Australian Foundation Investment Co. Ltd. · ASX:AFI
Australian Foundation Investment — Investor Presentation (March 2023)
23 slides from Australian Foundation Investment's investor presentation, Mar 17, 2023
Slide 1: Information Meetings – Presentation
17 March 2023 For personal use only The Manager ASX Market Announcements Australian Securities Exchange Exchange Centre Level 4 20 Bridge Street Sydney NSW 2000 Electronic Lodgement Australian Foundation Investment Company Limited Information Meetings – Presentation Dear Sir / Madam Please find atta
Slide 2: Shareholder Meeting March 2023
For personal use only Shareholder Meeting March 2023
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: Agenda
Agenda For personal use only Overview and Investment Objectives Mark Freeman Markets and the Portfolio David Grace Recent Portfolio Activity Nga Lucas Outlook Nga Lucas Shareholder Meeting – March 2023 33 2
Slide 5: Overview and Investment Objectives
For personal use only Overview and Investment Objectives Shareholder Meeting – March 2023
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: ESG Considerations are Integrated into Our Investment Framework
ESG Considerations are Integrated into Our Investment Framework For personal use only Approach to Environmental, Social and Engagement with Companies Governance (ESG) Factors • Long term sustainability of a company’s • We conduct our own evaluation of the merits business model is a key focus in our
Slide 8: Share Price Relative to NTA
Share Price Relative to NTA For personal use only Shareholder Meeting – March 2023 7
Slide 9: Markets and the Portfolio
For personal use only Markets and the Portfolio Shareholder Meeting – March 2023
Slide 10: Current Market Conditions
Current Market Conditions For personal use only Inflation remains persistent with uncertainty around cash rate settings from Central Banks. Operating environment for companies becoming more challenging. Cost of living increases challenging the outlook for consumer spending. Value is presenting in se
Slide 11: 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 Shareholder Meeting – March 2023 10
Slide 12: Portfolio and Sector Performance to February 2023
Portfolio* and Sector Performance to 28 February 2023 12 Month Sector Performance For personal use only * Assumes the full benefit of franking credits. Per annum returns. Includes dividends but not franking. Past performance is not indicative of future performance. Shareholder Meeting – March 2023 1
Slide 13: Reece: Long Term Investing
Reece: Long Term Investing For personal use only Reece Share Price vs ASX 200 2,000 20 Year CAGR Reece: 13.7% 1,500 Index: 4.5% 1,000 500 0 Reece Share Price S&P/ASX 200 Price Shareholder Meeting – March 2023 12
Slide 14: Quality Companies Find a Way to Grow
Quality Companies Find a Way to Grow Sales Growth Per Annum Since Our First Purchase 22.5% 3.2% For personal use only S&P/ASX 200 10 Year Sales CAGR 14.2% 14.1% 13.2% 10.7% 10.3% 9.7% 9.6% 7.2% 6.8% Holding Holding Holding Holding Holding Holding Holding Holding Holding Holding since since since sin
Slide 15: Recent Portfolio Activity
For personal use only Recent Portfolio Activity Shareholder Meeting – March 2023
Slide 16: Active Portfolio Management – Recent Transactions
Active Portfolio Management – Recent Transactions For personal use only Sales New Purchases Additions to Existing Holdings Complete Disposals Shareholder Meeting – March 2023 15
Slide 17: Wesfarmers
Wesfarmers For personal use only Wesfarmers is a conglomerate that operates a number of large, well known retail brands including Bunnings, Officeworks, Kmart and Target. Bunnings is one of the best retailers in the world generating very attractive shareholder returns. Bunnings is a key driver of ea
Slide 18: Auckland Airport
Auckland Airport For personal use only Auckland Airport owns a highly unique and strategic infrastructure asset. Freehold nature and large undeveloped landbank offers opportunity for long term growth. Expect post COVID international passenger recovery to drive earnings growth, currently at over 70%
Slide 19: PEXA
PEXA For personal use only A pioneer and leader in digital property settlements in Australia. Handles >80% of property transfer transactions and >90% of refinancing transactions in Australia. Has developed a deep network of practitioner firms, financial institutions, the RBA, land titles offices and
Slide 20: Outlook
For personal use only Outlook Shareholder Meeting – March 2023
Slide 21: Outlook
Outlook For personal use only The effects of inflation and high living costs are placing pressure on parts of the economy. Market valuations are slightly above long term averages with some downside risk. We remain focused on companies well positioned to create long term shareholder value. The portfo
Slide 22: We remain confident about the quality of AFIC's largest holdings
For personal use only We remain confident about the quality of AFIC’s largest holdings Rank Company % of Portfolio Rank Company % of Portfolio 1 Commonwealth Bank of Australia 9.0% 11 Woodside Energy Group* 2.4% 2 BHP Group 8.5% 12 Telstra Group 2.3% 3 CSL 8.1% 13 Mainfreight 2.3% 4 Macquarie Group
Slide 23: For personal use only
For personal use only
Australian Foundation Investment Company — Investor Presentation (March 2023) on 6ix