BKI Investment Co. Ltd. · ASX:BKI
BKI Investment — H1 2015 Earnings Presentation
17 slides from BKI Investment's earnings presentation, Jan 21, 2015
Slide 1: 1st Half FY2015 Result Presentation
For personal use only 1st Half FY2015 Result Presentation January 2015
Slide 2: 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 individual’s financial circumstances or investment objectives. This is general investment ad
Slide 3: BKI Overview
BKI Overview For personal use only • BKI is a research driven, active equities manager investing for the longg term in pprofitable,, high g yyielding, g, well managedg companies. • We are a closed end company and do not charge external pportfolio management g or pperformance fees. • Our aim is to cr
Slide 4: Why we do what we do
Why we do what we do For personal use only The Board and Management are shareholders in BKI, BKI that that’ss why we: 1. Don’t charge external portfolio management or performance fees. 2 2. I Invest t for f the th long l t term i profitable, in fit bl high hi h yielding, i ldi wellll managedd compan
Slide 5: BKI Overview - Why LIC's?
BKI Overview - Why LIC’s? For personal use only L Cost Low C t MER off 0.16%. 0 16% No N external t l managementt or performance f f fees Tax Effective All dividends have been fully franked Capital Management 5 Fully Franked Special Dividends distributed since listing in 2003. Performance Delivered
Slide 6: Results Highlights
Results Highlights For personal use only 1H 2015 1H 2014 Growth Ordinary Dividend Income $20.2m $18.2m 11% Net Operating Result* $20.8m $18.0m 16% Earnings Per Share* 3.80cps 3.72cps 2% Total Ordinary Dividends Per Share 3.55cps 3.45cps 3% MER 0.16% 0.17% -4% 4% Portfolio Valuation $907m $851m 7% *
Slide 7: Management Expense Ratio
Management Expense Ratio For personal use only BKI iis iinternally t ll managedd and d does not charge Shareholders an external management fee or performance fees. fees BKI Internally Managed www.bkilimited.com.au 7
Slide 8: The Power of a Low Cost LIC
The Power of a Low Cost LIC* For personal use only Over 20 yyears,, administration fees of 2.0% can dilute the total return by more than 30%! $800,000 $21,662 0 16%pa MER 0.16%pa $700,000 $126,091 1.0%pa MER $232,127 2.0%pa MER $600,000 $500,000 $400,000 $737,852 $300 000 $300,000 $633 424 $633,424
Slide 9: Total Shareholder Returns
Total Shareholder Returns* For personal use only Total Shareholder Returns 18.9% including the benefit of franking 20.0% credits passed on from 16 6% 16.6% BKI to Shareholders 15.0% 11.9% 11 2% 11.2% 10.0% 9.3% 9.1% 8.3% 7.2% 6.8% 5.0% 3.9% 0.0% 1 Year 3 Yrs pa 5 Yrs pa 7 Yrs pa 10 Yrs pa BKI TTotal
Slide 10: Growing Income Stream
Growing Income Stream For personal use only Dividends + Franking Credits received from a $100,000 investment in BKI at inception versus Bank Quarterly Interest. Highlights the opportunity of receiving a fully franked dividend in a falling interest rate environment. 16,000 BKI Dividend BKI Franking g
Slide 11: Top Investments – December 2014
Top 25 Investments – December 2014 Top 25 Shareholdings 1 Commonwealth Bank 9.5% 2 National Australia Bank 8.7% A att 31 December As D b 2014 3 Westpac Banking Corporation 7.6% For personal use only 4 Telstra Corporation 5.7% 5 BHP Billiton Limited 4.7% Diversification 6 ANZ Bank B k Limited Li it d
Slide 12: Sector Over/Underweights
Sector Over/Underweights For personal use only 6.0% 5.2% BKI Portfolio: Active Weight by Sector 4.0% 3.6% 3.6% 3.6% 2.0% 1.1% 0.9% 00.8% 8% 0 5% 0.5% 0 2% 0.2% 0.0% -2.0% -0.8% -0.9% -4.0% -6.0% -8.0% 6 7% -6.7% -10.0% -12.0% 12 0% -10.9% -10 9% 12
Slide 13: Portfolio Movements
Portfolio Movements For personal use only Finance • Technology and the switch to on-line • Market domination • Highly regulated Healthcare • Aging and growing population • Hospital expenditure; playing catch up • Technology improvements 13
Slide 14: Portfolio Movements
Portfolio Movements For personal use only Energy • Global shortage of cheap reliable energy • Population growth and further urbanization • “Free” Free Cash Flow verses “Operating” Operating Cash Flow Infrastructure • Long term passive investments • Gas Distribution • Road Networks and Freight Distri
Slide 15: Experience and Alignment as at December 2014
Experience and Alignment as at 31 December 2014 For personal use only Investment Tenure Equity T Team Member M b Q lifi ti Qualifications P iti Position Experience With BKI Ownership 1 Robert Millner FAICD Chairman 31 yrs 11 yrs 8,478,120 Investment Committee David Hall, AM FCA, FAICD Non Executive
Slide 16: BKI Online
For personal use only www.bkilimited.com.au BKI Online Sign g upp online to receive news and information about your company via email. Subscribe to: • NTA+Monthly Reports • Quarterly Reports • Presentations to Shareholders • Annual Report • Results Announcements • Dividend Announcements Simply visit
Slide 17: BKI Fact Sheet
17 BKI Fact Sheet www.bkilimited.com.au For personal use only ASX Code BKI.ASX Research Coverage g Morningstar g Listing Date December 2003 Morgan Stanley Mandate Aust Listed Equities Bell Potter Investment Sectors Diversified Evans and Partners S&P/ASX 300 Baillieu/Holst Benchmark Acc Index Approve
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