KFL – September 2022 monthly update

1
A WORD FROM THE MANAGER
In August, Kingfish’s gross performance return was up 1.4%
and the adjusted NAV return was up 1.3%.
New Zealand shares (the benchmark S&P/NZX50G) rose
+0.9% in August, which was generally better than global
equities fared (MSCI World -4.1%, US: S&P 500 -4.1%,
Australia: ASX 200 +1.2%). This was despite 10-year
Government bond yields, the key barometer for long-term
interest rates and a key factor that has been driving the
direction of the market this year, heading sharply higher from
the recent lows of early August.
a2 Milk (+25%) reported a strong result, with infant formula
sales and group earnings well ahead of expectations in the
six months to June. The company has managed well during
another challenging period, including managing a change
in major distributor and shifting volumes towards online
platforms. It also out-executed rivals in getting product to
market during the Shanghai lockdowns. a2's marketing
is proving effective, with an uplift in share of voice and
"top of mind" and "spontaneous" awareness metrics lifting
strongly, consistent with their growth in market share across
key channels. Management has done a good job of fixing
problems in the business and building more robust capability
and processes to deliver on its growth strategy.
Auckland Airport (+1%) reported earnings ahead of
expectations as the international travel recovery continues.
Management highlighted airline labour constraints as a key
factor that has been limiting the trajectory of the passenger
recovery. Despite the headwinds, the company has confidence
to restart significant growth projects that have been on
hold, including the $1 billion new domestic jet terminal.
Auckland Airport's aeronautical charges will need to increase
significantly over the next decade, which will provide a multi-
year tailwind to earnings growth.
Delegat (+3%) reported operating profit in line with its
guidance ($58.1 million versus $57-61 million). Initial
guidance for the new financial year of $60-64 million
represents growth of three to ten percent. The growth outlook
is being constrained by cost pressures including viticulture
and shipping (yet to meaningfully reduce) which have
been partially offset by price increases and efficiencies.
The medium-term outlook is still for an attractive increase in
earnings. This will be driven by case sales volume growth
of around 7% per year, pricing gains, plus a resumption
in margin improvement as transient cost factors abate and
winery scale efficiency gains resume.
EBOS (-2%) delivered a solid result broadly in line with
expectations. Revenue was stronger than expected in its
core Community Pharmacy business as a result of strong
pharmacy sales due to Omicron and winter illness tailwinds
plus market share gains. This was largely offset by slightly
weaker than expected growth in Animal Care (but still +7.4%
in the second half) and higher costs. We expect the unwind
of COVID related benefits to provide a slight headwind in
the new financial year, although the contribution of the large
LifeHealthcare acquisition (which is performing in line with
expectations) is expected to help provide strong earnings per
share growth of around +15%.
Fisher & Paykel Healthcare (-7%) delivered initial guidance
for the first half of its 2023 financial year. The company is still
experiencing uncertainty as its business cadence settles into
more normal patterns after the COVID roller-coaster. It has
seen lower demand as it observes customers are still working
to destock inventories, they built during COVID waves. We
think the company is set to bounce back in the seasonally
stronger second half and beyond.
Freightways (-1%) delivered its annual result and
simultaneously announced a meaningful acquisition. The
company has seen network courier volumes for the first six
weeks of the new financial year of -1% versus the previous
year, with market share gains making up for weaker like-for-
like trading from its customers (-5%). Like its competitors, it is
implementing large price increases to offset price pressures,
primarily labour costs. The company has purchased a niche
Australian parcel business Allied Express which appears to be
a good fit and they bought it at a reasonable price (8x EBITA).
The latest meaningful acquisition in late 2019, Big Chill, has
performed well.
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
September 2022
KFL NAV
$
1.47
$
1.61
Share Price
PREMIUM
1
9.2
%
as at 31 August 2022
Warrant Price
$
0.00

2
KEY DETAILS
as at 31 August 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
$1.59
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
323m
MARKET CAPITALISATION
$520m
GEARING
None (maximum permitted 20%
of gross asset value)
SECTOR SPLIT
as at 31 August 2022
3
%
30
%
INDUSTRIALS
21
%
INFORMATION
TECHNOLOGY
31
%
HEALTH CARE
9
%
CONSUMER
STAPLES

UTILITIES
Sam Dickie
Senior Portfolio Manager
Fisher Funds Management Limited
Port of Tauranga (-4%) reported its financial results which were
positive, as it had implemented pricing mechanisms to recover
cost pressures. An infrastructure levy was introduced in July to
pay off a future wharf extension, and general contract price
increases will flow through as contracts rollover. Storage
charges continue to be used to discourage container storage
and compensate for supply chain disruption.
Summerset (+3%) reported its 2022 first half result, with
earnings ahead of expectations supported by strong
development profit margins, including the product mix effect
from building more villas. Management talked about robust
demand at the result, with new sales inventory low, no
apparent change in settlement timeframes or cancellations and
strong levels of pre-sales. The company reiterated its full-year
build rate guidance of 600 units and added three new sites
(900 units) to the landbank, which will support a lift in the
future build rate.
Vista (+1%) increased its 2022 revenue guidance by $5
million (around 4%) at its first half result. This included solid
organic growth performance from its box office exposed
businesses and growing subscription revenues. The company
is continuing to register strong interest in its new Digital EQ
and Cloud offering, with attractive uplifts in recurring revenue
(over 2.5 times current levels). Its pipeline for these next
generation products is now 40% of its direct sites and its first
large customer will be fully deployed in 2023. Cost pressures
primarily from higher tech salaries have been constraining
growth in earnings but will begin to be superseded by revenue
growth from 2023.
CASH
6
%

33
TOTAL SHAREHOLDER RETURN to 31 August 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
AUGUST’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 August 2022
a2 MILK COMPANY
+25
%
INFRATIL
+8
%
DELEGAT GROUP
+3
%
PORT OF TAURANGA
-4
%
FISHER & PAYKEL
HEALTHCARE
-7
%
INFRATIL
17
%
FISHER & PAYKEL
HEALTHCARE
17
%
SUMMERSET
13
%
MAINFREIGHT
11
%
AUCKLAND
INTERNATIONAL
AIRPORT
9
%
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+0.5%(5.7%)(15.5%)+14.1%+15.3%
Adjusted NAV Return+1.3%+3.1%(14.6%)+7.9%+10.8%
Portfolio Performance
Gross Performance Return+1.4%+3.4%(13.7%)+10.0%+13.2%
S&P/NZX50G Index+0.9%+2.6%(12.2%)+2.5%+8.2%
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 dividends (and other capital management initiatives) and after expenses, fees and tax,
»adjusted NAV return – the percentage change in the adjusted NAV,
»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 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 13.21 cents per share have been
declared to date and there are no more dividends
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