Presentation to Shareholders Presentation to Shareholders

DisclaimerDisclaimer

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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 financialcircumstances or investment objectives. This is general investment advice only and does not constitute advice to any person. Theopinions within this document are not intended to represent recommendations to investors, they are the view of BKI InvestmentCompany Limited as of this date and are accordingly subject to change.

Information related to any company or security is for information purposes only and should not be interpreted as a solicitation ofoffer to buy or sell any security. The information on which this presentation is based has been obtained from sources we believeto be reliable, but we do not guarantee its accuracy or completeness.

Investors should consult their financial adviser in relation to any material within this document.

AgendaAgenda

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Topics Page

1. Listed Investment Company 4

2. BKI Overview 9

3. BKI Portfolio 17

4. BKI Performance 23

5. Appendix 26

1. Listed Investment Company1. Listed Investment Company

Listed Investment CompanyListed Investment Company

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What is a Listed Investment Company (LIC)

Listed on the Australian Securities Exchange (BKI.ASX)

BKI is an investment vehicle that invests in a diversified portfolio ofAustralian shares, trusts and interest bearing securities.

BKI is a company as opposed to a managed trust. BKI is internallymanaged and thus does not charge external portfolio managementor performance fees.

6

Transparency and ComplianceTop 25 investments disclosed monthly. ASX Listing Rules, Continuous Disclosure requirements.

SimplicityAn investment in BKI.ASX provides administration simplicity.Single shareholding; Two dividend statements per annum.

Advantages of aListed Investment Company

Advantages of aListed Investment Company

LiquidityBuy/Sell shares on the Australian Securities Exchange. Settlement in T+3 Days. BKI has over 13,000 shareholders.

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Cost and StructureBKI is a Company with Internalised Management.

Management Expense Ratio (MER) of only 0.17%.

Size and StrengthBKI’s Market Capitalisation is $860m as at 30 April 2014.BKI has no Debt.

DiversificationAn investor in BKI.ASX gains exposure to most sectors of themarket through well managed, dividend paying companies.

Advantages of aListed Investment Company

Advantages of aListed Investment Company

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PerformanceBKI has delivered sound long term shareholder and portfolioperformance.

Capital ManagementIn the 10 years of listing, BKI has distributed 5 Fully FrankedSpecial Dividends to shareholders.

Dividend HistoryInterim Ordinary Dividends have grown by 64% from 2.10cpsin 1H2005 to 3.45cps in 1H2014.

Advantages of aListed Investment Company

Advantages of aListed Investment Company

2. BKI Overview2. BKI Overview

Business OverviewBusiness Overview

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BKI is a research driven, active equities manager investing for thelong term in profitable, high yielding, well managed companies.

We are a closed end company and do not charge external portfoliomanagement or performance fees.

Our aim is to create wealth for BKI shareholders, through anincreasing fully franked dividend and capital growth.

BKI’s 1HFY2014 Result included increased Profits, DividendDistribution and Portfolio Valuation. The MER was reduced furtherand we grew the Investment Team.

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Premium/Discount Analysisas at 30 April 2014

Premium/Discount Analysisas at 30 April 2014

-25.0%

-15.0%

-5.0%

5.0%

15.0%

25.0%

35.0%

$0.50$0.60$0.70$0.80$0.90$1.00$1.10$1.20$1.30$1.40$1.50$1.60$1.70$1.80

Prem/Disc % Pre Tax NTA BKI Share Price

Cen

ts p

er S

hare

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2 2.1 2.22.5 2.5 2.6 2.7

3 3 3 3 2.5 2.75 3 3 3.2 3.2 3.25 3.4 3.45

10.5

0.5

1 0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Ordinary Dividends Special Dividends

Dividend Distributions2004 - 2014

Dividend Distributions2004 - 2014

Dividends + Franking Credits Dividends + Franking Credits $ Au

stralian Dollars

Source: BKI Investment Company Limited; IRESS.

Dividends and Franking Credits received from a $10,000 Investment in 2004 V’s Bank Quarterly Interest.

Highlights the opportunity of a fully franked dividend in a falling interest rate environment.

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0

200

400

600

800

1,000

1,200

1,400

1,600

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14

BKI Dividend BKI Franking Interest

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BKI Internally Managed

0.69% 0.71%

0.56%

0.46% 0.46%

0.31%

0.19% 0.18% 0.18% 0.19%0.17%

0.10%

0.20%

0.30%

0.40%

0.50%

0.60%

0.70%

0.80%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2013Dec

Management Expense RatioManagement Expense Ratio

BKI MER history since inception

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Experience and AlignmentExperience and Alignment

1Common to R.Millner and T.Millner are 6,954,579 shares held in related companies and trusts in which both hold beneficial interests.

Team Member Qualifications Position InvestmentExperience

Tenure With BKI

Equity Ownership 1

Robert Millner FAICD ChairmanInvestment Committee 30 yrs 10 yrs 8,156,936

David Hall, AM FCA, FAICD Non Executive DirectorChairman Audit Committee 34 yrs 10 yrs 268,906

Alex Payne B.Comm, Dip Cm, FCPA, FCIM

Non Executive DirectorInvestment Committee 26 yrs 10 yrs 277,130

Ian Huntley BA Non Executive DirectorInvestment Committee 36 yrs 5 yrs 11,224,980

Tom Millner B.Des (Ind), GDipAppFin, F.Fin, GAICD

CEOInvestment Committee 12 yrs 10 yrs 7,233,717

Will Culbert B.Bus, GDipAppFin, F.Fin, M.Comm

Senior Investment Analyst 15 yrs 0.5 yrs 73,277

Jaime Pinto B.Comm, CA Company Secretary 16 yrs 2 yrs 32,296

TOTAL 27,267,242

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Key Differentiators Washington H Soul Pattinson and Company Limited (WHSP) - In 2009 WHSP increased

their shareholding in BKI to become the largest shareholder (currently holding 11.9% of BKI shares). Listed in 1903, WHSP is the second oldest listed company on the ASX and holds investments worth in excess of $4.7bln.

WHSP has a significant awareness and understanding of the business world through itsdiverse investment portfolio. WHSP’s long term, patient investment philosophy is dispersedacross many industries including, Building Products, Property, Metals, Mining, Energy,Logistics, Retail, Heathcare, Telecommunications, Financial Services, and Agriculture.

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Key DifferentiatorsKey Differentiators

3. BKI Portfolio3. BKI Portfolio

Code Company Name                   % of Portfolio

1 CBA Commonwealth Bank 9.3%2 NAB National Australia Bank 9.2%3 WBC Westpac Banking Corp 8.3%4 BHP BHP Billiton Limited 6.3%5 TLS Telstra Corporation 5.3%6 NHC New Hope Corporation 5.2%7 ANZ ANZ Banking Corporation 4.9%8 WES Wesfarmers Limited 4.5%9 WOW Woolworths Limited 3.8%10 TPM TPG Telecom Limited 3.0%11 AGK AGL Energy Limited 2.3%12 APA APA Group 2.3%13 WPL Woodside Corporation 2.1%14 ALQ ALS Limited 1.8%15 IAG Insurance Australia Group 1.7%16 SUN Suncorp Group Limited 1.4%17 IVC Invocare Limited 1.3%18 ARP ARB Corporation 1.2%19 BOQ Bank of Queensland 1.1%20 BEN Bendigo Bank Limited 1.1%21 CCL Coca Cola Amatil 1.1%22 MLT Milton Corporation 1.0%23 TCL Transurban Limited 1.0%24 RHC Ramsay Healthcare 1.0%25 PPT Perpetual Limited 1.0%

Cash & Cash Equivalents 4.9%Total 86.1%

Top 25 ShareholdingsAs at 30 April 2014

DiversificationBKI’s portfolio is comprised of dividend paying, well managed companies. Exposure to most sectors of the market.

High ConvictionBenchmark Unaware – BKI’s long term strategy of investing in dividend paying stocks means the portfolio is not aligned with an index.

TransparencyTop 25 and Cash account for ~86% of BKI’s total portfolio. Disclosed monthly with NTA release to the ASX.

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Sector Over/UnderweightsSector Over/Underweights5.1% 4.9%

3.9%3.1%

1.9% 1.4%0.7%

‐0.9% ‐1.0%‐1.9%

‐6.9%

‐10.2%‐12.0%

‐10.0%

‐8.0%

‐6.0%

‐4.0%

‐2.0%

0.0%

2.0%

4.0%

6.0%Ca

sh

Fina

ncials

Utilities

Telco

Energy

Consum

er Staples

Indu

stria

ls

Info Tech

Consum

er Disc

Health

 Care

Real Estate

Materials

BKI Portfolio: Active Weight by Sector

Portfolio ValuationPortfolio Valuation

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0

100

200

300

400

500

600

700

800

900

1,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014April

   Investment Portfolio    Cash

$ M

illio

ns

BKI is a research driven, active equities manager investing for the long term in profitable,high yielding, well managed companies. Stock selection is bottom up, focusing on themerits of individual companies rather than market and economic trends.

BKI is focused on investing in stocks using the 5 basic fundamentals below as part of thestock selection process:

1. Income - Dividend Yields, Franking Credits, Pay Out Ratios

2. Principal Activity - Sustainable Business Model, Competitive Advantage

3. Debt Levels - Gearing Ratios, Net Interest Coverage

4. Management and Board - Share Ownership, Board Meeting Attendance, History of Creating Shareholder Wealth

5. Earnings and Valuations - Earnings Profiles, PE Multiples, EV/EBITDA Multiples21

Stock Selection ProcessStock Selection Process

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Purchases / SalesPurchases / Sales

Recent PurchasesBKI raised $107.0m through a Placement and Entitlement Offer in Sept/Oct 2013. During the first half of FY2014 major investments have included:

ANZ Bank Insurance Australia GroupWestpac Bank National Australia Bank APA Group Suncorp GroupTelstra Corporation Wesfarmers Limited

New Positions Duet Group Primary Health CareIOOF Holdings Toll HoldingsMaxitrans Industries

Recent SalesQBE Insurance Group Recall HoldingsTabcorp Holdings Metcash Limited

4. Performance4. Performance

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Source: BKI Investment Company Limited, IRESS. Portfolio Returns are measured by change in pre tax NTA and are after all operating expenses, provision and payment of both income and capital gains tax and the reinvestment of dividends. Total Shareholder Returns include reinvestment of dividends. Past performance is not indicative of future performance.

BKI Performanceas at 30 April 2014

BKI Performanceas at 30 April 2014

BKI Portfolio Returns are

measured after all operating

expenses, provision and

payment of income and capital gains

tax.

BKI Performance 1 Year 3 Yrs 5 Yrs 7 Yrs 10 Yrsas at 30 April 2014 (pa) (pa) (pa) (pa)

S&P/ASX 300 ACC INDEX (XKOAI) 10.1% 8.8% 12.3% 2.6% 9.4%

BKI Total Shareholder Returns 14.9% 15.3% 16.0% 7.2% 10.8%

BKI Share Price Outperformance V's XKOAI 4.8% 6.5% 3.7% 4.6% 1.4%

BKI Portfolio Performance 5.9% 9.5% 12.2% 4.0% 9.2%

BKI Portfolio Outperformance V's XKOAI -4.2% 0.7% -0.1% 1.4% -0.2%

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Total Shareholder Returnsas at 30 April 2014

Total Shareholder Returnsas at 30 April 2014

Total Shareholder Returns exclude the benefit of franking credits being passed on from BKI

to Shareholders.

5. Appendix5. Appendix

ASX Code BKI.ASXListing Date December 2003Mandate Aust Listed EquitiesInvestment Sectors Diversified

Benchmark S&P/ASX 300 Acc Index

Total Assets $861mDebt NilManagement Expense Ratio 0.17%Performance Fee NilHistorical Dividend Yield 4.2%Percentage Franked 100%Grossed Up Yield 6.0%Dividend Distribution Frequency Half YearlyDividend Payout Policy 90%‐95%Dividend Reinvestment Plan ActiveShare Purchase Plan Inactive

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Research Coverage MorningstarMorgan Stanley 

Bell PotterEvans and Partners

Baillieu Holst

Approved Product List Dixon AdvisoryBaillieu Holst

Morgan Stanley

Model Portfolio Dixon AdvisoryBaillieu Holst

AIOFP

Investment Menu MLC Wrap SuperMasterKey Custom Super

BKI Fact SheetBKI Fact Sheetwww.bkilimited.com.au

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For more information: www.bkilimited.com.auFor more information: www.bkilimited.com.au