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

Fisher & Paykel Healthcare Corp / Equity Bottom-Up

<ul><li>A 25% tariff on all Mexican imports will commence in one month (but who really knows).</li><li>Mexico accounts for ~45% of FPH's production, so this poses a material profitability risk in the near term (~-15%–20% FY26 NPAT hit with no mitigating factors).</li><li>However, we think it shouldn't have a material impact on valuation at this stage, reflecting: (1) the distinct possibility of a reversal or revisions (which occurred overnight), (2) slight SG&amp;A flexibility, and (3) FPH's ability to shift production back toward NZ and use Mexico as a hub for rest of the world (ROW) markets.</li></ul>

A 25% tariff on all Mexican imports will commence in one month (but who really knows).Mexico accounts for ~45% of FPH's production, so this poses a material profitability risk in the near term (~-15%–20% FY26 NPAT hit with no mitigating factors).However, we think it shouldn't have a material impact on valuation at this stage, reflecting: (1) the distinct possibility of a reversal or revisions (which occurred overnight), (2) slight SG&amp;A flexibility, and (3) FPH's ability to shift production back toward NZ and use Mexico as a hub for rest of the world (ROW) markets.

F&P Healthcare - Tariffs—It's (Probably) Not Too Bad