KFL - December 2025 Quarter Newsletter

The December quarter saw Kingfish deliver a gross performance return
(GPR) of +1.2% and an adjusted NAV return of +0.8%, compared to the
+1.9% return of the S&P/NZX50G benchmark index. The returns for
the 2025 calendar year were -1.9% and -2.8% respectively, against the
benchmark return of +3.3%.
This comes after two consecutive calendar years of superior returns,
including +25.7% GPR versus +11.4% for the index in 2024, so it is worth
bearing in mind that despite 2025 being a disappointing year, over longer
periods Kingfish has still continued to outperform.
After many years of investing, including almost 9 years of involvement
with Kingfish, I have come to appreciate that progress does not typically
happen in a straight line. In part as investors our ability to stomach
uneven returns is what enables equity investors to expect superior
returns over time. This dynamic is part and parcel of investing in shares
as opposed to the lower but more predictable returns you can get in term
deposits or government bonds.
We remain confident in the companies within the Kingfish portfolio and
note that most have made significant progress in their businesses in
the last year, despite some disappointing share price returns. Given this
backdrop we are optimistic heading into 2026.
Several large positions’ performance impacted overall
returns in 2025
In 2025 a few of our largest positions underperformed at the same time,
which was unexpected. The simple average shareholder return of the
companies owned by Kingfish in the year was around +4% which was
better than the overall GPR of -1.9% and demonstrates this. Over time,
our differentiated position sizing has added value, but this has not been
the case in every year (including 2025).
The companies that detracted most from performance this calendar
year by virtue of position size and returns included companies in a
variety of sectors, including medical wholesaler EBOS (-23% in 2025), as
we discussed last quarter, but also international infrastructure investor
Infratil (-10%), and cinema software provider Vista (-16%). Retirement
village operator Summerset (-4%) and freight and logistics business
Mainfreight (-4%) both rebounded strongly in the December quarter
but have also weighed on performance in 2025, despite a nascent New
Zealand economic recovery.
Infratil’s year somewhat mirrored that of Kingfish
Infratil has a longstanding track record in growing value for shareholders
but 2025 was a year of disappointing share price performance despite
progress in its portfolio of operating businesses.
CDC Data Centres grew its operational capacity, boosted its development
pipeline, and increased new leasing to key cloud clients. Opinions around
AI related investment have waxed and waned over the year, but over the
course of the year it is now expected that significant additional spend will
be required on AI datacentres, which CDC is well positioned to benefit
from.
Infratil’s portfolio company One NZ has outperformed rival Spark
in the New Zealand mobile market and overall has showed resilient
performance despite the tough climate. Infratil’s third key asset, US
renewables developer Longroad, has emerged from uncertainty around
the landscape after President Trump took office by securing tax credits
for a large portion of its future development through to 2027.
It would be remiss not to mention that Infratil also successfully
crystallised its longstanding investment in electricity generator Manawa
at a premium valuation.
Some of the smaller positions performed admirably
Kingfish’s best performers for the 2025 calendar year were a2 Milk
(+75%), Freightways (+41%) and Port of Tauranga (+23%), though on
average these only accounted for around 10-11% of the portfolio over
2025.
All three companies saw stronger than expected sales performance
over the year, plus maintain an outlook for ongoing growth, which
underpinned the strong share price performance. Freightways and Port
of Tauranga remain leveraged to an accelerating New Zealand economy.
Other notable performers in 2025 included electricity company Mercury
(+14%) since its addition early in the year and Vulcan Steel (+8%), which
will benefit from improving economic conditions.
Summerset and Mainfreight are well placed for an
accelerating recovery in New Zealand
This time last year I wrote that ‘in 2025 it appears as if local
business conditions may improve’ but ‘the key question will be how
meaningful this will be, as households are still licking their wounds and
unemployment has been ticking up as companies react to tougher
conditions’.
As it has transpired, the Kiwi economy remained sluggish for most of the
year, although we have seen an emerging pick-up in activity levels in the
second half, admittedly from depressed levels.
It has been a surprise that Summerset shares have been weak this year
given the business has continued to grow by building and selling more
retirement and aged care units, while other players have pulled back. The
management team have delivered in line with expectations. Mainfreight
has seen generally tougher than expected trading conditions across
its international freight markets and has invested in additional capacity
in New Zealand during the downturn which means its path back to
earnings growth has taken longer than expected.
However, a reversal in sentiment saw a strong rebound in both
Summerset (+15%) and Mainfreight (+11%) in the December quarter.
Lower interest rates and a more positive economic outlook may see the
New Zealand housing market finally return to price growth in 2026. In
November, Mainfreight commented it is seeing improved trading from
New Zealand customers, plus has won a number of new accounts which
will contribute to volumes (not least IKEA).
It appears as though the worst may have passed for the New Zealand
economy, and while the slope of a recovery is unclear, these businesses
and others in the portfolio stand to perform better with an economic
tailwind.
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 October 2025 – 31 December 2025
as at 31 December 2025
1
KFL NAV
$
1.32
DISCOUNT
1
1.2
%
$
0.03
Warrant Price
Matt Peek
Senior Portfolio Manager
Fisher Funds Management Limited
15 January 2026
$
1.30
Share Price

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(0.3%)+7.4%(0.4%)
Adjusted NAV Return+0.8%+7.3%+1.5%
Portfolio Performance
Gross Performance Return +1.2%+8.9%+2.9%
S&P/NZX50G Index+1.9%+5.7%+0.7%

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 Int Airport7.5%
Contact Energy4.1%
Delegat Group1.2%
EBOS Group5.4%
Fisher & Paykel Healthcare19.5%
Freightways4.3%
Infratil14.0%
Mainfreight9.5%
Mercury NZ Limited 3.4%
Meridian Energy4.9%
Port of Tauranga3.9%
Summerset10.1%
The a2 Milk Company3.5%
Vista Group International4.8%
Vulcan Steel1.7%
Equity Total97.8%
New Zealand dollar cash2.2%
TOTAL100.0%
PORTFOLIO HOLDINGS SUMMARY
as at 31 December 2025
COMPANY NEWS
Dividend Paid 19 December 2025
A dividend of 2.70 cents per share was paid to Kingfish shareholders
on 19 December 2025 under the quarterly distribution policy. Interest
in Kingfish’s dividend reinvestment plan (DRP) remains high with
39% 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 2025
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
SUMMERSET
+15
%
MAINFREIGHT
+11
%
a2 MILK
COMPANY
+8
%
INFRATIL
-10
%
VISTA GROUP
-12
%