BKI Investment Co. Ltd. · ASX:BKI
BKI Investment — FY2024 Earnings Presentation
33 slides from BKI Investment's earnings presentation, Jul 23, 2024
Slide 1: BKI Investment Company Results Presentation
For personal use only BKI Investment Company Results Presentation For the year ended 30 June 2024
Slide 2: Disclaimer
Disclaimer For personal use only This material has been prepared by Contact Asset Management on behalf of 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 obj
Slide 3: Contents
Contents For personal use only 1. Shareholder Results Briefing Timetable 2. Full Year Results Summary 3. Performance 4. Celebrating 20 Years 5. Portfolio Positioning 6. Addressing the Discount to NTA 7. Equity Market Overview 3
Slide 4: Shareholder Results Briefing Timetable
Shareholder Results Briefing Timetable For personal use only Morning tea will be provided prior to the meetings. We look forward to your attendance; to register for the briefings please RSVP via email to info@bkilimited.com.au Sydney Date Tuesday 23 July 2024 Venue Brickworks Design Studio 2 Barrack
Slide 5: Full Year Results Summary
For personal use only Full Year Results Summary Results Presentation For the year ended 30 June 2024
Slide 6: 2024 Full Year Results
2024 Full Year Results For the full year ended 30 June 2024 For personal use only FY2024 FY2023 Movement Result excluding special investment revenue ($m) ($m) (%) Ordinary revenue from Investment Portfolio $64.0 $71.1 -10% Total Revenue - Ordinary $68.0 $72.8 -7% Operating Result (before tax and spe
Slide 7: Net Operating Result and Earnings Per Share
2024 Half Year Results Following the record result announced in FY2023, BKI has delivered a solid EPS and Net Operating For personal use only Result during FY2024. Full Year Net Operating Result Full Year Earnings Per Share (before special dividends) (before special dividends) $80m 8.00 $70m 7.00 $6
Slide 8: Years of Strong Dividends
20 Years of Strong Dividends BKI has a strong history of paying fully franked dividends and offering an attractive yield. For personal use only 5.00 BKI Dividend History – 20 Years FY2024 Full Year 4.00 Dividends of 3.00 7.85cps up 2% on FY2023 2.00 1.00 0.00 Ordinary Dividends per Share Special Div
Slide 9: Performance
For personal use only Performance Results Presentation For the year ended 30 June 2024
Slide 10: Performance - Total Shareholder Return (TSR)
Performance - Total Shareholder Return (TSR) As at 30 June 2024 For personal use only Total Shareholder Returns (TSR) 15.0% 13.3% 10.4% 10.5% 9.8% 10.2% 10.0% 9.5% 8.6% 8.0% 8.1% 7.5% 6.9% 5.0% 3.8% 0.0% 1 Year 3 Yrs pa 5 Yrs pa 10 Yrs pa 15 Yrs pa 20 Yrs pa BKI Total Shareholder Returns - 100% Fran
Slide 11: Performance – Portfolio Return
Performance – Portfolio Return As at 30 June 2024 For personal use only BKI Portfolio Return 15.0% 13.3% 11.4% 10.5% 10.2% 9.8% 10.0% 9.2% 9.5% 9.4% 8.3% 8.6% 7.9% 7.5% 5.0% 0.0% 1 Year 3 Yrs pa 5 Yrs pa 10 Yrs pa 15 Yrs pa 20 Yrs pa BKI Portfolio Performance Including Franking Credits S&P/ASX 300 A
Slide 12: Celebrating 20 Years
For personal use only Celebrating 20 Years Results Presentation For the year ended 30 June 2024
Slide 13: Celebrating 20 Years
Celebrating 20 Years As at 31 December 2023 For personal use only BKI Celebrated 20 year in December 2023 During BKI’s 20 years, the Company realised some notable achievements. • The number of BKI shareholders has grown 119% from 7,832 in 2003 to 17,170 in 2023. • Total Assets have grown from $171.2
Slide 14: Investor Focused: Management Expense Ratio
Investor Focused As at 30 June 2024 For personal use only BKI has an investor focused approach. Higher fees don’t automatically translate into better returns. History of BKI’s Management Expense Ratio (MER) Cumulative Share Price Returns We know that small fees have positive impacts on Assuming all
Slide 15: Investor Focused: Shareholder Communication
Investor Focused BKI continues to be very active, constantly increasing communication levels with Shareholders For personal use only Weekly NTA NTA and Contact Quarterly Investor Annual Update Monthly Report Insights Report Presentations Report Sign up for News and Information from BKI and Contact A
Slide 16: Portfolio Positioning
For personal use only Portfolio Positioning Results Presentation For the year ended 30 June 2024
Slide 17: Portfolio Movements: Main Purchases
Portfolio Movements As at 30 June 2024 For personal use only Main Purchases Add 17
Slide 18: Portfolio Movements: Sales
Portfolio Movements As at 30 June 2024 For personal use only Sales Sales Reduce Exit 18
Slide 19: Quality Portfolio
Quality Portfolio For personal use only BKI’s Top 10 Investments and 1 Year Total Shareholder Returns* BKI Portfolio Weight BKI Portfolio Weight BKI Portfolio Weight BKI Portfolio Weight BKI Portfolio Weight 1 2 3 4 5 8.7% 8.3% 7.3% 6.9% 5.4% Total Shareholder Return Total Shareholder Return Total S
Slide 20: Overweight / Underweight Positions
Overweight / Underweight Positions As at 30 June 2024 For personal use only Overweight Positions Underweight Positions Company Active 1 Year Company Active 1 Year Weight TSR* Weight TSR* APA Group 4.9% (12.5)% CSL Limited (5.5)% 7.5% New Hope Group 4.1% 9.8% Westpac Bank (3.6)% 30.1% Macquarie Group
Slide 21: Portfolio Positioning – Top Holdings
Portfolio Positioning – Top 25 As at 30 June 2024 For personal use only Stock % of Total Portfolio Stock % of Total Portfolio 1 Commonwealth Bank 8.7% 14 Sonic Healthcare 2.2% 2 BHP Group 8.3% 15 Goodman Group 2.2% 3 National Australia Bank 7.3% 16 Yancoal Australia 1.9% 4 Macquarie Group 6.9% 17 Ra
Slide 22: Portfolio Positioning – Active Weight / Exposure
Portfolio Positioning – Active Weight / Exposure As at 30 June 2024 For personal use only BKI Portfolio: Active Weight by Sector BKI Portfolio: Exposure by Sector Cash Real Estate, 4.8% Health Care, 4.6% 7.5% Energy 5.9% Consumer Staples, 4.9% Banks, 16.1% Utilities 3.7% Consumer Discretionary 3.6%
Slide 23: Discount to NTA
For personal use only Discount to NTA Results Presentation For the year ended 30 June 2024
Slide 24: Pre-Tax NTA Premium/Discount – 10 Year History
20 Years - Investor Focused Pre-Tax NTA Premium/Discount – 20 Year History For personal use only As at 31 December 2023 $1.90 30% $1.80 Over the last 10 years, BKI has reduced $1.70 the Pre-Tax NTA Discount through: $1.60 20% $1.50 • Increased Size $1.40 $1.30 10% • Increased Scale $1.20 $1.10 • Inc
Slide 25: Pre-Tax NTA Premium/Discount – 1 Year History
Investor Focused Pre-Tax NTA Premium/Discount – 20 Year History For personal use only As at 30 June 2024 $1.90 30% BKI’s Pre-Tax Net Tangible Assets as at $1.80 $1.70 30 June 2024 was $1.83. $1.60 20% $1.50 $1.40 BKI’s share price of $1.68 represented $1.30 10% an 8.4% discount to the pre-tax NTA. $
Slide 26: Pre-Tax NTA Premium/Discount – Contributors
Investor Focused Pre-Tax NTA Premium/Discount – 20 Year History For personal use only As at 30 June 2024 20% 10% The BKI discount to pre-tax NTA can 8% 15% be cyclical. 6% 10% 4% Contributors to BKI’s recent discount 5% 2% include: 0% 0% • Trading Ex-Dividend -2% -5% -4% • High Cash Rate -10% -6% •
Slide 27: Equity Market Overview
For personal use only Equity Market Overview Results Presentation For the year ended 30 June 2024
Slide 28: Equity Market Overview
Equity Market Overview As at 30 June 2024 For personal use only Given the current economic backdrop we are very curious as to the outcome of the last six months which will be shown in the various half and full year company results during the upcoming July/August 2024 reporting season. We will have a
Slide 29: Equity Market Overview: Consumer Discretionary Sector
Equity Market Overview As at 30 June 2024 For personal use only The Consumer Discretionary Sector – Many consumers have been impacted by a higher cost of living. Can this sector continue to show resilient top line sales relative to previous conservative assumptions? Average Revenue Per User for Telc
Slide 30: Equity Market Overview: Materials Sector
Equity Market Overview As at 30 June 2024 For personal use only The Materials Sector – Major miners are again recycling large profits. Will increased volumes and a low Australian dollar be enough to offset the impact of lower commodity prices, higher costs and a challenging labour market? The energy
Slide 31: Equity Market Overview: Interest Costs
Equity Market Overview As at 30 June 2024 For personal use only Interest Costs – These will remain a headwind for many companies with excessive debt. Will companies with a stretched balance sheet reduce dividends to pay down debt? Companies with no debt and net cash positions will continue to benefi
Slide 32: Equity Market Overview: Artificial Intelligence
Equity Market Overview As at 30 June 2024 For personal use only Artificial Intelligence – AI has become an increasing talking point. Will tech continue to dominate? AI has catapulted into the mainstream and no longer functions in the background. Training and delivering AI requires enormous amounts o
Slide 33: BKI Investment Company contact details
For personal use only BKI Investment Company info@bkilimited.com.au +61 2 7251 6242 Suite 302, Level 3, 1 Castlereagh Street, Sydney NSW
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