KFL – March 2024 monthly update

1
A WORD FROM THE MANAGER
New Zealand shares were weak during February (S&P/
NZX 50 gross index −1.1%). The Kingfish portfolio gross
performance return and adjusted NAV return were both
−0.9%. It was a busy month for news with June and
December year-end companies reporting financial results.
a2 Milk (+20%) saw its share price perform strongly as
it released its half year result with revenue and earnings
above its plan, and consequently increased its revenue
guidance for the full financial year. The company saw
a smooth transition to its new Chinese Label product
formulation and has continued to take share in most
market segments, with brand health metrics continuing
to improve. The company continues to target revenue of
over $2 billion over time from $1.6 billion at present.
Delegat (+0.6%) reported results for its six months
to December 2023, with operating earnings in line
with the previous period. The company saw reduced
demand in the US as a result of distributors managing
down inventory levels as supply chains become more
predictable. This saw volumes in North America drop 7%
despite over 6% growth in underlying sales, as recorded
from retailers' checkout data. This was an aberration
given the company has grown volumes in this market
every year for over 10 years and expects to be able to
continue doing so into the future. The company has seen
profit margins compress due to cost pressures, however,
has now successfully raised prices in several markets as it
begins to recoup profitability.
EBOS (+0.1%) delivered a solid result and we think
management has increasing confidence across both
revenue and cost-reduction opportunities of the business.
EBOS managed to achieve roughly double the market
rate of growth from its pharmacy business and has
targets to achieve over $300 million in organic revenue
gains from taking market share in this division over the
next few years. The company's hospital distribution
business also demonstrated impressive market share
gains, which combined with sales of high value speciality
medicines, saw revenue grow 15%. Animal Care revenue
was slightly weaker than anticipated, as pet ownership
growth has slowed. However, the team continues to
improve profit margins and remains confident that new
product development can assist in delivering stronger
revenue growth moving forward.
Freightways (+0.1%) reported its result for the six months
to December 2023 in line with expectations. This came
as a welcome result given 2023 had seen a deteriorating
economic environment, with same-customer volumes in
its New Zealand network courier business stabilising at
around 5% down on the previous year. Market share
gains saw overall volumes rise 1.8% year-on-year despite
the tough conditions. The company is also leveraging
the skills from its Allied Express oversized item delivery
business in Australia into this segment in New Zealand,
where it sees potential growth.
Ryman (−19%) disappointingly reduced its underlying
profit guidance for the current financial year. The key
driver was slower new sales for the second half. Ryman
pointed to a combination of tough market conditions (with
January sales particularly poor) and four incomplete main
buildings hampering the immediate value proposition for
prospective residents at these villages. Late in the month
we visited a recently completed village in Melbourne,
reinforcing the view that the brand and resident
proposition once developed continues to resonate well.
Summerset (+0.6%) delivered a solid result for its
financial year (calendar 2023), which saw its share price
remain above water despite the double-digit selloff seen
in the other listed retirement village operators. Summerset
had pre-announced record new sales and resales early
in January but followed this news with strong underlying
earnings up +11% on the prior period, including healthy
profit margins despite the soft residential property market.
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
March 2024
KFL NAV
$
1. 3 2
$
1. 2 7
Share Price
DISCOUNT
1
3.3
%
as at 29 February 2024
Warrant Price
$
0.0 2

2
KEY DETAILS
as at 29 February 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 29 February 2024
1
%
33
%
9
%
CASH
HEALTH CARE
5
%
CONSUMER
STAPLES

UTILITIES
MATERIALS
2
%
INFORMATION
TECHNOLOGY
4
%
46
%
INDUSTRIALS
Matt Peek
Portfolio Manager
Fisher Funds Management Limited
Vista Group (−1%) reported a stronger than expected
second half of the 2023 year, driven by slightly larger
than expected cost savings from its organisational
restructure ($10 million in savings annually). First revenue
guidance for 2024 represents recurring revenue growth
of 8−12%. When combined with subdued cost growth
this should see operating profits grow strongly in the year
ahead. During the month the company also hosted over
100 representatives from its customer base at its product
conference in New Zealand and is confident that it will
continue to sign up new customers to drive growth in
2025 and beyond as its customer base progressively
adopts its cloud platform as a replacement for its on-
premise solution.
Vulcan Steel (+5%) reported its half yearly result which
saw volumes decline 7% on the prior corresponding
period, primarily as a result of weak activity in New
Zealand. Trading conditions here were particularly
poor during the period as customers hit pause around
the October 2023 general election, as they waited to
see what the outcome would be before committing to
projects. The team have continued to win accounts, with
customer numbers growing by 6% on the previous half,
and expenses under control. They have also opened
three ‘hybrid’ aluminium/stainless sites with another four
set to open by the end of June and a pathway to 20 over
time, with each site requiring limited investment and they
are set to generate an uplift in profits within a relatively
short time frame.

33
TOTAL SHAREHOLDER RETURN to 29 February 2024
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 29 February 2024
A2 MILK COMPANY
+20
%
MERIDIAN ENERGY
+8
%
VULCAN STEEL
+5
%
MAINFREIGHT
-6
%
RYMAN HEALTHCARE
-19
%
INFRATIL
17
%
MAINFREIGHT
16
%
AUCKLAND
INTERNATIONAL
AIRPORT
15
%
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(0.2%)+9.9%(2.6%)(4.5%)+8.2%
Adjusted NAV Return(0.9%)+5.2%(0.0%)(1.4%)+6.8%
Portfolio Performance
Gross Performance Return(0.9%)+5.7%+1.3%(0.3%)+8.9%
S&P/NZX50G Index(1.1%)+3.6%(1.3%)(1.3%)+4.7%
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 29 February 2024

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