BKI Investment Co. Ltd. · ASX:BKI
BKI Investment — Shareholder Meeting (October 2014)
29 slides from BKI Investment's shareholder meeting presentation, Oct 14, 2014
Slide 1: 2014 Annual General Meeting
For personal use only 2014 Annual General Meeting
Slide 2: Chairman's Address
For personal use only 2014 Annual General Meeting Chairman's Address 2
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
Slide 4: Non Executive Directors
Non Executive Directors For personal use only Robert Millner Chairman of the Board Chairman of the Investment Committee Chairman of the Nomination Committee David Hall AM Independent Non-Executive Director Chairman of the Audit Committee Alex Payne Non-Executive Director Chairman of the Remuneration
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 Ruwald & Evans 5
Slide 6: FY2014 Highlights
FY2014 Highlights For personal use only Net Operating Result increased by 20.1%. Earnings Per Share (EPS) before special dividends increased by 5.0%. (additional shares on issue from Placement and Entitlement Offer). Total Full Year Fully Franked Ordinary Dividends paid increased by 4.5%. Ma
Slide 7: Capital Raising
Capital Raising For personal use only Placement raising gross proceeds of $59m at $1.48 Entitlement Offer raising $48.1m at $1.48 (closed over-subscribed) Acquisition of Unlisted Investment Company Completed the acquisition of an unlisted investment company Net assets of $4m Looking to eng
Slide 8: CEO's Address
For personal use only 2014 Annual General Meeting CEO’s Address 8
Slide 9: Net Operating Result FY2004 – FY2014
Net Operating Result For personal use only FY2004 – FY2014 40 35 30 $ Millions 25 20 15 10 5 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 9
Slide 10: Dividends Paid
Dividends Paid For personal use only 2nd Half 2004 – 2nd Half 2014 1.00 0.50 1.00 0.50 Cents per Share 0.50 3.4 3.45 3.5 3.2 3.2 3.25 3 3 3 3 3 3 2.75 2.7 2.5 2.5 2.5 2.6 2 2.1 2.2 Ordinary Dividends Special Dividends 10
Slide 11: Yield for all Seasons
Yield for all Seasons Dividends + Franking Credits received from a $100,000 investment in BKI at For personal use only inception V’s Bank Quarterly Interest. Highlights the opportunity of receiving a fully franked dividend in a falling interest rate environment. 16,000 14,000 $ Australian Dollars 12
Slide 12: Management Expense Ratio
Management Expense Ratio For personal use only 0.80% BKI is internally managed and does not 0.71% charge Shareholders an external 0.69% management fee or performance fees. 0.70% 0.60% 0.56% 0.50% 0.46% 0.46% 0.40% 0.31% BKI Internally Managed 0.30% 0.20% 0.19% 0.18% 0.18% 0.19% 0.17% 0.10% 2004 2005
Slide 13: Portfolio Valuation
Portfolio Valuation For personal use only As at 30 June 2014 1,000 900 800 700 $ Millions 600 500 400 300 200 100 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Investment Portfolio Cash 13
Slide 14: Total Portfolio Performance
Total Portfolio Performance For personal use only As at 30 June 2014 20.0% 17.3% 15.0% 11.8% 11.0% 11.0% 9.8% 9.9% 10.0% 9.2% 8.9% 5.0% 4.1% 2.1% 0.0% 1 Year 3 Yrs pa 5 Yrs pa 7 Yrs pa 10 Yrs pa BKI Portfolio Performance S&P/ASX 300 ACC INDEX (XKOAI) Source: BKI Investment Company Limited, IRESS. Po
Slide 15: BKI TSR Performance
BKI TSR Performance For personal use only As at 30 June 2014 Total Shareholder Returns exclude the benefit 25.0% of franking credits being passed on from BKI 21.0% to Shareholders. 20.0% 17.3% 16.7% 15.1% 15.0% 11.0% 10.5% 9.9% 10.0% 8.9% 6.4% 5.0% 2.1% 0.0% 1 Year 3 Yrs pa 5 Yrs pa 7 Yrs pa 10 Yrs
Slide 16: Portfolio Movements: $140m Invested – Major Investments
Portfolio Movements For personal use only $140m Invested – Major Investments Major Investments FY15 Forecast FY15 FY15 Dividend Franking Forecast Forecast Yield EPS Growth PE Multiple ANZ Banking Group 5.9% 100% 4.8% 11.9X Westpac Bank 5.9% 100% 3.1% 13.0X Primary Health Care 5.1% 100% 7.3% 12.0X AP
Slide 17: Portfolio Movements: $140m Invested – Major Investments
Portfolio Movements For personal use only $140m Invested – Major Investments Major Investments FY15 Forecast FY15 FY15 Dividend Franking Forecast Forecast Yield EPS Growth PE Multiple Transurban Group 5.0% 0% 2.5% 48.1X Toll Holdings 5.2% 100% 0.5% 13.5X Suncorp Group 7.0% 100% 9.3% 13.3X National A
Slide 18: Portfolio Movements: $20m in Sales
Portfolio Movements For personal use only $20m in Sales Major Divestments Comments QBE Insurance Continual earnings uncertainty and poor insurance margins driven by low bond yields, currencies and large future write-downs. Metcash Limited Competition from major supermarkets and significant cap-ex pr
Slide 19: 1st Quarter FY2015 Update
For personal use only 2014 Annual General Meeting 1st Quarter FY2015 Update 19
Slide 20: 1st Quarter FY2015 Update
1st Quarter FY2015 Update For personal use only Global financial conditions continue to stabilise Australian Dollar beginning to fall Interest rates remain low Building and Housing market improvement July - September reporting season Continued cost savings Balance sheet strength Attr
Slide 21: Successful Share Purchase Plan
Successful Share Purchase Plan For personal use only SPP offered to all existing shareholders Price of $1.655 per share New shares entitled to Dividend Share Purchase Plan raised $47.8m 21
Slide 22: Portfolio Movements: $40m Invested – Major Investments
Portfolio Movements For personal use only $40m Invested – Major Investments Major Investments FY16 Forecast FY16 FY16 Dividend Franking Forecast Forecast Yield EPS Growth PE Multiple Wesfarmers Limited 5.5% 100% 11.9% 17.1X Toll Holdings 5.5% 100% 5.3% 12.8X ASX Limited 5.6% 100% 5.2% 16.3X Primary
Slide 23: Portfolio Movements: $40m Invested – Major Investments
Portfolio Movements For personal use only $40m Invested – Major Investments Major Investments FY16 Forecast FY16 FY16 Dividend Franking Forecast Forecast Yield EPS Growth PE Multiple Santos Limited 4.6% 100% 25.9% 10.8X Sonic Healthcare 4.6% 100% 9.1% 15.2X Tatts Group 5.4% 100% 5.1% 17.0X Ramsay He
Slide 24: Portfolio Movements: $4m in Sales
Portfolio Movements For personal use only $4m in Sales Major Divestments Comments Healthscope Limited Short term opportunity with participation in IPO; Funds have been re-invested into Ramsay Healthcare. AGL Energy Rights Rights sold into market. Arrium Limited Small position for BKI; Poor balance s
Slide 25: BKI Top Shareholdings – as at September 2014
BKI Top 25 Shareholdings – as at 30 September 2014 1 National Australia Bank 8.7% 16 Invocare Limited 1.7% For personal use only 2 Commonwealth Bank 8.6% 17 ASX Limited 1.3% 3 Westpac Bank 7.4% 18 Transurban Group 1.3% 4 BHP Billiton 5.5% 19 Ramsay Health Care 1.3% 5 Telstra Corp 5.3% 6 Wesfarmers L
Slide 26: BKI TSR Performance
BKI TSR Performance For personal use only As at 30 September 2014 Total Shareholder Returns exclude the benefit of franking credits being passed on from BKI 20.0% 18.5% to Shareholders. 14.4% 15.0% 10.1% 9.8% 10.0% 8.2% 6.3% 5.7% 6.6% 5.9% 5.0% 1.2% 0.0% 1 Year 3 Yrs pa 5 Yrs pa 7 Yrs pa 10 Yrs pa B
Slide 27: 1st Quarter FY2015 Update
1st Quarter FY2015 Update* For personal use only Revenue – Revenue from the Investment Portfolio (excluding Special Dividend Income) is up approx 30% on the same time last year.* Net Operating Result – Net Operating Result (excluding Special Dividend Income) is up approx 26% on the same time last ye
Slide 28: 1st Quarter FY2015 Update
1st Quarter FY2015 Update* For personal use only Portfolio Valuation - The Total BKI Portfolio Valuation including cash and receivables is $878m, up from $784m at 30 September 2013.* Net Tangible Asset Backing (NTA) - The consolidated unaudited pre tax NTA at 30 September 2014 was $1.58 per share, a
Slide 29: BKI Online
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 • Dividend Announcements Simply visit ww
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