Half year report for six months ended 31 December 2017

Half Year Report 2018

Contents
1 Financial Summary
2 Directors’ Report
5 Condensed Consolidated Income Statement
6 Condensed Consolidated Statement of Comprehensive Income
7 Condensed Consolidated Statement of Changes in Equity
9 Condensed Consolidated Statement of Financial Position
10 Condensed Consolidated Statement of Cash Flows
12 Notes to the Financial Statements
20 Disclosure of Non-GAAP Financial Information
23 Corporate Directory

Cavalier Corporation – Half Year Report 2018 – 1
Unaudited
Six months
ended
31 Dec 2017
$000
Unaudited
Six months
ended
31 Dec 2016
$000
Audited
Year ended
30 Jun 2017
$000
Revenue$75,316$84,278$156,120
EBITDA (normalised)
1
4,4184972,572
Depreciation(1,806)(1,680)(3,251)
EBIT (normalised)
1
2,612(1,183)(679)
Net interest expense(1,504)(1,489)(2,936)
Share of profit after tax of equity-accounted investee
(normalised)
1
38188797
Profit/(loss) before tax (normalised)
1
1,489(2,584)(2,818)
Tax (expense)/credit(341)708962
Profit/(loss) after tax (normalised)
1
1,148(1,876)(1,856)
Abnormal net gains/(losses) after tax
1
(140)1,907(268)
Profit/(loss) after tax (GAAP)$1,008$31$(2,124)
Net cash flow from operating activities$7,542$(4,789)$(5,373)
Basic and diluted earnings per share (cents) –
based on weighted average number of shares
outstanding of 68,679,098
Normalised
1
1.7(2.7)(2.7)
GAAP1.5–(3.1)
Return on average shareholders’ equity (%)
Normalised
1
1.7%(2.7%)(2.7%)
GAAP1.5%–(3.1%)
Unaudited
As at
31 Dec 2017
Unaudited
As at
31 Dec 2016
Audited
As at
30 Jun 2017
Net tangible asset backing per share ($)$0.97$0.98$0.95
Equity to total assets (%)53.1%49.5%48.9%
Net interest-bearing debt to equity ratio33:6738:6237:63
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 20 to 22 of the Half Year Report.
Financial Summary
For the six months ended 31 December 2017 (Unaudited)

2 – Cavalier Corporation – Half Year Report 2018
Directors’ Report
For the six months ended 31 December 2017
The Directors report improved half year performance for Cavalier Corporation Limited (NZX:
CAV), with a lift in profit, improved cash flows and a stronger financial position. This follows the
consolidation programme undertaken in the previous year and reflects better margins, reduced
costs and a more efficient manufacturing operation.
For the six months ended 31 December 2017, Earnings Before Interest Tax and Depreciation was
$4.4 million (HY17: $2.0 million loss) and Net Profit After Tax (NPAT) was $1.0 million (HY17: NIL).
Normalised NPAT for HY18 was $1.15 million after adding back a $0.15 million non-cash charge
for restructuring costs. This compares to the previous first half year normalised Net Loss After
Tax of $(1.9) million which excluded net abnormal gains of $1.9 million, including a $3.8 million
non-cash valuation gain made on Cavalier’s interest in the Cavalier Wool Holdings (CWH)
scouring joint venture investment.
Revenue for the period was $75.3 million (HY17: $84.3 million) reflecting reduced carpet sales in
the first half due to market conditions and supply challenges that arose from the manufacturing
rationalisation, and a materially lower wool price which impacted the revenues of Cavalier’s
wool buying business, Elco Direct.
The Directors of Cavalier Corporation present their report, including financial statements,
for the period to 31 December 2017.
FINANCIAL PERFORMANCE
Six months ended 31 December
Unaudited
2017
$000
2016
$000
Revenue$75,316$84,278
EBIT (normalised)
1
2,612(1,183)
Net interest expense(1,504)(1,489)
Share of equity-accounted investee profit
(normalised after tax)
1
38188
Profit/(loss) before tax (normalised)
1
1,489(2,584)
Income tax(341)708
Profit/(loss) after tax (normalised)
1
1,148(1,876)
Restructuring costs(140)(2,894)
Reversal of impairment of fixed assets01,038
Gain on merger of equity-accounted investee03,763
Profit after tax (GAAP)$1,008$31
Earnings per share (cents) (normalised)
1
1.7(2.7)
Earnings per share (cents) (GAAP)1.50.0
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 20 to 22 of the Half Year Report.

Cavalier Corporation – Half Year Report 2018 – 3
More favourable macro-economic conditions, including the lower wool price starting to flow
through the carpet business, and a significantly reduced cost base, have assisted performance
– with more gains expected in the second half of the year. Manufacturing costs from FY17 which
flowed into the first six months of FY18 will also not repeat in the second half.
Despite taking longer to execute and costing more than planned, the benefits of the essential
investment made to consolidate manufacturing in FY17 are starting to be realised.
FINANCIAL POSITION
Cavalier’s financial position improved during the six months to 31 December 2017, with equity
to total assets of 53.1% and net interest bearing debt to equity ratio of 33:67 as at that date
(30 June 2017: 48.9% and 37:63 respectively).
Total assets employed in the business were down largely as a result of the control on capital
expenditure and the reduction in inventory by almost $5 million.
These, together with improved profitability, enabled Cavalier to reduce debt and strengthen
its financial position.
CASH FLOWS
Cash flow from operations of $7.5 million for the six months ended 31 December 2017 is
a significant improvement on the negative cash flow of $(4.8) million the previous year,
attributable to improved profitability and the fact that the previous year’s cash flow was
impacted by the cash costs associated with the restructuring of manufacturing and a capital
gains tax payment from the sale of property in FY16.
As a consequence, Cavalier was able to reduce net bank debt by $7.0 million, to $33.3 million,
during the period.
CARPET BUSINESS
On the back of the challenging consolidation project in FY17, good progress has been made
on the manufacturing side of the carpet business with effective cost controls in place and
increased manufacturing throughput and productivity at the felting plant in Wanganui and the
tufting plant in Auckland. However, there still remains work to do to hit optimum performance
and efficiency, particularly at the spinning plant in Napier. This remains a key focus for Cavalier’s
Board and Management team.
On the sales side there has been a softening in overall revenue, in part due to a loss of confidence
in supply, which came as a result of challenges with the manufacturing consolidation in FY17.
With much improved supply, the business is now moving quickly to work with retailers to
reinstil confidence and stimulate sales.
Encouragingly there has been a lift in sales of high end, high margin Cavalier Bremworth
wool products.

4 – Cavalier Corporation – Half Year Report 2018
Directors’ Report (continued)
For the six months ended 31 December 2017
WOOL BUSINESS
While the materially lower wool price is positively impacting the carpet business it is the cause
of the reduction in revenue of Cavalier’s wool buying business, Elco Direct.
Despite the lower revenue, Elco Direct recorded improved earnings on the back of improved
margins, with volume and operating expenses largely unchanged.
The Company’s share of earnings of its 27.5% owned wool scouring business, CWH, was also up
as a result of the modest improvement in operating conditions.
OUTLOOK
There remains much to do to realise long term sustainable growth for Cavalier. However,
the HY18 results are showing the positive progress that is being made.
The last 18 months have been about making tough decisions to right size and reset the
Company’s manufacturing base as well as critically invest in the hero Cavalier Bremworth brand.
The Company is also listening carefully to its retail partners and customers and now has a clear
path forward as a quality focused carpet manufacturer.
It is with that in mind that the Directors expect to see a return to sustainable and profitable
growth, with steady and on-going improvements in the second half of FY18 and beyond.
DIVIDENDS
As per previous guidance, dividends will resume when Cavalier returns to sustained levels of
profitability and has its bank debt firmly under control.
It is clear that the Company is now on the right path towards this, but not yet in a position to
pay dividends.
BOARD SUCCESSION
As the Company moves forward into the next stage of implementing its transformation strategy,
the Directors are pleased to announce that Alan Clarke will become Chairman of the Board on
1 April 2018. Sarah Haydon, Chairman since 2015, and a director since 2012, will take over the
role of Chairman of the Audit Committee on that date.
For and on behalf of the Board of Directors:
S E F Haydon J M Rae
Chairman Director
14 March 2018

Cavalier Corporation – Half Year Report 2018 – 5
Condensed Consolidated Income Statement
Six months ended 31 December 2017 (Unaudited)
Notes
Unaudited
Six months
ended
31 Dec 2017
$000
Unaudited
Six months
ended
31 Dec 2016
$000
Revenue675,31684,278
Cost of sales(57,914)(67,951)
Gross profit17,40216,327
Other income and gains77616
Distribution expenses(11,806)(13,978)
Administration expenses(3,060)(3,547)
Restructuring costs–(3,989)
Reversal of impairment of fixed assets–1,442
Results from operating activities
2,612(3,729)
Net finance costs
(1,504)(1,489)
Share of profit of equity-accounted investee (net of tax)524165
Gain on merger and dilution of equity-accounted investee5–3,763
Profit/(loss) before tax81,349(1,390)
Tax (expense)/credit(341)1,421
Profit after tax for the period$1,008$31
Profit after tax attributable to:
Shareholders of Cavalier Corporation Limited1,00831
Non-controlling interests––
Profit after tax for the period$1,008$31
Basic and diluted earnings per share (cents)1.5–
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 12 to 19 and the previous year’s annual
financial statements.

6 – Cavalier Corporation – Half Year Report 2018
Condensed Consolidated Statement of Comprehensive Income
Six months ended 31 December 2017 (Unaudited)
Note
Unaudited
Six months
ended
31 Dec 2017
$000
Unaudited
Six months
ended
31 Dec 2016
$000
Profit after tax for the period1,00831
Other comprehensive income that may be reclassified
subsequently to profit or loss
Effective portion of changes in fair value of cash flow hedges45846
Net change in fair value of cash flow hedges transferred to
profit or loss65121
Tax on other comprehensive income(31)(271)
Share of fair value of cash flow hedges (net of tax) of 
equity-accounted investee5(24)(82)
Foreign currency translation differences for foreign
operations116(27)
171587
Other comprehensive income not reclassified subsequently
to profit or loss––
Other comprehensive income for the period, net of tax171587
Total comprehensive income for the period$1,179$618
Total comprehensive income attributable to:
Shareholders of Cavalier Corporation Limited1,179618
Non-controlling interests––
Total comprehensive income for the period$1,179$618
This statement is to be read in conjunction with the Notes on pages 12 to 19 and the previous year’s annual
financial statements.

Cavalier Corporation – Half Year Report 2018 – 7
Condensed Consolidated Statement of Changes in Equity
Six months ended 31 December 2017 (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(322)(1,419)47,78567,890
Total comprehensive income for
the period
Profit after tax–––1,0081,008
Other comprehensive income that
may be reclassified subsequently to
profit or loss
Changes in fair value of cash flow
hedges (net of tax)–79––79
Share of fair value of cash flow hedges
(net of tax) of equity-accounted
investee–(24)––(24)
Foreign currency translation differences
for foreign operations––116–116
–55116–171
Other comprehensive income not
reclassified subsequently to profit
or loss–––––
Total other comprehensive income–55116–171
Total comprehensive income for
the period–551161,0081,179
Total equity at end of the period$21,846$(267)$(1,303)$48,793$69,069
This statement is to be read in conjunction with the Notes on pages 12 to 19 and the previous year’s annual
financial statements.

8 – Cavalier Corporation – Half Year Report 2018
Condensed Consolidated Statement of Changes in Equity (continued)
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
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 12 to 19 and the previous year’s annual
financial statements.

Cavalier Corporation – Half Year Report 2018 – 9
Condensed Consolidated Statement of Financial Position
As at 31 December 2017 (Unaudited)
Note
Unaudited
31 Dec 2017
$000
Audited
30 Jun 2017
$000
ASSETS
Property, plant and equipment35,96337,123
Intangible assets2,3622,362
Investment in equity-accounted investees523,70723,490
Deferred tax asset5,4265,532
Total non-current assets67,45868,507
Cash and cash equivalents8431,255
Trade receivables, other receivables and prepayments15,22617,261
Inventories
45,97050,635
Derivative financial instruments
457898
Tax receivable–301
Total current assets62,49670,350
Total assets$129,954$138,857
EQUITY
Share capital21,84621,846
Cash flow hedging reserve(267)(322)
Foreign currency translation reserve(1,303)(1,419)
Retained earnings48,79347,785
Total equity attributable to equity holders of the Company69,06967,890
LIABILITIES
Loans and borrowings33,60035,000
Employee benefits1,2091,097
Deferred income3118
Provisions2,2742,613
Total non-current liabilities37,11438,728
Loans and borrowings5006,500
Trade creditors and accruals16,88818,855
Provisions1,4141,693
Employee entitlements3,7363,832
Deferred income3167
Derivative financial instruments8671,292
Tax payable335–
Total current liabilities23,77132,239
Total liabilities60,88570,967
Total equity and liabilities$129,954$138,857
This statement is to be read in conjunction with the Notes on pages 12 to 19 and the previous year’s annual
financial statements.

10 – Cavalier Corporation – Half Year Report 2018
Condensed Consolidated Statement of Cash Flows
Six months ended 31 December 2017 (Unaudited)
Unaudited
Six months
ended
31 Dec 2017
$000
Unaudited
Six months
ended
31 Dec 2016
$000
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers76,96086,336
Cash paid to suppliers and employees(69,136)(87,590)
Dividends received11
Other receipts212
GST refunded850376
Interest paid(1,503)(1,442)
Income tax refunded/(paid)368(2,482)
Net cash flow from operating activities7,542(4,789)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of property, plant and equipment14856
Acquisition of property, plant and equipment(721)(1,176)
Net cash flow from investing activities(573)(1,120)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase/(decrease) in bank loans and borrowings(7,400)5,350
Net cash flow from financing activities(7,400)5,350
NET DECREASE IN CASH AND CASH EQUIVALENTS(431)(559)
Cash and cash equivalents at beginning of the period1,2551,200
Effect of exchange rate changes on cash1948
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD$843$689
This statement is to be read in conjunction with the Notes on pages 12 to 19 and the previous year’s annual
financial statements.

Cavalier Corporation – Half Year Report 2018 – 11
Condensed Consolidated Statement of Cash Flows (continued)
Six months ended 31 December 2017 (Unaudited)
Unaudited
Six months
ended
31 Dec 2017
$000
Unaudited
Six months
ended
31 Dec 2016
$000
RECONCILIATION OF PROFIT WITH NET CASH FLOW
FROM OPERATING ACTIVITIES
Profit after tax for the period1,00831
Add/(deduct) non-cash and other items:
Depreciation1,8061,680
Share of profit of equity-accounted investee(241)(65)
Gain on merger and dilution of equity-accounted investee–(3,763)
Reversal of impairment of fixed assets–(1,442)
Deferred tax asset75989
Employee benefits11224
Deferred income13(29)
Provisions(618)(2,212)
Net gain on sale of property, plant and equipment(73)(3)
Net gain on foreign currency balance(19)(45)
Changes in working capital items:
Trade and other receivables and prepayments2,0392,460
Inventories4,6658,529
Tax receivable/payable634(4,892)
Trade creditors and accruals(1,985)(6,061)
Derivative financial instruments12610
Net cash flow from operating activities$7,542$(4,789)
This statement is to be read in conjunction with the Notes on pages 12 to 19 and the previous year’s annual
financial statements.

12 – Cavalier Corporation – Half Year Report 2018
Notes to the Financial Statements
For the six months ended 31 December 2017
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 2017.
The Company is registered under the Companies Act 1993 and is an FMC reporting entity
(by virtue of it being a listed issuer) 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.
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 15 February 2018.
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 2016, are unaudited. The comparative information as at 30 June 2017
is audited.

Cavalier Corporation – Half Year Report 2018 – 13
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 2017. The interim financial statements should therefore be
read in conjunction with those annual financial statements and the accounting policies set
out therein.
3. GOING CONCERN
The Group prepares its financial statements on a going concern basis and expects to be able
to realise its assets and meet its financial obligations in the normal course of business.
The Group’s ability to comply with the Bank’s financial covenants and generate sufficient
cash flows from operations to satisfy its funding and other financial obligations for a period
of at least 12 months following balance date is important to determining the appropriateness
of the going concern basis of accounting.
In this regard, reliance is placed on the forecasts of the Group’s financial performance, cash
flows and financial position that are prepared by management as part of its monitoring of
the Group’s operations and the Group’s ability to comply with, among other things, the
Bank’s financial covenants and debt repayment obligations over the term of its Bank facility.
As discussed in the Group’s annual financial statements for the year ended 30 June 2017,
these financial forecasts are particularly sensitive to changes in some of the assumptions
underlying the forecasts – including sales volumes and margins, manufacturing
performances, cost-reduction initiatives and a number of external factors over which the
Group has limited control over, such as exchange rates and raw material input costs.
However, the Directors note the progress that has been made since August 2017 when
they authorised the issue of the Group’s annual financial statements for the year ended
30 June 2017.
In particular, the Group has – in the six months to 31 December 2017 – not only returned
to profitability and reduced inventory but also generated positive cash flows from operations
to allow it to reduce net bank loans and borrowings by $7 million. As a consequence, it is
now in a stronger financial position.
The Directors also note the initiatives, and the disciplines, in place to further reduce
cost, inventory and bank loans and borrowings and to return the Group to a sound
financial footing.
The Directors consider the Group to be a going concern and believe that the Group will 
be able to meet its contractual obligations as these fall due and to renegotiate its funding
facilities with the Bank before it next comes up for renewal.

14 – Cavalier Corporation – Half Year Report 2018
Notes to the Financial Statements (continued)
For the six months ended 31 December 2017
4. SEGMENT PERFORMANCE
Unaudited
CarpetsWool AcquisitionTotal
Six months
ended
31 Dec 2017
$000
Six months
ended
31 Dec 2016
$000
Six months
ended
31 Dec 2017
$000
Six months
ended
31 Dec 2016
$000
Six months
ended
31 Dec 2017
$000
Six months
ended
31 Dec 2016
$000
External revenue65,95971,2389,35713,04075,31684,278
Inter-segment revenue––1,4822,5301,4822,530
Total revenue$65,959$71,238$10,839$15,57076,79886,808
Elimination of inter-segment revenue
(1,482)(2,530)
Consolidated revenue
$75,316$84,278
Segment result before depreciation,
restructuring costs and reversal of
impairment of fixed assets
4,7899545813445,3701,298
Depreciation(1,750)(1,620)(56)(60)(1,806)(1,680)
Segment result before restructuring costs
and reversal of impairment of fixed assets3,039(666)5252843,564(382)
Restructuring costs–(3,989)–––(3,989)
Reversal of impairment of fixed assets–1,442–––1,442
Segment result after restructuring costs
and reversal of impairment of fixed assets
3,039(3,213)5252843,564(2,929)
Elimination of inter-segment profits(52)–
Unallocated corporate costs(900)(800)
Results from operating activities
2,612(3,729)
Net finance costs(1,504)(1,489)
Share of profit of equity-accounted
investee (net of tax)
24165
Gain on merger and dilution of equity-
accounted investee
–3,763
Profit/(loss) before tax1,349(1,390)
Tax (expense)/credit(341)1,421
Profit after tax for the period$1,008$31
Employee numbers
Operations
4374802629463509
Unallocated54
Total468513
Capital expenditure5281,052193124$721$1,176

Cavalier Corporation – Half Year Report 2018 – 15
4. SEGMENT PERFORMANCE
Unaudited
CarpetsWool AcquisitionTotal
Six months
ended
31 Dec 2017
$000
Six months
ended
31 Dec 2016
$000
Six months
ended
31 Dec 2017
$000
Six months
ended
31 Dec 2016
$000
Six months
ended
31 Dec 2017
$000
Six months
ended
31 Dec 2016
$000
External revenue65,95971,2389,35713,04075,31684,278
Inter-segment revenue––1,4822,5301,4822,530
Total revenue$65,959$71,238$10,839$15,57076,79886,808
Elimination of inter-segment revenue
(1,482)(2,530)
Consolidated revenue
$75,316$84,278
Segment result before depreciation,
restructuring costs and reversal of
impairment of fixed assets
4,7899545813445,3701,298
Depreciation(1,750)(1,620)(56)(60)(1,806)(1,680)
Segment result before restructuring costs
and reversal of impairment of fixed assets3,039(666)5252843,564(382)
Restructuring costs–(3,989)–––(3,989)
Reversal of impairment of fixed assets–1,442–––1,442
Segment result after restructuring costs
and reversal of impairment of fixed assets
3,039(3,213)5252843,564(2,929)
Elimination of inter-segment profits(52)–
Unallocated corporate costs(900)(800)
Results from operating activities
2,612(3,729)
Net finance costs(1,504)(1,489)
Share of profit of equity-accounted
investee (net of tax)
24165
Gain on merger and dilution of equity-
accounted investee
–3,763
Profit/(loss) before tax1,349(1,390)
Tax (expense)/credit(341)1,421
Profit after tax for the period$1,008$31
Employee numbers
Operations
4374802629463509
Unallocated54
Total468513
Capital expenditure5281,052193124$721$1,176

16 – Cavalier Corporation – Half Year Report 2018
Notes to the Financial Statements (continued)
For the six months ended 31 December 2017
4. SEGMENT PERFORMANCE (continued)
CarpetsWool AcquisitionTotal
Unaudited
As at
31 Dec 2017
$000
Audited
As at
30 Jun 2017
$000
Unaudited
As at
31 Dec 2017
$000
Audited
As at
30 Jun 2017
$000
Unaudited
As at
31 Dec 2017
$000
Audited
As at
30 Jun 2017
$000
Reportable segment assets102,128113,1344,1192,233106,247115,367
Investment in equity-accounted investees23,70723,490
Total assets$129,954$138,857
Reportable segment liabilities24,34928,1492,4361,31826,78529,467
Unallocated liabilities34,10041,500
Total liabilities$60,885$70,967
The Group’s reportable segments are:
• carpets, which comprises the sales and manufacturing of carpets; 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 2017
$000
Six months
ended
31 Dec 2016
$000
Revenue
New Zealand41,39947,138
Australia30,44232,392
Rest of the world3,4754,748
$75,316$84,278
As at
31 Dec 2017
$000
As at
30 Jun 2017
$000
Non-current assets
New Zealand66,60865,946
Australia8502,561
$67,458$68,507
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 2018 – 17
4. SEGMENT PERFORMANCE (continued)
CarpetsWool AcquisitionTotal
Unaudited
As at
31 Dec 2017
$000
Audited
As at
30 Jun 2017
$000
Unaudited
As at
31 Dec 2017
$000
Audited
As at
30 Jun 2017
$000
Unaudited
As at
31 Dec 2017
$000
Audited
As at
30 Jun 2017
$000
Reportable segment assets102,128113,1344,1192,233106,247115,367
Investment in equity-accounted investees23,70723,490
Total assets$129,954$138,857
Reportable segment liabilities24,34928,1492,4361,31826,78529,467
Unallocated liabilities34,10041,500
Total liabilities$60,885$70,967
The Group’s reportable segments are:
• carpets, which comprises the sales and manufacturing of carpets; 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 2017
$000
Six months
ended
31 Dec 2016
$000
Revenue
New Zealand41,39947,138
Australia30,44232,392
Rest of the world3,4754,748
$75,316$84,278
As at
31 Dec 2017
$000
As at
30 Jun 2017
$000
Non-current assets
New Zealand66,60865,946
Australia8502,561
$67,458$68,507
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.

18 – Cavalier Corporation – Half Year Report 2018
Notes to the Financial Statements (continued)
For the six months ended 31 December 2017
5. EQUITY-ACCOUNTED INVESTEES
The details relating to the Group’s interest in equity-accounted investees (being 27.5%-owned
Cavalier Wool Holdings Limited and 50%-owned CWS Assets Limited (CWSA)) are set out
below:
Six months
ended
31 Dec 2017
$000
Six months
ended
31 Dec 2016
$000
Carrying value as at 1 July23,49023,175
Share of profit after tax24165
Share of changes in fair value of cash flow hedges (net of tax)(24)(82)
Dividends received–(3,250)
Dividend in specie received–(1,700)
Carrying value of CWSA–1,700
Gain on merger and dilution–3,763
Carrying value as at 31 December$23,707$23,671
6. REVENUE
Six months
ended
31 Dec 2017
$000
Six months
ended
31 Dec 2016
$000
Sales of goods75,25184,132
Provision of installation services65146
Total revenue$75,316$84,278
7. OTHER INCOME AND GAINS
Six months
ended
31 Dec 2017
$000
Six months
ended
31 Dec 2016
$000
Rentals received212
Dividends received11
Net gain on sale of property, plant and equipment733
Total other income and gains$76$16

Cavalier Corporation – Half Year Report 2018 – 19
8. EXPENSES
Profit/(loss) before tax includes the following:
Six months
ended
31 Dec 2017
$000
Six months
ended
31 Dec 2016
$000
Depreciation$1,806$1,680
Operating lease and rental costs$1,792$1,916
9. CAPITAL EXPENDITURE COMMITMENTS
As at
31 Dec 2017
$000
As at
30 Jun 2017
$000
Capital expenditure commitments
–$188
10. CONTINGENT LIABILITIES
As at
31 Dec 2017
$000
As at
30 Jun 2017
$000
Bank guarantees in respect of operating leases and
other commitments
$1,224$1,347
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 2017 was $175,000 (six months ended 31 December 2016 $249,000).
No dividends were declared by, and received from, CWH during the six months ended
31 December 2017 (six months ended 31 December 2016 – refer to Note 5).

20 – Cavalier Corporation – Half Year Report 2018
Disclosure of Non-GAAP Financial Information
For the six months ended 31 December 2017
The half year report for the six months ended 31 December 2017 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 2018 – 21
Reconciliation of GAAP-compliant to non GAAP-compliant measures of profit/(loss) after tax
Six months ended 31 Dec 2017
GAAP
$000
Adjustments
$000
Normalised
$000
Revenue$75,316–$75,316
EBITDA4,418–4,418
Depreciation(1,806)–(1,806)
EBIT2,612–2,612
Net interest expense(1,504)–(1,504)
Share of profit after tax of equity-accounted investee241140381
Profit before tax1,3491401,489
Tax expense(341)–(341)
Profit after tax$1,0081401,148
Abnormal net loss after tax(140)(140)
Profit after tax (GAAP)–$1,008
Analysis of adjustments
Profit/(loss)
before tax
$000
Ta x
effect
$000
Profit/(loss)
after tax
$000
Scour restructuring costs(140)–(140)
$(140)–$(140)

22 – Cavalier Corporation – Half Year Report 2018
Disclosure of Non-GAAP Financial Information (continued)
For the six months ended 31 December 2017
Reconciliation of GAAP-compliant to non GAAP-compliant measures of profit/(loss) after tax
(continued)
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 credit1,421(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
$1,194$713$1,907

Cavalier Corporation – Half Year Report 2018 – 23
Corporate Directory
Board of Directors:
Grant Biel B.E. (Mech.) Member of Audit, Remuneration and Nomination
Non-independent Committees
Alan Clarke B.Sc.(Hons), MBA, CFInstD Deputy Chairman of the Board of Directors
Independent Chairman of Remuneration Committee
Member of Audit 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 Chairman of Audit Committee
Independent Member of Remuneration and Nomination
Committees
Chief Executive Officer:
Paul Alston BBS, CA
Chief Financial Officer and 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

24 – Cavalier Corporation – Half Year Report 2018
Auditors:
KPMG
Legal Advisors:
Russell McVeagh
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
Corporate Directory (continued)

Cavalier Corporation – Half Year Report 2018 – 25