Results Webcast Presentation

26 July 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
Results Webcast Presentation

Please find attached the presentation to be given at the Shareholder Webcast being
held today Tuesday 26 July 2022 at 3.30 pm (AEST).

Webcast
To join the webcast please use the following link: Webcast Link (This link will open
directly in your internet browser).

Conference Call
Alternatively to join via the teleconference, please register using the following link:
conference call registration link

Upon registering for the conference call you will have the option to dial in or to be
called directly. International dial in numbers are available through the registration
process.

The shareholder presentation material is made available through our website
www.afi.com.au.

Yours faithfully

Matthew Rowe
Company Secretary
ASX Release authorised by the Company Secretary

Full Year Results
July 2022

Full Year Results 2022
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.
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Disclaimer

Full Year Results 2022
Overview and Investment ObjectivesMark Freeman
Financial ResultsAndrew Porter
Markets and the PortfolioDavid Grace
Recent portfolio activityNga Lucas
OutlookDavid Grace
Agenda
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Full Year Results 2022
Overview and Investment Objectives

Full Year Results 2022
Our Company
Invests in Australian and New Zealand companies
Largest listed investment company on the ASX, over 160k shareholders, independent Board of Directors
Shareholders own the ‘management rights’ to the portfolio
Management expense ratio of 0.16% with no performance fees
Long term investor with low turnover (tax effective). Portfolio and share price returns less volatile than the index
Long history of growing/stable fully franked dividends
Team manages three other funds – Djerriwarrh, Mirrabookaand AMCIL
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Full Year Results 2022
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.
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Full Year Results 2022
Financial Results

Full Year Results 2022
Results to 30 June 2022
* Assumes a shareholder can take full advantage of the franking credits.
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Full Year Results 2022
Share Price Relative to NTA
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Full Year Results 2022
Markets and the Portfolio

Full Year Results 2022
Managing Through Challenging Markets
4000
4500
5000
5500
6000
6500
7000
7500
8000
2019202020212022
ASX200 –3 Year Chart
Central Banks
start policy
tightening
Onset of
COVID-19
Fiscal and monetary
policy stimulus
provided globally
Financial Years
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Full Year Results 2022
Portfolio Set to Perform in Most Economic Settings
AFIC
Stalwarts
Growth Companies
IncomeCyclicals
16%
22%
29%
32%
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Full Year Results 2022
Portfolio and Sector Performance
FY22 Sector Performance
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Full Year Results 2022
Valuation in a Long Term Context
Price to Sales – S&P/ASX 200 Index
Price to Book – S&P/ASX 200 Index
Average
1.9
Average
1.9
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Full Year Results 2022
Market Sell Offs Create Excellent Long-term Buying Opportunities
ASX All Ordinaries – Price Chart
CAGR: 5.8%
Inflation shock/
rising rates: -13%
Poseidon Bubble: -35%
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Full Year Results 2022
Recent Portfolio Activity

Full Year Results 2022
Active Portfolio Management – Recent Transactions
* Takeover
*
*
New Purchases
Sales
Additions to
Existing Holdings
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Full Year Results 2022
Quality Companies Deliver SuperiorLong-termEarnings Growth
Share PriceEst EPS (12m Forward)
Price, EPS –Indexed to 100
Price, EPS –Indexed to 100
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Full Year Results 2022
Outlook

Full Year Results 2022
Outlook
• Uncertain operating environment with persistent inflation and rising interest rates.
• The valuation of the market has significantly retraced this year with some risk of
further downside.
• The portfolio is well positioned to perform in a wide range of operating environments.
Diversified portfolio of quality companies.
• Volatile markets often provide the best buying opportunitiesfor investors focused
on a company's long-term prospects.
• The portfolio is invested in quality companies owning strategic assets, with strong
balance sheets and are well managed.
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