BKI Investment Co. Ltd. · ASX:BKI
BKI Investment — Dixon Advisory Investor Conference 2014
21 slides from BKI Investment's conference presentation, Dec 1, 2014
Slide 1: Where to be Careful …Where to be Brave
For personal use only Dixon Advisory Investor Conference 2014 Where to be Careful …Where to be Brave
Slide 2: Disclaimer
Dixon Advisory Investor Conference 2014 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 o
Slide 3: Careful - Brave
Dixon Advisory Investor Conference 2014 Careful - Identifying / being aware of a potential risk For personal use only Brave - Displaying courage to face a potential risk “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful” Warren Buffett 3
Slide 4: Careful / Brave
Dixon Advisory Investor Conference 2014 Careful For personal use only “Your goal as an investor should simply be to purchase, at a rational price, a part interest in an easily-understandable business whose earnings are virtually certain to be materially higher 5, 10 and 20 years from now.” Brave “Ov
Slide 5: BKI's long term investment criteria – Fundamentals
Dixon Advisory Investor Conference 2014 Identifying a potential risk For personal use only BKI’s long term investment criteria – 5 Fundamentals 1. Income 2. Principal Activity 3. Debt Levels 4. Management and Board 5. Earnings and Valuations 5
Slide 6: BKI's long term investment criteria – Fundamentals
Dixon Advisory Investor Conference 2014 Identifying a potential risk For personal use only BKI’s long term investment criteria – 5 Fundamentals 1. Income 2. Principal Activity 3. Debt Levels 4. Management and Board 5. Earnings and Valuations 5
Slide 7: Key Fundamental - Principal Activity
Dixon Advisory Investor Conference 2014 Identifying a potential risk For personal use only Key Fundamental - Principal Activity • “Do we understand what this company does?” • “Does this company have a sustainable business model?” • “Will this company be around for the long term?” • “Does the busines
Slide 8: Washington H Soul Pattinson and Company Limited (WHSP)
Dixon Advisory Investor Conference 2014 Washington H Soul Pattinson and Company Limited (WHSP) For personal use only • Association - Shareholding in BKI is 11.8% ($105m). • Longevity and track record - second oldest listed company on the ASX. • Size and scale - WHSP holds investments worth in excess
Slide 9: Washington H Soul Pattinson and Company Limited (WHSP)
Dixon Advisory Investor Conference 2014 Washington H Soul Pattinson and Company Limited (WHSP) For personal use only WHSP’s long term, patient investment philosophy is dispersed across many industries including: • Building Products • Property • Metals, Mining and Energy • Retail • Logistics • Heathc
Slide 10: Macro – Being aware of
Dixon Advisory Investor Conference 2014 Macro – Being aware of a potential risk For personal use only Consumer Price Index (Inflation) 2000-2014 Unemployment Rate 2000-2014 9
Slide 11: Macro – Being aware of
Dixon Advisory Investor Conference 2014 Macro – Being aware of a potential risk For personal use only RBA Cash Rate 2000-2014 Australia Building Approvals 2000-2014 10
Slide 12: Macro – Being aware of
Dixon Advisory Investor Conference 2014 Macro – Being aware of a potential risk For personal use only Australian Dollar (AUD/USD) 2000-2014 GDP Growth Rate 2000-2014 11
Slide 13: Display courage to face: Retail
Dixon Advisory Investor Conference 2014 Display courage to face a potential risk For personal use only Retail • A cautious consumer - Brand loyalty versus value • Online shopping • Offering the consumer a difference 12
Slide 14: Display courage to face: Finance
Dixon Advisory Investor Conference 2014 Display courage to face a potential risk For personal use only Finance • Technology and the switch to on-line • Market domination • Highly regulated 13
Slide 15: Display courage to face: Healthcare
Dixon Advisory Investor Conference 2014 Display courage to face a potential risk For personal use only Healthcare • Aging and growing population • Hospital expenditure; playing catch up • Technology improvements 14
Slide 16: Display courage to face: Energy
Dixon Advisory Investor Conference 2014 Display courage to face a potential risk For personal use only Energy • Global shortage of cheap reliable energy • Resources and Infrastructure • “Free” Cash Flow verses “Operating” Cash Flow 15
Slide 17: New Hope Group (NHC)
Dixon Advisory Investor Conference 2014 New Hope Group (NHC) For personal use only • LNG gas requirements could see domestic Eastern Australian gas pricing jump from ~$3/GJ to ~$10GJ. • Gas consumed by power stations could fall from 31% of total domestic demand during the winter peak season to 10% b
Slide 18: Display courage to face: Telecommunications
Dixon Advisory Investor Conference 2014 Display courage to face a potential risk For personal use only Telecommunications • Infrastructure • Content • Market domination 17
Slide 19: Telstra Corporation (TLS)
Dixon Advisory Investor Conference 2014 Telstra Corporation (TLS) For personal use only Mobile share of service revenue (Y/E June) • Infrastructure - 90% population coverage of 4G network expected by Jan 2015 • Network Advantage - TLS currently has: • 16 million mobile services • 7.5 million fixed v
Slide 20: BKI 1st Quarter FY2015 Update
Dixon Advisory Investor Conference 2014 BKI 1st Quarter FY2015 Update For personal use only • Revenue – Revenue from the Investment Portfolio# is up approx 30% on the same time last year.* • Net Operating Result – Net Operating Result# is up approx 26% on the same time last year.* • Dividends – Barr
Slide 21: BKI Online
Dixon Advisory Investor Conference 2014 www.bkilimited.com.au For personal use only BKI Online Sign up online to receive news and information about your company via email. Subscribe to: • NTA+Monthly Reports • Quarterly Reports • Presentations to Shareholders • Annual Report • Results Announcements
BKI Investment Company — Dixon Advisory Investor Conference 2014 on 6ix