Australian Foundation Investment Co. Ltd. · ASX:AFI

Australian Foundation Investment — Investor Presentation (February 2003)

21 slides from Australian Foundation Investment's investor presentation, Feb 24, 2003

  1. Slide 1: Australian Foundation Investment Company Shareholder Meeting

    Australian Foundation Investment Company Shareholder Meeting February 2003 a Australian Foundation HAVES THER T COM RAR Y

  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 Australian Foundation HAVES THER T COM RAR Y

  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 417.5% Total Return (share price + dividend) | +1.2% Total Return (net asset backing + dividend) -4.0% $&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 Profit $50.0m $42.5m $55.7m Interim Dividend 5.5¢ 55¢ -5.5¢ Portfolio Value $2.27bn. $2.41bn. $2 24bn Net asset backing $3.01cp $3.28cp $2.97cp a Australian Foundation HAVES THER T COM RAR Y

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

    Recent Net Asset Figures & Issue Price of Securities Jan 2003 June 2002 Net Assets $3.01 CD $3.23 CD DRP Price $3.11 $3.11 SAP Price $3.04 rn Australian Foundation HAVES THER T COM RAR Y

  6. Slide 6: AFIC Profit

    AFIC Profit $103.4m $93.7m | iss $86.4m 8.0 3 3.5 $50.0m 85.7 39.9 82.9 21 47.9 1999 2000 2001 2002 2003 (1st half) Mf Profit $m & Special Dividends $m =A australian Foundation HAVES THER T COM RAR Y

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

    ive Year Share Price to AFIC F Net Asset Backing - Premium / Discount 25.0% - Proposed changes to CGT announced Sept 99 — ——o Budget announcement of CGT relief May 01 15.0% a uieeenee ss SS S So 6 Pal 7 +25.0% Dec-98 Dec-99 Dec-00 Dec-01 Dec. Dec-97 1On =A australian Foundat HAVES THER T COM RAR Y

  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 HAVES THER T COM RAR Y

  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% Australian Foundation HAVES THER T COM RAR Y

  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 T% 2. James Hardie 4.8m 12% 3. Amcor 4.6m 5% 4. United Energy 4.5m 35% 5. Gandel Retail Trust 3.6m 16% =A australian Foundation HAVES THER T COM RAR Y

  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 HAVES THER T COM RAR Y

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

    Top 20 Investments — Rank of Ordinary Securities Rank Rank Dec. June 2002 sm 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 =A australian Foundation HAVES THER T COM RAR Y

  13. Slide 13: Top Investments - Ordinary Securities

    Top 20 Investments - Ordinary Securities Rank Rank Dec. June 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 =A australian Foundation HAVES THER T COM RAR Y

  14. Slide 14: Top Investments - Ordinary Securities

    Top 20 Investments - Ordinary Securities Rank Rank Dec. wune 2002 $m 2002 $m 1 CSR 42.3 12 39.7 2 James Hardie 40.5 13 38.6 13 WA Newspapers 37.5 14 36.9 4 Milton 34.6 - 7.8 5 Woolworths 31.9 15 35.5 =A australian Foundation HAVES THER T COM RAR Y

  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 =A australian Foundation HAVES THER T COM RAR Y

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

    Movements in the Top 20 - Ordinary Securities since 30 June 2002 IN sm Rank Milton Corporation 34.6 14 _ Woodside Petroleum 26.7 20 OUT Previous Rank Suncorp Metway 19 ~ St George Bank 20 =A australian Foundation HAVES THER T COM RAR Y

  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 Hy ,, Australian Foundation HAVES THER T COM RAR Y

  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) =A australian Foundation HAVES THER T COM RAR Y

  19. Slide 19: Wesfarmers

    Wesfarmers i Total Dividend (RHS) Earnings Per Share (RHS) Share Price (LHS) 2003* $1.50 $1.25 $1.00 $0.75 $0.50 $0.25 $0.00 Australian Foundation HAVES THER T COM RAR Y

  20. Slide 20: National Australia Bank

    $45 $40 $35 $30 $25 $20 National Australia Bank Ml Total Dividend (RHS) Earnings Per Share (RHS) Share Price (LHS) 1989 1991 1992 1993 1994 1995 1996 TT T T — ~ ao a o N * a oa a o Co oO a a a o oa o Lal Lal = nN N o nN HAVES THER T COM RAR Y $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 ,, Australian F

  21. Slide 21: Commonwealth Bank of Australia

    Commonwealth Bank of Australia $40 $2.50 $35 + § Total Dividend (RHS) © Earnings Per Share (RHS) AS; $2.00 $30 7 / — Share Price (LHS) $25 + r $1.50 $20 5 $15 | r $1.00 $10 - / t $0.50 $5 4 $0 q a es ee oe +l $0.00 Cal bal bal i i i Dal <a N Nn nN i=] a Australian Foundation HAVES THER T COM RAR Y

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