Australian Foundation Investment Co. Ltd. · ASX:AFI
Australian Foundation Investment — Investor Presentation (March 2004)
27 slides from Australian Foundation Investment's investor presentation, Mar 19, 2004
Slide 1: 2004 Shareholder Information Meetings Chairman's Presentation
m4 Australian Foundation - INVESTMENT COMPANY 19 March 2004 Australian Stock Exchange Limited Company Announcements Office Exchange Centre 20 Bridge Street Sydney NSW 2000 Australian Foundation Investment Company Limited 2004 Shareholder Information Meetings Chairman’s Presentation Australian Founda
Slide 2: A sound track record
A sound track record mA Australian Foundation THVESTMENT COMPANY
Slide 3: Financial Highlights — Six Months to December
Financial Highlights — Six Months to 31 December Management Expense Ratio 2002 2003 Profit After Tax $50.0m | $59.3m Earnings Per Share 6.4¢ 7.0 ¢ Total dividends per share (inc special) 5.5¢ 5.5 ¢ Special dividends per share 1.0¢ 1.0¢ Net Asset Backing (cum dividend) $3.01 $3.28 Total Return (net a
Slide 4: Income Contribution of Trading Portfolio
Income Contribution of Trading Portfolio $ Million poe Pbbigidi Contribution to Total Income 22% 23% 18% 25% 11% 16% 5% 1% -2% -16% 8%
Slide 5: Present Position (end February)
Present Position (end February) Level of Cash 123.8 million Trading Portfolio as % of Total Portfolio 5.87%
Slide 6: All Ordinaries Performance — Month
All Ordinaries Performance — 12 Month
Slide 7: All Ordinaries Performance — Year
All Ordinaries Performance — 10 Year
Slide 8: Australian Dividend Yield
Australian Dividend Yield 1973 1976 | 1979 © 1982 — 1985 | 1988 | 1991 | 1994 > 1997 | 2000 — 2003 ©
Slide 9: Year Performance of Major Indices
2 Year Performance of Major Indices (base is 100 in December 2001) ASX200 Resources Accum 130 5 <4/ Combined Small Ords & Midcap Accum 120; ASX200 Banks Accum 110 = 100 90 = ASX200 Industrials Accum Dec-01 Jun-02 Dec-02 Jun-03 Dec-03
Slide 10: Market movements between June 2003 and December 2003
Market movements between 30 June 2003 and 31 December 2003 » Media Accumulation +11.3% » Telecommunications Accum +2.0% = Building Materials Accum - 0.8% » Infrastructure & Utilities Accum +21.9% =» Resources +39.6% » Banks Accumulation +0.5%
Slide 11: Portfolio Management Performance — % Per Year
Portfolio Management Performance — % Per Year to 31 December 18.00% 15.00% 12.00% 9.00% 6.00% 3.00% 0.00% 1 year 3 years 5 years 10 years mM AFIC net asset per share growth plus dividends mi CPI @ S&P/ASX 200 Accumulation Index
Slide 12: Investment by Sector
Investment by Sector BM Neterels 19.20% 18.108 @ Industias 42% 18.87% : Consumer discretionary 6.93%. 6.32% a ‘Consumer Staples | — 9.27% | 9.60% Barks 29.43% 90.25% B Otherfnancis 12.27% 12.18% 5 “Telecommunications _— 3.70% 3 3.19% 2 Other: Healthcare, 2.35% 2.80% info technology, Utilities
Slide 13: Major Acquisitions (above $10m)
Major Acquisitions (above $10m) Acquisitions $million Commonwealth Bank 65.3 Woolworths 17.5 Telstra 14.6 AGL 12.8 Rio Tinto 12.7 National Australia Bank 12.5 Centro 11.7
Slide 14: Major Disposals (above $10m)
Major Disposals (above $10m) Disposals $million United Energy 18.6 (compulsory acquisition) Bank of WA 14.3 (compulsory acquisition)
Slide 15: Top Ordinary Securities — December 2003
Top 20 Ordinary Securities — 31 December 2003 Shares NAB CBA Westpac Wesfarmers BHP Billiton Dec 2003 June 2003 Rank $m Rank $m 1 232.3 1 229.1 2 206.7 4 124.0 3 191.9 2 178.1 4 130.0 3 124.1 5 114.4 7 78.7
Slide 16: Top Ordinary Securities — December 2003
Top 20 Ordinary Securities — 31 December 2003 Shares Dec 2003 June 2003 Rank $m Rank $m Telstra 6 102.2 8 74.9 ANZ Bank 7 101.8 5 87.0 Amcor 8 81.1 6 79.7 Toll Holdings 9 66.0 10 56.6 Coles Myer 10 61.9 9 57.9
Slide 17: Top Ordinary Securities — December 2003
Top 20 Ordinary Securities — 31 December 2003 Shares Woolworths Alumina WA News AGL Rinker Dec 2003 Rank $m 11 56.9 12 53.3 13 48.0 14 41.7 15 40.9 June 2003 Rank $m 14 37.6 22 25.4 11 42.9 21 27.1 15 34.4
Slide 18: Top Ordinary Securities — December 2003
Top 20 Ordinary Securities — 31 December 2003 Shares Dec 2003 June 2003 Rank $m Rank $m Milton 16 39.5 13 38.4 James Hardie 17 38.9 12 41.8 Woodside 18 33.0 16 31.4 Brambles 19 32.2 18 27.9 Rio Tinto 20 31.6 43 13.1
Slide 19: Ins and Outs of the Top
Ins and Outs of the Top 20 AGL Alumina Rio Tinto Outs: Foster’s Group Suncorp Metway St George Bank
Slide 20: Portfolio Attribution Analysis — Top 5 Contributors
Se ge Half Year Ended 31 December 2003 Portfolio Attribution Analysis Points Total (%) All Ordinaries Increase 307 Top 5 Contributors BHP Billiton + 59.8 + 19.5% News Corporation + 19.1 + 6.2% (ordinary and preferred) Rio Tinto + 17.9 + 5.8% Alumina + 12.7 +4.1% Telstra + 12.1 + 3.9%
Slide 21: Portfolio Attribution Analysis — Bottom 5 Contributors
Se ge Half Year Ended 31 December 2003 Portfolio Attribution Analysis Points Total (%) All Ordinaries Increase 307 Bottom 5 Contributors National Australia Bank - 24.3 - 10.5% St George Bank -4.8 - 1.6% Westfield America - 3.6 - 1.2% Woolworths - 3.3 - 1.1% Cochlear - 2.6 -0.8%
Slide 22: Share Price to Net Asset Backing - Premium/Discount
Share Price to Net Asset Backing - Premium/Discount Feb-94 Feb-96 Feb-98 Feb-00 Feb-02 Feb-04
Slide 23: All Industrials Prospective PER - Rolling
All Industrials Prospective PER - Rolling 12 Month Forward Earnings PER 21 1 M A 17 4 High: 17.2 (+1 Std Dev) if aaa * " [Woh ee hoe ft ys vow 140 Te v~ ; we Ft Low: 10.8 (-1 Std Dev) Vv DM, NAA W VV 7 Feb-88 Feb-89 Feb-90 Feb-91 Feb-92 Feb-93 Feb-94 Feb-95 Feb-96 Feb-97 Feb-98 Feb-99 Feb-00 Feb-01
Slide 24: Banks vs. ASX Ex Banks Performance
Banks vs. ASX 300 Ex Banks Performance (Accumulated) Index 180 150 140 130 120 Hl 110 4 . Mh! 90 Jun-00 Aug-00 Oct-00 Dec-00 Mar-01 May-01 Jul-01 Sep-01 Dec-01 Feb-02 Apr-02 Jul-02 Sep-02 Nov-02 Jan-03 Apr-03 Jun-03 Aug-03 Oct-03 Jan-04 Source: IRESS, GSIBW Quan ive Research
Slide 25: Comparison of Operating Expense Ratios
Comparison of Operating Expense Ratios = AFIC 0.17% = Superannuation Funds 0.80% =» * Managed Investments 1.80% * In Retail Active Domestic Equity Funds
Slide 26: AFIC Expense Rate
AFIC Expense Rate (% of average portfolio value) Gross Net* . 1998 / 1999 0.15% 0.13% . 1999 / 2000 0.13% 0.10% . 2000 / 2001 0.14% 0.12% 7 2001 / 2002 0.15% 0.12% . 2002 / 2003 0.16% 0.13% . 2003/2004 (1st half) 0.19% 0.17% * After recoupment of fees from Djerriwarrh, Mirrabooka and AMCIL
Slide 27: A sound track record
A sound track record @4 Australian Foundation INVESTMENT COMPANY Ci
Australian Foundation Investment Company — Investor Presentation (March 2004) on 6ix