Marlin Triples First Half Net Profit

Marlin Global Limited (MLN)
Results for announcement to the market

Reporting Period 6 months to 31 December 2017
Previous Reporting Period 6 months to 31 December 2016

Amount (000s) Percentage change
Revenue from ordinary
activities
$NZ 12,705 153.3%
Profit (loss) from ordinary
activities after tax
attributable to security
holder
$NZ 10,799 202.2%
Net profit (loss) attributable
to security holders
$NZ 10,799 202.2%

Dividend Amount per security Imputed amount per
security
Marlin will pay a partially
imputed quarterly dividend
in line with its distribution
policy.
$NZ 1.93 cps Nil

Record Date 15 March 2018
Dividend Payment Date 29 March 2018

Comments:
The interim financial statements attached to this report
have been reviewed by PricewaterhouseCoopers and are
not subject to a qualification. A copy of the independent
review report applicable to the interim financial statements
is attached to this announcement.


Net asset value per share 31 December 2017 $0.95 (2016: $0.83)

---

For immediate release:
19 February 2018

Marlin Triples First Half Net Profit
 Gross performance return +12.2%
 Total shareholder return +12.7%
 3.70cps dividends paid
Marlin shareholders have enjoyed a very strong result for the first half of financial 2018, with net
profit after tax of $10.8m for the six months ended 31 December 2017, three times ahead of the
corresponding prior period.
This is an excellent result for shareholders. Whilst market conditions have definitely been
favourable to international equities, the Marlin portfolio has performed very well, returning good
results for shareholders who have backed the Fisher Funds STEEPP portfolio approach.
In accordance with Marlin’s consistent 8% per annum managed distribution policy, the company will
pay a dividend of 1.93 cents per share on 29 March, taking total dividends for the year to date (three
of four quarterly payments per annum) to 5.63cps.
Marlin has a number of capital initiatives in place (share buybacks, warrants programme, managed
distribution policy) designed to help reduce the discount between the share price and the net asset
value of the portfolio. Nevertheless, at market close on 16 February the gap between share price
($0.83) and net asset value ($0.96) was stubbornly significant at 13 cents per share.
Marlin’s warrants programme has been on hold, given the size of the share price to net asset value
discount over recent months. The board believes warrants are viewed favourably by shareholders,
and monitors a range of factors including the discount, to determine the potential timing for a
further warrant issue.
As at 31 December 2017, the Marlin portfolio was valued at $104.4m plus cash on hand at $8.4m.
Marlin’s investment philosophy is to be relatively fully invested in equities (more than 90%) so that
shareholders can make their own asset/investment allocation decisions depending on how they
perceive the economic outlook.
The key components of the 2018 interim result were gains on financial assets of $12.4m, dividend
and interest income of $0.3m, offset by operating expenses and tax of $1.9m.
Marlin’s Chair, Alistair Ryan, said “Shareholders can be pleased with the rigorous efforts of the
Marlin investment team over the last 4-5 years, to rebuild the portfolio and generate strong returns
for shareholders. Marlin has positioned itself well to flourish in what can often be a volatile
environment, with the composition of the portfolio continually assessed against the company’s

rigorous investment philosophy and criteria. Marlin’s continues to compare favourably against its
market index¹ on a 12 month basis to 31 December 2017”.
Marlin’s Senior Portfolio Manager, Ashley Gardyne, notes “2017 was a very strong year for global
share markets with a host of positive economic data pushing markets to record highs. It was a busy
year for our team as we sought to identify new investment opportunities and increase the resilience
of the portfolio. We were pleased to see our large long-term holdings such as PayPal and Alibaba,
and a number of our new positions including Abbott Laboratories and William Demant, contributing
significantly to Marlin’s performance.”
Mr Gardyne added, “After a year of very low volatility global markets have been choppy so far in the
2018 calendar year. Markets are never one-way traffic and are often two steps forward, one step
back. While the return of volatility can take a while to get used to, it creates greater opportunity for
us to initiate new investments and add to our favourite holdings.”
For further information please contact:
Corporate Manager
Marlin Global Limited
Tel: (09) 484 0352

¹ S&P Large Mid Cap/S&P Small Cap Index (50% hedged to NZD)
The total shareholder return, adjusted net asset value and gross performance return methodologies are
described in the Marlin Non-GAAP Financial Information policy. A copy of the policy is available at
http://marlin.co.nz/about-marlin/marlin-policies/

About Marlin Global
Marlin Global is a listed investment company that invests in growing companies based outside of New Zealand
and Australia. The Marlin portfolio is managed by Fisher Funds, a specialist investment manager with a track
record of successfully investing in growth company shares. The aim of Marlin is to offer investors competitive
returns through capital growth and dividends, and access to a diversified portfolio of investments through a
single, tax-efficient investment vehicle. Marlin listed on the NZX Main Board on 1 November 2007 and may invest
in companies that are listed on any approved stock exchange (excluding New Zealand or Australia) or unlisted
international companies not incorporated in New Zealand or Australia.

---

PricewaterhouseCoopers, 188 Quay Street, Private Bag 92162, Auckland 1142, New Zealand
T: +64 9 355 8000, F: +64 9 355 8001, pwc.co.nz
Independent review report
to the shareholders of Marlin Global Limited


Report on the Interim Financial Statements
We have reviewed the accompanying interim financial statements of Marlin Global Limited (the
Company) on pages 1 to 9, which comprise the statement of financial position as at 31 December 2017,
and the statement of comprehensive income, the statement of changes in equity and the statement of
cash flows for the period ended on that date, and notes to the interim financial statements.
Directors’ responsibility for the interim financial statements
The Directors are responsible on behalf of the Company for the preparation and presentation of these
interim financial statements in accordance with New Zealand Equivalent to International Accounting
Standard 34 Interim Financial Reporting (NZ IAS 34) and for such internal control as the Directors
determine is necessary to enable the preparation of interim financial statements that are free from
material misstatement, whether due to fraud or error.
Our responsibility
Our responsibility is to express a conclusion on the accompanying interim financial statements based
on our review. We conducted our review in accordance with the New Zealand Standard on Review
Engagements 2410 Review of Financial Statements Performed by the Independent Auditor of the
Entity (NZ SRE 2410). NZ SRE 2410 requires us to conclude whether anything has come to our
attention that causes us to believe that the interim financial statements, taken as a whole, are not
prepared in all material respects, in accordance with NZ IAS 34. As the auditor of the Company, NZ
SRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual
financial statements.
A review of interim financial statements in accordance with NZ SRE 2410 is a limited assurance
engagement. The auditor performs procedures, primarily consisting of making enquiries, primarily of
persons responsible for financial and accounting matters, and applying analytical and other review
procedures. The procedures performed in a review are substantially less than those performed in an
audit conducted in accordance with International Standards on Auditing (New Zealand) and
International Standards on Auditing. Accordingly, we do not express an audit opinion on these interim
financial statements.
We are independent of the Company. Other than in our capacity as auditor, we have no relationship
with, or interests in, the Company.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that these interim
financial statements of the Company are not prepared, in all material respects, in accordance with NZ
IAS 34.
Who we report to
This report is made solely to the Company’s shareholders, as a body. Our review work has been
undertaken so that we might state to the Company’s shareholders those matters which we are required
to state to them in our review report and for no other purpose. To the fullest extent permitted by law,
we do not accept or assume responsibility to anyone other than the shareholders, as a body, for our
review procedures, for this report, or for the conclusion we have formed.

For and on behalf of:



Chartered Accountants Auckland
19 February 2018