2025 Annual Reports and AGM Documentation

28 August 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
Statutory Annual Report, Annual Shareholder Review and
Annual General Meeting Documentation


Dear Sir / Madam

Please find attached the 2025 Statutory Annual Report, Annual Shareholder
Review and Annual General Meeting Documentation being sent to
shareholders.


Yours faithfully


Matthew Rowe
Company Secretary


Authorised by the Company Secretary

Income, Capital Growth, Low Cost
ANNUAL REPORT
2025

Contents
AUSTRALIAN FOUNDATION
INVESTMENT COMPANY
IS A LISTED INVESTMENT
COMPANY INVESTING
IN AUSTRALIAN AND
NEW ZEALAND EQUITIES.
DIRECTORS’ REPORT3
5 Year Summary3
About the Company4
Review of Operations and Activities6
Top 25 Investments12
Company Position13
FINANCIAL REPORT32
Financial Statements32
Consolidated Income Statement33
Consolidated Statement
of Comprehensive Income34
Consolidated Balance Sheet35
Consolidated Statement
of Changes in Equity36
Consolidated Cash Flow Statement38
Notes to the Consolidated
Financial Statements39
A. Understanding AFIC’s Financial
Performance39
B. Costs, Tax and Risk43
C. Unrecognised Items46
D. Balance Sheet Reconciliations47
E. Income Statement Reconciliations49
F. Further Information50
CONSOLIDATED ENTITY
DISCLOSURE STATEMENT55
DIRECTORS’ DECLARATION56
INDEPENDENT AUDIT REPORT57
OTHER INFORMATION62
Information About Shareholders62
Major Shareholders63
Sub-underwriting64
Substantial Shareholders64
Transactions in Securities64
Major Transactions in the Investment Portfolio65
Holdings of Securities66
Holdings of International Securities68
Issues of Securities70
Company Particulars72
Shareholder Information73
Board Members14
Senior Executives17
Remuneration Report18
Non-audit Services30
Auditor’s Independent Declaration31
Australian Foundation Investment Company Limited ABN 56 004 147 120

* Assumes a shareholder can take full advantage of the franking credits.
#
Includes 12.0 cent interim dividend.
2025
Year in Summary
Profit for the Year
$285.0m
$296.4m in 2024
Total Portfolio Return
10.7% Including franking*
S&P/ASX 200 Accumulation Index including
franking* 15.1%
Management Expense Ratio
0 .16%
0.15% in 2024
Total Shareholder Return
8.2%
Share price plus dividend, including franking*
Total Portfolio
$10.5b
Including cash at 30 June. $9.9 billion in 2024
Fully Franked Dividend Per Share
14. 5¢ Final
31. 5¢
Total
#
5.0¢ Special
26 cents total in 2024
1
Annual Report 2025
Australian Foundation Investment Company Limited

2
Annual Report 2025
Australian Foundation Investment Company Limited

DIRECTORS’ REPORT
5 Year Summary
Notes:
(a) All dividends were fully franked. The LIC attributable gain per share attached to the dividend (including the special dividend) was 2025: 27.86 cents;
2024: 6.43 cents; 2023: 10.0 cents; 2022: 14.29 cents; 2021: 4.29 cents.
(b) Excludes cash.
(c) Net asset backing per share based on year-end data before the provision for the final dividend. The figures do not include a provision for capital
gains tax that would apply if all securities held as non-current investments had been sold at balance date as Directors do not intend to dispose
of the portfolio.
Net Profit After Tax
($ Million)
Net Profit Per Share
(Cents)
Investments at Market Value
($ Million)
(b)
Net Asset Backing Per Share
($)
(c)
Number of Shareholders
(30 June)
20212022202320242025
235.1
360.6
310.2
19.3
29.4
25.1
7.45
6.63
7.19
159,500
164,979
163,964
8,978
8,087
8,753
Dividends Per Share
(Cents)
(a)
2424
25
23.7
22.7
7.88
8.33
157
,923
26
152
,586
26.5
5.0
296.4
285.0
9,709
10,261
202120222023202420252021202220232024
Special
2025
2021202220232024
20252021202220232024202520212022202320242025
3
Australian Foundation Investment Company Limited
Annual Report 2025

About the Company
How AFIC Invests – What We Look For in Companies
A portfolio that
is managed to
achieve long term
capital and dividend
growth
Quality First
Growth
Including dividends
Value
Australian Foundation
Investment Company (AFIC) is
a Listed Investment Company
investing in Australian and
New Zealand equities.
Investment Objectives
The Company’s primary investment goals are:
• to pay a stable to growing dividend over time; and
• to provide attractive total returns over the medium to long term.
INCOME,
CAPITAL GROWTH,
LOW COST
DIRECTORS’ REPORT
4
Australian Foundation Investment Company Limited
Annual Report 2025

Approach to Investing
Investment Philosophy
Our investment philosophy is built on
taking a medium to long term view on
companies in a diversified portfolio; with
an emphasis on identifying and investing
in quality companies that are likely to
sustainably grow their earnings and
dividends over this timeframe.
Quality in this context is an outcome of
our assessment of the following factors:
1. We prefer companies that have a
leadership position or are developing
one within the industry in which they
operate. This will often mean we are
investing in a unique set of assets with
competitive advantages that produces
attractive returns on invested capital.
2. As a long term, tax aware investor we
seek to be in companies that have a
long term sustainable business model,
with low risk of disruption. This helps
to ensure portfolio turnover remains
low. The analysis may consider
technological disruption, environmental
issues, including the impact of climate
change, and social risks as all of these
factors can have a material impact
on the assessment of a company’s
long term sustainability.
3. We consider how a company’s
business can be potentially impacted
by influences outside the control
of management such as change in
government regulation and/or policy.
4. We are attracted to companies with
outstanding management teams
and boards with strong governance
processes, whose interests are
closely aligned with shareholders,
and act in the best interest of all
their stakeholders, including their
employees, customers, suppliers
and wider communities. We consider
matters including safety, diversity,
social impacts, environmental impact,
and modern slavery where material
or appropriate in the context of that
company. We regularly review and
meet with companies to ensure
ongoing alignment with our investment
frameworks. Our process may
include an assessment of the board
in terms of their past performance,
history of capital allocation, level of
accountability, mix of skills, relevant
experience and succession planning.
We also consider a company’s degree
of transparency and disclosure.
Voting on resolutions is one of the
key functions that a shareholder has
in ensuring better long term returns
and management of investment risk.
We take input from proxy advisers
but conduct our own evaluation of
the merits of any resolution. We vote
on all company resolutions as part
of our regular engagement with the
companies in the portfolio and our
voting record is on the company’s
website. We actively engage with
companies when we are concerned
about resolutions that are not aligned
with shareholders’ interests. We seek
to stay engaged with the companies
and satisfy ourselves that any issues
are taken seriously and worked
through constructively. Ideally we
seek to remain invested to influence
a satisfactory outcome for stakeholders.
5. We prefer companies with more
stable income flows. We are wary
of companies that have large,
inconsistent profit streams.
6. We like our companies to be financially
strong and the assessment of the
balance sheet and the degree to which
the company is self-funding is critical
in our analysis. Cash generation
is also an important consideration.
Analysis of the above factors helps to
inform us of the structure of the industry
and a company’s sustainable competitive
position as well as the quality of the
people running the business, strength
of the balance sheet and consistency
of earnings. Within this analysis some
key financial metrics are considered.
These include return on capital employed,
return on equity, the level of gearing
in the balance sheet, margins and free
cash flow generation.
Alongside the assessment of quality
is an analysis of the ability of companies
to grow earnings over time, which
ultimately should drive dividend growth.
Recognising value is also an important
aspect of sound long term investing.
Short term measures such as the price
earnings ratio, price to book or price
to sales may be of some value but
aren’t necessarily strong predictors
of future performance. Our assessment
of value tries to capture the opportunity
a business has to prosper and thrive
over the medium to long term.
Reporting of social and environmental
issues is being influenced by the
development of climate related
disclosures as required by Australian
Corporate Legislation. Their introduction
in Australia should enable investors over
time to better make informed decisions
on these issues based on company
disclosures arising from these standards.
Assessment of commitments and plans
by companies to reach net zero by 2050
may also be considered having regard to
several factors. These include the industry
in which they operate, progress against
their plans, their broader contribution to
social good in addressing the challenge
of reducing global carbon emissions,
and the impact on their value if they fail
to achieve their stated goals. In applying
external data for benchmarking*, the
current carbon intensity of AFIC’s portfolio
is less than the S&P/ASX 200 Index.
In building the investment portfolio
with the principles outlined, we believe
we can offer investors a well-diversified
portfolio of quality companies, structured
to deliver total returns ahead of the
Australian equity market over the long
term with less volatility and with more
consistent dividends.
From time to time, some borrowings
may be used where potential investment
returns justify the use of debt.
AFIC is managed for the benefit
of its shareholders with fees based
on the recovery of costs rather than
as a fixed percentage of the portfolio.
There are no additional fees. As a result,
the benefit of scale over time results
in a very low expense ratio for investors.
For the 12 months to 30 June 2025 this
was 0.16 per cent, or 16 cents for each
$100 invested.
* Data provided by ISS ESG.
Portfolio at 30 June 2025.

5
Australian Foundation Investment Company Limited
Annual Report 2025

Profit and Dividend
The full year profit was $285.0 million,
down from $296.4 million in the previous
corresponding period. The decrease
in the profit from last year was primarily
due to lower dividends as bank holdings
were trimmed. The management expense
ratio remains low at 0.16 per cent with
no additional fees. This is up marginally
from 0.15 per cent last financial year.
Earnings per share for the financial year
were 22.71 cents per share. The final
dividend was maintained at 14.5 cents
per share fully franked. A special dividend
of 5.0 cents per share has also been
declared. This reflects the significant
amount of realised capital gains and
franking credits generated from trimming
our shareholding in Commonwealth Bank
of Australia during the financial year.
Total fully franked dividends applicable
for the year including the special dividend
are 31.5 cents per share, an increase
of 21.2 per cent from the previous
financial year’s total fully franked
dividend of 26.0 cents per share.
The Board has elected to pay the entire
final and special dividends from capital
gains, on which the Group has paid or
will pay tax. The amount of this pre-tax
attributable gain, known as an ‘LIC capital
gain’, equals 27.86 cents per share. This
enables some shareholders to claim a
tax deduction in their tax return. Further
details are on the dividend statements.
The amount of dividends in the future,
including any special dividends, remains
at the discretion of the Board and depends
on the level of earnings, the amount
of realised capital gains generated
and the reserve of franking credits.
Market and Portfolio
Performance
The S&P/ASX 200 Accumulation Index
(not including the benefit of franking)
rose 13.8 per cent in the financial year
with sector returns widely dispersed.
The best performing sectors were Banks,
up 31.1 per cent, Communication
Services, up 27.8 per cent, and
Information Technology, up 24.2 per cent.
Industrials, up 19.1 per cent,
outperformed the broader Index and was
significantly ahead of the Resources
sector, which was down 3.7 per cent.
Domestic economic conditions proved
more resilient than originally expected,
providing a supportive backdrop for
Australian banks. A significant portion of
the Bank sector’s performance has come
from a re-rating higher of valuation
multiples and less from earnings growth.
In the case of Commonwealth Bank of
Australia, we now view the current
valuation as extreme (Figure 3) and
accordingly have been reducing our
holding in recent months. Slowing growth
of fixed asset investment in China
weighed on the performance of the
Resources sector. In addition to the
Resources sector, other sectors to
underperform the broader market return
of 13.8 per cent included Energy (down
8.1 per cent) and Healthcare (down
4.6 per cent).
The portfolio, including the benefit
of franking, returned 10.7 per cent,
underperforming the S&P/ASX 200
Accumulation Index return of
15.1 per cent when franking is included.
Strong returns came from our holdings
in JB Hi-Fi, Wesfarmers, Coles Group,
Computershare and Netwealth Group,
which all materially outperformed the
market. A drag on performance came
from several quality companies that
underperformed the market during the
year. These included ARB Corporation,
James Hardie Industries, CSL and Reece
Limited. We still consider the long term
prospects for these companies to remain
strong. IDP Education, which has been
a disappointing investment for us, also
had a material negative impact on
performance. Additionally, having no
exposure to gold producers dragged
on performance. The All-Ordinaries
Gold Index was up 59.6 per cent during
the year. Widespread uncertainty
regarding the direction of global economic
growth resulted in the perceived safe
haven asset of gold performing well.
Gold producers have historically shown
a variable track record in maintaining
production and increasing profitability
over the medium to long term. On this
basis, AFIC has not traditionally invested
in this sector.
Positioning the Portfolio
In managing the portfolio, we endeavour
to hold a diversified portfolio of quality
companies with an appropriate mix of
income and growth attributes to achieve
our long term investment objectives.
Portfolio adjustments through the year
are consistent with our focus of buying
quality companies during times of bad
news and trimming holdings when
valuations reach extreme levels.
While we endeavour to hold companies
for the long term, selling companies
when we identify a significant deterioration
in future growth prospects remains
fundamental to meeting our long term
investment objectives. We exited Mineral
Resources, Ramsay Health Care and
Domino’s Pizza Enterprises. We are
observing structural industry challenges
for Domino’s Pizza Enterprises and
Ramsay Health Care, which are likely to
weigh on the rate of earnings growth for
both these companies in the foreseeable
future. Competitive intensity has materially
increased for both Mineral Resources
and Domino’s Pizza Enterprises, with the
balance sheet for both companies fully
geared in a tougher operating environment.
Review of Operations and Activities
DIRECTORS’ REPORT
6
Australian Foundation Investment Company Limited
Annual Report 2025

Net asset per share growth
plus dividends, including franking
S&P/ASX 200 Accumulation
Index, including franking
10-year return1-year return3-year return
13.2%
10.7%
15.1%
15.1%
5-year return
12.3%
13.3%
9.5%
10.4%
Figure 2: Portfolio Performance – Per Annum Returns to 30 June 2025
-20%
-10%
0%
10%
20%
30%
40%
Jul 24
Aug 24Sep 24
Oct 24
Nov 24
Dec 24
Jan 25
Feb 25
Mar 25
Apr 25
May 25
Jun 25
S&P/ASX 200
Banks
S&P/ASX 200
Industrials
S&P/ASX 200
Index
S&P/ASX 200
Resources
Figure 1: Key Sector Performance for the 12 Months to 30 June 2025
Includes the full benefit of franking credits.
Note: AFIC’s performance returns are after costs. AFIC on occasions incurs realised capital gains
tax on the sale of shares. Not all the of the franking generated from these realised capital gains
is paid out immediately as dividends and is therefore not included in these performance figures.
Past performance may not be indicative of future performance.
Australian Foundation Investment Company Limited
7
Annual Report 2025

While the trimming of our shareholding
in the Commonwealth Bank of Australia
has weighed on returns given its ongoing
strength in the market, we still consider
our average sale price reflects a position
where the shares were sold at a time
when they were trading at extreme
valuations (Figure 3).
The majority of purchases during the
year were undertaken to increase
weightings in existing holdings BHP,
Goodman Group, ResMed, NEXTDC,
WiseTech Global and Cochlear.
We initiated positions in BlueScope Steel,
Sigma Healthcare, Telix Pharmaceuticals
and Worley. BlueScope Steel is a cyclical
company with operations predominantly
in Australia and the United States.
The company has a number of ‘self-help’
drivers beyond the cycle likely to deliver
significant earnings growth over the
medium term. These predominantly relate
to capital investment into growth projects.
Sigma Healthcare merged with Chemist
Warehouse during the year. We took
a small position pre-ACCC approval
of the merger. We are wishing to make
our holding significantly larger over time
(at an appropriate valuation) given the
strong market position and large market
opportunity for Chemist Warehouse.
Telix Pharmaceuticals is predominantly
focused on the diagnosis and treatment
of prostate cancer. Telix Pharmaceuticals
uses a targeting agent with a radioactive
isotype concentrating radiation at the
tumour site for either imaging or therapy.
The technology is being widely adopted
by industry practitioners resulting in
strong earnings growth. The range of
potential outcomes is widely dispersed;
accordingly we elected to establish a
small holding looking to increase our
weighting should our conviction grow.
Worley is an engineering and professional
services company operating in the
energy, chemicals and resources end
markets. Historically, Worley contracted
on a fixed price lump sum basis, meaning
earnings were highly cyclical dependent
on the successful delivery of projects
within budget. Demand for engineering
services, particularly in the energy
market, is growing strongly at a time
when professional service firms have
substantially consolidated. The result
is more favourable contracting terms
on a cost plus model materially
reducing earnings risk.
DIRECTORS’ REPORT
Review of Operations and Activities continued
Figure 3: Commonwealth Bank of Australia Valuation – Price to Earnings Ratio
Jun 05
Times
Jun 06Jun 07Jun 08Jun 09Jun 10Jun 11Jun 12Jun 13Jun 14Jun 15Jun 16Jun 17Jun 18Jun 19Jun 20Jun 21Jun 22Jun 23Jun 24Jun 25
30
Average 15.1
25
20
15
10
Source: FactSet
Figure 4: AFIC Investment by Sector Versus the S&P/ASX 200 Index
as at 30 June 2025 – Excludes International Holdings
0%
5%
10%
15%
20%
25%
AFIC portfolio weightS&P/ASX 200 Index weight
20.4%13.0%12.4%11.5%9.9%7.3%0.0%7.2%3.4%5.2%2.7%3.3%3.9%
Banks
Materials
Healthcare
Industrials
Other
Financials
Consumer
Discretionary
Consumer
Staples
Communication
Services
Information
Technology
Energy
Real Estate
Cash
Utilities
8
Australian Foundation Investment Company Limited
Annual Report 2025

International Portfolio
We have continued to manage the
global portfolio (within the AFIC portfolio)
over the period. This portfolio was first
initiated in May 2021. Whilst significant
preparatory work has been done for
establishing a separate low-cost global
investment company in the future, we are
still considering the most appropriate next
steps for this initiative. AFIC has invested
a total of $103.5 million of shareholder
capital in the global portfolio, which is
valued at $168.1 million as at 30 June 2025.
At current value, the global portfolio
represents about 1.6 per cent of the
overall AFIC portfolio.
AFIC’s global portfolio returned
14.0 per cent for the financial year,
an attractive return for shareholders
although below our benchmark.
Gross returns in Australian dollars
to 30 June 2025
1 Year
% pa
3 Year
% pa
Since
Inception
% pa
AFIC global
portfolio14.021.014.0
Benchmark18.520.314.0
Differential(4.5)0.70.0
Source: Northern Trust.
Volatility stemming in part from changes
to United States domestic and foreign
policy resulted in a negative shift in
sentiment towards a number of our
holdings, although we continue to believe
their characteristics and prospects will
produce attractive risk adjusted returns
for our shareholders over the long term.
During the year we established new
positions in Expand Energy, Spotify,
Haleon, Builders FirstSource and Zoetis.
These investments were funded via
trimming our Costco position and the
complete exits of Cintas, UnitedHealth
Group, Louis Vuitton, Estée Lauder and
Nike. In addition, we switched our GLP1
exposure from Novo Nordisk into Eli Lilly.
During the tariff induced sell off in April,
we added to existing holdings at attractive
prices including Nvidia, Freeport
McMoran, Halma and Marriott.
Figure 5: Share Price Premium/Discount to Net Asset Backing
June 15June 16June 17June 18June 19June 20June 21June 22June 23June 24June 25
20%
15%
10%
5%
0%
-5%
-10%
-15%
9
Australian Foundation Investment Company Limited
Annual Report 2025

Share Price Return
Over the 12-month period the share
price has moved from a discount of
9.3 per cent to the net asset backing
of $7.88 per share at 30 June 2024
to a discount of 11.8 per cent to net
asset backing of $8.33 per share at
30 June 2025 (Figure 5), Total share price
return including franking was 8.2 per cent
over the 12-month period.
As illustrated in Figure 5, the extent of this
discount is unusual in the context of the
historical trend. There appears to have
been less demand for Listed Investment
Companies across the industry as interest
rate products have become more
attractive. In an environment where the
Index increases strongly, the share price
of listed investment companies can also
sometimes lag the market performance,
with AFIC not immune from this trend.
The discount is not something that we
can control in the short term, but we are
very conscious of this issue. As a result,
we have lifted our communication with
brokers and financial planners, moved to
weekly disclosure of the portfolio NTA and
begun to buy back shares in an orderly
fashion as and when opportunities arise.
In total, approximately 9.0 million shares
were bought back at a cost of
approximately $66.3 million.
The way that AFIC shares are priced
relative to the NTA will likely move from
modest premiums to discounts over time,
which is impacted by a range of factors
such as the level of interest rates and the
broader stock market, but we remain very
focused on investing in quality companies
that outperform the market over an
extended period. This will ultimately drive
our share price more than the shorter
term vagaries of the market.
Outlook
Market conditions remain unpredictable
with the outlook for economic growth
uncertain, consumer confidence softening
and the prospect for the employment
market remaining highly uncertain.
In this environment corporate earnings
appear set to slow as revenue growth
appears harder to achieve with many
corporates now talking about cost
out initiatives.
Valuations are trading above long term
averages and at extreme levels for a
number of companies (Figure 6). In this
context the dividend yield for the market
is also trading below the long term
average as share prices have run
strongly across the market (Figure 7).
The dispersion in market valuations
between the winners and losers is also
extremely wide and is likely to exacerbate
volatility as we anticipate that the market’s
tolerance for earnings disappointment
won’t be high. Patient deployment of
capital is required in times like these.
Finally, geopolitical factors remain highly
relevant with the occurrence of ongoing
conflicts and with politics, particularly
out of the United States, driving sharp
changes in market sentiment.
While we are aware of the volatile
geopolitical environment, our focus
continues to remain on the fundamentals
of the companies we seek to invest in.
We consider the portfolio remains invested
in quality companies forecast to deliver
an appropriate mix of income and growth
returns positioning us well to deliver
our long term investment objectives.
DIRECTORS’ REPORT
Review of Operations and Activities continued
Figure 7: Valuation of the Market – Dividend Yield of the S&P/ASX 200 Index
Jun 05Jun 06Jun 07Jun 08Jun 09Jun 10Jun 11Jun 12Jun 13Jun 14Jun 15Jun 16Jun 17Jun 18Jun 19Jun 20Jun 21Jun 22Jun 23
Jun 24Jun 25
Per cent
2.0
2.5
3.0
3.5
4.0
4.5
5.0
5.5
6.0
6.5
7.0
Average 4.1%
Figure 6: Valuation of the Market – Price to Earnings Ratio of the S&P/ASX 200 Index
Jun 05Jun 06Jun 07Jun 08Jun 09Jun 10Jun 11Jun 12Jun 13Jun 14Jun 15Jun 16Jun 17Jun 18Jun 19Jun 20Jun 21Jun 22Jun 23
Jun 24Jun 25
Times
Average 14.8
8
10
12
14
16
18
20
Source: FactSet
Source: FactSet
10
Australian Foundation Investment Company Limited
Annual Report 2025

11
Australian Foundation Investment Company Limited
Annual Report 2025

Includes investments held in both the investment and trading portfolios.
Value at Closing Prices at 30 June 2025
Total Value
$ Million
% of the
Portfolio
1Commonwealth Bank of Australia968.59.4
2BHP 762.77.4
3CSL 632.96.2
4Macquarie Group 491.24.8
5National Australia Bank 485.54.7
6Wesfarmers 473.84.6
7Westpac Banking Corporation449.74.4
8Goodman Group394.63.8
9Transurban Group 369.03.6
10Telstra Group 305.73.0
11ResMed 252.92.5
12ANZ Group Holdings 216.22.1
13CAR Group 212.92.1
14James Hardie Industries*211.42.1
15Woolworths Group 207.42.0
16Rio Tinto 199.51.9
17Woodside Energy Group 192.91.9
18Coles Group* 192.41.9
19Xero 150.11.5
20Mainfreight 149.61.5
21Computershare 144.81.4
22REA Group 138.81.4
23ARB Corporation 138.21.3
24Brambles 136.81.3
25Amcor136.61.3
Total8,014.0
As percentage of total portfolio value (excludes cash)78.1%
* Indicates that options were outstanding against part of the holding.
Top 25 Investments
At 30 June 2025
DIRECTORS’ REPORT
12
Australian Foundation Investment Company Limited
Annual Report 2025

DIRECTORS’ REPORT
Company Position
The following changes occurred to the
Company’ share capital during the year:
• Under the Company’s Dividend
Substitution Share Plan, 919,786 new
shares were issued at nil cost in August
2024 and 763,944 new shares were
issued at nil cost in February 2025.
• Under the Company’s Dividend
Reinvestment Plan, 5,461,382 new shares
were issued at a price of $7.26 in August
2024 and 4,350,392 new shares were
issued at a price of $7.40 in February 2025.
During the year the Company bought back
shares through its on-market buy-back
facility. A total of 9,007,117 shares for a total
consideration of $66.3 million were bought
back and cancelled.
The Company’s contributed equity, net
of share issue costs, rose $5.2 million to
$3.2 billion. At the close of the year the
Company had 1,254 million shares on issue.
Dividends
Directors have declared a fully franked
final dividend of 14.5 cents per share
and a special dividend of 5.0 cents per
share, up from 14.5 cents last year.
The dividends paid during the year
ended 30 June 2025 were as follows:
$’000
Final dividend for the year
ended 30 June 2024 of
14.5 cents fully franked
at 30 per cent paid
30 August 2024174,798
Interim dividend for the year
ended 30 June 2025 of 12 cents
per share fully franked at
30 per cent, paid
25 February 2025144,717
319,515
Dividend Substitution
Share Plan (DSSP)
The Company has in place a Dividend
Substitution Share Plan.
This enables shareholders to elect to
receive shares in the Company instead
of dividends, forgoing any franking credit
and LIC gains that would otherwise be
attached to the dividend but deferring
any tax due on the receipt of such shares
(for Australian tax payers) until such time
as the shareholding is sold. Shareholders
will need to seek their own taxation advice
in determining if this plan is suitable for them.
Further details are available on the Company’s
website or by request from the Company’s
Share Registrar.
Financial Condition
The Company’s primary source of funds
consists of its shareholders’ funds. The
Company also had agreements with
Commonwealth Bank of Australia and
National Australia Bank for loan facilities
totalling $100 million (see Note D2).
As at 30 June 2025, the facilities were
drawn down by $10 million. The Board
takes a prudent and conservative approach
to the use of borrowed funds. Currently,
when used, they are maintained within
a limit of 10 per cent of total assets.
Listed Investment Company
Capital Gains
Listed Investment Companies (LIC), which
make capital gains on the sale of investments
held for more than one year, are able to
attach to their dividends an LIC capital gains
amount, which some shareholders are able
to use to claim a tax deduction. This is called
an ‘LIC capital gain attributable part’. The
purpose of this is to put shareholders in
Listed Investment Companies on a similar
footing with holders of managed investment
trusts with respect to capital gains tax
on the sale of underlying investments.
Tax legislation sets out the definition of a
‘Listed Investment Company’, which AFIC
satisfies. Furthermore, from time to time the
Company sells securities out of the investment
portfolio held for more than one year, which
may result in capital gains being made and
tax being paid. The Company is therefore
on occasion in a position to be able to
make available to shareholders a LIC capital
gain attributable part with our dividends.
In respect of this year’s final and special
dividends of 19.5 cents per share for the
year ended 30 June 2025, it carries with
it a 27.9 cents per share LIC capital gain
attributable part (2024: 6.4 cents). The
amount which shareholders may be able
to claim as a tax deduction depends
on their individual situation. Further details
are provided in the dividend statements.
Likely Developments
The Company intends to continue investing
on behalf of its shareholders as it has been
doing since 1928. The results of these
investment activities will depend upon the
performance of the companies and securities
in which we invest. Their performance in
turn depends on many economic factors
(macro, which include economic growth
rates, inflation, interest rates, exchange
rates and taxation levels, and micro, which
includes industry economics and competitive
behaviour) and their approach to, and
management of, material Environmental,
Social and Governance (ESG) risks.
We do not believe it is possible or
appropriate to make a prediction on the
future course of markets or the performance
of our investments. Accordingly, we do not
provide a forecast of the likely results of our
activities. However, the Company’s focus is
on paying stable to growing dividends over
time and providing attractive total returns
over the medium to long term.
Significant Changes
in the State of Affairs
Directors are not aware of any other
significant changes in the operations
of the Company, or the environment
in which it operates, that will adversely
affect the results in subsequent years.
Events Since Balance Date
The Directors are not aware of any matter
or circumstance not otherwise disclosed
in the financial statements or the Directors’
Report which has arisen since the end
of the financial year that has affected or may
affect the operations, or the results of those
operations, or the state of affairs of the
Company in subsequent financial years.
Environmental Regulations
The Company’s operations are such that
they are not directly materially affected
by environmental regulations.
As an overseas listed issuer on the New
Zealand Stock Exchange (NZX) that does
not have a large presence in New Zealand,
the Company is relying on the exemption
in clause 6 of the Financial Markets Conduct
(Climate-related Disclosures for Foreign
Listed Issuers) Exemption Notice 2024
in respect of the accounting period from
1 July 2024 to 30 June 2025. The effect
of relying on the exemption is that for the
accounting period ended 30 June 2025,
the Company is not required to comply
with climate reporting (including producing
climate statements), assurance and
record-keeping requirements imposed
under part 7A of the Financial Market
Conduct Act 2013. Whilst the Company
does not currently produce climate
statements, any future disclosures, including
the proposed Australian mandatory
climate-related financial disclosures, will
be able to be accessed on the Company’s
website. This information is provided
for the purposes of clause 7(1)(c) of the
Financial Markets Conduct (Climate-related
Disclosures for Foreign Listed Issuers)
Exemption Notice 2024.
Rounding of Amounts
The Company is of the kind referred to
in the ASIC Corporations (Rounding in
Financial/Directors’ Reports) Instrument
2016/191, relating to the ‘rounding off’
of amounts in the Financial Report. Amounts
in the Financial Report have been rounded
off in accordance with that Instrument
to the nearest thousand dollars, or in certain
cases to the nearest dollar.
Corporate Governance Statement
The Company’s Corporate Governance
Statement for the financial year ended
30 June 2025 will be found on the Company’s
website at: afi.com.au/corporate-governance.
As an overseas listed issuer on the
New Zealand Stock Exchange (NZX), the
Company is generally deemed to comply
with the NZX Listing Rules provided that
the Company remains listed on the ASX,
complies with the ASX Listing Rules and
provides the NZX with all the information
and notices that it provides to the ASX.
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Board Members
DIRECTORS’ REPORT
Member of the Investment,
Remuneration and
Nomination Committees.
Ms Dee-Bradbury was
appointed to the Board in
May 2019. Ms Dee-Bradbury
is a Non-Executive Director
at BlueScope Steel Limited
(appointed April 2014), a
Director of Energy Australia
Holdings following her
appointment in April 2017
and a member of Chief
Executive Women.
Ms Dee-Bradbury was
previously Non-Executive
Director of Bapcor Limited,
Chief Executive Officer/
President of Developed
Markets (Asia Pacific and
ANZ) for Mondelez from
2010 to 2014. Before joining
Mondelez, Ms Dee-Bradbury
was Group CEO of the global
Barbeques Galore group and
has held other senior executive
roles in organisations including
Maxxium, Burger King
Corporation and Lion
Nathan/Pepsi Cola Bottlers.
Member of the Investment
and Nomination Committees.
Managing Director of the
Company’s subsidiary,
Australian Investment Company
Services Limited (AICS).
Mr Freeman became
Chief Executive Officer and
Managing Director in January
2018 having been Chief
Investment Officer since joining
the Company in February
2007. Prior to this he was a
Partner with Goldman Sachs
JBWere where he spent 12
years advising the investment
companies on their investment
and dealing activities. He
has a deep knowledge and
experience of investment
markets and the Company’s
approaches, policies and
processes. He is also
Managing Director of
Djerriwarrh Investments
Limited, Mirrabooka
Investments Limited
and AMCIL Limited.
Rebecca Dee-Bradbury
–
Independent Non-Executive
Director
BBus, GAICD
Mark Freeman
–
Managing Director
BE, MBA, Grad Dip App Fin
(Sec Inst), AMP (INSEAD)
Chairman of the Audit
Committee and member
of the Investment and
Nomination Committees.
Ms Fahey was appointed
to the Board in April 2021.
She has over 30 years of
experience in technology,
including in major organisations
such as Western Mining,
Exxon, Roy Morgan, General
Motors and SAP, covering
consulting, software vendor
and Chief Information Officer
roles. In addition to her
industry experience, she
spent 10 years at KPMG as
a partner with the firm, during
which time she held roles
as National Lead Partner
Telecommunications, Media
and Technology, and National
Managing Partner – Markets.
She was also a member
of the KPMG National
Executive Committee.
Ms Fahey is a Non-Executive
Director of Datacom and
a member of the Australian
Red Cross LifeBlood board.
She was formerly a Non-
Executive Director of IRESS
Limited, Seek Limited, Vocus,
Partnerslife and Cenitex and
formerly a member of the
Latrobe University Council.
Julie Fahey
–
Independent Non-Executive
Director
BAS
Chairman of the Investment
and Nomination Committees.
Member of the Remuneration
and Audit Committees.
Non-Executive Chairman
of the Company’s subsidiary,
Australian Investment Company
Services Limited (AICS).
Mr Drummond was appointed
to the Board in July 2021.
He is Chairman of Transurban
Co Ltd, Chairman of The Ian
Potter Foundation and a
Director of Ramsay Health
Care Ltd. He was a Director
of the Geelong Football Club
from 2011 to 2024 and
President of the Club from
2021 until the end of 2024.
Mr Drummond served as Chief
Executive Officer of Medibank
from July 2016 to May 2021.
Prior to joining Medibank, he
was Group Executive Finance
and Strategy of National
Australia Bank (NAB), and Chief
Executive Officer and Country
Head of Bank of America Merrill
Lynch (Australia). He served
as a Member of the Financial
Regulator Assessment
Authority from 2021 to 2023.
Earlier in his career,
Mr Drummond worked in
equity research at JBWere,
and subsequently held roles
including Chief Operating
Officer, Chief Executive Officer
and Executive Chairman of
Goldman Sachs JBWere.
Craig Drummond
–
Chairman and Independent
Non-Executive Director
BCom (Melb), SF FIN, FCA
14
Australian Foundation Investment Company Limited
Annual Report 2025

Chairman of the Remuneration
Committee and member
of the Investment and
Nomination Committees.
Mr Liebelt was appointed to
the Board in June 2012. He
is Chairman of Amcor Limited.
He is a Fellow of the Australian
Academy of Technological
Sciences and Engineering and
a Life Fellow of the Australian
Institute of Company Directors.
He was formerly Director of
Australia and New Zealand
Banking Group Limited,
Chairman and Director of
DuluxGroup Limited, a Director
of Carey Baptist Grammar
School, Chairman and Director
of the Global Foundation,
Deputy Chairman of
Melbourne Business School
and Managing Director
and CEO of Orica Limited.
Member of the Audit and
Nomination Committees.
Ms Hudson was appointed
to the Board in January 2024.
She has more than 25 years of
experience in investment
markets, including roles as
an equities research analyst,
head of research and
portfolio manager.
Ms Hudson is currently a
portfolio manager for Yarra
Capital Management focused
on the small and mid cap
universe and, in addition,
serves as Yarra Capital’s
Head of Australian Equities
Research. Prior to transitioning
to Yarra Capital Management,
she was a managing director
at Goldman Sachs Asset
Management and has
previously worked as an
equities analyst and partner
at JBWere. Prior to this
she spent seven years
at PwC, where she was a
senior manager primarily
focused on mergers and
acquisitions advisory and
transaction support.
Ms Hudson is currently
a Director of Yarra Capital
Management and the Hawthorn
Football Club.
Member of the Nomination
Committee.
Mr Murray was appointed to
the Board in January 2024.
Mr Murray has over 30 years’
experience in the retail industry,
assurance and advisory
services and listed public
companies. His most recent
executive experience includes
CEO of Total Tools Holdings
and CEO Premier Retail
and Executive Director
of Premier Investments.
Prior to his role at Premier
Investments, he was the Group
Chief Executive Officer from
2014 to 2021 and Executive
Director of JB Hi-Fi, the major
electronic and white-goods
retailer. He had an 18-year
career at JB Hi-Fi, commencing
in 2003, initially as Chief
Financial Officer, taking the
business through the IPO
process. Prior to that he
had roles for 10 years in
the Corporate Finance and
Assurance and Advisory
practices at Deloitte.
Mr Murray holds a Bachelor
of Commerce degree
from Melbourne University,
a Graduate Diploma in
Applied Finance and
Investment and is a qualified
Chartered Accountant.
Graeme R Liebelt
–
Independent Non-Executive
Director
BEc (Hons), FAICDLife, FTSE
Katie Hudson
–
Independent Non-Executive
Director
BCom (Melb)
Richard Murray
–
Independent Non-Executive
Director
B.Comm, Grad.Dip. Applied
Finance and Investment, FCA
Member of the Audit,
Investment and Nomination
Committees. Non-Executive
Director of the Company’s
subsidiary, Australian
Investment Company
Services Limited (AICS).
Mr Peever was appointed to
the Board in November 2013.
He was Managing Director of
Rio Tinto Australia from 2009
to 2014. He is Chairman of
Brisbane Airport Group Pty
Ltd. He chaired the Minister
of Defence’s First Principles
Review of Defence and
following the acceptance
of the review by Government
was Chair of the Oversight
Board, which helped guide
implementation (with
Defence) of the Review’s
recommendations.
Mr Peever was a Non-
Executive Chairman of Naval
Group Australia, a former
member of the Foreign
Investment Review Board,
a former Chair of Cricket
Australia and a former Director
of the Stars Foundation, a not
for profit body which promotes
education of Indigenous
girls and also a former Vice
Chairman of the Minerals
Council of Australia and
was a Director of the Business
Council of Australia.
David A Peever
–
Independent Non-Executive
Director
BEc MSC (Mineral Economics)
15
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Annual Report 2025

Board Members continued
DIRECTORS’ REPORT
Meetings of Directors
The number of meetings of the Company’s Board of Directors and of each Board Committee held during the year ended 30 June 2025
and the numbers of meetings attended by each Director were:
BoardInvestmentAuditRemunerationNomination
Eligible
to AttendAttended
Eligible
to AttendAttended
Eligible
to AttendAttended
Eligible
to AttendAttended
Eligible
to AttendAttended
CM Drummond 881313442222
RM Freeman 881313–4
#
–2
#
22
RP Dee-Bradbury 881313–4
#
2122
JA Fahey 8813944–2
#
22
KM Hudson 88–12
#
44––22
GR Liebelt 881313–4
#
2222
RL Murray 88–11
#
–2
#
––22
DA Peever 88131244–2
#
22
# Attended meetings as non-members.
Insurance of Directors and Officers
During the financial year, the Company paid insurance premiums to insure the Directors and officers named in this report to the extent
allowable by law. The terms of the insurance contract preclude disclosure of further details.
16
Australian Foundation Investment Company Limited
Annual Report 2025

Mr Driver joined the Company
in January 2003. Previously,
he was with National Australia
Bank Ltd for 18 years in
various roles covering business
strategy, marketing, distribution,
investor relations and business
operations. Mr Driver was
formerly Chairman of Trust
for Nature (Victoria).
Mr Porter joined the Company
in January 2005. He is a
Chartered Accountant and
has had over 30 years’
experience in accounting and
financial management both
in the United Kingdom with
Andersen Consulting and
Credit Suisse First Boston,
and in Australia where he
was Regional Chief Operating
Officer for the Corporate and
Investment Banking Division
of CSFB. He is a Director of
the Auditing and Assurance
Standards Board (AUASB)
and a Director of the Anglican
Foundation. Mr Porter is a
former Chair of The Group
of 100 (G100), the peak
body for CFOs.
Mr Rowe joined the Company
in July 2016. He is a Chartered
Secretary with over 18 years
of experience in corporate
governance with a particular
focus in Listed Investment
Companies. He was previously
a corporate governance adviser
at a professional services firm,
which included acting as
Company Secretary for three
ASX listed companies. Prior
to that he was the Company
Secretarial Manager for a funds
management company based
in the United Kingdom.
Geoffrey N Driver
–
General Manager
Business Development
and Investor Relations
B Ec, Grad Dip Finance,
MAICD
Andrew JB Porter
–
Chief Financial Officer/
Company Secretary
MA (Hons) (St And),
FCA, MAICD
Matthew J Rowe
–
Company Secretary
BA (Hons), MSc Corp Gov,
FGIA, FCG
Senior Executives
DIRECTORS’ REPORT
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Australian Foundation Investment Company Limited
Annual Report 2025

Contents
The Directors present AFIC’s 2025 Remuneration Report, which outlines key aspects of our remuneration policy and remuneration
awarded this year.
Note on Incentives
The Remuneration Committee uses a range of performance measures to inform their deliberations. Whilst the Incentive Plan is termed
the ‘annual’ Incentive Plan, the performance measures used cover one, three, five and 10 years. The plan is therefore a mixture of short
and long term incentives. The Remuneration Committee considers the various measures holistically to make a determination on the
progress of AFIC (and the other LICs) in meeting their defined investment goals.
Awards under the Incentive Plan are paid in cash. Executives are required to use 25 per cent of the pre-tax amount of any incentive
that vests to purchase shares in AFIC and/or the other LICs (see below). Executives are expected to build over time and maintain
an appropriate holding not only in AFIC shares, but also in shares in the other LICs to which the Executives provide service.
Note on AFIC’s Proportion of the Costs Detailed in the Remuneration Report
The Remuneration Report is required to show the salary and incentives that the Group Executives receive. It does not accurately reflect
the actual cost to AFIC shareholders of this remuneration as the other companies that the Executives provide services to (Djerriwarrh
Investments Ltd, Mirrabooka Investments Ltd and AMCIL Ltd, collectively ‘the LICs) pay for a proportion of these costs.
The total remuneration shown in Table 3 is $3.6 million.
Of this, 45 per cent (or $1.6 million) is or will be paid for by the other LICs, through the service agreements with AFIC’s subsidiary,
Australian Investment Company Services Ltd (AICS).
Therefore, 55 per cent, or $2.0 million, will be borne by AFIC and its shareholders.
The report is structured as follows:
1. Remuneration Policy, Link to Performance and Outcomes
2. Structure of Remuneration
3. Contract Terms
4. Non-Executive Director Remuneration
DIRECTORS’ REPORT
Remuneration Report
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Annual Report 2025
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Australian Foundation Investment Company Limited

Appendix
A. Remuneration Governance
B. Annual Incentives: Details of Outcomes and Conditions
C. Directors and Executives: Equity Holdings and Other Transactions
D. Potential Clawback of Incentives
E. Detailed Performance Measures by Investment Company
1. Remuneration Policy, Link to Performance and Outcomes
1.1 What is our Remuneration Policy?
AFIC is an investor in securities which are listed mainly in Australia and New Zealand. Our primary investment goals are to ‘provide
attractive total returns over the medium to long term and to pay a stable to growing dividend over time’.
To achieve this we need to attract and retain professional, competent and highly motivated executives and staff through offering
attractive remuneration arrangements, which:
• reflect market conditions;
• recognise the skills, experience, roles and responsibilities of the individuals;
• align with shareholder interests; and
• align with the risk management strategies.
Generally, we seek to set total remuneration above the median level of the sectors in which we operate.
Remuneration for the Group’s executives has two main elements:
• fixed annual remuneration (FAR); and
• performance-related pay (Incentive Plan).
FAR is determined with reference to levels necessary to recruit and retain staff with the relevant skills and experience in the industry in
which the Group operates. We utilise external input, seeking to ensure that the FAR meets these reference levels. This includes industry
data provided by the Financial Institutions Remuneration Group Inc. (FIRG) for the financial services industry. The costs of the FAR (and
the personal element of the Incentive Plan) are allocated to the LICs based on an internal estimate of work performed which is subject
to Board approval.
Through performance-related pay, the remuneration is adjusted to reflect the risks that the Company and its shareholders face and
how the Company has responded to those risks. In particular:
• the key performance indicators chosen to determine performance-related pay are those that the Company considers most relevant
to its objectives of improving shareholder wealth over the medium to long term, whilst also considering the relative levels of risk;
• the focus is on performance over the medium to long term. A smaller proportion of the Incentive Plan is based on investment returns
over the most recent year’s performance; and
• executives agree to invest 25 per cent of the pre-tax annual cash incentive in AFIC shares and/or shares of the other investment
companies that AICS currently or will in the future provide services to and to hold these shares for a minimum of four years.
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1.2 What is Our Target Remuneration Mix?
The target remuneration mix for executives is as follows:
Managing Director’s
Target Remuneration Mix
Other Executives’ Target
Remuneration Mix
Fixed annual remuneration 50%
Annual incentive 50%
Fixed annual remuneration 67%
Annual incentive 33%
1.3 How is the Remuneration Paid in 2025 Linked to Performance?
1.3.1 Fixed Remuneration
Most executives received increases in their fixed annual remuneration this year. AFIC continues to operate in a highly competitive
market, and salary levels are reviewed at least annually. The Company aims to attract and retain executives who are extremely
competent and highly motivated.
Performance-related Pay
This section shows how Incentive measurements are split between AFIC and the other investment companies.
%Result
AFIC investment performance32Table 2
AFIC other metrics 8Table 1
Percentage of incentive determined by AFIC performance40
Other LIC investment performance28Table 9
Other LIC other metrics12Table 9
Percentage of incentive determined by other LIC performance40
Total percentage of Incentive determined by AFIC/Other LIC performance80
Personal metrics20N/A
100
See Section 2 for more details on the measures used in determining the annual incentives.
Commentary
The Banks Index continued to outperform during the year ended 30 June 2025, up another 31.1 per cent, whilst the S&P/ASX Gold
Index was up 59.6 per cent. These are both areas of the market where AFIC is underweight, and this contributed, amongst other
factors, to AFIC underperforming the S&P/ASX 200 during the year. This underperformance has had an effect on longer-term
performance, with AFIC falling below the benchmarks for three, five and 10 years, and on the risk/reward measure. This
underperformance has been reflected in the remuneration figures shown in Table 3. As noted above, not all of the incentive payment is
based on AFIC’s performance – 60 per cent of the Incentive Plan is based on personal KPIs and on the performance of the other LICs.
The incentive paid based on the performance of the other LICs is charged to those LICs and is not borne by AFIC.
It should be noted that many returns quoted by managed funds exclude either tax or expenses, or both. The use of ‘grossed-up
returns’ mitigates the tax disparity to some extent, as it adds back franking credits to the nominal dividend that the Index pays, and also
that AFIC pays. The extent to which franking credits are retained by the Company, particularly from capital gains, will be a drag on the
stated performance and are only reflected in performance when the Board elects to pay them out, whilst being mindful of the need
to preserve a suitable reserve of franking credits to meet future dividends.
Remuneration Report continued
DIRECTORS’ REPORT
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Australian Foundation Investment Company Limited

For the other LICs, AMCIL also underperformed on its performance measures, although the returns measured from the beginning of
2023 when there was a limited restructure continue to be favourable, but this recent improvement is not reflected fully in the measures
used. Mirrabooka outperformed on all of its longer term investment targets, in several cases very strongly, despite underperforming
on a one-year basis.
AMCIL’s MER remained constant at 0.56 per cent whilst Mirrabooka’s MER fell from 0.56 per cent to 0.54 per cent.
Djerriwarrh also underperformed on its performance measures. However, a significant element of Djerriwarrh’s value proposition is its
ability to pay a fully franked dividend yield higher than that obtainable from the broader market. This has continued during the current
year, and Djerriwarrh has increased its dividend each year since 2021. Djerriwarrh’s MER increased during the year, partly due to reduced
gearing (which also explains part of Djerriwarrh’s underperformance) and also due to a reduced profit from its associated entity, AICS.
The MER for AFIC has increased slightly in the year from 0.15 per cent to 0.16 per cent, but still remains comfortably within the targets
that the Board has set, and which it believes still represents excellent value for shareholders, noting the additional expense (including
additional headcount) being incurred whilst the international portfolio is being trialled.
Earnings growth for AFIC has been subdued in an environment where the dividend income from many companies that constitute
the S&P/ASX 200 has been reducing, particularly from previously large dividend payers such as BHP. Despite this, AFIC has been able
to increase its dividend over each of the last three years.
Detailed information about the performance of each investment company is provided in Section E of the Appendix.
Table 1: Non-investment Return Performance Measures
Performance MeasureBenchmark ResultAFIC Result
Comparison to
Benchmark
Growth in net operating result Est. CPI over 5 years: 3.8%
2.7%Unfavourable
Management expense ratio n/a*
0.16%Favourable
Outcome: Achieved Partially achieved Not achieved
Table 2: Investment Return Performance Measures
^
MeasureBenchmark ResultAFIC Result
Comparison to
Benchmark
Investment return – 1 year13.8%
10.9%Unfavourable
Investment return – 3 years13.6%
12.6%Unfavourable
Investment return – 5 years11.9%
11.6%In line
Investment return – 10 years8.9%
8.4%Unfavourable
Grossed-up return – 1 year15.1%
10.7%Unfavourable
Grossed-up return – 3 years15.1%
13.2%Unfavourable
Grossed-up return – 5 years13.3%
12.3%Unfavourable
Grossed-up return – 10 years10.4%
9.5%Unfavourable
Risk/Reward – 5 years0.96
0.87Unfavourable
Outcome: Achieved Partially achieved Not achieved
* Favourable to Board-established targets and external benchmarks – see above.
^ See Table 7. Note that investment return figures exclude expenses and tax, and the latter in particular can have a meaningful impact on the grossed-up
returns as these tax figures are only included when paid out as dividends. This explains in part the disparity in the differential to the benchmark between
the two measures utilised.
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1.3.2 Remuneration Outcomes
The below table discloses the actual remuneration outcomes received by the Company’s executives during the year.
Table 3: Actual Executive Remuneration Outcomes
Short
Term
Post-
employment
Total
FAR
$
Annual
Incentive
$
Total
Remune-
ration
$
Fixed/
Perform-
ance-
related
%
Total
Borne by
AFIC
$
Total
Borne by
Other
LICs
$
Incentive
Forfeited
$
Base
Salary
$
Super-
annuation
$
Mark Freeman – Managing Director
2025943,90030,000973,900439,7161,413,61669%/31%753,214660,402(534,184)
2024913,50027,500941,000771,7141,712,71455%/45%946,458766,256(169,286)
Andrew Porter – Chief Financial Officer
2025758,00030,000788,000177,891965,89182%/18%549,000416,891(216,109)
2024732,50027,500760,000309,7381,069,73871%/29%616,626453,112(70,262)
Geoff Driver – General Manager –
Business Development and Investor Relations
2025608,80030,000638,800144,209783,00982%/18%445,052337,957(175,191)
2024591,50027,500619,000252,273871,27371%/29%502,226369,047(57,227)
Matthew Rowe – Company Secretary
2025334,10030,000364,10082,196446,29682%/18%253,668192,628(99,854)
2024316,96727,500344,467140,387484,85471%/29%279,483205,371(31,846)
The value of incentive forfeited is the difference between the target amount and the amount awarded. See Table 6.
Information about Non-Executive Director remuneration is provided in Section 4 Non-Executive Director Remuneration.
Remuneration Report continued
DIRECTORS’ REPORT
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Australian Foundation Investment Company Limited

2. Structure of Remuneration
2.1 Fixed Annual Remuneration (FAR)
The FAR component of an executive’s remuneration comprises base salary, superannuation guarantee contributions and fringe benefits.
Executives can elect to receive a portion of their FAR in the form of additional superannuation contributions or fringe benefits. This will
not affect the gross amount payable by the Group.
2.2 Incentive Plan
The table below outlines the key terms and conditions of the Incentive Plan.
Table 4: Annual Incentives – Key Terms and Conditions
MDOther Execs
Targeted per cent of FAR 100 per cent50 per cent
ObjectivesAlign remuneration with the creation of shareholder wealth.
Measures reflect the management of the Group and the other investment companies, as well as the key
investment returns that reflect the creation of shareholder wealth.
Performance measuresCompany performance (20 per cent); investment performance (60 per cent); personal objectives
(20 per cent)
Relative weightings of
investment companies for
investment and Company-
related performance
AFIC: 40 per cent
Djerriwarrh Investments Limited: 16 per cent
AMCIL Limited: 12 per cent
Mirrabooka Investments Limited: 12 per cent
Personal objectives: 20 per cent (allocated on same basis as FAR)
Delivery of awardIncentive is paid in cash, but 25 per cent of the pre-tax amount received is used by recipients to acquire
shares in AFIC and/or the other investment companies which they agree to hold for minimum of four years.
Performance measured
in 2025
See Tables 1 and 2 for AFIC. Mirrabooka outperformed on most measures, Djerriwarrh outperformed
on yield. AMCIL underperformed.
Outcomes for 2025
(see Table 6 for details)
45 per centAverage 45 per cent
The performance measures of the Incentive Plan are reviewed by the Remuneration Committee. The Committee may, from time to time,
revise the performance conditions and weightings in order to better meet the objectives of the annual incentive policies. It may also
change or suspend any part of the incentive payment arrangements. If relevant targets are not achieved but performance is close
to the target, some of the incentive may be paid. This would be noted as ‘partially achieved’ or ‘in line’ in Table 2. Where stretch levels
of performance are achieved above target, then higher amounts may be paid at the discretion of the Board. To date, total annual
incentives paid to each executive have never exceeded target.
For more detailed information about the annual incentive performance conditions and outcomes for 2025, please refer to Appendix B
Annual Incentives: Details of Outcomes and Conditions.
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3. Contract Terms
Each executive is employed under an open-ended contract, the terms of which can be varied by mutual agreement. There are no
contractual provisions for cessation of employment other than statutory requirements. Either the Company or the executive can give
notice in accordance with statutory requirements. There are no specific payments to be made as a consequence of termination beyond
those required by statute. Should there be any payments, these will be at the Board’s discretion.
Material breaches of the terms of employment will normally result in the termination of an executive’s employment.
4. Non-Executive Director Remuneration
Shareholders approve the maximum aggregate amount of remuneration per year available to be allocated between Non-Executive
Directors (NEDs). In proposing the amount for consideration by shareholders, the Remuneration Committee takes into account the
time demands made on Directors together with such factors as the general level of fees paid to Australian corporate directors.
For NEDs, who are charged with the responsibility of oversight of the Company’s activities, a fixed annual fee is paid with no element
of performance-related pay.
The amount approved at the AGM in October 2019 was $1,250,000 per annum, which is the maximum amount that may be paid
in total to all NEDs.
On appointment, the Company enters into a deed of access and indemnity with each NED. There are no termination payments
due at the cessation of office, and any Director may retire or resign from the Board, or be removed by a resolution of shareholders.
The amounts paid to each NED, and the figures for the corresponding period, are set out below. The Board has decided to hold
Directors’ fees unchanged for the 2025/26 year.
Remuneration Report continued
DIRECTORS’ REPORT
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Table 5: Non-Executive Director Remuneration
Primary
(Fee/Base
Salary)
$
Post-
employment
(Superannuation)
$
Total
Remuneration
$
CM Drummond – Chairman (appointed Chairman 3 October 2023)
2025196,41322,587219,000
2024167,90518,470186,375
J Paterson – Chairman (retired 3 October 2023)
202449,5375,44954,986
RP Dee-Bradbury – Non-Executive Director
202598,38611,314109,700
202495,94610,554106,500
JA Fahey – Non-Executive Director
202598,38611,314109,700
202495,94610,554106,500
KM Hudson – Non-Executive Director (appointed 1 January 2024)
2025106,8712,829109,700
202447,9735,27753,250
GR Liebelt – Non-Executive Director
2025106,8712,829109,700
2024103,8612,639106,500
RL Murray – Non-Executive Director (appointed 22 January 2024)
202598,38611,314109,700
202442,4384,66847,106
DA Peever – Non-Executive Director
202598,38611,314109,700
202495,94610,554106,500
CM Walter AM – Non-Executive Director (retired 3 October 2023)
202424,7692,72527,494
Total remuneration of Non-Executive Directors
2025803,69973,501877,200
2024724,32170,890795,211
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Appendix
A. Remuneration Governance
Responsibilities of the Board and the Remuneration Committee
It is the Board’s responsibility to review and approve the recommendations of the Remuneration Committee.
For more information, the Charter of the Board is available on the Company’s website.
The Remuneration Committee’s primary responsibilities include:
• reviewing the level of fees for NEDs and the Chairman;
• reviewing the Managing Director’s remuneration arrangements;
• evaluating the Managing Director’s performance;
• reviewing the remuneration arrangements for other senior executives;
• monitoring legislative developments with regards to executive remuneration; and
• monitoring the Group’s compliance with requirements in this area.
For more information, the Charter of the Remuneration Committee is available on the Company’s website.
The Remuneration Committee is composed of three NEDs (GR Liebelt (Chairman), CM Drummond and RP Dee-Bradbury) and meets
at least twice per year.
Policy on Hedging
The Company provides no lending or leveraging arrangements to its executives, who are prohibited by Company policy from entering
hedging arrangements that mitigate the possibility that ‘at risk’ incentive payments may not vest.
Use of Remuneration Consultants
The Managing Director makes recommendations to the Remuneration Committee with regards to the remuneration levels and structure
of the KMP. The Company has not engaged a remuneration adviser in the last two years.
The Company also participates in the annual FIRG survey of fund managers to understand current remuneration levels and practices.
B. Annual Incentives: Details of Outcomes and Conditions
Table 6 below shows the annual incentives paid to individual executives as a result of AFIC’s and the other investment companies’
performance on financial metrics and the individual’s achievement of their own personal objectives. Table 7 sets out the detailed terms
and conditions of the annual incentives.
Table 6: Annual Incentive Outcomes
Executive
% of
Target Paid
$
Paid
% of Target
Forfeited
$
Forfeited
Mark Freeman45%$439,71655%$534,184
Andrew Porter45%$177,89155%$216,109
Geoff Driver45%$144,20955%$175,191
Matthew Rowe45%$82,19655%$99,854
Remuneration Report continued
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Table 7: Executive Annual Incentive Performance Conditions
Performance Areas and
Relative WeightingPerformance MeasuresPurpose of Measure
Company performance (20 per cent)
The relevant weightings of the investment
companies are:
• AFIC: 50 per cent
• Djerriwarrh Investments Limited:
20 per cent
• AMCIL Limited: 15 per cent
• Mirrabooka Investments Limited:
15 per cent
• Operating result and dividend growth –
measured over five years against CPI.
• Management expense ratio (MER):
at Board discretion, generally
measured against prior years’ results.
• Dividend yield (DJW only).
• Net operating result reflects the ability
of the Company to meet its dividend
objectives. The dividends of both MIR
and AMH vary from year to year and are
not a key objective for those companies.
• MER reflects the costs of running
the Company.
• Maintaining a dividend yield above the
market’s is an important object for DJW.
Investment performance (60 per cent)
The relevant weightings of the investment
companies are:
• AFIC: 50 per cent
• Djerriwarrh Investments Limited:
20 per cent
• AMCIL Limited: 15 per cent
• Mirrabooka Investments Limited:
15 per cent
• Relative investment return: measure
of the return on the portfolio invested
(including cash) over the previous one,
three, five and 10 years, relative to the
S&P/ASX 200 Accumulation Index
(Combined Mid Cap 50 and Small
Ordinaries for Mirrabooka and a modified
S&P/ASX 200 Accumulation Index for
Djerriwarrh).
• Risk/Reward – measure of the return
that AFIC’s portfolio generates as
a ratio of the volatility risk that such
a portfolio incurs.
• Grossed-up return (GR): measure of
the movement in the net asset backing
of the Company (per share) plus the
dividends assumed to be reinvested
grossed up for franking credits over the
previous one, three, five and 10 years.
This return is compared to the S&P/ASX
200 Accumulation Index grossed up for
franking credits (Combined Mid Cap 50
and Small Ordinaries for Mirrabooka and
a modified S&P/ASX 200 Accumulation
Index for Djerriwarrh).
• The Board considers that the metrics
used reflect, over the medium to long
term, the Company’s investment
return objectives.
• Investment return: reflects the returns
generated by the mix of the investments
that the Company has invested in.
These reflect the value added to
shareholders’ wealth by the investment
decisions of the Company.
• Risk/Reward: reflects the aim for AFIC’s
portfolio to be designed to face less
volatility risk than the market generally.
• Grossed-up return (GR): reflects the
movement in the value of the underlying
portfolio over the period with the
additional recognition of the importance
of franking credits.
Note: The Remuneration Committee has
discretion to determine, at the time of
the review, what it considers to be the
appropriate level of return to be used.
Personal objectives (20 per cent)
These costs are allocated to AFIC
and to the LICs on the same proportion
as the FAR
Includes:
• advice to the Board;
• succession planning;
• management of staff;
• risk management; and
• shareholder stewardship.
These measures all contribute to the
efficient running of the Group, and the
other investment companies, enhancing
investment outcomes.
Personal objectives are included in incentive
calculations to encourage out performance
on non-financial metrics. These metrics
can be important determinants of business
success in the medium term. The Managing
Director reviews the performance of
each executive with the Remuneration
Committee, and the Remuneration
Committee alone determines how the
Managing Director is performing against
his objectives.
50 per cent is awarded based on the
individual’s execution of their role and
50 per cent on alignment with the
Company’s culture.
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C. Directors and Executives: Equity Holdings and Other Transactions
This table sets out reconciliations of shares issued by the Group and held directly, indirectly or beneficially by Non-Executive Directors
and executives of the Group, or by entities to which they were related.
Table 8: Shareholdings of Directors and Executives
Opening
Balance
Changes
During Year
Closing
Balance
CM Drummond66,0012,41068,411
RM Freeman190,1489,741199,889
RP Dee-Bradbury15,46130915,770
JA Fahey5,4241985,622
KM Hudson–8,0008,000
GR Liebelt663,629–663,629
RL Murray8,31328,315
DA Peever35,9561,31337,269
GN Driver162,2975,927168,224
MJ Rowe14,0922,93117,023
AJB Porter199,7757,295207,070
Other Arrangements with Non-Executive Directors
The Chairs of the LICs are provided offices within premises rented by the Group. These offices are provided on an ex-officio basis with
no rent being charged to the individual.
D. Potential Clawback of Incentives
The Directors consider that the Incentive Plan allows for sufficient ‘clawback’ in the case of a material misstatement of the Group’s
financial statements or in any other case where the Board considers that such remuneration would be an ‘inappropriate benefit’.
The Directors, in their absolute discretion, may take such clawback actions as they deem necessary or appropriate to address
the events that give rise to an ‘inappropriate benefit’. Such actions may include:
1. cancelling or requiring the forfeiture of some or all of the Executive’s incentive payments;
2. adjusting the Executive’s future performance-based remuneration;
3. dismissing the Executive and/or initiating legal action; and/or
4. any other action the Directors consider appropriate.
The Directors are not required to show loss to the Company in order to determine that an ‘inappropriate benefit’ should be subject
to clawback.
E. Detailed Performance Measures by Investment Company
Table 9 shows the performance of AFIC and the other investment companies over the past five years, including details of investment
return and gross return (GR). These measures, which represent growth in shareholder wealth, are used in part to determine the vesting
of AFIC’s Incentive Plans to executives and the investment team.
Remuneration Report continued
DIRECTORS’ REPORT
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Table 9: Detailed Performance Measures for AFIC and the Other Investment Companies
Year Ending 30 June
10-year
Return
5-year
Return
3-year
Return 20252024202320222021
Comparative Returns
S&P/ASX 200 Accumulation Return8.86%11.85%13.56%13.81%12.10%14.78%-6.47%27.80%
Modified S&P/ASX 200 Accumulation*8.45%10.54%11.74%11.92%10.72%12.59%-6.47%21.71%
Gross S&P/ASX 200 Accumulation Return10.35%13.29%15.06%15.06%13.52%16.64%-5.12%29.12%
Modified Gross S&P/ASX 200
Accumulation Return*9.50%11.55%12.80%12.79%11.71%13.90%-5.12%22.64%
Combined Mid Cap 50 and Small Ordinaries
Accumulation Return
^
9.70%10.05%11.80%14.35%7.95%13.21%-14.06%34.42%
Gross Combined Mid Cap 50 and Small Ordinaries
Accumulation Return
^
10.59%10.82%12.65%15.16%8.71%14.19%-13.52%35.22%
Yield on S&P/ASX 200 grossed up for franking creditsn/an/an/a4.2%4.7%5.6%5.1%2.9%
Australian Foundation Investment Company Limited
Mercer risk/rewardn/a66/96n/an/an/an/an/an/a
Growth in earnings per share-0.7%2.7%-0.8%-4.6%-5.2%7.7%42.9%-18.0%
Management expense ration/an/an/a0.16%0.15%0.14%0.16%0.14%
Gross return9.48%12.29%13.22%10.69%15.12%13.91%-6.78%31.92%
Investment return8.44%11.57%12.61%10.85%14.21%12.81%-7.08%30.28%
Djerriwarrh Investments Limited
Growth in net operating result per sharen/an/a2.7%1.0%1.3%5.8%30.9%-4.5%
Management expense ration/an/an/a0.47%0.42%0.40%0.45%0.45%
Gross return7.74%11.12%11.83%7.80%13.59%14.20%-6.51%29.58%
Investment return6.39%10.05%11.00%7.41%12.08%13.60%-6.21%25.83%
Gross yield on NTA at end of June n/an/an/a6.5%6.5%6.8%6.7%4.7%
Mirrabooka Investments Limited
Management expense ration/an/an/a0.54%0.56%0.59%0.46%0.50%
Gross return12.03%13.00%15.54%11.42%17.40%17.91%-20.87%50.92%
Investment return11.80%13.53%15.85%11.95%17.61%18.08%-19.04%49.80%
AMCIL Limited
Management expense ration/an/an/a0.56%0.56%0.66%0.52%0.56%
Gross return9.74%10.43%13.30%6.37%20.50%13.46%-14.31%31.76%
Investment return9.92%11.23%13.09%7.31%19.90%12.42%-12.40%34.36%
* Used for Djerriwarrh Investments Limited.
^ Used for Mirrabooka Investments Limited.
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Details of non-audit services performed by the auditors may be found in Note F2 of the Financial Report.
The Board of Directors has considered the position and, in accordance with the advice received from the Audit Committee, is satisfied
that the provision of the non-audit services is compatible with the general standard of independence for auditors imposed by the
Corporations Act 2001. The Directors are satisfied that the provision of non-audit services by the auditor, as set out below, did not
compromise the auditor independence requirements of the Corporations Act 2001 for the following reasons:
• all non-audit services have been reviewed by the Audit Committee to ensure they do not impact the impartiality and objectivity
of the auditor; and
• none of the services undermine the general principles relating to auditor independence as set out in the Corporations Act 2001
including reviewing or auditing the auditor’s own work, acting in a management or a decision-making capacity for the Company,
acting as advocate for the Company, or jointly sharing economic risk and rewards.
A copy of the Auditor’s Independence Declaration is set out on page 31.
This report is made in accordance with a resolution of the Directors.
Craig M Drummond
Chairman
28 July 2025
Non-audit Services
DIRECTORS’ REPORT
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Auditor’s Independence Declaration
DIRECTORS’ REPORT

pwc.com.au
PricewaterhouseCoopers, ABN 52 780 433 757
2 Riverside Quay, SOUTHBANK VIC 3006,
GPO Box 1331, MELBOURNE VIC 3001
T: 61 3 8603 1000, F: 61 3 8603 1999, www.pwc.com.au
Liability limited by a scheme approved under Professional Standards Legislation.

Auditor’s Independence Declaration
As lead auditor for the audit of Australian Foundation Investment Company for the year ended 30 June
2025, I declare that to the best of my knowledge and belief, there have been:
a. no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation
to the audit; and
b. no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Australian Foundation Investment Company Limited and the entity it
controlled during the period.
Kate L Logan Melbourne
Partner
PricewaterhouseCoopers

28 July 2025
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FINANCIAL REPORT
32 Financial Statements
33 Consolidated Income Statement
34 Consolidated Statement of
Comprehensive Income
35 Consolidated Balance Sheet
36 Consolidated Statement of
Changes in Equity
38 Consolidated Cash Flow
Statement
39 Notes to the Consolidated
Financial Statements
39 A. Understanding AFIC’s
Financial Performance
39 A1. How AFIC Manages
its Capital
39 A2. Investments Held and
How They are Measured
40 A3. Operating Income
41 A4. Dividends Paid
42 A5. Earnings Per Share
43 B. Costs, Tax and Risk
43 B1. Management Costs
43 B2. Tax
44 B3. Risk
46 C. Unrecognised Items
46 C1. Contingencies
47 D. Balance Sheet
Reconciliations
47 D1. Current Assets – Cash
47 D2. Credit Facilities
47 D3. Revaluation Reserve
48 D4. Realised Capital
Gains Reserve
48 D5. Retained Profits
48 D6. Share Capital
49 E. Income Statement
Reconciliations
49 E1. Reconciliation of Net Cash
Flows From Operating
Activities to Profit
49 E2. Tax Reconciliations
50 F. Further Information
50 F1. Related Parties
50 F2. Remuneration of Auditors
51 F3. Segment Reporting
51 F4. Summary of Other
Accounting Policies
53 F5. Performance Bond
53 F6. Share Incentive
Arrangements
54 F7. Principles of Consolidation
54 F8. Subsidiaries
54 F9. Lease Commitments
54 F10. Parent Entity Financial
Information
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Australian Foundation Investment Company Limited

Note
2025
$’000
2024
$’000
Dividends and distributionsA3312,620321,836
Interest income from deposits A39,1956,963
Other revenueA36,3115,555
Total revenue328,126334,354
Net gains on trading portfolio A32,2944,901
Income from operating activities330,420339,255
Finance costs(1,208)(1,405)
Administration expenses B1(22,991)(18,915)
Profit before income tax expense 306,221318,935
Income tax expenseB2, E2(21,250)(22,522)
Profit for the year284,971296,413
Profit is attributable to:
Equity holders of Australian Foundation Investment Company Ltd284,912296,174
Minority interest59239
284,971296,413
CentsCents
Basic earnings per shareA522.7123.75
This Income Statement should be read in conjunction with the accompanying notes.
Consolidated Income Statement
For the Year Ended 30 June 2025
FINANCIAL REPORT
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Year to 30 June 2025Year to 30 June 2024
Revenue
1
$’000
Capital
1
$’000
Total
$’000
Revenue
1
$’000
Capital
1
$’000
Total
$’000
Profit for the year284,971–284,971296,413–296,413
Other comprehensive income
Items that will not be recycled through
the Income Statement
Gains/(losses) for the period –731,229731,229–923,692923,692
Tax on above–(222,552)(222,552)–(279,803)(279,803)
Total other comprehensive income–508,677508,677–643,889643,889
Total comprehensive income 284,971508,677793,648296,413643,889940,302
1 ‘Capital’ includes realised or unrealised gains or losses (and the tax on those) on securities in the investment portfolio. Income in the form of distributions
and dividends is recorded as ‘revenue’. All other items, including expenses, are included in profit for the year, which is categorised under ‘revenue’.
Total comprehensive Income is attributable to:
Year to 30 June 2025Year to 30 June 2024
Revenue
$’000
Capital
$’000
Total
$’000
Revenue
$’000
Capital
$’000
Total
$’000
Equity holders of Australian
Foundation Investment Company 284,912508,677793,589296,174643,889940,063
Minority interests59–59239–239
284,971508,677793,648296,413643,889940,302
This Statement of Comprehensive Income should be read in conjunction with the accompanying notes.
Consolidated Statement of Comprehensive Income
For the Year Ended 30 June 2025
FINANCIAL REPORT
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Note
2025
$’000
2024
$’000
Current assets
Cash D1280,769166,499
Receivables39,53442,425
Trading portfolio5,7735,387
Total current assets326,076214,311
Non-current assets
Investment portfolioA210,254,7579,703,558
Fixtures and fittings155–
Total non-current assets10,254,9129,703,558
Total assets10,580,9889,917,869
Current liabilities
Payables1,3351,256
Borrowings – bank debt10,00010,000
Tax payable113,48334,105
Provisions7,0846,014
Total current liabilities131,90251,375
Non-current liabilities
Provisions169154
Deferred tax liabilities – other2331,237
Deferred tax liabilities – investment portfolioB21,707,9181,603,716
Total non-current liabilities1,708,3201,605,107
Total liabilities1,840,2221,656,482
Net assets8,740,7668,261,387
Shareholders’ equity
Share capitalA1, D63,210,1963,204,950
Revaluation reserveA1, D33,651,3333,449,280
Realised capital gains reserveA1, D4799,329546,953
General reserveA123,63723,637
Retained profitsA1, D51,054,4391,034,794
Parent entity interest8,738,9348,259,614
Minority interest1,8321,773
Total equity8,740,7668,261,387
This Balance Sheet should be read in conjunction with the accompanying notes.
Consolidated Balance Sheet
As at 30 June 2025
FINANCIAL REPORT
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Year Ended 30 June 2025Note
Share
Capital
$’000
Revaluation
Reserve
$’000
Realised
Capital Gains
$’000
General
Reserve
$’000
Retained
Profits
$’000
Total
Parent Entity
$’000
Minority
Interest
$’000
Total
$’000
Total equity at the beginning of the year3,204,9503,449,280546,95323,6371,034,7948,259,6141,7738,261,387
Dividends paid to shareholdersA4––(54,248)–(265,267)(319,515)–(319,515)
– Dividend Reinvestment PlanD671,842––––71,842–71,842
Share buy-backsD6(66,274)––––(66,274)(66,274)
Other share capital adjustments(322)––––(322)–(322)
Total transactions with shareholders5,246–(54,248)–(265,267)(314,269)–(314,269)
Profit for the year––––284,912284,91259284,971
Other comprehensive income (net of tax)
Net gains for the period–508,677
–––508,677–508,677
Other comprehensive income for the year–508,677–––508,677–508,677
Transfer to realised capital gains of cumulative gains on investments sold–(306,624)306,624–––––
Total equity at the end of the year3,210,1963,651,333799,32923,6371,054,4398,738,9341,8328,740,766
Year Ended 30 June 2024Note
Share
Capital
$’000
Revaluation
Reserve
$’000
Realised
Capital Gains
$’000
General
Reserve
$’000
Retained
Profits
$’000
Total
Parent Entity
$’000
Minority
Interest
$’000
Total
$’000
Total equity at the beginning of the year3,136,2822,926,191509,74123,637960,1717,556,0221,5347,557,556
Dividends paid to shareholdersA4––(83,588)–(221,551)(305,139)–(305,139)
– Dividend Reinvestment PlanD668,840––––68,840–68,840
Other share capital adjustments(172)––––(172)–(172)
Total transactions with shareholders68,668–(83,588)–(221,551)(236,471)–(236,471)
Profit for the year––––296,174296,174239296,413
Other comprehensive income (net of tax)
Net gains for the period–643,889
–––643,889–643,889
Other comprehensive income for the year–643,889–––643,889–643,889
Transfer to realised capital gains of cumulative gains on investments sold–(120,800)120,800–––––
Total equity at the end of the year3,204,9503,449,280546,95323,6371,034,7948,259,6141,7738,261,387
This Statement of Changes in Equity should be read in conjunction with the accompanying notes
Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2025
FINANCIAL REPORT
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Year Ended 30 June 2025Note
Share
Capital
$’000
Revaluation
Reserve
$’000
Realised
Capital Gains
$’000
General
Reserve
$’000
Retained
Profits
$’000
Total
Parent Entity
$’000
Minority
Interest
$’000
Total
$’000
Total equity at the beginning of the year3,204,9503,449,280546,95323,6371,034,7948,259,6141,7738,261,387
Dividends paid to shareholdersA4––(54,248)–(265,267)(319,515)–(319,515)
– Dividend Reinvestment PlanD671,842––––71,842–71,842
Share buy-backsD6(66,274)––––(66,274)(66,274)
Other share capital adjustments(322)––––(322)–(322)
Total transactions with shareholders5,246–(54,248)–(265,267)(314,269)–(314,269)
Profit for the year––––284,912284,91259284,971
Other comprehensive income (net of tax)
Net gains for the period–508,677
–––508,677–508,677
Other comprehensive income for the year–508,677–––508,677–508,677
Transfer to realised capital gains of cumulative gains on investments sold–(306,624)306,624–––––
Total equity at the end of the year3,210,1963,651,333799,32923,6371,054,4398,738,9341,8328,740,766
Year Ended 30 June 2024Note
Share
Capital
$’000
Revaluation
Reserve
$’000
Realised
Capital Gains
$’000
General
Reserve
$’000
Retained
Profits
$’000
Total
Parent Entity
$’000
Minority
Interest
$’000
Total
$’000
Total equity at the beginning of the year3,136,2822,926,191509,74123,637960,1717,556,0221,5347,557,556
Dividends paid to shareholdersA4––(83,588)–(221,551)(305,139)–(305,139)
– Dividend Reinvestment PlanD668,840––––68,840–68,840
Other share capital adjustments(172)––––(172)–(172)
Total transactions with shareholders68,668–(83,588)–(221,551)(236,471)–(236,471)
Profit for the year––––296,174296,174239296,413
Other comprehensive income (net of tax)
Net gains for the period–643,889
–––643,889–643,889
Other comprehensive income for the year–643,889–––643,889–643,889
Transfer to realised capital gains of cumulative gains on investments sold–(120,800)120,800–––––
Total equity at the end of the year3,204,9503,449,280546,95323,6371,034,7948,259,6141,7738,261,387
This Statement of Changes in Equity should be read in conjunction with the accompanying notes
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Note
2025
$’000
Inflows/
(Outflows)
2024
$’000
Inflows/
(Outflow)
Cash flows from operating activities
Sales from trading portfolio 20,48113,346
Purchases for trading portfolio (18,573)(9,995)
Interest received9,3706,963
Dividends and distributions received312,779319,169
324,057329,483
Other revenue6,5835,758
Administration expenses(21,921)(19,316)
Finance costs paid(1,208)(1,405)
Taxes paid(28,255)(25,172)
Net cash inflow/(outflow) from operating activitiesE1279,256289,348
Cash flows from investing activities
Sales from investment portfolio791,260489,873
Purchases for investment portfolio (609,806)(517,291)
Taxes paid on sales from investment portfolio(31,287)(24,571)
Payment for fixed assets(179)–
Net cash inflow/(outflow) from investing activities149,988(51,989)
Cash flows from financing activities
Share issue transaction costs(322)(172)
Share buy-backs(66,274)–
Dividends paid(248,378)(236,073)
Net cash inflow/(outflow) from financing activities(314,974)(236,245)
Net increase/(decrease) in cash held114,2701,114
Cash at the beginning of the year166,499165,385
Cash at the end of the yearD1280,769166,499
For the purpose of the Cash Flow Statement, ‘cash’ includes cash and deposits held at call.
This Cash Flow Statement should be read in conjunction with the accompanying notes.
Consolidated Cash Flow Statement
For the Year Ended 30 June 2025
FINANCIAL REPORT
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A. Understanding AFIC’s Financial Performance
A1. How AFIC Manages its Capital
AFIC’s objective is to provide shareholders with stable to growing dividends over time and attractive total returns over the medium
to long term.
AFIC recognises that its capital will fluctuate with market conditions. In order to manage those fluctuations, the Board may adjust
the amount of dividends paid, issue new shares, buy back the Company’s shares or sell assets.
AFIC’s capital consists of its shareholders’ equity plus any net borrowings. A summary of the balances in equity is provided below:
2025
$’000
2024
$’000
Share capital3,210,1963,204,950
Revaluation reserve3,651,3333,449,280
Realised capital gains reserve799,329546,953
General reserve23,63723,637
Retained profits1,054,4391,034,794
8,738,9348,259,614
Refer to Notes D3–D6 for a reconciliation of movement from period to period for each equity account (except the general reserve, which
is historical, relates to past profits which can be distributed and has had no movement).
A2. Investments Held and How They are Measured
AFIC has two portfolios of securities: the investment portfolio and the trading portfolio.
The investment portfolio holds securities which the Company intends to retain on a long term basis, and includes a small sub-component
over which options may be written and an additional small sub-component of international (i.e. non-Australian/New Zealand listed stocks).
The trading portfolio consists of securities that are held for short term trading only, including call option contracts written over securities
that are held in the specific sub-component of the investment portfolio and on occasion put options and is relatively small in size.
The Board has therefore focused the information in this section on the investment portfolio. Details of all holdings (except for the specific
option holdings) as at the end of the reporting period can be found at the end of the Annual Report.
The balance and composition of the investment portfolio (all at market value) was:
2025
$’000
2024
$’000
Equity instruments (excluding below) 8,889,0348,539,661
Equity instruments (over which options may be written)1,201,6641,019,386
Equity instruments (listed on non-Australian/New Zealand Exchanges)164,059144,511
10,254,7579,703,558
How Investments are Shown in the Financial Statements
The accounting standards set out the following hierarchy for fair value measurement:
Level 1: Quoted prices in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices, which can be observed either directly (as prices) or indirectly (derived from prices).
Level 3: Inputs for the asset or liabilities that are not based on observable market data.
All financial instruments held by AFIC are classified as Level 1 (other than the options sold by the Company which are Level 2).
Their fair values are initially measured at the costs of acquisition and then remeasured based on quoted market prices at the end
of the reporting period.
Notes to the Consolidated Financial Statements
FINANCIAL REPORT
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Notes to the Consolidated Financial Statements continued
FINANCIAL REPORT
Net Tangible Asset Backing Per Share
The Board regularly reviews the net asset backing per share both before and after provision for deferred tax on the unrealised gains in
AFIC’s long term investment portfolio. Deferred tax is calculated as set out in Note B2. The relevant amounts as at 30 June 2025 and
30 June 2024 were as follows:
30 June 2025
$
30 June 2024
$
Net tangible asset backing per share
Before tax8.337.88
After tax6.976.60
Equity Investments
The shares in the investment portfolio are designated under the accounting standards as financial assets measured at fair value through
‘other comprehensive income’ (OCI), because they are equity instruments held for long term capital growth and dividend income, rather
than to make a profit from their sale. This means that changes in the value of these shares during the reporting period are included in OCI
in the Consolidated Statement of Comprehensive Income. The cumulative change in value of the shares over time is then recorded in the
revaluation reserve. On disposal, the amounts recorded in the revaluation reserve are transferred to the realisation reserve.
Securities Sold and How They are Measured
Where securities are sold from the investment portfolio, any difference between the sale price and the cost is transferred from the
revaluation reserve to the realisation reserve and the amounts noted in the Consolidated Statement of Changes in Equity. This means
the Company is able to identify the realised gains out of which it can pay a ‘Listed Investment Company’ (LIC) gain as part of the
dividend, which conveys certain taxation benefits to many of AFIC’s shareholders.
During the period $791.7 million (2024: $486.6 million) of equity securities were sold. The cumulative gain on the sale of securities was
$306.6 million for the period after tax (2024: $120.8 million). This has been transferred from the revaluation reserve to the realisation
reserve (see Consolidated Statement of Changes in Equity). These sales were accounted for at the date of trade.
A3. Operating Income
The total income received from AFIC’s investments is set out below.
Dividends and Distributions
2025
$’000
2024
$’000
Income from securities held in investment portfolio at 30 June302,257316,100
Income from investment securities sold during the year10,1885,736
Income from securities held in trading portfolio at 30 June175–
Income from trading securities sold during the year––
312,620321,836
Interest income
Revenue from deposits and cash management trusts9,1956,963
Other revenue
Administration fees6,2745,525
Other income 3730
6,3115,555
Dividend Income
Distributions from listed securities are recognised as income when those securities are quoted in the market on an ex-distribution basis.
Capital returns on ordinary shares are treated as an adjustment to the carrying value of the shares.
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Trading Income
Net gains on the trading portfolio are set out below.
Net Gains
2025
$’000
2024
$’000
Net realised gains/(losses) from trading portfolio – shares/securities14(77)
– options3,1794,119
Unrealised gains/(losses) from trading portfolio – shares/securities(729)937
– options(170)(78)
2,2944,901
If all call options were exercised, this would lead to the sale of $42.9 million worth of securities at an agreed price – the ‘exposure’
(2024: $34.5 million).
A4. Dividends Paid
The dividends paid and payable for the year ended 30 June 2025 are shown below:
2025
$’000
2024
$’000
(a) Dividends Paid During the Year
Final dividend for the year ended 30 June 2024 of 14.5 cents fully franked at 30 per cent paid
30 August 2024 (2024: 14 cents fully franked at 30 per cent paid on 1 September 2023)174,798167,176
Interim dividend for the year ended 30 June 2025 of 12.0 cents per share fully franked at
30 per cent paid 25 February 2025 (2024: 11.5 cents fully franked at 30 per cent paid
26 February 2024)144,717137,963
319,515305,139
Dividends paid or payable in cash247,673236,299
Dividends reinvested in shares71,84268,840
319,515305,139
Dividends forgone via DSSP12,33111,856
(b) Franking Credits
Opening balance of franking account at 1 July263,771248,712
Franking credits on dividends received97,068101,489
Tax paid during the year59,02649,428
Franking credits paid on ordinary dividends paid(136,935)(130,774)
Franking credits deducted on DSSP shares issued(5,287)(5,084)
Closing balance of franking account277,643263,771
Adjustments for tax payable in respect of the current year’s profits and the receipt
of dividends recognised as receivables121,07942,488
Adjusted closing balance398,722306,259
Impact on the franking account of dividends declared but not recognised as a liability
at the end of the financial year:(104,803) (77,776)
Net available 293,919228,483
These franking account balances would allow AFIC to frank additional dividend payments
up to an amount of:685,811533,127
AFIC’s ability to continue to pay franked dividends is dependent upon the receipt of franked dividends from the trading and investment
portfolios and on AFIC paying tax.
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Notes to the Consolidated Financial Statements continued
FINANCIAL REPORT
2025
$’000
2024
$’000
(c) New Zealand Imputation Account
(Figures in A$ at year-end exchange rate: 2025: $NZ$1.08: $A1; 2024: $NZ1.097: $A1)
Opening balance 19,24310,325
Imputation credits on dividends received9,7378,619
Imputation credits on dividends paid(18,027)–
Closing balance10,95318,944
A NZ imputation credit on NZ 4.0 cents of the dividend was attached to the final dividend
to be paid on 30 August 2024. There is no NZ imputation credit attached to the proposed
final dividend for the year ended 30 June 2025.
(d) Dividends Declared After Balance Date
Since the end of the year Directors have declared a final dividend of 14.5 cents per share plus
a special dividend of 5.0 cents per share, both fully franked at 30 per cent. The aggregate
amount of the final and special dividends for the year to 30 June 2025 to be paid on
28 August 2025, but not recognised as a liability at the end of the financial year is244,541
(e) Listed Investment Company Capital Gain Account
Balance of the Listed Investment Company (LIC) capital gain account at 1 July:64,65092,813
Capital gains (including LIC gains received from dividends)272,17255,425
LIC gains paid as part of dividend(54,248)(83,588)
Balance at 30 June 282,574 64,650
This equates to an attributable gain of:403,677 92,357
Distributed LIC capital gains may entitle certain shareholders to a deduction in their tax return, as set out in the dividend statement.
LIC capital gains available for distribution are dependent on the disposal of investment portfolio holdings that qualify for LIC capital
gains, or the receipt of LIC distributions from LIC securities held in the portfolios. $349.3 million attributable gain is attached to the
final and special dividends to be paid on 28 August 2025.
A5. Earnings Per Share
The table below shows the earnings per share based on the profit for the year:
Basic Earnings Per Share
2025
Number
2024
Number
Weighted average number of ordinary shares used as the denominator1,254,334,9701,247,196,831
$’000 $’000
Profit for the year 284,912296,174
Cents Cents
Basic earnings per share22.7123.75
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B. Costs, Tax and Risk
B1. Management Costs
The total management expenses for the period are as follows:
2025
$’000
2024
$’000
Rental expense relating to non-cancellable leases (736)(702)
Employee benefit expenses (15,076)(12,390)
Depreciation charge(24)–
Other administration expenses(7,155)(5,823)
(22,991)(18,915)
Employee Benefit Expenses
A major component of employee benefit expenses is Directors’ and Executives’ remuneration. This has been summarised below:
Short Term
Benefits
$
Post-
employment
Benefits
$
Total
$
2025
Non-Executive Directors 803,69973,501877,200
Executives3,488,812120,0003,608,812
Total4,292,511193,5014,486,012
2024
Non-Executive Directors724,32170,890795,211
Executives4,028,579110,0004,138,579
Total4,752,900180,8904,933,790
Detailed remuneration disclosures are provided in the Remuneration Report.
The Group (i.e. AFIC and its subsidiary, Australian Investment Company Services Ltd (AICS) – see Note F8) does not make loans
to Directors or Executives.
B2. Tax
AFIC’s tax position, and how it accounts for tax, is explained here. Detailed reconciliations of tax accounting to the financial statements
can be found in Note E2.
The income tax expense for the period is the tax payable on this financial year’s taxable income, adjusted for any changes in deferred
tax assets and liabilities attributable to temporary differences and for any unused tax losses. Deferred tax assets and liabilities (except
for those related to the unrealised gains or losses in the investment portfolio) are offset, as all current and deferred taxes relate to the
Australian Taxation Office and can legally be settled on a net basis.
A provision has been made for taxes on any unrealised gains or losses on securities valued at fair value through the Income Statement
– i.e. the trading portfolio, puttable instruments and convertible notes that are classified as debt.
A provision also has to be made for any taxes that could arise on sale of securities in the investment portfolio, even though there is
no intention to dispose of them. Where AFIC disposes of such securities, tax is calculated according to the particular parcels allocated
to the sale for tax purposes, offset against any capital losses carried forward.
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Notes to the Consolidated Financial Statements continued
FINANCIAL REPORT
Tax Expense
The income tax expense for the period is shown below:
(a) Reconciliation of Income Tax Expense to Prima Facie Tax Payable
2025
$’000
2024
$’000
Profit before income tax expense 306,221318,935
Tax at the Australian tax rate of 30 per cent (2024: 30 per cent)91,86695,681
Tax offset for franked dividends received(67,947)(71,058)
Sundry items whose tax treatment differs from accounting treatment514619
24,43325,242
Over provision in prior years(3,183)(2,720)
Total tax expense21,25022,522
Deferred Tax Liabilities – Investment Portfolio
The accounting standards require us to recognise a deferred tax liability for the potential capital gains tax on the unrealised gain in the
investment portfolio. This amount is shown in the Balance Sheet. However, the Board does not intend to sell the investment portfolio,
so this tax liability is unlikely to arise at this amount. Any sale of securities would also be affected by any changes in capital gains tax
legislation or tax rate applicable to such gains when they are sold.
2025
$’000
2024
$’000
Deferred tax liabilities on unrealised gains in the investment portfolio1,707,9181,603,716
Opening balance at 1 July1,603,7161,355,200
Tax on realised gains(118,350)(31,287)
Charged to OCI for ordinary securities on gains or losses for the period222,552279,803
1,707,9181,603,716
B3. Risk
Market Risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices.
As a Listed Investment Company that invests in tradeable securities, AFIC can never be free of market risk as it invests its capital
in securities which are not risk free – the market price of these securities will fluctuate.
A general fall in market prices of 5 per cent and 10 per cent, if spread equally over all assets in the investment portfolio, would have
led to a reduction in AFIC’s comprehensive income of $358.9 million and $717.8 million respectively, at a tax rate of 30 per cent
(2024: $339.6 million and $679.2 million).
AFIC seeks to reduce market risk at the investment portfolio level by ensuring that it is not, in the opinion of the Investment Committee,
overly exposed to one company or one particular sector of the market. The relative weightings of the individual securities and the
relevant market sectors are reviewed by the Investment Committee and risk can be managed by reducing exposure where necessary.
AFIC does not have a minimum or maximum amount of the portfolio that can be invested in a single company or sector.
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AFIC’s total investment exposure by sector is as below:
2025
%
2024
%
Energy3.333.77
Materials12.8114.28
Industrials11.5110.75
Consumer Discretionary7.417.95
Consumer Staples 3.854.08
Banks 20.1720.81
Other Financials 9.909.23
Real Estate5.095.01
Telecommunications7.376.51
Healthcare12.3113.17
Information Technology3.552.72
Utilities0.030.03
Cash2.671.69
Securities representing over 5 per cent of the investment portfolio at 30 June were
Commonwealth Bank of Australia9.410.1
BHP7.48.1
CSL6.27.8
AFIC is also not directly exposed to material currency risk as most of its investments are quoted in Australian dollars. The international
portfolio is a minor (1.6 per cent) part of the total portfolio (2024: 1.5 per cent).
The writing of call options provides some protection against a fall in market prices as it generates income to partially compensate
for a fall in capital values. Options are only written against securities that are held in the trading or the specific sub-section of the
investment portfolio.
Interest Rate Risk
The Group is not currently materially exposed to interest rate risk as all its cash investments and borrowings are short term for a fixed
interest rate.
Credit Risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an
obligation. AFIC is exposed to credit risk from cash, receivables, securities in the trading portfolio and securities in the investment
portfolio respectively. None of these assets are overdue. The risk in relation to each of these items is set out below.
Cash
All cash investments not held in a transactional account (including with a custodian) are invested in short term deposits with Australia’s
major commercial banks. In the unlikely event of a bank default, there is a risk of losing the cash deposits and any accrued unpaid interest.
Receivables
Outstanding settlements are on the terms operating in the securities industry, which usually require settlement within two days of the
date of a transaction. Receivables are non-interest bearing and unsecured. In the event of a payment default, there is a risk of losing any
difference between the price of the securities sold and the price of the recovered securities from the discontinued sale. Receivables also
include dividends from securities that have passed the record date for the distribution but have not paid as at balance date.
Trading and Investment Portfolios
Converting and convertible notes or other interest-bearing securities that are not equity securities carry credit risk to the extent of their
carrying value. This risk will be realised in the event of a shortfall on winding-up of the issuing companies. As at 30 June 2025, no such
investments are held (2024: nil). AFIC engages a custodian, Northern Trust, to hold the shares that are in the sub-component of the
investment portfolio that contains international shares. AFIC receives a GS007 report on Internal Controls for Custody, Investment
Administration, Registry Monitoring and Related Information Technology Services from Northern Trust every six months.
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Notes to the Consolidated Financial Statements continued
FINANCIAL REPORT
Liquidity Risk
Liquidity risk is the risk that an entity will not be able to meet its financial liabilities.
AFIC monitors its cash flow requirements daily. The Investment Committee also monitors the level of contingent payments on a regular
basis by reference to known sales and purchases of securities, dividends and distributions to be paid or received, put options that may
require AFIC to purchase securities, and facilities that need to be repaid. AFIC ensures that it has either cash or access to short term
borrowing facilities sufficient to meet these contingent payments.
AFIC’s inward cash flows depend upon the dividends received. Should these drop by a material amount, AFIC would amend its outward
cash flows accordingly. AFIC’s major cash outflows are the purchase of securities and dividends paid to shareholders, and both of these
can be adjusted by the Board and management. Furthermore, the assets of AFIC are largely in the form of readily tradeable securities
which can be sold on-market if necessary.
The table below analyses AFIC’s financial liabilities into relevant maturity groupings. The amounts disclosed in the table are the contractual
undiscounted cash flows. Balances due within 12 months equal their carrying amounts as the impact of discounting is not significant.
30 June 2025
Less Than
6 Months
$’000
6–12 Months
$’000
Greater
Than 1 Year
$’000
Total
Contractual
Cash Flows
$’000
Carrying
Amount
$’000
Non-derivatives
Payables
1,335––1,3351,335
Borrowings10,000––10,00010,000
11,335––11,33511,335
Derivatives
Options in trading portfolio*–––––
–––––
30 June 2024
Less Than
6 Months
$’000
6–12 Months
$’000
Greater
Than 1 Year
$’000
Total
Contractual
Cash Flows
$’000
Carrying
Amount
$’000
Non-derivatives
Payables1,256––1,2561,256
Borrowings10,000––10,00010,000
11,256––11,25611,256
Derivatives
Options in trading portfolio*–––––
–––––
* In the case of call options, there are no contractual cash flows as if the option is exercised the contract will be settled in the securities over which
the option is written. The contractual cash flows for put options written are the cash sums the Company will pay to acquire securities over which the
options have been written, and it is assumed for the purpose of the above disclosure that all options will be exercised (i.e. maximum cash outflow).
There were no put options outstanding at 30th June 2025 or 30th June 2024.
C. Unrecognised Items
C1. Contingencies
Directors are not aware of any material contingent liabilities or contingent assets other than those already disclosed elsewhere
in the Financial Report.
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Further information that shareholders may find useful is included here. It is grouped into three sections:
D. Balance Sheet Reconciliations
E. Income Statement Reconciliations
F. Further Information
D. Balance Sheet Reconciliations
These notes provide further information about the basis of calculation of line items in the financial statements.
D1. Current Assets – Cash
2025
$’000
2024
$’000
Cash at bank 280,181166,262
Cash with custodian588237
280,769166,499
Cash holdings yielded an average floating interest rate of 4.08 per cent (2024: 4.30 per cent). All cash investments are held in a
transactional account, with a custodian or in an ‘at call’ deposit account with the Commonwealth Bank of Australia and Macquarie Bank.
D2. Credit Facilities
2025
$’000
2024
$’000
Commonwealth Bank of Australia – cash advance facility
80,000110,000
Amount drawn down at 30 June00
Undrawn facilities at 30 June80,000110,000
National Australia Bank – cash advance facility 20,00020,000
Amount drawn down at 30 June10,00010,000
Undrawn facilities at 30 June10,00010,000
Total short term loan facilities100,000130,000
Total drawn down at 30 June10,00010,000
Total undrawn facilities at 30 June90,000120,000
The above borrowings, with the exception of the National Australia Bank facility, are unsecured. Repayment of facilities is done either
through the use of cash received from distributions or the sale of securities, or by rolling existing facilities into new ones. Facilities are
usually drawn down for no more than three months and hence are classified as current liabilities when drawn. The Board decided to
reduce the total amount of facilities during the year.
The debt facility with National Australia Bank is structured in the form of a securities lending arrangement. The terms of the agreement
require that securities be pledged as collateral for the drawn secured borrowings under that facility and that such securities currently
satisfy a minimum value of $11 million (110 per cent of the total drawn facility). These securities are held by the National Australia Bank
but included as part of the Company’s investment portfolio. As at 30 June 2025, the market value of the securities pledged as collateral
was $17.1 million (2024: $15.1 million).
D3. Revaluation Reserve
2025
$’000
2024
$’000
Opening balance at 1 July3,449,2802,926,191
Gains/(losses) on investment portfolio
– Equity instruments731,229923,692
Provision for tax on above(222,552)(279,803)
Cumulative taxable realised (gains)/losses (net of tax)(306,624)(120,800)
3,651,3333,449,280
This reserve is used to record increments and decrements on the revaluation of the investment portfolio as described in accounting
policy Note A2.
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Notes to the Consolidated Financial Statements continued
FINANCIAL REPORT
D4. Realised Capital Gains Reserve
2025
$’000
2024
$’000
Opening balance at 1 July546,953509,741
Dividends paid(54,248)(83,588)
Cumulative taxable realised gains/(losses) (net of tax)306,624120,800
799,329546,953
This reserve records gains or losses after applicable taxation arising from disposal of securities in the investment portfolio as described in
Note A2.
D5. Retained Profits
2025
$’000
2024
$’000
Opening balance at 1 July1,034,794960,171
Dividends paid(265,267)(221,551)
Profit for the year284,912296,174
1,054,4391,034,794
This reserve relates to past profits.
D6. Share Capital
Movements in Share Capital
DateDetailsNotes
Number
of Shares
’000
Issue
Price
$
Paid-up
Capital
$’000
1/07/2023Balance1,240,3493,136,282
1/09/2023Dividend Reinvestment Plani5,2807.0337,121
1/09/2023Dividend Substitution Share Planii9207.03n/a
26/02/2024Dividend Reinvestment Plani4,2927.3931,719
26/02/2024Dividend Substitution Share Planii7297.39n/a
VariousCosts of issue––(172)
30/06/2024Balance1,251,5703,204,950
30/08/2024Dividend Reinvestment Plani5,4617.2639,650
30/08/2024Dividend Substitution Share Planii9207.26n/a
25/02/2025Dividend Reinvestment Plani4,3507.4032,192
25/02/2025Dividend Substitution Share Planii7647.40n/a
VariousShare buy-backsiii(9,006)–(66,274)
VariousCosts of issue––(322)
30/06/2025Balance1,254,0593,210,196
i. Shareholders elect to have all or part of their dividend payment reinvested in new ordinary shares under the Dividend Reinvestment Plan (DRP).
The price of the new DRP shares is based on the average selling price of shares traded on the Australian Securities Exchange and Cboe in the five
days after the shares begin trading on an ex-dividend basis.
ii. The Group has a Dividend Substitution Share Plan (DSSP) whereby shareholders may elect to forgo a dividend and receive shares instead. Pricing
for the DSSP shares is done as per the DRP shares.
iii. The Group has an on-market share buy-back program. During the financial year, 9.0 million shares were bought back at an average price
of $7.36 (2024: nil).
All shares have been fully paid, rank pari passu and have no par value.
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E. Income Statement Reconciliations
E1. Reconciliation of Net Cash Flows From Operating Activities to Profit
2025
$’000
2024
$’000
Profit for the year284,971296,413
Net decrease/(increase) in trading portfolio(386)(1,550)
Dividends received as securities under DRP investments(1,420)–
Decrease/(increase) in current receivables2,8912,284
– Less increase/(decrease) in receivables for investment portfolio504(3,223)
Increase/(decrease) in deferred tax liabilities103,198248,923
– Less (increase)/decrease in deferred tax liability on investment portfolio(104,202)(248,516)
Increase/(decrease) in current payables79(12)
– Less (increase)/decrease in dividends payable714(226)
– Less (increase)/decrease in payables for investment portfolio(509)–
Increase/(decrease) in provision for tax payable79,3781,949
Capital gains tax charge taken through equity(118,350)(31,287)
Prior year taxes paid relating to capital gains31,28724,571
Depreciation24–
Increase/(decrease) in other provisions/non-cash items 1,07722
Net cash flows from operating activities279,256289,348
E2. Tax Reconciliations
Tax Expense Composition
2025
$’000
2024
$’000
Charge for tax payable relating to the current year25,43724,835
Over provision in prior years(3,183)(2,720)
Increase/(decrease) in deferred tax liabilities(1,004)407
21,25022,522
Amounts Recognised Directly Through Other Comprehensive Income
Net movement in deferred tax liabilities relating to capital gains tax
on the movement in gains/losses in the investment portfolio222,552279,803
222,552279,803
Deferred Tax Assets and Liabilities
The deferred tax balances are attributable to:
2025
$’000
2024
$’000
(a) Tax on unrealised gains or losses in the trading portfolio(127)(362)
(b) Provisions and expenses charged to the accounting profit which are not yet tax deductible2,3931,856
(c) Interest and dividend income receivable which is not assessable for tax until receipt(2,499)(2,731)
(233)(1,237)
Movements:
Opening balance at 1 July(1,237)(830)
Credited/(charged) to Income Statement1,004(407)
(233)(1,237)
Deferred tax assets and liabilities arise when provisions and expenses have been charged but are not yet tax deductible. These assets
are realised when the relevant items become tax deductible, as long as enough taxable income has been generated to claim the assets
against, and as long as there are no changes to the tax legislation that affect AFIC’s ability to claim the deduction.
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Notes to the Consolidated Financial Statements continued
FINANCIAL REPORT
F. Further Information
This section covers information that is not directly related to specific line items in the financial statements, including information about
related party transactions, share-based payments, assets pledged as security and other statutory information.
F1. Related Parties
All transactions with deemed related parties were made on normal commercial terms and conditions and approved by independent
Directors.
(a) AICS Transactions With Minority Interests
The below transactions were with Djerriwarrh Investments Ltd as a minority interest holder in the Company’s subsidiary:
2025
$’000
2024
$’000
Administration expenses charged for the year2,7382,566
At the end of June, the Company’s investment in Djerriwarrh Investments Limited, which is measured at fair value through OCI as part of
the investment portfolio, was valued at $22.7 million (2024: $22.1 million) and it received dividend income during the year of $1.1 million
(2024: $1.1 million).
(b) AICS Transactions With Other Listed Investment Companies
AICS had the following transactions with other Listed Investment Companies to which it provides services:
2025
$’000
2024
$’000
Administration expenses charged for the year to Mirrabooka Investments Ltd2,4482,139
Administration expenses charged for the year to AMCIL Ltd1,3431,011
At the end of June, the Company’s investment in Mirrabooka Investments Limited, which is measured at fair value through OCI as part
of the investment portfolio, was valued at $49.9 million (2024: $27.7 million), which included participation in Mirrabooka’s 1-for-7 rights
issue and capital raising and it received dividend income during the year of $1.2 million (2024: $1.3 million). The Company did not have
an investment in AMCIL Ltd during the year.
F2. Remuneration of Auditors
For the year the auditor earned or will earn the following remuneration including GST:
2025
$
2024
$
PricewaterhouseCoopers
Audit services
Audit or review of financial reports 184,884178,115
Audit related services
AFSL compliance audit and review9,8689,507
Permitted non-audit services
Review of realised CGT balances67,76067,760
Preparation and lodgement of tax returns40,62337,479
Total remuneration303,135292,861
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F3. Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting used by the chief operating decision-maker.
The Board, through its Committees, has been identified as the chief operating decision-maker, as it is responsible for allocating
resources and assessing performance of the operating segments.
Description of Segments
The Board makes the strategic resource allocations for AFIC. AFIC has therefore determined the operating segments based
on the reports reviewed by the Board, which are used to make strategic decisions.
The Board is responsible for AFIC’s entire portfolio of investments and considers the business to have a single operating segment
(noting that the investment portfolio contains sub-components for ease of administration). The Board’s asset allocation decisions
are based on a single, integrated investment strategy, and AFIC’s performance is evaluated on an overall basis.
Segment Information Provided to the Board
The internal reporting provided to the Board for AFIC’s assets, liabilities and performance is prepared on a consistent basis with the
measurement and recognition principles of Australian Accounting Standards, except that net assets are reviewed both before and after
the effects of capital gains tax on investments (as reported in AFIC’s Net Tangible Asset announcements to the ASX).
Other Segment Information
Revenues from external parties are derived from the receipt of dividend, distribution and interest income, and income arising on the
trading portfolio and realised income from the options portfolio.
AFIC is domiciled in Australia and most of AFIC’s income is derived from Australian entities or entities that maintain a listing in Australia.
AFIC has a diversified portfolio of investments, with only one investment comprising more than 10 per cent of AFIC’s income – BHP
12.0 per cent (2024: two investments: BHP (12.4 per cent) and Commonwealth Bank of Australia (10.6 per cent)).
F4. Summary of Other Accounting Policies
This general purpose Financial Report has been prepared in accordance with Australian Accounting Standards, Interpretations issued
by the Australian Accounting Standards Board and the Corporations Act 2001. This Financial Report has been authorised for issue on
28 July 2025 in accordance with a resolution of the Board and is presented in the Australian currency. The Directors of the Company
have the power to amend and reissue the Financial Report.
AFIC has attempted to improve the transparency of its reporting by adopting ‘plain English’ where possible. Key ‘plain English’ phrases
and their equivalent AASB terminology are as follows:
PhraseAASB Terminology
Market valueFair value for actively traded securities
CashCash and cash equivalents
Share capitalContributed equity
OptionsDerivatives written over equity instruments that are valued at fair value through profit or loss
HybridsEquity instruments that have some of the characteristics of debt
AFIC complies with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).
AFIC is a ‘for profit’ entity.
AFIC has not applied any Australian Accounting Standards or AASB Interpretations that have been issued as at balance date but
are not yet operative for the year ended 30 June 2025 (‘the inoperative standards’). The impact of the inoperative standards has been
assessed and the impact has been identified as not being material. AFIC only intends to adopt other inoperative standards at the date
at which their adoption becomes mandatory.
Basis of Accounting
The financial statements are prepared using the valuation methods described in Note A2. All other items have been treated
in accordance with the historical cost convention.
Fair Value of Financial Assets and Liabilities
The fair value of cash and non-interest bearing monetary financial assets and liabilities of AFIC approximates their carrying value.
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Notes to the Consolidated Financial Statements continued
FINANCIAL REPORT
Convertible Notes
On the issue of convertible notes, the Group estimates the fair value of the liability component of the convertible notes, being the
obligation to make future payments of principal and interest to holders, using a market interest rate for a non-convertible note of similar
terms and conditions. The residual amount is included in equity as other equity securities with no recognition of any change in the value
of the option in subsequent periods. The liability component is then included in borrowings. Expenses incurred in connection with the
issue of the notes are deducted from the total face value and the expense is then incurred over the life of the notes.
The total liability is subsequently carried on an amortised cost basis with interest on the notes recognised as finance costs on an effective
yield basis until the liability is extinguished on conversion or maturity of the notes. The Group had no convertible notes on issue for the
years ended 30 June 2025 or 30 June 2024.
Employee benefits
(i) Wages, Salaries and Annual Leave
Liabilities for wages and salaries, including annual leave, expected to be settled within 12 months of balance date are recognised
as current provisions in respect of employees’ services up to balance date and are measured at the amounts expected to be paid
when the liabilities are settled.
(ii) Long Service Leave
In calculating the value of long service leave, consideration is given to expected future wage and salary levels, experience of employee
departures and periods of service. Expected future payments are discounted using corporate bond rate information provided by Milliman
via the G100.
(iii) Cash Incentives
Cash incentives are provided under the Incentive Plan and are dependent upon the performance of the Group. A provision is made
for the cost of unsettled cash incentives at balance date.
(iv) Share Incentives
Share incentives are provided under the Incentive Plan and the Employee Share Acquisition Scheme.
For the Employee Share Acquisition Scheme and the Incentive Plan, the incentives are based on the performance of the individual,
the Group and investment companies to which the Group provides administration services, for the financial year and, in the case
of performance of the Group and other investment companies, longer term performance of up to 10 years. For the Employee Share
Acquisition Scheme and a portion of the Executive Incentive Plan, the recipient agrees to purchase (or have purchased for them) shares
on-market, but receives a cash amount. A provision for the amount payable the Incentive Plan is recognised on the Balance Sheet.
Administration Fees
The Group currently provides administrative services to other Listed Investment Companies. The associated fees are recognised
on an accruals basis as income throughout the year. Any amounts outstanding at balance date are recognised as receivable, subject
to the assessment of recoverability by the Directors.
Operating Leases
The Group currently has an operating lease in respect of its premises. Payments made under operating leases are charged to the
Income Statement on a straight-line basis over the period of the lease.
Rounding of Amounts
AFIC is a company of the kind referred to in the ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191,
relating to the ‘rounding off’ of amounts in the Financial Report. Amounts in the Financial Report have been rounded off in accordance
with that Instrument, to the nearest thousand dollars, or in certain cases, to the nearest dollar.
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F5. Performance Bond
The Group’s subsidiary, AICS, has under the terms of its Australian Financial Services Licence in place a performance bond to the sum
of $20,000 underwritten by the Commonwealth Bank of Australia in favour of the Australian Securities and Investments Commission
(ASIC), payable on demand to ASIC.
F6. Share Incentive Arrangements
Share Incentive Arrangements
The Group has a number of share incentive arrangements. These are accounted for in accordance with Note F4. Where shares are
issued to employees of AICS, AICS compensates AFIC for the fair value of the shares.
(a) Incentive Plan
The executives’ remuneration arrangements incorporate an ‘at risk’ component as set out in the Remuneration Report. Part of this
‘at risk’ component is paid in shares in the Group.
Each financial year, the Remuneration Committee sets the target (cash) amount of remuneration that could be paid should all performance
targets and measures be achieved. If all are achieved, 100 per cent of the remuneration will be awarded. If stretch levels of performance
are achieved above target, then higher amounts may be paid. On the other hand, there is no set minimum that will be paid regardless
of performance.
The performance measures are a combination of the performance of the Group, the investment companies to which the Group provides
administration services, and personal objectives.
All of the incentive remuneration awarded is paid in cash, with 25 per cent of the pre-tax amount being used by the executive to purchase
shares in AFIC and/or the other LICs. All remuneration under the plan is paid in the financial year following the year of assessment.
The executive agrees to the shares being subject to being held for four years (holding term), during which they cannot be sold.
Dividends are paid to executives on these shares prior to the expiry of the holding term. Should an executive leave the Group before
the holding term expires, the restriction will be lifted.
20,309 AFIC shares for the Incentive Plan (2024: 10,291 shares) were purchased by executives in the year (in relation to the prior year)
with a fair value (being the acquisition price) of $148,606 (2024: $72,717). Executives are allowed to buy shares in any of the LICs that
AICS administers in order to meet this requirement.
(b) Employee Share Acquisition Scheme (ESAS)
Under the current Employee Share Acquisition Scheme, each employee who is not a participant in the executive or investment team
Incentive Plans is awarded $6,000 per annum. After PAYG is deducted, $3,000 is used to buy shares in the Company, which needs
to be held for three years. After three years, or the departure of the employee from employment with the Group, the shares come out
of the holding lock.
In addition, each employee is eligible for an additional award of up to $6,000. 50 per cent of the amount awarded is used to buy shares
in one of the other LICs that AICS provides services to. The amount that is awarded is dependent on the metrics used for the vesting
of the Investment Team’s Short Term Incentive (excluding personal measures). During the year, 79 per cent of the possible maximum
was awarded, and 50 per cent of this was used to buy shares in Djerriwarrh Investments Limited, as part of the Group’s policy
of rotating these purchases amongst the LICs other than AFIC to which AICS provides services.
(c) Expenses Arising From Share-based Payment Transactions
Total expenses arising from share-based payment transactions recognised during the period as part of the employee benefit expense
were as follows (ESAS only):
2025
$’000
2024
$’000
Share-based payment expense 64 47
(d) Liability
The total liability arising from share-based payment transactions is included in the current liabilities for ‘provisions’.
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Notes to the Consolidated Financial Statements continued
FINANCIAL REPORT
F7. Principles of Consolidation
AFIC’s consolidated financial statements consist of the financial statements of AFIC the parent, and its subsidiary, Australian Investment
Company Services Ltd (AICS). 25 per cent of AICS is owned by Djerriwarrh Investments Ltd, another investment company for which
AICS performs operational and investment administration services, and for which it is paid monthly.
No subsidiaries were acquired or disposed of during the year. Intercompany transactions and balances between AFIC and AICS are
eliminated on consolidation.
The financial information for the parent entity, disclosed in Note F10 below, has been prepared on the same basis as the consolidated
financial statements. All notes are for the consolidated group unless specifically noted otherwise.
F8. Subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries:
Name of Entity
Equity Holding
Country of
IncorporationClass of Shares20252024
Australian Investment Company Services LtdAustralia Ordinary75%75%
The investment in AICS is accounted for at cost in the individual financial statements of AFIC.
F9. Lease Commitments
The Group has entered into a non-cancellable operating lease for the use of its premises for six years with effect from 1 July 2022.
Current commitments relating to leases at balance date, for the current lease (including GST), is:
2025
$’000
2024
$’000
Due within one year589561
Later than one year but less than five1,2661,855
Greater than five years––
1,8552,416
F10. Parent Entity Financial Information
Summary Financial Information
The individual financial statements for the parent entity show the following aggregate amounts:
2025
$’000
2024
$’000
Balance Sheet
Current assets313,566202,583
Total assets10,568,3249,906,291
Current liabilities124,23246,579
Total liabilities1,834,7361,651,840
Shareholders’ equity
Issued capital3,210,3463,205,100
Reserves
Revaluation reserve3,651,3333,449,280
Realised capital gains reserve799,329546,953
General reserve23,63723,637
Retained earnings1,048,9431,029,481
5,523,2425,049,351
Total shareholders’ equity8,733,5888,254,451
Profit or loss for the year284,735295,457
Total comprehensive income 793,412939,346
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As disclosed in Note F8 to the Financial Statements, the Company has one subsidiary, Australian Investment Company Services
Limited (AICS).
The Company owns 75 per cent of AICS (the other 25 per cent being owned by Djerriwarrh Investments Limited). AICS is a body
corporate, incorporated and tax resident in Australia.
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
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In the Directors’ opinion:
(1) the financial statements and notes set out on pages 33 to 54 are in accordance with the Corporations Act 2001 including:
(a) complying with the accounting standards, the Corporations Regulations 2001 and other mandatory professional reporting
requirements; and
(b) giving a true and fair view of the entity’s financial position as at 30 June 2025 and of its performance for the financial year ended
on that date;
(2) the Consolidated Entity Disclosure Statement is true and correct; and
(3) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
Note F4 to the financial statements confirms that the financial statements also comply with International Financial Reporting Standards
as issued by the International Accounting Standards Board.
This declaration is made in accordance with a resolution of the Directors.
This declaration has been made after receiving the declarations required to be made to the Directors by the Managing Director and the
Chief Financial Officer regarding the financial statements in accordance with Section 295A of the Corporations Act 2001 for the financial
year ended 30 June 2025. The declarations received were that, in the opinion of the Managing Director and the Chief Financial Officer to
the best of their knowledge, the financial records of the Company have been properly maintained, that the financial statements comply
with accounting standards and that they give a true and fair view.
Craig M Drummond
Chairman
Melbourne
28 July 2025
DIRECTORS’ DECLARATION
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INDEPENDENT AUDIT REPORT

pwc.com.au
PricewaterhouseCoopers, ABN 52 780 433 757
2 Riverside Quay, SOUTHBANK VIC 3006,
GPO Box 1331, MELBOURNE VIC 3001
T: 61 3 8603 1000, F: 61 3 8603 1999, www.pwc.com.au
Liability limited by a scheme approved under Professional Standards Legislation.

Independent auditor’s report
To the members of Australian Foundation Investment Company Limited
Report on the audit of the financial report
Our opinion
In our opinion:
The accompanying financial report of Australian Foundation Investment Company Limited (the
Company) and its controlled entity (together the Group) is in accordance with the Corporations Act 2001,
including:
a. giving a true and fair view of the Group’s financial position as at 30 June 2025 and of its financial
performance for the year then ended
b. complying with Australian Accounting Standards and the Corporations Regulations 2001.
What we have audited
The financial report comprises:
• the consolidated balance sheet as at 30 June 2025
• the consolidated statement of comprehensive income for the year then ended
• the consolidated statement of changes in equity for the year then ended
• the consolidated cash flow statement for the year then ended
• the consolidated income statement for the year then ended
• the notes to the consolidated financial statements, including material accounting policy information
and other explanatory information
• the consolidated entity disclosure statement as at 30 June 2025
• the directors’ declaration.
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INDEPENDENT AUDIT REPORT continued


Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the financial report
section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Independence
We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards
Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the
Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
Our audit approach
An audit is designed to provide reasonable assurance about whether the financial report is free from
material misstatement. Misstatements may arise due to fraud or error. They are considered material if
individually or in aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of the financial report.
We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion
on the financial report as a whole, taking into account the geographic and management structure of the
Group, its accounting processes and controls and the industry in which it operates.
Audit Scope
Our audit focused on assessing the financial report for risks of material misstatement in account
balances, classes of transactions or disclosures, and designing and performing audit procedures to obtain
reasonable assurance that the financial statements as a whole were free of material misstatement due to
fraud or error. This included identifying areas of higher risk, based on quantitative and qualitative
assessments of the Group's operations and activities.

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Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report for the current period. The key audit matters were addressed in the context
of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. Further, any commentary on the outcomes of a particular audit
procedure is made in that context. We communicated the key audit matters to the Audit Committee.
Key audit matter How our audit addressed the key audit
matter
Investment Portfolio
Refer to note A2 ($10,254.8 million)
The lnvestment Portfolio held by the Group of
$10,254.8 million as at 30 June 2025
predominantly consists of listed Australian
equities, as well as a smaller portfolio of listed
international equities.
Whilst there is no significant judgement in
determining the existence or valuation of the
Group’s investments, investments represent a key
measure of the Group’s performance and
comprise a significant proportion of total assets in
the consolidated balance sheet. The fluctuations
in investments will also impact the realised and
unrealised gains/(losses) recognised in the
consolidated statement of comprehensive income.
Given the pervasive nature investments have on
the Group’s key financial metrics, we determined
the existence and valuation of investments to be a
key audit matter.

Our procedures included the following:
1) Agreed the investment quantity holdings at 30
June 2025 to third party confirmations or registry
sources.
2) Obtained the purchases and sales listing for the
year ended 30 June 2025 and agreed a sample of
purchases and sales transactions to contracts.
3) Performed a reconciliation of the opening
investment portfolio balances (quantity of
holdings and value), purchases, sales and other
relevant transactions, and agreed this back to the
30 June 2025 closing investment portfolio.
4) Agreed quoted market prices used to fair value
listed equity investments at 30 June 2025 to third
party market pricing sources.

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INDEPENDENT AUDIT REPORT continued


Other information
The directors are responsible for the other information. The other information comprises the information
included in the annual report for the year ended 30 June 2025, but does not include the financial report
and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon through our opinion on the financial report. We have
issued a separate opinion on the remuneration report.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of
this auditor’s report, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report in accordance
with Australian Accounting Standards and the Corporations Act 2001, including giving a true and fair
view, and for such internal control as the directors determine is necessary to enable the preparation of
the financial report that is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
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individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of the financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing
and Assurance Standards Board website at: https://auasb.gov.au/media/bwvjcgre/ar1_2024.pdf. This
description forms part of our auditor's report.
Report on the remuneration report
Our opinion on the remuneration report
We have audited the remuneration report included in the directors’ report for the year ended 30 June
2025.
In our opinion, the remuneration report of Australian Foundation Investment Company Limited for the
year ended 30 June 2025 complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the remuneration
report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the remuneration report, based on our audit conducted in accordance with Australian
Auditing Standards.


PricewaterhouseCoopers


Kate L Logan Melbourne
Partner 28 July 2025
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At 17 July 2025 there were 152,156 holdings of ordinary shares. These holdings were distributed in the following categories:
Size of Holding
Number of
Shareholdings
% of Share
Capital
1 to 1,00057,6961.77
1,001 to 5,00049,1719.90
5,001 to 10,00019,47711.23
10,001 to 100,00024,79649.11
100,000 and over1,01627.99
Total152,156100.00
Percentage held by the 20 largest holders12.3%
Average shareholding8,241
There were 4,493 shareholdings of less than a marketable parcel of $500 (67 shares).
Voting Rights of Ordinary Shares
The Constitution provides for votes to be cast:
(i) on a show of hands, one vote for each shareholder; and
(ii) on a poll, one vote for each fully paid ordinary share.
Information About Shareholders
OTHER INFORMATION
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The 20 largest registered holdings of ordinary shares as at 17 July 2025 are listed below:
Ordinary Shares
RankNameShares
% of Share
Capital
1HSBC Custody Nominees (Australia) Limited 41,528,405 3.31
2Evanson Pty Ltd 19,006,651 1.52
3Citicorp Nominees Pty Limited 15,256,828 1.22
4Netwealth Investments Limited <Wrap Services A/C> 12,847,480 1.02
5BNP Paribas Nominees Pty Ltd <HUB24 Custodial Serv Ltd> 8,907,909 0.71
6IOOF Investment Services Limited <IPS Superfund A/C> 7,169,427 0.57
7IOOF Investment Services Limited <IOOF idps A/C> 5,799,529 0.46
8HMS Nominees Ltd 4,772,871 0.38
9Netwealth Investments Limited <Super Services A/C> 4,526,623 0.36
10Custodial Services Limited <Beneficiaries Holding A/C> 3,429,614 0.27
11Bougainville Copper Limited 3,349,586 0.27
12Redemptorists 2,872,211 0.23
13Bushways Pty Ltd 2,570,592 0.20
14Mutual Trust Pty Ltd 2,386,490 0.19
15Jamama Nominees Pty Limited 2,369,858 0.19
16J P Morgan Nominees Australia Pty Limited 2,118,232 0.17
17Investment Custodial Services Limited <C A/C> 2,086,737 0.17
18HSBC Custody Nominees (Australia) Limited – A/C 2 1,745,161 0.14
19Mr Malcolm Cavill 1,660,000 0.13
20BNP Paribas Noms (NZ) Ltd 1,636,559 0.13
Major Shareholders
OTHER INFORMATION
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During the year the Company did not participate as a sub-underwriter in any issues of securities.
The Company has not been notified of any substantial shareholders.
During the year ended 30 June 2025, the Company recorded 844 transactions in securities (including options). $3,802,786 in brokerage
(including GST) was paid or accrued for the year.
Sub-underwriting
Substantial Shareholders
Transactions in Securities
OTHER INFORMATION
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Acquisitions
Cost
($m)
BHP 95.4
Worley 55.2
Goodman Group41.3
ResMed 38.6
NEXTDC 35.6
Disposals
Proceeds
($m)
Commonwealth Bank of Australia375.4
Wesfarmers90.7
Ramsay Health Care*51.0
Mineral Resources*35.3
Westpac Banking Corporation 35.1
* Complete disposal from the portfolio.
New Companies Added to the Portfolio
Worley
BlueScope Steel
Telix Pharmaceuticals
Sigma Healthcare
Major Transactions in the Investment Portfolio
OTHER INFORMATION
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Individual investments for the combined Investment and trading portfolios as at 30 June 2025 are listed below. The list should not,
however, be used to evaluate portfolio performance or to determine the net asset backing per share at other dates. Net asset backing
is advised to the Australian Securities Exchange each month and is recorded on the toll free telephone service at 1800 780 784 and
posted to AFIC’s website afi.com.au.
Individual holdings in the portfolios may change during the course of the year. In addition, holdings which are part of the trading portfolio
may be subject to call options or sale commitments by which they may be sold at a price significantly different from the market price
prevailing at the time of the exercise or sale.
Ordinary Shares, Trust Units or Stapled Securities
Number Held
2024
’000
Number Held
2025
’000
Market Value
2025
$’000
AIAAuckland International Airport10,30011,50181,659
ALDAmpol1,1051,85547,748
ALQALS7,6227,622130,339
AMCAmcor9,6179,617136,556
ANZANZ Group Holdings8,0987,415216,221
ARBARB Corporation3,6404,226138,190
ASXASX1,7571,757122,568
AUBAUB Group1,4321,43250,814
BHPBHP18,45120,753762,679
BRGBreville Group70270220,717
BSLBlueScope Steel01,43133,074
BXBBrambles5,8405,840136,773
CARCAR Group5,6905,690212,932
CBACommonwealth Bank of Australia7,6985,242968,460
COHCochlear334443133,138
COL*Coles Group9,7229,232192,369
CPUComputershare3,6303,630144,801
CSLCSL2,5642,643632,946
CWYCleanaway Waste Management18,18518,18549,463
DJWDjerriwarrh Investments7,5057,50522,741
DUIDiversified United Investment12,03012,03064,482
EQTEQT Holdings1,6471,64756,013
FPHFisher & Paykel Healthcare Corporation3,6003,600121,068
GMGGoodman Group10,15511,525394,616
IAGInsurance Australia Group6,2804,74042,799
IELIDP Education3,8006,68824,544
Holdings of Securities
At 30 June 2025
OTHER INFORMATION
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Ordinary Shares, Trust Units or Stapled Securities
Number Held
2024
’000
Number Held
2025
’000
Market Value
2025
$’000
JBHJB Hi-Fi1,131915100,970
JHX*James Hardie Industries4,5775,092211,362
MAQMacquarie Technology Group27250133,332
MFTMainfreight (NZX listed)2,4062,406149,645
MGRMirvac Group29,35029,35064,570
MIRMirrabooka Investments8,72815,26449,913
MQGMacquarie Group2,2402,148491,206
NABNational Australia Bank12,33512,335485,506
NANNanosonics5,7165,71623,148
NWLNetwealth Group3,4893,608121,194
NXTNEXTDC2,0344,60066,700
PXAPEXA Group3,7503,10242,191
REAREA Group577577138,763
REHReece Limited5,9405,62880,762
RGNRegion Group16,00016,00035,200
RIORio Tinto1,8621,862199,478
RMDResMed5,3276,427252,902
SEKSeek3,7953,79591,266
SHLSonic Healthcare3,3203,32088,934
SIGSigma Healthcare02,7138,112
STOSantos13,92113,921106,632
TCLTransurban Group27,23326,394368,983
TLSTelstra Group62,80563,155305,671
TLXTelix Pharmaceuticals01,02525,025
WBCWestpac Banking Corporation14,54013,283449,745
WDSWoodside Energy Group8,1658,165192,939
WESWesfarmers6,7835,590473,753
WORWorley03,90351,049
WOWWoolworths Group6,6676,667207,410
WTCWiseTech Global62381088,314
XROXero835835150,133
Total10,092,518
* Part of the security was subject to call options written by the Company.

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Ordinary Shares, Trust Units or Stapled Securities
Number Held
2024
Number Held
2025
Market Value
2025
A$
AAPL-USApple20,058 18,322 5,736,069
ACN-USAccenture5,506 5,504 2,510,264
AENA-ESAena8,638 96,180 3,903,946
AMZN-USAmazon23,915 25,550 8,553,374
BLDR-USBuilders Firstsource011,340 2,019,200
CMG-USChipotle Mexican55,750 54,090 4,634,431
COST-USCostco2,976 1,661 2,509,024
CP-USCanadian Pacific17,432 26,317 3,183,304
CRH-USCRH018,030 2,525,642
EXE-USExpand Energy019,744 3,523,119
FCX-USFreeport40,571 56,621 3,745,479
FERG-GBFerguson Enterprises9,321 10,411 3,465,718
FTNT-USFortinet27,780 29,125 4,698,445
GOOGL-USAlphabet31,314 28,754 7,732,238
HCA-USHCA Healthcare9,164 6,974 4,076,791
HD-USHome Depot6,034 6,564 3,672,295
HEI-DEHeidelberg Materials01,500 535,875
HLMA-GBHalma13,780 33,600 2,248,176
HLN-GBHaleon0307,175 2,405,180
ICE-USIntercontinental16,678 17,348 4,856,746
JPM-USJP Morgan14,176 14,736 6,518,764
LLY-USEli Lilly03,083 3,667,198
MA-USMastercard2,876 3,251 2,787,635
Holdings of International Securities
At 30 June 2025
OTHER INFORMATION
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Ordinary Shares, Trust Units or Stapled Securities
Number Held
2024
Number Held
2025
Market Value
2025
A$
MAR-USMarriott8,715 5,820 2,426,300
MCD-USMcDonalds7,156 8,066 3,595,984
META-USMeta Platforms7,983 6,648 7,487,310
MSFT-USMicrosoft16,463 15,503 11,766,777
NEE-USNextera25,729 30,909 3,274,190
NESN-CHNestlé20,806 18,476 2,791,908
NFLX-USNetflix3,982 3,722 7,605,460
NOVOB-DKNovo Nordisk23,536 1,316 138,891
NVDA-USNVIDIA44,440 46,760 11,272,901
PEP-USPepsiCo8,800 4,240 854,275
RHM-DERheinmetall0100 321,875
SBUX-USStarbucks6,085 3,195 446,725
SCHW-USCharles Schwab32,976 31,676 4,409,933
SPGI-USS&P Global3,927 4,342 3,493,530
SPOT-USSpotify02,059 2,410,863
SU-FRSchneider10,851 10,851 4,388,687
TFLO-USiShares Treasury34,648 51,152 3,953,538
TMO-USThermo Fisher2,943 2,243 1,387,722
UMG-NLUniversal Music50,498 63,928 3,146,536
V-USVisa4,332 4,332 2,346,948
ZTS-USZoetis04,130 982,775
Total168,012,041
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