Invitation to Results Webcast

27 July 2023


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, Thursday 27 July 2023 at 3.30 p.m. (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.

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.

The shareholder presentation material is 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 2023

Full Year Results /July 2023
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 /July 2023
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 /July 2023
Overview and Investment Objectives

Full Year Results /July 2023
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 0.14% 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 /July 2023
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 /July 2023
Financial Results

Full Year Results /July 2023
Results to 30 June 2023
* Assumes a shareholder can take full advantage of the franking credits.
#
Includes a non-cashdividend of $74.9 million from the BHP Petroleum/Woodside merger in 2022.
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Full Year Results /July 2023
Share Price Relative to NTA has moved from a significant premium to a
slight discount over the course of the financial year
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Full Year Results /July 2023
Markets and the Portfolio

Full Year Results /July 2023
Portfolio and Sector Performance –to 30 June 2023
Sector returns do not include franking
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Full Year Results /July 2023
Long term performance of Industrials v Resources
ASX 200 relative to the Industrials and Resources Indices – Total Return
Source: Goldman Sachs Research
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Full Year Results /July 2023
Inflation easing as interest rate rises take effect
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201820192020202120222023
US Headline CPI (%, yoy)US Fed Funds Target Rate
%
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201820192020202120222023
Australia Headline CPI (%, yoy)RBA Cash Rate
%
More rate rises may be required but has inflation peaked?
US – Inflation vs Interest Rates
Source: Goldman Sachs Research
Australia – Inflation vs Interest Rates
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Full Year Results /July 2023
Valuation in a Long Term Context
Price to Sales – S&P/ASX 200 IndexPrice to Book – S&P/ASX 200 Index
Average1.9
Average1.9
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Full Year Results /July 2023
Recent Portfolio Activity

Full Year Results /July 2023
Active Portfolio Management –Recent Transactions
New PurchasesSalesAdditions to Existing Holdings
Complete Disposals
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Full Year Results /July 2023
CSL
CSL is a specialist biotechnology company that develops and
manufactures products to treat serious human medical conditions.
Market leadership position in plasma fractionation operating more
efficiently than competitors.
Recent capital investment increasing capacity while delivering
operating efficiencies and higher returns.
Consistent investment in Research & Development of new pipeline
drugs for long-term earnings growth.
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Source: CSL Website
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Full Year Results /July 2023
Goodman Group is a specialist developer, owner and
manager of industrial properties operating in 14 countries.
Market leader in providing high-quality essential infrastructure for
the digital economy.
Unique opportunity to invest alongside the founder of the
company, Greg Goodman, who remains a significant shareholder.
Strong balance sheet and experienced management team.
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Goodman Group
Source: Goodman Group Website
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Full Year Results /July 2023
IDP Education is the leading global provider of high stakes English language
testing and student placements to tertiary institutions.
Competitive advantage in strong network effects, in-country infrastructure and
highly trusted brand with significant opportunity to grow market share.
Supportive structural tailwinds with strong demand for Western education and
immigration
Strategy to digitise and evolve into an online education marketplace
for students and universities in the long term
EE
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IDP Education
Source: IDP Education Website
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Full Year Results /July 2023
Outlook

Full Year Results /July 2023
Outlook
➢What's occupying our mind:
•Solideconomic growthdespite rapidrise in interest rates.
•Strong equity market returnsdespite broad based expectations of a recession.
•Stubborn inflation.
•Slow growth inChina.
➢Portfolio positioning:
•Diversified portfolio of quality companies owning strategic assets, with strong
balance sheets that are well managed.
•An appropriate mix of forecast growth and income returns to meet our long-term
investment objectives.
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