Marlin Global ASM Presentation – 14 November 2017

Annual Meeting
of Shareholders
Marlin Global Limited
14 November 2017

Agenda
•Preliminary matters (Annual Report, minutes
& class financial advice)
•Chair’s Overview
•Manager’s Review
•Q&A
•Annual Meeting Resolutions

Board of Directors
Investment Team
Alistair RyanCarmel Fisher
Andy Coupe
Carol Campbell
Ashley Gardyne
Snr Portfolio Manager
Chris Waters
Snr Investment Analyst

Chair’s Overview
Presentation of Annual Result

Marlin’s Investment Objectives
Achieveahighrealrateofreturn,comprisingboth
incomeandcapitalgrowthwithinacceptablerisk
parameters
Accesstoadiversifiedportfolioofinternational
quality,growthstockssingletax-efficientvehicle
Absolute Returns
Diversified Portfolio

2017 Overview
Net profitDividendNAV per share
$15.7m
(2016: -$6.9m)
6.81cps
(2016:7.47cps)
$0.89
(2016: $0.83)
Total shareholder
return*
Dividend return
Adjusted NAV
return*
+9.1%
(2016: -0.3%)
+8.6%
(2016: +8.6%)
+16.8%
(2016: -6.7%)
*These metrics are Non-GAAP measures calculated in accordance with the methodology described in the Marlin Non-GAAP
Financial Information Policy which is available on the Marlin website.

Use of Shareholder Funds
94
106
-8
-0.5
+1
+16
+3
70
75
80
85
90
95
100
105
110
115
Opening
NAV
Net
Profits
Dividends
Paid
Dividends
Reinvested
BuybacksShares issued for
warrants exercised
Closing
NAV
Year ended 30 June 2017 ($m)

Portfolio Performance
For the year ended
30 June
12 months
3 years
(annualised)
5 years
(annualised)
Gross
Performance
Return*
+22.4%+12.2%+13.4%
Benchmark
Index^
+19.2%+14.6%+16.5%
*This metric is a Non-GAAP measure calculated in accordance with the methodology described in the Marlin Non-GAAP Financial
Information Policy which is available on the Marlin website.
^World Small Cap Gross Index until 30 September 2015 & S&P Large Mid Cap/S&P Small Cap Index (hedged 50% to NZD) from 1
October 2015.

2017/2018 First Four Months
30 June –31 October 2017
Total shareholderreturn*
+6.3%
Gross performance return*
+12.5%
NAV per share
$0.98
Blended Index^
+11.5%
Net profit
$11.8m
*These metrics are Non-GAAP measures calculated in accordance with the methodology described in the Marlin Non-GAAP Financial
Information Policy which is available on the Marlin website.
^S&P Large Mid Cap/S&P Small Cap Index (hedged 50% to NZD)

Manager’s Review
AshleyGardyne
Senior Portfolio Manager

Agenda
1.Why own international shares?
2.Review of markets in 2017
3.Portfolio activity and performance
4.Outlook

Why Marlin
1. Why own international shares?

Why Marlin
Why bother with international shares?
•Opportunity to own world leading
companies
•
•Not linked to NZ economy,
shares or property
•Exposure to other
currencies

-3.8%
-3.9%
20.4%
MarlinBenchmarkNZX50
22.4%
19.2%
10.4%
MarlinBenchmarkNZX50
FY17
Why bother with international shares?
FY16
Benchmark: World Small Cap Gross Index until 30 September 2015 & S&P Large Mid Cap/S&P Small Cap Index (hedged 50% to NZD) from 1
October 2015.

2. Review of markets in 2017

May-16Aug-16Nov-16Feb-17May-17
What drove global markets in 2017?
+15%

May-16
Aug-16
Nov-16
Feb-17
May-17
What drove global markets in 2017?
Market driven by
earnings growth
+15%
+16%

Why Marlin
(1)
-
1
2
3
4
5
6
7
8
9
NZUSEuropeChina
%
20122017
And what drove corporate earnings?
Global GDP growth (%)
Higher and more synchronised

3. Portfolio activity and
performance

Selected exits and additions
Exits
Additions
•Global leader in heart valves
•Large growth opportunity in
minimally-invasive heart repair
•Market too focused on quarterly
earnings
•Service provider to oil industry
•Long track record of growth
•Opportunity given weak oil price
•Exposure to new sector
•#2 global hearing aid supplier
•High tech barriers to entry
•Steadily growing demand
•Opportunity to grow in retail
•#1 US medical waste operator
•US hospital consolidation led
to lower bargaining power
•Growth outlook reduced
•Global leader in ostomy care
•Great business, but growth
outlook now more challenged
•Better opportunities elsewhere
•Global infant formula player
•Leader in emerging markets
•Exited at 30% premium after
takeover

0%
10%
20%
30%
40%
50%
Denmark
UK
Australia
US
France
Italy
Spain
Hearing aid penetration
Key new addition:
Leader in hearing care...
... benefiting from new technology
and increasing adoption
What does William Demant do?
•2
nd
largest hearing aid manufacturer
•Market leader in hearing diagnostics
•Large growing chain of audiologists
•Growing business in hearing implants
We like William Demant because:
•Oligopolistic market with 4 key players
•High technological barriers to entry
•Gaining share via leading technology
•Steadily growing demand
•Opportunity to grow retail business
•High incremental margins

-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
Our companies delivered strong growth
EBITDA growth for the 12 months ended 30 June 2017
EBITDA Growth (%)

-20
-10
--
10
20
30
40
50
60
70
80
Total Shareholder Return (%)
Marlin portfolio companies
Why Marlin
Which has driven strong returns

Why Marlin
Investment process rewarded
Marlin gross performance vs global markets (%)
22%
19%
10%
13%
15%
19%
12%
Marlin
Benchmark
NZ
Australia
USA
Europe
UK
Benchmark: S&P Large Mid Cap/S&P Small Cap Index (hedged 50% to NZD)
For the year ended 30 June 2017

Why Marlin
The result: A balanced portfolio
# of companies
29(32)
# ofcountries
11(9)
EBITDA growth
+13% (14%)
Marlin portfolio –Sector split

4. Outlook

Markets have had a good run ...
Why Marlin
...and investors need to be more selective
ASX 200
MSCI EM
MSCI Europe
S&P500
NZX50
20
40
60
80
100
120
140
160
180
200
20072008200920102011201220132014201520162017
PE multiple
19.8x
18.0x
15.1x
16.0x
12.9x

Why Marlin
Marlin is doing its job for you
•International shares play important role in
portfolios
•We continually scour the globe for the best
investments
•Our goal is to maintain a portfolio of high
quality growth stocks that will outperform over
an economic cycle

General Questions
from Shareholders
(not relating to resolutions)

AnnualMeeting
2017 resolutions

2017 Annual Meeting Resolutions
•Introduce and propose
•Discussion, questions
•Enter your vote on voting paper and
lodge your voting paper at end of
resolutions

Matters of Business
•Annual Report
•Resolutions:
–Re-elect Andy Coupe
–Auditor’s remuneration

Resolution 1
Re-election of Andy Coupe
To re-elect Andy Coupe as a director
of Marlin Global Limited

Resolution 2
Auditor’s Remuneration
To authorise the Board of Directors to
fix the remuneration of the auditor for
the ensuing year

Proxy Count
ResolutionForAgainstDiscretionaryTotalAbstain
Re-elect Andy
Coupe
4,375,919861,5021,892,4037,129,8240
Fix auditor’s
remuneration
5,048,667233,4191,767,2307,049,31680,508
Proxy votes to date: 7.1 million

Conclusion
•Complete and sign voting paper
•Voting papers in the voting boxes
•If you need a voting paper please
see Computershare
•Results to NZX

Thank you