KFL – September 2026 monthly update

1
A WORD FROM THE MANAGER
The Kingfish portfolio gross performance return and adjusted NAV
return in August were +1.5% and +1.2% respectively, versus the New
Zealand shares benchmark S&P/NZX 50 return of +1.6%.
Portfolio
a2 Milk (-1%) delivered its full year result ahead of its April guidance
and expects further growth in revenue and core operating profit
(‘EBITDA’) in its new financial year. However, the recovery from out-
of-stock events in its ‘Zhi Chu’ China label infant formula range in the
middle of 2026 will mean performance is likely weighted towards the
second half of the year.
Auckland Airport (+2%) delivered full-year profit of $309 million
despite passenger growth of only 1.6% and ongoing disruption from
the transformation as it redevelops and integrates its terminals.
Unsurprisingly, its near-term outlook was cautious based on
international passenger growth of +3% to 10.8 million and a -3%
decline in domestic passengers to 8.3 million, as traveller appetite
remains mixed given local cost-of-living pressures and Air New
Zealand still yet to recover from its fleet issues.
Electricity companies Mercury (0%), Contact Energy (-1%), and
Meridian (-3%) delivered predictably sound results as foreshadowed
by their regular operating disclosures. The pick of the results was
Mercury, which delivered on its $370 million target for operating
expenses, and intends to keep this figure flat for the next two years
as a result of an efficiency and productivity drive. The conclusion of
an elevated period of extended investment phase also saw a higher-
than-expected dividend, and growing confidence across the business
saw it lift the bottom end of its long-term earnings target for its
2030 financial year. Data centres were also a hot topic, with Contact
Energy announcing a joint project partnering with Infratil’s CDC Data
Centres business to potentially develop a 250-megawatt data-centre
campus at its Stratford site in Taranaki. This follows Mercury’s
$53m investment in Datagrid in July, which will help to progress its
360-megawatt Southland data centre project. Should the projects
proceed, this would allow the electricity companies to accelerate the
build out of their renewable development projects with electricity
sold at attractive prices, plus capture additional returns from their
ownership in the data-centre projects.
Delegat (+9%) reported its strongest profit in several years of
$61.5m, representing 20% growth on the previous year in spite of
tariff headwinds. It also provided maiden operating profit after tax
guidance of $62-66m for its new financial year that demonstrates
confidence in continued growth.
EBOS (-1%) delivered its annual result in line with revised guidance
from April, with core operating profit growing 5% despite fuel and
foreign exchange headwinds, while underlying profit after tax
declined 3% as its major facility reinvestment programme saw higher
occupancy costs. The company expects consistent core operating
profit growth into the next financial year of around 5%.
Freightways (-5%) was the biggest decliner in the portfolio. The
company delivered a solid result for the year to June with earnings
per share up 17% but noted "the combination of higher fuel costs and
softer customer demand created a drag during the final quarter on a
result which was otherwise strong." Looking forward "it will be another
year of 'softer for longer' than initially expected" and currently "trading
conditions continue to be challenging". We still anticipate growth in
the next year, although at a lower rate than recently.
Fisher & Paykel Healthcare (+9%) provided updated guidance at
its annual meeting, highlighting continued strength in its hospital
business, with demand for its latest hardware platforms and ongoing
consumable adoption driving a stronger-than-expected start to the
financial year. First-half guidance implies revenue growth of 14% and
underlying net profit growth of 24% (excluding tariff refunds), while
full-year guidance was also upgraded.
Port of Tauranga (+1%) delivered a strong result for the year to June
ahead of expectations, demonstrating the resilience of its business
despite softer trade volumes and ongoing capacity constraints.
Underlying net profit rose 23% to a record $155m despite soft trade
volumes, driven by pricing initiatives, productivity improvements
and lower operating costs. Management highlighted significant
improvements in operational efficiency, including higher crane
productivity driving faster ship turnaround rates, and remains
optimistic about future improvements which will see the port remain
a favourite with shipping lines. The company recently received
conditional approval of its Stella Passage berth extension, which can
expand capacity and support long-term volume growth.
1
Share Price Discount to NAV (using the net asset value per share, after expenses, fees and tax, to four decimal places).
MONTHLY UPDATE
September 2026
KFL NAV
$
1.30
DISCOUNT
1
7.5
%
as at 31 August 2026
$
1.20
SHARE PRICE

2
KEY DETAILS
as at 31 August 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
$1.10
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
363m
MARKET CAPITALISATION
$435m
GEARING
None (maximum permitted 20%
of gross asset value)
SECTOR SPLIT
as at 31 August 2026
Summerset (+3%) delivered a first half result that was well-received
on account of a significant pivot away from maximising development
growth to a better balance of continued growth coupled with
improved cash generation, a stronger balance sheet, and increasing
operating discipline. Management lowered its medium-term build
rate to 600 -700 homes per annum from 2027, compared with
around 950 homes previously. The company announced its cost
review exercise will now result in $30-40 million annual cost savings.
It also increased its New Zealand deferred management fee for
incoming residents from 25% to 30% (in line with most others in the
sector), which is expected to generate an additional $35m of cash
flow over the next five years. These changes will assist in cashflow
from existing operations of $70-90m in 2027, up from $32m in 2025.
These shifts will also reduce net debt to below $1.9 billion by the end
of 2027 (versus the lower end of $2.0-2.5b). The company also reset
its dividend policy to be based on cash flow from existing operations
rather than underlying profit, which further strengthens the balance
sheet and provides a better balance for a company that will still be
growing strongly.
Vista (+11%) delivered a result for the first half of its financial year
that saw revenue grow 12% to $86.3 million and core operating
profit increase 24%, as it continued to transition clients to its next
generation offerings. The strong start to the year allowed it to lift its
guidance for the overall financial year.
Vulcan Steel (+4%) delivered a 16% uplift in core operating profit
in its financial year ended June, with the real improvement coming
in the last six months (up 34%), in spite of ongoing challenging
trading conditions. The improvement came in both New Zealand
and Australia and the company is cautiously optimistic that the
improvement will continue into the new financial year.
.
Matt Peek
Senior Portfolio Manager
Fisher Funds Management Limited
Health Care31%
Industrials25%
Financials17%
Utilities14%
Consumer Staples5%
Information Technology5%
Materials2%
Cash1%

TOTAL SHAREHOLDER RETURN to 31 August 2026
AUGUST'S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO during the month
5 LARGEST PORTFOLIO POSITIONS as at 31 August 2026
VISTA GROUP
+11
%
FISHER & PAYKEL
HEALTHCARE
+9
%
DELEGAT GROUP
+9
%
VULCAN STEEL
+4
%
FREIGHTWAYS
-5
%
FISHER & PAYKEL
HEALTHCARE
19
%
MAINFREIGHT
17
%
SUMMERSET
9
%
INFRATIL
7
%
AUCKLAND
INTERNATIONAL AIRPORT
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
Mar
2025
33
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return(1.1%)(1.2%)(2.6%)+5.9%(2.2%)
Adjusted NAV Return+1.2%+4.2%+5.7%+7.2%+0.9%
Portfolio Performance
Gross Performance Return+1.5%+4.9%+7.2%+8.9%+2.2%
S&P/NZX50G Index+1.6%+5.1%+7.6%+6.4%+1.0%
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 August 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 (Senior Portfolio Manager)
and Zoie Regan (Senior Investment
Analyst) 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 Fiona Oliver (Chair),
David McClatchy, 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