KFL – December 2023 monthly update

1
A WORD FROM THE MANAGER
New Zealand shares rebounded strongly during November
(S&P/NZX 50 gross index +5.3%). The Kingfish portfolio
gross performance return and the Adjusted NAV return
were +5.3% and +5.1% respectively. It was a relatively
busy month for news with March year-end companies
reporting first half results for the six months to September,
and many June year-end companies providing trading
updates at their annual meetings.
Contact Energy (flat) announced a delay in commissioning
its new Tauhara geothermal plant. The 174-megawatt plant
is now expected to be commissioned in the September
2024 quarter. The delay is due to pipe damage which
arose during stress-testing, reflecting design issues that must
be worked through. Despite the setback, Tauhara will still
be a landmark project for Contact as its total build cost
is around 30% below management’s estimate of long-run
power prices.
Delegat (-16%) reduced its sales volume guidance for the
current year 5.5% to 3.614 million cases and its operating
net profit forecast from $57-61 million (from $62-67
million). The company has seen distributors and retailers
reducing their inventory holdings now that supply chains
are operating more freely compared to previous years.
EBOS (+6%) was in the headlines during the month on the
prospect of acquiring pet retail and veterinary business
Greencross, but the transaction failed to materialise. EBOS
also released a four-month trading update, which showed
the company had a strong October with growth in revenue
and earnings building since its three-month trading update
the month prior.
Fisher & Paykel Healthcare (+13%) delivered first half
revenue and net profit slightly ahead of guidance issued
at the company's annual meeting in August, which is
supportive of the longer-term earnings trajectory of
the business. Across both the Hospital and Homecare
divisions the revenue growth was supported by strong
contributions from new products, with obstructive sleep
apnea masks and anaesthesia products the standout
growth contributors.
Infratil (flat) reported its half-year result. There were few
surprises, although the updated range for full-year earnings
guidance was up slightly (2%) at the mid-point. The lack of
material new news reflects the company’s recent updates
on key businesses Longroad and CDC, as we have
discussed in prior months.
Mainfreight (+18%) saw its share price recover strongly
after releasing its first half result. The result showed
a marked improvement in its second quarter, having
provided a weak first quarter trading update at its annual
meeting in July. Despite the subdued trading environment,
the New Zealand and Australian Transport businesses are
performing better than a year ago as a result of winning
new customers. In the Air & Ocean freight forwarding
business, weekly profits have found a consistent level after
reducing from elevated levels in the last couple of years.
This provides confidence that the business can maintain
profitability at well above pre COVID levels. The company
has now seen its 'sinking lid' approach to managing
costs have enough time to deliver gains, with 500 fewer
people in the business versus six months ago due to natural
attrition. The team has expressed confidence that it can
grow from this level through its long-term organic growth
strategy now that trading conditions have 'normalised'.
Ryman (-5%) delivered its first half result. Unlike smaller
peers who reported during the month (although Summerset
did not report), Ryman has demonstrated improving
operating cashflow and maintained its gearing in check.
The company’s decision process indicates that they won’t
push ahead on development sites that do not make sense
in the current environment. Management's initiatives to
improve the operating performance make sense to us but
will be an ongoing process of improvements and will take
time before we see the benefits. The company reduced this
year’s unit build rate as it consolidates its business around
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
December 2023
KFL NAV
$
1.25
$
1. 1 8
Share Price
DISCOUNT
1
5.4
%
as at 30 November 2023
Warrant Price
$
0.0 3

2
KEY DETAILS
as at 30 November 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
$396m
GEARING
None (maximum permitted 20%
of gross asset value)
SECTOR SPLIT
as at 30 November 2023
3
%
32
%
9
%
MATERIALS
HEALTH CARE
5
%
CONSUMER
STAPLES

UTILITIES
CASH
1
%
INFORMATION
TECHNOLOGY
3
%
its solid core and more measured growth. Ryman continues
to deliver on resident expectations, especially around care,
and its brand remains strong with residents.
Vista (+5%) announced two large existing European
cinema exhibitor customers, Vue and Pathé, have
committed to transition to its new generation digital and
cloud products. Between them the customers comprise of
around 7% of Vista's installed sites.
Vulcan Steel (flat) delivered a trading update at its annual
meeting for the first four months of the new financial year.
New Zealand steel distribution volumes have remained
Matt Peek
Portfolio Manager
Fisher Funds Management Limited
47
%
INDUSTRIALS
subdued, as a result of the economic landscape and
potentially compounded by uncertainty around the
October election. It has seen some early 'green shoots'
in November although is cautious that it may take some
months for activity levels to sustainably improve.

33
TOTAL SHAREHOLDER RETURN to 30 November 2023
NOVEMBER'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 30 November 2023
MAINFREIGHT
+18
%
FISHER & PAYKEL
HEALTHCARE
+13
%
FREIGHTWAYS
+10
%
MERIDAN ENERGY
+8
%
DELEGAT GROUP
- 16
%
INFRATIL
17
%
FISHER & PAYKEL
HEALTHCARE
16
%
AUCKLAND
INTERNATIONAL
AIRPORT
15
%
MAINFREIGHT
9
%
SUMMERSET
7
%
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(0.7%)(8.3%)(7.6%)(8.8%)+6.9%
Adjusted NAV Return+5.1%(3.1%)(2.8%)(3.6%)+7.6%
Portfolio Performance
Gross Performance Return+5.3%(2.8%)(1.7%)(2.5%)+9.8%
S&P/NZX50G Index+5.3%(1.9%)(1.9%)(3.9%)+5.1%
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 30 November 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