KFL – August 2022 monthly update

1
A WORD FROM THE MANAGER
In July, Kingfish’s gross performance return was up 7.8%
and the adjusted NAV return was up 7.7%.
New Zealand equities rose +5.7% in July (S&P/NZX 50) in
a strong month for global markets (S&P 500 +9.1%, MSCI
World +7.9%, ASX 200 +5.7%) as 10-year Government
bond yields, the key barometer for long-term interest rates,
declined sharply after a peak in June.
Infratil (+9%) announced the sale of Vodafone's mobile
tower business (Infratil owns half of Vodafone New
Zealand). The sale price of $1.7 billion translates to 34
times EBITDA (earnings before interest, tax, depreciation,
and amortisation). The price is a significant premium to the
seven times EBITDA paid when Infratil purchased Vodafone
in 2019. That means the deal returns around 80% of
the initial capital outlay whilst retaining around 90% of
the earnings stream! The valuation is at the upper end of
similar transactions in Australasia and well in excess of
the levels that high quality tower companies in the US and
Europe trade at. However, we look at it, this is a good
result for Infratil shareholders. Infratil, still confident in the
outlook for the towers business, reinvested alongside new
owners and fellow infrastructure investors InfraRed Capital
Partners and Northleaf Capital Partners.
Mainfreight (+12%) provided a 16-week update at its
Annual Shareholders Meeting, which revealed continued
strong progress in the business. Weekly profit before tax
for the company grew +83% on the same period last
year, a slight moderation from the +92% (comparative to
the prior year) in the six months to March. The Transport
division is growing faster than we anticipated and has
seen year-on-year profit growth accelerate from +34% to
+51% (again comparing to the six months to March). Air
& Ocean freight forwarding pre-tax profits also continue
to be at more elevated levels than we expected, $6.1
million per week in a non-peak period (versus $6.3
million in the six months to March) even as the global
shipping market loosens from unsustainably tight levels.
Warehousing, currently the smallest division, saw profit
before tax growth of +22%, which is trailing revenue
growth (+30%) due to temporary cost headwinds ahead
of consolidating multiple sites into larger, more efficient
operations in Auckland and Sydney, which will provide
future benefits. The company is continuing to execute well
in all areas against its long-term growth strategy, opening
new branches, winning market share from new customer
gains, and benefiting from efficiencies as it continues to
gain scale.
Port of Tauranga (+12%) increased cargo pricing and
introduced a container levy, providing protection against
rising costs and highlighting the pricing power held by
New Zealand ports. However, on a disappointing note,
a court decision on proposed capacity expansion has
been delayed until 2023. Port of Tauranga said New
Zealand was looking at "severe" capacity constraints on
exports within a few years if the extension is not built.
Management expects to be able to meet demand over the
next few years, but the delay in expansion will put extra
pressure on resources at the port.
Summerset (+11%) announced sales volumes for the
three months to the end of June. It was the second biggest
sales result for a June quarter ever, however slightly off
recent highs. Despite the deceleration, Summerset's sales
have proven more resilient than wider housing market
volumes. The management team remains confident that
they can sell 600 new units in 2022, an 11% increase
on 2021. To support this confidence, they cite low
inventory levels (supportive of demand), and note key sales
indicators remain at healthy levels (such as time to settle
and few cancellations).
1
Share Price Premium to NAV (including warrant price on a pro-rated basis and using the net asset value per share, after expenses, fees and tax, to four decimal places).
MONTHLY UPDATE
August 2022
KFL NAV
$
1.46
$
1.60
Share Price
PREMIUM
1
10.1
%
as at 31 July 2022
Warrant Price
$
0.01
Sam Dickie
Senior Portfolio Manager
Fisher Funds Management Limited

2
KEY DETAILS
as at 31 July 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
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
$1.59
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
323m
MARKET CAPITALISATION
$517m
GEARING
None (maximum permitted 20%
of gross asset value)
SECTOR SPLIT
as at 31 July 2022
7
%
30
%
INDUSTRIALS
20
%
INFORMATION
TECHNOLOGY
33
%
HEALTH CARE
8
%
CONSUMER
STAPLES
The Kingfish portfolio also holds cash

UTILITIES
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+4.0%(4.8%)(13.9%)+13.4%+15.2%
Adjusted NAV Return+7.7%(2.9%)(10.2%)+5.5%+10.5%
Portfolio Performance
Gross Performance Return+7.8%(2.7%)(9.2%)+7.5%+12.9%
S&P/NZX50G Index+5.7%(3.3%)(8.7%)+1.9%+8.4%
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 31 July 2022

33
TOTAL SHAREHOLDER RETURN to 31 July 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
2022
Mar
2005
JULY’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 31 July 2022
FREIGHTWAYS
+13
%
PORT OF TAURANGA
+ 12
%
MAINFREIGHT
+ 12
%
SUMMERSET GROUP
+ 11
%
DELEGAT GROUP
+ 11
%
MAINFREIGHT
18
%
FISHER & PAYKEL
HEALTHCARE
17
%
SUMMERSET
14
%
INFRATIL
11
%
AUCKLAND
INTERNATIONAL
AIRPORT
8
%

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
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
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 Andy Coupe
(Chair), Carol Campbell,
David McClatchy and Fiona
Oliver.
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 10.38 cents per share have been
declared to date and there is one more dividend
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