New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<ul><li>Briscoe Group's (BGP) 2Q26 sales update was solid from a sales perspective, but gross margins remained under significant pressure.</li><li>Management commentary suggested that margin pressure continues to be a key challenge.</li><li>We view the earnings risk from here as skewed to the downside, and with BGP trading on a 20x 12-month forward PE multiple — more than three standard deviations above its long-run average — the risk of a material de-rating remains elevated.</li></ul>

Briscoe Group's (BGP) 2Q26 sales update was solid from a sales perspective, but gross margins remained under significant pressure.Management commentary suggested that margin pressure continues to be a key challenge.We view the earnings risk from here as skewed to the downside, and with BGP trading on a 20x 12-month forward PE multiple — more than three standard deviations above its long-run average — the risk of a material de-rating remains elevated.

Briscoe Group 2Q26 Trading Update — The Gross Profit Game