KFL – March 2022 monthly update

1
A WORD FROM THE MANAGER
In February, Kingfish’s gross performance return was down
(0.6%) and the adjusted NAV return was down (0.6%). This
compares with the local market benchmark index return, the
S&P/NZX50, which was up 0.7%.
Market Environment
New Zealand equities rose +0.7% (S&P/NZX 50) in
February, outperforming global equity markets (MSCI World
-2.5%, S&P 500 -3.0%). NZ is typically a more defensive
market and defensive sectors led the way. The Kingfish
portfolio lagged with an Adjusted NAV Return of (0.6%) as
the portfolio has less exposure to these defensive sectors in
favour of growth companies, which we think have better
medium-to-long term prospects. Encouragingly, on balance,
the results of portfolio companies that reported in February
were better-than-expected.
The Portfolio
a2 Milk (+7%) reported a better-than-expected half year
result with infant formula sales around 10% higher than
expectations. Its a2 Platinum brand health remains strong and
the company is taking share from other brands, in particular
offshore brands. The outlook is for a continuation of market
share gains partially offset by a subdued birth rate in China.
Auckland Airport (-1%) reported another Covid impacted half
year result. However, the forward-looking picture is more
positive. International border restrictions will ease from early
March for New Zealanders and Australians. Restrictions for
long-haul tourists will ease in the second half of 2022.
Electricity generators Contact (+4%) and Meridian (+15%)
reported solid half year results. New Zealand future wholesale
electricity prices have moved sharply higher across 2022-
2025 in response to higher fuel costs (coal, gas, and carbon)
for non-renewable generators. This is positive for Contact and
Meridian.
Delegat (-2%) announced a steady half year result and
maintained its fiscal 2022 net profit guidance. This was a
credible result given the company has faced a number of
pressures including the below average 2021 harvest and
supply chain challenges. In response the company was able to
selectively raise prices and remix supply into its higher value
markets, plus gain share from other New Zealand brands with
lower inventory availability.
Recent addition EBOS (+0.2%) delivered a strong half year
result. The company is executing well in its core business,
with its Symbion wholesale operation taking market share off
its major competitors. It is also benefiting from being aligned
to key pharmacy customers - Chemist Warehouse and Terry
White Chemmart (EBOS’s own banner group), which are
taking share from independents and seeing strong sales due to
increased visitation for Covid tests and vaccines.
Freightways (+1%) delivered a strong half yearly result
with profits coming in comfortably ahead of expectations.
Its network courier business saw strong volume growth
as customers have become more inclined to purchase
via e-commerce with home delivery (particularly during
Auckland's extended Covid lockdown). This more than made
up for softer business-to-business deliveries. The company
continues to push up pricing via its Pricing For Effort campaign
in sectors that have typically been underpriced. It has also
delivered an improvement in its Australian business with the
standout performance being its small but fast growing medical
waste business.
Infratil (+5%) hosted an investor day, with a focus on
Canberra Data Centres (CDC), Vodafone, Longroad Energy,
and its Diagnostic Imaging investments. Vodafone is exploring
the sale of a minority interest in its mobile towers business,
which should deliver a value uplift based on similar deals
overseas. Longroad Energy is looking for a minority partner
to inject capital and take a minority shareholding. This would
allow Longroad to execute a much bigger development
pipeline than previously indicated. CDC’s Auckland
datacentre facilities have been upsized in response to strong
demand. Infratil announced approval for Morrison & Co
(Infratil's manager) to purchase up to $40 million worth of
shares on-market on behalf of employees, which demonstrates
confidence in Infratil.
Mainfreight (-5%) provided a trading update to the end of
January (the first 43 weeks of its fiscal year). Profit growth was
ahead of expectations. The company is seeing a continuation
1
Share Price Premium to NAV (including warrant price on a pro-rated basis and using NAV to four decimal places).
MONTHLY UPDATE
March 2022
KFL NAV
$
1.60
$
1. 7 8
Share Price
PREMIUM
1
11.8
%
as at 28 February 2022
Warrant Price
$
0.04

2
KEY DETAILS
as at 28 February 2022
FUND TYPE
Listed Investment Company
INVESTS IN
Growing New Zealand
companies
LISTING DATE
31 March 2004
FINANCIAL YEAR END
31 March
TYPICAL PORTFOLIO SIZE
10-25 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
$1.66
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
318m
MARKET CAPITALISATION
$567m
GEARING
None (maximum permitted 20%
of gross asset value)
SECTOR SPLIT
as at 28 February 2022
5
%
31
%
INDUSTRIALS
21
%
INFORMATION
TECHNOLOGY
33
%
HEALTH CARE
8
%
CONSUMER
STAPLES
The Kingfish portfolio also holds cash

UTILITIES
of tailwinds in its Air & Ocean division (international freight
forwarding) coupled with good execution in Transport and
Warehousing, taking further market share and improving
efficiency and margins. The outlook for the beginning of the
upcoming 2023 fiscal year remains solid.
Port of Tauranga (-6%) concurrently announced its half
yearly result and the retirement of long-serving chair David
Pilkington, who will be replaced by Julia Hoare (a director
since 2015). Container Revenue was up +17%, primarily
driven by storage revenues and pricing. Supply chain
congestion remains an issue, with only 40% of vessels meeting
their shipping windows. Despite profits +16% in the first half,
the company maintained full year guidance for +1% to +7%
due to concerns with the Omicron outbreak and continued
supply chain congestion.
Summerset (-3%) announced its 2021 annual result, with
underlying profit up +44% and net tangible assets per share
up +27% while reducing its gearing (debt to assets) to the
lowest since 2013. Summerset's prices lifted three times
through 2021 but it still has a larger than normal buffer
between its prices and house prices in surrounding areas.
The company guided to a cautious 2022 build rate (626
Sam Dickie
Senior Portfolio Manager
Fisher Funds Management Limited
units compared to 671 in 2021) given the uncertain impact
of Omicron and its possible impact on the construction and
housing market.
Vista (- 6%) reported its 2021 annual result, which showed a
continuation of the recovery in the global cinema business.
The December quarter saw most cinemas open and studios
releasing anticipated blockbuster content after a lengthy
hiatus. This helped 4Q21 US box office recover to 74% of
2019 levels (versus just 7% in the same quarter in 2020).
Both the company's recurring and market-facing revenues are
now recovering, with 2022 guidance for revenue of $118-
123 million versus $98 million in 2021. Most positively,
early engagement with existing customers for its new Vista
Cloud product suggests the medium-term opportunity could be
towards or above the upper end of what the company had
previously expected (recurring revenue of 1.5-2.5x current
levels).

33
TOTAL SHAREHOLDER RETURN to 28 February 2022
Mar
2004
Mar
2006
Mar
2007
Mar
2008
Mar
2009
Mar
2010
Mar
2011
Mar
2012
Mar
2014
Mar
2015
Mar
2013
Mar
2016
Share Price/Total Shareholder Return
$
3.00
$
4.00
$
5.00
$
6.00
$
7.00
$
8.00
$
9.00
Share PriceTotal Shareholder Return
$
1.00
$
2.00
$
0.00
Mar
2017
Mar
2018
Mar
2019
Mar
2020
Mar
2021
Mar
2005
FEBRUARY’S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO
during the month
The remaining portfolio is made up of another 10 stocks and cash.
5 LARGEST PORTFOLIO POSITIONS as at 28 February 2022
MERIDIAN ENERGY
+15
%
A2 MILK
+7
%
VISTA GROUP
−6
%
PORT OF TAURANGA
−6
%
PUSHPAY HOLDINGS
−14
%
MAINFREIGHT
19
%
FISHER & PAYKEL
HEALTHCARE
17
%
SUMMERSET
15
%
INFRATIL
10
%
AUCKLAND
INTERNATIONAL
AIRPORT
9
%
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+3.2%(9.5%)+3.2%+20.8%+17.3%
Adjusted NAV Return(0.6%)(8.6%)(1.7%)+12.5%+13.2%
Portfolio Performance
Gross Performance Return(0.6%)(8.6%)(0.5%)+15.3%+15.8%
S&P/NZX50G Index+0.7%(5.8%)(2.0%)+8.7%+10.8%
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 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 http://kingfish.co.nz/about-kingfish/kingfish-policies/
PERFORMANCE to 28 February 2022

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 | Fax: +64 9 489 7139
Email: enquire@kingfish.co.nz | www.kingfish.co.nz
4
Computershare Investor Services Limited
Private Bag 92119, Auckland 1142
Phone: +64 9 488 8777 | Fax: +64 9 488 8787
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
10 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
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 re-
issued for the dividend reinvestment plan
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. Sam Dickie
(Senior Portfolio Manager), Matt
Peek and Michael Bacon (Senior
Investment Analysts) have prime
responsibility for managing the
Kingfish portfolio. Together they
have around 50 years 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 Alistair Ryan
(Chair), Carol Campbell,
Andy Coupe and David
McClatchy.
Warrants
»Kingfish announced a new issue of warrants on 18
October 2021
»Information pertaining to the warrants was mailed/
emailed to shareholders on 1 November 2021
»The warrants were issued at no cost to eligible
shareholders in the ratio of one warrant for every four
Kingfish shares held based on the record date of 12
November 2021
»The warrants were allotted to shareholders on 15
November 2021 and listed on the NZX Main Board from
16 November 2021
»The Exercise Price of each warrant is $2.03, adjusted
down for the aggregate amount per Share of any cash
dividends declared on the Shares with a record date
during the period commencing on the date of allotment
of the warrants and ending on the last Business Day
before the final Exercise Price is announced by Kingfish.
Dividends totalling 7.22 cents per share have been
declared to date and there are two more dividends
expected to be declared in the remaining period up to the
announcement of the 18 November 2022 exercise price.
»The Exercise Date for the new warrants is
18 November 2022