BKI Investment Co. Ltd. · ASX:BKI
BKI Investment — 1H 2013 Earnings Presentation
19 slides from BKI Investment's earnings presentation, February 2013
Slide 1: Half Year Presentation January - February 2013
Half Year Presentation January - February 2013 1
Slide 2: Disclaimer
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 advice only and does not
Slide 3: BKI Result Highlights
BKI Result Highlights 1H 2013 1H 2012 Growth Ordinary Dividend Income $15.6m $14.3m 8.6% Net Operating Result* $15.4m $14.2m 8.8% Earnings Per Share* 3.56cps 3.33cps 6.9% Ordinary Dividend Per Share 3.25cps 3.20cps 1.2% Special Dividend Per Share 0.50cps - n/a Total Interim Dividends 3.75cps 3.20cps
Slide 4: Net Operating Result
Net Operating Result 16 14 12 10 $ Millions 8 6 4 2 0 1H 04 1H 05 1H 06 1H 07 1H 08 1H 09 1H 10 1H 11 1H 12 1H 13 4
Slide 5: Dividends Paid
Dividends Paid 4.0 3.5 1 0.5 3.0 1 0.5 0.5 2.5 Cents per Share 2.0 3.25 3.2 3.2 1.5 3 3 3 3 2.75 3 3 2.6 2.7 2.5 2.5 2.5 2.1 2.2 1.0 2 0.5 0.0 Ordinary Dividends Special Dividends 5
Slide 6: Dividends and Franking Credits received from a $10,000 Investment in 2004
Dividends and Franking Credits received from a $10,000 Investment in 2004 BKI Historical Dividend V’s Bank Quarterly Interest Highlights the opportunity of a fully franked dividend in a falling interest rate environment 1,000 800 $ Australian Dollars 600 400 200 0 FY2005 FY2006 FY2007 FY2008 FY2
Slide 7: BKI Grossed Up Dividend Yield
BKI Grossed Up Dividend Yield Assumes a tax rate of 30% 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% BKI Grossed Up Dividend Yield 90 Day Bank Bill 7
Slide 8: Management Expense Ratio
Management Expense Ratio 0.80% 0.69% 0.71% 0.70% 0.56% 0.60% 0.46% 0.46% 0.50% BKI Internally Managed 0.40% 0.31% 0.30% 0.19% 0.18% 0.18% 0.18% 0.20% 0.10% 2004 2005 2006 2007 2008 2009 2010 2011 2012 1H 13 8
Slide 9: BKI Performance
BKI Performance as at 31 December 2012 BKI Performance 1 Year 3 Years 5 Years 7 Years 9 Years as at 31 December 2012 (pa) (pa) (pa) (pa) S&P/ASX 300 ACC INDEX (XKOAI) 19.7% 2.8% -1.8% 4.1% 8.4% BKI Portfolio Returns are BKI Total Shareholder Returns 25.5% 7.8% 4.9% 6.7% 8.9% measured after BKI Share
Slide 10: Total Shareholder Returns
Total Shareholder Returns as at 31 December 2012 30.0% 25.5% 25.0% 19.7% 20.0% 15.0% 8.9% 8.4% 10.0% 7.8% 6.7% 4.9% 5.0% 4.1% 2.8% 0.0% -1.8% -5.0% 1 Year 3 Years (pa) 5 Years (pa) 7 Years (pa) 9 Years (pa) BKI Total Shareholder Returns S&P/ASX 300 ACC INDEX (XKOAI) Source: BKI Investment Company Li
Slide 11: Discount to NTA
Discount to NTA as at 31 December 2012 $1.70 30.0% $1.60 $1.50 $1.40 20.0% $1.30 $1.20 10.0% $1.10 $1.00 0.0% $0.90 $0.80 $0.70 -10.0% $0.60 $0.50 -20.0% Prem/Disc % Pre Tax NTA BKI Share Price 11
Slide 12: Share Purchase Plan
Share Purchase Plan Completed October 2012 $19.1m raised through the Share Purchase Plan (SPP). SPP shares were issued at $1.29. Now trading at $1.45 (as at 29 January 2012). SPP shares entitled to Fully Franked Interim Dividend of 3.25cps and Fully Franked Special Dividend of 0.50cps. New s
Slide 13: Portfolio Valuation
Portfolio Valuation 700 600 500 $ Millions 400 300 200 100 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 1H 2013 Investment Portfolio Cash 13
Slide 14: Top 20 Shareholdings
BKI Investment Company Limited Index 1 NHC New Hope Corporation 9.5% 0.0% 2 CBA Commonwealth Bank 9.1% 7.9% 3 NAB National Australia Bank 8.4% 4.9% Top 20 Shareholdings 4 5 BHP BHP Billiton Limited WBC Westpac Banking Corp. 7.9% 7.0% 9.3% 6.5% 6 TLS Telstra Corporation 4.9% 4.4% Diversification 7 WE
Slide 15: Sector Weightings
Sector Weightings Sector Portfolio Weight Index Weight 31 Dec 2012 31 Dec 2012 Financials 36.6% 32.6% Energy 12.2% 7.3% Consumer Staples 11.3% 7.7% Materials 9.3% 20.9% Industrial 7.5% 7.3% Telecommunications 6.7% 5.1% Cash 6.4% Consumer Discretionary 4.8% 5.6% Utilities 3.6% 1.9% Health Care 1.2% 4
Slide 16: Sector Performance
Sector Performance 12 Months to 31 December 2012 (BKI Top 20 V’s S&P/ASX300 Accumulation Indexes) 100% 90% 80% 70% 60% 50% BKI Investment 40% Company (BKI.ASX) 30% 20% 10% S&P/ASX 300 0% -10% -20% Telco Financials Consumer Consumer Utilities XKOAI Industrials Materials Energy Services Staples Disc.
Slide 17: Sector Performance
Sector Performance 12 Months to 31 December 2012 (BKI Top 20 V’s S&P/ASX300 Accumulation Indexes) 100% TPM 90% 80% 70% 60% 50% BKI ARP Investment 40% TLS Company APA (BKI.ASX) 30% CBA WES WBC WOW 20% ANZ IVC MLT AGK CCL ALQ NAB WPL 10% S&P/ASX 300 BHP 0% QBE MTS -10% NHC -20% Telco Financials Consum
Slide 18: Benefits of investing in BKI.ASX
Benefits of investing in BKI.ASX Performance - Delivering sound long term returns to shareholders. Low Cost - Management Expense Ratio of 18bps. No Performance Fees. Dividends - Predictable fully franked income stream. Franking Credits - 30% tax rate already paid on dividend income, tax cred
Slide 19: BKI Fact Sheet
19 BKI Fact Sheet www.bkilimited.com.au ASX Code BKI.ASX Research Coverage Morningstar Listing Date December 2003 IRR Mandate Aust Listed Equities Morgan Stanley Smith Investment Sectors Diversified Barney S&P/ASX 300 Bell Potter Benchmark Evans and Partners Acc Index Total Assets $644m Baillieu Hol
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