BRM – March 2023 monthly update

1
A WORD FROM THE MANAGER
In February, Barramundi’s gross performance return was down 1.5%
and the adjusted NAV return was down 1.7%. This compares to the
S&P/ASX200 Index (70% hedged into NZ$) which was down 2.5%.
February’s share price movements were mainly driven by the financial
results during the semi-annual reporting season. Across the market,
companies reported robust revenue results. However, it was notable
that in aggregate, after tax profits were disappointing, weighed
down by cost pressures.
Portfolio News
AUB Group (+17.4% in A$) delivered a very strong result for its
December half year. Underlying profit after tax was 52% above
the previous corresponding period, boosted by the inclusion of its
acquired UK wholesale insurance broker, Tysers. After allowing for
the dilution of new equity raised to fund the acquisition, underlying
earnings per share (EPS) were up by a very healthy 20%. The strong
result reflects on-going increases in insurance premium rates, AUB’s
focus on improving the efficiency of its insurance broking and
underwriting agency businesses, and Tysers’ initial contribution being
ahead of forecast.
oOH!Media’s (+10.8%) financial results showed that it benefitted
from the continued recovery of out of home advertising audiences
as the impact of COVID-related restrictions fades. oOh!Media has a
high proportion of fixed costs (mainly site rentals for its advertising
billboards), so a large proportion of the 18% increase in revenue
for 2022 fell through to underlying earnings which more than
quadrupled from their depressed 2021 level. No guidance was
provided for 2023. In our view, a weaker macro environment may
supress total advertising spend over the coming year, but we would
expect the out of home format’s share of the market to continue to
recover.
In delivering a pleasing financial result in the month, Audinate
(+9.8%) noted that it had found solutions to the majority of the
microchip shortages that had plagued its operations during 2022. It
was cautiously optimistic that the remaining supply chain challenges
would continue easing during 2023. Management also noted that its
customer order book remains near record levels which bodes well for
revenue growth continuing during 2023 as well.
Cochlear (+4.6%) reported a rebound in new Cochlear implants
during the half year ending December across most geographies.
COVID related hospitalisations and staff absenteeism had negatively
impacted surgery capacity in the previous 2 years. This improved
through 2022 albeit the speed and degree of recovery has been
varied across regions. Cochlear released its new N8 external Cochlear
unit in the December half which should underpin growth in new
Cochlear installations as well as upgrades to the newer unit across
the existing user base in 2023.
Wisetech’s (+4.1%) financial result was in line with market
expectations. More important than the current financial results, it
announced that Kuehne & Nagel, one of the world’s largest logistics
companies, had signed up to a global roll-out of Wisetech’s customs
& compliance software module. This is a landmark transaction, and
significantly widens the lead Wisetech has over its competitors.
Wisetech has been working assiduously for years to develop this
customs module and has completed a multitude of acquisitions to
accomplish this task. That a pre-eminent logistics company that
relies largely on its own custom built freight forwarding software
has signed on for this global customs offer is strong validation of
the value of this module. It is also strong validation for the growth
strategy that Wisetech has pursued over the last decade. It will be
difficult for a competitor to match this global customs offering.
In addition to this, Wisetech has also spent US$644m acquiring two
North American logistics software businesses servicing customers in
railroad and trucking logistics. This is a meaningful new foray into
‘landside’ logistics and opens up a new (longer term) avenue of
growth for Wisetech.
Our bank holdings, CBA (-6.6%), NAB (-5.6%), Westpac (-5.0%)
and ANZ (-1.8%) were weaker during the month following a
strong set of financial results delivered by CBA. Whilst the market
recognised CBA’s strong performance over the past six months,
it quickly latched onto a graph in its presentation which showed
that CBA’s net interest margin (a sign of profitability) had peaked
in October 2022. It fell slightly over the remaining two months of
the period. This led the market to conclude that the banks are at
or nearing ‘peak’ profitability in this interest rate cycle, and that
future profit growth might prove difficult to achieve in a softening
economic environment.
At first glance PWR Holdings’ (-17.8%) 1H23 result looked like a
slight miss to the market’s expectations. This was later explained by a
timing issue related to the Formula 1 2022 budget caps that meant
revenues that would have ordinarily been recognised in 1H23 will be
deferred into 2H23. Notwithstanding this, all its divisions reported
strong underlying growth for the December half. Long term growth
is underpinned by an increasingly large pipeline of future projects.
Fineos’ share price fell (-31.4%) after it reported negative earnings
growth for the 1H23 and downgraded its FY23 guidance. The
lower-than-expected revenues and downgraded guidance was a
result of a change in relationship with one of its largest customers
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
March 2023
Warrant Price
$
0.00
$
0.76
Share Price
PREMIUM
1
7.5
%

as at 28 February 2023
BRM NAV
$
0.71

SECTOR SPLIT
as at 28 February 2023
KEY DETAILS
as at 28 February 2023
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
$0.73
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
272m
MARKET CAPITALISATION
$207m
GEARING
None (maximum permitted 20%
of gross asset value)
3
%
18
%
19
%

INDUSTRIALS
18
%
COMMUNICATION
SERVICES

HEALTH CARE
27
%
2
%
3
%

FINANCIALS
CASH &
DERIVATIVES
CONSUMER
STAPLES
4
%
to a more strategic partnership. This has resulted in the customer
stopping development on its existing Fineos product. It will instead
move to a closer partnership model where it will work alongside
Fineos to develop a more feature rich Integrated Disability and
Absence Management system. While in the short term it means
revenues will be lower, we view the change favourably. It embeds
the Fineos product suite more deeply across the customer’s business
and increases the ‘switching cost’ for the customer, reducing the
propensity for the customer to one day choose an alternative
software solution.
Domino’s (-33.1%) share price fell sharply after announcing a
disappointing financial result. The company faced the full brunt
of inflationary cost pressures across food, energy and labour. Part
of its efforts to cover these cost increases, and protect franchisee
profitability, included a series of price and menu adjustments.
Unfortunately, with consumers already facing ‘cost of living’
pressures, the eventual price level saw order volumes slip, particularly
for delivery, which had previously been boosted by COVID-related
orders. This adversely impacted Domino’s sales and profit margins.
These results are a function of a very unusual operating environment.
Robbie Urquhart
Senior Portfolio Manager
Fisher Funds Management Limited
The management team are aware of and addressing their errors
around pricing, and we think they will resolve this weak performance
in time.
Portfolio Changes
During the month we reduced our position in Carsales, primarily to
fund our purchase of Domino’s shares given we think Domino’s has
better return prospects over the next couple of years.
2
INFORMATION
TECHNOLOGY
6
%
CONSUMER
DISCRETIONARY
MATERIALS

FEBRUARY’S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO
during the month in Australian dollar terms
AUB GROUP
+17
%
oOH!MEDIA
+11
%
PWR HOLDINGS
-18
%
DOMINO’S PIZZA
-33
%
FINEOS CORP
HOLDINGS
-31
%
5 LARGEST PORTFOLIO POSITIONS as at 28 February 2023
WISETECH
7
%
CSL LIMITED
9
%
AUB GROUP
6
%
CARSALES.COM
6
%
SEEK
5
%
The remaining portfolio is made up of another 21 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
Oct
2022
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+8.6%+9.2%(3.3%)+16.1%+16.0%
Adjusted NAV Return(1.7%)+2.0%+4.4%+10.9%+11.1%
Portfolio Performance
Gross Performance Return(1.5%)+2.2%+6.0%+13.1%+13.8%
Benchmark Index^(2.5%)+0.9%+8.1%+8.9%+8.3%
PERFORMANCE to 28 February 2023
3
TOTAL SHAREHOLDER RETURN to 28 February 2023
^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

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
Email: enquire@barramundi.co.nz | www.barramundi.co.nz
4
Computershare Investor Services Limited
Private Bag 92119, Auckland 1142
Phone: +64 9 488 8777
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