BKI INVESTMENT COMPANY LIMITED2018 ANNUAL GENERAL MEETING

BKI is managed by Contact Asset ManagementAFSL 494045

CHAIRMAN’S ADDRESS2018 ANNUAL GENERAL MEETING

BKI is managed by Contact Asset ManagementAFSL 494045

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DISCLAIMER

This material has been prepared by Contact Asset Management on behalf of 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 Contact AssetManagement and BKI Investment Company 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 or offerto buy or sell any security. The information on which this presentation is based has been obtained from sources we believe to bereliable, but we do not guarantee its accuracy or completeness.

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

NON EXECUTIVE DIRECTORS

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Robert Millner Chairman of the BoardChairman of the Investment CommitteeMember of the Remuneration Committee

David Hall AM Independent Non-Executive DirectorChairman of the Audit CommitteeMember of the Remuneration and Nomination Committee’s

Alex Payne Non-Executive DirectorChairman of the Remuneration CommitteeMember of the Audit, Investment and Nomination Committee’s

Ian Huntley Independent Non-Executive DirectorMember of the Audit, Investment and Remuneration Committee’s

INVESTMENT MANAGER

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Tom Millner Portfolio Manager – Contact Asset ManagementMember of the Investment Committee

Will Culbert Portfolio Manager – Contact Asset ManagementMember of the Investment Committee

Rahul Tamilarasan Investment Analyst – Contact Asset Management

Jovana Gagic Investment Analyst – Contact Asset Management

COMPANY SECRETARIES

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Jaime Pinto Company Secretary – Corporate Administration Services

Larina Tcherkezian Company Secretary (Alternate) – Corporate Administration Services

COMPANY AUDITOR

Clayton Lawrence Company Auditor – MGI Sydney Assurance Services

FY2018 RESULT HIGHLIGHTS

7 *Before Special Dividend Income, # Includes Franking Credits

Management Fee

0.10%

14Yr Total Shareholder Returns#

10.3%pa

Dividend Yield#

6.9%

Income from Operating Activities

$48.1m

8%from FY2017

Net Operating Result

$44.2m

6%from FY2017

Earnings Per Share*

7.10 cents

3%from FY2017

Total Ordinary Dividend

7.325cps

1%from FY2017

Total Assets

$1.2b

11%from FY2017

Management Expense Ratio

0.16%

65% from FY2008

FY2018 RESULT HIGHLIGHTS

8 * Before Special Investment Revenue

2018 2017 Growth

Income from Operating Activities* $48.1m $44.5m 8%

Net Operating Result* $44.2m $41.8m 6%

Earnings Per Share* 7.10cps 6.93cps 3%

Total Ordinary Dividend Per Share 7.325cps 7.30cps 1%

BKI DIVIDENDS PAID TO SHAREHOLDERS

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BKI has paid out over $500m in Dividends and

Franking Credits to Shareholders

since listing in 2003

Cen

ts P

er S

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e

GENERAL OFFER

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General Offer to new investors at $1.50 per share.

There was strong support from new investors for the BKI Entitlement Offer, with the offerraising a total of $104 million.

ENTITLEMENT OFFER & SHORTFALL OFFER 1:15 non-renounceable pro-rata Entitlement Offer to eligible shareholders at an offerprice of $1.50 per share.

There was strong support with the Entitlement Offer and BKI Shortfall Offer raisingapproximately $50 million.

INVESTMENT MANAGER’S ADDRESS2018 ANNUAL GENERAL MEETING

BKI is managed by Contact Asset ManagementAFSL 494045

BENEFITS OF INVESTING WITH BKI

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Fully Franked Dividends6.9% Grossed up dividend yield#.

ASX Listed Investment CompanyA simple, transparent investment vehicle that is readily realisable.14 year track record.

Low Fee StructureManaged for 0.10%, no performance fee.

Attractive Returns14 year Total Shareholder Return of 10.3%pa.

High Conviction Portfolio46 positions, offering diversified sector exposure.

Size and ScaleApprox. 17,000 shareholders, Total Assets of $1.2b.

Research and RatingsLonsec, IIR, Morningstar, ThreeSixty.

Management Fee

0.10%

14Yr Total Shareholder

Returns

10.3% pa

Total Assets

$1.2b

Dividend Yield#

6.9%

Recommended Recommended Plus

Source: BKI, Bloomberg. Figures include reinvestment of dividends. TSR as at 30 June 2018, Dividend Yield includes FY2017 Final Dividend of 3.7000cps and FY2018 Interim Dividend of 3.625cps, and is based on share price at 30 June 2018. # Grossed up yield based on a tax rate of 30%.

NET OPERATING RESULTS

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Net Operating Result before special investmentrevenue increased from $41.8m to $44.2m,while the Net Profit Attributable to Shareholdersdecreased 1% to $45.0m.

Full Year results were mainly driven by higherdividends received from New Hope Corporation,AGL Energy, BHP Billiton, Woolworths Limited,Sydney Airport, Flight Centre and MacquarieGroup.

BKI received $0.8m in special dividend incomefrom Telstra Corporation as well as partconsideration of Tabcorp’s acquisition of TattsGroup.

$0m

$5m

$10m

$15m

$20m

$25m

$30m

$35m

$40m

$45m

$50m

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

LONG TERM DIVIDEND INCOME

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Dividends + Franking Credits received from a $10,000 investment in BKI at IPO versus Bank Quarterly Interest.

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

Source: BKI, Bloomberg. Figures include reinvestment of dividends and cash, ignores capital appreciation of BKI shares.

$273

$1,957

$0

$250

$500

$750

$1,000

$1,250

$1,500

$1,750

$2,000

$2,250

Interest Total Dividend Income (including Franking Credits)

15 Source: BKI, Bloomberg.

TRACKING THE BKI SHARE PRICE

$1.40

$1.45

$1.50

$1.55

$1.60

$1.65

$1.70

$1.75

$1.80

Pre Tax NTA BKI Share Price

3. 3.625cps BKI Interim Dividend1

2

3

1. 3.70cps BKI Final Dividend

4. ALP’s New FrankingCredits Policy Announced

2. The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry was established

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5. BKI’s Capital Raising Announced

5

6. 3.70cps BKI Final Dividend

4

16 Source: BKI, Bloomberg.

PREMIUM/DISCOUNT TO NTA

-20%

-10%

0%

10%

20%

30%

40%

$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

$1.90

Prem/Disc % Pre Tax NTA BKI Share Price

In a market that is proving difficult to find value, BKI currently represents a good opportunity forinvestors to acquire assets at a discount to the Pre-Tax NTA.

BKI PERFORMANCE SINCE LISTING

17 Source: BKI, Bloomberg. Cumulative Value assumes reinvestment of BKI dividends and franking credits

Cumulative Value (Total Shareholder Returns)

$4.03

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

PORTFOLIO POSITIONING

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Investing for the long term in dividend yield, dividend growth and earnings growth.

Investment Portfolio Purchases

1. Pendal Group

2. Tabcorp Holdings

3. Macquarie Group

4. BHP Limited

5. Ramsay HealthCare

6. Amcor Limited

7. APA Group

8. Transurban

New Portfolio Positions

1. Goodman Group

2. Harvey Norman Holdings

3. Inghams Group

4. EvansDixon

POPULATION GROWTH

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Australia’s population is now expected to grow to 40 million people by 2048

Source: Macrobusiness, ABS

INFRASTRUCTURE GROWTH

20 Source: Macromonitor, Australian Construction Outlook, Value of Work Done by Year.

Infrastructure spend is currently at levels never seen before and will continue for many years.

FUNDS GROWTH

21 Source: APRA and Deloitte Actuaries & Consultants, 2015

The growth in superannuation assets in Australia out to the year 2035, is also going to be substantial.

1Q FY2019 UPDATE2018 ANNUAL GENERAL MEETING

BKI is managed by Contact Asset ManagementAFSL 494045

PORTFOLIO POSITIONING

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Main Investment Portfolio Purchases (FY19 to date)

• BHP Limited

• Woodside Petroleum

• Platinum Asset Management

• Transurban Group

• Magellan Financial Group

• Commonwealth Bank

• Ramsay Healthcare

• Woolworths Limited

WOODSIDE PETROLEUM LIMITED (WPL.ASX)

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BKI Criteria Investment Attributes

Income WPL offers a growing income stream and an attractive grossed up dividend yield of 8.5%. Payout ratio is c. 80%.

Principal Activity WPL explores for and produces oil and gas from offshore and onshore facilities located in Australia and abroad. Its products include LNG, domestic gas, condensate and crude oil.

Financial Strength WPL is conservatively geared (15%). The company is expected to spin off significant free cash flow in the coming years.

Management WPL boasts a very capable management team led by Peter Coleman with a reasonable amount of alignment with shareholders.

Valuation Buoyant oil prices bode well for WPL. The company is investing in growth which will underpin future earnings. WPL is trading at 14 times next years earnings. We see further upside in the stock.

WOODSIDE PETROLEUM LIMITED (WPL.ASX)

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$22.50

$27.50

$32.50

$37.50

$42.50

$47.50

USD 40

USD 50

USD 60

USD 70

USD 80

USD 90

USD 100

USD 110

2013 2014 2015 2016 2017

Crude Oil Price (LHS) WPL Share Price (RHS)

WPL: Share Price vs Crude Oil Price

0.86

1.32

0.94 1.04 1.091.29

1.84

2.52

1.080.82

0.97

1.37

1.64

0.00

0.50

1.00

1.50

2.00

2.50

3.00

-10FY -9FY -8FY -7FY -6FY -5FY -4FY -3FY -2FY -1FY -0FY 1FY 2FY

WPL: Dividend History & Outlook

PORTFOLIO POSITIONINGAs at 30 September 2018

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14 Telstra Corporation 2.5%

15 Sydney Airport 2.5%

16 AGL Energy Limited 2.4%

17 IAG Limited 2.2%

18 ASX Limited 2.1%

19 Ramsay Healthcare 2.0%

20 Sonic Healthcare 1.9%

21 Invocare Limited 1.7%

22 ARB Corporation 1.5%

23 Suncorp Group 1.5%

24 Challenger Limited 1.4%

25 Flight Centre 1.2%

Cash & Cash Equivalents 7.6%

Total 85.6%

1 National Australia Bank 6.5%

2 Commonwealth Bank 6.0%

3 Westpac Banking Corp 5.5%

4 New Hope Corporation 4.9%

5 Wesfarmers Limited 4.7%

6 APA Group 4.1%

7 BHP Limited 3.9%

8 ANZ Banking Group 3.7%

9 TPG Telecom 3.5%

10 Transurban Group 3.3%

11 Macquarie Group 3.2%

12 Woolworths Limited 3.0%

13 Woodside Petroleum 2.8%

Stock % of Total Portfolio

Stock % of Total Portfolio

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Bank Hybrids 1%

Real Estate2%

Health Care5%

Consumer Discretionary

5%Materials

6%Telecommunication

Services6%

Utilities7%

Cash8%

Energy8%

Consumer Staples8%

Industrials9%

Financials14%

Banks22%

PORTFOLIO POSITIONINGAs at 30 September 2018

BKI Portfolio Performance

28 Source: Contact Asset Management, Bloomberg. As at 30 September 2018. TSR includes dividends and franking credits.

BKI’s Portfolio Performance for the yearto 30 September 2018 was 8.6%.

BKI’s 14 year Portfolio Performance was7.5% per annum as at 30 September2018.

BKI’s Total Shareholder Return includingfranking credits for 14 years was 10.3%per annum as at 30 September 2018.

8.6%

7.1%

4.8%

8.3%

6.5%

7.5%

0.0%

5.0%

10.0%

1 Year 3 Yrs pa 5 Yrs pa 7 Yrs pa 10 Yrs pa 14 Yrs pa

BKI Portfolio Performance

FY2019 Update

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The unaudited Income from OperatingActivities and Operating Result after Tax(Before Special Investment Revenue) forFY2019 is expected to be higher than lastyear.

To date, several companies have announcedSpecial Dividends or other capital initiatives.

Barring a material market correction ordownturn in broader business expectations,BKI is confident of at least maintaining theInterim and Final Ordinary Fully FrankedDividends during FY2019.

Figures referred to in the FY2019 Update are unaudited.

Company Capital Management Initiatives Announced or Expected

APA Group Additional distribution (4cps/month) if scheme implementation exceeds 31 December.

IAG Ltd Return of capital (total c. $590m).

Ingham's Group Return of Capital ($125 million).

QUBE Logistics Special dividend (2cps).

Suncorp Group Special dividend (8cps) and Return of capital (c.$600m).

TPG Telecom Potential special dividend from Vodafone merger.

Woolworths Ltd Special Dividend (10cps).

BKI INVESTMENT COMPANY LIMITED 2018 ANNUAL GENERAL MEETING

BKI is managed by Contact Asset ManagementAFSL 494045

PROXIES

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Valid proxies representing approximately 118 million sharesor 19% of the Company’s issued capital have been received.

1. ANNUAL REPORT

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Item 1To receive and consider the Annual Financial Report and the reportsof the Directors and of the Auditor for the financial year ended 30June 2018.

This item does not require voting by shareholders. It is intended to provide an opportunity forshareholders to raise questions on the reports themselves and on the performance andmanagement of the Company.

The Auditors of the Company are present and will be able to answer any questions.

2. REMUNERATION REPORT

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Resolution 1To adopt the Remuneration Report for the year ended 30 June 2018.

Note: Pursuant to section 250R(3) of the Corporations Act the vote on this Resolution is advisoryonly and does not bind the Directors or the Company. However, certain provisions of theCorporations Act, known as the “two strikes” rule, come into effect if the Remuneration ReportResolution receives “against” votes of 25% or more of the votes cast at two consecutive AnnualGeneral Meetings.

2. REMUNERATION REPORT

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Resolution 1To adopt the Remuneration Report for the year ended 30 June 2018.

Proxies received and accepted for Resolution 1 appearing on the Notice of Meeting

To adopt the Remuneration Report for the For Against Open Abstain

year ended 30 June 2018

Votes 90,041,728 6,584,240 7,875,456 1,036,837

% of Valid Available Votes 86.16% 6.30% 7.54%

3. RE-ELECTION OF DIRECTOR

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Resolution 2To re-elect by ordinary resolution as a Director, Mr RD Millner; whoceases to hold office in accordance with the Company's ConstitutionRule 6.3(c) and, being eligible, offers himself for re-election.

3. RE-ELECTION OF DIRECTOR

36

Resolution 2To re-elect by ordinary resolution as a Director, Mr RD Millner; whoceases to hold office in accordance with the Company's ConstitutionRule 6.3(c) and, being eligible, offers himself for re-election.

Re-Election of DirectorMr RD Millner

For Against Open Abstain

Votes 108,257,792 1,173,584 7,868,751 310,376

% of Valid Available Votes 92.29% 1.00% 6.71%

4. RE-ELECTION OF DIRECTOR

37

Resolution 3To re-elect by ordinary resolution as a Director, Mr IT Huntley; whoceases to hold office in accordance with the Company's ConstitutionRule 6.3(c) and, being eligible, offers himself for re-election.

4. RE-ELECTION OF DIRECTOR

38

Resolution 3To re-elect by ordinary resolution as a Director, Mr IT Huntley; whoceases to hold office in accordance with the Company's ConstitutionRule 6.3(c) and, being eligible, offers himself for re-election.

Re-Election of DirectorMr IT Huntley

For Against Open Abstain

Votes 109,035,337 483,036 7,829,079 263,051

% of Valid Available Votes 92.92% 0.41% 6.67%

5. APPROVAL TO REFRESH THE COMPANY’S15% PLACEMENT CAPACITY

39

Resolution 4That the issue of 69,751,983 fully paid ordinary shares by theCompany under the General Offer announced on 9 May 2018, on theterms and conditions summarised in the Explanatory Notes to thisNotice of Meeting and set out in the transaction specific prospectusissued by the Company dated 9 May 2018, is ratified for all purposesincluding for the purpose of ASX Listing Rule 7.4.

5. APPROVAL TO REFRESH THE COMPANY’S15% PLACEMENT CAPACITY

40

Resolution 4That the issue of 69,751,983 fully paid ordinary shares by the Company under theGeneral Offer announced on 9 May 2018, on the terms and conditions summarised inthe Explanatory Notes to this Notice of Meeting and set out in the transaction specificprospectus issued by the Company dated 9 May 2018, is ratified for all purposesincluding for the purpose of ASX Listing Rule 7.4.

APPROVAL TO REFRESH THE COMPANY’S15% PLACEMENT CAPACITY

For Against Open Abstain

Votes 104,344,076 4,799,945 7,929,043 537,439

% of Valid Available Votes 89.13% 4.10% 6.77%

6. OTHER MATTERS

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To consider any other matters that may be brought before themeeting in conformity with the Company’s Constitution.

I now move to the final part of the meeting and there being noother business of which due notice has been given, I would liketo thank shareholders for their attendance and declare themeeting closed.

CONCLUSION OF THE MEETING