KFL – March 2024 Quarterly Newsletter

In the March quarter, Kingfish delivered a gross performance return of
+5.5% and an Adjusted NAV return of +4.8%, versus the +2.8% return
of the S&P/NZX50 gross index.
The quarter’s performance features strong returns from several portfolio
companies, led by China-focused infant formula maker a2 Milk (+47%
total return in the quarter) and cinema software provider Vista (+21%).
There were also a range of solid contributions from a number of large
positions, particularly Summerset (+13%), Fisher & Paykel Healthcare
(+9%), Infratil (+9%), and Contact Energy (+10%). A meaningful
detractor during the period was Ryman Healthcare (-23%).
Kingfish celebrates 20 years of excellence in investment
management
At the end of March Kingfish celebrated 20 years as a listed investment
company, and the Kingfish Board and Fisher Funds investment
management team were invited by the NZX to mark the milestone by
having the Kingfish directors open the NZX trading day (on 27 March)
with the ringing of the NZX bell. Kingfish remains committed to providing
shareholders with competitive investment returns from the professionally
managed hand-picked portfolio of New Zealand’s best companies.
Kingfish’s more economically sensitive companies mostly
delivered solid report cards in a difficult environment
One of legendary investor Warren Buffett’s most famous sayings is: “A
rising tide floats all boats... only when the tide goes out do you discover
who’s been swimming naked”. It certainly feels like that’s the case in
New Zealand, given the current economic downturn.
During the quarter, many companies, both those in the portfolio and
those in the broader New Zealand share market, released financial
results or provided trading updates. It was pleasing to see most of
Kingfish’s portfolio companies deliver solid results against the challenging
backdrop, while many other companies (that we have deliberately
chosen not to invest in) struggled.
During the quarter, China focused infant formula maker a2 Milk released
its half year result with revenue and earnings above its plan, and the
company increased its revenue guidance for the full financial year,
despite the number of births in China being below previous years.
a2 Milk has seen a smooth transition to its new Chinese Label product
formulation and has continued to take share in most market segments,
with brand health metrics showing continuous improvement.
Summerset has seen its share price meaningfully outperform the other
three listed retirement village operators so far in 2024. The company
continues to out-execute its rivals in building and selling its retirement
living proposition, despite ongoing softness in the New Zealand housing
market. It is also delivering attractive development margins and recycling
cash into new developments, enabling it to confidently increase its build
rate when other operators are struggling to manage indebted balance
sheets.
In contrast, Ryman disappointingly reduced its underlying profit guidance
with new sales expectations revised down around 20%. Ryman is
working through some near-term challenges, with an unprecedented four
main buildings under construction proving a distraction for prospective
residents considering those villages.
Recent results and updates also highlighted the value of portfolio
companies that have grown their businesses in Australia, with several
seeing less challenging economic conditions there. Freightways (+7%)
and Vulcan Steel (+12%) are key examples. Both companies have also
added new customers to mitigate weaker market conditions.
Several of Kingfish’s structural growth companies continue
to deliver impressive performance
It was pleasing to see strong returns from cinema software company
Vista. Its share price performance reflects a solid 2023 result ahead
of expectations and a growing appreciation of its progress against its
medium-term strategy. This involves progressively transitioning its cinema
exhibitor customers to its next generation Digital and Cloud products.
Maiden revenue guidance for 2024 was in line with expectations and
represents recurring revenue growth of 8−12%, which when combined
with much lower cost growth (it expects $10 million of annualised
savings from its recent organisational restructure) this should see
operating profits grow strongly.
During the quarter Infratil updated the market on progress at its portfolio
company Canberra Data Centres (CDC). CDC has signed significant
new contracts and is accelerating development to support growth, which
has been boosted in recent times by the emergence of demand from
AI-based computing. As a result of its strong organic growth over time,
CDC has become the largest asset in Infratil's portfolio but still expects
to double the size of the business within two years, and to be over four
times its current size by 2029. In March, Infratil also hosted an investor
day in Sydney with presentations from several portfolio companies. One
emerging business in Infratil’s portfolio is Gurin Energy, Infratil’s Asian
renewable electricity development platform. The business is tracking well
ahead of Infratil's investment case. Recently it has signed a significant
deal to build 2 gigawatts of solar farm capacity in Indonesia, supported
by batteries, and import the electricity into Singapore as part of its plans
to decarbonise its electricity supply.
Fisher & Paykel Healthcare released updated guidance for its 2024
financial year late in the quarter, with revenue and underlying profit
after tax in the second half of the year 3% and 5% higher than
previously expected. The quality of the update was solid, with its hospital
consumables and OSA masks both experiencing stronger underlying
sales growth than anticipated by the company back in November when
guidance was last communicated.
1
Share price discount to NAV (including warrant price on a pro-rated basis and using the net asset value per share, after expense, fees and tax, to four decimal places).
QUARTERLY NEWSLETTER
1 January 2024 – 31 March 2024
as at 31 March 2024
Matt Peek
Portfolio Manager
Fisher Funds Management Limited
12 April 2024
1
KFL NAV
$
1. 3 4
$
1. 2 5
Share Price
DISCOUNT
1
6.8
%

Warrant Price
$
0.0 1

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+4.5%(5.6%)+8.3%
Adjusted NAV Return+4.8%(0.9%)+6.6%
Portfolio Performance
Gross Performance Return +5.5%+0.3%+8.6%
S&P/NZX50G Index+2.8%(1.2%)+4.2%

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 percentage change in the adjusted NAV value,
»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 kingfish.co.nz/about-kingfish/kingfish-policies.
LISTED COMPANIES% Holding
Auckland Intl Airport8.4%
Contact Energy7.3%
Delegat Group1.8%
EBOS Group6.4%
Fisher & Paykel Healthcare16.0%
Freightways3.2%
Infratil17.8%
Mainfreight13.9%
Meridian Energy1.5%
Port of Tauranga2.7%
Ryman Healthcare2.5%
Summerset8.5%
The a2 Milk Company3.2%
Vista Group International4.5%
Vulcan Steel1.2%
Equity Total98.9%
New Zealand dollar cash1.1%
TOTAL100.0%
PORTFOLIO HOLDINGS SUMMARY
as at 31 March 2024
COMPANY NEWS
Dividend Paid 28 March 2024
A dividend of 2.58 cents per share was paid to Kingfish shareholders on 28 March 2024 under the quarterly distribution policy. Interest in Kingfish’s
dividend reinvestment plan (DRP) remains high with 40% 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 March 2024
Kingfish Limited
Private Bag 93502, Takapuna, Auckland 0740, New Zealand
Phone: +64 9 489 7094
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
a2 MILK
COMPANY
+47
%
VISTA
GROUP
+ 21
%
SUMMERSET
+ 13
%
VULCAN
STEEL
+ 12
%
RYMAN
HEALTHCARE
−23
%
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. If shareholders have not previously self-certified, they will receive 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: 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.