Kingfish Limited — AGM Information 2017

Jul 28, 2017

Kingfish Limited Annual Meeting of Shareholders 28 July 2017

Introduction

Board of Directors

– Alistair Ryan (Chair)

– Carmel Fisher

– Carol Campbell

– Andy Coupe Senior Portfolio Manager – Sam Dickie Senior Investment Analyst – Zoie Regan Investment Analyst – Matt Peek

Agenda

• Preliminary matters

– Annual Report and minutes

• Class financial advice

• Chair’s Update

• Manager’s Review

• Q&A

• Annual Meeting Resolutions

Chair’s Overview Presentation of Annual Result

Investment Objectives

• A high real rate of return

– income and capital growth

• within acceptable risk parameters

• Access to a diversified portfolio

– New Zealand quality, growth stocks

• single tax-efficient vehicle

Highlights of 2017

• Net profit $22.4m (2016: $22.5m)

Use of Shareholders’ Funds Year ended 31 March 2017 ($m)

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235
230
225
17
220
22
6
215
220
210
205
208
200
195
Opening Net Dividends Dividends Closing
NAV Profits Paid Reinvested NAV
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Highlights of 2017

• Net profit $22.4m (2016: $22.5m)

• Total Shareholder Return* +8.1% (2016:

• +3.3%)

*Assumes all dividends are reinvested and all warrants are exercised, but excludes imputation credits

Total Shareholder Return

1 ear to 31 March 2017 y

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10%
8%
+1.0%
+0.1%
6%
4% +8.1%
+8.5%
2%
0%
-1.5%
-2%
Share Price Dividends DRP Warrants TSR
Change (1 for 4)
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Highlights of 2017

• Net profit $22.4m (2016: $22.5m)

• Total Shareholder Return* +8.1% (2016:

• +3.3%)

• 11.16 cents per share paid in dividends (2016: 10.60 cents per share)

*Assumes all dividends are reinvested and all warrants are exercised, but excludes imputation credits

Highlights of 2017

• Net profit $22.4m (2016: $22.5m)

• Total Shareholder Return* +8.1% (2016:

+3.3%)

• 11.16 cents per share paid in dividends (2016: 10.60 cents per share)

• Dividend Return 8.5% (2016: 7.7%)

*Assumes all dividends are reinvested and all warrants are exercised, but excludes imputation credits

Highlights of 2017

• Net profit $22.4m (2016: $22.5m)

• Total Shareholder Return* +8.1% (2016: +3.3%)

• 11.16 cents per share paid in dividends (2016:

• 10.60 cents per share)

• Dividend Return 8.5% (2016: 7.7%)

• NAV per share $1.40 (2016: $1.37)

*Assumes all dividends are reinvested and all warrants are exercised, but excludes imputation credits

Highlights of 2017

• Net profit $22.4m (2016: $22.5m)

• Total Shareholder Return* +8.1% (2016: +3.3%)

• 11.16 cents per share paid in dividends (2016: 10.60

• cents per share)

• Dividend Return 8.5% (2016: 7.7%)

• NAV per share $1.40 (2016: $1.37)

• Adjusted NAV return 10.6% (2016: 13.0%)

*Assumes all dividends are reinvested and all warrants are exercised, but excludes imputation credits

Manager’s Performance

• Outperformance by the Manager

For the year to 5 years 31 March 2017 (annualised) Gross 13.3% 18.1% Performance* S&P/NZX50G 6.6% 15.4%

*Gross of fees and tax and adjusting for capital management initiatives

Warrants

• Successful warrant issue

• Exercise date: 5 May 2017

• Exercise price: $1.21 per warrant

• 76% of warrants converted into shares

• $35.2m to invest in the Kingfish portfolio

Manager’s Review Sam Dickie

Its great to be home!

• NZ investment landscape in 2017 has changed for the better

• Very different equity markets

• High quality NZ companies

• Successfully expanding abroad

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A portfolio built on solid foundations

• Over 100 company meetings in 4 months

• Quality businesses with strong management teams

• Generally the portfolio was in great shape – credit to Carmel, Murray and the team

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Strong performance in FY2017

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15%
13.3%
10%
6.6%
5%
0%
KFL Gross return S&P/NZX50G Gross return
Return
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Strong gross performance, comfortably outperforming the S&P/NZX50G

Key contributors to our performance

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5
4
3
2
1
0
-1
-2
Key contributors (%)
Mainfreight Freightways Michael Hill Summerset Port of Tauranga Metro Perf. Glass Infratil Tegel
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What worked in FY2017

~~TSR~~

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47%

25% 63%

18%

What didn’t work in FY2017

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TSR
-16%
-5%
-18%
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Restaurant Brands – upweighting

• Excellent performance in New Zealand operations (especially KFC)

• Best in class franchisee globally

• Taking that expertise outside NZ

• Offshore acquisitions provide new growth opportunities

FY2018 performance to date 1 A ril to 26 Jul 2017 p y

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8%
7.1% 7.1%
7%
6%
5%
4%
3%
2%
1%
0%
KFL Gross return S&P/NZX50G Gross return
Return
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Strong returns in FY18 YTD

Outlook

• Opportunities

• Quality growth companies with quality management

• Key portfolio holdings are well prepared for the future

• Supported by solid growth outlook

• While valuations remain ‘full’ in absolute terms, they look very reasonable relative to global markets

• Risks

• Uncertainty from New Zealand election in September

• Slowly increasing interest rate environment

Manager’s summary

• Solid absolute and relative performance

• 8 consecutive years of positive performance

• Positive about our investments

• Constantly looking for new opportunities

• Active management of existing positions also drives performance

General Questions from Shareholders (not relating to resolutions)

Annual Meeting 2017 resolutions

2017 Annual Meeting Resolutions

• Introduce and propose

• Discussion, questions

• Enter your vote on voting paper and lodge your voting paper at end of resolutions

Matters of Business

• Annual Report

• Resolutions:

– Re-elect Andy Coupe

• Auditor remuneration

– Directors’ remuneration

Proxy Count

Resolution	For	Against	Discretionary	Total	Abstain
Re-elect Andy Coupe	16,264,134	62,852	1,961,250	18,288,236	118,858
Auditor Remuneration	16,412,668	20,586	1,919,465	18,352,719	54,375
Directors’ Remuneration	6,132,508	2,532,133	2,038,127	10,702,768	7,704,326
Proxy votes to date: 18.3 million

Resolution 1 Re-election of Andy Coupe

To re-elect Andy Coupe as a director of the company

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Resolution 2 Auditor’s Remuneration

To authorise the Board of Directors to fix the remuneration of the auditor for the ensuing year

Resolution 3 Directors’ Remuneration

To authorise that the maximum aggregate remuneration able to be paid to all directors (in their capacity as directors) of the company be increased by $20,000 per annum from $105,000 to $125,000 (plus GST if any)

Conclusion

• Complete and sign voting paper

• Voting papers in the voting boxes

• If you need a voting paper please see Computershare

• Results to NZX

Thank you