CVC LIMITED — Interim / Quarterly Report 2018

Feb 21, 2018

RESULTS ANNOUNCEMENT for the 6 MONTHS ENDED 31 DECEMBER 2017

GROUP HIGHLIGHTS

Momentum has continued, translating into growth in earnings	Underlying NPAT: NPAT to shareholders: Income:	\$20.0 million up 17.2% from \$17.0 million in 1H FY17 \$16.6 million, up 7.7% from \$15.4 million in 1H FY17 \$31.4 million, up 30.7% from \$24.0 million in 1H FY17
Balance Sheet Strength	Net Tangible Assets of \$208.3 million including cash of \$56.4 million
Growth in Total Shareholder Returns		Total shareholder return for the past 20 years of 19.4% per annum

The 2018 financial year has commenced strongly. The half year has generated an underlying net profit after tax of \$20.0 million an improvement of 17.2% over the prior corresponding period and a net profit after tax to shareholders of \$16.6 million, a 7.7% improvement on last year's result of \$15.4 million.

UNDERLYING RESULTS
	1H FY2018	1H FY 2017	Growth vs pcp (%)
Total income	\$31.4 m	\$24.0 m	30.7%
Underlying NPAT	\$20.0 m	\$17.0 m	17.2%
NPAT to shareholders	\$16.6 m	\$15.4 m	7.7%
Interim Dividend	7.0 cps	5.0 cps	40.0%
Net tangible assets	\$208.3 m	\$198.4 m	5.0%
Net cash position	\$56.4 m	\$41.7 m	35.0%

CVC continues to deliver strong earnings, increased dividends and identification of new opportunities to underpin future returns. The results for the six months excludes the conditional structured sale of the Donnybrook property announced on 20 December 2017 that will underpin the future profitability of CVC for the next 4 financial years.

Highlights include:

• Headline net profit after tax of \$20.0 million (31 December 2016: \$17.0 million);
• Significant contribution from each of the major investment segments, with maintainable earnings continuing to increase;
• Conditional sale of development land it owns in joint venture with Villa World in Donnybrook, Victoria generating an anticipated profit of \$49 million on a staged basis over 4 years;
• Continued strong performance of the listed equities portfolio, with additions and subtractions to the core portfolio;
• Significant advances made in planning approvals of property projects at Marsden Park, Liverpool, Turrella, Kingsgrove and Caboolture;
• Successful secondary capital raising of \$16.6 million by Eildon Capital Limited (ASX: EDC);
• Continued growth of private equity portfolio with the progression of new investment opportunities, and the sale of the investment in South Pack Laboratories (Aust) Pty Limited;
• Investment into growing debt managers including Aus Finance Group, Bigstone Capital Pty Limited and Australian Invoice Finance Limited;
• Payment of a fully franked dividend of 8 cents per share during the period and 40% increase in the interim dividend to 7 cents per share payable on 7 March 2018.

CVC LIMITED – SHAREHOLDER VALUE CREATION

Earnings Growth

CVC's annual profit is consistently supplemented by individually significant transactions such as the sale of significant investments and project realisations. As CVC broadens its deal flow and expands its investment team significant transactions are becoming more recurrent, whilst underlying earnings continued on a growth trajectory.

Individual investment segments have consistently contributed to operating profits:

• CVC has continued to identify and execute on high conviction listed investment opportunities;
• Property lending and development activities have consistently contributed to profits, growing over time;
• Significant private equity investments continue to be acquired, developed and divested;
• CVC continues to identify opportunities to incubate and grow funds management opportunities.

After extracting the impact of individually significant transactions the growth in normalised income becomes.

Normalised net profit for the half year ended 31 December 2017 has exceeded the total normalised net profit for the entire year ended 30 June 2017. Including the conditional Donnybrook sale announced in December 2017, CVC is in the process of securing recurrent profits for the next 4 – 5 years. It is a key objective of management to add to the secured annual profit streams.

Total Shareholder Return

Since 30 June 2010, CVC's share price has increased 238% with fully franked dividends of 76 cents per share paid. This has generated a Total Shareholder Return (TSR) of 25.1% per annum.

Over the last 20 years, since 31 December 1997, an investment in CVC would have generated a TSR of 19.39% per annum. These returns have reflected both growth in Net Tangible Assets Per Share (NTA) and fully franked dividends paid of \$1.1975 per share.

HALF YEAR IN REVIEW

Highlights

CVC's listed equity portfolio performed strongly, generating a combination of dividends and capital profits from a number of significant shareholdings and transactions. The listed equity sector remains a focus. We continue to strengthen our investment team to take advantage of opportunities in this sector.

CVC's property portfolio is a major source of recurrent earnings and capital growth. The conditional sale of the Donnybrook property will generate an anticipated profit of \$49 million on a staged basis over 4 years.

Further progress in the development of strategic land holdings has been made during the period from projects at Liverpool, Marsden Park, Caboolture, Kingsgrove and Turrella.

The property loan portfolio continues to grow as deal flow remains strong. The capital market for property financing and investment will continue to generate consistent long term recurrent income streams. In addition, the inherent uplift in value from direct property investment is anticipated to contribute to earnings over the longer term as identified projects are realised.

CVC's funds management division grew with the second capital raising of Eildon Capital, continued raising of Add+Venture, ongoing litigation fund activities, and continued focus on expanding external investment strategies. These new strategies will complement the existing portfolio and contribute to ongoing profitability via recurrent management fees and performance fees.

Property

Total contribution to comprehensive income was \$16.6 million (31 December 2016: \$2.4 million) net of project specific borrowing costs of \$0.7 million.

• Conditional sale of development land in joint venture with Villa World in Donnybrook, Victoria. CVC will realise a profit of approximately \$49 million on a staged basis over 4 years;
• Completion of the development and sale of a medical centre at Yarrabilba, Queensland which generated a project profit of \$4.8 million;
• Interest and associated fee income of \$3.4 million from the provision of finance facilities; and
• Continued development of a retail centre at Caboolture, Queensland, with expected completion during 2H FY2018.

Progress has been made on planning approvals in respect of Marsden Park North in New South Wales, East Bentleigh and Donnybrook in Victoria. CVC continued the repositioning and development of the Caboolture and Mooloolaba projects in Queensland. All projects provide long term development pipelines once planning outcomes have been achieved of retail, commercial and residential uses.

CVC's property portfolio provides a combination of recurrent income streams, such as interest and associated fee income from loans, rental income from direct property investments and capital growth in the underlying assets. This objective is driven by investment in both direct and indirect property assets, with the portfolio spanning the residential, commercial, retail and industrial sectors. The focus is to provide loans or make direct property investments to take full advantage of changing market cycles.

Deal flow remains strong for lending opportunities, with the current balance of the loan book being \$26 million as at 31 December 2017. In addition, CVC continues to review opportunities to acquire quality long term direct property holdings capable of generating an income stream whilst repositioning the asset via planning outcomes for substantial future capital gain.

Private Equity

The total contribution to comprehensive income was \$3.0 million (31 December 2016: \$13.4 million). During the period South Pack Laboratories (Aust) Pty Limited, a nutraceutical contract packaging company, provided a total contribution to profits of \$2.0 million, which included a profit on the sale of \$1.7 million.

The investment in CleanSpace safety product manufacturer, PAFtec Pty Limited, continues to execute on its growth strategy, with expansion of its markets from Australia to include Europe, North America and developing Asian markets.

CVC made a number of smaller investments into earlier stage companies with a view to longer term value creation. CVC continues to seek investment opportunities in private companies, and expects that investment conditions may present more opportunities in the next 12 – 18 months.

Listed Equities

The listed equities portfolio contributed \$9.1 million to comprehensive income (31 December 2016: \$11.0 million), which includes a profit on investments of \$6.5 million and receipt of dividends of \$2.6 million. The portfolio includes a diverse range of holdings, from short term positions to long held cornerstone positions both in Australia and internationally.

CVC creates significant value through its active management of large strategic listed equity investments that it identifies as undervalued, counter-cyclical or underperforming.

During the period contributions were generated from Probiotec Limited (ASX: PBP) following the sale of South Pack Laboratories (Aust) Pty Limited, Telix Pharmaceuticals Limited (ASX: TLX), AuMake International Limited (ASX: AU8), along with a number of other investments.

Funds Management

This segment contributed a loss of \$0.7 million (31 December 2016: profit of \$0.4 million) which was due to the sale of CVC's investment in Concise Asset Management Limited

Eildon Capital completed a capital raising on 17 January 2018 raising \$16.6 million at \$1.05 per share giving it a market capitalisation of approximately \$50.0 million. The capital raising provides Eildon Capital with additional funds to deploy into further investment opportunities, and will contribute to the future performance of the funds management segment.

The Add+Venture investment platform allows for investors to gain specific exposure to CVC's successful early stage investment strategy and enables CVC to participate in a larger number of early stage opportunities. The added benefits include providing access to generous tax incentives for investors and allowing for the partial recoupment of management costs.

The litigation funds management division is being scaled with the objective of making it available to external investors. A new commercial debt investment strategy is being incubated that provides lending opportunities alongside, and in addition to, private equity investments leveraging external managers including Aus Finance Group and Bigstone.

The objective is to follow the successful public offering of Eildon Capital with further opportunities for investors to gain access and exposure to the individual successful investment strategies that comprise the diversified investment portfolio of CVC. Likely future investment vehicles / opportunities to be offered by CVC funds management will include:

• Small / Mid-Cap Listed Investment Vehicles;
• Direct Real Estate Investment vehicles;
• Private debt;
• Litigation fund;
• Alternative Investments.

Growth in funds management activities has been a significant contributor to an increase in the quality and consistency of deal flow available to CVC and also provides opportunities to develop meaningful recurrent income streams.

OUTLOOK AND GROWTH

CVC generates its core earnings base from a combination of lending, equity investment and property development activities. CVC continues to grow its recurrent earnings, while at the same time enhancing the earnings with realisations of investments.

Given the nature of investment activities of CVC, it is difficult to reliably predict optimal timing for capital profits from investment realisations, and thereby meaningfully forecast profits from other investment activities. The 2018 financial year will be dictated by the timing of realisations of major projects and investments which cannot be reliably forecast but the underlying core investment strategies remain targeted to deliver annual returns of greater than 15%, whilst investment activities particularly in the property segment are expected to further contribute to meaningful uplift in underlying NTA growth.

The success of CVC lies in realising latent underlying value whilst structuring investments with capital protection. We are conscious of the cyclical nature that markets can play in the outcome of CVC's investments – and in particular the opportunities these present.

The successful listing of Eildon Capital Limited and strong support for the follow-on capital raising is proof of concept for CVC to provide investors with the ability to participate directly in the core asset strategies of the group. This will see CVC significantly grow its funds management investment strategy, continuing to grow its recurrent income, supplementing the income generated from its other investment strategies.

The Board of CVC believe the company is well placed to execute on a number of key strategies across the various sectors of the business.

Market conditions currently being experienced in a number of industries and segments are supportive of solid investment returns, and the Board believes CVC is well positioned to capitalise on these conditions.

With substantial cash holdings and a portfolio of investments that are forecast to result in short, medium and long term realisations, CVC is well positioned to deliver both growing annual profitability and dividends for shareholders.

CAPITAL MANAGEMENT AND DIVIDEND POLICY

The Board is committed to maintaining an appropriate balance between dividends and capital deployment to deliver longer term shareholder performance. It is also focused on passing on successful growth in annual profitability to shareholders in the form of higher dividends. This has been evident by the increasing interim and final dividends historically paid.

The chart below provides an illustration of the growth in dividends paid to shareholders since 2010.

The Board is committed to maintaining the payment of dividends to shareholders that is in line with the underlying profitability of the company. Today, an interim fully franked dividend of 7 cents per share was declared which will be paid to shareholders on 7 March 2018 representing a 40% growth on the 5 cents per share paid in the 2017 half year. The Board anticipates that future dividends will continue to be franked to 100% subject to available franking credits.

CVC has periodically purchased shares under its buy back scheme, dependant on price. The buy back scheme will be utilised to enable a better alignment of assets with recurrent earnings and is accretive to shareholder value.

CONCLUDING COMMENTS

CVC's profit before tax of \$25.5 million for the six months ended 31 December 2017 reflects improved recurrent earnings, enhanced scale and greater investment depth. Subject to market vagaries, it is CVC's core objective to build on this platform to continue to deliver total annualised shareholder returns in excess of 15% over the medium term.

ADH Beard Director 21 February 2018

Appendix 4D

Half‐Yearly Report Results for announcement to the market

		CVC Limited
ABN Half‐Year ended				Previous Half‐Year ended
	('Reporting Period')				('Corresponding period')
34 002 700 361	31 December 2017				31 December 2016
Results
Income from continuing operations		up	30.7%	to	31,428,070
Profit before tax from continuing operations		up	55.8%	to	25,508,883
Profit after tax attributable to members		up	7.7%	to	16,619,869
Net profit attributable to members		up	7.7%	to	16,619,869

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

Dividends (distributions)

	Amount per security	Franked amount per security
Interim dividend	7.0 cents	7.0 cents
Prior year Special dividend	10.0 cents	10.0 cents
Prior year interim dividend	5.0 cents	5.0 cents
Prior year final dividend	8.0 cents	8.0 cents

Information on dividends:

On 21 February 2018 the directors resolved to pay an interim dividend of 7 cents per share, fully franked, payable on 7 March 2018.

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	26 February 2018
Record date for determining entitlements to the dividend	27 February 2018
Payment Date	7 March 2018

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 2017

ACN 002 700 361

COMPANY PARTICULARS

CVC LIMITED

ACN 002 700 361

DIRECTORS

John Read Alexander Beard Ian Campbell

SECRETARIES

Alexander Beard John Hunter

MANAGEMENT TEAM

Alexander Beard Mark Avery Michael Bower Andrew Harris Jufri Abidin David Gasan Jonathon Feil

PRINCIPAL AND REGISTERED OFFICE

Suite 3703, Level 37 1 Macquarie Place SYDNEY NSW 2000 AUSTRALIA Telephone: (02) 9087 8000 Facsimile: (02) 9087 8088

SHARE REGISTRY

Next Registries Level 16, 1 Market Street SYDNEY NSW 2000 AUSTRALIA Telephone: (02) 9276 1700 Facsimile: (02) 9251 7138

AUDITORS

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

BANKERS

Westpac Banking Corporation Limited Bank of Western Australia Limited Leveraged Equities Limited

STOCK EXCHANGE LISTING

Australian Securities Exchange Limited

John Hunter Elliott Kaplan Christian Jensen William (Bill) Highland Charles Williams Tom Kellaway William Chen

CVC LIMITED & CONTROLLED ENTITIES CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE FOR THE HALF‐YEAR ENDED 31 DECEMBER 2017

	Notes
		31 Dec 2017	31 Dec 2016
		\$	\$
INCOME
Profit from development properties	24	13,930,661	335,467
Interest income		4,022,457	5,922,667
Net income from equity investments	24	11,632,111	15,515,485
Fee income		887,271	1,174,984
Other income		304,256	898,771
Total income		──────── 30,776,756 ────────	──────── 23,847,374 ────────
Equity accounted profits
Share of net profit of associates	7	651,314	197,430
EXPENSES
Finance costs		707,108	2,255,586
Impairment on loans	24	118,662	1,877,166
Management fees		1,079,376	180,026
Other overhead and administration fees	24	4,014,041 ────────	3,360,056 ────────
Total expenses		5,919,187	7,672,834
Profit before related income tax expense		──────── 25,508,883	──────── 16,371,970
Income tax expense	2	5,540,039 ────────	2,903,341 ────────
Net profit from continuing operations for the half‐year		19,968,844	13,468,629
Net profit from discontinued operations for the half‐year	22	‐ ────────	3,564,711 ────────
Net profit for the half‐year		19,968,844	17,033,340
Net profit attributable to:
Members of the parent entity	18	16,619,869	15,434,729
Non‐controlling interest		3,348,975	1,598,611
Net profit for the half‐year		──────── 19,968,844	──────── 17,033,340
		════════	════════

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 2017

		31 Dec 2017 \$	31 Dec 2016 \$
Profit for the half‐year		19,968,844 ────────	17,033,340 ────────
Other comprehensive income
Items that may be reclassified to profit or loss
‐ "Available‐for‐sale" investments:
‐ (Increase)/decrease in fair values recognised in other reserves		(399,762)	9,067,351
‐ Amounts transferred from other reserves to the income
statement on sale		(619,757)	(1,613,952)
Income tax on items taken directly to or from equity		488,716 ────────	(5,635,710) ────────
Other comprehensive income for the half‐year, net of tax		(530,803)	1,817,689
Total comprehensive income for the half‐year		──────── 19,438,041	──────── 18,851,029
Total comprehensive income for the half‐year is attributable to:		════════	════════
Members of the parent entity		16,088,889	17,271,287
Non‐controlling interest		3,349,152	1,579,742
		────────	────────
		19,438,041 ════════	18,851,029 ════════
Total comprehensive income for the period attributable to
members of the parent entity arises from:
Continuing operations		19,438,041	15,286,318
Discontinued operation		‐	3,564,711
		──────── 19,438,041 ════════	──────── 18,851,029 ════════
Basic and diluted earnings per share for profit from continuing operations attributable to the members of the parent entity (cents)	4	13.90	10.44
Basic and diluted earnings per share for profit attributable to the
members of the parent entity (cents)	4	13.90	12.91
		════════	════════

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 2017

	Notes	31 Dec 2017	30 Jun 2017
		\$	\$
CURRENT ASSETS
Cash and cash equivalents	5	56,369,801	41,746,716
Loans and other receivables	6	27,743,713	29,676,038
Financial assets ‐ "at fair value through profit or loss"	9	34,838,340	15,309,160
Inventories	12	3,820,069	6,621,201
Other assets		418,977 ────────	186,764 ─────────
Total current assets		123,190,900 ────────	93,539,879 ─────────
NON‐CURRENT ASSETS
Loans and other receivables	6	21,891,371	21,267,139
Financial assets ‐ "available‐for‐sale"	8	39,784,491	56,402,582
Financial assets – "at fair value through profit or loss"	9	7,213,340	5,034,187
Inventories	12	24,382,956	15,758,428
Investments accounted for using the equity method	7	25,373,349	33,839,849
Property, plant and equipment	11	372,022	397,403
Investment properties	10	1,350,000	8,578,697
Intangible assets	13	5,968	‐
Deferred tax assets		4,196,770 ────────	5,554,585 ─────────
Total non‐current assets		124,570,267	146,832,870
TOTAL ASSETS		──────── 247,761,167 ────────	───────── 240,372,749 ─────────
CURRENT LIABILITIES
Trade and other payables	14	6,696,776	8,151,671
Interest bearing loans and borrowings	15	13,348,212	12,679,439
Provisions	16	867,798	773,334
Current tax liabilities		4,790,098 ────────	4,217,590 ─────────
Total current liabilities		25,702,884 ────────	25,822,034 ─────────
NON‐CURRENT LIABILITIES
Interest bearing loans and borrowings	15	9,660,552	10,123,967
Provisions	16	21,005	18,825
Deferred tax liabilities		4,058,982 ────────	5,972,736 ─────────
Total non‐current liabilities		13,740,539 ────────	16,115,528 ─────────
TOTAL LIABILITIES		39,443,423 ────────	41,937,562 ─────────
NET ASSETS		208,317,744	198,435,187
EQUITY		════════	═════════
Contributed equity	17	103,646,848	103,646,848
Retained profits	18	87,688,497	80,631,251
Other reserves	19	13,339,328 ────────	13,870,308 ─────────
Parent entity interest		204,674,673	198,148,407
Non‐controlling interest		3,643,071 ────────	286,780 ─────────
TOTAL EQUITY		208,317,744 ════════	198,435,187 ════════

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

CVC LIMITED & CONTROLLED ENTITIES CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF‐YEAR ENDED31 DECEMBER 2017

	ibu ted Co ntr	tai ned Re	As set	Em loy p ee	eig xch For n e ang e	Ow f th ner o s e	rol lin No ont n‐c g
	ity equ \$	nin ear gs \$	alu ati rev on \$	ity ben efi t equ \$	nsl ati tra on \$	ent par \$	int st ere \$	To tal \$
At 1 J uly 201 7	103 646 848 , , ═══ ═══ ═══ ══	80, 631 251 , ═══ ═══ ═══ ══	13, 772 192 , ═══ ═══ ═══ ══	‐ ═══ ═══ ═══ ══	98, 116 ═══ ═══ ═══ ══	198 148 407 , , ═══ ═══ ═══ ══	286 780 , ═══ ═══ ═══ ══	198 435 187 , , ═══ ═══ ═══ ══
fit fo th hal f‐y Pro r e ear	‐	16, 619 869 ,	‐	‐	‐	16, 619 869 ,	3, 348 975 ,	19, 968 844 ,
Oth reh ive inc er co ens om e mp	‐ ─── ─── ─── ──	‐ ─── ─── ─── ──	(42 524 ) 5, ─── ─── ─── ──	‐ ─── ─── ─── ──	(10 456 ) 5, ─── ─── ─── ──	(53 ) 0, 980 ─── ─── ─── ──	177 ─── ─── ─── ──	(53 ) 0, 803 ─── ─── ─── ──
To tal reh ive inc for the hal f‐y co ens om e ear mp	‐ ─── ─── ─── ──	16, 619 869 , ─── ─── ─── ──	(42 524 ) 5, ─── ─── ─── ──	‐ ─── ─── ─── ──	(10 456 ) 5, ─── ─── ─── ──	16, 088 889 , ─── ─── ─── ──	349 152 3, , ─── ─── ─── ──	19, 438 041 , ─── ─── ─── ──
ith har eho lde Tra ctio nsa ns s rs: w
Dis sal of i lled t in itie nte tro ent po res con s Div ide nd aid p	‐ ‐	‐ (9, 562 623 ) ,	‐ ‐	‐ ‐	‐ ‐	‐ (9, 562 623 ) ,	2, 200 4, 939	2, 200 (9, 557 684 ) ,
mb At 31 D er 2 017 ece	─── ─── ─── ── 103 646 848	─── ─── ─── ── 87, 688 497	─── ─── ─── ── 13, 346 668	─── ─── ─── ── ‐	─── ─── ─── ── (7, ) 340	─── ─── ─── ── 204 674 673	─── ─── ─── ── 3, 643 071	─── ─── ─── ── 208 317 744
	, , ═══ ═══ ═══ ══	, ═══ ═══ ═══ ══	, ═══ ═══ ═══ ══	═══ ═══ ═══ ══	═══ ═══ ═══ ══	, , ═══ ═══ ═══ ══	, ═══ ═══ ═══ ══	, , ═══ ═══ ═══ ══
At uly 1 J 201 6	103 646 848 , , ═══ ═══ ═══ ══	72, 766 639 , ═══ ═══ ═══ ══	19, 103 188 , ═══ ═══ ═══ ══	5, 367 223 , ═══ ═══ ═══ ══	323 857 , ═══ ═══ ═══ ══	201 207 755 , , ═══ ═══ ═══ ══	12, 311 226 , ═══ ═══ ═══ ══	213 518 981 , , ═══ ═══ ═══ ══
fit fo f‐y Pro th hal e ear r	‐	15, 434 729 ,	‐	‐	‐	15, 434 729 ,	1, 598 611 ,	17, 033 340 ,
Oth reh ive inc er co mp ens om e	‐	‐	1, 825 781 ,	‐	10, 777	1, 836 558 ,	( 18, 869 )	1, 817 689 ,
tal reh ive inc for the hal f‐y To co mp ens om e ear	─── ─── ─── ── ‐ ─── ─── ─── ──	─── ─── ─── ── 15, 434 729 , ─── ─── ───	─── ─── ─── ── 1, 825 781 , ─── ─── ───	─── ─── ─── ── ‐ ─── ─── ───	─── ─── ─── ── 10, 777 ─── ─── ───	─── ─── ─── ── 17, 271 287 , ─── ─── ───	─── ─── ─── ── 1, 579 742 , ─── ─── ───	─── ─── ─── ── 18, 851 029 , ─── ─── ───
Tra ith har eho lde ctio nsa ns w s rs:		──	──	──	──	──	──	──
Ac of i lled isit ion t in itie nte tro ent qu res con s	‐	‐	1, 264	‐	‐	1, 264	( 19, 624 )	( 18, 360 )
sal of i lled Dis t in itie nte tro ent po res con s	‐	‐	( ) 933 779 ,	‐	‐	( ) 933 779 ,	( ) 2, 386 226 ,	( ) 3, 320 005 ,
Ret f ca ital urn o p	‐	‐	‐	‐	‐	‐	( 500 000 ) ,	( 500 000 ) ,
ide nd aid Div p	‐	( 17, 929 918 ) ,	‐	‐	‐	( 17, 929 918 ) ,	( 289 779 ) ,	( 18, 219 697 ) ,
Tra nsf f sh b d sal f as iate ent er o are ase aym on e o soc p nsf d sal bsi dia	‐	208 729 5, ,	‐	( 4, 947 284 ) ,	‐	261 445 , 127	126 965 ,	388 410 ,
f sh b f su Tra ent er o are ase p aym on e o ry	‐ ─── ─── ─── ──	547 800 , ─── ─── ─── ──	‐ ─── ─── ─── ──	( 419 939 ) , ─── ─── ─── ──	‐ ─── ─── ─── ──	861 , ─── ─── ─── ──	90, 849 ─── ─── ─── ──	218 710 , ─── ─── ─── ──
mb At 31 D er 2 016 ece	103 646 848 , , ═══ ═══ ═══ ══	76, 027 979 , ═══ ═══ ═══ ══	19, 996 454 , ═══ ═══ ═══ ══	‐ ═══ ═══ ═══ ══	334 634 , ═══ ═══ ═══ ══	200 005 915 , , ═══ ═══ ═══ ══	10, 913 153 , ═══ ═══ ═══ ══	210 919 068 , , ═══ ═══ ═══ ══

Theabove 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 2017

	Notes
		31 Dec 2017	31 Dec 2016
		\$	\$
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts in the course of operations		1,665,668	38,007,394
Cash payments in the course of operations		(7,105,417)	(49,511,000)
Net cash receipts for land held for resale		6,110,306	1,097,773
Proceeds on disposal of equity investments		41,908,797	43,698,073
Payments for equity investments		(33,651,402)	(20,309,033)
Proceeds on construction contract		1,006,270	3,837,562
Loans provided		(6,960,845)	(34,172,820)
Loans repaid		12,645,975	44,175,619
Interest received		8,366,541	5,422,075
Interest paid		(117,950)	(470,026)
Dividends received		5,985,962	788,412
Income taxes paid		(4,884,912)	(1,786,340)
Net cash flows provided by operating activities	5(b)	──────── 24,968,993 ────────	──────── 30,777,689 ────────
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for acquisition and development of investment properties		(421,265)	(21,878,053)
Payments for property, plant and equipment		(16,684)	(144,531)
Acquisition of intangibles		(6,144)	(7,738)
Disposal of subsidiaries, net of cash received		‐ ────────	(482,333) ────────
Net cash flows used in investing activities		(444,093) ────────	(22,512,655) ────────
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of borrowings		(3,855,547)	(11,944,684)
Proceeds from borrowings		3,511,416	33,696,137
Dividends paid		(9,557,684)	(18,219,697)
Proceeds from issues of shares Payments for share buybacks		‐ ‐	3,615,539 (913,901)
		────────	────────
Net cash flows (used in)/provided by financing activities		(9,901,815) ────────	6,233,394 ────────
Net increase in cash held		14,623,085	14,498,428
Foreign exchange loss on cash		‐	(20,381)
Cash at the beginning of the half‐year		41,746,716 ────────	21,673,050 ────────
CASH AT THE END OF THE HALF‐YEAR	5(a)	56,369,801	36,151,097
		════════	════════

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 2017 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.

Certain comparatives balances have been changed in order to achieve consistency and comparability with the current period's amounts.

	31 Dec 2017	31 Dec 2016
	\$	\$
NOTE 2: INCOME TAX EXPENSE
Profit from continuing operations before income tax expense	25,508,883	16,371,970
Profit from discontinued operation before income tax expense	‐	1,297,319
Accounting profit before income tax	──────── 25,508,883	──────── 17,669,289
Income tax expense:	────────	────────
Prima facie income tax expense at 30% on profit before income tax	7,652,665	5,300,787
Increase in income tax expense due to:
Sundry items	137,541	164,246
Share based payment	‐	388,410
Tax losses not recognised	‐	281,579
Tax losses recouped	‐	748,298
Inter‐company transactions non‐deductible	‐	1,936,653
Decrease in income tax expense due to:
Franked dividends received	(677,343)	(288,168)
Trust profit not assessable	(921,717)	(63,032)
Effect of lower tax rate in New Zealand (28%)	‐	(14,525)
Tax losses recouped	(14,211)	‐
Deferred tax balances not recognised	(617,246)	(508,653)
Recognised deferred tax balances	‐	(7,282,295)
	──────── 5,559,689	──────── 663,300
Adjustment in respect of current income tax of previous years	(19,650)	(27,351)
Income tax expense for the half‐year	──────── 5,540,039	──────── 635,949
Income tax expense/(benefit) is attributable to:	════════	════════
Profit from continuing operations	5,540,039	2,903,341
Profit from discontinued operation	‐	(2,267,392)
Aggregate income tax expense	──────── 5,540,039	──────── 635,949
	════════	════════

NOTE 3: DIVIDENDS

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

CVC paid a final dividend of 8 cents per share on 6 September 2017 in respect of the year ended 30 June 2017.

On 21 February 2018, CVC declared an interim dividend of 7 cents per share, fully franked, to be paid on 7 March 2018 to shareholders registered on 27 February 2018.

	31 Dec 2017	30 Jun 2017
Dividend franking account
Franking credits available to shareholders of CVC Limited for subsequent
financial years	12,014,859	9,713,337
	════════	════════

The franking account is stated on a tax paid basis. The balance comprises the franking account at period‐end adjusted for:

• (a) franking credits that will arise from the payment of the amount of the provision for income tax
• (b) franking debits that will arise from the refund of overpaid tax instalments paid

(c) franking debits that will arise from the payment of dividends recognised as a liability at the reporting date

• (d) franking credits that will arise from the receipt of dividends recognised as receivables at the reporting date
• (e) franking credits that the entity may be prevented from distributing in subsequent years.

The ability to utilise the franking credits is dependent upon there being sufficient available profits to declare dividends.

	31 Dec 2017	31 Dec 2016
NOTE 4: EARNINGS PER SHARE
Basic and diluted earnings per share	Cents	Cents
From continuing operations attributable to the members of the parent entity From discontinued operations attributable to the members of the parent	13.90	10.44
entity	‐	2.47
Total basic and diluted earnings per share attributable to the members of the	────────	────────
parent entity	13.90 ════════	12.91 ════════
	\$	\$
Reconciliation of earnings used in calculation of earnings per share:
Profit after income tax from continuing operations	19,968,844	13,468,629
Less: non‐controlling interest in continuing operations	(3,348,975) ────────	(984,497) ────────
Net profit from continuing operations attributable to members of the parent
entity	16,619,869 ────────	12,484,132 ────────
Profit after income tax from discontinued operation	‐	3,564,711
Less: non‐controlling interest in discontinued operation	‐	(614,114)
Net profit from discontinued operation attributable to members of the parent	────────	────────
entity	‐ ────────	2,950,597 ────────
Net profit attributable to members of the parent entity	16,619,869 ════════	15,434,729 ════════
	Number of Shares
Weighted average number of ordinary shares – Basic and Diluted	119,532,788	119,532,788
Number of shares on issue at the end of the half‐year	119,532,788	119,532,788

════════ ════════

NOTE 5: NOTES TO THE CASH FLOW STATEMENT

(a) Reconciliation of Cash and Cash Equivalents

For the purposes of the statement of cash flows, 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 2017	30 Jun 2017
	\$	\$
Cash on deposit	55,942,036	41,318,951
Funds held by bank	427,765	427,765
	───────	────────
Cash and cash equivalents	56,369,801	41,746,716
	═══════	════════

(b) Reconciliation of profit after income tax to the net cash provided by operating activities:

	31 Dec 2017	31 Dec 2016
	\$	\$
Profit after income tax	19,968,844	17,033,340
Add/(less) non‐cash items:
Share of equity accounted profits	(651,314)	(197,430)
Depreciation and amortisation of plant and equipment	42,241	167,983
Change in fair value of investment property	63,178	‐
Non‐cash employee benefits expense‐share based payments	‐	218,709
Non‐cash finance cost	39,669	411,778
Impairment expenses on financial instruments	991,041	2,884,117
Impairment recoveries	(3,665,681)	(6,122,426)
Net profit on disposal of investments	(6,040,276)	(10,241,437)
Interest income not received	(147,303)	(502,853)
Interest expense not paid	4,417,334	1,002,117
Dividend income	3,336,370	323,193
Foreign exchange profit on cash	‐	20,381
Movement in income tax provision	573,408	1,568,842
Movement in deferred tax assets and liabilities	(67,223)	(2,719,234)
Changes in assets and liabilities:
Inventories	(318,767)	(2,178,933)
Equity investments	8,271,239	23,389,040
Loans	5,685,129	10,002,799
Trade and other receivables	(8,633,063)	(10,327,799)
Trade and other payables	1,239,731	6,047,376
Provisions	96,644	58,467
Other assets	(232,208) ────────	(60,341) ────────
Net cash used in operating activities	24,968,993 ════════	30,777,689 ════════
NOTE 6: LOANS AND OTHER RECEIVABLES
	31 Dec 2017	30 Jun 2017
	\$	\$
Current
Trade receivables	10,339,091	841,041
Retention amounts due from customers for contract work	328,473	‐
Other receivables and prepayments	791,587	2,563,710
Loans to associated entities	5,256,416	7,378,266
Loans to other corporations	11,028,146 ────────	18,893,021 ───────

27,743,713 29,676,038 ════════ ════════

31 Dec 2017	30 Jun 2017
\$	\$

21,891,371 21,267,139 ════════ ════════

════════ ════════

NOTE 6: LOANS AND OTHER RECEIVABLES (CONT.)

Current (cont.)

(a) Construction contract

On the Statement of Financial Position, CVC reports the net contract position as an asset. A contract represents an asset where costs incurred plus recognised profits (less recognised losses) exceed progress billings. The net financial position for ongoing construction contract relates to:

The aggregate costs incurred and recognised profits (less recognised losses) to

date	2,160,875	‐
Less: Progress billings	(1,832,402)	‐
	────────	────────
Net financial position for ongoing contracts	328,473	‐
	════════	════════

Measurement of construction contract revenue and expense

CVC uses the 'percentage‐of‐completion method' to determine the appropriate amount to recognise in a given period. The stage of completion is measured by reference to the contract costs incurred up to the end of the reporting period as a percentage of total estimated costs for each contract.

Non‐Current

396,694	‐
8,606,195	14,462,408
(1,829,206)	(1,829,206)
14,717,688	8,633,937
────────	───────

NOTE 7: INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Equity accounted interests in joint ventures Equity accounted interests in listed associated companies Equity accounted shares in other associated companies	3,008,200 12,981,149 9,384,000 ────────	3,244,407 12,477,997 18,117,445 ───────
	25,373,349	33,839,849

NOTE 7: INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (CONT.)

Details of investments accounted for using the equity method are as follows:

	% Ownership at end of half‐year		Carrying value		Contribution to net profit/(loss)
	31 Dec 17	30 Jun 17	31 Dec 17	30 Jun 17	31 Dec 17	31 Dec 16
Associated entities			\$	\$	\$	\$
79 Logan Road Pty Ltd	35.0	35.0	35	35	‐	‐
79 Logan Road Trust	35.0	35.0	3,289,383	3,360,092	38,140	‐
Australian Invoice Finance Ltd	47.6	‐	1,565,107	‐	(101,560)	‐
BioPower Systems Pty Limited	25.1	25.1	‐	‐	‐	‐
Concise Asset Management Limited	‐	42.0	‐	1,016,683	(48,140)	180,338
Donnybrook JV Pty Ltd	49.0	49.0	3,142,470	8,098,961	(56,491)	(87,260)
Eildon Capital Limited (a)	33.9	39.3	12,981,149	12,477,997	504,486	‐
Eildon Funds Management Limited (a)	40.0	40.0	300,585	73,013	227,572	(3,779)
JAK Investment Group Pty Ltd	40.0	40.0	177,822	182,330	(4,508)	(32,062)
Kingsgrove Property LMC Pty Ltd (b)	50.0	50.0	‐	‐	‐	‐
LAC Unit Trust	33.3	33.3	660,316	659,010	1,306	‐
LAC JV Pty Ltd	33.3	33.3	100	100	‐	‐
Mooloolaba Wharf Holding Company Pty
Limited (b)	50.0	50.0	50	50	‐	‐
South Pack Laboratories (Aust) Pty Ltd	‐	48.0	‐	4,483,171	326,699	219,870
The Kingsgrove (Vanessa Road) Unit Trust	25.0	25.0		‐		‐
Turrella Property Unit Trust	32.5	50.0	248,030	244,000	(20)	‐
Turrella Property Pty Ltd	32.5	50.0	102	‐	37	‐
Urban Properties Pty Limited	33.3	33.3	‐	‐	‐	‐
Urban Properties Cairns Pty Limited	20.0	20.0	‐	‐	‐	‐
Urban Properties Centenary Pty Limited	20.0	20.0	‐	‐	‐	‐
Joint Ventures
MAKE EBRB Dev Nominee Pty Ltd (b)	50.0	50.0	3,008,200	3,244,407	(236,207)	(79,677)
MAKE 246 EBRB Pty Ltd (b)	50.0	50.0	‐ ───────	‐ ───────	‐ ───────	‐ ───────
			25,373,349	33,839,849	651,314	197,430
			═══════	═══════	═══════	═══════

(a) Eildon Capital Limited and Eildon Funds Management Limited ceased to be controlled entities and became associates of CVC during the 2017 year.

(b) Kingsgrove Property LMC Pty Ltd, MAKE EBRB Dev Nominee Pty Ltd, MAKE 246 EBRB Pty Ltd and Mooloolaba Wharf Holding Company Pty Limited are not considered to be controlled entities of CVC as management of each entity is controlled by the holders of the remaining 50%.

	31 Dec 2017	30 Jun 2017
	\$	\$
NOTE 8: FINANCIAL ASSETS ‐ "AVAILABLE‐FOR‐SALE"
Non‐Current
Shares in listed corporations – at market value	30,943,626	46,873,395
Other investments ‐ at cost	3,239,995	3,388,875
Impairment of other investments – at cost	(421,000)	(421,000)
Public unlisted investments – at market value	‐	1,328,968
Other investments – at market value	6,021,870	5,232,344
	──────── 39,784,491	─────── 56,402,582

════════ ════════

	31 Dec 2017	30 Jun 2017
	\$	\$
NOTE 9: FINANCIAL ASSETS ‐ "AT FAIR VALUE THROUGH PROFIT OR LOSS"
Current
Shares in listed corporations – at market value	34,838,340	15,309,160
Non‐current	════════	════════
Shares in unlisted corporations – at market value	7,213,340	5,034,187
	════════	════════
NOTE 10: INVESTMENT PROPERTIES
Investment properties (note 23)
Non‐current	1,350,000	8,578,697
	════════	════════
Reconciliation:
Investment properties at beginning of the half‐year	8,578,697	13,159,852
Additions – acquisition of properties	‐	20,294,951
Additions – capital expenditure	281,711	1,353,626
Reclassification to inventory	(7,447,230)	(4,330,691)
Disposal of properties arising from disposal of controlled entity	‐	(20,967,926)
Impairment	(63,178) ────────	(931,115) ───────
Total investment properties at the end of the half‐year	1,350,000 ════════	8,578,697 ════════
NOTE 11: PROPERTY, PLANT AND EQUIPMENT
Total property, plant and equipment	372,022	397,403
	════════	════════
Plant and equipment:
At amortised cost	287,761	279,175
Accumulated depreciation	(122,836) ────────	(95,360) ───────
Total plant and equipment	164,925 ════════	183,815 ════════
Leasehold improvements:
At cost	208,942	200,844
Accumulated depreciation	(28,845)	(14,256)
Total properties	──────── 180,097	─────── 186,588
	════════	════════
Properties:
At amortised cost	27,000	27,000

════════ ════════

	31 Dec 2017	30 Jun 2017
	\$	\$
NOTE 11: PROPERTY, PLANT AND EQUIPMENT (CONT.)
Reconciliation:
Plant and equipment:
Carrying amount at the beginning of the half‐year	183,815	494,175
Additions	8,586	76,812
Depreciation	(27,476)	(119,646)
Disposal through sale of controlled entity	-	(267,526) ───────
Carrying amount at the end of the half‐year	──────── 164,925	183,815
Leasehold improvements	════════	════════
Carrying amount at the beginning of the year	186,588	59,982
Additions	8,098	200,844
Depreciation	(14,589)	(74,238)
Carrying amount at the end of the half‐year	──────── 180,097 ════════	─────── 186,588 ════════
Properties:
Carrying amount at the beginning and end of the half‐year	27,000 ════════	27,000 ════════
NOTE 12: INVENTORIES
Current
Land and development held for resale	3,820,069	6,621,201
	════════	════════
Non‐current Land and development held for resale	24,382,956	15,758,428
	════════	════════

Inventories recognised as an expense for the period ended 31 December 2017 include:

• ‐ Discontinued operation of nil (2016: \$32,419,074)
• ‐ Land sales of \$7,867,787 (2016: \$1,780,582)

These expenses have been included in the cost of goods sold in the Statement of Financial Performance.

NOTE 13: INTANGIBLE ASSETS

Intangible assets	5,968	‐
	════════	════════
Reconciliation:
Carrying amount at the beginning of the half‐year	‐	52,435
Additions	6,144	7,738
Amortisation	(176)	(14,915)
Disposal through sale of controlled entity	‐	(45,258)
Carrying amount at the end of the half‐year	──────── 5,968	─────── ‐
	════════	════════

		31 Dec 2017	30 Jun 2017
NOTE 14: TRADE AND OTHER PAYABLES		\$	\$
Current
Trade and other payables		2,271,958	1,126,198
Sundry creditors and accruals		4,424,818 ────────	7,025,473 ───────
		6,696,776	8,151,671
NOTE 15: INTEREST‐BEARING LOANS AND BORROWINGS		════════	════════
Current
Secured loan		13,348,212 ════════	12,679,439 ════════
Non‐current
Unsecured loan from associated entity		9,660,552 ════════	10,123,967 ════════
NOTE 16: PROVISIONS		31 Dec 2017	30 Jun 2017
		\$	\$
Current
Employee entitlements		867,798 ════════	773,334 ════════
Non‐current
Employee entitlements		21,005 ════════	18,825 ════════
	31 Dec 2017		31 Dec 2016
NOTE 17: CONTRIBUTED EQUITY	Number	\$ Number	\$

Issued and paid‐up ordinary share capital Balance at the beginning and end of the half‐year 119,532,788 103,646,848 119,532,788 103,646,848

═══════ ═══════ ═══════ ═══════

31 Dec 2017 \$	31 Dec 2016 \$
	72,766,639
	15,434,729
	(17,929,918)
	5,208,729
‐	547,800
87,688,497	──────── 76,027,979 ════════
	80,631,251 16,619,869 (9,562,623) ‐ ──────── ════════

NOTE 19: OTHER RESERVES

		Employee
	Foreign	Equity	Asset
	Exchange	Benefit	Revaluation
Total	Reserve	Reserve	Reserve
\$	\$	\$	\$
				Half‐year ended 31 December 2017:
13,870,308	98,116	‐	13,772,192	Balance at the beginning of the half‐year
(399,762)	(173,435)	‐	(226,327)	Net unrealised gain on "available‐for‐sale" investments
				Net unrealised loss on "available‐for‐sale" investments – non‐
(177)	‐	‐	(177)	controlling interest
				Realised (gain)/loss on "available‐for‐sale" investments
(619,757)	22,784	‐	(642,541)	reclassified to the income statement
488,716	45,195	‐	443,521	Income tax on items taken directly to or from equity
──────── 13,339,328	──────── (7,340)	──────── ‐	──────── 13,346,668	Balance at the end of the half‐year
════════	════════	════════	════════	Half‐year ended 31 December 2016:
24,794,268	323,857	5,367,223	19,103,188	Balance at the beginning of the half‐year
(5,367,223)	‐	(5,367,223)	‐	Share based payments
9,067,351	76,268	‐	8,991,083	Net unrealised gain on "available‐for‐sale" investments
				Net unrealised loss on "available‐for‐sale" investments – non‐
683	295	‐	388	controlling interest
1,264	‐	‐	1,264	Acquisition of interest in controlled entities
(933,779)	‐	‐	(933,779)	Disposal of interest in controlled entities
				Realised (gain)/loss on "available‐for‐sale" investments
(1,613,952)	75,373	‐	(1,689,325)	reclassified to the income statement
				Realised loss on "available‐for‐sale" investments reclassified
18,186	2,256	‐	15,930	to the income statement – non‐controlling interest
(5,635,710) ────────	(143,415)	‐	(5,492,295)	Income tax on items taken directly to or from equity
	──────── 334,634	──────── ‐	──────── 19,996,454	Balance at the end of the half‐year

	\$	\$
Net assets per share attributable to members of the parent entity	1.71	1.67
Net tangible assets per share attributable to members of the parent entity	1.71	1.67

════════ ════════

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

NOTE 21: SEGMENTREPORTING

The revenues andresults by business segments are as follows:

	Pri Eq ity d te va u an l Ve Ca ita ntu re p	d Inv Lis te est nts me	Pro ert y p	nd Fu s Ma t na em en g	lle d Co ntr o E lim ina tio ns	li da d Co te o ns
Ha l de d 31 De ber 201 7: en cem	\$	\$	\$	\$	\$	\$
f‐ y ear
Re ven ue s:
To l for ble ta ort nts re ven ue rep a seg me	2, 332 814 ,	10, 035 337 ,	17, 633 747 ,	503 708 ,	‐	30, 505 606 ,
Int nt er‐ seg me rev enu e	‐	‐	1, 687 042 ,	6, 665 521 ,	( ) 8, 352 563 ,	‐
Un llo d cat ts: a e a mo un	── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ─	── ── ── ─
Int in st ere com e						271 150 ,
Co li da d te nso eve nu e r						── ── ── ─ 30, 776 756 ,
Eq uit d inc nte y acc ou om e	225 139 ,	504 486 ,	( ) 257 743 ,	179 432 ,	‐	══ ══ ══ ══ ═ 651 314 ,
lts Re su :	══ ══ ══ ══ ═	══ ══ ══ ══ ═	══ ══ ══ ══ ═	══ ══ ══ ══ ═	══ ══ ══ ══ ═	══ ══ ══ ══ ═
l fit for ble To ta ort nts p ro rep a seg me	2, 136 388 ,	10, 035 337 ,	16, 876 588 ,	( ) 578 328 ,	‐	28, 469 985 ,
Sh f p fit f e d uit inv nte est are o ro o q y acc ou ees	225 139 ,	504 486 ,	( ) 257 743 ,	179 432 ,	‐	651 314 ,
	── ── ── ─ 2, 361 527 ,	── ── ── ─ 10, 539 823 ,	── ── ── ─ 16, 618 845 ,	── ── ── ─ ( ) 398 896 ,	── ── ── ─ ‐	── ── ── ─ 29, 121 299 ,
Un llo d cat ts: te e a e a mo un cor p ora xp en ses						── ── ── ─ ( ) 3, 612 416 ,
Co li da d fit be for te e ta nso p ro x						── ── ── ─ 25, 508 883 ,
						══ ══ ══ ══ ═

Segment results are shown before related income tax expense.

NOTE 21: SEGMENT REPORTING(CONT.)

	d Pri Eq ity te va u an l Ve Ca ita ntu re p \$	d Lis te Inv est nts me \$	Pro ert y p \$	nd Fu s Ma t na em en g \$	lle d Co ntr o lim E ina tio ns \$	li da d Co te o ns \$
l f‐ de d ber Ha 31 De 201 6: y ear en cem
Co nti ing tio nu op era ns
Re ven ue s:
l for ble To ta ort nts re ven ue rep a seg me	12, 245 890 ,	4, 111 329 ,	6, 786 580 ,	317 448 ,	‐	23, 461 247 ,
Int nt er‐ seg me rev enu e	‐ ── ── ── ─	‐ ── ── ── ─	1, 308 630 , ── ── ── ─	6, 657 288 , ── ── ── ─	( 7, 965 918 ) , ── ── ── ─	‐ ── ── ── ─
Un llo d cat ts: a e a mo un
Int in st ere com e						365 768 ,
Ot her in com e						20, 359 ── ── ── ─
li da d Co te nso eve nu e r						23, 847 374 , ══ ══ ══ ══ ═
Eq d uit inc nte y acc ou om e	219 870 , ══ ══ ══ ══ ═	‐ ══ ══ ══ ══ ═	( ) 198 999 , ══ ══ ══ ══ ═	176 559 , ══ ══ ══ ══ ═	‐ ══ ══ ══ ══ ═	197 430 , ══ ══ ══ ══ ═
Re lts su :
l fit for ble To ta ort nts ro rep a seg me p	12, 128 403 ,	4, 111 329 ,	2, 567 612 ,	188 100 ,	‐	18, 995 444 ,
Sh f p fit f e d uit inv nte est are o ro o y acc ou ees q	219 870 , ── ── ── ─	‐ ── ── ──	( 198 999 ) , ── ── ──	176 559 , ── ── ──	‐ ── ── ──	197 430 , ── ── ──
	12, 348 273 ,	─ 4, 111 329 ,	─ 2, 368 613 ,	─ 364 659 ,	─ ‐	─ 19, 192 874 ,
Un llo d cat ts: te e a e a mo un cor ora en ses p xp						── ── ── ─ ( 2, 820 904 ) ,
Co li da d fit be for te e ta nso p ro x						── ── ── ─ 16, 371 970 , ══ ══ ══ ══ ═
d Di nti tio sco nu e o era p ns
Re ven ue						42, 970 321 ,
fit be for Ne t e t p ro ax						── ── ── ─ 1, 319 297 ,

Segment results are shown before related income tax expense.

NOTE 22: DISCONTINUED OPERATION

22.1 Description

On 22 December 2016 CVC sold 83% of its holding in Cellnet Group Limited for a consideration of \$7,057,568.

On 16 November 2016 CVC sold 60% of its holding in Eildon Funds Management Limited for a consideration of \$420,000.

22.2 Financial performance and cash flow information

The financial performance and cash flow information presented are for the half –year periods ended 31 December 2016.

	31 Dec 2016
	\$
Revenue	42,970,321
Expenses	(41,513,321)
Profit before income tax	─────── 1,457,000
Income tax expense	(13,756)
Profit after income tax of discontinued operation	─────── 1,443,244
Losses on sale of the subsidiaries before income tax	(159,681)
Income tax benefit	2,281,148
Gain on sale of the subsidiary after income tax	─────── 2,121,467
Profit from discontinued operation	─────── 3,564,711
	═══════
Attributable to
Shareholders	2,950,597
Non‐controlling interest	614,114 ───────
	3,564,711 ═══════
Net cash outflow from operating activities	(7,802,799)
Net cash outflow from investing activities (includes a net
outflow of \$482,333 from the sale of the subsidiary)	(521,333)
Net cash inflow from financing activities	7,207,000
Net decrease in cash generated by the subsidiary	─────── (1,117,132)
	═══════

NOTE 22: DISCONTINUED OPERATION (CONT.)

22.3 Details of the sale of the subsidiary

\$
25,471,402
267,526
11,618,096
45,257
849,616 ─────────
38,251,897 ─────────
(14,184,948)
(571,828)
(8,636,092)
───────── (23,392,868)
───────── 392,580
(6,079,339) ─────────
9,172,270 ═════════
7,477,568
1,535,021
(9,172,270)
───────── (159,681)
2,281,148
───────── 2,121,467
═════════

NOTE 23: FAIR VALUE MEASUREMENTS

The fair values of the financial assets and liabilities of CVC are approximately equal to their carrying values. No financial assets or financial liabilities are readily traded on organised markets in standardised form.

Judgements and estimates were made in determining the fair values of the financial instruments and non‐financial assets that are recognised and measured at fair value in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, CVC has classified its financial instruments and non‐financial assets into three levels prescribed under the accounting standards.

Level 1 – the fair value is calculated using quoted prices in active markets.

Level 2 – the fair value is estimated using inputs other than quoted prices included in Level 1 that are observable for the asset, either directly (as prices) or indirectly (derived from prices).

Level 3 – the fair value is estimated using inputs for the asset that are not based on observable market data.

The fair value of the assets and liabilities as well as the methods used to estimate the fair value are summarised in the table below.

(Level 3) \$ \$ \$ \$ At 31 December 2017 Financial assets "Available‐for‐sale" investments Shares in listed corporations – at market value 1,362,179 29,581,447 ‐ 30,943,626 Other investments ‐ at cost ‐ ‐ 2,818,995 2,818,995 Other investments – at market value ‐ ‐ 6,021,870 6,021,870 "Fair value through profit or loss" investments Shares in listed corporations – at market value 13,394,405 21,443,935 ‐ 34,838,340 Other investments – at cost ‐ ‐ 7,213,340 7,213,340 Non‐financial assets Investment properties ‐ ‐ 1,350,000 1,350,000 ───────────── ───────────── ───────────── ───────────── 14,756,584 51,025,382 17,404,205 83,186,171 ═════════════ ═════════════ ═════════════ ═════════════ At 30 June 2017 Financial assets "Available‐for‐sale" investments Shares in listed corporations – at market value 2,515,150 44,358,245 ‐ 46,873,395 Public unlisted investments – at market value ‐ 1,328,968 ‐ 1,328,968 Other investments ‐ ‐ 8,200,219 8,200,219 "Fair value through profit or loss" investments Shares in listed corporations – at market value 12,402,205 2,906,955 ‐ 15,309,160 Other investments ‐ ‐ 5,034,187 5,034,187 Non‐financial assets Investment properties ‐ ‐ 8,578,697 8,578,697 ───────────── ───────────── ───────────── ───────────── 14,917,355 48,594,168 21,813,103 85,324,626 ═════════════ ═════════════ ═════════════ ═════════════ Reconciliation of Level 3 fair value movements: 31 Dec 2017 31 Dec 2016 \$ \$ Opening balance at the beginning of the period 21,813,103 22,594,774		Quoted market price (Level 1)	Valuation technique – market observable inputs (Level 2)	Valuation technique – non market observable inputs	Total
	Purchases		3,131,881	26,053,518
Sales (87,500) (1,228,620)
Losses recognised in other income (a) (312,580) ‐
Gains recognised in other comprehensive income 806,531 426,739
Transfer out of Level 3 to Level 1 (500,000) ‐
Transfer out of Level 3 (b) (7,447,230) ‐ ──────────── ────────────
	Closing balance at the end of the period		17,404,205 ════════════	47,846,411 ════════════

(a) Unrealised losses recognised in profit or loss attributable to assets held at the end of the reporting period 198,411 ‐

(b) The capital cost of the property at 18 John Oxley Drive Port Macquarie New South Wales was reclassified from investment properties to inventories as CVC made a decision to develop the site.

NOTE 23: FAIRVALUE MEASUREMENTS (CONT.)

The fair values of Level 2 financial instruments are determined using available prices where trading does not occur in an active market. The quantitative information about the significant unobservable inputs used inlevel 3 fair value measurements are as follows:

	ir Fa a v	lue
	1 De 17 3 20 c	J 17 30 20 un e	hte d a W ig e ve rag e
			Un bs b le o erv a
De ip ion t scr	\$	\$	inp uts	3 1 De 20 17 c	30 J 20 17 un	lat h f u bs b le fa lue Re ion ip inp ir v uts to s o no erv a a
d Le ies ert ase p rop	1, 350 000 ,	1, 35 0, 0 0 0	Ca lis ita ion at rat p e	10 % .47	10 16 %	he hig he he lis he low he fa lue T ita ion ir v r t at rat t t cap e, er a
			Le iry ase e xp	0. 8 3 y ear s	1.3 3 y ear s	he lon he lea he hig he he fa lue T ir v t ter t r t er se a g m,
			Oc cu p an cy	10 0 %	10 0 %	T he hig he he he hig he he fa lue ir v r t rat t r t oc cu p an cy e, a
Inv est nt me	‐	7, 228 6 9 7	Ca ita lis ion at rat e		6.5 %	he hig he he lis let f c he T ita ion ion tio r t at rat str t cap e o n c om p o on uc n,
Pr ies ert op		,	p	‐		low he fa lue ir v t er a
	── ── ── ── ──	── ── ── ──
	1, 350 000 ,	8, 78, 6 9 7 5
	══ ══ ══ ══ ══	══ ══ ══ ══
Ot he inv est nts r me			( ) a
t c ost a –	10, 032 335 ,	13, 23 4, 40 6
Ot he inv est nts r me
ke lue t m t v a ar a –	6, 02 1, 870	‐	b ( )

(a) There is no quantitative information. Fair value has been determined based on acquisition cost.

(b) The fair value has been determined based on the investments' latest transaction prices.

════════

NOTE 24: INCOME AND EXPENSE

This note provides a breakdown of the items included in "income from equity investments" and "impairment of financial instruments".

	31 Dec 2017	31 Dec 2016
	\$	\$
Profit from development properties
Contract revenue	10,660,875	‐
Sale of land Cost of goods sold	12,999,397 (7,867,787)	2,155,070 (1,780,582)
Contract costs	(1,861,824)	(39,021)
	──────── 13,930,661 ════════	──────── 335,467 ════════
Net income from equity investments
Net gain on sales of equity investments	463,225	9,934,791
Net gain on financial assets at fair value through profit or loss	5,725,992	‐
Dividends from unrelated entities	2,649,592	465,219
Impairment recovery of investments in related entities Impairment recovery of investments in unrelated entities	158,692 3,506,989	‐ 6,122,426
Impairment of listed investments	(737,146)	(835,951)
Impairment of unlisted investments	(135,233)	(171,000)
	────────	────────
	11,632,111 ════════	15,515,485 ════════
Impairment on loans	-
Impairment on loans to associated entities		1,877,166
Impairment on loans to other entities	118,662 ────────	‐ ────────
	118,662	1,877,166
	════════	════════
Other overhead and administration fees
Employee costs	2,437,814	2,008,593
Consultancy fees	520,747	409,814
Lease expenses	274,866	110,351
Insurance expenses Legal fees	101,091 60,061	105,205 136,418
Change in fair value of investment property	63,178	‐
Other expenses	556,284	589,675
	──────── 4,014,041	──────── 3,360,056
	════════	════════

NOTE 25: SUBSEQUENT EVENTS

Since the end of the period, the directors have determined to pay an interim dividend of 7 cents per share, fully franked, payable on 7 March 2018.

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 2017.

CVC LIMITED ACN 002 700 361

AUDITOR'S INDEPENDENCE DECLARATION

As lead auditor for the review of the financial report of CVC Limited for the half-year ended 31 December 2017, 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.

Sydney NSW M D Muller 21 February 2018 Partner

26

CVC LIMITED ACN 002 700 361

INDEPENDENT AUDITOR'S REVIEW REPORT

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 2017, the condensed statement of financial performance, the condensed statement of comprehensive income, the condensed statement of changes in equity and the condensed statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory notes, and the directors' declaration, for 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 internal control as the directors determine is necessary to enable the preparation of the half-year financial report that gives a true and fair view and 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 half-year 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 2017 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.

Independence

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

27

CVC LIMITED ACN 002 700 361

INDEPENDENT AUDITOR'S REVIEW REPORT (continued)

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 2017 and of its performance for the half-year ended on that date; and
• (b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

HLB Mann Judd M D Muller Chartered Accountants Partner

Sydney, NSW 21 February 2018