CVC LIMITED — Interim / Quarterly Report 2012

Feb 27, 2012

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 2011				31 December 2010
Results
Revenue from ordinary activities		up	49.1%	to	\$26,255,430
Profit/(loss) before tax		up	40.8%	to	12,051,020
Profit/(loss) after tax attributable to members		up	52.6%	to	9,131,259
Net profit/(loss) attributable to members		up	52.6%	to	9,131,259

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:

On 14 February 2012 the directors resolved to pay a fully franked interim dividend of 2 cents per share payable on 1 March 2012 to shareholders registered on 23 February 2012.

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	17 February 2012
Record date for determining entitlements to the dividend	23 February 2012
Payment Date	1 March 2012

Commentary

Brief explanation of any of the figures reported above:

Please refer to the attached commentary for a detailed review.

Commentary on Results

Half-Year Result:

The directors of CVC report a net profit after tax to shareholders of \$9.1 million (2010: profit of \$6.0 million) for the half-year ended 31 December 2011.

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

The highlights during the half year are as follows:

Property

Property contributed \$5.7 million (2010: \$5.0 million) to comprehensive income. The improved performance has been a direct result of the sale of 1464 Ferntree Gully Road Knoxfield Victoria by the CVC Property Fund in November for \$31.5 million, generating a profit of \$2.2 million, although this has been offset against an impairment of \$1.6 million against the Frenchs Forest New South Wales property to reflect a reduction in value of the property. CVC continues 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 \$7.0 million (2010: \$2.1 million). The performance has been driven by the profit generated from the sale of Pro-Pac Packaging Limited which amounted to \$9.3 million and distributions received from various investments of \$1.6 million. This was offset against a net reduction in the carrying value of investments of \$4.8 million which have been included in both the statement of comprehensive income as impairment charges and the revaluation reserve in the statement of financial position.

Private Equity

The contribution to comprehensive income of \$3.3 million (2010: \$2.6 million) is a direct reflection on the consistent results of Greens Food Pty Limited and, to a lesser extent, by Ron Finemore Transport 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.

During the period Battery Energy Power Solutions Pty Limited (and industrial battery manufacturer) became a consolidated entity of CVC, and it is expected that it will add to the growing returns being generated by private equity investments.

Fund Management

The contribution to comprehensive income of this segment was \$1.4 million (2010: \$0.8 million) which has been a result of one of the many benefits derived from the wind-up of various investment vehicles managed by CVC.

Concise Asset Management Limited (Mid Cap Australian Equities Specialist) continues to grow funds under management and is expected to 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 2012 full year profit as there are various uncertainties that will impact the outcome of the result.

Level 42 259 George Street Sydney NSW 2000 T 02 9087 8000 F 02 9087 8088 www.cvc.com.au

Capital Management

Since 1 July 2011, 3,968,080 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 shareholders on 9 September 2011 for the year ended 30 June 2011. On 14 February 2012 the directors resolved to pay an interim dividend of 2 cents per share payable on 1 March 2012 to shareholders registered on 23 February 2012.

ADH Beard Director 28 February 2012

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

CVC LIMITED AND ITS CONTROLLED ENTITIES

HALF-YEAR FINANCIAL REPORT

For the half-year ended 31 December 2011

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 William J Highland

Joanne Hume John A Hunter Elliott G Kaplan

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 Suncorp-Metway Limited Bank of Western Australia Limited National Australia Bank 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 2011 and the independent review report 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 2011 of CVC amounted to \$9.1 million (2010: profit \$6.0 million).

The current period has seen a continuation of the strong contribution of operating performance from property, which CVC has continued to capitalise on the major financial institutions reluctance to provide funding to property related opportunities. This result is supplemented by one off transactions that are generated in the other segments, which includes the contribution to profit from the sale of Pro-Pac Packaging Limited of \$9.3 million.

The operating results of both Ron Finemore Transport Pty Limited and Greens Food Pty Limited continue to generate consistent results in the face of a fall in consumer spending, tougher competition in the retail market and a rising Australian dollar. During the period Battery Energy Power Solutions Pty Limited (an industrial Battery Manufacturer) became a controlled entity of CVC, and it is expected that it will add to the growing returns being generated by 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, directors paid a final fully franked dividend in respect of the year ended 30 June 2011 of 3 cents per share on 9 September 2011. Since the end of the period, the directors have determined to pay an interim dividend in respect of the year ended 30 June 2012 of 2 cents per share, fully franked, payable on 1 March 2012.

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 2011.

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 18.

Signed and Dated Sydney this 28^th day of February 2012 in accordance with a resolution of directors.

R. GOULD Director

\PER D. H. BEARD Dfrector

CVC LIMITED & CONTROLLED ENTITIES CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

	Notes
		31 Dec 2011	31 Dec 2010
		\$	\$
INCOME
Revenue from services		181,087	730,458
Rental income		2,732,758	2,982,608
Outgoings recovered		610,439	488,474
Net gain on sale of equity investments		6,849,070	2,626,320
Net change in fair value of investment properties Interest income		582,952	3,747,201
Dividends received		5,280,483	692,494
Discount on acquisition		1,885,616 2,274,344
Recovery of investments in associated entities		2,519,961
Recovery of loans in associated entities		40,000
Recovery of loans in related entities		204,767
Recovery of loans in unrelated entities			1,499,598
Other income		237,800	1,308,334
Total income		23,399,277	14,075,487
Equity accounted profits
Share of net profits of associates	7	2,856,153	3,527,941
EXPENSES
Audit fees		44,300	65,928
Depreciation expense		5,932	7,345
Directors fees		317,000	292,000
Employee costs Finance costs		1,209,528 1,863,199	1,026,422
Impairment of investment property			2,049,965 1,253,655
Impairment of investments in associated entities		2,005,188	2,146,335
Impairment of unlisted investments		158,692	687
Impairment of loans to associated entities		390,596	4,782
Impairment of loans to related entities		4,350,109	14,594
Impairment of other listed investments		2,177,927	675,267
Insurance		85,357	81,880
Legal costs		151,480	131,133
Management and consultancy fees		450,973	431,611
Operating lease expense		217,798	210,068
Travel and accommodation		29,847	50,320
Other expenses		746,484	602,649
Total expenses		14,204,410	9,044,641
Profit before related income tax expense		12,051,020	8,558,787
Income tax expense	$\overline{2}$	2,112,069	1,987,391
Net profit for the half-year		9,938,951	6,571,396
Net profit attributable to:
Members of the parent entity	16	9,131,259	5,983,777
Non-controlling interest		807,692	587,619
Net profit for the half-year		9,938,951	6,571,396
Basic earnings per share (cents)	4	7.37	4.54
Diluted earnings per share (cents)	4	7.37	4.54
Dividends paid during the half-year per share (cents)		3.00	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 2011

	Notes
		31 Dec 2011	31 Dec 2010
		S	\$
Profit for the half-year		9,938,951	6,571,396
Other comprehensive income
- "Available-for-sale" investments:
- Increase in fair values recognised in other reserves		6,059,292	998,243
- Amounts transferred from other reserves to the income
statement on sale		(2,376,587)	(645,048)
- Value of associates asset revaluation reserve recognised in other reserves		(261, 615)	(20, 484)
- Value of associates foreign currency translation reserve recognised in other
reserves			48,150
Other comprehensive income for the half-year, net of tax		3,421,090	380,861
Total comprehensive income for the half-year		13,360,041	6,952,257
Total comprehensive income for the half-year is attributable to:
Members of the parent entity		12,969,539	6,462,997
Non-controlling interest		390,502	489,260
		13,360,041	6,952,257

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 2011

	Notes
		31 Dec 2011	30 Jun 2011
			\$
CURRENT ASSETS
Cash and cash equivalents	5	37,653,267	17,974,188
Loans and other receivables	6	24,599,007	25,839,889
Financial assets - "available-for-sale"	8	700,000	700,000
Inventories	11	1,511,785
Current tax assets		17,887	17,887
Other assets		606,699	413,310
Total current assets		65,088,645	44,945,274
NON-CURRENT ASSETS
Loans and other receivables	6	17,377,478	13,686,134
Financial assets "available-for-sale"	8	54,653,282	47,035,043
Investments accounted for using the equity method	7	29,831,809	40,536,529
Investment properties	9	44,580,653	74,949,158
Property, plant and equipment	10	828,016	17,832
Deferred tax assets		47,462
Total non-current assets		147,318,700	176,224,696
TOTAL ASSETS		212,407,345	221,169,970
CURRENT LIABILITIES
Trade and other payables	12	3,801,087	5,150,622
Interest bearing loans and borrowings	13	29,250,120	8,967,266
Provisions	14	639,004	243,874
Current tax liabilities		2,558,155	3,763,503
Total current liabilities		36,248,366	18,125,265
NON-CURRENT LIABILITIES
Trade and other payables	12	1,606,903
Interest bearing loans and borrowings	13		35,900,000
Provisions	14	104,589	71,871
Deferred tax liabilities		323,890
Total non-current liabilities		2,035,382	35,971,871
TOTAL LIABILITIES		38,283,748	54,097,136
NET ASSETS		174,123,597	167,072,834
EQUITY
Contributed equity	15	107,586,190	110,978,239
Retained profits	16	54,141,476	48,724,233
Other reserves	17	3,150,972	127,631
Parent entity interest		164,878,638	159,830,103
Non-controlling interest		9,244,959	7,242,731
TOTAL EQUITY		174,123,597	167,072,834

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 2011 CVC LIMITED & CONTROLLED ENTITIES

	equity \$ Contributed	earnings 5 Retained	Asset revaluation s	Employee equity benefit	Foreign exchange s translation	Owners of the parent s	interest S Non-controlling	Total S
At 1 July 2011	110,978,239	48,724,233	(44,371)	225,458	(53,456)	159,830,103	7,242,731	167,072,834
Total comprehensive income for the half-year Other comprehensive income Profit for the half-year		9,131,259 9,131,259	3,749,903 3,749,903		88,377 88,377	9,131,259 3,838,280 12,969,539	807,692 390,502 (417, 190)	3,421,090 13,360,041 9,938,951
Share of associates equity based remuneration recognised in other reserve Other movements in equity:				12,292		12,292		12,292
Non-controlling interest disposal of interest in controlled entities Acquisition of interest in controlled entities Transactions with shareholders: Tax Benefit of transaction costs Shares bought back Dividend paid	(3,469,297) 77,248 1	(3,714,016)	(827,231)			(827,231) 77,248 (3,469,297) (3,714,016)	2,440,042 (632,368) (195,948)	77,248 1,612,811 (632,368) (3,909,964) (3,469,297)
At 31 December 2011	107,586,190	54,141,476	2,878,301	237,750	34,921	164,878,638	9,244,959	174,123,597
At 1 July 2010	115,687,816	45,012,191	3,633,443	165,230	288,137	164,786,817	7,428,873	172,215,690
Total comprehensive income for the half-year Other comprehensive income Profit for the half-year		5,983,777 5,983,777	1,242,478 1,242,478		(763,258) (763, 258)	479,220 6,462,997 5,983,777	587,619 489,260 (98,359)	6,571,396 380,861 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: At 31 December 2010 Shares bought back Dividend paid	(760, 494) 114,927,322	(3,955,839) 47,040,129	25,478 4,901,399	221,537	(475, 121)	25,478 (760, 494) 166,615,266 (3,955,839)	229,935 8,148,068	255,413 (760, 494) (3,955,839) 174,763,334

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

$\overline{a}$

CVC LIMITED & CONTROLLED ENTITIES CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

	Notes
		31 Dec 2011	31 Dec 2010
		\$	\$
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts in the course of operations		4,383,280	3,859,167
Cash payments in the course of operations		(5,851,751)	(2,570,356)
Interest received		1,703,225	1,083,490
Dividends received		1,935,427	512,053
Interest paid		(1,261,189)	(1, 383, 554)
Income taxes (paid)/ refunded		(3,760,256)	301,255
Net cash flows (used in)/provided by operating activities	5(b)	(2,851,264)	1,802,055
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for property, plant and equipment		(863, 293)	(362, 106)
Proceeds on disposal of investment property		31,500,000
Payments for equity investments		(14, 953, 126)	(12,987,760)
Proceeds on disposal of equity investments		24,566,478	16,672,596
Payments for acquisition of controlled entities, net of cash acquired		(3,714,025)
Proceeds on disposal of controlled entities, net of cash disposed		1,134,745	298,626
Loans provided		(11,631,190)	(13, 413, 712)
Loans repaid		20,365,519	5,736,340
Net cash flows provided by/(used in) investing activities		46,405,108	(4,056,016)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of borrowings		(16,000,000)
Dividends paid to members of the parent entity		(4,448,644)	(3,408,009)
Payments for share buybacks		(3, 425, 372)	(828, 105)
Net cash flows used in financing activities		(23,874,016)	(4,236,114)
Net increase/(decrease) in cash held		19,679,828	(6,490,075)
Cash at the beginning of the half-year		17,974,188	40,796,600
Foreign exchange loss on cash		(749)	(5,341)
CASH AT THE END OF THE HALF-YEAR	5(a)	37,653,267	34,301,184

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

NOTE 1: STATEMENT OF ACCOUNTING POLICIES

1.1 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 2011 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, other than the inventories policy.

1.2 Inventories

Inventories are measured at the lower of cost and net realisable value.

Cost incurred in bringing each product to its present location and condition are accounted for as follows:

• Raw materials purchase cost on a first-in, first-out basis.
• Finished goods and work-in-progress cost of direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity but excluding borrowing costs.

Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

	31 Dec 2011	31 Dec 2010
	\$	\$
NOTE 2: INCOME TAX EXPENSE
Income tax expense:
Prima facie income tax expense at 30% on profit before income tax	3,615,306	2,567,636
Increase in income tax expense due to:
Sundry items	31,194	33,324
Trust loss not deductible		115,006
Decrease in income tax expense due to:
Franked dividends received	(772, 454)	(142, 247)
Deferred tax balances not recognised	(428, 663)	(472, 889)
Trust profit not assessable	(462,726)
Recovery of tax losses not recognised		(112,311)
	1,982,657	1,988,519
Adjustment in respect of current income tax of previous years	129,412	(1, 128)
Income tax expense for the half-year	2,112,069	1,987,391

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 9 September 2011 in respect of the year ended 30 June 2011.

On 14 February 2012, CVC declared an interim dividend of 2 cents per share to be paid on 1 March 2012 to shareholders registered on 23 February 2012.

	31 Dec 2011	30 Jun 2011
Dividend franking account
Franking credits available to shareholders for subsequent financial years	16,749.645	15,340,883

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 the amount of the provision for income 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 2011	31 Dec 2010
NOTE 4: EARNINGS PER SHARE
	Cents	Cents
Basic earnings per share	7.37	4.54
Diluted earnings per share	7.37	4.54
Reconciliation of earnings used in calculation of earnings per share:	\$	\$
Net profit	9,938,951	6,571,396
Non-controlling interest	(807, 692)	(587, 619)
Earnings used in calculation of earnings per share:	9,131,259	5,983,777
		Number of Shares
Weighted average number of ordinary shares - Basic and Diluted	123,855,687	131,749,054
Number of shares on issue at the end of the half-year	123,216,921	131,462,677

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 2011	30 Jun 2011
Cash and cash equivalents 37,653,267	17,974,188
(b) Reconciliation of profit after income tax to the net cash (used in) /provided by operating activities:
31 Dec 2011	31 Dec 2010
	\$ \$
Profit after income tax 9,938,951	6,571,396
Add/(less) non-cash items:
Share of equity accounted profits (2,856,153)	(3,527,941)
Share option income	(687)
Depreciation and amortisation of plant and equipment	5,932 7,345
Bad debts written off	18,958
Impairment expenses on assets 9,082,512	2,595,722
Impairment recoveries (2,764,728)
Net discount on acquisition of shares (2, 274, 344)	(126, 856)
Net profit on disposal of investments (6,849,070)	(2,626,320)
Net change in fair value of investment properties (582, 952)
Interest income not received (3,577,257)	(2,663,711)
Interest expense not paid	591,262 473,925
Dividend income not received	49,811
Foreign exchange loss on cash	749 5,341
Movement in income tax provision (1,986,400)	2,238,471
Movement in deferred tax assets and liabilities	338,213 50,175
Changes in assets and liabilities:
Trade and other receivables	12,022 (1,765,605)
Trade and other payables (2, 333, 144)	384,189
Provisions	46,128 31,485
Other assets	288,246 155,126
Net cash (used in) /provided by operating activities (2,851,264)	1,802,055

	31 Dec 2011 \$	30 Jun 2011 \$
NOTE 6: LOANS AND OTHER RECEIVABLES
Current
Trade and other receivables	2,471,706	934,497
Loans to related entities	5,257,570	8,108,806
Impairment of loans to related entities	(2,344,539)	(3,562,948)
Loans to other corporations	19,214,270	20,359,534
	24,599,007	25,839,889
Non-Current
Loans to related entities	1,812,906	1,281,942
Impairment of loans to related entities	(1,040,414)	(1,035,399)
Loans to other corporations	16,634,986	13,469,591
Impairment of loans to other corporations	(30,000)	(30,000)
	17,377,478	13,686,134
NOTE 7: INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Equity accounted shares in listed associated companies	8,968,693	20,789,695
Equity accounted shares in other associated companies	20,863,116	19,746,834
	29,831,809	40,536,529

Associated entities

Details of associated entities are as follows:

		% Ownership at end of half-year		Carrying value	Contribution to net profit
	31 Dec 11	30 Jun 11	31 Dec 11	30 Jun 11	31 Dec 11	31 Dec 10
			\$	\$	S	\$
Cellnet Group Limited	46.7	46.5	8,968,693	10,392,296	259,492	618,420
Concise Asset Management Limited	49.0	49.0				(70, 608)
CVC Reef Investment Managers Limited	n/a	50.0		180,517	509,326	12,351
CVC Sustainable Investments	23.5	23.5	1,419,321	1,501,600	189,162	(647, 459)
CVC Wagga Wagga Unit Trust	50.0	50.0
GPG (No.7) Pty Limited	27.5	27.5	9,108,440	8,218,540	889,900	830,500
JAK Investment Group Pty Ltd	40.0	40.0
Pro-Pac Packaging Limited	n/a	28.6	۰	10,397,399	519,095	1,072,969
Ron Finemore Transport Pty Limited	50.0	50.0	10,335,355	9,846,177	489,178	1,711,768
			29,831,809	40,536,529	2,856,153	3,527,941

	31 Dec 2011 \$	30 Jun 2011 \$
NOTE 8: FINANCIAL ASSETS "AVAILABLE-FOR-SALE"
Current
Other investments - at cost	700,000	700,000
Non-Current
Shares in listed corporations - at market value	47,530,752	42,316,108
Other investments - at cost	7,692,287	5,182,591
Impairment of other investments - at cost	(1,500,000)	(1,500,000)
Other investments - at market value	1,522,497	1,469,906
Impairment of other investments - at market value	(592, 254)	(433, 562)
	54,653,282	47,035,043
NOTE 9: INVESTMENT PROPERTIES
Investment properties	44,580,653	74,949,158
Reconciliation:
Investment properties at beginning of the half-year	74,949,158	83,415,653
Additions - capital expenditure Carrying value of investment property sold	548,543 (31,500,000)	1,701,608
Fair value adjustment	582,952	(8,479,453) (1,688,650)
Total investment properties	44,580,653	74,949,158
NOTE 10: PROPERTY, PLANT AND EQUIPMENT
Plant and equipment:
At cost	854,021	38,202
Accumulated depreciation	(26,005)	(20, 370)
Total plant and equipment	828,016	17,832
Reconciliation: Plant and equipment:
Carrying amount at the beginning of the half-year	17,832	25,714
Additions - acquisition of controlled entities	813,546
Additions - capital expenditure	3,265	6,157
Disposals	(695)
Depreciation	(5,932)	(14,039)
Carrying amount at the end of the half-year	828,016	17,832
NOTE 11: INVENTORIES

Current
Inventories	1,511,785

		31 Dec 2011		30 Jun 2011
			\$	\$
NOTE 12: TRADE AND OTHER PAYABLES
Current
Trade and other payables			1,603,371	1,427,421
Sundry creditors and accruals			1,919,475	2,487,744
Goods and services tax payable			278,241	1,235,457
			3,801,087	5,150,622
Non-current
Trade and other payables			231,903
Loan from associated entity			1,375,000
			1,606,903
NOTE 13: INTEREST-BEARING LOANS AND BORROWINGS
Current Unsecured loan			539,902	539,902
Unsecured loan from associated entity			8,810,218	8,427,364
Secured bank loan			19,900,000
			9,350,120	8,967,266
Non-current
Secured bank loan				35,900,000
			19,900,000	35,900,000
NOTE 14: PROVISIONS
Current Maintenance warranties
Employee entitlements			130,000 509,004	243,874
			639,004	243,874
Non-current Employee entitlements			104,589	71,871
			104,589	71,871
		31 Dec 2011		31 Dec 2010
NOTE 15: CONTRIBUTED EQUITY	Number	\$	Number	\$
Issued and paid-up ordinary share capital
Balance at the beginning of the half-year	127,088,001	110,978,239	132,360,618	115,687,816
Shares bought back on market	(3,871,080)	(3,392,049)	(897, 941)	(760, 494)
Balance at the end of the half-year	123,216,921	107,586,190	131,462,677	114,927,322

	31 Dec 2011	31 Dec 2010
NOTE 16: RETAINED PROFITS	\$
Balance at the beginning of the half-year	48,724,233	45,012,191
Net profit attributable to shareholders	9,131,259	5,983,777
Dividends	(3,714,016)	(3,955,839)
Balance at the end of the half-year	54,141,476	47,040,129

NOTE 17: OTHER RESERVES

		Employee
	Asset	Equity	Foreign
	Revaluation	Benefit	Exchange
	Reserve	Reserve	Reserve	Total
	\$	\$	\$	\$
Half-year ended 31 December 2011:
Balance at the beginning of the half-year	(44, 371)	225,458	(53, 456)	127,631
Equity accounted share of associates reserves	(261, 615)	12,292		(249, 323)
Net unrealised gain on "available-for-sale" investments	5,970,915		88,377	6,059,292
Net unrealised loss on "available-for-sale" investments - non-
controlling interest	(1, 348)			(1, 348)
Acquisition of interest in controlled entities	(827, 231)			(827, 231)
Realised gain on "available-for-sale" investments reclassified
to the income statement	(2,376,587)			(2,376,587)
Realised loss on "available-for-sale" investments reclassified
to the income statement - non-controlling interest	418,538			418,538
Balance at the end of the half-year	2,878,301	237,750	34,921	3,150,972
Half-year ended 31 December 2010:
Balance at the beginning of the half-year	3,633,443	165,230	288,137	4,086,810
Equity accounted share of associates reserves	(20, 484)	56,307	48,150	83,973
Net unrealised gain/(loss) on "available-for-sale" investments	1,807,405		(809, 162)	998,243
Net unrealised gain on "available-for-sale" investments - non-
controlling interest	98,359			98,359
Acquisition of non-controlling interest	25,478			25,478
Realised gain on "available-for-sale" investments reclassified
to the income statement	(642, 802)		(2, 246)	(645,048)
Balance at the end of the half-year	4,901,399	221,537	(475, 121)	4,647,815
		31 Dec 2011	31 Dec 2010
NOTE 18: ASSETS PER SECURITY
		\$		\$
Net assets per share attributable to members of the parent entity		1.34		1.27
Net tangible assets per share attributable to members of the parent entity		1.34		1.27

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

NOTE 19: SEGMENT REPORTING

The revenues and results by business segments are as follows:

	Private Equity and Venture Capital \$	Listed Investments \$	Property \$	Funds Management \$	Consolidated \$
Half-year ended 31 December 2011:
Revenues:
Total revenue for reportable segments	1,958,305	11,059,783	8,425,601	1,197,268	22,640,957
Unallocated amounts: interest income					758,320
Consolidated revenue					23,399,277
Equity accounted income	1,379,078	778,587		698,488	2,856,153
Results:
Total profit for reportable segments	1,958,305	2,825,934	5,695,642	693,224	11,173,105
Share of profit of equity accounted investees	1,379,078	778,587		698,488	2,856,153
	3,337,383	3,604,521	5,695,642	1,391,712	14,029,258
Unallocated amounts: corporate expenses					(1,978,238)
Consolidated profit before tax					12,051,020
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

Segment results are shown before related income tax expense.

NOTE 20: 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 1 March 2012.

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 2011.

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 16, are in accordance with the Corporations Act $(a)$ 2001 including:
• $(i)$ giving a true and fair view of the consolidated entity's financial position as at 31 December 2011 and of its 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 2012.

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

GOULD

VANDA Director

XANDER D. H. BEARD AL Director

Accountants | Business and Financial Advisers

CVC LIMITED & CONTROLLED ENTITIES

AUDITOR'S INDEPENDENCE DECLARATION

To the Directors of CVC Limited:

As lead auditor for the review of the financial report of CVC Limited for the half-year ended 31 December 2011, I declare that to the best of my knowledge and belief, there have been no contraventions of:

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

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

is that

M D Muller Partner

Sydney 28 February 2012

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

FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

To the members of CVC Limited

We have reviewed the accompanying half-year financial report of CVC Limited ("the Company") which comprises the condensed statement of financial position as at 31 December 2011, the condensed statement of financial performance, 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 the Company and the entities it controlled at the half-year end or from time to time during the half-year.

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 half-year 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 2011 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 2011

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 2011 and of its performance for the half-year ended on that date; and
• complying with Accounting Standard AASB 134 Interim Financial Reporting and the $(b)$ Corporations Regulations 2001.

HLB

HLB MANN JUDD Chartered Accountants

M D Muller Partner

Sydney 28 February 2012