New Zealand Information Meeting Presentation

2 December 2024



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
NZ Information Meeting – Presentation



Dear Sir / Madam

Please find attached a presentation that will be delivered to shareholders at the
information meeting being held in New Zealand.

Yours faithfully

Matthew Rowe
Company Secretary

NZ Shareholder Meeting
December 2024

NZ Shareholder Meeting / December 2024
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.
ABN: 56 004 147 120
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Disclaimer

Full Year Results
Overview and Investment
Objectives

NZ Shareholder Meeting / December 2024
Invests in Australian and New Zealand companies
Largest listed investment company on the ASX, 160k shareholders, independent Board of Directors
Shareholders own the ‘management rights’ to the portfolio
Management expense ratio of 0.15% with no performance fees
Long term investor with low turnover (tax effective). Portfolio and share price returns less volatile than the index
Long history of growing/stable fully franked dividends
Team manages three other funds – Djerriwarrh, Mirrabooka and AMCIL
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Our Company
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NZ Shareholder Meeting / December 2024
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Investment Objectives
The Company’s primary investment goals are:
• to pay stable to growing dividends over time; and
• to provide attractive total returns over the medium to long
term.

NZ Shareholder Meeting / December 2024
Ensuring a Stable to Growing Dividend for Shareholders
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AFIC’s franking reserve balance ensures we can pay a consistent dividend even
through volatile times – full year dividends last six financial years.

NZ Shareholder Meeting / December 2024
Attractive Total Returns Over the Long-term
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$10k in AFIC  $180k
$10k in the Index  $135k
Excludes the benefit of franking.
AFIC NTA vs ASX 200 Accumulation Index

Full Year Results
Financial Results

NZ Shareholder Meeting / December 2024
* Assumes an investor can take full advantage of the franking credits.
Financial Year in Summary
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NZ Shareholder Meeting / December 2024
Share Price Relative to NTA
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31 October 2024
NTA: $8.17
Share price: $7.43

Full Year Results
Markets and the Portfolio

NZ Shareholder Meeting / December 2024
Portfolio Set to Perform in Most Economic Settings
AFIC
Stalwarts
Growth Companies
Income
Cyclicals
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16%
34%
24%
26%

NZ Shareholder Meeting / December 2024
Portfolio and Sector Performance
Portfolio Return – Per Annum to 31 October 2024Sector Performance 12 months to 31 October 2024
Portfolio Return is before tax and costs.
Past performance is not indicative of future performance.
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NZ Shareholder Meeting / December 2024
MarketValuation in a Long Term Context
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ASX 200 Firms Trade at an Average Forward PE of 18.0x, which is 17% Above the 20-yr Average

NZ Shareholder Meeting / December 2024
Market Conditions
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What’s Occupying Our Mind
Earnings growth becoming more challenging with price rises expected to slow.
Consumer spendingis softening.
Employment trends to be important.
China. Announced policy initiatives attempting to stabilise market conditions.
Majority of the Central Banks moving to ease policy settings.
Portfolio Positioning
Diversified portfolio of quality companies owning strategic assets, with strong balance sheets that are
well managed.
An appropriate mix of forecast growth and income returns to meet our long-term investment
objectives.

NZ Shareholder Meeting / December 2024
Falling demand and a historically tight labour
market impacting labour productivity
Labour Productivity Remains Weak. Cost-out to be a Focus?
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Source: Goldman Sachs Research
ASX 200 (ex-REITs) annual growth in labour
costs far exceeding sales growth
%

Full Year Results
Recent Portfolio Activity

NZ Shareholder Meeting / December 2024
Active Portfolio Management – Recent Transactions
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Additions to Existing Holdings
New Purchases
Trimmed Holdings
Complete Disposals

NZ Shareholder Meeting / December 2024
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Source: Goldman Sachs Research.
ASX 200 Banks Valuation vs Earnings Trend
Recent Transactions – A Spotlight on Bank Valuations

NZ Shareholder Meeting / December 2024
CAR Group
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Source: CAR Group Investor Presentation,
Diogenes Research
CAR Group holds market leading positions in auto classifieds
in Australia, USA, South Korea and Brazil.
Management team with a long-term track record of delivering
strong returns for shareholders.
Ability to leverage CAR Group’s intellectual property from
Australia to accelerate growth in international markets.
Significant long-term opportunity remains within all operating
markets.
EPS vs Share Price
EPS cents
Share Price (RHS)
ASX 200 – Indexed (RHS)

Full Year Results
Outlook

NZ Shareholder Meeting / December 2024
Outlook
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Slowing economic growth providing an increasingly challenging environment for companies to
deliver earnings growth.
Investment markets been prepared to pay high prices where there is a high degree of confidence
of earnings growth.
Drivers of market performance expected to broaden.
We remain focused on companies well positioned to create long term shareholder value.
The portfolio is invested in well managed companies with proven track records of financial
discipline capturing value-accretive opportunities as they arise.

NZ Shareholder Meeting / December 2024
International Portfolio

NZ Shareholder Meeting / December 2024
Snapshot of the International Portfolio which has 42 holdings
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NZ Shareholder Meeting / December 2024
Managing four funds with different investment objectives adds significantly to the
effectiveness of the investment process and idea generation
Fully franked yield that is higher
than that available from the ASX
200 Index utilising option strategies,
also produces long term capital
growth.
Australian and NZ small/midcap
sector, capital growth over the long
term and fully franked dividends.
MER of 0.42%
MER of 0.56%
High conviction portfolio, strong
capital growth over the long term
and fully franked dividends.
MER of 0.56%
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Our Other LIC’s

NZ Shareholder Meeting / December 2024
Djerriwarrh: Dividend Yield & Share Price to NTA – 31 October 2024
Yield
31 October 2024
NTA: $3.38
Share price: $3.17
Share Price Relative to NTA
Assumes an investor can take full advantage of franking credits.
Past performance is not indicative of future performance.
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NZ Shareholder Meeting / December 2024
Mirrabooka: Portfolio Performance & Share Price to NTA – 31 October 2024
Portfolio ReturnShare Price Relative to NTA
31 October 2024
NTA: $3.29
Share price: $3.31
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Portfolio Return is before tax and costs.
Past performance is not indicative of future performance.

NZ Shareholder Meeting / December 2024
AMCIL: Portfolio Performance & Share Price to NTA – 31 October 2024
Portfolio ReturnShare Price Relative to NTA
31 October 2024
NTA: $1.30
Share price: $1.17
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Portfolio Return is before tax and costs.
Past performance is not indicative of future performance.