Australian Foundation Investment Co. Ltd. · ASX:AFI
Australian Foundation Investment — Shareholder Meeting (October 2007)
11 slides from Australian Foundation Investment's shareholder meeting presentation, Oct 2, 2007
Slide 1: 2007 Annual General Meeting Chairman's Presentation
A Australian Foundation INVESTMENT COMPANY Australian Foundation Investment Company Limited ABN 56 004 147 120 Level 21, 101 Coilins Street Melbourne Victoria 3000 GPO Box 2114 Melbourne Victoria 3001 Telephone (03) 9650 9911 2 October 2007 Facsimile (03) 9650 9100 Email invest@afi.com.au Website ww
Slide 2: All Ordinaries Price Index - Monthly
For personal use only Australian Foundation Investment Company Annual General Meeting 2 October 2007 Presentation All Ordinaries Price Index - Monthly 6500 Index was 6248 at 31 August 2007 6000 5500 1 July 06 to 30 June 07 increase of 25.4% 5000 Value 4500 4000 3500 3000 2500 D 2 M 2 D 3 M 3 D 4 M 4
Slide 3: AFIC's Investment Structure and Operating Profit Analysis
For personal use only AFIC’s Investment Structure – 31 August 2007 Long Term Investment portfolio: A$5.5 billion Approximately 100 securities Focus on S&P/ASX 200 Trading portfolio: Up to 10% of total portfolio - A$154 million or 2.7% Short term positions Options writing strategies Fixed rate borrow
Slide 4: AIFRS Profit Analysis and Share Price Relative to Net Asset Backing
AIFRS Profit Analysis For personal use only –2007 Full Year vs. 2006 Full Year Major Contributor $259.3m 260 + $37.5m in realised gains largely from 220 $214.1m takeover of Promina $224.4m Group and merger of 180 Rural Press and Fairfax Media $ million $179.6m 140 100 60 20 2006 2007 AIFRS AIFRS Pro
Slide 5: Top Ordinary Securities
Top 25 Ordinary Securities – 31 August 2007 For personal use only % of $million portfolio * 1 BHP Billiton 550.6 9.8% * 2 Commonwealth Bank of Australia 433.4 7.7% 3 Westpac Banking Corporation 333.5 5.9% * 4 National Australia Bank 275.5 4.9% * 5 Rio Tinto 240.2 4.3% * 6 Telstra Corporation (a) 192
Slide 6: Top Ordinary Securities (continued) and Movements in the Top 25
Top 25 Ordinary Securities – 31 August 2007 For personal use only con’t. % of $million portfolio 20 Computershare 84.0 1.5% * 21 Suncorp-Metway 80.4 1.4% * 22 Amcor 79.0 1.4% * 23 Asciano Group 72.4 1.3% 24 Milton Corporation 71.2 1.3% 25 AGL Energy 66.6 1.2% Total 4,013.0 As % of Total Portfolio Va
Slide 7: Movements in the Top 25 and Major Acquisitions
For personal use only Movements in the Top 25 from 2006 to 2007 Previous Movements Out Rank AGL 17 Orica 24 Milton Corporation 25 Major Acquisitions (above $10m) Investment Portfolio from 2006 to 2007 $million Notes Asciano Group 49.1 Spin-off from Toll Holdings Rio Tinto 42.7 Telstra Instalment Rec
Slide 8: Major Disposals and Major Acquisitions Since 1 July 2007
For personal use only Major Disposals (above $10m) Investment Portfolio from 2006 to 2007 $million Notes NAB Income Securities 34.4 Promina Group 33.2 Takeover by Suncorp-Metway APN 7.25% conv note 24.5 Conversion to APN ABC Learning Centres 16.6 Rural Press Preferred 16.5 Takeover by Fairfax Media
Slide 9: Major Sales and Update on New Stocks 2005/2006
Major Sales in the Investment Portfolio For personal use only (above $1m) since 1 July 2007 $million Rinker Group* 114.2 Alinta* 37.0 Smorgon Steel* 9.5 Transpacific Industries 9.2 NAB Income Securities 4.0 * as a result of takeovers Update on the New Stocks in the Investment Portfolio 2005/2006 Bax
Slide 10: New Stocks in the Investment Portfolio 2006/2007
New Stocks in the Investment Portfolio 2006/2007 For personal use only ASG Group Equity Trustees Oakton Queensland Gas Comparative Price Index Returns Since 1 July 2007 20% Resources 15% 10% 5% S&P/ASX 200 0% Industrials -5% -10% Au Ju Se l-0 g- -15% p- 07 07 7 •9
Slide 11: Outlook
Outlook For personal use only Investors are requiring a higher return for risk Corporate costs for borrowing are rising Inflation pressures are evident Growth in China/India will continue to support the Australian economy Australian equity market is at record highs but turbulent Australian Foundatio
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