Chairmans Review Rob Challinor July 2007 Chairmans Review To 31 - PowerPoint PPT Presentation

Chairman’s Review Rob Challinor July 2007

Chairman’s Review To 31 March 2007: • Total surplus of $36.8 million after tax • Net Asset Value up 35% to $2.15 • Total assets of $138 million • NAV increase of 35% vs. 15% benchmark increase • Combined market value of shares and warrants 98% above the issue price • Fully imputed dividends paid: – June 2006 2.5cps August 2006 2.5cps

Chairman’s Review Update since balance date 30 June 2007 Net Asset Value (NAV) -7% -1% Diluted NAV NAV change versus -7% Benchmark +4% Share Price +4% Warrant Price +8% Dividends Paid 3.5cps Dividends Reinvested (value) 40%

Chairman’s Review Net Asset Value Mar 04 – Jun 07 2.30 2.10 1.90 1.70 1.50 1.30 1.10 0.90 0.70 0.50 D M J Jun-06 S u M M M e a S D S D e J J n r u e u e p c e e - a a a - - 0 n p n p - 0 r c r c r 0 0 - - - - 7 - - - - - 6 7 0 0 0 6 0 0 0 0 0 0 4 4 4 5 5 5 6 4 5

Share Price, Combined Share and Warrant Price performance Share & Warrant Price Share Price $2.20 $2.00 $1.80 $1.60 $1.40 $1.20 $1.00 $0.80 Mar-04 Sep-04 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07

Warrant Price Performance $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 Mar-04 Sep-04 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07

Diluted Net Asset Value NAV $ NAV per share Net Asset Value 30 June 2007 130.5m $2.00 Warrants exercisable 31 March 2008 47.1m - Diluted Net Asset Value 177.6m $1.58 Share Price 30 June 2007 - $1.56 Discount to Net Asset Value - 1.3%

Share Price Premium/(Discount) to Diluted NAV 30% 20% 10% 0% -10% -20% -30% Mar-04 Sep-04 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07

Share & Warrant Buybacks Number Cost ($) Share Buybacks Nov 2005 to 30 June 2007 2,982,000 3.2m Reissued – for Manager’s Performance Fees and 2,950,000 4.6m Dividend Reinvestments Balance held as Treasury Stock at 30 June 2007 32,000 $(1.3m) Warrants acquired and cancelled 6,086,000 1.8m Diluted Net Asset Value per Share - without warrant buyback $1.5670 - with warrant buyback $1.5812

Portfolio Investment Entity • What is it? – Legislation, commencing 1 October 2007, changes the way managed funds (including Listed Investment Companies) are taxed – Removes tax disadvantages to those investing in managed funds and leaves the investor in the same (or better) position whether they invest in equities directly or via a managed fund

Portfolio Investment Entity • Key Benefits to Kingfish: – Kingfish no longer be taxed on capital gains on sale of investments in Kingfish Nursery. – As a PIE, will be able to distribute capital gains tax free to shareholders. – Distributions to shareholders will be exempt income for income tax purposes. – The ability to simplify the legal and reporting structure of the Group which will result in lower costs.

Manager’s Report Carmel Fisher Fisher Funds July 2007

Agenda • Review of March 2007 year • Review since balance date • What’s new with our Kingfish companies • Outlook

The Year to March 2007 Highlights Lowlights • Identifying and investing in IPO • Increasingly challenging stars Rakon and Delegat’s environment for most of our companies • Delivery against expectations by core holdings RYM, MET, MFT • Closed discount between share price and NAV • Continued strong performance for third year • Impending tax changes • Future benefits of KiwiSaver

Contributors to NAV Growth Comvita, 0.7% Pumpkin Patch, 1.0% Kidicorp, 0.4% Delegats, 1.1% Michael Hill, 2.4% Freightways, 2.4% Ryman, 14.7% NZ Exchange, 5.5% Metlifecare, 6.7% Mainfreight, 10.8%

Since balance date Total Returns April 07 - 30 June 2007 50.0% 42.3% 40.0% 35.7% 30.0% 19.8% 16.2% 20.0% Share Price change 10.4% 10.0% 4.1% 1.4% -0.8% -11.9% -22.6% -9.7% 0.0% Software Sealegs NZ Exchange Metlifecare Michael Hill Rakon Mainfreight Ryman Freightways Delegats Pumpkin Patch -10.0% -20.0% -30.0% Stock

Since balance date Contribution per Stock 1 April 07 - 30 June 2007 2.5% 1.9% 2.0% 1.5% 0.9% 0.9% 1.0% 0.4% 0.4% 0.5% Contribution (%) 0.2% 0.2% -0.2% -2.2% -0.9% -0.4% 0.0% Metlifecare NZ Exchange Michael Hill Software Rakon Mainfreight Sealegs Ryman Delegats Freightways Pumpkin Patch -0.5% -1.0% -1.5% -2.0% -2.5% Stock

Kingfish Company Update • Good profit results from Ryman, Mainfreight, Rakon, NZX, but … • Negative news flow – Profit downgrade from Pumpkin Patch; – Lower than expected 2007 harvest for Delegat’s – Rakon and Delegat’s share prices reflecting currency concerns – Profit downgrade from Comvita • Takeover offers for Kidicorp and Software of Excellence • Entering the information “black hole” for three months (except Mainfreight & Ryman AGMs) • No new portfolio additions on immediate horizon • No exits expected either

Our thoughts • We firmly believe we own New Zealand’s best listed growth stocks • We are confident that the executives of our companies will make the right “macro” decisions • We believe it important to focus on our companies’ achievements rather than on the mood of the market • Our best “value-add” is our extensive company visit schedule, and relationships with corporate New Zealand

Our thoughts • The two main components of our investments success are the stock selection and portfolio composition • The PIE regime will be beneficial as we can more actively manage portfolio composition • Our stock selection processes have not and will not change • The regulatory and tax environment is positive for the market – we just need more companies!

Outlook • Currency will remain an issue • Execution of international expansions and growth strategies remains critical • Market dominance/competitive advantage/strong brands become more important in difficult environment • As always, our performance will be dictated by the performance of our underlying companies

Thank you Questions

Kingfish Proxy Summary Resolution For Against Discretionary Abstain Total 1. Re-elect Annabel 2,841,602 511 4,378,796 - 7,220,909 Cotton 2. Re-appointment 2,824,257 62,366 4,396,652 - 7,220,909 of PWC and fix auditors remuneration