Australian Foundation Investment Co. Ltd. · ASX:AFI
Australian Foundation Investment — Investor Presentation (March 2013)
37 slides from Australian Foundation Investment's investor presentation, Mar 6, 2013
Slide 1: Information Meetings – Presentation
For personal use only 6 March 2013 The Manager ASX Market Announcements Australian Securities Exchange Exchange Centre Level 4 20 Bridge Street Sydney NSW 2000 Electronic Lodgement Australian Foundation Investment Company Limited Information Meetings – Presentation Dear Sir / Madam Please find attac
Slide 2: Half-Year Meeting 2013
For personal use only Half-Year Meeting 2013
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 1. Half-year results 2. Market and sector snapshot 3. Portfolio highlights 4. Looking ahead 5. Dividend Substitution Share Plan Half-Year Meeting 2013
Slide 5: 1. Half-year results
For personal use only 1. Half-year results Half-Year Meeting 2013
Slide 6: Summary of half-year results to December 2012
Summary of half-year results to 31 December 2012 For personal use only Half-Year Meeting 2013
Slide 7: Earnings and dividends per share
Earnings and dividends per share Dividends maintained through the GFC For personal use only Half-Year Meeting 2013
Slide 8: Portfolio & share price performance to January 2013
Portfolio & share price performance to 31 January 2013 Portfolio has outperformed over the short and long term. For personal use only Half-Year Meeting 2013
Slide 9: Share price moved to a premium of 4%
Share price moved to a premium of 4% For personal use only Half-Year Meeting 2013
Slide 10: 2. Market and sector snapshot
For personal use only 2. Market and sector snapshot Half-Year Meeting 2013
Slide 11: S&P/ASX Price Index
S&P/ASX 200 Price Index Demand for yield has been rising in the last year. For personal use only Half-Year Meeting 2013
Slide 12: Where the Convertible Note funds were invested
Where the Convertible Note funds were invested in the six months following the issue For personal use only Financials/market related: AMP, ASX, IRESS Healthcare: CSL, Ramsay Healthcare, Ansell, Sonic Healthcare Infrastructure: Hastings Diversified Utilities Fund, Sydney Airport, Transurban, Australi
Slide 13: Key Trends - Households have been building deposits
Key Trends - Households have been building deposits ($b) For personal use only Half-Year Meeting 2013
Slide 14: Key Trends
Key Trends For personal use only Half-Year Meeting 2013
Slide 15: Sectors returns over months to December 2012
Sectors returns over 12 months to 31 December 2012 For personal use only Half-Year Meeting 2013
Slide 16: 3. Portfolio highlights
For personal use only 3. Portfolio highlights Half-Year Meeting 2013
Slide 17: Major purchases July to December 2012
Major purchases 1 July to 31 December 2012 For personal use only $60.5m $13.5m $13.2m $8.9m $8.6m $8.1m $5.8m $5.8m $5.4m Half-Year Meeting 2013
Slide 18: Major sales July to December 2012
Major sales 1 July to 31 December 2012 For personal use only Hastings Diversified Metcash Utilities Fund $83.6m $12.4m Peet Seven West Media $6.1m $5.2m Half-Year Meeting 2013
Slide 19: Top at January 2013 – Banks
Top 25 at 31 January 2013 – Banks For personal use only Half-Year Meeting 2013
Slide 20: Top at January 2013 – Resources
Top 25 at 31 January 2013 – Resources For personal use only Half-Year Meeting 2013
Slide 21: Top at January 2013 – Energy
Top 25 at 31 January 2013 – Energy For personal use only Half-Year Meeting 2013
Slide 22: Top at January 2013 – Mining Services
Top 25 at 31 January 2013 – Mining Services For personal use only Half-Year Meeting 2013
Slide 23: Top at January 2013 – Industrial
Top 25 at 31 January 2013 – Industrial For personal use only Half-Year Meeting 2013
Slide 24: Top at January 2013 – Non Bank Financial Services
Top 25 at 31 January 2013 – Non Bank Financial Services For personal use only Half-Year Meeting 2013
Slide 25: Top at January 2013 – Retail
Top 25 at 31 January 2013 – Retail For personal use only Half-Year Meeting 2013
Slide 26: Top at January 2013 – Infrastructure
Top 25 at 31 January 2013 – Infrastructure For personal use only Half-Year Meeting 2013
Slide 27: Recent reporting season feedback from companies
Recent reporting season feedback from companies For personal use only “Subdued conditions” “Cost pressures” “Cautious earnings outlook” “Revenue growth challenge” “High Australian dollar” “Industrial relations climate” Half-Year Meeting 2013
Slide 28: 4. Looking ahead
For personal use only 4. Looking ahead Half-Year Meeting 2013
Slide 29: Key factors
Key factors For personal use only • Central bank policies • Global growth low, government debt high • Earnings outlook subdued • Market consolidation likely AFIC portfolio well-positioned and in good shape Half-Year Meeting 2013
Slide 30: Annual consensus EPS growth
Annual consensus EPS growth For personal use only Half-Year Meeting 2013
Slide 31: All ordinaries price index – long term performance
All ordinaries price index – long term performance For personal use only Half-Year Meeting 2013
Slide 32: Longer term issues for investors to consider
Longer term issues for investors to consider For personal use only Half-Year Meeting 2013
Slide 33: 5. Dividend Substitution Share Plan
For personal use only 5. Dividend Substitution Share Plan Half-Year Meeting 2013
Slide 34: AFIC's Dividend Substitution Share Plan (DSSP)
AFIC’s Dividend Substitution Share Plan (DSSP) For personal use only Important Notice AFIC does not give taxation advice, and the following slides should not be construed as such. The taxation laws are different in each country (including New Zealand) and shareholders need to be aware of the differe
Slide 35: Dividend Substitution Share Plan (DSSP) – What is it?
Dividend Substitution Share Plan (DSSP) What is it? For personal use only • Instead of a dividend, shareholders can elect to receive substitute shares. • The price under the DSSP will be the same as for the DRP. • No income tax is payable on DSSP shares at the time of receipt (for Australian residen
Slide 36: DSSP – Who might it be suitable for?
Dividend Substitution Share Plan (DSSP) Who might it be suitable for? For personal use only Those shareholders who: • Wish to increase their shareholding rather than take cash. • Are Australian tax payers who wish to defer any tax payable until the AFIC shares are sold. • Are on a high marginal tax
Slide 37: Australian Foundation Investment Company
AUSTRALIAN FOUNDATION INVESTMENT COMPANY
Australian Foundation Investment Company — Investor Presentation (March 2013) on 6ix