TURNERS GROWS FIRST HALF PRE-TAX PROFITS BY 21%

TURNERS GROWS FIRST HALF PRE-TAX PROFITS BY 21%
Turners Automotive Group Results for the six months ended 30 September 2017
Integrated automotive financial services group, Turners Automotive Group Limited (NZX/ASX: TRA), has
reported a 44% increase in revenue and a 21% increase in pre-tax profit growth for the six months as it
benefits from growing retail sales, an increasing loan book and a scaled up insurance business.
Revenue was $163.8m for the six months (HY17: $113.9m), while Net Profit Before Tax (NBPT) increased
to $14.2m (HY17: $11.8m). Net Profit After Tax was $10.0m, up 18% on the previous half year (HY17:
$8.5m).
All divisions delivered improvements in revenue and operating profit, with Buy Right Cars and the
Autosure insurance business both contributing a full six months of earnings, following their acquisition
in FY17.
Shareholder equity increased to $200.8m as at 30 September 2017, boosted by the $25m capital
placement completed in September 2017.
The Board has declared a fully imputed dividend of 3.0 cents per share (cps) for Q2, taking total
dividends for the half year to 6.0 cps (HY17: 6 cps).
Turners CEO, Todd Hunter, commented: “Turners has reported another positive half year of growth and,
while some softening in the used vehicle market was seen during the election period, overall market
trends are positive and growth prospects remain strong. We are continuing to benefit from our vertically
integrated business model. Finance receivables are growing strongly, as are insurance premiums, both
on the back of increasing used vehicle sales.
“We are continuing to innovate with the development and launch of new products and services
designed to deliver a superior customer experience. While the market is incredibly fragmented and
competition is active, we believe we have unique attributes and competitive advantages which position
us well for continuing growth into the future.
“An uplift is expected in the second half in line with annual trends and due to the positive impact of the
growing finance book and as scale benefits are realised.”
The company is on track to deliver a Net Profit Before Tax of between $29 million and $31 million for the
full year to 31 March 2018. This would represent an 18% to 26% increase on FY17, or 10% to 14%
excluding acquisitions.

TRADING PERFORMANCE
Automotive and Retail
Automotive Retail revenue was up 32% to $113.5m and operating profit was up 27% to $8.8m with a full
half contribution from Buy Right Cars.
Turners’ focus on retail customers continues, and sales to end users were 72% of all car purchases in the
first half (HY16: 64%). These sales deliver higher margins and provide more opportunities to sell finance
and insurance products. Finance contracts written increased by 23% and sales of mechanical breakdown
insurance policies increased by 22% over the corresponding period last year.
The usual seasonal dip in trading margins has been longer and stronger this year, due to the increased
supply of new and used import vehicles and increasing competition.
Investment is continuing in purpose built sites in targeted locations for the Auto Retail Division. Two
new Trucks & Machinery sites in Wiri and Palmerston North are now operational, and an additional site
is being developed in Hamilton. A new Turners Cars site is being developed in Porirua and a new site has
just been acquired in Whangarei. A new Buy Right cars site is also under development in Penrose,
adjacent to the main site in Auckland.
Management are continuing to progress the opportunity of providing service, repairs and maintenance
by leveraging Autosure’s relationship with over 1,500 repairers, and enabling these services to be
provided in a more cost effective and more convenient way. This fits well within Turners’ integrated
model.
Finance and Insurance
Finance
Finance revenue was up 39% to 17.8m while operating profit was up 12% to $5.5m. Turners finance
book continues to expand. Total finance receivables have grown strongly to $269m at the end of
September 2017, and were up 30% since March 2017. Funding of new receivables is now primarily
through securitisation and approximately 75% of the funds from the recent equity raise will also be used
to support the growth of the finance book.
Management are focused on maximising growth opportunities and improving the quality of lending and
collections efforts. Consolidation of the finance brands into one operating entity – Oxford Finance – is
progressing well and will be completed by the start of FY19.
Insurance
The Autosure business has provided the scale required for Turners to operate competitively and
efficiently in the automotive insurance sector. Insurance revenue jumped 345% to $22.4m for the half
year with operating profit of $2.6m. Autosure’s in-force policies were transferred to Turners at 31 March
2017 and the Autosure products now represent approximately 70% of Turners’ insurance business. A

number of new initiatives have been launched including a dealer loyalty share scheme to reward finance
and insurance referrals, new electric vehicle breakdown cover and the development of a comprehensive
loan repayment insurance product for retail customers. The integration of the insurance businesses into
a single operating entity is progressing well and is expected to be completed in FY19.
Debt Management
EC Credit Control continues to perform well and remains highly cash generative. Revenue and operating
profit remained consistent with the previous year, at $10.2m and $3.4m respectively. Along with the
retention of key corporate and banking clients, debt load from key corporate accounts continues to
increase, reflecting the positive collections result we achieve for these customers. We expect a positive
impact from the implementation of the Auto-Dialler on second half collections results.
Outlook
The business is in a strong financial position after the recent $30m capital raise. The board has reflected
on the oversubscribed Share Purchase Plan and acknowledges shareholder feedback received on the
merits of a significantly higher rights issue component in future capital raising initiatives.
The outlook for the automotive sector remains positive providing growing opportunities for finance,
insurance and vehicle servicing for the Turners Automotive Group of companies. In particular, the focus
for the second half of the year remains on expanding Turners’ retail presence in both cars and Trucks &
Machinery; developing a bundled approach to finance and insurance; and building on existing capability
to offer servicing and maintenance.
The company is on track to deliver a Net Profit Before Tax of between $29 million and $31 million for the
full year to 31 March 2018. This would represent an 18% to 26% increase on FY17, or 10% to 14%
excluding acquisitions.
Turners is well positioned to keep delivering profit growth for shareholders into the future.
ENDS
About Turners
Turners Automotive Group Limited is an integrated financial services group, primarily operating in the
automotive sector www.turnersautogroup.co.nz.
For further information, please contact;
Todd Hunter, Chief Executive Officer, Turners Automotive Group Limited Mob: 021 722 818
Media Liaison and Assistance: Jackie Ellis, Mob: 027 246 2505

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Reporting Period6 months to 30 September 2017
Previous Reporting Period6 months to 30 September 2016
Revenue from ordinary activities
Operating profit after tax - ordinary activities
Net profit attributable to security holders
Interim DividendAmount per securityImputed amount per
security
Record Date
Dividend Payment Date
Comments:
10,03118%
9,98817%
15 December 2017
22 December 2017
$0.01667$0.03000
TURNERS AUTOMOTIVE GROUP LIMITED
Results for announcement to the market
Amount (NZD000s)Percentage change
163,84244%
1

TURNERS AUTOMOTIVE GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME
For the six months ended 30 September 2017
Six monthsSix monthsYear
endedendedended
30/09/201730/09/201631/03/2017
UnauditedUnauditedAudited
$'000$'000$'000
Revenue from continuing operations
162,979
113,292249,338
Other income
863
6571,671
Cost of goods sold
(71,430)
(50,553)(116,997)
Interest expense
(6,532)
(5,642)(11,350)
Impairment provision expense
(2,276)
(739)(2,026)
Subcontracted services expense
(5,375)
(4,110)(8,520)
Employee benefits (short term)
(25,589)
(19,220)(40,862)
Commission
(5,439)
(3,469)(7,446)
Advertising expense
(1,905)
(1,476)(3,431)
Depreciation and amortisation expense
(2,689)
(1,247)(2,863)
Property and related expenses
(5,118)
(4,392)(9,391)
Systems maintenance
(870)
(709)(1,468)
Claims
(15,920)
(3,195)(6,491)
Life fund movement
(25)
(833)(1,056)
Credit legal fee service expense
(548)
(374)(838)
Other expenses
(5,882)
(6,228)(13,639)
Profit before taxation
14,24411,76224,631
Taxation (expense)/benefit
(4,213)
(3,235)(7,057)
Profit from continuing operations
10,0318,52717,574
Other comprehensive income for the year (which may subsequently be
reclassified to profit/loss), net of tax
Cash flow hedges
(43)3541
Foreign currency translation differences
-
(1)(6)
Total comprehensive income for the year
9,9888,56117,609
Earnings per share (cents per share)
Basic earnings per share
13.36
13.4025.49
Diluted earnings per share
13.24
12.9525.03
2

TURNERS AUTOMOTIVE GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
For the six months ended 30 September 2017
Share
Capital
Share
Options
Translation
Reserve
Cash flow
reserve
Retained
Earnings
Total
$’000$’000$’000$’000$’000$’000
Balance at 31 March 2016 (audited)
136,127 - (17) (35) (6,263) 129,812
Transactions with shareholders in their capacity as owners
Capital contributions (net of issue costs)19,309----19,309
Dividend paid----(6,361)(6,361)
19,309 - - - (6,361) 12,948
Comprehensive income
Profit---8,5278,527
Other comprehensive income--(1)35-34
Total comprehensive income for the period, net of tax - - (1) 35 8,527 8,561
Balance at 30 September 2016 (unaudited)
155,436 - (18) - (4,097) 151,321
Transactions with shareholders in their capacity as owners
Capital contributions (net of issue costs)13,373----13,373
Share based payments-208---208
Dividend paid----(2,234)(2,234)
13,373 208 - - (2,234) 11,347
Comprehensive income
Profit----9,0479,047
Other comprehensive income--(5)6-1
Total comprehensive income for the period, net of tax - - (5) 6 9,047 9,048
Balance at 31 March 2017 (audited)
168,809 208 (23) 6 2,716 171,716
Transactions with shareholders in their capacity as owners
Capital contributions (net of issue costs)
25,149----25,149
Share based payments
-217---217
Dividend paid
----(6,334)(6,334)
25,149 217 - - (6,334) 19,032
Comprehensive income
Profit
----10,03110,031
Other comprehensive income
---(43)-(43)
Total comprehensive income for the period, net of tax
- - - (43) 10,031 9,988
Balance at 30 September 2017 (unaudited)
193,958 425 (23) (37) 6,413 200,736
3

TURNERS AUTOMOTIVE GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
As at 30 September 2017
30/09/201730/09/201631/03/2017
UnauditedUnauditedAudited
$'000$'000$'000
Assets
Cash and cash equivalents
69,472
14,903 69,069
Financial assets at fair value through profit or loss
- Insurance
7,345
16,058 7,190
- Other
3,620
3,206 3,130
Trade receivables
17,538
10,114 12,663
Inventory
42,143
44,028 44,642
Finance receivables
269,229
176,052 207,143
Derivative financial instruments
-
- 88
Other receivables and deferred expenses
7,945
8,328 8,489
Reverse annuity mortgages
8,967
9,769 9,222
Investment property
4,000
3,500 4,000
Property, plant and equipment
23,736
13,856 18,909
Intangible assets
171,527
133,269 172,088
Total assets
625,522
433,083 556,633
Liabilities
Other payables
35,164
33,025 28,091
Financial liability at fair value through profit or loss
2,767
5,754 7,611
Deferred revenue
5,766
5,738 5,624
Deferred tax
20,044
10,698 20,173
Tax payable
1,681
276 1,808
Derivative financial instruments
43
- -
Borrowings
306,786
198,849 265,889
Life investment contract liabilities
8,079
15,862 12,847
Life insurance contract liabilities
44,456
11,560 42,874
Total liabilities
424,786
281,762 384,917
Shareholders' equity
Shard capital
193,958
155,436 168,809
Other reserves
365
(18) 191
Retained earnings
6,413
(4,097) 2,716
Total shareholders' equity
200,736
151,321 171,716
Total shareholders' equity and liabilities
625,522
433,083 556,633
Total assets per share ($)7.536.197.47
Net tangible assets ($)
0.59
0.41 0.27
The Group's insurance business is required to comply with the solvency standards for licensed insurers issued by the Reserve
Bank of New Zealand. The solvency standards specify the level of assets the insurance business is required to hold in order to
meet solvency requirements, consequently all cash and cash equivalents held in the insurance business may not be available for
use by the wider Group. The Group's insurance business' cash and cash equivalents at 30 September 2017 were $48.1m (30
September 2016: $6.2m; 31 March 2017: $55.6m).
Cash and cash equivalents at 30 September 2017 of $8.0m (30 September 2016 :$nil; 31 March 2017 : $2.1m) belongs to the
Turners Marque Warehouse Trust 1 and is not available to the Group.
4

TURNERS AUTOMOTIVE GROUP LIMITED
CONDENSED CONSOLIDATED CASH FLOW
STATEMENT
For the six months ended 30 September 2017
Six monthsSix monthsYear
endedendedended
30/09/201730/09/201631/03/2017
UnauditedUnauditedAudited
$'000$'000$'000
Cash flows from operating activities
Interest received 18,873 15,254 27,909
Receipts from customers 138,972 96,386 216,948
Interest paid(5,896) (5,610) (8,237)
Payment to suppliers and employees(132,000) (92,752) (216,489)
Income tax paid(4,465) (3,268) (5,044)
Net cash inflow/(outflow) from operating activities before
changes in operating assets and liabilities 15,484 10,010 15,087
Net increase in finance receivables(54,372) (9,569) (36,403)
Net decrease in reverse annuity mortgages 672 413 1,246
Sale of insurance assets at fair value through profit and loss 305 386 9,156
Net contribution from life investment contracts(4,877) (90) (2,645)
Changes in operating assets and liabilities arising from
cash flow movements(58,272) (8,860) (28,646)
Net cash (outflow)/inflow from operating activities(42,788) 1,150 (13,559)
Cash flows from investing activities
Proceeds from sale of property, plant, equipment and intangibles 152 163 340
Purchase of fixed assets and intangible assets(6,116) (2,763) (8,401)
Purchase of subsidiaries(3,733) (29,344) (63,346)
Net cash inflow from investing activities(9,697) (31,944) (71,407)
Cash flows from financing activities
Net bank loan advances/(repayments) 34,756 18,450 82,288
Proceeds of share issue 24,466 - 13,374
Proceeds from the issue of bonds - 19,784 19,784
Dividend paid(6,334) (6,361) (8,595)
Net cash inflow/(outflow) from financing activities 52,888 31,873 106,851
Net movement in cash and cash equivalents 403 1,079 21,885
Add opening cash and cash equivalents 69,069 13,810 13,810
Cash included with purchase of subsidiaries - - 33,378
Translation difference - 14 (4)
Closing cash and cash equivalents69,472 14,903 69,069
5

TURNERS AUTOMOTIVE GROUP LIMITED
CONDENSED CONSOLIDATED CASH FLOW
STATEMENT
For the six months ended 30 September 2017
Six monthsSix monthsYear
endedendedended
30/09/201730/09/201631/03/2017
UnauditedUnauditedAudited
$'000$'000$'000
RECONCILIATION OF NET SURPLUS WITH CASH FLOWS FROM OPERATING ACTIVITIES
Profit/(loss) 10,031 8,527 17,574
Adjustment for Non-cash items
Movement in impairment provisions
2,281 739 2,026
Net loss on sale of fixed assets
(227) (24) (84)
Depreciation and amortisation 2,689 1,247 2,863
Capitalised reverse annuity mortgage interest
(432) (456) (885)
Deferred revenues 282 2,508 4,678
Change in value of financial assets at fair value through profit or loss(929) (114) (1,012)
Net annuity and premium change to policyholders accounts 109 (1,183) (137)
Non-cash long term employee benefits 238 323 179
Non-cash adjustments to finance receivables effective interest rates 51 (14) 83
Deferred expenses(5,909) 45 (3,901)
Adjustment for Movements in Working Capital
Net increase receivables and pre-payments
(1,823) (3,860) (6,518)
Net decrease/(increase) in inventories
2,578 (2,870) (3,585)
Net decrease/(increase) in current tax receivable
(266) - 2,159
Net increase/(decrease) in payables
6,797 5,178 1,575
Net increase in finance receivables
(54,372) (9,569) (36,403)
Net decrease in reverse annuity mortgages
672 413 1,246
Net decrease of insurance assets at fair value through profit or loss
305 386 9,156
Net contributions from life investment contracts
(4,877) (90) (2,645)
Net decrease/(increase) in deferred tax
1,214 (33) 76
Net increase in tax payable
(1,200) (3) (4)
Net Cash inflow/(outflow) from Operating Activities(42,788) 1,150 (13,559)
6

TURNERS AUTOMOTIVE GROUP LIMITED
SEGMENTAL INFORMATION
OPERATING SEGMENTS
RevenueRevenueRevenueRevenue
TotalInter-fromTotalInter-fromTotalInter-from
segmentsegmentexternalsegmentsegmentexternalsegmentsegmentexternal
revenuerevenuecustomersrevenuerevenuecustomersrevenuerevenuecustomers
30/09/201730/09/201730/09/201730/09/201630/09/201630/09/201631/03/201731/03/201731/03/2017
UnauditedUnauditedUnauditedUnauditedUnauditedUnauditedAuditedAuditedAudited
$'000$'000$'000$'000$'000$'000$'000$'000$'000
Automotive retail 115,694 (2,211) 113,483 86,182 - 86,182 193,472 (783) 192,689
Finance 17,791 - 17,791 12,801 - 12,801 26,818 - 26,818
Collection Services - New Zealand 6,978 (2,171) 4,807 6,932 (1,836) 5,096 13,127 (3,804) 9,323
Collection Services - Australia 5,382 - 5,382 4,721 - 4,721 9,783 - 9,783
Insurance 22,369 - 22,369 5,025 - 5,025 12,255 - 12,255
Corporate & Other 10 - 10 293 (169) 124 466 (325) 141
168,224 (4,382) 163,842 115,954 (2,005) 113,949 255,921 (4,912) 251,009
Operating profit30/09/201730/09/201631/03/2017
UnauditedUnauditedAudited
$'000$'000$'000
Automotive retail 8,771 6,918 15,397
Finance 5,537 4,937 10,156
Collection Services - New Zealand 3,285 3,279 6,006
Collection Services - Australia 128 116 239
Insurance 2,627 130 928
Corporate & Other(6,104) (3,618) (8,095)
Profit/(loss) before taxation14,24411,76224,631
Income tax(4,213) (3,235) (7,057)
Profit attributable to shareholders 10,031 8,527 17,574
Interest revenueInterest expense
30/09/201730/09/201631/03/201730/09/201730/09/201631/03/201730/09/201730/09/201631/03/2017
UnauditedUnauditedAuditedUnauditedUnauditedAuditedUnauditedUnauditedAudited
$'000$'000$'000$'000$'000$'000$'000$'000$'000
Automotive retail 4,289 3,7357,5902,3021,8123,7531,242 1,0102,286
Finance 15,710 11,07922,9072,6431,9153,648152 122329
Collection Services - New Zealand 5 413-1-39 4292
Collection Services - Australia - -----1 --
Insurance 993 415875---1,221 4391
Corporate & Other92474181,7482,0834,274 34 3065
21,00615,48031,8036,6935,81111,6752,6891,2472,863
Eliminations(161)(169)(325)(161)(169)(325)---
20,84515,31131,4786,5325,64211,3502,6891,2472,863
Depreciation and
amortisation expenses
7

Other material non-cash items
RevenueExpenses
30/09/201730/09/201631/03/201730/09/201730/09/201631/03/2017
UnauditedUnauditedAuditedUnauditedUnauditedAudited
$'000$'000$'000$'000$'000$'000
Automotive retail - impairment provisions---207121297
Finance - impairment provisions---2,0166011,710
Insurance - impairment provisions---531416
Automotive retail - revaluation of investment590523729---
Finance - investment property--500---
Collection services - New Zealand - deferred revenue2415971,061---
Insurance - reverse annuity mortgage interest432396825---
Corporate & Other - reverse annuity mortgage interest-6060---
1,2631,5763,1752,2767362,023
2.2 SEGMENT ASSETS AND LIABILITIES
30/09/201730/09/201631/03/201730/09/201730/09/201631/03/2017
UnauditedUnauditedAuditedUnauditedUnauditedAudited
$'000$'000$'000$'000$'000$'000
Automotive retail140,406119,932134,160108,69895,565103,821
Finance228,077143,886174,134178,43999,215126,528
Collection Services - New Zealand26,62528,16325,9747,82413,9089,246
Collection Services - Australia1,8521,5701,908758683890
Insurance117,86243,030118,72264,41333,98066,503
Corporate & Other285,026280,569266,40372,386101,43079,169
799,848617,150721,301432,518344,781386,157
Eliminations(174,326)(184,067)(164,668)(7,732)(63,019)(1,240)
625,522433,083556,633424,786281,762384,917
2.3 AUTOMOTIVE RETAIL SEGMENT ANALYSISRevenueRevenueRevenue
TotalInter-fromTotalInter-fromTotalInter-from
segmentsegmentexternalsegmentsegmentexternalsegmentsegmentexternal
revenuerevenuecustomersrevenuerevenuecustomersrevenuerevenuecustomers
30/09/201730/09/201730/09/201730/09/201630/09/201630/09/201631/03/201731/03/201731/03/2017
UnauditedUnauditedUnauditedUnauditedUnauditedUnauditedAuditedAuditedAudited
$'000$'000$'000$'000$'000$'000$'000$'000$'000
Auctions21,899(607)21,29218,851-18,85138,169(272)37,897
Finance7,313(194)7,1197,109-7,10912,700-12,700
Fleet56,114-56,11449,216-49,21697,858-97,858
Buy Right Cars30,368(1,410)28,95811,006-11,00644,745(511)44,234
115,694(2,211)113,48386,182-86,182193,472(783)192,689
Operating profit30/09/201730/09/201631/03/2017
UnauditedUnauditedAudited
$'000$'000$'000
Auctions2,4591,5082,442
Finance2,9562,5254,916
Fleet1,9932,2074,932
Buy Right Cars1,3636783,107
8,7716,91815,397
Segment assetsSegment liabilities
8

Division assets and liabilitiesAssetsLiabilities
30/09/201730/09/201631/03/201730/09/201730/09/201631/03/2017
UnauditedUnauditedAuditedUnauditedUnauditedAudited
$'000$'000$'000$'000$'000$'000
Auctions26,58321,10230,3867,1944,81513,044
Finance61,46350,62155,50658,31948,49650,694
Fleet20,65114,02520,54616,56510,33314,876
Buy Right Cars31,70934,18429,45026,62031,92125724
140,406119,932135,888108,69895,565104,338
--(1,728)--(517)
140,406119,932134,160108,69895,565103,821
Five reportable segment have been identified as follows:
Automotive retail - remarketing ( motor vehicles, trucks, heavy machinery and commercial goods) and purchasing goods for sale (motor vehicles and commercial goods) and related asset based finance to consumers.
Collection services - collection services, credit management and debt recovery services to the corporate and SME sectors. Geographically the collections services segment business activities are located in New Zealand and Australia.
Finance - provides asset based finance to consumers and SME's.
Insurance - marketing and administration of a range of life and consumer insurance and superannuation products.
Corporate & other - corporate centre.
9

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Ex Date:
Commence Quoting Rights:Security Code:
Cease Quoting Rights 5pm:
Commence Quoting New Securities:Security Code:
Cease Quoting Old Security 5pm:
15 December, 201722 December, 2017
$$0.002083$0.011667
$
New Zealand Dollars
$2,540,565
Date Payable
Enter N/A if not
applicable
NZVNLE0001S1
In dollars and cents
$0.030
Ordinary shares
09 308 496709 308 498228112017
EMAIL: announce@nzx.com
Notice of event affecting securities
Turners Automotive Group Limited
Barbara BadishDirectors' resolution

---

Interim Results PresentationFor six months ending 30 September 2017

HY18 Interim Results Presentation
HY18 HIGHLIGHTS AND KEY EVENTS
•
Autosure and Buy Right Cars both successfully integ
rated into the
group and contributed full six months of earnings
•
All divisions delivered improvements in revenue and
operating profit
•
ASX dual listing completed
•
Appointed Greg Hedgepeth as CEO of Auto Retail divi
sion
•
Completion of capital raising: $25m placement (plus
$5m SPP
completed post-period end) to support growth initia
tives
2

HY18 Interim Results Presentation
3
HY RESULTS SNAPSHOTContinuing growth in revenue and profit
Revenue
$163.8m, +44%
Net Profit Before Tax
$14.2m, +21%
Net Profit After Tax
$10.0m, +18%
Shareholders’ Equity
$200.7m as at 30 Sep 17
Q2 Dividend 3.0 cps
Total HY Dividend 6.0cps
Earnings Per Share
13.4cps
0
50
100150200250300
FY15
FY16
FY17
FY18
Millions
REVENUE
2H1H
05
1015202530
FY15
FY16
FY17
FY18
Millions
NET PROFIT AFTER TAX
2H1H

HY18 Interim Results Presentation
HY16: HY17 REVENUE BRIDGE
4
•
Organic growth underpinned by strong used car sales and loan origination across the market
•
Improvement in retail “end-user” sales in Turners Cars driving growth in finance and fleet margins (fixed price sales up 20% YoY)
•
Continued growth in MTF non-recourse lending product. Loan book at $51m at end of Sept 2017
•
Autosure business performing well and integration well underway
$113.9m
$163.8m

HY18 Interim Results Presentation
HY16: HY17 OPERATING PROFIT BRIDGE
5
•
Turners Group performance from Trucks and Machinery, further improvement in finance and insurance sales
•
Finance result improvement due to increase in ledger up 53% (growth from captive retail and MTF channels)
•
Finance provisions have increased as size of ledger has grown
•
Insurance showing pleasing growth in policy sales and GWP balanced by a conservative position on reserving for claims
•
Corporate costs impacted by acquisition amortisation and increased interest on acquisition funding
•
Increase in captive finance referrals resulting in upfront expensing of commissions at group level
$14.2m
$11.8m

HY18 Interim Results Presentation
BALANCE SHEET
•
Increase in cash balances due to transfer of Autosure Insurance liabilities on 31 March 2017
•
Growth in Finance Receivables and acquisitions driving increased borrowing
•
Property, plant and equipment includes Buy Right Cars and acquisition of greenfield sites
•
Borrowings increased in line with demand for finance
•
Insurance contract liabilities include Autosure
•
Deferred tax increase reflects gross up of Goodwill for acquisition of Autosure
6
$000s
HY18
HY17
Cash and cash equivalents
69,472
14,903
Finance Receivables
269,229
176,052
Inventory
42,143
44,028
Property, Plant and Equipment
23,736
13,856
Other Assets
49,415
50,975
Intangible Assets
171,527
133,269
TOTAL ASSETS
625,522
433,083
Borrowings
306,786
198,849
Other Payables
35,164
33,025
Deferred Tax
20,044
10,698
Insurance Contract Liabilities
44,456
11,560
Other Liabilities
18,336
27,630
TOTAL LIABILITIES
424,786
281,762

HY18 Interim Results Presentation
FUNDING MIX
7
Bank
Securitis
ation
Bonds
MTF
FY17 Borrowings by Source
Net Debt information
HY18 $m
% of Total
HY17 $m
% of Total
TOTAL ASSETS
626
433
Equity
201
32%
151
35%
Convertible bonds
26
4%
26
6%
Securitisation Funding (BNZ)
114
18%
-
Bank Funding [Corporate BNZ & ASB]
112
18%
126
29%
MTF Finance Receivables Funding
55
9%
46
11%
Insurance Contract Liabilities
45
7%
12
3%
Life Investment Contract Liabilities
8
2%
16
4%
Payables and Deferred Revenue
45
7%
45
10%
Deferred tax liability
20
3%
11
2%
•
Extension of securitisation funding programme underway
•
Banking syndication in progress

HY18 Interim Results Presentation
OPERATING ENVIRONMENT
•
Used vehicle market continuing to grow:
o
Used cars up 1% YOY
o
Used trucks up 5% YOY
o
Damaged and end of life up 10% YOY
•
12% increase (14,000 units) in number of used import
cars coming
into NZ Sept YTD
•
New car registrations (passenger and light commerci
al) up 9.8% to
112,000 units registered Sept YTD.
•
Number of registered dealers up 7% to 3,500 (an incr
ease of 37%
since 2012)
•
Additional supply and increased competition leading
to some margin
pressure
8

HY18 Interim Results Presentation
DIVISIONAL RESULTS
9
05
10152025
HY16
HY17
HY18
$M
SECTOR OPERATING PROFIT
Automotive RetailFinance and InsuranceDebt Management
0
20406080
100120140160180
HY16
HY17
HY18
$M
REVENUE
Automotive RetailFinance and InsuranceDebt Management

HY18 Interim Results Presentation
AUTOMOTIVE RETAILRevenue $113.5m +32%, Op Profit $8.8m +27%
10
•
Focus on higher margin sales helping to offset pric
e competition:
̵ Continuing increase in fixed price sales - up 20% Y
oY
̵ Sales to end users were 72% of all car purchases i
n H1 FY18
(64% Sept 16)
•
Corresponding increase in finance contract sales (2
3% increase in
loans written, 22% increase in MBI policies sold)
•
Expansion of physical footprint with new sites for
both Cars and
Trucks & Machinery
•
Penrose Auckland (new) Buy Right Cars site
•
Wiri Auckland (replacement) Trucks and Machinery
•
Porirua Wellington (replacement) Cars
•
Whangarei (replacement) Cars
•
Hamilton (new) Trucks and Machinery
•
Progressing opportunity to offer service and mainte
nance
•
Refreshed management team at Buy Right Cars
20%30%40%50%60%70%80%
Sep-13
Mar-14
Sep-14
Mar-15
Sep-15
Mar-16
Sep-16
Mar-17
Sep-17
SALES BY CUSTOMER TYPE
Sales to End Users
Sales to Wholesale

HY18 Interim Results Presentation
FINANCERevenue 17.8m +39%, Op Profit $5.5m +12%
11
•
Finance receivables growth has continued, up 30% to
$269.2m from
March 2017
•
Continued enhancements of online loan approval plat
form AutoApp
•
Non-recourse lending product for MTF network remain
s very
popular, loan book at $51m
•
Focus on building and driving growth out of the ref
erral base of
dealers and brokers
•
Account instalment arrears tracking at 1.05% (1.00%
at Sept 16 YTD)
•
Integration and consolidation of finance brands int
o single entity is
progressing well
0
50
100150200250300
1H16 2H16 1H17 2H17 1H18
$Millions
FINANCE RECEIVABLES
Core
Turners
MTF non-recourse

HY18 Interim Results Presentation
INSURANCERevenue $22.4m +345%, Op Profit $2.6m (HY17: $0.1m)
12
•
Continuing innovation – dealer loyalty scheme, EV breakdown cover, refreshed loan repayment insurance products
•
Continue to build claims reserves over and above ac
tual
losses, in conjunction with close monitoring of risk
profiles
and claims management
•
GWP ahead of expectations YTD
•
Use of data analytics across the business to better

understand claims and pricing by portfolio and vehi
cle
category
•
Consolidation of insurance brands into single entit
y is
progressing well
•
Improved performance in life products through new distribution arrangements

HY18 Interim Results Presentation
DEBT MANAGEMENTRevenue $10.2m +4%, Op Profit $3.4m (HY17: $3.4m)
13
•
Business continues to perform well, remains highly c
ash generative
•
Continue to increase debt load from key corporate a
ccounts at
expense of competitors
•
Strong Terms of Trade product sales in both NZ and
Australian
markets (17% up YTD)
•
Focus on building analytics capability and efficien
cies in contact
centre - new Auto Dialler technology introduced wit
h encouraging
results.
•
Partnership established with IODM, an Australian bas
ed online
automated accounts receivable solution provider, to
resell IODM
products and exclusive partnership for provision of
debt collection
services
•
Result includes $240k unredeemed voucher release ($
600k Sept
2016)

HY18 Interim Results Presentation
OUR STRATEGY IS FOCUSED ON GROWTH
ORGANIC
GROWTH
GROUP
INTEGRATION
MERGERS &
ACQUISITIONS
DRIVEN BY
OUR PEOPLE
ORGANIC GROWTH: Identify opportunities to grow each business: More customers, more products and services, more channels, better technologyGROUP INTEGRATION: Cross selling product across the group, and building a common operating and funding platform for the finance businessesMERGERS AND ACQUISITIONS: Target businesses that build capability/scale and have sustainable earnings

and growth potentialOUR PEOPLE: Invest into upskilling and rewarding our

people to encourage them to strive for growth
14

HY18 Interim Results Presentation
2H18 OUTLOOK
15
•
Organic growth through innovation
•
Expand physical footprint through extension and dev
elopment of new
sites for both Cars and Trucks & Machinery
•
Develop bundled approach to finance and insurance
•
Consolidation of finance entities and insurance ent
ities into single
operating platforms
•
Build on existing capability to offer servicing and
maintenance
•
Continue to assess M&A opportunities to build marke
t share,
particularly in Automotive Retail
Firmly on track to achieve FY18 Guidance•
Net Profit Before Tax of $29m to $31m (represents a
n 18% to 26%
increase on FY17, or 10 to 14% excluding acquisition
s)

HY18 Interim Results Presentation
Contact:Todd HunterCEO Turners LimitedT: 64 21 722 818E: todd.hunter@turners.co.nz
16

HY18 Interim Results Presentation
DISCLAIMERTurners Automotive Group the
(company)
is solely responsible for the content of this docum
ent. This document is not an investment
statement or prospectus and does not constitute an
offer of securities.
This document or any other written or oral statemen
ts made by, or on behalf of, the company may include
forward-looking statements that
reflect the company’s current views with respect to
future events and financial performance. These fo
rward-looking statements are subject to
uncertainties and other factors that could cause ac
tual results to differ materially from such stateme
nts. These uncertainties and other factors
include, but are not limited to:I. Uncertainties relating to government and regulato
ry policies;
II. The occurrence of catastrophic events with a fre
quency or severity exceeding our estimates;
III. The legal environment;IV. Loss of services of any of the company’s officer
s;
V. General economic conditions; and VI. The competitive environment in which the company
, its subsidiaries and its customers operate; and ot
her risks inherent in the company’s
industry
The words “believe,” “anticipate,” “investment,”
“plan,” “estimate,” “expect,” “intend,” “will
likely result,” or “will continue” and other
similar expressions identify forward-looking statem
ents. Recipients of this document are cautioned no
t to place undue reliance on these
forward-looking statements, which speak only as of t
heir dates. The company undertakes no obligation t
o update or revise any forward-
looking statements, whether as a result of new infor
mation, future events or otherwise.
17