BKI Investment Co. Ltd. · ASX:BKI
BKI Investment — H1 2017 Earnings Presentation
20 slides from BKI Investment's earnings presentation, Jan 18, 2017
Slide 1: 1H2017 Financial Results Presentation
For personal use only BKI Investment Company Limited 1H2017 FINANCIAL RESULTS PRESENTATION BKI is managed by Contact Asset Management 1
Slide 2: Disclaimer
Disclaimer For personal use only 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: Business Overview
Business Overview For personal use only BKI is a research driven, active equities manager investing for the long term in profitable, high yielding, well managed companies. BKI is a closed end company listed on the ASX (BKI.ASX) and does not charge Shareholders large management fees or any perfor
Slide 4: 1H2017 Result Highlights
1H2017 Result Highlights For personal use only 1H 2017 1H 2016 Growth Net Operating Result* $21.2m $21.4m -1% Net Profit Attributable to Shareholders $25.0m $22.1m 13% Earnings Per Share* 3.52cps 3.78cps -7% Earnings Per Share including Specials 4.17cps 3.91cps 7% Interim Ordinary Dividend Per Share
Slide 5: For personal use only
13Yr Total Low Market Management Shareholder Return# Portfolio Cap Expense For personal use only Turnover $1.0bn 11.0% pa 7.1% As at 13 January 2017 Ratio As at 31 December 2016 Yearly average as at 30 June 2016 14,500 0.14% Shareholders As at 31 December 2016 Franking Dividend Experience Credits Yi
Slide 6: External Management Agreement
External Management Agreement For personal use only Contact Asset Management has been established by Tom Millner, Will Culbert and Soul Pattinson. The vision of Contact is to act as an External Manager of LIC’s across various asset classes. We have preserved BKI’s low MER by locking in a long
Slide 7: Dividend History
Dividend History We focus on creating wealth for all shareholders by keeping costs low For personal use only and increasing fully franked dividends and capital growth. Growing Fully Franked Dividend Ordinary Dividends Special Dividends 0.50 1.00 1.00 1.00 Cents Per Share BKI’s pay out 7.25 7.20 6.95
Slide 8: Dividend History
Dividend History Dividends + Franking Credits received from a $10,000 investment in BKI at inception V’s Bank Quarterly Interest. For personal use only Interest Total Dividend Income (including Franking Credits) $1,800 $1,600 $1,770 Highlights the $1,400 opportunity of $1,200 $1,000 receiving a full
Slide 9: Interim 2017 Fully Franked Dividend – Key Dates
Interim 2017 Fully Franked Dividend – Key Dates For personal use only Event Date Last trading date to be eligible for the Interim 2017 Dividend Thursday 9 February 2017 Ex-Dividend Date Friday 10 February 2017 Record Date Monday 13 February 2017 DRP Nomination Tuesday 14 February 2017 Payment Date M
Slide 10: BKI = Low Cost
BKI = Low Cost BKI’s Board & Management are shareholders in BKI. For personal use only We invest for the long term and do not charge excessive external portfolio management or performance fees. The thicker 0.80% 0.70% the carpet… 0.60% 0.50% The thinner 0.40% the dividend! 0.30% 0.14% 0.20% 0.10% Lo
Slide 11: Total Shareholder Returns
Total Shareholder Returns Total Shareholder Including Franking Credits For personal use only As at 31 December 2016 Returns including the benefit of franking 20.0% credits passed on from BKI to shareholders. 15.0% 13.4% 14.3% 13.4% 10.7% 10.6% 10.0% 9.1% 8.1% 8.5% 7.6% 7.8% BKI has ample franking 6.
Slide 12: Capital Appreciation
Capital Appreciation Capital appreciation of BKI NTA per share since IPO As at 31 December 2016. For personal use only Performance of BKI NTA per share including dividends and franking credits $4.00 $3.76 $3.50 $3.00 Highlights the $2.50 benefit of investing $2.00 for the long term. $1.50 $1.00 $0.5
Slide 13: Portfolio
For personal use only BKI Investment Company Limited PORTFOLIO 13
Slide 14: BKI Portfolio – Top Shareholdings as at December 2016
BKI Portfolio – Top 25 Shareholdings as at 31 December 2016 For personal use only % of Total % of Total Stock Stock Portfolio Portfolio 1 Commonwealth Bank 9.5% 14 Macquarie Group 2.1% 2 National Australia Bank 8.5% 15 IAG Limited 1.9% 3 Westpac Banking Corp 7.6% 16 Invocare Limited 1.9% 4 ANZ Banki
Slide 15: Purchases and Sales
Purchases and Sales Main purchases and sales from the Investment Portfolio. For personal use only Net Investment for 1H2017 was $51m - excludes any portfolio movements from the acquired unlisted investment company. Main Purchases Main Sales Flight Centre Crown Resorts Sydney Airports Telstra Corpo
Slide 16: Positioning of the BKI Portfolio
Positioning of the BKI Portfolio Australian Equity Market – Price to Earnings Multiple by Sector, Last 3 Years For personal use only 45.0x 40.0x 35.0x 30.0x 25.0x 20.0x 15.0x 10.0x 5.0x Jun 14 Jun 15 Jun 16 Dec 13 Sep 14 Dec 14 Sep 15 Dec 15 Sep 16 Dec 16 Mar 14 Mar 15 Mar 16 Mar 17 Banks Healthcare
Slide 17: Positioning of the BKI Portfolio
Positioning of the BKI Portfolio Resources Outperformance of S&P/ASX200 Index Financials and Resources – Growth Versus Income For personal use only The strength of Metals and Mining stocks was significant during 2016, with the S&P/ASX Resources Index generating a return of 42.4% and detracting sig
Slide 18: Positioning of the BKI Portfolio
Positioning of the BKI Portfolio RBA Cash Rate – Last 15 Years Rates and Currency For personal use only 8.0 7.0 Australia’s historically low interest rate environment has continued 6.0 with the RBA leaving rates on hold in early December at 1.50%. 5.0 There is still little incentive for investor
Slide 19: Positioning of the BKI Portfolio
Positioning of the BKI Portfolio Infrastructure For personal use only Australia is undergoing a significant transformation thanks to federal and state government spend on major infrastructure projects. The beneficiaries of this spend is captured through long term passive infrastructure investmen
Slide 20: www.bkilimited.com.au
www.bkilimited.com.au For personal use only Our aim is to BKI Online create wealth Sign up online to receive news and information about your company via for BKI email. shareholders, Subscribe to: • NTA+Monthly Reports • Quarterly Reports through an • Presentations to Shareholders • Annual Report inc
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