BKI Investment Co. Ltd. · ASX:BKI
BKI Investment — Shareholder Meeting (November 2015)
29 slides from BKI Investment's shareholder meeting presentation, Nov 4, 2015
Slide 1: 2015 Annual General Meeting
For personal use only BKI Investment Company Limited 2015 ANNUAL GENERAL MEETING 1
Slide 2: Chairman's Address
For personal use only BKI Investment Company Limited CHAIRMAN’S ADDRESS 2
Slide 3: Disclaimer
Disclaimer For personal use only 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 4: Non Executive Directors
Non Executive Directors For personal use only Robert Millner Chairman of the Board Chairman of the Investment Committee Member of the Remuneration Committee David Hall AM Independent Non-Executive Director Chairman of the Audit Committee Member of the Nomination Committee; Remuneration Committee Ale
Slide 5: Management
Management For personal use only Thomas Millner Chief Executive Officer Investment Committee Will Culbert Senior Investment Analyst Investment Committee Jaime Pinto Company Secretary Corporate Administration Services Auditors Martin Bocxe MGI Sydney 5
Slide 6: Delivering Strong Results
Delivering Strong Results For personal use only 2015 2014 Growth Ordinary Dividend Income $44.6m $38.6m 16% Net Operating Result* $40.9m $35.9m 14% Earnings Per Share* 7.40cps 7.15cps 4% Total Ordinary Dividends Per Share 7.20cps 6.95cps 4% Management Expense Ratio (MER) 0.18% 0.17% * Excluding Spec
Slide 7: Why we do what we do
Why we do what we do… 6.4% For personal use only Grossed up Dividend …We invest for the long term with an aim to create wealth for BKI shareholders, through an increasing fully Yield franked dividend and capital growth …We focus on keeping costs low, we do not charge 0.18% external portfolio managem
Slide 8: Low Cost + Income Growth
Low Cost + Income Growth For personal use only The thicker 0.80% 4.50 4.00 Ordinary Dividends Special Dividends 0.70% 0.50 the carpet… 1.00 3.50 0.60% 1.00 0.50 3.00 0.5 0.50% 2.50 The thinner 2.00 3.65 0.40% 3.55 3.50 3.45 3.40 3.25 3.20 3.20 3.00 3.00 3.00 3.00 3.00 3.00 1.50 2.75 2.70 2.60 2.50 2
Slide 9: Low Cost
Low Cost Based on $100,000 investment in a Listed Investment Company, For personal use only using a 10% return pa over a 20 year period. Over 20 years, administration $700,000 $21,678 0.18%pa MER fees of 2.0% can $600,000 $112,309 1.0%pa MER $206,654 2.0%pa MER dilute the total $500,000 return on an
Slide 10: Income Growth
Income Growth For personal 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. BKI Dividend BKI Franking Interest $16,000
Slide 11: CEO Address
For personal use only BKI Investment Company Limited CEO ADDRESS 11
Slide 12: Net Operating Result FY2004 – FY2015
Net Operating Result For personal use only FY2004 – FY2015 $45 $40.9 $40 $35.9 $35 $29.9 $30 $27.7 $25.3 $ Millions $25 $22.4 $20.7 $20 $18.3 $15 $12.5 $10.3 $10.1 $10 $5 $3.5 $0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 12
Slide 13: Dividends FY2004 – FY2015
For personal use only Cents per Share 1.00 1.50 2.00 2.50 3.00 3.50 4.00 2.00 Dividends FY2004 – FY2015 2.10 2.20 2.50 2.50 1.00 2.60 Ordinary Dividends 2.70 3.00 3.00 3.00 3.00 Special Dividends 2.50 0.5 2.75 0.50 3.00 3.00 1.00 3.20 3.20 3.25 3.40 0.50 3.45 3.50 3.55 3.65 13
Slide 14: Capital Growth
Capital Growth Total Shareholder Total Shareholder Returns including franking credits For personal use only As at 30 June 2015 Returns including the benefit of franking 25.0% credits passed on from 20.5% BKI to shareholders. 20.0% 16.5% 15.7% 15.0% 12.3% 11.4% 11.8% BKI has ample franking 10.0% 8.8%
Slide 15: Portfolio Movements
Portfolio Movements For personal use only Main Purchases Main Sales National Australia Bank Toll Holdings Low Portfolio Turnover APA Group ALS Limited 70% Sydney Airport DUET Group 60% Transurban Group APA Renounceable Rights 50% QUBE Holdings GWA Group 40% Santos Limited South32 Limited 30% Wesfarm
Slide 16: Portfolio Movements
Portfolio Movements For personal use only Long term investors constantly remain focused on future Finance opportunities. The following sectors have an attractive long term Healthcare thematic and the BKI portfolio is well positioned to capture future growth: Healthcare Finance Consumer Energy
Slide 17: Looking Ahead – Long Term Investment
Looking Ahead – Long Term Investment For personal use only 17
Slide 18: Looking Ahead – Healthcare
Looking Ahead – Long Term Investment For personal use only Healthcare - Increasing life expectancy in Australia and other developed countries has led us to invest further into the Healthcare sector for the aging population thematic. Major investments during the year included: Primary Health Care
Slide 19: Looking Ahead – Finance
For personal use only Looking Ahead – Long Term Investment Finance - Attractive fully franked dividend yields and sound EPS growth rates expected from the Banks, Diversified Financials and the Insurance companies. Major investments during the year included: National Australia Bank ASX Limited
Slide 20: Looking Ahead – Energy
Looking Ahead – Long Term Investment For personal use only Energy - Population growth and further urbanisation is a real driver for consumption of energy requirements. Major investments during the year included: Santos Limited Wesfarmers Limited APA Group 20
Slide 21: Looking Ahead – Infrastructure
Looking Ahead – Long Term Investment For personal use only Infrastructure - Long term, stable investment opportunities. Freight Distribution and Airport, Gas, Road and Telecommunications Infrastructure. Major investments during the year included APA Group Sydney Airports Transurban Group Qub
Slide 22: Looking Ahead – Consumer
Looking Ahead – Long Term Investment For personal use only Consumer – Non-cyclical essential goods and services. Domestic population growth plus increasing export demand for high quality Australian produce. Major investments during the year included Wesfarmers Limited Lindsay Australia 22
Slide 23: 1st Quarter FY2016 Update
For personal use only BKI Investment Company Limited 1 ST QUARTER FY2016 UPDATE 23
Slide 24: Market Snapshot
Market Snapshot S&P/ASX 300 Acc Index For personal use only S&P/ASX 300 Index - PE Multiple (X) 55,000 20.0 50,000 45,000 17.5 40,000 15.0 35,000 30,000 12.5 25,000 10.0 20,000 7.5 15,000 10,000 5.0 S&P/ASX 300 Acc Index - Dividend Yield Australin Dollar - $USD 8.0% 1.20 1.10 7.0% 1.00 6.0% 0.90 5.0
Slide 25: BKI Performance
BKI Performance Total Shareholder Returns including franking credits For personal use only As at 30 September 2015 20.0% BKI Total Shareholder Returns S&P/ASX 300 ACC INDEX 17.5% 15.4% 15.0% 13.2% 12.5% 10.8% 10.8% 10.1% 10.0% 8.5% 8.1% 7.6% 7.0% 7.5% 5.0% 2.5% 0.9% 0.0% 1 Year 3 Yrs pa 5 Yrs pa 7 Y
Slide 26: Acquisition of Unlisted Share Portfolio
Acquisition of Unlisted Share Portfolio For personal use only BKI completed the 2nd acquisition of an unlisted investment company • Net assets of $17m • Long term investment portfolio • Investments complementary to BKI’s portfolio Looking to engage in similar transactions in the future 26
Slide 27: BKI Portfolio: Top Shareholdings
BKI Portfolio Top 25 Shareholdings as at 30 September 2015 For personal use only Stock % of Total Stock % of Total Portfolio Portfolio 1 National Australia Bank 9.2% 14 IAG Limited 1.8% 2 Commonwealth Bank 8.7% 15 Invocare Limited 1.7% 3 Westpac Bank 7.3% 16 Suncorp Group Limited 1.6% 4 Telstra Corp
Slide 28: 1st Quarter FY2016 Update
1st Quarter FY2016 Update* For personal use only Revenue and Net Operating Income (excluding Special Dividend Income) in-line with the same time last year. Special Dividend Income - BKI expects to receive approx. $660k in Special Dividend Income in the first half of FY2016 from New Hope Corporat
Slide 29: BKI Online
www.bkilimited.com.au For personal use only Our aim is to BKI Online create wealth Sign up online to receive news and information about your company via for BKI email. shareholders, Subscribe to: • NTA+Monthly Reports • Quarterly Reports through an • Presentations to Shareholders • Annual Report inc
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