PPS 5 year Target Price $5/Share, page-12

Shaw & Partners - 4Q21 result – ABOVE Shaw and Partners’ expectations on every metric, and looking to divestInternational. Minor revisions to our FY21 and FY22 earnings (<3%) and our PT increasesfrom $1.00 to $1.35.

Proposing to DIVEST international ops (brings forward the return of the dividenddiscussion?) – has received “unsolicited, strong interest from potential buyers”. In ourview a positive given since 2007 (on our calculations) PPS has lost close to A$60m inInternational EBIT (with revenues totalling just A$80m). This is on an annual cost base of~A$15m.

Total FUA (Platform FUA + non-custodial VMAAS) achieved a new high of $41.7b, fromrecord levels in all global segments - ABOVE Shaw and Partners’ $40.6b estimate, with:1. Australia platform FUA of $18.4b, up 223% on pcp and up 30% for the consolidatedPraemium and Powerwrap – ABOVE Shaw and Partners’ $17.9b estimate;2. International platform FUA of $5.0b, up 55% on pcp – ABOVE Shaw and Partners’$4.7b estimate; and3. FUA for VMAAS of $18.3b, up 61% on pcp - ABOVE Shaw and Partners’ $18.0bestimate.

Big positive was the record quarterly inflows of $1.2b - ABOVE Shaw and Partners’ $0.9bestimate (ex ANZ transition of $169m),

On the Investment Management side (Smart):1. Managed Funds FUM of $258m was flat on both pcp on pp; and2. Model Portfolios FUA of $372m was +9% on pcp and -3% on pp.

RecommendationRetain BUY on TSR of 22%. Fundamentally PPS is an attractive investment prospect as itcontinues to disrupt financial services in the wealth management sector. An attractive TAM,impressive forecast 5-year EBITDA CAGR of 17%, double-digit EPS and profit growth for eachof the next 3 years, increasing FCF, improving returns (ROIC and ROE) despite a fragmented,highly competitive and intensive industry small debt, robust FUA inflows growth quarteron-quarter (which is also the key risk if it reverses) and increasing market share – withsynergies from the PWL acquisition, opportunity to divest the loss-making Internationalbusiness, potential to re-install dividends and a significant catalyst re: valuation gap re-ratingvs. HUB/NWL. On EV/sales+1, PPS is trading at an attractive 60% discount to HUB/NWLrespectively.