Platinum Asset Management

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AUSTRALIA PTM AU Price (at 06:10, 11 Jul 2016 GMT) Neutral A$5.52 Valuation A$ - DCF (WACC 9.3%, beta 1.2, ERP 5.0%, RFR 3.3%) 5.19 12-month target A$ 5.36 12-month TSR % +2.6 Volatility Index Low/Medium GICS sector Diversified Financials Market cap A$m 3,238 30-day avg turnover A$m 8.8 Number shares on issue m 586.7 Investment fundamentals Year end 30 Jun 2015A 2016E 2017E 2018E Revenue m 340.9 346.4 339.7 364.0 EBIT m 294.6 301.0 282.2 304.7 Reported profit m 213.6 215.1 199.1 215.0 Adjusted profit m 213.6 215.1 199.1 215.0 Gross cashflow m 214.3 215.7 199.3 215.3 CFPS 36.6 36.6 33.4 35.7 CFPS growth % 12.4 0.0-8.8 6.9 PGCFPS x 15.1 15.1 16.5 15.5 PGCFPS rel x 1.36 1.34 1.75 1.81 EPS adj 36.5 36.5 33.3 35.6 EPS adj growth % 12.4 0.0-8.7 6.9 PER adj x 15.1 15.1 16.6 15.5 PER rel x 0.75 0.78 1.08 1.17 Total DPS 47.0 33.0 30.0 32.0 Total div yield % 8.5 6.0 5.4 5.8 Franking % 100 100 100 100 ROA % 75.8 79.7 71.3 71.6 ROE % 59.0 60.8 53.9 53.9 EV/EBITDA x 9.7 9.6 10.4 9.7 Net debt/equity % -93.7-95.2-95.0-95.1 P/BV x 9.3 9.1 8.7 8.0 PTM AU vs Small Ordinaries, & rec history June market and distribution impact Event FUM and performance to end of June 2016. Impact Total FUM declined to $22.7bn at June 2016 from $24.8bn at May 2016. Platinum reported $907.3m cash distribution to unit holders net of reinvestment in June 2016. Core funds key metrics for June 2016: Platinum International Fund: In June 2016 FUM -$1,173m to $9,969.1m, with fund performance -4.7% (vs MSCI AC World Net Index -3.3% in A$). On a rolling basis, relative performance vs benchmark (in A$) has been: 140bps 1 month underperformance, 470bps 3 mths underperformance, 450bps 6 mths underperformance, 390bps 3 yrs p.a. underperformance. Platinum Asia Fund: In June 2016 FUM -$291m to $4,267.4m, with fund performance -1.4% (vs MSCI AC Asia ex Japan Net Index -0.1% in A$). On a rolling basis relative performance vs benchmark (in A$) has been: 130bps 1 month underperformance, 20bps 3 mths underperformance, 390bps 6 mths underperformance, 170bps 3 yrs p.a. outperformance. Earnings and target price revision EPS change: FY16-4.5%, FY17-13.9%, FY18-10.1%. PT $5.36 from $6.22. Price catalyst 12-month price target: A$5.36 based on a DCF methodology. Catalyst: FY16 result release expected on 25 August. Action and recommendation Neutral. Note: Recommendation timeline - if not a continuous line, then there was no Macquarie coverage at the time or there was an embargo period. Source: FactSet, Macquarie Research, July 2016 (all figures in AUD unless noted) 11 July 2016 Macquarie Securities (Australia) Limited Please refer to page 4 for important disclosures and analyst certification, or on our website www.macquarie.com/research/disclosures.

Macquarie Wealth Management (PTM.ASX) Year Ending 30 June Source: Company data, Macquarie Research, July 2016. Price: Market Cap A$3,349m Consolidated P&L 1H15A 2H15A 1H16A 2H16E FY14A FY15A FY16E FY17E Total revenue $m 162.5 190.9 190.6 168.3 310.3 353.3 358.8 345.8 Operating expenses $m 24.7 33.4 24.4 32.9 58.1 58.0 57.2 63.3 Other expenses $m 137.8-3.1-2.2-1.1-9.5-7.1-3.2-2.2 EBITDA $m 141.8 160.6 168.3 136.5 261.7 302.4 304.9 284.7 Depreciation & amortisation $m 0.3 0.3 0.5 0.1 0.7 0.9 0.6 0.2 EBIT $m 141.5 160.3 167.9 136.4 261.0 301.6 304.3 284.4 Net interest and Div income $m -4.0-3.1-2.2-1.1-9.5-7.1-3.2-2.2 Operating profit before tax $m 145.5 163.3 170.0 137.4 270.5 308.6 307.5 286.6 Tax Expense $m 40.6 47.5 48.2 40.9 71.2 88.1 89.1 85.3 Reported NPAT $m 100.9 112.8 119.7 95.4 189.9 213.7 215.1 199.1 Adjusted NPAT $m 100.9 112.8 119.7 95.4 189.9 213.5 215.2 199.1 Ratio Analysis 1H15A 2H15A 1H16A 2H16E FY14A FY15A FY16E FY17E Revenue grow th % 2.5% 23.3% 15.8% -12.7% 37.8% 12.7% 0.5% -3.9% Cost to income ratio % 14.8% 17.2% 12.7% 19.4% 18.2% 16.1% 15.8% 18.2% Effective Tax Rate % 28.7% 29.6% 28.7% 30.0% 27.3% 29.2% 30.0% 30.0% ROA % 50.0% 56.9% 62.8% 50.8% 48.1% 55.0% 56.7% 50.4% ROE % 54.0% 62.5% 68.4% 53.9% 52.8% 58.9% 60.9% 53.9% Investment Fundamentals 1H15A 2H15A 1H16A 2H16E FY14A FY15A FY16E FY17E EPS (Adjusted) cps 17.2 19.4 20.4 15.9 32.4 36.7 36.3 33.4 EPS Grow th (adjusted) % - 3.7 33.6 18.4-18.1 47.4 13.0-0.9-8.0 PER (Adjusted) x 16.7 14.8 14.1 18.1 17.7 15.7 15.8 17.2 DPS cps 17.0 30.0 16.0 17.0 34.0 47.0 33.0 30.0 Dividend Yield % 5.9% 10.4% 5.6% 5.9% 5.9% 8.2% 5.7% 5.2% Franking % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Payout ratio % 98.0% 156.0% 78.4% 104.5% 103.9% 129.2% 90.0% 89.3% Price to NTA x 9.0 9.7 9.6 9.4 8.9 9.7 9.4 9.0 Closing FUM $b 25,712 26,838 26,478 22,688 22,942 26,838 22,688 26,129 Average FUM $b 24,300 26,275 27,100 24,583 22,300 26,100 25,335 24,620 Net Margin (bps) bps 109.0 114.1 112.8 110.1 112.7 107.0 113.4 111.9 EFPOWA (basic) m 580.7 584.2 586.7 586.7 579.0 582.5 586.7 589.8 EFPOWA (diluted) m 585.5 579.4 586.7 592.6 585.4 582.5 592.6 595.7 Cashflow analysis 1H15A 2H15A 1H16A 2H16E FY14A FY15A FY16E FY17E Operating cash flow $m 96 85 114 94 184 181 208 202 Investing cash flow $m 92.9 60.8 (13.1) 0.9 (27.1) 153.7 (12.1) 1.9 Financing cash flow $m (108.9) (136.1) (117.3) (93.9) (152.2) (245.0) (211.2) (182.7) Balance Sheet FY14A FY15A FY16E FY17E DCF valuation summary ($m) Assets Cash $m 368.4 327.1 340.8 362.0 Consolidated value ($m) 3,024 Current receivables $m 33.4 40.7 40.4 42.2 Shares (m) 582 Other assets $m 4.3 3.1 2.9 3.0 Value per share $ 5.19 Total assets $m 406.1 370.9 384.0 407.2 12 month share price target $ 5.36 Liabilities $m Payables $m 9.4 7.6 6.7 7.0 Tax Liabilities $m 18.0 11.4 16.4 16.4 Capital return -6.7% Other Liabilities $m 3.5 2.8 3.0 3.0 Dividend yield 5.4% Total liabilities $m 30.9 21.7 26.1 26.4 Total return -1.4% Net assets $m 375.3 349.2 357.9 380.8 Recommendation Neutral $ 5.75 11 July 2016 2

Fundamentals Macquarie Wealth Management Macquarie Quant View The quant model currently holds a marginally negative view on Platinum Asset Management. The strongest style exposure is Profitability, indicating this stock is efficiently converting investments to earnings; proxied by ratios like ROE or ROA. The weakest style exposure is Price Momentum, indicating this stock has had weak medium to long term returns which often persist into the future. 377/534 Global rank in Diversified Financials % of BUY recommendations 43% (3/7) Number of Price Target downgrades 3 Number of Price Target upgrades 0 Attractive Quant Local market rank Global sector rank Displays where the company s ranked based on the fundamental consensus Price Target and Macquarie s Quantitative Alpha model. Two rankings: Local market (Australia & NZ) and Global sector (Diversified Financials) Macquarie Alpha Model ranking A list of comparable companies and their Macquarie Alpha model score (higher is better). Factors driving the Alpha Model For the comparable firms this chart shows the key underlying styles and their contribution to the current overall Alpha score. 1.1 0.6 0.2-0.1-0.6-3.0-2.0-1.0 0.0 1.0 2.0 3.0-100% -80% -60% -40% -20% 0% 20% 40% 60% 80% 100% Valuations Growth Profitability Earnings Momentum Price Momentum Quality Macquarie Earnings Sentiment Indicator The Macquarie Sentiment Indicator is an enhanced earnings revisions signal that favours analysts who have more timely and higher conviction revisions. Current score shown below. Drivers of Stock Return Breakdown of 1 year total return (local currency) into returns from dividends, changes in forward earnings estimates and the resulting change in earnings multiple. 0.4-0.6 0.0-0.7-0.9 1.3-3.0-2.0-1.0 0.0 1.0 2.0 3.0-60 -50-40 -30-20 -10 0% 10% 20% 30% 40% 50% 60% Dividend Return Multiple Return Earnings Outlook 1Yr Total Return What drove this Company in the last 5 years Which factor score has had the greatest correlation with the company s returns over the last 5 years. Price to Book FY1 Price to Book LTM Price to Book NTM Price to Book FY0 ROIC FY1 ROIC 12m Fwd Return on Equity FY1 Return on Equity NTM -26% -29% -29% -25% Negatives Positives -30% -20% -10% 0% 10% 20% 30% 20% 17% 23% 21% How it looks on the Alpha model A more granular view of the underlying style scores that drive the alpha (higher is better) and the percentile rank relative to the sector and market. Alpha Model Score Valuation Growth Profitability Earnings Momentum Price Momentum Quality Capital & Funding Liquidity Risk Technicals & Trading Normalized Score 3 0.09-0.24 1.88-0.16-0.74-0.60-1.03-0.91 0.56 1.45 Percentile relative to sector(/534) Percentile relative to market(/398) 0 50 100 0 50 100 0 0 1 1 Source (all charts): FactSet, Thomson Reuters, and Macquarie Research. For more details on the Macquarie Alpha model or for more customised analysis and screens, please contact the Macquarie Global Quantitative/Custom Products Group (cpg@macquarie.com) 11 July 2016 3

Macquarie Wealth Management Important disclosures: Recommendation definitions Macquarie - Australia/New Zealand Outperform return >3% in excess of benchmark return Neutral return within 3% of benchmark return Underperform return >3% below benchmark return Benchmark return is determined by long term nominal GDP growth plus 12 month forward market dividend yield Macquarie Asia/Europe Outperform expected return >+10% Neutral expected return from -10% to +10% Underperform expected return <-10% Macquarie South Africa Outperform expected return >+10% Neutral expected return from -10% to +10% Underperform expected return <-10% Macquarie - Canada Outperform return >5% in excess of benchmark return Neutral return within 5% of benchmark return Underperform return >5% below benchmark return Macquarie - USA Outperform (Buy) return >5% in excess of Russell 3000 index return Neutral (Hold) return within 5% of Russell 3000 index return Underperform (Sell) return >5% below Russell 3000 index return Volatility index definition* This is calculated from the volatility of historical price movements. Very high highest risk Stock should be expected to move up or down 60 100% in a year investors should be aware this stock is highly speculative. High stock should be expected to move up or down at least 40 60% in a year investors should be aware this stock could be speculative. Medium stock should be expected to move up or down at least 30 40% in a year. Low medium stock should be expected to move up or down at least 25 30% in a year. Low stock should be expected to move up or down at least 15 25% in a year. * Applicable to Asia/Australian/NZ/Canada stocks only Recommendations 12 months Note: Quant recommendations may differ from Fundamental Analyst recommendations Financial definitions All "Adjusted" data items have had the following adjustments made: Added back: goodwill amortisation, provision for catastrophe reserves, IFRS derivatives & hedging, IFRS impairments & IFRS interest expense Excluded: non recurring items, asset revals, property revals, appraisal value uplift, preference dividends & minority interests EPS = adjusted net profit / efpowa* ROA = adjusted ebit / average total assets ROA Banks/Insurance = adjusted net profit /average total assets ROE = adjusted net profit / average shareholders funds Gross cashflow = adjusted net profit + depreciation *equivalent fully paid ordinary weighted average number of shares All Reported numbers for Australian/NZ listed stocks are modelled under IFRS (International Financial Reporting Standards). Recommendation proportions For quarter ending 31 March 2016 AU/NZ Asia RSA USA CA EUR Outperform 50.34% 59.09% 46.67% 44.76% 60.66% 46.12% (for global coverage by Macquarie, 3.72% of stocks followed are investment banking clients) Neutral 34.14% 25.66% 32.00% 49.90% 30.33% 35.10% (for global coverage by Macquarie, 4.79% of stocks followed are investment banking clients) Underperform 15.52% 15.26% 21.33% 5.33% 9.02% 18.78% (for global coverage by Macquarie, 2.31% of stocks followed are investment banking clients) PTM AU vs Small Ordinaries, & rec history (all figures in AUD currency unless noted) Note: Recommendation timeline if not a continuous line, then there was no Macquarie coverage at the time or there was an embargo period. Source: FactSet, Macquarie Research, July 2016 12-month target price methodology PTM AU: A$5.36 based on a DCF methodology Company-specific disclosures: Important disclosure information regarding the subject companies covered in this report is available at www.macquarie.com/research/disclosures. Date Stock Code (BBG code) Recommendation Target Price 26-Feb-2016 PTM AU Neutral A$6.22 04-Feb-2016 PTM AU Neutral A$6.09 22-Jul-2015 PTM AU Neutral A$7.41 19-Feb-2015 PTM AU Neutral A$8.21 21-Feb-2014 PTM AU Neutral A$7.27 13-Jan-2014 PTM AU Neutral A$6.75 16-Aug-2013 PTM AU Neutral A$6.40 16-Jul-2013 PTM AU Neutral A$6.24 Target price risk disclosures: PTM AU: Any inability to compete successfully in their markets may harm the business. This could be a result of many factors which may include geographic mix and introduction of improved products or service offerings by competitors. The results of operations may be materially affected by global economic conditions generally, including conditions in financial markets. The company is exposed to market risks, such as changes in interest rates, foreign exchange rates and input prices. From time to time, the company will enter into transactions, including transactions in derivative instruments, to manage certain of these exposures. Analyst certification: We hereby certify that all of the views expressed in this report accurately reflect our personal views about the subject company or companies and its or their securities. We also certify that no part of our compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. The Analysts responsible for preparing this report receive compensation from Macquarie that is based upon various factors including Macquarie Group Limited (MGL) total revenues, a portion of which are generated by Macquarie Group s Investment Banking activities. General disclosure: This research has been issued by Macquarie Securities (Australia) Limited ABN 58 002 832 126, AFSL 238947, a Participant of the ASX and Chi-X Australia Pty Limited. This research is distributed in Australia by Macquarie Wealth Management, a division of Macquarie Equities Limited ABN 41 002 574 923 AFSL 237504 ("MEL"), a Participant of the ASX, and in New Zealand by Macquarie Equities New Zealand Limited 11 July 2016 4

This publication was disseminated on 11 July 2016 at 11:30 UTC. Macquarie Wealth Management ( MENZ ) an NZX Firm. Macquarie Private Wealth s services in New Zealand are provided by MENZ. Macquarie Bank Limited (ABN 46 008 583 542, AFSL No. 237502) ( MBL ) is a company incorporated in Australia and authorised under the Banking Act 1959 (Australia) to conduct banking business in Australia. None of MBL, MGL or MENZ is registered as a bank in New Zealand by the Reserve Bank of New Zealand under the Reserve Bank of New Zealand Act 1989. Apart from Macquarie Bank Limited ABN 46 008 583 542 (MBL), any MGL subsidiary noted in this research,, is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Australia) and that subsidiary s obligations do not represent deposits or other liabilities of MBL. MBL does not guarantee or otherwise provide assurance in respect of the obligations of that subsidiary, unless noted otherwise. This research contains general advice and does not take account of your objectives, financial situation or needs. Before acting on this general advice, you should consider the appropriateness of the advice having regard to your situation. We recommend you obtain financial, legal and taxation advice before making any financial investment decision. This research has been prepared for the use of the clients of the Macquarie Group and must not be copied, either in whole or in part, or distributed to any other person. If you are not the intended recipient, you must not use or disclose this research in any way. If you received it in error, please tell us immediately by return e-mail and delete the document. We do not guarantee the integrity of any e-mails or attached files and are not responsible for any changes made to them by any other person. Nothing in this research shall be construed as a solicitation to buy or sell any security or product, or to engage in or refrain from engaging in any transaction. This research is based on information obtained from sources believed to be reliable, but the Macquarie Group does not make any representation or warranty that it is accurate, complete or up to date. We accept no obligation to correct or update the information or opinions in it. Opinions expressed are subject to change without notice. The Macquarie Group accepts no liability whatsoever for any direct, indirect, consequential or other loss arising from any use of this research and/or further communication in relation to this research. The Macquarie Group produces a variety of research products, recommendations contained in one type of research product may differ from recommendations contained in other types of research. The Macquarie Group has established and implemented a conflicts policy at group level, which may be revised and updated from time to time, pursuant to regulatory requirements; which sets out how we must seek to identify and manage all material conflicts of interest. The Macquarie Group, its officers and employees may have conflicting roles in the financial products referred to in this research and, as such, may effect transactions which are not consistent with the recommendations (if any) in this research. The Macquarie Group may receive fees, brokerage or commissions for acting in those capacities and the reader should assume that this is the case. The Macquarie Group s employees or officers may provide oral or written opinions to its clients which are contrary to the opinions expressed in this research. Important disclosure information regarding the subject companies covered in this report is available at www.macquarie.com/disclosures Macquarie Group 11 July 2016 5