Australian Foundation Investment Co. Ltd. · ASX:AFI
Australian Foundation Investment — FY2024 Earnings Presentation
22 slides from Australian Foundation Investment's earnings presentation, Jul 29, 2024
Slide 1: Results Webcast Presentation
29 July 2024 The Manager ASX Market Announcements Australian Securities Exchange Exchange Centre Level 4 20 Bridge Street Sydney NSW 2000 Electronic Lodgement For personal use only Australian Foundation Investment Company Limited Results Webcast Presentation Please find attached the presentation to
Slide 2: Full Year Results Financial Year 2023/24
For personal use only Full Year Results Financial Year 2023/24
Slide 3: Disclaimer
Disclaimer For personal use only Australian Foundation Investment Company Limited and its subsidiary AICS (AFSL 303209), its related entities and each of its respective directors, officers and agents (together the Disclosers) have prepared the information contained in these materials in good faith.
Slide 4: Overview and Investment Objectives
For personal use only Overview and Investment Objectives Full Year Results
Slide 5: Our Company
Our Company For personal use only Invests in Australian and New Zealand companies Largest listed investment company on the ASX, 160k shareholders, independent Board of Directors Shareholders own the ‘management rights’ to the portfolio Management expense ratio of 0.15% with no performance fees Long
Slide 6: Investment Objectives
For personal use only 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. Full Year Results 5
Slide 7: Attractive Total Returns over the Long-term
Attractive Total Returns over the Long-term AFIC NTA vs ASX 200 Accumulation Index For personal use only $10k in AFIC $173k $10k in the Index $138k Excludes the benefit of franking Full Year Results 6
Slide 8: Ensuring a stable to growing dividend for shareholders
Ensuring a stable to growing dividend for shareholders AFIC’s franking reserve balance ensures we can pay a consistent dividend even For personal use only through volatile times – full year dividends last 6 financial years Full Year Results 7
Slide 9: Financial Results
For personal use only Financial Results Full Year Results
Slide 10: Financial Year in Summary
Financial Year in Summary For personal use only * Assumes an investor can take full advantage of the franking credits. Full Year Results 9
Slide 11: Share Price Relative to NTA
Share Price Relative to NTA For personal use only 30 June 2024 NTA: $7.88 Share price: $7.15 Full Year Results 10
Slide 12: Markets and the Portfolio
For personal use only Markets and the Portfolio Full Year Results
Slide 13: Portfolio and Sector Performance – to June 2024
Portfolio and Sector Performance – to 30 June 2024 For personal use only Portfolio Return (Including the Full Benefit of Sector Performance to 30 June 2024 Franking) – Per Annum to 30 June 2024 Past performance is not indicative of future performance. Sector returns do not include franking Full Year
Slide 14: Portfolio Set to Perform in Most Economic Settings
Portfolio Set to Perform in Most Economic Settings For personal use only Growth Companies Stalwarts 24% 34% AFIC Cyclicals 26% Income 16% Full Year Results 13
Slide 15: Higher portfolio return with less volatility than the S&P/ASX 200 Index
Over the 5-year period to 30 June 2024 AFIC has a higher portfolio return with less volatility than the S&P/ASX 200 Index (both exclude franking) For personal use only Source: Mercer Investment Performance Survey of Wholesale-Equity – Australia. Note AFIC’s return is after tax paid and costs. The un
Slide 16: Valuation in a Long Term Context
Valuation in a Long Term Context For personal use only ASX 200 Index Price Earnings Ratio ASX 200 Index Dividend Yield Source: FactSet Full Year Results 15
Slide 17: Active Portfolio Management – Recent Transactions
Active Portfolio Management – Recent Transactions For personal use only Additions to Existing Holdings Trimmed Holdings New Purchases Complete Disposals Full Year Results 16
Slide 18: CSL Market Leadership in Growth Markets
For personal use only CSL Market Leadership in Growth Markets CSL is a specialist biotechnology company that develops and manufactures products to treat serious human medical conditions. Market leadership position in plasma fractionation operating more efficiently than competitors. Recent capital in
Slide 19: James Hardie Continuing to Capture Market Share
For personal use only James Hardie Continuing to Capture Market Share Fibre cement gaining market share Source: James Hardie • Market leader in fibre cement cladding for US homes. • Fibre cement has grown from 9% wall share in 2005 to 22% today. All other competing materials have lost market share o
Slide 20: Outlook
For personal use only Outlook Full Year Results
Slide 21: Outlook
Outlook For personal use only Slowing economic growth providing an increasingly challenging environment for companies to deliver earnings growth. Interest rates nearing the end of a raising cycle. Inflation appears to have peaked. Investment markets been prepared to pay high prices where there is a
Slide 22: For personal use only
AUSTRALIAN OUNDATION INVESTMENT COMPANY
Australian Foundation Investment Company — FY2024 Earnings Presentation on 6ix