Managed for
the benefit of shareholders

How Djerriwarrh Invests

The investment philosophy is built on taking a medium to longer term view of value which means the Company tends to buy and hold individual stocks for the long term based on a selection criteria which, in summary, comprises a focus on:

• formulation and execution of the business strategy of the companies in which we invest and their underlying business value; and
• key financial indicators, including prospective price earnings relative to projected growth, sustainability of earnings and dividend yield (including franking) and balance sheet position including gearing, interest cover and cash flow.

At the same time we concentrate on stocks where there is an active options market. This is intended to give scope for the writing of predominantly exchange traded options with the level of the portfolio ‘covered’ by call options typically ranging between 20 to 50 per cent of the total portfolio at any one time.

Djerriwarrh has also in the past issued convertible notes and has access to lines of credit that allow the Company to gear its Balance Sheet when appropriate investment returns are available to enhance shareholder returns.

We invest in Australian companies that have unique high-quality assets, brands and/or business footprints that can better withstand economic cycles. When selecting investments for our portfolio, we look for management and board strength, and sound financial metrics covering returns on investment, profit margins, cash flow and gearing.

We believe that these businesses generate superior returns over the long term.

If you’re a Djerriwarrh shareholder, it’s optional to participate in the DRP. You can choose whether to reinvest all or part of your dividends in the plan. Participants enjoy the benefits of compound returns over time with no brokerage costs when acquiring additional shares. It’s entirely flexible, allowing you to join or withdraw at any time.

For more information on the DRP, please read the DRP Rules.

When Australian resident taxpayers receive DSSP shares, no income tax is payable until the shares are sold.

The DSSP may be suitable for Australian taxpaying shareholders that:

• Want to defer tax-payable until selling their Djerriwarrh shares
• Are on a high marginal income tax rate
• Shareholders that pay tax at a lower rate (e.g. SMSF) may prefer the DRP.

Australian resident participants in the DSSP do not receive a dividend but in lieu of that, are issued shares. As they do not receive a dividend, they will not get franking credits or LIC capital gains tax deductions and will usually not be subject to income tax. The receipt of the substitute shares will change the tax cost base of the Djerriwarrh shares that participate in the DSSP and may therefore increase any capital gains tax paid on any subsequent disposal.

Shareholders should in all cases seek their own advice as to whether or not participation in the DSSP is suitable for them.

For more information on the DSSP, please read the DSSP Rules. We have also included a link to the Australian Tax Office Class Ruling regarding the Djerriwarrh DSSP (refereed to in the document as a bonus share plan).

Sign into Computershare – a secure shareholding administration platform – with your Shareholder Reference Number (SRN) or Holder Identification Number (HIN).

Alternatively, complete and return the forms below.

Change of Address

DRP Participate/Terminate/Update Form

Direct Credit Form

Standard Transfer Form (off-market)

TFN Notification

Shareholder Communication