BRM – September 2022 monthly update

1
A WORD FROM THE MANAGER
In August, Barramundi’s gross performance return was up 0.2%
and the adjusted NAV return was up 0.1%. This compares to the
S&P/ASX200 Index (70% hedged into NZ$) which was up 1.4%.
Share prices in August were strongly influenced by the large
number of financial results announced by companies for
the six or twelve months ended 30 June 2022. Overall, our
portfolio companies are performing well in a tricky global
business environment. The earnings outlook for companies was
understandably cautious given this backdrop. Encouragingly, there
are some signs that the worst of the supply chain disruption may
be abating.
Portfolio News
Wisetech’s (+17% in $A) financial result exceeded market
expectations and its earnings outlook for FY23 was also ahead of
analyst expectations. Demand for its software continues to grow
as its global freight forwarder customers are increasingly seeing
the benefits that this brings to the efficiency with which they can
run their own businesses. This increased demand has underpinned
strong revenue growth for Wisetech. The company has also
successfully found ways to sustainably improve its efficiency and
reduce its cost base more than expected by the market over the
past year. This has resulted in profit growth strongly exceeding
revenue growth and is a key reason for Wisetech’s strong share
price performance.
AUB Group (+15%) reported a 22% increase in underlying NPAT
for its June 2022 year. This was at the top end of its guidance
range. The result was underpinned by a 9% rise in Australian
insurance premium rates for the year. There was also ample
evidence that the strategic initiatives executed by management
over the last couple of years are bearing fruit in growing the
business and improving margins. On the back of continued strong
premium rate rises in Australia, the company guided 16-23%
growth in underlying NPAT for the coming year. This is before
including its major UK-based acquisition, Tysers, which is yet to be
completed.
PWR Holdings (+14%) released another set of excellent results
in August. Demand for PWR’s innovative emerging tech products
in non-auto and auto-markets continues to strengthen. While all
of its key divisions reported strong revenue growth, its Original
Equipment Division was the standout. During the financial year
PWR began supplying cooling solutions to some of the most
anticipated high-performance limited run vehicle releases, including
the Aston Martin Valkyrie, Mercedes-AMG One and the Rimac.
oOH!Media’s (+12%) share price rose as its result included
further evidence of continuing post-COVID improvement in
audiences for out-of-home advertising. Accordingly, oOh!media’s
underlying profit for its June 2022 half year jumped to $20.4m
from $2.2m for the same period in 2021. On a like-for-like basis,
we estimate that revenue for the 2022 half was only about 5%
below the June 2019 half, which predates COVID. No guidance
was provided for the full 2022 result, but we expect further
recovery in the second half. September quarter revenues to date
are 37% higher than last year (a soft comparable period given
Omicron restrictions) and are at 98% of pre-COVID levels.
For the financial year ending June 2022, Brambles (+8%)
reported an 8% (12% with constant currency) increase in
underlying profitability. Improvements in Brambles contract
terms over recent years are helping it to offset the impacts of
significant lumber and transport cost inflation. The supply of
pallets is currently very tight, and demand is high. Conditions
are ripe for Brambles to raise prices as contracts roll over. It did
this successfully last year and will continue to do so over the
year ahead. Brambles has guided to revenue growth of 7-10%
(constant currency) for its 2023 year.
The market reacted negatively to the lack of new customer wins
announced by Fineos’ (-26%) at its result. This overshadowed
very good subscription revenues growth of +34% in the
June 2022 year. And, while guidance for further double-digit
subscription revenue growth in the June 2023 year was positive,
management’s commentary suggests new customer wins will not
contribute materially to this. Growth for the next year will largely
come from further product sales to existing customers.
Credit Corp’s share price slumped 15% in August. Although
the company reported a 9% rise in underlying profit for its June
2022 year, the market was underwhelmed by the lack of growth
in its earnings guidance for 2023. This is due to the volume of
defaulted debt being sold by Australian lenders remaining well
below historical norms after extended COVID-related forbearance.
Growth in earnings from its US purchased debt book, which
jumped significantly in 2022, will not fully offset this. During
the month, Credit Corp also announced some historic customer
remediation initiatives, linked to an administrative error, and
a query from the regulator about a historical debt collection
practice. The total remediation is expected to cost Credit Corp
approximately $5m.
1
Share Price Premium to NAV (including warrant price on a pro-rated basis and using the net asset value per share, after expenses, fees and tax, to four decimal places).
MONTHLY UPDATE
September 2022
Warrant Price
$
0.04
$
0.84
Share Price
PREMIUM
1
17.4
%

as at 31 August 2022
BRM NAV
$
0.72

SECTOR SPLIT
as at 31 August 2022
KEY DETAILS
as at 31 August 2022
FUND TYPE
Listed Investment Company
INVESTS IN
Growing Australian companies
LISTING DATE
26 October 2006
FINANCIAL YEAR END
30 June
TYPICAL PORTFOLIO SIZE
20-35 stocks
INVESTMENT CRITERIA
Long-term growth
PERFORMANCE OBJECTIVE
Long-term growth of capital and
dividends
TAX STATUS
Portfolio Investment Entity (PIE)
MANAGER
Fisher Funds Management Limited
MANAGEMENT FEE RATE
1.25% of gross asset value
(reduced by 0.10% for every 1%
of underperformance relative to
the change in the NZ 90 Day Bank
Bill Index with a floor of 0.75%)
PERFORMANCE FEE
HURDLE
Changes in the NZ 90 Day Bank
Bill Index + 7%
PERFORMANCE FEE
10% of returns in excess of
benchmark and high water mark
HIGH WATER MARK
$0.76
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
268m
MARKET CAPITALISATION
$226m
GEARING
None (maximum permitted 20%
of gross asset value)
3
%
19
%
22
%

INDUSTRIALS
18
%
COMMUNICATION
SERVICES

HEALTH CARE
25
%
2
%
2
%

FINANCIALS
CASH
CONSUMER
STAPLES
4
%
Nanosonics (-13%) had pre-announced its revenue for the
financial year in July. Despite the share price reaction, we view
the result and commentary as supportive of our investment
thesis. While Omicron negatively impacted hospital access
in the early part of 2022, Trophon sales still recovered to the
highest level since the six months to June 2019. During the year
Nanosonics successfully transitioned to a largely direct sales
model in its key North American market. The deeper customer
relationship will allow Nanosonics to better service its hospital
customers. It will do this by selling more Trophon units to existing
hospital customers, and by accelerating the upgrades of the older
Trophons in hospitals, building on this source of sales momentum
already evident in 2022.
Domino’s (-11%) June 2021 year benefited from strong delivery
sales due to COVID lockdowns. Consequently, with COVID
restrictions easing over its June 2022 year, the company struggled
to match its 2021 performance. This weighed on its share price.
The company will cycle the last of its peak COVID trading periods
this September quarter. It has indicated that same store sales
growth for the coming year will meet its medium-term target
of +3-6%. Improving same store sales and ongoing actions to
Robbie Urquhart
Senior Portfolio Manager
Fisher Funds Management Limited
address cost pressures (price rises, menu tweaks, ANZ delivery
surcharge, operational efficiencies) should see Domino’s return
to earnings growth this year. The company also announced the
acquisition of the Domino’s operations in Malaysia, Singapore
and Cambodia. This comprises 287 stores, with the potential
for this to grow to 600 by 2033. Including this acquisition, the
company is now targeting 7,250 stores in 10 years’ time, double
the current level.
Portfolio Changes
Following a robust trading update at Macquarie’s AGM in late
July, with evidence that it is sensibly deploying capital in this
volatile environment, we increased our position in the company.
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INFORMATION
TECHNOLOGY
5
%
CONSUMER
DISCRETIONARY
MATERIALS

AUGUST’S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO
during the month in Australian dollar terms
WISETECH
+17
%
AUB GROUP
+15
%
PWR HOLDINGS
+14
%
FINEOS CORP GROUP
-26%
CREDIT CORP GROUP
- 15
%
5 LARGEST PORTFOLIO POSITIONS as at 31 August 2022
WISETECH
7
%
CSL LIMITED
10
%
CARSALES.COM
7
%
AUB GROUP
5
%
CBA
5
%
The remaining portfolio is made up of another 22 stocks and cash.
Oct
2006
Oct
2007
Oct
2008
Oct
2009
Oct
2010
Oct
2011
Oct
2012
Oct
2013
Oct
2015
Oct
2016
Oct
2014
Share Price/Total Shareholder Return
Share PriceTotal Shareholder Return
$
0.00
$
0.50
$
1.00
$
1.50
$
2.00
$
2.50
$
3.00
$
3.50
Oct
2017
Oct
2018
Oct
2019
Oct
2020
Oct
2021
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+1.4%(4.7%)(14.6%)+22.3%+19.3%
Adjusted NAV Return+0.1%+5.0%(11.8%)+11.0%+12.7%
Portfolio Performance
Gross Performance Return+0.2%+5.2%(11.6%)+13.5%+15.5%
Benchmark Index^+1.4%(1.8%)(0.8%)+6.4%+8.5%
PERFORMANCE to 31 August 2022
^Benchmark Index: S&P/ASX 200 Index (hedged 70% to NZD)
Non–GAAP Financial Information
Barramundi uses non–GAAP measures, including adjusted net asset value, adjusted NAV return, gross performance return and total shareholder return. The rationale for using such non–GAAP measures is as follows:
»adjusted net asset value – the underlying value of the investment portfolio adjusted for dividends (and other capital management initiatives) and after expenses, fees and tax,
»adjusted NAV return – the percentage change in the adjusted NAV,
»gross performance return – the Manager’s portfolio performance in terms of stock selection and currency hedging before expenses, fees and tax, and
»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
All references to adjusted net asset value, adjusted NAV return, gross performance return and total shareholder return in this monthly update are to such non–GAAP measures. The calculations applied to non–GAAP
measures are described in the Barramundi Non–GAAP Financial Information Policy. A copy of the policy is available at https://barramundi.co.nz/about-barramundi/barramundi-policies
3
TOTAL SHAREHOLDER RETURN to 31 August 2022

Disclaimer: The information in this update has been prepared as at the date noted on the front page. The information has been prepared as a general summary of the matters covered only, and it is by
necessity brief. The information and opinions are based upon sources which are believed to be reliable, but Barramundi Limited and its officers and directors make no representation as to its accuracy or
completeness. The update is not intended to constitute professional or investment advice and should not be relied upon in making any investment decisions. Professional financial advice from a financial
adviser should be taken before making an investment. To the extent that the update contains data relating to the historical performance of Barramundi Limited or its portfolio companies, please note that
fund performance can and will vary and that future results may have no correlation with results historically achieved.
Barramundi Limited
Private Bag 93502, Takapuna, Auckland 0740
Phone: +64 9 489 7074 | Fax: +64 9 489 7139
Email: enquire@barramundi.co.nz | www.barramundi.co.nz
4
Computershare Investor Services Limited
Private Bag 92119, Auckland 1142
Phone: +64 9 488 8777 | Fax: +64 9 488 8787
Email: enquiry@computershare.co.nz | www.computershare.com/nz
ABOUT BARRAMUNDI
Barramundi is an investment
company listed on the New Zealand
Stock Exchange. The company
gives shareholders an opportunity
to invest in a diversified portfolio
of between 20 and 35 quality
growing Australian companies
through a single, professionally
managed investment. The aim of
Barramundi is to offer investors
competitive returns through capital
growth and dividends.
CAPITAL MANAGEMENT STRATEGIES
Regular Dividends
»Quarterly distribution policy introduced in
August 2009
»Under this policy, 2% of average NAV is targeted to be
paid to shareholders quarterly
»Dividends paid by Barramundi may include dividends
received, interest income, investment gains and/or
return of capital
»Shareholders who prefer to have increased capital rather
than a regular income stream have the opportunity to
participate in the company’s dividend reinvestment plan
(DRP)
»Shares issued to DRP participants are at a 3% discount
to market price
»Barramundi became a portfolio investment entity on
1 October 2007. As a result, dividends paid to New
Zealand tax resident shareholders have not been subject
to further tax
Share Buyback Programme
»Barramundi has a buyback programme in place allowing
it (if it elects to do so) to acquire its shares on market
»Shares bought back by the company are held as treasury
stock
»Shares held as treasury stock are available to be re-
issued for the dividend reinvestment plan
MANAGEMENT
The Manager has authority delegated
to it from the Board to invest according
to the Management Agreement and
other written policies. Barramundi’s
portfolio is managed by Fisher Funds
Management Limited. Robbie Urquhart
(Senior Portfolio Manager), Terry Tolich
and Delano Gallagher (Senior Investment
Analysts) have prime responsibility for
managing the Barramundi portfolio.
Together they have significant combined
experience and are very capable of
researching and investing in the quality
Australian companies that Barramundi
targets. Fisher Funds is based in
Takapuna, Auckland.
BOARD
The Board of Barramundi
comprises independent
directors Andy Coupe (Chair),
Carol Campbell, David
McClatchy and Fiona Oliver.
Warrants
»Barramundi announced a new issue of warrants on
27 April 2022
»Information pertaining to the warrants was mailed/
emailed to shareholders on 4 May 2022
»The warrants were issued at no cost to eligible
shareholders in the ratio of one warrant for every four
Barramundi shares held based on the record date of
13 May 2022
»The warrants were allotted to shareholders on
16 May 2022 and listed on the NZX Main Board from
17 May 2022
»The Exercise Price of each warrant is $0.89, adjusted
down for the aggregate amount per Share of any cash
dividends declared on the shares with a record date
during the period commencing on the date of allotment
of the warrants and ending on the last Business Day
before the final Exercise Price is announced by Barramundi
»The Exercise Date for the new warrants is 26 May 2023