Australian Foundation Investment Co. Ltd. · ASX:AFI
Australian Foundation Investment — FY2023 Earnings Presentation
23 slides from Australian Foundation Investment's earnings presentation, Jul 27, 2023
Slide 1: Results Webcast Presentation ASX cover letter
27 July 2023 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
Full Year Results For personal use only July 2023
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 Full Year Results / July 2023 2 3
Slide 5: Overview and Investment Objectives
For personal use only Overview and Investment Objectives Full Year Results / July 2023
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 0.14% 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 / July 2023
Slide 9: Results to June 2023
Results to 30 June 2023 For personal use only * Assumes a shareholder can take full advantage of the franking credits. # Includes a non-cash dividend of $74.9 million from the BHP Petroleum/Woodside merger in 2022 . 8 Full Year Results / July 2023
Slide 10: Share Price Relative to NTA
Share Price Relative to NTA has moved from a significant premium to a slight discount over the course of the financial year For personal use only 9 Full Year Results / July 2023
Slide 11: Markets and the Portfolio
For personal use only Markets and the Portfolio Full Year Results / July 2023
Slide 12: Portfolio and Sector Performance – to June 2023
Portfolio and Sector Performance – to 30 June 2023 For personal use only Sector returns do not include franking 11 Full Year Results / July 2023
Slide 13: Long term performance of Industrials v Resources
Long term performance of Industrials v Resources For personal use only ASX 200 relative to the Industrials and Resources Indices – Total Return Source: Goldman Sachs Research 12 Full Year Results / July 2023
Slide 14: Inflation easing as interest rate rises take effect
Inflation easing as interest rate rises take effect For personal use only More rate rises may be required but has inflation peaked? US – Inflation vs Interest Rates Australia – Inflation vs Interest Rates % % 10 9 9 8 8 7 7 6 6 5 5 4 4 3 3 2 2 1 1 0 0 2018 2019 2020 2021 2022 2023 -1 2018 2019 2020
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 1.9 Average 1.9 14 Full Year Results / July 2023
Slide 16: Recent Portfolio Activity
For personal use only Recent Portfolio Activity Full Year Results / July 2023
Slide 17: Active Portfolio Management – Recent Transactions
Active Portfolio Management – Recent Transactions For personal use only Sales New Purchases Additions to Existing Holdings Complete Disposals 16 Full Year Results / July 2023
Slide 18: CSL
CSL For personal use only 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 investment increasing capacity while d
Slide 19: Goodman Group
Goodman Group For personal use only Goodman Group is a specialist developer, owner and manager of industrial properties operating in 14 countries. Market leader in providing high-quality essential infrastructure for the digital economy. Unique opportunity to invest alongside the founder of the compa
Slide 20: IDP Education
IDP Education For personal use only IDP Education is the leading global provider of high stakes English language testing and student placements to tertiary institutions. Competitive advantage in strong network effects, in-country infrastructure and highly trusted brand with significant opportunity t
Slide 21: Outlook
For personal use only Outlook Full Year Results / July 2023
Slide 22: Outlook
Outlook For personal use only ➢ What's occupying our mind: • Solid economic growth despite rapid rise in interest rates. • Strong equity market returns despite broad based expectations of a recession. • Stubborn inflation. • Slow growth in China. ➢ Portfolio positioning: • Diversified portfolio of q
Slide 23: Australian Foundation Investment Company
AUSTRALIAN FOUNDATION INVESTMENT COMPANY
Australian Foundation Investment Company — FY2023 Earnings Presentation on 6ix