Shareholders Friday 23 July 2010 Welcome Board of Directors Rob - - PowerPoint PPT Presentation

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Shareholders Friday 23 July 2010 Welcome Board of Directors Rob - - PowerPoint PPT Presentation

Feb 07, 2023 513 likes •864 views

6 th Annual Meeting of Shareholders Friday 23 July 2010 Welcome Board of Directors Rob Challinor - Chairman Carmel Fisher - Director Ian Hendry - Independent Director Annabel Cotton - Independent Director

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SLIDE 1

6th Annual Meeting of Shareholders

Friday 23 July 2010

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SLIDE 2

Welcome

Board of Directors

  • Rob Challinor - Chairman
  • Carmel Fisher - Director
  • Ian Hendry - Independent Director
  • Annabel Cotton - Independent Director

Corporate Manager

  • Nivedita Findlay
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SLIDE 3

Preliminary matters

  • Notice of meeting
  • Quorum
  • Proxies received
  • 2009 meeting minutes
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SLIDE 4

Presentation of Annual Result

Chairman’s Overview

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SLIDE 5

Highlights of Year

  • Net Asset Value increased 22%, or 32%

including dividends paid

  • Net operating surplus $25m
  • Share price lifted 28%
  • Quarterly dividends gaining support

(approx 11% yield on 31/3/10 price)

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SLIDE 6

Result for 2009/10

Cents per share

Net Asset Value: 31 March 2009 92.0 31 March 2010 112.0 Change in value 20.0 Add: Dividends paid Apr 2009 – Mar 2010 9.6 Change in value (+32%) 29.6 Surplus for the year $25.3m

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SLIDE 7

Update to 30 June 2010

Cents per share

Net Asset Value: 31 March 112.0 30 June 101.0 Reduction (11.0) Add: Dividend paid 18 June 2.0 Change in value (-8%) (9.0)

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SLIDE 8

NAV performance & dividends

  • 50%
  • 40%
  • 30%
  • 20%
  • 10%

0% 10% 20% 30% 40% 50%

Mar 05 Mar 06 Mar 07 Mar 08 Mar 09 Mar 10 Jun 10

Period ended % Return Change in NAV Dividend paid

(3 months)

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SLIDE 9

Performance

$0.60 $0.85 $1.10 $1.35 $1.60 $1.85 $2.10 $2.35 Mar 04 Sep 04 Mar 05 Sep 05 Mar 06 Sep 06 Mar 07 Sep 07 Mar 08 Sep 08 Mar 09 Sep 09 Mar 10

Gross NAV Share price Net NAV

*NAV with dividends paid assumed to be reinvested

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SLIDE 10

Share Price Discount to Net Asset Value

  • 35%
  • 30%
  • 25%
  • 20%
  • 15%
  • 10%
  • 5%

0% 5% 10% Mar 04 Sep 04 Mar 05 Sep 05 Mar 06 Sep 06 Mar 07 Sep 07 Mar 08 Sep 08 Mar 09 Sep 09 Mar 10

Undervalued Undervalued

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SLIDE 11

Dividend policy

  • New dividend policy in place now for 12 months
  • 4 payments made since Sep 09 – total 8.86 cents per

share

  • Calculated as 2% of average NAV per quarter.

Next payment due 24 September

  • Policy has generated an annual yield of approx.11%
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SLIDE 12

Relative Performance 31 March 2010

12 months Since Inception

(31 Mar 2004)

Kingfish NAV 32%* 39%** NZSX Small Cap Index (NZSCIG) 27% 34% NZSX Mid Cap Index (NZSEMCG) 26% 48% NZSX 50 Gross Index (NZ50G) 26% 26%

* includes 9.6 cps dividends paid assumed to be reinvested **includes 24.6 cps dividend paid assumed to be reinvested

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SLIDE 13

13

New Warrant Issue

  • 1 for 2 - record date 30 August 2010
  • Exercise price 95c
  • Quarterly exercise dates - expected final date 1

September 2012

  • Prospectus expected to be sent out mid-August
  • no action required by shareholders
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SLIDE 14

2010 Manager’s Report

Carmel Fisher

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SLIDE 15

Agenda

  • The NZ market
  • The Kingfish portfolio
  • Kingfish Limited
  • Outlook
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SLIDE 16

The NZ Market

90 95 100 105 110 115 120 125 130 135 140 Kingfish NZ50 Index

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SLIDE 17

The NZ Market

20 40 60 80 100 120 140 160 180 200 Kingfish NZ50 Index

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SLIDE 18

Since balance date

31 March 2010 21 July 2010 Divs % change Kingfish share price 0.91 0.90 0.0226 +1.4% Kingfish NAV 1.12 1.02 0.0226

  • 6.4%

NZ50 Gross Index 3,268 3,003

  • 8.1%

NZ Midcap Gross Index 7,844 7,262

  • 7.4%
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SLIDE 19

The Kingfish portfolio

Abano Healthcare Delegats Freightways Kathmandu Mainfreight Metlifecare Michael Hill NZX Opus International Pumpkin Patch Ryman Healthcare Tower Wakefield Health Waterman Comvita, Rakon

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SLIDE 20

Portfolio metrics

Kingfish NZ50 Index PE Ratio 11.4 13.8 Forecast earnings growth 16% 10% Discount to valuation 23% 22% Forecast net dividend yield 4.9% 5.6%

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SLIDE 21

2010 Portfolio Report Card

Contribution to Portfolio Return Share Price Performance Ryman Healthcare +8.9% +51% Mainfreight +8.8% +57% Pumpkin Patch +5.9% +124% Metlifecare +4.0% +42% Michael Hill +3.4% +58% NZX +2.3% +31%

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SLIDE 22

2010 Portfolio Report Card

Contribution to Portfolio Return Share Price Performance Wakefield Health

  • 0.7%
  • 14%

Rakon

  • 0.4%
  • 25%
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SLIDE 23

Strength of Business

S

Track Record

T

Earnings History

E

Earnings Growth

E

Price

P

People

P

STEEPP Analysis

  • Kathmandu and Tower scored well enough to get into the portfolio
  • Comvita and Rakon consistently scored poorly, so were sold
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SLIDE 24

STEEPP Analysis

Company Catalyst for STEEPP Review Contacts* Abano Sale of Bay Audiology NZ Capital restructure 6 Delegat’s Sauvignon Blanc glut Earnings forecast downgrade Currency 7 Freightways Partial de-linking from economy 4 Metlifecare New management team & board 6 Mainfreight Earnings momentum Staff bonuses USA underperforming 3 Michael Hill USA losses Further expansion in Australia 2 Opus Consulting Offshore losses Staff reductions 4

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SLIDE 25

Company Catalyst for STEEPP Review Contacts* NZX New trading platform Bedding down acquisitions Staffing issues 15 Pumpkin Patch USA closures New brand initiative 5 Ryman Healthcare New villages Slowdown in housing market 4 Tower Rights issue Bolt-on acquisitions 4 Wakefield ACC crackdown on surgery approvals DHB workloads 7 Waterman Sale of Express Logistics Change in capital structure 3

STEEPP Analysis

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SLIDE 26

Kingfish as an investment

  • A dynamic investor in NZ listed growth

companies

  • Objective to achieve capital growth and a

growing stream of dividends

  • Strong track record of success
  • Diversified portfolio managed on your behalf by

experienced investment professionals

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SLIDE 27

NZ50 stocks gross returns

12 months to June 2010

Source: IRESS, Forsyth Barr

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SLIDE 28

NZ50 stocks dividend yield

12 months to June 2010

Source: IRESS

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SLIDE 29

Strategy

  • More of the same

“Much success can be attributed to

  • inactivity. Most investors cannot resist

the temptation to constantly buy and sell”

Warren Buffett

  • Utilise cash and increase liquidity via

larger cap stocks

  • Adhere to the STEEPP framework

which has held us in good stead

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SLIDE 30

Outlook

  • Choppy markets to continue, reflecting

tentative global economic recovery

  • Competitive moats will ensure profit

growth even in low growth environment

  • Portfolio is both defensive and leveraged

to cyclical upturn

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SLIDE 31

Election of Directors

  • To re-elect Annabel Cotton as a Director
  • To re-elect Carmel Fisher as a Director
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SLIDE 32

32

Auditors Appointment & Remuneration

  • PricewaterhouseCoopers continue in office as the

Company’s Auditors

  • Resolution required:

that Directors be empowered to fix the Auditors’ remuneration for the year ending 31 March 2011

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SLIDE 33

33

General Business Questions

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SLIDE 34

Thank you