How AFIC Invests

We invest in Australian companies that have unique high-quality assets, brands and/or business footprints that can withstand economic cycles. When selecting investments for our portfolio, we look for management and board strength, and sound financial metrics covering returns on investment, profit margins, cash flow and gearing.

We believe that these businesses generate superior returns over the long term.

If you’re an AFIC shareholder, it’s optional to participate in the DRP. You can choose whether to reinvest all or part of your dividends in the plan. Participants enjoy the benefits of compound returns over time with no brokerage costs when acquiring additional shares. It’s entirely flexible, allowing you to join or withdraw at any time.

For more information on the DRP, please read the DRP Rules.

When Australian resident taxpayers receive DSSP shares, no income tax is payable until the shares are sold.

The DSSP may be suitable for Australian taxpaying shareholders who:

• Want to defer tax-payable until selling their AFIC shares
• Are on a high marginal income tax rate
• Shareholders that pay tax at a lower rate (e.g. SMSF) may prefer the DRP.

Australian resident participants in the DSSP do not receive a dividend but in lieu of that, are issued shares. As they do not receive a dividend, they will not get franking credits or LIC capital gains tax deductions and will usually not be subject to income tax. The receipt of the substitute shares will change the tax cost base of the AFIC shares that participate in the DSSP and may therefore increase any capital gains tax paid on any subsequent disposal. For more details read the attached explanation.

Shareholders should in all cases seek their own advice as to whether or not participation in the DSSP is suitable for them.

For more information on the DSSP, please read the DSSP Rules. We have also included a link to the Australian Tax Office Class Ruling regarding the AFIC DSSP (refereed to in the document as a bonus share plan).

The Company has received advice that confirms that shares issued under the DSSP are treated as dividend distributions under New Zealand taxation law.

Consequently, participants should note that they continue to be able to claim New
Zealand imputation credits when completing a New Zealand tax return that includes
this distribution.

Shareholders should consult their own accountants and tax advisers as to the impact
that this may have on them, particularly with regard to their New Zealand tax returns.

Please note that the ASX announcements refers to the DSSP as a Bonus Security Plan (BSP).

Please note that an election to participate fully in the DSSP will override any instruction on the registry record regarding participation in the Company’s Dividend Reinvestment Plan or direct payment of cash dividends into a nominated account.

Sign into Computershare – a secure shareholding administration platform – with your Shareholder Reference Number (SRN) or Holder Identification Number (HIN).

Alternatively, complete and return the forms below.

Key Dates

Interim Financial Results and Dividend Payments 2022

*these dates may be subject to change