KFL – May 2026 monthly update

1
A WORD FROM THE MANAGER
The Kingfish portfolio gross performance return and adjusted
NAV return in April were +0.4% and +0.2% respectively, versus the
New Zealand shares benchmark S&P/NZX 50 return of -0.1%.
a2 Milk (-25%) shares were down sharply, as the company
indicated it is experiencing some stock-outs in China as a result
of increased regulatory testing requirements and a production
backlog, resulting in lower sales. It is also incurring increased
costs from air-freighting product into market to meet customer
needs. The company expects the issue to be short-term and likely
resolved by the end of June.
EBOS (-4%) provided an update indicating that higher fuel and
packaging costs are likely to reduce its core operating earnings
('EBITDA') for its current financial year to $610-620 million (from
$615-635 million). Underlying demand across its portfolio of
businesses remains stable.
An investor day followed later in April, featuring presentations
from CEO Adam Hall (in the role since July 2025) and divisional
leadership. The day also showcased its healthcare products
logistics site at Eastern Creek, which has been operational
site November 2023, and the new Sydney distribution centre
at Kemps Creek for Symbion, EBOS's wholesale pharmacy
distribution business. The Kemps Creek facility opened in October
2025 and represents the largest site at 56,000 square metres and
represents the bulk of EBOS's $360 million distribution centre
renewal program, which has been implemented over the last four
years. The facility is purpose-built and highly automated, to date
delivering an 11% productivity improvement relative to the prior
facility, with management targeting further improvement to 30%
by the 2027 financial year.
The messaging from the day largely reiterated the existing
strategy but mentioned mid-single-digit organic underlying
EBITDA growth for the next three years and incrementally higher
growth from 'bolt-on' small scale acquisitions. This is consistent
with expectations and broadly in line with historic performance.
With major capital works now largely complete, the company
reiterated that capital expenditure is expected to reduce by
around 30% from the 2027 financial year. This should support
earnings per share growth greater than EBITDA growth from the
2028 financial year and beyond. Management expects to return to
its target of 15% return on capital employed in the medium term,
after it had reduced below this level during the recent investment
phase.
Infratil (+7%) continued to perform strongly off the back of its
positive CDC Data Centres update in April, plus market feedback
suggesting ongoing strong global demand for data centre
capacity.
Mercury (+7%) was a standout performer, following a positive
trading update. The company upgraded its current year's core
operating earnings ('EBITDAF') guidance to $1.05 billion, up from
$1.0 billion. This was driven by disciplined portfolio management
and higher forecast renewable generation, after high rainfall in
its central North Island catchment. Lake Taupo, its key hydro
reservoir, is full at a time when it is usually at its yearly low with
storage around 350 gigawatt hours higher than a year ago.
Strong quarterly performance also reflected the successful
commissioning of the new OEC5 unit at its Ngā Tamariki
geothermal power station which has an annual output of 390
gigawatt hours, enough to power around 55,000 households.
Summerset (-8%) saw first quarter sales start the 2026 year off
strongly, with new sales up 34% and resales up 19% (versus a
year ago) and collectively representing the company's largest
sales quarter on record. We think the negative share price
performance has primarily been due to concerns around
future sales rates, given the ongoing fuel shock and impact
on the economy, confidence in relation to the housing market,
and potential upward pressure on interest rates, which are
all linked. Through late April, overall sales contracting levels
remain consistent since before the Middle East crisis began, but
Summerset did observe some softening in New Zealand sales
late in April. Encouragingly, new unit sales have lifted roughly
one per week, helped by the opening of several large village
main buildings in both New Zealand and Australia, while resales
have slowed by approximately one sale per week. In part resales
slowing reflects uncontracted stock dropping from 2.7% of total
units at the end of 2025 calendar year to 2.4% now (that is, there
is less stock available to sell on account of stronger occupancy).
1
Share Price Premium to NAV (using the net asset value per share, after expenses, fees and tax, to four decimal places).
MONTHLY UPDATE
May 2026
KFL NAV
$
1.21
PREMIUM
1
1.0
%
as at 30 April 2026
$
1.22
SHARE PRICE
Matt Peek
Senior Portfolio Manager
Fisher Funds Management Limited

2
KEY DETAILS
as at 30 April 2026
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
$1.12
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
359m
MARKET CAPITALISATION
$437m
GEARING
None (maximum permitted 20%
of gross asset value)
SECTOR SPLIT
as at 30 April 2026
Health Care31%
Industrials25%
Financials16%
Utilities15%
Consumer Staples6%
Information Technology4%
Cash2%
Materials1%
APRIL'S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO during the month
VISTA GROUP
+11
%
MERCURY
+7
%
INFRATIL
+7
%
SUMMERSET GROUP
-8
%
a2 MILK COMPANY
-25
%
5 LARGEST PORTFOLIO POSITIONS as at 30 April 2026
FISHER & PAYKEL
HEALTHCARE
18
%
MAINFREIGHT
15
%
AUCKLAND
INTERNATIONAL
AIRPORT
8
%
INFRATIL
8
%
SUMMERSET
7
%
The remaining portfolio is made up of another 10 stocks and cash.

33
TOTAL SHAREHOLDER RETURN to 30 April 2026
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
Mar
2025
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+2.2%(2.6%)+6.0%+7.0%(0.8%)
Adjusted NAV Return+0.2%(4.7%)+0.3%+3.2%+0.2%
Portfolio Performance
Gross Performance Return+0.4%(4.8%)+1.5%+4.7%+1.5%
S&P/NZX50G Index(0.1%)(3.9%)+8.4%+2.4%+0.3%
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 April 2026
Mar
2026

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
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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 (Senior 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),
David McClatchy, Fiona
Oliver and Dan Coman.
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
»The Exercise Date for the Kingfish KFLWI warrants was
1 May 2026
»On the exercise date 1,218,425 warrants out of a possible
86,961,524 warrants (1.40%) were converted into Kingfish
ordinary shares
»The new shares were allotted to warrant holders on
6 May 2026
»The remaining 85,743,099 warrants which were not
exercised have now lapsed, and all rights in regard to
them have now expired