CVC LIMITED — Interim / Quarterly Report 2011

Feb 27, 2011

Commentary on Results

Half-Year Result:

The directors of CVC report a net profit after tax to shareholders of \$6.0 million (2009: profit of \$5.9 million) for the half-year ended 31 December 2010.

Commentary on the Half Year, Capital Management, Future Expectations and Profit Outlook:

The highlights during the half year are as follows:

Property

Property contributed \$5.0 million (2009: \$1.2 million) to comprehensive income. The improved result has been from the properties acquired in March 2010 in Knoxfield, Victoria and Frenchs Forest, New South Wales. Additionally, the result is the outcome of being able to take advantage of tighter lending policies imposed by the major financial institutions on property developments.

Listed Investments

The overall contribution to comprehensive income was \$2.1 million (2009: \$17.9 million). The management team has also been working closely with its two equity accounted listed investments, Cellnet Group Limited and Pro-Pac Packaging Limited, the operating performance of both companies have improved significantly compared to the comparative period, although the improved results have not yet been reflected in an uplift in their respective share prices.

Private Equity

The contribution to comprehensive income was \$2.6 million (2009: \$1.2 million) is a direct reflection on the strong results generated by Ron Finemore Transport Pty Limited and Greens Food Pty Limited. These robust results have been generated in the face of a fall in consumer spending, tougher competition in the retail market and a rising Australian dollar.

Fund Management

During the period Concise Asset Management Limited (Mid Cap Australian Equities Specialist) had significant growth in Funds Under Management to \$510 million. The contribution to comprehensive income of this segment was \$0.8 million (2009: \$0.1 million), and as Concise Asset Management Limited continues to grow we expect that this will provide a positive impact on the results in coming years.

CVC will continue to focus on its main objective of generating shareholder returns in excess of 15% per annum over time.

At this stage CVC cannot meaningfully forecast a likely 2011 full year profit.

CVC Limited ABN 34 002 700 361 AFSL 239665

Level 42 259 George Street Sydney NSW 2000

T 02 9087 8000 F 02 9087 8088 www.cvc.com.au

Capital Management

At the time of writing, since 1 July 2010, 4,329,960 shares have been bought back on market at an average price of \$0.89 per share.

A fully franked dividend of 3 cents per share was paid to share holders on 8 September 2010 for the year ended 30 June 2010. The directors have resolved to pay an interim dividend of 2 cents per share on 19 March 2011 to shareholders registered on 15 March 2011.

ADH Beard Director 28 February 2011

CVC Limited ABN 34 002 700 361 AFSL 239665

Level 42 259 George Street Sydney NSW 2000

T 02 9087 8000 F 02 9087 8088 www.cvc.com.au

Appendix 4D

Half-Yearly Report Results for announcement to the market

		CVC Limited
ABN	Half-Year ended ('Reporting Period')				Previous Half-Year ended ('Corresponding period')
34 002 700 361	31 December 2010				31 December 2009
Results
Revenue from ordinary activities		up	5.2%	to	\$17,603,428
Profit/(loss) before tax		down	$6.2\%$	to	8,558,787
Profit/(loss) after tax attributable to members		up	2.0%	to	5,983,777
Net profit/(loss) attributable to members		up	2.0%	to	5,983,777

The preliminary half-yearly report is based on accounts which have been reviewed.

Dividends (distributions)

	Amount per security	Franked amount per security
Interim dividend	2.0 cents	2.0 cents
Prior year interim dividend	2.0 cents	$2.0$ cents
Prior year final dividend	3.0 cents	3.0 cents

Information on dividends:

The directors announce an interim dividend in respect of the year ended 30 June 2011 of 2 cents per share, fully franked, payable on 19 March 2011.

As previously advised the Dividend Reinvestment Plan has been suspended until such time as a there is a better correlation between the share price and the underlying net asset value of CVC Limited. As a result, the Dividend Reinvestment Plan will not be in operation.

Ex-Dividend date for the purpose of receiving the dividend	9 March 2011
Record date for determining entitlements to the dividend	15 March 2011
Payment Date	19 March 2011

Commentary

Brief explanation of any of the figures reported above:

Please refer to the attached commentary for a detailed review.

CVC LIMITED AND ITS CONTROLLED ENTITIES

HALF-YEAR FINANCIAL REPORT

For the half-year ended 31 December 2010

ACN 002 700 361

COMPANY PARTICULARS

CVC LIMITED

ACN 002 700 361

DIRECTORS

Vanda R Gould John S Leaver John D Read Alexander D H Beard

SECRETARIES

Alexander D H Beard John A Hunter

MANAGEMENT TEAM

Mark A N Avery Alexander D H Beard Michael J Bower Mark Fay William J Highland

Joanne Hume John A Hunter Elliott G Kaplan Anthony G McLennan

PRINCIPAL AND REGISTERED OFFICE

Level 42, 259 George Street SYDNEY NSW 2000 AUSTRALIA Telephone: (02) 9087 8000 Facsimile: $(02)$ 9087 8088

SHARE REGISTRY

Gould Ralph Pty Limited Level 42, 259 George Street SYDNEY NSW 2000 AUSTRALIA Telephone: $(02)$ 9032 3000 Facsimile: $(02)$ 9032 3088

AUDITORS

HLB Mann Judd Chartered Accountants Level 19, 207 Kent Street SYDNEY NSW 2000 AUSTRALIA

BANKERS Westpac Banking Corporation Limited

STOCK EXCHANGE LISTING Australian Stock Exchange Limited

CVC LIMITED & CONTROLLED ENTITIES DIRECTORS' REPORT

The directors present their report together with the consolidated financial report for CVC Limited and its controlled entities ("CVC") for the half-year ended 31 December 2010 and the independent review thereon.

Directors

The directors of CVC throughout and since the end of the half-year are:

Vanda Russell Gould (Chairman) John Scott Leaver (Non Executive Director) John Douglas Read (Non Executive Director) Alexander Damien Harry Beard (Director and Company Secretary)

Operating Results

The net profit after tax attributable to shareholders for the six months ended 31 December 2010 of CVC amounted to \$6.0 million (2009: profit \$5.9 million).

Review of Operations

The current period has seen a larger contribution to operating performance from property compared to prior periods as a result of CVC being able to capitalise on its strong balance sheet while the major financial institutions have shown a reluctance to provide funding for higher risk developments and acquisitions.

The strong operating performance of the Cellnet Group Limited and Pro-Pac Packaging Limited have yet to flow through to the share price of those companies. As a result the performance of the listed investment segment was held back, although CVC expects that this will flow thorough in future periods.

The strong operating results of both Ron Finemore Transport Pty Limited and Greens Food Pty Limited, which has been generated during a weak trading environment has had a significant positive effect of CVC's operating result in relation to private equity investments.

As always the results of CVC are significantly impacted by the timing of major investment realisations. The Board remains cognisant of the need to continue the development and attraction of investees so as to provide regular realisation opportunities. However, in pursuing this strategy the Board remains steadfastly committed to developing longer term value for shareholders rather than on timing realisations for accounting outcomes. During the period CVC has continued to be focused on the development of its core investments, assisting management to restructure and strengthen operations in the face of the current economic climate and to take advantage of opportunities presented to build the companies.

A more detailed review of operations and developments is included in the commentary that accompanies the ASX release of these results.

Dividends

During the period, the directors paid a final fully franked dividend in respect of the year ended 30 June 2010 of 3 cents per share on 8 September 2010. Since the end of the period, the directors have determined to pay an interim dividend in respect of the year ended 30 June 2011 of 2 cents per share, fully franked, payable on 19 March 2011.

Events subsequent to balance date

There are no other matters or circumstances that have arisen since the end of the financial period which significantly affected or may significantly affect the operations of CVC, the results of those operations or the state of affairs of CVC in the financial period subsequent to 31 December 2010.

Auditor's Independence Declaration

A copy of the Independence Declaration given to the directors by the auditor for the review undertaken by HLB Mann Judd Chartered Accountants is included on page 19.

Signed and Dated Sydney this 28^th day of February 2011 in accordance with a resolution of directors.

JOULD Director

JDER D. H. BEARD Director

CVC LIMITED & CONTROLLED ENTITIES CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE FOR THE HALF-YEAR ENDED 31 DECEMBER 2010

	Notes
		31 Dec 2010	31 Dec 2009
		\$	\$
INCOME
Revenue from services		730,458	233,683
Rental income		2,982,608	925,548
Outgoings recovered		488,474	134,772
Net gain on sale of equity investments		2,626,320	4,339,450
Interest income		3,747,201	2,168,810
Dividends received		692,494	2,700
Settlement proceeds			2,433,597
Recovery of investments in associated entities			3,474,087
Recovery of loans		1,499,598	121,154
Other income		1,308,334	819,703
Total income		14,075,487	14,653,504
Equity accounted profits
Share of net profits of associates	7	3,527,941	2,081,859
EXPENSES
Audit fees		65,928	56,410
Depreciation expense		7,345	10,172
Directors fees		292,000	217,000
Employee costs		1,026,422	733,116
Finance costs		2,049,965	2,548,785
Impairment of investment property		1,253,655	2,062,562
Impairment of investments in associated entities		2,146,335	556,293
Impairment of listed investments		675,267
Impairment of loans to other corporations			101,110
Impairment of loans to related entities		19,376	33,365
Impairment of unlisted investments		687
Insurance		81,880	104,408
Legal costs		131,133	170,418
Management and consultancy fees		431,611	268,856
Operating lease expense		210,068	193,596
Travel and accommodation		50,320	37,206
Other expenses		602,649	521,827
Total expenses		9,044,641	7,615,124
Profit before related income tax expense		8,558,787	9,120,239
Income tax expense	$\overline{c}$	1,987,391	4,349,755
Net profit for the half-year		6,571,396	4,770,484
Net profit/(loss) attributable to:
Members of the parent entity	15	5,983,777	5,868,926
Non-controlling interest		587,619	(1,098,442)
Net profit for the half-year		6,571,396	4,770,484
Basic earnings per share (cents)	4	4.54	4.20
Diluted earnings per share (cents)	4	4.54	4.20
Dividends paid during the half-year per share (cents)		3.00

The above statement of financial performance should be read in conjunction with the accompanying notes to the Half-Year Report.

CVC LIMITED & CONTROLLED ENTITIES CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2010

	31 Dec 2010 \$	31 Dec 2009 \$
Profit/(loss) for the half-year	6,571,396	4,770,484
Other comprehensive income - "Available-for-sale" investments:
- Increase in fair values recognised in other reserves	998,243	8,093,305
- Amounts transferred from other reserves to the income statement on sale	(645,048)	86,261
- Income tax on fair value movements taken to or from other reserves		(2,332,355)
- Value of associates asset revaluation reserve recognised in other reserves	(20, 484)	424,626
- Value of associates foreign currency translation reserve recognised in other reserves	48,150	71,715
Other comprehensive income for the half-year, net of tax	380,861	6,343,552
Total comprehensive income for the half-year	6,952,257	11,114,036
Total comprehensive income for the half-year is attributable to:
Members of the parent entity	6,462,997	11,818,941
Non-controlling interest	489,260	(704, 905)
	6,952,257	11,114,036

The above statement of comprehensive income should be read in conjunction with the accompanying notes to the Half-Year Report

CVC LIMITED & CONTROLLED ENTITIES CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2010

	Notes
		31 Dec 2010	30 Jun 2010
		\$	\$
CURRENT ASSETS
Cash and cash equivalents	5	34,301,184	40,796,600
Trade and other receivables	6	19,755,807	20,567,237
Current tax assets		217,407	518,246
Other assets		162,745	317,872
Total current assets		54,437,143	62,199,955
NON-CURRENT ASSETS
Loans and other receivables	6	15,757,062	1,821,330
Financial assets "available-for-sale"	8	37,888,697	39,707,651
Investments accounted for using the equity method	7	40,449,291	37,666,238
Investment properties	9	82,515,653	83,415,653
Property, plant and equipment	10	20,354	25,714
Total non-current assets		176,631,057	162,636,586
TOTAL ASSETS		231,068,200	224,836,541
CURRENT LIABILITIES
Trade and other payables	12	3,238,383	1,901,008
Interest bearing loans and borrowings	13	6,889,902	6,889,902
Provisions		221,229	198,435
Current tax liabilities		1,937,632
Total current liabilities		12,287,146	8,989,345
NON-CURRENT LIABILITIES
Provisions		53,123	44,432
Interest bearing loans and borrowings	13	43,964,597	43,587,074
Total non-current liabilities		44,017,720	43,631,506
TOTAL LIABILITIES		56,304,866	52,620,851
NET ASSETS		174,763,334	172,215,690
EQUITY
Contributed equity	14	114,927,322	115,687,816
Retained profits	15	47,040,129	45,012,191
Other reserves	16	4,647,815	4,086,810
Parent entity interest		166,615,266	164,786,817
Non-controlling interest		8,148,068	7,428,873
TOTAL EQUITY		174,763,334	172,215,690

The above statement of financial position should be read in conjunction with the accompanying notes to the Half-Year Report.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2010 CVC LIMITED & CONTROLLED ENTITIES

	Contributed equity	earnings Retained	Asset revaluation	Employee equity benefit	Foreign exchange translation	Owners of the parent	Non-controlling interest	5 Total
At 1 July 2010	115,687,816	45,012,191	3,633,443	165,230	288,137	64,786,817	7,428,873	172,215,690
Other comprehensive income Profit /(loss) for the half-year		5,983,777	1,242,478		(763, 258)	479,220 5,983,777	587,619 (98,359)	6,571,396 380,861
Total comprehensive income for the half-year		5,983,777	1,242,478		(763, 258)	6,462,997	489,260	6,952,257
Share of associates equity based remuneration recognised in other reserve Other movements in equity:				56,307		56,307		56,307
Acquisition of interest in controlled entities Transactions with shareholders: Shares bought back Dividend paid	(760, 494)	(3,955,839)	25,478			25,478 (3,955,839) (760, 494)	229,935	255,413 (760, 494) (3,955,839)
At 31 December 2010	114,927,322	47,040,129	4,901,399	221,537	(475, 121)	166,615,266	8,148,068	74,763,334

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2010 (CONTINUED) CVC LIMITED & CONTROLLED ENTITIES

	Contributed equity	earnings \$ Retained	Asset revaluation \$	Employee equity benefit	Foreign exchange translation	Owners of the parent	Non-controlling interest	Total
At 1 July 2009	122,627,967	27,614,501	7,753,413	(136,770)	58,940	57,918,051	8,203,475	166,121,526
Other comprehensive income Profit/(loss) for the half-year		5,868,926	6,187,758		(237,743)	5,868,926 5,950,015	$(1,098,442)$ 393,537	$\begin{array}{r} 4,770,484 \ \hline 6,343,552 \ 11,114,036 \end{array}$
Total comprehensive income for the half-year		5,868,926	6,187,758		(237,743)	11,818,941	(704, 905)
Share of associates equity based remuneration recognised in other reserve Other movements in equity:				338,240		338,240		338,240
Non-controlling interest disposal of shares in controlled entities Acquisition of interest in controlled entities Transactions with shareholders: Shares bought back	(4,096,921)					(4,096,921)	$(33,654)$ $(1,481,042)$	$(33,654)$ $(1,481,042)$ $(4,096,921)$
At 31 December 2009	118,531,046	33,483,427	13,941,171	201,470	(178, 803)	165,978,31	5,983,874	171,962,185

The above statement of changes in equity should be read in conjunction with the accompanying notes to the Half-Year Report.

CVC LIMITED & CONTROLLED ENTITIES CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2010

	Notes
		31 Dec 2010	31 Dec 2009
		\$	\$
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts in the course of operations		3,859,167	1,497,730
Cash payments in the course of operations		(2,570,356)	(2,340,529)
Interest received		1,083,490	1,934,707
Dividends received		512,053	20,670
Interest paid		(1, 383, 554)	(2,073,576)
Income taxes refunded/(paid)		301,255	(9,258,101)
Net cash flows provided by/(used) in operating activities	5(b)	1,802,055	(10, 219, 099)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for property, plant and equipment		(362, 106)	(362, 562)
Proceeds from disposal of property, plant and equipment			14,416
Payments for investment property			(3,274,951)
Payments for equity investments		(12,987,760)	(19,508,723)
Proceeds from sale of interest in controlled entities, net of cash		298,626
Proceeds on disposal of equity investments		16,672,596	13,488,547
Loans provided		(13, 413, 712)	(15,070,401)
Loans repaid		5,736,340	17,957,832
Net cash flows used in investing activities		(4,056,016)	(6,755,842)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid to members of the parent entity		(3,408,009)
Payments for share buybacks		(828, 105)	(4,098,710)
Net cash flows used in financing activities		(4, 236, 114)	(4,098,710)
Net decrease in cash held		(6,490,075)	(21,073,651)
Cash at the beginning of the half-year		40,796,600	66,113,849
Foreign exchange loss on cash		(5, 341)	(2,032)
CASH AT THE END OF THE HALF-YEAR	5(a)	34,301,184	45,038,166

The above statement of cash flows should be read in conjunction with the accompanying notes to the Half-Year Report.

NOTE 1: BASIS OF PREPARATION

The half-year financial report is a general-purpose financial report, which has been prepared in accordance with the requirements of AASB 134 Interim Financial Reporting and the Corporations Act 2001.

This interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report should be read in conjunction with the annual report for the year ended 30 June 2010 and any public announcements made by CVC during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period.

	31 Dec 2010 S	31 Dec 2009 \$
NOTE 2: INCOME TAX EXPENSE
Income tax expense:
Prima facie income tax expense at 30% on profit before income tax	2,567,636	2,736,072
Increase in income tax expense due to:
Sundry items	33,324	2,470
Trust loss not deductible	115,006	620,195
Deferred tax assets not recognised		1,121,045
Decrease in income tax expense due to:
Franked dividends received	(142, 247)	(56,031)
Deferred tax balances not recognised	(472,889)
Equity income not assessable		(36, 309)
Recovery of tax losses not recognised	(112, 311)
	1,988,519	4,387,442
Prior year over provision	(1, 128)	(37,687)
Income tax expense for the half-year	1,987,391	4,349,755

NOTE 3: DIVIDENDS

Dividends proposed or paid and not provided for in previous periods by CVC are:

CVC paid a final dividend of 3 cents per share on 8 September 2010 in respect of the year ended 30 June 2010.

On 28 February 2011, CVC declared an interim dividend of 2 cents per share to be paid on 19 March 2011 to shareholders registered on 15 March 2011.

	31 Dec 2010	30 Jun 2010
Dividend franking account
Franking credits available to shareholders for subsequent financial years	14,111,859	11,706,136

The franking account is stated on a tax paid basis. The balance comprises the franking account at period-end adjusted for: franking credits that will arise from the payment of tax; $(a)$

franking debits that will arise from the payment of dividends recognised as a liability at period-end; and $(b)$

Franking credits that the entity may be prevented from distributing in subsequent years. $(c)$

	31 Dec 2010	31 Dec 2009
NOTE 4: EARNINGS PER SHARE
	Cents	Cents
Basic earnings per share	4.54	4.20
Diluted earnings per share	4.54	4.20
Reconciliation of earnings used in calculation of earnings per share:	\$	\$
Net profit	6,571,396	4,770,484
Non-controlling interest	(587, 619)	1,098,442
Earnings used in calculation of earnings per share:	5,983,777	5,868,926
		Number of Shares
Weighted average number of ordinary shares - Basic and Diluted	131,749,054	139,630,756
Number of shares on issue at the end of the half-year	131,462,677	135,915,726

NOTE 5: NOTES TO THE CASH FLOW STATEMENT

(a) Reconciliation of Cash and Cash Equivalents

For the purposes of the statement of cashflows, cash includes cash on hand and at bank and short-term deposits at call. Cash as at the end of the interim reporting period is reconciled to the related items in the statement of financial position as follows:

	31 Dec 2010	30 Jun 2010 \$
Cash and cash equivalents	34,301,184	40,796,600
(b) Reconciliation of profit after income tax to the net cash provided by/(used in) operating activities:	31 Dec 2010	31 Dec 2009
	\$	\$
Profit/(loss) after income tax	6,571,396	4,770,484
Add/(less) non-cash items:
Share of equity accounted profits	(3,527,941)	(2,081,859)
Share option income	(687)	(1,680)
Depreciation and amortisation of plant and equipment	7,345	10,172
Net impairment provisions increase/(decrease)	2,595,722	(3, 154, 354)
Net discount on acquisition of shares in associates	(126.856)	(670, 820)
Net profit on disposal of investments	(2,626,320)	(4,339,450)
Interest income not received	(2,663,711)	(234, 103)
Interest expense not paid	473,925	354,055
Foreign exchange loss on cash	5,341	2,032
Movement in income tax provision	2,238,471	227,263
Movement in deferred tax assets and liabilities	50,175	(5, 135, 613)
Changes in assets and liabilities:
Trade and other receivables	(1,765,605)	74,490
Trade and other payables	384,189	(63, 729)
Provisions	31,485	(10,728)
Other assets	155,126	34,741
Net cash provided by/(used in) operating activities	1,802,055	(10, 219, 099)

	31 Dec 2010	30 Jun 2010
	\$	\$
NOTE 6: TRADE AND OTHER RECEIVABLES
Current
Loan and other receivables	1,008,017	1,058,998
Loans to related entities	8,035,813	8,216,628
Impairment of loans to related entities	(3,576,424)	(4,428,412)
Loans to other corporations	15,145,219	15,720,023
Impairment of loans to other corporations	(856, 818)
	19,755,807	20,567,237
Non-Current
Loans to related entities	2,161,647	1,821,330
Impairment of loans to related entities	(941, 972)
Loans to other corporations	14,567,387	30,000
Impairment of loans to other corporations	(30,000)	(30,000)
	15,757,062	1,821,330

NOTE 7: INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Equity accounted shares in listed associated companies	21,504,449	20,781,963
Equity accounted shares in other associated companies	18.944.842	16,884,275
	40.449.291	37,666,238

Associated entities

Details of associated entities are as follows:

		% Ownership at end of half-year		Carrying value	Contribution to net profit
	31 Dec 10	30 Jun 10	31 Dec 10	30 Jun 10	31 Dec 10	31 Dec 09
			\$	\$	\$	$\mathfrak{F}$
mNet Group Limited	-			$\overline{\phantom{a}}$		(92, 266)
Cellnet Group Limited	38.7	38.7	9,680,495	8,541,613	618,420	(3,508)
Pro-Pac Packaging Limited	28.2	28.2	11,823,954	12,240,350	1,072,969	920,618
GPG (No.7) Pty Limited	27.5	27.5	7,947,115	7,116,615	830,500	(238, 425)
CVC Sustainable Investments	22.8	22.2	1,932,084	2,426,136	(647, 459)	143,817
Ron Finemore Transport Pty Limited	50.0	50.0	8,872,501	7,160,733	1,711,768	1,288,027
CVC Reef Investment Managers Limited	50.0	50.0	193.142	180,791	12,351	63,596
Concise Asset Management Limited	49.0	49.0			(70, 608)
			40,449.291	37,666,238	3,527,941	2,081,859

	31 Dec 2010	30 Jun 2010
	\$	\$
NOTE 8: FINANCIAL ASSETS "AVAILABLE-FOR-SALE"
Non-Current
Shares in listed corporations - at market value	32,693,396	35,029,036
Other investments - at cost	5,618,424	5,261,336
Impairment of other investments - at cost	(1,500,000)	(1,500,000)
Other investments - at market value	1,510,439	1,350,841
Impairment of other investments - at market value	(433, 562)	(433, 562)
	37,888,697	39,707,651
NOTE 9: INVESTMENT PROPERTIES
Investment properties at beginning of the half-year	83,415,653	20,780,653
Reclassification from property, plant and equipment following change in
accounting standard		8,500,000
Additions - acquisition of properties		58,266,162
Additions - capital expenditure	353,655	515,408
Fair value adjustment	(1,253,655)	(4,646,570)
Total investment properties	82,515,653	83,415,653
NOTE 10: PROPERTY, PLANT AND EQUIPMENT
Plant and equipment:
At cost	45,882	43,897
Accumulated depreciation	(25, 528)	(18, 183)
Total plant and equipment	20,354	25,714
Reconciliation: Plant and equipment:
Carrying amount at the beginning of the half-year	25,714	47,570
Additions	1,985	11,575
Disposals		(15,021)
Depreciation	(7, 345)	(18, 410)
Carrying amount at the end of the half-year	20,354	25,714
Property:
Carrying amount at the beginning of the half-year		8,500,000
Reclassification to investment properties following change in accounting Standard		(8,500,000)
Carrying amount at the end of the half-year

		31 Dec 2010	\$	30 Jun 2010 \$
NOTE 12: TRADE AND OTHER PAYABLES
Trade and other payables Sundry creditors and accruals Goods and services tax payable			941,108 2,151,223 146,052	732,832 1,049,548 118,628
			3,238,383	1,901,008
NOTE 13: INTEREST-BEARING LOANS AND BORROWINGS
Current Unsecured loan Secured bank loan			539,902 6,350,000 6,889,902	539,902 6,350,000 6,889,902
Non current Secured bank loan Unsecured loan from associated entity		35,900,000	8,064,597	35,900,000 7,687,074
NOTE 14: CONTRIBUTED EQUITY	Number	43,964,597 31 Dec 2010 \$	Number	43,587,074 31 Dec 2009 \$
Issued and paid-up ordinary share capital Balance at the beginning of the half-year Shares bought back on market	132,360,618 (897, 941)	115,687,816 (760, 494)	142,848,621 (6,932,895)	122,627,967 (4,096,921)
Balance at the end of the half-year	131,462,677	114,927,322	135,915,726	118,531,046
		31 Dec 2010	\$	31 Dec 2009 \$
NOTE 15: RETAINED PROFITS
Balance at the beginning of the half-year Net profit attributable to shareholders Dividends		45,012,191 5,983,777 (3,955,839)		27,614,501 5,868,926
Balance at the end of the half-year			47,040,129	33,483,427

NOTE 16: OTHER RESERVES

			Total
			\$
			4,086,810
			83,973
			998,243
			98,359
			25,478
			(645,048)
			4,647,815
7,753,413	(136,770)	58,940	7,675,583
424,626	338,240	71,715	834,581
8,531,692		(438, 387)	8,093,305
(562,093)			(562,093)
89,957			86,261
(2,464,980)		132,625	(2,332,355)
168,556			168,556
13,941,171	201,470	(178, 803)	13,963,838
	Asset Revaluation Reserve \$ 3,633,443 (20, 484) 1,807,405 98,359 25,478 (642, 802) 4,901,399	Employee Equity Benefit Reserve \$ 165,230 56,307 221,537	Foreign Exchange Reserve 288,137 48,150 (809, 162) (2, 246) (475, 121) (3,696)

31 Dec 2010	31 Dec 2009
S
1.27	1.23
1.27	1.23

The figures above are calculated based on the consolidated financial position of CVC Limited.

NOTE 18: SEGMENT REPORTING

The revenues and results by business segments are as follows:

	Private Equity and Venture	Listed		Funds
	Capital \$	Investments \$	Property \$	Management \$	Consolidated \$
Half-year ended 31 December 2010:
Revenues:
Total revenue for reportable segments	73,895	3,557,709	8,578,490	856,166	13,066,260
Unallocated amounts: interest income					1,009,227
Consolidated revenue					14,075,487
Equity accounted income	2,542,268	1,691,389		(705, 716)	3,527,941
Results:
Total profit for reportable segments Share of profit of equity accounted	55,468	14,914	4,960,148	1,548,474	6,579,004
investees	2,542,268	1,691,389		(705, 716)	3,527,941
	2,597,736	1,706,303	4,960,148	842,758	10,106,945
Unallocated amounts: corporate expenses					(1,548,158)
Consolidated profit before tax					8,558,787
Half-year ended 31 December 2009:
Revenues: Total revenue for reportable segments	126,741	8,439,022	4,384,678	501,203	13,451,644
Unallocated amounts: interest income					1,201,860
Consolidated revenue					14,653,504
Equity accounted income	1,049,602	824,844		207,413	2,081,859
Results:
Total profit for reportable segments	126,741	8,436,989	1,187,309	(82, 194)	9,668,845
Share of profit of equity accounted investees	1,049,602	824,844		207,413	2,081,859
Unallocated amounts: corporate expenses	1,176,343	9,261,833	1,187,309	125,219	11,750,704 (2,630,465)
Consolidated profit before tax					9,120,239

Segment results are shown before related income tax expense.

NOTE 19: SUBSEQUENT EVENTS

Since the end of the period, the directors have determined to pay an interim dividend of 2 cents per share, fully franked, payable on 19 March 2011.

There are no other matters or circumstances that have arisen since the end of the financial period which significantly affected or may significantly affect the operations of CVC, the results of those operations or the state of affairs of CVC in the financial period subsequent to 31 December 2010.

CVC LIMITED & CONTROLLED ENTITIES HALF YEARLY REPORT

DIRECTORS' DECLARATION

In the opinion of the directors:

• the interim financial statements and notes set out on pages 4 to 17, are in accordance with the Corporations Act $(a)$ 2001 including:
• giving a true and fair view of the consolidated entity's financial position as at 31 December 2010 and of its $(i)$ performance for the half-year ended on that date; and
• complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations $(ii)$ 2001.
• there are reasonable grounds to believe that CVC Limited will be able to pay its debts as when they become due $(b)$ and payable.

Dated at Sydney this 28^th day of February 2011.

Signed in accordance with a resolution of the board of directors.

VANDA Director

ALEXANDER D. H. BEARD Director

Accountants | Business and Financial Advisers

CVC LIMITED

ACN 002 700 361

AUDITOR'S INDEPENDENCE DECLARATION

To the Directors of CVC Limited:

As lead auditor for the audit of CVC Limited for the half-year ended 31 December 2010, I declare that, to the best of my knowledge and belief, there have been no contraventions of:

• the auditor independence requirements of the Corporations Act 2001 in relation to the review; $(a)$ and
• any applicable code of professional conduct in relation to the review. $(b)$

This declaration in respect of CVC Limited and the entities it controlled during the period.

1. Alcade

P. B. Meade Partner

Sydney, 28 February 2011

HLB Mann Judd (NSW Partnership) ABN 34 482 821 289 Level 19 207 Kent Street Sydney NSW 2000 Australia | DX 10313 SSE | Telephone +61 (0)2 9020 4000 | Fax +61 (0)2 9020 4190 Email: mailbox@hlbnsw.com.au | Website: www.hlb.com.au Liability limited by a scheme approved under Professional Standards Legislation

HLB Mann Judd (NSW Partnership) is a member of HLB International. A world-wide organisation of accounting firms and business advisers.

19

Accountants | Business and Financial Advisers

CVC LIMITED & CONTROLLED ENTITIES

INDEPENDENT AUDITOR'S REVIEW REPORT

FOR THE HALF-YEAR ENDED 31 DECEMBER 2010

To the members of CVC Limited

We have reviewed the accompanying half-year financial report of CVC Limited ("the Group") which comprises the condensed statement of financial position as at 31 December 2010, the condensed statement of comprehensive income, condensed statement of changes in equity and condensed statement of cash flows for the half-year ended on that date, other selected explanatory notes and the directors' declaration of the consolidated entity comprising CVC Limited ("the Company") and the entities it controlled at the half-year end or from time to time during the half-year, as set out on pages 4 to 18.

Directors' Responsibility for the half-year financial report

The directors of the Company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such control as the directors determine is necessary to enable the preparation of the halfvear financial report that is free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity. in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity's financial position as at 31 December 2010 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of the Company, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

While we considered the effectiveness of management's internal controls over financial reporting when determining the nature and extent of our procedures, our review was not designed to provide assurance on internal controls.

Our review did not involve an analysis of the prudence of business decisions made by directors or management.

HLB Mann Judd (NSW Partnership) ABN 34 482 821 289

Level 19 207 Kent Street Sydney NSW 2000 Australia | DX 10313 SSE | Telephone +61 (0)2 9020 4000 | Fax +61 (0)2 9020 4190 Email: mailbox@hlbnsw.com.au | Website: www.hlb.com.au

Liability limited by a scheme approved under Professional Standards Legislation

HLB Mann Judd (NSW Partnership) is a member of HLB International. A world-wide organisation of accounting firms and business advisers.

CVC LIMITED & CONTROLLED ENTITIES

INDEPENDENT AUDITOR'S REVIEW REPORT (Continued)

FOR THE HALF-YEAR ENDED 31 DECEMBER 2010

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.

We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of CVC Limited, would be in the same terms if given to the directors as at the time of this auditor's review report.

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of CVC Limited is not in accordance with the Corporations Act 2001 including:

• (a) giving a true and fair view of the consolidated entity's financial position as at 31 December 2010 and of its performance for the half-year ended on that date; and
• (b) complying with Accounting Standards AASB 134 Interim financial Reporting and Corporations Regulations 2001.

HhB Mann Judd

HLB MANN JUDD Chartered Accountants

Malcade

P B Meade Partner

Sydney 28 February 2011