CVC SUSTAINABLE INVESTMENTS LIMITED · The Directors present the report of CVC Sustainable Investments Limited (the “Company ... (Macq Uni), LLM (Environ Law) (Uni. of ... Share

CVC SUSTAINABLE INVESTMENTS LIMITED

AND ITS STAPLED ENTITY

ABN 35 088 731 837

FINANCIAL REPORT

FOR THE YEAR ENDED

30 JUNE 2014

The financial report was authorised for issue by the Directors on 30 September 2014.

The Company has the power to amend and reissue the financial report.

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Company Particulars

REGISTERED OFFICE: Level 6 1 Alfred Street SYDNEY NSW 2000 DIRECTORS: Vanda R Gould John D Read Alexander D H Beard Mark Fogarty SECRETARIES: John A H Hunter Alexander D H Beard BANKERS: Westpac Banking Corporation Limited Suncorp Met-way Limited AUDITORS: HLB Mann Judd Chartered Accountants Level 19 207 Kent Street Sydney NSW 2000 SHARE REGISTRY: Gould Ralph Pty Limited Level 42 259 George Street SYDNEY NSW 2000 DOMICILE: Australia

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DIRECTORS� REPORT

For the Year Ended 30 June 2014

The Directors present the report of CVC Sustainable Investments Limited (the �Company�) and its stapled entity (the �Group�) for the year ended 30 June 2014, and the Auditors� report thereon. Officers The Directors and Secretaries in office at the date of this report and at any time during the year are: Vanda Russell Gould (Chairman) B Com (UNSW), M Com (UNSW) Chairman of Vita Life Sciences Limited, Cyclopharm Limited, CVC Limited, CVC Private Equity Limited and CVC Property Managers Limited as Responsible Entity for CVC Property Fund and Director of numerous private and public companies including educational establishments. John Douglas Read (Non Executive Director) B Sc (Hons) (Cant.), MBA (AGSM). Fellow of the Australian Institute of Company Directors. Director of Patrys Limited, CVC Limited, CVC Private Equity Limited and formerly Director of The Environmental Group Limited, Alexander Damien Harry Beard (Non Executive Director and Company Secretary) B Com (UNSW) Fellow of the Institute of Chartered Accountants in Australia. Member of the Australian Institute of Company Directors. Chairman of Cellnet Limited and Director of CVC Limited, Villa World Limited, Mnemon Limited (formerly Mnet Group Limited), CVC Property Managers Limited as Responsible Entity for CVC Property Fund and CVC Private Equity Limited. Formerly Director of Lonestar Resources Limited (formerly Amadeus Energy Limited). Mark Fogarty (Non Executive Director) B LegS (Macq Uni), LLM (Environ Law) (Uni. of Syd), MMgT (MGSM) Admitted to Practise NSW Supreme Court Director of Asia Carbon Pacific Pty Limited. John Andrew Hunter (Company Secretary) B.Com. (ANU), MBA (MGSM) Member of the Institute of Chartered Accountants in Australia.

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DIRECTORS� REPORT (Cont.) For the Year Ended 30 June 2014

Directors' Meetings The number of Directors' Meetings and number of meetings attended by each of the Directors of the Group during the financial year were:

Number of

meetings attended Number of meetings

eligible to attend Mr V R Gould 2 3 Mr J D Read 3 3 Mr A D H Beard 3 3 Mr M Fogarty 1 3

Audit Committee Meetings There were no audit committee meetings of the Company during the financial year.

Principal Activity Investment in a diversified combination of established small Australian companies that offer both strong return potential and improved environmental outcomes.

Operating Results The Group recorded a loss after tax of $570,849 for the year (2013: $42,785).

Dividends No dividends have been declared, paid or provided during the year ended 30 June 2014. Significant Changes in the State of Affairs of the Group There were no significant changes in the state of affairs of the group that occurred during the year not otherwise disclosed in this report or the financial statements.

Review of Operations On 11 June 2014 an equal reduction of share capital of 1.6 cents per stapled security, which included 1.3 cents per share paid by CVC Sustainable Investment Limited and 0.3 cents per share paid by CVC Sustainable Investments No. 2 Limited, took place. During the year, the Group sold its investment in The Environmental Group Limited for proceeds of $34,187. During the year, no stapled securities were issued to new investors and in accordance with the management agreement no options have been issued to CVC Managers Pty Limited.

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DIRECTORS� REPORT (Cont.) For the Year Ended 30 June 2014

Options over Stapled Securities CVC Managers Pty Limited, the manager of the Group, has been issued 3,183,974 options in accordance with the management agreement. The options were valued using the Black-Scholes model based on the security price at which the options are exercised. As the options do not have any vesting conditions the full value of $80,489 has been credited to the options reserve and charged as a cost of the capital raising on the date of grant. As at 30 June 2014, the following options are outstanding:

Expiry date Option value Number of

options Exercise price 11 December 2016 5.85 cents 28,343 14.58 cents 30 April 2017 5.80 cents 36,279 14.40 cents 31 May 2017 5.90 cents 459,746 14.76 cents 30 June 2017 5.95 cents 316,676 14.94 cents 31 July 2017 5.78 cents 168,847 14.31 cents 31 August 2017 5.79 cents 134,183 14.38 cents 30 September 2017 5.52 cents 336,301 13.37 cents 31 October 2017 5.46 cents 141,408 13.15 cents 30 November 2017 4.93 cents 736,375 11.19 cents 31 December 2017 5.49 cents 87,629 13.24 cents 31 January 2018 5.05 cents 138,115 11.62 cents 29 February 2018 5.09 cents 198,865 10.94 cents 31 March 2018 5.15 cents 61,800 10.40 cents 31 May 2018 4.91 cents 9,268 9.57 cents 30 June 2018 7.83 cents 34,091 13.03 cents 31 December 2018 4.96 cents 9,357 8.93 cents 28 February 2019 4.49 cents 42,884 8.79 cents 31 March 2019 4.75 cents 27,606 9.69 cents 30 April 2019 4.32 cents 71,977 8.53 cents 30 June 2019 4.49 cents 50,801 9.14 cents 31 July 2019 3.76 cents 20,342 8.09 cents 31 October 2019 4.68 cents 19,544 9.19 cents 28 February 2020 5.19 cents 8,555 10.96 cents 31 March 2020 4.99 cents 9,519 9.13 cents 30 April 2020 4.85 cents 9,785 8.69 cents 31 May 2020 4.99 cents 9,729 8.78 cents 31 August 2020 4.68 cents 6,217 7.81 cents 30 November 2020 4.07 cents 9,732 5.60 cents 3,183,974

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CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE


Notes 2014 2013 $ $ INCOME

Interest received 34,308 73,899

Net gain on sale of equity investments - 2,108

Impairment recovery - 2,122

Dividends received - 26,001

Other income - 23,774

!!!!!!! !!!!!!! Total income 34,308 127,904 EXPENSES Audit fees 4 31,000 38,000

Impairment of unlisted investment 548,335 - Impairment of related entity - 24,716

Insurance 1,517 2,734 Management and consulting fees - 76,758 Printing 250 531 Share registry 12,105 12,831

Net loss on sale of equity investments 213 3,501

Other expenses 11,737 11,618 !!!!!!! !!!!!!! Loss before related income tax expense (570,849) (42,785) !!!!!!! !!!!!!! Net loss (570,849) (42,785) !!!!!!! !!!!!!! Net loss attributable to owners of the parent 10 (549,517) (47,253) !!!!!!! !!!!!!! Net (loss)/profit attributable to non-controlling interest 11 (21,332) 4,468 """"""" """""""

The above consolidated statement of financial performance should be read in conjunction with the notes to the financial statements set out on pages 12 to 27.

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME


2014 2013 $ $

Net loss (570,849) (42,785)

!!!!!!! !!!!!!! Other comprehensive income for the year - Movements in fair values of �available-for-sale� financial assets

recognised directly in equity (53,294) 67,143 - Movements in fair values of �available-for-sale� financial assets

transferred to other comprehensive income on realisation 7,742 (1,510) !!!!!!! !!!!!!! Other comprehensive income for the year, net of tax (45,552) 65,633 !!!!!!! !!!!!!! Total comprehensive income for the year (616,401) 22,848 !!!!!!! !!!!!!! Attributable to: Owners of the parent (602,811) 26,122 Non-controlling interest (13,590) (3,274) !!!!!!! !!!!!!! (616,401) 22,848 !!!!!!! !!!!!!!

The above consolidated statement of comprehensive income should be read in conjunction with the notes to the financial statements set out on pages 12 to 27.

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 30 June 2014

Notes 2014 2013 $ $ CURRENT ASSETS Cash and cash equivalents 15 198,971 1,361,740 Trade and other receivables 6 1,197 3,096 Financial assets �available-for-sale� 7 - 26,660 !!!!!!!! !!!!!!!! Total current assets 200,168 1,391,496 !!!!!!!! !!!!!!!! NON-CURRENT ASSETS Financial assets �available-for-sale� 7 460,412 1,062,041 !!!!!!!! !!!!!!!! Total non-current assets 460,412 1,062,041 !!!!!!!! !!!!!!!! TOTAL ASSETS 660,580 2,453,537 !!!!!!!! !!!!!!!! CURRENT LIABILITIES

Trade and other payables 8 27,189 31,519 !!!!!!!! !!!!!!!! Total current liabilities 27,189 31,519 !!!!!!!! !!!!!!!! TOTAL LIABILITIES 27,189 31,519 !!!!!!!! !!!!!!!! NET ASSETS 633,391 2,422,018 """""""" """""""" EQUITY

Contributed equity 9 4,834,047 5,785,421 Accumulated losses 10 (4,321,821) (3,772,304) Other reserves 12 97,192 150,486

!!!!!!!! !!!!!!!! Total parent entity interest 609,418 2,163,603

Non-controlling interest 11 23,973 258,415 !!!!!!!! !!!!!!!! TOTAL EQUITY 633,391 2,422,018 """""""" """"""""

The above consolidated statement of financial position should be read in conjunction with the notes to the financial statements set out on pages 12 to 27.

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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY


Contributed equity

Accumulated losses

Market value reserve

Options reserve

Owners of the parent

Non-controlling

interest

Total

$ $ $ $ $ $ $

At 1 July 2013 5,785,421 (3,772,304) 69,997 80,489 2,163,603 258,415 2,422,018 """""""" """""""" """""""" """""""" """""""" """""""" """""""" Loss for the year - (549,517) - - (549,517) (21,332) (570,849) Other comprehensive income - - (53,294) - (53,294) 7,742 (45,552) !!!!!!!! !!!!!!!! !!!!!!!! !!!!!!!! !!!!!!!! !!!!!!!! !!!!!!!! Total comprehensive income for the year - (549,517) (53,294) - (602,811) (13,590) (616,401) Transactions with owners in their capacity as owners:

!!!!!!!! !!!!!!!! !!!!!!!! !!!!!!!! !!!!!!!! !!!!!!!! !!!!!!!!

Return of capital (949,680) - - - (949,680) (219,157) (1,168,837) Transaction costs of return of capital (1,694) - - - (1,694) (1,695) (3,389) !!!!!!!! !!!!!!!! !!!!!!!! !!!!!!!! !!!!!!!! !!!!!!!! !!!!!!!! At 30 June 2014 4,834,047 (4,321,821) 16,703 80,489 609,418 23,973 633,391 """""""" """""""" """""""" """""""" """""""" """""""" """"""""

The above consolidated statement of changes in equity should be read in conjunction with the notes to the financial statements set out on pages 12 to 27.

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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the Year Ended 30 June 2014 (Continued)

Contributed equity

Accumulated losses

Market value reserve

Options reserve

Owners of the parent

Non-controlling

interest

Total

$ $ $ $ $ $ $ At 1 July 2012 6,457,809 (3,725,051) (3,378) 78,679 2,808,059 3,635,445 6,443,504 """""""" """""""" """""""" """""""" """""""" """""""" """""""" Profit/(loss) for the year - (47,253) - - (47,253) 4,468 (42,785) Other comprehensive income - - 73,375 - 73,375 (7,742) 65,633 !!!!!!!! !!!!!!!! !!!!!!!! !!!!!!!! !!!!!!!! !!!!!!!! !!!!!!!! Total comprehensive income for the year - (47,253) 73,375 - 26,122 (3,274) 22,848 Transactions with owners in their capacity as owners:

!!!!!!!! !!!!!!!! !!!!!!!! !!!!!!!! !!!!!!!! !!!!!!!! !!!!!!!!

Return of capital (657,472) - - - (657,472) (3,360,410) (4,017,882) Transaction costs of return of capital (14,916) - - - (14,916) (14,916) (29,832)

!!!!!!!! !!!!!!!! !!!!!!!! !!!!!!!! !!!!!!!! !!!!!!!! !!!!!!!!

Other movements in equity: Share of associates equity based remuneration recognised in other reserves - - - 1,810 1,810 1,570 3,380 !!!!!!!! !!!!!!!! !!!!!!!! !!!!!!!! !!!!!!!! !!!!!!!! !!!!!!!! At 30 June 2013 5,785,421 (3,772,304) 69,997 80,489 2,163,603 258,415 2,422,018 """""""" """""""" """""""" """""""" """""""" """""""" """"""""

The above consolidated statement of changes in equity should be read in conjunction with the notes to the financial statements set out on pages 12 to 27.

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CONSOLIDATED STATEMENT OF CASH FLOWS


Notes 2014 2013

$ $

Cash flows from operating activities Cash payments in the course of operations (59,038) (136,166) Interest received 34,308 81,714 !!!!!!!! !!!!!!!! Net cash flows used in operating activities 15 (24,730) (54,452) !!!!!!!! !!!!!!!! Cash flows from investing activities Proceeds from sale of investments 34,187 221,044 !!!!!!!! !!!!!!!! Net cash flows provided by investing activities

34,187 221,044

!!!!!!!! !!!!!!!! Cash flows from financing activities Return of capital (1,172,226) (4,023,940) !!!!!!!! !!!!!!!! Net cash flows used in financing activities (1,172,226) (4,023,940) !!!!!!!! !!!!!!!! Net decrease in cash and cash equivalents held

(1,162,769) (3,857,348)

Cash and cash equivalents at the beginning of the financial year

1,361,740 5,219,088

!!!!!!!! !!!!!!!! Cash and cash equivalents at the end of the financial year 15 198,971 1,361,740 """""""" """""""" The above statement of cash flows should be read in conjunction with the notes to the financial statements set out on pages 12 to 27.

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Notes to the Financial Statements For the Year Ended 30 June 2014

Note 1: Statement of Accounting Policies

The significant policies which have been adopted in the preparation of this report are:

a) Basis of Preparation

The financial report is a general-purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001 and Australian Accounting Standards. The financial report has also been prepared on a historical cost basis, except for �available-for-sale� investments, which have been measured at fair value. Management is required to make judgements, estimates and assumptions in relation to the carrying value of assets and liabilities, that have significant risk of material adjustments in the next year and these have been disclosed in the relevant notes to the financial statements. b) Statement of Compliance

The financial report complies with Australian Accounting Standards, which include the Australian Accounting Interpretations. The financial report also complies with International Financial Reporting Standards (IFRS). The Group has adopted the following standards and amendments for the first time for the annual reporting period commencing 1 July 2013: AASB 10 Consolidated Financial Statements, AASB 11 Joint Arrangements, AASB 12 Disclosure of Interests in Other Entities, AASB 127 Separate Financial Statements and AASB 128 Investments in Associates and Joint Ventures. The new accounting policies provide more reliable and relevant information for users to assess the composition of the group and the amounts, timing and uncertainty of future cash flows and introduces a single definition of control that applies to all entities. Control exists when the investor can use its power to affect the amount of its returns. Application of the standard does not have a significant impact on the financial statements. AASB 13 Fair Value Measurement which explains how to measure fair value and aims to enhance fair value disclosures. Application of the standard does not have a significant impact on the financial statements. Certain new accounting standards and interpretations have been published that are not mandatory for the 30 June 2014 reporting period: AASB 9 Financial Instruments was released in late 2009 and is mandatory for periods beginning on or after 1 January 2017. The Standard will require two measurement models: amortised cost and fair value. Application of the standard is not expected to have a significant impact on the financial statements. AASB 2013-3 Amendments to AASB 136 � Recoverable Amount Disclosures for Non-Financial Assets was released in June 2012 and is mandatory for periods beginning on or after 1 January 2014. The standard introduces additional disclosure requirements where the recoverable amount of impaired assets is based on fair value less cost of disposal. Application of the standard is not expected to have a significant impact on the financial statements. There are no other standards that are not yet effective and that are expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions.

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Note 1: Statement of Accounting Policies (Cont.)

c) Basis of Consolidation Stapled Entities The consolidated financial statements comprise the financial statements of CVC Sustainable Investments Limited and the stapled entity, CVC Sustainable Investments No. 2 Limited as at 30 June from the date it was deemed that the Group had been constructed, 28 February 2007. Although CVC Sustainable Investments Limited does not have an ownership interest in CVC Sustainable Investments No. 2 Limited, in accordance with Interpretation 1002 Post-Date-of-Transition Stapling Arrangements CVC Sustainable Investments Limited has been identified as the acquirer and the parent entity for the purpose of preparing the consolidated financial statements and CVC Sustainable Investments No. 2 Limited is deemed to be the acquiree.

In preparing the consolidated financial statements, all inter company balances and transactions, income and expenses and profits and losses resulting from intra-group transactions have been eliminated in full and the reporting period and accounting policies of subsidiaries are consistent with those of the parent entity. The consolidation of the stapled entity is accounted for using the purchase method of accounting which allocates the cost of the business combination to the fair value of the assets acquired and the liabilities assumed at the date of acquisition. The net assets not held by CVC Sustainable Investments Limited are identified as non-controlling interests and presented in the consolidated statement of financial position within equity, separately from the Company�s equity holders� equity. The profit of CVC Sustainable Investments No. 2 Limited is also separately disclosed as a non-controlling interest in the profit of the Group. Although a non-controlling interest has been identified the shareholders of CVC Sustainable Investments Limited are also the shareholders of CVC Sustainable Investments No. 2 Limited by virtue of the stapling arrangement dated 28 February 2007.

d) Cash and Cash Equivalents For the statement of cash flow, cash includes cash on hand and short-term deposits with an original maturity of three months or less. e) Revenue Recognition (i) Interest income Revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial year.

(ii) Dividends

Revenue is recognised when the Group�s right to receive payment is established.

f) Trade and Other Payables Trade payables and other payables represent liabilities for goods and services provided to the Group prior to the end of the financial year that are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.

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Note 1: Statement of Accounting Policies (Cont.) g) Trade and Other Receivables

Receivables are recognised and carried at original invoice amount less a provision for impairment. Trade receivables are generally settled within 30 days. A provision for impairment is made when there is objective evidence that the Group will not be able to collect the debts. Bad debts are written off when identified. h) Investments and Other Financial Assets

Financial assets are classified as either financial assets at fair value through profit or loss, loans and receivables, �held-to-maturity� investments, or �available-for-sale� investments. The classification depends on the purpose for which the investments were acquired. When financial assets are recognised initially, they are measured at fair value plus directly attributable transaction costs. The Group determines the classification of its financial assets after initial recognition and, when allowed and appropriate, re-evaluates this designation at each financial year-end. The purchase and sale of financial assets are recognised on the trade date i.e. the date that the Group commits to purchase the asset. Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are carried at amortised cost using the effective interest method. Gains and losses are recognised in the statement of financial performance when the loans and receivables are derecognised or impaired, as well as through the amortisation process. �Available-for-sale� investments �Available-for-sale� investments are those non-derivative financial assets that are designated as �available-for-sale�. After initial recognition �available-for-sale� investments are measured at fair value with gains or losses being recognised as a separate component of equity until the investment is derecognised or until the investment is determined to be impaired, at which time the cumulative gain or loss previously reported in equity is recognised in the statement of financial performance. The fair value of investments that are actively traded in organised financial markets is determined by reference to quoted market bid prices at the close of business on the reporting date. For investments with no active market, fair value is determined using valuation techniques, such as discounted cash flow analysis or by reference to the investments underlying net assets. Where fair value cannot be reliably measured investments are measured at cost. The Group assesses at each reporting date whether there is objective evidence that a financial asset or group of financial assets is impaired. In the case of equity securities classified as �available-for-sale�, a significant or prolonged decline in the fair value of a security below its cost is considered as an indicator that the securities are impaired. If any such evidence exists for �available-for-sale� financial assets, the cumulative loss � measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in statement of financial performance � is removed from equity and recognised in the statement of financial performance. Impairment losses recognised in the statement of financial performance on equity instruments classified as �available-for-sale� are not reversed through the statement of financial performance. i) Impairment

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset�s carrying amount exceeds its recoverable amount. Non-financial assets that suffered an impairment are tested for possible reversal of the impairment whenever events or changes in circumstances indicate that the impairment may have reversed.

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j) Income Tax and Other Taxes

Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities on the current period�s taxable income at the tax rates enacted by the reporting date. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred income tax is provided on all temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profits will be available against which deductible temporary differences and the carry-forward of unused tax credit can be utilised. Unrecognised deferred income tax assets are reassessed at each reporting date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.

Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation authority.

Income taxes relating to items recognised directly in equity are recognised in equity and not in the statement of financial performance.

Goods and Services Tax

Revenues, expenses and assets are recognised net of the amount of Goods and Services Tax (GST), except:

o when the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense item as applicable; and

o receivables and payables, which are stated with the amount of GST included.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the statement of financial position.

Cash flows are included in the statement of cash flows on a gross basis and the GST component of cash flows arising from investing and financing activities which are recoverable from, or payable to, the taxation authority are classified as operating cash flows.

k) Contributed Equity

Issued capital is recognised at the fair value of the consideration received by the Company. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from proceeds.

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NOTE 2: Parent Company Information The salient financial information in relation to the parent company, CVC Sustainable Investments Limited, are as follows: 2014 2013 $ $ Current assets 162,738 1,117,321 Non-current assets 460,412 1,062,041 !!!!!!!! !!!!!!!! Total assets 623,150 2,179,362 !!!!!!!! !!!!!!!!

Current liabilities 13,732 15,759 !!!!!!!! !!!!!!!!

Total liabilities 13,732 15,759 !!!!!!!! !!!!!!!!

Net assets 609,418 2,163,603 """""""" """"""""

Contributed equity 4,834,047 5,785,421

Accumulated losses (4,321,821) (3,772,304)

Other reserves 97,192 150,486 !!!!!!!! !!!!!!!! Equity 609,418 2,163,603 """""""" """"""""

Net loss after tax (549,517) (47,253) """""""" """""""" Note 3: Dividends

No dividends have been declared, paid or provided by the Group for the period ended 30 June 2014. Franking credits available are: CVC Sustainable Investments Limited 365,336 365,336 CVC Sustainable Investments No. 2 Limited 233,742 233,742 !!!!!!!! !!!!!!!! 599,078 599,078 """""""" """"""""

,

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Note 4: Auditor�s Remuneration The auditor of the Group is HLB Mann Judd. 2014 2013 $ $ Amounts received or due and receivable by the auditors of the Group: Audit or review of the financial report 31,000 38,000 """""""" """""""" The auditor received no other benefits. Note 5: Income Tax (a) Income tax expense Accounting loss before income tax (570,849) (42,785) """""""" """""""" Income tax benefit at the statutory income tax rate of 25% (142,712) (10,696) Reduced PDF tax rate on net investment income 54,054 8,515 Franked dividends received - (6,500) Deferred tax not recognised 88,658 8,681 !!!!!!!! !!!!!!!! Income tax expense reported in the statement of financial performance - - """""""" """""""" Deferred income tax at 30 June related to the following items:

Deferred tax assets: - Cost of capital raising 4,105 8,464 - Provision and accrued expenses 4,894 6,018 - Unrealised loss on investments 166,884 125,787 - Carried forward losses 1,966,567 1,904,414 - Deferred tax assets not recognised (2,142,450) (2,044,683) !!!!!!!! !!!!!!!! - - """""""" """""""" Note 6: Trade and Other Receivables Current Other asset 1,197 3,096 """""""" """"""""

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2014 2013 $ $ Note 7: Financial Assets � �Available-For-Sale� Current Listed shares at market value - 26,660 """""""" """""""" Non-current Unlisted shares in other corporations 1,229,585 1,299,581 Unlisted shares in related entity 343,391 260,446 Impairment (1,112,564) (497,986) !!!!!!!! !!!!!!!! 460,412 1,062,041 """""""" """"""""

Unlisted shares in other corporations comprise:

- 7% shareholding in Hi-Head Power valued at $207,980 (2013: $806,903); - 1% shareholding in BioPower Systems Pty Limited at a realisable value of $nil (2013: $19,408).

Unlisted shares in related entity comprise:

- 20% shareholding in Wind Corporation Australia Pty Limited at a fair value of $252,433 (2013: $235,730). The investment is not accounted for in accordance with AASB 128 Investments in Associates as one shareholder controls the remaining 80% interest so no influence is exerted on the operations of the Company.

Impairment of investments Where there has been a reduction in the share price of an investment that appears to be significant or prolonged management have made an assessment as to whether impairment is required. (a) Unlisted shares in other corporations BioPower Systems Pty Limited The carrying value of BioPower Systems Pty Limited is based on an assessment of forecast earnings to determine fair value, using the most recent financial report. Hi-Head Power The value of Hi-Head Power shares has been determined based on the conversion price of the investment�s convertible notes issued previous to the year end. The determination of the fair value has resulted in an impairment charge of $528,927 (2013: $nil). (b) Unlisted shares in related entity Wind Corporation Australia Pty Limited The carrying value of Wind Corporation Australia Pty Limited is based on share of the investment�s Net Tangible Asset value as at 30 June 2014. The determination of the fair value has resulted in an impairment charge of $nil (2013: $24,716).

(c) Listed shares at market value

The carrying value of the investment classified as �Listed shares at market value� had been determined by using the fair value approach. The closing �bid-price� was determined to be an appropriate indication for the fair value of the investment.

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Note 8: Trade and Other Payables

Current: 2014 2013 $ $ Sundry creditors and accruals 27,189 31,519 """""""" """""""" Trade creditors and accruals are non-interest bearing and are normally settled on 30 day terms.

Note 9: Contributed Equity 2014 2013 No of Shares $ No of Shares $ Ordinary shares Balance at the beginning of the year 73,052,389 5,785,421 73,052,389 6,457,809 Return of capital - (949,680) - (657,472) Transaction costs of return of capital - (1,694) - (14,916) !!!!!!!! !!!!!!!! !!!!!!!! !!!!!!!! Balance at the end of the year 73,052,389 4,834,047 73,052,389 5,785,421 """""""" """""""" """""""" """"""""

On 11 June 2014 an equal reduction of share capital of 1.6 cents per stapled security, which included 1.3 cents per share paid by CVC Sustainable Investment Limited and 0.3 cents per share paid by CVC Sustainable Investments No. 2 Limited, took place.

On 31 August 2012 an equal reduction of share capital of 5.5 cents per stapled security, which included 0.9 cents per share paid by CVC Sustainable Investment Limited and 4.6 cents per share paid by CVC Sustainable Investments No. 2 Limited, took place.

Note 10: Accumulated Losses 2014 2013 $ $ Balance at the beginning of the year (3,772,304) (3,725,051) Net loss from operating activities (549,517) (47,253)

!!!!!!!! !!!!!!!! Balance at the end of the year (4,321,821) (3,772,304)

"""""""" """"""""

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Note 11: Non-controlling Interest 2014 2013 $ $

Reconciliation of non-controlling interest in stapled entities Balance at the beginning of the year 258,415 3,635,445 Share of net (loss)/profit (21,332) 4,468

Revaluation of investment 7,742 (7,742)

Return of capital (219,157) (3,360,410)

Transaction costs of return of capital (1,695) (14,916)

Other reserves - 1,570

!!!!!!! !!!!!!! Balance at the end of the year 23,973 258,415

""""""" """""""

The non-controlling interest at the end of the year comprises interests in

Share capital 3,834,254 4,055,106

Accumulated losses (3,901,190) (3,879,858)

Other reserve 90,909 83,167

!!!!!!! !!!!!!! 23,973 258,415

""""""" """""""

The net assets not held by CVC Sustainable Investments Limited are identified as non-controlling interests. The equity of CVC Sustainable Investments No. 2 Limited is held directly by shareholders and in accordance with Interpretation 1002 Post-Date-of-Transition Stapling Arrangements the non-controlling interest represents the balance of equity held by shareholders of CVC Sustainable Investments No. 2 Limited.

Note 12: Other Reserves Options Market value Total other reserve reserve reserves $ $ $

Year ended 30 June 2014:

Balance at the beginning of the year 80,489 69,997 150,486 Change in fair value of �available-for-sale� assets - (53,294) (53,294) !!!!!!! !!!!!!! !!!!!!! Balance at the end of the year 80,489 16,703 97,192 """"""" """"""" """""""

21




Note 12: Other Reserves (Cont.) Options Market value Total other reserve reserve reserves $ $ $

Year ended 30 June 2013:

Balance at the beginning of the year 78,679 (3,378) 75,301 Change in fair value of �available-for-sale� assets - 74,885 74,885 Transferred to other comprehensive income on realisation - (1,510) (1,510) Share of options reserve of associated entity 1,810 - 1,810 !!!!!!! !!!!!!! !!!!!!! Balance at the end of the year 80,489 69,997 150,486 """"""" """"""" """""""

Market Value Reserve The market value reserve is used to record increments and decrements in the fair value of �available-for-sale� financial assets to the extent that they offset one another. Options Reserve The options reserve includes a share of the options reserve of equity accounted investments and is used to record the value of options issued to the investment manager, CVC Managers Pty Limited. As at 30 June 2014, the following options are outstanding:



22




Note 13: Financial Instruments The Group�s activities expose it to a variety of financial risks: market risk (including market price risk and interest rate risk), credit risk and liquidity risk. The Group�s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Group. The Group uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate and price risk. The responsibility for operational risk management resides with the Board of Directors who seeks to manage the exposure of the Group. There have been no significant changes in the types of financial risks; or the Group�s risk management program (including methods used to measure the risks) since the prior year. (a) Interest rate risk The Group�s exposure to interest rate risks of financial assets and liabilities both recognised and unrecognised at the balance date are as follows:

Notes Floating Fixed interest rate Non- Total interest

rate 1 year

or less 1 to 5 years

interest bearing

$ $ $ $ $ 2014 Financial assets Cash and cash equivalents 15 198,971 - - - 198,971 Trade and other receivables 6 - - - 1,197 1,197 !!!!!! !!!!!! !!!!!! !!!!!! !!!!!!

Financial liabilities Trade and other payables 8 - - - 27,189 27,189 !!!!!! !!!!!! !!!!!! !!!!!! !!!!!!

2013 Financial assets Cash and cash equivalents 15 1,361,740 - - - 1,361,740 Trade and other receivables 6 - - - 3,096 3,096 !!!!!! !!!!!! !!!!!! !!!!!! !!!!!!

Financial liabilities Trade and other payables 8 - - - 31,519 31,519 !!!!!! !!!!!! !!!!!! !!!!!! !!!!!!

23




Note 13: Financial Instruments (Cont.) (a) Interest rate risk (cont.) The Group holds a significant amount of cash balances in the financial year 2014 which are exposed to movements in interest rates. To reduce the risk the Group typically deposits uncommitted cash in high interest rate accounts with financial institutions. Receivables and payables are non-interest bearing. Sensitivity As the Group expects interest rates to increase by 25 basis points during the 2015 financial year (2013: 50 basis points lower), at reporting date the impact on the Group, with all other varieties held constant, would be Increase of 25 bp Decrease of 50 bp $ $ 2014 Net profit 3,221 n/a Equity increase 3,221 n/a 2013 Net loss n/a (9,691) Equity decrease n/a (9,691)

(b) Market Price Risk The Group had investments in listed securities which could be adversely affected if general equity market values were to decline. There was no exposure to market price risk at balance date.

Sensitivity

Listed Securities - Current At reporting date, if equity prices had been 10% higher/(lower) while all other variables were held constant the impact of the Group would be:

Increase of 10% Decrease of 10% $ $ 2014 Net profit/(loss) n/a n/a Equity increase/(decrease) n/a n/a 2013 Net profit/(loss) - - Equity increase/(decrease) 2,666 (2,666)

24




Note 13: Financial Instruments (Cont.) (c) Credit Risk Exposure

Credit risk refers to the loss that the Group would incur if a debtor or a counterparty fails to perform under its obligations. The carrying amounts of financial assets recognised in the statement of financial position best represent the Group�s maximum exposure to credit risk at reporting date. The Group seeks to limit its exposure to credit risk by performing appropriate background investigations on counterparties before entering into arrangements with them and to obtain collateral with a value in excess of the counterparty�s obligations to the Group, providing a �margin of safety� against loss. At reporting date, the Group�s significant exposure of credit risk is its deposits with financial institutions, which are mitigated by the requirement that deposits are only held with institutions with an �investment grade� credit rating. (d) Liquidity Risk The Group manages liquidity risk by maintaining sufficient cash balances, holding liquid investments that could be realised to meet commitments. The Group continuously monitors forecast and actual cash flows and matches the maturity profiles of financial assets and liabilities. The following table details the Group�s contractual liabilities: Less than 6

months 6 months to

1 year 1 to 5 years Total $ $ $ $ 2014 Trade and other payables 27,189 - - 27,189 !!!!!!! !!!!!!! !!!!!!! !!!!!!!

2013 Trade and other payables 31,519 - - 31,519 !!!!!!! !!!!!!! !!!!!!! !!!!!!!

(e) Fair Value

The Group uses various methods in estimating the fair value of a financial instrument. The methods comprise: Level 1 � the fair value is calculated using quoted prices in active markets. Level 2 � the fair value is estimated using inputs other than quoted prices included in Level 1 that are observable for the asset, either directly (as prices) or indirectly (derived from prices). Level 3 � the fair value is estimated using inputs for the asset that are not based on observable market data.

25




Note 13: Financial Instruments (Cont.) (e) Fair Value (Cont.) The fair value of the financial instruments as well as the methods used to estimate the fair value are summarised in the table below.

Quoted market price

(Level 1)

Valuation technique �

market observable

inputs (Level 2)

Valuation technique � non market observable

inputs (Level3)

Total

$ $ $ $ Year ending 30 June 2014 Financial assets �Available-for-sale� investments Unlisted shares at realisable value - - 460,412 460,412 """"""" """"""" """"""" """""""

Year ending 30 June 2013 Financial assets �Available-for-sale� investments Listed shares at market value 26,660 - - 26,660 Unlisted shares at realisable value - - 1,062,041 1,062,041 !!!!!!! !!!!!!! !!!!!!! !!!!!!! 26,660 - 1,062,041 1,088,701 """"""" """"""" """"""" """""""

Reconciliation of Level 3 fair value movements: 2014 2013 $ $ Balance at the beginning of the year 1,062,041 1,685,186 Capital reduction - (673,314) Losses recognised in other income* (548,335) (24,716) (Losses)/gain recognised in other comprehensive income (53,294) 74,885 !!!!!!! !!!!!!! Balance at the end of the year 460,412 1,062,041 """"""" """""""

*Unrealised losses recognised in profit or loss attributable to assets held at the end of the report period (548,335) (24,716) There is no quantitative information regarding the Level 3 financial investments. The fair values were based on either the share of investment�s Net Tangible Asset value as at 30 June 2014 or the conversion price of the investment�s convertible note issued previous to the year end.

26




Note 14: Related Parties No amount of income was paid or payable or otherwise made available, to any key management personnel of the Group directly or indirectly in the year ended 30 June 2014 (2013: $nil). Transactions with related parties The Group paid management fees to its investment manager calculated at 2.5% of the net assets of the company at the end of the previous financial year. CVC Managers Pty Limited agreed to stop charging the management fees effective 30 June 2013. Fees of $76,758 were paid to CVC Managers Pty Limited during the 2013 financial year. Messrs Beard and Gould were Directors of CVC Managers Pty Limited during the year. CVC Managers Pty Limited is a controlled entity of CVC Limited. The loan payable to Wind Corporation Australia Pty Limited was fully repaid during the 2013 financial year via dividend of $26,001 declared and paid on 30 November 2012, and the return of capital of $673,314 completed at 31 December 2012 by Wind Corporation Australia Pty Limited. Note 15: Notes to the Statement of Cash Flows

Reconciliation of Cash For the purposes of the statement of cash flows, cash and cash equivalents comprise the following at 30 June:

2014 2013 $ $

Cash at bank 198,971 1,361,740 !!!!!!!! !!!!!!!! Cash and cash equivalents 198,971 1,361,740 """""""" """"""""

Cash at bank earns interest at floating rates based on daily bank deposit rates. The carrying amount of cash and cash equivalents represents fair value.

Reconciliation of net loss after income tax to net cash from operations Net loss (570,849) (42,785) Adjustments for

Net loss on sale of equity investments 213 1,393 Impairment recoveries - (2,122) Impairment of investments 548,335 24,716 Dividend income - (26,001)

Change in operating assets and liabilities: Movements in trade and other receivables 65 8,959 Movements in trade and other payables 2,506 (18,612) Movements in sundry creditors and accruals (5,000) -

!!!!!!!! !!!!!!!! Cash flows used in operating activities (24,730) (54,452) """""""" """"""""

Note 16: Other Information CVC Sustainable Investments Limited was incorporated on 21st July 1999. The Group is registered and domiciled in Australia. Its registered office and principal place of business are at Level 6, 1 Alfred Street, Sydney, NSW 2000.

27




Note 17: Events Occurring after Reporting Date There are no matters or circumstances that have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Group, the results of those operations or the state of affairs of the Group in future financial years. Note 18: Stapled Entity The consolidated financial statements include CVC Sustainable Investments No. 2 Limited. On 28 February 2007 a restructure was undertaken by the Company such that the share capital was reduced by an in-specie distribution of all the fully paid ordinary shares in CVC Sustainable Investments No. 2 Limited to the shareholders in the Company. An agreement was signed that has the effect of stapling the shares of CVC Sustainable Investments Limited to CVC Sustainable Investments No. 2 Limited together, and although separate legal entities are not able to be separately traded. Although CVC Sustainable Investments Limited does not have an ownership interest in CVC Sustainable Investments No. 2 Limited, CVC Sustainable Investments Limited has been identified as the acquirer and the parent entity for the purpose of preparing the consolidated financial statements and CVC Sustainable Investments No. 2 Limited is deemed to be the acquiree.

29


ACN 35 088 731 837

AUDITOR’S INDEPENDENCE DECLARATION

As lead auditor for the audit of the consolidated financial report of CVC Sustainable Investments Limited for the year ended 30 June 2014 I declare that, to the best of my knowledge and belief, there have been no contraventions of: (a) the auditor independence requirements of the Corporations Act 2001 in relation to the audit;

and (b) any applicable code of professional conduct in relation to the audit. This declaration is in relation to the CVC Sustainable Investments Limited and the entities it controlled during the year. Sydney, NSW M D Muller 30 September 2014 Partner

30


ACN 35 088 731 837

INDEPENDENT AUDITOR’S REPORT

To the members of CVC Sustainable Investments Limited:

We have audited the accompanying financial report of CVC Sustainable Investments Limited (“the company”), which comprises the consolidated statement of financial position as at 30 June 2014, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration, for the consolidated entity. The consolidated entity comprises the company and the entities it controlled at the year’s end or from time to time during the financial year.

Directors’ Responsibility for the Financial Report

The directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In Note 1, the directors also state, in accordance with Accounting Standard AASB 101: Presentation of Financial Statements, that the consolidated financial statements comply with International Financial Reporting Standards.

Auditor’s Responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s and its controlled entities’ internal control.

An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

Our audit did not involve an analysis of the prudence of business decisions made by directors or management.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

31


ACN 35 088 731 837

INDEPENDENT AUDITOR’S REPORT (continued)

Independence

In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.

Opinion

In our opinion:

(a) the financial report of CVC Sustainable Investments Limited is in accordance with the Corporations Act 2001, including:

(a) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2014 and its performance for the year ended on that date; and

(b) complying with Australian Accounting Standards and the Corporations Regulations 2001; and

(b) the financial statements also comply with International Financial Reporting Standards as disclosed in Note 1.

HLB Mann Judd M D Muller Chartered Accountants Partner Sydney, NSW 30 September 2014

CVC SUSTAINABLE INVESTMENTS

NO. 2 LIMITED

ABN 58 123 028 026

FINANCIAL REPORT

FOR THE YEAR ENDED

30 JUNE 2014

The financial report was authorised for issue by the Directors on 30 September 2014.

The Company has the power to amend and reissue the financial report.

2

CVC SUSTAINABLE INVESTMENTS NO. 2 LIMITED

DIRECTORS’ REPORT


The Directors present their report together with the financial report of CVC Sustainable Investments No. 2 Limited (the “Company”) for the year ended 30 June 2014, and the Auditors’ report thereon. Officers The Directors and Secretaries in office at the date of this report and at any time during the year are: Vanda Russell Gould (Chairman) B Com (UNSW), M Com (UNSW) Fellow of the Institute of Chartered Accountants in Australia. Chairman of Vita Life Sciences Limited, Cyclopharm Limited, CVC Limited, CVC Private Equity Limited, CVC Sustainable Investments Limited and CVC Property Managers Limited as Responsible Entity for CVC Property Fund and Director of numerous private and public companies including educational establishments. John Douglas Read (Non Executive Director) B Sc (Hons) (Cant.), MBA (AGSM). Fellow of the Australian Institute of Company Directors. Director of Patrys Limited, CVC Limited, CVC Sustainable Investments Limited, CVC Private Equity Limited and formerly Director of The Environmental Group Limited. Alexander Damien Harry Beard (Non Executive Director and Company Secretary) B Com (UNSW) Fellow of the Institute of Chartered Accountants in Australia. Member of the Australian Institute of Company Directors. Chairman of Cellnet Limited and Director of CVC Limited, Villa World Limited, Mnemon Limited (formerly Mnet Group Limited), CVC Property Managers Limited as Responsible Entity for CVC Property Fund, CVC Sustainable Investments Limited and CVC Private Equity Limited. Formerly Director of Lonestar Resources Limited (formerly Amadeus Energy Limited). Mark Fogarty (Non Executive Director) B LegS (Macq Uni), LLM (Environ Law) (Uni. of Syd), MMgT (MGSM) Admitted to Practise NSW Supreme Court Director of Asia Carbon Pacific Pty Limited and CVC Sustainable Investments Limited. John Andrew Hunter (Company Secretary) B.Com. (ANU), MBA (MGSM) Member of the Institute of Chartered Accountants in Australia.

3


DIRECTORS’ REPORT (Cont.) For the Year Ended 30 June 2014

Directors' Meetings The number of Directors' Meetings and number of meetings attended by each of the Directors of the Company during the financial were: Number of meetings attended Number of meetings held Mr V R Gould 2 3 Mr J D Read 3 3 Mr A D H Beard 3 3 Mr P M Fogarty 1 3

Audit Committee Meetings There were no audit committee meetings of the Company during the financial year.

Principal Activity Investment in a diversified combination of established small Australian companies that offer both strong return potential and improved environmental outcomes. Operating Results The Company recorded after tax loss of $21,332 (2013 profit of: $4,468) for the year. Dividends No dividends have been declared, paid or provided during the year ended 30 June 2014.

Significant Changes in the State of Affairs of the Company There were no significant changes in the state of affairs of the Company that occurred during the year not otherwise disclosed in this report or the financial statements. Review of Operations A reduction of share capital of 0.3 cents per share was approved by shareholders at a general meeting held on 23 May 2014 and paid on 11 June 2014. This equated to a total cash payment of $219,157. During the year, the Company sold its investment in The Environmental Group Limited for proceeds of $34,187.

4

CVC SUSTAINABLE INVESTMENTS NO. 2 LIMITED DIRECTORS’ REPORT (Cont.)


Share Options over Ordinary Shares CVC Managers Pty Limited, the manager of the Company, has been issued 3,183,974 options in accordance with the management agreement. The options were valued using the Black-Scholes model based on the security price at which the options are exercised. As the options do not have any vesting conditions the full value of $90,909 has been credited to the share options reserve and charged as a costs of the capital raising on the date of grant in the Company. As at 30 June 2014, the following options are outstanding:



Directors’ Interests in Shares and Options of the Company Messrs Gould, Read and Beard have an indirect interest in 10,846,336 shares in the Company held by CVC Limited. Messrs Gould and Beard have an indirect interest in 6,295,220 shares and 3,183,974 options in the Company held by CVC Managers Pty Limited. Mr Gould has an indirect interest in 2,300 shares in the Company, and Mr Beard has an indirect interest in 27,013 shares in the Company.

6


STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME


Notes 2014 2013

$ $

INCOME

Interest received 6,790 47,287

Other income - 11,887

──────── ────────

Total income 6,790 59,174

EXPENSES Audit fees 3 15,500 19,000 Insurance 759 1,367 Management and consulting fees - 20,568

Printing 125 265

Share registry 6,052 6,415 Net loss on sale of equity investment 213 1,692 Administrative expenses 5,473 5,399

──────── ────────

(Loss)/profit before related income tax expense (21,332) 4,468

──────── ────────

Net (loss)/profit 9 (21,332) 4,468

════════ ════════

OTHER COMPREHENSIVE INCOME

Movements in fair values of “available-for-sale” financial assets directly in equity - (7,742)

Movements in fair values of “available-for-sale” financial assets transferred to other comprehensive income on realisation 7,742 -

──────── ──────── Other comprehensive income for the period, net of tax 7,742 (7,742) ──────── ──────── Total comprehensive income for the period (13,590) (3,274) ──────── ────────

The above statement of profit or loss and other comprehensive income should be read in conjunction with the notes to the financial statements set out on pages 10 to 22.

7


STATEMENT OF FINANCIAL POSITION

as at 30 June 2014

Notes 2014 2013 $ $ CURRENT ASSETS Cash and cash equivalents 13 36,843 246,701 Trade and other receivables 5 587 814 Financial assets “available for sale” 6 - 26,660 ──────── ──────── Total current assets 37,430 274,175 ──────── ──────── TOTAL ASSETS 37,430 274,175 ──────── ──────── CURRENT LIABILITIES Trade and other payables 7 13,457 15,760 ──────── ──────── Total current liabilities 13,457 15,760 ──────── ──────── TOTAL LIABILITIES 13,457 15,760 ──────── ──────── NET ASSETS 23,973 258,415 ════════ ════════ EQUITY Contributed equity 8 3,834,254 4,055,106 Accumulated losses 9 (3,901,190) (3,879,858) Other reserves 10 90,909 83,167 ──────── ──────── TOTAL EQUITY 23,973 258,415 ════════ ════════

The above statement of financial position should be read in conjunction with the notes to the financial statements set out on pages 10 to 22.

8


STATEMENT OF CHANGES IN EQUITY


Contributed

equity Accumulated

losses Market value

reserve Options reserve

Total

$ $ $ $ $

At 1 July 2013 4,055,106 (3,879,858) (7,742) 90,909 258,415 ════════ ════════ ════════ ════════ ════════

Loss for the year - (21,332) - - (21,332) Other comprehensive income - 7,742 - 7,742

──────── ──────── ──────── ──────── ──────── Total comprehensive income for the year - (21,332) 7,742 - (13,590) ──────── ──────── ──────── ──────── ──────── Transactions with shareholders:

Return of capital (219,157) - - - (219,157) Transaction costs of return of capital (1,695) - - - (1,695)

──────── ──────── ──────── ──────── ────────

At 30 June 2014 3,834,254 (3,901,190) - 90,909 23,973

════════ ════════ ════════ ════════ ════════ At 1 July 2012 7,430,432 (3,884,326) - 89,339 3,635,445

════════ ════════ ════════ ════════ ════════

Profit for the year - 4,468 - - 4,468 Other comprehensive income - - (7,742) - (7,742)

──────── ──────── ──────── ──────── ────────

Total comprehensive income for the year - 4,468 (7,742) - (3,274) ──────── ──────── ──────── ──────── ──────── Transactions with shareholders:

Return of capital (3,360,410) - - - (3,360,410) Transaction costs of return of capital (14,916) - - - (14,916) Other movements in equity:

Share of associates equity based remuneration recognised in other reserves - - - 1,570 1,570

──────── ──────── ──────── ──────── ──────── At 30 June 2013 4,055,106 (3,879,858) (7,742) 90,909 258,415

════════ ════════ ════════ ════════ ════════ The above statement of changes in equity should be read in conjunction with the notes to the financial statements set out on pages 10 to 22.

9


STATEMENT OF CASH FLOWS


Notes 2014 2013

$ $

Cash flows from operating activities Cash payments in the course of operations (29,982) (49,646) Interest received 6,789 54,422 ──────── ──────── Net cash flows (used in)/provided by operating activities 13 (23,193) 4,776 ──────── ──────── Cash flows from investing activities Proceeds from sale of investments 34,187 23,681 ──────── ──────── Net cash flows provided by investing activities 34,187 23,681 ──────── ──────── Cash flows from financing activities Return of capital (220,852) (3,363,439) Repayment of borrowings - (699,314) ──────── ──────── Net cash flows used in financing activities (220,852) (4,062,753) ──────── ──────── Net decrease in cash and cash equivalents held (209,858) (4,034,296) ──────── ──────── Cash and cash equivalents at the beginning of the financial year 246,701 4,280,997 Cash and cash equivalents at the end of the financial year 13 36,843 246,701 ════════ ════════ The above statement of cash flows should be read in conjunction with the notes to the financial statements set out on pages 10 to 22.

10



Note 1: Statement of Accounting Policies The significant policies which have been adopted in the preparation of this report are: a) Basis of Preparation The financial report is a general-purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001 and Australian Accounting Standards. The financial report has also been prepared on a historical cost basis, except for “available-for-sale” investments, which have been measured at fair value. Management is required to make judgements, estimates and assumptions in relation to the carrying value of assets and liabilities, that have significant risk of material adjustments in the next year and these have been disclosed in the relevant notes to the financial statements. b) Statement of Compliance The financial report complies with Australian Accounting Standards, which include the Australian Accounting Interpretations. The financial report also complies with International Financial Reporting Standards (IFRS). The Company has adopted the following standards and amendments for the first time for the annual reporting period commencing 1 July 2013: AASB 13 Fair Value Measurement which explains how to measure fair value and aims to enhance fair value disclosures. Application of the standard does not have a significant impact on the financial statements. Certain new accounting standards and interpretations have been published that are not mandatory for the 30 June 2014 reporting period: AASB 9 Financial Instruments was released in late 2009 and is mandatory for periods beginning on or after 1 January 2017. The Standard will require two measurement models: amortised cost and fair value. Application of the standard is not expected to have a significant impact on the financial statements. AASB 2013-3 Amendments to AASB 136 – Recoverable Amount Disclosures for Non-Financial Assets was released in June 2012 and is mandatory for periods beginning on or after 1 January 2014. The standard introduces additional disclosure requirements where the recoverable amount of impaired assets is based on fair value less cost of disposal. Application of the standard is not expected to have a significant impact on the financial statements. There are no other standards that are not yet effective and that are expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions.

11


Notes to the Financial Statements (Cont.)



c) Cash and Cash Equivalents For the statement of cash flows, cash includes cash on hand and short-term deposits with an original maturity of three months or less.

d) Revenue Recognition

(i) Interest income

Revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant year using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial year.

(ii) Dividends

Revenue is recognised when the Company’s right to receive payment is established.

e) Trade and Other Payables

Trade payables and other payables represent liabilities for goods and services provided to the Company prior to the end of the financial year that are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.

f) Trade and Other Receivables

Receivables are recognised and carried at original invoice amount less a provision of impairment. Trade receivables are generally settled within 30 days.

A provision for impairment is made when there is objective evidence that the Company will not be able to collect the debts. Bad debts are written off when identified.

g) Investments and Other Financial Assets

Financial assets are classified as either financial assets at fair value through comprehensive income, loans and receivables, “held-to-maturity” investments, or “available-for-sale” investments. The classification depends on the purpose for which the investments were acquired. When financial assets are recognised initially, they are measured at fair value plus directly attributable transaction costs. The Company determines the classification of its financial assets after initial recognition and, when allowed and appropriate, re-evaluates this designation at each financial year-end.

The purchase and sale of financial assets are recognised on the trade date i.e. the date that the Company commits to purchase the asset.

Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are carried at amortised cost using the effective interest method. Gains and losses are recognised in statement of profit or loss and other comprehensive income when the loans and receivables are derecognised or impaired, as well as through the amortisation process.

12




Note 1: Statement of Accounting Policies (Cont.) g) Investments and Other Financial Assets (Cont.) “Available-for-sale” investments “Available-for-sale” investments are those non-derivative financial assets that are designated as “available-for-sale”. After initial recognition “available-for-sale” investments are measured at fair value with gains or losses being recognised as a separate component of equity until the investment is derecognised or until the investment is determined to be impaired, at which time the cumulative gain or loss previously reported in equity is recognised in statement of profit or loss and other comprehensive income.

The fair value of investments that are actively traded in organised financial markets is determined by reference to quoted market bid prices at the close of business on the reporting date. For investments with no active market, fair value is determined using valuation techniques, such as discounted cash flow analysis or by reference to the investments underlying net assets. Where fair value cannot be reliably measured investments are measured at cost. The Company assesses at each reporting date whether there is objective evidence that a financial asset or group of financial assets is impaired. In the case of equity securities classified as “available-for-sale”, a significant or prolonged decline in the fair value of a security below its cost is considered as an indicator that the securities are impaired. If any such evidence exists for “available-for-sale” financial assets, the cumulative loss – measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in statement of profit or loss and other comprehensive income – is removed from equity and recognised in the statement of profit or loss and other comprehensive income. Impairment losses recognised in the statement of profit or loss and other comprehensive income on equity instruments classified as “available-for-sale” are not reversed through the statement of profit or loss and other comprehensive income. h) Income Tax and Other Taxes

Current tax assets and liabilities for the current and prior years are measured at the amount expected to be recovered from or paid to the taxation authorities on the current year’s taxable income at the tax rates enacted by the reporting date. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Deferred income tax is provided on all temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profits will be available against which deductible temporary differences and the carry-forward of unused tax credit can be utilised. Unrecognised deferred income tax assets are reassessed at each reporting date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered. The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised. Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation authority. Income taxes relating to items recognised directly in equity are recognised in equity and not in statement of profit or loss and other comprehensive income.

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Note 1: Statement of Accounting Policies (Cont.) h) Income Tax and Other Taxes (Cont.) Goods and Services Tax

Revenues, expenses and assets are recognised net of the amount of Goods and Services Tax (GST), except:

o when the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense item as applicable; and

o receivables and payables, which are stated with the amount of GST included.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the statement of financial position. Cash flows are included in the statement of cash flows on a gross basis and the GST component of cash flows arising from investing and financing activities which are recoverable from, or payable to, the taxation authority are classified as operating cash flows. i) Contributed Equity Issued capital is recognised at the fair value of the consideration received by the Company. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from proceeds. j) Impairment Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. Non-financial assets that suffered impairment are tested for possible reversal of the impairment whenever events or changes in circumstances indicate that the impairment may have reversed.

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Note 2: Dividends No dividends have been declared, paid or provided in the year ended 30 June 2014. Franking credits available is $233,742 (2013: $233,742). 2014 2013 $ $ Note 3: Auditors’ Remuneration The auditor of the Company is HLB Mann Judd. The auditor received no other benefits. Amounts received or due and receivable by the auditor of the Company: Auditing or reviewing the financial report 15,500 19,000 ════════ ════════

Note 4: Income Tax (a) Income tax benefit Accounting (loss)/profit before income tax (21,332) 4,468 ──────── ──────── Income tax (benefit)/expense at the statutory income tax rate of 30% (6,400) 1,340 Deferred tax not recognised 6,400 (1,340) ──────── ──────── Income tax expense reported in the statement of profit or loss and other comprehensive income

- -

════════ ════════ (b) Deferred income tax Deferred income tax at 30 June related to the following items:

Deferred tax assets: - Costs of capital raising 2,738 5,905 - Provision and accrued expenses 3,263 4,012 - Unrealised loss on investments - 51,653 - Carried forward losses 1,368,744 1,308,588 - Deferred tax assets not recognised (1,374,745) (1,370,158) ──────── ──────── - - ════════ ════════

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Notes to the Financial Statements (Cont.) For the Year Ended 30 June 2014

2014 2013 $ $ Note 5: Trade and Other Receivables

Current Other assets 587 814 ════════ ════════ Receivables Receivables are non-interest bearing and are generally on 30 day terms. Note 6: Financial Assets – “Available-For-Sale” Current Listed shares at market value - 26,660 ════════ ════════ (a) Listed shares at market value

The carrying value of the investment classified as “Listed shares at market value” had been determined by using the fair value approach. The closing “bid-price” was determined to be an appropriate indication for the fair value of the investment. The investment was fully sold during the financial year.

Note 7: Trade and Other Payables

Current Sundry creditors and accruals 13,457 15,760 ════════ ════════

Sundry creditors and accruals are non-interest bearing and are normally settled on 30 day terms.

Note 8: Contributed Equity 2014 2013 No of Shares $ No of Shares $ Ordinary shares Balance at the beginning of the year

73,052,389 4,055,106 73,052,389 7,430,432

Return of capital - (219,157) - (3,360,410) Transaction costs of return of capital - (1,695) - (14,916)

──────── ──────── ──────── ──────── Balance at the end of the year 73,052,389 3,834,254 73,052,389 4,055,106 ════════ ════════ ════════ ════════

A reduction of share capital of 0.3 cents per share was approved by shareholders at a general meeting held on 23 May 2014 and paid on 11 June 2014. This equated to a total cash payment of $219,157.

A reduction of share capital of 4.6 cents per share was approved by shareholders at a general meeting held on 13 August 2012 and paid on 31 August 2012.

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Note 9: Accumulated Losses 2014 2013 $ $ Balance at the beginning of the year (3,879,858) (3,884,326)

Net (loss)/profit from operating activities (21,332) 4,468

──────── ──────── Balance at the end of the year (3,901,190) (3,879,858)

════════ ════════ Note 10: Other Reserves Share options Market value Total other reserve reserve reserves $ $ $ Year ended 30 June 2014: Balance at the beginning of the year 90,909 (7,742) 83,167 Movements in fair values of “available-for-sale” financial assets transferred to other comprehensive income on realisation - 7,742 7,742 Share of options reserve of associated entity ──────── ──────── ──────── Balance at the end of the year 90,909 - 90,909 ════════ ════════ ════════

Year ended 30 June 2013: Balance at the beginning of the year 89,339 - 89,339 Decrease in fair value of “available-for-sale” investments - (7,742) (7,742) Share of options reserve of associated entity 1,570 - 1,570 ──────── ──────── ──────── Balance at the end of the year 90,909 (7,742) 83,167 ════════ ════════ ════════

Market Value Reserve The market value reserve is used to record increments and decrements in the fair value of “available-for-sale” financial assets to the extent that they offset one another.

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Note 10: Other Reserves (Cont.) Share Options Reserve The share option reserve includes a share of the options reserve of equity accounted investments and is used to record the value of options issued to the investment manager, CVC Managers Pty Limited. As at 30 June 2014, the following options are outstanding:



Note 11: Financial Instruments The Company’s activities expose it to a variety of financial risks: market risk (including market price risk and interest rate risk), credit risk and liquidity risk. The Company’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Company. The Company uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate and price risk. The responsibility for operational risk management resides with the Board of Directors who seeks to manage the exposure of the Company. There have been no significant changes in the types of financial risks; or the Company’s risk management program (including methods used to measure the risks) since the prior year.

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Note 11: Financial Instruments (Cont.) (a) Interest rate risk

The Company’s exposure to interest rate risks of financial assets and liabilities both recognised and unrecognised at the reporting date are as follows:

Notes Floating Fixed interest rate Non- Total interest

rate 1 year

or less 1 to 5 years

interest bearing

$ $ $ $ $ 2014 Financial assets Cash and cash equivalents 13 36,843 - - - 36,843 Trade and other receivables 5 - - - 587 587 ────── ────── ─────── ────── ─────── Financial liabilities Trade and other payables 7 - - - 13,457 13,457 ────── ────── ─────── ────── ───────

2013 Financial assets Cash and cash equivalents 13 246,701 - - - 246,701 Trade and other receivables 5 - - - 814 814 ────── ────── ─────── ────── ─────── Financial liabilities Trade and other payables 7 - - - 15,760 15,760 ────── ────── ─────── ────── ───────

The Company holds a significant amount of cash balances which are exposed to movements in interest rates. To reduce the risk the Company typically deposits uncommitted cash in high interest rate accounts with financial institutions. Receivables and payables are non-interest bearing. Sensitivity As the Company expects interest rates to increase by 25 basis points during the 2015 financial year (2013: 50 basis points lower), at reporting date the impact on the Company, with all other varieties held constant, would be Increase of 25 bp Decrease of 50 bp $ $ 2014 Net profit 624 n/a Equity increase 624 n/a 2013 Net loss n/a (5,693) Equity decrease n/a (5,693)

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Note 11: Financial Instruments (Cont.)

(b) Market Price Risk

The Company had investments in listed securities which could be adversely affected if general equity market values were to decline. There was no exposure to market price risk at balance date.

Sensitivity At reporting date, if equity prices had been 10% higher/(lower) while all other variables were held constant the impact of the Company would be: Increase of 10% Decrease of 10% $ $ 2014 Net profit/(loss) n/a n/a Equity increase/(decrease) n/a n/a 2013 Net profit/(loss) - - Equity increase/(decrease) 2,666 (2,666)

(c) Credit Risk Exposure

Credit risk refers to the loss that the Company would incur if a debtor or a counterparty fails to perform under its obligations. The carrying amounts of financial assets recognised in the statement of financial position best represent the Company’s maximum exposure to credit risk at reporting date. The Company seeks to limit its exposure to credit risk by performing appropriate background investigations on counterparties before entering into arrangements with them.

At reporting date, the Company’s significant exposure of credit risk is its deposits with financial institutions, which is mitigated by the requirement that deposits are only held with institutions with an “investment grade” credit rating.

(d) Liquidity Risk

The Company manages liquidity risk by maintaining sufficient cash balances, holding liquid investments that could be realised to meet commitments. The Company continuously monitors forecast and actual cash flows and matches the maturity profiles of financial assets and liabilities.

The following table details the Company’s expected maturity for its contractual liabilities: Less than 6 months 6 months to

1 year 1 to 5 years Total

$ $ $ $ 2014 Trade and other payables 13,457 - - 13,457 ──────── ──────── ──────── ──────── 2013 Trade and other payables 15,760 - - 15,760 ──────── ──────── ──────── ────────

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Note 11: Financial Instruments (Cont.) (e) Fair Value of Financial Assets and Liabilities The Company uses various methods in estimating the fair value of a financial instrument. The methods comprise: Level 1 – the fair value is calculated using quoted prices in active markets. Level 2 – the fair value is estimated using inputs other than quoted prices included in Level 1 that are observable for the asset, either directly (as prices) or indirectly (derived from prices). Level 3 – the fair value is estimated using inputs for the asset that are not based on observable market data. The fair value of the financial instruments as well as the methods used to estimate the fair value are summarised in the table below.

Quoted market price

(Level 1)

Valuation technique –

market observable

inputs (Level 2)

Valuation technique – non market observable

inputs (Level 3)

Total

$ $ $ $ Year ended 30 June 2014 Financial assets “Available-for-sale” investments Listed shares at market value - - - - ═══════ ═══════ ═══════ ═══════

Year ended 30 June 2013 Financial assets

“Available-for-sale” investments Listed shares at market value 26,660 - - 26,660 ═══════ ═══════ ═══════ ═══════

Note 12: Related Parties

No amount of income was paid or payable or otherwise made available, to any key management personnel of the Company directly or indirectly in the year ended 30 June 2014 (2013 $nil).

Transactions with related parties The Company paid management fees to its investment manager calculated at 2.5% of the net assets of the company at the end of the previous financial year. CVC Managers Pty Limited agreed to stop charging the management fees effective 30 June 2013. Fees of $20,568 were paid to CVC Managers Pty Limited during the 2013 financial year. Messrs Beard and Gould were Directors of CVC Managers Pty Limited during the year. CVC Managers Pty Limited is a controlled entity of CVC Limited. The loan payable to Wind Corporation Australia Pty Limited was fully repaid during the 2013 financial year via dividend of $26,001 declared and paid on 30 November 2012, and the return of capital of $673,313 completed at 31 December 2012.

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Note 13: Notes to the Statement of Cash Flows

Reconciliation of Cash and Cash Equivalents

For the purposes of the statement of cash flows, cash and cash equivalents comprise the following at 30 June 2014: 2014 2013 $ $ Cash at bank 36,843 246,701 ──────── ──────── Cash and cash equivalents 36,843 246,701 ════════ ════════

Cash at bank earns interest at floating rates based on daily bank deposit rates. The carrying amount of cash and cash equivalents represents fair value.

Reconciliation of net (loss)/profit after income tax to net cash from operations

Net (loss)/profit (21,332) 4,468 Adjustments for

Net loss on sale of equity investment 213 1,692 Change in operating assets and liabilities:

Movements in trade and other receivables 34 7,706 Movements in trade and other payables 392 (9,090) Movements in sundry creditors and accruals (2,500) -

──────── ──────── Cash flows (used in)/provided by operating activities (23,193) 4,776 ════════ ════════

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Note 14: Other Information

The Company was incorporated on 7th December 2006. The Company is registered and domiciled in

Australia. Its registered office and principal place of business are at Level 6, 1 Alfred Street, Sydney, NSW 2000.

Note 15: Events Occurring after Reporting Date There are no matters or circumstances that have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Company, the results of those operations or the state of affairs of the Company in future financial years.

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ABN 58 123 028 026

AUDITOR’S INDEPENDENCE DECLARATION As lead auditor for the audit of the financial report of CVC Sustainable Investments No. 2 Limited for the year ended 30 June 2014 I declare that, to the best of my knowledge and belief, there have been no contraventions of: (a) the auditor independence requirements of the Corporations Act 2001 in relation to the audit;

and (b) any applicable code of professional conduct in relation to the audit. Sydney, NSW M D Muller 30 September 2014 Partner

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ABN 58 123 028 026

INDEPENDENT AUDITOR’S REPORT

To the members of CVC Sustainable Investments No. 2 Limited:

We have audited the accompanying financial report of CVC Sustainable Investments No. 2 Limited (“the company”), which comprises the statement of financial position as at 30 June 2014, the statement of profit or loss and other comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration, for the company.

Directors’ Responsibility for the Financial Report

The directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In Note 1, the directors also state, in accordance with Accounting Standard AASB 101: Presentation of Financial Statements, that the financial statements of CVC Sustainable Investments No. 2 Limited comply with International Financial Reporting Standards.

Auditor’s Responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

Our audit did not involve an analysis of the prudence of business decisions made by directors or management.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

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ABN 58 123 028 026

INDEPENDENT AUDITOR’S REPORT (continued)

Independence

In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.

Opinion In our opinion:

(a) the financial report of CVC Sustainable Investments No. 2 Limited is in accordance with the Corporations Act 2001, including:

(a) giving a true and fair view of the company’s financial position as at 30 June 2014 and its performance for the year ended on that date; and

(b) complying with Australian Accounting Standards and the Corporations Regulations 2001; and

(b) the financial statements also comply with International Financial Reporting Standards as disclosed in Note 1.

HLB Mann Judd M D Muller Chartered Accountants Partner Sydney, NSW 30 September 2014

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