Half Yearly Results Webcast Presentation

22 January 2025


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 22 January 2025 at 3.30 p.m. (AEDT).

To join the webcast please use the link below (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
www.afi.com.au.


Your faithfully


Matthew Rowe
Company Secretary

Release authorised by the Company Secretary.

Half Year Results
January 2025

Half Year Briefing / January 2025
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.
ABN: 56 004 147 120
2
Disclaimer

Half Year Briefing / January 2025
Overview and Investment ObjectivesMark Freeman
Financial ResultsAndrew Porter
Markets and the PortfolioDavid Grace
Recent portfolio activityWinston Chong
OutlookDavid Grace
2
Agenda
3

Full Year Results
Overview and Investment
Objectives

Half Year Briefing / January 2025
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% (annualised) 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
5
Our Company
5

Half Year Briefing / January 2025
6
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.

Half Year Briefing / January 2025
Attractive Total Returns Over the Long-term
7
$10k in AFIC $186k
$10k in the Index $150k
Excludes the benefit of franking.
AFIC NTA vs S&P ASX 200 Accumulation Index

Half Year Briefing / January 2025
Financial Results

Half Year Briefing / January 2025
* Assumes an investor can take full advantage of the franking credits.
Financial Half Year in Summary
9

Half Year Briefing / January 2025
Ensuring a Stable to Growing Dividend for Shareholders
10
AFIC’s franking reserve balance ensures we can pay a consistent dividend even
through volatile times – full year dividends last six financial years.

Half Year Briefing / January 2025
Share Price Relative to NTA
11
31 December 2024
NTA: $8.24
Share price: $7.41

Half Year Briefing / January 2025
Markets and the Portfolio

Half Year Briefing / January 2025
Portfolio* and Sector Performance to 31 December 2024
6 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.
13

Half Year Briefing / January 2025
23%
26%
16%
35%
Portfolio Set to Perform in Most Economic Settings
AFIC
Stalwarts
Growth Companies
Income
Cyclicals
14
Portfolio at 31 December 2024, excludes cash.

Half Year Briefing / January 2025
17.5%
15.6%
12.2%
11.9%
10.8%
10.4%
9.7%
8.3%
6.9%
Quality Companies Find a Way to Grow
15
Holding
since
2015
Holding
since
2014
Holding
since
2010
Holding
since
2013
Holding
since
2013
Holding
since
2016
Holding
since
2013
Holding
since
1999
S&P/ASX 200
10 Year Sales CAGR
Sales Growth Per Annum Since Our First Purchase
3.6%
Holding
since
2016
Source: Goldman Sachs

Half Year Briefing / January 2025
Market Valuation in a Long Term Context
16
Source: FactSet
ASX 200 Firms Trade at an Average Forward PE of 17.6x, which is 20% Above the 20-yr Average

Half Year Briefing / January 2025
Recent Portfolio Activity

Half Year Briefing / January 2025
Active Portfolio Management – Recent Transactions
18
Additions to Existing Holdings
New Purchases
Trimmed Holdings
Complete Disposals

Half Year Briefing / January 2025
Goodman Group
19
• Global property company specialising in industrial property and digital infrastructure.
• Founder led business with strong focus on highest and best use of sites.
• Strategically located sites with access to power are well placed to meet growing demand for
data centres.
EPS vs Share Price
0.2 GW
2.0 GW
North
America
Continental
Europe/UK
0.5 GW
Hong Kong
1.0 GW
Australia &
New Zealand
1.3 GW
Japan
Global Power Bank: 5.0 GW
Source: Goodman Group FY24 Presentation
Source: Diogenes Research

Half Year Briefing / January 2025
Amcor
20
• Global packaging company with market leading positions exposed to consumer staples.
• Capable management team with track record of delivering margin improvement.
• Merger with Berry accelerates earnings growth, largely underwritten by synergies.
AMC US¢ EPS
Source: Diogenes Research
Alcan
acquisition
Bemis
acquisition
0
10
20
30
40
50
60
70
80
90
Berry
acquisition
(announced
Nov-24)

Half Year Briefing / January 2025
Outlook

Half Year Briefing / January 2025
Outlook
22
The valuation of the market is high at a time when earnings growth appears likely to slow.
Heightened geopolitical tensions coupled with an election cycle in many developed markets may
lead to a wide dispersion of potential investment outcomes in the near term.
Maintaining a balanced portfolio remains appropriate.
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.