Kingfish 2018 Annual Meeting Presentation and Address

ANNUAL MEETING
OF SHAREHOLDERS
Kingfish Limited
27 July 2018

Agenda
•Preliminary matters
•Chair’s Overview
•Manager’s Review
•Q&A
•Annual Meeting Resolutions

Board of Directors
Kingfish Team
Alistair RyanCarmel Fisher
Andy Coupe
Carol Campbell
Sam Dickie
Snr Portfolio Manager
Zoie Regan
Snr Investment Analyst
Matt Peek
Investment Analyst
Jody Kaye
Corporate Manager

Chair’s Overview

Kingfish’s Investment Objectives
Achieve a high real rate of return, comprising both income
and capital growth within acceptable risk parameters
Access to a diversified portfolio of New Zealand quality,
growth stocks through a single tax-efficient vehicle
Absolute Returns
Diversified Portfolio

2018 Overview
Net profitDividendNAV per shareShare price
$36.3m
(2017: $22.4m)
11.28cps
(2017:11.16cps)
$1.45
(2017: $1.40)
$1.31
(2017: $1.29)
Total
shareholder
return*
Dividend return
Adjusted NAV
return*
Share price
discount to
NAV^
+12.0%
(2017: 8.1%)
+8.7%
(2017: +8.5%)
+14.7%
(2017: 10.6%)
+9.7%
(2017: 7.0%)
*These metrics are Non-GAAP measures calculated in accordance with the methodology described in the Kingfish Non-GAAP
Financial Information Policy which is available on the Kingfish website.
^Share price discount/(premium) to NAV (including warrant price on a pro-rated basis).

Use of Shareholder Funds

Quarter 1, 2019
1 April –30 June 2018
Total shareholderreturn*
+8.4%
Adjusted NAV return*
+7.2%
NAV per share
$1.52
Share price
$1.39
Net profit
$21.1m
*These metrics are Non-GAAP measures calculated in accordance with the methodology described in the Kingfish Non-GAAP Financial
Information Policy which is available on the Kingfish website.

Warrants
•5 May 2017: Successful “KFLWD” warrant issue
with $35.2m invested in the Kingfish portfolio
•2 July 2018: New warrant issue “KFLWE”
announced
•18 July 2018: Eligible shareholders issued 1
warrant for every 4 shares held on the record
date with Final Exercise Price to be announced
in June 2019
•12 July 2019: “KFLWE” Exercise Date

Manager’s Review
Sam Dickie
Senior Portfolio Manager

Agenda
1.The Kingfish story
2.Why own NZ shares?
3.Review of markets in FY18
4.Portfolio insights
5.Outlook

The Kingfish story
1.New Zealand has been a great place
to invest
2.Kingfish gives you access to quality,
growing companies with offshore
revenues
3.Active management has allowed
Kingfish to successfully operate in
different macro backdrops over the
long term

Why invest in New Zealand shares?
The New Zealand market has outperformed other major markets
-
+50%
+100%
+150%
+200%
New Zealand
(S&P/NZX50G)
US
(S&P 500)
UK
(FTSE 100)
Global
(MSCI World)
Japan
(Nikkei 225)
Australia
(ASX 200)
Emerging
(MSCI EM)
Total gross index return over the last 10 years
Note: Total gross index return with returns in the currency of the index (S&P/NZX50G in NZD, S&P 500 in USD, FTSE 100 in GBP,
Nikkei in JPY, ASX 200 in AUD, MSCI World and MSCI EM in USD); Source: FactSet (10 years to 5 July 2018)

Mar 17Jun 17Sep 17Dec 17Mar 18
How did the NZ market fare in FY2018?
October 2017
Q1 2018
Note: S&P/NZX50G index
Source: FactSet
February 2018
June 2017
March 2018
April –July 2017

Performance has been strong
Note: Adjusted NAV return as defined in Kingfish Non-GAAP Financial Information Policy
(http://kingfish.co.nz/assets/Uploads/Kingfish-Non-GAAP-Financial-Information-Policy.pdf)
+14.7%
+7.2%
-
+5%
+10%
+15%
Fiscal year to
31 March 2018
Quarter to
30 June 2018
Adjusted NAV Return

Portfolio company performance
Note: * a2 Milk from first acquisition date; portfolio holdings as at 31 March 2018
13 / 16
positive
-20%
-10%
0%
10%
20%
30%
40%
F&P Healthcare
Summerset
Restaurant Brands
a2 Milk*
Delegat
Ryman Healthcare
Port Of Tauranga
Infratil
Abano Healthcare
Mainfreight
Meridian Energy
Freightways
EBOS
Vista
Auckland Airport
Michael Hill
Portfolio company total shareholder returns (year to 31 March 2018*)

Attractive earnings growth outlook remains key
Note: Consensus earnings per share growth from current unreported fiscal year to the year after next
Source: FactSet as at 25 July 2018
0%
50%
100%
a2 MilkVistaRymanF&P
Healthcare
SummersetRestaurant
Brands
Mainfreight
Consensus 2-year forward earnings per share growth (selected holdings)

What went especially well?
•During the year we increased
the F&P Healthcare weighting
in the Kingfish portfolio
•What happened?
Impact of litigation
significantly overblown
Double-digit and
accelerating growth in
hospital business
•Increased position size in
November 2017 and March
2018
•What happened?
Quality operator,
successfully following in
Ryman’s footsteps
Sector leading growth,
priced attractively
Solid management and
leading disclosure

What went against us?
•What has changed recently?
Closed the US network
Reversed course on Emma & Roe
Tough Australian retail environment

Key Theme 1:
Active management means many things
•Kingfish investment process focuses
on researching businesses using the
STEEPP framework
•Enhancing long term returns can
be as much about what you don’t
own -Kingfish has never owned
any shares in CBL
•During FY18 and into FY19 we have
upgraded the quality of the
Kingfish portfolio (5 exits, 3 entries)
Note: FY18 refers to fiscal year ended 31 March 2018 (FY19: fiscal year ended 31 March 2019)

Key Theme 2:
Active management means the ability to tilt
our exposure towards offshore growth
New
Zealand
50%
Australia
& Asia
26%
North
America
14%
Europe
8%
Other
2%
Portfolio revenue by geography*
•NZ GDP growth has
outperformed for a number of
years
•Approximately 50% of the
Kingfish portfolio’s revenue is
from offshore
•Exemplified by Fisher & Paykel
Healthcare
–94% offshore revenue
–Hospital division and high
flow oxygen is a key growth
driver
Source: * Fisher Funds estimates

Key Theme 3:
Active management means opportunities can
be found in unlikely places
•Kingfish recently took a position in
Fletcher Building (in April 2018)
•Several strong core businesses,
problem divisions addressed
•Multiple key changes in the business
(people, strategy, balance sheet)

Outlook
•New Zealand is insulated from
some global risks but is not totally
immune
•While macro is important, there is
no substitute for wearing out the
shoe leather
•Kingfish’s active management
style allows it to adjust its
approach to different macro
backdrops

What does Kingfish offer?
•Focus on high quality growth
businesses
•Continually scour the market for
the best investments
•Our goal is to maintain a
Kingfish portfolio of high quality
growth companies that will
outperform over an economic
cycle
Note: Adjusted NAV return as defined in Kingfish Non-GAAP Financial Information
(http://kingfish.co.nz/assets/Uploads/Kingfish-Non-GAAP-Financial-Information-Policy.pdf)
-
$1.00
$2.00
$3.00
$4.00
$5.00
Mar 04Mar 05Mar 06Mar 07Mar 08Mar 09Mar 10Mar 11Mar 12Mar 13Mar 14Mar 15Mar 16Mar 17Mar 18
Adjusted NAV return

General Questions from
Shareholders
(not relating to resolutions)

Annual Meeting
2018 resolutions

2018 Annual Meeting Resolutions
•Introduce and propose
•Discussion, questions
•Enter your vote on voting paper and
lodge your voting paper at end of
resolutions

Matters of Business
•Annual Report
•Resolutions:
–Re-elect Carol Campbell
–Directors’ remuneration
–Auditor remuneration

Proxy Count
Proxy votes to date: 14.8 million
ResolutionForAgainst DiscretionaryTotalAbstain
Re-elect Carol
Campbell
13,034,98786,5761,629,67214,751,23540,735
Directors’
remuneration
4,864,5732,868,4251,693,7639,426,7615,365,209
Auditor
remuneration
12,916,216152,8701,544,53314,613,619178,351

Resolution 1
Re-election of Carol Campbell
To re-elect Carol Campbell as a
director of the company

Resolution 2
Directors’ Remuneration
To authorise that the maximum
aggregate remuneration able to be
paid to all directors (in their capacity
as directors) of the company be
increased by $32,500 per annum from
$125,000 to $157,500 (plus GST if any)

Resolution 3
Auditor’s Remuneration
To authorise the board of directors to
fix the remuneration of the auditor for
the ensuing year.

Conclusion
•Complete and sign voting paper
•Voting papers in the voting boxes
•If you need a voting paper please
see Computershare
•Results to NZX

Thank you

---

Kingfish Limited
Phone +64 9 489 7094
Fax +64 9 489 7139
Private Bag 93502
Takapuna, Auckland

27 July 2018
Kingfish Limited Annual Meeting
Chair’s Address from Alistair Ryan
[Slide: Kingfish Limited Annual Meeting of Shareholders]
Welcome to the 14th Kingfish Annual Meeting of Shareholders. I am Alistair Ryan, Chair of Kingfish.
We are duly convened as a notice of meeting has been circulated to shareholders and I can confirm
that a quorum is present so I declare the meeting open.
Please note that the exits are at the back and front of the room. Please ensure you turn off your cell
phones.
At the conclusion of the meeting there will be a light lunch. We look forward to meeting many of you
after the meeting.
[Slide: Agenda]
To briefly cover off preliminary matters:
 The minutes of the 2017 annual shareholders’ meeting held on 28 July 2017 are available at
the registration desk and are also on the Kingfish website.
 The 2018 annual report has been circulated to shareholders – additional copies are available
at the registration desk.
Now to today’s agenda. Firstly, I will give a brief update on the Kingfish 2018 financial year, and then
Kingfish’s Senior Portfolio Manager, Sam Dickie will review the Kingfish portfolio.
After the Manager’s Review, we will have a Q&A session, and will then move to the formal business
of the meeting. There are three resolutions for you to consider and vote on today, which are set out
in the notice of meeting.
[Slide: Introductions]
Let me introduce the front table.
Firstly, the directors. To my right is Carmel Fisher, then Andy Coupe and Carol Campbell.
Next to Carol is Sam Dickie, Senior Portfolio Manager for Kingfish. Next to Sam, is Jody Kaye, the
Corporate Manager for Kingfish.
Senior Investment Analyst, Zoie Regan and Investment Analyst, Matt Peek are also in the audience
today, please stand Zoie and Matt.

We are also pleased to have representatives from our share registrar, Computershare, auditor,
PricewaterhouseCoopers, our tax agent, Deloitte and our legal advisors, Bell Gully in the audience
today.
[Slide: Chair’s Overview]
Shareholders, it is my pleasure to again present the Chair’s Overview at this meeting.
[Slide: Kingfish’s Investment Objective]
Before we begin the review of the year ended 31 March 2018, it is useful to refresh ourselves as to
the key investment objectives of Kingfish, namely:
 to achieve a high real rate of return, comprising both income and capital growth, within risk
parameters acceptable to the directors; and
 to provide access to a diversified portfolio of New Zealand quality, growth stocks through a
single tax-efficient investment vehicle.
Both of these objectives were achieved for the 2018 financial year.
The Board is committed to strong governance principles and to overseeing the Manager’s portfolio
performance on behalf of shareholders. The Investment Committee meets twice a year, on a six
monthly basis, to hear from the Manager about what has gone well and what has disappointed, and
to engage in a comprehensive review session covering key performance metrics, some of which we
will go through on the following slides. The Board meets formally six times per annum plus other
meetings as required.
We are pleased to report that Kingfish has reported a strong net profit result and a strong absolute
return for the 2018 financial year which I will highlight further on the next slide and which Sam will
discuss in more detail in the Manager’s Review.
[Slide: 2018 Overview]
So how has 2018 treated shareholders?
Kingfish delivered a very strong net profit of $36.3m for the 2018 financial year, well ahead of last
year’s net profit result of $22.4m.
Total shareholder return was 12.0% for the period, well ahead of the 2017 total shareholder return
of 8.1%.
Kingfish’s regular dividends continued to contribute to the total shareholder return with 11.28 cents
per share paid in dividends during the 2018 financial year, which is equivalent to a dividend return of
+8.7% (2016: +8.5%).
Due to the strong performance in 2018, the overall net asset value (NAV) per share grew from $1.40
(as at 31 March 2017) to $1.45 (as at 31 March 2018) – even after dividends were paid out.
The adjusted NAV return was +14.7% for the period which represents the net return to an investor
after fees and tax, significantly ahead of the 2017 result of 10.6%. The increase in return was largely
driven by stronger portfolio performance.

Over the 2018 financial year, the share price to NAV discount widened from 7.0% (31 March 2017) to
11.2% at its widest, before narrowing slightly to be 9.7% (31 March 2018). Since year end, the share
price to NAV discount has continued to fluctuate.
The Board has a number of initiatives in place to help manage the share price to NAV discount
including the buyback programme. Over the 12 months to 31 March 2018, 2.4m Kingfish shares
were purchased under the buyback programme when the shares were trading at sufficiently deep
discounts. Shares purchased under the buyback programme are held as treasury stock and primarily
utilised under the dividend reinvestment plan.
[Slide: Use of Shareholder Funds]
The chart shows the Kingfish NAV of $220m (as at 31 March 2017) increased $56m to $276m (as at
31 March 2018).
The movements during the year as represented by the blue and yellow columns were:
 plus $36m net profit,
And movements due to our capital management initiatives:
 plus $35m for new capital raised through the warrant issue (exercise date May 2017),
 less $21m dividends paid,
 adding back $8m for dividends reinvested by shareholders, and
 less $3m for buybacks.
As per the terms of the Management Agreement, Kingfish issued the Manager 840,523 shares for
consideration of $1,216,103 in relation to the performance fee payment obligations.
[Slide: Quarter 1, 2019]
The first quarter of Kingfish’s 2019 financial year has been relatively settled and markets have risen.
This slide provides a snapshot of the first three months of the current financial year to 30 June 2018:
 Total shareholder return for the quarter was +8.4% - primarily driven by share price
increasing from $1.31 (31 March) to $1.39 (30 June).
 As at 30 June, the NAV per share was $1.52 ($1.45 as at 31 March) – an increase of 7 cents in
three months and after a dividend of 2.89 cents per share was paid on 29 June.
 The adjusted NAV return for the first three months of the 2019 financial year was +7.2%
(which represents the net return to an investor after fees and tax).
 This performance to date, translates to a net profit of $21.1m for the three months to 30
June.
[Slide: Warrants]
At last year’s ASM we talked about the Kingfish warrant issue (“KFLWD”) which resulted in $35.2m
(before costs) being raised for further investment by Kingfish in May 2017. That warrant issue was
very successful with 29.1m warrants (76%) exercised at an exercise price of $1.21, well below the

Kingfish share price at the time of $1.32 representing a gain of 11 cents per share for those holders
who exercised their warrants. Since then, the Kingfish share price has risen a further, closing at $1.39
on 30 June 2018.
Since Kingfish’s 31 March 2018 balance date, the Board has approved a new tranche of warrants.
Similar to previous warrant issues, the new warrants were issued to eligible shareholders on the
basis of one warrant for every four Kingfish shares held on the Record Date (18 July 2018).
Warrants give holders the right, but not the obligation, to purchase additional shares in Kingfish at
an exercise price of $1.37, less dividends declared between the date of allotment of the Warrants
and ending on the last business day before the final exercise price is announced. The final exercise
price will be announced next year in June.
Warrant holders have the option to exercise their warrants, sell their warrants on market or let their
warrants lapse. All warrants must be exercised by 12 July 2019. Any warrants not exercised by 12
July 2019 will lapse.
Warrants were quoted on NZX Main Board last Friday (20 July) as KFLWE.
Closing remarks
In closing, on behalf of the Board, thank you shareholders for your continued support of Kingfish. I
will now hand over to Sam Dickie, Senior Portfolio Manager of Kingfish.
ENDS