EXCELSIOR CAPITAL LTD — Investor Presentation 2012

Sep 16, 2012

Investor Presentation 2012 F u ll Y ear esu R lt s 17-19 SEPTEMBER 2012 SYDNEY & MELBOURNE

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Colin Ryan AM EXECUTIVE CHAIRMAN

Sharyn Williams CHIEF FINANCIAL OFFICER

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 res p onsibilit y, and disclaims an y liabilit y ( includin g, without limitation an y liabilit y arisin g from fault or ne g li g ence ), for an y 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 u nkn o wn ri s k s, s i g nifi ca n t u n ce r ta in t i es, assu m pt i o n s, co n t in ge n c i es a n d ot h e r f acto r s, m a n y o f whi c h a r e outs i de t h e co n t r o l 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 p rices; le g islation or re g ulations throu g hout the world that affect CMI's business; le g al 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 a pp licable laws , re g ulations or securities exchan g e listin g rules , CMI disclaims an y obli g ation or undertakin g to release an y 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

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1. Corporate Profile
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1. Corporate Profile 2. Background 3. Share Register 4 . CMI B us nesses i 5. Highlights 2012 Year 6 . Financial Performance 7. Operating Summaries 8. Strategy & Outlook

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Corporate Profile

ASX Code CMI Share Price (13 Sep 2012) $1 . 95 Issued Capital - Shares 33.8M - Options 0.6M Market Capitalisation $65.8m Cash (30 June 2012) $5.6m Debt (30 June 2012) $7.8m 12 Month High / Low $2 . 45 / $1 . 12

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2.60
2.40
2.20
2.00
1.80
1.60
1.40
1.20
1.00
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Distribution of Equity Securities

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1‐1,000
1,001‐5,000
5,001‐10,000
10 , 001 ‐ 100 , 000
100,000 & above
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Board and Senior Management

• Colin Ryan AM – Executive Chairman

• L eanne a e an – C t l N on- E xecu ti ve Di rec or t

• Danny Herceg – Non-Executive Director

• Sharyn Williams – CFO/Company Secretary

• Jeff Heslin g ton – GM - CMI Electrical

• Stephen O’Brien – GM - TJM Products

*Graphs at 12 September 2012

Page 3

Background

Colin Ryan AM – BCom, LLB, FCA, FAICD (appointed 2007)

• Executive Chairman

• Former Queensland Managing Partner of Arthur Anderson

• Former Chairman of Brisbane Airport Corporation and Deputy Chairman of Port of Brisbane Corporation & Director of several public and listed companies

• Former Chairman of Royal Children’s Hospital Foundation & Queensland Children’s Medical Research Institute

Leanne Catelan – MAICD (appointed 2011)

• Non-executive Director

• Major shareholder of CMI Limited

• Experience in information technology and sport management industries

Danny Herceg – LLB, BSc (appointed 2007)

• Non executive Director

• Sydney based Corporate lawyer, principal of a boutique commercial firm specialising in capital raisings, M&A and restructurings

Sharyn Williams – BBus, BEd, CPA, ACIS/ACSA, GAICD (appointed 2007)

• CFO/Company Secretary

• Accounting and financial management over a range of business operations, private and public.

Page 5

Share Register

	Rank Name A/C Designation 12-Sep-12 % 1 LE RAE PTY LTD Catcorp 12,420,484 36.80%
	2 TINKERBELL ENTERPRISES PTY LTD 3,112,422 9.22% 3 MOAT INVESTMENTS PTY LTD 1,076,874 3.19% 4 ALMARGEM PTY LTD 859,038 2.55% 5 ASSETYLENE PTY LTD 851,632 2.52%
	6 LJ CATELAN SUPERANNUATION FUND PTY LTD 730,217 2.16% 7 MR PHILLIP GORDON GREENHAM 558,500 1.65% 8 FW HOLST & CO PTY LTD 549,728 1.63% 9 MR DANNY HERCEG 500,000 1.48%
	10 M L CATELAN SUPERANNUATION FUND PTY LTD 475,956 1.41% 1-10 21,134,851 62.62% 11-20 2,643,190 7.83% 21-1,225 9,974,593 29.55%
	Total 33,752,634 100.00%

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CMI Businesses

CMI Electrical

TJM Products

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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

• Di v id en d – no v di id en d d ec are l d

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

• Cl ass A s h are uy ac b b k comp ete - l f un d e d b y $7 . 5 m orrow ngs b i

• 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%

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Financial Performance

FY2012 Profit Summary

	Electrical	TJM	Corp	FY2012
	$'000	$'000	$'000	$'000
R evenue	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)	(6,246)
Operating NPAT				14,595
Impairment charge (loan receivable)				(9,270)
Reported NPAT				5,325

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Financial Performance

Special factors FY2012:

Revenue

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120,000
100,000
80,000
60,000
40,000
20,000
-
2010 2011 2012
00
$'0
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• Interest income on cash deposit (since paid out on buyback) $0.8m

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

• Impairment loan $9.3m

• Legal expenses on buyback, litigation and Industrial receivershi p a pp rox $1.1m

EBIT (exc. Impairments/Disc Ops)

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p pp 25 , 000
–
ATO tax audit expenses
20,000
–
Management changes
15,000
10,000
5,000
-
2010 2011 2012
000
$'
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Financial Performance

FY2012 Balance Sheet

	Electrical TJM Corp FY2012 $'000 $'000 $'000 $'000 C 28769 22345 2990 54104
	urrent assets , , , , Non-current assets 9,054 5,952 425 15,431 Total assets 37,823 28,297 3,415 69,535
	Current liabilities 5,979 6,619 11,398 23,997 Non-current liabilities 46 243 8 298 Total liabilities 6,026 6,862 11,407 24,295
	Shareholders equity 31,797 21,435 (7,992) 45,240

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Financial Performance

Cash Generation

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43 . 0
1.1
38.0 7.34
7.4
33.0
28.0
16.9
$m 23.0
26.20
18.0
13.0
16.1
8.0
2.34
5.6
3 . 0
Open Bal Operational Borrowings Int Recd Tax, int Buyback Capex Close Bal
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Financial Performance

Working Capital

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40,000
35,000
30,000
25,000
20,000 TJM
Electrical
15,000
10 , 000
5,000
0
June 2011 June 2012
0's
$'00
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* Working Capital = Inventory + Trade debtors – Trade creditors

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Electrical

• Formed in 1998, distributes and manufactures industrial electrical products

• Sourcing and supply of p ugs, coup ers, g l l hi h vo lt age cables, flexible cables and manufacture of speciality electrical cables

• P rov id es e ectr ca pro l i l d ucts 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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Electrical

• Operates across 6 sites in A us ra t li a

• Experienced, stable management

• Around 65 employees

• • 4 Business units

• Minto Industrial Products (plugs, couplers, glands)

• XLPE Cable

• Aflex Flexible Cable

• Hartland Cables

• Minto has strong market share

• Cable competitive market

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TJM Products

• Established in 1973

Revenue

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45,000
•
Designs, distributes and 40,000
35,000
manufactures accessory products
30,000
for 4WD and light commercial 25,000
20,000
vehicles
15,000
• 10,000
Provides products to:
5,000
•
Australian aftermarket 46% -
• 2010 2011 2012
Exports 31%; and
• EBIT
Australian Original Equipment 23%
3,500
•
Around 130 employees across 3 , 000 Insurance
2,500 Recovery
Australia, China & USA
2,000
1,500
1,000
500
-
-500 2010 2011 2012
-1,000
-1,500
00
$'0
$'000
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TJM Products

• Product range includes:

• Bull bars ( Steel & Allo y)

• Side/rear bars

• Suspension

• Recovery equipment

• Camping equipment

• Differential lockers

• Snorkels & Flares

• 55 branded independently owned TJM stores across Australia

• E xports to 38 countr es v a i i independent distributors

• New General Mana er commenced Feb 2012 g

• Restructure of management and operations

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External Factors

Electrical

Outlook for:

• Coal mining as a result of commodity price fluctuations

• Building and infrastructure development industry dependent on economic growth

TJM

Outlook for:

• Sales growth in new 4WD & light commercial vehicles

• Fluctuations in USD $

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Strategy & Outlook

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• C ont nue i d d eve opment o pro l f d uct n ot i b h El ectr ca an i l d TJM

• Establish additional Electrical branches as required

• Ex and the TJM domestic stores network p

• Build on existing TJM export distributor relationships

• Expand TJM supply chain and warehouse support for both domestic and export

• Expanded manufacturing & assembly in China for TJM

• Increased focus on sales volumes particularly in TJM

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Why Buy CMI?

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• S trong ura d bl e us nesses w t b i i h l ong operat ng stor es i hi i

• Electrical has 15 year operating history

• TJM has almost a 40 year operating history

• Sustainable profit generation and strong returns from Electrical

• Opportunity to turnaround TJM financial performance to support future earnings growth

• Low risk balance sheet with $2.2m net debt

• Com ellin valuation p g

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