Australian Foundation Investment Co. Ltd. · ASX:AFI

Australian Foundation Investment — Shareholder Meeting (March 2003)

25 slides from Australian Foundation Investment's shareholder meeting presentation, Mar 7, 2003

  1. Slide 1: Australian Foundation Investment Company Shareholder Meeting March 2003

    Australian Foundation Investment Company Shareholder Meeting March 2003 =A australian Foundation : LAVESTMERT COM PARY

  2. Slide 2: AFIC's Investment Objectives

    AFIC’s Investment Objectives Medium to long term investment horizon Aiming to: = Grow dividends faster than inflation » Provide attractive capital growth through = Active value based stock selection = Buy and hold strategy La Australian Foundation LAVESTMERT COM PARY

  3. Slide 3: Financial Highlights - Half Year to 31 December 2002

    Financial Highlights — Half Year to 31 December 2002 Profit after tax - $50.0 m +17.5% Total Return (share price + dividend) +1.2% Total Return (net asset backing + dividend) -4.0% S&P/ASX 200 Accumulation Index Return 4.5% Earnings per share - 6.4 ¢ Up 12.3% Fully Franked Interim Dividend -5.5¢ = u

  4. Slide 4: Half Year to December

    Half Year to 31 December 2003 2002 ~—«- 2007 Profit $50.0m $42.5m $55.7m Interim Dividend _5.5¢ 5 5¢ 5 5¢ Portfolio Value $2.27bn. $2.41 bn. $2.24bn Net asset backing $3.01cp $3.28cp $2.97cD =A australian Foundation : LAVESTMERT COM PARY

  5. Slide 5: Recent Net Asset Figures & Issue Price of Securities

    Recent Net Asset Figures & Issue Price of Securities Feb 2003 June 2002 Share Price $3.01 XD $3.23 CD Net Assets $2.84 XD $3.23 CD DRP Price $3.11 $3.11 SAP Price $3.04 La Australian Foundation @ LAVESTMERT COM PARY

  6. Slide 6: AFIC Profit

    AFIC Profit $103.4m $104.2m $93.7m ae 38 os $86.4m 2). 8.0 3s $50.0m 85.7 89.9 83.4 $2.9 a 47.9 1999 2000 2001 2002 2003 (1st half) Hf Profit $m El Special Dividends $m =A Australian Foundation LAVESTMERT COM PARY

  7. Slide 7: AFIC Five Year Share Price to Net Asset Backing - Premium / Discount

    AFIC Five Year Share Price to Net Asset Backing - Premium / Discount 25.0% Sept 99 - Proposed changes to CGT announced May 01 - Budget announcement of CGT relief 15.0% 5.0% Dec-97 Dec-98 Dec-99 Dec-00 Dec-01 Dec-02 =A australian Foundation @ LAVESTMERT COM PARY

  8. Slide 8: Management Expense Ratio

    Management Expense Ratio Half-year ended 31 Dec. 2002 0.15%* Year ended 30 June 2002 0.15% Year ended 30 June 2001 0.14% * Annualised =A australian Foundation LAVESTMERT COM PARY

  9. Slide 9: Market Movements Between June and December 2002

    Market Movements Between 30 June and 31 December 2002 S&P/ASX200 Accumulation -4.5% S&P/ASX200 Industrials Acc. -5.8% 50 Leaders Accumulation - 5.2% S&P/ASX200 Banks Acc. - 10.7% S&P/ASX200 Resources Acc. +2.8% mA Australian Foundation LAVESTMERT COM PARY

  10. Slide 10: Top Contributions to performance

    Top Contributions to _ performance - 6 months to 31 Dec 2002 Rank by$m by% 1. BHP Billiton 6.2m 7% 2. James Hardie 48m 12% 3. Amcor 4.6m 5% 4. United Energy 4.5m 35% 5. Gandel Retail Trust 3.6m 16% =A australian Foundation LAVESTMERT COM PARY

  11. Slide 11: Bottom Contributions to performance

    Bottom Contributions to _ performance - 6 months to 31 Dec 2002 Rank by$m by % 1. Brambles -25.3m -47% 2. Westpac -23.3m -13% 3. CBA -21.4m -15% 4. NAB -19.8m -8% 5. Toll Holdings -12.1m -19% =A australian Foundation LAVESTMERT COM PARY

  12. Slide 12: Top Investments - Rank of Ordinary Securities

    Top 20 Investments — Rank of Ordinary Securities Rank Rank Dec. June 2002 $m 2002 $m 1 NAB 217.2 1 242.1 2 Westpac 150.7 2 178.0 3 Wesfarmers 130.5 4 133.4 4 CBA 113.3 3 138.2 5 BHP Billiton 91.0 5 91.5 La Australian Foundation LAVESTMERT COM PARY

  13. Slide 13: Top Investments - Ordinary Securities

    Top 20 Investments - Ordinary Securities Rank Rank Dec. wune 2002 $m 2002 $m 6 Amcor 83.2 7 80.8 7 ANZ 81.1 6 90.2 8 Telstra 72.5 8 75.9 9 Coles Myer 52.2 10 52.2 10 Toll Holdings 50.8 9 63.4 La Australian Foundation LAVESTMERT COM PARY

  14. Slide 14: Top Investments - Ordinary Securities

    Top 20 Investments - Ordinary Securities Rank Rank Dec. | June 2002 $m 2002 $m 11 CSR 42.3 12 39.7 12 James Hardie 40.5 13 38.6 13 WA Newspapers 37.5 14 36.9 14 Milton 34.6 - 78 15 Woolworths 31.9 15 35.5 La Australian Foundation LAVESTMERT COM PARY

  15. Slide 15: Top Investments - Ordinary Securities

    Top 20 Investments - Ordinary Securities Rank Rank Dec. | June 2002 $m 2002 $m 16 AMP 31.8 16 33.5 17 Southcorp 29.5 18 29.8 18 Fosters Group 29.4 17 30.8 19 Brambles 28.5 11 49.1 20 Woodside 26.7 - 23.9 La Australian Foundation LAVESTMERT COM PARY

  16. Slide 16: Movements in the Top Ordinary Securities since June 2002

    Movements in the Top 20 - Ordinary Securities since 30 June 2002 IN $m Rank Milton Corporation 34.6 14 Woodside Petroleum 26.7 20 OUT Previous Rank Suncorp Metway 19 St George Bank 20 A Australian Foundation LAVESTMERT COM PARY

  17. Slide 17: Major Acquisitions Since June 2002

    Major Acquisitions Since June 2002 Milton Corporation $27.1m AMP $9.5m Brambles $5.4m Woodside Petroleum $4.9m Westfield Holdings $4.2m =A australian Foundation : LAVESTMERT COM PARY

  18. Slide 18: Major Disposals Since June 2002

    Major Disposals Since June 2002 Singtel $10.5m_ (disposal) Smorgon Steel $8.6m_ (disposal) Joe White Maltings $7.6m_ (takeover) Ausdoc Group $7.1m_ (takeover) La Australian Foundation LAVESTMERT COM PARY

  19. Slide 19: AFIC Calendar Year Returns

    AFIC Calendar Year Returns Net Asset Backing + Dividends vs ASX200 Acc. Index & Net Asset Backing (10 year Compound Growth Rate =13.2%) © S&P/ASX 200 Accumulation Index (10 year Compound Growth Rate = 10.8%) 45.00% J 30.00% 1 15.00% 0.00% + -15.00% 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2

  20. Slide 20: Wesfarmers

    Wesfarmers $1.50 Mi Total Dividend (RHS) [J Earnings Per Share (RHS) Share Price (LHS) + $1.25 $1.00 $0.75 $0.50 $0.25 - $0.00 1989 2003* A Australian Foundation LAVESTMERT COM PARY

  21. Slide 21: National Australia Bank

    $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 National Australia Bank | a o o N i Total Dividend (RHS) + [2 Earnings Per Share (RHS) Share Price (LHS) | 4 N mJ o N 1991 | 1990 1993 1994 1995 1996 1997 1998 2003* LAVESTMERT COM PARY $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 =A australian Foundation

  22. Slide 22: Commonwealth Bank of Australia

    $40 $35 $30 $25 $20 $15 $10 $5 $0 Commonwealth Bank of Australia 1 n 1 Mi Total Dividend (RHS) — Earnings Per Share (RHS) — Share Price (LHS) 1992 1993 1994 1996 1997 T (\ : aE N i=] ° N 1999 003* $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 =A australian Foundation LAVESTMERT COM PARY

  23. Slide 23: Brambles Industries

    Brambles Industries $14 $0.50 Total Dividend (RHS) $12 u Earnings Per Share (RHS) $0.40 $10 + | —Share Price (LHS) $8 > - $0.30 $6 = | - $0.20 $4 - $0.10 $2.7 im a HO - $0.00 3 8 $233 8 & a a a a o oO Q i—J ei taal wt =a N N ial 8 La Australian Foundation * JBWere estimate @ INVESTMENT COMPARY

  24. Slide 24: GUD

    GUD $0.50 Mi Total Dividend (RHS) 1 [© Earnings Per Share (RHS) ; tr $0.40 — Share Price (LHS) [ | Tr $0.30 —ifr $0.20 | + $0.10 LLL —H T retreat $0.00 ~ 0 a Qo = Nn se) t wn wo ~ eo a o = N * ao eo eo a oa a a a oa a a a a Qo Oo i=) Ls) a a oa oa a a a a a a a a oa oO o o Qo wi Se | i ws ws = Ll ta

  25. Slide 25: Australian Foundation Investment Company Shareholder Meeting March 2003

    Australian Foundation Investment Company Shareholder Meeting March 2003 =A australian Foundation : LAVESTMERT COM PARY

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