Kingfish Ltd. · NZX:KFL
Kingfish — Shareholder Meeting (August 2023)
41 slides from Kingfish's shareholder meeting presentation, Aug 4, 2023
Slide 1: Annual Meeting of Shareholders
Kingfish Limited ANNUAL MEETING OF SHAREHOLDERS 4 August 2023
Slide 2: Board of Directors and Kingfish Team
Board of Directors Andy Carol David Fiona Coupe Campbell McClatchy Oliver Kingfish Team Matt Peek Zoie Regan Michael Wayne Burns Portfolio Senior Investment Bacon Corporate Manager Analyst Senior Investment Manager Analyst
Slide 3: Agenda
Agenda • Preliminary matters • Chair’s Overview • Manager’s Review • Q&A • Annual Meeting Resolutions
Slide 4: Online Attendees – Question Process
ONLINE ATTENDEES – QUESTION PROCESS Written Questions: If you have a question to submit please select the Q&A tab on the right half of your screen. Type your question into the field and press submit. Your question will be immediately submitted. Help: The Q&A tab can also be used for immediate help.
Slide 5: Chair's Overview
Chair’s Overview
Slide 6: Kingfish's Investment Objectives
Kingfish’s Investment Objectives Absolute Returns Achieve a high real rate of return, comprising both income and capital growth within acceptable risk parameters Diversified Portfolio Access to a diversified portfolio of New Zealand quality, growth stocks through a single tax-efficient vehicle
Slide 7: Corporate Governance
Corporate Governance • ESG • Climate Risk reporting • Director skill matrix reporting
Slide 8: 2023 Overview
2023 Overview Net (loss) /profit Dividend NAV per share Share price ($19.5m) 11.64cps $1.40 $1.32 (2022: -$17.3m) (2022: 14.34cps) (2022: $1.58) (2022: $1.75) Share price Total shareholder Adjusted NAV discount/ Dividend return return* return* (premium) to NAV ^ -18.8% +7.7% -3.6% 5.7% (2022: +0.02%
Slide 9: 2023 Overview – Continued
2023 Overview – Continued Portfolio Performance For the year ended 3 years 5 years 12 months 31 March (annualised) (annualised) Adjusted NAV return* -3.6% +9.5% +9.1% (2022: -3.5%) Gross performance * -2.7% +11.5% +11.5% (2022: -2.5%) Benchmark Index ^ -1.9% +6.7% +7.4% (2022: -3.6%) *These metrics
Slide 10: Earnings per share
Earnings per share Earnings per 2023 2022 2021 2020 2019 Share Basic Earnings per Share -6.00 -5.49 56.28 0.75 24.24 (cents) Diluted Earnings per -6.00 -5.49 54.65 0.75 23.81 Share (cents)
Slide 11: Use of Shareholders' Funds
—_— —-—-<<_ &&» = ~~ -# Use of Shareholders’ Funds 12 months to 31 March 2023 ($m) 600 550 505 500 450 -19 400 350 300 250 200 Opening Net Dividends Dividends Closing NAV Loss Paid Reinvested NAV
Slide 12: First Three Months, FY 2024
First three Months, FY 2024 1 April – 30 June 2023 Total shareholder return* Adjusted NAV return* 3.8% 1.9% NAV per share 30 June 2023 Share price 30 June 2023 $1.40 $1.34 Net profit $8.8m *These metrics are Non-GAAP measures calculated in accordance with the methodology described in the Kingfish No
Slide 13: Warrants and Capital Management Programme
Warrants • Capital Management Programme • 83.1m KFLWH warrants issued 6 July 2023 with an initial exercise price of $1.37 • Exercise date is 26 July 2024 • The final exercise price will be announced in early June 2024
Slide 14: Manager's Review
Manager’s Review Matt Peek Portfolio Manager
Slide 15: Agenda
Agenda 1. FY2023 review and market update 2. Kingfish portfolio insights 3. Outlook
Slide 16: 1. FY2023 review and market update
1. FY2023 review and market update
Slide 17: Manager performance in Financial Year 2023
Manager performance in Financial Year 2023 - -1% -2% -1.9% -3% -2.7% -4% -5% Kingfish gross performance return S&P/NZX50G index
Slide 18: A year of two halves
A year of two halves 12,500 First half Second half -8.6% +7.4% 12,000 11,500 11,000 S&P/NZX50G Index 10,500 31 Mar 22 30 Jun 22 30 Sep 22 31 Dec 22 31 Mar 23 FY2023 financial year Note: S&P/NZX50G index; Source: Bloomberg
Slide 19: Inflation & interest rates
Inflation & interest rates Inflation is heading lower … … however, interest rates remain elevated 10% 6% ◼ NZ CPI ◼ NZ 10 yr govt bond 8% 5% ◼ US CPI ◼ US 10 yr govt bond 6% 4% 3% 4% 2% 2% 1% 0% - Dec 19 Dec 20 Jun 21 Dec 21 Dec 22 Jun 20 Jun 22 Jun 23 Dec 19 Dec 20 Dec 21 Dec 22 Jun 20 Jun 21 Jun 2
Slide 20: Economic backdrop
Economic backdrop Expected NZ GDP growth for 2023 is lower than other key economies 3% 2% 1% - New Zealand Australia United States Global Beginning of year As at 31 July 2023 Source: Bloomberg
Slide 21: 2. Kingfish portfolio insights
2. Kingfish portfolio insights
Slide 22: Portfolio company performance in FY2023
-50% -25% 0% 25% 50% Ryman Healthcare Delegat -39% -36% Vista Source: Bloomberg; Note: Total shareholder return Summerset Freightways -25% -23% -21% Mainfreight -14% Contact Energy -1% Port Of Tauranga 4% Meridian Energy 8% a2 Milk 11% Auckland Airport 11% F&P Healthcare 12% Portfolio company perfor
Slide 23: Portfolio management: FY2023 and FY2024 to date
Portfolio management: FY2023 and FY2024 to date Target weight changes (net) Smaller Larger
Slide 24: Portfolio departure and new addition
Portfolio departure and new addition Slowing customer growth in core donor management product 10k 9k 98% 9k DIFOT (high service) 8k 8k 7k Sep Mar Sep Mar Sep Mar Sep 19 20 20 21 21 22 22 Source: Company releases; Note: 98% DIFOT (Delivery In Full and On Time) per Vulcan prospectus
Slide 25: Short term setbacks present opportunity
Short term setbacks present opportunity $30 $28 $26 FY 2022 result at lower end of guidance $24 Weak first half trading update $22 $20 $18 $16 31 Mar 22 30 Jun 22 30 Sep 22 31 Dec 22 31 Mar 23 Source: Bloomberg FY2023 financial year
Slide 26: Long term fundamentals remain intact
Long term fundamentals remain intact $30 $28 $26 $24 New product launches $22 $20 $18 Inventory Improved revenue guidance destocking $16 fading 31 Mar 22 30 Jun 22 30 Sep 22 31 Dec 22 31 Mar 23 Source: Bloomberg FY2023 financial year
Slide 27: Kingfish: backing quality growth companies
Kingfish: backing quality growth companies Quality Growth 14.9% 15.1% 13.6% 12.1% +12% +8% +8% +5% Return on Operating Profit Earnings Per Share Sales Capital Employed Margin Growth Growth Kingfish median Benchmark (NZX 50) median Source: Fisher Funds analysis based on Bloomberg data as at 25 July 2
Slide 28: Kingfish: a concentrated yet balanced portfolio
Kingfish: a concentrated yet balanced portfolio Cash Infrastructure 34% Industrial 21% Retirement 13% Consumer 6% Healthcare 17% 15 Software 4% companies Cash 4% As at 30 June 2023
Slide 29: 3. Outlook
3. Outlook
Slide 30: FY2024 first quarter performance
FY2024 first quarter performance (to 30 June 2023) +3% 2.3% +2% +1% 0.3% Kingfish gross performance return S&P/NZX50G index
Slide 31: Outlook
Outlook • Inflation subsiding, interest rates more stable but at higher levels • NZ economy in recession (how deep?), pre-election uncertainty • Global economy more positive • Opportunities for active management • Ongoing focus on responsible investment considerations • Consistent strategy: Wide moa
Slide 32: General Questions from Shareholders
General Questions from Shareholders (not relating to resolutions)
Slide 33: Online Attendees – Voting Process
ONLINE ATTENDEES – VOTING PROCESS Shareholder & Proxyholder Voting Once the voting has been opened, the resolutions and voting options will allow voting. To vote, simply click on the Vote tab, and select your voting direction from the options shown on the screen. You can vote for all resolutions at
Slide 34: Annual Meeting 2023 Resolutions
Annual Meeting 2023 Resolutions
Slide 35: 2023 Annual Meeting Resolutions
2023 Annual Meeting Resolutions • Introduce and propose • Discussion, questions • Lodge your vote per the digital portal
Slide 36: Matters of Business
Matters of Business • Annual Report • Resolutions: – Re-elect Andy Coupe – Increase directors’ fee pool – Auditor remuneration
Slide 37: Re-election of Andy Coupe
Resolution 1 Re-election of Andy Coupe To re-elect Andy Coupe as a Director of Kingfish Limited
Slide 38: Increase Directors' fee pool
Resolution 2 Increase Directors’ fee pool To authorise an increase in the Directors’ fee pool from $157,500 (plus GST if any) to $185,500 (plus GST if any).
Slide 39: Auditor Remuneration
Resolution 3 Auditor Remuneration That the Board of Directors be authorised to fix the remuneration of the auditor for the ensuing year
Slide 40: Conclusion
Conclusion • Complete and sign voting paper • Voting papers in the voting boxes • If you need a voting paper please see Computershare • Results to NZX
Slide 41: Thank you
Thank you