KFL – December 2021 monthly update

1
A WORD FROM THE MANAGER
In November, Kingfish’s gross performance return was
down (3.2%) and the adjusted NAV return was also down
(3.2%). This compares with the local market benchmark
index return, the S&P/NZX50G, which was down (2.9%).
Market Update
New Zealand equities, as measured by S&P/NZX 50
index, underperformed major global equity markets (MSCI
World -2.2%, S&P 500 -1.0%, S&P/ASX 200 -0.5%). The
weakness reflected a combination of concerns. Higher
interest rates mean investors are placing a lower valuation
on defensive companies such as Contact Energy and
Meridian. Summerset and Ryman have seen their share
prices fall as their businesses are exposed to the slowing
New Zealand housing market. A COVID resurgence
globally is a threat for reopening beneficiaries such as
Vista. The Kingfish portfolio slightly underperformed the
benchmark index, during a busy month that saw many
portfolio companies report their first half results for the
2022 fiscal year.
The Portfolio
Fisher & Paykel Healthcare (+7%) reported a strong first
half result, ahead of expectations, boosted by another
wave of COVID hospitalisations in the US, Asia, and
certain countries in Europe. The bulk of the strength was
in sales of new hardware in the Hospital division, which
continues to grow the installed base of F&PH products
in both established and new customers (circa 70% of
hardware sales were outside of the core markets of US/
Europe). There are signs that the step-change due to
COVID will endure and consumables sales will grow off
a higher base as the COVID overlay wanes. In Europe,
where overall hospitalisations were down sharply,
hardware and consumables sales were still well above pre-
COVID levels. Also, around 70% of European hardware
sales were to customers who had already bought devices
the previous year, which suggests a meaningful component
of this is increased frequency of usage and usage outside
the ICU rather than purely COVID. European consumables
sales are well up on pre-COVID levels despite a weaker
COVID wave, which is a good sign for the utilisation of
the higher installed base. We think that there is increasing
weight of evidence to suggest that NHF
2
usage will
structurally increase even as the COVID overlay wanes.
Infratil (-4%) reported its first half result. A key highlight
was the announcement that data centre business CDC has
purchased a new site in Melbourne. They expect to begin
construction in the first half of 2022, contingent on signing
an anchor tenant. The new site will eventually provide 150
megawatts of capacity and takes CDC's total planned
capacity to 700 megawatts. This follows CDC's expansion
into Sydney in 2018 and Auckland earlier in 2021, with
Microsoft as anchor tenant in those locations. Infratil
updated full year 2022 earnings guidance, reducing the
range by -4% at the top end to reflect lockdown impacts on
Wellington Airport, Infratil’s diagnostic imaging businesses
and transaction costs from new acquisitions.
Mainfreight (+1%) reported a strong first half result, ahead
of expectations, with +41% growth in revenue (to $2.3
billion) and +78% growth in profit before tax (to $182m).
Demand continues to be strong since the 30 September
balance date and is expected to continue through
Christmas and into 2022. There was synchronised record
performance and growth in every product and geography,
out of its eight regions and services, the lowest revenue
growth rate was +24% and lowest profit before tax growth
rate was +28% (the highest were +157% and +310%).
There was a volume uplift of +30% in Air & Ocean freight,
so the company is moving significantly more freight, not
just achieving higher rates and margins. The volume in
Transport increased +15%, in spite of Australian and
New Zealand lockdowns during the period. Mainfreight
is capturing market share as a result of superior delivery
execution.
Pushpay (-28%) reported a weak first half result, with
revenues and profits below expectations. This was primarily
due to lower than expected payment processing volumes
in the first quarter of the year. The company attributed this
1
Share Price Premium to NAV (including warrant price on a pro-rated basis and using NAV to four decimal places).
2
Nasal High Flow (NHF) is a non-invasive respiratory support product.
MONTHLY UPDATE
December 2021
KFL NAV
$
1.79
$
1. 9 9
Share Price
PREMIUM
1
12.9
%
as at 30 November 2021
Warrant Price
$
0 .11

2
KEY DETAILS
as at 30 November 2021
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
$1.69
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
316m
MARKET CAPITALISATION
$629m
GEARING
None (maximum permitted 20%
of gross asset value)
SECTOR SPLIT
as at 30 November 2021
5
%
29
%
INDUSTRIALS
21
%
INFORMATION
TECHNOLOGY
35
%
HEALTH CARE
7
%
CONSUMER
STAPLES
The Kingfish portfolio also holds cash

UTILITIES
to lower church attendance during summer in the US as
COVID restrictions eased and people took the opportunity
to take overdue holidays. Digital adoption in church giving
has plateaued after the large increases during COVID,
while new customer signups have also been subdued. The
company also called out wage pressure in the IT sector
which is inflating its costs. Overall the company reduced its
full year guidance for underlying operating profit by -6%.
Ryman Healthcare (-15%) reported its first half result,
however the most notable development was the retirement
of David Kerr as Chair after 27 years. This was a
disappointing development given that the new CEO
Richard Umbers only started in late October and new
Chair Greg Campbell joined the board in March (this
year). Ryman also reported a lockdown-impacted result,
with weaker new sales. The company also tempered
medium-term build rate expectations, indicating it will take
longer to achieve their medium-term goal of adding 1,600
units and care beds annually. Ryman announced a change
in dividend policy to 30-50% of underlying profit (from
Sam Dickie
Senior Portfolio Manager
Fisher Funds Management Limited
50%), which will accelerate the return to normal gearing
levels by a number of years. On the positive side, resales
were at strong levels (+9.6% on the previous half), resales
margins were resilient (at 24%), and there will be a further
+5% increase in unit prices (cumulatively +15% in 2021)
which will benefit earnings and cashflows for years to
come.
Vista (-11%) saw its share price come under pressure
during the month as an increase in COVID lockdowns in
Europe and the emergence of the Omicron variant impacts
the near-term outlook for its exhibitor customers.

33
TOTAL SHAREHOLDER RETURN to 30 November 2021
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
$
8.00
$
9.00
Share PriceTotal Shareholder Return
$
1.00
$
2.00
$
0.00
Mar
2017
Mar
2018
Mar
2019
Mar
2020
Mar
2021
Mar
2005
NOVEMBER’S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO
during the month
The remaining portfolio is made up of another 9 stocks and cash.
5 LARGEST PORTFOLIO POSITIONS as at 30 November 2021
PUSHPAY
−28
%
RYMAN HEALTHCARE
−15
%
SUMMERSET GROUP
−12
%
VISTA GROUP
−11
%
A2 MILK
−7
%
MAINFREIGHT
20
%
INFRATIL
16
%
AUCKLAND
INTERNATIONAL
AIRPORT
15
%
FISHER & PAYKEL
HEALTHCARE
9
%
SUMMERSET
9
%
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return(1.2%)(0.4%)+9.4%+26.2%+19.0%
Adjusted NAV Return(3.2%)(2.8%)+5.7%+19.5%+16.2%
Portfolio Performance
Gross Performance Return(3.2%)(2.5%)+7.4%+22.7%+19.1%
S&P/NZX50G Index(2.9%)(3.8%)(0.4%)+13.0%+13.0%
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 30 November 2021

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 a 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 June 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
4
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
The Manager has authority
delegated to it from the Board to
invest according to the Management
Agreement and other written
policies. Kingfish’s portfolio
is managed by Fisher Funds
Management Limited. Sam Dickie
(Senior Portfolio Manager), Matt
Peek and Michael Bacon (Senior
Investment Analysts) have prime
responsibility for managing the
Kingfish portfolio. 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 Board of Kingfish
comprises independent
directors Alistair Ryan
(Chair), Carol Campbell,
Andy Coupe and David
McClatchy.
Warrants
»Kingfish announced a new issue of warrants on 18
October 2021.
»Information pertaining to the warrants was mailed/
emailed to shareholders on 1 November 2021.
»The warrants were issued at no cost to eligible
shareholders in the ratio of one warrant for every four
Kingfish shares held based on the record date of 12
November 2021.
»The warrants were allotted to shareholders on 15
November 2021 and listed on the NZX Main Board from
16 November 2021.
»The Exercise Price of each warrant is $2.03, adjusted
down for the aggregate amount per Share of any cash
dividends declared on the Shares with a record date
during the period commencing on the date of allotment of
the warrants and ending on the last Business Day before
the final Exercise Price is announced by Kingfish.
»The Exercise Date for the new warrants is 18 November
2022.