Results Webcast Presentation

29 July 2020


The Manager
ASX Market Announcements
Australian Securities Exchange
Exchange Centre
Level 4
20 Bridge Street
Sydney NSW 2000

Electronic Lodgement



Australian Foundation Investment Company Limited (AFIC)
Results Webcast Presentation

Please find attached the presentation to be given at the Shareholder Teleconference/
Webcast being held today, Wednesday 29 July 2020 at 4.00 p.m. (AEST).

To join the webcast please use the below link (this link is available on the afi.com.au
website).

Webcast Link: Please register for the results webcast here (This link will open
directly in your internet browser).

Alternatively to join via the teleconference, please use the details below:

Telephone: 1800 175 864 (free call within Australia)
1300 212 365 (mobile, free call within Australia)
+61 2 8373 3550 (outside Australia)
Conference ID: 7635104

Joining the Conference Call:

1. In the 10 minutes prior to the call start time, call the appropriate dial-in number.
2. Enter the Event Plus passcode 7635104, followed by the pound or # key and leave
any information requested after the tone. You will be joined automatically to the
conference. During the call you can indicate if you would like to ask a question by
pressing (*1) on your telephone keypad and wait for your name to be announced.


International Dial-In Numbers will be available via the Company’s website.

The shareholder presentation material will be available on our website.

ASX Release authorised by the Company Secretary, Matthew Rowe.

AFIC 2019/20 Results
Shareholder Presentation
29 July 2020

AFIC Results 2019/20
Disclaimer
Australian Foundation Investment Company Limited and its subsidiary AICS (AFSL 303209), their related
entities and each of their respective directors, officers and agents (together the Disclosers) have prepared
the information contained in these materials in good faith. However, no warranty (express or implied) is made
as to the accuracy, completeness or reliability of any statements, estimates or opinions or other information
contained in these materials (any of which may change without notice) and to the maximum extent permitted
by law, the Disclosers disclaim all liability and responsibility (including, without limitation, any liability arising
from fault or negligence on the part of any or all of the Disclosers) for any direct or indirect loss or damage
which may be suffered by any recipient through relying on anything contained in or omitted from these
materials.
This information has been prepared and provided by AICS. To the extent that it includes any financial product
advice, the advice is of a general nature only and does not take into account any individual’s objectives,
financial situation or particular needs. Before making an investment decision an individual should assess
whether it meets their own needs and consult a financial advisor.
2

AFIC Results 2019/20
Result Summary
* Assumes a shareholder can take full advantage of the franking credits.
3

AFIC Results 2019/20
Profit per share – changes from full year result in 2019 to 2020
•Westpac no interim dividend
•NAB decreased interim dividend
•ANZ no interim dividend
•Sydney Airport no interim distribution
•Transurbanreduced distribution
•Alumina reduced dividend
•James Hardieno final dividend
4

AFIC Results 2019/20
Market and Selected Sector Performances
S&P/ASX 200 Index
Sector Performance
5

AFIC Results 2019/20
Portfolio Performance (including the full benefit of franking
and after costs) – per annum returns to 30 June 2020
6

AFIC Results 2019/20
Major changes for the year
PurchasesSales
Cochlear included participation in placementDulux because of a takeover
7

AFIC Results 2019/20
RankCompany% ofPortfolio
1
CSL 8.5%
2
Commonwealth Bank of Australia7.7%
3
BHP Group* 7.0%
4
Wesfarmers 4.6%
5
TransurbanGroup 4.6%
6
Westpac Banking Corporation4.0%
7
Macquarie Group 3.6%
8
National Australia Bank 3.3%
9
Woolworths Group 3.0%
10
Rio Tinto* 2.7%
Top 40 holdings as at 30 June 2020
* Options were outstanding against part of the holding.
8

AFIC Results 2019/20
RankCompany% ofPortfolio
11
Amcor2.5%
12
Australia and New Zealand Banking Group 2.4%
13
Telstra Corporation* 2.4%
14
James HardieIndustries2.0%
15
Ramsay Health Care 1.9%
16
Brambles 1.9%
17
Sonic Healthcare 1.7%
18
Sydney Airport1.7%
19
Coles Group 1.7%
20
Mainfreight1.7%
Top 40 holdings as at 30 June 2020 con’t.
* Options were outstanding against part of the holding.
9

AFIC Results 2019/20
RankCompany% ofPortfolio
21
Fisher & Paykel Healthcare1.6%
22
Resmed1.5%
23
QubeHoldings 1.4%
24
Goodman Group1.4%
25
Woodside Petroleum1.4%
26
Seek1.3%
27
ASX1.3%
28
Carsales.com1.3%
29
Oil Search1.2%
30
Xero1.1%
Top 40 holdings as at 30 June 2020 con’t.
10

AFIC Results 2019/20
RankCompany% ofPortfolio
31
NEXTDC1.1%
32
APA Group1.0%
33
Reece1.0%
34
IRESS0.9%
35
Cochlear0.9%
36
ARB Corporation0.9%
37
REA Group0.8%
38
Computershare0.8%
39
Cleanaway Waste Management 0.8%
40
Diversified Untied Investment 0.7%
Top 40 holdings as at 30 June 2020 con’t.
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AFIC Results 2019/20
Closing remarks
• Valuations are high, driven by low
interest rates and government stimulus
• Small number of stocks driving these
valuations – particularly Information
Technology, Healthcare
• Full impact of COVID-19 on company
earnings and dividends still to play out
• We believe the portfolio is well
positioned given the quality of holdings
• We are content to be patient
12