Half Yearly Results Webcast Presentation

21 January 2026


The Manager
ASX Market Announcements
Australian Securities Exchange
Exchange Centre
Level 4
20 Bridge Street
Sydney NSW 2000



Electronic Lodgement




Australian Foundation Investment Company Limited
Half Yearly Results Webcast Presentation



Please find attached the presentation to be given at the Shareholder webcast being
held today, Wednesday 21 January 2026 at 3.30 p.m. (AEDT).

To join the webcast please use the link below (this will be made available on the
afi.com.au website).

Webcast Link: Please register for the results webcast here (This link will open directly
in your internet browser). Questions can be asked through the webcast link.

The shareholder presentation material will be made available through our website
https://www.afi.com.au/news.



Your faithfully


Matthew Rowe
Company Secretary

Release authorised by the Company Secretary.

Half-Year Results
Financial Year 2025/26

Half Year Results / January 2026
Australian Foundation Investment Company Limited and its subsidiary AICS (AFSL 303209), their
related entities and each of their respective directors, officers and agents (together the Disclosers)
have prepared the information contained in these materials in good faith. However, no warranty
(express or implied) is made as to the accuracy, completeness or reliability of any statements, estimates or
opinions or other information contained in these materials (any of which may change without notice) and to the
maximum extent permitted by law, the Disclosers disclaim all liability and responsibility (including, without
limitation, any liability arising from fault or negligence on the part of any or all of the Disclosers) for any direct or
indirect loss or damage which may be suffered by any recipient through relying on anything contained in or
omitted from these materials.
This information has been prepared and provided by AICS. To the extent that it includes any financial product
advice, the advice is of a general nature only and does not take into account any individual’s objectives, financial
situation or particular needs. Before making an investment decision an individual should assess whether it
meets their own needs and consult a financial advisor.
ABN: 56 004 147 120
Disclaimer
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Half Year Results / January 2026
Overview and Investment Objectives Brett McNeill
Financial Results Andrew Porter
Market and Portfolio Update Brett McNeill and Winston Chong
Outlook Brett McNeill

2
Agenda
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Half Year Results / January 2026
Overview and Investment Objectives

Half Year Results / January 2026
Predominantly invests in Australian and New Zealand companies
Largest listed investment company on the ASX, 150k shareholders, independent Board of Directors
Shareholders own the ‘management rights’ to the portfolio
Low cost with no additional fees
Long term investor with low turnover (tax effective)
Long history of stable to growing fully franked dividends
Team manages three other funds – Djerriwarrh, Mirrabooka and AMCIL
5
Our Company
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Half Year Results / January 2026
Investment Objectives
The Company’s primary investment goals are:
• to pay stable to growing dividends over time; and
• to provide attractive total returns over the medium to long
term.
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Half Year Results / January 2026
Stable to Growing Dividend for Shareholders
AFIC’s franking reserve balance ensures we can pay a consistent dividend even
through volatile times – full year dividends for the last 7 financial years.
Franking credit balance
sufficient to pay
52c Dividend
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Half Year Results / January 2026
Attractive Total Returns Over the Long-Term
$10k in AFIC  $155k
$10k in the Index  $136k
Excludes the benefit of franking.
AFIC NTA vs S&P ASX 200 Accumulation Index
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Half Year Results / January 2026
Financial Results

Half Year Results / January 2026
Summary Half Year Results
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Half Year Results / January 2026
Share Price Relative to Net Tangible Asset (NTA)
31 December 2025
NTA: $7.90
Share price: $7.19
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Half Year Results / January 2026
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Jul-89Jul-90Jul-91Jul-92Jul-93Jul-94Jul-95Jul-96Jul-97Jul-98Jul-99Jul-00Jul-01Jul-02Jul-03Jul-04Jul-05Jul-06Jul-07Jul-08Jul-09Jul-10Jul-11Jul-12Jul-13Jul-14Jul-15Jul-16Jul-17Jul-18Jul-19Jul-20Jul-21Jul-22Jul-23Jul-24Jul-25
Long term history of share price relative to NTA
Tech bubble
Property
crash/bank
crisis
Tech crash
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RBA interest rate
cutting cycle
Pre GFC
Post GFC
Black Monday Aug 2011
/US credit rating
downgraded
RBA interest rate
cutting cycle
COVID -19
Rising
interest rates

Half Year Results / January 2026
Market and Portfolio Update

Half Year Results / January 2026
Portfolio* and Sector Performance – to 31 December 2025
Source: Factset
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6 Month Sector Performance
Includes dividends but not franking.
* Assumes the full benefit of franking credits. Per annum returns other than for six months.
Past performance is not indicative of future performance.

Half Year Results / January 2026
Key drivers of our portfolio underperformance
Large Companies Owned:
15
Source: FactSet, Stock Total Returns for 2025 shown.
37%
38%
20%
39%
53%
Small Companies Owned:
Gold Companies Not Owned:
170%
78%
In the last 12 months our portfolio underperformed the S&P/ASX200 index by 10%. The key contributors include:
13%
156%

Half Year Results / January 2026
Active Portfolio Management – Recent Transactions
Additions to Existing Holdings
New Purchases
Trimmed Holdings
Complete Disposals
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Half Year Results / January 2026
Portfolio Changes - Buying
17
Market Capitalisation ($bn)
$
Source: FactSet

Half Year Results / January 2026
Portfolio Changes - Buying
18
Dividend (cents per share)
Source: Company Reports, FactSet Consensus Estimates for FY26 and FY27

Half Year Results / January 2026
Portfolio Changes - Selling
19
Source: FactSet, Consensus Next 12 Months Forecast Dividend Yield
Dividend yield

Half Year Results / January 2026
Portfolio Changes - Selling
20
Source: FactSet, Consensus Next 12 Months Forecast Price-Earnings Ratio
Price-Earnings Ratio
Times

Half Year Results / January 2026
Portfolio Update: Summary
Constructing a diversified portfolio of high-quality companies across different sectors andwith the appropriate
balance ofIncome and Growthis the keyforAFICtodeliver on itsInvestment Objectivesin a variety of
market conditions.
Top 25 Holdings
Based on 31 December 2025 Portfolio – Australia and New
Zealand Portfolio.
* Portfolio Value is based on the Investment Portfolio plus the
Trading portfolio, including Cash.
$9.9b
Key Portfolio Statistics
Total Portfolio Value*
$7.90
Net Tangible Asset (NTA) Backing Per Share
Stocks in the Portfolio
21
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Half Year Results / January 2026
International Portfolio Update
•The international portfolio within AFIC has continued to generate value for shareholders. 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 equities
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. We believe this
approach also provides for greater strategic flexibility in the future.
Top 10 Holdings
Based on 31 December 2025 Portfolio.
$170m
Key Portfolio Statistics
Total Portfolio Value
Stocks in the Portfolio
22
27
1.7%
Total % of AFIC Portfolio Value

Half Year Results / January 2026
Outlook

Half Year Results / January 2026
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 2025.
In our view this leaves the market looking moderately expensive, especially against long-term averages
for the market’s price to earnings ratio and dividend yield.
We have recently 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.
We continue to believe that AFIC’s 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.
Recognising the substantial balance of franking credits that has been built up in recent years, the Board
is 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.
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