BKI Investment Co. Ltd. · ASX:BKI
BKI Investment — H1 FY2021 Earnings Presentation
25 slides from BKI Investment's earnings presentation, Jan 21, 2021
Slide 1: Results for the half year ended 31 December 2020
For personal use only BKI Investment Company Limited Results for the half year ended 31 December 2020 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: Result Summary
For personal use only Result Summary Results for the half year ended 31 December 2020 BKI is managed by Contact Asset Management AFSL 494045
Slide 4: Result Summary
Result Summary For the half year ended 31 December 2020 For personal use only Result excluding special investment revenue 1H 2021 1H 2020 Growth Investment revenue – ordinary $16.6m $27.0m -39% Net operating profit after tax $14.5m $24.5m -41% Earnings per share 1.96c 3.35c -41% Dividends per share
Slide 5: Change in Dividends Received – Top 25
Change in Dividends Received – Top 25 For the half year ended 31 December 2020 For personal use only Stock Change in Stock Change in Dividends Received Dividends Received 1 Macquarie Group -46% 14 Woodside Petroleum -32% 2 Commonwealth Bank -58% 15 Telstra Corporation -38% 3 BHP Group -30% 16 Harvey
Slide 6: Dividend History
Dividend History BKI’s historical annualised dividend yield is currently 3.5%* - grossed-up yield is 5.1%* For personal use only 5.00 4.00 Cents Per Share 3.00 2.00 1.00 0.00 Ordinary Dividends per Share Special Dividends per Share BKI has paid out $1.11 per share, or over $770m in dividends and fra
Slide 7: Income Generation
Income Generation Long term dividend income For personal use only Annual Dividends and Franking Credits Received $2,500 An investment of $10,000 to purchase BKI Income from BKI Dividends shares at IPO in December 2003 would now $2,000 be receiving annual fully franked dividends of $1,123pa. $1,605 $
Slide 8: Interim Dividend Dates
Interim Dividend Dates BKI’s DRP offers shareholders the opportunity to acquire further ordinary shares in BKI. For personal use only The DRP will not be offered at a discount. Key Dates Last trading date to be eligible for the dividend Thursday 4 February 2021 Ex-dividend date Friday 5 February 202
Slide 9: Performance
For personal use only Performance Results for the half year ended 31 December 2020 BKI is managed by Contact Asset Management AFSL 494045
Slide 10: Total Shareholder Returns
Total Shareholder Returns As at 31 December 2020 For personal use only 15.0% 13.9% 12.5% 9.3% 10.0% 8.6% 5.1% 5.0% 0.0% 3 mths 6 mths 1 Year 5 Yrs pa 10 Yrs pa 15 Yrs pa -3.2% -5.0% Source: BKI, Contact Asset Management, IRESS, Factset. Assumes the reinvestment of all dividends and includes franking
Slide 11: Long Term Performance and Income
Long Term Performance and Income As at 31 December 2020 For personal use only Cumulative Value per share (TSR), Including Franking Credits Cumulative Value of BKI Shares $5.00 Since listing in 2003, BKI’s investment $4.69 $4.50 strategy has been, and will continue to be, $4.00 focused on research dr
Slide 12: Pre-Tax Net Tangible Assets (NTA)
Pre-Tax Net Tangible Assets (NTA) As at 31 December 2020 For personal use only History of the Discount/Premium $1.90 $1.80 40% $1.70 $1.60 30% $1.50 $1.40 20% $1.30 $1.20 10% $1.10 $1.00 0% $0.90 $0.80 -10% $0.70 $0.60 -20% Prem/Disc % Pre Tax NTA BKI Share Price Prem/Disc Trend BKI Investment Compa
Slide 13: Pre-Tax Net Tangible Assets (NTA) – Weekly Reporting
Pre-Tax Net Tangible Assets (NTA) For personal use only Weekly Pre-Tax NTA Reporting BKI as a traditional Listed Investment Company (LIC), has traditionally quoted pre-tax and post-tax NTA’s on a monthly basis. This has quite often caused a disconnect between the current share price of the LIC and t
Slide 14: Portfolio
For personal use only Portfolio Results for the half year ended 31 December 2020 BKI is managed by Contact Asset Management AFSL 494045
Slide 15: Portfolio Positioning – Purchases
Portfolio Positioning For the half year ended 31 December 2020 For personal use only Investment Portfolio - Purchases 1. APA Group 2. National Australia Bank 3. Rio Tinto Limited 4. Fortescue Metals 5. Harvey Norman Holdings 6. Equity Trustees 7. IPH Limited 8. Commonwealth Bank 9. BHP Group BKI Inv
Slide 16: Portfolio Positioning – Sales
Portfolio Positioning For the half year ended 31 December 2020 For personal use only Investment Portfolio - Sales 1. Westpac Banking Corporation 2. Sydney Airport 3. IAG Limited 4. SEEK Limited Investment Portfolio - Reductions 1. New Hope Corporation BKI Investment Company Limited 16
Slide 17: BKI Portfolio – Top 25
BKI Portfolio – Top 25 For the half year ended 31 December 2020 For personal use only Stock % of Total Stock % of Total Portfolio Portfolio 1 Macquarie Group 8.0% 14 Woodside Petroleum 2.4% 2 Commonwealth Bank 8.0% 15 Telstra Corporation 2.2% 3 BHP Group 7.7% 16 Harvey Norman Holdings 2.1% 4 APA Gro
Slide 18: BKI Portfolio by Sector
BKI Portfolio by Sector For the half year ended 31 December 2020 For personal use only Financials Materials Consumer Industrials Utilities Property Telecommunications Healthcare Energy BKI Investment Company Limited 18
Slide 19: Portfolio Exposure by Sector
Portfolio Exposure by Sector For the half year ended 31 December 2020 For personal use only Bank Hybrids , 2% Real Estate, 3% Financials, 18% Energy, 4% Cash, 5% Telecommunication Services, 6% Banks, Utilities, 6% 12% Industrials, 6% Health Care, 7% Consumer Discretionary, Consumer Staples, 8% 12% M
Slide 20: Active Portfolio Weight by Sector
Active Portfolio Weight by Sector For the half year ended 31 December 2020 For personal use only Financials 10.1% Cash 5.3% Consumer Discretionary 5.0% Utilities 4.3% Telecommunication Services 1.8% Consumer Staples 1.5% Bank Hybrids 1.5% Energy 0.0% Industrials -1.2% Information Technology -3.7% Re
Slide 21: Investment Themes
For personal use only Investment Themes Results for the half year ended 31 December 2020 BKI is managed by Contact Asset Management AFSL 494045
Slide 22: Australia’s Equity Yield is Attractive
Australia’s Equity Yield is Attractive We expect to see further capital deployed Australian equities, utilising an For personal use only attractive yield and franking credits on offer. Germany 2.50% UK 1.98% China Japan France 1.48% 1.98% 1.90% United States Korea 1.45% 1.57% India 0.97% Australia 2
Slide 23: Retail, e-commerce and Logistics
Retail, e-commerce and Logistics For personal use only Pre COVID-19, Australia had a relatively undeveloped online retail offering. Many companies have benefited from the changes to behaviour in the COVID-19 world with the trends driving the demand for high quality, well located logistics assets acc
Slide 24: Funds Growth
Funds Growth The Super Guarantee Contribution rate is currently equal to 9.5% and will be increased by 0.5% on 1 For personal use only July 2021. Further increments of 0.5% will apply annually up to 2025‐26, when the Super Guarantee rate will be set at 12%. This will see a substantial growth in Aust
Slide 25: For more information, please visit www.bkilimited.com.au
For personal use only For more information, please visit www.bkilimited.com.au
BKI Investment Company — H1 FY2021 Earnings Presentation on 6ix