KFL – March 2023 monthly update

1
A WORD FROM THE MANAGER
In February, Kingfish’s gross performance return was down 0.8%
and the adjusted NAV return was also down 0.8%. This compares
to the benchmark S&P/NZX50G, which was down 0.6%.
During February many companies in the Kingfish portfolio
delivered their six-monthly results for the period through to 31
December 2022.
Portfolio News
a2 Milk (−2%) reported its semi-annual result slightly ahead of
expectations. This was driven by stronger than expected sales
of its ‘Zhichu’ (Chinese label) range of infant formula products,
which is the key growth driver for the business. The company
continues to grow brand awareness for this product range, which
is translating into greater rates of trial and market share gains.
Market share gains are continuing in Mother & Baby Stores in
major cities, and also in lower tier cities where the company has
entered more recently and has smaller share. Its online strategy is
seeing similar success, with its market share increasing rapidly (to
3.0% in 2022, from 2.1% in 2021). Offsetting this, management
remained cautious about the extent that profit margins are likely
to expand over time given ongoing reinvestment and marketing
requirements.
Auckland Airport (+3%) also announced financial results.
Operating earnings were higher than market expectations,
supported by a strong passenger recovery, with international
travel reaching 59% of 2019 levels. It also saw strong rent
growth in its property portfolio and a rebound in international
passengers spend rates in the retail business.
Oyster Bay wine producer Delegat (−9%) reported its first half
fiscal 2023 result, which showed modest +2% profit growth on
the prior year on case sales up +4% as cost growth weighed on
performance. Full year profit expectations were tempered to $59-
62 million (from $60-64 million) reflecting inflationary pressures,
versus $58.1 million the previous year. During the month
Cyclone Gabrielle tragically impacted the country, particularly
the eastern North Island. Fortunately, there was no major impact
from the cyclone on Delegat. The company experienced some
minor surface flooding at its Hawkes Bay winery and one of its
vineyards, but there was no silt residue or damage to vines, and it
expects no adverse impact on the coming harvest.
EBOS (+3%) delivered a high-quality half year result,
demonstrating strong organic growth as well as its recent large
LifeHealthcare acquisition performing in line with expectations.
The underlying healthcare market continues to benefit from strong
sales of antivirals and growth in high value speciality medicines.
Importantly, EBOS continues to gain market share in its core
Community Pharmacy division and growing Contract Logistics
business. The company demonstrated seamless execution of
bringing its pet-food manufacturing in house which saw an uplift
to profit margins in its Animal Care division.
Freightways (+1%) delivered a relatively solid set of results
despite the slowing economic environment. In its New Zealand
courier business, market share gains offset weaker like-for-like
demand and saw volumes only down 2% versus a very strong
comparable period. It is worth bearing in mind that business-
to-consumer only represents around one-fifth of its business
mix, so the company has limited exposure to slowing consumer
discretionary spend, even though its retail customers saw volumes
decline around 15%. The recent Allied Express (Australian
express delivery) acquisition is performing ahead of expectations,
with activity from almost all customers growing versus the prior
period. The company continues to raise prices to offset cost
inflation, and re-price undervalued services such as local delivery
and oversize parcels.
Mainfreight (+2%) delivered a trading update for the first 43
weeks of its financial year, through to the end of January 2023.
Growth is slowing, consistent with what is happening in the
global economy, but the company is still performing credibly
versus what was a very strong period in the previous year.
Earnings growth in the Transport division decelerated as the
company added line haul capacity in the US and volume growth
fell short of expectations. The Warehousing segment continued
to grow strongly, broadly in line with previous growth rates.
The company’s Air & Ocean freight forwarding division saw
profitability moderate from recent highs. However, the decline
here was less pronounced than expected given shipping rates
have now reduced from high levels (particularly on its US and
Asian trade lanes).
1
Share Price Discount to NAV (using the net asset value per share, after expenses, fees and tax, to four decimal places).
MONTHLY UPDATE
March 2023
KFL NAV
$
1.43
$
1.43
Share Price
DISCOUNT
1
(0.3
%
)
as at 28 February 2023

2
KEY DETAILS
as at 28 February 2023
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
$1.52
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
328m
MARKET CAPITALISATION
$469m
GEARING
None (maximum permitted 20%
of gross asset value)
SECTOR SPLIT
as at 28 February 2023
3
%
31
%
INDUSTRIALS
22
%
INFORMATION
TECHNOLOGY
31
%
HEALTH CARE
8
%
CONSUMER
STAPLES

UTILITIES
CASH
5
%
Pushpay (−2%) released the Independent Adviser Report in
relation to the proposed scheme of arrangement during the
month. We also engaged meaningfully with the company and
its board of directors. Contrary to the recommendation of its
non-conflicted directors, we voted against the scheme. Our view
is that the offer price of $1.34 per share does not represent
compelling value for shareholders. We also note the offer price
was at the lower end of the $1.33-1.53 independent adviser’s
valuation range.
Ryman Healthcare (−19%) raised around $900 million of new
equity at $5.00, and reduced its financial leverage, by repaying
its US Private Placement (USPP) debt in full. We had anticipated
the equity raising, given an unexpectedly large step-up in debt
revealed at the half-year result in November, and reduced the
position at higher prices. Ryman provided an update on its
development plans, with development slowed or halted at some
of its high intensity sites to ensure a sustainable growth path and
maintain lower debt levels. The company has introduced a medium-
term gearing target of 30-35% (the ratio of debt to assets). Kingfish
took up its entitlement to buy new shares, although our position size
remains smaller than previous years until we gain more confidence
in management’s execution of the strategy.
Summerset (−6%) announced its 2022 full year result. Underlying
profit was in line with expectations with development margins
particularly strong in the second half year, at around 32%.
Management flagged they expect these to return to their 20-
25% target range, given the combination of construction cost
inflation (which has been well managed to date) and a flatter
pricing outlook given the soft housing market. Summerset expects
to build between 625 and 675 units in 2023, versus 651 in
2022. The management team has indicated that the company sits
comfortably inside its banking covenants and expects to remain
so, with ample headroom.
Portfolio Changes
Aside from taking up the entitlement to buy new Ryman shares,
there were no substantive changes to the portfolio in the month.
Matt Peek
Portfolio Manager
Fisher Funds Management Limited

33
TOTAL SHAREHOLDER RETURN to 28 February 2023
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
2004
Mar
2006
Mar
2007
Mar
2008
Mar
2009
Mar
2010
Mar
2011
Mar
2012
Mar
2014
Mar
2015
Mar
2013
Mar
2016
Mar
2017
Mar
2018
Mar
2019
Mar
2020
Mar
2021
Mar
2022
Mar
2005
FEBRUARY'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 28 February 2023
EBOS GROUP
+3
%
FISHER & PAYKEL
HEALTHCARE
+3
%
SUMMERSET
-6
%
DELEGAT GROUP
-9
%
RYMAN
HEALTHCARE
- 19
%
MAINFREIGHT
17
%
FISHER & PAYKEL
HEALTHCARE
16
%
SUMMERSET
16
%
INFRATIL
9
%
AUCKLAND
INTERNATIONAL
AIRPORT
8
%
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+1.4%+4.3%(13.5%)+5.5%+11.6%
Adjusted NAV Return(0.8%)+2.3%(2.6%)+5.2%+9.6%
Portfolio Performance
Gross Performance Return(0.8%)+2.6%(1.5%)+6.9%+11.8%
S&P/NZX50G Index(0.6%)+3.0%(0.7%)+1.8%+7.3%
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 28 February 2023

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
Email: enquire@kingfish.co.nz | www.kingfish.co.nz
4
Computershare Investor Services Limited
Private Bag 92119, Auckland 1142
Phone: +64 9 488 8777
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
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 and Zoie Regan
(Senior Investment Analysts) 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.
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
Warrants
»Warrants put Kingfish in a better position to grow further,
operate efficiently, and pursue other capital structure
initiatives as appropriate
»A warrant is the right, not the obligation, to purchase an
ordinary share in Kingfish at a fixed price on a fixed date
»There are currently no Kingfish warrants on issue