BKI Investment Co. Ltd. · ASX:BKI
BKI Investment — FY2018 Earnings Presentation
24 slides from BKI Investment's earnings presentation, Jul 18, 2018
Slide 1: FY2018 Results Presentation
BKI INVESTMENT COMPANY LIMITED For personal use only FY2018 RESULTS PRESENTATION 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: FY2018 Result Highlights
FY2018 RESULT HIGHLIGHTS For personal use only 2018 2017 Growth Income from Operating Activities* $48.1m $44.5m 8% Net Operating Result* $44.2m $41.8m 6% Earnings Per Share* 7.10cps 6.93cps 3% Total Ordinary Dividend Per Share 7.325cps 7.30cps 1% 3 * Before Special Dividend Income
Slide 4: FY2018 Result Highlights
FY2018 RESULT HIGHLIGHTS For personal use only Income from Operating Activities Net Operating Result Earnings Per Share* $48.1m $44.2m 7.10 cents 8% 6% 3% from FY2017 from FY2017 from FY2017 Management Expense Ratio Total Ordinary Dividend Total Assets 0.16% 7.325cps $1.2b 65% 1% 11% from FY2008 fro
Slide 5: Net Operating Profits
NET OPERATING PROFITS For personal use only Net Operating Result before special investment Net Operating Results revenue increased from $41.8m to $44.2m, $25m while the Net Profit Attributable to Shareholders decreased 1% to $45.0m. $20m Full Year results were mainly driven by higher $15m dividends
Slide 6: Dividend History of BKI
DIVIDEND HISTORY OF BKI For personal use only BKI Dividends Paid to Shareholders A fully franked final Ordinary Dividend of 8.00 3.700cps has been declared, including new shares issued under the recent capital raising. 7.00 6.00 Cents Per Share FY2018 total Ordinary Dividends paid was 5.00 7.325cps,
Slide 7: Final Dividend Key Dates
FINAL DIVIDEND KEY DATES For personal use only The last trading date to be eligible for the Final Ordinary Dividend is Thursday 9th August 2018. Key dates for the Dividend are as follows: Ex‐Dividend Date Friday 10th August 2018 Record Date Monday 13th August 2018 DRP Nomination* Tuesday 14th August
Slide 8: Income Generation
INCOME GENERATION For personal use only Long Term Dividend Income Dividends + Franking Credits received from a $2,000 $10,000 investment in BKI at IPO versus Bank $1,886 $1,800 Quarterly Interest. $1,600 $1,400 An investor who spent the equivalent of $1,200 $10,000 to purchase BKI shares upon listin
Slide 9: Total Shareholder Returns
TOTAL SHAREHOLDER RETURNS For personal use only Total Shareholder Returns BKI’s Total Shareholder Return including 15.0% 14.7% franking credits for the year ended 30 June 11.6% 2018 was 0.1%. 10.7% 10.5% 10.7% 10.3% 10.4% 9.6% 10.0% 7.9% 8.1% BKI’s Net Portfolio Return (after all operating expenses,
Slide 10: BKI Performance Since Listing
BKI PERFORMANCE SINCE LISTING For personal use only Cumulative Value (Total Shareholder Returns) Since listing in 2003 BKI’s investment $5.00 strategy has been, and will continue to be, $4.50 focused on research driven, active equities $4.00 management, investing for the long term, $3.50 in profitab
Slide 11: Positioning BKI for the Future
POSITIONING BKI FOR THE FUTURE For personal use only INCREASING THE PROFILE & BEING RELEVANT ACTIVELY MANAGED PORTFOLIO FOR A LOW FEE BKI is managed by Contact Asset Management AFSL 494045
Slide 12: Benefits of Investing with BKI
BENEFITS OF INVESTING WITH BKI For personal use only Fully Franked Dividends New shares entitled to July 2018 Final Dividend 6.9% Grossed up dividend yield. ASX Listed Investment Company A simple and transparent investment vehicle, 14 year track record. Low Fee Structure Dividend Yield# Management F
Slide 13: Out of Active & Into Passive
OUT OF ACTIVE & INTO PASSIVE For personal use only The global flight from investors into passive Flight to passive funds driven by fees equity funds and out of actively managed funds has continued. The flows out of active funds and into passive funds have been significant (the numbers are trillions)
Slide 14: The Biggest Driver of the Trend... Fees
THE BIGGEST DRIVER OF THE TREND . . . FEES For personal use only Contact’s management fee to BKI is only 0.10%. Focused on keeping costs low 2.00% Management Expense Ratio (MER) of 0.16%. 1.50% Directors and Portfolio Managers are shareholders in BKI. We focus on dividend 1.00% payments – not genera
Slide 15: Positioning the Portfolio
POSITIONING THE PORTFOLIO For personal use only ALWAYS LOOKING FOR OPPORTUNITIES BKI is managed by Contact Asset Management AFSL 494045
Slide 16: BKI Investment Process
BKI INVESTMENT PROCESS For personal use only BKI is focused on investing in stocks using the 5 fundamentals below as part of the stock selection process: 1 Income Dividend Yields, Franking Credits, Pay Out Ratios 2 Principal Activity Sustainable Business Model, Competitive Advantage, Barriers to Ent
Slide 17: Portfolio Positioning
PORTFOLIO POSITIONING For personal use only Investing for the long term in dividend yield, dividend growth and earnings growth. Investment Portfolio Purchases 1. Pendal Group 2. Tabcorp Holdings 3. Macquarie Group 4. BHP Billiton 5. Ramsay HealthCare 6. Amcor Limited 7. APA Group 8. Transurban New P
Slide 18: Portfolio Positioning – Investment Examples
PORTFOLIO POSITIONING – INVESTMENT EXAMPLES For personal use only Goodman Group Evans Dixon Global developer and manager of industrial assets. Financial services business focused on wealth advice, capitals markets and funds management. What we like: What we like: • Seven years of dividend growth. •
Slide 19: Portfolio Positioning – Investment Examples
PORTFOLIO POSITIONING – INVESTMENT EXAMPLES For personal use only Inghams Harvey Norman Vertically integrated poultry producer across Australia and New Multi-national retailer of furniture, bedding, computers, communications Zealand. and consumer electrical products. What we like: What we like: • St
Slide 20: Long Term Investing – Ramsay Healthcare
LONG TERM INVESTING – RAMSAY HEALTHCARE For personal use only Fundamentals have not changed: Strong management team, increasing dividends and industry growth driven by a growing and ageing population. 221 hospitals in Australia, the UK, France, Indonesia and Malaysia $90.0 Revenue: $8.7b $80.0 120 h
Slide 21: Top Investments
TOP 25 INVESTMENTS For personal use only AS AT 30 JUNE 2018 Stock % of Total Portfolio Stock % of Total Portfolio 1 National Australia Bank 6.4% 14 IAG Limited 2.3% 2 Westpac Banking Corp 5.8% 15 TPG Telecom 2.1% 3 Commonwealth Bank 5.7% 16 Telstra Corporation 2.0% 4 Wesfarmers Limited 4.3% 17 ASX L
Slide 22: Portfolio Positioning
PORTFOLIO POSITIONING As at 30 June 2018 For personal use only Bank Hybrids , 1% Real Estate, 2% Health Care, 4% Banks, 22% Materials, 4% Telecommunication Services, 4% Consumer Discretionary, 6% Energy, 6% Utilities, 6% Cash, 16% Consumer Staples, 7% Industrials, 9% 22 Financials, 14%
Slide 23: Main Shareholder Presentations
MAIN SHAREHOLDER PRESENTATIONS For personal use only Sydney Brisbane 11.00am 11.00am Wednesday 18th July 2018 Monday 23rd July 2018 Brickworks Design Studio Brickworks Design Studio 2 Barrack Street, Sydney 27 James Street, Fortitude Valley, Brisbane Melbourne Adelaide 11.00am 11.00am Thursday 19th
Slide 24: BKI Fact Sheet
BKI Fact Sheet For personal use only ASX Code BKI.ASX Investment Manager Listing Date December 2003 Contact Asset Management Mandate Australian Listed Equities Level 1 Investment Sectors Diversified 160 Pitt Street Mall Benchmark S&P/ASX 300 Accumulation Index Sydney NSW 2000 Market Cap $1,106m Rese
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