Platinum Capital : ASX Preliminary Final Report (Appendix 4E) 30/06/17

Listing Rule 4.3A

Appendix 4E Preliminary final Report Company Platinum Capital Limited

ASX Code PMC

Year ended 30 June 2017

Previous corresponding year ended 30 June 2016

ABN 51 063 975 431

Results for Announcement to the Market

Announcement to the market should be read in conjunction with the 30 June 2017 financial report:

Total investment income	% Movement 479.5%	$A'000 77,086
Profit from ordinary activities after tax attributable to members	366.1%	49,927
Net profit for the year attributable to members	366.1%	49,927

The Company has benefitted from strong stock selection in each of the key regions of Asia, Europe and North America.

Despite the strong increase in investment income and net profit, the Directors consider that pre-tax Net Tangible Assets (NTA), after fees and expenses, combined with the flow of dividends is a better measure of performance of the Company. For the 12 months to 30 June 2017, the Company's pre-tax NTA increased from $1.44 per share to $1.63 per share. In addition, shareholders received 8 cents per share in dividends during the year ended 30 June 2017.

The compound annual appreciation of the Company's net assets to 30 June 2017 compared to the benchmark over 12 months, 3 years, 5 years and since inception (June 1994), based on the movement in net assets after fees, expenses and taking into account capital flows (primarily from the Placement and Share Purchase Plan) and assuming the reinvestment of dividends, is shown in the table below:

Since

Investment Performance	12 months	3 years	5 years	inception
PMC's performance	19.79%	9.32%	16.88%	12.37%
MSCI AC World Net Index in $A terms	15.31%	12.32%	17.14%	6.67%

The investment returns shown are historical. You should be aware that historical performance is not a reliable indicator of future performance.

Source: Platinum Investment Management Limited and MSCI. All data where MSCI is referenced is the property of MSCI. No use or distribution of this data is permitted without the written consent of MSCI. This data is provided "as is" without any warranties by MSCI. MSCI assumes no liability for or in connection with this data.

Dividends

Final dividend declared 6 cents per share fully-franked Ex-date 22 August 2017

Record date 23 August 2017

The last date for receipt of election notices for the dividend reinvestment plan

24 August 2017

Payable date 11 September 2017

A 4 cents per share fully-franked interim dividend was paid on 13 March 2017. The total interim and final dividend for the year is 10 cents per share.

The Company's ability to pay franked dividends is dependent on the Company paying income tax.

At 31 July 2017, the Company had a realised franking account balance of 3.36 cents per share, which has resulted in a capacity to pay a possible maximum fully-franked dividend of 7.84 cents per share. We are not paying out the full 7.84 cents per share as the Board has a policy of dividend smoothing and does its best to ensure that there are sufficient franking credits available to pay fully-franked dividends in the future.

The payment of a 6 cents per share fully-franked dividend reflects the much stronger result this year and the Director's desire to reward shareholders appropriately while maintaining a healthy dividend profit reserve.

Shares on issue totalled 283,753,284 at 30 June 2017.

Dividend Reinvestment Plan

The Dividend Reinvestment Plan is in operation and the final dividend of 6 cents per share qualifies. Participating shareholders will be entitled to be allotted the number of shares (rounded down to the nearest whole number) which the cash dividend would purchase at the relevant issue price.

The relevant issue price for the final dividend will be at a 2.5 percent discount on the volume-weighted average price of the Company's shares traded on the Australian Securities Exchange (ASX), over the five business days subsequent to the date on which the Company shares cease to trade cum- dividend.

Further information

• Refer to the attached audited financial statements and financial information summary for financial data on the Company.

• Refer to the attached Chairman's report

Joanne Jefferies Company Secretary 17 August 2017

Page 2 of 2

PLATINUM CAPITAL LIMITED Chairman's Report 2017 Highlights

2017 has been a strong year for Platinum Capital Limited ("PMC" or the "Company") and I am pleased to report the following highlights:

• Investment performance as measured by the growth of its pre-tax Net Tangible Assets (NTA) increased by 19.79% for the 12 months to 30 June 2017, outperforming the benchmark by 4.48%;

• Net profit after tax was $49.9 million;

• The Company declared a fully-franked final dividend of 6 cents per share, bringing the total dividends declared for the 2017 financial year to 10 cents per share, an increase of 3 cents per share from the previous year;

• The Company is not affected by the recent small company tax changes and will be able to distribute franking credits for the 2017 financial year at a tax rate of 30%; and

• The Company successfully completed a capital-raising resulting in additional aggregate gross proceeds of $70.1 million, which increased the Company's capital in terms of dollar value by 22.7%.

Investment Performance

In the 2016 Chairman's Report, I noted that there would be short-term periods where returns are below benchmark, because PMC's portfolio is structured quite differently to that of its benchmark index, due to PMC's investment philosophy and process.

I am pleased to report that for FY 2017, PMC turned around this short-term underperformance, validating the Investment Manager's well-tested value-driven style, which is doggedly index agnostic and goes against the crowd.

For the year ending 30 June 2017, the Company's NTA increased by 19.79% pre-tax in $A terms against the return of its benchmark, the Morgan Stanley Capital International (MSCI) All Country World Net Index in $A, which delivered a return of 15.31% for the same period. The Company comfortably outperformed the benchmark, during this period whilst maintaining a net equity exposure on average of approximately 80%, due to the Investment Manager's downside protection philosophy. The comparable return from the Australian All Ordinaries Accumulation Index was 12.80%, over the same period. It should be noted that the Company's returns are calculated after the deduction of fees and expenses and assume the reinvestment of dividends.

The key drivers of PMC's performance were companies in the Asian region, led by information technology and financials. The Company has continued to heavily favour companies in Asia, especially China and India, over those in the United States. At 30 June 2017, PMC had more than 37% net equity exposure to Asia versus only about 4% net equity exposure to the US.

Since inception (in 1994) and until 30 June 2017, the compound annual appreciation of the Company's NTA has been 12.37% per annum compared to the return from the MSCI All Country World Net Index $A of 6.67%. The comparable compound annual return from the Australian All Ordinaries Accumulation Index was 9.12% over the same period.

The Board believes that the Company's long-term track record demonstrates the success of the investment philosophy and process of the Company's Investment Manager.

PMC's Pre-Tax Net Tangible Assets (NTA) return (%) versus MSCI index^ to 30 June 2017 (%)

25.0%

20.0%

19.8%

Platinum Capital Limited MSCI AC World Net Index

16.9%17.1%

15.0%

10.0%

5.0%

15.3%

12.3%

9.3%

12.4%

6.7%

0.0%

One year Three years compound Five years compound

Since inception

pa pa

(29.6.94) compound pa

^ Morgan Stanley Capital International All Country World Net Index in A$

Pre-tax NTA return is calculated on a net assets basis, and after the deduction of management fees and other expenses. The investment returns shown are historical and no warranty can be given for future performance.

Source: Platinum Investment Management Limited and MSCI. All data where MSCI is referenced is the property of MSCI. No use or distribution of this data is permitted without the written consent of MSCI. This data is provided "as is" without any warranties by MSCI. MSCI assumes no liability for or in connection with this data.

For the year ended 30 June 2017, the Company made a statutory pre-tax operating profit of

$71.1 million and a post-tax operating profit of $49.9 million. For the prior year, the pre-tax operating loss was $26.8 million and the post-tax operating loss was $18.8 million.

Under Australian Accounting Standards, realised profits and losses are added to, or reduced by unrealised changes in the market value of the Company's total assets. This can lead to large variations in recorded statutory profits or losses from any one year to the next.

The Directors continue to maintain that a more appropriate measure of the Company's results is the percentage change in its pre-tax NTA plus dividends paid. On this measure, the Company has achieved a return of 19.79% for the 12 months to 30 June 2017.

Dividends

A fully-franked dividend of 6 cents will be paid for the year ended 30 June 2017, making 10 cents for the full year, representing an increase of 3 cents from the previous year.

Based on the 30 June 2017 share price of $1.685, this represents a dividend yield of 5.93% or 8.48% including franking credits.