Half Yearly Results Webcast Presentation

24 January 2024


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 Yearly Results Webcast Presentation

Please find attached the presentation to be given at the Shareholder webcast being
held today, Wednesday 24 January 2024 at 3.30 p.m. (AEDT).

To join the webcast please use the below link (this will be made 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). Questions can be asked through the webcast link.

The shareholder presentation material will be made available through our website.

Release authorised by the Company Secretary, Matthew Rowe.

Half-Year Results
January 2024

Half-Year Results –January 2024
Australian Foundation Investment Company Limited and its subsidiary AICS (AFSL 303209), its
related entities and each of its 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.
Disclaimer
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Half-Year Results –January 2024
Overview and Investment ObjectivesMark Freeman
Financial ResultsAndrew Porter
Markets and the PortfolioDavid Grace and Nga Lucas
OutlookDavid Grace
Agenda
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Half-Year Results –January 2024
Overview and Investment Objectives
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Half-Year Results –January 2024
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, Mirrabooka and AMCIL
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Our Company
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Half-Year Results –January 2024
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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Half-Year Results –January 2024
Financial Results
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Half-Year Results –January 2024
* Assumes a shareholder can take full advantage of the franking credits.
Interim Result Summary – Six months to 31 December 2023
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Half-Year Results –January 2024
Share Price Relative to NTA
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Half-Year Results –January 2024
Ensuring a consistent to growing dividend for shareholders
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AFIC’s franking reserve balance ensures we can pay a consistent dividend even through
volatile times – full year dividends last 5 financial years

Half-Year Results –January 2024
Markets and the Portfolio
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Half-Year Results –January 2024
Portfolio* and Sector Performance to 31 December 2023
12 Month Sector Performance
* Assumes the full benefit of franking credits. Per annum returns other than for six months.
Past performance is not indicative of future performance.
Includes dividends but not franking.
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Half-Year Results –January 2024
6,900
7,000
7,100
7,200
7,300
7,400
7,500
7,600
7,700
7,800
7,900
Jan 23Feb 23Mar 23Apr 23May 23Jun 23Jul 23Aug 23Sep 23Oct 23Nov 23Dec 23
Record start to
the year for
ASX200, REITs
surge.
RBA hikes
25bp
Fed hikes
25bp
Fed hikes
25bp
RBA hikes
25bp
RBA hikes
25bp
China warns against iron
ore price gouging in March,
iron ore falls -16% in April.
Oil falls below
$70 on surplus
concerns
Fed hikes
25bp
Surging bond
yields drive
markets
lower.
RBA hikes
25bp
Market anticipates
Fed pivot
Short term volatility providing selective buying opportunities
S&P ASX All Ordinaries – Price
RBA hikes 25bp
Fed hikes 25bp
Source: FactSet

Half-Year Results –January 2024
Despite current uncertainty shareholders are rewarded over the long term
Source: FactSet
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S&P ASX All Ordinaries – Price Index
6%
83-year CAGR

Half-Year Results –January 2024
Valuation in a Long Term Context
Price to Sales – S&P/ASX 200 Index
Price to Book – S&P/ASX 200 Index
Average1.9
Average
1.9
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Source: FactSet

Half-Year Results –January 2024
Quality Companies Find a Way to Grow
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13.5%
12.4%
12.2%
11.1%
10.9%
10.8%
8.8%
8.4%
6.9%
4.5%
Holding
since
2015
Holding
since
2014
Holding
since
2010
Holding
since
2013
Holding
since
2013
Holding
since
2018
Holding
since
2016
Holding
since
2013
Holding
since
1999
Sales from FY02
S&P/ASX 200
10 Year Sales CAGR
Sales Growth Per Annum Since Our First Purchase
3.8%
Holding
since
2016

Half-Year Results –January 2024
Portfolio Set to Perform in Most Economic Settings
AFIC
Stalwarts
Growth Companies
IncomeCyclicals
18%
24%
25%
33%
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25%
24%
18%
33%

Half-Year Results –January 2024
Active Portfolio Management – Recent Transactions
New Purchases
Trimmed Holdings
Additions to Existing Holdings
Complete Disposals
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Half-Year Results –January 2024
Outlook
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Half-Year Results –January 2024
Outlook
The lagged effect of rising interest rates and the high cost of living are placing pressure on the
consumer.
Inflation is declining. Is this sustainable? Implications for interest rates.
Challenging environment for companies to deliver earnings growth.
We remain focused on companies well positioned to create long term shareholder value.
The portfolio is invested in well managed companies with proven track records of financial
discipline capturing value-accretive opportunities as they arise.
We expect high quality companies to continue reporting strong results.
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