Australian Foundation Investment Co. Ltd. · ASX:AFI
Australian Foundation Investment — H1 FY2025 Earnings Presentation
24 slides from Australian Foundation Investment's earnings presentation, Jan 22, 2025
Slide 1: Half Yearly Results Webcast Presentation (ASX cover letter)
22 January 2025 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 Half Yearly Results Webcast Presentation Please find attached the p
Slide 2: Half Year Results January 2025
For personal use only Half Year Results January 2025
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 Winston Chong Outlook David Grace Half Year Briefing / January 2025 2 3
Slide 5: Overview and Investment Objectives
For personal use only Overview and Investment Objectives Full Year Results
Slide 6: 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% (annualised) with no performan
Slide 7: 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. Half Year Briefing / January 2025 6
Slide 8: Attractive Total Returns Over the Long-term
Attractive Total Returns Over the Long-term AFIC NTA vs S&P ASX 200 Accumulation Index For personal use only $10k in AFIC $186k $10k in the Index $150k Excludes the benefit of franking. Half Year Briefing / January 2025 7
Slide 9: Financial Results
For personal use only Financial Results Half Year Briefing / January 2025
Slide 10: Financial Half Year in Summary
Financial Half Year in Summary For personal use only * Assumes an investor can take full advantage of the franking credits. Half Year Briefing / January 2025 9
Slide 11: 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. Half Year Briefing / January 2025 10
Slide 12: Share Price Relative to NTA
Share Price Relative to NTA For personal use only 31 December 2024 NTA: $8.24 Share price: $7.41 Half Year Briefing / January 2025 11
Slide 13: Markets and the Portfolio
For personal use only Markets and the Portfolio Half Year Briefing / January 2025
Slide 14: Portfolio and Sector Performance to December 2024
Portfolio* and Sector Performance to 31 December 2024 6 Month Sector Performance For personal use only * Assumes the full benefit of franking credits. Per annum returns other than for six months. Includes dividends but not franking. Past performance is not indicative of future performance. 13 Half Y
Slide 15: Portfolio Set to Perform in Most Economic Settings
Portfolio Set to Perform in Most Economic Settings For personal use only Growth Companies Stalwarts 23% 35% AFIC Cyclicals 26% Income 16% Portfolio at 31 December 2024, excludes cash. Half Year Briefing / January 2025 14
Slide 16: Quality Companies Find a Way to Grow
Quality Companies Find a Way to Grow Sales Growth Per Annum Since Our First Purchase 17.5% For personal use only 15.6% 3.6% S&P/ASX 200 12.2% 11.9% 10 Year Sales CAGR 10.8% 10.4% 9.7% 8.3% 6.9% Holding Holding Holding Holding Holding Holding Holding Holding Holding since since since since since sinc
Slide 17: Market Valuation in a Long Term Context
Market Valuation in a Long Term Context ASX 200 Firms Trade at an Average Forward PE of 17.6x, which is 20% Above the 20-yr Average For personal use only Source: FactSet Half Year Briefing / January 2025 16
Slide 18: Recent Portfolio Activity
For personal use only Recent Portfolio Activity Half Year Briefing / January 2025
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 Half Year Briefing / January 2025 18
Slide 20: Goodman Group
Goodman Group EPS vs Share Price Global Power Bank: 5.0 GW For personal use only Continental Japan North Europe/UK 1.3 GW America 2.0 GW Hong Kong 0.2 GW 0.5 GW Australia & New Zealand 1.0 GW Source: Diogenes Research Source: Goodman Group FY24 Presentation • Global property company specialising in
Slide 21: Amcor
Amcor AMC US¢ EPS For personal use only 90 Bemis 80 acquisition Alcan 70 acquisition 60 Berry 50 acquisition (announced 40 Nov-24) 30 20 10 0 Source: Diogenes Research • Global packaging company with market leading positions exposed to consumer staples. • Capable management team with track record of
Slide 22: Outlook
For personal use only Outlook Half Year Briefing / January 2025
Slide 23: Outlook
Outlook For personal use only The valuation of the market is high at a time when earnings growth appears likely to slow. Heightened geopolitical tensions coupled with an election cycle in many developed markets may lead to a wide dispersion of potential investment outcomes in the near term. Maintain
Slide 24: For personal use only
USTRALIAN ‘OUNDATION INVESTMENT COMPANY A F
Australian Foundation Investment Company — H1 FY2025 Earnings Presentation on 6ix