KFL – June 2026 monthly update

1
A WORD FROM THE MANAGER
The Kingfish portfolio gross performance return and adjusted NAV
return in May were +5.5% and +5.4% respectively, versus the New
Zealand shares benchmark S&P/NZX 50 return of +2.6%.
It was pleasing to deliver a strong month of performance for the
Kingfish portfolio, underpinned by several company results during
May ‘reporting season’ and other positive announcements.
a2 Milk (-24%) shares fell further after the company announced a
voluntary recall of a small quantity of a2 Platinum infant formula in
the US due to the presence of cereulide, a vomiting-inducing toxin
recently detected in several infant formula brands and linked to a
global oil ingredient supplier. There has been no contamination of
its products sold into the China market. This comes as the company
continues to work through stock-outs in China as a result of
increased regulatory testing requirements and a production backlog
as flagged last month.
Contact (+0.4%) released its operating stats for April which suggest
the electricity company continues to track towards core operating
earnings ('EBITDAF') of around $1 billion for the year to June, before
the transaction and integration costs for its acquisition of Manawa.
Kingfish participated in Infratil's discounted sale of part of its Contact
shareholding (to raise money to reinvest in new projects in its
portfolio) at $9.25, with shares ending the month 3% higher at $9.54.
Fisher & Paykel Healthcare (+2%) delivered a strong result for its
year ended March, with revenue increasing +14% and net profit
rising +24%. Performance was led by the Hospital division, where
revenue grew +15% (in 'constant currency' terms), supported
by solid consumables growth and particularly strong hardware
demand, reflecting increasing use of its products as clinical practice
evolves. The Homecare division saw more moderate growth (+7% in
constant currency terms) with ongoing softness in Obstructive Sleep
Apnea masks given lack of a full-face mask launch recently, unlike
competitors. Gross margin improved to 63.7% despite the headwind
from tariffs, driven by operational efficiencies, and supported by
pricing and improved product mix. Cost controls meant this drove
stronger operating earnings growth (+26% in constant currency
terms). Looking ahead, the company is guiding to continued revenue
growth in the new financial year, albeit at a slightly slower pace than
its long-term aspirations to double revenue every 5 to 6 years. This
reflects a potential easing in hardware demand following a period of
elevated sales. The company expects gross margins will continue to
improve despite ongoing headwinds from tariffs and cost pressures
stemming from the Middle East conflict, which are less than initially
feared and reflect the company's ongoing focus on production
efficiencies. The longer-term outlook remains positive, underpinned
by progressively increasing clinical adoption, the remaining
opportunity to expand the use of its therapies globally, and an
ongoing focus on innovation and the development of new products.
Infratil (+26%) performed strongly again after announcing its CDC
Data Centres business had signed a massive 555-megawatt contract
with a US based hyperscaler customer, one of the largest ever data
centre contracts in the region. This agreement accelerated CDC’s
path to over 1 gigawatt of contracted capacity and underpinned new
guidance for core operating earnings (EBITDAF) in its 2028 financial
year to exceed A$1 billion. This reflects the strong customer demand
environment and endorses CDC's position as the premier provider
in Australia. It is further validation of CDC's strategy which has seen
it build a large pipeline of campus-style data centres well suited to
modern AI applications. While the CDC news was the most impactful
in respect of its portfolio, Infratil’s financial results for the year to
March 2026 were also released. Progress at its US based renewable
energy developer Longroad Energy continues to be lumpy, by virtue
of the timing of project deliveries, however the longer-term outlook
remains attractive. Longroad has extended its prior US$700 million
core operating earnings target by US$300 million to US$1 billion
by around 2029-2030 and now expects to deliver 2 gigawatts of
projects per year on average, versus 1.5 gigawatts previously. One
NZ delivered a solid result with earnings, mobile connections, and
cash flow performing credibly in a difficult New Zealand consumer
environment. Infratil also sold $495 million of shares in Contact
Energy to help fund the strong organic growth opportunities in other
parts of its portfolio, primarily CDC and Longroad.
Mainfreight (+10%) released its recent financial year's result in line
with expectations with profit before tax of $351 million, although the
allowance for higher staff bonuses and some unexpected one-off
costs meant the underlying quality of the result was stronger than
expected. The company noted that despite higher fuel costs in recent
months, it has seen April and May trading well ahead of last year in its
key New Zealand and Australia businesses.
1
Share Price Discount to NAV (using the net asset value per share, after expenses, fees and tax, to four decimal places).
MONTHLY UPDATE
June 2026
KFL NAV
$
1.27
DISCOUNT
1
2.4
%
as at 31 May 2026
$
1.24
SHARE PRICE

2
KEY DETAILS
as at 31 May 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
360m
MARKET CAPITALISATION
$446m
GEARING
None (maximum permitted 20%
of gross asset value)
SECTOR SPLIT
as at 31 May 2026
Mercury (+4%) hosted a Geothermal Investor Day, committing $75
million to geothermal well drilling for two projects at existing sites
near Taupō as part of its next growth phase, which could see it invest
up to $1 billion in new geothermal projects. This will be needed over
time to support electricity demand growth in New Zealand including
electric vehicles and the ongoing transition away from gas and
petrochemical fuels. Geothermal power is attractive on two counts
as it provides consistent round-the-clock generation without the
need for the 'firming' that wind and solar depend on, which makes
is particularly suitable to baseload applications such as datacentres
and other industrial processes. It is also relatively cost-effective,
with the company expecting the cost of the geothermal projects
to be between $6.5 million and $8.0 million per megawatt, or $110
per megawatt-hour, which is below expectations for where pricing
will settle longer term. This suggests projects will create value
for shareholders and boost earnings as they are brought online
progressively from around 2030.
Vista (+38%) was the standout share price performer in the Kingfish
portfolio after announcing three separate contracts with major global
cinema companies. Existing customer Cineworld UK has signed its
88 sites (950+ screens) up for Vista's Digital Enablement products,
after their 25 sites under the Picturehouse banner made the transition
in 2025. This bodes well given it is owned by US giant Regal (400
sites), which is yet to make the transition to Vista's next generation
cloud products. Existing customer Cinépolis Mexico (504 sites)
signed up to the full suite of both Digital Enablement and Operational
Excellence products, providing proof that the product suite stacks
up in lower income regions. Previously former customer Cinemex
had attempted to switch from Vista to a lower cost provider, but has
now returned to Vista's on-premise solution, and will evaluate a future
move to the next generation products. Overall, this provides strong
validation for Vista's strategy and firms up the near-term growth
outlook.
Matt Peek
Portfolio Manager
Fisher Funds Management Limited
Health Care29%
Industrials25%
Financials17%
Utilities16%
Information Technology5%
Consumer Staples5%
Cash2%
Materials1%

TOTAL SHAREHOLDER RETURN to 31 May 2026
MAY'S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO during the month
5 LARGEST PORTFOLIO POSITIONS as at 31 May 2026
VISTA GROUP
+38
%
INFRATIL
+26
%
MAINFREIGHT
+10
%
EBOS GROUP
-8
%
A2 MILK COMPANY
-24
%
FISHER & PAYKEL
HEALTHCARE
17
%
MAINFREIGHT
17
%
AUCKLAND
INTERNATIONAL AIRPORT
9
%
INFRATIL
8
%
SUMMERSET
7
%
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
The remaining portfolio is made up of another 10 stocks and cash.
Mar
2025
33
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+1.9%(0.4%)(0.0%)+6.4%(1.1%)
Adjusted NAV Return+5.4%(0.7%)+0.6%+5.2%+1.9%
Portfolio Performance
Gross Performance Return+5.5%(0.7%)+1.7%+6.7%+3.2%
S&P/NZX50G Index+2.6%(3.5%)+6.6%+3.9%+1.5%
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 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 May 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
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),
David McClatchy, Fiona
Oliver, Dan Coman and
Simon Flood.
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