KFL – September 2020 monthly update

1
A WORD FROM THE MANAGER
In August Kingfish returned gross performance of +2.7%
and an Adjusted NAV return of +2.6%. This compares to our
benchmark (S&P/NZX50G) which was up +1.8%.
a2 Milk delivered its fiscal 2020 result in line with the middle
of its guidance range but slightly behind expectations, as
investors have become accustomed to the company over-
delivering. This was a result of more pantry destocking than
expected, following the impact of COVID in China, which had
constrained sales. The company guided towards “continued
strong revenue growth” supported by increased marketing
and initiatives to improve performance in the mother and
baby store channel in China.
We added Contact Energy to the portfolio during the month.
Contact is an example of “quality on sale” and is a solid
defensive business with an improving track record. Rio Tinto
has terminated its power supply contract and announced it
will close the Tiwai Point aluminium smelter in August 2021
(a “hard exit”), which has impacted Contact’s share price.
Following the closure of the smelter, Contact will shut its
breakeven Taranaki Combined Cycle gas power plant and
move to 100% renewable baseload electricity generation,
supplemented with gas generation to satisfy peak demand
(which will become more valuable over time with more
renewables). We believe the “hard exit” scenario was largely
reflected in the Contact share price, limiting downside risk.
However, we think there is significant upside value in the case
the smelter negotiates a longer timeframe for exit. We think
this has recently become a higher probability after a multi-
year offer of lower electricity prices from Meridian, which
has rekindled Rio Tinto and government interest. Longer-term,
Contact will benefit from being able to move hydro power
northwards as grid upgrades take place. The company
also has an attractive generation development option in its
Central North Island geothermal field at Tauhara. Contact has
historically traded at a discounted valuation versus its pure-
renewable sector peers (Meridian and Mercury), which we
think also has the potential to narrow over time.
Delegat delivered a strong fiscal 2020 result, with case sales
boosted by COVID related lockdowns. Initial guidance for
next fiscal year is for net profit of $60-65 million, in line with
our expectations. We think Delegat can continue to grow
case sales in its key markets as New Zealand sauvignon
blanc continues to grow off a low base in the US and the
company increasingly sells other varietals like pinot gris,
leveraging its strong brand recognition.
Fisher & Paykel Healthcare provided an update at its Annual
Shareholders’ Meeting. Sales in July accelerated versus the
June quarter results, with hospital hardware sales for the
first four months of +390% (versus over +300% for the June
quarter) and consumables of +48% (versus over +33% in
the June quarter). We had expected this continued strong
performance as the global COVID infections and deaths
have sadly not tracked down in line with the company’s
“assumptions”.
Freightways reported its fiscal 2020 result and provided
a solid update on trading in its New Zealand express
package business. Network courier volumes has grown
at a strong +11% year on year in the first 7 weeks of the
new financial year. Firstly, Freightways has gained market
share from competitors who performed poorly during the
COVID affected period as their shippers experienced long
delays. Secondly, there has been a wave of new shippers
who are now increasingly trying to reach their customers via
ecommerce as part of a permanent shift post COVID.
Summerset announced its first half 2020 results. The key
positive was a very strong uplift in sales from mid May until
the start of August (before Auckland moved to COVID Alert
Level 3). The duration of the uplift gives confidence that
Summerset’s success in keeping residents safe during COVID
is driving a permanent uplift in penetration for retirement
villages which will be positive in the medium term.
1
Share Price Premium to NAV (including warrant price on a pro-rated basis and using NAV to four decimal places)
MONTHLY UPDATE
September 2020
KFL NAV
$
1. 7 7
$
1. 7 5
Share Price
PREMIUM
1
WARRANT PRICE
0.6
%$
0 .1 4
as at 31 August 2020

2
KEY DETAILS
as at 31 August 2020
FUND TYPE
Listed Investment Company
INVESTS IN
Growing New Zealand
companies
LISTING DATE
31 March 2004
FINANCIAL YEAR END
31 March
TYPICAL PORTFOLIO SIZE
10-25 stocks
INVESTMENT CRITERIA
Long-term growth
PERFORMANCE
OBJECTIVE
Long-term growth of capital and
dividends
TAX STATUS
Portfolio Investment Entity (PIE)
MANAGER
Fisher Funds Management Limited
MANAGEMENT
FEE RATE
1.25% of gross asset value
(reduced by 0.10% for every
1% of underperformance
relative to the change in the NZ
90 Day Bank Bill Index with a
floor of 0.75%)
PERFORMANCE
FEE HURDLE
Changes in the NZ 90 Day Bank
Bill Index + 7%
PERFORMANCE FEE
10% of returns in excess of
benchmark and high water mark
HIGH WATER MARK
$1.34
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
250m
MARKET CAPITALISATION
$438m
GEARING
None (maximum permitted 20%
of gross asset value)
SECTOR SPLIT
as at 31 August 2020
6
%
29
%
HEALTH CARE
17
%

UTILITIES
INFORMATION
TECHNOLOGY
32
%
INDUSTRIALS
14
%
CONSUMER
STAPLES
The Kingfish portfolio also holds cash
Sam Dickie
Senior Portfolio Manager
Fisher Funds Management Limited
Vista reported, as expected, a weak first half 2020 result, as
cinemas around the world were closed due to COVID. The
company had hunkered down and reduced monthly cash
burn to $3-4 million with an unexpectedly high $75 million
net cash on the balance sheet at the end of June. The outlook
is more positive, with 70-80% of cinemas globally now open.
Vista has stayed close to its customers during this period,
including deploying a “reopening kit” to facilitate social
distancing and contactless purchasing for its moviegoers. We
think that the company is likely to continue to take market
share from weakened competitors over the next few years.

33
TOTAL SHAREHOLDER RETURN to 31 August 2020
Mar
2004
Mar
2006
Mar
2007
Mar
2008
Mar
2009
Mar
2010
Mar
2011
Mar
2012
Mar
2014
Mar
2015
Mar
2013
Mar
2016
Share Price/Total Shareholder Return
$
3.00
$
4.00
$
5.00
$
6.00
$
7.00
Share PriceTotal Shareholder Return
$
1.00
$
2.00
$
0.00
Mar
2017
Mar
2018
Mar
2019
Mar
2020
Mar
2005
AUGUST’S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO
during the month
Typically the Kingfish portfolio will be invested 90% or more in equities.
The remaining portfolio is made up of another 9 stocks and cash.
5 LARGEST PORTFOLIO POSITIONS as at 31 August 2020
VISTA GROUP
+43
%
SUMMERSET
+11
%
PUSHPAY HOLDINGS
+10
%
DELEGAT GROUP
+8
%
A2 MILK
-11
%
FISHER & PAYKEL
HEALTHCARE
17
%
MAINFREIGHT
17
%
INFRATIL
13
%
THE A2 MILK
COMPANY
11
%
SUMMERSET
9
%
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+4.3%+13.3%+35.1%+22.8%+16.3%
Adjusted NAV Return+2.6%+13.2%+25.4%+18.5%+17.9%
Portfolio Performance
Gross Performance Return+2.7%+14.4%+29.3%+21.7%+21.1%
S&P/NZX50G Index+1.8%+9.7%+11.0%+15.2%+16.1%
Non-GAAP Financial Information
Kingfish uses non-GAAP measures, including adjusted net asset value, adjusted NAV return, gross performance return and total shareholder return. The rationale for using such non-GAAP measures is as follows:
»adjusted net asset value – the underlying value of the investment portfolio adjusted for capital allocation decisions after expenses, fees and tax,
»adjusted NAV return – the net return to an investor after expenses, fees and tax,
»gross performance return – the Manager’s portfolio performance in terms of stock selection, before expenses, fees and tax, and
»total shareholder return – the return combines the share price performance, the warrant price performance, the net value of converting any warrants into shares, and the dividends paid to shareholders. It
assumes all dividends are reinvested in the company’s dividend reinvestment plan, and that shareholders exercise their warrants, (if they were in the money), at warrant expiry date.
All references to adjusted net asset value, adjusted NAV return, gross performance return and total shareholder return in this monthly update are to such non-GAAP measures. The calculations applied to non-GAAP
measures are described in the Kingfish Non-GAAP Financial Information Policy. A copy of the policy is available at http://kingfish.co.nz/about-kingfish/kingfish-policies/
PERFORMANCE to 31 August 2020

Disclaimer: The information in this update has been prepared as at the date noted on the front page. The information has been prepared as a general summary of the matters covered only, and it is by
necessity brief. The information and opinions are based upon sources which are believed to be reliable, but Kingfish Limited and its officers and directors make no representation as to its accuracy or
completeness. The update is not intended to constitute professional or investment advice and should not be relied upon in making any investment decisions. Professional financial advice from an authorised
financial adviser should be taken before making an investment. To the extent that the update contains data relating to the historical performance of Kingfish Limited or its portfolio companies, please note that
fund performance can and will vary and that future results may have no correlation with results historically achieved.
Kingfish Limited
Private Bag 93502, Takapuna, Auckland 0740
Phone: +64 9 489 7094 | Fax: +64 9 489 7139
Email: enquire@kingfish.co.nz | www.kingfish.co.nz
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Computershare Investor Services Limited
Private Bag 92119, Auckland 1142
Phone: +64 9 488 8777 | Fax: +64 9 488 8787
Email: enquiry@computershare.co.nz | www.computershare.com/nz
ABOUT KINGFISH
Kingfish is an investment company
listed on the New Zealand Stock
Exchange. The company gives
shareholders an opportunity to
invest in a diversified portfolio
of between 10 and 25 quality
growing New Zealand companies
through a single, professionally
managed investment. The aim
of Kingfish is to offer investors
competitive returns through capital
growth and dividends
CAPITAL MANAGEMENT STRATEGIES
Regular Dividends
»Quarterly distribution policy introduced in
June 2009
»Under this policy, 2% of average NAV is targeted
to be paid to shareholders quarterly
»Dividends paid by Kingfish may include dividends
received, interest income, investment gains
and/or return of capital
»Shareholders who prefer to have increased
capital rather than a regular income stream have
the opportunity to participate in the company’s
dividend reinvestment plan (DRP)
»Shares issued to DRP participants are at a 3%
discount to market price
»Kingfish became a portfolio investment entity on
1 October 2007. As a result, dividends paid to
New Zealand tax resident shareholders have not
been subject to further tax
Share Buyback Programme
»Kingfish has a buyback programme in place
allowing it (if it elects to do so) to acquire its shares
on market
»Shares bought back by the company are held as
treasury stock
»Shares held as treasury stock are available to be
re-issued for the dividend reinvestment plan
MANAGEMENT
Kingfish’s portfolio is managed
by Fisher Funds Management
Limited. Sam Dickie (Senior Portfolio
Manager), Matt Peek (Senior
Investment Analyst), and Michael
Bacon (Senior Investment Analyst)
have prime responsibility for
managing the Kingfish portfolio with
the assistance of Luke O’Donovan
(Quantitative Analyst). Together they
have around 50 years combined
experience and are very capable
of researching and investing in the
quality New Zealand companies that
Kingfish targets. Fisher Funds is based
in Takapuna, Auckland.
BOARD
The Manager has authority
delegated to it from the Board
to invest according to the
Management Agreement and
other written policies. The
Board of Kingfish comprises
independent directors Alistair
Ryan (Chair), Carol Campbell,
Andy Coupe and Carmel
Fisher.
Warrants
»On 5 February 2020 a new issue of warrants
(KFLWF) was announced
»The warrants were issued at no cost to eligible
shareholders and in the ratio of one warrant for every
four Kingfish shares held
»The warrants were allotted to shareholders on 9
March 2020 and the warrants were listed on the
NZX Main Board from 10 March 2020. (Information
pertaining to the warrants was mailed/emailed to
shareholders in February 2020)
»The Exercise Price of each warrant is $1.64, to be
adjusted down for dividends declared during the
period up to the announcement of the Exercise Price.
»The Exercise Date for the new warrants (KFLWF) is
12 March 2021
»The final Exercise Price will be announced and an
Exercise Form will be sent to warrant holders in late
January 2021