Kingfish Ltd. · NZX:KFL
Kingfish — Shareholder Meeting (August 2024)
38 slides from Kingfish's shareholder meeting presentation, Aug 8, 2024
Slide 1: Annual Meeting of Shareholders
Kingfish Limited ANNUAL MEETING OF SHAREHOLDERS 8 August 2024
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: Chair's Overview
Chair’s Overview
Slide 5: 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 6: Corporate Governance
Corporate Governance • ESG • Climate Risk reporting
Slide 7: 2024 Overview
2024 Overview Net profit / (loss) Dividend NAV per share Share price $19.9m 10.83cps $1.34 $1.25 (2023: -$19.5m) (2023: 11.64cps) (2023: $1.40) (2023: $1.32) Share price Total shareholder Adjusted NAV Dividend return discount to return* return* NAV ^ +3.7% +8.5% 4.6% 6.5% (2023: -18.8%) (2023: +7.7%
Slide 8: 2024 Overview – Continued
2024 Overview – Continued Portfolio Performance For the year ended 3 years 5 years 12 months 31 March (annualised) (annualised) Adjusted NAV return* +4.6% -0.9% +6.6% (2023: -3.6%) Gross performance * +6.3% +0.3% +8.6% (2023: -2.7%) Benchmark Index ^ +1.9% -1.2% +4.2% (2023: -1.9%) *These metrics ar
Slide 9: Earnings per share
Earnings per share Earnings per 2024 2023 2022 2021 2020 Share Basic Earnings per Share 5.96 -6.00 -5.49 56.28 0.75 (cents) Diluted Earnings per 5.96 -6.00 -5.49 54.65 0.75 Share (cents)
Slide 10: Use of Shareholders' Funds
Use of Shareholders’ Funds 12 months to 31 March 2024 ($m)
Slide 11: First three Months, FY 2025
First three Months, FY 2025 1 April – 30 June 2024 Total shareholder return* Adjusted NAV return* -4.4% -0.5% NAV per share 30 June 2024 Share price 30 June 2024 $1.31 $1.17 Net loss ($2.4m) *These metrics are Non-GAAP measures calculated in accordance with the methodology described in the Kingfish
Slide 12: 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 • Final exercise price $1.26 • Exercise date 26 July 2024 • 1.28% (1.1m) warrants exercised
Slide 13: Manager's Review
Manager’s Review Matt Peek Portfolio Manager
Slide 14: Agenda
Agenda 1. FY2024 review 2. Kingfish portfolio insights 3. 20 years of the Kingfish approach 4. Outlook
Slide 15: 1. FY2024 review
1. FY2024 review
Slide 16: Manager performance in Financial Year 2024
Manager performance in Financial Year 2024 +7% +6.3% +6% +5% +4% +3% +2% +1.9% +1% - Kingfish gross performance return S&P/NZX50G index
Slide 17: NZ economy weakened materially over FY2024
NZ economy weakened materially over FY2024 “New Zealand is experiencing an economic NZ annual real GDP growth downturn as interest rates have been increased to tackle high inflation. This downturn is deeper +6% and more persistent than previously expected” NZ Government Budget, May 2024 +4% (Trend t
Slide 18: Inflation and interest rate dynamic has matured
Inflation and interest rate dynamic has matured NZ inflation is nearing the 1-3% target … … with restrictive interest rate settings still in place 10% 10% ◼ NZ CPI FY2024 8% progress 8% ◼ US CPI ◼ NZ OCR 6% 6% 4% 4% Long term neutral 2% 2% (2.75%) 0% - Jun 2019 Jun 2020 Jun 2021 Jun 2022 Jun 2023 Ju
Slide 19: 2. Kingfish portfolio insights
2. Kingfish portfolio insights
Slide 20: Portfolio company performance in FY2024
Portfolio company performance in FY2024 Total shareholder return 50% 44% 33% 25% 16% 17% 19% 21% 9% 2% 0% -3% -2% -2% -11% -25% -18% -13% -24% -50% Vulcan Steel a2 Milk EBOS Summerset Auckland Airport Freightways F&P Healthcare Mainfreight Port Of Tauranga Contact Energy Infratil Vista Healthcare Me
Slide 21: Portfolio management: FY2024 and FY2025 to date
Portfolio management: FY2024 and FY2025 to date Target weight changes (net) Smaller Larger
Slide 22: Acyclical growth drove performance
Acyclical growth drove performance Strong demand led capacity growth New product suite driving recurring revenue growth 2000 MW $400m 300+ 1500 MW $300m Development pipeline Capacity under construction $200m 175 Data Centre capacity (built) 1000 MW 118 126 $100m 500 MW - 2022 2023 2025 Post 0 MW (ac
Slide 23: Short-term dynamics create opportunity
Short-term dynamics create opportunity Underlying business and growth remains strong despite contract loss $1.80 $1.60 c12% earnings per share growth (per year) $1.40 FY19-FY24 $1.20 c8% per year ex CW contract $1.00 $0.80 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24* Source: Bloomberg, Fisher Funds; Not
Slide 24: 3. 20 years of the Kingfish approach
2. 20 years of the Kingfish approach
Slide 25: A long-term quality growth mentality
A long-term quality growth mentality Benefiting from backing quality growth companies… … but adapting as required (2004 +) (2011 +) (2004 +) (2012 +) (2009 +) (2015 +) (2010 +) (2015 +)
Slide 26: ... and the results are in
… and the results are in 12% 10.1% 10% 8.0% 8% 6.6% 6% 4.2% 4% 2% 0% Last 5 years (p.a.) 20 years since inception (p.a.) FY20-FY24 FY05-FY24 Kingfish (Adj. NAV Return) S&P/NZX 50
Slide 27: 4. Outlook
3. Outlook
Slide 28: FY2025 first 4 months performance
FY2025 first 4 months performance (to 31 July 2024) +6% 5.6% +5% +4% +3% 2.5% +2% +1% Kingfish gross performance return S&P/NZX50G index
Slide 29: Outlook
Outlook • NZ economy remains subdued (especially consumer, cyclical) • RBNZ poised to cut interest rates from cyclical highs • Global economic growth despite geopolitical tensions • Ongoing focus on responsible investment considerations • Maintain consistent strategy: wide moats, long growth runways
Slide 30: General Questions from Shareholders
General Questions from Shareholders (not relating to resolutions)
Slide 31: Annual Meeting 2024 Resolutions
Annual Meeting 2024 Resolutions
Slide 32: 2024 Annual Meeting Resolutions
2024 Annual Meeting Resolutions • Introduce and propose • Discussion, questions • Lodge your vote per the digital portal
Slide 33: Matters of Business
Matters of Business • Annual Report • Resolutions: – Re-elect Carol Campbell – Re-elect David McClatchy – Auditor remuneration
Slide 34: Re-election of Carol Campbell
Resolution 1 Re-election of Carol Campbell To re-elect Carol Campbell as a Director of Kingfish Limited
Slide 35: Re-election of David McClatchy
Resolution 2 Re-election of David McClatchy To re-elect David McClatchy as a Director of Kingfish Limited
Slide 36: 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 37: 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 38: Thank you
Thank you