KFL – June 2022 monthly update

1
A WORD FROM THE MANAGER
In May, Kingfish’s gross performance return was down
(4.5%) and the adjusted NAV return was down (4.6%). This
compares with the local market benchmark index return, the
S&P/NZX50G, which was down (4.8%).
New Zealand equities declined more than other key
developed share markets in May. The Reserve Bank delivered
a hawkish outlook statement (with a bias to higher interest
rates) and off the back of this the New Zealand dollar
strengthened, which is unhelpful for New Zealand companies
with offshore earnings.
It was a busy month, with most of Kingfish’s March year end
companies updating the market with their results for the 2022
financial year.
a2 Milk (+6%) shares rose after a bacterial contamination
shut down major infant formula player Abbott's factory in
Michigan, exacerbating a nationwide formula shortage in
the US. While a2 doesn't have a US infant formula business,
it has a US liquid milk business, with its strategy being to
potentially use growing brand awareness to move into infant
formula at a later date. This may expedite the necessary FDA
approvals. CFO Race Strauss resigned and is being replaced
by David Muscat, who has worked with CEO David Bortolussi
in previous roles (whereas Race was appointed by former
CEO Jayne Hrdlicka who had similarly worked with him
previously). The simultaneous announcement of the transition
and the known quantity in regard to the incoming CFO,
suggests the transition will be smooth.
Fisher & Paykel Healthcare (-2%) released its results in line
with revised expectations after providing updated guidance
in March. It also announced several new products and hosted
an investor day to demonstrate these and explain the potential
uses and market opportunity. Two of these products, Switch
and Trace, solve problems for anaesthesiologists and facilitate
use of its Optiflow highflow nasal oxygen system in this large
and underpenetrated market. The anaesthesia market is
estimated to be 50 million patients per year and NZ$5 billion
annual sales potential, the same as its hospital respiratory
support segment, which has reached approximately $1
billion sales annually (and growing). The opportunity to
have hospitals fully utilise the large equipment base that the
company deployed through COVID remains a high priority
and the company is growing its sales force to drive greater
usage.
Infratil (-6%) announced its results with earnings overall in line
with expectations, including key assets CDC (Canberra Data
Centres) and Vodafone. CDC is set to deliver another 100MW
of capacity by December 2022, increasing overall capacity
by more than 60%. This will support a large uplift in earnings
next year. The independent valuation of CDC increased +3%
since the December 2021 valuation, as progress continued
at its Melbourne site. Vodafone increased earnings +16%
supported by strong cost management. This business is close
to finalising a sell-down of its telecommunications towers,
which should crystallise an attractive valuation for these
assets. Infratil is also seeing change at the board table, with
long-serving Mark Tume retiring after almost a decade as
Chair, to be succeeded by Alison Gerry, who has been on the
board since 2014.
Mainfreight (-7%) released a strong result which showed profit
growth accelerating more than expected at the end of the
year, following its 43-week trading update in early February.
Performance continues to be strong across Transport,
Warehousing, and Air & Ocean and across all geographic
regions. Encouragingly, the business grew volumes strongly
(13-22% across key products) which indicates it is continuing
to win customers and take market share. There is a component
of Air & Ocean profits which are benefiting from the complex
global supply chain and Mainfreight’s ability to find valuable
shipping space to solve customers' problems when its
competitors cannot. The company is winning new customers
due to its superior service proposition, cross-selling existing
customers more products, and gaining business from existing
customers in new geographies. It is seeing inbound demand
from customers which it cannot entirely fulfil which bodes well
for future growth. Trading in recent weeks continues the recent
growth trend despite concerns about global growth slowing.
However, the share price remains under pressure with
investors seemingly focused solely on the macro landscape
and ignoring the company's strong execution on its ongoing
growth opportunity.
1
Share Price Premium to NAV (including warrant price on a pro-rated basis and using the net asset value per share, after expenses, fees and tax, to four decimal places).
MONTHLY UPDATE
June 2022
KFL NAV
$
1.46
$
1. 74
Share Price
PREMIUM
1
19.1
%
as at 31 May 2022
Warrant Price
$
0.01

2
KEY DETAILS
as at 31 May 2022
FUND TYPE
Listed Investment Company
INVESTS IN
Growing New Zealand
companies
LISTING DATE
31 March 2004
FINANCIAL YEAR END
31 March
TYPICAL PORTFOLIO SIZE
15−25 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
$1.62
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
321m
MARKET CAPITALISATION
$558m
GEARING
None (maximum permitted 20%
of gross asset value)
SECTOR SPLIT
as at 31 May 2022
5
%
30
%
INDUSTRIALS
20
%
INFORMATION
TECHNOLOGY
33
%
HEALTH CARE
9
%
CONSUMER
STAPLES
The Kingfish portfolio also holds cash

UTILITIES
Pushpay (+11%) released its results, which showed modest
growth in its core business, although some early signs of
promise in its foray into the Catholic segment. In the near-term,
revenue growth will be driven via strong growth from its Resi
Media acquisition and continued growth in donation payment
volumes in existing church customers. Private equity firm BGH
Capital and existing shareholder Sixth Street announced they
have entered a co-operation agreement which suggests they
are seriously considering formalising a proposal to acquire the
company.
Ryman Healthcare (+9%) announced its results, which beat
expectations. Underlying profit was up +14% for the full
year, supported by strong development margins and record
sales in Victoria, Australia. The company is confident in the
outlook, expecting an increase in New Zealand sales after
the Omicron peak and may look to increase unit prices this
Sam Dickie
Senior Portfolio Manager
Fisher Funds Management Limited
year, despite softness in the housing market. This is possible
because of the ‘buffer’ between its unit pricing and house
prices, which has widened in recent years. Ryman also
forecast delivering over 1000 retirement units and beds
this financial year, close to a 50% increase on the year just
finished.

33
TOTAL SHAREHOLDER RETURN to 31 May 2022
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
2022
Mar
2005
MAY’S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO
during the month
The remaining portfolio is made up of another 10 stocks and cash.
5 LARGEST PORTFOLIO POSITIONS as at 31 May 2022
PUSHPAY HOLDINGS
+11
%
CONTACT ENERGY
−9
%
VISTA GROUP
−9
%
SUMMERSET GROUP
−10
%
FREIGHTWAYS
−10
%
MAINFREIGHT
19
%
FISHER & PAYKEL
HEALTHCARE
17
%
SUMMERSET
15
%
INFRATIL
10
%
AUCKLAND
INTERNATIONAL
AIRPORT
8
%
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+1.5%(0.6%)(6.5%)+16.8%+17.0%
Adjusted NAV Return(4.6%)(6.6%)(9.2%)+7.5%+11.1%
Portfolio Performance
Gross Performance Return(4.5%)(6.3%)(8.1%)+9.7%+13.6%
S&P/NZX50G Index(4.8%)(5.6%)(8.2%)+3.8%+8.8%
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 May 2022

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
15 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 Andy Coupe
(Chair), Carol Campbell,
David McClatchy and Fiona
Oliver.
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.
Dividends totalling 10.38 cents per share have been
declared to date and there is one more dividend
expected to be declared in the remaining period up to the
announcement of the 18 November 2022 exercise price
»The Exercise Date for the new warrants is
18 November 2022