KFL – December 2024 monthly update

1
A WORD FROM THE MANAGER
The Kingfish portfolio gross performance return and
Adjusted NAV return in November were +3.2% and +2.8%
respectively, versus the New Zealand shares benchmark
S&P/NZX 50 return of +3.4%.
a2 Milk (+0.2%) provided updated guidance at its annual
meeting, increasing sales guidance from "mid" single digit
growth to "mid to high", while maintaining profit margin
guidance. This was contrary to fears that its supply chain
challenges earlier in the year may have dragged on and
impacted sales, although the higher revenue guidance
is of limited impact as it is in low margin products. The
company will commence paying regular dividends in early
2025 of 60-80% of underlying profit, given low reinvestment
requirements mean a significant amount of almost $1
billion in cash has accrued on the balance sheet.
Fisher & Paykel Healthcare (+6%) reported a strong first
half result, which demonstrated strong sales performance
across all key parts of the business, totalling +17% in
constant currency terms, which is above its aspiration
of +12% (sustainably doubling revenue every 5-6 years).
The company also made progress in improving its gross
margins to 61.9%, up from 60.5%, on its way back towards
its long term 65% target. When combined with controlled
operating expenses growth of +11%, this saw net profit
grow a strong +43%. In the Hospital division, F&P's "new
applications" consumables grew +24% and the company
noted it is seeing pleasing rates of change in clinical
practice, which takes time but is the ultimate driver of
increasing uptake of its products. It called out continued
strong growth in its anaesthesia offering off a low base
and is seeing its experience in North America mirror strong
growth in Australia where the products have been available
longer. Obstructive sleep apnoea masks have been a
standout for the last couple of years given the successful
release of new masks, but continued to grow well at +14%,
and the immediate outlook continues to be positive after
the launch of three new masks within the last 12 months
and the recent debut of several in the important US market.
Infratil (+3%) reported first half results, which exceeded
expectations. CDC Data Centres’ independent valuation
and revised pipeline had been reported previously.
Telecommunications company One New Zealand (One)
is on track to meet full year earnings guidance, despite
the well-publicised struggles of peer Spark (-38% year to
date, and not owned by Kingfish). One has benefitted from
lower exposure to the enterprise and government sectors
and IT services, all of which have seen spending under
pressure this year. One had also proactively managed
costs in response to the tougher economic climate.
Offsetting this, US renewable energy business Longroad
was behind expectations. Management flagged that its
development programme is behind plan, however earnings
yields on developments are higher than expectations,
which is mitigating the impact of slower development.
Donald Trump has been a vocal opponent of the tax credits
received by renewable energy developers like Longroad.
Regardless of whether these tax cuts are ultimately
removed, Longroad is likely to experience slower activity
levels as developers and customers evaluate the changing
landscape.
Ryman (-6%) reported a disappointing half year result,
which saw it abandon its goal of positive free cash
flow in the current financial year, courtesy of the sales
environment remaining tougher than it expected back in
early September. As units are completed and sold, and
the development book is wound down for the meantime,
cash flow will improve in the coming years. This will be
supported by cost reductions, with the company reporting
$18 million of cost savings, and visibility of at least the
same again in the next financial year. Chair Dean Hamilton
expressed confidence in debt reducing from $2.56 billion
to $2 billion over the coming years as developments
are completed and sold down, and operating cash flow
becomes positive. Positively, the company has seen
customer interest in its offering remain strong despite
moving to a higher deferred management fee of 30%,
1
Share Price Discount to NAV (using the net asset value per share, after expenses, fees and tax, to four decimal places).
MONTHLY UPDATE
December 2024
KFL NAV
$
1.49
$
1.35
SHARE PRICE
DISCOUNT
1
9.3
%
as at 30 November 2024

2
KEY DETAILS
as at 30 November 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
343m
MARKET CAPITALISATION
$464m
GEARING
None (maximum permitted 20%
of gross asset value)
SECTOR SPLIT
as at 30 November 2024
Matt Peek
Portfolio Manager
Fisher Funds Management Limited
versus its longstanding 20%, noting that it has held the list
price on units (so the higher fees will benefit the company
over time). Disappointingly, the company made a further
$235 million downwards adjustment to the valuation of
its villages (34 cents per share), despite having moved
to clean up legacy accounting practices at the result in
May. We remain positive that the increased transparency,
changes made to the business, together with refreshed
board and capable new CEO (Naomi James commencing
during November) mean Ryman is set up to deliver
improving performance.
1
%
25
%
9
%
CASH
INDUSTRIALS
6
%

UTILITIES
MATERIALS
2
%
CONSUMER
STAPLES
4
%
38
%
HEALTHCARE
INFORMATION
TECHNOLOGY
15
%

FINANCIALS

33
TOTAL SHAREHOLDER RETURN to 30 November 2024
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 2024
AUCKLAND
INTERNATIONAL
AIRPORT
+6
%
FISHER & PAYKEL
HEALTHCARE
+6
%
CONTACT
ENERGY
+5
%
MERIDIAN
ENERGY
+4
%
RYMAN
HEALTHCARE
-6
%
FISHER & PAYKEL
HEALTHCARE
19
%
MAINFREIGHT
15
%
SUMMERSET
10
%
INFRATIL
9
%
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+7.1%+5.2%+25.1%(4.6%)+6.2%
Adjusted NAV Return+2.8%+6.5%+26.2%+2.2%+6.9%
Portfolio Performance
Gross Performance Return+3.2%+7.5%+29.3%+3.7%+8.7%
S&P/NZX50G Index+3.4%+5.0%+15.3%+0.9%+2.9%
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 30 November 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