Australian Foundation Investment Co. Ltd. · ASX:AFI
Australian Foundation Investment — FY2021 Earnings Presentation
20 slides from Australian Foundation Investment's earnings presentation, Jul 27, 2021
Slide 1: ASX cover letter: Annual Results Webcast Presentation
27 July 2021 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 Annual Results Webcast Presentation Please find attached the presentat
Slide 2: Full Year Results Presentation
Full Year Results Presentation For personal use only 27 July 2021
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 Objectives – Mark Freeman • Financial Year in Summary – Andrew Porter • Portfolio – David Grace and Nga Lucas • Outlook – Mark Freeman • Questions 3
Slide 5: Our Company
Our Company For personal use only Invests in Australian and New Zealand companies – looking for quality for the long term. Largest listed investment company on the ASX at $9.1bn (also listed on NZX), 160k shareholders, full transparency from being listed, independent Board of Directors providing str
Slide 6: Investment Objectives
For personal use only Investment Objectives The Company aims to provide The Company’s primary investment goals are: shareholders with attractive investment returns through access to a growing • to pay dividends which, over time, grow stream of fully franked dividends faster than the rate of inflatio
Slide 7: Full Year Result Summary
Full Year Result Summary – 12 months to 30 June 2021 For personal use only * Assumes a shareholder can take full advantage of the franking credits. 6
Slide 8: AFIC offers a diversified portfolio of quality stocks – what we look for
AFIC offers a diversified portfolio of quality stocks – what we look for For personal use only Sustainable competitive Strong management Recurring, predictable Financial strength advantage – unique team and board earnings are preferred – strong cash flow assets producing strong and balance sheet ret
Slide 9: AFIC offers a diversified portfolio of quality stocks – what we look for continued
AFIC offers a diversified portfolio of quality stocks – what we look for continued For personal use only Businesses that can Nursery stocks Look to buy when we grow over the long – developing the see long term value term, producing preceding attributes growing dividends 8
Slide 10: Market and Selected Sector Performances
Market and Selected Sector Performances S&P/ASX 200 Index Selected Sector Performance 5 Years to 30 June 2021 Financial Year 20/21 For personal use only 9
Slide 11: Relative portfolio performance, including franking
Relative portfolio performance, including franking* – per annum returns to 30 June 2021 For personal use only AFIC portfolio returns have a lower level of volatility (beta and standard deviation) than the Index. Returns include growing/stable fully franked dividends over a 10-year period. AFIC share
Slide 12: 3-year portfolio return with less volatility than the S&P/ASX 200 Index
Over the 3-year period to 30 June 2021 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 13: Winners and losers
Winners and losers* - 12 months to 30 June 2021 For personal use only Biggest Contributors Biggest Detractors not held not held * Percentage gain/loss over the period 12
Slide 14: Major portfolio changes
Major portfolio changes Purchases Sales For personal use only 13
Slide 15: Top holdings
Top 30 holdings – 30 June 2021 Total Portfolio 64 Holdings Rank Company % of Portfolio For personal use only (excluding international portfolio) 1 Commonwealth Bank of Australia 8.8% 2 BHP Group 7.3% 3 CSL 6.9% 4 Wesfarmers 4.9% 5 Westpac Banking Corporation 4.5% 6 Macquarie Group 3.8% 7 Transurban
Slide 16: Top holdings – continued
Top 30 holdings – 30 June 2021 continued Total Portfolio 64 Holdings Rank Company % of Portfolio For personal use only (excluding international portfolio) 11 Rio Tinto 2.6% 12 Mainfreight 2.6% 13 James Hardie Industries* 2.3% 14 Telstra Corporation* 2.3% 15 Amcor 2.0% 16 Reece 1.9% 17 ARB Corporatio
Slide 17: Top holdings – continued
Top 30 holdings – 30 June 2021 continued Total Portfolio 64 Holdings Rank Company % of Portfolio For personal use only (excluding international portfolio) 21 ResMed 1.6% 22 Coles Group 1.3% 23 Seek 1.3% 24 Ramsay Health Care 1.3% 25 Carsales.com 1.3% 26 Xero 1.3% 27 Fisher & Paykel Healthcare 1.3% 2
Slide 18: Outlook
Outlook For personal use only COVID-19 Low Interest Cost Inflation and Volatility likely Companies in the rates and supply chain to increase portfolio well valuation risks disruptions – positioned: rising costs for market strength companies? ability to absorb rising costs leverage efficiencies
Slide 19: Questions
For personal use only 18 Questions
Slide 20: For personal use only
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