KFL - June 2025 Quarter Newsletter

The June quarter saw Kingfish deliver a gross performance return of
+2.3% and an adjusted NAV return of +1.9%, compared to the +2.7%
return of the S&P/NZX50G benchmark index.
The NZ market often proves more resilient in bouts of
global volatility
The headline returns for the quarter did not tell the full story. Barely a
week into the quarter, by 7 April, global share markets were in a spin
following the ‘Liberation Day’ tariff announcements. While the US S&P
500 was down -9.8% and Australia’s ASX 200 down -6.4%, the S&P/NZX
50 had suffered a more moderate -4.0% pullback.
A large part of this is because the composition of the New Zealand share
market is quite different. Our market has a reasonably large exposure to
utilities, property, telecommunications, and healthcare companies that
tend not to be as volatile during global geopolitical shocks. At quarter
end, these sectors comprised around 65% of the NZ market and 60%
of Kingfish, compared to around 24% of the US S&P 500 index and only
21% of the Australian ASX 200 index.
The NZ market has been getting more concentrated and ‘defensive’ in
recent years. Ten years ago, these sectors were only around 55% of the
NZ share market. Further, the top ten companies now comprise around
68% of the NZX 50 benchmark index, up from 53% ten years ago. So, our
market has become noticeably more defensive and has also become
more top-heavy. Why is this?
Firstly, few new, significantly sized companies have listed on the market.
The last large-scale IPOs to hit the NZX were Vulcan Steel and Winton
in late 2021. Contrast this to the ASX which in recent weeks has seen a
flurry of activity including the re-listing of airline Virgin (A$2.3 billion) and
listing of retirement living company GemLife (A$1.6b) which followed
several large IPOs in 2024. Many impressive local Kiwi companies have
been well funded in private markets and have not needed to come to the
NZX for funding, such as Kiwi electronic herd management company
Halter, which in June raised a round of $165m in funding at a $1.65b
valuation.
Secondly, many companies have delisted due to takeovers, including
retirement operator Arvida late last year (NZ$1.2b). We are likely to see
other companies disappear such as Manawa Energy which is due to be
acquired by Contact Energy in July for around $2.0b. Campervan rental
business Tourism Holdings has recently become subject to a $500m
approach by private equity.
Thirdly, high quality companies that have been listed mainstays of
the local market, have adeptly utilised their market listings to access
liquidity. That is, they have raised new funding when required and
also cornerstone shareholders have made use of demand to sell their
shareholdings when their needs have changed. Portfolio holding EBOS
saw both of these use-cases during the quarter, raising around $270
million to fund a new acquisition in early April despite the market turmoil.
Longtime EBOS shareholder Sybos then sold around 13% of its 18%
holding in May for $960 million (Kingfish acquired some of the shares
at a nice price). EBOS has grown from a 1.4% weight in the NZX 50 to
around 5.8% over the last 10 years through a combination of consistently
good business performance and periodically raising additional capital for
growth (taking it from 23rd largest index weight to 5th).
What does this mean for the Kingfish portfolio? Fortunately, as long as
our portfolio companies perform well and remain listed then the portfolio
can continue to deliver for shareholders. Owning the likes of Fisher &
Paykel Healthcare, EBOS, Mainfreight, and Infratil over time has delivered
for Kingfish as their businesses have grown. Over longer periods of
time, enough quality new listings are needed to ensure a deep pool of
companies exist in the market – the likes of Summerset and Vista came
into the portfolio after listing around a decade ago.
The results of Kingfish’s largest positions drove solid
overall performance during the quarter
Overall performance was led in May by several portfolio stock reporting
encouraging full year results including Mainfreight (+9% in the quarter),
Fisher & Paykel Healthcare (+8%) and Infratil (+3%).
Mainfreight has seen a mixture of performances by region and product,
reflecting diverging market conditions. Australia remains the key growth
driver with robust growth, while its European business is also showing
improved performance. Air & Ocean freight forwarding has seen limited
impact of tariffs other than the China-US route, which is only around 10%
of that business unit.
Fisher & Paykel Healthcare is seeing robust ongoing demand for its
hospital hardware, supported in part by product innovation, and strong
uptake of new applications like anaesthesia, in addition to its continued
progress in changing clinical practice globally to increased prevalence
of high flow nasal oxygen therapy. Performance in its homecare division
was also solid, with growth supported by the launch of new obstructive
sleep apnea masks like Solo and Nova.
The New Zealand economy remains subdued, as rural
green shoots are yet to broaden
We have been waiting for some time for the subdued levels of economic
activity in New Zealand to pick up, and optimistic that 2025 would finally
see some improvement. As this year has evolved, it’s become clear that
despite having some more dollars in the wallet after paying the mortgage
and other basic expenses, households are prioritising fiscal prudence
rather than spending. Activity levels have stabilised at relatively low levels
since the middle of 2024.
At its result announcement, Mainfreight noted that it was still seeing
‘downtrading’ prevalent across its customers, with consumers of a
particularly value-conscious mindset and retailers needing to resort to
discounting to stimulate activity.
The rural sector has seen improved prices translate into more income
for farmers, not just dairy but pipfruit and meat too. Fonterra’s expected
payout of around $10 per kilogram of milk solids will likely be up almost
30% from the $7.83 last season. However, despite clear signs that rural
economies are seeing some more optimism and activity, it is taking time
for this activity to spread more broadly.
1
Share price discount to NAV (including warrant price on a pro-rated basis and using the net asset value per share, after expense, fees and tax, to four decimal places).
QUARTERLY NEWSLETTER
1 April 2025 – 30 June 2025
as at 30 June 2025
1
KFL NAV
$
1.35
DISCOUNT
1
3.5
%
$
0.04
Warrant Price
Matt Peek
Portfolio Manager
Fisher Funds Management Limited
14 July 2025
$
1.29
Share Price

2
Disclaimer: The information in this newsletter 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 newsletter 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 newsletter 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 may have no correlation with results historically achieved.
3 Months
3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+3.8%+3.3%+4.8%
Adjusted NAV Return+1.9%+8.4%+4.7%
Portfolio Performance
Gross Performance Return +2.3%+10.0%+6.2%
S&P/NZX50G Index+2.7%+5.1%+1.9%

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 capital
allocation decisions after expenses, fees and tax,
»adjusted NAV return – the percentage change in the adjusted NAV value,
»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 newsletter 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 kingfish.co.nz/about-kingfish/kingfish-policies.
LISTED COMPANIES% Holding
Auckland Intl Airport6.9%
Contact Energy4.0%
Delegat Group1.1%
EBOS Group8.8%
Fisher & Paykel Healthcare19.1%
Freightways4.0%
Infratil12.4%
Mainfreight10.4%
Mercury NZ Limited 3.2%
Meridian Energy3.4%
Port of Tauranga3.5%
Summerset9.1%
The A2 Milk Company3.0%
Vista Group International6.2%
Vulcan Steel1.0%
Equity Total96.1%
New Zealand dollar cash3.9%
TOTAL100.0%
PORTFOLIO HOLDINGS SUMMARY
as at 30 June 2025
COMPANY NEWS
Dividend Paid 27 June 2025
A dividend of 2.75 cents per share was paid to Kingfish shareholders
on 27 June 2025 under the quarterly distribution policy. Interest
in Kingfish’s dividend reinvestment plan (DRP) remains high with
39% of shareholders participating in the plan. Shares issued to
DRP participants are at a 3% discount to market price. If you would
like to participate in the DRP, please contact our share registrar,
Computershare on (09) 488 8777.
PERFORMANCE
as at 30 June 2025
Kingfish Limited
Private Bag 93502, Takapuna, Auckland 0740, New Zealand
Phone: +64 9 489 7094
Email: enquire@kingfish.co.nz | www.kingfish.co.nz
If you would like to receive future
newsletters electronically please email
us at enquire@kingfish.co.nz
SIGNIFICANT RETURNS
IMPACTING THE PORTFOLIO
DURING THE QUARTER
MAINFREIGHT
+9
%
FISHER & PAYKEL
HEALTHCARE
+8
%
MERCURY
+7
%
VISTA GROUP
-7
%
VULCAN STEEL
-30
%