KFL – February 2024 monthly update

1
A WORD FROM THE MANAGER
New Zealand shares started the year on a positive note
in January with the S&P/NZX 50 gross index up +0.9%
for the month. The Kingfish portfolio Gross Performance
Return and the Adjusted NAV Return were ahead of the
market at +1.9% and +1.6% respectively.
a2 Milk (+12%) shares increased as sentiment improved
around the Chinese infant formula market following the
release of official statistics that 9.0 million babies were
born in 2023. This was a better figure than many feared
(around 8 million). This is potentially the first sign of
a bounce back after Chinese mothers-in-waiting were
advised to delay their pregnancies until 2023, due to
COVID vaccines. Monthly data suggests a2 Milk has
continued to gain market share and has grown infant
formula sales in recent months despite a difficult market.
Infratil (+5%) provided an update on progress at its
key asset Canberra Data Centres (CDC), which is the
infrastructure investment company’s largest holding
by value. CDC has recently signed a significant value
of new contracts – 110MW (megawatts) recently and
200MW over the last year – which supports its decision
to accelerate development of new capacity to capture
the growth in demand it is seeing. The acceleration in
growth is striking; CDC expects to double the size of
the business within just two years, from 268MW of built
capacity today. The capacity it has under construction
has lifted by 44% in just the last three months. Further, the
expected size of the business in 2029 (when its current
pipeline of sites is built out) has grown to 1220MW,
more than 4 times its current capacity. The upwards
inflection in growth from a large base, while maintaining
attractive unit economics, validates CDC's leading
position and runway for growth. We think the market
continues to underestimate CDC's potential and does not
give sufficient credit for its growth runway despite a very
strong track record.
Summerset (+7%) delivered a positive sales update for
the December 2023 quarter, with total sales of 360 units
up 30% compared to the December 2022 quarter, as
both new sales and resales hit new record numbers. The
company also delivered its first villas in Australia at the
Cranbourne North site, which is a pleasing milestone as
the company's first Melbourne site has taken longer than
initially expected. We think that with a growing number
of sites at various stages of progress, its Australian
business will now be able to achieve a more regular
cadence of product delivery in coming years. Summerset
remains our preferred investment in the retirement village
sector. This is due to its proven ability to deliver and sell
villages, with superior development economics versus
peers as a result of its primary focus on broadacre sites.
It has also been able to recycle development profits into
new villages to manage its debt levels appropriately.
This in turn has allowed it to continue investing in
development land for future villages, which means it also
has a more attractive growth profile than its competitors.
Auckland Airport (−4%) announced that it, alongside
Christchurch and Wellington airports, has asked the
High Court to pursue a merits review of the Commerce
Commission's recent Input Methodologies decision.
The companies are contesting the regulated return that
airports may earn, and the approach used to determine
it. Such processes can take 2-3 years with the last one
heard by the High Court over a decade ago.The review
relates to the charges Auckland Airport can set in respect
of its aeronautical operations for the 2027−2032 period.
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
February 2024
KFL NAV
$
1. 3 3
$
1. 2 7
Share Price
DISCOUNT
1
3.9
%
as at 31 January 2024
Warrant Price
$
0.0 3
Matt Peek
Portfolio Manager
Fisher Funds Management Limited

2
KEY DETAILS
as at 31 January 2024
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
$1.39
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
338m
MARKET CAPITALISATION
$429m
GEARING
None (maximum permitted 20%
of gross asset value)
SECTOR SPLIT
as at 31 January 2024
1
%
32
%
9
%
CASH
HEALTH CARE
4
%
CONSUMER
STAPLES

UTILITIES
MATERIALS
2
%
INFORMATION
TECHNOLOGY
4
%
48
%
INDUSTRIALS
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+4.3%+9.4%(1.0%)(7.3%)+9.0%
Adjusted NAV Return+1.6%+11.6%+0.0%(2.4%)+8.3%
Portfolio Performance
Gross Performance Return+1.9%+12.2%+1.3%(1.2%)+10.5%
S&P/NZX50G Index+0.9%+10.4%(0.8%)(3.3%)+5.7%
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 January 2024

33
TOTAL SHAREHOLDER RETURN to 31 January 2024
JANUARY'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 January 2024
A2 MILK
+12
%
SUMMERSET
+7
%
EBOS GROUP
+6
%
INFRATIL
+5
%
PORT OF TAURANGA
-5
%
INFRATIL
18
%
FISHER & PAYKEL
HEALTHCARE
15
%
AUCKLAND
INTERNATIONAL
AIRPORT
15
%
MAINFREIGHT
9
%
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

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