Bki Investment : 30 June 2017 Appendix 4E and Annual Report

Office Level 2, 160 Pitt Street Mall‌

Sydney NSW 2000

Telephone [phone]

Fax [phone]

Web www.bkilimited.com.au

ABN 23 106 719 868

BKI Investment Company Limited

ASX APPENDIX 4E - PRELIMINARY FINAL REPORT 30 JUNE 2017‌

The reporting period is the year ended 30 June 2017 with the previous corresponding period being the year ended 30 June 2016

RESULTS FOR ANNOUNCEMENT TO THE MARKET

Jun 2017	Jun 2016
Change		$'000	$'000
Revenue performance
Total income - ordinary	Up	1.4%	to	44,462	from	43,833
Total income - special	Up	256.8%	to	3,861	from	1,082
Total income from ordinary activities	Up	7.6%	to	48,323	from	44,915
Profits
Net operating result before special dividend income	Up	1.5%	to	41,787	from	41,170
Special dividend income	Up	256.8%	to	3,861	from	1,082
Net profit from ordinary activities after tax attributable to shareholders	Up	8.0%	to	45,648	from	42,252
Net profit attributable to shareholders	Up	8.0%	to	45,648	from	42,252
Portfolio
Total portfolio value (including cash & receivables)	Up	7.7%	to	998,617	from	926,993
Earnings per share	Cents	Cents
Basic earnings per share before special dividend income	Down	3.2%	to	6.93	from	7.16
Basic earnings per share after special dividend income	Up	3.0%	to	7.57	from	7.35
Dividends
Interim	Steady	at	3.60	from	3.60
Final	Up	1.4%	to	3.70	from	3.65
Full year total	Up	0.7%	to	7.30	from	7.25

RESULTS FOR ANNOUNCEMENT TO THE MARKET

Explanation of Operating Results

Net Operating Result before special dividend income increased 1.5% to $41.8m, but an increase in issued capital resulted in Basic Earnings per Share before special dividend income decreasing 3.2% to 6.93 cps. Special dividend income for the year totalled $3.86m, increasing Basic Earnings per Share after special dividend income to 7.57cps and Net Profit attributable to shareholders to $45.65m.

The Net Operating Result was supported by increased dividends from AGL Energy, APA Group, Transurban Limited, Macquarie Group, Sydney Airports, TPG Telecom and Ramsay Healthcare. Lower dividends received from BHP Billiton, Woolworths Limited, Woodside Petroleum, ANZ Banking Group and Primary Healthcare negatively impacted the result. Revenues from bank deposits and investments held for trading were again lower than the corresponding period.

BKI received $3.9m in special dividend income from participating in the Telstra Corporation off market buy back. This compares to $1.1m of special dividends received in 2016FY.

NTA Backing

30 June 2017	30 June 2016
Net Tangible Asset backing per ordinary share before tax	$1.61	$1.55
Net Tangible Asset backing per ordinary share after tax	$1.52	$1.47

Additional Dividend Information

The Directors have declared a final dividend of 3.70 cents per share fully franked at the tax rate of 30%, which will be paid on 23 August 2017. The Record date for determining entitlements to the dividend will be 7 August 2017.

The Company has a Dividend Reinvestment Plan in operation offering shareholders the opportunity to receive additional shares in the Company instead of receiving cash dividends. No discount will apply to the Dividend Reinvestment Plan.

The last date for the receipt of an election notice to participate in the Dividend Reinvestment Plan is 8 August 2017.

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

Other Information

This report is based on audited accounts. A copy of the 2017 Annual Report, which includes the audited accounts, is attached to this Appendix 4E.

BKI INVESTMENT COMPANY LIMITED‌ 2017

ANNUAL REPORT

For year ended 30 June 2017