Kingfish Ltd. · NZX:KFL
Kingfish — Shareholder Meeting (July 2009)
34 slides from Kingfish's shareholder meeting presentation, Jul 24, 2009
Slide 1: 5th Annual Meeting of Shareholders
5th Annual Meeting of Shareholders Friday 24 July 2009
Slide 2: Welcome
Welcome Board of Directors Rob Challinor - Chairman Carmel Fisher - Director Ian Hendry - Independent Director Annabel Cotton - Independent Director Corporate Manager Nivedita Findlay
Slide 3: Preliminary matters
Preliminary matters Notice of meeting Quorum Proxies received Minutes of the 2008 meeting
Slide 4: Presentation of Annual Result: Chairman's Overview
Presentation of Annual Result Chairman’s Overview
Slide 5: Financial crisis and market headlines
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Slide 6: Slide 6
Slide 7: Result for 2008/09
Result for 2008/09 Cents per share Net Asset Value 31 March 2008 131 Less: Net Asset Value 31 March 2009 92 Reduction (39) Add: Dividend paid 20 June 2008 4.5 Reduction in NAV (-26%) (34.5) Represented by Operating Deficit for the year ($31m)
Slide 8: Update to 30 June 2009
Update to 30 June 2009 Cents per share Net Asset Value 31 March 92 Net Asset Value 30 June* 100 Gain in NAV 8 Add: Dividend paid 19 June 3 Gain in NAV (+12%) 11 Represented by Operating Surplus* $9m * Unaudited
Slide 9: Total Shareholder Return per Share
Total Shareholder Return per Share
Slide 10: Net Asset Value and Share Price
Net Asset Value and Share Price $1.75 NAV Share Price $1.50 $1.25 $1.00 $0.75 $0.50 4 4 5 5 6 6 7 7 8 8 9 - 04 l -0 -0 -0 5 l -0 -0 -0 6 l -0 -0 -0 7 l -0 -0 -0 8 l -0 -0 -0 9 l -0 ar Ju o v a r Ju o v a r Ju o v a r Ju o v a r Ju o v a r Ju M N M N M N M N M N M
Slide 11: Share Price Discount to Net Asset Value
Share Price Discount to Net Asset Value 10% 5% 0% -5% -10% Undervalued Undervalued -15% -20% -25% -30% -35% 04 05 06 07 08 09 - - - - - - ar ar ar ar ar ar M M M M M M
Slide 12: Capital Management
Capital Management High Discount to NAV common when confidence low Share buybacks may help narrow discount in short term New Dividend Policy announced June 2009, well received
Slide 13: New Dividend Policy – Rationale
New Dividend Policy – Rationale • What is it? Company undertakes to maintain a permanent minimum distribution payout, irrespective of performance of underlying portfolio • Innovative approach for NZ market but established practice in US (40% of US closed-end funds have adopted a similar policy) • Is
Slide 14: New Dividend Policy – how it works
New Dividend Policy – how it works • Replaces traditional annual dividend, made possible due to PIE regime • Pay 2% of average NAV per quarter commencing Sept 09 • Payment dates: Mid September, December, March and May • Dividend Reinvestment Plan continues - 48% of shareholders participate in DRP
Slide 15: Manager's Report
2009 Manager’s Report Carmel Fisher Fisher Funds
Slide 16: Agenda
Agenda Market Review Portfolio Review Strategy Period since March
Slide 17: Kingfish Performance to March 09
Kingfish Performance to March 09 Twelve Since months inception Kingfish NAV -25.3% +11.1% 90 day Bank Bill Index +7%* +15.4% +104.1% NZSX Mid Cap Index -29.9% -8.6% NZSX 50 Gross Index -25.4% -0.1% Kingfish share price -26.0% +1.3% * Kingfish performance benchmark
Slide 18: Market Review
Market Review “Traditional stock picking and portfolio management techniques mattered little … this has been a crisis of confidence” “Recessions are not great … but they can be understood and managed.”
Slide 19: Market Review
180 160 140 120 —NZ50 Index —kKingfish 100 80 60 Jul-O4 Jul-O5 Jul-O6 Jul-O7 Jul-O8 Jul-
Slide 20: Portfolio Review
Portfolio Review — 2.0% 1.0% 0.0% -1.0% -2.0% -3.0% -4.0% -5.0% -6.0% -7.0% -8.0% aoe | ul ey | ee) sjeBajeq | al] “| ee i” ie” re” | U O g o o.6UDS a> fo) o = oO
Slide 21: Portfolio Strategy: Liquidity
Portfolio Strategy Liquidity
Slide 22: Portfolio Strategy
Portfolio Strategy Wakefield, Delegat’s, NZX, Opus, Ryman, Abano Michael Hill, Pumpkin Patch, Rakon, Freightways, Mainfreight, Sealegs
Slide 23: Strength of Business
Strength of Business Track Record Earnings History Earnings Outlook People STEEPP Analysis Price S T E E P P
Slide 24: Stocks in the spotlight
Stocks in the spotlight Share price ↓62% Caught in property market downturn, came close to breaching bank covenants. Successful capital raising. Slight fall in STEEPP rating, but remains mid-tier stock. Share price at half diluted asset backing
Slide 25: Stocks in the spotlight
Stocks in the spotlight Share price ↓57% Volatile share price reflecting currency impact on profitability. Most of Rakon’s sales are in US$. Slight fall in STEEPP rating, but remains mid-tier stock. Many exciting new applications for its products.
Slide 26: Stocks in the spotlight
Stocks in the spotlight Share price ↓49% Discretionary consumer spending fallen. Australian operations resilient, NZ down, US losses. Short-term earnings vulnerable, but long term potential growth still sound. Fall in STEEPP rating, moved from core to mid-tier stock.
Slide 27: Stocks in the spotlight
Stocks in the spotlight Share price ↓44% Similar story to Michael Hill. Australian operations resilient, NZ down, US losses. Losses now stemmed in US. Fall in STEEPP rating, moved from core to mid-tier stock.
Slide 28: Stocks in the spotlight
Stocks in the spotlight Share price ↑24% Delegat’s has enjoyed significant growth in volume, price and market share. Increase in STEEPP rating, moved from bottom-tier to mid-tier stock. One of the cheapest, yet fastest growing of our stocks.
Slide 29: Post balance date
Post balance date Performance 31 Mar 09 - 22 Jul 09 Kingfish NAV +14.0% 90 day Bank Bill Index +7%* +2.8% NZSX Mid Cap Index +10.2% NZSX 50 Gross Index +12.0% Kingfish share price +18.3% * Kingfish performance benchmark
Slide 30: Current Kingfish Portfolio
Current Kingfish Portfolio Core Second Third- Wakefield Ryman Freightways -tier tier Mainfreight Delegat’s Opus NZ Michael Hill Tower Exchange Pumpkin Patch Abano Metlifecare Rakon Waterman
Slide 31: Kingfish Portfolio Metrics
Kingfish Portfolio Metrics Kingfish NZ50 Index PE Ratio 11.7 13.4 Forecast earnings growth 11% -1% Discount to valuation 22% 26% Forecast net dividend yield 4.4% 6.1% Based on consensus forecasts
Slide 32: Summary
Summary Consistent outperformance Quality investments Value-adding portfolio decisions Currently undervalued Continued focus on long-term growth
Slide 33: Other Business
Other Business To re-elect Rob Challinor as a Director To record the appointment of PricewaterhouseCoopers and to authorise Directors to fix their remuneration General - Questions
Slide 34: Thank you
Thank you