KFL – September 2025 monthly update

1
A WORD FROM THE MANAGER
The Kingfish portfolio gross performance return and adjusted NAV
return in August were -2.0% and -2.1% respectively, versus the New
Zealand shares benchmark S&P/NZX 50 return of +0.8%. It was
a busy month, with many of the portfolio’s June and December
year end companies reporting results. The majority of the weaker
performance was driven by EBOS and Vista, which provided guidance
that included more cost than expected loaded into their businesses in
the near term to drive their attractive long term growth trajectories.
a2 Milk (+21%) delivered results in line with expectations, with infant
formula revenue growth accelerating from +7% in the first half to
+12% in the second with even stronger profit growth. This was
off the back of continued market share gains in both a2 Platinum
and a2 Zhichu ranges. The more notable news was the company
simultaneously announcing a comprehensive supply chain strategy
reset, with the sale of its 75% share in loss-making Mataura Valley
Milk plant in Southland for $100m and acquisition of 100% of a
Pokeno milk plant from Yashili for $282m. The Pokeno plant comes
complete with infant formula blending and canning lines, and two
brand licenses which will allow the company in time to introduce new
products in different segments of the lucrative Chinese infant formula
market. The company will be able to migrate its a2 Platinum range
there from partner Synlait over the next 5 years, which it expects to
internalise a significant amount of profit margin and deliver solid
return on investment on the purchase over time as production
volumes scale up.
Delegat (+4%) delivered a better than feared result with operating
profit after tax of $51m coming in ahead of its $47-50m expectation
as sales late in the period picked up following a US tariff induced
hiatus. The company expects improved sales in the new financial
year plus cost improvements in some areas to deliver a profit target
of $50-55m.
EBOS (-20%) delivered a slightly softer result than expected, with core
operating profit (EBITDA) of A$585m up +7.5% on the prior year but
below the midpoint of its A$575-600m range, versus expectations
it would be nearer the top end. This partly reflects a pickup in
competitive pressures in wholesale pharmacy, a slowdown in trading
in its premium pet food brands and higher than expected costs as it
transitions to new warehouses with more capacity for growth. The
company guided for core operating profit growth of +7% in the new
financial year, but when combined with the additional lease impost of
the expanded facilities (which had not been previously flagged) this
translates to a year of unexpected flat profits before growth should
resume as utilisation of the excess capacity picks up.
Freightways (+9%) defied the softer New Zealand economy to
deliver underlying profit growth of +8%. This was off the back of solid
performance of its NZ Couriers and Post Haste courier operations
in New Zealand and its Allied Express large item delivery business
in Australia (which grew volumes by +15% in the second half of the
financial year). The New Zealand economy remains tough going but
the company has been able to pick up market share and benefited
from some price increases including its ongoing "pricing for effort"
programme, although same-customer network courier volumes in
New Zealand improved in the second half (+0.6% growth) versus the
first half (-0.2% decline).
The New Zealand electricity companies Mercury (+6%), Contact
(+2%), and Meridian (+0.2%), all reported results which carried the
impact of two dry periods. This in particular impacted Meridian as the
largest operator exposed most to a lack of water for hydro generation
and the high prices which ensued, having to enter hedge contracts
and buy power to top-up its generation. Kingfish has benefited
from having added Mercury earlier in the year, with the company
announcing first-time guidance for the new financial year of core
operating earnings (EBITDA) of $1b, ahead of expectations.
Port of Tauranga (+1%) reported earnings ahead of the top end of
management guidance. The result marked a return to growth after
recent challenges with high rail costs, Port of Auckland taking back
market share, and ongoing shipping window challenges. However, its
berth extension project is being delayed due to legal technicalities.
Without the extension the port is close to full capacity with limited
ability to take more cargo volume. Management are hopeful of
obtaining the consent by year end, but it could be 2028 before the
expansion project is completed. Management have indicated that
they nevertheless plan to improve returns towards their target levels
via efficiency and pricing initiatives.
Summerset (-4%) delivered a half year result which demonstrated
continued signs of recovery in sales volumes and contracted activity,
particularly in New Zealand. The company shared medium term
debt forecasts for the first time, highlighting how this will reduce
going forward as recent investment will moderate and will be better
matched with sales. In particular, it is past peak investment at capital
intensive sites, St Johns and Boulcott, and Australia is on the cusp of
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
September 2025
KFL NAV
$
1.33
PREMIUM
1
0.6
%
as at 31 August 2025
$
0.05
WARRANT PRICE
$
1.33
SHARE PRICE

2
KEY DETAILS
as at 31 August 2025
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
$1.21
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
350m
MARKET CAPITALISATION
$466m
GEARING
None (maximum permitted 20%
of gross asset value)
SECTOR SPLIT
as at 31 August 2025
2
%
24
%
11
%
INDUSTRIALS
5
%

UTILITIES
MATERIALS
4
%
5
%
36
%
HEALTHCARE
INFORMATION
TECHNOLOGY
13
%

FINANCIALS
CONSUMER
STAPLES
CASH
delivering units at scale after many years of investment. Summerset
also shared forecasts for over $12.30 of net tangible assets per
share growth from current developments, versus the 30 June figure
of $13.18 and month-end share price of $10.99. This reinforces
our thesis that the current share price does not adequately reflect
the strong value uplift expected from current development despite
Summerset’s strong track record.
Vista (-15%) saw its share price decline after its half-yearly result. Its
result showed solid year-on-year growth in most metrics including
recurring revenue +11% and core operating profit (EBITDA) margin
increasing from 10% to 13%. A key surprise was the company
announcing it will be increasing costs in the short term to accelerate
migration of customers to its new cloud product suite in response to
demand, which will constrain cash flow over the next few years just
at the point the company was poised to generate strong growth after
a prolonged investment phase. The upside of this should be a higher
proportion of existing customers on its higher-value products earlier.
The company also provided detail of its plans to launch embedded
payment functionality, which will be of particular benefit to its smaller
customers. It can do this in an efficient way that outsources much
of the payment processing to specialist providers and means a low
cost but recurring revenues that will likely grow to over $15m at high
additional profit margins.
Vulcan Steel (+12%) delivered a result similar to expectations,
with daily volumes stabilising towards the end of the financial year
and signs of improvement in some sectors. It also announced the
acquisition of Roofing Industries for $88m. This is a privately owned
business which has grown from nothing 26 years ago to revenue
of around $160m and a leading position in the New Zealand steel
roofing and cladding market with 15 branches nationally. It has a
similar culture and business model to Vulcan, with strong focus on
customer service, low-cost base, and strong focus on efficiency
enabled by technology. The acquisition price is attractive relative to its
earnings, and the fit of the business means Vulcan should be able to
derive some benefits from procurement in greater scale and in some
instances bundling the product offerings to joint customers to gain
greater share of wallet. Kingfish participated in the $86m share issue
to fund the acquisition.
Matt Peek
Portfolio Manager
Fisher Funds Management Limited

TOTAL SHAREHOLDER RETURN to 31 August 2025
AUGUST'S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO during the month
5 LARGEST PORTFOLIO POSITIONS as at 31 August 2025
A2 MILK COMPANY
+21
%
VULCAN STEEL
+12
%
FREIGHTWAYS
+9
%
VISTA GROUP
-15
%
EBOS GROUP
-20
%
FISHER & PAYKEL
HEALTHCARE
20
%
MAINFREIGHT
13
%
SUMMERSET
9
%
INFRATIL
9
%
EBOS GROUP
8
%
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
The remaining portfolio is made up of another 10 stocks and cash.
Mar
2025
33
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return(0.8%)+1.4%+11.8%+2.8%+3.6%
Adjusted NAV Return(2.1%)(0.9%)+1.5%+5.0%+3.0%
Portfolio Performance
Gross Performance Return(2.0%)(0.5%)+3.1%+6.5%+4.5%
S&P/NZX50G Index+0.8%+4.1%+3.9%+3.7%+1.6%
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 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 2025

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 (Portfolio Manager) and
Michael Bacon and Zoie Regan
(Senior Investment Analysts) 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 Andy Coupe (Chair),
Carol Campbell, David
McClatchy and Fiona Oliver.
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
»Kingfish announced a new issue of warrants on 14 March
2025
»The warrant term offer document was sent to all Kingfish
shareholders in late March 2025
»Warrants were allotted to all eligible Kingfish shareholders
on 1 May 2025
»The new warrants (KFLWI) commenced trading on the
NZX Main Board from 2 May 2025
»The Exercise Price of each warrant is $1.35, 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
»The Exercise Date for the Kingfish warrants is 1 May 2026