BKI Investment Co. Ltd. · ASX:BKI
BKI Investment — Investor Presentation (April 2015)
21 slides from BKI Investment's investor presentation, Apr 24, 2015
Slide 1: Presentation to Shareholders April 2015
For personal use only Presentation to Shareholders April 2015
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 individual’s financial circumstances or investment objectives. This is general investment ad
Slide 3: BKI Overview
For personal use only BKI Overview 3
Slide 4: BKI Overview
BKI Overview For personal use only • BKI is a research driven, active equities manager investing for the long term in profitable, high yielding, well managed companies. • BKI is a closed end company (BKI.ASX) and does not charge external portfolio management or performance fees. • Our aim is to crea
Slide 5: Why a Listed Investment Company?
Why a Listed Investment Company? For personal use only Low Cost MER of 0.16%. No external management or performance fees Tax Effective All dividends have been fully franked Capital Management 5 Fully Franked Special Dividends distributed since listing in 2003. Performance Delivered sound Total Share
Slide 6: Why we do what we do
Why we do what we do For personal use only The Board and Management are shareholders in BKI, that’s why we: 1. Don’t charge external portfolio management or performance fees. 2. Invest for the long term in profitable, high yielding, well managed companies. 3. Focus on creating wealth for all shareho
Slide 7: Experience and Alignment as at March 2015
Experience and Alignment as at 31 March 2015 For personal use only Investment Tenure Equity Team Member Qualifications Position Experience With BKI Ownership 1 Robert Millner FAICD Chairman 31 yrs 11 yrs 8,484,091 Investment Committee David Hall, AM FCA, FAICD Non Executive Director 35 yrs 11 yrs 27
Slide 8: 1H FY2015 Results Highlights
1H FY2015 Results Highlights For personal use only 1H 2015 1H 2014 Growth Ordinary Dividend Income $20.2m $18.2m 11% Net Operating Result* $20.8m $18.0m 16% Earnings Per Share* 3.80cps 3.72cps 2% Total Ordinary Dividends Per Share 3.55cps 3.45cps 3% MER 0.16% 0.17% -4% Portfolio Valuation $907m $851
Slide 9: Low Cost, Growing Income Stream
For personal use only Low Cost, Growing Income Stream
Slide 10: Management Expense Ratio
Management Expense Ratio For personal use only BKI is internally managed and does not charge Shareholders an external management fee or performance fees. BKI Internally Managed www.bkilimited.com.au 10
Slide 11: The Power of a Low Cost LIC
The Power of a Low Cost LIC* For personal use only Over 20 years, administration fees of 2.0% can dilute the total return by more than 30%! $700,000 $20,492 0.16%pa MER $600,000 $112,309 1.0%pa MER $206,654 2.0%pa MER $500,000 $400,000 $652,258 $300,000 $560,441 $466,096 $200,000 $100,000 $0 0.16% p
Slide 12: Total Shareholder Returns as at March 2015
Total Shareholder Returns* as at 31 March 2015 For personal use only Total Shareholder Returns including the benefit of franking credits passed on from BKI to Shareholders *Based on a tax rate of 30% and shareholders being able to utilise all franking credits. S&P/ASX 300 Accumulation Index franked
Slide 13: Growing Income Stream
Growing Income Stream Australian Dollars use only Dividends + Franking Credits received from a $100,000 investment in BKI at inception versus Bank Quarterly Interest. Highlights the opportunity of receiving a fully franked dividend in a falling interest rate environment. 16,000 BKI Dividend BKI Fran
Slide 14: BKI Portfolio
For personal use only BKI Portfolio
Slide 15: Stock Selection Process
Stock Selection Process For personal use only BKI’s stock selection is bottom up, focusing on the merits of individual companies rather than market and economic trends. BKI is focused on investing in stocks using the 5 basic fundamentals below as part of the stock selection process: 1. Income - Divi
Slide 16: A Focus On The Long Term: Finance
A Focus On The Long Term For personal use only Finance • Technology and the switch to on-line • Market domination • Highly regulated 16
Slide 17: A Focus On The Long Term: Healthcare
A Focus On The Long Term For personal use only Healthcare • Aging and growing population • Hospital expenditure; playing catch up • Technology improvements 17
Slide 18: A Focus On The Long Term: Energy
A Focus On The Long Term For personal use only Energy • Global shortage of cheap reliable energy • Population growth and further urbanization • Growth in Free Cash Flow 18
Slide 19: A Focus On The Long Term: Infrastructure
A Focus On The Long Term For personal use only Infrastructure • Long term passive investments • Gas Distribution • Road Networks + Freight Distribution 19
Slide 20: Top Investments
Top 25 Investments Top 25 Shareholdings 1 Commonwealth Bank 9.5% 2 National Australia Bank 9.1% As at 31 March 2015 3 Westpac Banking Corporation 8.3% For personal use only 4 Telstra Corporation Limited 5.6% 5 ANZ Bank 4.9% Diversification 6 BHP Billiton Limited 4.6% BKI’s portfolio is comprised of
Slide 21: BKI Fact Sheet
21 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 BaillieuHolst Benchmark Acc Index Approved Pro
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