Australian Foundation Investment Co. Ltd. · ASX:AFI
Australian Foundation Investment — H1 FY2024 Earnings Presentation
22 slides from Australian Foundation Investment's earnings presentation, Jan 24, 2024
Slide 1: Half Yearly Results Webcast Presentation
24 January 2024 The Manager ASX Market Announcements Australian Securities Exchange Exchange Centre Level 4 20 Bridge Street Sydney NSW 2000 Electronic Lodgement For personal use only Australian Foundation Investment Company Limited Half Yearly Results Webcast Presentation Please find attached the p
Slide 2: Half-Year Results January 2024
For personal use only Half-Year Results January 2024
Slide 3: Disclaimer
Disclaimer For personal use only Australian Foundation Investment Company Limited and its subsidiary AICS (AFSL 303209), its related entities and each of its respective directors, officers and agents (together the Disclosers) have prepared the information contained in these materials in good faith.
Slide 4: Agenda
Agenda For personal use only Overview and Investment Objectives Mark Freeman Financial Results Andrew Porter Markets and the Portfolio David Grace and Nga Lucas Outlook David Grace Half-Year Results – January 2024 33 2
Slide 5: Overview and Investment Objectives
For personal use only Overview and Investment Objectives Half-Year Results – January 2024 4
Slide 6: Our Company
Our Company For personal use only Invests in Australian and New Zealand companies Largest listed investment company on the ASX, over 160k shareholders, independent Board of Directors Shareholders own the ‘management rights’ to the portfolio Management expense ratio of 0.14% with no performance fees
Slide 7: Investment Objectives
For personal use only Investment Objectives The Company aims to provide The Company’s primary investment goals are: shareholders with attractive investment returns through access to a growing • to pay dividends which, over time, grow stream of fully franked dividends faster than the rate of inflatio
Slide 8: Financial Results
For personal use only Financial Results Half-Year Results – January 2024 7
Slide 9: Interim Result Summary – Six months to December 2023
Interim Result Summary – Six months to 31 December 2023 For personal use only * Assumes a shareholder can take full advantage of the franking credits. Half-Year Results – January 2024 8
Slide 10: Share Price Relative to NTA
Share Price Relative to NTA For personal use only Half-Year Results – January 2024 9
Slide 11: Ensuring a consistent to growing dividend for shareholders
Ensuring a consistent to growing dividend for shareholders For personal use only AFIC’s franking reserve balance ensures we can pay a consistent dividend even through volatile times – full year dividends last 5 financial years Half-Year Results – January 2024 10
Slide 12: Markets and the Portfolio
For personal use only Markets and the Portfolio Half-Year Results – January 2024 11
Slide 13: Portfolio and Sector Performance to December 2023
Portfolio* and Sector Performance to 31 December 2023 For personal use only 12 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. Half-Yea
Slide 14: Short term volatility providing selective buying opportunities
Short term volatility providing selective buying opportunities 7,900 S&P ASX All Ordinaries – Price For personal use only RBA hikes 25bp 7,800 Fed hikes 25bp 7,700 RBA hikes RBA hikes 7,600 25bp 25bp 7,500 Record start to RBA hikes Surging bond the year for 25bp yields drive 7,400 ASX200, REITs mark
Slide 15: Despite current uncertainty shareholders are rewarded over the long term
Despite current uncertainty shareholders are rewarded over the long term S&P ASX All Ordinaries – Price Index For personal use only 6% 83-year CAGR Source: FactSet Half-Year Results – January 2024 14
Slide 16: Valuation in a Long Term Context
Valuation in a Long Term Context For personal use only Price to Book – S&P/ASX 200 Index Price to Sales – S&P/ASX 200 Index Average 1.9 Average 1.9 Source: FactSet Half-Year Results – January 2024 15
Slide 17: Quality Companies Find a Way to Grow
Quality Companies Find a Way to Grow Sales Growth Per Annum Since Our First Purchase For personal use only 13.5% 3.8% 12.4% 12.2% 11.1% S&P/ASX 200 10.9% 10.8% 10 Year Sales CAGR 8.8% 8.4% 6.9% 4.5% Holding Holding Holding Holding Holding Holding Holding Holding Holding Holding since since since sin
Slide 18: Portfolio Set to Perform in Most Economic Settings
Portfolio Set to Perform in Most Economic Settings For personal use only Growth Companies Stalwarts 25% 25% 33% 33% AFIC Cyclicals 24% Income 18% 24% 18% Half-Year Results – January 2024 17
Slide 19: Active Portfolio Management – Recent Transactions
Active Portfolio Management – Recent Transactions For personal use only Additions to Existing Holdings Trimmed Holdings New Purchases Complete Disposals Half-Year Results – January 2024 18
Slide 20: Outlook
For personal use only Outlook Half-Year Results – January 2024 19
Slide 21: Outlook
Outlook For personal use only The lagged effect of rising interest rates and the high cost of living are placing pressure on the consumer. Inflation is declining. Is this sustainable? Implications for interest rates. Challenging environment for companies to deliver earnings growth. We remain
Slide 22: For personal use only
For personal use only
Australian Foundation Investment Company — H1 FY2024 Earnings Presentation on 6ix