Australian Foundation Investment Co. Ltd. · ASX:AFI
Australian Foundation Investment — FY2022 Earnings Presentation
22 slides from Australian Foundation Investment's earnings presentation, Jul 26, 2022
Slide 1: Results Webcast Presentation ASX cover letter
26 July 2022 The Manager ASX Market Announcements For personal use only Australian Securities Exchange Exchange Centre Level 4 20 Bridge Street Sydney NSW 2000 Electronic Lodgement Australian Foundation Investment Company Limited Results Webcast Presentation Please find attached the presentation to
Slide 2: Full Year Results July 2022
For personal use only Full Year Results July 2022
Slide 3: Disclaimer
Disclaimer For personal use only 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 fai
Slide 4: Agenda
Agenda For personal use only Overview and Investment Objectives Mark Freeman Financial Results Andrew Porter Markets and the Portfolio David Grace Recent portfolio activity Nga Lucas Outlook David Grace 3 Full Year Results 2022 2
Slide 5: Overview and Investment Objectives
For personal use only Overview and Investment Objectives Full Year Results 2022
Slide 6: Our Company
Our Company For personal use only Invests in Australian and New Zealand companies Largest listed investment company on the ASX, over 160k shareholders, independent Board of Directors Shareholders own the ‘management rights’ to the portfolio Management expense ratio of 0.16% with no performance fees
Slide 7: Investment Objectives
For personal use only Investment Objectives The Company’s primary investment goals are: The Company aims to provide shareholders with attractive investment • to pay dividends which, over time, grow returns through access to a growing faster than the rate of inflation; and stream of fully franked div
Slide 8: Financial Results
For personal use only Financial Results Full Year Results 2022
Slide 9: Results to June 2022
Results to 30 June 2022 For personal use only * Assumes a shareholder can take full advantage of the franking credits. 8 Full Year Results 2022
Slide 10: Share Price Relative to NTA
Share Price Relative to NTA For personal use only 9 Full Year Results 2022
Slide 11: Markets and the Portfolio
For personal use only Markets and the Portfolio Full Year Results 2022
Slide 12: Managing Through Challenging Markets
Managing Through Challenging Markets ASX200 – 3 Year Chart Central Banks For personal use only start policy tightening 8000 7500 7000 6500 6000 Onset of COVID-19 5500 5000 Fiscal and monetary policy stimulus provided globally 4500 4000 2019 2020 2021 2022 Financial Years 11 Full Year Results 2022
Slide 13: Portfolio Set to Perform in Most Economic Settings
Portfolio Set to Perform in Most Economic Settings For personal use only Growth Companies Stalwarts 32% 29% AFIC Cyclicals Income 16% 22% 12 Full Year Results 2022
Slide 14: Portfolio and Sector Performance
Portfolio and Sector Performance FY22 Sector Performance For personal use only 13 Full Year Results 2022
Slide 15: Valuation in a Long Term Context
Valuation in a Long Term Context For personal use only Price to Book – S&P/ASX 200 Index Price to Sales – S&P/ASX 200 Index Average Average 1.9 1.9 14 Full Year Results 2022
Slide 16: Market Sell Offs Create Excellent Long-term Buying Opportunities
Market Sell Offs Create Excellent Long-term Buying Opportunities ASX All Ordinaries – Price Chart For personal use only CAGR: 5.8% Inflation shock/ rising rates: -13% Poseidon Bubble: -35% 15 Full Year Results 2022
Slide 17: Recent Portfolio Activity
For personal use only Recent Portfolio Activity Full Year Results 2022
Slide 18: Active Portfolio Management – Recent Transactions
Active Portfolio Management – Recent Transactions For personal use only Additions to Sales New Purchases Existing Holdings * * * Takeover 17 Full Year Results 2022
Slide 19: Quality Companies Deliver Superior Long-term Earnings Growth
Quality Companies Deliver Superior Long-term Earnings Growth Price, EPS – Indexed to 100 For personal use only Price, EPS – Indexed to 100 Share Price Est EPS (12m Forward) 18 Full Year Results 2022
Slide 20: Outlook
For personal use only Outlook Full Year Results 2022
Slide 21: Outlook
Outlook For personal use only • Uncertain operating environment with persistent inflation and rising interest rates. • The valuation of the market has significantly retraced this year with some risk of further downside. • The portfolio is well positioned to perform in a wide range of operating envir
Slide 22: For personal use only
For personal use only
Australian Foundation Investment Company — FY2022 Earnings Presentation on 6ix