Slide 1: Platinum Asset Management Limited (PTM) – 2024 Full-Year Financial Results – Analyst Presentation
28 August 2024 The Manager ASX Market Announcements Australian Securities Exchange Limited Sydney NSW 2000 Platinum Asset Management Limited (PTM) – 2024 Full-Year Financial Results – Analyst Presentation PTM encloses for release to the market the 2024 full-year financial results analyst presentatio
Slide 2: Platinum Asset Management Limited Analyst Briefing
Platinum Asset Management Limited Platinum Asset Management Limited Analyst Briefing Published on 28 August 2024 for briefing on 29 August 2024 24 FEBRUARY 2022 Platinum Platinum Asset Asset Management Management Limited ABN 13 050 064 287
Slide 3: Highlights FY2024
Highlights FY2024 Year ended 30 June 2024 A leader in the Australian active global equity “managed A$13.0b >70% funds” market Closing FUM1 FUM is Retail Improved absolute performance in June 24 half for +5.1% +9.8% PIF 6 month return PAF 6 month return flagship funds 2 2 -17% -$25m Realising c
Slide 4: Financial performance
Financial performance 3
Slide 5: Financial Highlights
Financial Highlights Full year ended 30 June 2024 (A$M) FY24 FY23 Var. Average FUM (A$b) 15.3 18.1 (15)% Fee revenues decreased 13% largely due to 15% decrease in average FUM. Partly offset by an increase in average fee bps. Management fees 174.4 201.4 (13)% Adjusted expenses reduced 9% on the p
Slide 6: Revenue Analysis
Revenue Analysis Year ended 30 June 2024 FY24 FY23 Var. Retail outflow increase includes some one-offs but mostly Net retail outflows (A$m) (2,365) (1,241) (1,124) reflective of challenged FY2023/FY2024 investment performance, particularly on a relative basis. Net institutional outflows (A$m) (2,5
Slide 7: Expenses
Expenses Year ended 30 June 2024 Second half costs down 10% versus first half and 17% on prior comparative (A$m) FY24 FY23 Var. period. Staff costs 32.9 32.8 0.3% Expenses down despite inflationary pressures and selective investments in Variable remuneration, incl. share-based the business (+$2.
Slide 8: Expenses – turnaround program
Expenses – turnaround program Expense reduction delivery ahead of schedule Progress v Plan Savings FY24 turnaround costs 136% of FY24 target delivered 23% relate to staff reduction 40% relate to staff reduction measures measures 80% of FY25 target already captured 35% relate to accelerated
Slide 9: Strong Balance Sheet and Seed Investment Portfolio
Strong Balance Sheet and Seed Investment Portfolio As at 30 June 2024 314 328 324 Interim Final 7 Net Assets* Dividends 7 (A$m) (cps) 4 10 6 7 FY24 FY23 FY22 FY24 FY23 FY22 250 141 144 186 177 Cash & Term Seed Deposits Investments** 64 (A$m) (A$m) FY24 FY23 FY22 FY24 FY23 FY22 Cash increase a transi
Slide 10: Update on turnaround program and strategy
Update on turnaround program and strategy 9
Slide 11: Turnaround program is on track
Turnaround program is on track Previously announced reset actions Status Deep examination of our investment platform – review and re- ✓ Tracking to Plan – team repositioned, project to enhance portfolio organise investment team, review portfolio construction and risk construction and risk manageme
Slide 12: Turnaround: Examination of Investment Platform - team changes
Turnaround: Examination of Investment Platform - team changes March 2024 What we did: Why we did it: Increased the research resources directly Prior model had potential for conflict with research teams running separate supporting flagship Platinum International Fund funds while supporting flagsh
Slide 13: Turnaround: Examination of Investment Platform - governance
Turnaround: Examination of Investment Platform - governance Product Review Framework Enhancement Actions Re-affirm Platinum’s investment philosophy Enhanced portfolio construction Strengthen risk management Regular investment oversight Systematically reviewing each investment strategy 12 S
Slide 14: Turnaround: “Green shoots” in flagship funds
Turnaround: “Green shoots” in flagship funds Improved absolute return in second half Flagship Fund Performance of financial year 9.80% Equity market rotation away from “Magnificent 7” more likely to benefit 5.10% Platinum’s style -0.30% -4.40% 6 months to Dec-23 6 months to Jun-24 PIF PAF Source
Slide 15: Turnaround: Remuneration issues addressed
Turnaround: Remuneration issues addressed Key feedback points What we have done Remuneration outcomes not well-aligned to business outcomes ✓ New, single, incentive pool, derived from pre-incentive profit and revenue for FY25 ✓ Incentive awards better linked to achievement of business outcomes / KPI
Slide 16: Turnaround: Product line-up reviewed
Turnaround: Product line-up reviewed Initiative Timing Strategy review - Reviewed entire product range - Platinum Global Transition Fund (ASX:PGTX) closed Sep 2024 Vehicle review - Decision to simplify product range - Platinum Asia Investments Limited to merge with PAXX 1 Est. March 2025 - Plati
Slide 17: Turnaround: Client engagement
Turnaround: Client engagement Renewed client communication Key takeaways Target client coverage of financial advisers and researchers ✓ Our advisers and researchers that currently have clients - $8.6Bn AUM invested in our funds understand the Platinum absolute return investment philosophy and its
Slide 18: Platinum growth strategy
Platinum growth strategy Capitalising on our strengths Growth requirements Platinum’s assets Strong investment performance Highly differentiated investment proposition Excellent client service Strong retail brand & client service Talent and cultural strength Distinctive investment driven
Slide 19: Grow by leveraging all of Platinum’s assets
Grow by leveraging all of Platinum’s assets Turnaround core business Serve our clients more broadly 1 2 Add new products Distribute new managed by products managed Platinum by external partners Improve investment returns and stabilise flows 3 Deploy balance sheet to both support and accelerate the a
Slide 20: Add new products managed by Platinum – example
1 Add new products managed by Platinum – example A new hedge fund strategy Quantitatively driven, absolute return, global equity hedge fund strategy Aligned to Platinum’s core investment philosophy Incubated internally with four year track record delivering strong absolute risk adjusted return
Slide 21: Partner with other managers - example
2 Partner with other managers - example A new business line Exclusive access to top performing global institutional managers without significant wholesale/retail access in Australia Goal to achieve asset class diversification, deepen client relationships into attractive, complementary asset clas
Slide 22: Capital management
3 Capital management ✓ Aim to maintain: ✓ solid balance sheet ✓ strong dividend payout (driven by cash profit and franking) ✓ meaningful cash to seed new strategies to grow FUM while earning an investment return ✓ sufficient capital to be able to move on attractive inorganic opportunities as they ar
Slide 23: Questions
! Questions 22
Slide 24: Appendices
—__. _ Appendices
Slide 25: Appendix 1: Detailed statutory results
Appendix 1: Detailed statutory results Full year ended 30 June 2024 (A$m) FY24 FY23 Var. (%) Management fees 174.4 201.4 -13.4% Performance fees - 1.2 Large Interest income 9.4 5.2 Large Net gains/(losses) on seed investments, FX and other income 1.2 9.6 Large Total Revenue 185.0 217.4 -14.9% Staff
Slide 26: Appendix 2: Performance fees
Appendix 2: Performance fees FUM $m Performance Participation Carry forward Performance Funds (Jun-24) fee period to Benchmark Rate % at Jun-24* fee last paid** Retail Funds Platinum International Fund 23 30 Jun & 31 Dec MSCI AC World Net Index in A$ 15% -46.1% 31 Dec 17 & LICs: Platinum Asia ex-Jap
Slide 27: Appendix 3: Segment analysis
Appendix 3: Segment analysis Funds Management Investment and other (A$m) FY2024 FY2023 Var. % (A$m) FY2024 FY2023 Var. % Fee Revenue 174.4 202.6 (13.9%) Fee Revenue - - -- Other Revenue 4.2 2.0 Large Other Revenue 6.4 12.8 (50.0%) Total Revenue 178.6 204.6 (12.7%) Total Revenue 6.4 12.8 (50.0%) Expe
Slide 28: Appendix 4A: Funds under management by product (A$m)
Appendix 4A: Funds under management by product (A$m) Opening Closing balance Investment Distributions balance Funds (1 Jul 2023) Net flows performance & Other3 (30 Jun 2024) % of Total Retail offerings Platinum Trust Funds and Platinum Global Fund (mFund)1 10,530 (2,228) 407 (143) 8,566 66% Quoted M
Slide 29: Appendix 4B: Funds under management by strategy (A$m)
Appendix 4B: Funds under management by strategy (A$m) A broad array of global equity services Opening balance Investment Distributions Closing balance Investment strategy (1 Jul 2023) Net flows performance & Other* (30 Jun 2024) % of Total Global long short 11,848 (3,673) 541 (143) 8,573 66% Asia ex
Slide 30: Appendix 5: Share-based payment expense
Appendix 5: Share-based payment expense Five year future estimated amortisation profile1 ($Am) FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Deferred Remuneration Plan2 2020 annual grant 1.5 2021 annual grant 1.6 1.6 2022 annual grant 1.4 1.5 1.6 2023 annual grant 1.4 1.3 1.5 1.7 2024 annual grant 2.4 2.6
Slide 31: Appendix 6: Investment Performance to 30 June 2024
Appendix 6: Investment Performance to 30 June 2024 Performance of Platinum Trust Funds A$ 1 Year p.a. 3 Year p.a. 5 Year p.a. 10 Year p.a. FUM (A$b) At 30 June 2024 International Fund - Absolute Return 4.8% 4.0% 6.3% 7.9% 5.3 (PMs: AC, CS) - Relative Return - 14.2% - 5.6% - 5.6% - 4.4% Asia Fund - A
Slide 32: Appendix 7: Investment Performance to 31 July 2024
Appendix 7: Investment Performance to 31 July 2024 Performance of Platinum Trust Funds A$ 1 Year p.a. 3 Year p.a. 5 Year p.a. 10 Year p.a. FUM (A$b) At 31 July 2024 International Fund - Absolute Return 5.0% 5.3% 6.5% 8.1% 5.4 (PMs: AC, CS) - Relative Return - 15.8% - 4.7% - 5.8% - 4.6% Asia Fund - A
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. While the information in thi
Slide 34: Thank you for joining our webinar
Platinum Asset Management Limited Thank you for joining our webinar 24 FEBRUARY 2022 Platinum Platinum Asset Asset Management Management Limited ABN 13 050 064 287