KFL - September 2025 Quarter Newsletter

The September quarter saw Kingfish deliver a gross performance return
of +2.0% and an adjusted NAV return of +1.5%, compared to the +5.5%
return of the S&P/NZX50G benchmark index.
The portfolio saw 11 of its 15 companies deliver positive returns and
the average return across all portfolio companies was +4.4%, but overall
performance was weighed down by declines among some of the larger
positions in the portfolio.
EBOS and Vista sold off after reporting results
with near term investment constraining profits
Healthcare and pet product distributor EBOS (-21%) delivered a slightly
softer full year result than expected, reflected slower growth in some
areas of the business and higher costs. When combined with the
significant additional lease cost of expanding into new facilities with
extra capacity for growth (which had not previously been flagged), this
translates to a year of unexpected flat profits before growth should
resume as utilisation of the excess capacity picks up. EBOS has been
a reliable grower in recent years and so the combination of unexpected
disappointments saw the share price fall sharply. It was unfortunate that
delivery of the disappointing message was left to the incoming CEO, and
we expect may take the passage of time for credibility to be regained
given these dynamics.
Cinema software company Vista (-15%) is delivering solid year-on-year
growth but a key surprise was the company increasing costs in the short
term to accelerate migration of customers to its new cloud product suite
in response to strong demand. The company also provided detail of its
plans to launch embedded payment functionality, which will generate
meaningful new earnings over time.
Several of our New Zealand economic exposures
performed well
Three of the better performers in the portfolio were Vulcan Steel (+32%),
Freightways (+26%) and Port of Tauranga (+11%), which all have
sizeable local businesses.
Steel distributor Vulcan Steel has been seeing daily volumes stabilising
and signs of improvement in some sectors. It also announced the
acquisition of Roofing Industries, a leading player in New Zealand steel
roofing and cladding with a similar culture and business model to Vulcan.
The attractive acquisition price and business fit means Vulcan should
be able to derive some benefits from procurement in greater scale and
in some instances bundling the product offerings to joint customers.
Vulcan has a strong track record of value-adding acquisitions, and we
view Roofing Industries as another example of this. Accordingly, we
participated in the share issue to help fund the acquisition.
Local express logistics operator Freightways has thus far defied the
softer economy. The company has been able to pick up market share
and benefitted from some price increases, although faint green shoots
appear to be coming through with same-customer network courier
volumes in New Zealand improved in the last six months to June (+0.6%
growth) versus the prior six (-0.2% decline). On the economic backdrop
CEO Mark Troughear has recently commented that "I think we are
through the worst of it. It’s been a slow and steady grind upwards."
As I noted earlier, these positive returns were offset by weakness in
the Mainfreight (-5%) and Summerset (-4%) share prices, despite our
expectation that both companies will benefit from a cyclical recovery in
New Zealand.
In July, Mainfreight provided a trading update which showed an
unexpectedly large fall in profit. The company referenced the shorter
trading weeks in April and May and tariff uncertainty during the period,
and alluded to trading improving into June and July, although it did not
provide any figures to quantify this. More recently, in late September, CEO
Don Braid commented that "we are seeing better performance than we
did three months ago."
Retirement operator Summerset continues to see solid growth in unit
sales volumes. The company also shared forecasts for over $12.30
of future net tangible assets per share from current developments,
versus the 30 June figure of $13.18 and quarter-end share price of
$10.68. We believe Summerset has been unfairly tarnished by mediocre
performance from other companies in the sector, despite consistently
doing the basics well, including completing broad-acre village
developments at attractive cash development margins.
Infratil presented a strong fundamental outlook
at its investor day
Infratil (+17%) hosted an investor day in Sydney, which showcased its
portfolio of growth infrastructure investments. Its data centre business
CDC closed out the day with an upbeat presentation, foreshadowing
major contract wins of which 100MW was announced just the following
week. This announcement came as welcome relief after customer
delays meant CDC had previously missed its contracting targets in 2024.
CDC has now secured around 95% of the revenue it needs to deliver its
target of doubling 2025 earnings by 2027.
Longroad Energy, Infratil's developer of US renewable electricity projects,
also provided a positive outlook. Despite changes to tax subsidies,
Longroad is confident that in its strong development pipeline to what is
expected before the changes: around 1.5 gigawatts of renewable energy
annually at attractive mid-teens equity returns.
Infratil's Asian renewable development platform Gurin, which is at a
much earlier stage of development, also expressed confidence in its
large pipeline of opportunities. Its marquee opportunity is Project Vanda,
a large-scale solar and battery storage project in Indonesia which would
deliver consistent green electricity to the constrained Singapore market.
Having sold its longstanding and underwhelming investment in
RetireAustralia for $328m, Infratil reiterated targets for selling off
potentially $1 billion in assets which can’t reach meaningful scale for
its portfolio, which may include Australian diagnostic imaging business
Qscan.
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 July 2025 – 30 September 2025
as at 30 September 2025
1
KFL NAV
$
1.34
DISCOUNT
1
0.0
%
$
0.04
Warrant Price
Matt Peek
Senior Portfolio Manager
Fisher Funds Management Limited
15 October 2025
$
1.33
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+5.2%+5.6%+4.9%
Adjusted NAV Return+1.5%+7.9%+4.3%
Portfolio Performance
Gross Performance Return +2.0%+9.5%+5.8%
S&P/NZX50G Index+5.5%+6.3%+2.5%

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 Airport7.0%
Contact Energy4.0%
Delegat Group1.1%
EBOS Group7.0%
Fisher & Paykel Healthcare19.1%
Freightways4.9%
Infratil13.7%
Mainfreight8.9%
Mercury NZ Limited 3.5%
Meridian Energy3.9%
Port of Tauranga3.8%
Summerset8.7%
The A2 Milk Company3.1%
Vista Group International5.5%
Vulcan Steel1.7%
Equity Total95.9%
New Zealand dollar cash4.1%
TOTAL100.0%
PORTFOLIO HOLDINGS SUMMARY
as at 30 September 2025
COMPANY NEWS
Dividend Paid 26 September 2025
A dividend of 2.73 cents per share was paid to Kingfish shareholders
on 26 September 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 September 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
VULCAN STEEL
+32
%
FREIGHTWAYS
GROUP
+26
%
a2 MILK
COMPANY
+17
%
INFRATIL
+17
%
EBOS GROUP
-21
%