Slide 1: Investor Presentation Half Year Results 31 December 2018
1 JULY 2018 – 31 DECEMBER 2018 For personal use only Investor Presentation Financial Results 31 December 2018 Half Year Results MARCH 2019 1
Slide 2: Disclaimer
Disclaimer For personal use only Important Notice Financial amounts This Presentation (as amended) (Presentation) has been prepared and issued by CVC Limited ACN 002 700 All dollar values are in Australian Dollars (A$) and financial data is presented as at the date of this 361 (CVC). presentation un
Slide 3: CVC Results Summary
CVC Results Summary 1 JULY 2018 – 31 DECEMBER 2018 For personal use only ($6.38) $0.07 $1.58 $1.00 $30.3 $39.2 Million Cents Million Million NPAT (loss) INTERIM STATUTORY NTA UNRECOGNISED NET CASH REVENUE to shareholders DIVIDEND per share NTA PRE-TAX (Undrawn debt facility 100% franked UPLIFT of $9
Slide 4: CVC Results Summary
CVC Results Summary 1 JULY 2018 – 31 DECEMBER 2018 For personal use only CVC Limited (“CVC”) is an ASX listed diversified investment company, deploying capital across a variety of asset classes. 300+ $307 investments million 30+ years made across all industries at varying stages of development 21% M
Slide 5: CVC Business Overview
CVC Business Overview TOTAL REPORTED ASSETS AT 31 DECEMBER 2018 For personal use only Unallocated Private Equity Cash and deposits Investments in unlisted 6% businesses including pre-IPO, 12% unlisted funds and relevant Funds Management corporate assistance fees Investments in fund managers 2% 13% o
Slide 6: CVC Results Summary
CVC Results Summary 1 JULY 2018 – 31 DECEMBER 2018 For personal use only • Underlying 1H FY 2019 NPAT loss of $4.9 million; • Interest and associated fee income of $3.2 million from the provision of property finance facilities and $1.6 million from commercial debt facilities; • Payment of a fully fr
Slide 7: Listed Investments
About CVC – Listed Investments 1 JULY 2018 – 31 DECEMBER 2018 For personal use only Half Year 2018 Investment Summary • Substantial positive contributions from PBP and IDT $ 90m ($12.4m) (8.6%) • • Substantial negative contributions from BNO, INP, VLW, PRT and RZI During first 2 months of 2H FY 2019
Slide 8: Listed Investments
About CVC – Listed Investments 1 JULY 2018 – 31 DECEMBER 2018 For personal use only CVC Equity Portfolio includes the following significant investments, Creates value through active management of large strategic holdings that are with holdings and values as at 31 December 2018 identified as underval
Slide 9: Private Equity Investments
About CVC – Private Equity Investments 1 JULY 2018 – 31 DECEMBER 2018 For personal use only Half Year 2018 2019 Objectives (Cont.) • Divest from under performing / stagnant investments • $ 17.2m $ 0.1m 1 %1 • Execute synergistic acquisition of a portfolio of investments Undertake IPO’s of a number o
Slide 10: Direct Property Investments
About CVC – Direct Property Investments 1 JULY 2018 – 31 DECEMBER 2018 For personal use only Half Year 2018 Investment Summary Advancement of major planning projects including: • Marsden Park (Exhibition of PSP) $17.2m2 $ 5.6m 66%1 • Donnybrook (PSP progressed) • East Bentleigh (VPA Strategic Site)
Slide 11: Direct Property Investments
About CVC – Direct Property Investments 31 DECEMBER 2018 For personal use only Investment Portfolio Investment Philosophy When taking a direct investment in property assets, CVC seeks to capitalise from: • Rockhampton – Equity – Development • Caboolture – Equity – Development • Partner capability •
Slide 12: Direct Property Investments: Events Subsequent, Strategy, Port Macquarie Case Study
About CVC – Direct Property Investments 31 DECEMBER 2018 For personal use only Events Subsequent and Future Strategy Case Study – Port Macquarie Update on progress since 31 December 2018 Identifying Opportunity • Secured commitment from major retailed to ancho the retail centre in the • Partnered wi
Slide 13: Property Backed Lending
About CVC – Property Backed Lending 1 JULY 2018 – 31 DECEMBER 2018 For personal use only Half Year 2018 Investment Summary • Transaction flow in this segment has been strong as major banks reduce/re-weight their portfolio from certain areas of the property $52.8 m2 $ 3.6m 15.1 %1 segment and the tig
Slide 14: Property Backed Lending: Events Subsequent, Strategy, Case Studies
About CVC – Property Backed Lending 1 JULY 2018 – 31 DECEMBER 2018 For personal use only Events Subsequent and Future Strategy Case Studies Update on progress since 31 December 2018 CARRARA, QLD • Loans continue to perform in line with expectations • Deal flow is increasing with two key observations
Slide 15: Property Backed Lending
About CVC – Property Backed Lending 1 JULY 2018 – 31 DECEMBER 2018 For personal use only AUSTRALIAN COMMERCIAL PROPERTY LENDING ($bn) PROPERTY DEVELOPMENT FUNDING PYRAMID Major Bank Position Alternative Financier Opportunity Senior Bank Debt Mezzanine Debt 84% $ 26 bn 16% $ 30 bn 35% $ 56 bn 65% “Ga
Slide 16: Commercial Debt and Alternative Assets
About CVC – Commercial Debt and Alternative Assets 1 JULY 2018 – 31 DECEMBER 2018 For personal use only Half Year 2018 Investment Summary • Transaction flow in this segment has been strong as major banks reduce their $36.2m $ 1.6m 12 %1 risk and tightening available credit as a result of the Hayne r
Slide 17: Commercial Debt and Alternative Assets: Investment Opportunity
About CVC - Commercial Debt and Alternative Assets 1 JULY 2018 – 31 DECEMBER 2018 For personal use only Investment Opportunity Lowest Risk Capital Stack Australia’s corporate loan market offers attractive returns, with the bulk of funding provided to the overall corporate loan market dominated tradi
Slide 18: Commercial Debt and Alternative Assets: Investment Opportunity
About CVC - Commercial Debt and Alternative Assets 1 JULY 2018 – 31 DECEMBER 2018 For personal use only “…….a strong economy requires access to finance on reasonable terms. Over recent years there has been a needed tightening of credit standards. But the right balance needs to be struck. As lenders
Slide 19: Funds Management
About CVC – Funds Management 1 JULY 2018 – 31 DECEMBER 2018 For personal use only Half Year 2018 Investment Summary • Growth of funds management businesses, including provision of growth capital books for Bigstone Finance $ 6.1m ($0.5m) (22%1) • Support by CVC of investment vehicles, including: - Ad
Slide 20: Convertible Notes
About CVC - Convertible Notes 1 JULY 2018 – 31 DECEMBER 2018 For personal use only Summary • $60 million raised from convertible note issue on 22 June 2018: Share Price Performance - Interest rate – 3.75% over 90 day BBSW, currently 5.843%pa 2.90 103.50 - Interest paid quarterly 103.00 - Conversion
Slide 21: Driving Business Growth
Driving Business Growth 1 JULY 2018 – 31 DECEMBER 2018 For personal use only Summary Global Alternative Investments forecast to grow to 14tn by 2023 • Investment origination and increased product offerings to grow both investor appetite and Funds Under Management • CVC is growing its product offerin
Slide 22: Strategic Objectives - Progress
Strategic Objectives - Progress 1 JULY 2018 – 30 JUNE 2019 For personal use only Objective Goal Status Increase Funds Under Management Aim to increase FUM by • CVC Emerging Companies Fund, in Joint Venture with Evans and Partners, progressing $100 M during year $50 - $100 million capital raising • E
Slide 23: CVC Outlook – Full Year
CVC Outlook – Full Year 1 JULY 2018 – 31 DECEMBER 2018 For personal use only • Total dividends for FY 2019 expected to be 15 cents per share • NPAT for FY 2019 will be dependent on the performance of the ASX listed segment in the second half • Targeting to increase funds under management by a furthe