L1 GROUP LIMITED — Interim / Quarterly Report 2021

Feb 22, 2021

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Appendix 4D

Half-Year Report

Listing Rule 4.2A.3

Company	Platinum Asset Management Limited
ASX Code	PTM
Half-year ended	31 December 2020
Previous corresponding period half-year ended	31 December 2019
ABN	13 050 064 287

Results for Announcement to the Market

Announcement to the market for the Platinum Asset Management Limited Consolidated Group should be read in conjunction with the attached 31 December 2020 Interim Financial Report.

	% Increase	$A’000
Total revenue and other income	8.5%	166,607
Profit from ordinary activities after income tax	14.4%	90,420
Net profit attributable to members	14.4%	90,420
Basic EPS (cents per share)		15.60 cps

The main contributor of the increase in revenue, profit and earnings per share was the mark to market gains on our seed investments, including dividends, which made an overall gain for the half-year of $36.2 million before tax, as compared to a gain of $7.7 million before tax for the half-year to 31 December 2019.

FUM at 31 December 2020 was $23.6 billion and this represented an increase of 10.4% from the 30 June 2020 closing FUM of $21.4 billion. The increase in FUM was driven by absolute investment performance which contributed $3.3 billion, which more than offset the net fund outflows of $1.0 billion.

Investment returns were strong for all of our funds and mandates for the half-year period to 31 December 2020.

Refer to the attached Auditor-reviewed financial statements for more financial information on the Consolidated Group results.

Dividends

Interim dividend declared 12 cents per share fully-franked Ex-dividend date 2 March 2021 Record date 3 March 2021 Payment date 18 March 2021

The final dividend paid for the year ended 30 June 2020 was 11 cents per share fully-franked.

Level 8, 7 Macquarie Place, Sydney NSW 2000, Australia | GPO Box 2724, Sydney NSW 2001

Telephone 61 2 9255 7500 | Investor Services 1300 726 700 | Facsimile 61 2 9254 5590 | Email invest@platinum.com.au | Website www.platinum.com.au

Platinum Investment Management Limited ABN 25 063 565 006 AFSL 221935 trading as Platinum Asset Management[® ]

Dividend Reinvestment Plan

Whilst the Company has a Dividend Reinvestment Plan in place, it has not been activated.

Other Information

Net tangible assets per share was $0.57 at 31 December 2020, which was higher than 30 June 2020 amount of $0.55 per share.

Joanne Jefferies Company Secretary 23 February 2021

Page 2 of 2

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Platinum Asset Management Limited ABN 13 050 064 287

Interim Financial Report For the half-year ended 31 December 2020

Platinum Asset Management Limited Corporate directory 31 December 2020

Directors	Guy Strapp (appointed on 27 August 2020)
	Michael Cole (retired on 20 November 2020)
	Stephen Menzies
	Anne Loveridge
	Brigitte Smith
	Tim Trumper
	Kerr Neilson
	Andrew Clifford
	Elizabeth Norman
	Andrew Stannard
Shareholder liaison	Elizabeth Norman
Company secretary	Joanne Jefferies
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 register	Computershare Investor Services Pty Ltd
	Level 3, 60 Carrington Street
	Sydney NSW 2000
	Phone 1300 855 080 (Australia only)
	Phone +61 3 9415 4000
	Fax +61 3 9473 2500
Auditor	Ernst & Young
Stock exchange listing	Platinum Asset Management Limited shares are listed on the Australian Securities
	Exchange (ASX code: PTM)
Website	www.platinum.com.au/Shareholder-information/

1

Platinum Asset Management Limited Directors’ report 31 December 2020

The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'consolidated entity' or ‘group’) consisting of Platinum Asset Management Limited (referred to hereafter as the 'Company' or 'parent entity') and the entities it controlled at the end of, or during, the half-year ended 31 December 2020.

Directors

The following persons were Directors of Platinum Asset Management Limited during the half-year and up to the date of this report unless otherwise stated:

Guy Strapp	Chairman (from 21 November 2020) and Non-Executive Director
	(appointed on 27 August 2020)
Michael Cole	Chairman and Non-Executive Director (retired on 20 November 2020)
Anne Loveridge	Non-Executive Director
Stephen Menzies	Non-Executive Director
Brigitte Smith	Non-Executive Director
Tim Trumper	Non-Executive Director
Andrew Clifford	Chief Executive Officer/Managing Director
Kerr Neilson	Executive Director until 31 August 2020 and from 1 September 2020 a
	Non-Executive Director
Elizabeth Norman	Executive Director and Director of Investor Services and Communications
Andrew Stannard	Executive Director and Chief Financial Officer

Principal activities

The Company is the non-operating holding company of Platinum Investment Management Limited (PIML) and its controlled entities. Platinum Investment Management Limited, trading as Platinum Asset Management (Platinum), operates a funds management business.

Operating and Financial Review

The key variables that drive the profitability of the consolidated entity are average funds under management (FUM) growth, investment performance, including performance of our seed investments, performance fees earned and expense management. FUM for the half-year ending 31 December 2020 is shown in the table below.

Funds Retail Offerings Platinum Trust Funds (excluding funds fed from PIXX and PAXX) and Platinum Global Fund (mFund) Platinum Quoted Managed Funds PIXX and PAXX Platinum Listed Investment Companies PMC and PAI MLC Platinum Global Fund Institutional mandates Management Fee Mandates UCITS Platinum Word Portfolios plc Platinum Opportunities Funds (Cayman domiciled funds) ‘Relative’ Performance Fee Mandates ‘Absolute’ Performance Fee Mandates Total

Opening Balance (1 Jul 20) $’M Flows $’M Investment Performance $’M Distribution and Other $’M Closing Balance (31 Dec 20) $’M % of Total 13,241 (756) 1,994 - 14,479 61% 453 (13) 71 - 511 2% 837 - 140 (29) 948 4% 656 (56) 101 - 701 3% 2,144 (117) 323 - 2,350 10% 448 (31) 77 - 494 2% 30 - 5 - 35 0% 3,224 (13) 506 - 3,717 16% 352 (32) 43 - 363 2%

21,385 (1,018) 3,260 (29) 23,598 100%

FUM at 31 December 2020 was $23.6 billion and this represented an increase of 10.4% from the 30 June 2020 closing FUM of $21.4 billion. The increase in FUM was driven by absolute investment returns of $3.3 billion (equivalent to 15%) during the half-year. Average FUM for the six months to 31 December 2020 was $22.2 billion which was 10% lower than the average FUM of $24.8 billion for the previous corresponding half-year. The decrease in average FUM contributed to the 12.2% decline in management fees for the period, with the remainder caused by a change in product mix.

2

Platinum Asset Management Limited Directors’ report 31 December 2020

Profit after tax increased to $90.4 million (31 December 2019: $79.1 million) for the half-year. This represented an increase in profit after tax of 14.3%. Earnings per share was 15.6 cents per share (31 December 2019: 13.6 cents per share).

The main contributor to the increase in profit and earnings per share was the unrealised gains on our seed investments, including share of associates profits and dividend income, which contributed income before tax for the half-year of $36.2 million, as compared to income before tax of $7.7 million for the half-year to 31 December 2019.

Total revenue and other income was $166.6 million for the period ended 31 December 2020, an increase of 8.5% from $153.6 million in the previous corresponding period. Management fee revenues decreased 12.2% compared to 31 December 2019 period due primarily to the decrease in average FUM over the same period. Performance fee revenues of $3.7 million (December 2019: $34,000) were primarily attributable to strong performance by the International, Asia ex-Japan and Health Care strategies. Other income increased from $8.7 million in the period ended 31 December 2019 to $35.7 million in the current half-year due primarily to significant returns from seed investments.

Total costs were $37.3 million for the period ended 31 December 2020, a decrease of $3.3 million from the previous corresponding period. Costs saving in some areas including custody and unit registry fees (down by $1.2 million), business development expenses (down by $0.7 million), legal, compliance and other professional expenses (down by $0.6 million).

COVID-19 has not had a direct impact on the Group’s ability to perform its core business activities or on the Group’s revenues. Accordingly, the Group has not received any COVID-19 related financial assistance or support.

The Company continues to be well positioned for future opportunities because:

• It maintains a highly differentiated product and maintains a strong position in the Australian retail market;

• Our offshore initiatives provide a platform for growth over the medium-term; and

• • Our investment team continues to deliver high research quality and a large idea base.

The Company is in a strong financial position, with a strong balance sheet. However, the most significant driver of sustainable future growth is, and will always be, the delivery of superior, long-term, investment returns for our clients.

Dividends

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. Given that the earnings per share for the 2021 interim period was 15.6 cents per share, post 31 December 2020, the Directors declared a 2021 interim fully-franked dividend of 12 cents per share with a record date of 3 March 2021 and payable to shareholders on 18 March 2021.

A 2020 interim fully-franked dividend for the previous corresponding period was 13 cents per share.

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 4.

This report is made in accordance with a resolution of Directors, pursuant to section 306(3)(a) of the Corporations Act 2001 .

On behalf of the Directors

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_____ Guy Strapp Chairman

______ Andrew Clifford Director

23 February 2021 Sydney

3

Ernst & Young 200 George Street Sydney NSW 2000 Australia GPO Box 2646 Sydney NSW 2001

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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 review of Platinum Asset Management Limited for the half-year ended 31 December 2020, I declare to the best of my knowledge and belief, there have been:

• a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• b) no contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of Platinum Asset Management Limited and the entities it controlled during the financial period.

Ernst & Young

Rita Da Silva Partner Sydney 23 February 2021

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation

Platinum Asset Management Limited Contents 31 December 2020

Contents

Consolidated statement of profit or loss and other comprehensive income	6
Consolidated statement of financial position	7
Consolidated statement of changes in equity	8
Consolidated statement of cash flows	9
Notes to the financial statements	10
Directors' declaration	18
Independent auditor's review report to the members of Platinum Asset Management Limited	19

General information

The financial statements cover Platinum Asset Management Limited as a consolidated entity consisting of Platinum Asset Management Limited and the entities it controlled at the end of, or during, the half-year ended 31 December 2020. The financial statements are presented in Australian dollars, which is Platinum Asset Management Limited's functional and presentation currency.

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 23 February 2021.

The Directors have the power to amend and re-issue the interim financial report.

The interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, the report is to be read in conjunction with the annual report for the year ended 30 June 2020 and any public announcements made by Platinum Asset Management Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001 .

5

Platinum Asset Management Limited Consolidated statement of profit or loss and other comprehensive income For the half-year ended 31 December 2020

Note Revenue Management fees Performance fees Total revenue Other income Interest Distribution and dividend Share of profit of associates 4 Gains on financial asset at fair value through profit or loss Foreign exchange losses on overseas bank accounts Total revenue and other income Expenses Employee expenses Salaries and employee related expenses Share-based payments Custody and unit registry Business development Technology, research and data Legal, compliance and other professional Depreciation of right-of-use assets Depreciation of fixed assets Mail house, periodic reporting and share registry Insurance Rent and other occupancy Finance costs on lease liabilities Other Total expenses Profit before income tax expense Income tax expense Profit after income tax expense Other comprehensive income Exchange rate translation impact of foreign subsidiaries and associates Other comprehensive income for the half-year, net of tax Total comprehensive income for the half-year Basic earnings per share Diluted earnings per share	Consolidated Half-year ended 31 Dec 2020 31 Dec 2019 $’000 $’000 127,271 144,879 3,666 34
	130,937 144,913
	334 1,061 1,151 600 25,798 7,064 9,235 16 (848) (56)
	166,607 153,598
	20,428 20,129 1,810 2,452 5,058 6,209 2,602 3,295 2,611 2,722 1,631 2,272 963 843 634 1,227 609 628 531 317 252 350 105 53 104 116
	37,338 40,613
	129,269 112,985 38,849 33,910
	90,420 79,075
	(7,914) 47
	(7,914) 47
	82,506 79,122
	Cents Cents 15.60 13.60 15.50 13.60

The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes

6

Platinum Asset Management Limited Consolidated statement of financial position As at 31 December 2020

Note Assets Current assets Cash and cash equivalents Term deposits Trade and other receivables Total current assets Non-current assets Equity investments in associates 4 Financial assets at fair value through profit or loss 8 Fixed assets Right-of-use assets Total non-current assets Total assets Liabilities Current liabilities Trade and other payables Employee benefits Lease liabilities Income tax payable Total current liabilities Non-current liabilities Provisions Employee benefits Lease liabilities Net deferred tax liabilities Total non-current liabilities Total liabilities Net assets Equity Issued capital 6 Reserves Retained profits 7 Total equity	Consolidated As at 31 Dec 2020 30 Jun 2020 $’000 $’000 107,542 105,333 49,876 49,876 30,003 34,682
	187,421 189,891
	140,483 125,019 42,429 27,626 3,373 4,007 7,705 8,669
	193,990 165,321
	381,411 355,212
	5,216 5,575 11,201 3,757 1,804 1,744 9,009 10,825
	27,230 21,901
	883 1,009 671 628 6,178 7,085 10,667 5,628
	18,399 14,350
	45,629 36,251
	335,782 318,961
	718,804 717,998 (582,688) (572,082) 199,666 173,045
	335,782 318,961

The above consolidated statement of financial position should be read in conjunction with the accompanying notes

7

Platinum Asset Management Limited Consolidated statement of changes in equity For the half-year ended 31 December 2020

Consolidated Balance at 1 July 2020 Profit after income tax expense for the half-year Other comprehensive income Exchange rate translation impact of foreign subsidiaries and associates Total comprehensive income for the half-year Transactions with owners in their capacity as owners: Net treasury shares acquired Share-based payments reserve Dividends paid Balance at 31 December 2020 Consolidated Balance at 1 July 2019 Impact of adoption of leasing standard Profit after income tax expense for the half-year Other comprehensive income Exchange rate translation impact of foreign subsidiaries Total comprehensive income for the half-year Transactions with owners in their capacity as owners: Share-based payments reserve Dividends paid Balance at 31 December 2019	Issued Capital $'000 717,998 - -	Reserves $'000 (572,082) - (7,914)	Retained profits $'000 173,045 90,420 - 90,420 - - (63,799) 199,666 Retained profits $'000 174,461 (159) 79,075 -	Total equity $'000 318,961 90,420 (7,914) 82,506 806 (2,692) (63,799) 335,782 Total equity $'000 321,088 (159) 79,075 47
	- 806 - -	(7,914) - (2,692) -
	718,804	(582,688)
	Issued capital $'000 723,490 - - - - - - 723,490	Reserves $'000 (576,863) - 47
		47 2,599 -	79,075 - (81,422)	79,122 2,599 (81,422)
		(574,217)	171,955	321,228

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes

8

Platinum Asset Management Limited Consolidated statement of cash flows For the half-year ended 31 December 2020

Note Cash flows from operating activities Receipts from operating activities Payments for operating activities Finance costs paid Income taxes paid Net cash from operating activities Cash flows from investing activities Interest received Proceeds on maturity of term deposits Purchase of term deposits Payments for purchases of fixed assets Receipts from sale of financial assets Proceeds from sale of equity investments in associates Payments of purchases of financial assets Dividends and distribution received from seed investments Net cash provided by (used in) investing activities Cash flows from financing activities Dividends paid Payments for purchase of treasury shares Payment of lease liability principal Net cash (used in) financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at the beginning of the half-year Effects of exchange rate changes on cash and cash equivalents Cash and cash equivalents at the end of the half-year	Consolidated Half-year ended 31 Dec 2020 31 Dec 2019 $’000 $’000 135,005 140,171 (26,730) (26,487) (105) - (33,254) (28,973)
	74,916 84,711
	295 1,084 67,876 206,877 (67,876) (241,877) (11) (2,146) 20,039 - 2,568 - (28,920) - 1,708 1,914
	(4,321) (34,148)
	(63,799) (81,422) (2,681) (3,918) (963) -
	(67,443) (85,340)
	3,152 (34,777) 105,333 112,947 (943) (32)
	107,542 78,138

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes

9

Platinum Asset Management Limited Notes to the financial statements 31 December 2020

Note 1. Significant accounting policies

These general purpose financial statements for the interim half-year reporting period ended 31 December 2020 have been prepared in accordance with Australian Accounting Standard AASB 134: Interim Financial Reporting and the Corporations Act 2001 , as appropriate for for-profit entities. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 Interim Financial Reporting.

These general purpose financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these financial statements are to be read in conjunction with the annual report for the year ended 30 June 2020 and any public announcements made by the Company during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

Accounting Standards and Interpretations not yet mandatory or early adopted during the half-year

There are no standards that are not yet effective that are expected to have a material impact on the consolidated entity in the current or future reporting periods and on foreseeable future transactions.

The Company has not early adopted any standards, interpretations or amendments that have been issued but are not yet effective.

Accounting Standards adopted during the half-year

There are no standards that are effective for the first time in the current period that have a material impact on the consolidated entity.

Note 2. Segment information

The consolidated entity 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 including those of the London office; and

• investments and other: through the consolidated entity’s investment in the (a) ASX listed, Platinum Asia Investments Limited (b) PWP (c) unlisted Platinum Trust Funds (d) the ASX quoted managed fund PAXX (e) Platinum Arrow Trust and (f) the Cayman domiciled Platinum Opportunities funds. Also included in this category are Australian dollar term deposits as well as associated interest derived from these.

10

Platinum Asset Management Limited Notes to the financial statements 31 December 2020

Note 2. Segment information (continued)

The segment financial results, segment assets and liabilities are disclosed below and on the following page(s):

Current period - 31 December 2020 Revenue Management and performance fees Interest Net gains on financial assets and equity in associates Dividend and distributions Net foreign exchange gains on overseas bank accounts Total revenue and other income Expenses Profit before income tax expense Income tax expense Profit after income tax expense Other comprehensive income Total comprehensive income Assets Total assets Liabilities Total liabilities Net assets Comparative period - 31 December 2019 Revenue Management and performance fees Interest Net losses on financial assets and equity in associates Dividends and distributions Net foreign exchange gains on overseas bank accounts and dividends Total revenue and other income Expenses Profit before income tax Income tax expense Profit after income tax Other comprehensive income Total comprehensive income Comparative period – 30 June 2020 Assets Total assets Liabilities Total liabilities Net assets	Funds Management $'000 130,937 150 - - -	Investments and Other $'000 - 184 35,033 1,151 (848)	Total $'000 130,937 334 35,033 1,151 (848) 166,607 37,338 129,269 38,849 90,420 (7,914) 82,506 381,411 45,629 335,782 Total $'000 144,913 1,061 7,080 600 (56) 153,598 40,613 112,985 33,910 79,075 47 79,122 355,212 36,251 318,961
	131,087	35,520
	37,168	170
	93,919	35,350
	27,456	11,393
	66,463	23,957
	(13)	(7,901)
	66,450	16,056
	86,779	294,632
	34,795	10,834
	51,984	283,798
	Funds Management $'000 144,913 296 - -	Investments and Other $'000 - 765 7,080 600 (56)
	145,209	8,389
	40,493	120
	104,716	8,269
	31,609	2,301
	73,107	5,968
	47	-
	73,154	5,968
	47,900	307,312
	33,180	3,071
	14,720	304,241

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Platinum Asset Management Limited Notes to the financial statements 31 December 2020

Note 3. Earnings per share

Profit after income tax attributable to the owners of Platinum Asset Management Limited Weighted average number of ordinary shares used in calculating basic earnings per share Adjustment for deferred rights Weighted average number of ordinary shares used in calculating diluted earnings per share Basic earnings per share Diluted earnings per share	Consolidated Half-year ended 31 Dec 2020 31 Dec 2019 $'000 $'000 90,420 79,075
	Number Number 579,660,816 581,583,682 3,592,263 - 583,253,079 581,583,682
	Cents Cents 15.60 13.60 15.50 13.60

Note 4. Equity investments in associates

At 31 December 2020, the consolidated entity’s investments in Platinum Asia Investments Limited (PAI), Platinum World Portfolios Plc (PWP), and Platinum Asia Fund (Quoted Managed Hedge Fund) (PAXX) represent interests in associates which are accounted for using the equity method of accounting. Information relating to interests in associates is shown in the table below:

a. Interests in associates

Entity	Country of incorporation	Equity interest %	Equity interest %	Fair Value $’000	Fair Value $’000	Carrying amount $’000	Carrying amount $’000	Reason for assessment of significant influence
		31 Dec 2020	30 Jun 2020	31 Dec 2020	30 Jun 2020	31 Dec 2020	30 Jun 2020
PAI	Australia	8.2	8.2	37,350	30,300	38,429	34,549	Ownership interest was 8.2% at 31 December 2020; PIML acts as Investment Manager (IM) in accordance with the Investment Management Agreement; PIML provides performance and exposure reports to thePAI Board.
PWP	Ireland	16.0	14.8	73,181	64,265	73,180	64,265	Ownership interest was 16% at 31 December 2020; PIML acts as IM in accordance with the Investment Management Agreement; the Company provides performance and exposure reports to the PWP Board and Stephen Menzies is a Director of PWP and a Director of Platinum Asset Management Limited.
PAXX	Australia	15.8	18.3	28,807	26,205	28,874	26,205	Ownership interest was 15.8% at 31 December 2020; PIML acts as IM for PAXX and its underlying fund, Platinum Asia Fund.
				139,338	120,770	140,483	125,019

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Platinum Asset Management Limited Notes to the financial statements 31 December 2020

Note 4. Equity investments in associates (continued)

The fair value of Platinum Asia Investments Limited reflects the 30 million shares held multiplied by the closing price at 31 December 2020 of $1.25 (30 June 2020: $1.01).

The fair value of PWP reflects the shares held in the sub-funds multiplied by their respective closing prices at 31 December 2020.

The fair value of PAXX reflects units held multiplied by the PAXX’s 31 December 2020 redemption price of $5.64 (30 June 2020: $4.71).

The carrying value reflects the consolidated entity’s share of each associate’s net assets, including assessment of any impairment.

b. Share of associates’ statement of financial position

31 December 2020 Total assets Total liabilities $’000 $’000 Associates financial position PAI 493,361 26,338 PWP 545,275 50,810 PAXX 182,614 2 Total associates’ statement of financial position Group’s share of associate PAI 40,502 2,073 PWP 79,438 6,258 PAXX 28,874 - Total associates’ statement of financial position 30 June 2020 Total assets Total liabilities $’000 $’000** Associates financial position PAI 432,120 13,343 PWP 454,211 5,370 PAXX 146,220 3,022 Total associates’ statement of financial position Group’s share of associate PAI 35,650 1,101 PWP 65,034 769 PAXX 26,758 553 Total associates’ statement of financial position	Net assets $’000 467,023 494,465 182,612
	1,144,100
	38,429 73,180 28,874
	140,483
	Net assets $’000 418,777 448,841 143,198
	1,010,816
	34,549 64,265 26,205
	125,019

• Associates total liabilities include non-current liabilities of $17,967,000 (30 June 2020: $9,236,000).

c. Carrying amount of investment using the equity method

Opening balance Sale of PAXX units Share of associates’ profit (see Note 4d below) Exchange rate translation impact Dividends and distributions paid (see Note 4d below) Closing balance (see Note 4a)	31 Dec 2020 $'000 125,019 (2,575) 26,695 (7,759) (897)	30 Jun 2020 $'000 117,593 - 9,188 - (1,762)
	140,483	125,019

13

Platinum Asset Management Limited Notes to the financial statements 31 December 2020

Note 4. Equity investments in associates (continued)

d. Associate’s net income

31 December 2020 Associates’ net income Total investment income Total expenses Profit/(loss) before tax Income tax expense Total profit/(loss) after tax Group’s share of associate Total investment income Total expenses Profit/(loss) before tax Income tax expense Total profit/(loss) after tax Dividend received and dilution of unitholding Realised and unrealised gain on investment in associate 31 December 2019 Associates’ net income Total investment income Total expenses Profit/(loss) before tax Income tax expense Total profit/(loss) after tax Group’s share of associate Total investment income Total expenses Profit/(loss) before tax Income tax expense Total profit/(loss) after tax Dividend received and dilution of unitholding Realised and unrealised gain on investment in associate	PAI PWP PAXX Total $’000 $’000 $’000 $’000 88,071 132,199 28,684 248,954 5,053 3,336 - 8,389
	83,018 128,863 28,684 240,565 24,819 - - 24,819
	58,199 128,863 28,684 215,746
	7,248 17,208 5,235 29,691 416 534 - 950
	6,832 16,674 5,235 28,741 2,046 - - 2,046
	4,786 16,674 5,235 26,695
	(906) - 9 (897)
	3,880 16,674 5,244 25,798
	PAI PWP PAXX Total $’000 $’000 $’000 $’000 30,730 33,456 9,805 73,991 3,234 2,743 - 5,977
	27,496 30,713 9,805 68,014 8,272 - - 8,272
	19,224 30,713 9,805 59,742
	2,538 4,908 1,598 9,044 267 402 - 669
	2,271 4,506 1,598 8,375 683 - - 683
	1,588 4,506 1,598 7,692
	(623) 13 (18) (628)
	965 4,519 1,580 7,064

14

Platinum Asset Management Limited Notes to the financial statements 31 December 2020

Note 5. Equity - dividends

Dividends paid during the half-year were as follows:

Dividend paid on 20 September 2020 of 11 cents per ordinary shares Dividend paid on 20 September 2019 of 14 cents per ordinary shares	Consolidated 31 Dec 2020 31 Dec 2019 $'000 $'000 63,799 - - 81,422 63,799 81,422

Post the period-end, the Directors have determined to pay an ordinary fully-franked dividend of 12 cents per share on 18 March 2021 (31 December 2019: ordinary dividend of 13 cents per share) payable out of profits for the 6 months ended 31 December 2020.

This dividend has not been provided for at 31 December 2020, as it was declared after period-end.

Note 6. Equity - issued capital

Ordinary shares - fully paid Treasury shares Total issued capital	31 Dec 2020 Shares 586,678,900 (7,196,624)	30 June 2020 Shares 586,678,900 (6,687,403)	31 Dec 2020 $'000 751,355 (32,551) 718,804	30 June 2020 $'000 751,355 (33,357) 717,998
	579,482,276	579,991,497

Ordinary shares

Ordinary shares: entitle the holder to participate in dividends and the proceeds on the winding up of the Company in proportion to the number of and amounts paid on the shares held. Ordinary shares entitle the shareholders to one vote per ordinary share, entitled in person or by proxy, at the meeting of the company’s shareholders.

On 16 September 2020, the Company announced the extension of the on-market share buy-back program, to enable the Company to buy back PTM shares should they trade at a significant discount to their underlying value. No target price was set and no shares have been bought-back to date.

Treasury shares: are shares that have been purchased on market for the Employee Share Trust, pursuant to the Deferred Remuneration Plan. Treasury shares are held by the Employee Share Trust for future allocation to employees.

Note 7. Equity – retained profits

Retained profits at the beginning of the period Profit after income tax expense attributable to owners of the Company Dividends paid Retained profits at the end of the period	Half year ended 31 Dec 2020 $'000 173,045 90,420 (63,799)	Year ended 30 Jun 2020 $'000 174,461 155,611 (157,027) 173,045
	199,666

15

Platinum Asset Management Limited Notes to the financial statements 31 December 2020

Note 8. Fair value measurement

Fair value hierarchy

AASB 13: Fair Value Measurement requires the consolidated entity to classify those assets and liabilities measured at fair value using the following fair value hierarchy model (consistent with the hierarchy model applied to financial assets and liabilities at 30 June 2020).

• 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 liability that are not based on observable market data (unobservable inputs) (level 3).

At 31 December 2020, the investments by PIML in PAI, PWP and PAXX have not been measured at fair value because they have been classified as equity investments in associates. If these were to be measured at fair value, they would be classified as level 2.

The tables below analyse 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 31 December 2020 and 30 June 2020. The consolidated entity has no assets or liabilities that are classified as level 3.

31 December 2020 Assets Equity securities held by wholly owned seed funds Platinum Trust Fund investments 30 June 2020 Assets Equity securities held by wholly owned seed funds Platinum Trust Fund investments	Level 1 Level 2 Total $'000 $'000 $'000 42,087 130 42,217 - 212 212 42,087 342 42,429 Level 1 Level 2 Total $'000 $'000 $'000 27,442 - 27,442 - 184 184 27,442 184 27,626

The consolidated entity’s policy is to recognise transfers into and transfers out of fair value hierarchy levels at the end of the reporting period.

Valuation techniques used to classify assets and liabilities as level 2

PIML’s direct investments in the Platinum Trust Funds are valued using their respective Net Asset Values (adjusted for the buy-sell spread) of the underlying assets and liabilities and includes the impact of the 30 June distribution. Accordingly, management has assessed the fair value investments as being Level 2 investments.

Note 9. Contingent Assets, Liabilities and Commitments

The consolidated entity has no commitments for significant capital expenditure. No contingent assets or liabilities exist at 31 December 2020 and 30 June 2020.

Note 10. Events after the reporting period

Apart from the dividend declared on 23 February 2021, as disclosed in Note 5, no other matter or circumstance has arisen since 31 December 2020 that has significantly affected, or may significantly affect, the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years.

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Platinum Asset Management Limited Directors' declaration 31 December 2020

In the Directors' opinion:

• the attached financial statements and notes comply with the Corporations Act 2001 , Australian Accounting Standard AASB 134: Interim Financial Reporting , the Corporations Regulations 2001 and other mandatory professional reporting requirements;

• the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at 31 December 2020 and of its performance for the half-year ended on that date; and

• there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of Directors made pursuant to section 303(5)(a) of the Corporations Act 2001 .

On behalf of the Directors

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Guy Strapp Chairman 23 February 2021 Sydney

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______ Andrew Clifford Director

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Ernst & Young Tel: +61 2 9248 5555 200 George Street Fax: +61 2 9248 5959 Sydney NSW 2000 Australia ey.com/au GPO Box 2646 Sydney NSW 2001

Independent Auditor's Review Report to the Members of Platinum Asset Management Limited

Report on the Half-Year Financial Report

Conclusion

We have reviewed the accompanying half-year financial report of Platinum Asset Management Limited (“the Company”) and its controlled entities (collectively “the Group”), which comprises the consolidated statement of financial position as at 31 December 2020, 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 half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration.

Based on our review, which is not an audit, nothing has come to our attention that causes us to believe that the half-year financial report of the Group is not in accordance with the Corporations Act 2001 , including:

• a) giving a true and fair view of the consolidated financial position of the Group as at 31 December 2020 and of its consolidated financial performance for the half-year ended on that date; and

• b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

Directors’ Responsibility for the Half-Year Financial Report

The directors of the Company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, anything has come to our attention that causes us to believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the Group’s consolidated financial position as at 31 December 2020 and its consolidated financial performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of the Group, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

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Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 .

Ernst & Young

Rita Da Silva Partner Sydney 23 February 2021

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation