CVC LIMITED — Annual Report 2005

Aug 23, 2005

Commentary on Results, Dividends, Developments and Future Expectations

Commentary on Results:

The Directors of CVC are delighted to announce that the 2005 financial year has seen the Company achieve another record profit, including:

• Profit before taxation of \$30.5 million (2004: \$12.2 million) an increase of 150%;
• Net profit attributable to shareholders of \$29.0 million (2004: \$10.1 million) an increase of 187%;
• Earnings per share of 25.4 cents (2004: 9.4 cents).

As noted in our half yearly report, 2005 has seen significant advances in the development of a platform for future growth. Highlights of 2005 include capital profits in each of CVC's main investment areas of listed shares, property and private equity, including;

• \$9 million profit from the sale of shares in Sunland:
• \$10 million profit from the sale of joint venture property interests including the disposal of the Chevron shopping centre; and
• \$3 million profit from the sell-down of shares into the IPO of Pro-Pac.

At 30 June 2005, CVC still retained a 13% shareholding in Sunland Group Limited and a 15% shareholding in Pro Pac Packaging Limited to provide a source of future dividends and capital growth;

Dividends:

Given these excellent results, the Directors are pleased to announce today a fully franked final dividend for the year of 3 cents, an increase of 100% on the prior year. CVC paid an interim dividend of 2 cents per share fully franked on 10 March 2005 so the dividend announced today brings the total dividends for the year to 5 cents, fully franked, an increase of 67% on the prior year.

Developments:

During the year CVC has concentrated on generating a base of new initiatives to provide the foundations for future ongoing revenue streams and asset value appreciation. In particular:

• the acquisition and internalisation of the management function to provide new income streams from funds management and reduce ongoing management costs. In 2006 we are targeting growth in our funds management business and particularly in the launch of new financial products outside of private equity
• the development of the Fern Bay property with sales having already commenced and with the potential to provide a significant ongoing revenue stream for many years:
• the placement of \$28 million of new equity providing the capital base for new investment activities and bringing increased interest in CVC culminating with CVC becoming one of the top 300 companies in the S&P/ ASX All Ordinaries Index at 30 June 2005;
• the acquisition, rationalisation and development of a new regional road freight transportation business in partnership with Ron Finemore;
• the acquisition, through a joint venture, of land at Belrose and its development for a bulky goods centre;
• the listing of Pro-Pac on the Australian Stock Exchange and continued organic and acquisitive growth of the Pro-Pac business;
• further development of the investment portfolios, both listed and unlisted; and
• continued improvement in access to and identification of quality opportunities for potential investments.

Future Expectations:

As previously explained the total level of profit for any period, notwithstanding the recurrent earnings, is largely determined by the timing of the realisation of capital profits. Accordingly at this stage it is not possible to meaningfully forecast the level of profitability for 2005-06 or future periods. However, CVC has continued to build its recurrent earnings base and looks forward to being able to report further growth in ongoing profitability. Further CVC has a robust balance sheet base at 30 June 2005 and looks forward to reporting developments generally, and appreciation in valuations particularly, in future in respect of all the investments.

Alexander Beard Chief Executive Officer 24 August 2005

CVC Limited	Level 42, AAP Centre	102 9087 8000
ABN 34 002 700 361 259 George Street		F0290878088
AFSL 239665	Sydney NSW 2000	www.cvcitd.com.au

Appendix 4E

Preliminary Final Report Results for announcement to the market

	CVC Limited
ABN	Financial Year ended ('Reporting Period')	Previous Financial Year ended ('Corresponding period')
34 002 700 361	30 June 2005	30 June 2004

Results

Revenues from Ordinary Activities	up/ down	30 % to	\$61,758,451
Profit from Ordinary Activities after Tax attributable to Members	up/d o		185 % to \$29,001,782
Net Profit for the Period attributable to Members	up/ down	185 % to	\$29.001,782

Dividends (distributions)

	Amount per security	Franked amount per security
Final Dividend	3 é
Interim Dividend	2 c

Information on Dividends:

The Directors announce a final fully franked dividend in respect of the year ended 30 June 2005 of 3 cents per share payable on 30 September 2005.

A fully franked interim dividend in respect of the current financial year of 2 cents per share was paid on 10 March 2005. A fully franked final dividend in respect of the year ended 30 June 2004 of 1.5 cents per share was paid on 14 December 2004.

Shareholders are able to elect to receive dividends from the Company as new shares in the Company in accordance with the CVC Limited Dividend Reinvestment Plan adopted at the 2003 Annual General Meeting of the Company.

Record date for determining entitlements to the final dividend Last date for elections to participate in the Dividend Reinvestment Plan 23 September 2005 23 September 2005

Commentary

Brief explanation of any of the figures reported above:

Please refer to the attached commentary for a detailed review.

STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2005

	Notes		Consolidated
		2005	2004
		S	\$
Revenue from Sale of Goods		17,417,264	18,415,189
Revenue from Sale of Services		745,777
Proceeds from Share Sales		39,373,654	23,693,414
Proceeds from Sale of Loans			1,652,713
Interest Income		3,022,171	2,941,089
Other Revenue from Ordinary Activities		1,199,585	912,069
Total Revenues From Ordinary Activities	1	61,758,451	47,614,474
Share of Net Profits of Associates Accounted for using the Equity Method	15	8,447,973	10,052,118
Share of Net Profits of Joint Ventures Accounted for using the Equity Method	15	11,696,101	2,784,730
Expenses
Amortisation of Intangibles		934,120	442,175
Borrowing Costs			11,231
Cost or Carrying Value of Shares Sold		25,406,791	17,100,946
Cost of Goods Sold		9,979,635	10,026,859
Cost of Loans Sold			3,305,426
Depreciation Expense		229,404	121,179
Employee Expenses		3,797,202	3,145,106
Loans Written-Off and Provisions for Non-Recovery		4,329,538	4,247,399
Management & Consultancy Fees		1,828,218	6,646,353
Unrealised Loss on Investments		1,535,200	100,248
Other Expenses from Ordinary Activities		3,322,461	3,055,544
Profit from Ordinary Activities Before Related Income Tax Expense		30,539,956	12,248,856
Income Tax Expense	2	1,110,425	1,453,663
Net Profit	10	29,429,531	10,795,193
Net Profit Attributable to Outside Equity Interests		427,749	649,171
Net Profit Attributable to Members of the Parent Entity	9	29,001,782	10,146,022

Total Changes in Equity Attributable to Members of the Parent Entity other
than those arising from transactions with Owners as Owners	29.001.782	10,146,022

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2005

	Notes		Consolidated
		2005	2004
		S	\$
CURRENT ASSETS
Cash Assets	10	41,277,130	12,269,691
Receivables	3	17,316,946	7,615,477
Inventories	4		1,132,013
Other Financial Assets	5	3,367,533	4,922,116
Current Tax Assets		1,007	40,152
Other Assets		102,633	238,692
Total Current Assets		62,065,249	26,218,141
NON-CURRENT ASSETS
Receivables	3	6,735,142	2,889,908
Other Financial Assets	5	56,986,919	11,861,444
Investments Accounted for using the Equity Method	15	8,979,518	49,524,380
Property, Plant and Equipment		22,292	670,692
Intangible Assets	6	7,959,142	5,157,691
Deferred Tax Assets			139,700
Total Non-Current Assets		80,683,013	70,243,815
TOTAL ASSETS		142,748,262	96,461,956
CURRENT LIABILITIES
Payables	7	921,794	11,714,568
Provisions		135,789	208,830
Current Tax Liabilities		639,219	991,657
Total Current Liabilities		1,696,802	12,915,055
NON-CURRENT LIABILITIES
Provisions			143,206
Deferred Tax Liabilities			177,557
Total Non-Current Liabilities			320,763
TOTAL LIABILITIES		1,696,802	13,235,818
NET ASSETS		141,051,460	83,226,138
EQUITY
Contributed Equity	8	55,392,794	20,237,527
Retained Profits	9	85,658,497	60,530,410
Total Parent Entity Interest		141,051,291	80,767,937
Outside Equity Interest		169	2,458,201
TOTAL EQUITY		141,051,460	83,226,138

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2005

	Notes		Consolidated
		2005	2004
		S	\$
CASH FLOWS RELATED TO OPERATING ACTIVITIES
Cash Receipts in the Course of Operations		19,880,244	19,906,117
Cash Payments in the Course of Operations		(24,816,546)	(20,511,459)
Interest Received		1,295,159	1,049,594
Dividends Received		4,993,863	1,979,736
Interest Paid			(11,231)
Income Taxes Paid		(1,570,492)	(517,895)
Net Cash (Used in)/ Provided by Operating Activities	10	(217, 772)	1,894,862
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for Property, Plant and Equipment		(583, 500)	(177, 387)
Receipts for Property, Plant and Equipment		20,455
Payments for Equity Investments		(27,040,173)	(22, 234, 186)
Proceeds on Disposal of Equity Investments		28,313,365	25,346,127
Payments for Controlled Entities net of Cash Acquired		(372, 271)	(2,024,070)
Proceeds for Sale of Controlled Entities net of Cash Disposed		6,493,051
Loans Provided		(21, 584, 363)	(7,161,807)
Loans Repaid		24,956,126	24,556,385
Net Cash Provided by Investing Activities		10,202,690	18,305,062
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of Borrowings			(193, 294)
Dividends Paid to Members of the Parent Entity		(3,260,428)	(3,817,930)
Dividends Paid to Outside Equity Interests of a Controlled Entity		(637,051)
Shares Bought-back on Market		(4,008,000)	(6,396,109)
Issue of Shares		28,050,000
Costs of Shares Issued		(1,122,000)
Cash Provided by/ (Used in) Financing Activities		19,022,521	(10,407,333)
Net Increase in Cash Held		29,007,439	9,792,591
Cash at the Beginning of the Financial Year		12,269,691	2,477,100
CASH AT THE END OF THE FINANCIAL YEAR	10	41,277,130	12,269,691

NOTES TO THE PRELIMINARY FINAL REPORT FOR THE YEAR ENDED 30 JUNE 2005

		Consolidated
	2005	2004
	s	\$
NOTE 1: REVENUES FROM ORDINARY ACTIVITIES
Revenue from Sale of Goods	17,417,264	18,415,189
Revenue from Sale of Services	745,777
Proceeds from Share Sales	39,373,654	23,693,414
Proceeds from Sale of Loans		1,652,713
Other Revenues from Operating Activities:
Interest:
Related Parties	461,190	295,547
Other Parties Dividends:	2,560,981	2,645,542
Other Parties	913,512	692,251
Other Revenue	286,073	219,818
	61,758,451	47,614,474
NOTE 2: TAXATION
Income Tax Expense:
Prima facie Income Tax Expense calculated at 30% (2004: 30%) on the Profit
from Ordinary Activities	9,161,987	3,674,657
Increase in Income Tax Expense due to:
Goodwill Amortisation	280,236	132,653
Tax Losses Not Recognised	1,181,720	4,543
Tax attributable to Equity Accounted Profits	25,916
Decrease in income tax expense due to:
Tax attributable to Equity Accounted Profits		(359,313)
Sundry Items	(3, 491)	(5,701)
Franking Credits on Dividends Received	(1,472,920)	(495,774)
Div 43 Building Allowances	(177,070)	(354, 831)
Recovery of Tax Losses Not Previously Recognised	(7,730,958)	(1,904,744)
Capital Raising Costs	(67, 320)
	1,198,100	691,490
Prior Year (Over)/ Under Provision	(87,675)	168,406
Settlement of Long Standing Tax Disputes (i)		593,767
Income Tax Expense attributable to Profit from Ordinary Activities	1,110,425	1,453,663

• (i) In July 2004, the Company reached agreement with the Australian Taxation Office to settle revised income taxation assessments issued to the Company in respect of the 1988, 1991 and 1994 financial years. The Company provided in full, in the financial year ended 30 June 2004, for the net expense of \$593,767 arising from this settlement.
• (ii) The Company and its 100% owned subsidiaries notified the Australian Taxation Office of their decision to form a consolidated group for income taxation purposes with effect from 30 June 2003.

	Consolidated
	2005	2004
	\$	\$
NOTE 3: RECEIVABLES
Current
Trade Debtors		3,136,836
Other Debtors	1,072,045	136,200
Loans to Related Entities	5,819,931	140,000
Loans to Other Entities	15,871,480	6,546,774
Provision for Non-Recovery of Loans to Other Entities	(5,446,510)	(2,344,333)
Total Current Receivables	17,316,946	7,615,477
Non-Current
Loans to Related Entities	3,731,166	2,139,908
Provision for Non-Recovery of Loans to Related Entities	(246, 024)
Loans for Acquisition of Shares under Executive Long-Term Incentive
Plan	3,220,000
Loans to Other Entities	30,000	4,595,890
Provision for Non-Recovery of Loans to Other Entities		(3,845,890)
Total Non-Current Receivables	6,735,142	2,889,908
NOTE 4: INVENTORIES Current
Finished Goods - at Cost		1,132,013
NOTE 5: OTHER FINANCIAL ASSETS
Current
Shares in Listed Corporations
at Cost	963,157	4,922,116
at Market Value	2,404,376
	3,367,533	4,922,116
Non-Current
Investments comprise:
Shares in listed corporations $-$ at lower of cost or realisable value	50,162,304	5,772,580
Shares in Other investments – at lower of cost or realisable value	6,824,615	6,088,864
Total Non-Current Investments	56,986,919	11,861,444
Market Value of Shares in Listed Corporations	81,812,313	24,605,275

		Consolidated
	2005	2004
	\$	\$
NOTE 6: INTANGIBLE ASSETS
Goodwill	7,247,269	5,702,947
Accumulated Amortisation	(370, 377)	(545, 256)
	6,876,892	5,157,691
Management Agreements and Licences	1,170,000
Accumulated Amortisation	(87,750)
	1,082,250
Total Intangibles	7,959,142	5,157,691
NOTE 7: PAYABLES
Current
Trade Creditors	232,423	2,066,214
Loans from Joint Venture Entities	7,986	4,715,322
Performance Fees Payable		4,000,000
Sundry Creditors	312,158	580,099
GST Payable		162,407
Accruals	369,227	190,526
Total Current Accounts Payable	921,794	11,714,568
NOTE 8: CONTRIBUTED EQUITY
Issued and Fully Paid-Up Share Capital
Fully Paid Ordinary Shares:	BOAD	mmo 4

	2003		2U.H
	Number	s	Number	S
Balance at Beginning of the Year	103,994,456	20,237,527	109.736.032	26,633,636
Shares Issued During the Year:
- Acquisition of CVC Managers Pty Limited	7,391,304	8,500,000
- Executive & Non-Executive Long Term Incentive Plan	2,800,000	3,220,000
- Dividend Reinvestment Plan	270.850	515,267		400
- Share Placement	16,500,000	28,050,000
less Transaction Costs	$\bullet$	(1,122,000)
Shares bought back on market	(3,508,772)	(4,008,000)	(5,741,576)	(6,396,509)
	127,447,838	55,392,794	103.994.456	20,237,527

All shares are quoted on the Australian Stock Exchange Limited

The shares issued for the acquisition of CVC Managers Pty Limited are subject to an escrow period of 2 years ending on 8 October 2006.

	Consolidated
	2005	2004
	\$	S.
NOTE 9: RETAINED PROFITS
Retained Profits at the Beginning of the Year	60,530,410	54,202,318
Net Profit Attributable to Members of the Parent Company	29,001,782	10,146,022
Dividends	(3,873,695)	(3,817,930)
Retained Profits at the End of the Year	85.658.497	60,530,410

NOTE 10: NOTES TO THE STATEMENT OF CASH FLOWS

a) Reconciliation of Cash

For the purposes of the statements of cash flows, cash includes cash on hand and at bank and short-term deposits at call, net of outstanding bank overdrafts. Cash as at the end of the financial year as shown in the statements of cash flows is reconciled to the related items in the statements of financial position as follows:

Cash Assets	41,277,130	12.269.691
		_______

b) Reconciliation of Profit from Ordinary Activities after Income tax to the Net Cash Provided by Operating Activities:

Profit from Ordinary Activities after Income Tax	29.429.531	10.795.193
Add/(Less) Non-Cash Items:
Share of Equity Accounted Profits	(20, 144, 074)	(12, 836, 848)
Dividends Received from Equity Accounted Investments	4,080,351	1,287,485
Depreciation and Amortisation of Property, Plant and Equipment	229,404	121,179
Amortisation of Intangibles	934,120	442,175
Unrealised Loss on Investments	1,535,200	100,248
Profit on Disposal of Investments	(13,966,863)	(6,592,468)
Loss on Sale of Loan		1,652,713
Loans Written-Off and Provisions for Non-Recovery	4,329,538	4,247,399
Loss on Sale of Property, Plant & Equipment		2,694
Borrowing Costs in Operating Profits		(21,705)
Interest Income Not Received	(1,727,012)	(1, 891, 495)
Movement in Income Tax Provision	(285,764)	893,896
Movement in Deferred Tax Assets & Liabilities	(174, 303)	41,872
Changes in Assets and Liabilities:
Receivables	(263, 876)	(544, 498)
Inventories	(128, 758)	(330,576)
Payables	(3,909,002)	4,711,389
Provisions	(19,510)	(5,711)
Other Current Assets	(136,754)	(178,080)
Net Cash (Used In)/ Provided By Operating Activities	(217, 772)	1,894,862

	Consolidated
	2005	2004
	\$	S
NOTE 11: DIVIDENDS
Dividends proposed or paid during the year and not provided for in previous years by the company are:
Interim Dividend of 2 cents Per Share for the Year Ended 30 June 2005
Paid on 10 March 2005	2,213,540
Final Dividend of 1.5 cents Per Share for the Year Ended 30 June 2004
Paid on 14 December 2004	1,660,155
Interim Dividend of 1.5 cents Per Share for the Year Ended 30 June 2004
Paid on 25 March 2004		1,632,995
Final Dividend of 2 cents Per Share for the Year Ended 30 June 2003 Paid
on 4 December 2003		2,184,935
	3,873,695	3.817.930

The final dividend for the year ended 30 June 2005 has not been included above as it was not proposed or paid during the financial year.

NOTE 12: ASSETS PER SECURITY

	Cents	Cents
Net Assets Per Security	110.7	77. 7
Market Value Adjusted Net Assets Per Security	132.9	101.0
Net Tangible Assets Per Security	104.4	73.7
Market Value Adjusted Net Tangible Assets Per Security	126.6	97.0

Market Value adjusted assets per security figures reflect the difference between market value of listed investments at balance date compared to their carrying value in the statement of financial position based on cost, recoverable amount or equity accounting. No effect is reflected for any differences between the market values and carrying values of all other investments.

NOTE 13: EARNINGS PER SHARE

	Cents	Cents
Basic and Diluted Earnings Per Share	25.4	9.4
Reconciliation of Earnings used in calculation of Earnings Per Share:
	S	S
Profit After Income Tax	29,429,531	10,795,193
Less: Outside Equity Interests	(427,749)	(649,171)
Earnings used in calculation of Earnings Per Share:	29,001,782	10,146,022

Number of Shares

$\mathbb{Z}^2$

Weighted Average Number of Ordinary Shares used in the calculation
of Basic Earnings Per Share	114.181.399	107.606.827

NOTE 14: ENTITIES OVER WHICH CONTROL WAS GAINED OR LOST DURING THE PERIOD

a) CVC Managers Pty Ltd

On 8 October 2004, CVC acquired 100% of CVC Managers Pty Ltd for a consideration of 7,391,304 shares in the Company at a valuation of \$8,500,000. A summary of the acquisition is as follows: ¢

Assets and Liabilities of CVC Managers at Acquisition:
Cash assets	181,483
Tangible assets	23,404
Investments accounted for using the equity method	76,944
Intangible assets (i)	1,170,000
Payables	(38,317)
Provisions	(160, 783)
	1,252,731
Goodwill arising (i)	7,247,269
	8,500,000

(i) Intangible assets in relation to intra-group management agreements have not been recognised in the consolidated entity thereby increasing the component of the consideration paid allocated to goodwill arising.

For the period from acquisition to the end of the financial year, CVC Managers recorded revenues of \$2,614,985 and profit before tax and amortisation of intangibles of \$411,263.

b) Pro-Pac Group Limited

On 28 April 2005, CVC sold its shares in Pro-Pac Group Limited to Pro-Pac Packaging Limited, as part of the IPO of the Pro-Pac business, for \$7,922,689, comprising \$4,785,940 cash and 6,273,498 shares (at a valuation of \$3,136,749) in Pro-Pac Packaging Limited. A summary of the disposal is as follows: ¢

Assets & liabilities of Pro-Pac at date of loss of control:
- Cash assets	507,453
- Current receivables	3,483,610
- Inventory	1,260,771
- Other current assets	110,406
- Tangible assets	1,005,445
- Intangible assets	6,965,389
- Deferred income tax assets	136,446
- Payables	(2,141,586)
- Provisions	(357, 520)
- Current tax liabilities	(27, 529)
- Intra-group loans	(18,293)
Total assets & liabilities	10,924,592
Less: outside equity interests	(5,567,651)
CVC Carrying value at date of disposal	5,356,941
Profit on disposal	2,565,748
	7,922,689

For the period from the start of the financial year to the date of loss of control, Pro-Pac Group recorded revenues of \$17,545,217 (2004 full year: \$18,479,063) and profit before tax and amortisation of intangibles of \$2,143,528 (2004 full year: \$2,454,613).

During the year, but before the loss of control: CVC realised cash of \$2,214,564 from the sales of parcels of shares in Pro-Pac Group Limited, CVC paid \$355,628 to buy-back an option over shares in Pro-Pac Group Limited and a subsidiary of Pro-Pac Group Limited paid \$236,574 to acquire two unincorporated businesses.

	Consolidated
	2005	2004
	\$	\$
NOTE 15: INVESTMENTS ACCOUNTED FOR USING THE EOUITY METHOD
Equity Accounted Shares in Associated Entities (a)	8,890,308	37,424,389
Equity Accounted shares of Joint Ventures (b)	89,210	12,099,991
	8,979,518	49.524.380

a) Associated Entities

Details of material interests in associated entities are as follows:

	% Ownership End of Period			Carrying Value	Contribution to Net Profit
	2005	2004	2005	2004	2005	2004
			S	\$	\$	\$
CVC Private Equity Limited	24.5%	24.6%	3,618,253	4,196,355	(606, 511)	(388, 175)
CVC Reef Investment Managers Limited (i)	50.0%		89.059		12,115
Lauden CVC Property Trust	$45.0\%$		3,735,725		(19, 169)
Ron Finemore Transport Pty Limited	25.0%		883,757	$\overline{\phantom{a}}$	(691, 243)
Sunland Group Limited (ii)	÷	19.2%	÷	32,380,577	10,041,269	10,467,814
Winten (No. 20) Pty Limited	$50.0\%$	50.0%	563.514	847,457	(288, 488)	(27, 521)
			8,890,308	37,424,389	8,447,973	10,052,118

(i) CVC Reef Investment Managers Pty Limited was acquired as part of the acquisition of CVC Managers Pty Limited.

(ii) CVC ceased to account for Sunland Group Limited as an associated entity during the year. Sunland Group Limited is listed on The Australian Stock Exchange Limited. The market value of the equity accounted investment in Sunland Group Limited at 30 June 2004, based on the closing share price of \$1.04, was \$42,778,007.

b) Joint Venture Partnerships

Details of material interests in joint ventures are as follows:

	% Ownership End of Period			Carrying Value	Contribution to Net Profit
	2005	2004	2005	2004	2005	2004
			\$	\$	\$	-\$
Chevron Developments (i)	50%	50%	86.723	7,281,590	10,685,905	1,202,026
Bel Air Real Estate	50%	50%	$\bullet$	987,731	722.764	507.875
Skvline Investments Australia	50%	50%	2.487	3,830,670	287,432	1.074,829
			89,210	12,099,991	11,696,101	2,784,730

(i) During the year the Chevron Developments joint venture disposed of its interest in the Chevron Renaissance Shopping Centre. Included in the contribution to net profit is a profit on disposal of the centre of \$9,806,481.

NOTE 16: SEGMENT REPORTING

a) Primary Segments - Business Segments

See attachment.

b) Secondary Segments - Geographical Segments

The consolidated entity operates predominantly in Australia.

NOTE 17: AUSTRALIAN EQUIVALENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS

The Company will provide an updated report on the expected impacts of the adoption of Australian Equivalents to International Financial Reporting Standards on CVC in the full financial report, in accordance with Australian Accounting Standard AASB 1047 "Disclosing the Impacts of Adopting Australian Equivalents to International Financial Reporting Standards".

NOTE 18: AUDIT REVIEW STATUS

This report is based on accounts that are in the process of being audited.

ATTACHMENT TO THE PRELIMINARY FINAL REPORT FOR THE YEAR ENDED 30 JUNE 2005 SEGMENT REPORTING

Information By Business Segment:	Private Equity & Venture Capital	Listed Investments	Property	Funds Management	Unallocated. Corporate & Tax	Eliminations	Consolidated
Year Ended 30 June 2005:	\$'000's	\$'000's	\$'000's	\$'000's		\$'000's	\$'000's
Revenues:
Revenues from External Customers Inter-Segment Revenue	32,654	26,913	67	852 1,763	1,272 $\overline{a}$	(1,763)	61,758
Operating Revenues	32,654	26,913	-67	2,615	1,272	(1,763)	61,758
Equity Accounted Income	(1,298)	10,041	11,389	12			20,144
Total Revenues	31,356	36,954	11,456	2,627	1,272	(1,763)	81,902
Results:
Result Before Non-Cash Items	6,166	21,533	11,455	422	(3,118)		36,458
Depreciation Amortisation of intangibles	(218) (476)			(11) (458)			(229) (934)
Other Non-Cash Expenses:
- Loans Written-Off and Provisions for Non-Recovery	(4,330)						(4, 330)
- Unrealised Loss on Investments	$\tilde{r}$	(1,535)					(1,535)
Segment Result	1,142 ___	19,998 _________	11,455	(47)	(3,118)		29,430
Assets:
Segment Assets excluding Equity Accounted Investments	16,526	54,564	9,023	8,700	44,955		133,768
Equity Accounted Investments	4,505		4,386	89		۰	8,980
Segment Assets	21,031	54,564	13,409	8,789	44,955		142,748
Liabilities:
Segment Liabilities			-8	303	1,386		1,697

ATTACHMENT TO THE PRELIMINARY FINAL REPORT FOR THE YEAR ENDED 30 JUNE 2005 SEGMENT REPORTING (CONTINUED)

	Private Equity & Venture Capital \$'000's	Listed Investments \$'000's	Property \$'000's	Funds Management \$'000's	Unallocated, Corporate & Tax	Eliminations \$'000's	Consolidated \$'000's
Year Ended 30 June 2004:
Revenues:
Revenues from External Costomers Inter-Segment Revenue	21,877	24,386	340		1,011		47,614
Operating Revenues	21,877	24,386	340	$\overline{a}$	1,011	$\overline{a}$	47,614
Equity Accounted Income	763	10,468	1,606				12,837
Total Revenues	22,640	34,854	1,946		1,011		60,451
Results:
Result Before Non-Cash Items	3,432	17,752	1,945		(7,424)		15,705
Depreciation	(121)						(121)
Amortisation of intangibles Other Non-Cash Expenses:	(442)						(442)
- Loans Written-Off and Provisions for Non-Recovery	(4,567)		320				(4,247)
- Unrealised Loss on Investments	300	(400)					(100)
Segment Result	(1,398)	17,352	2,265		(7, 424)		10,795
Assets:
Segment Assets excluding Equity Accounted Investments	23,522	10,694	1,328		8,020	3,374	46,938
Equity Accounted Investments	5,273	32,381	9,520		2,350		49,524
Segment Assets	28,795	43,075	10,848		10,370	3,374	96,462
Liabilities:
Segment Liabilities	5,020		18		4,824	3,374	13,236