2017 Annual Meeting – Summary and Results of Voting

7 Grayson Avenue, Papatoetoe, PO Box 97040, Manukau City, Manukau 2241, New Zealand
Phone 64-9-277 6000 Fax 64-9-279 4756

2017 ANNUAL MEETING

At today’s Cavalier Corporation annual meeting of shareholders, the Company provided an analysis
for the financial year ended 30 June 2017 (FY17) and a current business update.

Paul Alston, Cavalier’s CEO commented: “Cavalier’s performance in FY17 was disappointing with
Revenues and Earnings well down on the improved FY16 performance. The result reflects an
ambitious undertaking to rationalise and consolidate our manufacturing operations and realise
production efficiencies going forward. This rationalisation process was necessary to give Cavalier a
strong base to work from and while the logistical moving process was achieved on time and on
budget, realising the efficiencies and the supply disruption for immediate sales, were under-
estimated and for that I take full responsibility.

“Bedding in these changes took much longer and we are only now achieving production levels that
were planned from the rationalisation. The other significant factor that impacted FY17 and will
continue into FY18 was the collapse of the NZ wool market, which affects both our scouring joint
venture and our wool buying business.

The rationalisation challenges are now largely behind us and while they will affect the first half
performance in FY18, the second half will see the efficiency benefits coming through along with a
decrease in the cost of sales for yarn and carpets from lower wool prices”

Paul Alston continued; “Cavalier Bremworth, including Norman Ellison Carpets offer both woollen
and synthetic ranges appropriate to their target markets. While we may have initially reacted
cautiously to seismic industry changes, we now have the right offering in both fibres and we are
building capacity for the potentially market leading high-end felted product range.

“The opportunities we see in Australia in particular are significant and increasing our penetration in
that market remains a priority. Our established position in New Zealand will be staunchly defended
and our recognised history of product innovation is delivering some excellent new lines and
solutions for our customers’ flooring needs.

“Finally, we believe the recent change in Government will be positive for Cavalier. We have over 40
years of established history of manufacturing and adding value to the New Zealand wool clip with
significant regional operations and employment. We welcome the stated focus to support New
Zealand owned and operated businesses, exporters and manufacturers”

Sarah Haydon, Chairman of the Cavalier board said; “The board remains fully supportive of the
essential operational changes that we approved. The Company’s strategy remains in place and we
now look forward to completing that work, improving results and returning to profitability.

“Notwithstanding the material uncertainty regarding our future forecasts as noted in the accounts,
the Company met all our covenants in the period and we retain the support of the BNZ. The
accounts have been prepared on a going concern basis and the external auditors have concurred
with this approach. A level of uncertainty in our forecast of sales and margin remains until we really
start to deliver a track record of the profitable outcomes planned.

Sarah Haydon thanked Steve Bootten who retired at the meeting for his strong contribution to the
Company. She also signalled that at the FY18 Shareholders Meeting the board would likely seek to
increase the pool of directors’ fees, which were last adjusted to $350,000 ten years ago in 2007.

She concluded “Finally, we welcome Alan Clarke to the board. Alan will join the board on the 1
st

November as his appointment was not able to be brought to this meeting for approval due to time
conflicts with the FY17 Notice of Meeting. Alan brings extensive governance and strategic operating
experience to the board and we look forward to working with him. Alan will stand for election at the
FY18 Shareholders Meeting.”

No formal earnings guidance for FY18 was given other than the CEO and Chair both noted that the
extensive restructuring programme was now behind them and anticipated volumes are being
achieved from the plants and ongoing efficiency improvements will be realised. The impact of the
restructuring did extend beyond FY17 and into FY18 along with the collapse in the market price of
wool. Benefits were expected to flow into the second half of FY18 and as a consequence the FY18
normalised earnings result is expected to be an improvement over the FY17 result.

Shareholders passed both resolutions at the Annual Meeting, with the details of votes cast set out
in the table below:

Resolution For Against Total
Authorise Directors to fix the auditor’s
remuneration
29,514,343 32,000 29,546,343
Re-election of Dianne McAteer as a
director
29,481,180 73,307 29,554,487


Released on behalf of Cavalier Corporation Limited by Victor Tan, Company Secretary
31 October 2017

For more information regarding this release, please contact Paul Alston, Chief Executive Officer
Tel: +64 9 277 1135 Mob: +64 21 918 033