BKI Investment Co. Ltd. · ASX:BKI
BKI Investment — H1 2011 Earnings Presentation
20 slides from BKI Investment's earnings presentation, Jan 31, 2011
Slide 1: Presentation to Shareholders Half Year 2011
For personal use only Presentation to Shareholders Half Year 2011 1
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 individuals financial circumstances or investment objectives. This is general investment adv
Slide 3: Background
Background For personal use only 2008 BKI becomes 1980’s internally 2004 managed BKW BKI merges Establishes Share with PSI BKI takes Portfolio over HIC 2003 2007 2009 BKI acquires BKI BKI SPP BKW’s Share Renounceable Raises Portfolio Rights Issue $24.1m raises $57.0m BKI Lists on the ASX BKI Placeme
Slide 4: Group Profile and Investment Strategy
Group Profile and Investment Strategy For personal use only BKI’s investment portfolio has been built on a philosophy of long term investment with a focus on Australian equities. BKI primarily seeks to invest in well-managed businesses with a profitable history and with the expectation of sound divi
Slide 5: Board and Management
Board and Management For personal use only Directors Robert Millner Chairman of Directors David Hall Director, Chairman of Audit Committee Alexander Payne Director, Chairman of Remuneration Committee Ian Huntley Director Chief Executive Officer Investment Committee Thomas Millner Robert Millner Alex
Slide 6: Benefits of Investing in BKI
Benefits of Investing in BKI For personal use only Dividends - Strong dividend payout ability with abundant franking credits (5.0% fully franked dividend yield, grossed up yield 7.1%)*. Diversification - Access to a high quality diversified investment portfolio through BKI shares listed on the ASX (
Slide 7: Revenue Performance
Revenue Performance 25,000 For personal use only 20,000 15,000 10,000 5,000 0 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 1H 04 1H 05 1H 06 1H 07 1H 08 1H 09 1H 10 1H 11 Ordinary Dividends + Interest Special Dividends Strong growth in dividend income: • Ordinary dividend and distribution income
Slide 8: Operating Profits
Operating Profits 15,000 For personal use only 12,500 10,000 7,500 5,000 2,500 0 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 1H 04 1H 05 1H 06 1H 07 1H 08 1H 09 1H 10 1H 11 Operating Profit continues to increase: • Net operating profit before special dividends up 20.0% to $12.8m. • This is the p
Slide 9: Earnings Per Share
Earnings Per Share $0.04 For personal use only $0.03 $0.02 $0.01 $0.00 1H 04 1H 05 1H 06 1H 07 1H 08 1H 09 1H 10 1H 11 EPS returning to normal levels: • Basic Earnings Per Share before special dividends was up 16.0% to 3.05cps. 9
Slide 10: Dividends Paid
Dividends Paid For personal use only $0.07 $0.06 $0.05 $0.04 $0.03 $0.02 $0.01 $0.00 2004 2005 2006 2007 2008 2009 2010 1H 2011 INTERIM FINAL SPECIAL Strong dividend payout ability: • Interim Dividend is 3.0cps, fully franked (ordinary dividend up 20% on the previous corresponding period). • As at 3
Slide 11: Discount to Pre Tax NTA
Discount to Pre Tax NTA $1.80 30.0% For personal use only $1.70 $1.60 20.0% $1.50 $1.40 $1.30 10.0% $1.20 $1.10 $1.00 0.0% $0.90 $0.80 -10.0% $0.70 $0.60 $0.50 -20.0% Prem/Disc % Pre Tax NTA BKI Share Price Investment Opportunity: • As at 31 December 2010, BKI’s share price was trading at a 12% disc
Slide 12: Management Expense Ratio
Management Expense Ratio 0.80% For personal use only 0.69% 0.71% 0.70% 0.56% 0.60% 0.46% 0.46% 0.50% 0.40% 0.31% 0.30% 0.19% 0.20% 0.18% 0.10% 2004 2005 2006 2007 2008 2009 2010 1H 2011 Low cost investment: • Operating Expenses for half year 2011 were $0.5m. • BKI’s Management Expense Ratio (MER) ha
Slide 13: Portfolio Performance
Portfolio Performance as at 31 December 2010 For personal use only 20.0% BKI Portfolio Performance S&P/ASX 300 ACC INDEX 15.0% 13.3% 10.0% 9.2% 9.9% 10.0% 5.0% 5.0% 4.4% 2.2% 1.9% 0.0% -0.1% -5.0% -5.0% -10.0% 6 Mths 1 Year 3 Years (pa) 5 Years (pa) 7 Years (pa) Source: BKI Investment Company Limite
Slide 14: Share Price Performance
Share Price Performance as at 31 December 2010 For personal use only 20.0% BKI Total Shareholder Returns S&P/ASX 300 ACC INDEX 15.0% 12.7% 13.3% 9.9% 10.0% 8.3% 5.1% 4.4% 5.0% 2.4% 1.9% 1.3% 0.0% -5.0% -5.0% -10.0% 6 Mths 1 Year 3 Years (pa) 5 Years (pa) 7 Years (pa) 14 Source: BKI Investment Compan
Slide 15: Portfolio Movements
Portfolio Movements Since 30 June 2010 For personal use only Approx $20m was invested into the market. Major investments included: Milton Corporation Telstra Corporation ANZ Banking Group National Australia Bank BHP Billiton Metcash Limited Coca-Cola Amatil Wesfarmers Limited Westpac Banking Corpora
Slide 16: Top Investments
Top 20 Investments As at 31 December 2010 For personal use only 1 New Hope Corporation 11 Campbell Brothers Limited 2 BHP Billiton Limited 12 ANZ Banking Group 3 National Australia Bank 13 QBE Insurance Group 4 Commonwealth Bank 14 Metcash Limited 5 Westpac Banking Corp 15 Westpac Pref Shares 6 Wesf
Slide 17: Market Outlook
Market Outlook For personal use only • Mixed economic data is expected to continue, leading to a disparity in the levels of offshore economic activity and equity markets. • High levels of sovereign debt have impacted further members of the European Union. However, signs of a recovery from key Europe
Slide 18: Resources V's Industrials
Resources V’s Industrials As at 31 December 2010 For personal use only 1 year returns • S&P/ASX300 Industrials Acc Index -2.6% • S&P/ASX300 Resources Acc Index 12.3% 2 year returns (Chart A) • S&P/ASX300 Industrials Acc Index 30.7% • S&P/ASX300 Resources Acc Index 64.7% Chart A - 2 Year Common Base
Slide 19: New Hope Corporation
New Hope Corporation For personal use only • New Hope Corporation (NHC) has confirmed that their major mining operations (New Acland) has not suffered flooding damage and is back in operation. QBH which operates the coal terminal at the Port of Brisbane has reported that its operations did not suffe
Slide 20: Questions
For personal use only Questions Office Level 2, 160 Pitt Street Mall, Sydney NSW 2000 Telephone +61 2 9210 7000 Fax +61 2 9210 7099 Web www.bkilimited.com.au ABN 23 106 719 868 20
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