Kingfish Ltd. · NZX:KFL
Kingfish — Shareholder Meeting (August 2020)
42 slides from Kingfish's shareholder meeting presentation, Aug 20, 2020
Slide 1: Annual Meeting of Shareholders
Kingfish Limited ANNUAL MEETING OF SHAREHOLDERS 20 August 2020
Slide 2: Board of Directors and Kingfish Team
Board of Directors Alistair Ryan Carmel Fisher Andy Coupe Carol Campbell Kingfish Team Sam Dickie Matt Peek Wayne Burns Snr Portfolio Manager Investment Analyst Corporate Manager
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 • When the Question function is available, the Q&A icon will appear at the top of the app. • To send in a question, simply click in the ‘Ask a question’ box, type your question and the press the send arrow • Your question will be sent immediately for review
Slide 5: Chair's Overview
Chair’s Overview • April 2019 – January 2020 • February – March 2020 • April – 20 August 2020 • $1.37 to $1.68 plus divs, warrants
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 • Board meetings • Investment Committee meetings • Audit & Risk Committee meetings
Slide 8: 2020 Overview
2020 Overview Net profit Dividend NAV per share Share price $1.7m 12.63cps $1.39 $1.29 (2019: $47.1m) (2019: 11.76cps) (2019: $1.57) (2019: $1.35) Total shareholder Adjusted NAV Share price Dividend return discount to NAV^ return* return* +7.2% +9.4% +0.4% 6.7% (2019: 13.5%) (2019: +9.0%) (2019: 17.
Slide 9: 2020 Overview – Continued
2020 Overview – Continued Portfolio Performance For the year ended 3 years 5 years 12 months 31 March (annualised) (annualised) Adjusted NAV return* +0.4% +10.6% +11.1% (2019: +17.6%) Gross performance * +2.9% +13.3% +13.8% (2019: +21.2%) Benchmark Index^ (0.5%) +10.8% +10.9% (2019: +18.3%) *These m
Slide 10: Earnings per share
Earnings per share Earnings 2020 2019 2018 2017 2016 per Share Basic Earnings 0.75 24.24 19.62 14.50 16.71 per Share (cents) Diluted Earnings 0.75 23.81 19.51 14.13 16.43 per Share (cents)
Slide 11: Use of Shareholder's Funds
Se ee Use of Shareholder’s Funds 12 months to 31 March 2020 ($m) —_ — — 3 -29 Opening Net Dividends Dividends Buybacks Warrants Closing NAV Profit Paid Reinvested NAV
Slide 12: First Four Months, FY 2021
First Four Months, FY 2021 1 April – 31 July 2020 Total shareholder return* Adjusted NAV return* +34.4% +26.9% NAV per share 31 July 2020 Share price 31 July 2020 $1.73 $1.69 Net profit $92.6m *These metrics are Non-GAAP measures calculated in accordance with the methodology described in the Kingfis
Slide 13: Warrants
Warrants • Capital Management Programme • 61.6m KFLWF warrants issued March 2020 • Exercise price is $1.64 less the dividends declared over approx. a 12 month period • Exercise date is 12 March 2021
Slide 14: Manager's Review
Manager’s Review Sam Dickie Senior Portfolio Manager
Slide 15: Who am I?..
Who am I?.. • 50+ years of Research + Development • Leading edge innovator • 99% of products sold outside of NZ • 300%+ growth in core product recently • CEO worked for company for 37 years.
Slide 16: Agenda
Agenda 1. FY2020 review & COVID-19 2. Active management more important than ever 3. Portfolio insights 4. Outlook
Slide 17: 1. FY2020 & COVID-19
1. FY2020 & COVID-19
Slide 18: Roller-Coaster Year for the NZ market
Roller-Coaster Year for the NZ market Solid global growth Global Pandemic Unprecedented Stimulus 2 1 FY2020 financial year 30 March 2019 30 June 2019 30 September 2019 31 December 2019 31 March 2020 30 June 2020 Note: S&P/NZX50G index; Source: Bloomberg
Slide 19: COVID-19 = Structural Change
COVID-19 = Structural Change US Ecommerce % of Retail Sales 30% 25% 20% 15% 10% 5% 0% April 2020 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: Bank of America
Slide 20: Manager performance FY2020
Manager performance FY2020 Fiscal year to 31 March 2020 +2.9% +3% +2% +1% -0.5% - -1% Kingfish gross S&P/NZX50G index performance return Late COVID-19 Impact on performance
Slide 21: Strong performance FY2021 so far
Strong performance FY2021 so far Fiscal year FY2021 to date as at 31 July 2020 +35% +33.1% +30% +25% +20% +19.1% +15% Kingfish gross S&P/NZX50G index performance return
Slide 22: Portfolio company performance
Portfolio company performance Portfolio company return (year to 31 March 2020*) 100% 80% 60% 40% 20% 0% -20% -40% -60% -80% Port Of Tauranga Summerset Mainfreight Ryman Healthcare Infratil F&P Healthcare A2 Milk Vista Auckland Airport Freightways Pushpay Holdings Meridian Energy Delegat Note: *Only
Slide 23: 2. Active Management more important than ever
2. Active Management more important than ever
Slide 24: Segmented portfolio = staying nimble
Segmented portfolio = staying nimble Bucket 1 Beneficiaries Defensives Bucket 2 Cyclicals Bucket 3 Also (outside our portfolio): • Retail • Airlines Eye of the storm Bucket 4 • Hospitality • Tourism • Entertainment
Slide 25: Stock Pickers Paradise
Stock Pickers Paradise Performance 31 March 2019 to 31 July 2020 +35% +30% +25% +20% 1.9% 33.1% +15% 5.1% +10% 19.1% 12.1% +5% - F&P Healthcare a2 Milk Everything else S&P/NZX50G Kingfish contribution contribution contribution index Gross return
Slide 26: 3. Portfolio insights
3. Portfolio insights
Slide 27: Ongoing Upgrade to Quality
Ongoing Upgrade to Quality Decreases Increases (-7.5%) (+14.5%) Smaller Larger Exits Entries (-3.0%) (+0%) Note: 31 March 2019 until present, logos show target weight changes of 1% or larger only
Slide 28: What went especially well
What went especially well Hospital Hardware Units Sales Annual Growth 200% 180% 160% 140% 120% 100% 80% 60% 40% 20% 0% 2015A 2016A 2017A 2018A 2019A 2020A 2021F Source: Company data and estimates
Slide 29: What went especially well
What went especially well % of Customers Giving via App A2M Share of Online Bestsellers 80% 20% 70% 18% 16% 60% 14% 50% 12% 40% 10% 8% 30% 6% 20% 4% 10% 2% 0% 0% April 2016 April 2017 April 2018 April 2019 April 2020 January 2016 July 2016 October 2016 January 2017 July 2017 October 2017 January 201
Slide 30: What went against us?
$1,000,000,000 $1,200,000,000 $1,400,000,000 $200,000,000 $400,000,000 $600,000,000 $800,000,000 $0 March 2019 April 2019 May 2019 June 2019 July 2019 August 2019 September 2019 October 2019 November 2019 December 2019 January 2020 US Monthly Box Office February 2020 March 2020 April 2020 May 2020 J
Slide 31: 4. Outlook
4. Outlook
Slide 32: Outlook: Active Management = Critical
Outlook: Active Management = Critical • New Zealand economy was humming…. • ….but most expect some slowdown • We retain a healthy balance between being nimble (honed during COVID) and thinking long term • Active portfolio management more important than ever
Slide 33: I am Fisher & Paykel Healthcare
….I am Fisher & Paykel Healthcare Total Shareholder Return since March 2010 950% 750% 550% 350% 150% -50% March 2010 March 2011 March 2012 March 2013 March 2014 March 2015 March 2016 March 2017 March 2018 March 2019 March 2020 Source: Bloomberg (in NZD), total return of FPH NZ EQUITY 31 March 2010 t
Slide 34: General Questions from Shareholders
General Questions from Shareholders (not relating to resolutions)
Slide 35: Online Attendees – Voting Process
ONLINE ATTENDEES – VOTING PROCESS • When the poll is open, the vote will be accessible by selecting the voting icon at the top of the screen • To vote simply select the direction in which you would like to cast your vote, the selected option will change colour. • There is no submit or send button, y
Slide 36: Annual Meeting 2020 resolutions
Annual Meeting 2020 resolutions
Slide 37: 2020 Annual Meeting Resolutions
2020 Annual Meeting Resolutions • Introduce and propose • Discussion, questions • Lodge your vote per the digital portal
Slide 38: Matters of Business
Matters of Business • Annual Report • Resolutions: – Re-elect Andy Coupe – Auditor remuneration
Slide 39: Re-election of Andy Coupe
Resolution 1 Re-election of Andy Coupe To re-elect Andy Coupe as a Director of Kingfish Limited
Slide 40: Auditor Remuneration
Resolution 2 Auditor Remuneration That the Board of Directors be authorised to fix the remuneration of the auditor for the ensuing year
Slide 41: Conclusion
Conclusion • Enter your votes via the digital portal • Results to NZX
Slide 42: Thank you
Thank you