Tourism Holdings Limited 2017 Annual Meeting Address

GROWING GLOBALLY
FY–2017
Annual Meeting 18 October 2017

Rob Campbell
Chairman’s Address
2

Proxies and Postal Votes Received
•Valid proxy and postal votes34.8M
•Proxy & postal as a percentage of ordinary shares on issue 28.9%
•Proxies received that have identified the Chairman 23.1M
of the meeting as proxy
3

Agenda
•Chairman’s address
•Chief Executive Officer’s address
•Question & answer
•Formal items of business
•General business
•Afternoon tea
4

Chairman’s Introduction
•Progress on thinking globally, being
platform focused and acting as leaders in
what we do.
•December 2016 announcements have
reset expectations for the future:
•El Monte
•Roadtrippers
•Mighway USA
•NPAT $50M FY20 goal
•Mindful of an operating environment of
significant global political, technological
and social change.
•thl today has increased diversity of
earnings and flexibility.
5

FY17 Financials
•A record result.
•Future growth from:
•Measured innovation;
•Acquisition;
•Internal improvement in process.
6

Share Price and Returns
7
•Five year total shareholder returns are over 60% pa, or 1000% over 5 years
1
.
•$30M NPAT originally targeted for FY19, achieved in FY17.
•Focus is on achieving new long-term target of $50M in FY20.
1.12
1.78
2.64
4.20
2014201520162017
Share price (June 30)
5
7
9
10
6
8
10
11
FY14FY15FY16FY17
Dividends (cps)
InterimFinal
70%
69%
63%
1 year3 year5 year
Total shareholder return per
annum
1
Note 1: Source Bloomberg, to period ended 30 June 2017. Assuming dividends reinvested in shares.

Sustainability
Prtect
Grow
Respect
Protect
8

The Board
9
Rob Campbell
Christina Domecq
Kaye Howe
Debbie Birch
Cathy Quinn
GráinneTroute
Graeme Wong
Resigned effective Dec 17
Up for election
Up for re-electionUp for re-election

Chairman’s Report –Closing Comments
•Investments in new initiatives are being
closely managed.
•Ongoing development of the core
business is a key focus.
•We will stay true to our values, including
sustainability.
10

Grant Webster
Chief Executive’s Address
11

FY17 Results Review
Revenue
to
$341M
Up by 22%
Earnings before
interest and tax
$47.7M
Up by 23%
Net profit after tax
$30.2M
Up by 24%
Return on average
funds employed
1
14.3%
Last year 15.1%
Earnings per
share
25.6c
Up by 20%
Full year dividend
21cps(76% imputed)
2
Up from 19cps (50%
imputed)
Note 1: ROFE down on pcp due to half year of El Monte purchase, with off-season earnings (peak season is H1 for northern hemisphere). ROFE excluding El Monte was 16.7%.
Note 2: Interim dividend 10cps 50% imputed, final dividend 11cps, 100% imputed.
12

FY17 Highlights
El Monte Acquisition
NZ $91M
Rentals NZ EBIT
+57%
13

Balance Sheet
•Within current target Debt:EBITDAratio of under 2.0x.
•Approximately $200M gross CAPEX forecast for FY18.
•Over $100M of gross CAPEX is flex fleet, sold within a 12-14 month timeframe.
•Fleet age (as at June) reduced to 2.3 years from 2.9 years in FY16 and 3.1 years in FY15.
•Plan to achieve $50M NPAT by FY20 while maintaining dividend payoutratio in policy of
75%-90%.
•FY20 target Debt:EBITDAat around 1.8x.
3.1
2.9
2.3
June 15June 16June 17
Average fleet age (years)
0
40
80
120
160
200
240
FY16FY17FY18 forecast
Gross CAPEX $M
Flex fleet gross capexOther gross capex
14

The Turnaround-A View on the Key Elements
MR ROFE
Results Focus
•Start with the critical point, be
disciplined with returns
•Strong push from the Board
•Every vehicle must deliver to
ROFE
•Every business must deliver or
have a clear achievable plan
BRAVE GROWTH
Risks With Assessment
•Entered the USA at the trough
•Consolidated the industry at the
hardest time
•Never expanded without a plan B
LIKE MINDED
Owner Operator Mentality
•Six owners still in the business
today
•No one approach is right
•Situational leadership and integrity
•Fight like you are right and listen
like you are wrong
OPERATIONS WIN
It All Happens in the Day-to-Day, Not
Strategy
•Understand the drivers well
•Stay customer centric
•Productivity and design
BUSINESS MODEL
Continual Development
•Build Rent Sell
•Reduce the capital intensity
•Reduce the long-term risk
PEOPLE
Crew, Board and Management
•Frontline crew focus is critical
•Board commitment has been
strong
•Management has had to support
change
POSITIVE INDUSTRY THEMATIC
15

•thlfocus on being a global player in the RV
industry.
•ROFE focus remains critical.
•New initiatives, including Mighwayand
Roadtrippers, required to develop globally.
•The impact of these investments was $2.2M
after tax NPAT (loss) in FY17.
•Similar loss expected FY18, but breakeven or
small profits assumed by FY20.
New Initiatives
16

Roadtrippers and CamperMate
•Roadtrippers is the leading travel planning
app in the USA.
•CamperMateis the leading travel app in
New Zealand, and growing fast in
Australia.
•Benefits are:
•Digital touring services are a critical
component of the self-drive
experience.
•Advertising opportunities.
•Self-drive customer engagement.
•Access to strong technology skills.
17

•Mighway NZ is two years old.
•MighwayNZ now has one of the largest
rental fleets in NZ, with over 600 units.
•USA in pilot, with over 300 fleet gained
in six months.
•Mighwayprovides access to the wider
RV owner ecosystem.
611
Dec-15Mar-16Jun-16Sep-16Dec-16Mar-17Jun-17Sep-17
MighwayNZ fleet
Mighway
18

Investing in Technology
•We are investing in new platforms across
the group:
•Dynamics 365 ERP.
•Cosmos RV booking, scheduling
and fleet management platform.
•Marketing automation software.
•We expect scale synergies benefits from
these global systems.
19

ABE and the RV Ecosystem
Asset Managementhelps owners to look after their prized
possession, ensuring it is proactively serviced and maintained and
providing peace of mind as to where their vehicle is at any given
time.
Driver Behaviourprovides tools to educate and motivate the RV
owner to drive safely.
On-road Experienceenriches the enjoyment RV users have whilst
they are out on the road.
Combining thlinnovation and IP to leverage the RV owner ecosystem
20

Recognition
•Winner –Australasian Fleet Management
Association Fleet Safety Award 2017.
•Finalists NZ Innovation Awards 2017
•Mighway
•GeoZone
•NZ Tourism Awards Industry Champion –
finalist: Angus Stubbs, Black Water Rafting
•NZ Tourism Awards Visitor Experience
Award –finalist: NZ Rentals
•Golden Backpack awards –Best transport
operator –Kiwi Experience (2011-2016)
21

Strategic Imperatives
Continue to build the base business
Leverage the RV eco-system
Innovate with technology
Do so sustainably
22

Key Focus for FY18
Complete USA pilot and assess the next phase. Grow the NZ customer base.
Grow the owner integration model.
Mighway
Implement the new generation booking and billing system and ERP system globally.
Develop telematics. Complete and trial the EV prototype.
Technology
Deeper customer engagement through technology.
Customer
Further expand retail and ancillary options for low capital growth.
RV Ecosystem
Deliver to our materiality topics (refer sustainability report).
Sustainability
Progress the plan to integrate the business, renew the fleet and proposition and lift
ROFE.
El Monte
Leverage growth opportunities, continue flex fleet & operational focus.
Core Business
Ongoing review of three-year growth plans for all investments.
Joint Ventures
23

Our People
Ollie Farnsworth
GM Marketing & Revenue Management
Travis Donoghue
GM Waitomo
Data Team
24

El Monte
25
El Monte
•Integration progressing well.
•Three key areas of focus:
•ROFE
•Utilisation
•Vehicle sales
•Synergies are on track.
•Lower USA visitation; did hinder the high
season.
•Positive response from the wholesale agent
market, regarding the revitalised proposition.

FX Translation
•Foreign earnings translated into NZD at average FX rate for the month.
•Exchange rate movements can create variances in reported NZD profits.
•Balance sheet partly hedged with debt, but earnings not hedged.
•Investors urged to assess earnings and metrics in local currency of the business unit.
26

FY18 Outlook
•No change to FY18 guidance.
•FX impact YTD of circa $0.7M NPAT over
Q1 –mainly USD.
•Underlying in-country earnings on track.
•NZ Rentals performed well in Q1.
•Slow first quarter for NZ Tourism.
•One-off tax issue to be resolved.
$36M-$39M
NPAT FY18
27

Questions?
28

Formal Items of Business
29

30
Resolution 1
Election of Catherine Quinn
That Catherine Agnes Quinn (appointed as a
Director by the Board on 7 September 2017)
be elected as a Director of the Company.
30

30
Resolution 2
Re-election of Graeme Wong
That Graeme Wong, who retires by rotation
and is eligible for re-election, be re-elected as
a Director of the Company.
31

30
Resolution 3
Re-election of GráinneTroute
That GráinnePatricia Troute, who retires by
rotation and is eligible for re-election, be re-
elected as a Director of the Company.
32

30
Resolution 3
Re-election of Grároute
Resolution 4
Director Remuneration
That the maximum aggregate amount of
remuneration payable to all Directors taken together
(in their capacity as Directors) be increased from
$550,000 per annum to a maximum of $650,000 per
annum, with this sum available to be paid to the
Directors of the Company as the Board considers
appropriate and which may be payable either in
whole or in part by way of an issue of ordinary shares
in the Company, provided that any issue occurs in
compliance with NZX Main Board Listing Rule 7.3.8.
33

30
Resolution 3
Re-election of Grároute
Resolution 5
Remuneration of Auditors
That the Directors are authorisedto fix the
remuneration of the auditors for the ensuing year.
34

General Business
35

Thank you
36

Disclaimer
37
•The information in this presentation, dated 18 October 2017, may contain forward-looking
statements and projections. These reflect thl’s current expectations, based on what it thinks are
reasonable assumptions. However, for any number of reasons, the future could be different and
the assumptions on which the forward-looking statements and projections are based could be
wrong. thlgives no warranty or representation as to its future financial performance or any future
matter. Except as required by law or NZX listing rules, thlis not obliged to update this presentation
after its release, even if things change materially.
•This presentation may contain a number of non-GAAP financial measures. Because they are not
defined by GAAP or IFRS, thl’s calculation of these measures may differ from similarly titled
measures presented by other companies and they should not be considered in isolation from, or
construed as an alternative to, other financial measures determined in accordance with GAAP.
•This presentation does not take into account any specific investors objectives, and does not
constitute financial or investment advice. Investors are encouraged to make an independent
assessment of thl.
•The information contained in this presentation should be read in conjunction with thl’s latest
financial statements, which are available at: www.thlonline.com

---

Tourism Holdings Limited
Tel: +64 9 336 4299
The Beach House
Fax: +64 9 309 9269
Level 1, 83 Beach Road
www.thlonline.com
Auckland City

PO Box 4293, Shortland Street

Auckland 1140, New Zealand



Self drive
Experiences
New Zealand
Australia
USA
UK


Design &
manufacturing
New Zealand
Australia

Guided
Experiences
New Zealand


18 October 2017


MEDIA | NZX RELEASE
TOURISM HOLDINGS LIMITED (thl) ANNUAL MEETING – 18 OCTOBER 2017
CHAIRMAN | CHIEF EXECUTIVE ADDRESS

SLIDE 1 – Tourism Holdings Ltd Annual Meeting

Chairman’s Address – Rob Campbell

SLIDE 2 – Chairman’s Address – Rob Campbell
Welcome to the 31st Annual Meeting for Tourism Holdings Limited. My name is Rob Campbell, your
Chairman.

As we have a quorum present, and it is 2:00pm, I declare the Annual Meeting open.
We are conducting this Annual Meeting simultaneously online and welcome all participating
shareholders. We were pleased with the initial uptake online last year and expect it to have grown this
year. We anticipate continuing to hold both the physical and virtual meeting.

I am joined on stage by fellow directors Debbie Birch, Kay Howe, Cathy Quinn, Gráinne Troute and Graeme
Wong. Christina Domecq has resigned from the Board, effective December, and provides her apologies
for not being able to attend today. We’re also joined on stage by our Chief Executive Officer, Grant
Webster; Chief Financial Officer, Mark Davis and Board Secretary, Steven Hall.

We also have a number of the team from the business here. I will quickly introduce the executives in the
room – Jo Allison, Keith Chilek, Dave Simmons, Gordon Hewston, Ben Lane, Brett Morris, Ollie Farnsworth
and Paul Shale. We also have Kate Meldrum online in the virtual meeting and our JV partner, Grant Brady,
from Action Manufacturing in the room. We also have representatives from the New Zealand Rentals
business, our support crew in Auckland, Kiwi Experience and the vehicle sales business based in Albany.

Finally, we also have representatives from our auditors, PricewaterhouseCoopers; solicitors, Minter
Ellison Rudd Watts; banking partners, Westpac, ANZ and HSBC; and our share registrar, Link Market
Services, who are managing the polling process.

SLIDE 3 – Proxies and Postal Votes Received
As indicated on the screen, we have received 34.8 million valid proxies and postal votes, representing
28.9% of the ordinary shares on issue. Of those, 23.1 million have identified me, as Chair of the meeting,
as proxy.

SLIDE 4 - Agenda
I will provide a brief overview on where we are today as a company and then hand over to our Chief
Executive, Grant Webster, to provide more detail on the year that has passed and the future direction of

thl – Annual Meeting 18 October 2017 – Chairman & Chief Executive Address Page 2 of 14


the company. As always, we appreciate the questions and feedback we receive at these sessions and I
look forward to those.

SLIDE 5 – Chairman’s Introduction
Twelve months ago I spoke about thl needing to look and think globally, and the need to be platform-
focused and to be leaders in what we do. There has been some progress along this path, but we are by
no means where we need to be.

We have continued to grow globally, and the transactions and goals we announced in December 2016
have definitively reset expectations for thl into the future.

Before reviewing the details of thl’s performance, I would like to comment on the backdrop for economic
performance today from my perspective.

We are operating in a period of significant political, technological and social change on a global basis. As
a global company, we need to stay mindful of that situation and consider the impacts on this business.
They are all changing the ways that people think about holiday experiences, which are at the core of our
business.

In the last 12 months, we have seen some impact on youth travel from Brexit, as the Pound devalued
against most currencies, we have seen some reduction in visitor arrivals to the USA from Europe, with the
election of Donald Trump, and we have seen some instability in Japan and South Korean outbound visitor
markets, with the recent political uncertainties with North Korea.

These events - singularly or collectively – have not yet created a material impact on the company, our
results and our forecasts, but we have had to adjust in reaction and they have highlighted to us the
importance of flexibility and quick reaction in all aspects of our business. The structural changes we have
made in the business have increased diversity of earnings and flexibility, but these are ongoing challenges.

SLIDE 6 – FY17 Financials
The FY17 result for the company was another record, but we still have plenty of opportunity. This is the
balance that is assisting thl in driving for more every year. None of our growth is reckless but, looking
forward, measured innovation, acquisition and internal improvement in process will continue to support
strong growth. This will reflect in 2018 and subsequently. We will meet our declared goals and keep
defining new goals.

I will leave it to Grant to discuss the result in a little more detail, acknowledging that it has been well
covered in the Annual Report and investor presentations.

SLIDE 7 – Share Price and Returns
Most of us are keen on a Warren Buffet maxim at one point or another. With the graphs on the screen, I
am reminded of him saying, “Games are won by players who focus on the playing field, not by those
whose eyes are glued to the scoreboard”.

It is unusual for me to focus on the share price in an Annual Meeting, but the results for thl are worthy of
note.

thl – Annual Meeting 18 October 2017 – Chairman & Chief Executive Address Page 3 of 14


If you purchased thl shares five years ago and, throughout that time, reinvested all your dividends, you
would now have made a 1000% return. I would note this is based on a Bloomberg report using the dates
and details on the screen.

It is not lost on me that you can comment on how low the thl share price was five years ago as a negative;
however, I choose today to reflect on the positive approach the team have taken to creating a business
that is more flexible, global and disciplined.

More importantly, the performance could beguile the need for further work. That is not the case. The
result this year had large areas for improvement - pleasingly clearly and honestly identified by
management. The business still needs to improve.

We have also set another clear goal for the business. In 2015 we set a target of achieving $30M NPAT by
FY19. We achieved it in FY17. Today, we remain focused on our new goal - $50M NPAT by 2020.

As noted in the Annual Report, this business responds to these goals. Budget setting is not a case of who
argues the best; who can produce the most cleverly disguised sandbag. Budgets are based on market
realities, with a clear direction to 2020. Each business has slight adjustments to the plan each year, but
shortfalls are aggressively hunted down and opportunities to overachieve are delivered.

We have delivered a good return for those of you who have invested in the past; however, we have new
shareholders every day and we are just as focused on playing the right game to deliver to you for
tomorrow.

We will not continue to generate shareholder returns at the rate of increase in recent years, but we are
not at a plateau - nor do I accept that this is just the boom period of a repeated historical pattern, as has
recently been suggested. thl today is nothing like the business that showed such patterns. We have, and
will increase, diversity of earnings, we have a clear strategy for our role in the global RV ecosystem, we
have tight discipline on capital allocation, and our execution capability at management level is strong. I
welcome people betting against us, but I do not advise you to join them.

SLIDE 8 – Sustainability
This year the business launched its first sustainability report.

We need to be real, authentic and take sustainability seriously as a tourism operator. We rely on the
physical environment, the social environment and the ongoing economic prosperity of the business and
our teams to win in the long term.

The report we presented this year acknowledged some excellent work we have been doing from a
sustainability and responsible tourism operator perspective. It also acknowledged that we are only near
the start of our journey, but set some challenging goals, which we will set to achieve and report on,
openly, annually.

We also recognise the need to partner. In a global context, we are small - but our ambitions are larger.
Whether it be in the electric vehicle space, autonomous vehicles or in other new clean technologies, we

thl – Annual Meeting 18 October 2017 – Chairman & Chief Executive Address Page 4 of 14


are working with other companies on a global basis to find the most effective way forward to reach our
goals. You will not find us chasing fads, but you will find us adopting and embracing proven models.

SLIDE 9 – Board
Christina Domecq recently resigned from the Board. We appreciate her contribution.

Cathy Quinn was recently appointed to the Board and will stand for election today.

We have reviewed the capability matrix for the Board and we will most likely commence a search for one
additional Director, who fills some of the areas we identified need some bolstering. We have no set
timeframe we will operate to and don’t expect to make any announcement until sometime in 2018.

As a Board, we also agreed this year to be early adopters of the NZX new code for governance, and we
will continue to actively engage with stakeholder groups such as the New Zealand Shareholders
Association, to ensure we hold ourselves to the appropriate standards of communication, accountability
and transparency.

SLIDE 10 – Chairman’s Report – Closing Comments
We are well into another year of growth for thl. The investments in new initiatives are being closely
managed and the development of the core business is ongoing. We are not complacent and want to be
more competitive as we grow, all whilst staying true to the values surrounding the business including,
importantly, sustainability.

I will now pass on to Grant to provide some more details on our performance and direction.


SLIDE 11 – Chief Executive’s Address

CEO Address – Grant Webster

Thank you Rob - as always, a well-written and delivered address.

I will provide a brief update on the results for the prior year but, more importantly, focus on the new
initiatives in the business and direction for the coming years.

SLIDE 12 – FY17 Results Review
Firstly, a quick overview of the FY17 result.

It is important to note that the results include the first six months of the El Monte business. The six months
is the low season and traditionally a loss-making time for the business, yet we obviously had the full funds
employed. You will have seen, in both the Annual Report and investor presentation, that we have shown
a number of figures with and without El Monte, to show the true underlying business result.

Revenue was up 22% for the year, inclusive of El Monte.
- We increased EBIT by 23%;

thl – Annual Meeting 18 October 2017 – Chairman & Chief Executive Address Page 5 of 14


- Return on average funds employed decreased from 15.1% to 14.3%; however, that was the effect
of El Monte and, without El Monte, we increased to 16.7%;
- We delivered an NPAT result of $30.2M, up 24%; and
- We delivered an increase in dividend to 21cps, which had an average imputation of 76%. This was
up from 19cps the previous year.

SLIDE 13 – FY17 Highlights
There are two result highlights for the year – one, the New Zealand Rentals business and the second the
acquisition of El Monte. I will discuss the El Monte business at a later stage.

The New Zealand rentals business increased EBIT by over 50%. The increase reflected strong demand for
New Zealand RV holidays, an increase in flex fleet, an increase in yield and a strong control of costs within
the business. The Lions tour had some positive impact in the last quarter as well.

Tourism New Zealand has been focused in the last 12 months on the shoulder seasons and we saw the
benefit of that focus. With Easter late in April this year, we had strong volumes right through to the end
of the April school holidays.

We do see ongoing growth in the New Zealand rentals business; however, we also want to keep focused
on market share and we will limit the growth of margin in the coming year, as we more aggressively target
share and volume. The focus is not giving away money, but ensuring we continue to use our scale for
growth.

Australia, Road Bear, Waitomo and Action Manufacturing results are well covered in the Annual Report
and we are happy to take questions on those, if required. We should, however, note the Kiwi Experience
results, which were down on the prior year and below our expectations. We may have lost some share
in this business; however, we also had the impact of the Kaikoura earthquake. We have plans in place in
this business to be more cost-effective. We will also refocus on the brand and proposition in the coming
year.

SLIDE 14 – Balance Sheet
The position of our balance sheet remains a critical focus for thl. We acquired El Monte this last financial
year, primarily with debt. We had signalled we had capacity to acquire using debt and we tested our
assumptions against the current state, and a range of other possible scenarios. We are confident in our
current position.

At year-end we had $176M net debt, up from $79M the prior year.

There are three key points I would like to make regarding this position:
1. We remain within our target debt to EBITDA ratio of 2.0x, and will stay close to that figure. This, along
with other financial metrics, aligns with a Moody’s Baa rating that we use as a benchmark and have
communicated for some time.
2. We have gross capital expenditure in the coming year of close to $200M, more than our current net
debt number. Of that $200M, over $100M is flex-fleet, which is planned to be sold within a 12-14
month timeframe. With these levers, we have the ability to control debt and we can, when required,
create significant operating cash flow through the ongoing rental and sale of vehicles, without

thl – Annual Meeting 18 October 2017 – Chairman & Chief Executive Address Page 6 of 14


replacement. To support this, our current average fleet age within the company is 2.3 years. This
compares to 2.9 last year and 3.1 in FY15.
3. Lastly, we have a plan to deliver $50M NPAT in 2020. Within that plan, we are forecasting a dividend
pay-out ratio within policy, we will generate the cash to fund the capital requirements to grow and
we plan to reduce our debt to EBITDA ratio with a target of somewhere around 1.80X.

We know tourism businesses have shock events and we know we need to be prudent with your
shareholder funds. We believe we have the right balance today for this business in the industry in which
we operate.

SLIDE 15 – The Turnaround – A View on the Key Elements
I was recently asked what I saw as the key elements that have led to the turnaround in thl’s performance
over the last few years. A quick reflection may be useful to provide context on our broader strategy and
direction as a business.

I think we can thank our Chairman for the relentless focus on ROFE. It has become so ingrained, it has
been personified - MR ROFE. It is important to note that even the new initiatives, that aren’t making
money today, have a plan to deliver an appropriate return. It’s not a matter of if, but when - or the
investment will stop.

We have been brave at the right times, but with caution and a backup plan.

We have also continued to develop the business model and you can hear that in our actions and focus
today.

We understand that we are an operational business. We have hundreds of people on the frontline every
day, delivering to customer’s needs. Ensuring they are focused, have the right tools and are appropriately
motivated is key. This is a detail business and we need to get the detail right constantly.

Along the way, we have ensured we engage with likeminded people with the right values. Today we have
six owner-operators still engaged in the business in various forms. Whilst that’s a lot of owners’ views to
manage, the reality is that we benefit from both the experience and mentality, and we have a culture and
business they have wanted to remain a part of. It’s all about the people at the end of the day.

SLIDE 16 – New Initiatives
Moving on.

As we have indicated over the last 12 months, we are focused on being a global player in the RV industry
and we have a number of initiatives which we are progressing alongside the current and normal operating
business.

As mentioned, we have strong focus on ROFE in the business.

We know we need these new business opportunities to develop globally and we are confident they will.

thl – Annual Meeting 18 October 2017 – Chairman & Chief Executive Address Page 7 of 14


In FY17, we invested in these start-up initiatives with a combined $2.2M, after tax, impact on Group NPAT,
and in FY18 we expect a similar impact on NPAT. Within the 2020 goal of $50M NPAT, we are expecting
these new initiatives to either breakeven or make a small profit.

SLIDE 17 – Roadtrippers and CamperMate
With the announcements in December 2016, we highlighted the investment we have made in
Roadtrippers USA.

This business is the leading travel planning app in the USA and has 2.5M users per month over the peak
season and average monthly users currently of around 2.0 million.

As part of the transaction, we sold the IP associated with CamperMate into the Roadtrippers business.
CamperMate in New Zealand and Australia has currently over 80,000 users per month, up over 40% on a
year ago, with high expectations for the coming summer.

Why have we invested in these businesses? Simply put, we see them as leaders in the provision of digital
touring services, which we see as a critical component of the self-drive experience now and in the future.

We see these businesses as having the opportunity to break into several advertising markets and assist
with the manner in which we engage with customers whilst on the journey.

As importantly, they also provide us with some exposure to customer markets that are currently not in
the RV world, yet are close to it. The self-drive customer who visits places like Yellowstone National Park
or Fox Glacier may well be our next RV customer.

With Roadtrippers, we have gained access to a different set of technology, skills and thinking.

SLIDE 18 – Mighway
Our equivalent of Air BnB is now two years old, having been launched at the 2015 Annual Meeting.

Mighway has grown well in New Zealand and we are on track for a positive summer season, based on
current forward bookings. We have grown our owner base to over 600. More importantly, we are
starting to create a closer engagement with our owners.
We have launched a pilot in the USA, and have had a faster uptake in owners than in New Zealand, though
our bookings intake has been slower than we might have hoped.

The future of Mighway appears sound. It may evolve, it will be more integrated into the core and it will
continue to grow owner engagement.

It is the primary interface for thl into the broader RV ecosystem we talk about so passionately.

From an operating markets perspective, we see the opportunity to expand in the USA and we see
Australia, the UK and Europe all as possible markets. We will, however, ensure we can gain more
confidence in the methodology we use to launch into new markets to minimise the financial impact. I
would not expect any new country expansion in FY18; however, we continue to explore the opportunities
in each of these markets.

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SLIDE 19 – Investing in Technology
We have headed the annual report “Growing Globally”. We have made acquisitions over the last few
years and, within those, we have made a variety of choices about technology, often retaining the systems
in place in those businesses.

The reality is, we have been more focused on getting the business operating models right than the
technology that sits behind them. We have, in some cases, had to increase overhead costs, due to the
need to integrate and manage disparate systems.

We are now ready to get the real benefits of scale and consistency in the back-of-house operations of the
business and we are ready to create a meaningful connected customer journey.

Over the coming months we will launch:
 Dynamics 365 – Microsoft’s fully cloud-based ERP system to be used for finance and operations across
the group.
 Cosmos - our new RV booking, scheduling and fleet management platform to be used by all rentals
and sales divisions.
 A new automated marketing software package, which will enable us to execute customised marketing
programmes that drive demand and greater revenue conversion.
 And we will integrate all of this with a clear connected customer journey that will leverage the new
database of information we have regarding our customers, their preferences, habits and travel
patterns.

When all this is in place, we will start to see the benefits of growing globally on an integrated basis.

SLIDE 20 – ABE and the RV Ecosystem
Finally, from a new initiative perspective, I would like to briefly talk about another way in which we are
bringing our platform to life in the RV industry.

Using the skills we have learnt in telematics, the capability of our new Cosmos system and the integration
with our partner investments such as Roadtrippers, we will soon be launching an integrated owner RV
management system, with the working title of ABE:
 Assets
 Behaviour
 Experiences

Let’s use a Mighway owner as an example of the benefit of ABE.

An owner signed up to ABE, will have the ability to choose between a variety of packages, which will
enable some of the following:
 An online logbook with all details of his or her vehicle, servicing, equipment warranties and travel
requirements.
 A fully integrated telematics offer providing all the safety and security benefits that we use in the
rental fleet today.
 An integrated trip planning tool.

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 Retail product offers.
 Integrated owner insurance offer.
 And more.

SLIDE 21 – Recognition
As a business, we remain focused on ensuring we have credibility with you, our shareholders, keeping
you informed and delivering on what we say we will do. We are also gaining more creditability externally
and within the broader industries in which we operate.
This year we have been nominated for several awards, including the NZ Tourism Awards (where we were
a finalist in two categories) and the New Zealand Innovation Awards, where both CamperMate and
Mighway are finalists.

We have also recently been awarded the Australasian Fleet Management Association Fleet Safety Award.
We understand we are the first, or one of the few, B2C businesses to be given this award. Congratulations
must go to the Australian telematics and scheduling teams for the outstanding work they have done in
this space. We have seen speeding incidents reduce by over 70% in the last 12 months and overhead roof
damage reduce by over 70% as well.

SLIDE 22 – Strategic Imperatives
The focus for us over the next year is simple.

We need the base business to continue the plan towards our 2020 target and implement the actions we
expect.

We will drive our new initiatives to continue to develop and build revenue quickly.

And we will do it all in a sustainable and responsible fashion.

SLIDE 23 – Key Focus for FY18
We outlined our key focus for FY18 in our annual results presentation and I have already touched on most
of these areas. We will balance the operation and growing of the core business including joint ventures,
integrating El Monte into the business, progressing our development initiatives and successfully
implementing our new technology.

SLIDE 24 – Our People
I want to also quickly acknowledge the superb teams we have in the business. We have also had some
great new skills join us this year. On the screen, we have a shot of two of our new GMs that have started
this month - Travis Donaghue and Ollie Farnsworth - as well as some of our data team; a new team
established this year.

With machine learning algorithms, automated marketing and the new ABE technology platforms, the
effective and efficient use of data in the business is paramount. We could easily get drowned in the
volume of data we have today and we need this different skill set to ensure we gain insights and make
the right decisions at the right time.

thl – Annual Meeting 18 October 2017 – Chairman & Chief Executive Address Page 10 of 14


SLIDE 25 – El Monte
The acquisition of El Monte was the highlight of FY17 in many ways. Some quick comments on El Monte.

The integration is going well.

We have taken the best of the old and added some new thinking, goals and processes.

ROFE, utilisation and increased vehicle sales have been the drivers for change this year and all three
metrics are showing big improvements.

The synergies are on track.

The only downside has been the impact of lower visitation to the USA this year. We did have a lower
rental revenue number than last year in the peak season, although the shoulder has been strong, and we
have very positive feedback from the agent market on our changes in fleet for the 2018 travel season
(although it’s early days).

Let’s watch a short clip of the El Monte business.

SLIDE 26 – FX Translation
Each month we translate our foreign earnings into New Zealand dollars using the average exchange rate
for the month. This can create variances in reported profits versus forecast and prior periods, due to
variances in those exchange rates.

While we partly hedge our balance sheet through the use of foreign denominated debt, we do not hedge
our earnings. The reason for this is that we do not see ourselves as currency speculators in relation to
currency movements that are unrealised in terms of cash. Where we have specific, planned cash flows,
such as dividends that will convert into New Zealand dollars, we will hedge the transactions.

In measuring the Company’s performance, we encourage shareholders to assess the earnings and metrics
in the local currency of the business unit.

SLIDE 27 – FY18 Outlook
We have previously indicated a range of $36-39M NPAT for the FY18 financial year. We are maintaining
that range as we still have some unknown elements.

We have had a different exchange rate for the translation of earnings than we had planned, which has
impacted our NZD translated earnings by circa $0.7M to the end of the first quarter. This may continue
to have further influence on the NZD result.

Our underlying in-country earnings have generally been on track.

The New Zealand Rental business has performed well over the first quarter.

thl – Annual Meeting 18 October 2017 – Chairman & Chief Executive Address Page 11 of 14


Our tourism businesses have had a slow first quarter, with Waitomo impacted by flood and weather
closures to a greater degree than we have had in the last few years, and Kiwi Experience having slower
than anticipated travelled revenue. I would note, booked revenue for the high season is up on last year.

We also have a one-off tax issue in one jurisdiction, which may have some impact, depending on the
outcome, but this has also been accounted for in the range. The range represents between 10-30% NPAT
growth over the prior year.

Finally I would like to thank you all for your attendance and ongoing support of the business.
We have done some good work but have much more to do and are focused as a business on continuing
our development.

Thank you as well to all the team at thl - as I’ve indicated, we are a fast moving, global business with lots
of moving parts. That takes dedication to deliver - and the thl team does just that.

Thank you.

I will now pass back to the Chairman to proceed with any questions from the floor and to address the
proposed Resolutions.

SLIDE 28 – QUESTIONS?

Rob Campbell

Thanks Grant.

I would like to open up to the floor, and online, for questions. If you are attending the meeting online,
you are able to ask questions by clicking on ‘ask a question’. Further information on this is set out in the
virtual Annual Meeting online portal guide that has been sent to shareholders. To ensure the questions
on the Resolutions being asked online make it to me as we go through each Resolution, I would ask that
shareholders who are attending the meeting online submit those questions now. For those who are in
the room, we have microphones available and I would ask you to hold up your admittance card if you
would like to raise a question. When you speak, please tell us your name and whether you are a
shareholder or proxy holder, for the Minutes. Following any questions from the floor, we will answer any
questions submitted online, that have not already been answered.

Are there any questions?

SLIDE 29 – Formal Items of Business
There being no more questions, I will now move on to the formal items of business on the agenda.

Under NZSX Listing rule 3.3.11, and in accordance with the constitution of the Company, at least one
third, or the number nearest to one third, of the total number of Directors must retire by rotation at each
Annual Meeting of shareholders.

thl – Annual Meeting 18 October 2017 – Chairman & Chief Executive Address Page 12 of 14


The Directors to retire are those who have been longest in office since their last election or re-election
and, if they’re eligible, they may offer themselves for re-election by shareholders at the annual meeting.

The Directors stepping down by rotation this year are Graeme Wong and Gráinne Troute. Cathy Quinn,
having been appointed to the Board during the year, is also up for election.

As indicated, we are operating a poll vote for all Resolutions today. Eligible shareholder or proxies have
been given a voting card. For each Resolution, you need to tick the box indicating whether you are voting
for or against the Resolution, or abstaining. Link representatives will collect the voting cards at the end
of the Resolutions, prior to general business, and the votes will be counted and collated with the postal
and online votes.

For those attending the meeting online, you will be able to cast your vote by clicking ‘get voting card’ -
further instructions can be found in the online portal guide.

PricewaterhouseCoopers are acting as scrutineers and, once the result of the Resolutions have been
confirmed, these will be announced to the NZX. Moving on to the Resolutions:

SLIDE 30 – Resolution 1
Resolution 1 – Election of Catherine Quinn
That Catherine Agnes Quinn (appointed as a Director by the Board on 7 September 2017) be elected as a
Director of the Company.

I will now ask Cathy to speak briefly.

[Cathy]

Thank you Cathy. Are there any questions for Cathy? If not, can you please cast your vote on the voting
card, or online, in relation to resolution 1.

SLIDE 31 – Resolution 2
Resolution 2 — Re-election of Graeme Wong
That Graeme Henry Wong, who retires by rotation and is eligible for re-election, be re-elected as a
Director of the Company.

I will now ask Graeme to speak briefly.

[Graeme]

Thank you Graeme. Are there any questions for Graeme? If not, can you please cast your vote on the
voting card, or online, in relation to resolution 2.

SLIDE 32 – Resolution 3
Resolution 3 – Re-election of Gráinne Troute
That Gráinne Patricia Troute, who retires by rotation and is eligible for re-election, be re-elected as a
Director of the Company.

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I will now ask Gráinne to speak briefly.

[Gráinne]

Thank you Gráinne. Are there any questions for Gráinne? If not, can you please cast your vote on the
voting card, or online, in relation to resolution 3.

SLIDE 33 – Resolution 4
Resolution 4 – Director Remuneration
That the maximum aggregate amount of remuneration payable to all Directors taken together (in their
capacity as Directors) be increased from $550,000 per annum to a maximum of $650,000 per annum,
with this sum available to be paid to the Directors of the Company as the Board considers appropriate
and which may be payable either in whole or in part by way of an issue of ordinary shares in the Company,
provided that any issue occurs in compliance with NZX Main Board Listing Rule 7.3.8.

I note that the Directors, and their respective Associated Persons, are disqualified from voting on this
resolution. In addition, where I have been appointed as proxy for a shareholder, I am only able to exercise
those votes in accordance with the express instructions of the shareholder – I cannot vote undirected
proxies.

Are there any questions in relation to Resolution 4? If there are no questions, I would ask you to cast
your vote on your voting card, or online, for Resolution 4.

SLIDE 34 – Resolution 5
Resolution 5 – Remuneration of Auditors
That the Directors are authorised to fix the remuneration of the auditors for the ensuing year.

Are there any questions in relation to Resolution 5? If there are no questions, I would ask you to cast
your vote on your voting card, or online, for Resolution 5.

SLIDE 35 – General Business
That ends the Resolutions for this meeting. We will move on to General Business. Are there any other
items shareholders would like to raise?

There being no other matters of business, I would like to thank you all for attending and I now declare
the meeting closed and invite those of you attending in person to a light afternoon tea.

SLIDE 36 – Thank You

SLIDE 37 – Disclaimer


END

thl – Annual Meeting 18 October 2017 – Chairman & Chief Executive Address Page 14 of 14


Authorised by:


Rob Campbell
Chairman, Tourism Holdings Limited

For further information contact:

Grant Webster
thl Chief Executive
Direct Dial: +64 9 336 4255
Mobile: +64 21 449 210

Mark Davis
thl Chief Financial Officer
Direct Dial: +64 9 336 4212
Mobile: +64 27 444 0199

About thl (www.thlonline.com)

thl is a global tourism operator. We are listed on the NZX and are the largest provider of holiday vehicles for rent and sale in
Australia and New Zealand. In the USA we own and operate the Road Bear RV Rentals and Sales brand. Within New Zealand we
operate Kiwi Experience and the Discover Waitomo group which includes Waitomo Glowworm Caves, Ruakuri Cave, Aranui Cave
and The Legendary Black Water Rafting Co. In 2012 thl entered in a joint venture to form RV Manufacturing Group LP, now Action
Manufacturing LP, New Zealand’s largest motorhome and specialist vehicle manufacturer. Action Manufacturing LP has
operations both in Auckland and Hamilton. In February 2015, thl acquired 49% of Just go Motorhome Rentals & Sales, based in
the UK. In November 2015, thl launched Mighway – a sharing economy platform for motorhome owners. In January 2017, thl
acquired El Monte RV Rentals and Sales in the USA.
.