CVC LIMITED — AGM Information 2023

Oct 23, 2023

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Annual General Meeting Presentation FINANCIAL YEAR ENDED 30 JUNE 2023

24 OCTOBER 2023 |

ASX:CVC

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.

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.

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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.

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.

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CVC LIMITED

1 July 2022[–] 30 June 2023

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CVC Limited is an ASX listed investment company with a focus on deploying capital into real estate opportunities

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CVC LIMITED

1 July 2022[–] 30 June 2023

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Annual General Meeting Agenda

24 October 2023

1. Chairman’s Introduction

2. Formal Business of the Meeting

3. CEO’s Presentation

4. Questions

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CVC – BOARD OF DIRECTORS

1 July 2022[–] 30 June 2023

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Craig Treasure Executive Chairman

Mark Avery Managing Director

Craig has over 35 years’ experience in business and property development both in publicly listed and private entities, and brings with him a wealth of knowledge and industry connections within the property sector.

Mark is an experienced property executive with more than 20 years of experience gained across private and listed property development and investment groups.

Mark joined CVC in 2010 and has been responsible for the real estate investments since that time. In 2019 he became CEO and Managing Director.

Craig was CEO and Managing Director of ASX listed Villa World Limited (ASX: VLW) until it was w acquired and delisted in late 2019.

w

Mark holds bachelor degrees in Commerce and Planning & Design from the University of Melbourne and a Masters of Business Administration from AGSM.

Craig provides strategic input to the business along with Board leadership, whilst working closely with the executive group developing our people and corporate culture. From a property perspective he provides an experienced overview of the transactions being undertaken by the company.

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John Leaver Executive Director

Ian Campbell Independent Director

John founded CVC over 30 years ago and has been a key contributor to its strategy and operations since that time.

Ian brings to CVC 30 years of experience as a former partner with Ernst and Young and predecessor firms, principally working with entrepreneurial companies in preparing them for growth, sale and the capital markets.

He served as Managing Director from 1984 to 2001 and is currently an executive of the business.

John has previously been a Director of Sunland Group Limited (ASX: SDG) and multiple other private and public w entities.

Ian is currently a Non-Executive Chairman of Kip McGrath Education Centres Limited (ASX:KME) and a w Non-Executive Chairman of Redox Limited (ASX:RDX).

Ian’s previous Non-Executive Director roles include Gloria Jeans Coffees International Pty Limited, Young Achievement Australia Limited and Green’s Foods Holdings Pty Limited.

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Business of Meeting

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PROXY VOTES

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Resolution 1 – Adoption of Remuneration Report

For	Against	Abstain	Discretion	Excluded	Total
13,363,036 93.92%	41,013 0.29%	- N/A	824,486 5.79%	41,693,200 N/A	116,824,094
Resolution 2 –Election of Mr Craig Treasure as a Director of the Company
For	Against	Abstain	Discretion	Excluded	Total
55,014,749 98.51%	5,000 0.01%	- N/A	824,486 1.48%	N/A	116,824,094
Resolution 3 –Approval of on-market buyback
For	Against	Abstain	Discretion	Excluded	Total
54,997,081 98.48%	22,668 0.04%	- N/A	824,486 1.48%	N/A	116,824,094

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CVC Results Summary

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1 July 2022[–] 30 June 2023

CVC LIMITED – FY 2023 RESULTS

1 July 2022[–] 30 June 2023

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• Net profit after tax of $13.9m (2022: $12.9m)

• Net profit after tax attributable to shareholders $13.4m (2022: $6.1m)

• Total fully franked dividends paid relating to the period of 9 cents per share (including final dividend paid on 18 August 2023)

• Net Assets per share $1.55 as at 30 June 2023 excluding non statutory uplift in asset values estimated at $1.03 per share as a result of independent valuations of property assets classified as inventory

• Corporate note at end of the period $29.9m (2022: $48.9m)

• Cash and equivalents at the end of period totalled $51.2m (2022: $26.4m)

SEGMENT CONTRIBUTION	2023 $(m)	2022 $(m)
Property Investments	24.7	27.4
Non Property Investments	5.8	1.2
Convertible Note / Note interest	(4.4)	(2.9)
Unallocated overhead expenses	(6.8)	(10.5)
Tax effect	(5.4)	(2.3)
Net Profit After Tax	13.9	12.9
Net Profit Attributable to Shareholders	13.4	6.1

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OVERVIEW OF CVC PORTFOLIO – 30 JUNE 2023

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Direct Property

Property Investments

• Relates to direct exposure, including in ordinary equity, preference equity, joint ventures and options to acquire an interest in direct property subject to planning outcome

• Significant uplift has been observed in portfolio via independent third party valuations, yet to flow through to balance sheet due to accounting standards

Property Backed Lending

• Comprises loans backed by underlying property assets with registered positions and additional corporate security and personal guarantees

72% 81% 9%

• CVC exposure to this segment reduced to $44.1m (2022: $79.6)

• Current portfolio of loans includes positions in property located in Victoria and Queensland

Other

Investments

Non-Property Investments

• Comprises listed investments, unlisted investments and secured lending opportunities that are non-property related

8%

• Anticipated to remain only a small part of the overall CVC investment portfolio

Other

Cash

• $51.2m of cash and cash equivalents

11%

All values are based on underlying market values rather than statutory values.

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CVC – SIGNIFICANT OUTCOMES

1 July 2022[–] 30 June 2023

Status of Business

• Capital Management

• Over $228m in capital raised, refinanced or repaid from investments during the period

• New corporate note raised in challenging market

• Closing cash and forecast capital inflows have business in strong position to execute on current portfolio of investments as well as assess new opportunities

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Segment Investment Allocation	2023 Adjusted %	2023 Statutory %	2022 Statutory %
Property Investment	38.4	67.1	77.9
Unrecognised Valuation Impact of Property Investments	42.7	-	-
Non-Property Investments	8.1	14.1	12.4
Cash and Deposits	10.8	18.8	9.7
TOTAL	100.0	100.0	100.0

• Reduction in number of investments

• Continued focus on portfolio rationalisation and increased concentration in investments

• Focus on business to progress existing property investments and seek out select future high conviction opportunities in this segment

• Significant Investments

• CVC and its JV partners executed the call option to purchase the Liverpool property with $32m in deposits now paid. Settlement in 2027 at a contract price of $165m

• Donnybrook project settlements have commenced. Significant industrial asset remains to be developed or divested.

• Marsden Park still delayed and awaiting State Government direction

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FY 2023 Adjusted FY 2023 Statutory
8% 14%
11%
19%
67%
81%
Non-Property Investments Direct Property Cash & Deposits
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CVC Events Subsequent

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1 July 2023[–] 24 October 2023

EVENTS SUBSEQUENT

1 July 2023[–] 24 October 2023

CVC continues to evaluate opportunities that can deliver meaningful shareholder returns over the medium term In FY2024 the business has identified and invested in two new projects in Victoria

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New Investments

Officer South

• CVC has deployed capital to support the purchase of 2 parcels of land in the Officer South Employment PSP

• The land is identified as future Industrial land and totals approximately 22Ha

• In partnership with a private developer, the contracts have five year settlement terms, in which time the rezoning of the precinct is anticipated to be completed (Victorian Planning Authority current timetable assumes submitted for final approval by Minister in Late 2024)

• Investment structure will see CVC commit approximately $19m in funding at a coupon rate of 15%p.a. and equity ownership of 70% of the project

Clyde North

• CVC has partnered with Wilmac Property Group to purchase approximately 8Ha of land in the emerging greenfield suburb of Clyde North in Melbourne’s south east

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• CVC is a 40% equity participant to this project, committing approximately $6.7m in capital

• The site is approved for a variety of uses and the business plan is to subdivide and either sell or develop individual allotments

• Settlement of the site will occur in December 2023 and the project is anticipated to occur over a 2-3 year time period

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CVC Outlook

1 July 2023[–] 30 June 2024

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OUTLOOK – OBJECTIVES

1 July 2023[–] 30 June 2024

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CVC has a sought after array of investments in property across New South

Wales, Queensland and Victoria

We are most focused on unlocking and optimising the significant value which exists in our investment portfolio which comprises some potentially city shaping projects

Objectives

Direct Property Investment

• Maximise value from Donnybrook industrial land. This may include a divestment or the progression of the development

• • Advance planning of Liverpool project with Department of Planning and Environment and Liverpool City Council. Objective to be on exhibition by end of FY 2024.

• • Receive meaningful position from Department of Planning and Environment on Marsden Park North planning

• • Progress initial development works at Burleigh Waters site and progress commercial outcomes on subdivided land

• • Complete development of Harpley Neighbourhood Retail Centre by end of FY 2024

Property Backed Lending

• Seek out attractive risk positions that meet investment hurdle returns

Non-Property Investments

• Progress the exit of non core holdings and support higher conviction investee businesses

Capital Management

• Manage balance sheet to ensure existing portfolio can be optimised in a capital constrained market

Status

• Ongoing with strategy to be resolved by Q3 FY2024

• • On Target • Expecting direction prior to end of Q2 FY2024

• • Works Commenced

• On Target

• Focus has been on direct property investment opportunities, limited new investment in this area in FY2024 to date

• Continued evaluation of divestment opportunities in this segment, no material movement in FY2024

• Heavy focus of Board and Management to ensure meaningful cash is returned to balance sheet for future commitments

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OUTLOOK – STRATEGY AND FOCUS

1 July 2023[–] 30 June 2024

Investment Activity

• Given the high focus on cashflow management and ensuring a robust liquidity position, the Board considers it is unlikely that new investment opportunities will be undertaken in the balance of the financial year

• The Board is also of the opinion that optimisation of the current investment positions should remain the core activity of the business and management

Forecast Performance

• The composition of the investment portfolio of CVC does not allow meaningful performance forecasting

• The Board is however confident that the assets held on balance sheet have a strong prospect of value growth over the short and medium term which will drive profits and capital growth

Capital Management

• Future dividends and share buy backs will be considered with perspective given to capital requirements, business performance and realisation events of investments

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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