Shareholder Telephone / Webcast Presentation

28 March 2022


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
Shareholder Telephone / Webcast Presentation



Please find attached the presentation to be given at the Shareholder Teleconference/ Webcast
being held today Monday 28 March 2022 at 10.00am (AEDT).

To join the webcast please use the below link.

Webcast Link: Please register for the results webcast here:

https://edge.media-server.com/mmc/p/sics877h.

Alternatively to join via the teleconference, please use the details below:

Telephone: 1800 175 864 (free call within Australia)
1300 212 365 (mobile, free call within Australia)
+61 2 8373 3507 (outside Australia)
Conference ID: 3175486

Joining the Conference Call:

1. In the 10 minutes prior to the call start time, call the appropriate dial-in number.
2. Enter the Event Plus passcode 3175486, followed by the pound or # key and leave any
information requested after the tone. You will be joined automatically to the conference. During the
call you can indicate if you would like to ask a question by pressing (*1) on your telephone keypad
and wait for your name to be announced.

International Dial-In Numbers will be available via the Company’s website.

The presentation will be available under the News section of the Company’s website
www.afi.com.au.


Yours faithfully

Matthew Rowe
Company Secretary

ASX Release authorised by the Company Secretary

Shareholder Meeting
28 March 2022

AFIC Shareholder Meeting 2022
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 warranty
(express or implied) is made as to the accuracy, completeness or reliability of any statements, estimates
or opinions or other information contained in these materials (any of which may change without notice)
and to the maximum extent permitted by law, the Disclosers disclaim all liability and responsibility
(including, without limitation, any liability arising from fault or negligence on the part of any or all of the
Disclosers) for any direct or indirect loss or damage which may be suffered by any recipient through
relying on anything contained in or omitted from these materials.
This information has been prepared and provided by AICS. To the extent that it includes any financial
product advice, the advice is of a general nature only and does not take into account any individual’s
objectives, financial situation or particular needs. Before making an investment decision an individual
should assess whether it meets their own needs and consult a financial advisor.
Disclaimer
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AFIC Shareholder Meeting 2022
Agenda
(1) Introduction– Mark Freeman
(2) Objectives and the investment process –Mark Freeman
(3) Markets and the portfolio –David Grace
(4) Portfolio Positioning – Nga Lucas
(5) Closing Comments – David Grace
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AFIC Shareholder Meeting 2022
Investment Team
David Grace
Portfolio Manager
Kieran Kennedy
Portfolio Manager
Brett McNeill
Portfolio Manager
Rosie Malcolm
Portfolio Manager
Andrew Sutherland
Portfolio Manager
Nga Lucas
Investment Analyst
Olga Kosciuczyk
Investment Analyst
Stuart Low
Investment Analyst
Jeremy Moore
Dealer
Gilbert Battistella
Graduate Investment
Analyst
Nicky Sun
Graduate Investment
Analyst
Jaye Guy
Investment Analyst
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AFIC Shareholder Meeting 2022
Our Company
Invests in Australian and New Zealand companies –looking for quality for the long term.
Largest listed investment company on the ASX at $8.7bn at 28 February 2022 (also listed on NZX), over 160k
shareholders, full transparency from being listed,independent Board of Directors providing strong governance.
Shareholders own the ‘management rights’ to the portfolio – no external funds management business deriving
an income from the portfolio.
Management expense ratio of 0.15% (half year annualised) with no performance fees.
Long term investor with low turnover –tax has less of a negative impact on shareholder returns compared with high
turnover funds. Portfolio and share price returns less volatile than the S&P/ASX 200 Index.
Long history of growing/stable fully franked dividends.
Team manages three other funds –Djerriwarrh, Mirrabookaand AMCIL which adds significantly to the effectiveness
of the investment process and idea generation.
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AFIC Shareholder Meeting 2022
AFIC’s share price relativeto the NTA- 28 February 2022
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AFIC Shareholder Meeting 2022
Objectives and the Investment
Process
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AFIC Shareholder Meeting 2022
Objectives
AFIC’s investment focus is on a diversified portfolio of Australian equities, seeking
to provide attractive income and capital growth to shareholders over the medium to
long term.
This is achieved at a low cost, with lower volatility than the market, and with low
portfolio turnover which produces tax effective outcomes for shareholders.
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AFIC Shareholder Meeting 2022
Long term investor in companies, not traders of share prices
Identify quality companies with sound growth prospects that we can buy at a reasonable price
This supports our belief in the power of compounding returns from great businesses
Our research process is built on observing the key characteristics of a company that our experience
indicates will produce strong investment returns
Our investment process – focus on long term quality
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AFIC Shareholder Meeting 2022
ESG is integrated into our investment framework
oAssessment of ESG risk factors is an important part of our investment process as the
sustainability of a business is a key input in our assessment of a company.
oAs a long-term investor, we seek to invest in companies that have strong governance and risk
management processes, which includes consideration of environmental and social risks.
oWe regularly review companies to ensure ongoing alignment with our investment framework.
oWe conduct our own evaluation of the merits of any shareholder resolution and take input from
proxy advisors.
oWe vote on all company resolutions as part of ourregular engagement with companies.
oWe actively engage with companies when we have concerns those resolutions are not aligned
with shareholders’ interests.
Engagement with companies
Approach to Environmental, Social and Governance (ESG) factors
Voting on resolutions is one of the key functions that a shareholder has in ensuring better long-
term returns and management of investment risk:
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AFIC Shareholder Meeting 2022
Markets and The Portfolio
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AFIC Shareholder Meeting 2022
Market conditions
S&P/ASX 200 Index price performance chart
Jan 21 – Feb 22
S&P/ASX 200 Index price performance
S&P/ASX 200 Sector Performance Table
CY21CY22 YTD*
Energy0.5%17.1%
Materials13.9%6.0%
Industrials13.9%-7.2%
Consumer Discretionary24.3%-13.3%
Consumer Staples10.2%-4.6%
Health Care9.3%-12.3%
Financials25.2%-3.7%
Information Technology-2.2%-23.8%
Communication Services32.6%-10.0%
Utilities9.8%6.1%
Real Estate 23.1%-8.0%
TOTA L17.2%-4.3%
Source: Factset
*to 28 February 2022
6,000
6,200
6,400
6,600
6,800
7,000
7,200
7,400
7,600
7,800
January 2021February 2022
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AFIC Shareholder Meeting 2022
Long-term oil price
Source: DataStream, Citi Research
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Brent oil versus 3Y moving average

AFIC Shareholder Meeting 2022
Long-term share market performance
Source: Goldman Sachs
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
1997199920012003200520072009201120132015201720192021
ASX200 Price Return over 25 years
ASX 200 forward PE over 25 years
Markets perform over the long run despite short term
drawdowns.
Market valuation multiples now more in line with the long-
term average.
Source: Factset
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AFIC Shareholder Meeting 2022
Portfolio Performance* per annum returns to 28 February 2022
*assumes an investor can take full advantage of the franking credits
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Past performance is not indicative of future performance.

AFIC Shareholder Meeting 2022
Opportunities in volatile markets
Growth companies at reasonable valuations Sources of income with reasonable growth
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AFIC Shareholder Meeting 2022
Portfolio positioning
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AFIC Shareholder Meeting 2022
Portfolio Positioning
Companies with excellent long term growth prospects
Constructing a diversified portfolio with the appropriate balance of Income and Growth.
Companies with an above average dividend yield, with solidlong term growth prospects
Smaller companies that have the potential for significant long-term growth
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AFIC Shareholder Meeting 2022
REA Group – power of compounding long term returns
First added to the portfolio: April 2016
REA Total Shareholder Return (%)
50
100
150
200
250
300
350
400
20162017201720182019202020212022
REA Total Shareholder ReturnS&P/ASX200 Total Shareholder Return
Average cost$64.00
Holding period5.5 years
Dividends Received$6.80
Annualisedreturn18.40%
ASX 200 annualisedreturn10.80%
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AFIC Shareholder Meeting 2022
CSL – power of compounding long term returns
First added to the portfolio: September 1999
CSL Total Shareholder Return (%)
0
2,000
4,000
6,000
8,000
19992001200320052007201020122014201620182020
CSL Total Shareholder ReturnS&P/ASX200 Total Shareholder Return
2022
Average cost$109.00
Holding period23 years
Dividends Received$23.13
Annualisedreturn19.90%
ASX 200 annualisedreturn8.70%
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AFIC Shareholder Meeting 2022
Transurban – source of growing income
•A high-quality company that will benefit from economies reopening and traffic recovering
•Good income stock for the portfolio with dividends to continue to recover from FY22 low point
•Potential upsidefrom pipeline of development opportunities
Source: Company reports, Factset, AFIC estimates. Note that the Financial Year periods refer to the
Dividend 'Ex Date’ and therefore line up with AFIC’s Financial Year reporting.
Dividends ($ per share)
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AFIC Shareholder Meeting 2022
Top 30 holdings – 28 February 2022
RankCompany% ofPortfolio
1
Commonwealth Bank of Australia8.6%
2
BHP7.5%
3
CSL 7.2%
4
Macquarie Group 4.6%
5
Transurban Group 4.2%
6
Wesfarmers 4.1%
7
Westpac Banking Corporation4.1%
8
National Australia Bank 3.7%
9
Woolworths Group 3.0%
10
Mainfreight 2.8%
Total Portfolio 59 Holdings
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AFIC Shareholder Meeting 2022
Top 30 holdings – 28 February 2022 continued
RankCompany% ofPortfolio
11
Australia and New Zealand Banking Group 2.6%
12
Rio Tinto 2.6%
13
James Hardie Industries2.5%
14
Telstra Corporation* 2.5%
15
Amcor2.1%
16
Goodman Group2.1%
17
Coles Group 1.8%
18
ResMed1.8%
19
Reece 1.6%
20
ARB Corporation 1.6%
Total Portfolio 59 Holdings
* Options were outstanding against part of the holding.
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AFIC Shareholder Meeting 2022
Top 30 holdings – 28 February 2022 continued
RankCompany% ofPortfolio
21
Carsales.com 1.5%
22
Sonic Healthcare 1.5%
23
Ramsay Health Care 1.4%
24
ASX 1.4%
25
Woodside Petroleum 1.2%
26
Fisher & Paykel Healthcare1.2%
27
Brambles1.1%
28
ALS1.0%
29
Seek1.0%
30
Computershare1.0%
Total Portfolio 59 Holdings
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AFIC Shareholder Meeting 2022
Closing Comments

AFIC Shareholder Meeting 2022
Outlook
Challenging operating environment to continue:
•Implications of war in Ukraine
•Rising cost environment with likely further rate rises
•Slowing growth in China
Demand environment in many sectors of the economy remains healthy.
Company dividends are forecast to continue their recent recovery.
Looking to capture buying opportunities as they present.
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AFIC Shareholder Meeting 2022
International Portfolio
Performance so far has been encouragingand we are continuing to build a track record.
Invested $85mm (1%) in a portfolio of international companies to date.
Actively managed portfolio consistent with AFIC approach currently invested across
39 stocks.
Focuses on high quality companies characterisedby strong management teams,
sustainable competitive advantagesand often underpinned by long term secular
growth trends.
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AFIC Shareholder Meeting 2022
Questions
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