Annual Report

Review of Group Entities

For the year ended 30 June 2016 BKI reported a net operating result before special investment revenue of

$41.2 million, an increase of 0.7% over 2015.

BKI’s net operating result was mainly driven by higher dividend distributions from Transurban, APA Group, Sydney

Airports, Macquarie Group, TPG Telecom and Ramsay Healthcare. Lower dividends were received from BHP Billiton,

Woolworths, Woodside Petroleum, ANZ Banking Group and Suncorp Group, while revenues from bank deposits

and investments held for trading were also lower. BKI also received special dividend income for the year from New

Hope Corporation, Milton Corporation, Suncorp Group and IAG Group.

BKI’s net investment for the year was approximately $76 million, with major long term investments made in

companies including: Commonwealth Bank, ANZ Banking Group, Westpac Banking Corporation, National Australia

Bank, Macquarie Group, Qube Logistics, Telstra Corporation, Ramsay Healthcare, Caltex Australia, APA Group

and Sydney Airports. The main disposals from BKI’s investment portfolio included Bendigo and Adelaide Bank,

Clydesdale Bank, RioTinto Limited and the partial sell-down of the position in BHP Billiton.

BKI’s total shareholder returns for 5 years, 10 years and 12 years were above the ASX 300 Index by 3.5% per annum,

2.0% per annum and 1.2% per annum respectively.

BKI has paid total fully franked dividends for the year of 7.25 cents per share, an increase of 0.7%. As at 31 July

2016, BKI’s fully franked dividend yield was 4.4% (based on the immediate past 12 month rolling dividend and

share price of $1.63), while the grossed up yield was 6.4% (based on a tax rate of 30%).

WHSP has equity accounted BKI’s result for the 12 months to 30 June 2016. BKI contributed a net profit of

$4.5 million to the Group (2015: $4.8 million 11.1% held).

BKI Investment Company Limited

Associated entity:

10.3% held

Dividends paid to WHSP:

$4.5 million

Total Market Capitalisation:

$975 million

Value of WHSP’s Holding:

$101 million

ASX code:

BKI

NETPROFIT

CONTRIBUTED

TOTHEGROUP

$4.5m

12 Year Total

Shareholder Return

11.3%

As at 30 June 2016

Management Expense Ratio

0.16%

As at 30 June 2016

Dividend Yield

6.6%

*Grossed up, as at 30 June 2016

Market Cap

$946m

As at 30 June 2016

Shareholders

14,358

# Total Shareholder

Return including

Franking Credits

Assumes a tax rate

of 30%