KFL – November 2022 monthly update

1
A WORD FROM THE MANAGER
In October, Kingfish’s gross performance return was up 2.4%
and the adjusted NAV return was up 2.3%. This compares to
the benchmark S&P/NZX50G, which was up 2.5%.
October was a busy month, particularly with four investor
days in a week and a half. We love investor days as
companies normally go into their longer-term strategy and
plans in more detail. We also get to spend more time with
multiple layers of the management team which is invaluable.
Infratil (+1%) held an investor day in Sydney, focused on CDC
Data Centres and Vodafone New Zealand.
Greg Boorer, CEO of CDC Data Centres, highlighted the
company's strong growth trajectory. The new Auckland
data centres have opened to almost full capacity, with
demand above expectations and further capacity added to
the pipeline in Auckland. In Sydney, CDC has successfully
signed a bank client, signalling entry into a lucrative market
segment. Its cooling system allows it to consume less water
than competitors, lowering costs and resulting in better
environmental outcomes. Greg highlighted he expects to
maintain earnings growth at +25% annually over the medium
term. Overall, his presentation reinforced the width of the
company's moat and the long runway for growth.
Vodafone's update struck a positive tone, with earnings in line
with expectations, a large IT project nearing completion, a re-
brand underway and a fibre review in place to unlock further
value from network assets.
Mainfreight (+13%) hosted an investor day at its new
Hobsonville transport site, where we heard from management
including the regional heads. The company also provided
its first half results for the 6 months to 30 September and a
5 week "exit rate" update for the month of September. The
financial update was better than anticipated and showed
that profit before tax growth remains very strong at +58%
year on year in constant currency terms (for the half). The
Transport and Warehousing products are continuing to grow
strongly while the Air & Ocean freight forwarding business is
maintaining profits at attractive levels.
The team discussed its ongoing strategy of growing and
intensifying the network through adding new branches across
all products and in all regions. Investment into new facilities is
improving service quality which assists in customer wins and
retention and efficiency which boosts profitability. This includes
purpose-built Transport cross-docks and larger Warehouses,
including in Europe and the US. We are seeing signs of real
traction emerging in these regions under the two impressive
regional heads, Ben Fitts and Jason Braid.
Overall, the business’s long-term growth strategy is unchanged
and its execution against the strategy remains strong. Its
growth rates remain high, despite concern about whether
prevailing economic conditions may have deteriorated in
some areas.
It was also good to see the CEO, Chair, and head of Europe
buying shares on market following the update to add to their
already significant shareholdings, which underscores how
strongly they believe in the future prospects of the business. As
legendary investor Peter Lynch put it, "insiders might sell their
shares for any number of reasons, but they buy them for only
one: they think the price will rise."
Pushpay (+14%) unveiled to shareholders a takeover proposal
at $1.34 supported by the company's directors (subject to
some conditions). This comes after the company has overtly
been "in play" and ran a process to draw out interest for
takeover proposals.
Ryman Healthcare (−2%) held an investor day in Auckland,
with presentations from several members of senior
management and a tour of three villages at various stages
of construction. The overall tone of the investor day was of
incremental improvement and increased rigour.
Ryman has changed the terms of its management fees to
accrue over a shorter time frame. This will boost cash earnings
albeit will take years to fully flow through due to residents’
typical occupation tenure. Ryman also indicated a reduction
in the level of care accommodation it will build and will also
look to convert some existing care beds to care suites. This will
earn additional revenue and free up capital for reinvestment.
1
Share Price Discount 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
November 2022
KFL NAV
$
1.40
$
1.39
Share Price
DISCOUNT
1
(0.6
%
)
as at 31 October 2022
Warrant Price
$
0.00

2
KEY DETAILS
as at 31 October 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
$1.55
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
325m
MARKET CAPITALISATION
$452m
GEARING
None (maximum permitted 20%
of gross asset value)
SECTOR SPLIT
as at 31 October 2022
3
%
30
%
INDUSTRIALS
20
%
INFORMATION
TECHNOLOGY
33
%
HEALTH CARE
8
%
CONSUMER
STAPLES

UTILITIES
Matt Peek
Portfolio Manager
Fisher Funds Management Limited
Ryman also indicated a desire to build more "broad acre"
sites, which recycle capital faster and carry lower capital
intensity than the urban projects which it has focused more on
recently.
Vista (−6%) literally rolled out the red carpet for investors as it
hosted an investor day. The key focus was to outline progress
on its transition to a pure Cloud software model, which will
accelerate revenue growth and increase profitability over time.
The company has seen strong demand from customers for
Vista Cloud and Vista Digital, its product offering which
enables cinema exhibitors to provide a seamless mobile-
centric experience for moviegoers. It is increasingly confident
on pricing following its initial contracts and customer
discussions, with recurring revenue now likely to be 3-5 times
higher than currently (having previously indicated at least
1.5−2.5 times). The large uplift is because Vista's solutions
can significantly reduce customers' IT hardware and support
costs, while also providing greater functionality and security.
The company provided a "roadmap" for its medium-term
projections, with 2025 annualised recurring revenue of
$175−205 million, compared to $112m in June. Beyond that
the company thinks it can get to over $300m as remaining
customers migrate.
Over the next two years development spend will be higher
than previously expected as the company transitions to a
Cloud based model.
Overall, we continue to think the company remains
underappreciated, but this will change as it progressively
executes its cloud strategy and delivers increasing revenue
and cash flow.
CASH
6
%

33
TOTAL SHAREHOLDER RETURN to 31 October 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
OCTOBER’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 October 2022
PUSHPAY HOLDINGS
+14
%
MAINFREIGHT
+ 13
%
AUCKLAND
INTERNATIONAL
AIRPORT
+7
%
VISTA GROUP
INTERNATIONAL
-6
%
SUMMERSET GROUP
HOLDINGS
- 10
%
MAINFREIGHT
18
%
FISHER & PAYKEL
HEALTHCARE
16
%
SUMMERSET
15
%
INFRATIL
10
%
AUCKLAND
INTERNATIONAL
AIRPORT
10
%
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return(6.7%)(11.6%)(26.3%)+7.2%+11.7%
Adjusted NAV Return+2.3%(2.0%)(17.7%)+6.2%+9.7%
Portfolio Performance
Gross Performance Return+2.4%(1.8%)(17.1%)+8.2%+12.0%
S&P/NZX50G Index+2.5%(1.3%)(13.4%)+1.7%+6.8%
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 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 October 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. Matt Peek
(Portfolio Manager) and Michael
Bacon (Senior Investment Analyst)
have prime responsibility for
managing the Kingfish portfolio.
Together they have significant
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 $1.90, which is
substantially above the price at which the shares have
been trading
»The Exercise Date for the warrants is 18 November 2022