Half Year Review to 31 December 2021

24 February 2022



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
Half Year Review to 31 December 2021


Dear Sir / Madam

Please find attached the Half Year Review to 31 December 2021 that is being sent to
shareholders.


Yours faithfully

Matthew Rowe
Company Secretary


Release authorised by Matthew Rowe, Company Secretary

Half-Year Review
to 31 December
2 0 21

1 Half-Year in Summary
2 About the Company
6 Review of Operations
and Activities
14 Top 25 Investments
15 Income Statement
16 Balance Sheet
17 Summarised Statement
of Changes in Equity
18 Holdings of Securities
21 Holdings of International
Securities
23 Top 5 Transactions in
the Investment Portfolio
24 Company Particulars
25 Shareholder Information
Contents
AUSTRALIAN FOUNDATION
INVESTMENT COMPANY
IS A LISTED INVESTMENT
COMPANY INVESTING
IN AUSTRALIAN AND
NEW ZEALAND EQUITIES.
Australian Foundation Investment Company Limited ABN 56 004 147 120

Half-Year in Summary
* Assumes an investor can take full advantage of the franking credits.
Profit for the
Half-Year
$146.0m
Up 73.5%
from 2020
Total Six-Month
Portfolio
Return
6.9%
Including franking*
S&P/ASX 200
Index including
franking* 4.6%
Management
Expense Ratio
(Annualised)
0.15%
0.10%
last year
Total Six-Month
Shareholder
Return
10.0%
Share price
plus dividend
Fully Franked
Interim Dividend
Per Share
10
¢
10 cents
per share
in 2020
2021
Total Portfolio
(Including Cash)
at 31 December
2021
$9.6b
$8.1 billion
in 2020
1Australian Foundation Investment Company Limited Half-Year Review to 31 December 2021

About the Company
Australian Foundation Investment Company (AFIC)
is a listed investment company with an investment focus
on a diversified portfolio of Australian equities.
Investment Objectives
The Company aims to provide
shareholders with attractive
investment returns through access
to a growing stream of fully franked
dividends and growth in capital
invested.
The Company’s primary investment
goals are:
• to pay dividends which, over
time, grow faster than the rate
of inflation; and
• to provide attractive total returns
over the medium to long term.
How AFIC Invests – What We Look For in Companies
A portfolio that
is managed to
achieve long term
capital and dividend
growth
Quality FirstGrowth
Including dividends
Value
2Australian Foundation Investment Company Limited Half-Year Review to 31 December 2021

Investment Philosophy
The investment philosophy is built
on taking a medium to long term view
on companies in a diversified portfolio
with an emphasis on identifying quality
companies that are likely to sustainably
grow their earnings and dividends over
this time frame.
Quality in this context is an outcome
of our assessment of the board and
management as well as some key
financial metrics. These include return
on capital employed, return on equity,
the level of gearing in the balance
sheet, margins and free cash flow. The
structure of the industry and a company’s
competitive position in this industry is also
an important indicator of quality. Linked to
this assessment of quality is the ability
of companies to grow earnings over time,
which ultimately should produce good
dividend growth.
Recognising value is also an important
aspect of sound long term investing.
Short term measures such as the price
earnings ratio, price to book or price to
sales may be of some value, but aren’t
necessarily strong predictors of future
performance. Our assessment of value
tries to capture the opportunity a business
has to prosper and thrive over the medium
to long term.
In building the investment portfolio in this
way, we believe we can offer investors a
well-diversified portfolio of high-quality
companies that is intended to deliver
total returns ahead of the Australian
equity market and with less volatility
over the long term.
The Company also uses options
written against a small proportion of its
investments and a small trading portfolio
to generate additional income.
From time to time, some borrowings
may be used where potential investment
returns justify the use of debt. This is
managed within very conservative limits,
as determined by the Board.
AFIC is managed for the benefit of its
shareholders with expenses based on
the recovery of costs rather than having
a fee as a fixed percentage of the
portfolio. There are no performance fees.
As a result, the benefit of scale over time
results in a very low expense ratio
for investors. For the six months to
31 December 2021 this was 0.15 per
cent (annualised), or 15 cents for each
$100 invested.
Approach to Investing
3Australian Foundation Investment Company Limited Half-Year Review to 31 December 2021

Approach to Environmental,
Social and Governance (ESG)
Issues When Investing
Assessment of Environmental, Social and
Governance (ESG) issues is an important
part of our investment process. As a
long term investor, we seek to invest in
companies that have strong governance
and risk management processes, which
includes consideration of environmental
and social risks. We regularly review
companies to ensure ongoing alignment
with our investment framework:
• We believe environmental factors,
including the impact of climate change,
can have a material impact on society.
These factors are considered when
assessing a company’s assets, long
term sustainability of earnings and cash
flow, cost of capital and future growth
opportunities.
• We believe that aligning ourselves
with high-quality management and
boards building sustainable long term
businesses is the best approach to
avoiding socially harmful businesses.
We are attracted to companies
that act in the best interest of all
their stakeholders, including their
employees, customers, suppliers,
and wider communities.
• We invest in high-quality companies
with strong governance processes,
and management and boards whose
interests are closely aligned with
shareholders. The investment process
includes an assessment of their
past performance, history of capital
allocation, level of accountability,
mix of skills, relevant experience and
succession planning. We also closely
scrutinise a company’s degree of
transparency and disclosure.
Engagement with Companies
Voting on resolutions is one of the key
functions that a shareholder has in
ensuring better long term returns and
management of investment risk:
• We take input from proxy advisers but
conduct our own evaluation of the
merits of any resolution.
• We vote on all Company resolutions
as part of our regular engagement with
the companies in the portfolio.
• We actively engage with companies
when we have concerns those
resolutions are not aligned with
shareholders’ interests.

We acknowledge that high-quality
companies may face ESG challenges
from time to time. We seek to stay
engaged with the companies and
satisfy ourselves that the issues are
taken seriously and worked through
constructively. Ideally, in this instance,
we seek to remain invested to influence
a satisfactory outcome for stakeholders.
About the Company
continued
Approach to Investing continued
4Australian Foundation Investment Company Limited Half-Year Review to 31 December 2021

5Australian Foundation Investment Company Limited Half-Year Review to 31 December 2021

Profit and Dividend
Half-year profit was up by 73.5 per cent
to $146.0 million following on from the
recovery in dividend income. In the
corresponding period last year, half-year
profit was $84.1 million.
Investment income for the six months to
31 December 2021 was $159.4 million,
up from $93.8 million in the corresponding
period last year. The biggest increases
came from the 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.
Earnings per share for the half-year were
11.9 cents, up from to 6.9 cents in the
previous corresponding period.
The interim dividend for the half-year
is 10 cents per share, fully franked,
the same as the previous corresponding
period.
The management expense ratio for
AFIC is 0.15 per cent (annualised),
with no performance fees.
Review of Operations and Activities
6Australian Foundation Investment Company Limited Half-Year Review to 31 December 2021

Portfolio Returns and
Positioning
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
half of the calendar year. While market
valuations remained higher than historical
levels as a result of continued low interest
rates, corporate earnings growth also
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.
8,000
7,500
7,000
6,500
6,000
Dec 20
Jan 21
Feb 21
Mar 21
Apr 21
May 21
Jun 21
Jul 21
Aug 21
Sep 21
Oct 21
Nov 21
Dec 21
S&P/ASX 200 – Price
Index
Figure 1: Performance of the S&P/ASX 200 Price Index for the 12 Months
to 31 December 2021
Source FactSet
7Australian Foundation Investment Company Limited Half-Year Review to 31 December 2021

Reflecting the quality of companies
in the portfolio during these uncertain
times, AFIC’s portfolio was up 6.9 per
cent for the six months to 31 December
2021 compared with the S&P/ASX 200
Accumulation Index, which was up 4.6 per
cent 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 per cent
versus 12.4 per cent 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
lower portfolio volatility than the market
and more consistent dividend income.
The other key feature of AFIC’s returns
is the level of portfolio volatility versus
the S&P/ASX 200 Index and other funds
available in the market focusing on
the Australian market. Figure 3 reflects
data from a Mercer survey of 115 large
cap Australian equity fund managers
displaying their risk and return metrics
over the last five years.
The green lines represent the Median
manager who has delivered a return of
9.4 per cent per annum with a Standard
Deviation of 14.8 per cent. The standard
deviation is a measure of risk or volatility
of a portfolio.
The AFIC portfolio is represented by
the blue point and has returned 10.3 per
cent per annum while the S&P/ASX 200
Index is represented by the purple point
returning 9.8 per cent per annum over
the period. AFIC’s standard deviation of
13.0 per cent is well below the risk of the
market and the median fund manager.
In summary, the chart highlights the AFIC
portfolio has delivered a higher return
with less volatility for shareholders.
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.
Review of Operations and Activities
continued
8Australian Foundation Investment Company Limited Half-Year Review to 31 December 2021

Net asset per share growth plus dividends,
including franking
S&P/ASX 200 Accumulation Index,
including franking
1-year return
22.4%
18.7%
5-year return
12.2%
11.2%
10-year return
12.5%
12.4%
6-month return
6.9%
4.6%
Annualised Standard Deviation (% p.a.)
Annual Return (% p.a.)
Median return of funds
Median
standard
deviation
of funds
12%
11%
10%
9%
8%
10%12%14%16%18%
AFIC
ASX 200 Accumulation
Figure 2: Portfolio Performance (Including the Full Benefit of Franking)
− to 31 December 2021
Figure 3: Portfolio Return and Volatility Versus the S&P/ASX 200 Index and Other
Funds (Both Exclude Franking) − 5 Years to 31 December 2021
Per annum returns other than for six months. AFIC’s performance numbers are after costs.
Source: Mercer Investment Performance Survey of Wolesale-Equity – Australia. Note AFIC’s return
is after tax paid and costs. The universe for Wholesale-Equity – Australia returns are before tax
and after fees.
9Australian Foundation Investment Company Limited Half-Year Review to 31 December 2021

Review of Operations and Activities
continued
We initiated positions in JB Hi-Fi
and WiseTech Global. JB Hi-Fi 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.
We 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.
Share Price and Returns
Figure 4 highlights where AFIC’s share
price was trading relative to the net asset
backing at 31 December 2021. Over the
six-month period the share price has
moved from a 5 per cent premium
at 30 June 2021 to a premium of
9 per cent to net asset backing by
31 December 2021.
15%
-10%
-5%
0%
5%
10%
Dec
11
Dec
12
Dec
13
Dec
15
Dec
14
Dec
16
Dec
17
Dec
18
Dec 19Dec 20Dec 21
Figure 4: Share Price Relative to Net Asset Backing Per Share
10Australian Foundation Investment Company Limited Half-Year Review to 31 December 2021

Net asset per share growth plus dividends,
including franking
S&P/ASX 200 Accumulation Index,
including franking
1-year return
19.5%
17.2%
5-year return
12.4%
9.8%
10-year return
12.1%
10.8%
6-month return
10.0%
3.8%
Figure 5: Share Price Return − to 31 December 2021
This change in the premium is reflected
in the recent strong share price return
relative to the S&P/ASX 200 Accumulation
Index for the six-month period to
31 December 2021 (Figure 5). Importantly,
the long term 10-year return is 12.1 per
cent for the share price in comparison to
10.8 per cent for the Index. The figures for
the Index and share price do not include
any benefit a shareholder can derive
from the franking credits attached to
the dividends paid.
International Portfolio
Building further on the initial investment
made into a diversified global equities
portfolio in May 2021, we have continued
to manage and carefully add to our
positions. Through a combination of
these additional investments and portfolio
returns, we now have approximately
$72 million invested (which represents
approximately 0.7 per cent of the portfolio).
Per annum returns other than for six months.
11Australian Foundation Investment Company Limited Half-Year Review to 31 December 2021

Leveraging our investment philosophy
in the domestic market, the approach
to international equities is similar. The
international strategy invests in publicly
listed companies outside the Australian
and New Zealand markets with a medium
to long term investment time horizon.
It focuses on high-quality companies
with strong management teams and
competitive advantages that we view as
sustainable, often underpinned by long
term secular growth trends. With inherent
business characteristics that allow these
companies to generate an attractive
return on capital, the selected companies
are expected to generate a reasonable
level of return for our shareholders
through a combination of earnings growth
and dividends. We look to invest at a
starting valuation that is sensible in the
context of the expected return and the
risk associated with each investment.
To date performance has been pleasing.
We intend to continue with our approach
of making incremental investments as
Review of Operations and Activities
continued
12Australian Foundation Investment Company Limited Half-Year Review to 31 December 2021

Times
20
18
16
14
12
10
2015201320142012
2016
2017
2018
2019
2020
2021
10-year
average
15.6
Figure 6: S&P/ASX 200 Price Earnings Ratio
Source FactSet
a potential precursor to establishing a
separate low-cost international listed
investment company in the future.
Outlook
The level of economic activity has
improved materially from the pandemic-
induced lows of mid 2020 putting interest
rate increases back on the agenda. While
the timing of these increases remains
uncertain United States’ interest rates have
already started to move upwards leading
to increased volatility in equity markets.
Our strategy of owning a diversified
portfolio of quality companies well placed
to deliver earnings growth over the
medium to long term remains appropriate.
Importantly, short term periods of
uncertainty against the backdrop of above
average valuations (Figure 6) often present
good buying opportunities for investors
focused on a company’s long term
prospects such as AFIC. The portfolio is
soundly positioned despite the spectre
of rising interest rates and heightened
global uncertainty.
13Australian Foundation Investment Company Limited Half-Year Review to 31 December 2021

Includes investments held in both the investment and trading portfolios.
Valued at Closing Prices at 31 December 2021
Total Value
$ Million
% of the
Portfolio
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
10James Hardie Industries*264.22.8
11Woolworths Group 243.92.6
12Australia and New Zealand Banking Group 233.52.5
13Telstra Corporation* 226.42.4
14Sydney Airport222.32.3
15Goodman Group207.62.2
16Reece 194.72.1
17Amcor191.62.0
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 133.01.4
Total7,327.1
As percentage of total portfolio value (excludes cash)77.4%
* Indicates that options were outstanding against part of the holding.
Top 25 Investments
As at 31 December 2021
14Australian Foundation Investment Company Limited Half-Year Review to 31 December 2021

Half-Year
2021
$’000
Half-Year
2020
$’000
Dividends and distributions159,41593,837
Revenue from deposits and bank bills895
Net gains/(losses) on trading portfolio (1,035)(1,009)
Total income158,38892,923
Finance costs(401)(1,122)
Administration expenses(6,811)(3,680)
Profit before income tax 151,17688,121
Income tax (5,198)(3,987)
Profit for the half-year 145,97884,134
CentsCents
Earnings per share11.926.89
Income Statement
For the Half-Year Ended 31 December 2021
15Australian Foundation Investment Company Limited Half-Year Review to 31 December 2021

31 Dec
2021
$’000
30 June
2021
$’000
Current assets
Cash 89,01997,122
Receivables5,56040,011
Trading portfolio3,5574,745
Total current assets98,136141,878
Non-current assets
Investment portfolio 9,462,2338,973,080
Deferred tax assets2,04359
Total non-current assets9,464,2768,973,139
Total assets9,562,4129,115,017
Current liabilities
Payables1,6871,020
Borrowings – bank debt10,000-
Tax payable31,96912,621
Provisions4,0295,235
Total current liabilities47,68518,876
Non-current liabilities
Provisions707888
Deferred tax liabilities – investment portfolio1,635,0431,536,231
Total non-current liabilities1,635,7501,537,119
Total liabilities1,683,4351,555,995
Net assets7,878,9777,559,022
Shareholders’ equity
Share capital3,044,2093,007,780
Revaluation reserve3,630,9453,394,297
Realised capital gains reserve446,880416,071
General reserve23,63723,637
Retained profits733,306717,237
Total shareholders’ equity
(including minority interests)7,878,9777,559,022
Balance Sheet
As at 31 December 2021
16Australian Foundation Investment Company Limited Half-Year Review to 31 December 2021

Half-Year
2021
$’000
Half-Year
2020
$’000
Total equity at the beginning of the half-year7,559,0226,240,517
Dividends paid(165,339)(164,556)
Dividend Reinvestment Plan36,51135,165
Other share capital adjustments(82)(80)
Total transactions with shareholders(128,910)(129,471)
Profit for the half-year145,97884,134
Revaluation of investment portfolio435,861908,353
Provision for tax on revaluation(132,974)(274,013)
Revaluation of investment portfolio (after tax)302,887634,340
Total comprehensive income for the half-year448,865718,474
Realised gains/(losses) on securities sold100,401(1,854)
Tax on realised gains/(losses) on securities sold(34,162)6,475
Net realised gains/(losses) on securities sold66,2394,621
Transfer from revaluation reserve
to realised gains reserve(66,239)(4,621)
Total equity at the end of the half-year7,878,9776,829,520
A full set of AFIC’s interim accounts are available on the Company’s website.
Summarised Statement of Changes in Equity
For the Half-Year Ended 31 December 2021
17Australian Foundation Investment Company Limited Half-Year Review to 31 December 2021

Individual investments for the combined investment and trading portfolios as at
31 December 2021 are listed below. The list should not, however, be used to evaluate
portfolio performance or to determine the net asset backing per share at other dates.
Net asset backing is advised to the Australian Securities Exchange each month and
is recorded on the toll free telephone service at 1800 780 784 and posted to AFIC’s
website: afi.com.au.
Individual holdings in the portfolios may change during the course of the year.
In addition, holdings which are part of the trading portfolio may be subject to call
options or sale commitments by which they may be sold at a price significantly
different from the market price prevailing at the time of the exercise or sale.
Code
Ordinary Shares, Trust Units
or Stapled Securities
Number
Held
’000
Market
Value
$’000
AIAAuckland International Airport7,47353,808
ALQALS7,01291,719
AMCAmcor11,600191,633
ANNAnsell1,36943,133
ANZAustralia and New Zealand Banking Group8,488233,497
ARBARB Corporation3,313173,942
ASXASX Limited1,432133,033
AUBAUB Group2,52665,066
BHPBHP13,926577,915
BXBBrambles9,27998,632
CARCarsales.com6,053151,872
CBACommonwealth Bank of Australia7,900797,900
COHCochlear33472,222
COLColes Group9,023161,864
CPUComputershare4,04380,850
CSLCSL2,296667,489
CWYCleanaway Waste Management17,01453,254
DJWDjerriwarrh Investments7,50524,843
Holdings of Securities
As at 31 December 2021
18Australian Foundation Investment Company Limited Half-Year Review to 31 December 2021

Code
Ordinary Shares, Trust Units
or Stapled Securities
Number
Held
’000
Market
Value
$’000
DMPDomino’s Pizza Enterprises43751,541
DUIDiversified United Investment12,03062,316
EDVEndeavour Group4,76632,121
EQTEQT Holdings 1,32235,036
FCLFineos Corporation9,25342,655
FPHFisher & Paykel Healthcare 3,913119,449
GMGGoodman Group7,835207,628
IAGInsurance Australia Group9,52740,587
IELIDP Education59520,604
IREIRESS8,211102,640
IVCInvoCare3,51241,306
JBHJB Hi-Fi1,00548,562
JHX*James Hardie Industries4,790264,183
MFTMainfreight (NZX listed)3,268288,938
MIRMirrabooka Investments8,72834,737
MQGMacquarie Group2,207453,222
NABNational Australia Bank11,155321,704
NANNanosonics4,34527,417
NWLNetwealth Group2,67747,365
NXTNEXTDC7,864100,587
ORIOrica2,22630,471
PXAPEXA Group2,91958,085
REAREA Group55392,673
REHReece 7,201194,652
RHCRamsay Health Care1,915136,923
RIORio Tinto1,862186,406
RMDResMed4,250152,065
RWCReliance Worldwide Corporation9,21857,799
19Australian Foundation Investment Company Limited Half-Year Review to 31 December 2021

Holdings of Securities
As at 31 December 2021 continued
Code
Ordinary Shares, Trust Units
or Stapled Securities
Number
Held
’000
Market
Value
$’000
RYMRyman Healthcare (NZX listed)88010,156
SEKSeek3,333109,244
SHLSonic Healthcare3,704172,727
STOSantos11,28671,213
SYDSydney Airport25,606222,262
TCLTransurban Group28,791397,890
TLS*Telstra Corporation54,510226,413
TPWTemple & Webster3,24434,901
WBCWestpac Banking Corporation15,545331,886
WESWesfarmers7,372437,160
WOWWoolworths Group6,416243,861
WPLWoodside Petroleum3,62079,379
WTCWisetech 25014,645
XROXero 833117,820
Total9,393,895

* Indicates that options were outstanding against part of the holding.
20Australian Foundation Investment Company Limited Half-Year Review to 31 December 2021

Holdings of International Securities
As at 31 December 2021
Code
Ordinary Shares, Trust Units
or Stapled Securities
Number
Held
2021
Units
Market
Value
2021
A$
ACN-USAccenture 3,2751,867,340
AENA-ESAena 8,1031,759,161
9988-HKAlibaba 36,086757,084
GOOGL-USAlphabet7923,155,843
AMZN-USAmazon 4392,013,307
AAPL-USApple6,0131,468,555
SCHW-USCharles Schwab15,3801,779,005
CMG-USChipotle 8842,125,649
CTAS-USCintas2,0941,276,398
COST-USCostco1,9241,502,317
CCI-USCrown Castle 6,6311,903,826
EL-USEstée Lauder 3,1011,578,967
FB-USFacebook4,2131,949,018
FERG-GBFerguson8,5422,085,444
FTNT-USFortinet 4,3422,146,381
HCA-USHCA Healthcare 7,0562,493,379
HD-USHome Depot3,1971,824,880
ICE-USIntercontinental 8,6571,628,555
JPM-USJP Morgan4,8721,061,122
OR-FRL’Oréal 1,160756,506
MC-FRLVMH Moët1,2881,464,611
MAR-USMarriott8,5511,943,386
MA-USMastercard1,874926,168
MCD-USMcDonald’s5,6482,082,474
MSFT-USMicrosoft8,5913,974,025
NESN-CHNestlé 12,0112,310,676
21Australian Foundation Investment Company Limited Half-Year Review to 31 December 2021

Holdings of International Securities
As at 31 December 2021 continued
Code
Ordinary Shares, Trust Units
or Stapled Securities
Number
Held
2021
Units
Market
Value
2021
A$
NFLX-USNetflix2,7722,296,907
NEE-USNextera12,1911,565,446
NKE-USNike 9,4492,166,089
NOVOB-DKNovo Nordisk 8,6341,334,557
PYPL-USPaypal4,1711,081,874
PEP-USPepsiCo7,0531,685,103
ROG-CHRoche2,8701,642,415
SPGI-USS&P Global2,5581,660,398
SU-FRSchneider6,6871,803,818
SOON-CHSonova2,5541,379,441
SBUX-USStarbucks 13,2432,130,534
669-HKTechtronic68,8971,886,400
TMO-USThermo Fisher 1,9241,765,732
ULVR-GBUnilever10,047738,455
V-USVisa3,100924,017
Total71,895,259
22Australian Foundation Investment Company Limited Half-Year Review to 31 December 2021

Acquisitions
Cost
($’000)
Santos (as a result of the merger with Oil Search)72,660
Transurban Group (including participation in entitlement offer)65,548
JB Hi-Fi47,191
Coles Group35,000
CSL (participation in placement)30,214
Disposals
Proceeds
($’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
Top 5 Transactions in the
Investment Portfolio
23Australian Foundation Investment Company Limited Half-Year Review to 31 December 2021

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
Mark Freeman, Managing Director
Rebecca P Dee-Bradbury
Craig M Drummond
Julie A Fahey
Graeme R Liebelt
David A Peever
Catherine M Walter AM
Peter J Williams
Company Secretaries
Matthew J Rowe
Andrew JB Porter
Auditor
PricewaterhouseCoopers
Chartered Accountants
Country of Incorporation
Australia
Registered Office
and Mailing Address
Level 21, 101 Collins Street
Melbourne Victoria 3000
Contact Details
Telephone (03) 9650 9911
Facsimile (03) 9650 9100
Website afi.com.au
Email invest@afi.com.au
For enquiries regarding net asset backing
(as advised each month to the Australian
Securities Exchange)
Telephone 1800 780 784 (toll free)
Company Particulars
24Australian Foundation Investment Company Limited Half-Year Review to 31 December 2021

Share Registrar
Computershare Investor Services Pty Ltd
Yarra Falls, 452 Johnston Street
Abbotsford Victoria 3067
New Zealand
Computershare Investor Services Limited
159 Hurstmere Road
Takapuna Auckland 0622
Shareholder
Enquiry Lines 1300 662 270 (Australia)
0800 333 501 (New Zealand)
+61 3 9415 4373 (from overseas)
Facsimile (03) 9473 2500
Website investorcentre.com.au/contact
For all enquiries relating to shareholdings, dividends
and related matters, please contact the share registrar
in your country.
Securities Exchange Codes
AFI Ordinary shares
(ASX and NZX)
Shareholder Meeting
Note the shareholder meetings which are usually
held in March in various capital cities have been
replaced by a webinar/telephone briefing to be
held on 28 March 2021 at 10.00am.
Registration details for the webinar and dial-in details
for teleconference participants have been provided
in a separate invitation letter/email to shareholders.
Shareholder Information
25Australian Foundation Investment Company Limited Half-Year Review to 31 December 2021

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