BRM – September 2025 monthly update

1
A WORD FROM THE MANAGER
Barramundi’s gross performance return for August was +0.1% and
the adjusted NAV return was -0.1%. This compares to the S&P/
ASX200 Index (70% hedged into NZ$) which was +3.6% over the
month.
Market Backdrop
The Australian share market rose in August as many companies
delivered full or half year financial results. The positive return for
the ASX200 and the flat (in absolute terms) return for Barramundi
belied a particularly volatile month for individual share prices. The
market reacted sharply to positive and negative news related to these
individual results.
Our portfolio was no different (see the commentary below). We are
disappointed that we did not deliver a stronger return overall in the
month. That said, we do think the market over-reacted to a number
of financial results. This has provided us with opportunity to increase
our positioning in some high-quality companies.
Portfolio Commentary
SEEK (+15%) reported a solid set of results in-line with guidance and
the market’s expectations. It delivered on its three strategic goals -
growing placement share, driving double-digit yield and increasing
profits faster than revenue - even as job advertising volumes
softened. This underscores the resilience of its marketplace model.
FY25 was the first full year of SEEK operating on its re-engineered
technology platform across all its geographies. This supported
the increased cadence of new products and product updates, and
improved hirer and candidate experience. SEEK expects FY26 revenue
growth to exceed total expenditure growth. Revenue growth will
be supported by continued double-digit yield growth (helped by
increased prices). Job advertising volumes are expected to stabilise.
Ansell (+15%) reported a +20% (in constant currency (“CC”))
increase in underlying earnings, towards the top end of its guidance
range. Headline growth was boosted by an acquisition made at the
beginning of the year. However, even when this is backed out, the
company’s performance was sound with revenue up by +8% CC and
Underlying EBIT up by +10% CC. This was assisted by the delivery of
benefits from its productivity improvement programme that began
two years ago. Ansell has guided to +5-15% earnings growth for
FY26. Ansell has also reiterated that it will raise prices to offset
tariffs. A first round of increases has been successfully implemented,
and a second round is pending now that final tariff rates have been
set.
NEXT DC (+14%) provided a strong FY25 result which was in-line
with guidance. Contracted utilisation of its facilities and the amount
it is billing clients rose substantially in the year. Earnings growth from
its record forward book of demand will be delivered in FY26 and
FY27. This is faster than the market expected and saw the market
significantly upgrade its FY27 earnings expectations.
Brambles (+9%) delivered a solid FY25 result that met guidance
and market expectations. Revenue rose by +3% in constant currency
(“CC”) reflecting the subdued macro conditions. With good cost
control this translated into after tax earnings growth of +13% CC
which was pleasing. Despite the ongoing soft macro environment,
the company has guided to FY26 revenue growth of +3-5% CC and
pre-tax underlying profit growth of +8-11% CC. For us, the real
positive in this result was the indication that the company’s Chilean
“Serialisation+” trial (where every pallet in the pool is uniquely
identified) was yielding positive results. Operational testing of
Serialisation+ is underway in the US and UK. There are strong signals
that it will be rolled out in these markets within the next few years.
In our view, this would expand what we consider to be an already
wide economic moat.
Wisetech (-15%) delivered a result in line with market expectations
for FY25. The company guided to solid double digit revenue growth
for FY26; however, the magnitude of the growth disappointed the
market. Part of this is related to timing. Wisetech is rolling out new
products which will only begin translating into meaningful revenue at
the back end of the financial year. It is also changing the way it prices
its software products. Longer term we think this will be helpful in
accelerating adoption of its products by customers. In the near term,
it will take up to a couple of years to completely roll out across the
customer base.
Domino’s (-17%) delivered on signals that its FY25 result would be
broadly flat. Network sales were down by -1% due to store closures
and a subdued same store sales (“SSS”) performance (0.2%). After
tax earnings fell modestly (-3%). The problem markets of Japan
and France continued to drag on growth. The result met lacklustre
expectations, but the market was unforgiving about a lack of
clarity on prospects for FY26 and beyond. There are several areas of
concern. Firstly, a softish start to FY26 trading with SSS down -0.9%
has not helped. However, a deliberate decision to reduce marketing
spend in ANZ and Japan in July (and re-allocate that to a later period
of higher seasonal demand for pizza) will not have helped. Secondly,
there was no guidance on the extent and timing of cost savings that
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 2025
as at 31 August 2025
$
0.73
SHARE PRICE
PREMIUM
1
0.7
%

BRM NAV
$
0.73
$
0.04
WARRANT PRICE

SECTOR SPLIT
as at 31 August 2025
KEY DETAILS
as at 31 August 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
$0.68
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
341m
MARKET CAPITALISATION
$249m
GEARING
None (maximum permitted 20%
of gross asset value)
4
%
17
%
19
%

INDUSTRIALS
16
%
COMMUNICATION
SERVICES
21
%
9
%
the company expects to achieve. Finally, the company is looking to
reduce its traditional discount-led marketing. More consistent and
transparent pricing may help win new customers but could alienate
some existing customers. All the initiatives Domino’s is pursuing
are consistent with improving franchisee profitability, which is a
prerequisite to re-starting store rollout. The expectations embodied
in the current share price are low (11.9x trailing underlying earnings)
but a successful turnaround is not guaranteed.
While CSL’s (-21%) FY25 result was largely in-line with expectations,
it was the qualitative commentary that accompanied the result that
was the main driver of the share price fall during the month. The
reaction of the market can likely be put down to three things, all
of which we believe were more a communication faux pas than a
structural shift in the thesis. First CSL removed the timeframe it was
targeting to get Behring gross margins back to pre-COVID levels. The
announcement surprised the market. Management later explained
that it was still confident it could hit the targets, but timing was
uncertain. Management also announced a strategic transformation
that would deliver cost savings of US$500m+ pa. Management
seemed to confirm that these savings were required to achieve the
previously announced target earnings growth through to FY28.
However, since then CSL confirmed that the savings are not required
for earnings growth to be achieved. Instead, some of the savings
Robbie Urquhart
Senior Portfolio Manager
Fisher Funds Management Limited
would be reinvested into R&D which will help accelerate revenue and
profit growth further. Lastly, the impact of regulatory pricing changes
in the US and the loss of a one-off large tender weighed on FY26
results suggesting underlying growth is healthier than the headline
numbers suggest. While we think management could have done a
better job of messaging some of these issues, the investment thesis
remains intact. We believe the share price reaction was overdone and
we bought shares.
Portfolio Changes
Following their share price reactions to their results, and given the
respective investment theses are intact, we added to our CSL and
Wisetech positions during the month.
We have trimmed our position in NextDC.
2
14
%
CONSUMER
DISCRETIONARY

HEALTH CARE

CASH &
DERIVATIVES
FINANCIALS
INFORMATION
TECHNOLOGY

AUGUST’S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO during the month in Australian dollar terms
ANSELL
+15
%
DOMINO’S PIZZA
-17
%
REECE
-18
%
AUDINATE GROUP
-23
%
CSL
-21
%
5 LARGEST PORTFOLIO POSITIONS as at 31 August 2025
SEEK
7
%
CSL
8
%
WISETECH
6
%
CAR GROUP
6
%
MACQUARIE
5
%
The remaining portfolio is made up of another 20 stocks and cash.
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+1.3%+7.8%+12.3%+4.5%+9.7%
Adjusted NAV Return(0.1%)+5.8%+4.5%+10.2%+10.0%
Portfolio Performance
Gross Performance Return+0.1%+6.3%+6.6%+12.9%+12.5%
Benchmark Index^+3.6%+7.9%+15.4%+13.4%+12.8%
PERFORMANCE to 31 August 2025
3
TOTAL SHAREHOLDER RETURN to 31 August 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
M A N AGEMENT
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
»Barramundi announced a new issue of warrants on 30
June 2025
»The warrant term offer document was sent to all
Barramundi shareholders in mid-July 2025
»Warrants were allotted to all eligible Barramundi
shareholders on 7 August 2025
»The new warrants (BRMWI) commenced trading on the
NZX Main Board from 8 August 2025
»The Exercise Price of each warrant is $0.70, 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 Barramundi warrants is 7
August 2026