 0.0% Health Care -0.8% Information Technology -1.1% Consumer Discretionary -1.8% Materials -8.2% Real Estate
Slide 19: BKI Portfolio - A Focus on the Future
BKI Portfolio - A Focus on the Future For personal use only Portfolio exposure to Resources is currently 9.2%. Main investments New Hope, BHP Billiton and Woodside continue to have robust balance sheets and sound diversified assets, placing them well for future growth. Our weighting to a diversified
Slide 20: BKI Portfolio – Financials
BKI Portfolio – Financials For personal use only 20
Slide 21: BKI Portfolio – Healthcare
BKI Portfolio – Healthcare For personal use only 21
Slide 22: BKI Portfolio – Energy
BKI Portfolio – Energy For personal use only 22
Slide 23: BKI Portfolio – Infrastructure
BKI Portfolio – Infrastructure For personal use only 23
Slide 24: Appendix
For personal use only BKI Investment Company Limited APPENDIX 24
Slide 25: Key Differentiators
Key Differentiators For personal use only High Value / Low Cost - Active, high conviction, closed end portfolio, with no Debt. MER of 0.17%. No external portfolio management or performance fees. Performance - Delivering sound returns plus dividend growth. Alignment - Directors and Management a
Slide 26: 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 $901m*. • Simplici
Slide 27: Experience and Alignment
Experience and Alignment For personal use only Equity Investment Tenure Team Member Qualifications Position Ownership Experience With BKI 1 Robert Millner FAICD Chairman 32 yrs 12 yrs 8,490,539 Investment Committee David Hall, AM FCA, FAICD Non Executive Director Chairman Audit 36 yrs 12 yrs 277,970
Slide 28: BKI Fact Sheet
BKI Fact Sheet For personal use only ASX Code BKI.ASX Research Coverage Morningstar Listing Date December 2003 Morgan Stanley Mandate Aust Listed Equities Bell Potter Investment Sectors Diversified Evans and Partners S&P/ASX 300 BaillieuHolst Benchmark Acc Index Approved Product List Dixon Advisory
Slide 29: www.bkilimited.com.au
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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