Half year report for six months ended 31 December 2016

Half Year Report
for the six months
ended 31 December 2016

Contents
1 Financial Summary
2 Directors’ Report
6 Independent Review Report
8 Condensed Consolidated Income Statement
9 Condensed Consolidated Statement of Comprehensive Income
10 Condensed Consolidated Statement of Changes in Equity
12 Condensed Consolidated Statement of Financial Position
13 Condensed Consolidated Statement of Cash Flows
15 Notes to the Financial Statements
22Disclosure of Non-GAAP Financial Information
24Corporate Directory

Cavalier Corporation – Half Year Report – 1
Unaudited
Six months
ended
31 Dec 2016
$000
Unaudited
Six months
ended
31 Dec 2015
$000
Audited
Year ended
30 June 2016
$000
Revenue$84,278$98,422$190,371
EBITDA (normalised)
1
4976,09312,275
Depreciation(1,680)(1,825)(3,352)
EBIT (normalised)
1
(1,183)4,2688,923
Net interest expense(1,489)(1,961)(3,374)
Share of profit after tax of equity-accounted investee
(normalised)
1
889852,670
Profit/(loss) before tax (normalised)
1
(2,584)3,2928,219
Tax (expense)/credit708(876)(1,906)
Profit/(loss) after tax (normalised)
1
(1,876)2,4166,313
Abnormal net gains/(losses) after tax
1
1,9071,099(3,198)
Profit after tax (GAAP)$31$3,515$3,115
Net cash flow from operating activities$(4,789)$5,661$1,904
Basic and diluted earnings per share (cents) –
based on weighted average number of shares
outstanding of 68,679,098
Normalised
1
(2.7)3.59.2
GAAP–5.14.5
Return on average shareholders’ equity (%)
Normalised
1
(2.7)%3.5%9.3%
GAAP–5.2%4.6%
Unaudited
As at
31 Dec 2016
Unaudited
As at
31 Dec 2015
Audited
As at
30 June 2016
Net tangible asset backing per share ($)$0.95$0.97$0.92
Equity to total assets (%)49.5%49.1%47.1%
Net interest-bearing debt to equity ratio38:6232:6834:66
1
Normalised is a non-GAAP (Generally Accepted Accounting Practice) measure that provides what the Directors
believe to be a more meaningful view of the underlying financial performance of the Group. A reconciliation
between GAAP and normalised earnings together with further commentary on the disclosure of non-GAAP
financial information are set out at pages 22 and 23 of the Half Year Report.
Financial Summary
For the six months ended 31 December 2016 (Unaudited)

2 – Cavalier Corporation – Half Year Report
Directors’ Report
For the six months ended 31 December 2016
Last year’s focus was debt reduction, inventory rationalisation and the restructuring of
administration and sales functions. Our focus in recent months has been significant investment
in the core business by consolidating manufacturing activities and re-invigorating the
Cavalier Bremworth brand.
The short term cost of these essential reinvestment activities has impacted the current half
year results, however they will progressively and significantly benefit the Company going
forward. Other market factors such as increased wool price and the stronger USD have also
adversely impacted the first half results.
The Group reports a break-even position for the half year (compared with $3.5m in 2015/16).
Adjusting for the abnormal gain from the scour merger of $3.7m and transitional costs relating
to the consolidation of Cavalier’s wool spinning operation of $1.8m, the normalised loss for the
first six months is $1.9m compared with a normalised gain of $2.4m last financial year.
The Directors of Cavalier Corporation present their report, including financial statements,
for the period to 31 December 2016.
FINANCIAL PERFORMANCE
Six months ended 31 December
Unaudited
2016
$000
2015
$000
Revenue$84,278$98,422
EBITDA (normalised)
1
(1,183)4,268
Net interest expense(1,489)(1,961)
Share of equity-accounted investee profit

(normalised after tax)
1
88985
Profit/(loss) before tax (normalised)
1
(2,584)3,292
Income tax708(876)
Profit/(loss) after tax (normalised)
1
(1,876)2,416
Restructuring costs and reversal of impairment

of fixed assets(1,833)(936)
Net gain on merger of equity-accounted investee3,7400
Gain on disposal of property, plant and equipment02,035
Profit after tax (GAAP)$31$3,515
Earnings per share (cents) (normalised)
1
(2.7)3.5
Earnings per share (cents) (GAAP)0.05.1
1
Normalised is a non-GAAP (Generally Accepted Accounting Practice) measure that provides what the Directors
believe to be a more meaningful view of the underlying financial performance of the Group. A reconciliation
between GAAP and normalised earnings together with further commentary on the disclosure of non-GAAP
financial information are set out at pages 22 and 23 of the Half Year Report.

Cavalier Corporation – Half Year Report – 3
FINANCIAL POSITION
The increase in net bank debt of $5.9m since the year-end reflects $6.0m of restructuring costs
and $2.1m capital gains tax payment resulting from the sale of the Sydney warehouse in the last
financial year. With these large one-off costs now behind us, debt will once again start to fall.
In January, the Company received a dividend of $3.25m from Cavalier Wool Holdings Ltd (CWH)
as a result of the scour merger, which has reduced debt.
In the last six months, management has improved the Company’s inventory profile and reduced
inventory by $8.5m. This has been achieved while it was also manufacturing the additional
inventory required to support new products in the market.
Total assets and equity have remained in line with previous year-end.
CASH FLOWS
Net cash outflows from operations were $4.8m for the first six months, reflecting the large costs
associated with the consolidation of manufacturing and the capital gains tax payment referred
to above.
SEGMENT REVIEWS
Carpet Business
The sale of the Ontera carpet tile business in 2015/16 and the associated carpet tile revenue
forgone is the main driver of the fall in revenue.
The NZ market has remained reasonably buoyant, however Australia has been much softer
than anticipated particularly in the last two months. We are working hard with our retailers
to stimulate sales.
We have now closed our Christchurch plant and moved the felting operation to Wanganui.
Woollen yarn spinning is now conducted entirely out of the Napier plant. We acknowledge
the management and staff of these operations for making this happen.
The carpet segment result for the first six months has been affected by a number of
factors including:
• Significant restructuring costs associated with the consolidation of spinning operations;
• Higher wool price compared with the previous year;
• Higher USD impacting negatively on cost of synthetic yarn purchases; and
• Increased marketing costs in respect of the new Cavalier Bremworth World of Difference
marketing campaign.

4 – Cavalier Corporation – Half Year Report
All of the above factors that have negatively impacted the six months (and the full year forecast)
will either not repeat or have turned in our favour, with the benefits to come through in 2017/18.
The significant gains from consolidating our manufacturing operations will also be progressively
realised in the 2017/18 year.
Because there is about a six month lag between the purchase of wool and the manufacture
and sale of carpet, we will not see the benefit from the current drop in wool price until 2017/18.
Conversely, the high wool price that prevailed in the previous year is adversely impacting
current profitability.
Wool Business
Our wool business comprises our wool buying operation, Elco Direct, and a 27.5% interest in
the enlarged CWH wool scouring business post its merger with the wool scouring operations of
New Zealand Wool Services International Ltd (NZWSI). This is to be compared with the 50% we
held previously in a smaller pre-merger entity.
This year, both our wool-related businesses have been adversely impacted by the dramatic drop
in wool price which has caught many in the industry by surprise and is due almost entirely to a
lack of demand out of China.
Elco Direct, like many wool traders and exporters, had to exit stocks in a falling market and
this impacted negatively on margins. The current price of wool is very low and growers are
reluctant to sell at these levels. As a result, the flow of wool has abated significantly, with a high
percentage of wool passed in at auction. Elco Direct has had three very strong years, but profits
are down in the last six months reflecting the current challenging operating environment. Once
demand returns and wool price stabilises, Elco Direct will be in a better position to buy and sell
wool at a consistent margin.
After over two years of Court proceedings, the merger of CWH with the wool scouring
operations of NZWSI was finally approved by the Court of Appeal in December. The purpose of
the merger is to safeguard the wool scouring industry in New Zealand and our reduced share in
a much bigger entity will be beneficial for the Company in the long term.
For the first six months, volume through the scour is considerably down on that for the same
period last year. The total wool clip has not changed dramatically, but at current low prices,
growers and exporters are holding off committing to selling and scouring wool. We are
confident that the wool will eventually come on to market and be scoured once pricing and
demand settle at their new levels.
The consolidation of the scouring businesses is expected to take a year to complete.
In the short term, CWH will experience some inefficiencies while equipment is being moved
and reconfigured.

Cavalier Corporation – Half Year Report – 5
EARNINGS OUTLOOK
The Directors reiterate that their forecast for 2016/17 remains unchanged. We expect the result
for 2016/17 to be close to breakeven on a normalised tax-paid basis.
2016/17 is a year of investment in the long term future of the Company, and we remain
confident that the benefits of the work done this year together with changes in the macro
environment will flow through into improved results.
DIVIDENDS
The Directors have previously advised that as soon as we are in a position to confirm an
ongoing improvement in underlying performance and we have our debt firmly under control,
we will resume dividend payments. While good progress has been made, we are not there yet.
The NZD:AUD exchange rate and the weakness in the Australian economy remain a concern to
Cavalier as an exporter. As a consequence, no dividend is being paid at this time.
For and on behalf of the Board of Directors:
S E F Haydon S R Bootten
Chairman Director
16 February 2017

6 – Cavalier Corporation – Half Year Report
Independent Review Report
TO THE SHAREHOLDERS OF CAVALIER CORPORATION LIMITED
We have completed a review of the condensed consolidated interim financial statements of
Cavalier Corporation Limited and its subsidiaries (“Group”) on pages 8 to 21 which comprise
the consolidated statement of financial position as at 31 December 2016, and the consolidated
statement of comprehensive income, statement of changes in equity and statement of cash
flows for the six months ended on that date, and a summary of significant accounting policies
and other explanatory information.
This report is made solely to the shareholders of Cavalier Corporation Limited as a body.
Our review work has been undertaken so that we might state to the Group’s shareholders those
matters we are required to state to them in the independent review report and for no other
purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to
anyone other than the Group’s shareholders as a body, for our review work, this report or any
of the conclusions we have formed.
DIRECTORS’ RESPONSIBILITIES
The Directors of Cavalier Corporation Limited are responsible for the preparation and fair
presentation of the condensed consolidated interim financial statements in accordance with
NZ IAS 34 Interim Financial Reporting and for such internal control as the Directors determine
is necessary to enable the preparation and fair presentation of the condensed consolidated
interim financial statements that are free from material misstatement, whether due to fraud
or error.
OUR RESPONSIBILITIES
Our responsibility is to express a conclusion on the condensed consolidated interim financial
statements based on our review. We conducted our review in accordance with NZ SRE 2410
Review of Financial Statements Performed by the Independent Auditor of the Entity. NZ SRE
2410 requires us to conclude whether anything has come to our attention that causes us to
believe that the financial statements are not prepared, in all material respects, in accordance
with NZ IAS 34 Interim Financial Reporting. As the auditor of Cavalier Corporation Limited,
NZ SRE 2410 requires that we comply with the ethical requirements relevant to the audit of
the annual financial statements.

Cavalier Corporation – Half Year Report – 7
A review of the condensed consolidated interim financial statements in accordance with
NZ SRE 2410 is a limited assurance engagement. The auditor performs procedures, primarily
consisting of making enquiries, primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures.
The procedures performed in a review are substantially less than those performed in an audit
conducted in accordance with International Standards on Auditing (New Zealand). Accordingly
we do not express an audit opinion on those financial statements.
Our firm has also provided other services to the Group in relation to transfer pricing tax
advice and scrutineering at the Group’s Annual Meeting of shareholders. Subject to certain
restrictions, partners and employees of our firm may also deal with the Group on normal terms
within the ordinary course of trading activities of the business of the Group. These matters have
not impaired our independence as auditors of the Group. The firm has no other relationship
with, or interest in, the Group.
CONCLUSION
Based on our review, nothing has come to our attention that causes us to believe that these
condensed consolidated interim financial statements of Cavalier Corporation Limited do not
present fairly, in all material respects, the financial position of the Group as at 31 December
2016, and of its financial performance and its cash flows for the six months ended on that date,
in accordance with NZ IAS 34 Interim Financial Reporting.
16 February 2017
Auckland

8 – Cavalier Corporation – Half Year Report
Condensed Consolidated Income Statement
Six months ended 31 December 2016 (Unaudited)
Notes
Unaudited
Six months
ended
31 Dec 2016
$000
Unaudited
Six months
ended
31 Dec 2015
$000
Revenue584,27898,422
Cost of sales(67,951)(76,555)
Gross profit16,32721,867
Other income and gains6164,327
Distribution expenses(13,978)(14,413)
Administration expenses(3,547)(3,200)
Restructuring costs(3,989)(969)
Reversal of impairment of fixed assets1,442–
Results from operating activities
(3,729)7,612
Net finance costs
(1,489)(1,961)
Share of profit of equity-accounted investee (net of tax)465724
Gain on merger and dilution of equity-accounted investee43,763–
Profit/(loss) before tax7(1,390)6,375
Tax (expense)/credit1,421(2,860)
Profit after tax for the period$31$3,515
Profit after tax attributable to:
Shareholders of Cavalier Corporation Limited313,515
Non-controlling interests––
Profit after tax for the period$31$3,515
Basic and diluted earnings per share (cents)–5.1
Weighted average number of shares outstanding during
the period (000s)68,67968,679
This statement is to be read in conjunction with the Notes on pages 15 to 21 and the previous year’s annual
financial statements.

Cavalier Corporation – Half Year Report – 9
Condensed Consolidated Statement of Comprehensive Income
Six months ended 31 December 2016 (Unaudited)
Note
Unaudited
Six months
ended
31 Dec 2016
$000
Unaudited
Six months
ended
31 Dec 2015
$000
Profit after tax for the period313,515
Other comprehensive income that may be reclassified
subsequently to profit or loss
Effective portion of changes in fair value of cash flow hedges8461,095
Net change in fair value of cash flow hedges transferred to
profit or loss121(156)
Tax on other comprehensive income(271)(263)
Share of fair value of cash flow hedges (net of tax) of equity-
accounted investee4(82)–
Foreign currency translation differences for foreign
operations(27)(89)
587587
Other comprehensive income not reclassified subsequently
to profit or loss––
Other comprehensive income for the period, net of tax587587
Total comprehensive income for the period$618$4,102
Total comprehensive income attributable to:
Shareholders of Cavalier Corporation Limited6184,102
Non-controlling interests––
Total comprehensive income for the period$618$4,102
This statement is to be read in conjunction with the Notes on pages 15 to 21 and the previous year’s annual
financial statements.

10 – Cavalier Corporation – Half Year Report
Condensed Consolidated Statement of Changes in Equity
Six months ended 31 December 2016 (Unaudited)
Share
Capital
$000
Cash Flow
Hedging
Reserve
$000
Foreign
Currency
Translation
Reserve
$000
Retained
Earnings
$000
Total
Equity
$000
Total equity at beginning of the period21,846(969)(1,425)49,90969,361
Total comprehensive income for
the period
Profit after tax–––3131
Other comprehensive income that
may be reclassified subsequently to
profit or loss
Changes in fair value of cash flow
hedges (net of tax)–696––696
Share of fair value of cash flow hedges
(net of tax) of equity-accounted
investee–(82)––(82)
Foreign currency translation differences
for foreign operations––(27)–(27)
–614(27)–
587
Other comprehensive income not
reclassified subsequently to profit
or loss–––––
Total other comprehensive income–614(27)–587
Total comprehensive income for
the period–614(27)31618
Transactions with owners, recorded
directly in equity–––––
Total equity at end of the period$21,846$(355)$(1,452)$49,940$69,979
This statement is to be read in conjunction with the Notes on pages 15 to 21 and the previous year’s annual
financial statements.

Cavalier Corporation – Half Year Report – 11
Condensed Consolidated Statement of Changes in Equity (continued)
Six months ended 31 December 2015 (Unaudited)
Share
Capital
$000
Cash Flow
Hedging
Reserve
$000
Foreign
Currency
Translation
Reserve
$000
Share
Rights
Resdrve
$000
Retained
Earnings
$000
Total
Equity
$000
Total equity at beginning
of the period21,846(1,171)(1,285)1,44845,34666,184
Total comprehensive
income for the period
Profit after tax
––––3,5153,515
Other comprehensive
income that may be
reclassified subsequently to
profit or loss
Changes in fair value of cash
flow hedges (net of tax)–676–––
676
Foreign currency translation
differences for foreign
operations––(89)––(89)
–676(89)––
587
Other comprehensive
income not reclassified
subsequently to profit
or loss––––––
Total other comprehensive
income–676(89)––587
Total comprehensive income
for the period–676(89)–3,5154,102
Transactions with owners,
recorded directly in equity––––––
Total equity at end of
the period$21,846$(495)$(1,374)
$1,448$48,861$70,286
This statement is to be read in conjunction with the Notes on pages 15 to 21 and the previous year’s annual
financial statements.

12 – Cavalier Corporation – Half Year Report
Condensed Consolidated Statement of Financial Position
As at 31 December 2016 (Unaudited)
Note
Unaudited
31 Dec 2016
$000
Audited
30 June 2016
$000
ASSETS
Property, plant and equipment37,70536,820
Intangible assets2,3622,362
Investment in equity-accounted investees423,67123,175
Deferred tax asset2,2363,496
Total non-current assets65,97465,853
Cash and cash equivalents6891,200
Trade receivables, other receivables and prepayments19,18921,723
Receivable from equity-accounted investee43,250–
Inventories49,20457,733
Derivative financial instruments754867
Tax receivable2,446–
Total current assets75,53281,523
Total assets$141,506$147,376
EQUITY
Share capital21,84621,846
Cash flow hedging reserve(355)(969)
Foreign currency translation reserve(1,452)(1,425)
Retained earnings49,94049,909
Total equity attributable to equity holders of the Company69,97969,361
LIABILITIES
Loans and borrowings743,05037,700
Employee benefits
1,2611,237
Deferred income
5584
Provisions
2,8453,140
Total non-current liabilities
47,21142,161
Trade creditors and accruals
17,77422,779
Provisions
2,0684,060
Employee entitlements
3,3454,370
Deferred income
6767
Derivative financial instruments
1,0622,132
Tax payable
–2,446
Total current liabilities
24,31635,854
Total liabilities
71,52778,015
Total equity and liabilities
$141,506$147,376
This statement is to be read in conjunction with the Notes on pages 15 to 21 and the previous year’s annual
financial statements.

Cavalier Corporation – Half Year Report – 13
Condensed Consolidated Statement of Cash Flows
Six months ended 31 December 2016 (Unaudited)
Unaudited
Six months
ended
31 Dec 2016
$000
Unaudited
Six months
ended
31 Dec 2015
$000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers86,336106,288
Payments to suppliers and employees(87,590)(99,356)
Dividends received12
Other receipts1212
GST refunded376860
Interest paid(1,442)(1,897)
Income tax paid(2,482)(248)
Net cash flow from operating activities(4,789)5,661
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of property, plant and equipment5611,355
Proceeds from sale of Ontera tile business–1,798
Acquisition of property, plant and equipment(1,176)(892)
Purchase consideration of non-controlling interests–(91)
Dividends received from equity-accounted investee–3,250
Net cash flow from investing activities(1,120)15,420
CASH FLOWS FROM FINANCING ACTIVITIES
Increase/(decrease) in bank loans and borrowings5,350(21,245)
Net cash flow from financing activities5,350(21,245)
NET DECREASE IN CASH AND CASH EQUIVALENTS(559)(164)
Cash and cash equivalents at beginning of the period1,2002,834
Effect of exchange rate changes on cash48(120)
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD$689$2,550
This statement is to be read in conjunction with the Notes on pages 15 to 21 and the previous year’s annual
financial statements.

14 – Cavalier Corporation – Half Year Report
Condensed Consolidated Statement of Cash Flows (continued)
Six months ended 31 December 2016 (Unaudited)
Six months
ended
31 Dec 2016
$000
Six months
ended
31 Dec 2015
$000
RECONCILIATION OF PROFIT WITH NET CASH FLOW
FROM OPERATING ACTIVITIES
Profit after tax for the period313,515
Add/(Deduct) non-cash and other items:
Depreciation1,6801,825
Share of profit of equity-accounted investee(65)(724)
Gain on merger and dilution of equity-accounted investee(3,763)–
Reversal of impairment of fixed assets(1,442)–
Deferred tax asset989(139)
Employee benefits24(23)
Deferred income(29)(31)
Provisions(2,212)(34)
Net gain on sale of property, plant and equipment(3)(4,313)
Net (gain)/loss on foreign currency balance(45)83
Changes in working capital items:
Trade and other receivables and prepayments2,4608,616
Inventories8,529(2,238)
Tax receivable/payable(4,892)2,751
Trade creditors and accruals(6,061)(3,932)
Derivative financial instruments10305
Net cash flow from operating activities$(4,789)$5,661
This statement is to be read in conjunction with the Notes on pages 15 to 21 and the previous year’s annual
financial statements.

Cavalier Corporation – Half Year Report – 15
Notes to the Financial Statements
For the six months ended 31 December 2016
1. GENERAL
Cavalier Corporation Limited (“Cavalier” or “the Company”) is a limited liability company
that is domiciled and incorporated in New Zealand.
The financial statements presented are for Cavalier and its subsidiaries (“the Group”) and
the Group’s investment in equity-accounted investees as at, and for the six months ended,
31 December 2016.
The Company is registered under the Companies Act 1993 and is an FMC reporting entity
for the purposes of the Financial Reporting Act 2013 and the Financial Markets Conduct Act
2013. The financial statements have been prepared in accordance with these Acts.
The principal activities of the Group comprise carpet sales and manufacturing and wool
procurement. Following the consolidation of the Group’s yarn spinning operations during the
period ended 31 December 2016, the Radford Yarn Technologies operation is now treated as
a part of the carpet business and is accordingly reported under the carpets segment.
All Group subsidiaries are wholly-owned.
The Group also has a 27.5% interest in commission woolscourer, Cavalier Wool Holdings
Limited, and a 50% interest in asset-owning entity, CWS Assets Limited.
The Company is listed on the New Zealand Exchange and is required to comply with the
provisions of the NZX Main Board Listing Rules which require it to present half-yearly reports
incorporating, amongst other things, the interim financial statements covering the Group.
The interim financial statements contained in this half-yearly report were approved for issue
by the Board of Directors of the Company on 16 February 2017.
These interim financial statements are presented in New Zealand dollars ($), which is
the Company’s functional currency. Unless otherwise indicated, all financial information
presented in New Zealand dollars has been rounded to the nearest thousand.
The interim financial statements are condensed financial statements that have been prepared
in accordance with NZ IAS 34 Interim Financial Reporting. The disclosures normally required
by other standards within New Zealand Equivalents to International Financial Reporting
Standards (NZ IFRS) to be included in a complete set of annual financial statements are not
required to be incorporated into a condensed set of interim financial statements prepared
under NZ IAS 34. As a consequence, the interim financial statements do not comply with
NZ IFRS.
The interim financial statements, and the comparative information for the six months
ended 31 December 2015, are unaudited. The comparative information as at 30 June 2016
is audited.
2. ACCOUNTING POLICIES
The accounting policies adopted in the preparation of the interim financial statements
are consistent with those adopted in the preparation of the annual financial statements
for the year ended 30 June 2016. The interim financial statements should therefore be
read in conjunction with those annual financial statements and the accounting policies
set out therein.

16 – Cavalier Corporation – Half Year Report
Notes to the Financial Statements (continued)
For the six months ended 31 December 2016
3. SEGMENT PERFORMANCE
Unaudited
CarpetsWool AcquisitionTotal
Six months
ended
31 Dec 2016
$000
Six months
ended
31 Dec 2015
Restated
$000
Six months
ended
31 Dec 2016
$000
Six months
ended
31 Dec 2015
$000
Six months
ended
31 Dec 2016
$000
Six months
ended
31 Dec 2015
Restated
$000
External revenue71,23880,76313,04017,65984,27898,422
Inter-segment revenue––2,5304,3142,5304,314
Total revenue$71,238$80,763$15,570$21,97386,808102,736
Elimination of inter-segment revenue(2,530)(4,314)
Consolidated revenue$84,278$98,422
Segment result before depreciation,
restructuring costs and gain on sale of property
9545,9973447901,2986,787
Depreciation(1,620)(1,771)(60)(54)(1,680)(1,825)
Segment result before restructuring costs
and gain on sale of property(666)4,226284736(382)4,962
Restructuring costs(3,989)(969)––(3,989)(969)
Gain on sale of property–4,313–––4,313
Reversal of impairment of fixed assets1,442–––1,442–
Segment result after restructuring costs(3,213)7,570284736(2,929)8,306
Elimination of inter-segment profits
–(44)
Unallocated corporate costs(800)(650)
Results from operating activities(3,729)7,612
Net finance costs(1,489)(1,961)
Share of profit of equity-accounted investee
(net of tax)
65724
Gain on merger and dilution of equity-
accounted investee
3,763–
Profit/(Loss) before tax(1,390)6,375
Tax (expense)/credit1,421(2,860)
Profit after tax for the period$31$3,515
Employee numbers
Operations
4805222932509554
Unallocated44
Total513558
Capital expenditure1,05281612476$1,176$892

Cavalier Corporation – Half Year Report – 17
3. SEGMENT PERFORMANCE
Unaudited
CarpetsWool AcquisitionTotal
Six months
ended
31 Dec 2016
$000
Six months
ended
31 Dec 2015
Restated
$000
Six months
ended
31 Dec 2016
$000
Six months
ended
31 Dec 2015
$000
Six months
ended
31 Dec 2016
$000
Six months
ended
31 Dec 2015
Restated
$000
External revenue71,23880,76313,04017,65984,27898,422
Inter-segment revenue––2,5304,3142,5304,314
Total revenue$71,238$80,763$15,570$21,97386,808102,736
Elimination of inter-segment revenue(2,530)(4,314)
Consolidated revenue$84,278$98,422
Segment result before depreciation,
restructuring costs and gain on sale of property
9545,9973447901,2986,787
Depreciation(1,620)(1,771)(60)(54)(1,680)(1,825)
Segment result before restructuring costs
and gain on sale of property(666)4,226284736(382)4,962
Restructuring costs(3,989)(969)––(3,989)(969)
Gain on sale of property–4,313–––4,313
Reversal of impairment of fixed assets1,442–––1,442–
Segment result after restructuring costs(3,213)7,570284736(2,929)8,306
Elimination of inter-segment profits
–(44)
Unallocated corporate costs(800)(650)
Results from operating activities(3,729)7,612
Net finance costs(1,489)(1,961)
Share of profit of equity-accounted investee
(net of tax)
65724
Gain on merger and dilution of equity-
accounted investee
3,763–
Profit/(Loss) before tax(1,390)6,375
Tax (expense)/credit1,421(2,860)
Profit after tax for the period$31$3,515
Employee numbers
Operations
4805222932509554
Unallocated44
Total513558
Capital expenditure1,05281612476$1,176$892

18 – Cavalier Corporation – Half Year Report
Notes to the Financial Statements (continued)
For the six months ended 31 December 2016
3. SEGMENT PERFORMANCE (continued)
CarpetsWool AcquisitionTotal
Unaudited
As at
31 Dec 2016
$000
Audited
As at
31 June 2016
Restated
$000
Unaudited
As at
31 Dec 2016
$000
Audited
As at

30 June 2016
$000
Unaudited
As at
31 Dec 2016
$000
Audited
As at

30 June 2016
$000
Reportable segment assets115,052120,2292,7833,972117,835124,201
Investment in equity-accounted investees23,67123,175
Total assets$141,506$147,376
Reportable segment liabilities26,67237,4501,8052,86528,47740,315
Unallocated liabilities43,05037,700
Total liabilities$71,527$78,015
The Group’s reportable segments are:
• carpets, which comprises the sales and manufacturing of carpets and the felted yarn spinning
activities previously reported under Radford Yarn Technologies (hence the comparatives are
marked as “Restated” where relevant); and
• wool acquisition.
Inter-segment transactions
All inter-segmental sales are at market prices. Inter-segmental sales during the period and
intercompany profits on stocks at balance date are eliminated on consolidation.
Information about geographical areas
In presenting information on the basis of geographical areas, revenue is based on the
geographical location of customers and non-current assets are based on the geographical
location of those assets.
Six months
ended
31 Dec 2016
$000
Six months
ended
31 Dec 2015
$000
Revenue
New Zealand47,13851,803
Australia32,39242,108
Rest of the world4,7484,511
$84,278$98,422
As at
31 Dec 2016
$000
As at
30 June 2016
$000
Non-current assets
New Zealand63,62363,421
Australia2,3512,432
$65,974$65,853
Information about major customers
None of the Group’s customers are major customers as defined in NZ IFRS 8 Operating
Segments. Major customers are those external customers where revenues from transactions with
the Group are equal to, or exceed, 10% of the Group’s total revenues.

Cavalier Corporation – Half Year Report – 19
3. SEGMENT PERFORMANCE (continued)
CarpetsWool AcquisitionTotal
Unaudited
As at
31 Dec 2016
$000
Audited
As at
31 June 2016
Restated
$000
Unaudited
As at
31 Dec 2016
$000
Audited
As at

30 June 2016
$000
Unaudited
As at
31 Dec 2016
$000
Audited
As at

30 June 2016
$000
Reportable segment assets115,052120,2292,7833,972117,835124,201
Investment in equity-accounted investees23,67123,175
Total assets$141,506$147,376
Reportable segment liabilities26,67237,4501,8052,86528,47740,315
Unallocated liabilities43,05037,700
Total liabilities$71,527$78,015

20 – Cavalier Corporation – Half Year Report
Notes to the Financial Statements (continued)
For the six months ended 31 December 2016
4. EQUITY-ACCOUNTED INVESTEES
The Group’s equity-accounted investee, Cavalier Wool Holdings Limited (CWH), acquired
Whakatu Wool Scour Limited and Kaputone Wool Scour (1994) Limited from New Zealand
Wool Services International Limited (NZWSI) effective 31 December 2016 as part of the
merger of CWH and the woolscouring operations of NZWSI. Part of the consideration for
the purchase of the two entities involved the issue of new shares by CWH to NZWSI, diluting
the Group’s interest in CWH from 50% to 27.5% as at that date.
In accounting for the dilution of the Group’s interest in CWH as at 31 December 2016, the
Group recognised a gain of $3,763,000, being the difference between the carrying amount
of the investment in CWH immediately before and after the merger transaction that led to
the dilution of its interest in CWH.
CWH declared, in the lead-up to the effective date of the merger, a cash dividend of
$6.5 million which was paid on 20 January 2017. The Group’s share of this dividend of
$3.25 million was recorded as a receivable from equity-accounted investee at balance date.
CWH also declared, at the same time, a distribution in specie of shares with a fair value of
$3.4 million in CWS Assets Limited (CWSA) to the CWH shareholders, effectively reducing
the carrying value of the Group’s investment in CWH by $1.7 million while increasing the
carrying value of the Group’s investment in CWSA by the same amount.
The details relating to the Group’s interest in equity-accounted investees are set out below:
Six months
ended
31 Dec 2016
$000
Six months
ended
31 Dec 2015
$000
Carrying value as at 1 July23,17524,937
Share of profit after tax65724
Share of changes in fair value of cash flow hedges (net of tax)(82)–
Dividends received(3,250)(3,250)
Dividend in specie received(1,700)–
Carrying value of CWSA1,700–
Gain on merger and dilution3,763–
Carrying value as at 31 December$23,671$22,411
5. REVENUE
Six months
ended
31 Dec 2016
$000
Six months
ended
31 Dec 2015
$000
Sales of goods84,13298,321
Provision of installation services146101
Total revenue$84,278$98,422

Cavalier Corporation – Half Year Report – 21
Notes to the Financial Statements (continued)
For the six months ended 31 December 2016
6. OTHER INCOME AND GAINS
Six months
ended
31 Dec 2016
$000
Six months
ended
31 Dec 2015
$000
Rentals received1212
Dividends received12
Net gain on disposal of property, plant and equipment34,313
Total other income and gains$16$4,327
7. LOANS AND BORROWINGS
It is the considered view of the Directors that no material uncertainty exists in the Group’s
ability to deliver on its profit improvement programme. The realisation of gains expected
from the Group’s reinvestment in the core business has taken longer than expected and
consequently, the Company revised its banking covenants to reflect this.
8. EXPENSES
Profit/(Loss) before tax includes the following:
Six months
ended
31 Dec 2016
$000
Six months
ended
31 Dec 2015
$000
Depreciation1,6801,825
Operating lease and rental costs1,9162,077
9. CAPITAL EXPENDITURE COMMITMENTS
As at
31 Dec 2016
$000
As at
30 June 2016
$000
Capital expenditure commitments
–12
10. CONTINGENT LIABILITIES
As at
31 Dec 2016
$000
As at
30 June 2016
$000
Bank guarantees in respect of operating leases and
other commitments
1,3471,335
11. RELATED PARTY TRANSACTIONS
Equity-accounted investee
Cavalier Wool Holdings Limited (CWH), the Group’s equity-accounted investee, provides
the Group’s carpet operations with wool scouring services, whether directly or through wool
exporters from whom the Group purchases most of its wool.
The value of services contracted directly with CWH during the six months ended
31 December 2016 was $249,000 (six months ended 31 December 2015 $370,000).
Dividends declared by CWH during the six months ended 31 December 2016 are disclosed
in Note 4. Dividends totaling $3,250,000 were received from CWH during the six months
ended 31 December 2015.

22 – Cavalier Corporation – Half Year Report
Disclosure of Non-GAAP Financial Information
For the six months ended 31 December 2016
The Half Year Report for the six months ended 31 December 2016 contains financial information
that is non-GAAP (Generally Accepted Accounting Practice) and therefore falls within the
Financial Markets Authority’s guidance note on “Disclosing non-GAAP financial information”
issued in September 2012.
Non-GAAP financial information has been prepared using the unaudited GAAP-compliant
half year and audited GAAP-compliant full year financial statements of the Group.
Non-GAAP financial information contained within the Half Year Report (more particularly,
the non-GAAP measures of financial performance such as “EBITDA (normalised)”, “EBIT
(normalised)”, “Profit before tax (normalised)” and “Profit after tax (normalised)” provide
useful information to investors regarding the performance of the Group because the calculations
exclude restructuring costs and other gains/losses (for example, gain on sale of property) that
are not expected to occur on a regular basis either by virtue of quantum or nature.
In arriving at this view, the Directors have also taken cognisance of the regular requests by users
of the Group financial statements, including analysts and shareholders, regarding the nature and
quantum of significant items within the GAAP-compliant results and the way analysts distinguish
between GAAP and non-GAAP measures of profit.
The disclosure of the non-GAAP financial information is also consistent with how the financial
information for the Group is reported internally, and reviewed by the Chief Executive Officer
as its chief operating decision maker, and provides what the Directors and management
believe gives a more meaningful insight into the underlying financial performance of the Group
and a better understanding of how the Group is tracking after taking into account these
significant items.
In putting together the Half Year Report, the Directors have taken into account all of the
requirements within the guidance note. More specifically, these include:
• outlining why non-GAAP financial information is useful;
• ensuring that:
– no undue prominence, emphasis or authority is given to any non-GAAP financial
information;
– non-GAAP financial information is appropriately labelled;
– the calculation of non-GAAP financial information is clearly explained; and
– a reconciliation between non-GAAP and GAAP financial information is provided
(see below);
• applying a consistent approach from period to period and ensuring that comparatives are
similarly adjusted for consistency;
• ensuring that non-GAAP financial information is unbiased and taking care when describing,
or referring to, items as “one-off” or “non-recurring”; and
• identifying the source of non-GAAP financial information

Cavalier Corporation – Half Year Report – 23
Disclosure of Non-GAAP Financial Information (continued)
For the six months ended 31 December 2016
Reconciliation of GAAP-compliant to non GAAP-compliant measures of profit/(loss) after tax
Six months ended 31 Dec 2016
GAAP
$000
Adjustments
$000
Normalised
$000
Revenue$84,278–$84,278
EBITDA(2,049)2,546497
Depreciation(1,680)–(1,680)
EBIT(3,729)2,546(1,183)
Net interest expense(1,489)–(1,489)
Share of profit after tax of equity-accounted investee652388
Gain on merger and dilution of equity-accounted investee3,763(3,763)–
Loss before tax
(1,390)(1,194)(2,584)
Tax credit
1,421(713)708
Profit/(Loss) after tax
$31(1,907)(1,876)
Abnormal net gains after tax1,9071,907
Profit after tax (GAAP)–$31
Analysis of adjustments
Profit/(Loss)
before tax
$000
Ta x
effect
$000
Profit/(Loss)
after tax
$000
Restructuring costs(3,988)1,117(2,871)
Reversal of impairment of fixed assets1,442(404)1,038
Scour merger costs(23)–(23)
Gain on merger and dilution of equity-accounted investee3,763–3,763
Net$1,194$713$1,907
Analysis of adjustments
Six months ended 31 Dec 2015
Profit/(Loss)
before tax
$000
Ta x
effect
$000
Profit/(Loss)
after tax
$000
Restructuring costs
(969)294(675)
Scour merger costs(261)–(261)
Gain on sale of property4,313(2,278)2,035
Net$3,083$(1,984)$1,099

24 – Cavalier Corporation – Half Year Report
Corporate Directory
Board of Directors:
Grant Biel B.E. (Mech.) Member of Audit, Remuneration and Nomination
Non-independent Committees
Steve Bootten ACA, FCIS, FCIM, MInstD Chairman of Audit Committee
Independent Member of Remuneration and Nomination
Committees
Sarah Haydon B.Sc., FCA, CMInstD Chairman of the Board of Directors
Independent Chairman of Nomination Committee
Member of Audit and Remuneration Committees
Dianne McAteer B.Com., MBA, CMInstD Member of Audit, Remuneration and Nomination
Independent Committees
John Rae B.Com., LLB, CMInstD Deputy Chairman of the Board of Directors
Independent Chairman of Remuneration Committee
Member of Audit and Nomination Committees
Chief Executive Officer:
Paul Alston BBS, CA
Company Secretary:
Victor Tan CA, FCIS
Founding Shareholder:
The late Anthony Charles Timpson ONZM
Registered Office:
7 Grayson Avenue, Auckland 2014, P O Box 97-040, Auckland 2241.
Telephone: 64-9-277 6000, Facsimile: 64-9-279 4756
Share Registrar:
Computershare Investor Services Limited
Level 2, 159 Hurstmere Road, Auckland 0622, Private Bag 92-119, Auckland 1142.
Telephone: 64-9-488 8700, Facsimile: 64-9-488 8787, Investor Enquiries: 64-9-488 8777
Auditors:
KPMG
Legal Advisors:
Russell McVeagh

Cavalier Corporation – Half Year Report – 25
Bankers:
Bank of New Zealand National Australia Bank Limited
Websites:
Corporate www.cavcorp.co.nz
Carpet Operation www.cavbrem.co.nz, www.cavbrem.com.au,
www.normanellison.co.nz, www.normanellison.com.au
www.radfordyarn.com
Wool Operation www.elcodirect.co.nz
Share Registrar www.computershare.co.nz/investorcentre