Results Webcast Presentation

29 July 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
Results Webcast Presentation


Please find attached the presentation to be given at the Shareholder Webcast being
held today, Monday 29 July 2024 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).


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
Financial Year
2023/24

Full Year Results
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
2

Full Year Results
Overview and Investment
Objectives

Full Year Results
Our Company
4
Invests in Australian and New Zealand companies
Largest listed investment company on the ASX, 160k shareholders, independent Board of Directors
Shareholders own the ‘management rights’ to the portfolio
Management expense ratio of 0.15% 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 stable to growing fully franked dividends
Team manages three other funds – Djerriwarrh, Mirrabooka and AMCIL

Full Year Results
5
Investment Objectives
The Company’s primary investment goals are:
• to pay stable to growing dividends over time; and
• to provide attractive total returns over the medium to long term.

Full Year Results
Attractive Total Returns over the Long-term
6
AFIC NTA vs ASX 200 Accumulation Index
$10k in AFIC  $173k
$10k in the Index  $138k
Excludes the benefit of franking

Full Year Results
Ensuring a stable to growing dividend for shareholders
7
AFIC’s franking reserve balance ensures we can pay a consistent dividend even
through volatile times – full year dividends last 6 financial years

Full Year Results
Financial Results

Full Year Results
* Assumes an investor can take full advantage of the franking credits.
Financial Year in Summary
9

Full Year Results
Share Price Relative to NTA
10
30 June 2024
NTA: $7.88
Share price: $7.15

Full Year Results
Markets and the Portfolio

Full Year Results
Portfolio and Sector Performance – to 30 June 2024
Sector returns do not include franking
Portfolio Return (Including the Full Benefit of
Franking) – Per Annum to 30 June 2024
Sector Performance to 30 June 2024
Past performance is not indicative of future performance.
12

Full Year Results
Portfolio Set to Perform in Most Economic Settings
AFIC
Stalwarts
Growth Companies
IncomeCyclicals
13
16%
34%
24%
26%

Full Year Results
Over the 5-year period to 30 June 2024 AFIC has a higher portfolio return
with less volatility than the S&P/ASX 200 Index (both exclude franking)
11
Source: Mercer Investment Performance Survey of Wholesale-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
14

Full Year Results
Valuation in a Long Term Context
15
ASX 200 Index Price Earnings Ratio
ASX 200 Index Dividend Yield
Source: FactSet

Full Year Results
Active Portfolio Management – Recent Transactions
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Additions to Existing Holdings
New Purchases
Trimmed Holdings
Complete Disposals

Full Year Results
17
CSL is a specialist biotechnology company that develops and
manufactures products to treat serious human medical conditions.
Consistent investment in Research & Development of new pipeline
drugs for long-term earnings growth.
Market leadership position in plasma fractionation operating more
efficiently than competitors.
Recent capital investment increasing capacity while delivering
operating efficiencies and higher returns.
CSL Market Leadership in Growth Markets

Full Year Results
18
James Hardie Continuing to Capture Market Share
Fibre cement gaining market share
Source: James Hardie
•Market leader in fibre cement cladding for US
homes.
•Fibre cement has grown from 9% wall share in
2005 to 22% today. All other competing materials
have lost market share over this period.
•New product development focussed on
architectural trend of modern look homes.
•High return on capital and strong balance sheet.

Full Year Results
Outlook

Full Year Results
Outlook
20
Slowing economic growth providing an increasingly challenging environment for companies to
deliver earnings growth.
Interest rates nearing the end of a raising cycle. Inflation appears to have peaked.
Investment markets been prepared to pay high prices where there is a high degree of confidence
of earnings growth.
Drivers of market performance expected to broaden.
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.