Marlin ASM Presentation 31 October 2018

Annual Meeting
of Shareholders
MARLIN GLOBAL LIMITED
31 October 2018

Agenda
•Minutes of 2017 Meeting
•2018 Annual Report
•Chair’s Overview
•Manager’s Review
•Q&A
•Annual Meeting Resolutions

Board of Directors
Marlin Team
Alistair Ryan
Carmel Fisher
Andy Coupe
Carol Campbell
Ashley Gardyne
Snr Portfolio
Manager
Chris Waters
Snr
Investment
Analyst
Wayne Burns
Corporate
Manager
Harry Smith
Snr Investment
Analyst

Chair’s Overview
Presentation of Annual Result

Marlin’s Investment Objectives
Absolute Returns
Achieve a high real rate of return, comprising both income and
capital growth within acceptable risk parameters
Diversified Portfolio
Access to a diversified portfolio of international quality,
growth stocks in a single tax-efficient vehicle

2018 Overview
Net profit
$23.8m
(2017: $15.7m)
NAV per share
$1.02
(2017: $0.89)
Dividend
7.59cps
(2017: 6.81cps)

2018 Overview
Total shareholder
return*
+21.5%
(2017: +9.1%)
Dividend return ^
+9.6%
(2017: +8.6%)
Share price
$0.86
(2017: $0.79)
*
The return to an investor who reinvests their dividends, and if in the money, exercises their
warrants at warrant maturity date for additional shares.
^How much Marlin pays out in dividends each year relative to its share price.
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
for the year to 30 June 2018 ($m)

2018 Overview
For the year ended
30 June
12 months
3 years
(annualised)
5 years
(annualised)
Adjusted NAV
return*
(Net return to an investor
after fees and tax)
+23.2%
(2017: +16.8%)
+10.3% +11.6%
Benchmark
Index^
+17.1%
(2017: +19.2%)
+10.3% +14.7%
*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.
^Blended index : World Small Cap Gross Index until 30 September 2015 & S&P Large Mid Cap/S&P Small
Cap Index (hedged 50% to NZD) from October 2015.
Portfolio Performance

Quarter 1, 2019
30 June – 30 September 2018
Total shareholder return*
+12.7%
Net profit
$6.0m
NAV per share
$1.05
Adjusted NAV Return*
+5.0%
Share price
$0.94
Benchmark Index^
+4.3%
*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.
^Blended index : World Small Cap Gross Index until 30 September 2015 & S&P Large Mid Cap/S&P Small Cap
Index (hedged 50% to NZD) from October 2015.

Warrants
•16 April 2018: Announcement of new warrant issue
by Marlin (MLNWC).
•2 May 2018: Allotment of 29.7m Marlin warrants.
Exercise price $0.83, less the dividends paid per
share between 2 May 2018 & 12 April 2019.
•3 May 2018: Marlin warrants listed on NZX Main
Board.
•10 April 2019: Final date for trading Marlin warrants
on NZX.
•12 April 2019: Exercise Date for Marlin warrants.

Manager’s Review
Ashley Gardyne
Senior Portfolio Manager

Marlin turns 10
Marlin Gross Portfolio Performance
vs Global Benchmark (%)

Agenda
1. Review of markets in 2018
2. Portfolio activity and positioning
3. Company performance
4. Outlook

1. Review of markets in 2018

Jun-17Sep-17Dec-17Mar-18Jun-18
Another strong year for global markets
+9%
MSCI
World

Why Marlin
Another strong year for global markets
US +12%
Jun-17Sep-17Dec-17Mar-18Jun-18
EU +0%
UK +4%
MSCI
World
...but all driven by the US
China
-10%

9%
6%
27%
MSCI World Other sectors Tech
Index return
Why Marlin
Tech a large and increasing driver of returns
Tech sector boosted market
returns...
...and is an increasingly
important market segment
Largest 5 global companies
2008
2018

2. Portfolio activity and positioning

Why Marlin
Selected portfolio changes
ExitsAdditions
•
Leader in carbon fibre composites
•
Suppliers to Boeing & Airbus
•
High barriers to entry in aerospace
•
Fuel efficiency driving strong growth
•
Largest global social media platform
•
Rapid digital ad growth
•
Strong network effect
•
Upside from Instagram, WhatsApp
and Messenger monetisation
•
2
nd
largest hearing aid manufacturer
•
Strong product cycle and share gains
since investment in early 2017
•
Valuation became stretched for
moderate growth
•
Exited following takeover
•
#1 operator in digital gift-card market
•
High cash flow business
•
Lumpy growth made public market
environment challenging for mgmt
•
Leading global jewellery brand (charms)
•
Repeat customers and gifting demand
•
Sales slowdown due to lack of
innovation and ‘charm fatigue’
•
Lack of confidence in turnaround plan
•
#1 US off-price retailer
•
Strong customer value proposition
•
Beneficiary of US deptstore closures
•
Steady growth through cycle

- beneficiary of retail disruption
20%
10%
7%
11%
40%
50%
60%
70%
80%
90%
100%
20072017
US retail sales by format
Specialty/otherDept stores
ecommerceOff-price retail
•#1 US off-price retailer
•TJMaxx, Marshalls, HomeGoods& HomeSense
•Branded apparel at 20-60% discount
•Beneficiary of deptstore closures. Stock
sourced from closures and excess inventory
•Earnings growth in 19 of the last 20 years
•Longstanding mgmtteam
Why Marlin

Portfolio snapshot post changes
# of companies
25
# of countries
7
EBITDA growth
+16%
Marlin portfolio –Sector split

3. Company performance

-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
MSCI World
Portfolio companies growing faster than market
EBITDA growth 30 June 2015 –30 June 2018 (annualised)
Marlin portfolio companies

Why Marlin
– a multi decade growth runway
40%
68%
ChinaUS
Consumption / GDP
3
23.6
ChinaUS
Retail footprint per capita (sq ft.)
#1 in global ecommerceBenefiting from strong tailwinds
768
268
199
88
Merchandise sold (US$ billion)

Why Marlin
PaymentsAliPay
#1 in China
CloudAliCloud
#1 in China
VideoYouku
#3 in China
Food DeliveryEle.me
#2 in China
– a multi decade growth runway

Why Marlin
- Leader of the pack
High quality business
– #1 manufacturer of animal medicine
– Scale advantages
– Brand power
Structural growth
– Spending more on pets
(humanisation of animals)
– Growing global protein consumption
– Adjacencies –i.e. diagnostics
Stable earnings
– People still spend in recession
3.4%
4.1%
11.2%
US retail sales US pet spend Zoetis US
companion
revenue
Growth in spending (2012-2017)

Why Marlin
Portfolio
performance
Marlin Gross Portfolio Performance
vs Global Benchmark (%)

-30
-20
-10
--
10
20
30
40
50
60
70
Why Marlin
Stock
performance by company
Total Shareholder Return (%)
Marlin portfolio companies
Marlin gross return

4. Outlook

Outlook

Robust US economy with strong GDP growth

Unemployment low and wages growing

Strong corporate earnings growth
×
Trade tensions
×
Increasing interest rates
×
Slowing growth in some markets

Why Marlin
Innovation continues to drive growth
Digital payments
ecommerce
Healthcare
Digital advertising

Marlin is doing its job for you
•International shares play an important role in portfolios
•Marlin has a proven investment process and provides access
to world leading growth companies
•We continually scour the globe for the best investment ideas
•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)

2018 Annual Meeting Resolutions
•Introduction 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 Carol Campbell
-Directors’ remuneration
-Auditor’s remuneration

Proxy Count
ResolutionForAgainst Discretionary TotalAbstain
Re-elect Carol
Campbell
7,422,885 60,525 1,970,762 9,454,172 11,270
Directors’
remuneration
5,380,693 1,054,535 1,915,313 8,350,541 1,114,901
Auditor
remuneration
8,500,178 169,274 373,419 9,042,871 422,571
Proxy votes to date: 9 million

Resolution 1
Re-election of Carol Campbell
To re-elect Carol Campbell as a director of
the company.

Resolution 2
Directors Remuneration
To authorise that the maximum aggregate
remuneration able to be paid to all directors
(in their capacity as directors) of the company
be increased by $32,500 per annum from
$125,000 to $157,500 (plus GST if any) so
that Carmel Fisher can be paid a directors’
fee.

Resolution 3
Auditor’s Remuneration
To authorise the board of directors to fix the
remuneration of the auditor for the ensuing
year.

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

---

Marlin Global Limited
Phone +64 9 484 0365
Fax +64 9 489 7139
Private Bag 93502
Takapuna, Auckland

31 October 2018
Marlin Limited Annual Meeting
Chair’s Address from Alistair Ryan
[Slide: Marlin Global Limited Annual Meeting of Shareholders]
Welcome to the 11th Marlin Global Limited Annual Meeting of Shareholders. I am Alistair Ryan,
Chair of Marlin.
We are duly convened as a notice of meeting has been circulated to shareholders and I can confirm
that a quorum is present so I declare the meeting open.
Please note that the exits are at the back and front of the room. Please ensure you turn off your cell
phones.
At the conclusion of the meeting there will be a light lunch. We look forward to meeting many of you
after the meeting.
[Slide: Agenda]
To briefly cover off preliminary matters:
 The minutes of the 2017 annual shareholders’ meeting held on 14 November 2017 are
available at the registration desk and are also on the Marlin website.
 The 2018 annual report has been circulated to shareholders – additional copies are available
at the registration desk.
Now to today’s agenda. Firstly, I will give a brief update on Marlin’s 2018 financial year, and then
Marlin’s Senior Portfolio Manager, Ashley Gardyne will review the Marlin portfolio.
After the Manager’s Review, we will have a Q&A session, and will then move to the formal business
of the meeting. There are three resolutions for you to consider and vote on today, which are set out
in the notice of meeting.
[Slide: Introductions]
Let me introduce the front table.
Firstly, the directors. To my right is Carmel Fisher, then Andy Coupe and Carol Campbell.
Next to Carol is Ashley Gardyne, Senior Portfolio Manager for Marlin. Next to Ashley, is Wayne
Burns, who joined us in August as the new Corporate Manager for Marlin. Wayne has had an
extensive accounting career working mainly within the New Zealand financial services industry.

Also here today are Senior Investment Analysts Chris Waters and Harry Smith who are in the
audience, please stand Chris and Harry.
We are also pleased to have representatives from our share registrar, Computershare, auditor,
PricewaterhouseCoopers, our tax agent, Deloitte and our legal advisors, Bell Gully in the audience
today.
[Slide: Chair’s Overview]
Shareholders, it is my pleasure to again present the Chair’s Overview at this meeting.
[Slide: Marlin’s Investment Objective]
Before we begin the review of the year ended 30 June 2018, it is useful to refresh ourselves as to the
key investment objectives of Marlin, namely:
 to achieve a high real rate of return, comprising both income and capital growth, within risk
parameters acceptable to the directors; and
 to provide access to a diversified portfolio of international quality growth stocks through a
single tax-efficient investment vehicle.
Both of these objectives were achieved for the 2018 financial year.
The Board is committed to strong governance principles and to overseeing the Manager’s portfolio
performance on behalf of shareholders. The Investment Committee meets twice a year, on a six
monthly basis, to hear from the Manager about what has gone well and what has disappointed, and
to engage in a comprehensive review session covering key performance metrics, some of which we
will go through on the following slides. The Board meets formally six times per annum plus other
meetings as required.
We are pleased to report that Marlin has reported a strong net profit result and a strong absolute
return for the 2018 financial year which I will highlight further on the next slide and which Ashley will
discuss in more detail in the Manager’s Review.
[Slide: 2018 Overview]
So how has 2018 treated shareholders?
Marlin delivered a strong net profit of $23.8m for the 2018 financial year, well ahead of last year’s
net profit result of $15.7m.
Due to the strong performance in 2018, the overall net asset value (NAV) per share grew from $0.89
(as at 30 June 2017) to $1.02 (as at 30 June 2018) – even after dividends were paid out.
Marlin paid dividends during the year of 7.59 cents per share, in line with the dividends paid in the
prior year of 6.81 cents per share.
[Slide: 2018 Overview Continued]
Total shareholder return, (the return to an investor who reinvests their dividends, and if in the
money, exercises their warrants at warrant maturity date for additional shares) was 21.5% for the
year, well ahead of the 2017 total shareholder return of 9.1%.

Marlin’s regular dividends continued to contribute to the total shareholder return with the 7.59
cents per share paid in dividends per my earlier slide producing a dividend turn of +9.6% (2017:
+8.6%).

Total shareholder return also reflected the improved Marlin share price which rose from $0.79 cents
at the beginning of the year to $0.86 cents at year end, a 9% gain.

As the NAV improved, the share price to NAV discount (inclusive of the warrants on a pro-rated
basis), widened slightly from 11.2% (30 June 2017) to 13.7% (30 June 2018). Since year end, there
has been a narrowing of the discount to 7%, with the share price at $0.91, warrants at $0.08 and the
net asset value at $0.97.

The Board has a number of initiatives in place to help manage the share price to NAV discount
including the buyback programme. Over the 12 months to 30 June 2018, 3.8 million Marlin shares
were purchased under the buyback programme when the shares were trading at sufficiently deep
discounts. Shares purchased under the buyback programme are held as treasury stock and primarily
utilised under the dividend reinvestment plan.

[Slide: Use of Shareholder Funds]
The chart shows the Marlin NAV of $106m (as at 30 June 2017) increased $15m to $121m (as at 30
June 2018).
The movements during the year as represented by the grey and purple columns were:
 plus $23.8m net profit,
And movements due to our capital management initiatives:
 less $8.9m dividends paid,
 adding back $3.7m for dividends reinvested by shareholders, and
 less $3.1m for buybacks.
[Slide: Portfolio Performance]
As I mentioned earlier the investment objective of Marlin is to achieve a high real absolute rate of
return, comprising both income and capital growth, within acceptable risk parameters. Pleasingly,
we have seen an improvement in the portfolio performance this year.
The adjusted NAV return was +23.6% for the period which represents the net return to an investor
after fees and tax, which was significantly ahead of the 2017 return of 16.8%. The increase in return
was largely driven by stronger portfolio performance.
Marlin also outperformed its benchmark, which rose by 17.1% over the same period. Ashley will
discuss the international market dynamics and how the portfolio performed shortly in the Manager’s
Review.
While it isn’t an explicit investment objective, we do monitor the Manager’s performance relative to
its investment universe, and for Marlin we believe this is best represented by the S&P Large Mid
Cap/S&P Small Cap Index (hedged 50% to NZD) from 1 October 2015. Prior to 1 October 2015, the
benchmark was the World Small Cap Gross Index. As you can see, performance relative to the very
strong index performance has been somewhat challenging on a 3 year and 5 year annualised basis.

[Slide: Quarter 1, 2019]
The first quarter of Marlin’s 2019 financial year was relatively settled and markets had risen slightly,
that is before the significant global share market correction in the current month of October.
This slide provides a snapshot of those first three months of the current financial year to 30
September 2018, where you can see that:
Total shareholder return for the quarter was +12.7%.
Unaudited net profit for the three months was $6.0m.
NAV per share was $1.05, (bearing in mind that Marlin made a quarterly dividend payment of 2.05
cents per share in late September (paid on 28 September).
The share price to NAV discount, (Inclusive of the warrants on a pro-rated basis) narrowed to 7%,
from 13.7% at 30 June.
Marlin’s adjusted NAV return for those first three months was +5.0%, which represents the net
return to an investor after fees and tax, and
The benchmark index for the same three months, which was 4.3%.
New Zealand and global share markets have been experiencing significant volatility during October.
Currently the above benchmark index is down approximately 10% for the month of October, and
Marlin’s performance for the month is broadly in line with the benchmark. We recognise that these
periods of high volatility can cause concern for many investors, however we believe that the Marlin
diversified portfolio of quality companies coupled with the robust investment philosophy of Marlin’s
investment managers will ensure that Marlin continues to perform well over the long term.

[Slide: Warrants]
We formally announced the issue of 29.7 million Marlin warrants to the market on 16th April 2018,
& those warrants have been listed and traded on the NZX Main Board since early May of this year.
Currently listed at $0.08
The Exercise price for each warrant is $0.83, less the dividends paid per share between 2 May 2018
& 12 April 2019.
Warrants give holders the right, but not the obligation, to purchase additional shares in Marlin at a
discounted exercise price that has been adjusted downward for dividends declared between the
date of allotment of the Warrants and ending on the last business day before the final exercise price
is announced. The final exercise price will be announced next year in March.
Warrant holders have the option to exercise their warrants, sell their warrants on market or let their
warrants lapse. All warrants must be exercised by 12 April 2019. Any warrants not exercised by then
will lapse.

Closing remarks
In closing, on behalf of the Board I’d like to thank you shareholders for your continued support of
Marlin. I will now hand over to Ashley Gardyne, Senior Portfolio Manager of Marlin.
ENDS