CVC LIMITED — Interim / Quarterly Report 2020

Feb 24, 2020

RESULTS ANNOUNCEMENT FOR THE 6 MONTHS ENDED 31 DECEMBER 2019

RESULTS SUMMARY:

As highlighted at the 2019 Annual General Meeting, the first half of FY2020 saw a focus on the implementation of a new investment strategy, focusing effort and capital towards core competencies.

The repositioning of the Company brought with it further restructuring costs and a reallocation of the investment portfolio though the period. As a result, CVC has incurred a net loss after tax to shareholders of \$2.7 million in the period (2018: net loss to shareholders of \$6.4 million PCP).

The first half results are disappointing. The Board and management are focused on executing the revised strategy to deliver strong future returns for shareholders.

REPOSITIONING:

A summary of transition of CVC's investment strategy is as follows:

	Goal	Progress	Next Steps
Investment Strategy	• Reduce breath of diversity in investment portfolio High conviction positions with ability ٠ to influence outcomes	Strategic review completed with core and non-core segments identified Increased investment in real estate related investments	Continue to simplify portfolio and improve efficiency
Refocus / Reposition	Focus on core competencies Market understands the CVC position and offering	Development of strategy to capitalise on core skills of investment team Established ongoing review framework ٠	Continued adherence to streamlined business plan Educate investors and market about revision to business
Reduce Costs	• Cost of running business corresponds with a simplified strategy	Cost base significantly reduced (c.\$1.5m of annual costs have been removed)	• Continue to monitor and improve efficiency to ensure sustainable operating cost base and sufficient resources to deliver strong returns
Divestments	Maximise value of CVC investment portfolio Remove non-core investments from portfolio	Divestment of approximately \$33.5m of investments in listed equities and private equity segments	Patient and focused approach to divestment of non-core investments, but strong commitment to continue rationalisation

CVC Limited ABN 34 002 700 361 Level 37 1 Macquarie Place Sydney NSW 2000

T02 9087 8000 F02 9087 8088 www.cvc.com.au

CVC's progress in repositioning the investment portfolio over the last 6 months is summarised as follows:

SEGMENT COMMENTARY:

The contributions to the loss for the half year are as follows:

Underlying Results
	1H FY2019	1H FY2018
Net loss after tax	(\$2.7 m)	(\$6.4 m)
Comprises:
Direct property	\$0.6 m	\$4.1 m
Property backed lending	\$3.1 m	\$3.6 m
Funds management	\$1.2 m	\$0.4 m
Commercial debt and alternatives	(\$0.4 m)	\$1.6 m
Listed investments	\$0.2 m	(\$13.4 m)
Private equity	(\$2.5 m)	\$0.1 m
Convertible note interest	(\$1.9 m)	(\$2.2 m)
Remuneration	(\$2.0 m)	(\$2.9 m)
Unallocated	(\$1.5 m)	(\$1.5 m)
Restructure costs	(\$1.1 m)
Tax effect	\$1.6 m	\$3.8 m
Net loss after tax	(\$2.7 m)	(\$6.4 m)

CVC has continued to reduce the size of the listed share and unlisted equity portfolios. Specifically, the number of listed investments totals 11 (down from 43 at 30 June 2019). Realised profits from sales of listed equities totalled \$3.1m with a further \$0.3m generated from dividends and underwriting fees. Those shares remaining in the portfolio contributed a loss of \$3.2m, primarily from adverse mark-to-market movements.

Private equity investments contributed a loss of \$2.5m. This segment now represents less than 3.5% of the Company's statutory net assets.

Funds management has contributed positively to profit for the period. The funds management platform has three major areas of focus. Firstly, the continued management and growth of Eildon Capital (ASX: EDC) to deliver strong investor returns for its shareholders. Second, to grow investments under management of the Eildon Debt Fund, a contributory mortgage fund that provides wholesale investors access to first mortgage property loans on a deal by deal basis. The third is to foster the continued deployment of capital raised in the CVC Emerging Companies Fund. To date, approximately 50% of the Fund's total committed capital has been invested into qualifying investments.

CVC Limited ABN 34 002 700 361 Level 37 1 Macquarie Place Sydney NSW 2000

T 02 9087 8000 F02 9087 8088 www.cvc.com.au

CVC's exposure to property debt has increased over the period as proceeds of share sales have been redirected primarily to this segment. We continue to see this as a sensible sector to invest capital to deliver interest income in asset backed positions.

Exposure to direct property has increased slightly and is anticipated to further increase in the next period. CVC has entered into a binding contract to purchase a greenfield development site suitable for a neighbourhood shopping, medical and childcare centre in Marsden Park, NSW. Acquisition is expected to occur H2 FY2020, with development forecast to be completed by H1 FY2021. CVC is also in the process of completing due diligence on a similar asset in Victoria which is anticipated to be settled over FY2020 - FY 2021, with development forecast to be completed over three years.

CVC continues to be focused on reducing ongoing overhead costs, with the impact flowing through in H2 FY2020 results.

FORECAST RESULTS AND DIVIDENDS

With FY 2020 being a year of transition, profitability for the current financial year is forecast to be approximately breakeven.

The Board is generally committed to maintaining the payment of dividends to shareholders where those payments are in line with underlying profitability of the business. Given the half year result, there will not be an interim dividend. Further, in the absence of any significant change to forecast profitability a final dividend is also not expected to be paid.

CVC has periodically purchased shares under its buy back scheme, dependant on price. The Board will continue to assess opportunities to purchase shares where appropriate.

Mark Avery Director 25 February 2020

CVC Limited ABN 34 002 700 361 Level 37 1 Macquarie Place Sydney NSW 2000

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

Appendix 4D

Half-Yearly Report

Results for announcement to the market

	CVC Limited
ABN	Half-Year ended			Previous Half-Year ended
	('Reporting Period')			('Corresponding period')
34 002 700 361	31 December 2019			31 December 2018
Results
Income from ordinary activities	down	69.5%	to	11,957.894
Loss before tax	down	65.0%	to	3,028,100
Loss after tax attributable to members	down	58.1%	to	2,672,818
Net loss attributable to members	down	58.1%	to	2,672,818

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

Dividends (distributions)

7.0 cents
8.0 cents

Information on dividends:

No dividend has been declared for the 2019 half-year period.

Ex-Dividend date for the purpose of receiving the dividend	. ---------------------------------------
Record date for determining entitlements to the dividend ________
Payment.	'N A .

Commentary

Brief explanation of any of the figures reported above:

Please refer to the attached commentary for a detailed review.

Net tangible assets

	31 December 2019	31 December 2018 $(rested)^{\wedge}$
Net tangible assets per ordinary security	\$1.37	\$1.55
Note: Net tangible assets exclude "right-of-use assets".

Net tangible assets have been restated following the adoption of AASB 16: leases (AASB 16). The right-of-use assets recognised on the adoption of AASB 16 has been excluded from the calculation of net tangible assets.

Audit qualification or review

The financial statements were subject to a review by the auditors and the review report is attached as part of the Interim Report.

CVC LIMITED AND ITS CONTROLLED ENTITIES

HALF-YEAR FINANCIAL REPORT

For the half-year ended 31 December 2019

ACN 002 700 361

COMPANY PARTICULARS

CVC LIMITED

ACN 002 700 361

DIRECTORS

Mark Avery (Appointed 1 July 2019) Alexander Leaver (Appointed 1 July 2019) John Read Ian Campbell John Leaver (Resigned 11 October 2019) Alexander Beard (Resigned 1 August 2019)

SECRETARIES

John Hunter Alexander Beard (Resigned 1 August 2019)

MANAGEMENT TEAM

Mark Avery Jufri Abidin Jonathan Sim Rajiv Manoharan William Chen

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 Bankwest Westpac Banking Corporation

STOCK EXCHANGE LISTING

Australian Securities Exchange Limited

John Hunter Christian Jensen Jonathon Pearce Tiffany McLean

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 2019 and the independent review report thereon.

Directors

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

Mark Anthony Avery (Managing Director) (Appointed 1 July 2019) Alexander Jovan Rapajic-Leaver (Non-Executive Director) (Appointed 1 July 2019) John Douglas Read (Non Executive Chairman) Ian Houston Campbell (Non Executive Director) John Scott Leaver (Executive Director) (Resigned 11 October 2019) Alexander Damien Harry Beard (Resigned 1 August 2019)

Operating Results

The net loss after tax attributable to shareholders for the six months ended 31 December 2019 of CVC amounted to \$2.7 million (2018: loss after tax of \$6.4 million).

Highlights during the half year included:

• The reduction in the number of business streams undertaken, which over time will allow further investment and focus toward segments where the business has demonstrated deep market knowledge and capability;
• continued to reduce the size of the listed share and unlisted equity portfolios. Specifically, the number of listed $\bullet$ investments totals 11 (down from 43 at 30 June 2019);
• Continued delivery of strong shareholder returns by Eildon Capital Limited (ASX: EDC);
• Growth of investments under management of the Eildon Debt Fund, a contributory mortgage fund that provides wholesale investors access to first mortgage property loans on a deal by deal basis;
• The continued deployment of capital raised in the CVC Emerging Companies Fund, with approximately 50% of $\bullet$ funds total committed capital invested into qualifying investments;
• Increase in the property debt portfolio with proceeds of share sales being redeployed to this segment;
• Entering into a binding contract to purchase a greenfield development site suitable for a neighbourhood shopping, medical and childcare centre in Marsden Park, NSW;
• Due diligence being undertaken on a on a neighbourhood shopping, medical and childcare centre development $\bullet$ site in Victoria; and
• Continued focused on reducing ongoing overhead costs.

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

Dividends

A final fully franked dividend in respect of the year ended 30 June 2019 of 8 cents per share was declared on 1 August 2019 and paid on 20 August 2019 to those shareholders registered on 6 August 2019.

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 2019.

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 24.

Signed and Dated Sydney 25 February 2020 in accordance with a resolution of directors.

MARK AVER

Director

VREAD

CVC LIMITED & CONTROLLED ENTITIES CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE FOR THE HALF-YEAR ENDED 31 December 2019

	Notes
		31 Dec 2019	31 Dec 2018
		\$	\$
INCOME
Revenue from development properties	11	1,793,400	30,844,242
Interest income		6,892,585	4,944,543
Fee income		769,008	668,984
Other income		232,504	503,770
Total income		9,687,497	36,961,539
Equity accounted profits
Share of net profit of associates	5	2,270,397	2,258,093
EXPENSES
Cost of land sold		1,658.169	11,688,906
Contract costs			14,556,852
Net loss from equity investments	11	2,747,016	13,204,902
Employee costs		2,574,138	2,688,735
Finance costs		3,236,223	2,854,174
Impairment of financial assets at amortised cost	11	2,104,574
Management and consultancy fees		669,825	1,220,098
Overhead expenses	11	1,996,049	1,646,123
Total expenses		14,985,994	47,859,790
Loss before related income tax expense		(3,028,100)	(8,640,158)
Income tax benefit	2	1,626,473	3,776.938
Net loss for the half-year		(1,401,627)	(4,863,220)
Net (loss)/profit attributable to:
Members of the parent entity		(2,672,818)	(6,380,226)
Non-controlling interest		1,271,191	1,517,006
Net loss for the half-year		(1,401,627)	(4,863,220)
Basic and diluted earnings per share	4	(2.27)	(5.34)
Other comprehensive income for the half-year, net of tax
Total comprehensive loss for the half-year		(1,401,627)	(4,863,220)
Total comprehensive (loss)/income for the half-year is attributable to:
Members of the parent entity		(2,672,818)	(6,380,226)
Non-controlling interest		1,271,191	1,517,006
		(1,401,627)	(4,863,220)

The above condensed consolidated 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 FINANCIAL POSITION

AS AT 31 December 2019

	Notes	31 Dec 2019	30 Jun 2019
		s	Ъ
CURRENT ASSETS
Cash and cash equivalents		36,815,268	57, 157, 737
Financial assets at amortised cost		56,822,737	35,081,213
Financial assets at fair value through profit or loss	10	30,111,622	43,124,036
Inventories		2,023,525	3,323,321
Other assets		1,431,222	1,412,728
Current tax assets			1,145,424
Total current assets		127,204,374	141,244,459
NON-CURRENT ASSETS
Financial assets at amortised cost		51,489,453	18,568,770
Financial assets at fair value through profit or loss	10	9,220,747	40,156,134
Inventories		20,176,946	19,528,957
Investments accounted for using the equity method	5	57,644,363	48,409,113
Property, plant and equipment		121,374	304,544
Right-of-use assets	14	3,013,831
Investment properties	10	2,400,000	2,400,000
Intangible assets	6	2,946,006
Other assets		15,396.461	15,243,157
Total non-current assets		162,409,181	144,610,675
TOTAL ASSETS		289,613,555	285,855,134
CURRENT LIABILITIES
Trade and other payables		16,116,043	14,164,786
Contract liabilities		1,232,163	2,133,503
Lease liabilities	14	708,228
Provisions		539,674	854,699
Current tax liabilities		317.155
Total current liabilities		18,913,263	17,152,988
NON-CURRENT LIABILITIES
Trade and other payables			5,000,000
Lease liabilities	14	2,243,342
Interest bearing loans and borrowings		83,704,748	80,335,742
Provisions		37,790	104,136
Deferred tax liabilities		370,008	3,473,506
Total non-current liabilities		86,355,888	88,913,384
TOTAL LIABILITIES		105,269,151	106,066,372
		184,344,404	179,788,762
NET ASSETS
EQUITY
Contributed equity	7	98,282,559	98,768,308
Other equity		1,881,405	1,881,405
Retained profits		67,539,542 (446, 973)	79,626,124 (266, 808)
Other reserves
Parent entity interest		167,256,533	180,009,029
Non-controlling interest		17,087,871	(220, 267)
TOTAL EQUITY		184,344,404	179,788.762

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

	equity $\boldsymbol{\varphi}$ Contributed	69 Retained earnings	Asset ↮ revaluation	Other Equity	Owners of the parent Đ,	interest Đ, Non-controlling	ŧΩ, Total
At 1 July 2019	98,768,308	79,626,124	(266,808)	1,881,405	180,009,029	(220, 267)	179,788,762
Other comprehensive income (Loss)/profit for the half-year	ı 1	(2,672,818)			(2,672,818) (2,672,818)	1,271,191 1,271.191	(1,401,627) (1,401,627)
Total comprehensive (loss)/income for the half-year		(2,672,818)
Non-controlling interests on acquisition of subsidiary Transactions with non-controlling interests Deferred tax recognised directly in equity Transactions with shareholders: Buy-back transaction costs Shares bought back Dividends paid	(484, 822) (1,326) 399	(9,413,764)	(180,165)		399 (1,326) (180, 165) (9,413,764) (484, 822)	830,953 16,861,557 (1,655,563)	650,788 399 (1,326) 16,861,557 (11,069,327) (484, 822)
At 31 December 2019	98,282,559	67,539,542	(446,973)	1,881,405	167,256,533	17,087.871	184,344,404
At 1 July 2018	103,646,848	99,606,254	(318, 237)	1,881,405	204,816,270	1,353,079	206,169,349 ▏
Other comprehensive income (Loss)/profit for the half-year		(6,380,226)			(6,380,226)	1,517,006	(4,863,220)
Total comprehensive (loss)/income for the half-year		(6,380,226)			(6,380,226)	1,517,006	(4,863,220)
Transactions with non-controlling interests Transactions with shareholders: Dividends paid		(9,562,623)			(9,562,623)	1,725 (3,386,140)	1,725 (12,948,763)
At 31 December 2018	103,646,848	83,663,405	(318,237)	1,881,405 $\frac{1}{2}$ . The contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of t	$\label{eq:1} \begin{minipage}{0.9\linewidth} \begin{minipage}{0.9\linewidth} \centering \begin{minipage}{0.9\linewidth} \centering \end{minipage} \begin{minipage}{0.9\linewidth} \centering \end{minipage} \begin{minipage}{0.9\linewidth} \centering \begin{minipage}{0.9\linewidth} \centering \end{minipage} \begin{minipage}{0.9\linewidth} \centering \end{minipage} \begin{minipage}{0.9\linewidth} \centering \end{minipage} \begin{minipage}{0.9\linewidth} \centering \end{minipage} \begin{minipage}{0.9\linewidth} \centering \end{minipage} \begin{minipage}{$ 188,873,421	(514,330)	188,359,091

The above condensed consolidated 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 2019

	31 Dec 2019	31 Dec 2018
	s	\$
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts in the course of operations	1,745,804	1,129,739
Cash payments in the course of operations	(10,015,265)	(6,274,460)
Net proceeds on disposal of land held for resale	687,646	11,070,036
Proceeds on disposal of equity investments	34,872,527	61,193,615
Payments for equity investments	(14,056,447)	(63,934,559)
Net proceeds on construction contract		1,804,518
Net payment for construction contract	(864, 389)
Loans provided	(74, 743, 583)	(49, 136, 850)
Loans repaid	49,826,253	18,807,581
Interest received	4,544,565	1,918,608
Interest paid	(1,489.333)	(1,834,507)
Dividends received	1,472,029	2,357,910
Income taxes paid	(325,039)	(2,005,552)
Net cash flows used in operating activities	(8,345,232)	(24,903,921)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for development of investment properties	(21.779)	(129, 246)
Payments for property, plant and equipment	(4,065)	(11, 932)
Acquisition of subsidiaries, net of cash acquired	(1,049,372)
Net cash flows used in investing activities	(1,075,216)	(141, 178)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of borrowings	(669, 100)	(61, 463, 315)
Proceeds from borrowings	1,167,684	58,554,503
Transactions with non-controlling interests	648,965
Dividends paid	(8,854,120)	(9,562,623)
Distribution to non-controlling interest	(2,729,302)	(3,317,888)
Payments for shares bought back	(486, 148)
Net cash flows used in financing activities	(10,922,021)	(15,789,323)
Net decrease in cash held	(20,342,469)	(40,834,422)
Cash at the beginning of the half-year	57,157,737	71,093,285
CASH AT THE END OF THE HALF-YEAR	36,815,268	30,258,863

The above condensed consolidated 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 2019 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 Australian Accounting Standards and International Financial Reporting Standards. The accounting policies adopted are also consistent with those of the previous financial year and corresponding interim reporting period except for the adoption of AASB 16 Leases as set out in Note 14.

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

	31 Dec 2019 \$	31 Dec 2018 \$
NOTE 2: INCOME TAX EXPENSE
Accounting loss before income tax	3,028,100	8,640.158
Income tax benefit:
Prima facie income tax benefit at 30% on profit before income tax	908,430	2,592.047
Increase in income tax expense due to:
Sundry items	(32,206)	(31,744)
Trust losses not deductible		(123, 193)
Decrease in income tax expense due to:
Franked dividends received	273,856	623,680
Trust profits not assessable	163,267
Tax losses recouped		200,325
Deferred tax balances not recognised	262,075	484,600
	1,575,422	3,745,715
Adjustment in respect of current income tax of previous years	51,051	31,223
Income tax benefit for the half-year	1,626,473	3,776,938

NOTE 3: DIVIDENDS

A final fully franked dividend in respect of the year ended 30 June 2019 of 8 cents per share was declared on 1 August 2019 and paid on 20 August 2019 to those shareholders registered on 6 August 2019.

NOTE 4: EARNINGS PER SHARE

VOTE 4: CANNINGSTEN SHANE	31 Dec 2019	31 Dec 2018
Basic and diluted earnings per share	Cents	Cents
Basic and diluted earnings per share attributable to the members of the parent entity	(2.27)	(5.34)
	Ŝ	\$
Reconciliation of earnings used in calculation of earnings per share:
Loss after income tax	1,401.627	4,863,220
Less: non-controlling interest	1,271,191	1,517,006
Net loss attributable to members of the parent entity	2,672.818	6,380,226
		Number of Shares
Weighted average number of ordinary shares - Basic and diluted	117,588,004	119,532,788
Number of shares on issue at the end of the half-year	117,467,321	119,532,788

NOTE 5: INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

NOTE 5: INVESTIVIENTS ACCOUNTED FOR OUTRO THE EQUITE METHOD	31 Dec 2019 \$	30 Jun 2019 -S
Equity accounted interests in joint ventures Equity accounted interests in listed associated entities Equity accounted shares in other associated entities	7.204.985 19,542,352 30.897.026	7.821,157 18,779,948 21,808,008
	57.644,363	48,409,113

NOTE 5: INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (CONT.)

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

	Ownership Interest			Carrying value		Contribution to net profit/(loss)
	Dec 2019	June 2019	Dec 2019	June 2019	Dec 2019	Dec 2018
	$\frac{0}{70}$	$\%$	S	\$	S	\$
Associated entities
79 Logan Road Pty Ltd	35.0	35.0	35	35
79 Logan Road Trust	35.0	35.0	4,370,846	2.893,049	1,599,946	(13, 550)
Australian Invoice Finance Limited	44.1	47.6	1,842,860	2,158,649	(315,788)	(36, 377)
Bigstone Capital Pty Limited	34.0	34.0	613,352	1,843,506	(288,002)	(392, 565)
BioPower Systems Pty Limited	25.1	25.1
Causeway Income Partners Limited (a)	50.0	50.0
Cedar and Stone Pty Ltd	43.3	43.3	34,332	96,225	(61,893)	46,225
Cravenda Pty Ltd (a)	48.3	50.0	60	60
Cravenda Unit Trust (a)	48.3	50.0	60	60
CVC Emerging Companies Fund	22.3	22,3	6,781,903	3,333,334	115.235
CVC Emerging Companies IM Pty Ltd (a)	50.0	50.0	6,536		6,536
Donnybrook JV Pty Ltd	49.0	49.0	7,149,386	3.403,464	(51,394)	(35,787)
Eildon Capital Limited	40.9	40.3	19,740,352	18,709,047	1,339.360	927,211
Eildon Funds Management Limited (b)	n/a	40.0		460,548	11,074	93,388
JAK Contributory Mortgage Fund Loan						61,123
Trust No 3	20.8	20.8	5,291,849	2,770,833	291,849
JAK Investment Group Pty Ltd	40.0	$40.0\,$	213,497	227,037	(13, 540)	(51.672)
Kingsgrove Property LMC Pty Ltd (a)	50.0	50.0
LAC Unit Trust (c)	n/a	n/a				(1,864) (16, 672)
Lewcorp Properties Pty Ltd	20.0	20.0	751,255	818,853	(67, 598)
Mooloolaba Wharf Holding Company Pty				3,534,578	(137, 636)
Limited (a)	50.0	50.0	3,396,942		520,994
The Kingsgrove (Vanessa Road) Unit Trust	25.0	25.0
The Maroochydore Medical Centre Facility	50.0	50.0	50	50		2,709,877
Unit Trust (a)	32.5	32.5				(102)
Turrella Property Pty Ltd	32.5	32.5	246,063	267,727	2,337	82
Turrella Property Unit Trust Urban Properties Cairns Pty Limited	20.0	20.0
Urban Properties Centenary Pty Limited	20.0	20.0
Urban Properties Pty Limited		33.3
US Residential Fund	22.2	22.2		70,901		(32, 792)
Joint Ventures
MAKE 246 EBRB Pty Ltd (a)	50.0	50.0
MAKE EBRB Dev Nominee Pty Ltd (a)	50.0	50.0	7,140,074	7,821,157	(681.083)	(998, 432)
JAK Mickleham Road Pty Ltd (a)	50.0		64,911
			57,644,363	48,409,113	2,270,397	2,258,093

• (a) Causeway Income Partners Limited, Cravenda Pty Ltd, Cravenda Unit Trust, CVC Emerging Companies IM Pty Ltd, Kingsgrove Property LMC Pty Ltd, Mooloolaba Wharf Holding Company Pty Limited, The Maroochydore Medical Centre Facility Unit Trust, MAKE EBRB Dev Nominee Pty Ltd, MAKE 246 EBRB Pty Ltd and JAK Mickleham Road Pty Ltd are not considered to be controlled entities of CVC. This is because CVC does not have the power to direct the entities' relevant activities to affect CVC's returns.
• (b) During the half year ended 31 December 2019, Eildon Funds Management Limited became a controlled entity of CVC. Refer to note 8.

(c) During the half year ended 31 December 2018, LAC Unit Trust became a controlled entity of CVC.

	31 Dec 2019	30 Jun 2019
	S	\$
NOTE 6: INTANGIBLE ASSETS
Goodwill	2,946,006
Reconciliations:
Carrying amount at the beginning of the period		÷
Acquisition of business	2,946,006	$\overline{\phantom{0}}$
Carrying amount at the end of the period	2,946,006

The goodwill is attributable to the acquisition of the funds management business in Eildon Funds Management Limited. The recoverable amount is based on an independent valuation prepared by Longergan Edwards and Associates Limited at the date of the acquisition on 8 August 2019. The beneficiaries of the sale included associates of Messrs Mark Avery, John Hunter and Alexander Beard.

The valuation of Eildon Funds Management Limited was based on the following metrics:

Earnings before interest and taxes multiple: $4.0 - 4.5x$ $\mathbf{L}$

This compares to the valuation metrics of Eildon Funds Management Limited at the time that the executive staff acquired an interest in the company in 2016 of:

Earnings before interest and taxes multiple: $4.0 - 4.5x$

The goodwill is not deductible for tax purpose. Refer to Note 8.1.

	31 Dec 2019		31 Dec 2018
	Number	\$	Number	\$
NOTE 7: CONTRIBUTED EQUITY
Issued and paid-up ordinary share capital
Balance at the beginning and end of the half-year	117,690,259	98,768,308	119,532,788	103,646,848
Shares bought back	(222, 938)	(484.822)
Share buyback transaction costs		(1.326)
Income tax on buyback transaction costs	$\blacksquare$	399
Balance at the beginning and end of the half-year	117,467.321	98,282,559	119.532,788	103.646.848

NOTE 8: BUSINESS COMBINATION

Eildon Funds Management Limited 8.1

On 8 August 2019, CVC acquired 60% of Eildon Funds Management Limited ("EFM") for a consideration of \$3,623,500 at which time it became a 100% subsidiary of CVC. Immediately prior to that date, CVC had an existing holding of 40% of the equity on issue with a carrying amount of \$471,622.

A summary of the acquisition is as follows:

	\$
Purchase consideration: Cash paid	3,623,500
Total purchase consideration	3,623,500
Fair value of Assets and Liabilities of EFM at Acquisition:
Cash assets	985,868
Trade and other receivables (a)	543,777
Plant and equipment	7,342
Financial assets	130
Deferred tax asset	17,794
Trade and other payables	(77, 011)
Current tax liability	(328, 784)
Total identifiable net assets at fair value	1,149,116
Less: carrying amount prior to acquisition	(471, 622)
Add: goodwill (b)	2,946,006
Consideration for acquisition	3,623,500
Cash outflow
Cash consideration	3,623,500
Less: balances acquired
Cash	(985, 868)
Net outflow of cash - investing activities	2,637,632

(a) The fair value of acquired trade and other receivables is the gross contractual amount.

(b) The goodwill is attributable to the value of EFM's funds management business. It will not be deductible for tax purpose. Refer to Note 6.

For the period from acquisition to the end of the period, EFM recorded revenues of \$740,552 and profit after tax of \$398,879. If EFM had been owned for the whole of the period the revenue included would have been \$931,169 and profit after tax would have been \$426,565.

Eildon Debt Fund 8.2

CVC is deemed to acquire specified assets in Eildon Debt Fund ("EDF") on 8 August 2019 along with the EFM transaction. The directors have concluded that CVC controls specified assets in EDF, even though it holds less than half of the voting rights of this subsidiary. The significant judgement is per below:

• Eildon Investments Services Pty Limited ("EIS"), a 100% own subsidiary of EFM, is the fund manager for EDF.
• EIS has the decision-making authority to direct the relevant activities of EDF and make decisions in the best $\omega$ interests of all investors.
• The investors' rights to remove the fund manager are protective as they are excisable only when EIS is in default. $\overline{\phantom{a}}$
• CVC holds more than 20% investments in specified assets in EDF. This creates sufficient exposure for EIS to be a principal for the relevant specified assets.

No consideration was paid on 8 August 2019 at which time EDF became a subsidiary of CVC. Immediately prior to that date, CVC had an existing holding equivalent to 41.4% of specified assets with a carrying amount of \$11,928,085.

NOTE 8: BUSINESS COMBINATION (CONT.)

Eildon Debt Fund (Cont.) $8.2$

A summary of the acquisition is as follows:

Purchase consideration:
Cash paid
Total purchase consideration
Fair value of Assets and Liabilities of EDF at Acquisition:
Cash assets	1,588,130
Trade and other receivables (a)	18,036
Financial assets	30,210,574
Trade and other payables	(3,027,098)
Total identifiable net assets at fair value	28,789,642
Less: non-controlling interest (b)	(16.861, 557)
Less: carrying amount prior to acquisition	(11, 928, 085)
Consideration for acquisition
Cash inflow
Cash consideration
Add: balances acquired
Cash	1,588,130
Net inflow of cash - investing activities	1,588,130

(a) The fair value of acquired trade and other receivables is the gross contractual amount.

(b) CVC has recognised the non-controlling interest at the non-controlling interest's proportionate share of the net identifiable assets.

For the period from acquisition to the end of the period, EDF recorded revenues of \$2,875,534 and profit after tax of \$2,724,656. If EDF had been owned for the whole of the period the revenue included would have been \$3,249,212 and profit after tax would have been \$3,077,618.

NOTE 8: BUSINESS COMBINATION (CONT.)

Other immaterial business combinations $8.3$

A summary of the acquisition is as follows:

	\$
Purchase consideration:
Cash paid
Total purchase consideration
Assets and Liabilities of acquired business at Acquisition:
Cash	130
Financial assets	1,371,487
Trade and other payables (a)	(16,075)
Interest bearing loans and borrowings	(1,355,412)
Total identifiable net assets at fair value	130
Less: consideration for acquisition	(130)
Consideration for acquisition
Cash inflow
Cash consideration
Add: balances acquired
Cash	130
Net inflow of cash - investing activities	130

(a) The fair value of acquired trade and other receivables is the gross contractual amount.

For the period from acquisition to the end of the period, the acquired business recorded revenues of \$102,137 and profit after tax of \$37,745. If the acquired business had been owned for the whole of the period the revenue included would have been \$114,827 and profit after tax would have been \$37,745.

There were no acquisitions in the period ending 31 December 2018.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 December 2019 (CONTINUED) CVC LIMITED & CONTROLLED ENTITIES

NOTE 9: SEGMENT REPORTING

The information by business segments are as follows:

	Investments Private Equity	Alternative Assets Commercial Debt and	Listed \$'000's Investments	Lending \$'000's Property Backed	\$000's Direct Property	Funds \$'000's Management	Eliminations \$'000's Controlled	\$000's Consolidated
31 December 2019:	\$'000's	\$000's
Total revenue for reportable segments Inter-segment revenue Revenues:		690		5/7.5	780 1,922	$1,024$ $6,211$	(6,991)	9,351
Unallocated amounts: Corporate income Interest income								240 $\mathcal{H}$
Consolidated revenue								9,687
Equity accounted income	(62)			292	1,185	855		2,270
Share of profit of equity accounted investees Total profit for reportable segments Results:	(2,394) $\widehat{c}$	(441)	$\overline{161}$	292 4,445	1,185 (936)	316 855		$1,151$ $2,270$
	(2,456)	(441)	161	4,737	249	1,171		3,421
Unallocated amounts: corporate expenses								(6,449)
Consolidated loss before tax								(3,028) --------------------------------------

Segment results are shown before related income tax expense. All revenue during the half year is recognised at a point in time when the performance obligation is satisfied.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 December 2019 (CONTINUED) CVC LIMITED & CONTROLLED ENTITIES

NOTE 9: SEGMENT REPORTING (CONT.)

\$'000's Consolidated Eliminations \$'000's Controlled Management \$'000's Funds	$\left( 7,824\right)$ 613 6,585		(336)	$(193)$ $(336)$	(529)			613	613
\$'000's Direct Property	1,239 30,997		1,593	4,014 1,592	5,606			11,963 19,034	30,997
Backed Lending \$'000's Property	3,192		$\overline{6}$	3,545 $\vec{6}$	3,606			3,192	3,192
Investments \$'000's Listed	$2^7$		894	895 (13,270)	(12,375)			$\mathbb{Z}^7$	$\overline{z}$
Assets and Alternative \$'000'S Commercial Deb	1563		$\mathbf{u}$	1,562	1,562			1,563 ٠ $\mathbf{L}$	1,563
\$'000's Investments Private Equity	122		$\frac{46}{5}$	46 52	98			122	122
	Total revenue for reportable segments Inter-segment revenue 31 December 2018: Revenues:	Unallocated amounts: Interest income	Equity accounted income Consolidated revenue	Share of profit of equity accounted investees Total profit for reportable segments Results:		Unallocated amounts: corporate expenses	Consolidated profit before tax	Disaggregation of revenue from contracts with customers Timing of revenue recognition At a point in time Over time

Segment results are shown before related income tax expense.

			NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 December 2019 (CONTINUED) CVC LIMITED & CONTROLLED ENTITIES
NOTE 9: SEGMENT REPORTING (CONT.)	Investments Private Equity	Commercial Debt and Alternative	Listed Investments	Lending Property Backed	Direct Property	Funds Management	Consolidated
	\$'000's	Assets \$'000's	\$000's	S'000's	\$'000's	\$'000's	\$'000's
31 December 2019: Segment assets Assets:	7,710	8644	30,112	90.739	66,805	43,956	247,966
Cash and cash equivalents Unallocated amounts: Other assets							36,815 4,833
Total assets							289,614
Segment liabilities Liabilities:	$\pmb{\epsilon}$	٠		10,986	28,906	\$	39,892
Unallocated amounts: Other liabilities							65,377
Total liabilities							105,269
Segment assets 30 June 2019: Assets:	11,146	10,222	59,754	50,949	60,817	32,395	225,283
Cash and cash equivalents Unallocated amounts: Other assets							57,158 3,414
Total assets							285,855
Segment liabilities Liabilities:	$\sim$	350		9,613	29,687		39,653
Unallocated amounts: Other liabilities							66,413
Total liabilities							106,066

$\overline{17}$

NOTE 10: FAIR VALUE MEASUREMENTS

The fair values of the financial assets and liabilities of CVC are approximately equal to their carrying values.

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.

	Ouoted market price (Level 1)	Valuation technique - market observable inputs $(Level 2)$ $(a)$	Valuation technique - non market observable inputs (Level 3)	Total
	S		\$	S
At 31 December 2019 Financial assets
"Fair value through profit or loss" investments				30.111,622
Shares in listed corporations Shares in unlisted corporations (b)	1,775,196	28,336,426	9,220,747	9,220,747
Non-financial assets				2,400,000
Investment properties (c)			2,400,000
	1,775,196	28,336.426	11.620,747	41.732,369
At 30 June 2019 Financial assets "Fair value through profit or loss" investments
Shares in listed corporations	17,186,400	41,907,564		59,093,964
Shares in unlisted corporations (b) Non-financial assets			24,186,206	24,186,206
Investment properties (c)			2,400,000	2,400,000
	17,186,400	41,907.564	26,586,206	85,680,170

(a) The fair values of Level 2 financial instruments are determined using available prices where trading does not occur in an active market.

(b) There is no quantitative information. Fair value has been determined by using valuation techniques. Such techniques include using recent arm's length market transactions; net asset backing; reference to the current market value of another instrument that is substantially the same and discounted cash flow analysis.

(c) The fair value has been determined based on an independent valuation prepared by JLL Hotels & Hospitality Group.

Reconciliation of Level 3 fair value movements:

31 Dec 2018
S
19,602,318
13,044,422
(2.063,780)
(834,314)
(300,000)
29,448.646

(a) Unrealised losses recognised in statement of financial performance attributable to assets held at the end of the reporting period

$(1,953,241)$ 1,649,847

(b) The investments in Eildon Debt Fund were eliminated on consolidation as Eildon Debt Fund entered into CVC on 8 August 2019. Refer to Note 8.2.

NOTE 11: INCOME AND EXPENSE

This note provides a breakdown of the items included in the statement of financial performance.

	31 Dec 2019	31 Dec 2018
	S	\$
Profit from development properties
Contract revenue		19,034,389
Sale of land	1,793,400	11,809,853
	1,793,400	30,844,242
Net loss from equity investments
Net loss on financial assets at fair value through profit or loss	2,509,579	13,239,803
Dividends from related entities		(740,069)
Dividends from unrelated entities	(133.203)	(771, 614)
Fee from unrelated entities	(243, 116)	(97, 912)
Impairment recovery of investment in associate entity	(478, 397)
Impairment of investments in associated entities	1,092,153	1,574,694
	2,747,016	13,204,902
Impairment of financial assets at amortised cost
Impairment of loans to associated entities	1,630,574
Impairment of loans to other entities	474,000
	2,104,574
Other overhead and administration fees
Depreciation expenses	376,502	44,859
Lease expenses	32,107	291.411
Insurance expenses	118,974	94,244
Legal fees	217,624	181,562
Change in fair value of investment property	21,779	5,352
Impairment of property, plant and equipment	145,795
Other expenses	1,083,268	1,028,695
	1.996,049	1,646,123

NOTE 12: SUBSEQUENT EVENTS

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 2019.

NOTE 13: CONTINGENT LIABILITIES

During the period, CVC entered into a purchase agreement for a commercial site at Marsden Park, New South Wales. Completion of the contract is conditional upon obtaining the Acceptable Development Consent. Once the condition is met, the amount payable for the purchase is approximately \$8 million.

NOTE 14: CHANGES IN ACCOUNTING POLICIES

CVC has adopted AASB 16 Leases from 1 July 2019, but has not restated comparatives for the 2019 reporting period, as permitted under the specific transition provisions in the standard. The reclassifications and the adjustments arising from the new leasing rules are therefore recognised in the opening balance sheet on 1 July 2019.

CVC's leasing activities and how these are accounted for $(a)$

CVC leases various offices and equipment. Rental contracts are typically made for fixed periods of 4 years to 7 years, without any extension options.

Contracts may contain both lease and non-lease components. CVC allocates the consideration in the contract to the lease and non-lease components based on their relative stand-alone prices.

Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose any covenants other than the security interests in the leased assets that are held by the lessor. Leased assets may not be used as security for borrowing purposes.

Until the 2019 financial year, leases of property, plant and equipment were classified as either finance leases or operating leases. From 1 July 2019, leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by CVC.

Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments:

• fixed payments (including in-substance fixed payments), less any lease incentives receivable
• variable lease payment that are based on an index or a rate, initially measured using the index or rate as at the commencement date
• amounts expected to be payable by CVC under residual value guarantees
• the exercise price of a purchase option if CVC is reasonably certain to exercise that option, and
• payments of penalties for terminating the lease, if the lease term reflects CVC exercising that option.

Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability.

The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in CVC, the lessee's incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions.

To determine the incremental borrowing rate, CVC uses recent third-party financing received as a starting point, adjusted to reflect changes in financing conditions since third party financing was received.

Lease payments are allocated between principal and finance cost. The finance cost is charged to statement of financial performance over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.

Right-of-use assets are measured at cost comprising the following:

• the amount of the initial measurement of lease liability
• any lease payments made at or before the commencement date less any lease incentives received
• any initial direct costs, and
• restoration costs.

Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis.

Payments associated with short-term leases of office are recognised on a straight-line basis as an expense in statement of financial performance. Short-term leases are leases with a lease term of 12 months or less.

NOTE 14: CHANGES IN ACCOUNTING POLICIES (CONT.)

$(b)$ Impact of adoption

On adoption of AASB 16, CVC recognised lease liabilities and associated right-of-use assets in relation to leases which had previously been classified as 'operating leases' under the principles of AASB 117 Leases. These liabilities were measured at the present value of the remaining lease payments, discounted using the lessee's incremental borrowing rate as of 1 July 2019. The weighted average lessee's incremental borrowing rate applied to the lease liabilities on 1 July 2019 was 4%.

Practical expedients applied $(c)$

In applying AASB 16 for the first time, CVC has used the following practical expedients permitted by the standard: - applying a single discount rate to a portfolio of leases with reasonably similar characteristics

• relying on previous assessments on whether leases are onerous as an alternative to performing an impairment review. There were no onerous contracts as at 1 July 2019.

• accounting for operating leases with a remaining lease term of less than 12 months as at 1 July 2019 as short-term leases - excluding initial direct costs for the measurement of the right-of-use asset at the date of initial application, and

• using hindsight in determining the lease term where the contract contains options to extend or terminate the lease.

$(d)$ Measurement of lease liabilities

Below is a reconciliation between the operating lease commitments reported as at 30 June 2019 and lease liabilities recognised under AASB16 Leases on 1 July 2019. 3010

	2,850,836
Current lease liabilities Non-current lease liabilities	624.152 2.226,684
Of which are:
Lease liability recognised as at 1 July 2019	2.850,836
Contracts reassessed as lease contracts Adjustments relating to changes in the CVC's incremental borrowing rate	107,865
Operating lease commitments disclosed as at 30 June 2019 Discounted using the lessee's incremental borrowing rate of at the date of initial application Add -	3.056.925 2.694,775 48.196
	2013 £

Adjustments recognised in the condensed consolidated statement of financial position on 1 July 2019 $(e)$

The change in accounting policy affected the following items in the condensed consolidated statement of financial position on 1 July 2019:

• right-of-use assets - increase by \$2,850,836

• lease liabilities - increase by $$2,850,836$

There was no impact on retained earnings on 1 July 2019 as CVC has used the practical expedients permitted by the standard. Refer to Note 14(c).

NOTE 14: CHANGES IN ACCOUNTING POLICIES (CONT.)

Amounts recognised in condensed consolidated statement of financial position (f)
	31 Dec 2019	1 Jul 2019
	\$	\$
Right-of-use assets Buildings	2,965,323	2,789,872
Equipment	48,508	60,964
	3.013,831	2,850,836
Lease liabilities	708,228	624.152
Current Non-current	2,243,342	2,226,684
	2,951,570	2,850.836

Additions to the right-of-use assets during the half year ended 31 December 2019 were \$490,705 and the total cash outflow for leases was \$392,572.

Amounts recognised in condensed consolidated statement of financial performance $(g)$

	31 Dec 2019 S	31 Dec 2018 \$
Depreciation charge of right-of-use assets
Buildings	315.254
Equipment	12.456	۰
	327.710
Interest expense (included in finance cost)	2,602
Expense relating to short-term leases (included in other overhead and administration fees)	32,107

$(h)$ Lessor accounting

CVC did not need to make any adjustments to the accounting for assets held as lessor under operating leases as a result of the adoption of AASB 16.

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 22, are in accordance with the Corporations Act $(a)$ 2001 including:
• giving a true and fair view of the consolidated entity's financial position as at 31 December 2019 and of its $(i)$ performance for the half-year ended on that date; and
• complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations $(ii)$ 2001.

NREAD

ctor

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 25 February 2020.

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

MARK AVER

Director

$23$

Auditor's Independence Declaration

As lead auditor for the review of the financial report of CVC Limited for the half-year ended 31 December 2019, 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 N J Guest 25 February 2020 Partner

24

Independent Auditor's Review Report to the Members of CVC Limited

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of CVC Limited ("the company") which comprises the condensed consolidated statement of financial position as at 31 December 2019, the condensed consolidated statement of profit or loss and other comprehensive income, the condensed consolidated statement of changes in equity and the condensed consolidated 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.

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 2019 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.

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 2019 and its performance for the halfyear 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.

25

Auditor's Responsibility (Continued)

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.

HLB Mann Judd N J Guest Chartered Accountants Partner

Sydney, NSW 25 February 2020