Transformation strategy and funding options

MARKET RELEASE
25 May 2020

TRANSFORMATION STRATEGY PROGRESSING, FUNDING OPTIONS BEING ASSESSED

New Zealand wool and carpet company, Cavalier Corporation Limited (NZX: CAV) is continuing to
progress with its transformation strategy as it pivots to focus on wool and natural fibres.

As previously advised, the company is investigating a range of opportunities to realise additional
funds to facilitate the transformation strategy and strengthen the company’s balance sheet in light
of the COVID-19 impact. This includes the potential sale and long-term lease back of land and
buildings, which would require shareholder approval.

Cavalier has a constructive and supportive relationship with its banking partner, with the bank
recently approving an increase to the company’s facilities to provide it with additional funding
headroom to cope with the challenges posed by COVID-19. However, the company may not require
this increase as a result of careful cost controls and its inventory and debt reduction programme.

Cavalier remains committed to the rollout of its natural fibre strategy, leveraging the growing
demand for greener, healthier, natural and more sustainable products. Cavalier believes this
strategy will not only benefit the company, but will help New Zealand’s wool growers, and the
broader New Zealand primary sector.

Further details with respect to this transformation initiative will be communicated to shareholders in
coming weeks.

ENDS

For further information please contact:
Paul Alston
Chief Executive Officer
palston@cavbrem.co.nz
+64 21 918 033
+64 9 277 1135
Jackie Ellis
Media and Investor Relations
Jackie@ellisandco.co.nz
+64 27 246 2505