KFL – November 2023 monthly update

1
A WORD FROM THE MANAGER
In October, Kingfish’s gross performance return was down
−6.0% and the adjusted NAV return was also down
−6.0%. This compares to the benchmark S&P/NZX50G,
which was down −4.8%. Most of the underperformance
during the month was attributable to Mainfreight’s share
price fall.
EBOS (+2%) was a notable bright spot in an otherwise
challenging month. The healthcare and animal care
product distributor provided a September quarter update
at its annual meeting, with trading broadly in line with
expectations (operating profit up 7% on the same quarter
last year and more like 10% on an underlying basis, after
excluding strong COVID-19 antiviral sales in the prior
period).
New Zealand economic 'bellwether’ Freightways (−9%)
provided a first quarter trading update at its annual
meeting. In its New Zealand network courier business, it is
still seeing same-customer volumes down around 5-6% (as
it did earlier in 2023), although it continues to offset this
with new customer wins, such that in the quarter volumes
were up 2.3%. However, its Australian large item delivery
business Allied Express has seen same-customer volumes
soften in the last couple of months to be around 2% below
last year's level, although they are continuing to win new
customers.
Infratil (−4%) provided a very strong update in relation
to its portfolio company CDC (Canberra Data Centres),
in which it has a 48% shareholding. Over the six months
to 30 September, the independent valuation of its holding
increased by A$448 million at the midpoint, or 13%,
to A$3.9 billion. The key driver of the increase was an
improving demand outlook for its data centre services. A
key aspect of the new demand is from cloud computing
companies moving to secure capacity needed for the
development of Artificial Intelligence applications. Infratil
commented that “in response to this demand CDC is
expecting a significant acceleration of construction and
expansion of development planning in all locations”. The
valuation now assumes 1050 megawatts (MW) of current
and future capacity out until 2028, up an impressive
34% from 786MW previously. The amount of capacity
completed and under construction has increased by a
whopping 72%. The increase in value also comes despite
a lift in the discount rate from 9.6% to 11.2%, which acted
as a headwind to the valuation. Overall, the announcement
underscores that significant value is being created through
the better operational outlook for the CDC business, which
also bodes well for future returns.
Port of Tauranga (−13%) held its annual meeting and
provided earnings guidance for the current financial year
which was around 11% below market expectations. For
the September quarter, container volumes were 21% lower
than the same quarter last year. In part this has been due
to overall weak consumer demand, with national container
import volumes down. It has also been because higher rail
costs are currently making Port of Auckland more attractive
for imports to Auckland (versus via Tauranga and rail).
Global freight company Mainfreight (−12%) saw its share
price fall ahead of its first half result in November. This was
due to an absence of positive signs from global and local
freight players, which suggest conditions are yet to improve
after a prolonged period of softness in 2023. Overall,
Mainfreight's global freight peers also experienced share
price weakness during the month. Global freight forwarder
Kuehne & Nagel (−6%) indicated it had not seen any
peak season in sea freight, and competitor DSV (−20%)
reported sea volumes slightly below expectations, although
profitability per container held up better than expected.
Mainfreight’s domestic transport business is subject to the
same subdued economic conditions in New Zealand, as
experienced by Freightways and Port of Tauranga.
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 2023
KFL NAV
$
1.22
$
1. 1 9
Share Price
DISCOUNT
1
1.9
%
as at 31 October 2023
Warrant Price
$
0.0 2

2
KEY DETAILS
as at 31 October 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
$1.42
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
335m
MARKET CAPITALISATION
$399m
GEARING
None (maximum permitted 20%
of gross asset value)
SECTOR SPLIT
as at 31 October 2023
2
%
33
%
9
%
MATERIALS
HEALTH CARE
6
%
CONSUMER
STAPLES

UTILITIES
CASH
1
%
INFORMATION
TECHNOLOGY
3
%
Summerset (−5%) announced its September quarter sales
which were in line with our expectations, with 127 resales
and 133 new sales, its highest new sales quarter since late
2022. Management noted there were further positive signs
that the residential housing market is improving. More
positively, the team noted strong demand at many key
villages, and specifically called out strong pre-sales and
"very high" demand for its St Johns village in Auckland.
This is particularly pleasing as this is a major village still
under construction and well ahead of its opening in late
2024. In Australia, construction at its Cranbourne North
village remains on track to deliver its first villas by the end
Matt Peek
Portfolio Manager
Fisher Funds Management Limited
46
%
INDUSTRIALS
of 2023. During the month we visited several Auckland
retirement villages, which further corroborated our view
that Summerset's offering is resonating particularly well
with prospective residents.

33
TOTAL SHAREHOLDER RETURN to 31 October 2023
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 2023
PORT OF TAURANGA
- 13
%
MAINFREIGHT
- 12
%
RYMAN HEALTHCARE
- 10
%
VISTA GROUP
INTERNATIONAL
- 10
%
FREIGHTWAYS
-9
%
INFRATIL
18
%
MAINFREIGHT
15
%
AUCKLAND
INTERNATIONAL
AIRPORT
14
%
FISHER & PAYKEL
HEALTHCARE
8
%
SUMMERSET
8
%
Share Price/Total Shareholder Return
$9.00
$8.00
$7.00
$6.00
$5.00
$4.00
$3.00
$2.00
$1.00
$0.00
Mar
2004
Share Price Total Shareholder Return
Mar
2005
Mar
2006
Mar
2007
Mar
2008
Mar
2009
Mar
2010
Mar
2011
Mar
2012
Mar
2013
Mar
2014
Mar
2015
Mar
2016
Mar
2017
Mar
2018
Mar
2020
Mar
2019
Mar
2021
Mar
2023
Mar
2022
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return(5.8%)(9.3%)(6.3%)(4.7%)+7.5%
Adjusted NAV Return(6.0%)(11.1%)(5.4%)(3.3%)+6.4%
Portfolio Performance
Gross Performance Return(6.0%)(11.0%)(4.4%)(2.1%)+8.5%
S&P/NZX50G Index(4.8%)(10.8%)(5.1%)(3.8%)+4.2%
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 kingfish.co.nz/about-kingfish/kingfish-policies.
PERFORMANCE to 31 October 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
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 utilised
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 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.
Warrants
»Kingfish announced an issue of warrants (KFLWH) on
20 June 2023
»Information pertaining to the warrants was mailed/
emailed to all shareholders on Tuesday 27 June 2023
»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 5 July
2023
»The warrants were allotted to shareholders on 6 July 2023
and listed on the NZX Main Board from 7 July 2023
»The Exercise Price of each warrant is $1.37, 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
»The Exercise Date for the warrants is 26 July 2024