Half Yearly Report and Accounts as at 31 December 2021

1

RESULTS FOR ANNOUNCEMENT TO THE MARKET
The reporting period is the half-year ended 31 December 2021 with the previous corresponding
period being the half-year ended 31 December 2020. The results have been reviewed by the
Company’s auditors.
Results for announcement to the market
•Revenue from operating activities was $161.8 million, up $65.6 million or 68.1% from the
previous corresponding period. This excludes capital gains on investments.
•Profit after tax was $146.0 million (up 73.5% on the previous corresponding period’s $84.1
million).
•Profit after tax attributable to members was $146.0 million (up 74.5% on the previous
corresponding period’s $ 83.7 million).
•The interim dividend is 10 cents per share, fully franked, the same as last year. The dividend
will be paid on 25 February 2022 to ordinary shareholders on the register on 10 February
2022 and the shares are expected to commence trading on an ex-dividend basis on 9
February 2022. There is no conduit foreign income component of the dividend.
•A Dividend Reinvestment Plan (DRP) and Dividend Substitution Share Plan (DSSP) are
available, the price for which will be set at a 5% discount to the Volume Weighted Average
Price of the Company’s shares traded on the ASX and Chi-X automated trading systems
over the five trading days from when the shares trade ex-dividend. The last date for the
receipt of an election notice for participation in the DRP & DSSP is 5.00 pm (Melbourne
time) on 11 February 2022.
•The final dividend for the 2021 financial year was 14 cents per share (fully franked), and it
was paid to shareholders on 31 August 2021.
•Net tangible assets per share before any provision for deferred tax on the unrealised gains
on the long-term investment portfolio as at 31 December 2021 were $7.76, up from $6.64 at
31 December 2020 (both before allowing for any announced dividends).
2

Profit Up Strongly as Income Recovers, Portfolio Outperforms
Half Year Report to 31 December 2021
AFIC’s investment focus is on a diversified portfolio of Australian equities, seeking to
provide attractive income and capital growth to shareholders over the medium to long
term. This is achieved at a low cost, with lower volatility than the market, and with low
portfolio turnover which produces tax effective outcomes for shareholders.
Half Year Profit was up by 73.5% to $146.0 million following on from the recovery in
dividend income. I n the corresponding period last year, Half Year Profit was $84.
1
m
illion.
Investment income for the six months to 31 December 2021 was $159.4 million, up fro
m
$93.
8 million in the corresponding period last year. The biggest increases came fro
m
t
he major banks, Macquarie Group, and BHP and Rio Tinto as a result of previous very
strong iron ore prices. A number of companies in the portfolio also reinstated dividends
during the half year, which included James Hardie Industries and Ramsay Health Care.
The interim dividend for the half year is 10 cents per share fully franked, the same as
the previous corresponding period
.
The six-month portfolio return including franking was 6.9% compared with the S&P/ASX
200 I
ndex return including franking of 4.6% over the same period.
For the 12 months to 31 December 2021, the portfolio return including franking wa
s
22.
4%. The return from the S&P/ASX 200 Accumulation Index over this period includi
ng
franking was 18.7%.
The management expense ratio for AFIC is 0.15% (annualised), with no performance fees.
The level of economic activity has improved materially from the pandemic-induced low
s
of
mid 2020 putting interest rate increases back on the agenda. While the timing of
these increases remains uncertain US interest rates have already started to m
ove
upwards leading to increased volatility in equity markets. We remain well positioned to
pur
chase our preferred companies should attractive opportunities present themselves
in these conditions.

Portfolio performance (including the full benefit of franking) – to 31 December 2021

Per annum returns other than for six months. AFIC’s performance numbers are after costs.
3

Portfolio Performance


The Australian equity market continued to deliver gains in the six months to 31 December 2021
following on from the very strong rebound in markets in the first six months of the calendar year.
While market valuations remained higher than historical levels, as a result of continued low interest
rates, corporate earnings growth remained strong supported by improved economic activity.

The strengthening demand environment is producing supply chain challenges in many industries
with rising costs leading to a meaningful increase in reported inflation. In the near term, operating
costs are likely to remain elevated making it more challenging for companies to sustain recent
strong earnings growth. A feature of our focus on quality businesses is identifying those companies
displaying attributes of pricing power over the long term. Companies owning unique assets with a
market leadership position are best able to pass through rising costs. Core portfolio holdings are
represented by high-quality companies we consider relatively well positioned to pass through any
cost increases.

Reflecting the quality of companies in the portfolio during these uncertain times, AFIC’s portfolio
was up 6.9% for the six months to 31 December 2021 compared with the S&P/ASX 200
Accumulation Index, which was up 4.6% over the same period. These figures include the benefit of
franking credits, with AFIC’s performance numbers after costs.

Companies in the portfolio that contributed strongly to returns through the six-month period were
Macquarie Group, Sydney Airport, Mainfreight, James Hardie Industries and Goodman Group.
AFIC is an investor with a long term focus. Ten-year portfolio return figures to 31 December 2021
are 12.5% versus 12.4% for the S&P/ASX 200 Accumulation Index over the same period. These
figures include the full benefit of franking, with AFIC’s return after costs. This performance has
been achieved with l ower portfolio volatility than the market and more consistent dividend income.
Portfolio Adjustments

Short term volatility provided attractive prices to increase our holdings in Transurban, Coles Group,
CSL, Goodman Group, Domino’s Pizza Enterprises and BHP, where we consider long term
prospects for all these companies remains strong. Transurban will be a significant beneficiary as
economies gradually reopen, leading to increased traffic across its road transport network, while
improved mobility will enhance plasma collection volumes for CSL.

We initiated positions in JB Hi-Fi and WiseTech Global. JB Hi-F i is the largest consumer
electronics retailer in Australia and New Zealand. While primarily providing attractive income to the
portfolio, we expect the consumer electronics category to continue delivering meaningful growth.
WiseTech Global is a leading developer and provider of software solutions to the global logistics
industry facilitating customers to digitise their freight forwarding operations.
W
e exited Qube Holdings, APA Group, Lifestyle Communities, Origin Energy and Altium, considering
each company’s long term prospects increasingly challenged as competitive intensity increases. We
also exited our holding in Milton Corporation as a result of the takeover by Washington H. Soul
Pattinson.
Outlook

Our strategy of owning a diversified portfolio of quality companies that are well placed to deliver
earnings growth over the medium to long term remains appropriate. While market volatility may
emerge, short term periods of uncertainty often present good buying opportunities for investors
focused on a company’s long term prospects. The portfolio is soundly positioned despite the
spectre of rising interest rates and heightened global uncertainty.

Please direct any enqu
iries to:
Mark Freeman Geoff Driver
Managing Director General Manager
(03)9225 2122(03)9225 2102

24 January 2022
4

TOP 5 TRANSACTIONS IN THE INVESTMENT PORTFOLIO
Acquisitions
Cost
($’000)
Santos (as a result of the merger with Oil Search) 72,660
Transurban Group (including participation in entitlement offer) 65,548
JB Hi-Fi 47,191
Coles Group 35,000
CSL (participation in placement) 30,214
Disposals
Proceeds
($’000)
Oil Search
#
(as a result of the merger with Santos) 72,660
Qube Holdings
#
68,985
APA Group
#
57,159
Milton Corporation
#
50,443
Lifestyle Communities
#
36,760
#
Complete disposal from the portfolio.
New Companies Added to the Investment Portfolio
Santos (as a result of the merger with Oil Search)
JB Hi-Fi
WiseTech Global
5

TOP 25 INVESTMENTS AS AT 31 DECEMBER 2021
Includes investments held in both the Investment and Trading Portfolios.
Total value
$ million
1Commonwealth Bank of Australia797.98.4%
2CSL 667.57.1%
3BHP 577.96.1%
4Macquarie Group 453.24.8%
5Wesfarmers 437.24.6%
6Transurban Group 397.94.2%
7Westpac Banking Corporation331.93.5%
8National Australia Bank 321.73.4%
9Mainfreight 288.93.1%
10*James Hardie Industries264.22.8%
11Woolworths Group 243.92.6%
12Australia and New Zealand Banking Group 233.52.5%
13*Telstra Corporation 226.42.4%
14Sydney Airport222.32.3%
15Goodman Group207.62.2%
16Reece 194.72.1%
17Amc o r191.62.0%
18Rio Tinto 186.42.0%
19ARB Corporation 173.91.8%
20Sonic Healthcare 172.71.8%
21Coles Group 161.91.7%
22ResMed152.11.6%
23Carsales.com 151.91.6%
24Ramsay Health Care 136.91.4%
25ASX 1331.4%
7,327.10
As % of Total Portfolio Value 77.4%
(excludes Cash)
* Indicates that options were outstanding against part of the holding
% of
portfolio
Valued at closing prices at 31 December 2021
6

PORTFOLIO PERFORMANCE TO 31 DECEMBER 2021




PERFORMANCE MEASURES TO 31 DECEMBER 2021 6 MONTHS 1 YEAR 5 YEARS
%PA
10 YEARS
%PA
PORTFOLIO RETURN – NET ASSET BACKING RETURN INCLUDING
DIVIDENDS REINVESTED

6.1% 20.7% 10.3% 10.6%
S&P/ASX 200 ACCUMULATION INDEX
3.8% 17.2% 9.8% 10.8%


PORTFOLIO RETURN – NET ASSET BACKING GROSS RETURN
INCLUDING DIVIDENDS REINVESTED
*
6.9% 22.4% 12.2% 12.5%
S&P/ASX 200 GROSS ACCUMULATION INDEX*
4.6% 18.7% 11.2% 12.4%

* Incorporates the benefit of franking credits for those who can fully utilise them.


Note: AFIC net asset per share growth plus dividend series is calculated after management expenses, income tax and capital
gains tax on realised sales of investments. It should also be noted that Index returns for the market do not include the
impact of management expenses and tax on their performance.

Past performance is not indicative of future performance.

7

A
USTRALIAN
FOUNDATION
INVESTMENT
C
OMPANY
LIMITED
ABN 56 004 147 120
HALF-YEAR REPORT
31 DECEMBER 2021
8

COMPANY PARTICULARS
Australian Foundation Investment Company Limited (“AFIC”)
ABN 56 004 147 120
AFIC is a Listed Investment Company. As such it is an investor in equities and similar securities on the
stock market primarily in Australia.
Directors:
John Paterson, Chairman
Rebecca P. Dee-Bradbury
Craig M. Drummond
Julie A. Fahey
Graeme R. Liebelt
David A. Peever
Catherine M. Walter AM
Peter J. Williams
R.Mark Freeman, Managing Director
Company Secretaries:
Matthew J. Rowe
Andrew J.B. Porter
Auditor:
PricewaterhouseCoopers, Chartered Accountants
Country of
incorporation:
Australia
Registered office: Level 21
101 Collins Street
Melbourne, Victoria 3000
Contact Details: Mail Address:
Telephone :
Facsimile:
Email:
Internet address:
Level 21, 101 Collins St., Melbourne, Victoria 3000
(03)
9650 9911
(
03)
9650 9100
invest@afi.com.au
afi.com.au
For enquiries regarding net asset backing (as advised each month to the
Australian Securities Exchange):
Telephone: 1800 780 784 (toll free)
Share Registrar: Computershare Investor Services Limited
Mail Address:
A
FIC Shareholder
enquiry lines :
F
acsimile:
Internet:
GPO Box 2975, Melbourne, Victoria 3001
Yarra Falls, 452 Johnston Street, Abbotsford, Victoria
3067
1300 662 270 (Aus)
0800 333 501 (NZ)
+613 9415 4373 (from overseas)
(03
) 9473
2500
www.investorcentre.com/contact
For
all enquiries relating to shareholdings, dividends and related matters, please
contact the share registrar.
Securities Exchange
Codes:
AF
I Ordinary shares (ASX and NZX)
9

DIRECTORS' REPORT
The Directors present their report in relation to the half-year to 31 December 2021 on the
consolidated entity (“the Group”) consisting of Australian Foundation Investment Company Limited
(“the Company” and “AFIC”) and its subsidiary, Australian Investment Company Services Limited
(“AICS”).
Directors
The following persons were Directors of the Company during the half-year and up to the date of
this report:
J. Paterson (appointed June 2005)
R.P. Dee-Bradbury (appointed May 2019)
C.M. Drummond (appointed July 2021)
G.R. Liebelt (appointed June 2012)
J.A. Fahey (appointed April 2021)
D.A. Peever (appointed November 2013)
C.M. Walter AM (appointed August 2002)
P.J. Williams (appointed February 2010)
R.M. Freeman (appointed January 2018)
Review of the Group's operations and results
Overview
AFIC’s investment focus is on a diversified portfolio of Australian equities. There has been no
change in the nature of the Company’s activities during the period. Its primary objectives are to
pay dividends which, over time, will grow at a faster rate than inflation, and to generate attractive
total returns in terms of growth in net asset backing plus dividends.
Profit Performance and Dividend
Profit for the half-year was $146.0 million, up 73.5% from the previous corresponding period.
The net profit per share for the six months to 31 December 2021 was 11.9 cents per share with an
interim dividend declared of 10 cents per share ful ly-franked, the same as last year.
The portfolio return for the 6 months (measured by change in net asset backing per share plus
dividends reinvested) was 6.1% compared to the return of the S&P/ASX 200 Accumulation Index
for the same period which was 3.8%. AFIC’s portfolio return is calculated after management fees,
income tax and capital gains tax on realised sales of investments and does not reflect the value of
franking credits or LIC credits attached to the dividends. Index returns for the market do not
include the impact of management expenses and tax on their performance.
During the half-year 5.2 million shares were issued under the DRP and the DSSP resulting in an
additional $36.4 million of capital (after costs).
10

Auditors’ independence declaration
A copy of the auditors’ independence declaration as required under section 307C of the
Corporations Act 2001 is set out on page 12.
Rounding of amounts to nearest thousand dollars
The Group is of a kind referred to in the ASIC Corporations’ (Rounding in Financial/Directors’
Reports) Instrument 2016/191, relating to the "rounding off" of amounts in the directors' report and
financial report. Unless specifically stated otherwise, amounts in the directors' report and financial
report have been rounded off to the nearest thousand dollars in accordance with that Instrument.
T
his report is made in accordance with a resolution of the Directors.
J. Pat erson
Chairman
Melbourne
24 January 2022
11

PricewaterhouseCoopers, ABN 52 780 433 757
2 Riverside Quay, SOUTHBANK VIC 3006, GPO Box 1331, MELBOURNE VIC 3001
T: 61 3 8603 1000, F: 61 3 8603 1999, www.pwc.com.au
Liability limited by a scheme approved under Professional Standards Legislation.
Auditor’s Independence Declaration
As lead auditor for the review of Australian Foundation Investment Company Limited for the half-year
ended 31 December 2021, I declare that to the best of my knowledge and belief, there have been:
(a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the review; and
(b) no contraventions of any applicable code of professional conduct in relation to the review.
This de
claration is in respect of Australian Foundation Investment Company Limited and the entity it
controlled during the period.
Nadia Carlin Melbourne
Partner
PricewaterhouseCoopers
24 January 2022
12

CONSOLIDATED INCOME STATEMENT FOR THE HALF-YEAR ENDED 31
DECEMBER 2021
Note Half-year
2021
Half-year
2020
$’000 $’000

Dividends and distributions 159,415 93,837
Revenue from deposits and bank bills 8 95
Other revenue 2,344 2,278

Total revenue
161,767 96,210

Net gains/(losses) on trading portfolio
(1,035) (1,009)

Income from operating activities 3 160,732 95,201
Finance & related costs (401)(1,122)
Administration expenses (9,155) (5,958)
Profit before income tax expense 151,176 88,121
Income tax expense (5,198) (3,987)
Profit for the half-year 145,978 84,134

Profit is attributable to :
Equity holders (members) of Australian Foundation
Investment Company Ltd
145,968 83,664
Minority Interest 10 470
145,978 84,134
Cents Cents
Basic earnings per share 8

11.92 6.89
T
his Income S tatement should be read in conjunction with the accompanying notes.
13

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE
HALF-YEAR ENDED 31 DECEMBER 2021
Half-Year to 31 December 2021 Half-Year to 31 December 2020
Revenue Capital Total Revenue Capital Total
$’000 $’000 $’000 $’000 $’000 $’000
Profit for the half-year 145,978 -145,97884,134 -84,134
Other Comprehensive Income
Items that will not be recycled through the Income Statement
Gains for the period on equity securities in
the investment portfolio
- 435,861 435,861-908,353 908,353
Deferred tax on above - (132,974) (132,974)-(274,013) (274,013)
Total other comprehensive income
1
-302,887 302,887-634,340 634,340
T
otal comprehensive income
2
145,978 302,887 448,865 84,134 634,340 718,474
1
Net capital income not accounted for through the Income Statement
2
This is the company’s Net Return for the half-year, which includes the Net Profit plus the net realised and
unrealised gains or losses on the Company’s investment portfolio.
Half-Year to 31 December 2021 Half-Year to 31 December 2020
Revenue Capital Total Revenue Capital Total
$’000 $’000 $’000 $’000 $’000 $’000
Total Comprehensive Income is
attributable to:
Equity holders of Australian Foundation
Investment Company Ltd
145,968 302,887 448,855 83,664 634,340 718,004
Minority Interest 10 -10470 -470
145,978 302,887 448,865 84,134 634,340 718,474
T
his Statement of Comprehensive Income should be read in conjunction with the accompanying

notes.
14

CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2021
31 Dec 30 June
2021 2021
Note $’000 $’000
Current assets
Cash 89,019 97,122
Receivables 5,560 40,011
Trading portfolio 4 3,557 4,745
Total current assets 98,136 141,878
Non-current assets
Investment portfolio 9,462,233 8,973,080
Deferred tax assets 2,043 59
Total non-current assets 9,464,276 8,973,139
Total assets 9,562,412 9,115,017
Current liabilities
Payables 1,687 1,020
Borrowings – bank debt 10,000 -
Tax payable 31,969 12,621
Provisions 4,029 5,235
Total current liabilities 47,685 18,876
Non-current liabilities
Provisions 707 888
Deferred tax liabilities - investment portfolio 5 1,635,043 1,536,231
Total non-current liabilities 1,635,750 1,537,119
Total liabilities 1,683,435 1,555,995
Net Assets 7,878,977 7,559,022
Shareholders' equity
Share Capital 6 3,044,159 3,007,730
Revaluation Reserve 3,630,945 3,394,297
Realised Capital Gains Reserve 446,880 416,071
General Reserve 23,637 23,637
Retained Profits 732,280 716,221
Parent Entity Interest 7,877,901 7,557,956
Minority Interest 1,076 1,066
Total equity 7,878,977 7,559,022
T
his Balance Sheet should be read in conjunction with the accompanying notes.
15

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2021

Attributable to members of Australian Foundation Investment Company
Ltd

Half-Year to 31 December 2021


Note


Share
Capital
$’000


Revaluation
Reserve
$’000

Realised
Capital
Gains
$’000


General
Reserve
$’000


Retained
Profits
$’000

Total
Parent
Entity
$’000


Minority
Interest
$’000



Total
$’000
Total equity at the beginning of the half-
year
3,007,730 3,394,297 416,071 23,637 716,221 7,557,956 1,066 7,559,022
Dividends paid 7 - - (35,430) - (129,909) (165,339) - (165,339)
Shares issued - Dividend Reinvestment Plan 6 36,511 - - - - 36,511 - 36,511
Other Share Capital Adjustments 6 (82) - - - - (82) - (82)
Total transactions with shareholders 36,429 - (35,430) - (129,909) (128,910) - (128,910)

Profit for the half-year - - - - 145,968 145,968 10 145,978

Net gains for the period on equity securities in
the investment portfolio - 302,887 - - - 302,887 - 302,887
Other Comprehensive Income for the half-
year
- 302,887 - - - 30 2,887 - 302,887
Transfer to Realised Capital Gains Reserve
of net c umulative gains (after tax) on
investments sold - (66,239) 66,239 - - - - -

Total equity at the end of the half-year 3,044,159 3,630,945 446,880 23,637 732,280 7,877,901 1,076 7,878,977

This Statement of Changes in Equity should be read in conjunction with the accompanying notes.



16

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DEC. 2020 (CONT)


Attributable to members of Australian Foundation Investment
Company Ltd
Half-Year to 31 December 2020


Note


Share
Capital
$’000


Revaluation
Reserve
$’000

Realised
Capital
Gains
$’000


General
Reserve
$’000


Retained
Profits
$’000

Total
Parent
Entity
$’000


Minority
Interest
$’000



Total
$’000
Total equity at the beginning of the half-
year
2,947,243 2,166,030 397,712 23,637 705,273 6,239,895 622 6,240,517
Dividends paid
7
- - (58,770) - (105,786) (164,556) -
(164,556)
Shares issued - Dividend Reinvestment Plan 35,165 - - - - 35,165 - 35,165
Other Share Capital Adjustments

(80) - - - - (80) - (80)
Total transactions with shareholders

35,085 - (58,770) - (105,786) (129,471) - (129,471)
Profit for the half-year -


- - - - 83,664
83,664
470 84,134
Other Comprehensive Income for the half-year


Net gains for the period on equity securities in
the investment portfolio - 634,340 - - - 634,340 - 634,340
Other Comprehensive Income for the half-
year
- 634,340 - - - 634,340 - 634,340
Transfer to Realised Capital Gains Reserve
of net cumulative gains (after tax) on
investments sold - (4,621) 4,621 - - - - -

Total equity at the end of the half-year 2,982,328 2,795,749 343,563 23,637 683,151 6,828,428 1,092 6,829,520
This Statement of Changes in Equity should be read in conjunction with the accompanying notes


17

CONSOLIDATED CASH FLOW STATEMENT FOR THE HALF-YEAR
ENDED 31 DECEMBER 2021
Half-year Half-year
2021 2020
$’000 $’000
INFLOWS/ INFLOWS/
(OUTFLOWS) (OUTFLOWS)
Cash flows from operating activities
Sales from trading portfolio 13,403 12,258
Purchases for trading portfolio (1,200) (687)
Interest received 8 95
Dividends and distributions received 171,034 93,509
183,245 105,175
Other receipts 2,353 2,279
Administration expenses (10,534) (7,938)
Finance costs paid (401)(1,122)
Taxes paid (7,187) (12,036)
Net cash inflow/(outflow) from operating activities 167,476 86,358
Cash flows from investing activities
Sales from investment portfolio 311,559 213,667
Purchases for investment portfolio (354,976) (156,502)
Taxes paid on capital gains (13,944) (22,648)
Net cash inflow/(outflow) from investing activities (57,361) 34,517
Cash flows from financing activities
Proceeds from borrowing 10,000 -
Share issue costs (82)(80)
Dividends paid (128,136) (128,891)
Net cash inflow/(outflow) from financing activities (118,218) (128,971)
Net increase/(decrease) in cash held (8,103) (8,096)
Cash at the beginning of the half-year 97,122 111,318
Cash at the end of the half-year 89,019 103,222
T
his Cash Flow Statement should be read in conjunction with the accompanying notes.
18

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED
31 DECEMBER 2021
1.Basis of preparation of half-year financial report
This general purpose half-year financial report has been prepared in accordance with Accounting
Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001.
This interim financial report does not include all the notes of the type normally included in an
annual financial report. This report should be read in conjunction with the 2021 Annual Report
and public announcements made by the Group during the half-year, in accordance with the
continuous disclosure requirements of the Corporations Act 2001.
The accounting policies adopted are consistent with those of the previous financial year and
corresponding interim reporting period.
In the interests of transparency in its reporting, the Group uses the phrase “market value” in place
of the AASB terminology “fair value for actively traded securities.” The Company’s investments in
listed securities are valued at the closing price on the ASX on the last trading day before the
period end.
2.Financial reporting by segments
The Group consists of a Listed Investment Company and a subsidiary which provides
administration services to it and to other Listed Investment Companies in Australia. It has no
reportable business or geographic segments.
(a)Segment information provided to the Board
The internal reporting provided to the Board for the Group’s assets, liabilities and performance is
prepared on a consistent basis with the measurement and recognition principles of Australian
Accounting Standards, except that net assets are reviewed both before and after the effects of
capital gains tax on investments (as reported in the Group’s Net Tangible Asset announcements
to the ASX).
The relevant amounts as at 31 December 2021 and 31 December 2020 were as follows:
2021
$
2020
$
Net tangible asset backing per share
Before Tax 7.76 6.64
After Tax 6.43 5.61
(b)Other segment information
Segment Revenue
Revenues from external parties are derived fr om the receipt of dividend, distribution and interest
income, and income arising on the trading portfolio.
The Company is domiciled in Australia and the Group’s dividend and distribution income is
predominantly from entities which maintain a listing in Australia. The Group has a diversified
portfolio of investments, with only the Group’s investment in BHP comprising more than 10% of
the Group’s income (including trading portfolio) for the half- year ended 31 December 2021 –
22.7% (2020 : 10.6%).
19

3.Income from operating activities
Half-year
2021
$'000
Half-year
2020
$'000
Income from operating activities is comprised of the following:
Dividends & distributions
•securities held in investment portfolio
159,342 93,764
•securities held in trading portfolio
73 73
159,415 93,837
Interest income
•deposits and income from bank bills
8 95
8 95
Net gains/(losses) and write downs
•net gains from trading portfolio sales
106 263
•unrealised gains/(losses) in trading portfolio(1,141) (1,272)
(1,035) (1,009)
Administration fees received from other Listed Investment
Companies
2,285 2,176
Expenses recovered from other Listed Investment
Companies
8 38
Other expenses recovered 51 64
160,732 95,201
4.Trading portfolio
As part of the activities of the trading portfolio, the Company enters into option contracts for the
purpose of enhancing returns, offsetting risk or providing opportunities to acquire or sell securities
at advantageous prices.
As at balance date there were call options outstanding which, if they were all exercised, would
require the Company to deliver securities to the value of $32.7 million (30 June 2021: $44.5
million).
20

5.Deferred tax liabilities – investment portfolio
In accordance with AASB 112 Income Taxes, deferred tax liabilities have been recognised for
Capital Gains Tax on the unrealised gain in the investment portfolio at current tax rates (30%)
totalling $1,635.0 million (30 June 2021 : $1,536.2 million). As the Directors do not intend to
dispose of the portfolio, this tax liability may not be crystallised at this amount.
6.Shareholders’ equity – share capital
Movements in Share Capital of the Company during the half-year were as follows:
Date Details Notes Number
of shares
’000
Issue
pr ice
$
Paid-up
Capital
$’000
01/07/2021 Opening Balance
1,220,837 3,007,730
31/08/2021 Dividend Reinvestment Plan
i
4,507
8.10
36,511
31/08/2021 Dividend Substitution Share Plan
ii
687
8.10
n/a
Various Other Share Capital adjustments - (82)
31/12/2021 Balance 1,226,031 3,044,159
i The Company has a Dividend Reinvestment Plan under which some shareholders elected to
have all or part of their dividend payment reinvested in new ordinary shares. Pricing of the
new DRP shares was based on the average selling price of shares traded on the Australian
Securities Exchange & Chi-X automated trading systems in the five days from the day the
shares begin trading on an ex-dividend basis.
ii The Company has a Dividend Substitution Share Plan under which some shareholders
elected to forego all or part of their dividend payment and receive shares instead. Pricing of
the new DSSP shares was done on the same basis as the DRP.
iii The Company introduced an on-market Buy-Back Programme in December 2000. This plan
remains active. No shares were bought back during the period.
7.Dividends
Half-year
2021
$’000
Half-year
2020
$’000
Dividends (fully franked) paid during the period 165,339 164,556
(excluding DSSP shares) (14 cents per
share)
(14 cents per
share)
Dividends not recognised at period end
Since the end of the half-year the Directors have declared an
interim dividend of 10 cents per share, fully franked. The
aggregate amount of the proposed interim dividend expected to
be paid on 25 February 2022, but not recognised as a liability at
the end of the half-year is 122,603
21

8.Earnings per Share
Half-year
2021
Half-year
2020
Number Number
Weighted average number of ordinary shares used as the
denominator
1,224,280,994 1,214,545,486
$’000 $’000
Profit after tax for the half-year attributable to members of the
Company 145,968 83,664
Cents Cents
Basic earnings per share 11.92 6.89
There are no dilutive instruments on issue and consequently diluted earnings per share are the
same as basic earnings per share.
9.Events subsequent to balance date
Since 31 December 2021 to the date of this report there has been no event specific to the Group
of which the Directors are aware which has had a material effect on the Group or its financial
position.
10.Contingencies
At balance date Directors are not aware of any material contingent liabilities or contingent assets
other than those already disclosed elsewhere in the financial report.
22

DIRECTORS' DECLARATION
In the Directors’ opinion:
(a
)the financial statements and notes set out on pages 13 to 22 are in accordance with the
Corporations Act 2001, including:
(i)complying with Accounting Standards, the Corporations Regulations 2001 and other
mandatory professional reporting requiremen ts; and
(ii) giving a true and fair view of the Group’s financial position as at 31 December 2021
and of its performance, as represented by the results of the operations, changes in
equity and cash flows, for the half-year ended on that date; and
(b)there are reasonable grounds to believe that the Company will be able to pay its debts
as and when they become due and payable.
This declaration is made in accordance with a resolution of the Directors.
J. Paterson
Chairman
Melbourne
24 January 2022
23

PricewaterhouseCoopers, ABN 52 780 433 757
2 Riverside Quay, SOUTHBANK VIC 3006, GPO Box 1331, MELBOURNE VIC 3001
T: 61 3 8603 1000, F: 61 3 8603 1999, www.pwc.com.au
Liability limited by a scheme approved under Professional Standards Legislation.

Independent auditor's review report to the members of Australian
Foundation Investment Company Limited
Report on the half-year financial report
Conclusion
We have reviewed the half-year financial report of Australian Foundation Investment Company Limited
(the Company) and the entity it controlled during the half-year (together the Group), which comprises the
consolidated balance sheet as at 31 December 2021, the consolidated statement of comprehensive
income, consolidated statement of changes in equity, consolidated cash flow statement and
consolidated income statement for the half-year ended on that date, significant accounting policies and
explanatory notes and the directors' declaration.
Based on our review, which is not an audit, we have not become aware of any matter that makes us
believe that the accompanying half-year financial report of Australian Foundation Investment Company
Limited does not comply with the Corporations Act 2001 including:
1. giving a true and fair view of the Group's financial position as at 31 December 2021 and of its
performance for the half-year ended on that date
2. complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations
Regulations 2001.
Basis for conclusion
We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by
the Independent Auditor of the Entity (ASRE 2410). Our responsibilities are further described in the
Auditor’s responsibilities for the review of the half-year financial report section of our report.
We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards
Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards)
(the Code) that are relevant to the audit of the annual financial report in Australia. We have also fulfilled
our other ethical responsibilities in accordance with the Code.
Responsibilities of the directors for the half-year financial report
The directors of the Company are responsible for the preparation of the half-year financial report that
gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act
2001 and for such internal control as the directors determine is necessary to enable the preparation of
the half-year financial report that gives a true and fair view and is free from material misstatement
whether due to fraud or error.

24

Auditor's responsibilities for the review of the half-year financial report
Our responsibility is to express a conclusion on the half-year financial report based on our review. ASRE
2410 requires us to conclude whether we have become aware of any matter that makes us believe that
the half-year financial report is not in accordance with the Corporations Act 2001 including giving a true
and fair view of the Group's financial position as at 31 December 2021 and of its performance for the
half-year ended on that date, and complying with Accounting Standard AASB 134 Interim Financial
Reporting and the Corporations Regulations 2001.
A review of a half-year financial report consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance with Australian Auditing Standards
and consequently does not enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
PricewaterhouseCoopers
Nadia Carlin Melbourne
Partner

24 January 2022
25