2019 Annual Meeting – Speeches and Presentation

CAVALIER ANNUAL SHAREHOLDERS MEETING
27 November 2019



SLIDE 3. CHAIR’S ADDRESS

SLIDE 4. 50 YEARS
This year we celebrated 50-plus years of craft, beauty and friendship at Cavalier. In 1959, the
Bremworth brand was created, merging with Cavalier in 1988 to create a world leader in beautiful
New Zealand wool carpets.
Growth and success followed for many years until the 2000s when market and consumer trends saw
the start of a long term move away from wool carpets and towards cheaper synthetic carpets and
hard flooring. While wool carpet has remained our focus, Cavalier had to adapt to this rapid market
change which required a significant rationalisation of our manufacturing base and necessitated a
reduction in operating costs.
Crucially, this necessitated a complete re-evaluation of our strategy and how we need to operate for
the next 50 years. As a wise person once said ... “Doing the same thing and expecting a different
outcome is the first sign of insanity”.
To assist us in bringing about this change, we have formed a strategic partnership with the NZ
Merino company who are now a key partner in our future wool supply, alongside our own Elco
Direct supply, and importantly, they are an experienced strategic consultancy who will help us take
our iconic New Zealand brand, capability and story into 2020 and beyond.
SLIDE 5. BUSINESS STRUCTURE
Our business is structured around our customers – they are central to everything we do. We have a
wool buying business that keeps us in close contact with our roots and the farmers that provide us
with wool. We have plants and staff in Wanganui and Napier where we dye, card, spin and felt yarn.
And we have a carpet making complex in Auckland where the R&D manufacture and support
functions are housed.
We have in excess of 30 staff in sales and marketing with showrooms and offices in all major regions
across New Zealand and Australia. We have our international sales team anchored in Auckland, and
are targeting markets in Canada, the USA and Asia.
As part of our journey towards creating a stronger business focused on producing beautiful natural
products, last year we sold our 27.5% interest in CWH for $13.5 million.
Our other shareholders in the business were experienced investors, Direct Capital and ACC, and an
international wool exporter, Lempriere. An offer was received from David Ferrier, who had actually

been involved in setting up the original scour business, and after several months of discussion, our
three shareholder partners informed us they wished to sell.
Our options were to sell to Ferrier with them or buy them out, which would have required Cavalier
to increase its debt significantly to fund that acquisition and our bankers were clear that this was not
an investment they would fund. At the same time, we were aware that the scour was looking at
significant deferred capital expenditure and there was limited prospect of a dividend anytime soon.
We also knew that we did not need to own a scour in order to buy scoured wool and the sale would
reduce bank debt and allow us to move ahead with our restructuring.
In recent weeks, the media has reported that David Ferrier has reportedly onsold a 35% interest in
the scour for an estimated $33 million.
As it was a private transaction, we have no idea what assets were included in the sale or the terms
and conditions. We also do not know if the capital structure of the business had changed, whether
debt had been reduced or whether some of the share purchase was new equity for debt reduction.
We do not know how much of the necessary capital expenditure had been carried out.
In reviewing the original transaction, the Board is confident that the right decision was made, based
on information available and market conditions at the time, and after considering the return on
investment and other alternatives available.
SLIDE 6. CREATING A WORLD OF DIFFERENCE
We have always been known as a leader in the wool sector and, going ahead, that will define us as
we focus on creating “A World of Difference” in everything we do.
This means we don’t just sell carpets and rugs; we look to make a genuine difference, for our
shareholders, our customers, our people, our suppliers, our communities and our environment....not
only through what we make, but how we make it.
SLIDE 7. MARKET TRENDS
It’s a new and different world out there now compared to when we first started.
• Hard flooring continues to grow at the expense of soft flooring.
• Synthetic carpets are now the dominant choice for consumers. However we are seeing
increasing pressure on lower margin synthetic carpets, particularly in Australia, with the
New Zealand market following the same trend. We believe that only the largest
manufacturers, producing very large volumes of these low margin carpets, will be able to
compete in this sector.
• Major synthetic producers are scrambling to paint themselves green with claims of using
plant blends in their manufacturing processes, although these corn-based alternatives are
far from a panacea for dealing with plastic waste. Whether from corn or oil, the
polyethylene produced is not recyclable at all and not good for the environment.
• Demand for top end, high quality textured woollen carpets is increasing, while synthetic
demand is dropping not just in New Zealand but worldwide, with profit warnings issued by
several large American yarn and carpet manufacturers.

• Import competition is increasing, particularly from Asia; and the industry continues to
consolidate, with several smaller manufacturers exiting the sector.
• Our retail client base also continues to consolidate and mature, with growing recognition of
the value of specialist manufacturers such as Cavalier.
SLIDE 8. CONSCIOUS CONSUMERISM
The world is changing and purchasing decisions are more and more influenced by factors other than
simply a product’s price.
Consumers are starting to carefully consider the social, environmental and other impacts of the
products they purchase and make positive buying decisions.
A recent study for the clothing industry in the UK, showed that about 1/3 of respondents were
concerned about the origin of their products and 74% were willing to pay extra if there was a
guarantee that they were made ethically.
In parallel there is also growing awareness of the impact of plastics and synthetics on the
environment and on our health, with growing demand for eco-friendly, sustainable products.
Change is coming and it is coming fast. Therefore, we believe the time is right to pivot to wool and
take advantage of the growing interest in natural fibres and sustainable products and the
environmental responsibilities that our customers are looking for.
SLIDE 9. BARKERS/MAX CLOTHING
History is studded with examples of companies that have seen changing trends and transformed to
take advantage of them, or have been successfully launched on the back of consumer movements.
Close to home is iconic NZ fashion brand, Barkers Clothing, which has not only reverted back to its
roots but has also introduced a new, more sustainable and natural approach to its apparel.
Launched in the 70s, Barkers was an iconic brand that was always ahead of the curve. However, in
the 2000’s it had lost its way, was short of cash and had extremely limited resources.
New, passionate owners spent the first decade after acquisition reviving the brand as they created a
men’s lifestyle experience with motorcycles, cafes and barbers in store. The second decade has
been described by the managers as ‘making the brand as sustainable, ethical and environmentally
low impact as possible”. They have discarded synthetic fabrics in favour of natural fibres and textiles.
In today’s fast paced and cut throat fashion world, the success of Barkers’ transformation back to its
roots and its sustainable approach are evident in its longevity and growing presence in the market.
SLIDE 10. LANACO
This country was originally built on the wool cheque and our wool is recognised world-wide as being
some of the best. New Zealand’s clean green image is also a drawcard for many international
consumers.

Innovative companies are using this to build positions in high value, niche sectors throughout the
world, targeting those consumers looking for better, more sustainable, healthier products...and with
the means to pay for them.
• There’s Tauranga-based Kiwi surfboard maker, Paul Barron, who has developed a wool cloth
to replace traditional fibreglass in the surfboard manufacturing process;
• Woolcool, which is actually a UK company using NZ wool to produce biodegradable insulated
packaging for food delivery and which is being used by My Food Bag in NZ; and
• Lanaco which uses natural wool as a critical ingredient for air filtration products.
Lanaco’s wool filters are far superior to the alternative synthetic fibres and leverage off the unique
biological properties of wool. NASA is evaluating one of Lanaco’s filter systems for possible use to
protect astronauts in the event of onboard fires and the company is teaming up with fashion
designers such as Karen Walker to create fashionable face masks for the Asia markets.
SLIDE 11. ALL BIRDS
Alongside Icebreaker, All Birds shoes is probably one of New Zealand’s most well known wool
brands.
Having created an innovative merino wool fabric specifically for footwear, the company is now
celebrated for its fashionable merino wool runners that are as comfortable as they are sustainable
and eco-friendly.
The demand for their shoes has taken off worldwide and their sales have been on an upward
trajectory since launch, as more and more consumers seek out products that are very comfortable,
ethically constructed, fashion endorsed and a shoe they can feel good about buying.
SLIDE 12. THE JOURNEY BEGINS
Every journey starts with taking just one step ... and then another and another. It takes commitment
and confidence and yes, there is always risk involved.
Cavalier is well positioned to be the next New Zealand success story in the wool market. Like
Barkers, we are looking to revert to our roots and build on our heritage; like Lanaco and All Birds, we
can meet customer demand for high quality, sustainable products, with our beautiful New Zealand
wool carpets. We are in a unique position, with many of our competitors having tried and failed to
replicate Cavalier’s strengths in the premium market sector.
The New Zealand Merino Company has been an important partner for many of these highly
respected and successful New Zealand wool brands, assisting them with their go-to-market strategy
as well as their supply of raw material. They are now bringing their extensive knowledge and
expertise to the strong wool market.
There is absolutely no question that Cavalier must change to stay relevant and position for growth in
today’s world. The Board and I are excited about the journey that we are embarking on, as we build
on Cavalier’s 50 years of heritage and expertise in the NZ wool flooring market and leverage our
strong brand and reputation for quality and innovation. We are delighted to be partnering and

working with the multi award winning NZ Merino company on a strategy to transform our company
and I look forward to sharing details of this with you early next year.
The Board and I are clear. We have to change and build on our strengths. We want to see our share
price start to reflect the considerable asset backing of your company and then grow from there,
based on an improving bottom line performance. But we have to transition from where we are
today to that vision and this will take investment, patience and time.
We are committed to seeing the return of an annual dividend and I look forward to the day that this
can be announced at our AGM.
I will now hand over to Paul Alston, Cavalier’s CEO, to talk more about our performance and
initiatives we have underway.
SLIDE 13. PAUL ALSTON, CEO
SLIDE 14. COMPANY STRENGTHS
Cavalier has a long standing history of producing world leading carpets. It’s what we’re known for –
premium wool carpets made from quality New Zealand wool. And this is where our focus will remain
– creating and marketing a valuable natural product that is both sustainable and desirable, around
the world.
Our Cavalier Bremworth brand is the most recognised and trusted carpet brand in the NZ market
and very highly regarded in Australia.
We are renowned for our beautiful broadloom carpets and have felted yarn technology that is
difficult to replicate.
And while we would struggle to compete in the high volume, low margin sector, our size allows us to
easily switch between small production runs to create our unique and bespoke carpets.
SLIDE 15. FY19 EVENTS
We have already provided a lot of information on our FY19 results in our announcement and annual
report so I’ll just run through a quick summary today.
Last year we started to move our focus back towards wool and away from synthetics, something that
we are now escalating.
We established a strategic relationship with The New Zealand Merino Company and started to invest
in the changes that need to be made.
Our retailer distribution channels are an important part of our business and a key strategy for our
future. We have invested in new instore displays which provide a unique retail experience and are
proving popular.
In line with our new direction we are looking at compatible areas for growth, such as the
introduction of rugs last year which will support our position in the increasing move towards hard
flooring.

SLIDE 16. FY19 RESULTS SNAPSHOT
Our FY19 results reflected the start of our strategic change and the continuing soft market and
challenging trading conditions we spoke about last year, particularly towards the end of the second
half. Wool prices also dropped due to decreased Chinese demand for strong wool, impacting on the
revenue generated by our wool buying business.
Overall, revenue was down 9% for the year, to $135.2m.
We reported an $11.9m non-cash loss on the sale of Cavalier’s interest in the wool scouring business
and associated property, as well as $6.8m after tax relating to impairments of goodwill and fixed
assets. The result was a net loss after tax (NLAT) of $(16.8)m.
Excluding these non-cash items, Cavalier’s normalised EBITDA was $7.1m and NPAT was $1.9m.
At the end of June, net bank debt was $17.8 million, with recent valuations assessing the value of
Cavalier’s land and buildings alone at more than $30m, compared with our depreciated book value
of $21.5m.
SLIDE 17. FY19 PERFORMANCE
Despite navigating the change in our business, we have improved a number of key metrics, including
gearing ratio and margins (highlighting the higher percentage of woollen sales) and reduced debt
and inventory.
SLIDE 18. CAPITAL MANAGEMENT
Prudent capital management remains a key focus and debt has reduced by more than 70% since
FY14, from $58.8m down to $17m as at the end of October this year.
We have tight control over capex and we have reduced inventories by $21.2m over that same
period.
SLIDE 19. FY20 OUTLOOK
We are changing our business and, while we are well positioned to capture the demand from
consumers seeking a more natural, more sustainable, healthier carpet alternative, we recognise that
operational and marketing investment is essential.
Restructuring and production changes will be required to support the move away from synthetics
and into the production of wool carpets.
This will require investment, which has already started, and the associated costs will impact in the
FY20 year and we will also be required to assess the carrying value of assets as this change takes
place.
We believe change is essential and further investment will be required to secure the future growth
of Cavalier. The changes that are being made to our business will add long term value for our
company and our shareholders.

SLIDE 20. HY20 FORECAST
The challenging trading conditions noted early in 2019 are continuing and sales, particularly of low
margin synthetic carpets, continue to be affected, with volumes down by approximately 10% year on
year. Anecdotal feedback is that other suppliers are also experiencing the same challenges.
Demand for Cavalier’s premium wool carpets continues to grow and whilst these are a small part of
total sales, they provide a significant contribution to group profits.
Given the above, 1H20 revenue is expected to be between $61m to $64m (1H19: $70.0m) and
EBITDA is expected to be in the range of $1.2m to $1.9m (1H19: $4.6m).
Included in forecast EBITDA is an approximate $1m benefit from the adoption of the new accounting
standard for leases (IFRS 16) and transformation costs of approximately $0.8m associated with the
development and implementation of Cavalier’s new business model, as the company transitions into
a design-led, wool focused business.
Cavalier expects a net loss after tax of between $(1.1) million and $(1.6) million for the six-month
period (1H19: $(10.0)m
1
).
While our performance in today’s more challenging market is disappointing, it further enforces our
need to transform our business and focus on our areas of strength, particularly premium wool
flooring which provides better margins and growth opportunities.
SLIDE 21. OUR ASPIRATIONS
With the assistance of The NZ Merino Company, the Board and senior management are currently
developing a detailed business strategy and plans which will direct our future journey. However, our
aspirations remain unchanged:
We want to be recognised as a leader in beautiful wool carpets, made from New Zealand wool.
We want to continue our heritage of design and craftsmanship, delivering uncompromising quality
and exceeding our customers’ expectations.
We are committed to operational and manufacturing excellence and have a company culture that
harnesses the pride, passion and expertise of our people.
We want to continue building a business that rewards our shareholders and customers, but also
adds value for our people, local communities and New Zealand’s wool growing sector, while
protecting our environment for future generations.
SLIDE 22. WOOL IS THE NATURAL CHOICE
Wool is the natural choice for carpet and our future. Not only is it sustainable, 100% renewable and
bio- degradable; we believe it is also the optimal fibre for carpet design and performance.

1
1H19 NLAT included the non-cash write down of $12.0m on Cavalier’s carrying value of its 27.5% in Cavalier Wool
Holdings (CWH), following its sale at the end of September 2018.

It also has multiple attributes for a healthier and more comfortable home – it’s hypo allergenic,
keeps you warm in winter and cool in summer, is naturally stain and fire resistant, takes moisture
out of the air, is a great noise insulator and is less odorous. Why would you choose anything else?
SLIDE 23. THE VALUE STORY
Our move back to wool is not just good for our customers, it’s also good for our business. Margins on
synthetic carpets continue to drop, and with the current market conditions and trends in fibre
preferences, we expect there to be further margin pressure in this segment of the market.
Wool carpet margins, particularly at the premium end of the market, remain healthy. While these
are a smaller part of our business, they are highly valuable and with new products about to be
launched in the new year in all markets, we expect further growth in the near future.
SLIDE 24. THE OPPORTUNITY
The global flooring and carpet market is worth an estimated $380 billion US dollars and is expected
to grow to $450 billion by 2025. Approximately 40% of this is for soft floor coverings, providing an
estimated market sector size of $180 billion by 2025.
While hard flooring may have grown in popularity, carpet still represents about 40% to 50% of
flooring surface in homes and remains the single biggest flooring category. In fact, individually,
ceramics, hardwood floors and laminates don’t even come close. Many consumers still like the
benefits of a wool carpet – its soft, warm, more comfortable and looks good. And customers like
having rugs on top of their hard floors in their homes.
The industry is evolving and innovation will drive a revitalisation of the carpet sector. Our
opportunity lies in promoting the benefits of wool and crafting beautiful carpets that are
fashionable, more appealing and exciting for our customers, and better performing.
One of Cavalier’s main strength is our brand. We believe we can build on this to cement and grow
our position in the high value, high end wool and natural fibre carpet sector.
We are the leader in the wool carpet sector in NZ and, while we are still a small player, our market
share in Australia is growing and represents our most accessible near term growth opportunity.
The US market is mostly white label, that is, they take our carpets and put them under their own
brands. We are looking closely at this model and at ways we can leverage the value and reputation
of the Cavalier Bremworth brand, with passionate advocates selling our carpets to both commercial
and residential customers.
Canada and Asia also offer opportunities for our company.
SLIDE 25. PARTNERSHIP WITH NZ MERINO
We will be leveraging The NZ Merino Company’s unique skills, experience and indepth knowledge of
wool to help us take our wool carpets to the world, and as Alan has said, we are very excited about
this new partnership.
Everyone has different strengths and while Cavalier is a leader in the production of beautiful wool
carpets, we recognise that our story telling needs to improve and fresh eyes will assist in this.

We have been working with NZ Merino for nearly six months now, undertaking a strategic review of
the business and our opportunities. We expect to have this work completed in coming weeks and
will then move to the next stage of the process, which is to create detailed implementation plans.
I’d now like to introduce you to John Brakenridge, to tell you a bit more about the business and their
view of the potential for Cavalier.
Alan Clarke, Chair
The strategic review has been a very tangible process, involving members of Cavalier’s team,
retailers, shareholders and other key stakeholders. We are 100% committed to the belief that wool
is our future, particularly the high value, premium carpets for which there is increasing demand.
John’s team are incredibly knowledgeable and can see real potential for our business. This is an
exciting time for Cavalier and we look forward to keeping you updated on our progress.
ENDS

---

ANNUAL
SHAREHOLDERS’
MEETING
27 November 2019

Cavalier Corporation | ASM Presentation November 2019
Experienced Board and Leadership
Team
2
Grant Biel
GeorgeAdams
Deputy Chair
Alan Clarke
Chairman
John Rae
Dianne Williams
Leadership Team
CEO: Paul Alston
CFO: Victor Tan
GM Marketing and International Operations:
Rochelle Flint
GM New Zealand: Dean Chandler
GM ElcoDirect: Shane Eades
GM Health & Safety: Kirstine Hulse
Transformation Project Manager: Karen Urwin

Alan Clarke
Chairman
3
Cavalier Corporation | ASM Presentation November 2019

Cavalier Corporation | ASM Presentation November 2019
4
1959:
The Bremworthbrand
is created
1972:
Cavalier Carpets is born
Growth and success as
a world leader in
beautiful NZ wool
carpets
2010 on:
Competitive challenges
from synthetics and
hard flooring
2015 –2019:
Restructuring the
business for the new
environment
LOOKING FORWARD:
An exciting new world
for Cavalier

Cavalier Corporation | ASM Presentation November 2019
Business Structure
5
ElcoDirect
Wool Buying
Whanganui
Manufacturing
Wool Felted Yarn
Napier
Manufacturing
Wool Yarn
Auckland
Carpet Making & Distribution
OUR
CUSTOMERS
Nationwide retailer
networks in Australia
and New Zealand
Cavalier Sales Offices and
Showrooms in all major
regions in Australia and
New Zealand
CAVALIER
R&D and design
Marketing and sales
Finance and admin

We are focussed on creating “A World
of Difference” in everything we do.
This means we don’t just sell carpets
and rugs; our efforts have been borne
from the desire to make a genuine
difference, for our shareholders, our
customers, our people, our suppliers,
our communities and our environment.
Not only through what we make, but
how we make it.
6
Cavalier Corporation | ASM Presentation November 2019
Creating A World Of Difference

•Hard flooring continues to grow at the expense of soft flooring.
•Synthetic carpets presently the first choice for many consumers.
•Pressure on lower margin synthetic carpets. Only the largest manufacturers will be able to
compete in this sector.
•Wool carpets have decreased in relevance for many consumers. However, demand for top
end, high quality, high margin, textured woollen carpets is increasing.
•Increasing import competition, particularly from Asia. Consolidation of industry with many
smaller manufacturers exiting.
•Ongoing consolidation of the retail client base and growth of large retail chains changing
buying patterns.
It’s A New World: Market Trends
7
Cavalier Corporation | ASM Presentation November 2019

The Rise of Conscious
Consumerism
•Consumers considering the social,
ecological, environmental and other
impacts of products when
purchasing.
•More awareness of the impact of
plastics in the environment .... and
on health.
•Growing demand for eco-friendly,
sustainable products.
8
Cavalier Corporation | ASM Presentation November 2019

Cavalier Corporation | ASM Presentation November 2019
Barkers/Max Clothing: Building
on a heritage brand and
transitioning to sustainable fashion
“It’s a project which is now nearly two years
old, and one which has consumed much of
that time with questions which are a kind of
business philosophy. It’s been as hard and
draining as anything I’ve ever done, but the
breakthroughs are profound.”
Jamie Whiting, Group MD, Barkers/Max
9

Cavalier Corporation | ASM Presentation November 2019
Lanaco:
Natural Clean Air Technology
Using NZ Wool
10

Cavalier Corporation | ASM Presentation November 2019
All Birds
11

Cavalier Corporation | ASM Presentation November 2019
We are transforming to a wool focused,
design-led business
•Transformational shift underway
•Building on Cavalier’s 50-year heritage and
expertise in the wool flooring market
•Leveraging our reputation for quality, brand
strength and new product innovation
•Collaboration with The New Zealand
Merino Company
The Journey Begins
12

Paul Alston
Chief Executive Officer
13
Cavalier Corporation | ASM Presentation November 2019

•Cavalier Bremworthis the most recognised and trusted carpet
brand in New Zealand market and very highly regarded in Australia.
•We design and manufacture a range of beautiful broadloom
carpets, made from New Zealand wool.
•We are renowned for quality and innovation.
•We have felted yarn technology that is difficult to replicate and
commands premium pricing.
•We have diversity and flexibility and can switch between small
production runs to create niche and bespoke carpets.
Our Company And Strengths
Cavalier Corporation is a leader in the soft flooring market in Australasia
Cavalier Corporation | ASM Presentation November 2019
14

Cavalier Corporation | ASM Presentation November 2019
•Increased focus on wool carpets vs synthetic fibres.
•Significant investment into customer relationship activity including rollout of Cavalier’s successful
World of Difference instore displays which provide a unique retail experience.
•Focus on innovative new product development with introduction of new rug offer and a number of
new products finalised for launch.
•Introduced more customer focussed organisational structure in Australia, with positive impact now
being seen.
•$13.5m received from sale of Cavalier’s 27.5% in its wool scouring business (Cavalier Wool
Holdings, ‘CWH’) and the associated property in September 2018. Entered into long-term scouring
arrangement with CWH.
•Commenced strategic review to identify opportunities for the company, leverage Cavalier’s
strengths and unlock new value for shareholders.
•Post-period end: Announced transformational shift in business model to a design-led wool focused
company and strategic collaboration with The New Zealand Merino Company (NZM).
FY19 Key Events
15

Cavalier Corporation | ASM Presentation November 2019
FY19 Results Snapshot
16
$millionsFY19 FY18
Results in line with May 2019 guidance. Reflects only 3-month
contribution from CWH compared to 12-months in prior year.
REVENUE$135.2$148.1
Revenue impacted by challenging market conditions in Australia
throughout the year and softening in NZ in 2H19.
EBITDA$(1.4)$10.3
EBITDA includes $8.5m of restructuring costs and goodwill
impairment which the Board considers to be abnormal costs.
NPAT/NLAT$(16.8)$4.1
Includes $11.9m non-cash loss on sale of interest in CWH and
property held by CWSA, as well as non-cash after tax
impairments of goodwill and fixed assets of $6.8m.
EBITDA
(normalised)
$7.1$10.0
Stronger normalised EBITDA performance in 1H19 and lower
costs, offset by reduced carpet sales and wool buying margins.
NPAT/NLAT
(normalised)
$1.9$4.0
Lower FY19 profit due to reduced revenue.
NET DEBT$17.8$29.4
Significant reduction in debt with proceeds from sale of CWH
used to offset debt.
See slide 30 for explanation of EBITDA, normalised EBITDA and normalised NPAT

Cavalier Corporation | ASM Presentation November 2019
FY19 Performance
17
59%
41%
32%
0%
20%
40%
60%
80%
FY17FY18FY19
Gearing
19%
24%24%
0%
10%
20%
30%
FY17FY18FY19
Gross Profit %
-1%
3%
2%
-2%
0%
2%
4%
FY17FY18FY19
Return (normalised
EBITDA) on assets %
39
37
32
0
20
40
60
FY17FY18FY19
Days Sales in
Receivables
146
154
170
130
140
150
160
170
180
FY17FY18FY19
Inventory Turnover
2.18
2.11
2.87
0
1
2
3
4
FY17FY18FY19
Current Ratio

Cavalier Corporation | ASM Presentation November 2019
Capital Management
Debt position continues to improve
18
•71%reduction in debt since FY14.
•Renegotiated bank terms and tenure in FY19.
Company has support of banking partner.
•Tight control over capex.
•Inventory reduced by $21.2 m since FY14.
58.8
53.9
36.5
40.2
29.4
17.8
17.0
0
10
20
30
40
50
60
70
Jun-14Jun-15Jun-16Jun-17Jun-18Jun-19End-Oct
19
Net Debt $m
5.9
3.4
3.3
3.6
3.5
2.6
2.12.1
1.6
4.7
0
2
4
6
FY15FY16FY17FY18FY19
Capital Expenditure and Depreciation
$m
DepreciationCapital Expenditure

Cavalier Corporation | ASM Presentation November 2019
•Well positioned to capture the demand from consumers seeking a more natural, more
sustainable, healthier alternative without compromising quality or style.
•Market conditions remain challenging.Continuing to explore opportunities to expand market
presence and range.
•Transformational shift into a wool focused, design-led business. Expected to necessitate
organisational change as the business moves towards a stronger wool manufacturing and
marketing focus.
•Collaboration with NZM, leveraging its extensive sales and marketing expertise, to connect
consumers with Cavalier’s wool product.
•Investment into business transformation and associated costs will be realised in FY20.
•Board is confident in the financial sustainability of the company and excited about the
potential of the new business model and strategy.
OUTLOOK FOR FY20
19
19

Cavalier Corporation | ASM Presentation November 2019
•MARKET CONDITIONS: Continuation of challenging trading conditions. Slowdown in carpet
sales, particularly lower end synthetic carpet. Demand for Cavalier’s premium wool carpets
continues to grow and whilst these are a small part of total sales, they provide a significant
contribution to group profits.
•FINANCIAL RESULTS: Cavalier total sales volumes down approximately 10%. EBITDA will
include an approximate $1m benefit from adoption of IFRS 16 and transformation costs of
approximately $0.8m.
1H20 Guidance (for the six months to 31 December 2019)
20
$millions1H201H19
Revenue61 -6470.0
EBITDA1.2 –1.94.6
Net Loss After Tax (NLAT)(1.1) –(1.6)(10.0)

Cavalier Corporation | ASM Presentation November 2019
Our Aspirations
To be recognised as:
➢A world leader in beautiful wool carpets, made
from New Zealand wool
➢A pioneer in design and craftsmanship
➢Delivering uncompromising quality
➢Exceeding our customers’ expectations
➢Committed to operational and manufacturing
excellence
➢A culture that harnesses the pride, passion and
expertise of our people
➢Providing benefit to the New Zealand primary
sector
➢Protecting our environment for future generations
21

Cavalier Corporation | ASM Presentation November 2019
22
Wool is the Natural Choice
✓Sustainable and 100% renewable
✓Optimal carpet performance
✓Design innovation and
craftsmanship
✓Healthier alternative
✓Less odorous
✓Warm in winter, cool in summer
✓Fire resistant
✓Naturally stain resistant
✓Takes moisture out of the air
✓Noise insulator
WHY WOULD YOU CONSIDER ANY
OTHER FIBRE?

Cavalier Corporation | ASM Presentation November 2019
The Value Story
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201420152016201720182019
Percentage
Wool vs Synthetic Margin
WoolSynthetic
201420152016201720182019
Percentage
Wool margins
PremiumMid-rangeLow end

Percentage of sales
•Global flooring market estimated at
US$380B. Expected to grow to US$450B
by 2025.
•Approx. 40% -50% of floor surface is
carpet.
•Majority of current sales into Australia
and New Zealand. Floor coverings market
estimated at approx. $960M.
•Growth opportunities in other world
markets with wool carpets –particularly
North America, Canada and Asia.
Opportunity In The Global Flooring Market
24
Cavalier Corporation | ASM Presentation November 2019
42%
55%
Rest of
World 3%

Cavalier Corporation | ASM Presentation November 2019
•Cavalier is a leader in the production of
beautiful wool carpets.
•While we make great carpet, our story
telling needs to improve.
•Collaboration with The New Zealand Merino
Company –Helping us tell our story to the
world.
•NZM have had success in assisting other
iconic NZ brands (Icebreaker & Allbirds) tell
their story.
•Long term contracted wool supply is
achievable through NZM to protect against
price volatility
Partnership with The NZ Merino
Company
25

Cavalier Corporation | ASM Presentation November 2019
26

Shareholder
Discussion
27

Resolution 1: Re-election of John Rae as a Director
Resolution 2: Record the reappointment of KPMG as auditors of the
Company and authorise the directors to fix the auditors’ remuneration
Resolution 3: To approve the amendment of the Company’s Constitution
Resolutions
28
Cavalier Corporation | ASM Presentation November 2019

Other Business
Close of the Meeting
29
Cavalier Corporation | ASM Presentation November 2019

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) is a non-GAAP measure and excludes net
finance expenses, non-controlling interests, tax, depreciation and amortisation costs.
Normalised EBITDA and Net Profit/Loss After Tax (NPAT/NLAT): Cavalier reports on normalised metrics for
EBITDA and NPAT/NLAT. These are non-GAAP measures and are not audited. Normalised results exclude items
that are not expected to occur on a regular basis, either by virtue of quantum or nature, such as gains/losses
arising on the sale of businesses, restructuring costs and asset impairments and, in the case of NPAT/NLAT, their
tax effect where applicable.
The Directors believe that the non-GAAP financial information provides useful information to investors regarding
the performance of the Group, 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 items of an abnormal nature,
including items that are unlikely to recur or are otherwise unusual in nature.
A reconciliation of GAAP-compliant to non-GAAP compliant measures of profit and loss after tax can be viewed on
page 79 of the Cavalier Corporation 2019 Annual Report, which is available on the company website at
www.cavcorp.co.nz.
Non-GAAP Measures
30
Cavalier Corporation | ASM Presentation November 2019

Cavalier Corporation | ASM Presentation November 2019
This presentation has been prepared by Cavalier Corporation Limited (“CAV”).The information in this presentation is of a general nature only. It is
not a complete description of CAV.
This presentation is not a recommendation or offer of financial products for subscription, purchase or sale, or an invitationorsolicitation for such
offers.
This presentation is not intended as investment, financial or other advice and must not be relied on by any prospective investor.It does not take
into account any particular prospective investor’s objectives, financial situation, circumstances or needs, and does not purportto contain all the
information that a prospective investor may require. Any person who is considering an investment in CAV securities should obtainindependent
professional advice prior to making an investment decision, and should make any investment decision having regard to that person’s own
objectives, financial situation, circumstances and needs.
Past performance information contained in this presentation should not be relied upon (and is not) an indication of future performance.This
presentation may also contain forward looking statements with respect to the financial condition, results of operations and business, and business
strategy of CAV. Information about the future, by its nature, involves inherent risks and uncertainties. Accordingly, nothinginthis presentation is a
promise or representation as to the future or a promise or representation that a transaction or outcome referred to in this presentation will
proceed or occur on the basis described in this presentation. Statements or assumptions in this presentation as to future matters may prove to be
incorrect.
A number of financial measures are used in this presentation and should not be considered in isolation from, or as a substitutefor, the information
provided in CAV’s financial statements available at www.cavcorp.co.nz.
CAV and its related companies and their respective directors, employees and representatives make no representation or warranty of any nature
(including as to accuracy or completeness) in respect of this presentation and will have no liability (including for negligence)for any errors in or
omissions from, or for any loss (whether foreseeable or not) arising in connection with the use of or reliance on, information in this presentation.
Disclaimer
31