BKI Investment Co. Ltd. · ASX:BKI
BKI Investment — Shareholder Meeting (October 2016)
29 slides from BKI Investment's shareholder meeting presentation, Oct 11, 2016
Slide 1: FY2016 Annual General Meeting
For personal use only BKI Investment Company Limited FY2016 ANNUAL GENERAL MEETING 1
Slide 2: Chairman's Address
For personal use only BKI Investment Company Limited CHAIRMAN’S ADDRESS 2
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 individual’s financial circumstances or investment objectives. This is general investment ad
Slide 4: Non Executive Directors
Non Executive Directors For personal use only Robert Millner Chairman of the Board Chairman of the Investment Committee Member of the Remuneration Committee David Hall AM Independent Non‐Executive Director Chairman of the Audit Committee Member of the Nomination Committee; Remuneration Committee Ale
Slide 5: Management
Management For personal use only Tom Millner Chief Executive Officer Investment Committee Will Culbert Portfolio Manager Investment Committee Jaime Pinto Company Secretary Corporate Administration Services Auditors Brian Wheeler MGI Sydney 5
Slide 6: BKI key statistics at a glance
12Yr Total Low Market Management For personal use only Shareholder Return# Portfolio Cap Expense Turnover $946m 11.3% pa 7.1% Ratio As at 30 June 2016 Yearly average as at 30 June 2016 14,358 Shareholders 0.16% As at 30 June 2016 Franking Dividend Experience Credits Yield The Board and Management $2
Slide 7: FY2016 Result Highlights
FY2016 Result Highlights For personal use only FY 2016 FY 2015 Growth Income from Operating Activities* $43.8m $44.6m ‐2% Net Operating Result* $41.2m $40.9m +1% Earnings Per Share* 7.16cps 7.40cps ‐3% Total Ordinary Dividends Per Share 7.25cps 7.20cps +1% Management Expense Ratio (MER) 0.16% Down f
Slide 8: Dividend History
Dividend History For personal use only We focus on creating wealth for all shareholders by keeping costs low Growing Fully and increasing fully franked dividends and capital growth. Franked Dividend 7.00 0.50 1.00 6.00 1.00 1.00 BKI’s pay out 5.00 ratio is typically 4.00 7.25 7.20 6.95 6.65 6.40 6.0
Slide 9: Income Generation
Income Generation For personal use only Dividends + Franking Credits received from a $10,000 investment in BKI at inception V’s Bank Quarterly Interest. $1,800 $1,726 $1,600 $1,400 Highlights the $1,200 $1,000 opportunity of $800 receiving a fully $600 franked dividend in $400 $200 $411 a falling in
Slide 10: Purchases and Sales
Purchases and Sales For personal use only Net asset values of the acquired unlisted investment companies. During FY2016 BKI Investment Company completed the acquisition of three unlisted investment companies: 1. 6 August 2015 Net assets of approximately $17m 2. 5 February 2016 Net assets of approxim
Slide 11: Contact Asset Management
For personal use only BKI Investment Company Limited CONTACT ASSET MANAGEMENT 11
Slide 12: Contact / BKI Structure
For personal use only Contact / BKI Structure MANAGEMENT Will Culbert DIRECTORS Rob Millner David Hall AM Tom Millner Alex Payne WHSP BKI’s portfolio will be managed by Contact Asset Management Ian Huntley Pty Ltd (“Contact”) from 1st November 2016. Contact is fully owned by Tom Millner, Will Culber
Slide 13: Benefits to BKI
For personal use only Benefits to BKI This new structure will provide BKI Shareholders with a number of key benefits including: • Expected to be EPS accretive for BKI shareholders; • Protecting BKI’s competitive Management Expense Ratio (“MER”); • Flat investment management fee to Contact of 0.10% o
Slide 14: CEO Address
For personal use only BKI Investment Company Limited CEO ADDRESS 14
Slide 15: Net Operating Result FY2004 – FY2016
Net Operating Result For personal use only FY2004 – FY2016 $45 $40.9 $41.2 $40 $35.9 $35 $29.9 $30 $27.7 $25.3 $ Millions $25 $22.4 $20.7 $20 $18.3 $15 $12.5 $10.3 $10.1 $10 $5 $3.5 $0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 15
Slide 16: Total Shareholder Returns Including Franking Credits
Total Shareholder Returns For personal use only Including Franking Credits Total Shareholder As at 30 June 2016 Returns including the 15.0% benefit of franking 13.0% 13.6% credits passed on from 12.5% 10.1% 10.5% 11.3% 9.6% BKI to shareholders. 10.0% 9.3% 9.0% 9.0% 7.5% 6.5% 5.0% BKI has ample frank
Slide 17: Total Shareholder Returns
Total Shareholder Returns For personal use only $1.90 $1.80 40% $1.70 $1.60 30% Notable Underweight 1 Year Dividend $1.50 Positions Return Yield $1.40 20% $1.30 Resolute Mining 623.6% 0.75% $1.20 10% Whitehaven Coal 152.5% 0.00% $1.10 $1.00 0% Bluescope Steel 103.0% 1.12% $0.90 Dominos Pizza 79.5% 1
Slide 18: Share Purchase Plan
Share Purchase Plan For personal use only BKI Raised $28.2m under the SPP, which closed on Thursday 28 April 2016. SPP Shares were issued at $1.55 per share. New shares issued were entitled to the Fully Franked Final dividend of 3.65cps. 18
Slide 19: Stock Selection Process
Stock selection 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 i
Slide 20: Purchases and Sales
Purchases and Sales For personal use only Main purchases and sales from the Investment Portfolio, excludes any portfolio movements from the acquired unlisted investment companies. Main Purchases Main Sales Challenger Limited Bendigo & Adelaide Bank Commonwealth Bank BHP Billiton Low Portfolio Turnov
Slide 21: BKI Portfolio – Top Shareholdings as at June 2016
BKI Portfolio – Top 25 Shareholdings as at 30 June 2016 For personal use only Stock % of Total Stock % of Total Portfolio Portfolio 1 Commonwealth Bank 8.8% 14 Ramsay HealthCare 2.0% 2 National Australia Bank 7.4% 15 Invocare Limited 1.9% 3 Westpac Bank 7.2% 16 IAG Limited 1.9% 4 TPG Telecom 5.7% 17
Slide 22: BKI Portfolio – Exposure by Sector
BKI Portfolio – Exposure by Sector For personal use only High Conviction Utilities 6.3% Real Estate 0.4% Healthcare 6.7% Benchmark Unaware Resources 6.9% Financials 39.4% BKI’s long term strategy of investing in Cash 7.8% dividend paying stocks means the portfolio is not aligned with an index. Retai
Slide 23: For personal use only
Weighting by Sector Income Received by Sector Weighting by Sector Income Received by Sector For personal use only Financials Financials Industrial Industrial Telco Telco Retail Retail Cash 39.4% 52.6% Cash 11.2% 7.8% Resources Resources Healthcare Healthcare Utilities Utilities Real Estate Real Esta
Slide 24: FY2017 Update
For personal use only BKI Investment Company Limited FY2017 UPDATE 24
Slide 25: Market Snapshot
Market Snapshot For personal use only S&P/ASX 300 Acc Index S&P/ASX 300 Index ‐ PE Multiple (X) 55,000 20.0 50,000 45,000 17.5 40,000 15.0 35,000 30,000 12.5 25,000 10.0 20,000 7.5 15,000 10,000 5.0 S&P/ASX 300 Acc Index ‐ Dividend Yield Australin Dollar ‐ $USD 8.0% 1.20 1.10 7.0% 1.00 6.0% 0.90 5.0
Slide 26: Purchases and Sales
Purchases and Sales For personal use only Main purchases and sales from the Investment Portfolio. Main Purchases Main Sales Flight Centre Fairfax Limited BHP Billiton Telstra Corporation Woodside Petroleum Sonic Healthcare Sydney Airports Challenger Limited Transurban Group IOOF Limited Equities Tru
Slide 27: BKI Portfolio – Top Shareholdings as at September 2016
BKI Portfolio – Top 25 Shareholdings as at 30 September 2016 For personal use only Stock % of Total Stock % of Total Portfolio Portfolio 1 Commonwealth Bank 8.5% 14 Invocare Limited 2.0% 2 National Australia Bank 8.0% 15 Sonic Healthcare 1.9% 3 Westpac Bank 7.1% 16 ASX Limited 1.9% 4 Telstra Corpora
Slide 28: FY2017 Update
FY2017 Update* For personal use only Income from Operating Activities (before Special Dividend Income) ‐ for FY2017 is expected to be in‐line with last year. Special Dividend Income ‐ BKI has participated in the recent Telstra Buy‐Back and expects to receive ~$3.9m in Special Dividend Income in
Slide 29: www.bkilimited.com.au
For personal use only www.bkilimited.com.au 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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