Kingfish ASM Presentation 04 August 2023

ANNUAL MEETING
OF SHAREHOLDERS
Kingfish Limited
4 August 2023

Board of Directors
Kingfish Team
Andy
Coupe
Carol
Campbell
David
McClatchy
Fiona
Oliver
Matt Peek
Portfolio
Manager
Zoie Regan
Senior Investment
Analyst
Wayne Burns
Corporate
Manager
Michael
Bacon
Senior Investment
Analyst

Agenda
•Preliminary matters
•Chair’s Overview
•Manager’s Review
•Q&A
•Annual Meeting Resolutions

ONLINE ATTENDEES –QUESTION
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Chair’s Overview

Kingfish’s Investment Objectives
Achieve a high real rate of return, comprising both income
and capital growth within acceptable risk parameters
Access to a diversified portfolio of New Zealand quality,
growth stocks through a single tax-efficient vehicle
Absolute Returns
Diversified Portfolio

Corporate Governance
•ESG
•Climate Risk reporting
•Director skill matrix reporting

2023 Overview
Net (loss) /profitDividendNAV per shareShare price
($19.5m)
(2022: -$17.3m)
11.64cps
(2022: 14.34cps)
$1.40
(2022: $1.58)
$1.32
(2022: $1.75)
Total shareholder
return*
Dividend return
Adjusted NAV
return*
Share price
discount/
(premium) to
NAV ^
-18.8%
(2022: +0.02%)
+7.7%
(2022: +7.4%)
-3.6%
(2022: -3.5%)
5.7%
(2022: (11.6%))
*These metrics are Non-GAAP measures calculated in accordance with the methodology described in the Kingfish Non-GAAP Financial Information Policy which is
available on the Kingfish website.
^Share price discount/ (premium) to NAV (including warrant price on a pro-rated basis, when warrants are on issue).

2023 Overview – Continued
Portfolio Performance
For the year ended
31 March
12 months
3 years
(annualised)
5 years
(annualised)
Adjusted NAV
return*
-3.6%
(2022: -3.5%)
+9.5%+9.1%
Gross performance *
-2.7%
(2022: -2.5%)
+11.5%+11.5%
Benchmark Index ^
-1.9%
(2022: -3.6%)
+6.7%+7.4%
*These metrics are Non-GAAP measures calculated in accordance with the methodology described in the Kingfish Non-GAAP
Financial Information Policy which is available on the Kingfish website.
^ The S&P/NZX50G Index

Earnings per share
Earnings per
Share
20232022202120202019
Basic Earnings
per Share
(cents)
-6.00-5.4956.280.7524.24
Diluted
Earnings per
Share (cents)
-6.00-5.4954.650.7523.81

Use of Shareholders’ Funds

First three Months, FY 2024
1 April – 30 June 2023
Total shareholder return*
3.8%
Adjusted NAV return*
1.9%
NAV per share 30 June 2023
$1.40
Share price 30 June 2023
$1.34
Net profit
$8.8m
*These metrics are Non-GAAP measures calculated in accordance with the methodology described in the Kingfish Non-GAAP Financial
Information Policy which is available on the Kingfish website.

Warrants
•Capital Management Programme
•83.1m KFLWH warrants issued 6 July 2023 with an initial
exercise price of $1.37
•Exercise date is 26 July 2024
•The final exercise price will be announced in early June
2024

Matt Peek
Portfolio Manager
Manager’s Review

Agenda
1.FY2023 review and market update
2.Kingfish portfolio insights
3.Outlook

1. FY2023 review and market update

Manager performance in Financial Year 2023
-2.7%
-1.9%
-5%
-4%
-3%
-2%
-1%
-
Kingfish gross performance returnS&P/NZX50G index

10,500
11,000
11,500
12,000
12,500
31 Mar 2230 Jun 2230 Sep 2231 Dec 2231 Mar 23
S&P/NZX50G Index
A year of two halves
Note: S&P/NZX50G index; Source: Bloomberg
FY2023 financial year
First half
-8.6%
Second half
+7.4%

Inflation & interest rates
Source: Bloomberg
Inflation is heading lower ...... however, interest rates remain elevated
-
1%
2%
3%
4%
5%
6%
Dec 19
Jun 20
Dec 20
Jun 21
Dec 21
Jun 22
Dec 22
Jun 23
◼ NZ 10 yr govt bond
◼ US 10 yr govt bond
◼ NZ CPI
◼ US CPI
0%
2%
4%
6%
8%
10%
Dec 19
Jun 20
Dec 20
Jun 21
Dec 21
Jun 22
Dec 22
Jun 23

Economic backdrop
Source: Bloomberg
Expected NZ GDP growth for 2023 is lower than other key economies
-
1%
2%
3%
New ZealandAustraliaUnited StatesGlobal
Beginning of yearAs at 31 July 2023

2. Kingfish portfolio insights

Portfolio company performance in FY2023
Source: Bloomberg; Note: Total shareholder return
-39%
-36%
-25%
-23%
-21%
-14%
-1%
4%
8%
11%
11%
12%
14%
15%
22%
-50%
-25%
0%
25%
50%
Ryman Healthcare
Delegat
Vista
Summerset
Freightways
Mainfreight
Contact Energy
Port Of Tauranga
Meridian Energy
a2 Milk
Auckland Airport
F&P Healthcare
Infratil
EBOS
Pushpay

Portfolio management: FY2023 and FY2024 to date
LargerSmaller
Target weight
changes (net)

Portfolio departure and new addition
98%
DIFOT
(high service)
7k
8k
8k
9k
9k
10k
Sep
19
Mar
20
Sep
20
Mar
21
Sep
21
Mar
22
Sep
22
Slowing customer growth in core
donor management product
Source: Company releases; Note: 98% DIFOT (Delivery In Full and On Time) per Vulcan prospectus

Short term setbacks present opportunity
Source: Bloomberg
$16
$18
$20
$22
$24
$26
$28
$30
31 Mar 2230 Jun 2230 Sep 2231 Dec 2231 Mar 23
FY2023 financial year
FY 2022 result at
lower end of guidance
Weak first half
trading update

$16
$18
$20
$22
$24
$26
$28
$30
31 Mar 2230 Jun 2230 Sep 2231 Dec 2231 Mar 23
FY2023 financial year
Long term fundamentals remain intact
New product launches
Improved revenue guidance
Inventory
destocking
fading
Source: Bloomberg

Kingfish: backing quality growth companies
QualityGrowth
Source: Fisher Funds analysis based on Bloomberg data as at 25 July 2023; Notes: (1) ROCE normalised for last financial year (2) Operating
margin excludes property sector, retirement sector, and Infratil; (3) Growth rates consensus for next 12 months to subsequent 12 months
14.9%15.1%
+12%
+8%
12.1%
13.6%
+8%
+5%
Return on
Capital Employed
Operating Profit
Margin
Earnings Per Share
Growth
Sales
Growth
Kingfish medianBenchmark (NZX 50) median

Kingfish: a concentrated yet balanced portfolio
15
companies
Infrastructure34%
Industrial21%
Retirement13%
Consumer6%
Healthcare17%
Software4%
Cash4%
Cash
As at 30 June 2023

3. Outlook

FY2024 first quarter performance (to 30 June 2023)
2.3%
0.3%
+1%
+2%
+3%
Kingfish gross performance returnS&P/NZX50G index

Outlook
•Inflation subsiding, interest rates more stable but at higher levels
•NZ economy in recession (how deep?), pre-election uncertainty
•Global economy more positive
•Opportunities for active management
•Ongoing focus on responsible investment considerations
•Consistent strategy: Wide moats, long growth runways,
exceptional management

General Questions from
Shareholders
(not relating to resolutions)

ONLINE ATTENDEES –VOTING PROCESS
Shareholder & Proxyholder Voting
Once the voting has been opened, the
resolutions and voting options will allow
voting.
To vote, simply click on the Vote tab, and
select your voting direction from the options
shown on the screen. You can vote for all
resolutions at once or by each resolution.
Your vote has been cast when the tick
appears. To change your vote, select
‘Change Your Vote’.

Annual Meeting
2023 Resolutions

2023 Annual Meeting Resolutions
•Introduce and propose
•Discussion, questions
•Lodge your vote per the digital portal

Matters of Business
•Annual Report
•Resolutions:
–Re-elect Andy Coupe
–Increase directors’ fee pool
–Auditor remuneration

Resolution 1
Re-election of Andy Coupe
To re-elect Andy Coupe as a Director of Kingfish Limited

Resolution 2
Increase Directors’ fee pool
To authorise an increase in the Directors’ fee pool from
$157,500 (plus GST if any) to $185,500 (plus GST if any).

Resolution 3
Auditor Remuneration
That the Board of Directors be authorised to fix the
remuneration of the auditor for the ensuing year

Conclusion
•Complete and sign voting paper
•Voting papers in the voting boxes
•If you need a voting paper please see Computershare
•Results to NZX

Thank you

---

Kingfish Limited
Phone +64 9 489 7094
Fax +64 9 489 7139
Private Bag 93502
Takapuna, Auckland

4 August 2023
Kingfish Limited Annual Meeting
Chair’s Address from Andy Coupe
[Slide: Kingfish Limited Annual Meeting of Shareholders]
Welcome to the 19th Kingfish annual meeting of shareholders, I’m Andy Coupe, Chair of Kingfish.
We’ve again put in place the virtual meeting option for those who are unable to attend in-person,
and we welcome those who have joined the meeting via the Computershare virtual meeting
platform.
We are duly convened as a Notice of Meeting has been circulated to shareholders and I can confirm
that a quorum is present, so I declare the meeting open.
Please note that the exits are at the back and front of the room. Please ensure you turn your cell
phones off or put them on mute.
For those here in-person there will be a light lunch at the conclusion of the meeting. We look
forward to meeting many of you after the meeting.

[Slide: Introductions]
Let me introduce the front table.
Firstly, the directors. To my right is Carol Campbell (Chair of the Audit & Risk Committee), next to her
is David McClatchy (Chair of the Investment Committee) and next to him is Fiona Oliver.
Next to Fiona is Matt Peek the Kingfish Portfolio Manager, and next to Matt is Wayne Burns the
Corporate Manager.
Also here today, in the audience, are Senior Investment Analysts Zoie Regan and Michael Bacon.
We are also pleased to have representatives from our share registrar, Computershare, auditor,
PricewaterhouseCoopers, our tax advisors, Deloitte and our legal advisors, Bell Gully in the audience
today.

[Slide: Agenda]
The agenda for today.
Firstly, preliminary matters
• The minutes of the 2022 annual shareholders’ meeting held on 5 August 2022 are
available at the registration desk and are also on the Kingfish website.
• The 2023 annual report has been circulated to shareholders – additional copies are
available at the registration desk and can also be found on the Kingfish website.

Today I’ll give a brief summary of the Kingfish 2023 financial year and an update of the year to date,
and then Kingfish’s Portfolio Manager, Matt Peek will review the Kingfish portfolio.

After the Manager’s Review, we will have a Q&A session, and we’ll then move to the formal business
of the meeting.
There are three resolutions for you to consider and vote on today, which are as set out in the Notice
of Meeting.

[Slide: Online Attendees – Question Process]
If you’re attending the meeting online there’s a Q&A icon at the top right of your screen.
To send in a question, please select the Q&A tab on the right half of your screen anytime. Type your
question into the field and press send. Your question will be immediately submitted.
We’ve set aside a time at the end of the two presentations for general questions relating to the
operations and management of the business.
Questions relating to the three resolutions will be dealt with in conjunction with each of the
resolutions.
Should you require any assistance, you can type your query and one of the Computershare team will
assist with the chat function and reply to your query.

[Slide: Chair’s Overview]
It is now my pleasure to present the Chair’s Overview at this meeting.

[Slide: Kingfish’s Investment Objective]
As directors, and managers, we typically start our annual meetings with a quick reminder of what we
are here to achieve, being.
• to achieve a high real rate of return, comprising both income and capital growth, within
risk parameters acceptable to the directors; and
• to provide access to a diversified portfolio of New Zealand quality, growth stocks
through a single tax-efficient investment vehicle.
• Matt will speak to the portfolio over the past financial year and the growth
characteristics of the stocks that form the portfolio in his manager review.
•

[Slide: Kingfish’s Corporate Governance]
Turning now to corporate governance.
Kingfish does not have a formal environmental, social, and governance (ESG) framework. The board
considers that, given the nature of its operations (as an investment company), it is not appropriate
to maintain an ESG framework due to the lack of available metrics relevant to its business against
which it could report on such matters. However, the Manager does have a formal ESG framework
which governs stock selection, to which the Kingfish board is fully supportive and committed.
The Board, in conjunction with Kingfish’s manager, is well advanced in regard to the new Climate
Risk Disclosures that Kingfish will be required to start publishing next year.
Furthermore, the board has decided that from next year we will commence including in the Annual
Report a director skills matrix.
The Kingfish 2023 result was announced in May, but I’ll highlight some of the key performance
measurements on the next slide.

[Slide: 2023 Overview]
Those of you who have had a chance to review the annual report will be aware of many of the
following performance numbers, and doubtless all shareholders will be well aware of the ongoing
volatility that global share markets have experienced and the NZX was no exception. The Kingfish
result over the past twelve months reflects that.
• Kingfish has suffered a net loss of -$19.5m. (A similar loss to the prior year. However,
there was a recovery of sorts in the second half of the financial year. Remembering that
Kingfish was down $48.4m as at the September 2022 half year).
• Total shareholder return was down 18.8% for the year, having been flat the previous
year. Most of this was driven by the decrease in the share price, which moved from
being at a 12% premium to the NAV, to a 6% discount to the NAV.
• Kingfish’s regular dividends continued to contribute to the shareholder return with
11.64 cents per share paid in dividends during the 2023 financial year, which is
equivalent to a dividend return, not a dividend yield, of +7.7% (2022: +7.4%). These
returns are calculated based on the average share price for the year.
• The overall net asset value (NAV) per share fell from $1.58 (as at 31 March 2022) to
$1.40 (as at 31 March 2023)
• The adjusted NAV return was negative -3.6% for the period, which represents the net
return to an investor after expenses, fees and tax.

[Slide: 2023 Overview - Continued]
This table compares the Adjusted NAV return, (the net return to an investor after expenses, fees and
tax), and
the gross performance return (the return before expenses, fees and tax),
to the benchmark index return over the periods of 1, 3 and 5 years.
The Kingfish portfolio has consistently outperformed the benchmark index over 3 and 5 year terms.
Hence while the last financial year has been disappointing in an absolute and comparative sense, we
are pleased that the portfolio has achieved its objectives over the longer-term, and we believe it
represents a very reasonable outcome for most shareholders.
Matt will discuss the New Zealand sharemarket dynamics and a more detailed description of how
the portfolio performed and how it is positioned shortly in the Manager’s Review.


[Slide: Basic and Diluted Earnings per Share]
This chart shows the earnings, or in the case of the last two years, the loss per share.
In particular looking at the 2019 and 2021 years, it’s a potent reminder of how variable share market
returns can be, and the degrees of volatility that equity markets can experience from time to time.

[Slide: Use of Shareholders’ Funds]
Turning now to Shareholders’ Funds
This chart shows the Kingfish NAV of $505m (as at 31 March 2022) decreased by a net $44m to
$461m (as at 31 March 2023).
The movements during the year as represented by the red, yellow and blue columns were:
- the $19.5m net loss,
- less $38m dividends paid but adding back $13m for dividends reinvested by
shareholders.

[Slide: First three months, FY 2024]
The first three months of the new financial year show the ongoing impact from pressures and
concerns regarding inflation, central bank interest rate increases, supply chain disruption, and the
ongoing geo-political issues.
This slide provides a snapshot of the first three months of the current financial year to 30 June 2023:
• Total shareholder return for the three months was up 3.8% - driven by the share price
increase from $1.32 (31 March) to $1.34 (30 June) and the June dividend.
• As at 30 June, the NAV per share was the same as it was at March (i.e. $1.40) – but that
was after a dividend of 2.82 cents per share paid on 23 June.

• The adjusted NAV return for the first three months of the 2024 financial year was up
1.9% (which represents the net return to an investor after expenses, fees and tax).

• This performance to date, translates to a net profit of $8.8m for the three months to 30
June.

[Slide: Warrants]
Since the 2023 year end Kingfish has made a pro rata warrant issue as part of its overall capital
management programme.
The most recent warrants (KFLWH) were issued to eligible shareholders in early July 2023.
83.1m warrants were issued and have an exercise date of 26 July 2024.
The final exercise price will be announced in early June 2024 and will be the initial exercise price of
$1.37 less the dividends declared between the issue record date of 6 July 2023 and the
announcement date of the final exercise price.

Closing remarks
In closing my annual meeting address, and on behalf of the board, I’d like to thank you for your
continued support of Kingfish.
The past twelve months have been very challenging, and I don’t doubt the results for this period
were disappointing relative to the experiences of previous periods. However, the investment
strategy of focussing on quality growth stocks, as detailed in the prospectus so many years ago, has
not changed and it has delivered results consistent with the prospectus so many years ago. We
remain confident that over the medium term the strategy will bring its rewards.
I will now hand over to Matt Peek, Portfolio Manager of Kingfish.


ENDS