Another strong result for Kingfish

Kingfish Limited (KFL)
Results for announcement to the market

Reporting Period 12 months to 31 March 2018
Previous Reporting Period 12 months to 31 March 2017

Amount (000s) Percentage change
Revenue from ordinary
activities
$NZ 43,361 +58.1%
Profit (loss) from ordinary
activities after tax
attributable to security
holder
$NZ 36,326 +62.2%
Net profit (loss) attributable
to security holders
$NZ 36,326 +62.2%

Dividend Amount per security Imputed amount per
security
Kingfish will pay a partially
imputed quarterly dividend
in line with its distribution
policy.
$NZ 2.89cps $NZ 0.002919

Record Date 14 June 2018
Dividend Payment Date 29 June 2018

Comments:
The financial statements attached to this report have been
audited by PricewaterhouseCoopers and are not subject to
a qualification. A copy of the auditor’s report applicable to
the financial statements is attached to this announcement.


Net asset value per share 31 March 2018 $1.45 (2017: $1.40)

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For immediate release:

21 May 2018


Another strong result for Kingfish

 Net profit after tax $36.3m
 Total shareholder return +12.0%
 Gross performance return +16.5%
 Dividend return +8.7% (11.28 cps paid)

NZX-listed investment company Kingfish Limited (NZX: KFL) today announced a net operating profit after
tax for the 12 months to 31 March 2018 of $36.3m million. The result builds on last year’s net profit of
$22.4 million and includes gains on investments of $32.5m, dividend and interest income of $7.9m, other
income of $2.9m less operating expenses and tax of $7.0m. The Kingfish portfolio achieved a return of
16.5% for the period outperforming the S&P/NZX50G which was up 15.6% over the same period.

Total shareholder return was 12.0% which included the increase in share price, dividends paid and the
impact of the warrants that were on issue during the year. In accordance with Kingfish’s quarterly
distribution policy (2% of average NAV per quarter), the company paid a total of 11.28 cents per share to
shareholders during the year ended 31 March 2018. On 21 May 2018, the Board declared a dividend of
2.89 cents per share, payable on 29 June 2018 with a record date of 14 June 2018.

Kingfish Chair, Alistair Ryan said, “We are pleased to report a healthy net profit of $36.3m and an
investment return that again exceeded the market in what was another strong period for New Zealand
shares.”

Senior Portfolio Manager Sam Dickie said, “For the first nine months of the year, the New Zealand share
market recorded new highs every single month, creating an environment that almost felt too good to be
true. Market volatility returned at the start of calendar year 2018, catching investors unaware. Despite
the more recent challenging environment, we were pleased the Kingfish portfolio delivered a strong
result for the year with a number of core holdings driving portfolio returns.”

Kingfish’s Manager, Fisher Funds, was paid a performance fee of $2,432,206 plus GST during the period
as the Kingfish portfolio achieved a return in excess of both the performance fee hurdle (the change in
the Bank Bill Index rate plus 7%) and the High Water Mark (the highest net asset value at the end of the
previous financial year in which a performance fee was paid, adjusted for changes in capital).

For further information please contact:

Corporate Manager
Kingfish Limited
Tel: (09) 484 0345

Non-GAAP Financial Information
The adjusted net asset value, gross performance return and total shareholder return methodologies are described in the
Kingfish Non-GAAP Financial Information policy. A copy of the policy is available at http://www.kingfish.co.nz/about-
kingfish/kingfish-policies/.

About Kingfish
Kingfish is a listed investment company that invests in growing New Zealand companies. The Kingfish portfolio is managed
by Fisher Funds, a specialist investment manager with a track record of successfully investing in growth company shares.
The aim of Kingfish is to offer investors competitive returns through capital growth and dividends, and access to a
diversified portfolio of investments through a single tax-efficient investment vehicle. Kingfish listed on the NZX Main Board
on 31 March 2004 and may invest in companies that are listed on the NZX Main Board, NZX Alternative Market or unlisted
companies. /ends

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PricewaterhouseCoopers, 188 Quay Street, Private Bag 92162, Auckland 1142, New Zealand
T: +64 9 355 8000, F: +64 9 355 8001, pwc.co.nz
Independent auditor’s report
To the shareholders of Kingfish Limited
Kingfish Limited’s financial statements comprise:
 the statement of financial position as at 31 March 2018;
 the statement of comprehensive income for the year then ended;
 the statement of changes in equity for the year then ended;
 the statement of cash flows for the year then ended; and
 the notes to the financial statements which include significant accounting policies.
Our opinion
In our opinion, the financial statements of Kingfish Limited (the Company), present fairly, in all
material respects, the financial position of the Company as at 31 March 2018, its financial performance
and its cash flows for the year then ended in accordance with New Zealand Equivalents to
International Financial Reporting Standards (NZ IFRS) and International Financial Reporting
Standards (IFRS).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs
NZ) and International Standards on Auditing (ISAs). Our responsibilities under those standards are
further described in the Auditor’s responsibilities for the audit of the financial statements section of
our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
We are independent of the Company in accordance with Professional and Ethical Standard 1 (Revised)
Code of Ethics for Assurance Practitioners (PES 1) issued by the New Zealand Auditing and Assurance
Standards Board and the International Ethics Standards Board for Accountants’ Code of Ethics for
Professional Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in
accordance with these requirements.
Our firm carries out other services for the Company in the area of assurance services relating to share
and warrant register audits and agreed upon procedures relating to the annual meeting count of votes
and performance fee calculation. The provision of these services has not impaired our independence.

PwC
Our audit approach
Overview

An audit is designed to obtain reasonable assurance whether the financial
statements are free from material misstatement.
Overall materiality: $1,381,300, which represents approximately 0.5% of the
net assets. We used this benchmark because, in our view the objective of the
Company is to provide investors with a total return on the assets, taking
account of both capital and income returns.
We agreed with the Audit and Risk Committee that we would report to them
misstatements identified during our audit above $100,000 as well as
misstatements below that amount that, in our view, warranted reporting for
qualitative reasons.
Because of the significance of the investments to the financial statements, we
have determined that there is one key audit matter: valuation and existence of
investments designated at fair value through profit or loss.

Materiality
The scope of our audit was influenced by our application of materiality.
Based on our professional judgement, we determined certain quantitative thresholds for materiality,
including the overall Company materiality for the financial statements as a whole as set out above.
These, together with qualitative considerations, helped us to determine the scope of our audit and the
nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both
individually and in the aggregate on the financial statements as a whole.
Audit scope
We designed our audit by assessing the risks of material misstatement in the financial statements and
our application of materiality. As in all of our audits, we also addressed the risk of management
override of internal controls including among other matters, consideration of whether there was
evidence of bias that represented a risk of material misstatement due to fraud.
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an
opinion on the financial statements as a whole, taking into account the structure of the Company, type
of investments held by the Company, the use of the third party service providers, the accounting
processes and controls, and the industry in which the Company operates.
The Directors are responsible for the governance and the control activities of the Company. The
Directors have delegated certain responsibilities to Fisher Funds Management Limited (the
Investment Manager) and Trustees Executors Limited (the Administrator). The Company has
appointed Trustees Executors Limited (the Custodian) to act as custodian of the Company’s
investments.
In establishing our overall audit approach we assessed the risk of material misstatement, taking into
account the nature, likelihood and potential magnitude of any misstatement. As part of our risk
assessment, we considered the Company’s interaction with the Investment Manager and
Administrator and the control environment in place at the Administrator and the Custodian.

PwC
Key audit matter
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial statements of the current year. Given the nature of the Company, we have
one key audit matter: valuation and existence of investments at fair value through profit or loss. The
matter was addressed in the context of our audit of the financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on the matter.
Key audit matter How our audit addressed the key audit matter
Valuation and existence of investments at fair
value through profit or loss
Investments at fair value through profit or loss
(the investments) are valued at $264.4 million
and represent 95% of total assets.
Further disclosures on the investments are
included at note 2 to the financial statements.
This was an area of focus for our audit and an
area where significant audit effort was
directed.
As at 31 March 2018, all investments are in
companies that were listed on the NZX Main
Board and were actively traded with readily
available, quoted market prices.
All investments are held by the Custodian on
behalf of the Company and administered by
the Administrator.
Our audit procedures included updating our
understanding of the business processes employed by
the Company for accounting for, and valuing, their
investment portfolio.
We obtained confirmation from the Custodian that
the Company was the recorded owner of all the
recorded investments.
We obtained copies of and assessed the
Administrator’s and Custodian’s Internal Controls
Reports for Custody, Investment Accounting and
Registry services for the periods ended 30 September
2017 and 31 March 2018.
We agreed the price for all investments held at 31
March 2018 to independent third party pricing
sources.
We had no matters arising from the procedures
performed.
Information other than the financial statements and auditor’s report
The Directors are responsible for the annual report. The annual report is expected to be made available
to us after the date of this auditor's report.
Our opinion on the financial statements does not cover the other information included in the annual
report and we do not and will not express any form of assurance conclusion on the other information.
In connection with our audit of the financial statements, our responsibility is to read the other
information when it becomes available and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained in the audit, or
otherwise appears to be materially misstated.
When we read the annual report, if we conclude that there is a material misstatement therein, we are
required to communicate the matter to the Directors.

PwC
Responsibilities of the Directors for the financial statements
The Directors are responsible, on behalf of the Company, for the preparation and fair presentation of
the financial statements in accordance with NZ IFRS and IFRS, and for such internal control as the
Directors determine is necessary to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Company’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the Directors either intend to liquidate the Company or to
cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements, as a whole,
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with ISAs NZ and ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located at the
External Reporting Board’s website at:
https://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-report-2/

This description forms part of our auditor’s report.
Who we report to
This report is made solely to the Company’s shareholders, as a body. Our audit work has been
undertaken so that we might state those matters which we are required to state to them in an auditor’s
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company and the Company’s shareholders, as a body, for our
audit work, for this report or for the opinions we have formed.
The engagement partner on the audit resulting in this independent auditor’s report is Richard Day.
For and on behalf of:




Chartered Accountants Auckland
21 May 2018