BKI Investment Co. Ltd. · ASX:BKI

BKI Investment — Shareholder Meeting (October 2012)

32 slides from BKI Investment's shareholder meeting presentation, Oct 9, 2012

  1. Slide 1: 2012 Annual General Meeting

    For personal use only 2012 Annual General Meeting 1

  2. Slide 2: Chairman's Address

    For personal use only 2012 Annual General Meeting Chairman's Address 2

  3. 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

  4. Slide 4: Non Executive Directors

    Non Executive Directors For personal use only Robert Millner Chairman of the Board Chairman of the Investment Committee David Hall Independent Non-Executive Director Chairman of the Audit Committee Alex Payne Non Executive Director Non-Executive Chairman of the Remuneration Committee Chairman of the

  5. Slide 5: Chief Executive Officer, Company Secretary, Auditors

    For personal use only Chief Executive Officer Thomas Millner Investment Committee Company Secretary Jaime Pinto Corporate Administration Services Auditors Martin Bocxe Ruwald & Evans 5

  6. Slide 6: FY2012 Highlights

    FY2012 Highlights For personal use only ¾ Net Operating Result increased by 9.4% ¾ Earnings Per Share (EPS) before special dividends increased by 8.2% ¾ Total Full Year Ordinary Dividends paid increased by 6.7% 6 7% ¾ Management Expense Ratio (MER) maintained at 0.18% ¾ 12 month Total Shareholder Re

  7. Slide 7: CEO's Address

    For personal use only 2012 Annual General Meeting CEO’s Address 7

  8. Slide 8: Dividend Income

    Dividend Income For personal use only 40 35 30 ns 25 $ Million 20 1 15 10 5 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 Total Ordinary Income Total Special Income 8

  9. Slide 9: Net Operating Result

    Net et Ope Operating at g Result esu t For personal use only 30 25 ns 20 $ Million 15 10 5 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 9

  10. Slide 10: Dividends Paid

    Dividends Paid For personal use only 7.0 1 60 6.0 1 1 5.0 are s per Sha 4.0 6.4 3.0 6 6 6 Cents 5 53 5.3 5 25 5.25 2.0 4.3 1.0 10 2 0.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 Ordinary Dividends Special Dividends 10

  11. Slide 11: Grossed Up Dividend Yield

    Grossed Up Dividend Yield For personal use only 10.0% 9.0% 8.0% 7.0% 6 0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% BKI Grossed Up Dividend Yield 90 Day Bank Bill 11

  12. Slide 12: Earnings Per Share

    Earnings a gs Per e SShare ae For personal use only 9.0 8.0 7.0 nts per Share 6.0 5.0 4.0 Cen 3.0 2.0 1.0 0.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 EPS Before Special Dividends EPS After Special Dividends 12

  13. Slide 13: Management Expense Ratio

    Management Expense Ratio For personal use only 0.80% 0.70% 0.69% 0.71% 0.56% 0.60% 0 46% 0.46% 0.46% 0 46% 0.50% 0.40% BKI Internally Managed 0.31% 0.30% 0 19% 0.18% 0.19% 0 18% 0.18% 0.20% 0.10% 2004 2005 2006 2007 2008 2009 2010 2011 2012 13

  14. Slide 14: BKI Performance as at June 2012

    BKI Performance as at 30 June 2012 For personal use only BKI Performance 1 Year 3 Years 5 Years 7 Years as at 30 June 2012 (pa) (pa) (pa) S&P/ASX 300 ACC INDEX (XKOAI) -7.0% 5.6% -4.2% 3.8% BKI Portfolio Returns are BKI Total Shareholder Returns 1.5% 8.9% -0.3% 6.0% measured after BKI Share Price Ou

  15. Slide 15: Total Shareholder Returns as at June 2012

    Total Shareholder Returns as at 30 June 2012 For personal use only 10.0% 8.9% 8.0% 6.0% 5.6% 6 0% 6.0% 3.8% 4.0% 2.0% 1.5% 0.0% -2.0% -0.3% -4.0% -4.2% -6.0% -8.0% -7.0% -10.0% 10 0% 1 Year (pa) 3 Year (pa) 5 Year (pa) 7 Year (pa) BKI Total Shareholder Returns S&P/ASX 300 ACC INDEX (XKOAI) Source: B

  16. Slide 16: Portfolio Valuation

    Portfolio o t o o Valuation a uat o For personal use only 600 500 400 $ Millions s 300 200 100 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 Investment Portfolio Cash 16

  17. Slide 17: Portfolio Movements

    Portfolio Movements For personal use only Major Investments: Westpac Banking Corporation National Australia Bank Limited C Commonwealth lth Bank B k off Australia A t li Wesfarmers Limited Fleetwood Corporation Major Divestments: Bluescope Steel E h Entertainment Echo E t t i t Transfield Services S

  18. Slide 18: Top Investments

    Top p 25 Investments As at 30 June 2012 For personal use only 1 New Hopep Corporation p 14 QBE Insurance Groupp 2 Commonwealth Bank 15 Metcash Limited 3 National Australia Bank 16 TPG Telecom Limited 4 BHP Billiton Limited 17 ARB Corporation Limited 5 Westpac Banking Corp 18 InvoCare Limited 6 Telst

  19. Slide 19: Sector Performance Months to June 2012

    19 Sector Performance 12 Months to 30 June 2012 For personal use only (BKI Top 20 V’s S&P/ASX300 Accumulation Indexes) 40% 30% 20% BKI Investment 10% Company (BKI.ASX) 0% -10% S&P/ASX 300 Acc Index -20% -30% 30% Telco Financials Consumer Industrials Consumer XKOAI Energy Materials Services Staples D

  20. Slide 20: Sector Performance Months to June 2012

    20 Sector Performance 12 Months to 30 June 2012 For personal use only (BKI Top 20 V’s S&P/ASX300 Accumulation Indexes) 40% TLS 30% CCL ALS ARP 20% BKI Investment C Company 10% CBA ANZ (BKI.ASX) TPM IVC AGK ASX MLT WOW 0% WBC WES NAB -10% S&P/ASX MTS QBE 300 Acc Index NHC -20% WPL BHP -30% 30% Telco

  21. Slide 21: Sector Weightings

    21 Sector Weightings For personal use only Sector Portfolio Weight Portfolio Weight Change FY2012 FY2011 Financials 35 7% 35.7% 34 4% 34.4% 1 3% 1.3% Energy 13.3% 15.9% -2.6% Consumer Staples 11.6% 10.4% 1.2% Materials 9.2% 11.9% -2.7% Industrials 7.9% 7.3% 0.6% Telecommunications 6.2% 4.6% 1.6% Cas

  22. Slide 22: 1st Quarter FY2013 Review

    For personal use only 2012 Annual General Meeting 1st Quarter FY2013 Review* * Figures referred to in the “FY2013 Review” are unaudited. 22

  23. Slide 23: Market Commentary

    Market Commentary For personal use only Negatives ¾ Investor confidence remains low ¾ Cost C t off liliving i pressures ¾ Weak global economies ¾ High A Australian stralian Dollar ¾ Softer demand for commodities ¾ Unfavorable federal government policies (Carbon Tax, Tax MRRT) Positives ¾ Local inter

  24. Slide 24: Investment Opportunity

    Investment Opportunity For personal use only ¾ Invested $64.5m $64 5m into the domestic market over last 2 years ¾ Dividend distributions improving ¾ Continue to be cautious of companies exposed to: Discretionary Retail, Media and Manufacturing. ¾ Focused on our Stock Selection Criteria: 11. IIncome

  25. Slide 25: Portfolio Valuation

    Portfolio o t o o Valuation a uat o For personal use only 600 500 400 $ Millions s 300 200 100 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 Sep-12 Investment Portfolio Cash 25

  26. Slide 26: Discount to NTA

    Discount to NTA For personal use only $1.70 30.0% $1.60 $1 50 $1.50 $1.40 20.0% $1.30 $1.20 10.0% $1.10 $1.00 0.0% $0.90 $0 80 $0.80 $0.70 -10.0% $0.60 $0.50 -20.0% P Prem/Disc /Di % P Tax Pre T NTA BKI Sh Share P Price i 26

  27. Slide 27: BKI Performance as at September 2012

    BKI Performance For personal use only as at 30 September 2012 BKI Performance 1 Year 3 Years 5 Years 7 Years as at 30 September 2012 (pa) (pa) (pa) S&P/ASX 300 ACC INDEX (XKOAI) 14.5% 1.7% -3.6% 3.6% BKI Portfolio Returns are BKI Total Shareholder Returns 22.0% 5.9% 1.8% 5.6% measured after all oper

  28. Slide 28: Total Shareholder Returns as at September 2012

    Total Shareholder Returns as at 30 September 2012 For personal use only 25.0% 22.0% 20.0% 14.5% 15.0% 10.0% 5 9% 5.9% 5 6% 5.6% 5.0% 3.6% 1.7% 1.8% 0.0% -5.0% -3.6% -10.0% 1Y Year ((pa)) 3Y Year ((pa)) 5Y Year ((pa)) 7Y Year ((pa)) BKI Total Shareholder Returns S&P/ASX 300 ACC INDEX (XKOAI) Source:

  29. Slide 29: BKI Update 1st Quarter FY2013

    BKI Update 1st Quarter FY2013 For personal use only ¾ Revenue from the Investment Portfolio (excluding Special Dividend Income)) is upp approx pp 5% on the pprevious corresponding p g pperiod. ¾ Net Operating Result (excluding Special Dividend Income) is up approx 5% on the previous corresponding pe

  30. Slide 30: 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 www bkilimited com au ABN 23 106 719 868 30

  31. Slide 31: Share Purchase Plan

    For personal use only Share Purchase Plan 31

  32. Slide 32: Share Purchase Plan

    Share Purchase Plan For personal use only Opportunity to acquire up to $15,000 worth of ordinary shares in BKI, at a 0.25% discount to the 5 day VWAP. The new shares offered under the SPP will be issued at the Volume Weighted Average Price (VWAP) over the 5 business days prior to the date of issue.

BKI Investment Company — Shareholder Meeting (October 2012) on 6ix