BRM – March 2025 monthly update

1
A WORD FROM THE MANAGER
Barramundi’s gross performance return for February was -6.3% and
the adjusted NAV return was also -6.3%. This compares to the S&P/
ASX200 Index (70% hedged into NZ$) which was -3.6% over the
month.
February’s share price moves were strongly influenced by company
results which made for a volatile month overall for the market. The
majority of sectors delivered negative returns, with information
technology (-12%) and Healthcare (-8%) the worst sectors overall.
There was also wide dispersion of returns within sectors.
Portfolio Commentary
oOh!media (+29% in A$) reported a 7% increase in 2024 earnings.
Revenue was flat, lagging the 8% growth achieved by the out-of-
home media sector. This was due to the loss of a large contract
which could not be renewed at an adequate return, and to poor sales
execution, now addressed. Growth prospects are looking brighter
for 2025 with some major new contracts commencing. Calendar
year to date revenue is up by 14%. Growing revenues coupled with
the benefits of a cost out programme should produce solid earnings
growth this year.
Audinate (+12%), delivered a pleasing result which critically
demonstrated that it is making progress in working through the
audio chip inventory overhang of its key customers. Six of its top ten
customers have begun re-ordering chips, and the remaining four are
expected to begin re-ordering by June ’25. This has underpinned a
rebound in revenue growth into 2H25. Although it’s still early days,
Audinate continues to see an acceleration of demand for its video
product suite, reinforcing confidence in its bright outlook for long-
term growth.
Brambles (+6%) reported a respectable 11% constant currency
(“CC”) lift in after tax profit for its December 2024 half year. This
was underpinned by 4% CC revenue growth against a lacklustre
macro backdrop (like-for-like volume +1%). Importantly, with pallets
no longer in short supply, the company is again starting to convert
new customers to its pooled pallet model. This is reflected in net
wins contributing 1% to revenue growth for the half. Given the
operating leverage inherent in the business, and the benefits of the
transformation programme commenced several years ago, the 4%
CC revenue growth produced a 10% CC increase in EBIT. These half
year run-rates leave Brambles well on track to deliver its unchanged
full year guidance for revenue and EBIT growth of 4-6% CC and
8-11% CC, respectively.
While MAAS Group’s half year result was in line with the market’s
expectations, the share price fell -16% after it downgraded its full
year earnings guidance by 4-6%. The downgrade was driven by
remediation work related to two projects and several other project
delays in the Civil Construction & Hire business. Remediation work
related to the two projects has now been completed. These were
isolated incidents, and in the last 5 years only 4 civil contracts have
been loss making (including these two). The project delays were
primarily related to the Central West Orana Renewable Energy Zone
(“REZ”). Encouragingly work has subsequently commenced on 2 of
the 4 delayed projects. The Orana REZ presents a big opportunity for
MAAS Group and further work is expected to commence through
2H25 and FY26 and beyond. This should drive plant hire utilisation
and provide strong profit growth.
Cochlear’s (-19%) 1H25 sales were marginally behind the market’s
expectations, but after tax profit was largely in line. The Cochlear
Implant division (new implants) grew +13%. Volumes grew +5%
and were skewed to developed markets which provided a positive
sales mix benefit. The Acoustics business continued to grow strongly
led by the global rollout of the bone conduction hearing system,
the Osia. The clear negative in the result was the Services division
(Cochlear implant upgrades) which fell -12%. Management called
out cost of living pressures and the longevity and quality of the
previous generation external processor (the N7) as reasons for users
delaying upgrading to the new N8 processor. Encouragingly Cochlear
announced it would launch several new products in 2025, including
a new internal processor - the first in over a decade. New products
typically lead to share gains in the short to medium term.
Wisetech’s (WTC) share price fell 28% in the month, largely because
of the resignation of four of its directors. As we discussed in our
October update, WTC’s founder, Richard White had stepped down
as CEO following controversy related to his personal life. However,
he ultimately could not agree with the resigning board members,
the terms of the role he would play in the company going forward.
He has since assumed the role of executive chair and is looking to
replace the board members in time. This highlights a weakness in
governance, and as such we have reduced our target weight in
the company. However, we think the leadership structure with the
founder as chair is a more stable structure than what the Board had
previously proposed. As highlighted in WTC’s financial results, the
company continues to grow strongly. It is in the process of releasing
three new products for the logistics industry. These products
significantly broaden WTC’s runway for growth. As one of our widest
moat companies, we think it is worth remaining invested as the
company looks to realise this growth potential.
1
Share Price Discount to NAV (using the net asset value per share, after expenses, fees and tax, to four decimal places).
MONTHLY UPDATE
March 2025
$
0.70
SHARE PRICE
as at 28 February 2025
DISCOUNT
1
2.2
%

BRM NAV
$
0.72

SECTOR SPLIT
as at 28 February 2025
KEY DETAILS
as at 28 February 2025
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
$0.71
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
335m
MARKET CAPITALISATION
$235m
GEARING
None (maximum permitted 20%
of gross asset value)
4
%
18
%
20
%

INDUSTRIALS
17
%
COMMUNICATION
SERVICES
22
%
1
%
3
%

FINANCIALS
CONSUMER
STAPLES
MATERIALS
5
%
Johns Lyng (-31%) delivered a disappointing set of results and a
downgrade to full year guidance. The crux of the miss was in the
core Australian division where organic growth was -16%. Insurer
Suncorp has been slow in re-allocating work to Johns Lyng after
previously pausing allocations in New South Wales (“NSW”) on the
back of poor execution on the part of Johns Lyng. The impact was
compounded by benign weather conditions which has led to lower
jobs across the industry. Johns Lyng replaced people responsible
for poor execution. While Suncorp has started assigning work to
Johns Lyng in NSW, it is unclear how long it will take for volumes to
rebound to previous levels.
Portfolio Changes
We reduced our weighting in Wisetech during the month (discussed
above).
We also exited our position in Woolworths. We like the non-
discretionary nature of Woolworth’s Australia Food business and the
scale moat afforded to it by being the #1 supermarket business in
Australia, with 30%+ share. However, since 2Q23 Woolworths has
consistently underperformed Coles despite Woolworths having the
larger and better store network, and better, more sophisticated and
larger distribution network. Coles has arguably read the consumer
Robbie Urquhart
Senior Portfolio Manager
Fisher Funds Management Limited
better and leveraged its value brand in the current cost-of-living
crisis. Woolworths (and Coles) have also increasingly faced pressure
from the likes of Amazon, Bunnings and Chemist Warehouse who
are taking share in the non-food space (non-food is circa 33% of
Woolworths sales).
Increased competition, a shift by consumers to lower-priced goods
and falling inflation has put pressure on the sales growth, while
costs have risen, led by the largest cost bucket, wages, which have
increased 4.25%. This led Australia Food margins to fall in 1H25.
And while the ACCC proceedings against supermarkets remains
ongoing we think Woolworths will remain cautious in raising prices
to offset cost pressures which may see margins deteriorate further in
the near term.
Woolworths has also had a change in leadership with longstanding
CEO, Brad Banducci handing over the reins to Amanda Bardwell.
Untested, we will follow her progress closely.
2
10
%
CONSUMER
DISCRETIONARY

HEALTH CARE

CASH &
DERIVATIVES
INFORMATION
TECHNOLOGY

FEBRUARY’S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO during the month in Australian dollar terms
oOH!MEDIA
+29
%
MAAS GROUP
-16
%
COCHLEAR
-19
%
JOHNS LYNG GROUP
-31
%
WISETECH
-28
%
5 LARGEST PORTFOLIO POSITIONS as at 28 February 2025
SEEK
6
%
CSL LIMITED
10
%
WISETECH
6
%
MACQUARIE
GROUP
5
%
XERO
5
%
The remaining portfolio is made up of another 21 stocks and cash.
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return(1.4%)+0.9%+2.2%+2.4%+11.7%
Adjusted NAV Return(6.3%)(8.6%)(0.0%)+8.5%+10.8%
Portfolio Performance
Gross Performance Return(6.3%)(8.5%)+1.7%+10.9%+13.2%
Benchmark Index^(3.6%)(2.4%)+11.7%+10.2%+9.8%
PERFORMANCE to 28 February 2025
3
TOTAL SHAREHOLDER RETURN to 28 February 2025
^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 barramundi.co.nz/about-barramundi/barramundi-policies.
Share Price/Total Shareholder Return
$4.00
$3.50
$3.00
$2.50
$2.00
$1.50
$1.00
$0.50
$0.00
Oct
2006
Oct
2007
Oct
2011
Oct
2013
Oct
2014
Oct
2015
Oct
2008
Oct
2009
Oct
2010
Oct
2016
Oct
2020
Oct
2012
Oct
2022
Share Price Total Shareholder Return
Oct
2017
Oct
2018
Oct
2019
Oct
2021
Oct
2023
Oct
2024

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
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.
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 utilised
for the dividend reinvestment plan
Warrants
»Warrants put Barramundi in a better position to grow
further, operate efficiently, and pursue other capital
structure initiatives as appropriate
»A warrant is the right, not the obligation, to purchase an
ordinary share in Barramundi at a fixed price on a fixed
date
»There are currently no Barramundi warrants on issue