Slide 1: Convertible Note Offer Investor Presentation
Convertible Note Offer Investor Presentation May 2018
Slide 2: Contents
Contents Introduction 3 Overview of CVC 4 Financial Information 17 Offer Summary 23 Key Risks 30 2
Slide 3: Introduction
CVC Limited Introduction CVC Limited (“CVC” or the “Company’’) is raising $50 million (with the ability to raise more or less) through the issue of convertible notes (“CVC Notes”) to continue to build on the Company’s diversified and actively managed portfolio of assets The Issuer Quarterly Income S
Slide 4: Overview of CVC
Overview of CVC 4
Slide 5: Overview of CVC
CVC Limited Overview of CVC CVC is an ASX listed diversified investment company, deploying capital across a variety of asset classes CVC’s current investments include: CVC Revenue Streams • Listed Equities: ASX-listed companies and trusts • Private Equity: Unlisted emerging and high growth Off-Balan
Slide 6: CVC Track Record
CVC Limited CVC Track Record During the period 31 December 1997 to 9 March 2018, CVC has generated total shareholder returns of 19.5% p.a. Total Shareholder Return Since 31 December 1997 Value of $10,000 invested on 31 December 1997 $4.50 $350,000 $4.00 $300,000 $3.50 $250,000 $3.00 $2.50 $200,000 $
Slide 7: Board & Management
CVC Limited Board & Management Experienced and well credentialed Board and Management Team Board John Read Alexander (Sandy) Beard Ian Campbell Chairman Managing Director Independent Director • Experienced Chairman and Director in public, • Joined CVC in 1991 as Group Financial Controller, • 30 year
Slide 8: Investment Selection Process
CVC Limited Investment Selection Process Defined investment selection and approval process when CVC is considering an investment opportunity Investment team Inbound/outbound Initial senior Due diligence Detailed investment Formal legal documentation identify investment opportunities logged managemen
Slide 9: Listed Equity
CVC Limited Listed Equity CVC looks at a broad range of listed equity classes, with particular focus on micro caps and smaller capitalised companies Adds significant value through active management of large strategic holdings that are identified as undervalued, counter-cyclical or underperforming CV
Slide 10: Case Study – Lantern Hotel Group
CVC Limited Case Study – Lantern Hotel Group CVC’s equity investment in Lantern Hotel Group (“Lantern”) has generated an internal rate of return of 54% p.a. since 2013 Lantern held a portfolio of hotels and pubs in Australia and New Zealand CVC identified the unit price was trading at a significant
Slide 11: Private Equity
CVC Limited Private Equity CVC invests in unlisted companies offering medium and long term returns with a focus on early expansion, semi-mature and established companies with positive cash flows CVC has been investing in private equity since its inception as a listed company Portfolio currently comp
Slide 12: Case Study – South Pack
CVC Limited Case Study – South Pack CVC completed a trade-sale of South Pack Laboratories (Aust) (“South Pack”) to ASX listed Probiotec Limited (ASX:PBP) generating an 85% Internal Rate of Return South Pack is a TGA licensed contract packer located in Kirrawee, NSW specialising in complimentary medi
Slide 13: Property
CVC Limited Property Property segment holds direct and in-direct exposure to property assets, including loans, preference equity and joint ventures across residential, commercial, retail and industrial positions Provides a combination of recurrent income, such as interest and associated fee income f
Slide 14: Case Study - Donnybrook Residential Rezoning
CVC Limited Case Study - Donnybrook Residential Rezoning CVC’s investment in Donnybrook will generate an anticipated profit of $49 million over 4 years Opportunity Value Add Outcome • Off-market purchase of a 206 Ha land in • The land was designated for residential • Sold approximately 35% of the la
Slide 15: Funds Management
CVC Limited Funds Management Developing revenue stream for CVC and includes investments in listed equities managers, property investment managers, debt managers and litigation funding managers CVC’s expertise across a broad range of investments permits Investment Approach investment in a number of s
Slide 16: Case Study – JAK Investment Group
CVC Limited Case Study – JAK Investment Group (“JAK”) JAK generates additional investment opportunities in which CVC and wholesale investors participate • Boutique real estate finance and investment house specialising in the provision of real estate capital solutions • 40% ownership by CVC since 201
Slide 17: Financial Information
DRAFT Financial Information 17
Slide 18: Key Highlights
CVC Limited Key Highlights Key highlights from CVC’s recent FY18 interim results are detailed below 1H FY18 NPAT of $16.6 million, up 7.7% from $15.4 million in Continuing strong performance of the listed equities portfolio 1H FY17 Private equity portfolio continued to grow with a number of Strong b
Slide 19: Pro Forma Statement of Financial Position
CVC Limited Pro Forma Statement of Financial Position Set out below is a summary of CVC’s historical consolidated statement of financial position, together with the pro forma adjustment that assumes $50 million is raised under the Offer In thousands of AUD ($) 31 Dec 2017 (Reviewed) Pro Forma 31 Dec
Slide 20: Financial Ratios and Ranking
CVC Limited Financial Ratios and Ranking Financial ratios below are based on CVC’s reviewed financial statements as at 31 December 2017 incorporating the impact of a $50 million issue of CVC Notes and associated Offer costs Actual 31 Dec 17 Ranking Existing CVC debt Facility Unaudited pro forma (rev
Slide 21: Historical Statement of Financial Performance
CVC Limited Historical Statement of Financial Performance Set out below is a summary of CVC’s historical consolidated statement of financial performance for the years ended 30 June 2016, 30 June 2017 and half year ended 31 December 2017 31 Dec 2017 (6 Month Period) In thousands of AUD ($) 30 Jun 201
Slide 22: Historical Cash Flow Statement
CVC Limited Historical Cash Flow Statement Set out below is a summary of CVC’s historical consolidated statement of cash flows for the years ended 30 June 2016, 30 June 2017 and half year ended 31 December 2017 31 Dec 2017 30 Jun 2016 30 Jun 2017 In thousands of AUD ($) (6 Month Period) (Audited) (A
Slide 23: Offer Summary
DRAFT Offer Summary 23
Slide 24: CVC Note Summary Terms
CVC Limited CVC Note Summary Terms1 Security Redeemable, unsecured convertible notes. Unless converted, redeemed earlier, or purchased by CVC and cancelled, CVC will redeem all outstanding CVC Notes on 22 June 2023 (Maturity Maturity Date). Floating interest rate equal to the sum of the 90-day BBSW
Slide 25: CVC Note Summary Terms
CVC Limited CVC Note Summary Terms Holder Exit Rights If a Change of Control Event or Delisting Event occurs, the Holder of any CVC Notes may require CVC to Redeem all (but not some) of the CVC Notes held by that Holder at their Face Value together with any Interest accrued on the CVC Notes to (but
Slide 26: CVC Note Summary Terms
CVC Limited CVC Note Summary Terms Regulatory Event This occurs where in the opinion of the Directors (having obtained an opinion from a reputable legal or accounting adviser) there is some change in the law, interpretation of the law or ASX Listing Rules, tax, or accounting regulations (after the I
Slide 27: CVC Note Summary Terms
CVC Limited CVC Note Summary Terms Delisting Events This occurs where: Ordinary Shares are no longer quoted on ASX; the CVC Notes are no longer quoted on ASX; or Ordinary Shares or CVC Notes are suspended from trading on ASX for a period of more than 20 consecutive Business Days. Default Inter
Slide 28: CVC Note Summary Terms
CVC Limited CVC Note Summary Terms Gearing Covenant CVC may only incur any Financial Indebtedness for moneys borrowed or raised pursuant to any financial accommodation that is in the ordinary course of business and the terms of which are commercial, arm's length and do not contain any unusual or one
Slide 29: Offer Overview
CVC Limited Offer Overview Use of Proceeds Indicative Timetable Announcement of CVC Notes Offer 30 May 2018 • Proceeds will be used to continue to build on the Company's diversified and actively managed portfolio of assets Institutional bookbuild 6 June 2018 • CVC’s current available capital is subs
Slide 30: Key Risks
DRAFT Key Risks 30
Slide 31: Key Risks
CVC Limited Key Risks There are risks associated with CVC’s business and risk associated with an investment in the CVC Notes and CVC, many of which are outside the control of CVC. The key risks outlined in this presentation are not exhaustive and are in summary form only, for a full list of risk fac
Slide 32: Key Risks
CVC Limited Key Risks There are risks associated with CVC’s business and risk associated with an investment in the CVC Notes and CVC, many of which are outside the control of CVC. The key risks outlined in this presentation are not exhaustive and are in summary form only, for a full list of risk fac
Slide 33: Disclaimer
CVC Limited Disclaimer This material has been prepared by CVC Limited (ABN 34 002 700 361, AFSL 239665) (CVC) for general information purposes only and must not be construed as investment advice. It does not constitute an offer to purchase any security or financial product or service referred to her
Slide 34: CVC Limited
DRAFT Sydney Office Melbourne Office CVC Limited Level 37, Gateway Level 25 ABN 34 002 700 361 1 Macquarie Place 360 Collins Street Sydney NSW 2000 Melbourne VIC 3000