Annual financial statement
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Annual Financial Report 30 June 2025 Platinum Asset Management Limited | ABN 13 050 064 287 For personal use only
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Company Directory Platinum Asset Management Limited Annual Financial Report 2 DIRECTORS Guy Strapp Anne Loveridge AM Philip Moffitt Rachel Grimes AM (appointed on 2 September 2024) James Simpson (appointed on 12 November 2024) Jeff Peters Brigitte Smith (retired on 12 November 2024) COMPANY SECRETARY Joanne Jefferies SHAREHOLDER LIAISON Elizabeth Norman REGISTERED OFFICE Level 8, 7 Macquarie Place Sydney NSW 2000 Phone 1300 726 700 (Australia only) Phone 0800 700 726 (New Zealand only) Phone +61 2 9255 7500 SHARE REGISTRAR Computershare Investor Services Pty Ltd Level 4, 44 Martin Place Sydney NSW 2000 Phone 1300 855 080 (Australia only) Phone +61 3 9415 4000 Fax +61 3 9473 2500 AUDITOR AND TAXATION ADVISOR Ernst & Young The EY Centre Level 34, 200 George Street Sydney NSW 2000 SECURITIES EXCHANGE LISTING Platinum Asset Management Limited shares are listed on the Australian Securities Exchange (ASX code: PTM) WEBSITE www.platinum.com.au/ptm-shareholder CORPORATE GOVERNANCE STATEMENT The Corporate Governance Statement can be viewed at www.platinum.com.au/media/Platinum/About/ptm_corp_gov.pdf For personal use only
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Shareholder Information Platinum Asset Management Limited Annual Financial Report 3 The shareholder information set out below was applicable as at 14 August 2025. DISTRIBUTION OF ORDINARY SHARES Analysis of number of ordinary shareholders by size of holding: NUMBER OF HOLDERS OF ORDINARY SHARES 1 to 1,000 3,702 1,001 to 5,000 6,610 5,001 to 10,000 2,361 10,001 to 100,000 3,124 100,001 and over 249 Total 16,046 Holding less than a marketable parcel (of $500) 2,107 For personal use only
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Shareholder Information Platinum Asset Management Limited Annual Financial Report 4 ORDINARY SHAREHOLDERS Twenty largest ordinary shareholders The names of the twenty largest shareholders of the Company are listed below: ORDINARY SHARES NUMBER HELD % OF TOTAL SHARES ISSUED K Neilson 70,037,420 12.03 Citicorp Nominees Pty Limited 63,883,522 10.97 First Maven Pty Ltd 56,000,000 9.62 HSBC Custody Nominees (Australia) Limited 45,181,537 7.76 J P Morgan Nominees Australia Pty Limited 33,004,028 5.67 J Clifford 27,850,132 4.78 Pacific Custodians Pty Limited (Platinum EMP Share TST A/C) 25,556,385 4.39 ABN Amro Clearing Sydney Nominees Pty Limited 18,130,341 3.11 Tsou Enterprise Pty Limited 8,035,600 1.38 Ace Property Holdings Pty Limited 7,260,000 1.25 Jamplat Pty Ltd 6,500,000 1.12 National Nominees Limited 5,365,986 0.92 Moya Pty Limited 4,981,317 0.86 Lak Holdings Pty Ltd 4,000,000 0.69 Starbrook Enterprises Pty Limited 3,500,000 0.60 BNP Paribas NOMS Pty Limited 2,616,580 0.45 BNP Paribas Nominees Pty Ltd (Agency Lending A/C) 2,552,826 0.44 BNP Paribas Nominees Pty Limited (IB AU NOMS Retail Client DRP) 2,081,218 0.36 UBS Nominees Pty Ltd 2,029,651 0.35 Certane CT Pty Limited 2,000,000 0.34 390,566,543 67.09 Unquoted ordinary shares There are no unquoted ordinary shares, however, the Company has share-based payment arrangements through which a total of 31,612,742 deferred and performance rights have been allocated to eligible employees of Platinum Investment Management Limited, and on vesting and exercise of these rights, an equivalent number of PTM shares will be allocated to these employees (please refer to the Remuneration Report and Note 17 for further details). For personal use only
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Shareholder Information Platinum Asset Management Limited Annual Financial Report 5 SUBSTANTIAL SHAREHOLDERS The following parties have notified the Company that they have a substantial relevant interest in the ordinary shares of Platinum Asset Management Limited in accordance with section 671B of the Corporations Act 2001: ORDINARY SHARES NUMBER HELD % OF TOTAL SHARES ISSUED K Neilson 70,037,420^ 12.03 Mitsubishi UFJ Financial Group, Inc. 60,202,450^ 10.34 First Maven Pty Ltd (L1 Capital) 56,000,000^ 9.62 J Clifford, Moya Pty Limited, A Clifford 32,831,449^ 5.64 ^ based on the last substantial shareholder notice lodged. DISTRIBUTION OF ANNUAL REPORT TO SHAREHOLDERS The law allows for an "opt in" regime through which shareholders will receive a printed "hard copy" version of the Annual Report only if they request one. The Directors have decided to only mail out an Annual Report to those shareholders who have "opted in". FINANCIAL CALENDAR No final dividend was determined for the year ended 30 June 2025. NOTICE OF ANNUAL GENERAL MEETING The Annual General Meeting (AGM) of Platinum Asset Management Limited will be held as a hybrid meeting on Tuesday, 18 November 2025. Details of how to attend the meeting will be included in the AGM Notice. QUESTIONS FOR THE AGM If you would like to submit a question prior to the AGM to be addressed at the AGM, you may email your question to invest@platinum.com.au. For personal use only
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Directors’ Report Platinum Asset Management Limited Annual Financial Report 6 The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereinafter as the 'consolidated entity', ‘Group’ or ‘Platinum’) consisting of Platinum Asset Management Limited (referred to hereinafter as the 'Company' or 'parent entity') and the entities it controlled at the end of, or during, the year ended 30 June 2025. DIRECTORS The following persons were Directors of Platinum Asset Management Limited during the whole of the financial year and up to the date of this report, unless otherwise stated: Current Directors Guy Strapp Chair and Non-Executive Director Anne Loveridge AM Non-Executive Director Philip Moffitt Non-Executive Director Rachel Grimes AM Non-Executive Director (appointed on 2 September 2024) James Simpson Executive Director* (appointed on 12 November 2024) Jeff Peters Chief Executive Officer/Managing Director Brigitte Smith Non-Executive Director (retired on 12 November 2024) *James Simpson was appointed as Non-Executive Director on 12 November 2024. The Company announced his appointment to an executive role on 25 February 2025 as Chair of the Investment Oversight Group effective 3 March 2025. PLATINUM AND L1 CAPITAL PROPOSED MERGER On 8 July 2025 the Company announced it had entered into a merger implementation deed (“MID”) with the shareholders of L1 Capital (L1 Capital is the trading name of First Maven Pty Ltd). The MID contains the binding terms of the proposed merger between Platinum and L1 Capital (“Merger”). Subject to the satisfaction of the conditions precedent set out in the MID, which includes PTM shareholder approval, at completion of the Merger ("Completion"), PTM will acquire 100% of the issued share capital in L1 Capital (other than the Z Class shares1), in consideration for the issue of new Platinum ordinary shares to existing L1 Capital shareholders. Under the terms of the Merger, it is expected that immediately following Completion, the existing L1 Capital shareholders will hold 74.0% of the issued share capital in the merged group ("MergeCo"), and existing PTM shareholders will hold 26.0%. PTM shareholders will also receive ‘In-Perimeter’ performance fees related to the first 3.5% of absolute returns (gross performance net of management fees) generated by L1 Capital’s Long Short funds and mandates. Existing L1 Capital shareholders will retain, via their holding in Z class shares, performance fees on L1 Capital’s Long Short funds and mandates in excess of the first 3.5% of absolute returns (gross performance net of management fees). Following Completion, in accordance with the terms of the MID, Platinum must also issue a certain number of PTMAA rights (deferred rights granted under the Platinum Asset Management Limited Deferred Rights Plan) to certain employees of L1 Capital or its related bodies corporate, as notified in writing by L1 Capital to Platinum. The number of such rights shall not exceed 1% of the ordinary shares of MergeCo following Completion. The merger ratio of 74.0%/26.0% referred to above is the ownership ratio before these PTMAA rights are issued. The combination of Platinum and L1 Capital is expected to create a market leading provider of listed and alternative investment strategies with total funds under management of approximately AUD 16.5 billion (based on Funds Under Management of Platinum and L1 Capital at 30 June 2025). It is intended that Platinum will be renamed and MergeCo will remain listed on the ASX after Completion with a new ASX ticker. See the Company announcement for further details. PRINCIPAL ACTIVITIES The Company is the non-operating holding company of Platinum Investment Management Limited (“PIML”) and its controlled entities. PIML, trading as Platinum Asset Management, operates a funds management business. 1 Following Completion, the current shareholders of L1 Capital will retain performance fee revenues generated by L1 Capital’s L ong/Short funds and strategies in excess of the first 3.5% of absolute returns (gross performance net of management fees) per financial year (“Out -of-Perimeter LSF Performance Fees”) by holding Z Class Shares in L1 Capital. The Out-of-Perimeter LSF Performance Fees are intended to be paid as dividends or distributions on these Z Class Shares. This means that L1 Capital will not be a wholly owned subsidiary of the MergeCo. For personal use only
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Directors’ Report Platinum Asset Management Limited Annual Financial Report 7 OPERATING AND FINANCIAL REVIEW Funds Under Management (“FUM”) at 30 June 2025 were $7.9 billion, and this represented a decrease of 39% from the 30 June 2024 closing FUM of $13.0 billion. The change in closing FUM was driven by net fund outflows of $5.6 billion, positive investment returns of $0.6 billion and the 30 June 2025 net distribution. Average FUM of $10.8 billion for the year was lower than the average FUM of $15.3 billion for the previous year. The following table summarises the Group’s profitability over the past two financial years, showing the 30 June 2024 financial year adjusted numbers against 30 June 2025 financial year adjusted numbers to separately disclose the impact of the turnaround program implementation costs: 30 JUNE 2025 $’000 30 JUNE 2024 $’000 Management fees 125,774 174,344 Performance fees 7 - Total revenue 125,781 174,344 Adjusted expenses1 (70,892) (91,451) Adjusted EBIT2 54,889 82,893 Adjusted EBIT margin % 44% 48% Interest income 8,624 9,385 Adjusted operating profit before tax3 63,513 92,278 Other income 6,490 1,251 Turnaround program implementation costs (see below) (42,451) (20,385) Statutory net profit before tax 27,552 73,144 Income tax expense (21,295) (28,009) Statutory net profit after tax 6,257 45,135 Basic earnings per share (cents per share) 1.1 8.0 Adjusted EBIT per share (cents per share) 9.8 14.6 The Group’s statutory profit before tax was $27.6 million for the year ended 30 June 2025 (“FY25”), a $45.6 million decrease from the previous year. Management fees fell 28% to $125.8 million (FY24: $174.3 million) largely as a result of a 29% fall in average funds under management. Adjusted expenses, which excludes turnaround program implementation costs, decreased $20.6 million to $70.9 million in FY25. The decrease in adjusted expenses reflects a decrease in employee expenses due to lower compensation costs as well as reduced marketing and fund administration expenditure. The Adjusted Earnings Before Interest and Tax (“adjusted EBIT”) profit margin was largely protected from the fall in management fee revenue by a reduction in expenses, with margins falling 4%, to 44% (FY24: 48%), for the year. 1 Adjusted expenses is total expenses excluding the turnaround program implementation costs. 2 Adjusted EBIT is calculated as total fee revenue (which excludes interest income and other income) less adjusted expenses. 3 Adjusted operating profit before tax is the sum of adjusted EBIT and interest income. For personal use only
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Directors’ Report Platinum Asset Management Limited Annual Financial Report 8 FY25 turnaround program implementation costs included a $31.2 million non-cash accounting charge for accelerated share-based payment amortisation in respect to those employees who ceased employment during FY25 (note, the employees did not receive any benefit from these share based awards) and accelerated amortisation related to the Platinum Partners Plan 2021 to 2023 grants, as a result of a decision by the PTM Board in June 2025 to cancel the 2021-2023 grants which have failed the TSR hurdles. Statutory profit after tax of $6.3 million (FY24: $45.1 million) was also adversely impacted by the same large and non-deductible accounting charge referred to above. This had the effect of increasing the reported effective tax rate on profit leading to a tax expense of $21.3 million (FY24: $28.0 million). Non-IFRS financial measures are measures that are not defined or specified under IFRS. The Directors believe non-IFRS financial measures such as adjusted EBIT and adjusted expenses assist in providing additional meaningful information about Platinum’s performance by adjusting for non-recurring items such as turnaround program implementation costs which affect the Group’s statutory financial results. These financial measures should be viewed in addition to, and not as a substitute for, the Group’s statutory results. The Chair’s report and Managing Director’s Letter to shareholders provide further discussion and analysis of the Group’s financial results and investment performance. LIKELY DEVELOPMENTS Information about the business strategies and prospects for future financial years of the consolidated entity are included in the Platinum and L1 Capital Proposed Merger section of this report, the Operating and Financial Review and matters subsequent to the end of the year. Further information about likely developments in the operations of the consolidated entity and the expected results of those operations in future financial years has not been included in this report because disclosure of such information would likely result in unreasonable prejudice to the consolidated entity as the information is commercially sensitive. DIVIDENDS Since the end of the financial year, the Directors have determined not to pay a 2025 final dividend. Total dividends paid during the year were $148.5 million, comprising the following: • an interim fully franked dividend of 1.5 cents per share ($8,732,521.37 including dividend paid on treasury shares) was paid on 21 March 2025; • a special fully franked dividend of 20.0 cents per share ($116,433,423.20 including dividend paid on treasury shares) was paid on 31 December 2024; and • the 2024 final fully franked dividend of 4 cents per share ($23,286,684.64 including dividend paid on treasury shares) was paid on 22 August 2024. MATTERS SUBSEQUENT TO THE END OF THE YEAR On 8 July 2025 the Company announced it had entered into a merger implementation deed (“MID”) with the shareholders of L1 Capital (L1 Capital is the trading name of First Maven Pty Ltd). The MID contains the binding terms of the proposed merger between Platinum and L1 Capital (“Merger”). Subject to the satisfaction of the conditions precedent set out in the MID, which includes PTM shareholder approval, at completion of the Merger ("Completion"), PTM will acquire 100% of the issued share capital in L1 Capital (other than the Z Class shares), in consideration for the issue of new Platinum ordinary shares to existing L1 Capital shareholders. Under the terms of the Merger, it is expected that immediately following Completion, the existing L1 Capital shareholders will hold 74.0% of the issued share capital in the merged group ("MergeCo"), and existing PTM shareholders will hold 26.0%. On 21 August 2025, the Explanatory Memorandum ("EM") and Independent Expert Report ("IER") were announced to shareholders, and the Extraordinary General Meeting ("EGM") seeking shareholder approval for the Merger was convened for 22 September 2025. Subject to the satisfaction of the conditions precedent set out in the MID, including PTM shareholder approval, Completion is expected to occur by the beginning of October 2025. For personal use only
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Directors’ Report Platinum Asset Management Limited Annual Financial Report 9 On 25 August 2025, Platinum Asia Investments Limited (ASX: PAI) ("PAI") implemented the scheme of arrangement ("Scheme") with Platinum Asia Fund Complex ETF (ASX: PAXX) ("PAXX") approved by PAI shareholders on 12 August 2025. This resulted in the PAI shares held by the Group being converted to PAXX units and in PIML acting as nominee for the ineligible shareholders of PAI. PIML as nominee is responsible for selling the PAI ineligible shareholder's PAXX units and returning the sale proceeds to the PAI ineligible shareholders. The PAXX units sale process commenced on 26 August 2025 and is expected to be completed by the end of September 2025. PAI ineligible shareholders bear all the risks and rewards associated with the PAXX units sold by PIML as nominee. Apart from the items noted above, no other matter or circumstance has arisen since 30 June 2025 that has significantly affected or may have significant affect the Company’s operations, the results of those operations, or the Company’s state of affairs in future financial years. SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS Aside from what has been disclosed in Likely Developments and Matters Subsequent To The End Of The Year, there were no other significant changes in the state of affairs of the consolidated entity not disclosed elsewhere in the report during the financial year and up to the date of this report. ENVIRONMENTAL, SOCIAL & GOVERNANCE (“ESG”) REPORTING Shareholders are encouraged to read Platinum’s Sustainability and Stewardship Report which is available at www.platinum.com.au/stewardship. It is noted that the consolidated entity is not subject to any significant environmental regulation under Commonwealth, State or Territory laws. INFORMATION ON DIRECTORS Guy Strapp BCom, DIP AF&I, CFA Mr Guy Strapp is an independent Non-Executive Director (since 27 August 2020). He has been Board Chair since 21 November 2020. Mr Strapp is a member of the Audit, Risk & Compliance Committee, Investment Committee and Nomination & Remuneration Committee. Mr Strapp has over 35 years’ experience in the investment and financial services sectors, having worked in a variety of roles in Australia and abroad at Bank of America, JP Morgan Investment Management, Citigroup Asset Management and BT Financial Group. Mr Strapp’s most recent executive role was as CIO and CEO of Eastspring Investments (formerly Prudential Asset Management) in Hong Kong. Mr Strapp brings to the Board extensive local and international experience in asset management, gained on both the investment and distribution side of the business. Anne Loveridge AM, BA (Hons), FCA (Australia), GAICD Ms Anne Loveridge is an independent Non-Executive Director (since 22 September 2016). She is Chair of the Audit, Risk & Compliance Committee and a member of the Nomination & Remuneration Committee. Ms Loveridge has over 35 years’ experience in business. She has a breadth of experience in people leadership and remuneration as well as audit, risk, regulatory compliance and finance skills. Ms Loveridge had a 30-year career at PwC Australia, where she retired as Senior Audit Partner and Deputy Chair in 2015. Ms Loveridge brings to the Board extensive financial services and company director experience gained through her numerous senior leadership and director roles in highly regulated ASX listed organisations (in financial services and health sectors) as well as arts related not-for-profit and Government entities. Ms Loveridge is a Non-Executive Director of ASX listed companies, NIB Holdings Limited, Accent Group Limited and ASX Limited. Other roles include Non-Executive Director of HSBC Australia Limited, Destination NSW (a government agency) and member of Department of Creative Industries, Tourism Hospitality and Sport (DCITHS) Audit and Risk committee. She was previously the Chair of Bell Shakespeare. In 2023, Ms Loveridge was awarded as a Member of the Order of Australia for significant service to theatre administration and to business. For personal use only
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Directors’ Report Platinum Asset Management Limited Annual Financial Report 10 Philip Moffitt BEcon (Hons), BLAS Psych (Hons), GradDipPsych, Associate FINSIA Mr Philip Moffitt is an independent Non-Executive Director (since 17 December 2021). He is a member of the Audit, Risk & Compliance Committee, Nomination & Remuneration Committee and became Chair of the Investment Committee on 23 August 2023. Mr Moffitt has over 35 years’ experience in investment management. Mr Moffitt was previously a partner at Goldman Sachs (London and Sydney) and also Chair of Goldman Sachs Australia Managed Fund Board. Prior to this he held a number of senior roles within Tokai Asia in Hong Kong and Bankers Trust in Australia. Mr Moffitt is a Non-Executive Director of Aware Super and serves as Chair of its Investment Committee and Direct Assets Committee, is a Director of Green Road Consulting, and the Chair of Newington College Foundation. Rachel Grimes AM, BBus (Acc) FCA, FCPA, FIPA. GAICD Ms Rachel Grimes AM, joined the Board as a Non-Executive Director, effective 2 September 2024. She is Chair of the Nomination & Remuneration Committee and serves as a member of the Audit, Risk & Compliance Committee. Ms Grimes brings more than thirty years’ experience in financial services to the Board, including extensive experience in asset management. Ms Grimes’ most recent executive roles were Chief Financial Officer of Challenger and General Manager of Finance at Westpac. Ms Grimes has strong corporate transaction experience having previously led the sale of Challenger Bank, and co-led the Westpac - St George merger and BT Investment Management listing. Ms Grimes is a director of ASX listed HUB24, Australian Payments Plus (and its subsidiaries), Digital Infrastructure REIT and Angus Knight. She is a member of the Financial Reporting Council and the Chair of the Finance and Risk Committee of Surfing Australia. Ms Grimes is a past President of the International Federation of Accountants (IFAC) (2016-2018), past President of ICAA (now CA ANZ) and was awarded a Member in the General Division Medal in 2022 for her significant service to business in the field of accountancy and to professional associations. James Simpson BEco Mr James Simpson joined the Board as a Non-Executive Director on 12 November 2024 and became an Executive Director effective 18 March 2025. He serves as a member of the Audit, Risk & Compliance Committee and Nomination & Remuneration Committee. Mr Simpson has over 34 years’ experience in investment management. He joined Platinum Asset Management as a founding member in 1994. This followed a period with Coopers & Lybrand Corporate Services division and four years at Bankers Trust Australia, where his responsibilities included analysis of Asian companies. At Platinum, Mr Simpson had regional responsibility for Japan and was the portfolio manager of the Platinum Japan Fund and Japanese strategies from 1998 until leaving Platinum in 2007. Over the last 17 years he has managed his own equity and credit portfolios. Jeff Peters BA (Princeton), MBA (Harvard) Mr Jeff Peters was appointed as Chief Executive Officer (“CEO”) on 8 January 2024 and as Managing Director on 19 March 2024. Mr Peters was appointed as director of Platinum Asia Investments Limited on 25 August 2025. With over 30 years of industry experience, Jeff brings to Platinum an extensive asset management background, together with strategic and management consulting skills. He previously led the institutional and international businesses of two large global asset management firms, Columbia Threadneedle Investments and Putnam Investments, respectively, following his time working in the asset management practice at McKinsey. For personal use only
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Directors’ Report Platinum Asset Management Limited Annual Financial Report 11 INFORMATION ON FORMER DIRECTORS Brigitte Smith B.Chem Eng (Hons), MBA, MALD, FAICD Ms Brigitte Smith was an independent Non-Executive Director from 31 March 2018 to 12 November 2024. She was a member of the Audit, Risk & Compliance Committee and Chair of the Nomination & Remuneration Committee. Ms Smith has over 20 years’ experience in the investment and financial services sector. Ms Smith has extensive financial services experience within Australia and the US with a focus on supporting business strategy, human resources and operations. INFORMATION ON COMPANY SECRETARY Joanne Jefferies, BCom, LLB, GAICD Ms Joanne Jefferies is Platinum’s General Counsel and Group Company Secretary (since 17 October 2016). Ms Jefferies is the Company Secretary for Platinum and a number of its subsidiary entities and ASX listed investment companies, Platinum Asia Investments Limited and Platinum Capital Limited. Ms Jefferies is an English law qualified solicitor with more than 27 years’ experience in financial services law and corporate governance specialising in asset management and banking, in United Kingdom and across Asia Pacific. Ms Jeffries was appointed Director of Platinum Asia Investments Limited and Platinum Capital Limited on 18 June 2025. MEETINGS OF DIRECTORS Due to the elevated level of inorganic corporate activity during the year, the Company’s Board of Directors held a number of “ad hoc” supplementary/special purpose meetings to update the Board or to make decisions relating to the potential activity. These meetings have been described as “Ad Hoc Board” in the table below. The number of meetings of the Company's Board of Directors (“the Board”) and of each Board committee held during the year ended 30 June 2025, and the number of meetings attended by each Director were: SCHEDULED BOARD ATTENDED/HELD** AD HOC BOARD ATTENDED/HELD** NOMINATION & REMUNERATION COMMITTEE* ATTENDED/HELD AUDIT, RISK AND COMPLIANCE COMMITTEE* ATTENDED/HELD Directors at 30 June 2025 Guy Strapp 4/4 22/23 4/4 4/4 Anne Loveridge AM 4/4 20/23 3/4 4/4 Philip Moffitt 4/4 22/23 4/4 4/4 Rachel Grimes AM1 3/3 23/23 3/3 3/3 James Simpson2 2/2 12/12 3/3 3/3 Jeff Peters 4/4 23/23 - - Previous Directors Brigitte Smith3 2/2 10/10 1/1 2/2 * Executive Directors may be invited to attend committee meetings as guests. ** Number of meetings attended/held reflect the period the director was eligible to attend. In the event on being unable to attend, the director provides feedback and comments to the Chair of the meeting in advance. 1. Rachel Grimes AM was appointed as non-executive director on 2 September 2024. 2. James Simpson was appointed as a non-executive director on 12 November 2024. The Company announced his appointment to an executive role on 25 February 2025 as Chair of the Investment Oversight Group effective 3 March 2025. 3. Brigitte Smith retired as a non-executive director on 12 November 2024 and was only eligible to attend meetings prior to her retirement date. For personal use only
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Directors’ Report Platinum Asset Management Limited Annual Financial Report 12 RISK MANAGEMENT FRAMEWORK Platinum believes that the management of risk is a continual process and an integral part of good business management and corporate governance. Platinum's risk management framework is set in our risk management policy (available at www.platinum.com.au/ptm-shareholder) which is approved by the Board. The framework sets the Board’s risk appetite for the Company and mechanisms to manage the material risks within the approved risk appetite. The material risks are set out below: RISK CATEGORY RISK DESCRIPTION RISK MANAGEMENT Strategic Risk Strategic Risk is defined as adverse strategic decisions, improper implementation of strategic decisions, a lack of responsiveness to industry changes or exposure to economics, market or demographic considerations that affect our market position. • Board approved strategic objectives • Regular reporting to the Board of management activities to achieve objectives • Key Management Personnel (KMP’s) KPI’s aligned to strategic objectives Legal, Regulatory and Compliance Risk The risk that the framework of rules, relationships, systems and processes within Platinum does not enforce compliance with the Group’s obligations arising as a listed entity and financial services licensee. • Defined compliance framework with documented policies • Training on compliance policies to applicable teams • Regulatory change forum monitors impact of new legislation on Platinum’s business and products Operational Risk Operational Risk is the risk of losses resulting from inadequate or failed internal processes, people and systems, or from external events. • Defined risk management framework with supporting policies • Independent control testing as part of control self- assessment program • Legal Compliance and Risk Department review incidents and breaches to assess control breakdowns and improvements • Insurance arrangements cover material insurable risks Outsourcing Risk Outsourcing risk is the risk arising from failure in processes and or controls undertaken by third parties which result in the breakdown in Platinum’s ability to provide its services. • Periodical due diligence review of material service providers • Legal contracts and monitoring of material breaches of service level agreement in place with material services providers Market and Investment Risk Market and Investment Risk is the risk of losses resulting from ineffective investment strategies, management or structures resulting in sustained under performance relative to benchmarks and investment objectives. • Clearly defined investment strategy • Formation of the Investment Oversight Group responsible for overseeing that Platinum’s investment strategies are managed in- line with agreed investment and risk management processes • Independent pre- and post-trade investment mandate compliance monitoring Financial Risk (including Liquidity) Financial Risk is the risk that Platinum or the Schemes cannot meet its contractual, payment or redemption obligations in a timely manner. • Monitoring of seed capital risks • Monitoring of regulatory capital requirements • Regular review and approval of cashflow forecasts Information Technology (IT) and Cybersecurity Risk IT and Cybersecurity Risk is the risk of financial loss, disruption or damage to the reputation of an organisation from a failure of its information technology systems. • Defined IT security policies including acceptable use of Large Language Model • Monitoring of significant technical issues and cyber security breaches • Independent security testing • Business continuity plan regularly tested • Periodic cyber training provided to staff For personal use only
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Directors’ Report Platinum Asset Management Limited Annual Financial Report 13 RISK CATEGORY RISK DESCRIPTION RISK MANAGEMENT People, Culture and Conduct Risk People, Culture and Conduct Risk is the uncertainty and potential for loss or failure arising from conduct by employees, directors or service providers that does not align with Platinum’s values. The risk arising from an inability to attract and retain talent to execute the strategy of Platinum. • Clearly defined Business Rules of Conduct (BROC) outlines Platinum’s expected standards of behaviour by staff and consequence management framework • Mandatory training for all staff on the BROC • Annual staff attestation of the BROC • Mandatory training on appropriate workplace behaviour and ongoing measure of engagement through the employee engagement survey • Deferred remuneration awards aligned to shareholder outcomes • Succession planning for key roles across the Group Environmental, Social and Governance (ESG) Risk ESG Risk is the risk arising from inappropriate or inadequate ESG considerations in business and investment decision making. • Head of Stewardship leads Platinum’s investment stewardship and corporate sustainability approaches • Defined responsibilities for reviewing ESG developments impacting the Group and monitoring of ESG initiatives INTERESTS IN REGISTERED SCHEMES The relevant interests in units of registered managed investment schemes managed by PIML, for each Director is set out below. REGISTERED SCHEME DIRECTOR 30 JUNE 2025 30 JUNE 2024 Platinum Asia Fund Philip Moffitt 87,160 87,160 Platinum International Fund Complex ETF1 Anne Loveridge AM 19,075 19,073 Platinum Asia Fund Complex ETF2 Anne Loveridge AM 18,967 18,825 GW&K Global Small Cap Fund Rachel Grimes AM 48,662 n/a3 1. Platinum International Fund (Quoted Managed Hedge Fund) changed its name to Platinum International Fund Complex ETF on 27 Mar ch 2025. 2. Platinum Asia Fund (Quoted Managed Hedge Fund) changed its name to Platinum Asia Fund Complex ETF on 27 March 2025. 3. Not applicable as GW&K Global Small Cap Fund was launched on 31 March 2025 and Rachel Grimes AM was appointed as non-executive director on 2 September 2024. INDEMNITY AND INSURANCE OF DIRECTORS AND OFFICERS During the year, the Group incurred a premium in respect of a contract for indemnity insurance for the Directors and officers of the Company named in this report. The Group insures the Directors and officers of the Group to the extent permitted by law for losses, liabilities, costs and charges in defending any legal proceedings arising out of their conduct while acting in the capacity of Directors and officers of the Group, other than conduct involving a wilful breach of duty in relation to the Group or a contravention of sections 182 and 183 of the Corporations Act 2001. During the year, the Group paid insurance premiums to insure the Directors and officers of the Company and its subsidiaries as permitted by the Corporations Act 2001. The terms of the contract prohibit the disclosure of the premiums paid. INDEMNITY OF AUDITOR To the extent permitted by law, the Company has agreed to indemnify its auditors, Ernst & Young Australia, as part of the terms of its audit engagement agreement against claims by third parties arising from the audit (for an unspecified amount). No payment has been made in satisfaction of any indemnity provided to Ernst & Young Australia during or since the financial year. NON-AUDIT SERVICES Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year by the auditor are outlined in Note 24 to the financial statements. For personal use only
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Directors’ Report Platinum Asset Management Limited Annual Financial Report 14 The Directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or by another person or firm on the auditor's behalf), is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The Directors are of the opinion that the services as disclosed in Note 24 to the financial statements do not compromise the external auditor's independence requirements of the Corporations Act 2001 for the following reasons: • All non-audit services have been reviewed and approved by the Audit, Risk and Compliance Committee to ensure that they do not impact the integrity and objectivity of the auditor; and • None of the services undermine the general principles relating to auditor independence as set out in APES 110: Code of Ethics for Professional Accountants issued by the Accounting Professional and Ethical Standards Board. ROUNDING OF AMOUNTS The Company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191, issued by the Australian Securities and Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance with that Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar. MANAGING TAX RISK The Board is committed to acting with integrity and transparency in all tax matters. The Company aims to meet all of its obligations under the law and pay the appropriate amount of tax to the relevant authorities. AUDITOR'S INDEPENDENCE DECLARATION A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 40. This report is made in accordance with a resolution of Directors, pursuant to section 298(2)(a) of the Corporations Act 2001. On behalf of the Directors Guy Strapp Chair Jeff Peters Managing Director 27 August 2025 Sydney For personal use only
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Remuneration Report Platinum Asset Management Limited Annual Financial Report 15 LETTER FROM THE CHAIR OF THE NOMINATION & REMUNERATION COMMITTEE Dear shareholders, On behalf of the Board, I am pleased to present the remuneration report for the financial year ended 30 June 2025, my first as Chair of the Nomination and Remuneration Committee (Committee). At the 2024 annual general meeting (AGM), we received a second strike against the remuneration report, which required a “spill resolution” to be put to the meeting. While the spill motion was not carried, we acknowledge and respect the concerns raised by our shareholders and take this feedback seriously. The Board remains committed to improving transparency, strengthening alignment with shareholder outcomes, and ensuring our remuneration practices support long-term value creation. Please see Section 1 for the feedback received from shareholders and our response. Merger with L1 Capital This year was marked by significant corporate activity, with multiple parties expressing an interest in the Platinum business. This activity culminated in the proposed merger with First Maven Pty Ltd (L1 Capital), which will be considered by shareholders at the general meeting next month (Merger). This strategically important work has required, and will continue to require, intense focus from our people, including the CEO and Finance Director, in addition to their core responsibilities. Merger activity can be destabilising. Therefore, we continue to be mindful of the need to support and retain our people throughout this period of uncertainty and transition. Board & leadership renewal During FY25 the Board welcomed two new non-executive directors (NEDs), myself on 2 September 2024 and James (Jim) Simpson on 12 November 2024. Brigitte Smith, my predecessor as Chair of this Committee, retired from the Board on 12 November 2024 following the AGM. In March 2025, as part of the change to the leadership of the investment team, we announced the transition of Mr Simpson to an Executive Director role where his deep expertise and history with Platinum have allowed him to lead, coach and mentor the team. If approved by shareholders, there will be further changes to the Board on completion of the Merger with L1 Capital. Changes to the 2025 remuneration framework Following a comprehensive review of the remuneration framework for our executive key management personnel (Executive KMP), the Board made a number of changes, including: • re-weighting the on-target and maximum short-term incentive (STI) and long-term incentive (LTI) opportunities for the CEO, resulting in an overall reduction of around 16% to the CEO’s maximum remuneration opportunity; • adjusting the vesting schedule for deferred STI from cliff vesting after four years to pro-rata vesting in equal tranches after one, two and three years, which is more consistent with Australian market practice; • introduced a new LTI plan with a three-year performance measurement period and three performance hurdles linked to investment performance, cumulative earnings and relative total shareholder return (TSR); and • discontinuing three historical incentive plans, significantly simplifying our remuneration framework. The 2025 remuneration framework is detailed in Section 5 of this report. The Board is satisfied that the changes made, position Platinum fairly and competitively against our industry peers and similarly sized companies on the ASX. Context for 2025 remuneration As shareholders are aware, following an extended period of disappointing relative investment performance, Platinum has experienced a reduction in funds under management (FUM), which has resulted in decreased revenue, profits and shareholder value over the last 12 months. Recognising the need to reset both investment and Company performance, for the long-term sustainability of the Company and benefit of shareholders, in 2024 the Board appointed a highly experienced CEO to drive a three year turnaround and change the trajectory of the Company. Our CEO, Jeff Peters, with over 30 years of industry experience, has demonstrated the capabilities required to transform Platinum. Since joining in January 2024, he has reset the strategy, commenced the turnaround and managed significant corporate activity. Mr Peters’ total remuneration package recognises the deep experience and skills he brings to the Company. For personal use only
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Remuneration Report Platinum Asset Management Limited Annual Financial Report 16 The 2025 key performance indicators (KPIs) for the CEO’s STI were focussed on FY25 key milestones in the turn around strategy, including the achievement of a net profit before tax, which reflected maintaining profit margin (and stringent cost management), as well as delivering on strategic goals linked to investment performance, people and diversification of Platinum’s investment offering. These KPIs are collectively aimed at delivering improved financial results for the Company over the medium to long term. The CEO (together with the Finance Director) was also required to seek out and respond constructively to inorganic opportunities to accelerate Platinum’s turnaround. Mr Peters is well aligned with shareholders’ experience through his LTI and retention arrangements and, along with shareholders, experienced a material reduction in value of his equity in 2025. 2025 remuneration outcomes Over the 12 months, the leadership team at Platinum remained focused on driving the improvements announced as part of the three year turnaround in February 2024, making good progress. Disciplined expense control, product rationalisation and the resetting of our remuneration practices, enabled the Company to deliver adjusted EBIT margin of 44%1 for the year, despite challenged revenue conditions driven by fund outflows. The team launched the new GW&K Global Small Cap Fund, the first offering under our new Platinum Partner Series®, as part of the first steps in diversifying Platinum’s product suite. The second half of the year was dominated by significant corporate activity, culminating in the proposed merger with L1 Capital. The Merger, if it proceeds, will conclude the turnaround announced to the market approximately eighteen months ago. The Board’s assessment of Executive KMP performance resulted in 2025 STI outcomes of 75% of the maximum opportunity for the CEO, and 67% of the maximum opportunity for the Finance Director. Half of the awarded STI is deferred into Platinum equity. Further detail is in Section 4.4. In addition to the STI and LTI awards set out below, supplementary awards were granted to the Executive KMP in recognition of the significant workload arising from the substantial corporate activity and to ensure their retention during this challenging period and also as we move forward with integration if the Merger is approved by shareholders. Further details of this are in Section 4.6. The Board approved the new LTI plan in February 2025 and the performance hurdles were finalised in May 2025. Due to the ongoing deal activity throughout the course of 2025, the 2025 LTI grants for Executive KMP under the new LTI plan, have not been issued as of the date of this report due to constraints under the Company’s Securities Trading Policy. It is currently our intention to issue these grants after the release to the market of our FY25 financial results. The price used to calculate the number of performance rights to be issued will be the seven day volume weighted average share price (VWAP) to 23 December 2024 ($0.64). In considering the appropriate VWAP, the Board took into consideration the impact of the special dividend and the deal activity on the Company’s share price during 2024, to ensure alignment with shareholders. Any shares required to satisfy the exercise of vested performance rights resulting from these grants, will be purchased on-market. Approval of the CEO’s 2026 LTI grant will be sought from shareholders at this year’s AGM. Conclusion Throughout the year, the Committee has remained focused on ensuring that our remuneration framework supports performance, attracts and retains key talent, and aligns with the long-term interests of shareholders. We continue to engage with stakeholders and welcome feedback as we refine our approach. We look forward to meeting as many shareholders as possible, including at the 2025 AGM in November. Thank you for your feedback, trust and support. Rachel Grimes AM Chair, Nomination and Remuneration Committee 1 Adjusted EBIT margin is calculated by dividing Adjusted EBIT by total revenue. Adjusted EBIT is calculated as total fee revenue ( which excludes interest income and other income) less adjusted expenses (total expenses excluding the turnaround program implementation costs). For personal use only
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Remuneration Report Platinum Asset Management Limited Annual Financial Report 17 INTRODUCTION This report details the remuneration framework and outcomes for Key Management Personnel (“KMP”) of the consolidated entity for the year ended 30 June 2025. It has been prepared and audited in accordance with the disclosure requirements of the Corporations Act 2001. 1. 2024 REMUNERATION REPORT - SHAREHOLDER FEEDBACK At our 2024 AGM we received a strike against the 2024 remuneration report, for the second consecutive year. Consequently, a resolution to spill the Board was put to shareholders. Although the spill motion was not carried (97.79% of votes were against the resolution), the Board continued to engage with shareholders, shareholder representatives and proxy advisors and considered their feedback. The main issues raised, our comments and the actions we have taken are set out in Table 1 below. Table 1. Shareholder feedback - what we heard and what we have done WHAT WE HEARD WHAT WE HAVE DONE Level of disclosure Individual KMP STI outcomes were not directly reconcilable to the Group Scorecard outcome. • 2024 was an unusual year which included the appointment of a new Managing Director & Chief Executive Officer (CEO), Key Management Personnel (KMP) changes, and alignment of the performance period and financial year. We acknowledge that each of these factors introduced complexity • In this year’s report we publish scorecards for the CEO and Finance Director and present 2025 STI outcomes in a more transparent way (refer to Section 4.3). Disclosure was not at the level expected of an ASX listed company. • This year’s report has been redesigned to improve the transparency of disclosure and enhance readability. • Increased transparency can be observed through the addition of Section 3 (Remuneration Snapshot), Section 6 (Remuneration Governance) and Section 8 (Statutory disclosures), all of which are consistent with prevailing market practice for ASX listed companies. Concerns of misalignment between pay, performance and shareholder outcomes Threshold, target and maximum financial and non- financial performance measures were not disclosed, making it difficult for shareholders to evaluate and being inconsistent with better disclosure practices at other ASX 300 companies. • We have enhanced disclosure of performance metrics for KMP short-term incentive awards, including threshold, target and maximum metrics (where not market sensitive). • We have provided the results against each performance measure, including whether it was at threshold, target or maximum. Some non-financial measures appeared to be day job and not worthy of additional remuneration above fixed salary. • Non-financial measures in 2024 were (and in 2025, are) aligned to strategically important priorities that contribute to expense management and more efficient business operations. • Stability of critical talent and an engaged workforce are critical to transforming our investment performance, our turnaround program and the success of the proposed L1 merger; therefore, with revised weightings, these remain in KMP scorecards in 2025. For personal use only
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Remuneration Report Platinum Asset Management Limited Annual Financial Report 18 2. KEY MANAGEMENT PERSONNEL (“KMP”) This section identifies the KMP of the consolidated entity, including any changes that occurred, during 2025 and up until the publication date of this report. Table 2. Key Management Personnel NAME POSITION TERM CURRENT NON-EXECUTIVE KMP Guy Strapp Chair and Non-Executive Director Full year Anne Loveridge AM Non-Executive Director Full year Philip Moffitt Non-Executive Director Full year Rachel Grimes AM Non-executive Director Commenced 2 September 2024 FORMER NON-EXECUTIVE KMP Brigitte Smith Non-executive Director Ceased 14 November 2024 CURRENT EXECUTIVE KMP Jeff Peters Managing Director & Chief Executive Officer Full year Andrew Stannard Finance Director Full year James Simpson Non-executive Director 12 November 2024 to 2 March 2025 Executive Director Commenced 3 March 2025 Subject to shareholder and Court approval, following completion of the merger with L1 Capital, the following KMP changes are expected: • Philip Moffit, Anne Loveridge and James Simpson will retire from the Board. • Jane Stewart, L1 Capital’s Head of Legal and Compliance will be appointed as an Executive Director; • Neil Chatfield, an experienced ASX Director will be appointed as a Non-executive Director; and • One other Non-executive Director and one other Executive Director will be appointed to the Board. For personal use only
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Remuneration Report Platinum Asset Management Limited Annual Financial Report 19 3. REMUNERATION SNAPSHOT OUR PURPOSE To prove that approaching investing with integrity and curiosity yields enduring investment returns. OUR VISION To be a trusted wealth creator. OUR STRATEGIC OBJECTIVES REMUNERATION PRINCIPLES • Attract and retain talent. • Appropriate and competitive to market practice in the financial services sector. • Appropriately reflects the company’s short and long-term performance objectives. • Reward individuals for achieving performance outcomes in a way that aligns with the company’s risk management framework and risk appetite, code of conduct and values. • Align the interests of employees with the long-term business success and the interests of shareholders and unitholders. For personal use only
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Remuneration Report Platinum Asset Management Limited Annual Financial Report 20 Table 3. Summary of 2025 remuneration framework FIXED REMUNERATION SHORT-TERM INCENTIVE LONG-TERM INCENTIVE PURPOSE Attract and retain executives. Rewards for achieving performance outcomes over the current year. Reward for performance and creates alignment with the shareholder and unitholder experience. Supports retention of critical talent. DELIVERY Base salary (including any salary sacrifice benefits) and statutory superannuation contributions. 50% in cash. 50% in deferred rights vesting in three equal tranches over a further one, two and three years 100% in performance rights, with a three-year performance period and vesting following performance testing (i.e., at the end of year three). APPROACH / OPPORTUNITY Set having reference to comparable roles using industry data and ASX listed companies. MD & CEO: Maximum 120% of fixed remuneration. Finance Director: Maximum 200% of base salary. Executive Director: Not applicable. MD & CEO: Maximum 55% of fixed remuneration. Finance Director: Maximum 89% of base salary. Executive Director: Not applicable. PERFORMANCE MEASURES Not applicable. Balanced scorecards comprising financial and non-financial measures. Investment performance over 3 years. Cumulative earnings target. Relative TSR (vs ASX 300). Figure 1. Remuneration mix at maximum Figure 2. Executive KMP remuneration realisation timeframe Further detail on the remuneration framework is provided in Section 5. 100.0% 26.9% 36.4% 25.3% 21.8% 25.3% 21.8% 22.5% 20.0% James Simpson Executive Director Andrew Stannard Finance Director Jeff Peters MD & CEO Fixed remuneration STI - cash STI - deferred LTI For personal use only
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Remuneration Report Platinum Asset Management Limited Annual Financial Report 21 4. 2025 REMUNERATION OUTCOMES This section details performance and remuneration outcomes for Executive KMP during 2025. 4.1 COMPANY PERFORMANCE The table below shows Platinum’s five-year performance across a range of metrics and corresponding KMP remuneration outcomes. Some of the variable remuneration outcomes will only eventuate if there is a significant improvement in both the share price and dividends of Platinum. Table 4. Company performance over five years 2025 2024 2023 2022 2021 Closing funds under management ($m) 7,904 12,969 17,327 18,214 23,522 Average funds under management ($m) 10,836 15,311 18,061 21,350 23,363 Net flows ($m) (5,564) (4,929) (2,438) (2,169) (2,255) Average base management fee (bps p.a.) 116 114 112 115 114 Base fee revenue ($m) 126 174 201 246 265 Total revenue and other income ($’000) 140,895 184,980 217,410 232,847 316,419 Total expenses ($’000) 113,343 111,836 100,640 86,129 82,207 Profit after income tax expense ($’000) 6,257 45,135 80,863 101,493 163,258 Basic earnings per share (cents per share) 1.12 7.95 14.10 17.54 28.17 Total dividends (cents per share) 21.5 10 14 17 24 Share price at end of year 0.46 1.04 1.74 1.74 4.91 KMP who received STI (number)1 2 4 2 2 2 Aggregate KMP STI ($m) 1.59 1.11 1.30 1.30 2.18 1 KMP who received STI in 2025 includes Jeff Peters and Andrew Stannard. J ames Simpson was ineligible to receive a STI. KMP who received STI in 2024 includes Andrew Stannard for a full year period, Jeff Peters for a six month period (his start date until 30 June 2024) and Liz Norman and Andrew Clifford, each for a ten month period (which corresponds with the period they were on the Board and KMP). KMP who received STI in years 2021, 2022 and 2023 were Andrew Stannard and Liz Norman. Whilst Andrew Clifford was eligible to participate, he did not receive a STI. For personal use only
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Remuneration Report Platinum Asset Management Limited Annual Financial Report 22 4.2 EXECUTIVE KMP ACTUAL REMUNERATION Table 5 summarises the actual remuneration received by Executive KMP during 2025. The basis of preparation is different from AASB requirements. Statutory remuneration disclosures are provided in Section 8. Table 5. Non-statutory disclosure – Executive KMP NAME POSITION YEAR FIXED REMUNERATION / FEES1 OTHER CASH BENEFITS2 CASH STI3 VALUE OF DEFERRED AWARDS VESTED4 TOTAL5 VALUE OF DEFERRED AWARDS FORFEITED6 $ $ $ $ $ $ Jeff Peters7 Managing Director & Chief Executive Officer 2025 1,053,288 330,600 495,000 - 1,878,888 - 2024 448,271 105,739 237,500 - 791,510 - Andrew Stannard Finance Director 2025 504,932 156,750 300,000 24,042 985,724 65,205 2024 502,399 - 275,625 43,030 821,054 147,426 James Simpson8 Executive Director 2025 113,696 200 - - 113,896 - 1 Includes base salary and superannuation (where applicable). For Mr James Simpson, this includes Non- Executive Director fees paid in the period 24 November 2024 to 2 March 2025. 2 Benefits such as relocation allowance, phone allowance and work fee payments paid in June 2025. 3 Cash component of 2025 STI award, to be paid in September 2025; cash component of 2024 STI award including an additional quar ter payment (covering the period 1 April to 30 June 2024) for Andrew Stannard to align performance and financial years. 4 The value of deferred awards vested during the year, reflects the number of Rights that vested in the period multiplied by th e closing Platinum share price on the date of vesting. 5 Sum of preceding columns. 6 The value of deferred awards that lapsed or were forfeited during the period is based on the number of Rights forfeited multi plied by the closing Platinum share price on the date of forfeit. 7 Mr Jeff Peters is exempt from superannuation payments under the Superannuation Guarantee (Administration) Act 1992 . Mr Peters commenced on 8 January 2024; therefore, 2024 values are pro-rated for the period 8 January to 30 June 2024. 8 Mr James Simpson was a non-executive director for the period 24 November 2024 to 2 March 2025. The amounts shown under fixed remuneration/fees reflect his non-executive director fees plus statutory superannuation for that period, and his salary plus statutory superannuation for the period 3 March to 30 June 2025. For personal use only
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Remuneration Report Platinum Asset Management Limited Annual Financial Report 23 4.3 EXECUTIVE KMP PERFORMANCE The CEO’s 2025 scorecard, together with the Board’s assessment of performance, is set out in the table below. Table 6 - 2025 scorecard - Mr Jeff Peters, Managing Director & Chief Executive Officer KPI WEIGHT THRESHOLD1 TARGET2 MAXIMUM3 RESULT Financial (55%) Net profit before tax 27.5% >$59m (5% below budget) >$62m (budget) >$65m (5% above budget) $70m NPAT Maximum - 27.5% Profit margin 27.5% >36% (5% below budget) >38% (budget) >40% (5% above budget) 44% margin Maximum – 27.5% Investment performance (20%) Absolute return 10% Cash +4% on PIF & PAF over 3 years Cash +4.5% on PIF & PAF over 3 years Cash +5% on PIF & PAF over 3 years PIF – 7.2% PAF – 7.6% Below Threshold 0% Relative return 10% -1% to index (net of fees) on PIF & PAF over 3 years Index to +1.9% (net of fees) over index on PIF & PAF over 3 years >+2% (net of fees) over index on PIF & PAF over 3 years People (10%) Employee engagement score 5% > 60 (+5% YoY) > 65 (+14% YoY) > 70 (+23% YoY) <60% Below Threshold -0% Retention of employees - regrettable turnover 5% <15% in core leadership and investment Team; <18% overall <10% in core leadership and iTeam; <15% overall <7% in core leadership and iTeam; <10% overall <7% regrettable turnover Maximum – 5% Strategy (15%) Diversify the investment offerings and earnings profile of the business 15% Viable deal nearing signing Maximum – 15% Risk assessment Fully met Total 100% 75% 1 The minimum performance level that must be achieved before any incentive payment is made and acts as a performance floor . 2 The minimum performance level that must be achieved before any incentive payment is made and acts as a performance floor . 3 The stretch performance level reserved for exceptional results to reward outperformance without encouraging undue risk. For personal use only
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Remuneration Report Platinum Asset Management Limited Annual Financial Report 24 4.4 SHORT TERM INCENTIVE 4.4.1 2025 STI outcomes Table 7. 2025 STI outcomes. NAME POSITION TOTAL STI AWARDED $ STI AS % OF FIXED REMUNERATION / BASE SALARY STI AS % OF MAXIMUM % OF MAXIMUM FORFEITED % OF AWARD DEFERRED1 Jeff Peters Managing Director & Chief Executive Officer $990,000 90% 75% 25% 50% Andrew Stannard Finance Director $600,000 119% 67%2 33% 50% 1 Deferred Rights in respect of 2025 STI are expected to be granted in September 2025. 2 Mr Stannard's 2025 scorecard was based on 50% financial measures (achieved at maximum) and 50% strategic measures (which were partially achieved). The Board’s assessment was to award 67% of the maximum STI. 4.4.2 Deferred Rights granted in respect of 2024 STI On 17 September 2024, Deferred Rights were granted to Mr Jeff Peters and Mr Andrew Stannard in respect of the deferred portion of their 2024 STI. These Deferred Rights will vest on 17 September 2028 subject to terms and conditions including continued service, malus and clawback. Further detail on the Deferred Rights granted to Executive KMP in respect of deferred 2024 STI is provided in Section 8.2. 4.4.3 Prior year awards that vested during 2025 Following the Board’s assessment of vesting conditions, the Deferred Rights issued in respect of Andrew Stannard’s deferred 2021 STI vested on 20 June 2025. 4.5 LONG-TERM INCENTIVE OUTCOMES The Executive KMP are eligible to participate in the Platinum LTI each year. Further detail on the 2025 LTI is in section 5.2.3. JEFF PETERS, CEO ANDREW STANNARD, FINANCE DIRECTOR FACE VALUE $600,000 $450,000 DELIVERY Performance Rights ALLOCATION VALUE The price used to calculate the number of Performance Rights issued was the volume weighted share price as at 23 December 2024 ($0.64), taking into consideration the impact of deal activity to ensure alignment with shareholders GRANT DATE Not yet granted, will be granted after the release to the market of our FY25 financial results 4.5.1 Prior year awards 2022 & 2023 LTI awards - Platinum Partners Plan Performance Rights issued to Mr Andrew Stannard under the Platinum Partners Plan in respect of his, 2022 (Tranche 3) and 2023 (Tranche 2) LTI were due to vest on 30 June 2025, subject to achieving the relevant TSR hurdle. The outcome of performance testing was nil vesting for both tranches and the Performance Rights were forfeited. Further detail is set out in Table 8. Table 8. Prior year LTI awards due to vest AWARD YEAR TRANCHE PORTION OF TOTAL AWARD TSR TSR HURDLE (VESTING CONDITION) OUTCOME 2022 3 25% 3-year annualised TSR Between 10% and 15% Nil vesting 2023 2 25% 2-year annualised TSR Between 7.5% to 10% Nil vesting For personal use only
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Remuneration Report Platinum Asset Management Limited Annual Financial Report 25 4.6 OTHER AWARDS 4.6.1 Sign-on award (Deferred Rights) Mr Jeff Peters’ employment contract provided for an initial grant of Performance Rights (under the Platinum Partners LTI Plan) with a face value of $1.5m. In July 2024, the market was informed no further awards would be made under the Platinum Partners Plan, and that Mr Peters would be granted a sign-on award of Deferred Rights which would vest on the fourth anniversary of his commencement with the Company (8 January 2028), subject to continued employment. At the 2024 AGM Shareholder approval was sought to preserve the flexibility of the Company to fulfill vested and exercised Deferred Rights via the issue of new shares. As noted in the Notice of Annual General Meeting, if shareholders did not approve the resolution, the shares to satisfy this commitment will be required to be purchased on market. The number of rights granted (1,127,820) was calculated by dividing the face value of the award by the VWAP of shares over the seven trading days prior to Mr Peters’ appointment on 8 January 2024 ($1.33). Consistent with the experience of our shareholders, the value of Mr Peters’ sign-on award has materially reduced. As the resolution was not passed by shareholders, any shares delivered to Mr Peters on exercise of vested Deferred Rights will be purchased on-market. 4.6.2 Retention awards To support continuity through the turnaround period, the Board approved retention awards for the CEO and the Finance Director. Mr Peters is a new CEO with minimal on-foot equity, and Mr Stannard’s prior year LTI awards are not likely to vest. Both leaders are critical to the future success of the organisation. These awards to the CEO are not yet granted, but will be granted after the release to the market of our FY25 financial results. Table 9. KMP retention awards. JEFF PETERS, CEO ANDREW STANNARD, FINANCE DIRECTOR FACE VALUE $1,750,000 $450,000 DELIVERY Deferred Rights ($1,000,000) Co-investment of units in Platinum Trust Funds ($750,000) Cash VESTING DATE 30 June 2028 25 October 2028 VESTING CONDITIONS Deferred rights: continuous employment to the vesting date and profit margin hurdle. Co-investment: Continuous employment to the vesting date. Continuous employment to the vesting date. CESSATION OF EMPLOYMENT Good leaver (death, total & permanent disability, resignation in certain circumstances and any other circumstances determined by the Board in its absolute discretion): retain all Any other reasons for cessation of employment (summary dismissal, termination for cause, resignation unless certain circumstances apply, breach of post-employment restraints): forfeit any unvested award Good leaver (death, total & permanent disability and any other circumstances determined by the Board in its absolute discretion): retain all Any other reasons for cessation of employment (summary dismissal, termination for cause, resignation, breach of post-employment restraints): forfeit any unvested award For personal use only
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Remuneration Report Platinum Asset Management Limited Annual Financial Report 26 4.6.3 Work fee payment awards In recognition of the extraordinary effort required to pursue and deliver on deal activity in parallel with the turnaround program and business as usual activities, the Board approved one-off special awards for Mr Jeff Peters, CEO and Mr Andrew Stannard, Finance Director. The first tranche of the awards was paid on 26 June 2025. The MID with L1 Capital provides for a second tranche of these payments for both Mr Peters and Mr Stannard, to be paid in December 2025. These awards, offered in addition to the STI that forms part of our remuneration framework, reflect the strategic significance and intensity of the work undertaken and the outcomes achieved. Table 10. KMP work fee payments JEFF PETERS, CEO ANDREW STANNARD, FINANCE DIRECTOR FACE VALUE $1,000,000 $475,000 DELIVERY Cash VESTING DATE Tranche 1 (33% of total award): No later than 30 June 2025. Tranche 2 (67% of total award): 31 December 2025. VESTING CONDITIONS Tranche 1: The Board must determine that inorganic activity continues to be contemplated and worked upon. For the awards to vest, a participant must: • maintain a risk assessment rating of “Met” from the offer date to the vesting date; • not have been provided with termination of employment for cause as at the vesting date; and • not have provided notice of termination of employment as at the vesting date. Tranche 2: Continued service. CESSATION OF EMPLOYMENT As soon as practicable following the vesting dates. For personal use only
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Remuneration Report Platinum Asset Management Limited Annual Financial Report 27 5. REMUNERATION FRAMEWORK 5.1 2025 CHANGES Given the Company’s specific context and circumstances, including the required turnaround for the next three years, the Board determined that changes were required to the CEO remuneration approach. For example, the remuneration mix is better weighted toward STI measures (with a continuation of meaningful deferral into equity), enabling a clear focus on the immediate priorities to deliver long-term value. The 2025 changes include: • The CEO fixed remuneration was set at $1,100,00 (from $1,029,232), effective 1 January 2025. This value informed the variable remuneration calculations for 2025. • Re-weighted the maximum STI and LTI opportunities for the CEO, resulting in a reduction to maximum total variable remuneration and total annual potential remuneration: o Maximum STI from 100% of base salary1 to 120% of fixed remuneration1; o Maximum LTI from 150% of base salary1 to 55% of fixed remuneration1; o Maximum total variable remuneration opportunity reduced from 250% of base salary to 175% of fixed remuneration. o Total annual potential remuneration reduced by 16.7%. • For Executive KMP, changing the vesting schedule for the 50% deferred STI from cliff vesting after four years to pro-rata vesting in equal tranches after one, two and three years, which is more consistent with Australian market practice. • A new LTI plan, using Performance Rights with three performance hurdles (investment performance, cumulative earnings and relative TSR) that are tested on completion of a three-year performance period and three performance hurdles. • Discontinued three historical incentive plans - the Partner’s LTI Plan, the Investment Team Plan and the Profit Share Plan. 5.2 2025 REMUNERATION STRUCTURE This remuneration structure was in place for Executive KMP during 2025. 5.2.1 Fixed remuneration FIXED REMUNERATION PURPOSE To attract and retain executives with competitive fixed remuneration, set having reference to comparable roles within industry peers and similarly sized ASX-listed companies. DELIVERY Base salary (including any salary sacrifice benefits) are paid in cash on a monthly basis. Statutory superannuation contributions2 to the maximum contributions base. 1 Throughout this report, the terms “base salary” and “fixed remuneration” are used. Fixed remuneration equals the base salary and any superannuation (or equivalent) contributions. 2 Mr Jeff Peters is exempt from superannuation payments under the Superannuation Guarantee (Administration) Act 1992. For personal use only
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Remuneration Report Platinum Asset Management Limited Annual Financial Report 28 5.2.2 Short-term incentive SHORT-TERM INCENTIVE PURPOSE Rewards for achievements over a single performance year. The pool is created based on fee revenue, capped based on profit, and operates entirely at the discretion of the Board. PERFORMANCE PERIOD 1 July 2024 to 30 June 2025. DELIVERY 50% in cash. 50% in Deferred Rights vesting in three equal tranches after a further one, two and three years. OPPORTUNITY MD & CEO: Maximum 120% of fixed remuneration1. Finance Director: Maximum 200% of base salary1. Executive Director: Does not participate in variable remuneration. PERFORMANCE MEASURES Each eligible Executive KMP has a balanced scorecard that comprises strategic financial and non-financial KPIs, as determined by the Board. In addition to the scorecard KPIs, STI awards are subject to a risk gate-opener that includes an assessment of risk behaviours, compliance and conduct must be met (detailed in Section 6.3). Deferred Rights (granted in respect of deferred STI) GRANT OF RIGHTS The number of Deferred Rights granted is calculated by dividing the face value of the deferred portion of STI by the VWAP of shares over the seven (7) trading days immediately preceding the Grant Date. VESTING CONDITIONS A participant must: • remain continuously employed or engaged at the relevant Vesting Date; or • have been considered by the Board to be a Good Leaver, unless the Board, in its absolute discretion, determines otherwise. PRE-VESTING ASSESSMENT Prior to approving the vesting of Deferred Rights, the Board undertakes a risk assessment that includes consideration of a participant’s risk management behaviours, compliance obligations and risk outcomes. Please refer to Section 6.3 for further detail. EXERCISE A participant may exercise their Deferred Rights following receipt of a Vesting Notice. No exercise price is payable by a participant upon the exercise of their Deferred Rights. Vested Deferred Rights that have not been exercised as of the relevant Expiry Date will be deemed to have been exercised on the Expiry Date. EXPIRY DATE Deferred Rights expire on the ninth (9th) anniversary of the Grant Date. 1 Throughout this report, the terms “base salary” and “fixed remuneration” are used. Fixed remuneration equals the base salary and any superannuation (or equivalent) contributions. For personal use only
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Remuneration Report Platinum Asset Management Limited Annual Financial Report 29 SHORT-TERM INCENTIVE DIVIDEND EQUIVALENT PAYMENT Deferred Rights carry an entitlement to a Dividend Equivalent Payment upon exercise of Vested Rights. The Dividend Equivalent Payment will be equity-settled, with the number of shares issued calculated by dividing the amount of the Dividend Equivalent Payment by the VWAP of shares over the seven (7) trading days up to and including the trading day immediately preceding the date of exercise, unless otherwise determined by the Board. MALUS AND CLAWBACK Deferred STI awards are subject to malus and clawback provisions, as determined by the Board. CHANGE OF CONTROL The Board may, at its discretion, determine that: • the Vesting conditions applicable to any unvested Deferred Rights be waived; and/or • any disposal restrictions applicable to Deferred Rights or resulting shares will no longer apply. CESSATION OF EMPLOYMENT PROVISIONS Good leavers (death, total & permanent disability, other circumstances determined by the Board in its absolute discretion): • unvested Deferred Rights remain on foot to vest on the original Vesting Date subject to the original terms and conditions (including malus and clawback); and/or • retain vested but unexercised Deferred Rights. Adverse leavers (summary dismissal, termination for cause, resignation, breach of post-employment restraints): • forfeit any unvested Deferred Rights lapse and any related entitlements to Dividend Equivalent Payments; and/or • forfeit any vested but unexercised Deferred Rights and related entitlements to Dividend Equivalent Payments. For personal use only
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Remuneration Report Platinum Asset Management Limited Annual Financial Report 30 5.2.3 Long-term incentive LONG-TERM INCENTIVE PURPOSE Rewards for performance and creates alignment with the shareholder experience. Retains critical talent. PERFORMANCE PERIOD 1 July 2024 to 30 June 2027. DELIVERY Performance rights, tested on completion of the three-year performance period and vesting on the third anniversary of the Grant Date. OPPORTUNITY MD & CEO: Maximum 55% of fixed remuneration. Finance Director: Maximum 89% of base salary. Executive Director does not participate in variable remuneration. PERFORMANCE MEASURES Over the three (3) year performance period: Metric Weighting Threshold Target Stretch Vesting 50% Pro-rata from 50% to 100% 100% Investment performance - relative to index (rolling) 16% >-1% against Index over 3 years > index over 3 years 2% or greater than index over 3 years Investment performance - absolute return (rolling) 24% Cash rate + 4% Cash rate + 4.5% Cash rate +5% Relative total shareholder return (rTSR) vs ASX 300 25% Below 50th percentile Between 50th and 75th percentile 75th percentile or above Cumulative Profit 35% Achievement of the cumulative profit target set by the Board. For personal use only
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Remuneration Report Platinum Asset Management Limited Annual Financial Report 31 LONG-TERM INCENTIVE Given the proposed L1 merger, it is not possible to set appropriate profit targets for three years into the future. Therefore, the Board will set annual profit targets around the beginning of each financial year. The proposed L1 merger and associated changes may also lead to the Board being required to apply judgement to the performance measures for cumulative profit and investment performance. The Board may, in its ultimate discretion, adjust upward or downward the number of Performance Rights forfeited or vested. GRANT OF RIGHTS The number of Performance Rights to be granted was calculated by dividing the face value of the award by the VWAP of shares ($0.64) over the seven (7) trading days following the end of discussions with Regal on 9 December 2024 and the payment of the special dividend (i.e. 13/12/2024 to 23/12/2024). This pricing approach was approved by the Board specifically for the 2025 award, having regard for the unique circumstances. The pricing date followed a market announcement enabling shareholders to be fully informed and was clear of the special dividend ex-date. VESTING CONDITIONS A participant must: • remain continuously employed or engaged at the relevant Vesting Date; or • have been considered by the Board to be a Good Leaver, unless the Board, in its absolute discretion, determines otherwise. PRE-VESTING ASSESSMENT Prior to approving the vesting of Performance Rights, the Board undertakes a risk assessment that includes consideration of a participant’s risk management behaviours, compliance obligations and risk outcomes. Please refer to Section 6.3 for further detail. EXERCISE A participant may exercise their Deferred Rights following receipt of a Vesting Notice. No exercise price is payable by a participant upon the exercise of their Deferred Rights. Vested Deferred Rights that have not been exercised as of the relevant Expiry Date will be deemed to have been exercised on the Expiry Date. EXPIRY DATE Performance Rights expire on the ninth (9th) anniversary of the Grant Date. DIVIDEND EQUIVALENT PAYMENT Eligible employees will have no voting or dividend rights until their performance rights have been exercised and their shares have been allocated. However, the performance rights carry an entitlement to an alternative dividend equivalent payment. This entitlement arises once a tranche of an award meets its hurdles and continues until the corresponding performance rights are exercised (Holding Period). During the Holding Period, an eligible employee will receive an amount of cash approximately equal to the amount of dividends that would have been paid to the employee had they held the relevant resultant number of shares from the date the relevant hurdle was met. The cash payment would be subject to normal tax withholding for payroll payments and not grossed up for theoretical franking credits. MALUS AND CLAWBACK LTI awards are subject to malus and clawback provisions, as determined by the Board. CHANGE OF CONTROL In the event of a change of control, the Board will have discretion in relation to the vesting of the awards and the performance measurements. CESSATION OF EMPLOYMENT PROVISIONS Good leaver (death, total & permanent disability, CEO resignation in certain circumstances and any other circumstances determined by the Board in its absolute discretion): retain all. Any other reasons for cessation of employment (summary dismissal, termination for cause, resignation unless certain circumstances apply, breach of post-employment restraints): forfeit any unvested award. For personal use only
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Remuneration Report Platinum Asset Management Limited Annual Financial Report 32 5.3 EXECUTIVE KMP CONTRACT TERMS The key aspects of Executive KMP employment contracts are outlined in Table 11. Table 11. Executive KMP contract terms TERM CONDITIONS Contract type Permanent, open-ended employment contract Notice (by Executive) CEO and Finance Director: six months Notice (by Platinum) CEO: six months; Finance Director: one month. Termination payments Fixed remuneration in lieu of notice and statutory entitlements. CEO: relocation cost agreement (estimated value $100,000) if exit is for any reason other than summary dismissal. Variable remuneration on cessation In accordance with the applicable plan documentation. Post-employment restraints Non-compete and non-solicitation provisions applicable for up to 12 months 5.4 MINIMUM SHAREHOLDING REQUIREMENT Executive Directors are subject to a minimum shareholding requirement policy, which was most recently approved by the Board on 23 August 2023. Under the Policy: • the CEO is required to hold securities (including vested awards) equivalent to 200% of fixed remuneration within five (5) years of appointment; and • other Executive Directors are required to hold securities (including vested awards) equivalent to 100% of fixed remuneration; • Executive Directors are required to comply within five (5) years (external appointments) or three (3) years (internal appointments) of appointment to an ED position. Table 12. Executive Director compliance with minimum shareholding requirement NAME PROGRESS REQUIRED COMPLIANCE DATE Jeff Peters Compliant1 8 January 2029 James Simpson Compliant 14 November 2029 1 Jeff Peters is currently compliant with the policy as he has five years from appointment date of 8 January 2024 to achieve the minimum shareholding. For personal use only
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Remuneration Report Platinum Asset Management Limited Annual Financial Report 33 6. REMUNERATION GOVERNANCE 6.1 ROLES AND RESPONSIBILITIES 6.2 BOARD DISCRETION The Board retains ultimate discretion over all aspects of remuneration. 6.3 RISK ADJUSTMENTS TO REMUNERATION All variable remuneration is subject to risk adjustment, at the discretion of the Board. Prior to awarding STI and LTI, and approving the vesting of on-foot awards, the Board will complete an assessment to satisfy itself that Executive KMP have: • operated within the agreed risk management guidelines; • proactively identified and managed risks, issues and incidents; • met all personal compliance obligations; • maintained and enhanced an effective control environment; and • behaved in a manner consistent with the organisational values. 6.4 SECURITIES TRADING POLICY Platinum’s securities trading policy establishes when, and under what circumstances, Platinum Persons (which includes non- executive directors, employees and associates as defined in the Corporations Act 2001 (Cth)) may buy or sell Company shares and any other securities issued by the Company (from time to time), as well as trade financial products (e.g. derivatives) that are issued or created by third parties over Company shares or over any other securities issued by the Company, and trade in units in any of the Platinum Complex ETFs (formerly known as Quoted Managed Funds) i.e. PIXX, PAXX and/or PGTX (together “PTM Securities”). The policy is published on our website. 6.5 USE OF REMUNERATION CONSULTANTS The Board may seek advice from independent advisors and experts, including remuneration consultants, from time to time. To ensure appropriate independence, remuneration consultants are engaged by the Chair of the Nomination & Remuneration Committee (NRC). Should recommendations as defined in the Corporations Act 2001 (Cth) be required, those recommendations are provided directly to the Chair of the NRC. No recommendations were made during 2025. For personal use only
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Remuneration Report Platinum Asset Management Limited Annual Financial Report 34 7. NON-EXECUTIVE DIRECTOR REMUNERATION 7.1 REMUNERATION FRAMEWORK Non-executive directors receive fixed fees and superannuation guarantee contributions. Non-executive directors do not receive variable remuneration. The aggregate amount of remuneration that can be paid to non-executive directors is $2 million per annum. This was approved by shareholders in April 2007. The annualised non-executive director fee schedule, exclusive of superannuation, is set out in Table 12. Table 12. Annualised non-executive director fee schedule (exclusive of superannuation). 2025 2024 CHAIR MEMBER CHAIR MEMBER Board $230,000 $130,000 $230,000 $130,000 Audit, Risk & Compliance Committee $30,000 $15,000 $30,000 $15,000 Nomination & Remuneration Committee $30,000 $30,000 $30,000 $30,000 Investment Committee1 $15,000 $15,000 $15,000 $15,000 1 The Investment Committee was disbanded on 28 August 2024. 7.2 MINIMUM SHAREHOLDING REQUIREMENT Non-executive directors are required to acquire shareholdings equivalent to one year’s director’s fees (excluding Committee fees) within three (3) years of joining the Board. For the purposes of achieving compliance, the calculation will be the price of shares on the date of appointment if shares are already owned, or the price at the time of purchase if acquired following appointment. The status of each non-executive director’s compliance with the minimum shareholding requirement is set out in Table 13. Table 13. Non-executive director minimum shareholding compliance. NAME PROGRESS Guy Strapp Compliant Anne Loveridge AM Compliant Philip Moffit Compliant Rachel Grimes AM Compliant2 2 Rachel Grimes AM is currently compliant with the policy as she has three years from appointment date of 2 September 2024 to achieve the minimum shareholding. For personal use only
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Remuneration Report Platinum Asset Management Limited Annual Financial Report 35 8. STATUTORY DISCLOSURES 8.1 KMP REMUNERATION This section sets out each element of remuneration for Non-executive and Executive KMP as required by the Corporations Act 2001 (Cth) and prepared in accordance with Australian Accounting Standards. Non-executive KMP remuneration is disclosed in Table 14; Executive KMP remuneration is disclosed in Table 15. Table 14. Non-executive KMP remuneration. SHORT-TERM BENEFITS POST- EMPLOYMENT BENEFITS TOTAL REMUNERATION NAME POSITION YEAR BOARD FEES SUPERANNUATION TOTAL $ $ $ CURRENT Guy Strapp1 Chair & Non- Executive Director 2025 262,500 29,341 291,841 2024 272,863 27,399 300,262 Anne Loveridge AM Non-Executive Director 2025 175,000 20,125 195,125 2024 175,000 19,250 194,250 Philip Moffit1 Non-Executive Director 2025 162,500 18,687 181,187 2024 172,863 19,015 191,878 Rachel Grimes AM2 Non-Executive Director 2025 142,003 16,330 158,333 FORMER Brigitte Smith3 Non-Executive Director 2025 63,718 7,328 71,046 2024 175,000 19,250 194,250 Totals4 5 2025 805,721 91,811 897,532 2024 854,204 91,347 945,551 1 Guy Strapp and Philip Moffit’s 2025 remuneration is lower than 2024 as a result of ceasing to be members of the Investment Committee 2 Rachel Grimes AM commenced as a KMP on 2 September 2024. 3 Brigitte Smith ceased as a KMP on 14 November 2024. 4 Totals for 2024 include individuals who are not KMP in 2025 and are therefore not individually disclosed in this table. 5 James Simpson was a non-executive director for the period 24 November 2024 to 2 March 2025, and an Executive Director from 3 March 2025. His total remuneration from 24 November 2024 is included in the Executive KMP table. For personal use only
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Remuneration Report Platinum Asset Management Limited Annual Financial Report 36 Table 15. Executive KMP remuneration. SHORT-TERM BENEFITS POST- EMPLOYMENT BENEFITS LONG- TERM BENEFITS SHARE-BASED EXPENSES TOTAL REMUNERATION NAME YEAR CASH SALARY AND FEES1 CASH STI2 NON- MONETARY BENEFITS3 OTHER SHORT- TERM BENEFITS 4 SUPERANNUAT ION LONG SERVICE LEAVE5 DEFERRED RIGHTS6 PERFORMANCE RIGHTS7 TOTAL8 VARIABLE REMUNERATION AS A % OF TOTAL REMUNERATION $ $ $ $ $ $ $ $ $ % Jeff Peters9 2025 1,035,647 495,000 - 964,767 - - 827,138 180,000 3,502,552 43% 2024 503,830 237,500 - 105,739 - - 41,325 - 888,394 31% Andrew Stannard 2025 460,689 300,000 - 429,167 29,932 6,597 310,210 196,385 1,732,980 47% 2024 476,218 275,625 - - 27,399 8,576 230,459 152,469 1,170,746 56% James Simpson10 2025 105,026 - - 200 11,747 - - - 116,973 0% Totals11 2025 1,601,362 795,000 - 1,394,134 41,679 6,597 1,137,348 376,385 5,352,505 43% 2024 1,549,759 836,042 - 106,476 59,365 18,095 673,352 521,765 3,764,854 54% 1 Includes base salary and annual leave balance movements during the year. 2 Cash component of 2025 STI award, to be paid in September 2025. 3 Company funded benefits (and applicable FBT) such as car parking. 4 Includes work fee payments, cash retention payments, relocation allowances and phone allowances. 5 Long service leave accrued and/or utilised during the year. 6 The accounting fair value attributed to each deferred STI and retention award is spread over the relevant service period. More detail on equity valuations can be found in Sections 8.2 and 8.3. 7 The accounting fair value attributed to each LTI award is spread over the relevant service period. More detail on equity val uations can be found in Sections 8.2 and 8.3. Under accounting standards, LTI expenses continue to be recorded even where those aw ards fail to meet their respective TSR hurdles and thus lapse. This was the case in respect to all KMP LTI awards tested against TSR hurdles to date. KMP LTI awards that were tested against their respective TSR hurdles and failed in periods to 30 June 2025 were cancelled during the year, resulting in a one- off acceleration of future expenses related to these awards; Andrew Stannard’s cancellation expense of $244,963 is not disclosed in the table above. 8 Sum of preceding columns. 9 Jeff Peters is exempt from superannuation payments under s27(d) of the Superannuation Guarantee (Administration) Act 1992. He commenced on 8 January 2024; therefore, 2024 values are pro -rated for the period 8 January to 30 June 2024. 10 James Simpson was a non-executive director for the period 24 November 2024 to 2 March 2025. The amounts shown under cash salary and fees reflect his non-executive director fees plus statutory superannuation for that period, and his salary plus statutory s uperannuation for the period 3 March to 30 June 2025. 11 Totals for 2024 include individuals who are not KMP in 2025 and are therefore not individually disclosed in this table. For personal use only
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Remuneration Report Platinum Asset Management Limited Annual Financial Report 37 8.2 VALUATIONS FOR KMP EQUITY HOLDINGS This section sets out the inputs and considerations for valuing equity allocations to KMP. Valuation inputs for awards made during 2025 are detailed in Table 16; valuation inputs for prior year awards are detailed in Table 17. Table 16. Valuation inputs for 2025 equity awards AWARD PERFORMANCE CONDITION(S) GRANT DATE ISSUE DATE FAIR VALUE1 $ PERFORMANCE ASSESSMENT DATE DEFERRAL PERIOD END DATE EXPIRY DATE FY24 STI Service 30/08/24 30/08/24 0.95 30/08/28 30/08/28 30/08/33 CEO sign-on Service 12/11/24 15/05/25 1.33 08/01/28 08/01/28 08/01/33 1 The fair value for FY24 STI and the CEO sign-on is based on a volume-weighted average price at which PTM shares were traded on the ASX over the seven trading days prior to the grant date. Table 17. Valuation inputs for prior year equity awards AWARD PERFORMANCE CONDITION(S) GRANT DATE FAIR VALUE1 $ PERFORMANCE ASSESSMENT DATE DEFERRAL PERIOD END DATE EXPIRY DATE FY23 STI Service 20/06/23 1.69 20/06/27 20/06/27 20/06/32 FY22 STI Service 20/06/22 1.70 20/06/26 20/06/26 20/06/31 FY21 STI Service 20/06/21 4.89 20/06/25 20/06/25 20/06/30 FY20 STI Service 20/06/20 3.73 20/06/24 20/06/24 20/06/20 FY19 STI Service 20/06/19 4.60 20/06/23 20/06/23 20/06/28 FY18 STI Service 20/06/18 6.04 20/06/22 20/06/22 20/06/27 FY17 STI Service 20/06/17 4.64 20/06/21 20/06/21 20/06/26 FY23 LTI Service and relative TSR 15/11/23 0.51 30/06/24 (25%) 30/06/25 (25%) 30/06/26 (25%) 30/06/27 (25%) 30/06/31 30/06/36 FY22 LTI Service and relative TSR 16/11/22 1.58 30/06/23 (25%) 30/06/24 (25%) 30/06/25 (25%) 30/06/26 (25%) 30/06/30 30/06/35 1 The fair value for STI awards is based on a volume-weighted average price at which PTM shares were traded on the ASX over the seven trading days prior to the grant date. The fair value of the FY23 LTI award was estimated using a Monte Carlo model with exp ected volatility of 35%, expected dividend yield of 8.2% and risk-free rate of 4.2%. The fair value of the FY22 LTI award was estimated using a Monte Carlo model with expected volatility of 35%, expected dividend yield of 7.2% and risk-free rate of 3.1%. For personal use only
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Remuneration Report Platinum Asset Management Limited Annual Financial Report 38 8.3 KMP - EQUITY HOLDINGS AND MOVEMENTS Table 18 details the number and value of all equity awards granted to Executive KMP as part of their remuneration during 2025. It also shows the number and value of prior year awards that vested or were forfeited by Executive KMP and the movement in ordinary shareholdings. Table 19 details the movement in ordinary shareholdings held by Non-executive KMP during 2025. NAME AWARD OPENING BALANCE AT 1 JULY 2024 RIGHTS GRANTED GRANT DATE VALUE1 RIGHTS VESTED DATE VESTED VALUE2 RIGHTS LAPSED / FORFEITED DATE LAPSED / FORFEITED VALUE3 CLOSING BALANCE AT 30 JUNE 2025 VALUE AT 30 JUNE 20254 VESTED DURING THE YEAR # # DATE $ # DATE $ # DATE $ # $ % Jeff Peters Sign on - 1,127,820 12/11/24 1,500,000 - - - - - - 1,127,820 518,797 0% FY24 STI - 249,213 30/08/24 237,500 - - - - - - 249,213 114,638 0% Andrew Stannard FY24 STI - 289,218 30/08/24 275,625 - - - - - - 289,218 133,040 0% FY23 LTI 223,880 298,506 15/11/23 450,000 - - - (74,626) 30/06/25 (34,328) 149,254 68,657 0% FY23 STI 147,495 147,495 20/06/23 250,000 - - - - - - 147,495 67,848 0% FY22 LTI 134,261 268,521 16/11/22 450,000 - - - (67,130) 30/06/25 (30,880) 67,131 30,880 0% FY22 STI 147,501 147,501 20/06/22 250,000 - - - - - - 147,501 67,850 0% FY21 STI 51,154 51,154 20/06/21 250,000 51,154 20/06/25 24,042 - - - 51,154 23,531 100% FY20 STI 40,215 40,215 20/06/20 150,000 40,215 20/06/24 43,030 - - - 40,215 18,499 0% FY19 STI 32,609 32,609 20/06/19 150,000 32,609 20/6/23 55,435 - - - 32,609 15,000 0% FY18 STI 24,835 24,835 20/06/18 150,000 24,835 20/06/22 42,468 - - - 24,835 11,424 0% FY17 STI 21,552 21,552 20/06/17 100,000 21,552 20/06/21 106,467 - - - 21,552 9,914 0% 1 Based on the award face value at grant date. 2 Based on closing share price on the date of vesting. 3 Based on closing share price on date of forfeit. 4 Based on the closing 30 June 2025 share price. For personal use only
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Remuneration Report Platinum Asset Management Limited Annual Financial Report 39 Table 19. Shares held by KMP during 2025 NAME POSITION OPENING BALANCE AT 1 JULY 2024 COMMENCED BEING KMP PURCHASES / (SALES) CLOSING BALANCE AT 30 JUNE 2025 CURRENT NON-EXECUTIVE KMP Guy Strapp Chair & Non-Executive Director 100,000 - - 100,000 Anne Loveridge AM Non-Executive Director 50,000 - - 50,000 Philip Moffit Non-Executive Director 50,000 - - 50,000 Rachel Grimes AM1 Non-Executive Director - - 50,000 50,000 FORMER NON-EXECUTIVE KMP Brigitte Smith2 Non-Executive Director 84,000 - - n/a CURRENT EXECUTIVE KMP Jeff Peters Chief Executive Officer - - - - Andrew Stannard Finance Director - - - - James Simpson3 Executive Director - 9,985,741 (3,485,741) 6,500,000 1 Rachel Grimes AM commenced as a KMP on 2 September 2024. 2 Brigitte Smith ceased as a KMP on 14 November 2024. 3 James Simpson commenced as KMP on 12 November 2024. He was a Non- executive Director for the period 12 November 2024 to 2 March 2025 and has been an Executive Director since 3 March 2025. 8.4 KMP - LOANS No loans were provided to KMP or their related parties during the year or as at the date of this report. 8.5 KMP - OTHER TRANSACTIONS No other transactions were made by KMP or their related parties during the year or as at the date of this report. For personal use only
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A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Ernst & Young 200 George Street Sydney NSW 2000 Australia GPO Box 2646 Sydney NSW 2001 Tel: +61 2 9248 5555 Fax: +61 2 9248 5959 ey.com/au Auditor’s independence declaration to the directors of Platinum Asset Management Limited As lead auditor for the audit of the financial report of Platinum Asset Management Limited for the financial year ended 30 June 2025, I declare to the best of my knowledge and belief, there have been: a. No contraventions of the auditor independence requirements of theCorporations Act 2001 in relation to the audit; b. No contraventions of any applicable code of professional conduct in relation to the audit; and c. No non-audit services provided that contravene any applicable code of professional conduct in relation to the audit. This declaration is in respect of Platinum Asset Management Limited and the entities it controlled during the financial year. Ernst & Young Rita Da Silva Partner 27 August 2025 40 For personal use only
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Contents Platinum Asset Management Limited Annual Financial Report 41 Page Consolidated statement of profit or loss and other comprehensive income 42 Consolidated statement of financial position 43 Consolidated statement of changes in equity 44 Consolidated statement of cash flows 45 Consolidated entity disclosure statement 78 Directors' declaration 79 Independent auditor's report to the members of Platinum Asset Management Limited 80 GENERAL INFORMATION The financial statements cover Platinum Asset Management Limited as a consolidated entity consisting of Platinum Asset Management Limited (the “Company”) and the entities it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars, which is the Company’s functional and presentation currency. The Company is a listed public company limited by shares, incorporated and domiciled in Australia. The Company’s registered office and principal place of business is: Level 8, 7 Macquarie Place Sydney NSW 2000 A description of the nature of the consolidated entity's operations and its principal activities are included in the Directors' report, which is not part of the financial statements. The financial statements were authorised for issue, in accordance with a resolution of Directors, on 27 August 2025. The Directors have the power to amend and reissue the financial statements. For personal use only
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Consolidated statement of profit or loss and other comprehensive income FOR THE YEAR ENDED 30 JUNE 2025 Platinum Asset Management Limited Annual Financial Report 42 CONSOLIDATED NOTE 2025 $’000 2024 $’000 Revenue Management fees 125,774 174,344 Performance fees 7 - Total revenue 3 125,781 174,344 Other income Interest 8,624 9,385 Distributions and dividends 3 1,888 2,264 Share of profit/(loss) of associates net of impairment and other 6 4,350 (581) Gains/(losses) on financial assets at fair value through profit or loss 278 (50) Foreign exchange gains/(losses) on overseas bank accounts (26) (382) Total revenue and other income 140,895 184,980 Expenses Employee expenses • Salaries and employee-related expenses 46,210 53,048 • Amortisation of share-based payments 17 40,364 25,578 Fund administration 3,339 6,075 Business development 4,730 7,040 Technology, research and data 6,751 7,484 Legal, compliance and other professional 5,200 5,821 Depreciation of right-of-use assets 9 2,094 2,043 Depreciation of fixed assets 9 1,476 1,074 Mail house, periodic reporting and share registry 1,198 1,233 Insurance 1,058 1,146 Rent and other occupancy 15 138 430 Finance costs on lease liabilities 614 433 Other 171 431 Total expenses 113,343 111,836 Profit before income tax expense 27,552 73,144 Income tax expense 7 21,295 28,009 Profit after income tax expense 6,257 45,135 Other comprehensive income Exchange rate translation impact of foreign subsidiaries and associates (69) 382 Other comprehensive income for the year, net of tax (69) 382 Total comprehensive income for the year 6,188 45,517 Profit after income tax expense for the year is attributable to: Owners of Platinum Asset Management Limited 6,266 45,011 Non-controlling interests (9) 124 6,257 45,135 Basic earnings per share (cents per share) 8 1.12 7.95 Diluted earnings per share (cents per share) 8 1.09 7.79 The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes. For personal use only
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Consolidated statement of financial position AS AT 30 JUNE 2025 Platinum Asset Management Limited Annual Financial Report 43 Assets NOTE 2025 $’000 2024 $’000 Current assets Cash and cash equivalents 72,371 120,408 Term deposits 49,876 129,876 Trade and other receivables 12 12,132 17,496 Income tax receivable - 2,654 Total current assets 134,379 270,434 Non-current assets Equity investments in associates 6 31,950 27,600 Financial assets at fair value through profit or loss 10 69,587 33,414 Fixed assets 9 1,933 2,111 Right-of-use assets 9 9,596 11,690 Net deferred tax assets 7 1,947 958 Total non-current assets 115,013 75,773 Total assets 249,392 346,207 Liabilities Current liabilities Trade and other payables 14 3,422 5,825 Employee benefits 13 18,913 8,643 Lease liabilities 15 1,887 1,708 Income tax payable 1,364 280 Total current liabilities 25,586 16,456 Non-current liabilities Provisions 13 2,514 1,547 Employee benefits 13 692 766 Lease liabilities 15 8,752 10,639 Total non-current liabilities 11,958 12,952 Total liabilities 37,544 29,408 Net assets 211,848 316,799 Equity Issued capital 18 698,302 696,116 Reserves 19 (498,471) (530,700) Retained profits 11,954 148,818 Total equity attributable to the owners of Platinum Asset Management Limited 211,785 314,234 Non-controlling interests 63 2,565 Total equity 211,848 316,799 The above consolidated statement of financial position should be read in conjunction with the accompanying notes. For personal use only
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Consolidated statement of changes in equity FOR THE YEAR ENDED 30 JUNE 2025 Platinum Asset Management Limited Annual Financial Report 44 ISSUED CAPITAL $'000 RESERVES $'000 RETAINED PROFITS $'000 NON- CONTROLLING INTERESTS1 $'000 TOTAL EQUITY $'000 Consolidated Balance at 1 July 2024 696,116 (530,700) 148,818 2,565 316,799 Profit after income tax expense for the year - - 6,265 (9) 6,256 Other comprehensive income Exchange rate translation impact of foreign subsidiaries and associates - (69) - - (69) Total comprehensive income for the year - (69) 6,265 (9) 6,187 Treasury shares acquired (net) (Note 18) 2,186 - - - 2,186 Share-based payments reserve - 32,298 - - 32,298 Dividends paid - - (143,129) (24) (143,153) Transactions with non-controlling interests - - - (2,469) (2,469) Balance at 30 June 2025 698,302 (498,471) 11,954 63 211,848 1. Includes non-controlling interest in Platinum Global Transition Fund (Quoted Managed Hedge Fund) until 21 October 2024 and non-controlling interest in GW&K Global Small Cap Fund. ISSUED CAPITAL $'000 RESERVES $'000 RETAINED PROFITS $'000 NON- CONTROLLING INTERESTS2 $'000 TOTAL EQUITY $'000 Consolidated Balance at 1 July 2023 702,022 (551,440) 177,589 1,360 329,531 Profit after income tax expense for the year - - 45,011 124 45,135 Other comprehensive income Exchange rate translation impact of foreign subsidiaries and associates - 299 - - 299 Exchange rate translation impact of deconsolidation of foreign subsidiaries and associates - 83 - - 83 Total comprehensive income for the year - 382 45,011 124 45,517 Treasury shares acquired (net) (Note 18) (341) - - - (341) Share-based payments reserve - 20,358 - - 20,358 Shares bought back on-market (5,565) - - - (5,565) Dividends paid - - (73,782) - (73,782) Transactions with non-controlling interests - - - 1,081 1,081 Balance at 30 June 2024 696,116 (530,700) 148,818 2,565 316,799 2. Includes non-controlling interest in Platinum Global Transition Fund (Quoted Managed Hedge Fund) . The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes. For personal use only
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Consolidated statement of cash flows FOR THE YEAR ENDED 30 JUNE 2025 Platinum Asset Management Limited Annual Financial Report 45 NOTE CONSOLIDATED 2025 $’000 2024 $’000 Cash flows from operating activities Receipts from operating activities 129,449 182,320 Payments for operating activities (57,885) (81,576) Finance costs paid (614) (433) Income taxes paid (20,443) (33,357) Income tax refund received 979 1,605 Net cash from operating activities 16 51,486 68,559 Cash flows from investing activities Interest received 9,121 8,840 Proceeds on maturity of term deposits 219,753 149,753 Purchase of term deposits (139,753) (179,753) Payments for purchases of fixed assets (1,298) (1,594) Proceeds from sale of financial assets 57,659 49,111 Payments for purchases of financial assets (93,649) (21,793) Proceeds from sale of investments in associates 6(c) - 53,322 Payments of purchases of investments in associates 6(c) - (8,561) Dividends and distributions received 1,880 2,276 Net cash provided by/(used in) investing activities 53,713 51,601 Cash flows from financing activities Dividends paid (143,129) (73,782) Payments for purchases of treasury shares (5,880) (5,562) Payment of lease liability principal (1,708) (1,724) Proceeds from/(payment for) units issued/(redeemed) from non-controlling interests (2,493) 1,080 Shares bought back on-market 18 - (5,565) Net cash used in financing activities (153,210) (85,553) Net movement in cash and cash equivalents (48,011) 34,607 Cash and cash equivalents at the beginning of the year 120,408 86,183 Effects of exchange rate changes on cash and cash equivalents (26) (382) Cash and cash equivalents at the end of the year 72,371 120,408 The above consolidated statement of cash flows should be read in conjunction with the accompanying notes. For personal use only
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Notes to the financial statements Platinum Asset Management Limited Annual Financial Report 46 NOTE 1. CORPORATE INFORMATION Platinum Asset Management Limited (the “Company”) is a for-profit entity that is incorporated and domiciled in Australia. The Company is listed on the Australian Securities Exchange (ASX code: PTM). The principal activities of the Company and its subsidiaries (the “Group”) are described in Note 4 segment information. This financial report was authorised for issue in accordance with a resolution of the Directors on 27 August 2025 and Directors have the power to amend and reissue the financial report. NOTE 2. MATERIAL ACCOUNTING POLICIES Basis of preparation The consolidated financial statements are general purpose financial statements which have been prepared in accordance with Australian Accounting Standards adopted by the Australian Accounting Standards Board (“AASB”) and the Corporations Act 2001. The consolidated financial statements comply with International Financial Reporting Standards (“IFRS”) adopted by the International Accounting Standards Board (“IASB”). The consolidated financial statements are presented in Australian Dollars, which is also the Company’s functional currency. All values are rounded to the nearest thousand dollars ($’000), in accordance with ASIC Corporations (Rounding in Financial/Directors' Reports) Instrument 2016/191, unless otherwise stated. The consolidated financial statements have been prepared on a historical cost basis, except for the revaluation of certain financial assets at fair value through profit or loss. The material accounting policies have been included in the relevant notes to which the policy relates and have been consistently applied to all financial years presented in these consolidated financial statements. Critical accounting judgements, estimates and assumptions The preparation of the consolidated financial statements requires management to make judgements, estimates and assumptions. The areas where assumptions and estimates are significant to the consolidated financial statements are outlined after the relevant accounting policy in the relevant notes. In the process of applying the Group’s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the consolidated financial statements. The accounting impact of the treatment of the products that Platinum Investment Management Limited (“PIML”) has seeded or invested in, is the most critical accounting judgement, estimate or assumption within these consolidated financial statements. This includes the assessment of whether the Group has significant influence or control of those entities and impacts on how their financial results are presented within these financial statements and the valuation of these investments (including impairment assessment). Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which depends on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the right, volatility and dividend yield and making assumptions about service period completion. The Group initially measures the fair value of these share rights using a Monte Carlo simulation option pricing model. Accounting standards and interpretations not yet mandatory or early adopted during the year AASB 18 Presentation and Disclosure in Financial Statements will replace AASB 101 Presentation of Financial Statements for annual reporting periods beginning on or after 1 January 2027, with earlier application permitted. The Group is assessing the impact and the appropriate application date. There are no other standards that are not yet effective that are expected to have a material impact on the Group in the current or future reporting periods and on foreseeable future transactions. The Group has not early adopted any standards, interpretations or amendments that have been issued but are not yet effective. Accounting Standards adopted during the year There are no standards that are effective for the first time in the current period that have a material impact on the Group. For personal use only
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Notes to the financial statements Platinum Asset Management Limited Annual Financial Report 47 NOTE 3. REVENUE & OTHER INCOME The Group derived revenue (management and performance fees) from Australian and offshore investment vehicles and mandates as follows: 2025 $’000 2024 $’000 Revenue breakdown by geographic region Australia 124,830 172,950 Offshore: United States, Ireland and Cayman Islands 951 1,394 125,781 174,344 2025 $’000 2024 $’000 Distributions and dividends is comprised of: Dividends received from equity securities held by Platinum Global Transition Fund (Quoted Managed Hedge Fund) (“PGTX”) 9 219 Dividend received from Platinum Asia Investments Limited (“PAI”) 450 1,200 Dividend received from equity securities held by Platinum Arrow Trust (“PAT”) 1,152 835 Dividend received from equity securities held by GW&K Global Small Cap Fund (“GW&K”) 127 - Distribution received from investment in the Platinum Trust funds 150 10 Total distributions and dividends 1,888 2,264 ACCOUNTING POLICY Revenue is measured at an amount the Group expects to be entitled to receive in exchange for services provided to clients and recognised as performance obligations to the client are satisfied. Management fees are recognised over the period the service is provided. Management fees are based on a percentage of net assets/portfolio value of the fund or mandate and calculated in accordance with the relevant investment management agreement or constitution. The majority of management fees were derived from the Platinum Trust funds C Class. The management fee for this Class was calculated at 1.35% per annum of each fund's daily net asset value. Performance fees are a form of variable consideration. Performance fees are recognised as revenue only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Other income is recognised if it meets the criteria below: • Interest income: recognised in the consolidated statement of profit or loss and other comprehensive income based on the effective interest method. • Distributions: recognised when the Group becomes entitled to the income. • Dividends: brought to account on the applicable ex-dividend date. • Net gains/(losses) on financial assets at fair value through profit and loss: relates to net gains/(losses) on financial assets classified and measured as at fair value through profit or loss. For personal use only
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Notes to the financial statements Platinum Asset Management Limited Annual Financial Report 48 NOTE 4. SEGMENT INFORMATION The Group is organised into two main operating segments being: • funds management: through the generation of management and performance fees from Australian investment vehicles, its US-based investment mandates and Platinum World Portfolios Plc. (“PWP”)* and associated costs; and • investments and other: through the Group’s investment in the (a) ASX listed, PAI (b) PWP* (c) unlisted Platinum Trust funds and (d) other investments and seed funds. Also included in this category are Australian dollar term deposits as well as associated interest derived from these. The segment financial results, segment assets and liabilities are disclosed below: 30 JUNE 2025 30 JUNE 2024 FUNDS MANAGEMENT INVESTMENTS AND OTHER TOTAL FUNDS MANAGEMENT INVESTMENTS AND OTHER TOTAL $’000 $’000 $’000 $’000 $’000 $’000 Revenue and other income Management and performance fees 125,781 - 125,781 174,344 - 174,344 Interest 5,894 2,730 8,624 4,283 5,102 9,385 Net gains/(losses) on financial assets and equity in associates - 4,628 4,628 - (631) (631) Distributions and dividends - 1,888 1,888 - 2,264 2,264 Foreign exchange (losses)/ gains on overseas bank accounts - (26) (26) - (382) (382) Total revenue and other income/(loss) 131,675 9,220 140,895 178,627 6,353 184,980 Expenses 113,337 6 113,343 111,296 540 111,836 Profit/(loss) before income tax expense/(benefit) 18,338 9,214 27,552 67,331 5,813 73,144 Income tax expense/(benefit) 18,531 2,764 21,295 26,265 1,744 28,009 Profit/(loss) after income tax expense/(benefit) (193) 6,450 6,257 41,066 4,069 45,135 Other comprehensive income/(loss) (69) - (69) (12) 394 382 Total comprehensive income/(loss) (262) 6,450 6,188 41,054 4,463 45,517 Total assets 78,221 171,171 249,392 74,427 271,780 346,207 Total liabilities 37,544 - 37,544 29,389 19 29,408 Net assets 40,677 171,171 211,848 45,038 271,761 316,799 * PWP redeemed effective 29 April 2024. ACCOUNTING POLICY Operating segments are presented using the 'management approach', where the information presented is on the same basis as the internal reports provided to the Chief Executive Officer (“CEO”). The CEO is responsible for the allocation of resources to operating segments and assessing their performance. For personal use only
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Notes to the financial statements Platinum Asset Management Limited Annual Financial Report 49 NOTE 5. GROUP INFORMATION The consolidated financial statements of the Group include: Name Principal place of business/ Country of incorporation Tax Residency Ownership interest 2025 2024 % % McRae Pty Limited Australia Australian 100 100 Platinum Asset Pty Limited Australia Australian 100 100 Platinum Investment Management Limited (“PIML”) Australia Australian 100 100 Platinum Employee Incentive Trust1 Australia Australian 100 100 Platinum GP Pty Limited Australia Australian 100 100 Platinum Arrow Trust Australia Australian 100 100 GW&K Global Small Cap Fund2 Australia Australian 99.8 - Platinum UK Asset Management Limited United Kingdom Foreign 100 100 Platinum Global Opportunities Fund LP United States of America Foreign 100 100 Platinum Asia Ex-Japan Opportunities Fund LP United States of America Foreign 100 100 Platinum Japan Opportunities Fund LP United States of America Foreign 100 100 Platinum Europe Opportunities Fund LP United States of America Foreign 100 100 Platinum Global Opportunities Fund LP United States of America Foreign 100 100 Platinum Global Transition Fund (Quoted Managed Hedge Fund)3 Australia Australian - 81 Platinum Management Malta Limited4 Malta Foreign - 100 Platinum Asia Ex-Japan Opportunities Master Fund Ltd5 Cayman Islands Foreign - 100 Platinum Asia Ex-Japan Opportunities Fund Ltd5 Cayman Islands Foreign - 100 Platinum Global Opportunities Master Fund Ltd5 Cayman Islands Foreign - 100 Platinum Global Opportunities Fund Ltd5 Cayman Islands Foreign - 100 Platinum Europe Opportunities Master Fund Ltd5 Cayman Islands Foreign - 100 Platinum Europe Opportunities Fund Ltd5 Cayman Islands Foreign - 100 Platinum Japan Opportunities Master Fund Ltd5 Cayman Islands Foreign - 100 Platinum Japan Opportunities Fund Ltd5 Cayman Islands Foreign - 100 1. Platinum Employee Incentive Trust holds PTM shares on behalf of employees selected to participate in the Deferred Remuneration Plan , Platinum Partners Plan, and KMP LTI (see Note 17 & Note 18 for further details). 2. GW&K Global Small Cap Fund was launched on 31 March 2025. 3. Platinum Global Transition Fund (Quoted Managed Hedge Fund) was closed in October 2024. 4. Platinum Management Malta Limited was liquidated on 31 July 2024. This did not have a material impact on the Group. 5. Cayman Funds were liquidated in December 2023. This did not have a material impact on the Group. PIML’s participating shares were redeemed in December 2023 but PIML continued to hold 100% of the management shares until the entit ies were dissolved in July 2024. For personal use only
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Notes to the financial statements Platinum Asset Management Limited Annual Financial Report 50 NOTE 5. GROUP INFORMATION (CONTINUED) ACCOUNTING POLICY Foreign currency translation Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the date of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at balance date exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the consolidated statement of profit or loss and other comprehensive income. The results and financial position of foreign operations that have a functional currency different from the presentation currency are translated into the presentation currency as follows: • assets and liabilities for each financial position presented are translated at closing rate at the balance date; • income and expenses included in the consolidated statement of profit or loss and other comprehensive income are translated at average exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions); and • all resulting exchange differences are recognised in other comprehensive income in the foreign currency translation reserve. Where subsidiaries are deconsolidated or disposed of the cumulative amount in the foreign currency translation reserve is reclassified to profit or loss. Principles of consolidation The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Platinum Asset Management Limited as at 30 June 2025 and the results of all subsidiaries for the financial year. Platinum Asset Management Limited and its subsidiaries together are referred to in these consolidated financial statements as the 'consolidated entity' or ‘Group’. Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns, through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the consolidated entity. They are deconsolidated from the date that control ceases. In preparing the consolidated financial statements, all intercompany transactions, balances and unrealised gains arising within the consolidated entity are eliminated in full. NOTE 6. EQUITY INVESTMENTS IN ASSOCIATES The Group’s investment in PAI represents interest in associates which are accounted for using the equity method of accounting. Information relating to this is shown below: (a) Interests in associates ENTITY COUNTRY OF INCORPORATION EQUITY INTEREST % FAIR VALUE $’000 CARRYING AMOUNT $’000 REASON FOR ASSESSMENT OF SIGNIFICANT INFLUENCE 2025 2024 2025 2024 2025 2024 PAI Australia 8.1 8.1 31,950 27,600 31,950 27,600 Ownership interest was 8.1% at 30 June 2025; PIML acts as investment manager (IM) in accordance with an investment management agreement; PIML provides performance and exposure reports to the PAI Board. 31,950 27,600 31,950 27,600 The fair value of PAI reflects the 30 million shares held multiplied by the PAI closing share price at 30 June 2025 of $1.065 (2024: $0.92). The carrying value reflects the Group’s share of each associate’s net assets, applying the equity method, including assessment of any impairment (see Note 6c for further details). For personal use only
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Notes to the financial statements Platinum Asset Management Limited Annual Financial Report 51 NOTE 6. EQUITY INVESTMENTS IN ASSOCIATES (CONTINUED) (b) Associates’ statement of financial position 30 JUNE 2025 TOTAL ASSETS^ $’000 TOTAL LIABILITIES* $’000 NET ASSETS $’000 Associates’ financial position • PAI 435,161 13,425 421,736 Total associates’ statement of financial position 421,736 Group’s share of associate • PAI 35,263 1,088 34,175 • Adjustment for impairment – prior year (3,406) • Adjustment for reversal of impairment – current year 1,181 Total Group’s carrying amount of investment in associate 31,950 30 JUNE 2024 TOTAL ASSETS^ $’000 TOTAL LIABILITIES* $’000 NET ASSETS $’000 Associates’ financial position • PAI 383,098 910 382,188 Total associates’ statement of financial position 382,188 Group’s share of associate • PAI 31,080 74 31,006 • Adjustment for impairment – current year (3,406) Total Group’s carrying amount of investment in associate 27,600 ^ Associates’ total assets include non-current assets of nil (2024: $1,771,000). * Associates’ total liabilities include non-current liabilities of $11,803,000 (2024: nil). For personal use only
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Notes to the financial statements Platinum Asset Management Limited Annual Financial Report 52 NOTE 6. EQUITY INVESTMENTS IN ASSOCIATES (CONTINUED) (c) Carrying amount of investment using the equity method 2025 $’000 2024 $’000 Opening balance 27,600 71,696 Share of associates’ total profit/(loss) (see Note 6d) 3,619 5,264 Dividends paid and dilution of unitholding (see Note 6d) (450) (1,193) Purchase of Platinum World Portfolios Plc (“PWP”)* units - 8,561 Redemption of PWP units - (53,322) Adjustment for impairment of PAI (see Note 6d) 1,181 (3,406) Closing balance (see Note 6a) 31,950 27,600 (d) Associates’ net income 30 JUNE 2025 PAI $’000 PWP* $’000 TOTAL $’000 Associates’ net income Total investment income/(loss) 66,634 - 66,634 Total expenses (6,807) - (6,807) Profit/(loss) before tax 59,827 - 59,827 Income tax expense (15,150) - (15,150) Total profit/(loss) after tax 44,677 - 44,677 Group’s share of associate Total investment income/(loss) 5,397 - 5,397 Total expenses (551) - (551) Profit/(loss) before tax 4,846 - 4,846 Income tax expense (1,227) - (1,227) Share of associates’ total profit/(loss) 3,619 - 3,619 Dividend/distribution received and dilution of unitholding (450) - (450) Reversal of prior period impairment 1,181 - 1,181 Share of profit/(loss) of associates net of impairment and other 4,350 - 4,350 * PWP redeemed effective 29 April 2024. For personal use only
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Notes to the financial statements Platinum Asset Management Limited Annual Financial Report 53 NOTE 6. EQUITY INVESTMENTS IN ASSOCIATES (CONTINUED) ASSOCIATES’ NET INCOME (CONTINUED) 30 JUNE 2024 PAI $’000 PWP* $’000 TOTAL $’000 Associates’ net income Total investment income/(loss) 24,132 8,452 32,584 Total expenses (5,547) (1,969) (7,516) Profit/(loss) before tax 18,585 6,483 25,068 Income tax expense (4,862) - (4,862) Total profit/(loss) after tax 13,723 6,483 20,206 Group’s share of associate Total investment income/(loss) 1,957 5,411 7,368 Total expenses (450) (1,260) (1,710) Profit/(loss) before tax 1,507 4,151 5,658 Income tax expense (394) - (394) Share of associates’ total profit/(loss) 1,113 4,151 5,264 Dividend/distribution received and dilution of unitholding (1,193) - (1,193) Transfer from foreign currency translation reserve - (1,246) (1,246) Adjustment for impairment of PAI (3,406) - (3,406) Share of profit/(loss) of associates net of impairment and other (3,486) 2,905 (581) * PWP redeemed effective 29 April 2024. For personal use only
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Notes to the financial statements Platinum Asset Management Limited Annual Financial Report 54 NOTE 6. EQUITY INVESTMENTS IN ASSOCIATES (CONTINUED) ACCOUNTING POLICY Investments in associates are accounted for using the equity method. The share of profit recognised under the equity method is the consolidated entity’s share of the associate’s profit or loss based on the ownership interest held. Associates are entities in which the consolidated entity, as a result of its voting rights and other factors, has significant influence, but not control or joint control, over its financial and operating policies. Investments in associates are carried at the lower of the equity accounted carrying amount and the recoverable amount. When the consolidated entity’s share of losses exceeds the carrying amount of the equity accounted investment (including assets that form part of the net investment in the associate), the carrying amount is reduced to nil and recognition of further losses is discontinued except to the extent that the consolidated entity has obligations in respect of the associate. Dividends from associates represent a return on the consolidated entity’s investment and, as such, are applied as a reduction to the carrying value of the investment. Unrealised gains arising from transactions with equity accounted investments are eliminated against the investment in the associate to the extent of the consolidated entity’s interest in the associate. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment. Other movements in associates’ reserves are recognised applying the equity method. Critical accounting judgements, estimates and assumptions Assessment of significant influence: At 30 June 2025, the consolidated entity was assessed as having significant influence over PAI, as a result of its direct investment and investment management activities and other factors outlined in Note 6a. In assessing impairment of its investment in associate, the consolidated entity considers whether there is objective evidence that its net investment in the associate is impaired, including factors such as significant or prolonged decline in the fair value of the investment below its cost. In assessing reversals of impairment losses previously recognised, the consolidated entity considers whether there are favourable events or changes in circumstance, since the impairment loss was recognised, that would indicate that the impairment loss no longer exists or may have decreased. For personal use only
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Notes to the financial statements Platinum Asset Management Limited Annual Financial Report 55 NOTE 7. INCOME TAX (a) Income tax expense The income tax expense attributable to profit comprises: 2025 $’000 2024 $’000 Current tax 21,580 30,408 Deferred tax (285) (2,399) Income tax expense 21,295 28,009 Numerical reconciliation of income tax expense: Profit before income tax expense 27,552 73,144 Tax at the statutory tax rate of 30% 8,266 21,943 Tax effect amounts which are not deductible/(taxable) in calculating taxable income: • Non-taxable losses/(gains) on investments 1,806 113 • Share-based payments 10,999 6,593 • Other non-deductible expenses 210 189 • Prior year and other adjustments 1,449 8 • Franking credits and foreign tax credit received (1,435) (825) • Tax rate differential on offshore business income - (12) Income tax expense 21,295 28,009 (b) Non-current (assets)/liabilities – net deferred tax (assets)/liabilities: 2025 $’000 2024 $’000 Deferred tax (assets)/liabilities comprise temporary differences attributable to: • Unrealised foreign exchange gains/(losses) on cash 12 7 • Share-based payments 702 2,303 • Employee provisions (2,249) (2,145) • Unrealised gains/(losses) on investments 794 (148) • Capital expenditure on fixed assets and lease liabilities not immediately deductible (845) (555) • Expense accruals (361) (420) Net deferred tax (assets)/liabilities (1,947) (958) The net deferred tax assets figure is comprised of $3,455,000 (2024: $3,268,000) of deferred tax assets and $1,508,000 (2024: $2,310,000) of deferred tax liabilities. The deferred tax assets that will be recovered or settled within 12 months are estimated to be $2,610,000 at 30 June 2025 (2024: $2,565,000). Deferred tax benefit of $705,000 (2024: deferred tax liability of $90,000) recorded in the share-based payments reserve and foreign currency translation reserve within equity. For personal use only
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Notes to the financial statements Platinum Asset Management Limited Annual Financial Report 56 NOTE 7. INCOME TAX (CONTINUED) ACCOUNTING POLICY Current tax The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary differences, unused tax losses and the adjustment recognised for prior periods, where applicable. Deferred tax Deferred tax is accounted for in respect of temporary differences between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which the asset can be utilised. Tax consolidation The Company and its wholly-owned Australian controlled entities are part of a tax consolidated group under Australian tax legislation. The Company is the head entity of the tax-consolidated group. Critical accounting judgements, estimates and assumptions Recovery of deferred tax assets: Deferred tax assets are recognised for deductible temporary differences only if the consolidated entity considers it is probable that future taxable amounts will be available to utilise those temporary differences and losses. NOTE 8. EARNINGS PER SHARE 2025 $’000 2024 $’000 Profit after income tax attributable to the owners of Platinum Asset Management Limited 6,266 45,011 NUMBER NUMBER Weighted average number of ordinary shares used in calculating basic earnings per share 558,333,914 566,279,352 Adjustment for deferred rights and performance rights 16,182,672 11,717,636 Weighted average number of ordinary shares used in calculating diluted earnings per share 574,516,586 577,996,988 CENTS CENTS Basic earnings per share 1.12 7.95 Diluted earnings per share 1.09 7.79 ACCOUNTING POLICY Basic earnings per share Basic earnings per share is calculated by dividing the profit attributable to the owners of Platinum Asset Management Limited, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year. The weighted average number of ordinary shares used to calculate basic (and diluted) earnings per share does not include treasury shares. Diluted earnings per share Diluted earnings per share adjusts the weighted average number of shares used to determine basic earnings per share to take into account any potential ordinary shares that have a dilutive impact. For personal use only
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Notes to the financial statements Platinum Asset Management Limited Annual Financial Report 57 NOTE 9. DEPRECIABLE ASSETS 2025 $’000 2024 $’000 Fixed assets – at cost 8,384 7,086 Less: Accumulated depreciation (6,451) (4,975) 1,933 2,111 Right-of-use asset – at cost 21,460 21,460 Less: Accumulated depreciation (11,864) (9,770) 9,596 11,690 Reconciliations Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below: FIXED ASSETS $’000 RIGHT-OF-USE ASSET $’000 Balance at 1 July 2023 1,664 2,914 • Additions 1,590 10,819 • Disposal (69) - • Depreciation expense (1,074) (2,043) Balance at 30 June 2024 2,111 11,690 • Additions 1,298 - • Depreciation expense (1,476) (2,094) Balance at 30 June 2025 1,933 9,596 ACCOUNTING POLICY Fixed assets are stated at historical cost less depreciation. Fixed assets (other than in-house software and applications in the course of construction and development) are depreciated over their estimated useful lives of 2.5 to 8 years using the diminishing balance method. The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date. A fixed asset is derecognised upon disposal or when there is no future economic benefit to the consolidated entity. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss. Right-of-use assets are measured at cost comprising the amount of the measurement of the lease liability adjusted for any lease payments made before commencement date. Right-of-use assets are depreciated over the lease term on a straight-line basis. For personal use only
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Notes to the financial statements Platinum Asset Management Limited Annual Financial Report 58 NOTE 10. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS 2025 $’000 2024 $’000 Platinum Trust fund investments 222 214 Securities held by the seeded investments1 63,196 26,963 Unlisted shares 6,169 6,237 69,587 33,414 1 Platinum made an additional $26 million investment in Platinum Arrow Trust and invested $25 million in GW&K Global Small Cap Fund during the year. Platinum Global Transition Fund (Quoted Managed Hedge Fund) was closed and fully redeemed effective 21 October 2024. ACCOUNTING POLICY The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the consolidated entity’s process for managing them. The consolidated entity’s investments are measured at fair value through profit or loss. The consolidated entity has applied AASB 13: Fair Value Measurement as the basis to value its financial assets at fair value through profit or loss. AASB 13 defines fair value as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date”. The standard prescribes that the most representative price within the bid-ask spread should be used for valuation purposes. With respect to the consolidated entity, the last-sale or “last” price is the most representative price within the bid-ask spread, because it represents the price that the unit last changed hands from seller to buyer. The fair value includes the impact of the 30 June distribution for the Platinum Trust Funds. Unlisted shares are valued based on the most recent capital raising activity. NOTE 11. FAIR VALUE MEASUREMENT Fair value hierarchy AASB 13: Fair Value Measurement requires the consolidated entity to classify those assets measured at fair value using the following fair value hierarchy model: (i) quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1); (ii) inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly (as prices) or indirectly (derived from prices) (level 2); and (iii) inputs for the assets or liabilities that are not based on observable market data (unobservable inputs) (level 3). The investment in PAI may not be measured at fair value because is classified as an equity investment in associate. If it was to be measured at fair value, PAI would be classified as level 1. Further details of the fair value of investments in associates is provided in Note 6. For personal use only
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Notes to the financial statements Platinum Asset Management Limited Annual Financial Report 59 NOTE 11. FAIR VALUE MEASUREMENT (CONTINUED) Fair value hierarchy (continued) The following table analyses within the fair value hierarchy model, the consolidated entity's assets and liabilities, measured or disclosed at fair value, using the three-level hierarchy model at 30 June 2025 and 30 June 2024. 2025 LEVEL 1 $’000 LEVEL 2 $’000 LEVEL 3 $’000 TOTAL $’000 Financial assets Securities held by seed funds 60,648 2,548 - 63,196 Unlisted shares - - 6,169 6,169 Platinum Trust fund investments - 222 - 222 60,648 2,770 6,169 69,587 2024 LEVEL 1 $’000 LEVEL 2 $’000 LEVEL 3 $’000 TOTAL $’000 Financial assets Securities held by seed funds 26,860 103 - 26,963 Unlisted shares - - 6,237 6,237 Platinum Trust fund investments - 214 - 214 26,860 317 6,237 33,414 Valuation techniques used to classify assets as level 2 The direct investments in the Platinum Trust funds are valued using their respective net asset values (adjusted for the buy-sell spread) and include the impact of the 30 June distribution. Accordingly, management has assessed the fair value investments as being level 2 investments. Valuation techniques used to classify assets as level 3 Level 3 financial assets consist of: • Investment in unlisted equity investment. The investment is initially recognised at fair value, being the consideration given. After initial recognition, the shareholding continues to be measured at fair value based on the recent transaction price between independent parties. These assets are valued in accordance with a valuation policy established by PIML. Level 3 assets were 3.0% of net assets at 30 June 2025 (2024: 2.0%). Further details related to the level 3 securities are not disclosed, as the amounts are not material to the Group. 2025 $’000 2024 $’000 Opening balance 6,237 6,237 Purchases during the year 1,960 - Gains/(losses) during the year (2,028) - Closing balance 6,169 6,237 For personal use only
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Notes to the financial statements Platinum Asset Management Limited Annual Financial Report 60 NOTE 12. TRADE AND OTHER RECEIVABLES 2025 $’000 2024 $’000 Management fees receivable 8,705 13,033 Prepayments 2,090 2,742 Distribution receivable 18 10 Interest receivable 1,028 1,525 Sundry debtors 291 186 12,132 17,496 Management and performance fees receivable(s) are received between three to 30 days after balance date. ACCOUNTING POLICY Trade receivables represent amounts receivable for services that have been delivered. These amounts are initially recognised at fair value. An analysis is performed at each balance date to measure any expected credit loss. Expected credit losses are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at the original effective interest rate. No material adjustment was required for expected credit losses during the year or prior period. Distributions are recognised when the consolidated entity becomes entitled to the income. NOTE 13. PROVISIONS & EMPLOYEE BENEFITS 2025 $’000 2024 $’000 Current liabilities Annual leave 2,523 2,724 Long service leave 1,767 2,115 Variable and other compensation 14,623 3,804 18,913 8,643 Non-current liabilities Long service leave 692 766 Provision for payroll tax on Deferred Remuneration Plan 2,514 1,547 3,206 2,313 ACCOUNTING POLICY Employee benefit liabilities represents accrued annual and long-service leave entitlements and other incentives (including any provision for estimated staff incentive payments and related on-costs), that are recognised in respect of employee services up to balance date and are measured at the amounts expected to be paid when the liabilities are settled and include related on-costs, such as payroll tax. For personal use only
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Notes to the financial statements Platinum Asset Management Limited Annual Financial Report 61 NOTE 14. TRADE AND OTHER PAYABLES 2025 $’000 2024 $’000 Trade payables 2,834 4,726 GST payable 588 1,099 3,422 5,825 ACCOUNTING POLICY Payables represent amounts owing at balance date. Trade payables relate to services provided to the consolidated entity at balance date, which are unpaid. Due to their general short-term nature, they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 14 to 30 days of being invoiced. NOTE 15. LEASES The Group has entered into lease agreements for the Sydney premise it occupies and pays rent on a monthly basis. Set out below are the carrying amounts of lease liabilities for the Sydney premises and the movements during the period: 2025 $’000 2024 $’000 Balance at 1 July 12,347 3,253 • Exercise of lease extension option - 10,822 • Payments (2,322) (2,161) • Accretion of interest 614 433 Balance at 30 June 10,639 12,347 • Current 1,887 1,708 • Non-current 8,752 10,639 The following amounts are recognised in the statement of profit or loss in respect of leases: 30 JUNE 2025 $’000 30 JUNE 2024 $’000 Rent and other occupancy 138 430 Depreciation of right of use asset 2,094 2,043 Finance costs on lease liabilities 614 433 2,846 2,906 For personal use only
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Notes to the financial statements Platinum Asset Management Limited Annual Financial Report 62 NOTE 15. LEASES (CONTINUED) ACCOUNTING POLICY Assets and liabilities arising from the premises lease are initially measured on a present value basis. Lease liabilities include the net present value of the future lease payments, less any lease incentives receivable. The lease payments used to determine the lease liability were discounted using an estimated incremental borrowing rate of 5.4% at the date of option exercise. If the Group is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset’s useful life. The consolidated entity is exposed to potential future increases in variable lease payments based on an index or rate, which are not included in the lease liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset. Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The lease payments for short-term leases are charged to the consolidated statement of profit or loss and other comprehensive income. NOTE 16. RECONCILIATION OF PROFIT AFTER INCOME TAX TO NET CASH FROM OPERATING ACTIVITIES 2025 $’000 2024 $’000 Profit after income tax expense for the year 6,257 45,135 Adjustments for: • Amortisation of share-based payments 40,364 25,578 • Foreign exchange differences on foreign bank account 26 382 • Distributions and dividends (1,888) (2,264) • Depreciation of fixed assets 1,476 1,074 • Loss on fixed assets disposal - 74 • Depreciation of right-of-use asset 2,094 2,043 • Interest income (8,624) (9,385) • (Gain )/loss on investments (4,602) 630 Movement in operating assets and liabilities: • Movement in trade and other receivables 4,320 7,493 • Movement in income tax payable 3,739 (1,610) • Movement in trade and other payables 8,968 2,097 • Movement in deferred tax assets (780) 1,541 • Movement in deferred tax liabilities (209) (4,029) • Movement in provisions 345 (200) Net cash from operating activities 51,486 68,559 For personal use only
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Notes to the financial statements Platinum Asset Management Limited Annual Financial Report 63 NOTE 17. SHARE-BASED PAYMENTS Deferred Remuneration Plan In June 2016, a “Deferred Bonus Plan” (now known as a “Deferred Remuneration Plan” or “DRP”) was approved by the Nomination & Remuneration Committee of the Company. The main objective of the Deferred Remuneration Plan is to recognise the contributions made by key employees and to retain their skills within the firm. Vesting is conditional on continuous employment for a period of four years from the date of grant. Upon vesting and exercise of the deferred rights, employees will receive ordinary shares in the Company. The deferred rights also carry an entitlement to a dividend equivalent payment. Upon the valid exercise of a deferred right, or deemed exercise, of a deferred right, an eligible employee will be entitled to receive an amount approximately equal to the amount of dividends that would have been paid to the eligible employee had they held the share from the grant date to the date that the deferred rights are exercised. The number of rights granted and the accounting expense for the current and comparative year is shown below. The Platinum Employee Incentive Trust will generally purchase an equivalent number of the Company’s shares on market and will hold these shares until the vesting date (four years from each grant) and subsequent exercise. NUMBER OF DEFERRED RIGHTS 2025 2024 Opening balance 14,156,853 15,289,467 Granted during the year 1 10,030,138 - Forfeited during the year (107,158) (274,442) Vested and exercised (1,490,909) (858,172) Closing balance 22,588,924 14,156,853 Exercisable at the end of the period 2,735,606 2,609,005 1. The grants during the year ended 30 June 2025 relate to the prior year ended 30 June 2024 and were finalised after financial year end to align the staff performance measurement period to the financial year. Long-Term Remuneration Plan The Nomination & Remuneration Committee has determined to not make any further grants under the Platinum Partners Long Term Incentive Plan (“Platinum Partners Plan”). In the current year, no performance rights have been granted (2024: nil performance rights were granted). The PTM Board determined in June 2025 to cancel grants that had tested and failed the TSR hurdles up to and including 30 June 2025, resulting in accelerated share-based payments amortisation these grants. The fourth 25% of the June 2021 Platinum Partners Plan grant was tested against TSR hurdles for the period ended 30 June 2025 and did not vest (2024: the third 25% of this grant was tested against TSR hurdles for the period ended 30 June 2024 and did not vest). The third 25% of the June 2022 Platinum Partners Plan grant and the November 2022 KMP Partner Plan grant was tested against TSR hurdles for the period ended 30 June 2025 and did not vest (2024: The second 25% of these grants tested against TSR hurdles for the period ended 30 June 2024 and did not vest). The second 25% of the June 2023 Platinum Partners Plan grant and the November 2023 KMP Partner Plan grant were tested against TSR hurdles for the period ended 30 June 2025 and did not vest. (2024: The first 25% of these grants tested against TSR hurdles for the period ended 30 June 2024 and did not vest). For personal use only
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Notes to the financial statements Platinum Asset Management Limited Annual Financial Report 64 NOTE 17. SHARE-BASED PAYMENTS (CONTINUED) Long-Term Performance Rights Plan The Nomination & Remuneration Committee approved the Long-Term Performance Rights Plan (“KMP LTI”) in February 2025. The objective of the KMP LTI is to reward senior executive performance and create alignment with the shareholder experience and retain critical talent. Awards have a three year vesting term, an absolute Total Shareholder Return (TSR), performance hurdle compared to ASX 300, performance hurdle relative index, a profit margin target and investment performance absolute index target of cash rate + 4.5%. Eligible employees will have no voting or dividend rights until their deferred rights have been exercised and their shares have been allocated. Expenses arising from Share-Based Payment transactions (DRP, Platinum Partners Plan & KMP LTI) ACCOUNTING EXPENSE 2025 $’000 2024 $’000 Performance rights granted in 2025: KMP LTI 315 - Performance rights granted in 2023: Platinum Partners Plan 702 1,480 Performance rights granted in 2022: Platinum Partners Plan 946 1,612 Performance rights granted in 2021: Platinum Partners Plan 1,740 2,816 Deferred rights granted in respect to 2025: DRP 2,440 - Deferred rights granted in respect to 2024: DRP 1,025 2,410 Deferred rights granted in respect to 2023: DRP 852 1,400 Deferred rights granted in respect to 2022: DRP 930 1,432 Deferred rights granted in respect to 2021: DRP 925 1,598 Deferred rights granted in respect to 2020: DRP - 1,469 Total amortisation of share-based payments for continuing employees 9,875 14,217 Share-based payment expense accelerated due to turnaround program discontinuing employees and cancellation of rights which have failed their respective TSR hurdles(1): Platinum Partners Plan 24,630 8,888 Deferred rights 5,859 2,473 Total amortisation of share-based payments 40,364 25,578 (1) Where employees cease employment without forfeiting rights there is a shortening of the service period and therefore the share- based payment expense is accelerated based on the new service period. The original vesting dates are not amended. The PTM Board determined in June 2025 to cancel grants that had tested and failed the TSR hurdles up to and including 30 June 2025, resulting in accelerated share- based payments amortisation these grants. For personal use only
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Notes to the financial statements Platinum Asset Management Limited Annual Financial Report 65 NOTE 17. SHARE-BASED PAYMENTS (CONTINUED) ACCOUNTING POLICY AASB 2: Share-based Payment requires an organisation to recognise an expense for equity provided for services rendered by employees. The amount that is recognised as an expense for share-based payments is derived from the fair value of the equity instruments granted. Deferred incentives to be settled in the Company’s shares are considered to be a share-based payments award. The fair value of the equity instruments granted and measured at grant date is recognised over the term of the service period. The accounting expense will commence when there is a “shared understanding” of the terms and conditions of the offer. The service period may commence prior to grant date. In this case, the expense is estimated and trued-up at grant date. The fair value of the rights granted is recognised in the consolidated financial statements as an expense with a corresponding entry to reserves. The fair value is measured at grant date and amortised on a straight-line basis over the vesting period that an employee becomes unconditionally entitled to the share. In measuring the share-based payment expense, an allowance has been made for the risk or probability of forfeiture, which measures the risk of selected eligible employees leaving Platinum and forfeiting their rights. For employees who leave Platinum and are deemed to be ‘good leavers’ the full accelerated amortisation expense is recorded immediately. At each balance date, the Company reviews the number of deferred and performance rights granted. Adjustments are made to the share-based payments expense, if the number of deferred and performance rights has changed (e.g. through forfeitures). The impact of any revision to the original estimate will be recognised in the consolidated statement of profit or loss and other comprehensive income with the corresponding entry to reserves. The purchase of shares on-market by the Company through an employee share trust for future allocation to key employees is shown in the consolidated statement of financial position as a debit entry to the “treasury shares” account with the corresponding credit entry to “cash”. For personal use only
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Notes to the financial statements Platinum Asset Management Limited Annual Financial Report 66 NOTE 18. ISSUED CAPITAL 2025 SHARES 2024 SHARES 2025 $’000 2024 $’000 Ordinary shares – fully paid (a) 582,167,116 582,167,116 745,790 745,790 Treasury shares (b) (25,952,093) (21,714,233) (47,488) (49,674) Total issued capital 556,215,023 560,452,883 698,302 696,116 (a) Ordinary shares: entitles shareholders to participate in dividends as determined and in the event of winding up of the Company, to participate in the proceeds in proportion to the number of and amounts paid on the ordinary shares held. Ordinary shares entitle the shareholder to one vote per share, either in person or by proxy, at a meeting of the Company’s shareholders. All ordinary shares issued have no par value. The on-market share buy-back program ceased on 3 October 2024 and no shares have been bought-back as at 30 June 2025 (30 June 2024: 4,511,784 shares bought back at a cost of $5,566,183). (b) Treasury shares: are shares that have been purchased by the Employee Share Trust, pursuant to the Deferred Remuneration Plan (Refer to Note 17). Treasury shares are held by the Employee Share Trust for future allocation to employees. Details of the balance of treasury shares at the end of the financial year were given below: 2025 SHARES 2024 SHARES 2025 $’000 2024 $’000 Opening balance 21,714,233 17,949,392 49,674 49,333 Shares acquired by the employee share trust 7,315,194 5,864,618 4,854 6,112 Shares transferred to employees (3,077,334) (2,099,777) (7,040) (5,771) Balance at the end of the financial year 25,952,093 21,714,233 47,488 49,674 ACCOUNTING POLICY Ordinary shares Ordinary shares are recognised as the amount paid per ordinary share, net of directly attributable issue costs. Treasury shares Where the consolidated entity purchases shares in the Company, the consideration paid is deducted from total shareholders' equity and the shares are treated as treasury shares. Treasury shares are recorded at cost and when restrictions on employee shares are lifted which is dependent on vesting and exercise of the rights, the cost of such shares will be adjusted to the share-based payments reserve. Share buy-back Where the consolidated entity purchases shares in the Company, as the result of a share buy-back, the consideration paid is deducted from total shareholders' equity and the shares are cancelled. The total acquisition cost, inclusive of transaction costs, is deducted from contributed equity. NOTE 19. RESERVES 2025 $’000 2024 $’000 Foreign currency translation reserve - 69 Capital reserve (588,144) (588,144) Share-based payments reserve 89,673 57,375 (498,471) (530,700) Foreign currency translation reserve Exchange differences arising on translation of foreign controlled entities and associates are recognised in other comprehensive income and accumulated as a separate reserve within equity. For personal use only
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Notes to the financial statements Platinum Asset Management Limited Annual Financial Report 67 NOTE 19. RESERVES (CONTINUED) Capital reserve In 2007, in preparation for listing, a restructure was undertaken in which the Company sold or transferred all of its assets, other than its beneficial interest in shares in Platinum Asset Pty Limited and sufficient cash to meet its year to date income tax liability. The Company then split its issued share capital of 100 shares into 435,181,783 ordinary shares. It then took its beneficial interests in PIML to 100%, through scrip for scrip offers, in consideration for the issue of 125,818,217 ordinary shares in the Company. As a result of the share split and takeover offers, the Company had 561,000,000 ordinary shares on issue and beneficially held 100% of the issued share capital of PIML. Subsequently, 140,250,000 shares on issue representing 25% of the issued shares of the Company were sold to the public by existing shareholders. The amount of $588,144,000 was established on listing as a result of the difference between the consideration paid for the purchase of non-controlling interests and the share of net assets acquired in the minority interests. Share-based payments reserve The amount in the share-based payments reserve is comprised of the amortisation of the rights granted and any associated future tax deduction. Movements in reserves: Movements in each class of reserve during the current and previous financial year are set out below: SHARE-BASED PAYMENTS $’000 FOREIGN CURRENCY $’000 CAPITAL $’000 TOTAL $’000 Balance at 30 June 2023 37,017 (313) (588,144) (551,440) Exchange rate translation impact - 382 - 382 Movement in share-based payments reserve 20,358 - - 20,358 Balance at 30 June 2024 57,375 69 (588,144) (530,700) Exchange rate translation impact - (69) - (69) Movement in share-based payments reserve 32,298 - - 32,298 Balance at 30 June 2025 89,673 - (588,144) (498,471) NOTE 20. DIVIDENDS PAID AND PROPOSED Dividends paid Dividends paid during the financial year were as follows: 2025 $’000 2024 $’000 Final dividend paid for the 2024 financial year (4 cents per share) 22,461 - Interim dividend paid for the 2025 financial year (1.5 cents per share) 8,323 - Special dividend paid for the 2025 financial year (20 cents per share) 112,345 - Final dividend paid for the 2023 financial year (7 cents per share) - 39,872 Interim dividend paid for the 2024 financial year (6 cents per share) - 33,910 143,129 73,782 For personal use only
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Notes to the financial statements Platinum Asset Management Limited Annual Financial Report 68 NOTE 20. DIVIDENDS PAID AND PROPOSED (CONTINUED) Dividends not recognised at year-end Since the end of the financial year, the Directors have determined not to pay a 2025 final dividend. Franking credits 2025 $’000 2024 $’000 Franking credits available at reporting date based on a tax rate of 30% 28,472 73,008 Franking credits/(debits) that will arise from the payment/(refund) of the provision for income tax at the reporting date based on a tax rate of 30% 438 (2,654) Franking credits available for subsequent financial years based on a tax rate of 30% 28,910 70,354 ACCOUNTING POLICY A provision is made for the amount of any dividend determined by the Directors before or at the end of the financial year but not distributed at balance date. NOTE 21. FINANCIAL RISK MANAGEMENT Financial risk management objectives The Group’s activities expose it to both direct and indirect financial risk, including: market risk, credit risk and liquidity risk. Material direct exposure to financial risk occurs through the impact on profit of movements in funds under management ("FUM") and through its direct investments in: • PAI; and • Equity and other securities held by the seeded investments, being, GW&K Global Small Cap Fund, other seed funds and investments. Indirect exposure occurs because PIML is the investment manager for various investment vehicles, including: • investment mandates; • various unit trusts, namely the Platinum Trust funds, Platinum Global Fund, Platinum International Fund (Complex ETF) (“PIXX”) and Platinum Asia Fund (Complex ETF) (“PAXX”); and • its ASX-listed investment companies, Platinum Capital Limited (“PMC”) and PAI. The Group does not derive any management fees or performance fees directly from PIXX and PAXX. PIXX and PAXX invest in Platinum International Fund and Platinum Asia Fund respectively. Management and performance fees are borne at the Platinum International Fund/Platinum Asia Fund level and are paid directly by these funds to the Group. This note mainly discusses the direct exposure to risk of the Group. The Group's risk management procedures focus on managing the potential adverse effects on financial performance caused by volatility of financial markets. For personal use only
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Notes to the financial statements Platinum Asset Management Limited Annual Financial Report 69 NOTE 21. FINANCIAL RISK MANAGEMENT (CONTINUED) Market risk The key direct risks associated with the Group are those driven by investment and market volatility and the resulting impact on FUM or a reduction in the growth of FUM. Reduced FUM will directly impact on management fee income and profit because management fee income is calculated as a percentage of FUM. FUM can be directly impacted by a range of factors including: (i) poor investment performance: absolute negative investment performance will reduce FUM and relative under performance to appropriate market benchmarks could reduce the attractiveness of Platinum’s investment products to investors, which would impact on the growth of the business. Poor investment performance could also trigger redemptions from Platinum’s investment products and the termination of investment mandate arrangements; (ii) market volatility: Platinum invests in global markets. It follows that a decline in overseas stock markets, adverse exchange rates and/or interest rate movements will all impact on FUM; (iii) a reduction in the ability to retain and attract investors: that could be caused by a decline in investment performance, but also a range of other factors, such as the high level of competition in the funds management industry; (iv) a loss of key personnel; and (v) investor allocation decisions: investors constantly re-assess and re-allocate their investments on the basis of their own preferences. Investor allocation decisions could operate independently from investment performance, such that fund outflows occur despite positive investment performance. A decline in investment performance will also directly impact on performance fees earned by the Group. Historically, the amount of performance fees earned by the Group has fluctuated significantly from year to year and could be a material source of fee revenue. For those funds or investment mandates that pay a performance fee, the fee is calculated either semi-annually or annually and is based on an absolute or relative outperformance. Performance fees may be earned by the Group, if the investment return of a Platinum Trust fund, PMC, PAI, PGTX or any other applicable investment mandate exceeds their hurdle rates. Should the actual performance of one or more of these entities be higher than the applicable hurdle rate, a performance fee would be receivable. As at 30 June 2025, $7 thousand performance fees (2024: $nil) were receivable. If global equity markets fell 10% over the course of the year and consequently the Group's FUM fell in line with global equity markets, it follows that management fees would fall by 10%. If there was a 10% decrease in the performance of investment funds or mandates over the course of the year that resulted in negative absolute performance for the year, then no performance fee would be earned. The above analysis assumes a uniform 10% fall across all global equity markets. This is extremely unlikely as there is a large degree of variation and volatility across markets. For example, it is quite feasible for the Chinese market to fall whilst other Asian markets go up. Platinum may seek to manage market risk through the use of the funds it manages. Market risk may be managed through derivative contracts, including futures, options and swaps. Currency risk may be managed through the use of forward currency contracts. The section below mainly discusses the direct impact of foreign currency risk, price risk and interest rate risk on the Group's financial instruments held at 30 June 2025. Foreign currency risk The Group is exposed to foreign currency risk, because it holds foreign currency cash, as well as securities which are denominated in foreign currencies, either directly or through its direct investments in PAI, GW&K and other seed funds and receivables/ payables dominated in USD. The following tables demonstrate the sensitivity to a reasonably possible change in USD and HKD exchange rates, with all other variables held constant. The impact on the Group’s profit before tax is due to changes in the fair value of financial assets and liabilities. The Group’s exposure to foreign currency changes for all other currencies is not material. For personal use only
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Notes to the financial statements Platinum Asset Management Limited Annual Financial Report 70 NOTE 21. FINANCIAL RISK MANAGEMENT (CONTINUED) Foreign currency risk (continued) FINANCIAL ASSETS AND LIABILITIES IMPACT ON NET PROFIT BEFORE TAX OF 10% INCREASE/ (DECREASE) IN AUSTRALIAN DOLLAR USD $’000 INCREASE/(DECREASE) HKD $’000 INCREASE/(DECREASE) 30 JUNE 2025 30 JUNE 2024 30 JUNE 2025 30 JUNE 2024 Cash and cash equivalents (537)/657 (364)/445 - - Investments in: • PAI - - (2,905)/3,550 (2,509)/3,454 • Securities held by the seeded investments (6,258)/7,649 (2,236)/2,733 - - • Platinum Trust Funds (20)/25 (19)/24 - - Receivables (32)/39 (27)/32 - - Payables 16/(20) 22/(27) - - US Dollar fees If the Australian Dollar had been 10% higher/lower against the US Dollar than the prevailing exchange rate used to convert the US mandate, with all other variables held constant, then net profit before tax would have been A$86,415 lower/A$105,618 higher (2024: A$126,691 lower/A$154,825 higher). Price risk The Group is exposed to indirect price risk through its equity-accounted investments and investments in financial assets at fair value through profit or loss. The impact of price risk is summarised in the table below: ENTITY IMPACT ON NET PROFIT BEFORE TAX OF 10% INCREASE /(DECREASE) IN 30 JUNE VALUES 2025 $’000 2024 $’000 INCREASE/(DECREASE) INCREASE/(DECREASE) PAI 3,195/(3,195) 2,760/(2,760) Securities held by seeded investments 6,884/(6,884) 2,460/(2,460) Platinum Trust Funds 22/(22) 21/(21) Unlisted shares 696/(696) 624/(624) Interest rate risk At 30 June 2025, cash and term deposits are the only significant assets with potential exposure to interest rate risk held by the Group. A movement of +/-1% in Australian interest rates occurring throughout the year ended 30 June 2025 would cause the Group’s net profit before tax to be $1,222,472 higher/lower (2024: $2,502,843 higher/lower), based on the impact on its interest- bearing cash balances. An interest rate movement at 30 June 2025 will not impact the income earned from term deposits, as term deposit interest rates are determined on execution. For personal use only
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Notes to the financial statements Platinum Asset Management Limited Annual Financial Report 71 NOTE 21. FINANCIAL RISK MANAGEMENT (CONTINUED) Credit risk Credit risk relates to the risk of a counterparty defaulting on a financial obligation resulting in a loss to the Group (typically "non-equity" financial instruments). Credit risk also arises from the financial assets of the Group that include: cash and term deposits and trade and other receivables. The maximum exposure to direct credit risk at balance date is the carrying amount recognised in the consolidated statement of financial position. No assets are past due or impaired. Any default in the value of a financial instrument held within any of the entities for which PIML is the investment manager, will result in reduced investment performance. There is no direct loss for the Group other than through the ensuing reduction in FUM, as noted above in the section on “market risk”. The credit quality of cash and term deposits held by each entity in the Group, by counterparty, can be assessed by reference to the counterparty’s external credit ratings. All term deposits are held with Australian banks that have a credit rating of AA- (2024: AA-) or higher. At 30 June 2025 and 30 June 2024, the relevant credit ratings were as follows: 2025 $’000 2024 $’000 Rating AA- 116,742 248,533 A+ 5,493 1,507 A 12 244 122,247 250,284 Liquidity risk Liquidity risk is the risk that the Group will encounter difficulty in meeting obligations associated with its liabilities. The Group manages liquidity risk by maintaining sufficient cash reserves to cover its liabilities and receiving management fees to meet operating expenses on a regular basis. Management monitors its cash position on a daily basis and prepares forecasts on a weekly basis. Remaining contractual maturities The following table details the Group's remaining contractual maturity for its trade and other payables and lease liabilities. The table has been drawn up based on the undiscounted cash flows of liabilities based on the earliest date on which the liabilities are required to be paid. AT CALL $’000 WITHIN 30 DAYS $’000 BETWEEN 1 AND 3 MONTHS $’000 OVER 3 MONTHS $’000 TOTAL $’000 2025 Trade and other payables - 3,422 - - 3,422 Lease liabilities - 196 393 11,446 12,035 Total - 3,618 393 11,446 15,457 For personal use only
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Notes to the financial statements Platinum Asset Management Limited Annual Financial Report 72 NOTE 21. FINANCIAL RISK MANAGEMENT (CONTINUED) Liquidity risk (continued) Remaining contractual maturities (continued) AT CALL $’000 WITHIN 30 DAYS $’000 BETWEEN 1 AND 3 MONTHS $’000 OVER 3 MONTHS $’000 TOTAL $’000 2024 Trade and other payables - 5,825 - - 5,825 Lease liabilities - 191 382 13,785 14,358 Total - 6,016 382 13,785 20,183 Financial liabilities at fair value through profit or loss The Group had no financial liabilities at fair value through profit or loss at 30 June 2025 or 30 June 2024.The Group does not have a significant direct exposure to liquidity risk. Fair value of financial instruments Unless otherwise stated, the carrying amounts of financial instruments reasonably approximate their fair value. Capital risk management (i) Capital requirements The Company has limited capital requirements and generally expects that most, if not all, future profits will continue to be distributed by way of dividends, subject to ongoing capital requirements. (ii) External requirements PIML is required to hold an Australian Financial Services Licence (“AFSL”) issued by the Australian Securities and Investments Commission (“ASIC”). The AFSL authorises PIML to deal in certain financial products, provide general financial product advice in respect of certain financial products and to operate registered managed investment schemes. PIML has complied with all financial conditions of its AFSL during the financial year. NOTE 22. RELATED PARTY TRANSACTIONS Subsidiaries and associates Interests in subsidiaries and associates are set out in Note 5 and Note 6. Key management personnel Disclosures relating to key management personnel are set out in Note 23 and the Remuneration Report in the Directors' Report. Tax consolidation and dividend transactions Platinum Asset Management Limited is the head entity of the Australian consolidated tax group and is also the parent entity, and consequently, is the entity that ultimately pays out dividends to shareholders. The amounts paid are disclosed in the consolidated statement of cash flows and Note 20. Tax payable by the Australian consolidated group and dividends to shareholders are paid using income sourced from the main operating subsidiary, PIML. For personal use only
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Notes to the financial statements Platinum Asset Management Limited Annual Financial Report 73 NOTE 22. RELATED PARTY TRANSACTIONS (CONTINUED) Fees received PIML provides investment management services to: (i) the Platinum Trust funds and Platinum Global Fund; (ii) two ASX-listed investment companies, PMC and PAI; (iii) two ASX quoted managed funds, PIXX and PAXX; and PIML provides trustee services to: (iv) GW&K Global Small Cap Fund PIML is entitled to receive a monthly management fee, either directly or indirectly, from each of these entities and a performance fee based on the relative investment performance of the Platinum Trust Funds, PWP, PMC, PAI, PGTX9 and GW&K. The Group does not derive any management fees or performance fees directly from PIXX and PAXX. Management and performance fees are borne at the Platinum International Fund/Platinum Asia Fund level and are paid directly by these funds to the Group. The total related party fees, receivables and payables were as follows: 2025 $ 2024 $ Recognised in the statement of profit or loss and other comprehensive income 112,864,257 145,129,728 Receivable in the statement of financial position 8,261,341 11,888,188 Payable in the statement of financial position - 81,005 PIML recognised management fee of $4,504,025 (2024: $4,082,494) from PAI. Investment transactions During the year, the subsidiary PIML received a final 2024 fully franked dividend of $300,000 (2023: $750,000) and an interim 2025 fully franked dividend of $150,000 (2024: $450,000) from its investment in PAI. PIML also received the 30 June 2025 distribution of $149,998 from the Platinum Trust Funds (2024: $9,587). Other related-party transactions PIML incurred a fee of $12,491 (2024: $3,484,209) for general marketing and distribution services provided by Platinum UK Asset Management Limited. In the current year, the cash amount transferred to the Platinum Employee Incentive Trust was $3,390,000 (2024: $3,750,000). Loan Agreements with related parties There were no formal loan agreements executed with related parties at the current and previous reporting date, but there are intercompany receivables and payables. Guarantees entered into by the parent entity in relation to the debts of its subsidiaries There are no guarantees entered into by the parent entity in relation to debts of its subsidiaries, no contingent liabilities and no capital commitments. 9 PGTX was liquidated on 10 February 2025 For personal use only
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Notes to the financial statements Platinum Asset Management Limited Annual Financial Report 74 NOTE 23. KEY MANAGEMENT PERSONNEL The aggregate remuneration that the Group provided to Executive and Non-Executive Directors was as follows: 2025 $’000 2024 $’000 Cash salary, Directors’ fees and short-term incentive cash awards 4,625 3,289 Accounting expense related to the KMP allocation under the Deferred Remuneration Plan, Long- Term Remuneration Plan and Long-Term Performance Rights Plan^ 1,514 1,195 Superannuation 133 151 Increase/(decrease) in the Group's annual and long service leave provision (22) 75 6,250 4,710 ^ Jeff Peters and Andrew Stannard are the only members of KMP who have received an allocation of rights. Interests of Non-Executive and Executive Directors in shares The relevant interest in ordinary shares in the Company that each Director held at balance date was: OPENING BALANCE ADDITIONS DISPOSALS NET CHANGE OTHER CLOSING BALANCE CONTINGENT RIGHTS(1) VESTED RIGHTS(1) Guy Strapp 100,000 - - - 100,000 - - Anne Loveridge AM 50,000 - - - 50,000 - - Philip Moffitt 50,000 - - - 50,000 - - Rachel Grimes AM - 50,000 - - 50,000 - - James Simpson - - (3,485,741) 9,985,741(2) 6,500,000 - - Jeff Peters - - - - - 1,377,033 - Brigitte Smith 84,000 - - (84,000) (3) - - - 1. Represents contingent rights to receive shares and vested, but unexercised, rights to receive shares pursuant to awards made under the Company ’s Deferred Remuneration Plan or Platinum Partners Plan as at 30 June 2025. 2. Represents number of shares held at the time of appointment. 3. Represents the number of ordinary shares held by Brigitte Smith o n the date she resigned as a director and therefore ceased to be a KMP. For personal use only
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Notes to the financial statements Platinum Asset Management Limited Annual Financial Report 75 NOTE 24. REMUNERATION OF AUDITORS During the financial year, the following fees were paid or payable for services provided by the auditor of the Company, Ernst & Young Australia (“EY”), and its overseas network firms as indicated below: FIRM 2025 $ 2024 $ Audit services Audit and review of the financial statements and AFSL audit EY 202,855 194,988 Total audit, compliance and assurance services 202,855 194,988 Taxation services Compliance services EY 37,750 70,950 Compliance services Overseas EY - 30,000 Total taxation services 37,750 100,950 Other services Other services EY - 29,152 Total other services - 29,152 Total fees paid and payable to the auditors and their related practices 240,605 325,090 For personal use only
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Notes to the financial statements Platinum Asset Management Limited Annual Financial Report 76 NOTE 25. PARENT ENTITY INFORMATION Set out below is supplementary information about the parent entity. STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME PARENT 2025 $’000 2024 $’000 Profit after income tax 147,037 75,720 Total comprehensive income 147,037 75,720 STATEMENT OF FINANCIAL POSITION PARENT 2025 $’000 2024 $’000 Total current assets 1,472 67,541 Total assets 808,264 767,109 Total current liabilities 437 - Total liabilities 437 - Net assets 807,827 767,109 Equity Issued capital 698,303 696,116 Reserves 109,012 69,065 Retained profits 512 1,928 Total equity 807,827 767,109 ACCOUNTING POLICY The accounting policies of the parent entity are consistent with those of the consolidated entity except for the following: • Investments in subsidiaries are accounted for at cost in the parent entity; and • Dividends received from subsidiaries are recognised as other income by the parent entity. For personal use only
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Notes to the financial statements Platinum Asset Management Limited Annual Financial Report 77 NOTE 26. EVENTS AFTER THE REPORTING PERIOD On 8 July 2025 the Company announced it had entered into a merger implementation deed (“MID”) with the shareholders of L1 Capital (L1 Capital is the trading name of First Maven Pty Ltd). The MID contains the binding terms of the proposed merger between Platinum and L1 Capital (“Merger”). Subject to the satisfaction of the conditions precedent set out in the MID, which includes PTM shareholder approval, at completion of the Merger ("Completion"), PTM will acquire 100% of the issued share capital in L1 Capital (other than the Z Class shares), in consideration for the issue of new Platinum ordinary shares to existing L1 Capital shareholders. Under the terms of the Merger, it is expected that immediately following Completion, the existing L1 Capital shareholders will hold 74.0% of the issued share capital in the merged group ("MergeCo"), and existing PTM shareholders will hold 26.0%. On 21 August 2025, the Explanatory Memorandum ("EM") and Independent Expert Report ("IER") were announced to shareholders, and the Extraordinary General Meeting ("EGM") seeking shareholder approval for the Merger was convened for 22 September 2025. Subject to the satisfaction of the conditions precedent set out in the MID, including PTM shareholder approval, Completion is expected to occur by the beginning of October 2025. On 25 August 2025, Platinum Asia Investments Limited (ASX: PAI) ("PAI") implemented the scheme of arrangement ("Scheme") with Platinum Asia Fund Complex ETF (ASX: PAXX) ("PAXX") approved by PAI shareholders on 12 August 2025. This resulted in the PAI shares held by the Group being converted to PAXX units and in PIML acting as nominee for the ineligible shareholders of PAI. PIML as nominee is responsible for selling the PAI ineligible shareholder's PAXX units and returning the sale proceeds to the PAI ineligible shareholders. The PAXX units sale process commenced on 26 August 2025 and is expected to be completed by the end of September 2025. PAI ineligible shareholders bear all the risks and rewards associated with the PAXX units sold by PIML as nominee. Apart from the items noted above, no other matter or circumstance has arisen since 30 June 2025 that has significantly affected or may have significant affect the Company’s operations, the results of those operations, or the Company’s state of affairs in future financial years. For personal use only
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Consolidated entity disclosure statement Platinum Asset Management Limited Annual Financial Report 78 NAME BODY CORPORATE, PARTNERSHIP OR TRUST BODY CORPORATE COUNTRY OF INCORPORATION OWNERSHIP INTEREST % COUNTRY OF TAX RESIDENCE McRae Pty Limited Body corporate Australia 100 Australian Platinum Asset Pty Limited Body corporate Australia 100 Australian Platinum Investment Management Limited Body corporate Australia 100 Australian Platinum Asset Management Limited Employee Incentive Trust Trust Australia 100 Australian Platinum GP Pty Limited Body corporate Australia 100 Australian Platinum Arrow Trust Trust Australia 100 Australian GW&K Global Small Cap Fund Trust Australia 99.8 Australian Platinum UK Asset Management Limited Body corporate United Kingdom 100 United Kingdom Platinum Global Opportunities Fund LP Limited Partnership United States of America 100 Australian Platinum Asia Ex-Japan Opportunities Fund LP Limited Partnership United States of America 100 Australian Platinum Japan Opportunities Fund LP Limited Partnership United States of America 100 Australian Platinum Europe Opportunities Fund LP Limited Partnership United States of America 100 Australian BASIS OF PREPARATION This consolidated entity disclosure statement (CEDS) has been prepared in accordance with the Corporations Act 2001 and includes information for each entity that was part of the consolidated entity as at the end of the financial year in accordance with AASB 10 Consolidated Financial Statements. Further information on changes in subsidiaries during the year is provided in Note 5 to the financial statements. DETERMINATION OF TAX RESIDENCY Section 295 (3A)(vi) of the Corporation Act 2001 defines tax residency as having the meaning in the Income Tax Assessment Act 1997. The determination of tax residency involves judgement as there are different interpretations that could be adopted, and which could give rise to a different conclusion on residency. In determining tax residency, the consolidated entity has applied the following interpretations: • Australian tax residency: The consolidated entity has applied current legislation and judicial precedent, including having regard to the Tax Commissioner's public guidance in Tax Ruling TR 2018/5 • Foreign tax residency: Where necessary, the consolidated entity has used independent tax advisers in foreign jurisdictions to assist in its determination of tax residency to ensure applicable foreign tax legislation has been complied with (see section 295(3A)(vii) of the Corporations Act 2001). For personal use only
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Directors’ declaration Platinum Asset Management Limited Annual Financial Report 79 In the Directors' opinion: • the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; • the attached financial statements and notes comply with International Financial Reporting Standards as issued by the International Accounting Standards Board as described under Basis of Preparation to the financial statements; • the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at 30 June 2025 and of its performance for the financial year ended on that date; • the consolidated entity disclosure statement on page 78 required by section 295(3A) of the Corporations Act 2001 is true and correct as at 30 June 2025; and • there are reasonable grounds to believe that the Company and consolidated entity will be able to pay their debts as and when they become due and payable. The Directors have been given the declarations required by section 295A of the Corporations Act 2001. Signed in accordance with a resolution of Directors made pursuant to section 295(5)(a) of the Corporations Act 2001. On behalf of the Directors Guy Strapp Chair Jeff Peters Managing Director 27 August 2025 Sydney For personal use only
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A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Ernst & Young 200 George Street Sydney NSW 2000 Australia GPO Box 2646 Sydney NSW 2001 Tel: +61 2 9248 5555 Fax: +61 2 9248 5959 ey.com/au Independent auditor’s report to the members of Platinum Asset Management Limited Report on the audit of the financial report Opinion We have audited the financial report of Platinum Asset Management Limited (the Company) and its subsidiaries (collectively the Group), which comprises the consolidated statement of financial position as at 30 June 2025, the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, notes to the financial statements, including material accounting policy information, the consolidated entity disclosure statement and the directors’declaration. In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including: a. Giving a true and fair view of the Group’s financial position as at 30 June 2025 and of its consolidated financial performance for the year ended on that date; and b. Complying with Australian Accounting Standards and theCorporations Regulations 2001. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key audit matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial report of the current year. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, but we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context. We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial report section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial report. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial report. 80 For personal use only
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A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Revenue recognition of management and performance fees Why significant How our audit addressed the key audit matter For the year ended 30 June 2025, management fees and performance fees were $125,781,000 as disclosed in Note 3. The Group’s key revenue streams are management and performance fees earned by Platinum Investment Management Limited (PIML), a consolidated subsidiary, through the Investment Management Agreements in place with Platinum Funds and other investment vehicles. Due to the quantum of these revenue streams and the impact that the variability of market-based returns can have on the recognition and earning of performance fees, this was considered a key audit matter. Our audit procedures included: ► Recalculating management fees, on a sample basis, in accordance with contractual arrangements. ► Assessing the performance fees revenue recognition methodology applied in accordance with contractual arrangements and the requirements of AASB 15 Revenue from Contracts with Customers. ► Assessing the adequacy of the disclosures included in Note 3 to the financial report in accordance with Australian Accounting Standards. Accounting for investments in associates Why significant How our audit addressed the key audit matter The Group’s investments in associates where significant influence was deemed to be present as at 30 June 2025 totalled $31,950,000 as disclosed in Note 6. The determination of the appropriate accounting treatment of investments held by the Group depends upon its ability to exercise control or significant influence on the investees. Judgement is required in determining the appropriate accounting treatment, particularly due to the Group’s practice of seeding investment products, resulting in ownership percentages changing over time, accordingly, this was considered a key audit matter. Our audit procedures included: ► Evaluating the Group’s assessment of control or significant influence for each investment vehicle, and the requirements of Australian Accounting Standards. ► Performing independent assessment of control or significant influence over the associate investments with consideration to: o Equity ownership o Representation on the Board of the directors of the investee o Participation and ability for the Group to influence decision making of the investee o Material transactions between the Group and the investee ► Obtaining external confirmation of the Group’s ownership interest in the investees, recalculated the carrying amount by agreeing inputs such as net asset value and share prices of the investees. ► Performing an impairment assessment on investment in associates. This included an assessment of objective evidence of impairment, in accordance with the requirements of Australian Accounting Standards, for associates where the carrying amount exceeded the fair value. ► Assessing the adequacy of the disclosures included in Note 6 to the financial report in accordance with Australian Accounting Standards. 81 For personal use only
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A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Information other than the financial report and auditor’s report thereon The directors are responsible for the other information. The other information comprises the information included in the Company’s 2025 annual report, but does not include the financial report and our auditor’s report thereon. We obtained the Directors’ Report and Corporate Directory that are to be included in the annual report, prior to the date of this auditor’s report, and we expect to obtain the remaining sections of the annual report after the date of this auditor’s report. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon, with the exception of the Remuneration Report and our related assurance opinion. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the directors for the financial report The directors of the Company are responsible for the preparation of: a. The financial report (other than the consolidated entity disclosure statement) that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001; and; b. The consolidated entity disclosure statement that is true and correct in accordance with the Corporations Act 2001, and for such internal control as the directors determine is necessary to enable the preparation of: i. The financial report (other than the consolidated entity disclosure statement) that gives a true and fair view and is free from material misstatement, whether due to fraud or error; and ii. The consolidated entity disclosure statement that is true and correct and is free of misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the financial report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. 82 For personal use only
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A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgment and maintain professional scepticism throughout the audit. We also: ► Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. ► Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. ► Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. ► Conclude on the appropriateness of the directors’use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern. ► Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. Plan and perform the Group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Group as a basis for forming an opinion on the Group financial report. We are responsible for the direction, supervision and review of the audit work performed for the purposes of the Group audit. We remain solely responsible for our audit opinion. We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied. From the matters communicated to the directors, we determine those matters that were of most significance in the audit of the financial report of the current year and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. 83 For personal use only
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A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Report on the audit of the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included in pages 16 to 35 of the directors’report for the year ended 30 June 2025. In our opinion, the Remuneration Report of Platinum Asset Management Limited for the year ended 30 June 2025, complies with section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. Ernst & Young Rita Da Silva Partner Sydney 27 August 2025 84 For personal use only