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>Pacific Edge's (PEB) CMS reimbursement will cease effective 17 July 2023. Materiality is very high — our prior base case assumed CMS would represent ~70% of group revenue in FY24, ~60% in FY25, and ~50% thereafter.</li><li>Upon further details from the company, how CMS coverage returns and the timing of it remains highly uncertain — our impression is it will be multiple years away (but we acknowledge there is a range of outcomes).</li><li>Our rating is now NEUTRAL having been UNDER REVIEW and we introduce a probability weighted valuation framework (based off three scenarios) with a target price of NZ$0.16.</li></ul>

Pacific Edge's (PEB) CMS reimbursement will cease effective 17 July 2023. Materiality is very high — our prior base case assumed CMS would represent ~70% of group revenue in FY24, ~60% in FY25, and ~50% thereafter.Upon further details from the company, how CMS coverage returns and the timing of it remains highly uncertain — our impression is it will be multiple years away (but we acknowledge there is a range of outcomes).Our rating is now NEUTRAL having been UNDER REVIEW and we introduce a probability weighted valuation framework (based off three scenarios) with a target price of NZ$0.16.

Pacific Edge

Pacific Edge: CMiSery