Kingfish ASM Presentation 20 August 2020

ANNUAL MEETING
OF SHAREHOLDERS
Kingfish Limited
20 August 2020

Board of Directors
Kingfish Team
Alistair RyanCarmel Fisher
Andy Coupe
Carol Campbell
Sam Dickie
Snr Portfolio Manager
Matt Peek
Investment Analyst
Wayne Burns
Corporate Manager

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

ONLINE ATTENDEES –QUESTION
PROCESS
•When the Question function is available,
the Q&A icon will appear at the top of
the app.
•To send in a question, simply click in the
‘Ask a question’ box, type your question
and the press the send
arrow
•Your question will be sent
immediately for review

Chair’s Overview
•April 2019 –January 2020
•February –March 2020
•April –20 August 2020
•$1.37 to $1.68 plus divs, warrants

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

Corporate Governance
•Board meetings
•Investment Committee meetings
•Audit & Risk Committee meetings

2020 Overview
Net profitDividendNAV per shareShare price
$1.7m
(2019: $47.1m)
12.63cps
(2019:11.76cps)
$1.39
(2019: $1.57)
$1.29
(2019: $1.35)
Total shareholder
return*
Dividend return
Adjusted NAV
return*
Share price
discount to NAV^
+7.2%
(2019: 13.5%)
+9.4%
(2019: +9.0%)
+0.4%
(2019: 17.6%)
6.7%
(2019: 13.1%)
*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 to NAV (including warrant price on a pro-rated basis).

2020 Overview –Continued
Portfolio Performance
For the year ended
31 March
12 months
3 years
(annualised)
5 years
(annualised)
Adjusted NAV
return*
+0.4%
(2019: +17.6%)
+10.6%+11.1%
Gross performance *
+2.9%
(2019: +21.2%)
+13.3%+13.8%
Benchmark Index^
(0.5%)
(2019: +18.3%)
+10.8%+10.9%
*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.
^ The S&P/NZX50G Index

Earnings per share
Earnings
per
Share
20202019201820172016
Basic
Earnings
per Share
(cents)
0.7524.2419.6214.5016.71
Diluted
Earnings
per Share
(cents)
0.7523.8119.5114.1316.43

Use of Shareholder’s Funds

First Four Months, FY 2021
1 April –31 July 2020
Total shareholderreturn*
+34.4%
Adjusted NAV return*
+26.9%
NAV per share 31 July 2020
$1.73
Share price 31 July 2020
$1.69
Net profit
$92.6m
*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
•Capital Management Programme
•61.6m KFLWF warrants issued March 2020
•Exercise price is $1.64 less the dividends
declared over approx. a 12 month period
•Exercise date is 12 March 2021

Sam Dickie
Senior Portfolio Manager
Manager’s Review

•50+ years of Research + Development
•Leading edge innovator
•99% of products sold outside of NZ
•300%+ growth in core product recently
•CEO worked for company for 37 years.
Who am I?..

Agenda
1.FY2020 review & COVID-19
2.Active management more
important than ever
3.Portfolio insights
4.Outlook

1.FY2020 & COVID-19

Unprecedented Stimulus
30 March 201930 June 201930 September 201931 December 201931 March 202030 June 2020
Roller-Coaster Year for the NZ market
Note: S&P/NZX50G index; Source: Bloomberg
FY2020 financial year
2
Global Pandemic
1
Solid global growth

COVID-19 = Structural Change
0%
5%
10%
15%
20%
25%
30%
20092010201120122013201420152016201720182019
April 2020
US Ecommerce % of Retail Sales
Source: Bank of America

+2.9%
-0.5%
-1%
-
+1%
+2%
+3%
Kingfish gross
performance return
S&P/NZX50G index
Fiscal year to 31 March 2020
Manager performance FY2020
Late COVID-19 Impact on performance

+33.1%
+19.1%
+15%
+20%
+25%
+30%
+35%
Kingfish gross
performance return
S&P/NZX50G index
Fiscal year FY2021 to date as at 31 July 2020
Strong performance FY2021 so far

-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
Vista
Auckland Airport
Freightways
Summerset
Delegat
Ryman Healthcare
Mainfreight
Infratil
Meridian Energy
Pushpay Holdings
Port Of Tauranga
A2 Milk
F&P Healthcare
Portfolio company return (year to 31 March 2020*)
Portfolio company performance
Note: *Only shows positions held at 31 March 2020. Source: Bloomberg

2. Active Management
more important than ever

Segmented portfolio = staying nimble
Bucket 1
Beneficiaries
Bucket 2
Bucket 3
Bucket 4
Defensives
Cyclicals
Eye of the storm
Also (outside our portfolio):
• Retail • Airlines
• Hospitality • Tourism
• Entertainment

Stock Pickers Paradise
12.1%
19.1%
33.1%
5.1%
1.9%
-
+5%
+10%
+15%
+20%
+25%
+30%
+35%
F&P Healthcare
contribution
a2 Milk
contribution
Everything else
contribution
S&P/NZX50G
index
Kingfish
Gross return
Performance 31 March 2019 to 31 July 2020

3. Portfolio insights

Ongoing Upgrade to Quality
Decreases
(-7.5%)
Increases
(+14.5%)
Exits
(-3.0%)
Entries
(+0%)
LargerSmaller
Note: 31 March 2019 until present, logos show target weight changes of 1% or larger only

0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
200%
2015A2016A2017A2018A2019A2020A2021F
What went especially well
Source: Company data and estimates
Hospital Hardware Units Sales Annual Growth

What went especially well
% of Customers Giving via App
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
January 2016
April 2016
July 2016
October 2016
January 2017
April 2017
July 2017
October 2017
January 2018
April 2018
July 2018
October 2018
January 2019
April 2019
July 2019
October 2019
January 2020
April 2020
Monthly6 Month Average
A2M Share of Online Bestsellers
Source: Chart on left -Company Data and estimates. Chart on Right –UBS New Zealand
0%
10%
20%
30%
40%
50%
60%
70%
80%
Pre-COVID-19During COVID-19

0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
March 2019
April 2019
May 2019
June 2019
July 2019
August 2019
September 2019
October 2019
November 2019
December 2019
January 2020
February 2020
March 2020
April 2020
May 2020
June 2020
What went against us?
Source: Chart on left -BoxOfficeMojo.com. Data on right –Company data
US Monthly Box Office
$0
$200,000,000
$400,000,000
$600,000,000
$800,000,000
$1,000,000,000
$1,200,000,000
$1,400,000,000
March 2019
April 2019
May 2019
June 2019
July 2019
August 2019
September 2019
October 2019
November 2019
December 2019
January 2020
February 2020
March 2020
April 2020
May 2020
June 2020
Monthly International Passengers

4.Outlook

Outlook: Active Management = Critical
•New Zealand economy was humming....
•....but most expect some slowdown
•We retain a healthy balance between
being nimble (honed during COVID) and
thinking long term
•Active portfolio management more
important than ever

....I am Fisher & Paykel Healthcare
Source: Bloomberg (in NZD), total return of FPH NZ EQUITY 31 March 2010 to 30 June 2020
Total Shareholder Return since March 2010
-50%
150%
350%
550%
750%
950%
March 2010March 2011March 2012March 2013March 2014March 2015March 2016March 2017March 2018March 2019March 2020

General Questions from
Shareholders
(not relating to resolutions)

ONLINE ATTENDEES –VOTING PROCESS
•When the poll is open, the vote will
be accessible by selecting the
voting icon at the top of the screen
•To vote simply select the direction in
which you would like to cast your
vote, the selected option will change
colour.
•There is no submit or send button,
your selection is automatically
recorded.

Annual Meeting
2020 resolutions

2020 Annual Meeting Resolutions
•Introduce and propose
•Discussion, questions
•Lodge your vote per the digital portal

Matters of Business
•Annual Report
•Resolutions:
–Re-elect Andy Coupe
–Auditor remuneration

Resolution 1
Re-election of Andy Coupe
To re-elect Andy Coupe as a Director of
Kingfish Limited

Resolution 2
Auditor Remuneration
That the Board of Directors be authorised to
fix the remuneration of the auditor for the
ensuing year

Conclusion
•Enter your votes via the digital portal
•Results to NZX

Thank you

---

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

20 August 2020
Kingfish Limited Annual Meeting
Chair’s Address from Alistair Ryan
[Slide: Kingfish Limited Annual Meeting of Shareholders]
Welcome to the 16th Kingfish Annual Meeting of Shareholders and indeed the first virtual meeting
of shareholders.
Unfortunately we are not able to meet in person this year and we have had limited time to switch
from a physical meeting to a virtual meeting. We have had to move quickly to recalibrate the
meeting and I trust that all the technology and other aspects will work well for all of us today.
An annual meeting is an important event in a company’s calendar and we are committed to making
sure this online version of our meeting is as close to the in-person meeting as we can get. Inevitably
the online format is different to the in-person meeting format but, on the upside, the online option
will have enabled many shareholders, who would otherwise not have been able to be in Auckland, to
attend this year’s meeting.
Let me introduce myself. 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 on line so I can declare the meeting open.
[Slide: Introductions]
Directors Carmel Fisher (on my left) and Carol Campbell (second on my right) and our portfolio
manager Sam Dickie (on my immediate right) are participating in this telecast in person with me
today, and we have director Andy Coupe and Investment Analyst Matt Peek on line.
Andy is based in Tamahere in the Waikato so is prohibited from travelling to Auckland to join us in
the Fisher boardroom for this meeting.
I would like to thank Fisher Funds for making their boardroom available to us for this presentation
today.
Also connected to this meeting are representatives from our share registrar, Computershare,
auditor, PricewaterhouseCoopers, our tax agent, Deloitte and our legal advisors, Bell Gully.
[Slide: Agenda]
The agenda for today.
Firstly preliminary matters:
• The minutes of the 2019 annual shareholders’ meeting held on 31 July 2019 are available on
the Kingfish website.
• The 2020 annual report has been circulated to shareholders – and can be found on the
Kingfish website.

Today I’ll give a brief update on the Kingfish 2020 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 two resolutions for you to consider and vote on today, which are as set
out in the notice of meeting.
[Slide: Online Attendees – Question Process]
Before we start though, a bit of guidance on how to submit any questions.
You should be able to see a Q&A icon at the top centre of your screen.
To send in a question, simply click in the “Ask a Question” box, type your question and press the
send arrow.
Your question will be sent immediately to us.
This method won’t allow you to take into account any questions already asked, as would be the case
normally at a physical meeting. Because of this Wayne Burns, our Corporate Manager, is on hand
and will be consolidating any duplications and overlaps so that we don’t end up with an inefficient
sequence of questions covering much the same topic or issue.
We’ve set aside a time at the end of the two presentations for general questions relating to the
operations and management of the business.
For today’s meeting, you can submit your questions at any time during the meeting – up until we
close the questions session.
Questions relating to the two resolutions will be dealt with in conjunction with each of those
resolutions.
To facilitate this, being our first online ASM, can we ask that shareholders limit themselves to a
maximum of two questions please.
We’d also like to point out that general shareholder questions, not covered at this meeting, can also
be sent to the company via the website via enquire@kingfish.co.nz and we will endeavour to answer
them as they are received.
[Slide: Chair’s Overview]
It is my pleasure to again present the Chair’s Overview at this meeting.
And it was certainly a turbulent period of ups, downs and ups.
As Kingfish shareholders we gained strongly up until the middle of February, with the Kingfish share
price reaching $1.76 on the 20th of February, then we dropped rapidly and significantly to $1.05 on
23 March. These were volatile and uncertain times. One could even use the word “unprecedented”.
But all of that is starting to feel like a somewhat distant memory now (hopefully), with share price all
but back to the 20 February record high point, closing last night at $1.68.
This April 2019-August 2020 period has definitely been a twist on the popular adage of a game of
two halves.

If we think of the last 16 plus months from April last year to now, it was certainly a sequence of
three distinct phases, one of strong and consistent upwards growth, followed by two months of a
very sharp correction, followed by a steady and almost complete recovery of the ground lost in
February and March.
As shareholders are well aware, markets can be volatile especially over short periods and this was
certainly the case this year. And they may, of course, prove to be again. The future is pretty unclear
at the present time.
Somewhat unfortunately for Kingfish with a 31 March balance date, two of the three phases fell in
FY20 but the third, the recovery phase, occurred in the current year as we moved into FY21.
This 31 March financial year cut-off shows in our adverse result for the 12 month period but I am
sure shareholders will be taking a less clinical and time-bound view of the underlying performance of
their portfolio. I’m sure many of you will keep that accident of financial year timing in mind as we
move through today’s agenda.
As Kingfish shareholders, we started the FY20 financial year on 1 April 2019 at a share price of $1.37,
but during the subsequent 16 month period until last night’s closing, we have seen our share price
rise 31 cents to $1.68, we have received 5 quarterly, tax-effective dividends totaling just under 16
cents per share, and we had the opportunity to buy additional shares in Kingfish in July last year via
the warrants programme, at $1.25.
All of this this translates to a net gain (allowing for one warrant for every four shares) of 57 cents on
a starting position of $1.37.
This is an excellent return for shareholders in what could best be described as a period of significant
market instability.
And it clearly demonstrates how well the Kingfish portfolio is constructed and managed, based on a
rigorous and robust investment approach, which has held your investment in good stead during the
last 16 months.
So let’s have a quick review of our investment objectives.
[Slide: Kingfish’s Investment Objective]
As directors, and managers, we typically start our annual meetings with a quick reminder of what we
are here to achieve, being
• 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.
In respect of both objectives, in the context of the comments I have just made relating to the period
April last year until now, the directors are pleased to validate that our two fundamental investment
objectives have been met and are being met consistently, year on year.

[Slide: Kingfish’s Corporate Governance]
Turning now to corporate governance...
The board is committed to strong governance principles and to overseeing the Manager’s portfolio
performance on behalf of shareholders.
In a normal year the board generally meets formally six times per annum, plus other meetings as
required, but during the initial period of the COVID-19 crisis, when market volatility was at its peak
(March and through April 2020), the board scheduled a number of additional meetings with the
Manager to check that appropriate risk management processes and procedures, including rigorous
application of the STEEPP process, were being adhered to.
These additional meetings enabled the board to monitor and closely oversee the portfolio
management process undertaken by the Manager as part of its mandated approach.
In addition to the special meetings referred to above, 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 Kingfish Audit and Risk Committee generally meets twice a year, on a six monthly basis, to
review the company’s financial reporting, internal controls and risk management systems, and to
meet with the external auditor and receive their report on both the interim and year end accounts.
The Kingfish 2020 result was announced in June, but I’ll highlight some of the key performance
measurements on the next slide, and Sam will discuss the underlying performance in his
presentation.

[Slide: 2019 Overview]
• As already mentioned the Kingfish year end at 31 March 2020 coincided with what can
now be seen as the then low point in the NZ sharemarket’s reaction to the first phases
of the COVID-19 pandemic

• At the end of January 2020 Kingfish was on track for a record year with NPAT of $62m,
however just two months later almost all of those previous gains had been eroded,
with net profit ending up at just $1.7m, well below the strong net profits of previous
years and the $47.1m recorded for the 2019 financial year

• We will come to the summary of the first four months of the FY21 year shortly and
shareholders will see that the profits lost in February and March have been more than
retrieved in the subsequent months

• The return ratios inevitably reflect the impact of the February/March downturn period
but we are pleased to point out that we maintained our quarterly sequence of
dividends despite the turmoil. We were able to maintain our dividends and that
remains our clear intention

[Slide: 2019 Overview - Continued]
This chart compares
the Adjusted NAV return, (the net return to an investor after expenses, fees and tax), and
the gross performance return (the return before expenses, fees and tax),
to the benchmark index return over the periods of 1, 3 and 5 years.
While returns were down for the most recent financial year, compared to previous periods, the
Kingfish portfolio has consistently matched or bettered the benchmark index.
Sam will discuss the New Zealand sharemarket dynamics and how the portfolio performed shortly in
the Manager’s Review.


[Slide: Basic and Diluted Earnings per Share]
• Given the increase in the number of shares through the warrants and dividend reinvestment
programmes, it is pleasing to note the growth in Earnings per Share through FY16 to FY19
• The sharemarket downturn at the end of the 2020 financial year inevitably had a dramatic
impact on the FY20 earnings per share, reporting at only 0.75 cps - an historically unusual,
but what has proved to have been a temporary result at least this far into FY21
• Yet again, a potent reminder of how variable sharemarket returns can potentially be and the
degrees of volatility that equity markets can experience from time to time

[Slide: Use of Shareholder Funds]
Turning now to Shareholders’ Funds
Despite the chaos of the last two months of FY20, this chart shows the Kingfish NAV of $310m (as at
31 March 2019) increased by a net $35m to $345m (as at 31 March 2020).
The movements during the year as represented by the blue and yellow columns were:
- plus $1.7m net profit,
And movements due to capital management initiatives:
- Warrant funds invested of $52m
- less $29m dividends paid, but adding back $11m for dividends reinvested by
shareholders, and
- less $0.6m for buybacks.

[Slide: First four months, FY 2021]
The first four months of the new financial year show the significant NZ sharemarket rally post the
COVID-19 pandemic and lockdown sell-off.
This chart clearly shows that the Kingfish portfolio has performed strongly over the last quarter in
particular.
This slide provides a snapshot of the first four months of the current financial year to 31 July 2020:

• Total shareholder return for the quarter was +34% - driven by the share price increasing
from $1.29 (31 March) to $1.69 (31 July).
• As at 30 July, the NAV per share was $1.73 ($1.39 as at 31 March) – an increase of 34
cents in four months and after a dividend of 3.06 cents per share paid on 26 June.
• The adjusted NAV return for the first four months of the 2021 financial year was
+26.9% (which represents the net return to an investor after expenses, fees and tax).
• This performance to date, translates to a net profit of $92.6m for the four months to 31
July.
• In assessing the YTD Net Profit of $92.6m, it is appropriate to consider the 16 month
period since 1 April last year which would annualise at approx $69m. FY20 was
adversely impacted by COVID crisis impact in February/March and FY21 YTD has
benefitted from the subsequent recovery from that low point.

[Slide: Warrants]
Kingfish has an ongoing warrant programme as part of its overall capital management programme.
The last warrant issue exercised in July last year and in March this year, a further warrant issue was
initiated.
In March Kingfish issued 62m new warrants to shareholders. These warrants have an exercise date
of 12 March 2021.
The exercise price is set at $1.64, less four dividends. Two dividends totalling 6.3 cents per share
have already been declared and paid, and it is expected that two further dividends (probably in the
order of 3 cents each, making approximately 12 cents for the year) will occur and be deducted, in
order to arrive at the final exercise price for the warrants.
The 2020 warrants represent a potential gain for shareholders at the anticipated/final exercise price,
but that will, of course, depend on the share price at the exercise date in March next year.
It is worth noting that the previous warrant issue, (exercised in July 2019), saw $52m of new funds
invested into the Kingfish portfolio, with 87% of the 48m warrants exercised.
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