Slide 1: Financial Results Year Ended 30 June 2018
For personal use only FINANCIAL RESULTS YEAR ENDED 30 JUNE 2018 INVESTOR PRESENTATION May 2018 [ CVC Limited | 2018 Investor Presentation ]
Slide 2: Disclaimer
Disclaimer For personal use only Important Notice Financial amounts This Presentation (Presentation) has been prepared and issued by CVC Limited ACN 002 700 361 (CVC). All dollar values are in Australian Dollars (A$) and financial data is presented as at the date of this presentation unless stated o
Slide 3: CVC Result Highlights
CVC Result Highlights For personal use only 1 July 2017 – 30 June 2018 $22.7M $0.15 $1.71 $1.00 $68.5M $65.2M NPAT DIVIDEND STATUTORY NTA UNRECOGNISED NET CASH REVENUE to shareholders 100% franked Per Share NTA PRE-TAX (Cash of $71.1M less at UPLIFT1 call debt of $2.6M) 1. Refer commentary on slide
Slide 4: CVC Result Highlights
CVC Result Highlights For personal use only 1 July 2017 – 30 June 2018 • Underlying FY18 NPAT of $27.1 million • Significantly increased value of property portfolio with improved terms for Marsden Park / Mirvac PDA and progress on construction, planning and • FY18 NPAT to shareholders of $22.7 milli
Slide 5: CVC Overview
CVC Overview For personal use only 1 July 2017 – 30 June 2018 CVC Limited (“CVC”) is an ASX listed diversified investment company, deploying capital across a variety of asset classes 300+ $318 investments million 30+ made across all industries at varying stages of development 22% Market Capitalisati
Slide 6: CVC Track Record
CVC Track Record For personal use only 1 July 2017 – 30 June 2018 Total Shareholder Return Since 30 June 1998 Total Shareholder Return since 30 June 1998 $4.50 $450,000 $4.00 $400,000 $3.50 $350,000 $3.00 $300,000 $2.50 $2.00 $250,000 $1.50 $200,000 $1.00 $150,000 $0.50 $100,000 $0.00 30/06/1998 30/
Slide 7: CVC Business Overview
CVC Business Overview For personal use only Total reported assets at 30 June 2018 Private Equity Unallocated Investments in unlisted Cash and deposits businesses including pre-IPO, 6% unlisted funds and relevant 5% corporate assistance fees Funds Management 24% Investments in listed equities Commerc
Slide 8: CVC Note Raising Rationale
CVC Note Raising Rationale For personal use only 1 July 2017 – 30 June 2018 • Surplus cash balances from H1 FY18 deployed during H2 FY18 • Increasing quality of deal flow and opportunities to deploy capital at return rates below historical target of >15% return - but which are accretive to sharehold
Slide 9: Listed Investments
About CVC – Listed Investments For personal use only 1 July 2017 – 30 June 2018 2018 Return Investment Highlights and Objectives • Substantial positive contributions from PBP, TLX, EDC, CYC, TOT, BNO, MSV, SEA $ 105m $ 14.9m 20% • Substantial negative contributions from INP, UBI, TFL, PRT, IDZ Inves
Slide 10: Listed Investments
About CVC – Listed Investments For personal use only 1 July 2017 – 30 June 2018 CVC Equity Portfolio includes the following investments, with holdings and values as at 30 June 2018 • Creates value through active management of large strategic holdings that are identified CVC Top 20 Holdings as underv
Slide 11: Private Equity => ASX – South Pack Case Study
Private Equity => ASX – South Pack Case Study For personal use only 1 July 2017 – 30 June 2018 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 packe
Slide 12: Direct Property Investments
About CVC – Direct Property Investments For personal use only 1 July 2017 – 30 June 2018 2018 Return Highlights Advancement of major planning projects including: • $ 19.1m 2 $ 15.6m 79% 1 • • Marsden Park (Exhibition of PSP) Donnybrook (PSP progressed) East Bentleigh (VPA Strategic Site) Invested Pr
Slide 13: Direct Property Investments
About CVC – Direct Property Investments For personal use only 1 July 2017 – 30 June 2018 Investment Philosophy When taking a direct investment in property assets, CVC seeks to capitalise from: • Partner capability • Capital protection / limit downside • Asset mispricing • Rockhampton – Development •
Slide 14: Direct Property Investments
About CVC – Direct Property Investments For personal use only 1 July 2017 – 30 June 2018 CVC has a strong property portfolio at various stages through the reposition / planning phase Project State Style Location Status Forecast Proposed Land Use Outcome Date Kingsgrove NSW Option South West Sydney P
Slide 15: Direct Property Investments: Portfolio Investments
About CVC – Direct Property Investments For personal use only 1 July 2017 – 30 June 2018 Portfolio Investments DONNYBROOK Investment Commencement 2014 CVC Ownership 49% in partnership with Villa World Limited Investment Strategy Rezoning of Urban Growth Zone land to residential land Current Status P
Slide 16: Direct Property Investments: Portfolio Investments
About CVC – Direct Property Investments For personal use only 1 July 2017 – 30 June 2018 Portfolio Investments MARSDEN PARK Investment Commencement 2012 CVC Ownership 66% in partnership with private developer Investment Strategy Rezoning of rural land to greenfield residential development Current St
Slide 17: Property Backed Lending
About CVC – Property Backed Lending For personal use only 1 July 2017 – 30 June 2018 2018 Return Investment Philosophy • CVC has a long and successful track record of providing secured $ 40.7m $ 8.6m 22% 1 • property finance to developers and investors. It has been active in this space for over 20 y
Slide 18: Property Backed Lending
About CVC – Property Backed Lending For personal use only 1 July 2017 – 30 June 2018 AUSTRALIAN COMMERCIAL PROPERTY LENDING PROPERTY DEVELOPMENT FUNDING PYRAMID ($bn) Major Bank Position Alternative Financier Opportunity Senior Bank Debt Mezzanine Debt 84% $ 26 bn 16% $ 30 bn 35% $ 56 bn 65% “Gap” f
Slide 19: Property Backed Lending: Portfolio Investments
About CVC – Property Backed Lending For personal use only 1 July 2017 – 30 June 2018 Portfolio Investments Palm Beach, QLD East Bentleigh, VIC • Stretch Senior Finance Facility Subject Site • Mezzanine Finance Facility • Peak Forecast LVR: 70% • Peak Forecast LVR: 70% • Forecast Investment IRR: 15%
Slide 20: Private Equity Investments
About CVC – Private Equity Investments For personal use only 1 July 2017 – 30 June 2018 2018 Return Highlights • Sale of CVC investment in South Pack Laboratories (Aust) Pty Ltd during the financial year to Probiotec Limited (ASX: PBP). $ 18.5m $ 0.8m 4% 1 • Acted as joint underwriter of a capital r
Slide 21: Private Equity Case Study
About CVC – Private Equity Case Study For personal use only 1 July 2017 – 30 June 2018 CLEANSPACE® IS A BREAK THROUGH TECHNOLOGY FOR PERSONAL PROTECTION DEVICES & CONSUMABLES • Founded by a team of biomedical engineers from ResMed in 2009. • Advanced technology in low innovating large stable markets
Slide 22: Private Equity
About CVC – Private Equity For personal use only 1 July 2017 – 30 June 2018 Highlights • Sale of CVC’s investment in South Pack Laboratories (Aust) during the financial year to Probiotec Limited (ASX: PBP) for a combination of cash and scrip • Telix Pharmaceuticals IPO in January 2017: 3.7x return o
Slide 23: Alternative Assets/Debt
About CVC –Alternative Assets/Debt For personal use only 1 July 2017 – 30 June 2018 2018 Return Investment Philosophy • CVC has the ability to provide flexible funding solutions for private $ 14.6m $ 1.4m 12% 1 • equity investments which include ordinary debt and convertible notes This is achieved t
Slide 24: Funds Management
About CVC – Funds Management For personal use only 1 July 2017 – 30 June 2018 2018 Return Highlights • Growth of funds management businesses, including provision of seed and growth capital for: $ 3.9m $ 0.5m 22% 1 • • Australian Invoice Finance Limited; and Bigstone Capital Pty Limited invested prof
Slide 25: Funds Management
About CVC – Funds Management For personal use only 1 July 2017 – 30 June 2018 Highlights: • CVC’s expertise across a broad range of investments permits • CVC makes investments through its funds management business investment in a number of strategies utilising the same investment approach as listed
Slide 26: Funds Management
About CVC – Funds Management For personal use only 1 July 2017 – 30 June 2018 PORTFOLIO INVESTMENT • Boutique Real Estate Finance and Investment House • Established in 2011 by founders Adam Jane and Daniel Knights (ex-Macquarie Group executives) • CVC Ownership 40% • Provides wholesale investors wit
Slide 27: CVC Board of Directors
CVC Board of Directors For personal use only 1 July 2017 – 30 June 2018 John Read Alexander (Sandy) Beard Ian Campbell Chairman Managing Director Independent Director • Experienced Chairman and Director in • Joined CVC in 1991 as Group Financial • 30 years experience as a former partner with public,
Slide 28: CVC Management Team
CVC Management Team For personal use only 1 July 2017 – 30 June 2018 John Hunter Mark Avery Jufri Abidin Christian Jensen Chief Financial Officer Property Manager Investment Manager Investment Manager • Joined CVC in 2006 and has overseen the • Responsible for the group’s real estate • Jufri takes a
Slide 29: CVC Outlook
CVC Outlook For personal use only 1 July 2017 – 30 June 2018 • Dividend for FY19 not less than 15 cents per share • NPAT expected to be not dissimilar to FY18 subject to market conditions and timing of investment realisations • Targeting to increase funds under management by approximately $100 milli