Half Yearly Report and Accounts as at 31 December 2025

Australian Foundation Investment Company Limited



Contents
• Results for Announcement to the Market
• Media Release
• Appendix 4D Accounts
• Independent Auditors’ Review Report
This half-year report is presented under listing rule 4.2A
and should be read in conjunction with the Company’s
2024 Annual Report.
This announcement was authorised for release by the
Board of Australian Foundation Investment Company
Limited.
Australian Foundation Investment Company Limited
ABN 56 004 147 120
1

Australian Foundation Investment Company Limited
Results for Announcement to the Market
The reporting period is the half year ended 31 December 2025, with the prior corresponding period being
the half year ended 31 December 2024.
The half year financial report has been reviewed by the Company’s auditors.
> Profit after tax was $147.0 million, down 4.6% on
the previous corresponding period’s $154.2
million.
> Profit after tax attributable to members was
$146.9 million (down 4.7% on the previous
corresponding period’s $154.2 million).
> Revenue from operating activities was $168.7
million, down $4.8 million or 2.8% from the
previous corresponding period. This excludes
capital gains on investments.
> Investment income for the six months to 31
December 2025 was $160.6 million, down from
$166.3 million in the corresponding period last
year. While ARB and Wesfarmers paid special
dividends during the period, overall dividends
were down because of lower dividends from
BHP, Woodside Energy Group and Woolworths
Group (special dividend last half year) amongst
others, and from the reduced holdings from sales
in Commonwealth Bank of Australia and
Wesfarmers.
> The interim dividend is 12.0 cents per share fully
franked, plus a special dividend of 2.5 cents
(also fully franked). The dividend will be paid on
26 February 2026 to ordinary shareholders on
the register on 3 February 2026, and the shares
are expected to commence trading on an ex-
dividend basis on 2 February 2026. There is no
conduit foreign income component of the
dividend. No LIC gains are attached to the
interim dividend.
> A Dividend Reinvestment Plan (DRP) and
Dividend Substitution Share Plan (DSSP) are
available, the price for which will be set at a nil
discount to the Volume Weighted Average Price
of the Company’s shares traded on the ASX and
Cboe automated trading systems over the five
trading days from when the shares trade ex-
dividend. The last date for the receipt of an
election notice for participation in the DRP and
DSSP is 5pm (AEDT) on 4 February 2026.
> If market conditions permit the intention is to buy
back the shares issued under the DRP/DSSP on
market during the remainder of this financial
year.
> The final dividend for the 2025 financial year was
14.5 cents per share (fully franked), plus a
special dividend of 5.0 cents (also fully franked),
and they were paid to shareholders on 28
August 2025.
> Portfolio return for the half year was negative
2.0%, including franking. The return for the
S&P/ASX 200 Accumulation Index was 4.2%
including franking over this period. In the 12
months to 31 December 2025, the portfolio
return was 1.2%, whereas the S&P/ASX 200
Accumulation Index return over this period
including franking was 11.5%. AFIC’s
performance returns are after costs.
> Net tangible assets per share before any
provision for deferred tax on the unrealised gains
on the long term investment portfolio as at 31
December 2025 were $7.90, down from $8.24 at
31 December 2024 (both before allowing for any
announced dividends).
> The Company will be providing an update on
these results via a webcast for shareholders on
Wednesday 21 January 2026 at 3.30 pm
(AEDT). Details are on the website at afi.com.au.
2

Australian Foundation Investment Company Limited
AFIC Declares 2.5 Cent Per Share Special Dividend.
Half-Year Report to 31 December 2025
AFIC’s investment focus is on a diversified portfolio of Australian equities, seeking to provide
attractive dividend and capital growth to shareholders over the medium to long term. This is
achieved at a low cost and with low portfolio turnover, which produces tax-effective outcomes for
shareholders. AFIC’s management expense ratio for the period is 0.11% (annualised) with no
additional fees.
The Half Year Profit was $147.0 million, down from $154.2 million in the previous corresponding period. The
decrease in the profit from last year was primarily due to lower dividends from BHP, Woodside Energy Group
and Woolworths Group (special dividend paid last half year) amongst others, and from the reduced holdings
because of sales in Commonwealth Bank of Australia and Wesfarmers.
The interim dividend was maintained at 12.0 cents per share fully franked. A special dividend of 2.5 cents per
share has also been declared. This reflects the substantial balance of franking credits built up over recent years,
particularly through the generation of realised capital gains.
The Board is also intending to pay an additional 2.5 cents per share special dividend fully franked with the final
dividend, expected to be declared with the financial year result to be announced on 27 July 2026. Directors will
consider further capital management initiatives for the next financial year taking into consideration the balance
of franking credits and the generation of realised capital gains.
Based on the ordinary interim dividend declared, the ordinary final dividend paid and including the proposed 5
cents of special dividends previously announced in December for this financial year, the grossed-up dividend
yield on the share price of $7.19 at 31 December 2025 is 6.3%.
Portfolio return for the half year was negative 2.0%, including franking. The return for the S&P/ASX 200
Accumulation Index was 4.2% including franking over this period. The portfolio return over 12 months was
1.2%, which is below the S&P/ASX 200 Accumulation Index return over this period including franking of 11.5%.
In comparing these returns to the benchmark, a number of long term holdings in the portfolio underperformed
the market during the year. These include CSL, ARB Corporation, James Hardie Industries, Reece Limited and
CAR Group. In addition, sectors in which AFIC does not traditionally invest such as small and mid-cap
resources were up substantially, with the one year returns for these sectors up 73.0% and 104.3% respectively.
Gold which is included in these figures was up 127.0% for the year.
Portfolio return (including the full benefit of franking) – per annum to 31 December 2025



AFIC’s performance figures are after costs. AFIC on occasion incurs realised capital gains tax on the sale of shares. Not all 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.
3

Australian Foundation Investment Company Limited
Market Commentary and Portfolio
Performance
The S&P/ASX 200 Accumulation Index (not including
the benefit of franking) rose 10.3% in the calendar
year with a large part of this return coming from the
resource and banking sectors.
Resource stocks had the strongest returns, up 35.1%,
buoyed by positive rises in gold, copper, rare earths
and, most recently, lithium commodity prices, leading
to a 104.3% return for the mid-cap resources index
and 73.0% for the small-cap resources index.
Gold
which is included in these figures was up 127.0%
for the year.

Banks also performed strongly over the 12 months,
with this sector delivering a return of 16.7% as
valuation multiples remained at elevated levels.
Industrials were only up 4.0% over the calendar year.
Major sectors to underperform were Healthcare, down
23.7% (driven largely by CSL) and Information
Technology, down 20.8% as many companies in this
sector retraced the gains from last year as valuation
multiples returned from highly elevated levels.
This proved to be a challenging environment with the
AFIC portfolio including the benefit of franking
returning 1.2% over the 12 months, underperforming
the S&P/ASX 200 Accumulation Index return of 11.5%
including franking.
Underperformance came from many large core
holdings that had significant declines in their share
prices during the year. These included CSL, ARB
Corporation, James Hardie Industries
( because of a
poorly structured large acquisition)
, CAR Group,
Mainfreight and REA Group. IDP Education has also
been a disappointing investment for us having a
material negative impact on performance.

Additionally, having no exposure to small and mid-cap
resources which were up substantially over the period
also had a significant impact. AFIC is not typically an
investor in these sectors given the highly cyclical
nature of many companies within this area of the
market and lack of consistent earnings growth.
We prefer to focus on companies with prospects for
long term earnings growth, which can produce
attractive reinvestment opportunities and dividends.






Portfolio Adjustments
Our investment approach concentrates on investing in
quality companies to generate long term returns. We
remain focused on continuous improvement in our
processes to produce returns in line with our
investment objectives. Recent adjustments to the
portfolio reflect this.
Large positions in Wesfarmers and Commonwealth
Bank of Australia continued to be trimmed. We
consider both companies to be high quality but
extremely over-valued. Any subsequent falls in their
respective share prices give us the potential to buy
back into these companies as their share prices start
to better reflect fair value.
The trimming of our positions in platform provider
Netwealth Group, as well as Westpac Banking Group
and National Australia Bank, was done for a similar
reason.
Our selling in WiseTech Global and James Hardie
Industries was done on quality considerations.
We have fully exited WiseTech Global after previously
adding to the position. This decision was made based
on a reassessment of the quality of this company.
WiseTech Global’s core software product remains a
market leader, but our concerns centre on the
company’s governance shortcomings. We think this
risk is amplified by a recent acquisition that was
largely debt funded.
We have reduced our investment in James Hardie
Industries. The company still has an attractive long
term growth opportunity, but a stretched balance
sheet combined with management and board turnover
mean the risk profile has increased. The valuation has
returned to very reasonable levels. Therefore, we
have decided to maintain an investment in James
Hardie Industries but reduced it to what we consider
to be a more appropriate size, given the changed
circumstances.
Buying during the period was concentrated in two blue
chip companies where in each case we see an
attractive dividend yield combined with high-quality
and attractive valuation – Woolworths Group and
Telstra Group.




4

Australian Foundation Investment Company Limited
Woolworths Group has recently delivered some
disappointing financial results because of poor
execution in its core supermarkets business. We see
the issues as temporary and believe this has given us
the opportunity to invest in a high returning, defensive
business that provides our portfolio with a good mix of
fully franked dividend income plus growth.

Telstra Group remains the dominant leader in an
attractive industry that continues to be driven by a
growing population’s increasing usage of data. The
company’s returns are improving and the balance
sheet is in good shape, which should result in a high
fully franked dividend yield that we believe can grow
over time.
We continued to build our investment in Sigma
Healthcare in a patient and disciplined manner by
taking advantage of some recent short term
underperformance in the share price.
Following the merger with Chemist Warehouse,
Sigma Healthcare is now Australia’s leading retail
pharmacy franchisor, distributor and wholesaler. The
company has a strong track record of execution with
double-digit revenue growth over the past two
decades. The company continues to have a long
growth runway, as it operates in an attractive,
strongly growing healthcare and beauty retail
category in which it is winning market share. Sigma
Healthcare primarily offers our portfolio an attractive
level of capital growth alongside modest, albeit
strongly growing, dividends.
We added to our position in healthcare giant CSL. We
are aware of the short term pressures on the business
and are frustrated by the share price performance, but
we continue to see a compelling long term investment
case given the current valuation.
We took advantage of a sell-off in a number of quality
small-cap growth companies to add to the portfolio.
This included buying Life360, an emerging technology
business that earns subscription and advertising
revenue through its family tracking and safety app.
We rate management highly and see the potential for
long term capital growth. We made our initial
investment once the valuation had returned to more
reasonable levels.
We also increased our position in Macquarie
Technology Group, a leading Australian data centre
and cyber security company. We continue to see a
compelling long term investment in terms of both
quality and value.
International Portfolio
The international portfolio within AFIC has continued
to generate value for shareholders, with the portfolio
standing at $170.0 million on 31 December 2025
following the initial investment of $103.5 million in May
2021.
As previously communicated to shareholders
preparatory work has been undertaken in
consideration of establishing a separate low-cost
global investment company in the future. However, at
this stage we are not considering the listing of a
separate fund.
In this context we have decided to adjust the
approach by continuing to invest in international
markets focusing on a smaller number of holdings.
This will still provide AFIC with the opportunity to find
the best ideas in international markets through a more
concentrated and complementary portfolio consistent
with AFIC’s investment style. This is particularly
relevant in an increasingly concentrated Australian
equity market. The Board believes this approach also
provides for greater strategic flexibility in the future. In
addition, it will continue to benefit the investment team
managing the broader AFIC portfolio by having
greater exposure to insights arising from international
markets, particularly as many of the Australian listed
companies in the portfolio operate globally.
Outlook
Despite extreme geopolitical uncertainty and a more
indeterminate outlook for economic growth and
inflation in Australia and elsewhere, the market
delivered another strong year of performance in the
12 months to 31 December 2025. Only a more
subdued December quarter prevented the S&P/ASX
200 Index from closing at all-time high levels. In our
view this leaves the market looking expensive,
especially against long-term averages for the market’s
price to earnings ratio and dividend yield.
While we remain cautious in this environment, in a
market that is seemingly driven by a greater short-
term focus and swings in momentum, we have been
able to take advantage of buying opportunities in
selected companies that we judge to be high quality
and have attractive long term growth prospects.
5

Australian Foundation Investment Company Limited

In this context, we continue to believe that owning a
diversified portfolio of high-quality companies can
produce an attractive level of income and capital
growth over the long term, thereby enabling us to
meet our dividend and long term total return
objectives.

Please direct any enquiries to:

Mark Freeman Geoff Driver
Managing Director General Manager
(03) 9650 9111

21 January 2026
6

Australian Foundation Investment Company Limited
Major Transactions in the Investment Portfolio
Acquisitions
Cost
($m)
Woolworths Group 45.2
Telstra Group 30.2
Sigma Healthcare 28.7
WiseTech Global 20.0
CSL 15.0
Life360 13.5
Macquarie Technology Group 12.7

Disposals
Proceeds
($m)
Wesfarmers 70.4
WiseTech Global* 66.1
Netwealth Group 33.2
James Hardie Industries 28.3
Commonwealth Bank of Australia 20.1
National Australia Bank 20.0
Westpac Banking Corporation 20.0
* Complete disposal from the portfolio.

New Companies Added to the Portfolio
Life360
Temple & Webster Group
Objective Corporation

7

Australian Foundation Investment Company Limited

Top 25 Investments at 31 December 2025
Includes investments held in both the investment and trading portfolios.
Value at Closing Prices at 31 December 2025

Total Value
$ Million
% of the
Portfolio
1
BHP* 942.1 9.6%
2
Commonwealth Bank of Australia 823.5 8.4%
3
National Australia Bank* 502.2 5.1%
4
Westpac Banking Corporation 492.9 5.0%
5
CSL 469.3 4.8%
6
Macquarie Group 436.4 4.5%
7
Wesfarmers 391.2 4.0%
8
Transurban Group* 375.0 3.8%
9
Goodman Group* 357.0 3.6%
10
Telstra Group* 338.0 3.5%
11
Rio Tinto 273.4 2.8%
12
ANZ Group Holdings 269.5 2.8%
13
Woolworths Group 243.7 2.5%
14
ResMed 240.4 2.5%
15
Coles Group* 197.9 2.0%
16
Woodside Energy Group 192.6 2.0%
17
CAR Group 175.0 1.8%
18
ALS 154.5 1.6%
19
Mainfreight 142.4 1.5%
20
Computershare 134.2 1.4%
21
Brambles 134.1 1.4%
22
ARB Corporation 132.9 1.4%
23
James Hardie Industries 129.8 1.3%
24
Amcor 120.7 1.2%
25
Fisher & Paykel Healthcare Corporation 117.5 1.2%
Total 7,786.1
As percentage of total portfolio value (excludes cash)

79.5%
* Indicates that options were outstanding against part of the holding.

8

Australian Foundation Investment Company Limited

Portfolio Performance to 31 December 2025
Performance Measures to 31 December 2025 6 Months 1 Year
3 Years
% pa
5 Years
% pa
10 Years
% pa
Portfolio Return – Net Asset Backing Return
Including Dividends Reinvested

-3.0%

-0.4%

8.3%

7.1%

7.5%
S&P/ASX 200 Accumulation Index 3.7% 10.3% 11.4% 9.9% 9.3%

Portfolio Return – Net Asset Backing Gross
Return Including Dividends Reinvested*

-2.0%

1.2%

9.9%

8.7%

9.3%
S&P/ASX 200 Gross Accumulation Index* 4.2% 11.5% 12.7% 11.3% 10.8%
* Incorporates the benefit of franking credits for those who can fully utilise them.
Note: AFIC net asset per share growth plus dividend series is calculated after management expenses,
income tax and capital gains tax on realised sales of investments. It should also be noted that
Index returns for the market do not include the impact of management expenses and tax on their
performance.
Past performance is not indicative of future performance.

9

A
USTRALIAN
FOUNDATION
INVESTMENT
C
OMPANY
LIMITED
ABN 56 004 147 120








HALF-YEAR REPORT
31 DECEMBER 2025




10

COMPANY PARTICULARS
Australian Foundation Investment Company Limited (“AFIC”)
ABN 56 004 147 120
AFIC is a Listed Investment Company. As such it is an investor in equities and similar securities on the
stock market primarily in Australia.
Directors:
Craig M. Drummond, Chairman
Rebecca P. Dee-Bradbury
Julie A. Fahey
Katie M. Hudson
Graeme R. Liebelt
Richard L. Murray
David A. Peever
R. Mark Freeman, Managing Director
Company Secretaries:
Matthew J. Rowe
Andrew J.B. Porter
Auditor:
PricewaterhouseCoopers, Chartered Accountants
Country of
incorporation:
Australia
Registered office: Level 21
101 Collins Street
Melbourne, Victoria 3000

Contact Details: Mail Address:
Telephone :
Facsimile:
Email:
Internet address:
Level 21, 101 Collins St., Melbourne, Victoria 3000
(03) 9650 9911
(03) 9650 9100
invest@afi.com.au
afi.com.au
For enquiries regarding net asset backing (as advised each month to the
Australian Securities Exchange):

Telephone: 1800 780 784 (toll free)


Share Registrar: MUFG Corporate Markets (AU) Limited
Mail Address:

AFIC Shareholder
enquiry lines:

E- mail:
Facsimile:
Internet:
Locked Bag A14, Sydney South, NSW, 1235

1300 857 499 (Aus)
+64 9375 5998 (NZ)

afi @cm.mpms.mufg.com
(02) 9287 0303
au.investorcentre.mpms.mufg.com


For all enquiries relating to shareholdings, dividends and related matters, please
contact the share registrar.

Securities Exchange
Codes:

AFI Ordinary shares (ASX and NZX)


11

DIRECTORS' REPORT

The Directors present their report in relation to the half-year to 31 December 2025 on the
consolidated entity (“the Group”) consisting of Australian Foundation Investment Company Limited
(“the Company” and “AFIC”) and its subsidiary, Australian Investment Company Services Limited
(“AICS”).

Directors
The following persons were Directors of the Company during the half-year and up to the date of
this report:

C.M. Drummond (appointed July 2021, appointed Chairman October 2023)
R.P. Dee-Bradbury (appointed May 2019)
J.A. Fahey (appointed April 2021)
K.M. Hudson (appointed January 2024)
G.R. Liebelt (appointed June 2012)
R.L. Murray (appointed January 2024)
D.A. Peever (appointed November 2013)
R.M. Freeman (appointed January 2018)

Review of the Group's operations and results
Overview
AFIC’s investment focus is on a diversified portfolio of primarily Australian equities. There has
been no change in the nature of the Company’s activities during the period. Its primary objectives
are to pay a stable to growing dividend over time and to provide attractive total returns over the
medium to long term.

Profit Performance and Dividend
Profit for the half-year was $147.0 million, down 4.6% from the previous corresponding period.
The net profit per share for the six months to 31 December 2025 was 11.7 cents per share with an
interim dividend declared of 12.0 cents per share fully franked plus a special dividend of 2.5 cents.
There was no special dividend declared for the half-year ended 31 December 2024, and the
interim dividend was 12.0 cents fully franked.
The portfolio return for the 6 months (measured by change in net asset backing per share plus
dividends reinvested) was -3.0% compared to the return of the S&P/ASX 200 Accumulation Index
for the same period which was 3.7%. AFIC’s portfolio return is calculated after management fees,
income tax and capital gains tax on realised sales of investments and does not reflect the value of
franking credits or LIC credits attached to the dividends. Index returns for the market do not
include the impact of management expenses and tax on their performance.
During the half-year 8.1 million shares were issued under the DRP and the DSSP resulting in an
additional $50.6 million of capital (after costs). In addition, 9.2 million shares were bought back
under the Company’s on-market buy-back programme, leading to an overall reduction in capital
for the half-year (including costs) of $17.0 million.

12

Auditors’ independence declaration
A copy of the auditors’ independence declaration as required under section 307C of the
Corporations Act 2001 is set out on page 14.

Rounding of amounts to nearest thousand dollars
The Group is of a kind referred to in the ASIC Corporations’ (Rounding in Financial/Directors’
Reports) Instrument 2016/191, relating to the "rounding off" of amounts in the directors' report and
financial report. Unless specifically stated otherwise, amounts in the directors' report and financial
report have been rounded off to the nearest thousand dollars in accordance with that Instrument.



This report is made in accordance with a resolution of the Directors.







C.M. Drummond
Chairman

Melbourne
21 January 2026

13

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
pwc.com.au
Liability limited by a scheme approved under Professional Standards Legislation.
Auditor’s Independence Declaration
As lead auditor of Australian Foundation Investment Company Limited’s financial report for the half-
year ended 31 December 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 review of the financial report; and
b)no contraventions of any applicable code of professional conduct in relation to the review of the
financial report.
This declaration is in respect of Australian Foundation Investment Company Limited and the entity it
controlled during the period.
Kate L Logan Melbourne
Partner 21 January 2026
PricewaterhouseCoopers
14

CONSOLIDATED INCOME STATEMENT FOR THE HALF-YEAR ENDED 31
DECEMBER 2025
Note Half-year
2025
Half-year
2024
$’000 $’000

Dividends and distributions 160,617 166,298
Revenue from deposits and bank bills 5,264 4,126
Other revenue 2,845 3,113

Total revenue
168,726

173,537

Net gains/(losses) on trading portfolio
3,036

1,892

Income from operating activities 3 171,762 175,429

Finance & related costs (599) (631)
Administration expenses (8,797) (10,900)
Profit before income tax expense

162,366 163,898
Income tax expense (15,347) (9,734)
Profit for the half-year 147,019 154,164


Profit is attributable to :
Equity holders (members) of Australian Foundation
Investment Company Ltd
146,891 154,162
Minority Interest 128 2
147,019 154,164

Cents

Cents
Basic earnings per share 8

11.70 12.29





This Income S tatement should be read in conjunction with the accompanying notes.

15

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE
HALF-YEAR ENDED 31 DECEMBER 2025

Half-Year to 31 December 2025 Half-Year to 31 December 2024
Revenue Capital Total Revenue Capital Total
$’000 $’000 $’000 $’000 $’000 $’000

Profit for the half-year 147,019 - 147,019 154,164 - 154,164

Other Comprehensive Income
Items that will not be recycled through the Income Statement
(Losses)/gains for the period on equity
securities in the investment portfolio
- (411,358) (411,358) - 531,401 531,401
Tax on above - 120,753 120,753 - (162,605) (162,605)
Total other comprehensive income
1
- (290,605) (290,605) - 368,796 368,796

Total comprehensive income
2
147,019 (290,605) (143,586) 154,164 368,796 522,960

1
Net capital income not accounted for through the Income Statement


2
This is the company’s Net Return for the half-year, which includes the Net Profit plus the net realised and
unrealised gains or losses on the Company’s investment portfolio.



Half-Year to 31 December 2025 Half-Year to 31 December 2024
Revenue Capital Total Revenue Capital Total
$’000 $’000 $’000 $’000 $’000 $’000
Total Comprehensive Income is
attributable to:

Equity holders of Australian Foundation
Investment Company Ltd
146,891 (290,605) (143,714) 154,162 368,796 522,958
Minority Interest 128 - 128 2 - 2
147,019 (290,605) (143,586) 154,164 368,796 522,960



This Statement of Comprehensive Income should be read in conjunction with the accompanying notes.


16

CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2025
31 Dec 30 June
2025 2025
Note $’000 $’000
Current assets
Cash 131,565 280,769
Receivables 13,352 39,534
Trading portfolio 4 (2) 5,773
Total current assets 144,915 326,076

Non-current assets
Investment portfolio 9,788,134 10,254,757
Fixtures and fittings 245 155
Deferred tax assets - other 2,171 -
Total non-current assets 9,790,550 10,254,912

Total assets 9,935,465 10,580,988

Current liabilities
Payables 630 1,335
Borrowings – bank debt - 10,000
Tax payable 34,748 113,483
Provisions 4,304 7,084
Total current liabilities 39,682 131,902

Non-current liabilities
Provisions 103 169
Deferred tax liabilities - other - 233
Deferred tax liabilities - investment portfolio 5 1,551,077 1,707,918
Total non-current liabilities 1,551,180 1,708,320

Total liabilities 1,590,862 1,840,222

Net Assets 8,344,603 8,740,766

Shareholders' equity
Share Capital 6 3,193,201 3,210,196
Revaluation Reserve 3,272,745 3,651,333
Realised Capital Gains Reserve 651,730 799,329
General Reserve 23,637 23,637
Retained Profits 1,201,330 1,054,439
Parent Entity Interest 8,342,643 8,738,934
Minority Interest 1,960 1,832
Total equity 8,344,603 8,740,766



This Balance Sheet should be read in conjunction with the accompanying notes.
17

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2025

Attributable to members of Australian Foundation Investment Company
Ltd

Half-Year to 31 December 2025


Note


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 half-
year
3,210,196 3,651,333 799,329 23,637 1,054,439 8,738,934 1,832 8,740,766
Dividends paid 7 - - (235,582) - - (235,582) - (235,582)
Shares issued - Dividend Reinvestment Plan 6 50,935 - - - - 50,935 - 50,935
Shares bought-back 6 (67,632) - - - - (67,632) - (67,632)
Other Share Capital Adjustments 6 (298) - - - - (298) - (298)
Total transactions with shareholders (16,995) - (235,582) - - (252,577) - (252,577)

Profit for the half-year - - - - 146,891 146,891 128 147,019

Net losses for the period on equity securities
in the investment portfolio - (290,605) - - - (290,605) - (290,605)
Other Comprehensive Income for the half-
year
- (290,605) - - - (290,605) - (290,605)
Transfer to Realised Capital Gains Reserve
of net cumulative gains (after tax) on
investments sold - (87,983) 87,983 - - - - -

Total equity at the end of the half-year 3,193,201 3,272,745 651,730 23,637 1,201,330 8,342,643 1,960 8,344,603

This Statement of Changes in Equity should be read in conjunction with the accompanying notes.



18

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2024


Attributable to members of Australian Foundation Investment Company
Ltd
Half-Year to 31 December 2024


Note


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 half-
year
3,204,950 3,449,280 546,953 23,637 1,034,794 8,259,614 1,773 8,261,387
Dividends paid
7
- - (54,248) - (120,550) (174,798) -
(174,798)
Shares issued - Dividend Reinvestment Plan 39,650 - - - - 39,650 - 39,650
Shares bought-back (36,156) - - - - (36,156) (36,156)
Other Share Capital Adjustments

(154) - - - - (154) - (154)
Total transactions with shareholders

3,340 - (54,248) - (120,550) (171,458) - (171,458)
Profit for the half-year - - - - 154,162
154,162
2 154,164
Other Comprehensive Income for the half-year


Net gains for the period on equity securities in
the investment portfolio - 368,796 - - - 368,796 - 368,796
Other Comprehensive Income for the half-
year
- 368,796 - - - 368,796 - 368,796
Transfer to Realised Capital Gains Reserve
of net cumulative gains (after tax) on
investments sold - (138,978) 138,978 - - - - -

Total equity at the end of the half-year 3,208,290 3,679,098 631,683 23,637 1,068,406 8,611,114 1,775 8,612,889
This Statement of Changes in Equity should be read in conjunction with the accompanying notes


19

CONSOLIDATED CASH FLOW STATEMENT FOR THE HALF-YEAR
ENDED 31 DECEMBER 2025
Half-year Half-year
2025 2024
$’000 $’000
INFLOWS/ INFLOWS/
(OUTFLOWS) (OUTFLOWS)
Cash flows from operating activities
Sales from trading portfolio 14,169 11,225
Purchases for trading portfolio (5,358) (9,586)
Interest received 5,336 4,215
Dividends and distributions received 184,844 194,598
198,991 200,452

Other receipts 2,841 3,108
Administration expenses (11,752) (12,360)
Finance costs paid (599) (631)
Taxes paid (12,904) (14,227)
Net cash inflow/(outflow) from operating activities 176,577 176,342

Cash flows from investing activities
Sales from investment portfolio 389,007 479,038
Purchases for investment portfolio (333,749) (325,306)
Taxes paid on capital gains (118,351) (31,287)
Payment for fixed assets (112) -
Net cash inflow/(outflow) from investing activities (63,205) 122,445

Cash flows from financing activities
Repayment of borrowings (10,000) -
Share issue costs (298) (154)
Shares bought-back (67,632) (36,156)
Dividends paid (184,646) (134,862)
Net cash inflow/(outflow) from financing activities (262,576) (171,172)

Net increase/(decrease) in cash held (149,204) 127,615
Cash at the beginning of the half-year 280,769 166,499
Cash at the end of the half-year 131,565 294,114











This Cash Flow Statement should be read in conjunction with the accompanying notes.

20

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED
31 DECEMBER 2025
1. Basis of preparation of half-year financial report
This general purpose half-year financial report has been prepared in accordance with Accounting
Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001.
This half-year financial report does not include all the notes of the type normally included in an
annual financial report. This report should be read in conjunction with the 2025 Annual Report
and public announcements made by the Group during the half-year, in accordance with the
continuous disclosure requirements of the Corporations Act 2001.
The accounting policies adopted are consistent with those of the previous financial year and
corresponding interim reporting period.
In the interests of transparency in its reporting, the Group uses the phrase “market value” in place
of the AASB terminology “fair value for actively traded securities.” The Company’s investments in
listed securities are valued at the closing price on the ASX on the last trading day before the
period end.

2. Financial reporting by segments
The Group consists of a Listed Investment Company and a subsidiary which provides
administration services to it and to other Listed Investment Companies in Australia. It has no
reportable business or geographic segments.
(a) Segment information provided to the Board
The internal reporting provided to the Board for the Group’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 the Group’s Net Tangible Asset announcements
to the ASX).
The relevant amounts as at 31 December 2025 and 31 December 2024 were as follows:
2025
$


2024
$
Net tangible asset backing per share
Before Tax 7.90 8.24
After Tax 6.66 6.87

(b) Other segment information
Segment Revenue
Revenues from external parties are derived from the receipt of dividend, distribution and interest
income, and income arising on the trading portfolio.
The Company is domiciled in Australia and the Group’s dividend and distribution income is
predominantly from entities which maintain a listing in Australia. The Group has a diversified
portfolio of investments, with only 1 investment comprising more than 10% of the Group’s income
(including trading portfolio) for the half-year ended 31 December 2025 – BHP 10.8% (2024 : 2 –
BHP 13.3% and Commonwealth Bank 10.2%).
21

3. Income from operating activities
Half-year
2025
$'000

Half-year
2024
$'000
Income from operating activities is comprised of the following:

Dividends & distributions
• securities held in investment portfolio
160,545 166,298
• securities held in trading portfolio
72 -
160,617 166,298
Interest income
• deposits and income from bank bills
5,264 4,126
5,264 4,126
Net gains/(losses) and write downs
• net gains from trading portfolio sales
3,866 1,004
• unrealised gains/(losses) in trading portfolio (830) 888
3,036 1,892

Administration fees received from other Listed Investment
Companies
2,803 3,017
Expenses recovered from other Listed Investment
Companies
35 85
Other expenses recovered 6 6
Sundry income 1 5

171,762 175,429



4. Trading portfolio

As part of the activities of the trading portfolio, the Company enters into option contracts for the
purpose of enhancing returns, offsetting risk or providing opportunities to acquire or sell securities
at advantageous prices.
As at balance date there were call options outstanding which, if they were all exercised, would
require the Company to deliver securities to the value of $148.1 million (30 June 2025: $42.9
million).








22

5. Deferred tax liabilities – investment portfolio
In accordance with AASB 112 Income Taxes, deferred tax liabilities have been recognised for
Capital Gains Tax on the unrealised gain in the investment portfolio at current tax rates (30%)
totalling $1,551.1 million (30 June 2025 : $1,707.9 million). As the Directors do not intend to
dispose of the portfolio, this tax liability may not be crystallised at this amount.
6. Shareholders’ equity – share capital
Movements in Share Capital of the Company during the half-year were as follows:
Date Details Notes Number
of shares
’000
Issue
price
$
Paid-up
Capital
$’000
01/07/2025 Opening Balance

1,254,059 3,210,196
28/08/2025 Dividend Reinvestment Plan
i
6,930
7.35
50,935
28/08/2025 Dividend Substitution Share Plan
ii
1,219
7.35
n/a
Various On-market buybacks iii (9,224) (67,632)
Various Other Share Capital adjustments - (298)
31/12/2025 Balance 1,252,984 3,193,201

i The Company has a Dividend Reinvestment Plan under which some shareholders elected to
have all or part of their dividend payment reinvested in new ordinary shares. Pricing of the
new DRP shares was based on the average selling price of shares traded on the Australian
Securities Exchange & Cboe automated trading systems in the five days from the day the
shares begin trading on an ex-dividend basis.
ii The Company has a Dividend Substitution Share Plan under which some shareholders
elected to forego all or part of their dividend payment and receive shares instead. Pricing of
the new DSSP shares was done on the same basis as the DRP.
iii The Company introduced an on-market Buy-Back Programme in December 2000. This plan
remains active. During the half-year, 9.2 million shares were bought back at an average
price of $7.33.

7. Dividends
Half-year
2025
$’000
Half-year
2024
$’000

Dividends (fully franked) paid during the period 235,582 174,798
(excluding DSSP shares) (14.5 cents
per share
plus 5 cents
special)
(14.5 cents per
share)
Dividends not recognised at period end
Since the end of the half-year the Directors have declared an
interim dividend of 12.0 cents per share, fully franked plus a
special dividend of 2.5 cents, also fully franked. The aggregate
amount of the proposed interim dividend expected to be paid on
26 February 2026, but not recognised as a liability at the end of
the half-year is 181,683


23

8. Earnings per Share
Half-year
2025

Half-year
2024

Number Number
Weighted average number of ordinary shares used as the
denominator
1,255,784,290 1,254,483,603

$’000 $’000
Profit after tax for the half-year attributable to members of the
Company 146,891 154,162

Cents Cents
Basic earnings per share 11.70 12.29

There are no dilutive instruments on issue and consequently diluted earnings per share are the
same as basic earnings per share.
9. Events subsequent to balance date
Since 31 December 2025 to the date of this report there has been no event specific to the Group
of which the Directors are aware which has had a material effect on the Group or its financial
position.
10. Contingencies
At balance date Directors are not aware of any material contingent liabilities or contingent assets
other than those already disclosed elsewhere in the financial report.
24

DIRECTORS' DECLARATION

In the Directors’ opinion:

(a) the financial statements and notes set out on pages 15 to 24 are in accordance with the
Corporations Act 2001, including:
(i) complying with Accounting Standards, the Corporations Regulations 2001 and other
mandatory professional reporting requirements; and
(ii) giving a true and fair view of the Group’s financial position as at 31 December 2025
and of its performance, as represented by the results of the operations, changes in
equity and cash flows, for the half-year ended on that date; and
(b) there are reasonable grounds to believe that the Company will be able to pay its debts
as and when they become due and payable.

This declaration is made in accordance with a resolution of the Directors.





C. M. Drummond
Chairman

Melbourne
21 January 2026
25

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
Liabi
lity limited by a scheme approved under Professional Standards Legislation.
pwc.com.au
Independent auditor's review report to the members of
Australian Foundation Investment Company Limited
Report on the half-year financial report
Conclusion
We have reviewed the half-year financial report of Australian Foundation Investment Company Limited
(the Company) and the entity it controlled during the half-year (together the Group), which comprises
the consolidated balance sheet as at 31 December 2025, the consolidated statement of comprehensive
income, consolidated statement of changes in equity, consolidated cash flow statement, consolidated
income statement for the half-year ended on that date, selected explanatory notes and the directors‘
declaration.
Based on our review, which is not an audit, we have not become aware of any matter that makes us
believe that the accompanying half-year financial report of Australian Foundation Investment Company
Limited does not comply with the Corporations Act 2001 including:
1.giving a true and fair view of the Group’s financial position as at 31 December 2025 and of its
performance for the half-year ended on that date;
2.complying with Accounting Standard AASB 134 Interim Financial Reporting and the
Corporations Regulations 2001.
Basis for conclusion
We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the
Independent Auditor of the Entity (ASRE 2410). Our responsibilities are further described in the
Auditor's responsibilities for the review of the half-year financial report section of our report.
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
26

Code) that are relevant to the audit of the annual financial report in Australia. We have also fulfilled our
other ethical responsibilities in accordance with the Code.
Responsibilities of the directors for the half-year financial report
The directors of the Company are responsible for the preparation of the half-year 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 half-year financial report that is free from material misstatement whether due to fraud
or error.
Auditor's responsibilities for the review of the half-year financial report
Our responsibility is to express a conclusion on the half-year financial report based on our review. ASRE
2410 requires us to conclude whether we have become aware of any matter that makes us believe that the
half-year financial report is not in accordance with the Corporations Act 2001 including giving a true and
fair view of the Group’s financial position as at 31 December 2025 and of its performance for the half-
year ended on that date, and complying with Accounting Standard AASB 134 Interim Financial
Reporting and the Corporations Regulations 2001.
A review of a half-year financial report consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and
consequently does not enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
PricewaterhouseCoopers
Kate L Logan Melbourne
Partner 21 January 2026
27