KFL – November 2024 monthly update

1
A WORD FROM THE MANAGER
The Kingfish portfolio gross performance return and Adjusted
NAV return in October were +2.8% and +2.5% respectively,
versus the New Zealand shares benchmark S&P/NZX 50 return
of +1.7%.
EBOS (+1%) delivered a solid first quarter trading update at its
annual meeting with its preferred measure of operating profit
(underlying earnings before interest, tax, depreciation and
amortisation, and excluding its Chemist Warehouse Australia
contract, which ceased prior to the period) up +7.4% on the
same quarter a year ago. EBOS also reiterated its guidance for
current year of A$575-600m million (growth of around 5-10%).
Freightways (+15%) provided its habitual first quarter trading
update at its annual meeting. The company noted it is "yet to
see any green shoots in the NZ economy but things have not
worsened". Despite a difficult environment for courier volumes,
the company continues to benefit from customer wins in its
express package businesses which are keeping volumes flat
as opposed to falling with same-customer activity. It has also
been able to continue to lift pricing from low levels (an industry
legacy) to better reflect the value of its service while benefitting
from a slowdown in cost inflation which has pressured profit
margins in recent years. This saw its underlying operating
earnings grow +8.5% on the same period last year on a +7.5%
increase in revenue and illustrates the potential for strong
growth should parcel volume growth accelerate.
Infratil (+3%) announced a 22% increase in CDC Data Centres’
construction pipeline. This contributed to a 6% increase in the
independent valuation for CDC over the three months to 30
September. Construction began at CDC’s Marsden Park site,
a 504MW data centre campus which will be the largest in the
Southern Hemisphere. Infratil also announced that its proposed
acquisition of Console Connect, a software defined networking
business, won’t proceed as certain conditions weren’t met.
Mainfreight (+0.4%) hosted investors in Dallas, showcasing
its warehouse and the new transport cross-dock under
construction. The update also included management
presentations from nine of the senior leadership team and
the release of the company's preliminary first half results
for the six months to September. The 43,000 square metre
warehouse walk-through showcased the strength of the
company's offering, with a strong skew towards FMCG
2

products and customer anecdotes supportive of the strategy
to grow existing customers across multiple products and
geographies. The cross-dock will have 82-doors and be the first
premium transport facility in its North American network, plus
management were able to point to multiple areas where the site
will create efficiency and enhance quality. We continue to view
higher quality facilities as just one pre-condition for success
in the lucrative US less-than-truckload freight market, in
conjunction with continuing to build scale in "everyday freight"
and, with it, density on line-haul routes.
The trading update was broadly in line with expectations, as
reflected in the limited share price reaction. Australia continues
to be the highlight, with solid growth continuing (+19% revenue
for the half and +8% profit before tax, or PBT), while it was also
encouraging to see improvement in Europe (PBT -3% for first
15 weeks at the annual meeting has turned around to +6%
for 26 weeks). The company helpfully gave greater visibility
into current problem areas, including weakness in transport
operations in New Zealand (PBT -23%) and the Americas (loss
before tax increased from around $0.10m per week in the
prior corresponding period to $0.27m per week for the latest
half). In the case of New Zealand, the reduction in profit is due
to the combination of lower volumes due to weak economic
conditions and the concurrent strong investment into new
facilities.
The business's leading market position and strong long term
track record give confidence that it will be able to recover
the cyclical dip in profitability as volumes improve. In the US,
the team reiterated a focus on improving profitability before
expanding further and that some loss-making branches
are seeing new business gains but noted that material
improvement in profitability will take some time. Warehousing
continues to suffer from the transition to new, scale facilities
which has seen temporarily increased costs short term (PBT
margin as a percent of revenue of around 5% versus over 8%
previously). Air & Ocean freight forwarding saw PBT per week
improve from the annual meeting update.
1
Share Price Discount to NAV (using the net asset value per share, after expenses, fees and tax, to four decimal places).
2
Fast-Moving Consumer Goods
MONTHLY UPDATE
November 2024
KFL NAV
$
1.45
$
1.26
SHARE PRICE
DISCOUNT
1
13.0
%
as at 31 October 2024

2
KEY DETAILS
as at 31 October 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
$1.30
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
344m
MARKET CAPITALISATION
$433m
GEARING
None (maximum permitted 20%
of gross asset value)
SECTOR SPLIT
as at 31 October 2024
Matt Peek
Portfolio Manager
Fisher Funds Management Limited
Overall, the event showcased the huge opportunity in the US,
but equally the challenge to unlock it with Mainfreight yet to
find its stride in transport. The fact Australia has strong traction
and has now eclipsed New Zealand as Mainfreight's top profit
centre after sticking at the task for multiple decades is an apt
analogy, although we and the company are eyes-wide-open that
the US market will be a tougher nut to crack.
Summerset (+4%) reported unit sales for the September
quarter. Despite the property market remaining slow going, it
achieved +11% growth in total sales volumes versus the same
quarter last year, with new sales volumes down -3% and resales
volumes up a very strong +26%. As expected, Summerset also
announced the first stage of its flagship St Johns village was
delivered on time during the quarter and we look forward to
another visit to the site in December as part of Summerset's
investor day.
1
%
25
%
9
%
CASH
INDUSTRIALS
6
%

UTILITIES
MATERIALS
1
%
CONSUMER
STAPLES
4
%
37
%
HEALTHCARE
INFORMATION
TECHNOLOGY
17
%

FINANCIALS

33
TOTAL SHAREHOLDER RETURN to 31 October 2024
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 2024
RYMAN HEALTHCARE
+16
%
FREIGHTWAYS
+15
%
VISTA GROUP
+7
%
CONTACT ENERGY
+5
%
a2 MILK COMPANY
-7
%
FISHER & PAYKEL
HEALTHCARE
18
%
MAINFREIGHT
17
%
SUMMERSET
10
%
INFRATIL
8
%
AUCKLAND
INTERNATIONAL
AIRPORT
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+0.0%(1.0%)+16.0%(7.1%)+6.0%
Adjusted NAV Return+2.5%+6.8%+29.1%+0.2%+7.9%
Portfolio Performance
Gross Performance Return+2.8%+7.5%+31.9%+1.5%+9.8%
S&P/NZX50G Index+1.7%+1.9%+17.5%(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 October 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
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.
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
Warrants
»Warrants put Kingfish in a better position to grow further,
operate efficiently, and pursue other capital structure
initiatives as appropriate
»A warrant is the right, not the obligation, to purchase an
ordinary share in Kingfish at a fixed price on a fixed date
»There are currently no Kingfish warrants on issue