EXCELSIOR CAPITAL LTD — AGM Information 2012

Nov 29, 2012

AGM Presentation 30 November 2012 BRISBANE

Colin Ryan AM EXECUTIVE CHAIRMAN

Disclaimer

• This document, and any constituent or associated presentation, information or material (collectively, the Material ), is not (and does not form part of) an offer, solicitation, invitation or recommendation in respect of any securities and neither the Material nor any part of it will form the basis of, or be relied upon in connection with, any contract, commitment or investment decision.

• No representation or warranty is or will be made by any person (including CMI Limited and its officers, directors, employees, advisers and agents ( CMI )) in relation to the accuracy or completeness of all or part of the Material, or the accuracy, likelihood of achievement or reasonableness of any forecasts, prospects or returns contained in, or implied by, the Material or any part of it. To the maximum extent permitted by law, CMI does not accept any responsibility, and disclaims any liability (including, without limitation any liability arising from fault or negligence), for any loss arising from any use of or reliance upon all or any part of the Material or otherwise arising in connection with it or for any action taken by the recipients of the Material on the basis of such Material.

• The Material contains certain forward-looking statements with respect to the financial condition, results of operations and business of CMI and certain plans and objectives of the management of CMI. All such forward-looking statements involve known and unknown risks, significant uncertainties, assumptions, contingencies and other factors, many of which are outside the control of CMI, which may cause the actual results or performance of CMI to be materially different from any future results or performance expressed or implied by such forward-looking statements. Such forward-looking statements speak only as of the date of the Material. Factors that could cause actual results or performance to differ materially include without limitation the following: fluctuations in interest and currency exchange rates, basis risk and credit risk; levels of supply and demand and market prices; legislation or regulations throughout the world that affect CMI's business; legal defense costs, insurance expenses, settlement costs and the risk of an adverse decision or other outcome relating to governmental investigations, class actions or other claims; growth in costs and expenses; risk of adverse or unanticipated market, financial or political developments (including without limitation in relation to commodity markets).

• The Material is provided for informational purposes only and is subject to change without notice. Subject to any obligations under applicable laws, regulations or securities exchange listing rules, CMI disclaims any obligation or undertaking to release any updates or revisions to the Material to reflect any change in expectations or assumptions. Nothing in the Material should be interpreted to mean that future earnings per share of CMI will necessarily match or exceed its historical published earnings per share, or that there has been no change in the affairs of CMI since the date of the Material.

• Nothing contained in the Material constitutes investment, legal, tax or other advice. The information in the Material does not take into account the investment objectives, financial situation or particular needs of any recipient. Before making an investment decision, each recipient of the Material should make its own assessment and take independent professional advice in relation to the Material and any action taken on the basis of the Material.

Page 2

Presentation Overview

1. Corporate Profile

2. Full Year 2012

3. September 2012 Quarter 4. Outlook

4. Formal Business

Page 3

Corporate Profile

ASX Code (listed since April 1993) CMI Share Price (27 Nov 2012) $1.69 Issued Capital - Shares 33.8M - Options 0.6M Market Capitalisation $57.0m Cash (30 June 2012) $5.6m Debt (30 June 2012) $7.8m Net Debt (30 June 2012) $2.2m 12 Month High / Low $2.45 / $1.33

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2.6
2.4
2.2
2
1.8
1.6
1.4
1.2
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Board and Senior Management

• Colin Ryan AM – Executive Chairman

• Leanne Catelan – Non-Executive Director

• Danny Herceg – Non-Executive Director

• Stephen Lonie - Non-Executive Director

• Effective 3 December 2012

• Sharyn Williams – CFO/Company Secretary

• Jeff Heslington – GM - CMI Electrical

• Stephen O’Brien – GM - TJM Products

*Graphs at 27 November 2012

Highlights FY2012

• Revenue – 19% growth for Electrical

• Group NPAT up 10% before impairment of loan receivable $9.3m

• Cashflow from operations – $9.6m after $3.9m increase working capital

• • Net debt of $2.2m

• Dividend – no dividend declared

• Impairment of Industrial receivable – reduced from $9.3m to nil carrying value

• Class A share buy back complete - $26.6m funded by $7.5m borrowings

• • Comfortable gearing ratio

• Management restructure – Executive Chairman, new GM in TJM

AT A GLANCE - NPAT BEFORE $9.3m IMPAIRMENT

Revenue		12%
EBITDA before impairment		12%
NPAT before impairment		10%
Operating Cashflow		24%
ROA		5%

Page 5

Financial Performance

Non-recurring financial items FY2012:

• Interest income on cash deposit (paid out - buyback) $0.8m

• Interest income on Industrial receivable (in receivership) $0.8m

• Impairment receivable $9.3m

• Legal expenses – Class A share buyback, litigation and Industrial receivership - approx $1.1m

Revenue

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120,000
100,000
80,000
60,000
40,000
20,000
-
2010 2011 2012
EBIT (exc. Impairments/Disc Ops)
25,000
20,000
15,000
10,000
5,000
-
2010 2011 2012
$'000
$'000
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EBIT (exc. Impairments/Disc Ops)

Page 6

Financial Performance

FY2012 Profit Summary

	Electrical	TJM	Corp	FY2012
	$'000	$'000	$'000	$'000
Revenue	73,759	39,491	1,647	114,897
EBITDA	21,778	2,237	(1,557)	22,457
EBITDA margin %	30%	6%		20%
EBIT	21,546	1,039	(1,560)	21,024
Operating PBT	21,540	1,020	(1,719)	20,841
Tax				(6,246)
Operating NPAT				14,595
Impairment charge (loan receivable)				(9,270)
Reported NPAT				5,325

Page 7

Electrical Division

• Formed in 1998, distributes and manufactures industrial electrical products.

• Sourcing and supply of plugs, couplers, high voltage cables, flexible cables and manufacture of speciality electrical cables .

• Provides electrical products to:

• the mining sector with a focus on underground gaseous mining, (mainly coal, new projects and maintaining existing projects);

• the construction industry (with some utilities & Industrial); and

• electrical wholesalers, workshops & contractors.

Revenue

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80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
-
2010 2011 2012
$'000
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EBIT

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25,000
20,000
15,000
10,000
5,000
-
2010 2011 2012
$'000
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TJM Products Division

• Established in 1973.

• Designs, distributes and manufactures accessory products for 4WD and light commercial vehicles.

• Provides products to:

• Australian aftermarket 46%;

• Exports 31%; and

• Australian Original Equipment 23%.

• Around 130 employees across Australia, China & USA.

Revenue

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45,000
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
-
2010 2011 2012
$'000
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EBIT

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3,500
3,000 Insurance
2,500 Recovery
2,000
1,500
1,000
500
-
-500 2010 2011 2012
-1,000
-1,500
$'000
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Page 9

Quarterly Update September 2012

& Outlook

Page 10

September 2012 Quarter

• Group revenue is up 4% on first quarter prior year:

• Electrical revenue – in line with first quarter prior year; and

• – TJM revenue - 13% up on first quarter prior year.

• EBIT from operating divisions in line with first quarter prior year.

• Corporate - costs in line with first quarter prior year although revenue $0.7m lower due to loss of interest received on Industrial receivable and cash deposits.

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Outlook ‐ Electrical

• The first quarter was in line with the prior year in revenue and earnings.

• CMI continues to monitor the effect of the coal price on the coal mining industry. Whilst coal prices remain low, there will be challenges to the profitability and expansion of the underground coal industry.

• Electrical earns 40% of revenues from the resources industry, principally from coal. CMI’s products are particularly focused on underground mine safety and are therefore an on-going requirement for operating mines.

• Revenues for the first 4 months remain in line with prior year but it is difficult to predict the impact of the coal mining issues going forward.

• The second quarter of the prior year was an unusually strong quarter.

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Outlook ‐ TJM

• Sales growth in new 4WD & light commercial vehicles is expected to continue.

• Continuing improvements in new design time to market.

• Supply chain & logistics transformation.

• Investment in online – new website launch this quarter.

• Re-investment in improving our organisational capabilities.

Page 13

Group Outlook

• As stated previously, in February 2011 guidance and in this year’s Annual Report, the dividend policy will be reviewed after the June 2013 year.

The boards intention, if earnings remain consistent, is to commence dividends based on the 2013 year.

• A long term performance rights incentive plan will be implemented to encourage retention and stability of senior management. Appropriate performance hurdles include operational revenue growth, profitability, share price growth and tenure.

• The receivership of Industrial is expected to conclude within 6 months. Current estimates from the Receivers are for minimal recovery of the receivable. A demand has been served under the $2.5m guarantee receivable security.

• A strong balance sheet means CMI will continue to invest capital and grow our existing businesses, while continuing to look for opportunities to create value for shareholders.

Page 14

Formal Business

Page 15

Formal Business

Financial Report

The receive and consider the financial report of the Company and the reports of the Directors and Auditors for the year ended 30 June 2012.

Page 16

Formal Business

Remuneration Report

Resolution 1.

To consider and, if thought fit, pass the following as a non-binding ordinary resolution:

‘That the Company’s Remuneration Report for the financial year ended 30 June 2012 is approved.’

Proxies Received	Voted	%
For	1,735,425	45.51
Against	1,756,080	46.05
Open	321,730	8.44
Abstain	40,946	N/A
Excluded	13,152,701	N/A

Page 17

Formal Business

Election of Directors

Resolution 2.

To consider and, if thought fit, pass the following as an ordinary resolution:

‘That Mr Danny Herceg, retiring by rotation in accordance with Rules 16.1 and 16.2 of the Constitution, and being eligible for re-election, is re-elected as a Director.’

Proxies Received	Voted	%
For	14,799,547	87.20
Against	1,850,777	10.90
Open	321,730	1.90
Abstain	34,828	N/A
Excluded	0	N/A

Page 18

Formal Business

Performance Rights Plan

Resolution 3.

To consider and, if thought fit, pass the following as an ordinary resolution:

‘That for the purpose of ASX Listing Rule 7.1, and in accordance with ASX Listing Rule 7.2 (Exception 9), and for all other purposes, the issue of securities under the Company's Performance Rights Plan on the terms as described in the Explanatory Memorandum is approved.’

Proxies Received	Voted	%
For	14,595,323	87.36
Against	2,088,573	12.50
Open	22,616	0.14
Abstain	1,256	N/A
Excluded	0	N/A

Page 19

Formal Business

Issue of Performance Rights

Resolution 4.

To consider and, if thought fit, pass the following as an ordinary resolution:

‘That for the purpose of ASX Listing Rule 10.14 and for all other purposes, the issue of 500,000 Performance Rights to Mr Colin Ryan under the Company's Performance Rights Plan on the terms as described in the Explanatory Memorandum is approved for a period of 3 years from the date of this approval.’

Proxies Received	Voted	%
For	14,177,959	87.02
Against	2,093,084	12.84
Open	22,616	0.14
Abstain	396,289	N/A
Excluded	0	N/A

Page 20

Formal Business

Adoption of New Constitution

Resolution 5.

To consider and, if thought fit, pass the following as a special resolution:

‘That the Constitution of the Company tabled at the AGM and signed by the chair of the AGM for the purpose of identification, is approved and adopted as the Constitution of the Company in substitution for and to the exclusion of the existing Constitution of the Company, with effect from the close of the AGM.'

Proxies Received	Voted	%
For	15,624,023	92.72
Against	844,734	5.01
Open	382,678	2.27
Abstain	155,447	N/A
Excluded	0	N/A

Page 21

Thank you for your attendance

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