BKI Investment : FY22 Preliminary Final Report & Annual Report

BKI INVESTMENT COMPANY LIMITED

onlyABN: 23 106 719 868

useAppendix 4E - Preliminary Final Report

30 June 2022

personalLodged with the ASX under Listing Rule 4.2A

For The reporting period is the year ended 30 June 2022 with the previous corresponding period being the year ended

30 June 2021

		BKI Investment Company Limited
		Year ended 30 June 2022
only
		Appendix 4E - Preliminary Final Report
		Results for Announcement to the Market
						June 2022		June 2021
				Change		$'000		$'000
	Revenue Performance:
	use	Up	58%	to	63,390	from	40,154
	Total revenue - Ordinary
	Special investment revenue	Up	4,079%	to	42,713	from	1,022
	Total revenue	Up	158%	to	106,103	from	41,176
	Profits:
	Operating result after tax - before special investment
	personal	Up	63%	to	58,086	from	35,660
	revenue and applicable tax
	Speci l investment revenue net of applicable tax	Up	4,236%	to	42,713	from	985
	Net profit from ordinary activities after tax attributable to				100,799
	shareholders	Up	175%	to	from	36,645
	Net profit attributable to shareholders	Up	175%	to	100,799	from	36,645
						June 2022		June 2021
				Change		Cents		Cents
	Earnings per share:
	Basic arnings per share before special investment
	revenue and applicable tax	Up	62%	to	7.84	from	4.83
	Basic earnings per share after special investment revenue	Up	173%	to	13.60	from	4.97
	Dividends per share:
	Interim - Ordinary, fully franked				3.50		2.00
	Interim - Special, fully franked				0.50		nil
	inal - Ordinary, fully franked				3.65		3.00
	For
	inal - Special, fully franked				1.00		nil

BKI Investment Company Limited Year ended 30 June 2022

onlyAppendix 4E - Preliminary Final Report Results for Announcement to the Market

Explanation of Operating Results

The Australian economy has greatly benefited from a variety of stimulus packages over the last couple of years. This created usea huge tailwind to households, consumers and businesses across Australia and the world. These strong economic conditions pr vailed throughout FY2022 which saw company profits improve and dividends paid by Australian equities increase

ignificantly throughout the year.

During the second half of FY2022 we have been faced with ongoing challenges including, the war in Ukraine, labour shortages, localised flooding, inventory shortages and disruptions to energy supply. These issues impacted pricing and availability of almost all goods and services within Australia, leading to a sharp rise in inflation.

BKI's Total Ordinary Revenue was up 58% to $63.4 million. The result was boosted by higher ordinary dividends received personalover the last year from Woodside Energy (formerly Woodside Petroleum), New Hope Corporation, BHP Group, Rio Tinto,

Commonwealth Bank, National Australia Bank, Transurban Group and Macquarie Group.

BKI realised $0.6 million from the trading portfolio, after participating in some minor trading positions. Due to the extremely low interest rates on offer, BKI's interest received was only $0.1 million, down 29% on FY2021. BKI's Net Operating Profit After Tax, before special investment revenue, was a record $58.1 million, an increase of 63% over the previous corresponding peri d. BKI's basic earnings per share before special investment revenue was 62% higher to 7.84 cents per share.

Special Investment Revenue was significantly higher in FY2022, rising from $1.0 million to $42.7 million. Special Dividends were received from New Hope Corporation, Telstra Corporation, Smart Group Limited and Rio Tinto Limited. BKI participated in off market buy-backs conducted by Commonwealth Bank, Woolworths Limited and Metcash Limited. Also, during the p riod, BKI received a fully franked in-specie distribution following the Woodside Energy acquisition of BHP Petroleum Int rnational Pty Ltd. The distribution was non-cash with BKI receiving additional Woodside Energy shares.

This significant lift in Special Investment Revenue resulted in BKI's Net Operating Profit After Tax, including special investment revenue for FY2022 of $100.8 million, up 175% on the previous corresponding period and a record for the company. BKI's FY2022 basic earnings per share, including special investment revenue, increased 173% to 13.60 cents per

Forsha e from 4.97 cents per share in FY2021.

T tal Shareholder Return including franking credits for the year to 30 June 2022 was positive 8.7%, compared to the S&P/ASX 300 Accumulation Index (franked at 80%), which returned negative 5.3% over the same period, an outperformance of 14.0%. BKI's Total Shareholder Return including Franking Credits for 15 years was positive 7.6% per annum compared to the S&P/ASX 300 Accumulation Index (franked at 80%), which returned positive 6.3%.

BKI's Net Portfolio Return (after all operating expenses, provision and payment of both income and capital gains tax and the reinvestment of dividends) for the year to 30 June 2022 was positive 1.5%.

$1.58

$1.59

$1.66

$1.71

June 2022

June 2021

BKI Investment Company Limited Year ended 30 June 2022

onlyAppendix 4E - Preliminary Final Report Results for Announcement to the Market

NTA Backing

useNet Tangible Asset backing per ordinary share before tax Net Tangible Asset backing per ordinary share after tax

personalAdditional Dividend Information

The Directors declared a final ordinary 2022FY dividend of 3.65 cents per share and a special dividend of 1.0 cents per share, both fully franked at the tax rate of 30%, which will be paid on 30 August 2022. The Record date for the dividend is 10 August 2022.

The Company has a Dividend Reinvestment Plan in operation offering shareholders the opportunity to receive additional hares in the Company instead of receiving cash dividends. No discount will apply to the Dividend Reinvestment Plan. The la t date for the receipt of an election notice to participate in the Dividend Reinvestment Plan is 11 August 2022.

Shareholders can update their election notices electronically by following the link on the Share Registry page of the BKI Inv stment Company Limited website. (www.bkilimited.com.au)

Other Information

This report is based on audited accounts. A copy of the 2022 Annual Report, which includes the audited accounts, is attached

to this Appendix 4E. For

For personaluse only

BKI INVESTMENT COMPANY LIMITED

ABN: 23 106 719 868

Annual Report

for the year ended 30 June 2022