Hearts and Minds Investments : HM1 Appendix 4D and Half Year Financial Report

For personal use only

Appendix 4D

Hearts and Minds Investments Limited (HM1)

ABN 61 628 753 220

Interim Financial Report

Results for Announcement to the Market for the Half-Year ended 31 December 2021

	Change	31 Dec 2021	31 Dec 2020
		$'000	$'000
Total net investment income	130%	3,054	(9,979)
Profit/(Loss) from ordinary activities after tax	77%	(2,619)	(11,223)
Other comprehensive income/(loss) net of tax	-121%	(21,634)	102,545
Total comprehensive income/(loss) net of tax	-127%	(24,252)	91,322

Net Tangible Assets (NTA) Per Ordinary Share

	31 Dec 2021	30 Jun 2021
Pre-Tax NTA per ordinary share	$4.11	$4.33
Net tax (liability) per ordinary share	($0.30)	($0.41)
Post-tax NTA per ordinary share	$3.81	$3.92

Dividends

The Directors of HM1 are pleased to declare a fully franked dividend of 13.5 cents per share payable on April 12, 2022. The dividend represents a 12.5% increase on last year's dividend of 12 cents per share. We retain a significant buffer in our profits reserve and franking accounts to cover dividend payments at the current level for the next few years.

The Dividend Reinvestment Plan (DRP) will be in operation and participating shareholders can reinvest their cash dividend in new HM1 shares at the DRP issue price. The DRP issue price will be the volume weighted average price on the four trading days following the dividend record date.

		Cents per			Franking
		ordinary
				%
		share
Dividend per ordinary share	13.5	100%
Dividend dates:
Ex-dividend date:					30 March 2022
Record date:					31 March 2022
DRP election date:					4 April 2022
Payment date:					12 April 2022

Hearts and Minds Investments Limited ACN 628 753 220

A: 12.04A, Chifley Tower, 2 Chifley Square, Sydney NSW 2000 | W: HM1.com.au | E: [e-mail] | P: 1300 737 760 or [phone]

Appendix 4D

For personal use only

Brief Explanation of Results:

HM1 recorded a total loss after tax of $24.3 million for the half-year ended 31 December 2021 compared to a total profit after tax of $91.3m in the prior December half. The result for the period reflects realised gains from disposals during the half, offset by unrealised mark to market losses on the investment portfolio as of 31 December 2021.

Significant realised gains were achieved on the 2020 Conference portfolio which delivered a 23% pre-tax return over the 1 year holding period. However, the realised gains were more than offset by unrealised losses recorded across the total portfolio as of 31 December 2021. The NTA of the Company decreased over the half-year from $886.0 million on 30 June 2021 to $861.7 million on 31 December 2021. This equates to a post-tax NTA per share of $3.81 on 31 December 2021.

In line with its philanthropic objective, HM1 provides financial support to leading Australian medical research organisations in order to help the development of new medicines and treatments and drive a new generation of medical research in Australia. HM1 and its participating fund managers and service providers forego any fees and instead an amount equivalent to 1.5% of NTA per annum is donated to designated charities. In the half-year to 31 December 2021 the Company paid $6.4m in donations and has accrued a further $6.7m as of 31 December 2021. This accrued donation amount will be paid to designated charities during March 2022 to fund medical research.

This report is based on the 31 December 2021 Interim Financial Report which has been subject to independent review by Pitcher Partners. All the documents comprise the information required by Listing Rule 4.2A. The information should be read in conjunction with the 30 June 2021 Annual Financial Report.

Hearts and Minds Investments Limited ACN 628 753 220

A: 12.04A, Chifley Tower, 2 Chifley Square, Sydney NSW 2000 | W: HM1.com.au | E: [e-mail] | P: 1300 737 760 or [phone]

For personal use only

Hearts and Minds Investments Limited

Interim

Financial

Report

For the half-year ended 31 December 2021

ACN 628 753 220

For personal use only

Hearts and Minds Investments Limited

For the half-year ended 31 December 2021

Contents

Corporate Directory	1
Directors' Report to Shareholders	2
Auditor's Independence Declaration	7
Financial Statements
Statement of Comprehensive Income	8
Statement of Financial Position	9
Statement of Changes in Equity	10
Statement of Cash Flows	11
Notes to the Financial Statements	12
Directors' Declaration	19
Independent Auditor's Review Report to the Shareholders	20

For personal use only

Hearts and Minds Investments Limited

ACN 628 753 220

Corporate Directory

Corporate Directory
Directors	Christopher Cuffe AO	Chairman and Independent Director
(Pro bono)	Lorraine Berends	Independent Director
	Guy Fowler	Independent Director
	Matthew Grounds AM	Independent Director
	Michael Traill AM	Independent Director
	Gary Weiss AM	Independent Director
	Geoffrey Wilson AO	Independent Director
	David Wright	Independent Director
Company Secretary	Tom Bloomfield
(Pro bono)
Investment Committee	David Wright	Chairman
(Pro bono)	Christopher Cuffe AO
	Lorraine Berends
	Matthew Grounds AM
	Brett Paton
	Paul Rayson
Core Fund Managers	Caledonia (Private) Investments
(Pro bono)	Cooper Investors
	Magellan Asset Management
	Paradice Investment Management
	Regal Funds Management
	TDM Growth Partners
2020 Conference Fund Managers	Cota Capital (USA)	Jericho Capital Asset Management (USA)
(Pro bono)	Tekne Capital Management (USA)	Tribeca Investment Partners
	ARK Invest (USA)	Munro Partners
	Prince Street Capital (SG)	Cooper Investors
	Paradice Investment Management	VGI Partners
	Atreides Management (USA)	Regal Funds Management
	TDM Growth Partners	Milford Asset Management
Registered Office	Boardroom Pty Limited
	Level 12, 225 George Street
	Sydney NSW 2000
Auditor	Pitcher Partners
	Level 16, Tower 2 Darling Park
	201 Sussex Street, NSW 2000
	Telephone: [phone]
Administrator	Citco Fund Services (Australia) Pty Limited
	Level 22, 45 Clarence Street
	Sydney NSW 2000
	Telephone: [phone]
Share Registrar	Boardroom Pty Limited
	Level 12, 225 George Street
	Sydney NSW 2000
	Telephone: [phone]
Stock Exchange	Australian Securities Exchange
	The home exchange is Sydney
	ASX code: HM1 Ordinary Shares

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