Challenging year for Barramundi

Barramundi Limited results announcement


Results for announcement to the market
Name of issuer Barramundi Limited
Reporting Period 12 months to 30 June 2022
Previous Reporting Period 12 months to 30 June 2021
Currency NZ$
Amount (000s) Percentage change
(Loss)/Revenue from
continuing operations
(32,631) (157%)
Total (Loss)/Revenue (32,631) (157%)
Net (loss)/profit from
continuing operations
(34,645) (166%)
Total net (loss)/profit (34,645) (166%)
Interim/Final Dividend
Amount per Quoted Equity
Security
$NZ 1.36 cents per share
Imputed amount per Quoted
Equity Security
$NZ 0.00012630
Record Date 8 September 2022
Dividend Payment Date 23 September 2022
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.64 $0.87
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
The financial statements attached to this report have been audited by
PricewaterhouseCoopers and are not subject to a qualification. A copy
of the auditor’s report applicable to the financial statements is
attached to this announcement.
Authority for this announcement
Name of person

authorised
to make this announcement
W.A. Burns
Contact person for this
announcement
W.A. Burns
Contact phone number (09) 4840352
Contact email address enquire@barramundi.co.nz
Date of release through MAP

22 August 2022
Audited financial statements accompany this announcement.

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For immediate release:

22 August 2022

Challenging year for Barramundi

Highlights
• Net loss after tax for the year ended 30 June 2022 ($34.6m)
• Total Shareholder return
1
- 23.5%
• Dividend return +7.1%
• Adjusted NAV return
2
-16.2%

Barramundi Limited (NZX: BRM) today announced a net loss for the 12 months to 30 June 2022 of
$34.6m, following last year’s record net profit of $52.3m. The second six months of the 2022
financial year more than reversed a first half profit of $14.9m.

Key elements of the FY22 result include losses on investment of $36.4m, dividend, interest and other
income of $3.8m, less operating expenses, fees and tax of $2.0m.

The challenges endured by listed equity markets since the beginning of the 2022 calendar year will
come as no surprise to shareholders and the Barramundi portfolio has not been immune to those
pressures, recording a significant loss for the second six months of FY22, $49.5m.
Pressures from post-Covid inflation, supply chain disruption, coupled with international uncertainty
following Russian’s invasion of Ukraine have combined to materially and negatively impact the value
of the Barramundi portfolio. In addition, Australian energy, commodity and defensive stocks have
outperformed growth stocks. These stocks are not Barramundi’s natural portfolio companies, as
they often lack a durable competitive advantage and/or have weaker long-term growth prospects.
The portfolio’s net after fees and expenses Adjusted NAV of -16.2% (-15.3% gross performance
3
before fees and expenses) was well below the S&P/ASX 200 Index (hedged 70% to NZ$) benchmark
4

which was down -5.3% for the 12-month period.
Total shareholder return (TSR) for the 12-month period was in negative territory at -23.5%. TSR
includes share price movement, dividends paid, and the impact of warrants.
The lower return delivered by the portfolio activated the management fee rebate (the fulcrum fee
5
)
which reduced the management fee for the year from 1.25% to 0.75%. The fulcrum fee mechanism
is a particular feature of the Fisher-managed listed equity funds which reduces the management fee
when actual returns fall below the S&P/NZX Bank Bill 90-day rate.
In accordance with Barramundi’s quarterly distribution policy (2.0% of average NAV per quarter), the
company paid a total of 6.68 cents per share to shareholders during the year ended 30 June 2022.
On 22 August 2022, the board declared a dividend of 1.36 cents per share, payable on 23 September
2022 with a record date of 8 September.
Chair Andy Coupe said “Barramundi has experienced a challenging year with difficult and uncertain
market conditions dominating the second half, influenced by global uncertainty about the ongoing
impact of the pandemic and government response, inflationary concerns (both Australian and

international), rising interest rates, and extreme political tension on the international front following
the Russian invasion of Ukraine. FY22 was a year of two halves, with a first half profit (+$14.9m)
followed by a tough second half (-$49.5m), producing a net loss of $34.6m for the full year.
The company is encouraged that, despite the difficult environment for listed equities, the majority of
the companies within the Barramundi portfolio are delivering solid earnings. This underlying
business performance allows us to have confidence about the investment strategy and the medium-
term resilience of the portfolio.”
Senior Portfolio Manager Robbie Urquhart added “The difficult global backdrop has made for a
tough year for Barramundi. Our portfolio companies are navigating this period well operationally.
Encouragingly, we’ve seen lots of evidence that they are continuing to reinvest profits in long-term
growth initiatives in their businesses. Complementing this we’ve seen CSL, Carsales and AUB Group –
longstanding holdings of Barramundi – complete acquisitions through this difficult period. They have
not been swayed by this challenging backdrop. Tough periods such as these tend to present patient
investors with great long-term investment opportunities.”

For further information, please contact:
Wayne Burns
Corporate Manager
Barramundi Limited
Tel: (09) 484 0352

1
Total Shareholder return- the return combines the share price performance, the warrant price performance, the net value
of converting any warrants into shares, and the dividends paid to shareholders. It assumes all dividends are reinvested in
the company’s dividend reinvestment plan, and that shareholders exercise their warrants, (if they were in the money), at
warrant expiry date.
2
Adjusted NAV (net asset value) return- the underlying performance of the investment portfolio, adjusted for capital
management initiatives (dividends, buybacks & warrants), and after expenses, fees & tax.
3
Gross performance return – The Manager’s portfolio performance in terms of stock selection & currency hedging before
expenses, fees and tax.
4
S&P / ASX 200 index (hedged 70% to NZ$).
5
In accordance with the Management Agreement, the management fee rate has reduced from 1.25%pa to 0.75%pa for the
year, (i.e. a 50 basis point reduction), because the gross performance of Barramundi (as calculated for the fulcrum fee
rebate) was 19.7 percentage points below the S&P/NZX Bank Bill 90 day index rate for the year of 0.8%.

The total shareholder return, adjusted NAV return and gross performance return methodologies are described in the Barramundi Non-
GAAP Financial Information Policy. A copy of the policy is available at http://www.barramundi.co.nz/about-barramundi/barramundi-
policies/

About Barramundi
Barramundi is a listed investment company that invests in quality, growing Australian companies. The Barramundi portfolio is managed by
Fisher Funds, a specialist fund manager with a track record of successfully investing in growth company shares. The aim of Barramundi is
to offer investors competitive returns through capital growth and dividends, and access to a diversified portfolio of investments through a
single, tax-efficient investment vehicle. Barramundi listed on NZX Main Board on 26 October 2006 and may invest in companies listed on
the Australian Securities Exchange (with a primary focus on those outside the top 20 at the time of investment) or unlisted companies.

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PricewaterhouseCoopers, 15 Customs Street West, Private Bag 92162, Auckland 1142, New Zealand
T: +64 9 355 8000, F: +64 9 355 8001, pwc.co.nz


Independent auditor’s report
To the shareholders of Barramundi Limited
Our opinion
In our opinion, the accompanying financial statements of Barramundi Limited (the Company) present
fairly, in all material respects, the financial position of the Company as at 30 June 2022, its financial
performance and its cash flows for the year then ended in accordance with New Zealand Equivalents
to International Financial Reporting Standards (NZ IFRS) and International Financial Reporting
Standards (IFRS).
What we have audited
The financial statements comprise:
• the statement of financial position as at 30 June 2022;
• the statement of comprehensive income for the year then ended;
• the statement of changes in equity for the year then ended;
• the statement of cash flows for the year then ended; and
• the notes to the financial statements, which include significant accounting policies and other
explanatory information.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs
(NZ)) and International Standards on Auditing (ISAs). Our responsibilities under those standards are
further described in the Auditor’s responsibilities for the audit of the financial statements section of our
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Independence
We are independent of the Company in accordance with Professional and Ethical Standard 1
International Code of Ethics for Assurance Practitioners (including International Independence
Standards) (New Zealand) (PES 1) issued by the New Zealand Auditing and Assurance Standards
Board and the International Code of Ethics for Professional Accountants (including International
Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA
Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements.
Other than in our capacity as auditor we have no relationship with, or interests in, the Company.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial statements of the current year. Given the nature of the Company, we have
one key audit matter: Valuation and existence of Australian listed equity investments. This matter was
addressed in the context of our audit of the financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on the matter.

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Description of the key audit matter How our audit addressed the key audit matter
Valuation and existence of Australian listed
equity investments
Australian listed equity investments (the
investments) are valued at $166 million and
represent 96% of total assets.
Further disclosures on the investments are
included in note 2 to the financial statements.
This was an area of focus for our audit and an
area where a significant proportion of audit
effort was directed.
As at 30 June 2022, all investments were in
companies that were listed on the ASX and
were actively traded with readily available,
quoted market prices. The market prices were
quoted in Australian dollars, and were then
translated to New Zealand dollars using the
exchange rate at 30 June 2022.
All investments are held by Trustees Executors
Limited (the Custodian) on behalf of the
Company. Trustees Executors Limited also
provides administration services for the
Company.
























Our audit procedures included updating our understanding of
the business processes employed by the Company for
accounting for, and valuing, its investment portfolio.
We obtained confirmation from the Custodian that the
Company was the recorded owner of all the recorded
investments.
We obtained copies of and assessed Trustees Executors
Limited’s Internal Controls Reports for Custody, Investment
Accounting and Registry services for the period from 1 April
2021 to 31 March 2022. Trustees Executors Limited has
confirmed that there has been no material change to the
control environment in the period from 1 April 2022 to 30
June 2022.
We agreed the price for all investments held at 30 June 2022
and the exchange rate at which they have been converted
from Australian dollars to New Zealand dollars to
independent third-party pricing sources.


Our audit approach

Overview
Materiality Overall materiality: $853,000, which represents approximately 0.5%
of net assets.
We chose net assets as the benchmark because, in our view, the
objective of the Company is to provide investors with a total return on
its assets, taking account of both capital and income returns.
Key audit matters
As reported above, we have one key audit matter, being: Valuation
and existence of Australian listed equity investments.

As part of designing our audit, we determined materiality and assessed the risks of material
misstatement in the financial statements. In particular, we considered where management made
subjective judgements; for example, in respect of significant accounting estimates that involved
making assumptions and considering future events that are inherently uncertain. As in all of our audits,
we also addressed the risk of management override of internal controls, including among other
matters, consideration of whether there was evidence of bias that represented a risk of material
misstatement due to fraud.
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion
on the financial statements as a whole, taking into account the structure of the Company, the
accounting processes and controls, and the industry in which the Company operates.

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Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain
reasonable assurance about whether the financial statements are free from material misstatement.
Misstatements may arise due to fraud or error. They are considered material if, individually or in
aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of the financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality,
including the overall materiality for the financial statements as a whole as set out above. These,
together with qualitative considerations, helped us to determine the scope of our audit, the nature,
timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually
and in aggregate, on the financial statements as a whole.
Other information
The Directors are responsible for the other information. The other information comprises the
information included in the Annual report, but does not include the financial statements and our
auditor's report thereon. The Annual report is expected to be made available to us after the date of this
auditor's report.
Our opinion on the financial statements does not cover the other information and we will not express
any form of audit opinion or assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially
misstated.
When we read the other information not yet received, if we conclude that there is a material
misstatement therein, we are required to communicate the matter to the Directors and use our
professional judgement to determine the appropriate action to take.
Responsibilities of the Directors for the financial statements
The Directors are responsible, on behalf of the Company, for the preparation and fair presentation of
the financial statements in accordance with NZ IFRS and IFRS, and for such internal control as the
Directors determine is necessary to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Company’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the Directors either intend to liquidate the
Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements, as a whole,
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with ISAs (NZ) and ISAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located at the
External Reporting Board’s website at:
https://www.xrb.govt.nz/assurance-standards/auditors-responsibilities/audit-report-2/
This description forms part of our auditor’s report.

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Who we report to
This report is made solely to the Company’s shareholders, as a body. Our audit work has been
undertaken so that we might state those matters which we are required to state to them in an auditor’s
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company and the Company’s shareholders, as a body, for our
audit work, for this report or for the opinions we have formed.
The engagement partner on the audit resulting in this independent auditor’s report is Philip Taylor.
For and on behalf of:
Chartered Accountants
22 Augus
t 2022
Auckland