CVC LIMITED — AGM Information 2021

Nov 22, 2021

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CVC Limited

ASX:CVC

Building partnerships

Annual General Meeting PRESENTATION FINANCIAL YEAR ENDED 30 JUNE 2021

23 November | 2021

Disclaimer

IMPORTANT NOTICE

This Presentation (as amended) (Presentation) has been prepared and issued by CVC Limited ACN 002 700 361 (CVC).

This Presentation must not be copied or distributed to other persons without the prior written consent of CVC, which may be given or withheld in its absolute discretion.

This document is not a prospectus and does not contain all of the information which would be required to be disclosed in a prospectus.

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FINANCIAL AMOUNTS

All dollar values are in Australian Dollars (A$) and financial data is presented as at the date of this presentation unless stated otherwise. CVC’s results are reported under Australian International Financial Reporting Standards, or AIFRS.

FUTURE PERFORMANCE

This Presentation contains certain ‘forward looking statements’ including statements regarding or based on CVC’s current belief, intent, assumptions or expectations with respect to the financial condition and performance, results and operations, business plans and objectives or management, capital adequacy, risk management practices and specific or general provisions.

SUMMARY INFORMATION

The information contained in this Presentation is of a general nature and in summary form. Neither CVC (nor any of its respective officers, employees, related bodies corporate, affiliates, agents or advisers) guarantees or makes any representation or warranty, express or implied, as to, or takes responsibility for, the accuracy, or reliability of the information contained in this document. CVC does not represent or warrant that this document is complete or that it contains all material information about CVC or which a prospective investor or purchaser may require in evaluating a possible investment in CVC or acquisition of CVC shares.

It is not intended to be relied upon as advice to investors or potential investors, and does not contain all information relevant or necessary for an investment decision or that would be required in a prospectus prepared in accordance with the Corporations Act.

Statements in this Presentation are made only as of the date of this Presentation unless otherwise stated and information in this Presentation remains subject to change without notice.

NOT AN OFFER

This Presentation is not a prospectus, disclosure document, product disclosure statement or other offering document under Australian law and does not constitute an invitation to subscribe for or buy any shares in CVC, including in any jurisdiction in which it would be unlawful, or a solicitation to engage in or refrain from engaging in any transaction.

NOT INVESTMENT ADVICE OR A RECOMMENDATION

This Presentation does not constitute investment or financial product advice, nor is it a recommendation to acquire shares in CVC. It is not intended to be used as the basis for making a financial decision, nor is it intended to constitute legal, tax, accounting or other advice. In particular, this Presentation is not intended to be relied upon as advice to any person and does not take into account the financial situation, objectives or needs of any person. This Presentation may not be relied on to make an investment or other financial decision, and you should make your own assessment and take independent professional advice in relation to the information, before making any investment decision in relation to CVC.

Forward looking statements can generally be identified by the use of forward looking words such as ‘anticipate’, ‘believe’, ‘expect’, ‘project’, ‘forecast’, ‘estimate’, ‘likely’, ‘intend’, ‘should’, ‘will’, ‘could’, ‘may’, ‘target’, ‘plan’ and other similar expressions within the meaning of securities laws of applicable jurisdictions. Indications of, and guidance or outlook on future earnings, distributions or financial position or performance are also forward looking statements. The forward looking statements contained in this Presentation involve known and unknown risks and uncertainties and other factors, many of which are beyond the control of CVC, and may involve significant elements of subjective judgement and assumptions as to future events which may or may not be correct.

There can be no assurance that actual outcomes will not differ materially from these forward-looking statements.

DISCLAIMER

No party other than CVC has authorised or caused the issue, lodgement, submission, dispatch or provision of this Presentation, or takes any responsibility for, or makes or purports to make any statements, representations or undertakings in this Presentation. Any information or representations not contained in this Presentation may not be relied upon as having been authorised by CVC.

Nothing contained in this document nor any information made available to you is, or shall be relied upon as, a promise, representation, warranty or guarantee, whether as to the past, present or future. Past performance information given in this document is given for illustrative purposes only and should not be relied upon as (and is not) any indication of future performance.

To the maximum extent permitted by law, CVC, officers, employees, agents and advisers disclaim all liability for any expenses, losses, damages or costs incurred by you as a result of this presentation being inaccurate or due to information being omitted from this Presentation, whether by way of negligence or otherwise, make no representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of the information in this Presentation.

The information in this Presentation remains subject to change without notice.

23 November 2021 | 2

CVC LIMITED | Annual General Meeting Presentation

CVC Limited – Ethos

1 July 2020 – 30 June 2021

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Relationships and Perspective

CVC seeks to invest in great people and opportunities. Our focus is often where others are not looking.

Our approach to building partnerships aims to deliver an ongoing investment pipeline through all stages of the economic cycle.

We pride ourselves on protecting capital while generating exceptional investment returns for shareholders.

23 November 2021 | 3

CVC LIMITED | Annual General Meeting Presentation

CVC – Results Summary

1 July 2020 – 30 June 2021

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• Detailed presentation of business segments available in Full Year Financial Results Presentation (released 25 August 2021)

• Significant improvement to trading results throughout the period: Net profit after tax of $28.0m (2020: net loss $2.7m)

• Net profit after tax attributable to shareholders $19.5m (2020: net loss $2.1m)

• Total fully franked dividends paid relating to the period of 8 cents per share (including final dividend paid on 20 August 2021)

• Increase in statutory Net Assets per share from $1.43 to $1.56 as at 30 June 2021 with further unrecognised uplift in investment portfolio

•	Increased exposure and returns from property investment activities 20211	Increased exposure and returns from property investment activities 20211	20202
	SEGMENT CONTRIBUTION	$(m)	$(m)
	Direct property investment	23.7	(1.1)
	Property backed lending	13.7	8.1
	Non property investments	10.1	(4.1)
	Convertible note interest	(3.0)	(3.6)
	Unallocated	(6.6)	(4.3)
	Tax effect	(9.9)	2.3
	Net Profit After Tax	28.0	(2.7)
	Net Profit Attributable to Shareholders	19.5	(2.1)

1. Numbers include the impact of consolidation of Eildon Capital Group into CVC Limited

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1. Comparative balances have been changed for consistency

23 November 2021 | 4

CVC LIMITED | Annual General Meeting Presentation

Strategic Direction

1 July 2020 – 30 June 2021

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Prime focus on Property Related Investment

Long history of success and proven track record in this segment:

• Deployed $660m in capital to this segment since 2010

• Allocation of investment has been 60% debt, 40% equity

• Generated pre-tax returns of 15.6%p.a from completed investments

• Unrealised portfolio contains substantial investments held at cost anticipated to generate significant returns in both the short and longer term (Donnybrook, Marsden Park, Liverpool)

	2021	2020
SEGMENT INVESTMENT ALLOCATION	%	%
Direct Property	28.46	24.55
Property Backed Lending	40.10	45.91
Non Property Investments	14.29	21.87
Cash and Deposits	17.15	7.67
TOTAL	100.00	100.00

1. Comparative balances have been changed for consistency

Objectives:

• Optimise returns from significant property investments already on balance sheet

• Continue partnership approach to investment in new opportunities

• Maintain a significant position in real estate lending segment

Foundations of success:

People	Alignment	Alignment	Conviction
Proactivity	Understanding Risk		Responsiveness
Downside Protection		Simplicity

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CASH & DEPOSITS
DIRECT PROPERTY
17%
29%
NON PROPERTY
INVESTMENTS 14%
40%
PROPERTY BACKED
LENDING
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23 November 2021 | 5

CVC LIMITED | Annual General Meeting Presentation

Our Pillars of Strength

1 July 2020 – 30 June 2021

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• Craig Treasure appointed as Executive Chairman (Previously MD and CEO of Villa World Limited)

Team

• Have worked together on a large number of transactions as partners in investment for over a decade

• • Represented on the ground in New South Wales, Victoria and Queensland

• We are a capital provider seeking best in market partners

Network

• Review countless deals which provide strong flow of relevant and current market data

• Our consultants and advisors provide a wealth of knowledge and support

• Our partners provide us insight to transactions even if they are not involved

Balance Sheet and Process

• Strong capital base with cash on hand allows us to act decisively

• Relationship management, deal sourcing, structuring and due diligence are all done by a small team

• No complex hierarchy. We know what we can and can’t achieve

• Approach each deal with an open mind and expecting flexibility in thinking will be a key to success

23 November 2021 | 6

CVC LIMITED | Annual General Meeting Presentation

Year to Date

1 July 2020 – 30 June 2021

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Events Subsequent to 30 June 2021

• Deployed $39.5m across 11 new investments

• $3.2m property equity

• $34.8m property debt

• $1.5m non property (including investment into CVC Emerging Companies Fund II)

• Completion of the Elara Neighbourhood Shopping Centre delivering strong profit outcome

• Commencement of construction of Caboolture Retail Centre and Bunnings Warehouse (anticipated completion October 2022 and September 2022 respectively)

• Progressing a liquidity event for the CVC 50% interest in East Bentleigh investment – target FY22 settlement

• Continuation of rezoning progress for

• Donnybrook – anticipated Q1 CY22

• Marsden Park North – medium term

• Liverpool - longer term

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23 November 2021 | 7

CVC LIMITED | Annual General Meeting Presentation

CVC Outlook

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Forecast Performance

• Nature of investments make forecasting financial year performance difficult, however:

• Property portfolio expected to commence delivering strong profit and cash return from equity investments during the period;

• Debt investments anticipated to contribute to earnings in a meaningful manner;

• Non property investments have potential to contribute to earnings depending on strategic outcomes;

• Progression of some key property investments may not deliver accounting profit or cash return this period but could advance the value of the business meaningfully as planning outcomes progress.

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Capital Management

• The Board is committed to paying dividends having regard to both profitability and underlying performance of the investments of the business

• Fully franked dividends for the 2021 Financial Year totalled 8 cents per share reflecting a yield of 4%p.a. based on 30 June 2021 closing price and a payout ratio of 48%

• Subject to satisfactory results being achieved in FY22, the Board is targeting similar dividend payments this period

• The convertible note remains within lending covenants

• Continue to evaluate the merit of both share and convertible note buybacks

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23 November 2021 | 8

CVC LIMITED | Annual General Meeting Presentation

CVC Limited Proxy Results

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Meeting Resolutions

Resolution 1 – Adoption of Remuneration Report

For	Against	Abstain	Discretion	Excluded	Total
13,434,987	31,769	30,478,392	843,768	68,000	44,856,916

Resolution 2 – Election of Mr Ian Campbell as a Director

For	Against	Abstain	Discretion	Excluded	Total
31,813,148	12,420,000	-	623,768	-	44,856,916

Resolution 3 – Election of Mr Craig Treasure as a Director

For	Against	Abstain	Discretion	Excluded	Total
44,233,148	-	-	623,768	-	44,856,916

Resolution 4 – Approval of CVC Employee Long-Term Incentive Plan

For	Against	Abstain	Discretion	Excluded	Total
13,655,530	369,226	30,140,392	623,768	68,000	44,856,916

Resolution 5 – Grant of Performance Rights to Mr Mark Avery

For	Against	Abstain	Discretion	Excluded	Total
13,644,987	379,769	30,140,392	623,768	68,000	44,856,916

Resolution 6 – Grant of Performance Rights to Mr Craig Treasure

For	Against	Abstain	Discretion	Excluded	Total
13,644,987	379,769	30,140,392	623,768	68,000	44,856,916

Resolution 7 – On-Market Buy Back

For	Against	Abstain	Discretion	Excluded	Total
44,197,262	35,886	-	623,768	-	44,856,916

Resolution 8 – Spill Resolution (Conditional Item)

For	Against	Abstain	Discretion	Excluded	Total
1,163,715	43,046,765	22,668	623,768	-	44,856,916

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CVC LIMITED | Annual General Meeting Presentation

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Contact Details

Suite 40.04 Level 40 Governor Phillip Tower 1 Farrer Place Sydney NSW 2000

P (02) 9087 8000 W www.cvc.com.au