KFL - June 2024 Monthly Update

1
A WORD FROM THE MANAGER
New Zealand shares declined during May (S&P/NZX 50 gross
index -0.8%). The Kingfish portfolio Gross Performance Return
and Adjusted NAV return performed better than this at -0.3%
and -0.4% respectively. It was a busy month with March year
end companies reporting their 2024 financial year results, plus
a range of other updates.
Contact Energy (+6%) and Meridian Energy (+13%)
announced 20-year agreements to supply electricity to the
Tiwai Point aluminium smelter. The smelter consumes around
12% of New Zealand’s electricity and many new generation
projects have been effectively on hold pending confirmation
of the smelter's future (with no new generation immediately
required if it had shut down). The certainty also means these
companies will likely be able to commit to a higher level of
dividends, supported by higher earnings from better pricing in
the new long-term agreement.
Delegat (-31%) announced it concluded its 2024 harvest with
grape tonnage down around 25% versus the prior year as
cooler growing conditions reduced yields. This will mean the
company needs to reduce its case sale volumes in the 2025
financial year and carefully manage inventories to navigate the
outcome. While unfortunate, as a viticulture company Delegat
has navigated similar shortfalls in the past, such as 2015 and
gone on to grow volumes and profits over time. The large
share price reaction reflects the likelihood of a meaningful
step down in profit in 2025, before a recovery.
Fisher & Paykel Healthcare (+4%) delivered its 2024 financial
year result with limited surprises, with the result largely
foreshadowed in March. The midpoint of maiden revenue
($1.9-2.0 billion) and net profit ($310-360 million) guidance
for the new financial year are in line with expectations. The
company's earnings outlook is particularly strong for the
coming years. All areas of the business are demonstrating
solid revenue growth momentum. Its Optiflow respiratory
support penetration in the hospital is increasing as evidenced
by growth in consumables despite lower hospitalisation rates.
In particular its anaesthesia and obstructive sleep apnea
masks are contributing outstanding growth. The outlook
for ongoing future growth is supported by management's
confidence in a strong pipeline of new product development.
The company also reiterated its 65% gross margin target
(versus 61.1% underlying in the 2024 financial year), with a
1.0-1.5% improvement expected in the coming year from
improved efficiencies and ongoing continuous improvement
projects.
Infratil (-3%) reported its 2024 result with its core
‘proportionate earnings’ measure above guidance. However,
maiden guidance for growth in the 2025 year was a
little below expectations, which dampened the result.
Telecommunications provider One NZ’s profit outlook is flat as
the business is constrained by a slowdown in the enterprise
and government market, despite solid performance in the
core mobile business. The highlight of the result was again
CDC Data Centres, which expects an acceleration in earnings
growth from 2026 onwards, from around 20% to 30-40% per
year, off the back of new capacity developed and leased.
Infratil confirmed that CDC is seeking consents for a third
Sydney site at Marsden Park. The site could be as large as
500MW, which would make it one of the largest data centres
globally and a further step up from the current 1220MW book
of existing, in development and pipeline capacity. Some of the
smaller portfolio companies including Wellington Airport and
its Diagnostic Imaging business delivered solid performance.
Mainfreight (+2%) delivered its 2024 financial year result
modestly ahead of expectations, with profit before tax (PBT)
of $395 million for the year. This was a credible result given
progressively softening trading conditions in its core New
Zealand and Australian markets over the year. While the
company itself notes "we should have performed better", the
performance in those divisions held up significantly better
than other Australasian consumer-facing companies. The key
disappointment remains the US Transport business, where the
company is vocally dissatisfied with its progress, however it
remains committed to growth and improvement given the size
of the market opportunity. The company acknowledges the
global economic environment remains fragile, but points to
improved customer recognition across its network and strong
sales pipelines as reasons to remain positive about the short-
and medium-term outlook.
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
June 2024
KFL NAV
$
1.33
$
1.22
Share Price
DISCOUNT
1
8.4
%
as at 31 May 2024
Warrant Price
$
0.00

2
KEY DETAILS
as at 31 May 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
$1.36
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
340m
MARKET CAPITALISATION
$415m
GEARING
None (maximum permitted 20%
of gross asset value)
SECTOR SPLIT
as at 31 May 2024
1
%
33
%
9
%
CASH
HEALTH CARE
5
%
INFORMATION
TECHNOLOGY

UTILITIES
MATERIALS
2
%
CONSUMER
STAPLES
5
%
45
%
INDUSTRIALS
Matt Peek
Portfolio Manager
Fisher Funds Management Limited
Ryman Healthcare's (-11%) operating performance in its 2024
financial result showed improved cashflow from existing
operations and stable net debt. The company reaffirmed its
target for breakeven cash flow for the new year. Consequently,
it lowered its 'build rate' outlook, prioritizing cash flow and
debt reduction over growth. With the recent changes to both
board and management, the result showcased materially
improved disclosure and transparency, but as part of the
'clearing of the decks' some assets were marked down,
reducing net tangible assets by 10% year-on-year to $6.02
per share. We remain of the view that at a share price around
$3.70 Ryman is undervalued relative to its asset backing
and, critically, its brand remains healthy with existing and
prospective residents. That said, it remains early in the throes
of improving cash returns from existing villages and new
developments which is likely needed to see the value gap
close over time.
Vista (+21%) saw Australian private equity firm Potentia
emerge with a 19.9% shareholding acquired from some of the
company's other large shareholders. The stake was acquired
at $2.10, which is a modest premium to the prior close of
$1.84, although we note shares had recently traded as high
as $2.00 following the company's 2023 result release in late
February. We think that Potentia's interest is a further sign
that the company is at a positive inflection point in its journey
to roll out its next generation Cloud-based cinema software
products to customers.

33
TOTAL SHAREHOLDER RETURN to 31 May 2024
MAY'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 May 2024
VISTA GROUP
INTERNATIONAL
+21
%
a2 MILK COMPANY
+15
%
MERIDIAN ENERGY
+13
%
SUMMERSET GROUP
-14
%
DELEGAT GROUP
-31
%
INFRATIL
17
%
MAINFREIGHT
17
%
AUCKLAND
INTERNATIONAL
AIRPORT
14
%
FISHER & PAYKEL
HEALTHCARE
9
%
CONTACT
ENERGY
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
Mar
2024
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return(0.8%)(2.2%)(1.2%)(8.1%)+5.7%
Adjusted NAV Return(0.4%)+3.1%+3.5%(0.8%)+5.9%
Portfolio Performance
Gross Performance Return(0.3%)+3.8%+5.2%+0.5%+7.8%
S&P/NZX50G Index(0.8%)+1.1%+0.5%(1.2%)+3.2%
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 as at 31 May 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