BRM – June 2026 monthly update

1
A WORD FROM THE MANAGER
Barramundi’s gross performance return for May was -2.1% and the
adjusted NAV return was -2.3%. This compares to the S&P/ASX200 Index
(70% hedged into NZ$) which was +0.5% over the month.
Portfolio Commentary
oOh!media’s share price rose +15% (in A$) in the month. Late April’s
non-binding indicative offer (“NBIO”) for the company at $1.40ps from
Pacific Equity Partners (“PEP”) was trumped in early May by a $1.45ps
NBIO from I Squared Capital (“ISQ”). At the company’s AGM it was
indicated that the Board regards both offers as below intrinsic value.
However, PEP and ISQ have been granted limited due diligence to assess
if a recommendable proposal could emerge. The AGM also provided
a mixed trading update. So far 2026 revenue growth has been sound
versus a soft overall advertising market. Q1 Australian revenue was up
+7% and Q2 is pacing +6%. First half gross margin will be lower than
oOh!media expected due to softer billboard ad rates (40% of the revenue
mix). Finally, as new CEO James Taylor promised several months ago, the
initial outcomes of his operational review were revealed. oOh!media’s
attempt to partner with retailers in the retail media space, will be
discontinued. This will remove $2m pa of pretax losses. An Operational
Excellence programme has identified significant savings across both
sales’ execution (largely headcount cuts, saving $6.7m pa before tax) and
capital expenditure (largely procurement, saving $3.3m pa).
Credit Corp (+5%) provided a positive trading update for Q3 FY26.
Full year profit guidance remains unchanged at $100-110m, +6-17%
vs FY25. The earnings drivers of all Credit Corp’s operations are ahead
of previous guidance, but the effect will be felt in FY27 earnings. YTD
Lending volumes are up +18% and growth for the full year will be
~+15% (previously flat). Total debt ledger purchase volumes for FY26
are now expected to be up ~+27% vs FY25 (previously +24%). The
collections on this additional volume in FY26 will not be large given a
typical eight-year collection horizon.
Macquarie (+3%) delivered a FY26 financial result modestly ahead of
expectations and bringing an end to a two-year earnings downgrade
cycle. Each of Macquarie’s four divisions enter FY27, well positioned
with the earnings growth in Macquarie Asset Management de-risked
by recent asset sales. The key Commodities & Global Markets division is
benefitting from energy price volatility, which is driving increased demand
from clients to hedge their commodity (and interest rate) exposure. This
elevated volatility in pricing does not look as if it will subside quickly given
ongoing unrest in the Middle East.
Xero (-6%) delivered a solid FY26 result in May. Revenue increased
to around NZ$2.75bn (+31% yoy) supported by 21% organic growth
with both solid subscriber growth (+10% yoy) and higher revenue per
customer (“ARPU”) which grew +8% as well as first-time contribution
from US-payments business, Melio. Revenue, pre-tax profit and cash flow
were all modestly ahead of expectations, although reported earnings
were slightly softer due to higher tax and acquisition-related impacts.
Looking ahead, Xero has provided FY27 guidance with 31.5-35.5%
revenue growth and 0-15% pre-tax profit growth (ahead of expectations
at the mid-point). The company remains confident in its FY28 aspirations
to more than double FY25 group revenue in FY28 (excluding anticipated
revenue synergies). It also reiterated that Melio remains on track to reach
break-even during the 2H FY2028.
CSL (-22%) downgraded FY26 guidance in May, while also providing a
summary of interim CEO, Gordon Naylor’s 90-day root and branch review.
CSL called out four key factors contributing to the downgrade. In the
US, CSL proactively reduced inventories of Ig in one of its distribution
channels. While this impacted near term revenues, it should provide the
company better control and visibility of inventories going forward. In
China, regulatory changes impacted hospital sales of Albumin. While
CSL was able to sign 100+ new tier 2 and tier 3 city hospitals in the
half, this was done at a lower selling price which meant it was unable to
recover the revenue hole created by the regulatory changes. The Middle
East conflict negatively impacted the rollout of its new haemophilia B
gene therapy, HEMGENIX. And finally, in the Vifor business iron product
sales were negatively impacted by new generic products entering the US
market.
Encouragingly, the new management team has taken proactive steps to
reposition the business for growth. It has invested in expanding its US
sales team, it has focused its R&D spend on its core expertise, and closed
underperforming collection centres.
Brambles (-27%) unexpectedly cut its FY26 earnings guidance in May.
FY26 revenue growth is now forecast at +2-3% constant currency (“CC”)
(previously +3-4%) and its pre-tax profit measure of growth at +3-5% CC
(previously +8-11%). The downgrade has been driven by an unfortunate
confluence of events. The key catalyst has been unexpected constraints
in subcontractor pallet repair capacity in parts of its US service centre
network. This has occurred at a time when Brambles is also experiencing
increased demand and when it has been lifting repair quality (requiring
more repair time) to better meet customer requirements. The company is
incurring additional costs (more pallet relocations, adding repair capacity)
as it endeavours to restore service levels and pallet availability. The direct
result is a US$40m increase in operating expenditure. Pallet shortages
are also meaning that some customers are having their pallets rationed
and Bramble’s new customer initiatives have been placed on hold. This
accounts for the reduced sales growth guidance. Finally, the company is
also incurring an additional US$60m of expenditure due to the purchase
of an extra ~2m pallets to address shortages. These higher US costs,
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
June 2026
as at 31 May 2026
$
0.56
SHARE PRICE
PREMIUM
1
5.1
%

BRM NAV
$
0.53
$
0.00
WARRANT PRICE

SECTOR SPLIT
as at 31 May 2026
KEY DETAILS
as at 31 May 2026
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
$0.64
PERFORMANCE FEE CAP
1.25%
SHARES ON ISSUE
349m
MARKET CAPITALISATION
$195m
GEARING
None (maximum permitted 20%
of gross asset value)
volume growth limitations, and extra expenditure will continue into H1
FY27, but Brambles expects capacity constraints to be resolved by the end
of that half.
The company’s already healthy guidance for FY26 free cash flow has
been lifted slightly, and the strength of its financial position is reflected
in a further US$400m on-market share buyback to commence when the
current US$400m buyback concludes in the next few weeks. We see
the fall in share price as an over-reaction to a readily fixable short-term
problem. We regard Brambles as a high-quality company, not subject to
AI disruption, and think it is attractively priced.
Robbie Urquhart
Senior Portfolio Manager
Fisher Funds Management Limited
Portfolio Changes
We added to our Brambles position, increased our target weighting
in BHP and Rio Tinto, and reduced our target weighting in REA and
Cochlear during the month.
2
Financials27%
Information Technology21%
Communication Services14%
Health Care11%
Materials 10%
Industrials 9%
Consumer Discretionary 5%
Cash & Derivatives 3%

MAY’S SIGNIFICANT RETURNS IMPACTING
THE PORTFOLIO during the month in Australian dollar terms
MAAS GROUP
+16
%
BHP GROUP
+16
%
WISETECH
-16
%
BRAMBLES
-27
%
CSL
-22
%
5 LARGEST PORTFOLIO POSITIONS as at 31 May 2026
WISETECH
6
%
BHP GROUP
7
%
MACQUARIE
GROUP
6
%
XERO
6
%
PWR HOLDINGS
5
%
The remaining portfolio is made up of another 19 stocks and cash.
1 Month3 Months1 Year3 Years
(annualised)
5 Years
(annualised)
Company Performance
Total Shareholder Return+0.0%(8.2%)(12.8%)+0.9%(4.0%)
Adjusted NAV Return(2.3%)(8.6%)(17.9%)(0.6%)+0.9%
Portfolio Performance
Gross Performance Return(2.1%)(8.1%)(16.6%)+1.5%+2.8%
Benchmark Index^+0.5%(4.0%)+9.7%+12.3%+9.1%
PERFORMANCE to 31 May 2026
3
TOTAL SHAREHOLDER RETURN to 31 May 2026
^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
Oct
2025

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
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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),
David McClatchy, Fiona Oliver,
Dan Coman and Simon Flood.
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