Australian Foundation Investment Co. Ltd. · ASX:AFI
Australian Foundation Investment — Investor Presentation (December 2024)
30 slides from Australian Foundation Investment's investor presentation, Dec 2, 2024
Slide 1: ASX cover letter: NZ Information Meeting Presentation
2 December 2024 The Manager ASX Market Announcements Australian Securities Exchange Exchange Centre Level 4 20 Bridge Street Sydney NSW 2000 For personal use only Electronic Lodgement Australian Foundation Investment Company Limited NZ Information Meeting – Presentation Dear Sir / Madam Please find
Slide 2: NZ Shareholder Meeting December 2024
For personal use only NZ Shareholder Meeting December 2024
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: 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. NZ Shareholder Meeting / December 2024 5
Slide 7: 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 six financial years. NZ Shareholder Meeting / December 2024 6
Slide 8: 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 $180k $10k in the Index $135k Excludes the benefit of franking. NZ Shareholder Meeting / December 2024 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. NZ Shareholder Meeting / December 2024 9
Slide 11: Share Price Relative to NTA
Share Price Relative to NTA For personal use only 31 October 2024 NTA: $8.17 Share price: $7.43 NZ Shareholder Meeting / December 2024 10
Slide 12: Markets and the Portfolio
For personal use only Markets and the Portfolio Full Year Results
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 24% 34% AFIC Cyclicals 26% Income 16% NZ Shareholder Meeting / December 2024 12
Slide 14: Portfolio and Sector Performance
Portfolio and Sector Performance For personal use only Portfolio Return – Per Annum to 31 October 2024 Sector Performance 12 months to 31 October 2024 Portfolio Return is before tax and costs. Past performance is not indicative of future performance. NZ Shareholder Meeting / December 2024 13
Slide 15: Market Valuation in a Long Term Context
Market Valuation in a Long Term Context For personal use only ASX 200 Firms Trade at an Average Forward PE of 18.0x, which is 17% Above the 20-yr Average NZ Shareholder Meeting / December 2024 14
Slide 16: Market Conditions
Market Conditions For personal use only What’s Occupying Our Mind Earnings growth becoming more challenging with price rises expected to slow. Consumer spending is softening. Employment trends to be important. China. Announced policy initiatives attempting to stabilise market conditions. Majority of
Slide 17: Labour Productivity Remains Weak. Cost-out to be a Focus?
Labour Productivity Remains Weak. Cost-out to be a Focus? For personal use only Falling demand and a historically tight labour ASX 200 (ex-REITs) annual growth in labour market impacting labour productivity costs far exceeding sales growth % Source: Goldman Sachs Research NZ Shareholder Meeting / De
Slide 18: Recent Portfolio Activity
For personal use only Recent Portfolio Activity Full Year Results
Slide 19: Active Portfolio Management – Recent Transactions
Active Portfolio Management – Recent Transactions For personal use only Additions to Existing Holdings Trimmed Holdings New Purchases Complete Disposals NZ Shareholder Meeting / December 2024 18
Slide 20: Recent Transactions – A Spotlight on Bank Valuations
Recent Transactions – A Spotlight on Bank Valuations For personal use only ASX 200 Banks Valuation vs Earnings Trend Source: Goldman Sachs Research. NZ Shareholder Meeting / December 2024 19
Slide 21: CAR Group
CAR Group EPS vs Share Price For personal use only CAR Group holds market leading positions in auto classifieds in Australia, USA, South Korea and Brazil. Management team with a long-term track record of delivering strong returns for shareholders. EPS cents Share Price (RHS) ASX 200 – Indexed (RHS)
Slide 22: Outlook
For personal use only Outlook Full Year Results
Slide 23: Outlook
Outlook For personal use only Slowing economic growth providing an increasingly challenging environment for companies to deliver earnings growth. Investment markets been prepared to pay high prices where there is a high degree of confidence of earnings growth. Drivers of market performance expected
Slide 24: International Portfolio
For personal use only International Portfolio NZ Shareholder Meeting / December 2024
Slide 25: Snapshot of the International Portfolio
Snapshot of the International Portfolio which has 42 holdings For personal use only NZ Shareholder Meeting / December 2024 24
Slide 26: Our Other LICs
Our Other LIC’s For personal use only Fully franked yield that is higher Australian and NZ small/midcap High conviction portfolio, strong than that available from the ASX sector, capital growth over the long capital growth over the long term 200 Index utilising option strategies, term and fully fran
Slide 27: Djerriwarrh: Dividend Yield & Share Price to NTA
Djerriwarrh: Dividend Yield & Share Price to NTA – 31 October 2024 For personal use only Yield Share Price Relative to NTA 31 October 2024 Assumes an investor can take full advantage of franking credits. NTA: $3.38 Share price: $3.17 Past performance is not indicative of future performance. NZ Share
Slide 28: Mirrabooka: Portfolio Performance & Share Price to NTA
Mirrabooka: Portfolio Performance & Share Price to NTA – 31 October 2024 For personal use only Portfolio Return Share Price Relative to NTA 31 October 2024 Portfolio Return is before tax and costs. Past performance is not indicative of future performance. NTA: $3.29 Share price: $3.31 NZ Shareholder
Slide 29: AMCIL: Portfolio Performance & Share Price to NTA
AMCIL: Portfolio Performance & Share Price to NTA – 31 October 2024 For personal use only Portfolio Return Share Price Relative to NTA 31 October 2024 Portfolio Return is before tax and costs. Past performance is not indicative of future performance. NTA: $1.30 Share price: $1.17 NZ Shareholder Meet
Slide 30: Australian Foundation Investment Company
AUSTRALIAN FOUNDATION INVESTMENT COMPANY
Australian Foundation Investment Company — Investor Presentation (December 2024) on 6ix