BKI Investment Co. Ltd. · ASX:BKI
BKI Investment — Shareholder Meeting (October 2024)
34 slides from BKI Investment's shareholder meeting presentation, Oct 15, 2024
Slide 1: 2024 Annual General Meeting
For personal use only 2024 Annual General Meeting Tuesday 15th October 2024 Brickworks Design Studio 2 Barrack Street, Sydney, NSW 2000
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: Agenda
Agenda For personal use only 1. Welcome 2. Introductions 3. Chairman’s Address 4. Investment Manager’s Report 5. Questions 6. Formal Business 3
Slide 4: Introductions: Non-Executive Directors
Introductions Non-Executive Directors For personal use only Robert Millner AO Chairman of the Board Chairman of the Investment Committee Member of the Remuneration and Nomination Committees David Hall AM Independent Non-Executive Director Chairman of the Audit Committee Member of the Remuneration Co
Slide 5: Introductions: Contact Asset Management
Introductions Contact Asset Management For personal use only Tom Millner Portfolio Manager Member of the Investment Committee Will Culbert Portfolio Manager Member of the Investment Committee Amanda Wong Company Secretary Rob Horne Investment Analyst MGI Sydney Assurance Services Kimmy Jongue Compan
Slide 6: Chairman's Address
For personal use only Chairman’s Address
Slide 7: Full Year Results
Full Year Results For the year ended 30 June 2024 For personal use only FY2024 FY2023 Movement Result excluding special investment revenue ($m) ($m) (%) Ordinary revenue from Investment Portfolio $64.0 $71.1 -10% Total Revenue - Ordinary $68.0 $72.8 -7% Operating Result (before tax and special inves
Slide 8: Full Year Results
Full Year Results Following the record result announced in FY2023, BKI has delivered a solid EPS and Net Operating For personal use only Result during FY2024. Full Year Net Operating Result Full Year Earnings Per Share (before special dividends) (before special dividends) $80m 8.00 $70m 7.00 $60m 6.
Slide 9: Years of Strong Dividends
20 Years of Strong Dividends BKI has a strong history of paying fully franked dividends and offering an attractive yield. For personal use only 5.00 FY2024 Full Year 4.00 Dividends of 3.00 7.85cps up 2% on FY2023 2.00 1.00 0.00 Ordinary Dividends per Share Special Dividends per Share Source: BKI, Co
Slide 10: Investor Focused
Investor Focused BKI has an investor focused approach. Higher fees don’t automatically translate into better returns. For personal use only History of BKI’s MER Cumulative Share Price Returns We know that small fees have positive impacts on Assuming all dividends were reinvested and using the invest
Slide 11: Investor Focused
Investor Focused BKI has an investor focused approach. Higher fees don’t automatically translate into better returns. For personal use only Weekly NTA NTA and Contact Quarterly Investor Annual Update Monthly Report Insights Report Presentations Report Sign up for News and Information from BKI and Co
Slide 12: Investment Manager's Address
For personal use only Investment Manager’s Address
Slide 13: Portfolio Movements: Main Purchases
Portfolio Movements As at 30 June 2024 For personal use only Main Purchases Add 13
Slide 14: Portfolio Movements: Sales
Portfolio Movements As at 30 June 2024 For personal use only Sales Sales Reduce Exit 14
Slide 15: Top Positions
Top 10 Positions As at 30 June 2024 For personal use only BKI’s Top 10 Investments Company Name Portfolio Weight Active Weight 1 Year TSR* Dividend Yield Commonwealth Bank 8.7% 0.5% 27.4% 3.6% BHP Group 8.3% -0.2% 0.8% 5.2% National Australia Bank 7.3% 3.0% 36.3% 4.6% Macquarie Group 6.9% 3.8% 17.3%
Slide 16: Performance – Portfolio Return
Performance – Portfolio Return As at 30 June 2024 For personal use only BKI Portfolio Return* 15.0% 13.3% 11.4% 10.5% 10.2% 9.8% 10.0% 9.2% 9.5% 9.4% 8.3% 8.6% 7.9% 7.5% 5.0% 0.0% 1 Year 3 Yrs pa 5 Yrs pa 10 Yrs pa 15 Yrs pa 20 Yrs pa BKI Portfolio Performance Including Franking Credits S&P/ASX 300
Slide 17: Performance - Total Shareholder Return (TSR)
Performance - Total Shareholder Return (TSR) As at 30 June 2024 For personal use only Total Shareholder Returns (TSR) 15.0% 13.3% 10.4% 10.5% 9.8% 10.2% 10.0% 9.5% 8.6% 8.0% 8.1% 7.5% 6.9% 5.0% 3.8% 0.0% 1 Year 3 Yrs pa 5 Yrs pa 10 Yrs pa 15 Yrs pa 20 Yrs pa BKI Total Shareholder Returns - 100% Fran
Slide 18: Pre-Tax NTA Premium/Discount History
Investor Focused Pre-Tax NTA Premium/Discount History For personal use only As at 30 June 2024 $1.90 30% BKI’s Pre-Tax Net Tangible Assets as at $1.80 $1.70 30 June 2024 was $1.83. $1.60 20% $1.50 $1.40 BKI’s share price of $1.68 represented $1.30 10% an 8.4% discount to the pre-tax NTA. $1.20 $1.10
Slide 19: FY2025 Update
For personal use only FY2025 Update As at 30 September 2024
Slide 20: Portfolio Positioning – Market Rotation
Portfolio Positioning – Market Rotation As at 30 September 2024 For personal use only Financials and Materials 1 Year Performance 150 Recent stimulus announcements from 140 S&P/ASX 300 The Peoples Bank of Financials Index 130 China, as well as the Federal Reserve’s 120 0.50% interest rate cut 110 S&
Slide 21: Portfolio Positioning – Banks/Financials
Portfolio Positioning – Banks/Financials As at 30 September 2024 For personal use only September 2023 September 2024 BHP Group 1 1 BHP Group Appreciating share prices in Banks and Financials has seen BKI’s weighting to this Macquarie Group 2 2 Commonwealth Bank sector increase over the year. APA Gro
Slide 22: Portfolio Positioning – Resources/Energy
Portfolio Positioning – Resources/Energy As at 30 September 2024 For personal use only September 2023 September 2024 BHP Group 1 1 BHP Group Declining share prices in Resources and Energy has seen BKI’s weighting to these Macquarie Group 2 2 Commonwealth Bank sectors reduce over the year. APA Group
Slide 23: Portfolio Positioning – Market Rotation
Portfolio Positioning – Market Rotation As at 30 September 2024 For personal use only Large Cap and Mid/Small Cap Stocks Quality Mid/Small-cap stocks can offer a 140 compelling investment 130 S&P/ASX Top 20 opportunity into a 120 S&P/ASX Mid diversified portfolio. Caps 110 Mid/Small-cap stocks can 1
Slide 24: Areas of Focus – PE Comparison
Areas of Focus – PE Comparison As at 30 September 2024 For personal use only Australian Equities Market P/E Multiple Comparison 40.0x 35.0x 30.0x 25.0x 25.8x NASDAQ 20.9x S&P 500 Index 20.0x 18.2x S&P/ASX 300 Index 15.0x 10.0x S&P 500 NASDAQ S&P/ASX 300 Source: Factset, BKI, Contact Asset Management
Slide 25: Portfolio Positioning – Yield and Valuation
Portfolio Positioning – Yield and Valuation As at 30 September 2024 For personal use only 12% September 2023 September 2024 12% The significant Cheap / High Yield Expensive / High Yield Cheap / High Yield Expensive / High Yield appreciation in equity 10% 10% markets has seen most stocks trade at Ene
Slide 26: Portfolio Movements
Portfolio Movements As at 30 September 2024 For personal use only Main Purchases Main Sales Company Name Yield Company Name Yield Dalrymple Bay Infrastructure 6.8% Wesfarmers Limited 3.0% Suncorp Group 4.5% Commonwealth Bank 3.5% Telstra Group Limited 4.9% National Australia Bank 4.5% Woodside Energ
Slide 27: Portfolio Positioning – Sector Analysis
Portfolio Positioning – Sector Analysis As at 30 September 2024 For personal use only Active Weight by Sector Exposure by Sector Cash 6.9% Health Care, 4.5% Energy 5.1% Consumer Staples, 4.8% Banks, 13.5% Consumer Discretionary 3.8% Utilities, 4.9% Utilities 3.4% Industrials 2.5% Real Estate, 5.2% C
Slide 28: Portfolio Positioning
Portfolio Positioning As at 30 September 2024 For personal use only Stock % of Total Portfolio Stock % of Total Portfolio 1 BHP Group 8.6% 11 ARB Corporation 3.0% 2 Commonwealth Bank 7.6% 12 Transurban Group 3.0% 3 Macquarie Group 7.4% 13 Woolworths Limited 2.6% 4 National Australia Bank 5.9% 14 Sun
Slide 29: Portfolio Positioning
Portfolio Positioning As at 30 September 2024 For personal use only Stock % of Total Portfolio Stock % of Total Portfolio 21 Dalrymple Bay Infra 1.7% 31 EQT Holdings 0.9% 22 Ramsay Healthcare 1.5% 32 Smartgroup Corporation 0.9% 23 Coles Group 1.3% 33 Metcash Limited 0.8% 24 Mirvac Group 1.3% 34 Bric
Slide 30: Overweight / Underweight Positions
Overweight / Underweight Positions As at 30 September 2024 For personal use only Overweight Positions Underweight Positions Company Active Weight Company Active Weight APA Group 4.9% CSL Limited -5.5% New Hope Group 4.1% Westpac Bank -3.6% Macquarie Group 3.8% ANZ Banking Group -3.3% National Austra
Slide 31: Opportunities for Long-Term Investment
Opportunities for Long-Term Investment As at 30 September 2024 For personal use only Top of the Boom Rising Real Estate Values Easier Money Rising Interest Rates Rising Overseas Reserves Falling Share Prices Rising Commodity Prices Falling Commodity Prices Rising Share Prices Falling Overseas Reserv
Slide 32: Performance
Performance As at 30 September 2024 For personal use only BKI Portfolio Performance* Cumulative Share Price Performance 25.0% $7.50 23.1% $7.13 $7.00 $6.50 20.0% $6.00 17.2% $5.50 $5.00 15.0% $4.50 $4.00 10.8% 10.4% 10.5% 9.6% 9.3% 9.7% 8.7% 9.6% 9.7% $3.50 10.0% 8.9% 7.2% $3.00 5.6% $2.50 $2.00 5.0
Slide 33: FY2025 Update
FY2025 Update As at 30 September 2024 For personal use only Following the August/September reporting season, BKI expects to receive approximately $31.0m in Ordinary Revenue (excluding Special Dividend Income) for the first half of FY2025. This compares to BKI’s first half FY2024 Ordinary Revenue res
Slide 34: Questions
For personal use only 2024 Annual General Meeting Questions
BKI Investment Company — Shareholder Meeting (October 2024) on 6ix