BKI Investment Co. Ltd. · ASX:BKI
BKI Investment — FY2014 Earnings Presentation
25 slides from BKI Investment's earnings presentation, Jul 23, 2014
Slide 1: Full Year Result Presentation 30 June 2014
For personal use only Full Year Result Presentation 30 June 2014
Slide 2: About BKI: Business Overview
About BKI For personal use only Business Overview BKI is a research driven, active equities manager investing for the long term in profitable, high yielding, well managed companies. We are a closed end company and do not charge external portfolio management or performance fees. Our aim is to create
Slide 3: About BKI: Listed Investment Company
About BKI For personal use only Listed Investment Company Performance Delivered sound Total Shareholder Returns and dividend growth. Capital Management 5 Fully Franked Special Dividends distributed since listing in 2003. Tax Effective All dividends have been fully franked Simplicity Single sharehold
Slide 4: Results Highlights
For personal use only Results Highlights
Slide 5: BKI Result Highlights
BKI Result Highlights For personal use only 2014 2013 Growth Ordinary Dividend Income $38.6m $32.0m 21% Net Operating Result* $35.9m $29.9m 20% Earnings Per Share* 7.15cps 6.81cps 5% Total Ordinary Dividends Per Share 6.95cps 6.65cps 5% MER 0.17% 0.19% -11% Portfolio Valuation $853m $676m 26% * Excl
Slide 6: Earnings Per Share, Dividends, Net Operating Result and Portfolio Valuation
Earnings Per Share Ordinary and Special Dividends 8.00 8.0 Ordinary Dividends Special Dividends 7.00 7.0 0.5 For personal use only 1 6.00 6.0 1 Cents Per Share Cents Per Share 1 5.00 5.0 4.00 4.0 6.65 6.95 3.00 6.40 3.0 6.00 6.00 6.00 5.30 5.25 5.00 2.00 2.0 4.30 1.00 1.0 2.00 0.00 0.0 2004 2005 200
Slide 7: Management Expense Ratio
Management Expense Ratio For personal use only 0.80% BKI is internally managed and does not charge Shareholders an external 0.71% management fee or performance fees. 0.69% 0.70% 0.60% 0.56% 0.50% 0.46% 0.46% 0.40% 0.31% BKI Internally Managed 0.30% 0.20% 0.19% 0.18% 0.18% 0.19% 0.17% 0.10% 2004 2005
Slide 8: Performance
For personal use only Performance
Slide 9: Total Shareholder Returns as at June 2014
Total Shareholder Returns as at 30 June 2014 For personal use only Total Shareholder Returns exclude the benefit of franking credits being passed on from BKI 25.0% to Shareholders. 21.0% 20.0% 17.3% 16.7% 15.1% 15.0% 11.0% 10.5% 9.9% 10.0% 8.9% 6.4% 5.0% 2.1% 0.0% 1 Year 3 Yrs 5 Yrs 7 Yrs 10 Yrs BKI
Slide 10: Premium/Discount Analysis as at June 2014
Premium/Discount Analysis as at 30 June 2014 For personal use only 35.0% $1.70 $1.60 25.0% $1.50 $1.40 $1.30 15.0% $1.20 $1.10 5.0% $1.00 $0.90 -5.0% $0.80 $0.70 -15.0% $0.60 $0.50 -25.0% Prem/Disc % Pre Tax NTA BKI Share Price www.bkilimited.com.au 10
Slide 11: Yield for all Seasons
Yield for all Seasons Dividends + Franking Credits received from a $100,000 investment in BKI at Australian Dollars use only inception V’s Bank Quarterly Interest. Highlights the opportunity of receiving a fully franked dividend in a falling interest rate environment. 14,000 12,000 10,000 For $perso
Slide 12: Investment Portfolio
For personal use only Investment Portfolio
Slide 13: Investment Process
Investment Process For personal use only BKI is a research driven, active equities manager investing for the long term in profitable, high yielding, well managed companies. Stock selection is bottom up, focusing on the merits of individual companies rather than market and economic trends. BKI is ben
Slide 14: BKI Top Investments – June 2014
BKI Top 25 Investments – June 2014 1 Commonwealth Bank 9.5% 2 National Australia Bank 8.9% 3 Westpac Banking Corporation 8.1% For personal use only Top 25 Shareholdings 4 5 BHP Billiton Telstra Corporation 6.0% 5.3% As at 30 June 2014 6 ANZ Banking Corporation 4.8% 7 New Hope Corporation 4.6% 8 Wesf
Slide 15: Sector Over/Underweights
Sector Over/Underweights For personal use only BKI Portfolio: Active Weight by Sector 8.0% 5.7% 5.7% 6.0% 4.0% 3.4% 2.8% 2.0% 1.5% 1.3% 0.7% 0.4% 0.0% -2.0% -0.9% -1.8% -2.0% -4.0% -6.0% -8.0% -7.0% -10.0% -9.8% -12.0% www.bkilimited.com.au 15
Slide 16: Portfolio Movements: Major Investments
Portfolio Movements For personal use only Major Investments FY15 Forecast FY15 Forecast FY15 Forecast Dividend Yield Franking EPS Growth PE Multiple ANZ Banking Corporation 5.6% 100% 4.0% 12.5X Westpac Banking Corp 5.7% 100% 3.0% 13.5X Primary Health Care 4.8% 100% 12.0% 12.6X APA Group 5.4% 0% 11.0
Slide 17: Portfolio Movements: Major Divestments
Portfolio Movements For personal use only Major Divestments FY15 Forecast FY15 Forecast FY15 Forecast Dividend Yield Franking EPS Growth PE Multiple QBE Insurance Group 5.1% 100% 17.0% 9.8X Metcash Limited 5.0% 100% -37.0% 18.0X Tabcorp Holdings Limited 4.5% 100% 3.0% 17.8X Fleetwood Corporation 2.7
Slide 18: What do you think about the Banks?
What do you think about the Banks?” BKI’s “Big 4” portfolio weighting is approximately 32%. We remain comfortable with BKI’s Portfolio’s For personal use only exposure to the banks with all four offering the investment characteristics that BKI values. We expect that banks will continue to provide th
Slide 19: Share Purchase Plan
For personal use only Share Purchase Plan
Slide 20: Share Purchase Plan
Share Purchase Plan Shareholders have been offered the opportunity to participate in BKI's Share For personal use only Purchase Plan (SPP). Eligible shareholders will be offered the opportunity to acquire either: $2,500; $5,000; $7,500; $10,000; $12,500; or $15,000 worth of shares without paying a
Slide 21: Share Purchase Plan timetable
Share Purchase Plan For personal use only Event Date Announcement of SPP 3 July 2014 Release of June NTA 3 July 2014 Opening Date of SPP 10 July 2014 Release of SPP Offer Booklet 10 July 2014 BKI Full Year Results Announcement 23 July 2014 Closing Date of SPP 31 July 2014 Issue of New Shares 8 Augus
Slide 22: Appendix
For personal use only Appendix
Slide 23: Experience and Alignment as at March 2014
Experience and Alignment as at 31 March 2014 For personal use only Investment Tenure Equity Team Member Qualifications Position Experience With BKI Ownership 1 Robert Millner FAICD Chairman 30 yrs 10 yrs 8,156,936 Investment Committee David Hall, AM FCA, FAICD Non Executive Director 34 yrs 10 yrs 26
Slide 24: BKI Online
www.bkilimited.com.au For personal use only BKI Online Sign up 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 ww
Slide 25: BKI Fact Sheet
25 BKI Fact Sheet www.bkilimited.com.au For personal use only ASX Code BKI.ASX Research Coverage Morningstar 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 Approved Pr
BKI Investment Company — FY2014 Earnings Presentation on 6ix