BKI Investment Co. Ltd. · ASX:BKI
BKI Investment — FY2021 Earnings Presentation
27 slides from BKI Investment's earnings presentation, Jul 21, 2021
Slide 1: Results for the full year ended 30 June 2021
For personal use only BKI Investment Company Limited Results for the full year ended 30 June 2021 BKI is managed by Contact Asset Management AFSL 494045
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: Full Year Results
Full Year Results For the full year ended 30 June 2021 For personal use only Result excluding special investment revenue 2021 2020 Movement Investment revenue – ordinary $39.7m $45.4m -17% Revenue from operating activities $40.2m $46.7m -14% Net operating profit after tax $35.7m $41.6m -14% Earnings
Slide 4: EPS Improvement
EPS Improvement For the full year ended 30 June 2021 For personal use only As can be seen in the chart below, it has been pleasing to see that in the second half of FY2021, BKI recorded an increase of 46% in ordinary EPS excluding special investment revenue on the first half of FY2021. In the last s
Slide 5: Final Dividends and Key Dates
Final Dividends and Key Dates BKI is paying a fully franked final ordinary dividend of 3.00cps, taking full year dividends to 5.00cps. For personal use only Last trading date to be eligible for the BKI FY2021 final dividend is Thursday 5 August 2021. Key Dates Last trading date to be eligible for th
Slide 6: Dividend History
Dividend History Based on the 2.00cps FY2021 interim dividend and the 3.00cps FY2021 final dividend, the current BKI grossed up dividend yield is For personal use only 4.4%, based on a tax rate of 30% and a share price of $1.62, as at 30 June 2021. 5.00 4.00 Cents per share 3.00 2.00 1.00 0.00 Ordin
Slide 7: Income Generation
Income Generation Long term dividend income For personal use only $2,500 An investment of $10,000 to purchase BKI shares upon listing in December 2003 would have returned a fully franked $2,000 dividend of $1,123 in FY2021. $1,605 $1,500 The franking credits would have enhanced Income from BKI Divid
Slide 8: Performance
For personal use only BKI Investment Company Limited Performance BKI is managed by Contact Asset Management AFSL 494045
Slide 9: Total Shareholder Returns
Total Shareholder Returns As at 30 June 2021 For personal use only BKI’s One Year Total Shareholder Return, including franking credits, was 23.3%. 25.0% 23.3% 20.0% 15.0% 10.2% 10.0% 9.4% 8.5% 7.4% 5.0% 0.0% 1 Year 3 Yrs pa 5 Yrs pa 10 Yrs pa 15 Yrs pa Total Shareholder Returns Source: BKI, Contact
Slide 10: Premium/Discount to NTA
Premium/Discount to NTA As at 30 June 2021 For personal use only BKI’s Net Portfolio Return (after all operating expenses, provisions and payment of both income and capital gains tax and the reinvestment of dividends) for the year to 30 June 2021 was 20.1%. BKI’s Pre-Tax Net Tangible Assets as at 30
Slide 11: BKI Portfolio Discussion
For personal use only BKI Investment Company Limited BKI Portfolio Discussion BKI is managed by Contact Asset Management AFSL 494045
Slide 12: Investment Process – Proven, Robust and Scalable
Investment Process – Proven, Robust and Scalable Research driven, active management For personal use only Through a research driven, active management approach BKI invests for the long term in profitable, well managed companies that offer a compelling yield and growth opportunities. Portfolio Manage
Slide 13: Investment Process – Investment Universe
Investment Process – Investment Universe Research driven, active management For personal use only Using the six fundamentals of the stock selection process, filters opportunities from the Australian equity market down to an investable universe and then into an active 40-45 stock position portfolio.
Slide 14: Investment Process – ESG Enhancement
Investment Process – ESG Enhancement Contact has Introduced MSCI’s ESG Ratings and Research data overlay into BKI’s Investment Process. For personal use only MSCI ESG Ratings Drill Down Environmental Pillar Score Carbon Emissions Water Stress Biodiversity and Land Use Toxic Emissions and Waste Socia
Slide 15: Investment Process - BKI MSCI ESG Portfolio Exposure
Investment Process - BKI MSCI ESG Portfolio Exposure A MSCI ESG Rating aims to measure a company's resilience to long-term ESG risks. For personal use only 18 Number of Companies in BKI Investment Portfolio 16 14 12 10 8 6 4 2 0 CASH CCC B BB BBB A AA AAA MSCI ESG Rating* Source: BKI, Contact Asset
Slide 16: Portfolio Positioning – Active Positions
Portfolio Positioning – Active Positions For the full year ended 30 June 2021 For personal use only Overweight Positions Underweight Positions Company Active Weight Company Active Weight Macquarie Group 6.1% CSL Limited -6.2% APA Group 5.7% Westpac Bank -3.4% Transurban Group 4.7% ANZ Banking Group
Slide 17: Portfolio Positioning - Active Positions
Portfolio Positioning - Active Positions For the full year ended 30 June 2021 For personal use only BKI Portfolio: Active Weight by Sector BKI Portfolio: Exposure by Sector Real Estate, 2% Financials Energy, 4% 10.6% Financials, 19% Consumer Discretionary 6.0% Cash, 5% Cash 5.3% Utilities 4.0% Telec
Slide 18: Portfolio Positioning – Purchases / Sales
Portfolio Positioning – Purchases / Sales For the full year ended 30 June 2021 For personal use only Buy New Reduce Exit APA Group Fortescue Metals New Hope Westpac Banking Corp Transurban Group Rio Tinto Limited Commonwealth Bank AGL Energy Commonwealth Bank IPH Group Transurban Group Sydney Airpor
Slide 19: Top Investments
Top 25 Investments As at 30 June 2021 For personal use only Stock % of Total Portfolio Stock % of Total Portfolio 1 Commonwealth Bank 8.7% 14 ASX Limited 2.5% 2 BHP Group 8.1% 15 Harvey Norman Holdings 2.2% 3 Macquarie Group 8.1% 16 Woodside Petroleum 2.1% 4 APA Group 5.5% 17 Amcor 2.0% 5 Wesfarmers
Slide 20: Positioning BKI for the Future
For personal use only BKI Investment Company Limited Positioning BKI for the Future BKI is managed by Contact Asset Management AFSL 494045
Slide 21: Solid Earnings Growth Supporting Valuations
Solid Earnings Growth Supporting Valuations Attractive PE Multiples and Dividend Yields For personal use only The markets over the last year have been volatile. We now see some attractive opportunities across the market with the S&P/ASX300 PE multiple falling from a peak of 24.2X to 18.7X and the Di
Slide 22: Supply Chain Issues
Supply Chain Issues Demand outpacing supply For personal use only The increased demand on consumable goods and services driven by significant spending over the last year has placed pressure on the supply chain. The swift change in consumer behaviour from multiple stimulus packages and availability o
Slide 23: Australia's Growth in Superannuation
Australia’s Growth in Superannuation The growth in superannuation assets in Australia is going to be substantial For personal use only Australian Superannuation Growth Forecasts ($bn) $8,000 --------- $7.2 trillion $6,000 --------- $2.6 $4,000 --------- trillion $2,000 --------- $0 --------- Source:
Slide 24: Infrastructure Assets
Infrastructure Assets Opportunities in long duration infrastructure assets For personal use only There are several dynamics driving demand for Australian Infrastructure Assets, A) cheap money / low interest rates; B) the increasing prevalence of Industry Superannuation Funds and Private Equity and C
Slide 25: Infrastructure Assets
Infrastructure Assets Opportunities in long duration infrastructure assets For personal use only There are several dynamics driving demand for Australian Infrastructure Assets, A) cheap money / low interest rates; B) the increasing prevalence of Industry Superannuation Funds and Private Equity and C
Slide 26: Questions
For personal use only Questions
Slide 27: For more information, please visit www.bkilimited.com.au
For personal use only For more information, please visit www.bkilimited.com.au
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