Australian Foundation Investment : 2021 Annual Reports & AGM Documentation

30 August 2021

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

Statutory Annual Report, Annual Shareholder Review and

Annual General Meeting Documentation

Dear Sir / Madam

Please find attached the 2021 Statutory Annual Report, Annual Shareholder Review and Annual General Meeting Documentation being sent to shareholders.

Yours faithfully

Matthew Rowe

Company Secretary

Authorised by the Company Secretary

Annual Report

2021

AUSTRALIAN FOUNDATION INVESTMENT COMPANY IS A LISTED INVESTMENT COMPANY INVESTING

IN AUSTRALIAN AND NEW ZEALAND EQUITIES.

Contents

2	DIRECTORS'	34 FINANCIAL	58 DIRECTORS'
	REPORT		STATEMENTS		DECLARATION
2	5 Year Summary	35	Consolidated Income Statement	59 INDEPENDENT
4	About the Company	36	Consolidated Statement of		AUDIT REPORT
6	Review of Operations		Comprehensive Income
	and Activities	37	Consolidated Balance Sheet	64 OTHER
12	Top 25 Investments	38	Consolidated Statement
	INFORMATION
13	Company Position		of Changes in Equity
14	Board Members	40	Consolidated Cash Flow	64	Information About Shareholders
	Statement
17	Senior Executives			64	Major Shareholders
18	Remuneration Report	41 NOTES TO	65	Sub-underwriting
32	Non-audit Services		THE FINANCIAL	65	Substantial Shareholders
33	Auditor's Independence		STATEMENTS	65	Transactions in Securities
	Declaration			66 Major Transactions in the
		41	A. Understanding AFIC's		Investment Portfolio
			Financial Performance	67	Holdings of Securities
		45	B. Costs, Tax and Risk	69	Holdings of International
		48	C. Unrecognised Items		Securities
		49	D. Balance Sheet	70	Issues of Securities
			Reconciliations	72	Company Particulars
		51	E. Income Statement	73	Shareholder Information
			Reconciliations
		52	F. Further Information

Australian Foundation Investment Company Limited

ABN 56 004 147 120

Year in Summary

	2021
Profit for		$235.1m		$240.4m in 2020.
the Year				Down 2.2%

Fully	14	¢	24	¢	24 cents total
Franked
		in 2020
Dividend
Final		Total

Total	35.2%	Share price plus
Shareholder	dividend, including
Return	franking*

Total	31.9%	S&P/ASX 200
Accumulation Index
Portfolio
including franking*
Return
Including franking*	29.1%

Management	0.14%	0.13%
Ratio
Expense		in 2020

	$9.1b	$7.2 billion in 2020
Total		Including cash
	at 30 June.
Portfolio

* Assumes a shareholder can take full advantage of the franking credits.

Australian Foundation Investment Company Limited

1

Annual Report 2021

DIRECTORS' REPORT

5 Year Summary

Net Profit After Tax						Net Profit Per Share					Dividends Per Share
($ Million)								(Cents)							(Cents)(b)
2021		235.1					2021		19.3				2021		24
2020		240.4					2020		19.9				2020		24
2019		272.2		134.2	(a)	2019				34.0	2019		24	(c)(c)
							832
2018		279.0				2018		23.6			2018		24
2017		245.3					2017		21.3				2017		24

Notes

1. Participation in the Rio Tinto and BHP off-market share buy-backs, special dividends and the receipt of a dividend because of the Coles demerger from Wesfarmers.
2. All dividends were fully franked. The LIC attributable gain attached to the dividend was 2021: 4.29 cents, 2020: 7.14 cents, 2019: 7.14 cents,
   2018: 2.86 cents, 2017: nil.
3. 8 cents fully franked special dividend paid with the interim dividend.
4. Net asset backing per share based on year-end data before the provision for the final dividend. The figures do not include a provision for capital gains tax that would apply if all securities held as non-current investments had been sold at balance date as Directors do not intend to dispose of the portfolio.
5. Excludes cash.

Australian Foundation Investment Company Limited

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Annual Report 2021