KFL – December 2021 Quarterly Newsletter

Kingfish underperformed the local market in the December quarter, with
gross performance falling -3.3%, compared to the S&P/NZX50G index
which fell -1.8%. That brings the Kingfish 2021 calendar year gross
performance to +5.6%, which was ahead of the S&P/NZX50G index
return of -0.4% for the twelve months.
Fisher & Paykel Healthcare (F&P) delivered against the backdrop of
a weak local equity market. The company reported a strong first half
result, ahead of expectations, boosted by another wave of COVID
hospitalisations in the US, Asia, and certain countries in Europe. The bulk
of the strength was in sales of new hardware in the Hospital division,
which continues to grow the installed base of F&P products in both
established and new customers (70% of hardware sales were outside of
the core markets of US/Europe).
There is increasing weight of evidence to suggest that nasal high flow (key
product) usage will structurally increase even as COVID wanes. This is
because (1) the therapy has stood up in a crisis and doctors who are new
to the products have now had first-hand experience in seeing its efficacy;
(2) there is a still sharply growing installed base of F&P hardware;
(3) clinical evidence is supportive; (4) F&P is increasing its sales force
to provide education to recent adopters and increase consumable
usage. Market expectations do not appear to factor this in, as medium-
term forecasts remain in line with the pre COVID trajectory and imply
meaningful under-utilisation of the much higher installed hardware base.
Vista was a drag on December quarter performance. The market is
concerned that an increase in COVID lockdowns in Europe and the
emergence of the Omicron variant will impact the near-term outlook for
its exhibitor customers. The company helped allay these fears late in the
quarter when they re-affirmed revenue and earnings guidance. Industry
health was improving and movie attendance was at 70% of pre-COVID
levels before the release of the hugely successful Spiderman: No Way
Home. The movie grossed more than US$260m in its first three days of
release, the second highest grossing opening weekend of all time in the
US Domestic market. Cinema operators are cash flow positive at around
60% occupancy and we don’t expect severe cinema closures because of
Omicron at this stage.
Infratil has been busy!
After exiting its highly successful Tilt investment, Infratil has been busily
re-investing the proceeds. In December Infratil announced further
expansion of its diagnostic imaging business, with Bay Radiology to join
Pacific Radiology and Auckland Radiology Group as part of the broader
platform. Infratil’s New Zealand diagnostic imaging business now
employs 141 radiologists across 70 clinics through the combination of the
three businesses. Infratil has now invested $700 million across Australia
and New Zealand developing the diagnostic imaging platform.
Earlier in the quarter the company announced a £130 million investment
in Kao Data, a UK datacentre business focused on high performance
computing. Clients include Nvidia, which has the UK’s most powerful
supercomputer on Kao Data’s campus. The business is in the early stages
of development, but Infratil hopes to grow it to a £500 million platform in
time.
Key portfolio investment Canberra Data Centres (CDC) purchased a new
site in Melbourne during the quarter and construction is expected to begin
in the first half of 2022, contingent on signing an anchor tenant.
The new site will eventually provide 150 megawatts of capacity and
takes CDC’s total planned capacity to 700 megawatts. This follows
CDC’s expansion into Sydney in 2018 and Auckland in 2021, with
Microsoft acting as a strong anchor tenant in those locations.
In early January 2022, Infratil announced a 15% increase in the
independent valuation of its CDC stake as at 31 December 2021.
The previous valuation update was only six months prior.
Lockdowns and the local housing market buffeted
the retirement village stocks
At one stage during the quarter, Summerset and Ryman’s share
prices had fallen 20% and 25% from peak respectively. The
market was nervous about the impact of lockdowns on the ability
to sell retirement village units and rising mortgage rates slowing the
broader housing market.
We added to our Summerset position after the sell-off as we think
underlying demand for retirement village living remains solid and
inventory is fairly low. We continue to prefer Summerset over Ryman
given its stronger balance sheet and superior execution in the last
few years.
We re-introduced EBOS into the portfolio
EBOS has proven over a long period that it is the leading player in
its core business of Australian pharmaceutical distribution. Its moat
is based on it being the most efficient operator in this industry. It is
the largest player and has the best processes and systems to deliver
reliable service at low cost to its pharmacy customers. EBOS’s capital
raising to fund a new acquisition gave us the opportunity to re-enter
the stock at an attractive price.
We had previously removed the company from the portfolio in
2018 due to some concerns including its model being tested by new
competitive threats and the modest industry growth rate in its core
business. In the meantime, EBOS has extended its strong track record
under CEO John Cullity, emerged with its moat firmly intact, and
delivered growth through market share gains and entering higher
growth adjacencies.
Our re-entry was timely as during the month EBOS announced it
was buying Australian medical devices distributor Lifehealthcare
and raised new equity to partly fund the transaction. This is a logical
acquisition in line with the company’s previously stated strategy.
Lifehealthcare is a leading player and EBOS has made several
smaller medical device distributor acquisitions in recent years in
this attractive and growing market. The transaction also provides
a sensible entry point to South-East Asia through the Transmedic
subsidiary, which still has its founders with skin in the game as
minority shareholders. We participated in the equity raising.

1
Share Price Premium to NAV (including warrant price on a pro-rated basis and using NAV to four decimal places).
QUARTERLY NEWSLETTER
1 October 2021 – 31 December 2021
KFL NAV
$
1.78
$
1.97
Share Price
PREMIUM
1
11.9
%

as at 31 December 2021
Sam Dickie
Senior Portfolio Manager
17 January 2022
1
Warrant Price
$
0.09

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+0.0%+27.1%+19.3%
Adjusted NAV Return(3.3%)+19.9%+16.8%
Portfolio Performance
Gross Performance Return (3.3%)+23.1%+19.6%
S&P/NZX50G Index(1.8%)+13.9%+13.6%

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 net return to an investor after expenses, fees and tax,
»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 at http://kingfish.co.nz/about-kingfish/kingfish-policies/
LISTED COMPANIES% Holding
Auckland Intl Airport8.4%
Contact Energy3.2%
Delegat Group2.9%
EBOS Group2.1%
Fisher & Paykel Healthcare16.1%
Freightways3.6%
Infratil15.4%
Mainfreight19.9%
Meridian Energy1.0%
Port of Tauranga2.5%
Pushpay Holdings1.1%
Ryman Healthcare4.3%
Summerset9.8%
The a2 Milk Company4.2%
Vista Group International4.2%
Equity Total98.7%
New Zealand dollar cash1.3%
TOTAL100.0%
PORTFOLIO HOLDINGS SUMMARY
as at 31 December 2021
COMPANY NEWS
Dividend Paid 17 December 2021
A dividend of 3.67 cents per share was paid to Kingfish shareholders on 17 December 2021 under the quarterly distribution policy. Interest in
Kingfish’s dividend reinvestment plan (DRP) remains high with 41% 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 31 December 2021
Kingfish Limited
Private Bag 93502, Takapuna, Auckland 0740, New Zealand
Phone: +64 9 489 7094 | Fax: +64 9 489 7139
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
EBOS GROUP
+19
%
SUMMERSET
–10
%
VISTA GROUP
–12
%
RYMAN
HEALTHCARE
–18
%
PUSHPAY
HOLDINGS
–29
%
FOREIGN TAX COMPLIANCE ACT (FATCA) AND COMMON REPORTING
STANDARD (CRS)

As a result of the New Zealand Government agreeing to participate in the exchange of information with other jurisdictions under the Foreign Tax
Compliance Act (FATCA) and Common Reporting Standard (CRS), Financial Institutions are required to undertake due diligence to determine the
account holders’ jurisdiction of tax residence. All shareholders will have received a Tax Residency Self-Certification form from Computershare
depending on when they first purchased their securities. Please ensure you complete and return this important document if you have not already
done so. For more information please visit the IRD website: https://www.ird.govt.nz/international-tax/exchange-of-information/crs/registration-and-
reporting or contact Computershare if you are unsure of whether you have completed your form.