Australian Foundation Investment Co. Ltd. · ASX:AFI
Australian Foundation Investment — H1 2025 Earnings Presentation
23 slides from Australian Foundation Investment's earnings presentation, January 2025
Slide 1: Half Year Results January 2025
Half Year Results January 2025
Slide 2: Disclaimer
Disclaimer 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 faith. However, no warran
Slide 3: Agenda
Agenda 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 4: Overview and Investment Objectives
Overview and Investment Objectives Full Year Results
Slide 5: Our Company
Our Company 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 performance fees Long term inve
Slide 6: Investment Objectives
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 7: Attractive Total Returns Over the Long-term
Attractive Total Returns Over the Long-term AFIC NTA vs S&P ASX 200 Accumulation Index $10k in AFIC $186k $10k in the Index $150k Excludes the benefit of franking. Half Year Briefing / January 2025 7
Slide 8: Financial Results
Financial Results Half Year Briefing / January 2025
Slide 9: Financial Half Year in Summary
Financial Half Year in Summary * Assumes an investor can take full advantage of the franking credits. Half Year Briefing / January 2025 9
Slide 10: 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 through volatile times – full year dividends last six financial years. Half Year Briefing / January 2025 10
Slide 11: Share Price Relative to NTA
Share Price Relative to NTA 31 December 2024 NTA: $8.24 Share price: $7.41 Half Year Briefing / January 2025 11
Slide 12: Markets and the Portfolio
Markets and the Portfolio Half Year Briefing / January 2025
Slide 13: Portfolio and Sector Performance to December 2024
Portfolio* and Sector Performance to 31 December 2024 6 Month Sector Performance * 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 Year Briefing / January
Slide 14: Portfolio Set to Perform in Most Economic Settings
Portfolio Set to Perform in Most Economic Settings Growth Companies Stalwarts 23% 35% AFIC Cyclicals 26% Income 16% Portfolio at 31 December 2024, excludes cash. Half Year Briefing / January 2025 14
Slide 15: Quality Companies Find a Way to Grow
Quality Companies Find a Way to Grow Sales Growth Per Annum Since Our First Purchase 17.5% 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 since since since since 19
Slide 16: 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 Source: FactSet Half Year Briefing / January 2025 16
Slide 17: Recent Portfolio Activity
Recent Portfolio Activity Half Year Briefing / January 2025
Slide 18: Active Portfolio Management – Recent Transactions
Active Portfolio Management – Recent Transactions Additions to Existing Holdings Trimmed Holdings New Purchases Complete Disposals Half Year Briefing / January 2025 18
Slide 19: Goodman Group
Goodman Group EPS vs Share Price Global Power Bank: 5.0 GW 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 industrial property an
Slide 20: Amcor
Amcor AMC US¢ EPS 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 delivering margin imp
Slide 21: Outlook
Outlook Half Year Briefing / January 2025
Slide 22: Outlook
Outlook 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. Maintaining a balanced portfol
Slide 23: Australian Foundation Investment Company
USTRALIAN ‘OUNDATION INVESTMENT COMPANY A F
Australian Foundation Investment Company — H1 2025 Earnings Presentation on 6ix