Australian Foundation Investment Co. Ltd. · ASX:AFI
Australian Foundation Investment — Investor Presentation (March 2008)
20 slides from Australian Foundation Investment's investor presentation, Mar 11, 2008
Slide 1: ASX cover letter for shareholder meetings presentation
For personal use only 11 March 2008 The Manager Company Announcements Office Australian Securities Exchange Limited Exchange Centre Level 4 20 Bridge Street Sydney NSW 2000 Electronic Lodgement Australian Foundation Investment Company Limited Shareholder Information Meetings Dear Sir or Madam Please
Slide 2: Australian Foundation Investment Company Shareholder Meetings March/April 2008
For personal use only Australian Foundation Investment Company Shareholder Meetings March/April 2008 Presentation
Slide 3: All Ordinaries Price Index - Monthly
For personal use only Value Ju n- 0 2500 3000 3500 4000 4500 5000 5500 6000 6500 7000 Se 2 p- 0 D 2 ec -0 M 2 ar -0 Ju 3 n- 0 Se 3 p- 0 D 3 ec -0 M 3 ar -0 Ju 4 n- 0 Se 4 p- 0 D 4 ec -0 M 4 ar -0 Ju 5 n- Date 0 Se 5 p- 0 increase of 1.7% D 5 ec -0 M 5 ar -0 Ju 6 n- 0 Se 6 p- 1 July 06 to 31 December
Slide 4: All Ordinaries Price Index – A Long Term View
All Ordinaries Price Index – A Long Term View For personal use only
Slide 5: AFIC’s Investment Structure – February 2008
AFIC’s Investment Structure – For personal use only 29 February 2008 Long Term Investment portfolio: A$4.9 billion Approximately 100 securities Focus on S&P/ASX 200 Trading portfolio: Up to 10% of total portfolio - A$152 million or 3.0% Short term positions Options writing strategies Fixed rate borr
Slide 6: Financial Highlights - Half Year to December 2007
Financial Highlights - Half Year to 31 December 2007 For personal use only 2007 2006 Change Operating Profit After Tax $110.7m $ 106.8m +3.7% AIFRS Reported Profit After Tax* $326.1m $114.4m Large Operating Profit Per Share 11.5c 11.4c +0.7% Interim dividends per share 8.0c 8.0c - * Includes realise
Slide 7: AFIC Share Price Relative to Net Asset Backing
AFIC Share Price Relative to Net Asset Backing For personal use only 20% Premium 15% 10% 5% 0% -5% -10% -15% -20% Discount Feb-98 Feb-00 Feb-02 Feb-04 Feb-06 Feb-08
Slide 8: Top Ordinary Securities – February 2008
Top 25 Ordinary Securities – 29 February 2008 For personal use only % of $million portfolio * 1 BHP Billiton 566.0 11.2% * 2 Rio Tinto 344.8 6.8% * 3 Commonwealth Bank of Australia 333.5 6.6% * 4 Wesfarmers (a) 302.6 6.0% 5 Westpac Banking Corporation 288.7 5.7% * 6 Telstra Corporation (b) 214.7 4.2
Slide 9: Top Ordinary Securities – February 2008 (cont.)
Top 25 Ordinary Securities – 29 February 2008 For personal use only con’t. % of $million portfolio 11 Incitec Pivot 95.9 1.9% 12 West Australian Newspapers Holdings 89.7 1.8% * 13 Alumina 85.8 1.7% * 14 Toll Holdings 84.2 1.7% * 15 AMP 76.7 1.5% * 16 Brambles 75.8 1.5% * 17 Amcor 73.6 1.5% * 18 West
Slide 10: Top Ordinary Securities – February 2008 (cont.)
Top 25 Ordinary Securities – 29 February 2008 For personal use only con’t. % of $million portfolio 21 QBE Insurance Group 63.6 1.3% * 22 Santos 61.1 1.2% 23 St George Bank 60.5 1.2% 24 Milton Corporation 58.2 1.1% 25 Transurban Group 56.7 1.1% Total 3,765.2 As % of Total Portfolio Value 74.3% (exclu
Slide 11: Major Acquisitions Investment Portfolio
Major Acquisitions Investment Portfolio For personal use only Six Months to 31 December 2007 $million Notes Wesfarmers 65.2 Takeover of Coles Group Wesfarmers PPS 55.6 Takeover of Coles Group Equity Trustees 9.8 Campbell Brothers 9.7 OneSteel 9.5 Takeover of Smorgon Steel
Slide 12: Major Disposals (above $10m) Investment Portfolio
Major Disposals (above $10m) Investment Portfolio For personal use only Six Months to 31 December 2007 $million Notes Coles Group 149.9 Takeover by Wesfarmers Rinker Group 114.2 Due to takeover by CEMEX Alinta 37.0 Sold prior to takeover Centro Properties 18.7 Southern Cross Broadcasting 18.6 Takeov
Slide 13: Major Acquisitions in the Investment Portfolio since 1 January 2008
Major Major Acquisitions Acquisitions in in the the Investment Investment Portfolio Portfolio For personal use only Since (above 31since $1m) December 20072008 1 January $million QBE Insurance Group 7.2 National Australia Bank 6.7 Bradken 3.7 BHP Billiton 3.4 Commonwealth Bank 3.1 Westpac Banking Co
Slide 14: Major Sales in the Investment Portfolio since 1 January 2008
Major Sales in the Investment Portfolio For personal use only (above $1m) since 1 January 2008 $million Asciano Group 21.2
Slide 15: Comparative Price Index Returns Since July 2007
Comparative Price Index Returns For personal use only Since 1 July 2007 30% 20% Resources 10% 0% Ju No Ja Au Se O De Fe ct l- 0 n- b- p- v- c- g- -10% -0 08 07 07 07 08 7 07 7 S&P/ASX 200 -20% Industrials Financials -30%
Slide 16: Comparative Price Index Returns Since January 2008
Comparative Price Index Returns For personal use only Since 1 January 2008 5% Resources 0% Ja Fe -5% n- b- 08 08 -10% S&P/ASX 200 -15% Industrials -20% Financials -25%
Slide 17: Sector Valuations
For personal use only (* ! " # + # , ! $ % & % % -, " $ ' ( +, ( Sector Valuations ) + . & ,/ $ "$ %% 0 " ) 1 ""
Slide 18: Sector Valuations
For personal use only ') % ), ) 5 2) +, 2 ( )% # 3 4 , , 6# 7+ # '2 + "% ! +"+ "'% - + %( % 2 / 1 ) ' " Sector Valuations ( % %$# !" #/ & + '2# " " ", "$% "%
Slide 19: Outlook
Outlook For personal use only Equity markets clearly very nervous about impact of US slowdown Inflationary pressures has the RBA aggressively increasing interest rates Reporting season generally in line with expectations but outlook comments remain cautious Interest coverage/debt maturity all import
Slide 20: Australian Foundation Investment Company Shareholder Meetings March/April 2008
For personal use only Australian Foundation Investment Company Shareholder Meetings March/April 2008
Australian Foundation Investment Company — Investor Presentation (March 2008) on 6ix