Slide 1: 2023 Full-Year Financial Results Analyst Presentation (ASX cover letter)
23 August 2023 The Manager ASX Market Announcements Australian Securities Exchange Limited Sydney NSW 2000 Platinum Asset Management Limited (PTM) – 2023 Full-Year Financial Results – Analyst Presentation PTM encloses for release to the market the 2023 full-year financial results analyst presentatio
Slide 2: Analyst Briefing
Platinum Asset Platinum Asset Management Management Limited Limited Analyst Briefing 23 24 August 2023 2022 FEBRUARY Platinum Asset Management Limited ABN 13 050 064 287
Slide 3: Analyst Briefing: Presented by
Analyst Briefing Presented by: Andrew Clifford Andrew Stannard Co-Founder Finance Director 1
Slide 4: CEO role – Andrew Clifford
CEO role – Andrew Clifford Stepping aside as Chief Executive Officer Retaining role as Co-Chief Investment Officer Search to commence for replacement CEO (Andrew to remain in the role until appointment) (Please see separate ASX announcement) 2
Slide 5: Financial Highlights
Financial Highlights Full Year ended 30 June 2023 FY23 FY22 Var. % Average FuM (A$b) 18.1 21.4 (15)% Average Fee (bps) 112 115 (3)% Revenue (A$m) 217.4 232.8 (7)% Expenses (A$m) 100.6 86.1 17% NPAT (A$m) 80.9 101.5 (20)% Final Dividend (cps) 7cps 7cps Flat Lower revenues largely reflect changes in
Slide 6: Business Highlights FY23
Business Highlights FY23 One of Australia’s trusted international investment managers with global long- short strategy Year ended 30 June 20232 No 1. active global equity “managed fund” manager 9%1 in Australia by market share Market Share Global Fund (Long Only) achieved strong 1 year +22.9% p.
Slide 7: Building genuinely benchmark unaware portfolios…
Building genuinely benchmark unaware portfolios… Platinum long-short differentiated MSCI (ACWI) heavily weighted to US Larger exposure to Europe Larger exposure to China / HK ~16% Short Platinum 18% 1%3% 25% 2%3% 5% 9% 1% 20% 14% 1% 1% Long-Short 1% Overweight US 62% of MSCI MSCI 62% 3%1% 11% 2% 8%
Slide 8: Investment Performance Financial Year 2023
Investment Performance Financial Year 2023 Platinum Trust Funds A$11.3b Strong 1 Year absolute investment performance (63% of total FUM) Averaging 15% p.a. to 30-Jun-23 and 18% to 31-Jul-23 25% 24% 4%1% 23% 4% 4% 21% 21% 3% 20% 19% 18% 18% 17% 18% 17% 17% 17% 15% 15% 15% 14% 23% 59% 13% 12% Health 1
Slide 9: Platinum International Fund: Performance in context
Platinum International Fund: Performance in context Investment performance: 18 months since MSCI AC World Net Index peak to 30 June 2023* Fund performance vs MSCI AC World Net Index ($A), cumulative Platinum International Fund and by market trend since 31 Dec 2021 to 30 Jun 2023 MSCI AC World Net in
Slide 10: Platinum Global Fund (Long Only)
Platinum Global Fund (Long Only) Since inception performance to 30 June 1 Year Performance to 30 June 2023 2023 600% 25% 23% 471% 500% 20% 20% 400% 15% 306% 300% 10% 200% 5% 100% 0% 0% -100% -5% Source: Platinum Investment Management Limited and FactSet Research Systems. Fund inception date is 28 Ja
Slide 11: Unwavering focus in delivering strong long-term client outcomes
Unwavering focus in delivering strong long-term client outcomes through a differentiated investment approach Risk Contrarian Bottom-up management Team1 Ethics A contrarian long- A bottom up, index- Focus on downside A dedicated and Uncompromising term investment agnostic approach to protection exper
Slide 12: S&P 500: 22/23 recovery has been all P/E, EPS trending lower
S&P 500: 22/23 recovery has been all P/E, EPS trending lower 10 Factset , Morgan Stanley Aug-23
Slide 13: Where to from here?
__.. Where to from here?
Slide 14: Strong drivers for future growth
Strong drivers for future growth Differentiated proposition Platinum International Fund proven long-short value manager 1 Investment performance Platinum Asia Fund at or ahead of benchmark across multiple time periods Investment performance considered a lead indicator for future FUM flows
Slide 15: Financial performance
__. Financial performance
Slide 16: Flows, Average FUM and Operating Results
Flows, Average FUM and Operating Results Vs Prior Year Vs Prior Half FY23 FY22 2H23 1H23 Net Flows -19% (A$m) -10% -1,096 -1,299 -2,168 -2,395 21.4 18.1 +3% 18.3 17.8 Average FUM -15% (A$b) FY23 FY22 2H23 1H23 252.7 99.3 202.7 103.4 +4% -20% Fee Revenue (A$m) FY23 FY22 2H23 1H23 80.9 101.5 43.3 37.6
Slide 17: Flows
Flows Gross Inflows (A$m) Annual Gross Inflows Semi-Annual Gross Inflows 238 Gross inflows of $0.8b in FY23, reflecting Retail Funds subdued retail demand 144 Institutional Largest gross inflows in International 46 185 Fund and Asia Fund 18 2,483 28 1,371 81 1,560 1,190 11 7 18 765 850 713 274 4
Slide 18: Retail flows in context
Retail flows in context At the half year we expected an improvement in new client flows off the back of strong relative performance but gross flows instead slowed, even as outflows improved slightly. PTM retail flows / FY2023 FY2022 3 year average 5 year average average retail FUM Inflow +7% +9% +
Slide 19: Revenue Analysis
Revenue Analysis Full Year ended 30 June 2023 FY23 FY22 Var. (A$m) (A$m) (A$m) Average FuM (A$b)* 18.1 21.4 (3.3) Revenue largely reflects changes in FuM and Average Fee (bps)** 112 115 (3) FuM mix shifts, towards lower fee institutional mandates Management fees 201.4 246.0 (44.6) Improved retur
Slide 20: Expense Analysis
Expense Analysis Year ended 30 June 2023 FY23 FY22 Var. KEY VARIANCES (A$m) (A$m) (A$m) (A$m) Staff costs 32.8 28.9 3.9 Higher iTeam cash STI +12.2 Variable remuneration, incl. share-based Share-based payments 36.6 23.9 12.7 +1.0 payments expense expense Custody and unit registry costs 5.8 9.1 (3.3)
Slide 21: Strong Balance Sheet and Seed Investment Portfolio
Strong Balance Sheet and Seed Investment Portfolio As at 30 June 2023 328 324 342 Net Assets* (A$m) FY23 FY22 FY21 186 177 193 Cash & Term Deposits (A$m) FY23 FY22 FY21 Interim Final 12 7 7 Dividends 7 10 12 (cps) FY23 FY22 FY21 141 144 156 Seed Investments** (A$m) FY23 FY22 FY21 Significant new see
Slide 22: Questions
Questions 20
Slide 23: Appendix
—__.. Appendix
Slide 24: Appendix 1: Detailed operating results
Appendix 1: Detailed operating results Full Year ended 30 June 2023 (A$m) FY23 FY22 Var. (%) Management fees 201.4 246.0 -18.1% Performance fees 1.2 6.7 -82.1% Interest income 5.2 0.5 Large Net gains/(losses) on seed investments, FX and other income 9.6 (20.4) Large Total Revenue 217.4 232.8 -6.6% S
Slide 25: Appendix 2: Performance fees
Appendix 2: Performance fees Carry FUM $m Performance Participation Performance Funds Benchmark forward at (JUN-23) fee period to Rate % fee last paid** Jun-23* Retail Funds Platinum International Fund 26 30 Jun & 31 Dec MSCI AC World Net Index in A$ 15% -27.8% 31 Dec 17 & LICs Platinum Asia ex-Japa
Slide 26: Appendix 3: Underlying profit
Appendix 3: Underlying profit FY23 profit less impacted by volatility of seed investments relative to FY22 FY23 FY22 Var. (A$m) (A$m) (A$m) Statutory NPAT 81 101 (20) Net (gain)/loss on financial assets at (4) 6 (10) fair value through profit and loss Net share of (profit)/loss of (2) 18 (20) associ
Slide 27: Appendix 4: Segment analysis
Appendix 4: Segment analysis Full Year ended 30 June 2023 FY23 FY22 Var. FY23 FY22 Var. Funds Management Investment and other (A$m) (A$m) (%) (A$m) (A$m) (%) Fee Revenue 202.6 252.7 -19.8% Fee Revenue - - -- Other Revenue 2.0 0.1 Large Other Revenue 12.8 (20.0) Large Total Revenue 204.6 252.8 -19.1%
Slide 28: Appendix 5A: Funds under management by product
Appendix 5A: Funds under management by product Full Year ended 30 June 2023 (A$m) Opening balance Investment Distributions Closing balance % of Funds Net flows (1 Jul 2022) performance & Other3 (30 Jun 2023) Total Retail offerings Platinum Trust Funds (excluding funds fed from PIXX and PAXX) and 10,
Slide 29: Appendix 5B: Funds under management by strategy
Appendix 5B: Funds under management by strategy A broad array of global equity services Full Year ended 30 June 2023 (A$m) Opening balance Investment Distributions Closing balance Investment strategy Net flows % of Total (1 Jul 2022) performance & Other* (30 Jun 2023) Global long short 11,781 (1,178
Slide 30: Appendix 6: Share-based payment expense
Appendix 6: Share-based payment expense Five year future estimated amortisation profile 1 ($Am) FY23 FY24 FY25 FY26 FY27 Deferred Remuneration Plan2 2019 annual grant 1.4 2020 annual grant 1.5 1.7 2021 annual grant 1.5 1.8 1.9 2022 annual grant 1.4 1.6 1.8 2.0 2023 annual grant 1.5 1.5 1.7 1.9 2.1 L
Slide 31: Appendix 7: Investment Performance to 30 Jun 2023
Appendix 7: Investment Performance to 30 Jun 2023 Strong absolute performance in 12 months to 30 June 2023 Performance of Platinum Trust Funds A$ 1 Year 5 Year 10 Year Since inception FUM At 30 June 2023 p.a. p.a. p.a. p.a. (A$b) International Fund - Absolute Return 13.9% 5.5% 9.1% 11.5% 6.6 (PMs: A
Slide 32: Appendix 7: Investment Performance to 31 July 2023
Appendix 7: Investment Performance to 31 July 2023 Strong absolute and relative performance in 12 months to 31 July 2023 Performance of Platinum Trust Funds A$ 1 Year 5 Year 10 Year Since inception FUM At 31 July 2023 p.a. p.a. p.a. p.a. (A$b) International Fund - Absolute Return 18.2% 6.1% 9.0% 11.
Slide 33: Disclaimer
Disclaimer This presentation has been prepared by Platinum Asset Management Limited ABN 13 050 064 287 (“PTM”). References in this presentation to “Platinum” are to Platinum Investment Management Limited ABN 25 063 565 006, AFSL 221935, unless otherwise expressly stated. References to PTM include re
Slide 34: Thank you for joining our webinar
Platinum Asset Management Limited Thank you for joining our webinar 24 FEBRUARY 2022 Platinum Asset Management Limited ABN 13 050 064 287