CVC LIMITED — Interim / Quarterly Report 2003

Apr 3, 2003

Australian Stock Exchange

7C000377

C٧

Level 42, AAP Centre 259 George Street Sydney NSW 2000 Australia Tel: (02) 9087 8000 Fax: (02) 9087 8088 www.cvcltd.com.au

The Manager Company Announcements Office Australian Stock Exchange Limited

Fax: 1900 999 279

Page 1 of 5

Dear Sir/Madam,

For your information, we are pleased to enclose a copy of the Summary Half-Year Financial Statement for Continental Venture Capital Limited for the period ended 31 December 2002 as sent to shareho ders.

Yours faithfully, For and on behalf of CONTINENTAL VENTURE CAPITAL LIMITED

$_{\rm cyc}$

Alexander Beard

CONTINENTAL VENTURE
CAPITAL LIMITED

CVC

FOR THE STAMONTH PERIOD ENDED 31 DECEMBER 2002 HALF YEARLY REPORT

ACN 002 700 361

CHAIRMAN'S REPORT & PROFIT DO A'NGRADE

Dear Shareholder.

On behalf of the board of Continental Verture Capital Limited ("CVC"), I am pleased to presen: the interim report for the six months ended Decemte^. 31, 2002. Our profit result of \$1.39M after tax, whilst a decrease on the corresponding period it is our 20th consecutive half year profit.

The result declined from the previous corresponding period due to the absence of realisations from the portfolio, the absence of Clinical Waste (realised last period) from the result and write-downs incurred upon realisation of our interest in Legends Hotel. Also included is a write-down of a portion of our litted portfolio reflecting prevailing market values.

As at December 31, 2002 reported NTA (net tangible assets) is 70.31 cents per share. If market values of listed investments and our interest in the Renaissar ce shopping centre were taken into account we consider that our NTA would exceed 90 cents per share.

COMMENTARY

Highlights of the six month period include:

Private Equity Portfolio

• . Probiotec increased sales and profit during the six month period and commenced production of specialty dairy proteins from their JV with Dairy Farmers. Probiotec continue to prepare for an IPO when favourable market conditions prevail.
• . CVC REEF continues to progress, with investee companies Geodynamics, Battery Enerty and Wind Corporation all making significant progress during the 6 months. Geodynamics successfully floated in September 2002 and has traded at a premium of at least 5% since listing. Battery Energy continues to achieve sales and profit growth whilst Wird Corporation has successfully negotiated a 10 year pover purchase agreement on favourable terms for the offtake of 48MW of power from its Black Springs development in the Blue Mountains.

Listed Portfolio

• * Greens Foods reported a 292% increase in EBIT for the six months to December 31, 2002, reacting in an improved share price and underlying unreal sed profit of \$1.32M as at December 31, 2002,
• = Stargames reported a 31.5% increase in revenue and 178.5% increase in net profit after tak for the six months to December 31, 2002 and are forecasting a full year result of \$5M. Unrealised profit on our holding in Stargames totalled \$8.4M as at December 11, 2002.

Property

• . Annualised leasing income increased by 6% from June 30, 2002 on the Chevron Renaissance shopping centre, which capitalised at market rates imputes an increase over cost in excess of \$3M.
• . Mezzanine financing provided to develop the three Skyline Towers adjacent to the Chevron Renaissance shopping centre will continue to contribute profits for future periods.
• . Sunland realised a \$7.3M half year profit after tax for the six months to December 31, 2002. Our equity accounted share of \$2.1M of this result is not reflected in the half year results. Sunland is forecasting a full year profit after tax of \$16M.

Balance Sheet

Our Balance Sheet has strengthened significantly since June 30, 2002 with in excess of \$9M in cash as at the date of this report, placing us in an excellent position for acquisition opportunities.

Outlook

The outlook for the following six months will see CVC focus on the following:

• . Further strengthening of the Balance Sheet.
• . Realisation of a portion of our listed portfolio if prevailing market conditions are favourable.
• . Full consolidation of Laserex Group Ltd into CVC Ltd following a capital reduction completed in March 2003.
• . Continued evaluation of suitable acquisition targets in the private equity sector, aimed to increase both recurrent earnings and capital growth profile of the group.
• . Continued building and development of both the CVC REEF and CVC Biz Vision portfolios.

In view of the nature of our portfolio and its current skew towards long term capital growth assets, it is probable that unless there are realisations of our listed or private equity portfolio, our 2003 annual profit will be lower than our 2002 annual profit. Whilst it is not possible to meaningfully forecast the 2003 annual profit at this stage it would be likely to be more than 15% lower than the 2002 annual profit.

As highlighted in our 2002 Annual Report shareholders should appreciate that value is not often created over short periods of time. Our team is actively managing both the performing and under performing assets to create long term value. We are confident that the fruits of our labour will be realised profitably as markets give us the opportunity to maximise the returns.

We appreciate the support of shareholders and look forward to continuing to exceed shareholder expectations for your investment in CVC.

Vanda Gould Chairman March 26th, 2003

CONSOLIDATED STATEMENT OF
FINANCIAL PERFORMANCE FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2002
		Six Months Ended 31 December 2002 \$'000	Six Months Ended 31 December 2001 \$'000
Revenue
Sales Revenue			3,400
Other Revenue		1.377	5,542
ary dimension of the communication communication of a subsequent of the communication of the communication of t The communication of the communication of the communication of the companies of the communication of the commu
Operating Profit after Tax but before
Outside Equity Interests		1,415	2,984
Outside Equity Interests in Profit after Tax		(27)	(91)
=Operating Profit after Tax Attributable its ===================================		1388		2592
Dividends Paid		1.646	1,372
		Six Months Ended 31 December 2002	Six Months Ended 31 December 2001
Earnings per Share (Basic)		1.26 cents	$2.64$ cents
Net langible Assets os Share		70.3 cents	64.7 cents
INDUSTRIAL SEGMENTS	FFOPERTY	VENTURE CAPITAL	ELIMINATIONS	TOTAL
	DEVELOPMENT 5'000	& INVESTMENT \$'000	\$'000	\$'000
	551	1,246	(420)	1,377
Sales Outside the Group
Associates Net Profits Total: Revenue	3,564			3,564

$_{\rm cyc}$

CONTINENTAL VENTURE CAPITAL LIMITED ACN 002 700 361

CONSOLIDATED STATEMENT OF
FINANCIAL POSITION

AS AT 31 DEGEMBER 2002	31 December 2002 \$'000	30 June 2002 \$'000
CURRENT ASSETS
Cash Assets	1,519	4,439
Receivables	17,106	9,629
Inventories Other Financial Assets
Current Tax Assets	10,649	9,686
Other Assets	80 123	1,899 322
--------------------------------------	$-29.472$	25,975
NON-CURRENT ASSETS
Receivables Other Financial Assets	15,302	21,542
Deferred Tax Assets	34,764 3	33,331 3
hotal Non-Guirenbassets principle and day will	50,069
TOTAL ASSETS NATURAL TELEVISION IN THE PROPERTY OF A SET OF LARGE THAT A LOCAL CONTROL TO A LOCAL CONTROL TO A
CURRENT LIABILITIES
Payables	1,434	1,425
	--------------------------------------
NON-CURRENT LIABILITIES
Interest Bearing Liabilities	100	100
Deferred Tax Liabilities	213	491
Total Non-Current Clanwries
TOTAL LEABHLINES IN THE THE
	elle 1747	Amani II
EQUITY
Contributed Equity	26,634	26,634
Retained Profits	50,526	51,589
processible to the production of the complete of the construction of the construction of the construction of t Members of Parent: Equity Interest
. Outside Equity Interest
TOTAL EQUITY

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2002	Six Months Ended 31 December 2002 \$	Six Months Ended 31 December 2001 \$.
CASH RELATING TO OPERATING ACTIVITIES
Cash Receipts in the Course of Operations		2,912
Cash Payments in the Course of Operations	(1, 362)	(3,825)
Interest Received Dividends Received	251	882
Interest Paid	1,222	506
Income Taxes Paid	(119)	(174) (822)
Income Taxes Repaid	1,307
Other Net Cash Provided/(Dsed iii) By Operating Activities		46
Payments for Property, Plant & Equipment Payments for Equity Investments Proceeds on Disposal of Equity Investments Loans Provided Loans Repaid	(1,829) 56 (7,008) 6,147	(1, 144) (1,895) 13,043 (5, 329) 1,718
Other Net Cash (Used in) / Provided by Investing Activities . 41. (2578) The providence of assessing	56
CASH FLOWS FROM FINANCING ACTIVITIE:
Repayment of Borrowings Dividends Paid	(1,646)	(9,450) (1, 372)
rcash Jacquin Rhancing Activities of the Philippine (12040) in the HETTI provide 23 th
, Net Decreased, Castriago, Maria (1999), 1999, 1999, 1999, 1999, 1999, 1999, 1999, 1999, 1999, 199
"cashtatahe Beginning of the Period" is the Hall Hall all all the second the Light design and the second in TRASIFAT THE PRODUCT THE TELL BELOW THAT THE RESIDENCE OF THE TABLE TO THE TABLE TO THE TABLE TO THE TABLE TO