BKI Investment Co. Ltd. · ASX:BKI
BKI Investment — Investor Presentation (February 2010)
36 slides from BKI Investment's investor presentation, Feb 24, 2010
Slide 1: Investor Presentation cover letter
For personal use only ABN: 23 106 719 868 Level 2,160 Pitt Street Sydney NSW 2000 Ph. (02) 9210-7000 Fax. (02) 9210-7099 24th February 2010 The Manager Company Announcements Australian Stock Exchange Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 Dear Sirs Re: Investor Presentation Please
Slide 2: Presentation to Shareholders February 2010
For personal use only Presentation to Shareholders February 2010 1
Slide 3: 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 individuals financial circumstances or investment objectives. This is general investment adv
Slide 4: Background Information
For personal use only Background Information 3
Slide 5: Background
Background For personal use only BKI was formed on the 17th October 2003 to take over the investment portfolio of Brickworks Limited. BKI’s investment portfolio has been built on a philosophy of long term investment with a focus on Australian equities. It primarily seeks to invest in well-managed bu
Slide 6: Board and Management
Board and Management For personal use only Directors Robert Millner Non-Executive Director, Chairman David Hall Non-Executive Director Alexander Payne Non-Executive Director Ian Huntley Non-Executive Director Chief Executive Officer Thomas Millner Company Secretary Richard Pillinger 5
Slide 7: Investment Committee
Investment Committee For personal use only BKI is internally managed. Final investment decisions are made by the Investment Committee who meet on a regular basis to review the portfolio. Investment Committee Robert Millner - Chairman of the Investment Committee Alexander Payne Ian Huntley Thomas Mil
Slide 8: BKI Half Year 2010 Result Highlights
For personal use only BKI Half Year 2010 Result Highlights 7
Slide 9: Revenues
Revenues For personal use only Income from operating activities before special dividends and gains/losses on investment portfolio was $11.6m, up 8.4%. BKI received Special Dividend and Distribution income of $11.2m. 8
Slide 10: Operating Profits
Operating Profits For personal use only Net operating profit before special dividend income, realised and unrealised losses on investment portfolio was up 11.7% to $10.7m. 9
Slide 11: Net Profits
Net Profits For personal use only Net profit after tax attributable to shareholders was $19.4m up 36.4% on the previous corresponding period. 10
Slide 12: Dividends Paid
Dividends Paid For personal use only The Interim Dividend consists of a 2.5cps Ordinary Dividend and a 0.5cps Special Dividend, both fully franked. As at 31st December 2009 there are $16.9m of franking credits available to BKI. 11
Slide 13: Earnings Per Share
Earnings Per Share For personal use only Basic Earnings Per Share after special dividend income and realised gains on investment portfolio was up 2.8% to 4.8cps. 12
Slide 14: Management Expense Ratio
Management Expense Ratio For personal use only Operating Expenses were $476k as at 31st December 2009, a reduction of 48.3% on the corresponding period. BKI’s Management Expense Ratio (MER) has decreased from 0.31% to 0.17% over the last 6 months. 13
Slide 15: Net Tangible Assets
Net Tangible Assets For personal use only The consolidated net asset backing of the company’s shares at 31st December 2009 was $1.45 per share. 14
Slide 16: Portfolio Valuation
Portfolio Valuation For personal use only Investment Portfolio* Total Portfolio value has increased 25.9% to $605.6m. An investment in BKI gives shareholders access to a diversified portfolio. BKI has currently 64 companies within the investment portfolio across most sectors of the market. 15 * Incl
Slide 17: BKI Investment Process
For personal use only BKI Investment Process 16
Slide 18: Stock Selection Criteria
Stock Selection Criteria For personal use only Income - Dividend Yields, Franking, Pay Out Ratios. Principal Activity - Sustainable Business Model, Competitive Advantage. Debt Levels - Gearing Ratios, Net Interest Coverage. Management and Board - Ownership, Board Meeting Attendance, History of creat
Slide 19: Top Investments
Top 20 Investments As at 31stst December 2009 For personal use only 1 New Hope Corporation 11 AGL Energy Limited 2 BHP Billiton Limited 12 Campbell Brothers Limited 3 National Australia Bank 13 Westpac Banking Corporation SPSII 4 Commonwealth Bank 14 ANZ Banking Group Limited 5 Westpac Banking Corp
Slide 20: BHP Billiton Limited
BHP Billiton Limited For personal use only Income - Historical Fully Franked Dividend Yield of 2.7%. Principle Activity - BHP is the worlds largest diversified resources group. Their first class asset portfolio consists of Petroleum, Aluminum, Base Metals, Diamonds & Specialty Products, Stainless St
Slide 21: BHP Billiton price chart
BHP Billiton For personal use only As st As at at 31 31st January January 2010 2010 IPrice Chart BHP Billiton Common Base BHP Billiton V’s S&P/ASX 300 Index Source: BHP Company data, JBWere Market Multiples, IRESS, BKI Investment Company Limited
Slide 22: Commonwealth Bank
Commonwealth Bank For personal use only Income - Historical Fully Franked Dividend Yield of 4.4%. Principle Activity - CBA commenced operations in 1912 and are today Australia’s largest retail bank. CBA offer a full range of Banking Services (Personal, Business, Corporate), Investment and Superannua
Slide 23: Commonwealth Bank price chart
Commonwealth Bank For personal use only As st As at at 31 31st January January 2010 2010 IPrice Chart Commonwealth Bank Common Base Commonwealth Bank V’s S&P/ASX 300 Index Source: CBA Company data, JBWere Market Multiples, IRESS, BKI Investment Company Limited
Slide 24: Telstra Corporation
Telstra Corporation For personal use only Income - Historical Fully Franked Dividend Yield of 8.5%. Principle Activity –TLS’s services include the provision of Telephone Lines, Mobile Services, Fixed Retail Broadband, IP & Data Access, Advertising, Telephone Directories and Pay TV. TLS continues to
Slide 25: Telstra Corporation price chart
Telstra Corporation For personal use only As st As at at 31 31st January January 2010 2010 IPrice Chart Telstra Corporation Common Base Telstra Corporation V’s S&P/ASX 300 Index Source: TLS Company data, JBWere Market Multiples, IRESS, BKI Investment Company Limited
Slide 26: New Hope Corporation
New Hope Corporation For personal use only Income – Historical Fully Franked Dividend Yield of 2.1% (excluding special dividends). Principle Activity - NHC produces thermal coal for the international and domestic markets from 3 mines based in Queensland. NHC also owns coal shipping port operator QBH
Slide 27: New Hope Corporation price chart
New Hope Corporation For personal use only As st As at at 31 31st January January 2010 2010 IPrice Chart New Hope Corporation Common Base New Hope Corporation V’s S&P/ASX 300 Index Source: NHC Company data, JBWere Market Multiples, IRESS, BKI Investment Company Limited
Slide 28: Campbell Brothers
Campbell Brothers For personal use only Income - Historical Fully Franked Dividend Yield of 5.5%. Principle Activity - Campbell Brothers was created in 1863 and developed into an international business focused on providing analytical laboratory & technical services, manufacture & distribution of cle
Slide 29: Campbell Brothers price chart
Campbell Brothers For personal use only 20 st 20 years years to to 31 31st January January 2010 2010 Price Chart Campbell Brothers Common Base Campbell Brothers V’s S&P/ASX 300 Index Source: CPB Company data, JBWere Market Multiples, IRESS, BKI Investment Company Limited
Slide 30: ARB Corporation
ARB Corporation For personal use only Income - Historical Fully Franked Dividend Yield of 3.7% (excluding special dividends). Principle Activity - ARB manufactures, distributes and sells 4WD motor vehicle accessories and light metal engineering works in Australia and over 80 countries worldwide. Mar
Slide 31: ARB Corporation price chart
ARB Corporation For personal use only As st As at at 31 31st January January 2010 2010 IPrice Chart ARB Corporation Common Base ARB Corporation V’s S&P/ASX 300 Index Source: ARB Company data, JBWere Market Multiples, IRESS, BKI Investment Company Limited
Slide 32: BKI Performance
For personal use only BKI Performance 31
Slide 33: Portfolio Performance
Performance For personal use only Portfolio Performance as as at at 31 st 31st January January 2010 2010 Source: BKI Investment Company Limited, IRESS Portfolio Returns are measured by change in NTA and are after all operating expenses, payment of both income and capital gains tax and the reinvestme
Slide 34: Share Price Performance
Performance For personal use only Share Price Performance as as at at 31 st 31st January January 2010 2010 Source: BKI Investment Company Limited, IRESS Total Shareholder Returns include reinvestment of dividends. Past performance is not indicative of future performance. 33
Slide 35: Discount to Pre Tax NTA
Discount to Pre Tax NTA For personal use only BKI represents a good opportunity for investors to acquire assets at a discount to the Pre Tax NTA. BKI offers a competitive MER, strong dividend payout ability, quality portfolio, experienced and conservative investment team. As at 31st January 2010 BKI
Slide 36: For personal use only
For personal use only Office Level 2, 160 Pitt Street Mall, Sydney NSW 2000 Telephone +61 2 9210 7000 Fax +61 2 9210 7099 Web www.bkilimited.com.au ABN 23 106 719 868 35
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