TRA – Australian Interim Results Roadshow Presentation

Interim Results Presentation
For six months ending 30 September 2017
Todd Hunter –Chief Executive Officer
Aaron Saunders –Chief Financial Officer

HY18 Interim Results Presentation –Australia Roadshow
HY18 HIGHLIGHTS AND KEY EVENTS
•Autosure and Buy Right Cars both successfully integrated 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 division
•Completion of capital raising: $25m placement (plus $5m SPP
completed post-period end) to support growth initiatives
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HY18 Interim Results Presentation –Australia Roadshow
3
HY RESULTS SNAPSHOT
Continuing 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 cpsTotal HY Dividend 6.0cps
Earnings Per Share13.4cps
0
50
100
150
200
250
300
FY15FY16FY17FY18
Millions
REVENUE
2H
1H
0
5
10
15
20
25
30
FY15FY16FY17FY18
Millions
NET PROFIT AFTER TAX
2H
1H

HY18 Interim Results Presentation –Australia Roadshow
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 –Australia Roadshow
HY16: HY17 OPERATING PROFIT BRIDGE
5
•Organic growth of 14% excluding Buy Right Cars
and Autosure acquisition
•Turners Group additional end users sales and
growth in Trucks and Machinery
•Finance result improvement due to increase in
ledger, 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 ($1.1m) and increased interest on
acquisition funding
•Increase in captive finance referrals resulting in
upfront expensing of commissions at group
level ($1.2m drag on earnings)
$14.2m
$11.8m

HY18 Interim Results Presentation –Australia Roadshow
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
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$000sHY18HY17
Cash and cash equivalents
69,47214,903
FinanceReceivables
269,229176,052
Inventory
42,14344,028
Property, Plant and Equipment
23,73613,856
Other Assets
49,41550,975
IntangibleAssets
171,527133,269
TOTALASSETS
625,522433,083
Borrowings
306,786198,849
Other Payables
35,16433,025
Deferred Tax
20,04410,698
Insurance ContractLiabilities
44,45611,560
OtherLiabilities
18,33627,630
TOTALLIABILITIES
424,786281,762

HY18 Interim Results Presentation –Australia Roadshow
FUNDING MIX
7
Bank
Securitisation
Bonds
MTF
FY17 Borrowings by Source
Net Debt information
HY18 $m% of TotalHY17 $m% of Total
TOTAL ASSETS
626433
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 –Australia Roadshow
OPERATING ENVIRONMENT
•Used vehicle market continuing to grow:
oUsed cars up 1% YOY
oUsed trucks up 5% YOY
oDamaged 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 commercial) up 9.8% to
112,000 units registered Sept YTD.
•Number of registered dealers up 7% to 3,500 (an increase of 37%
since 2012)
•Additional supply and increased competition leading to some margin
pressure
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HY18 Interim Results Presentation –Australia Roadshow
DIVISIONAL RESULTS
9
0
5
10
15
20
25
HY16HY17HY18
$M
SECTOR OPERATING PROFIT
Automotive Retail
Finance and Insurance
Debt Management
0
20
40
60
80
100
120
140
160
180
HY16HY17HY18
$M
REVENUE
Automotive Retail
Finance and Insurance
Debt Management

HY18 Interim Results Presentation –Australia Roadshow
AUTOMOTIVE RETAIL
Revenue $113.5m +32%, Op Profit $8.8m +27%
10
•Organic revenue and profit growth (excluding Buy Right Cars)
of 12% and 19% respectively
•Focus on higher margin sales helping to offset price competition:
̵Continuing increase in fixed price sales -up 20% YoY
̵Sales to end users were 72% of all car purchases in H1 FY18
(64% Sept 16)
•Corresponding increase in finance contract sales (23% increase in
loans written, 22% increase in MBI policies sold)
•Expansion of physical footprint
•Penrose Auckland (new) Buy Right Cars site
•WiriAuckland (replacement) Trucks and Machinery
•Porirua Wellington (replacement) Cars
•Whangarei (replacement) Cars
•Hamilton (new) Trucks and Machinery
•Progressing opportunity to offer service and maintenance
•Refreshed management team at Buy Right Cars
20%
30%
40%
50%
60%
70%
80%
Sep-13Mar-14Sep-14Mar-15Sep-15Mar-16Sep-16Mar-17Sep-17
SALES BY CUSTOMER TYPE
Sales to End UsersSales to Wholesale

HY18 Interim Results Presentation –Australia Roadshow
FINANCE
Revenue 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 platform AutoApp
•Non-recourse lending product for MTF network remains very
popular, loan book at $51m
•Focus on building and driving growth out of the referral base of
dealers and brokers
•Account instalment arrears tracking at 1.05% (1.00% at Sept 16 YTD)
•Continue to tighten credit criteria to position the business for any
change in the credit cycle
•Integration and consolidation of finance brands into single entity is
progressing well
0
50
100
150
200
250
300
1H162H161H172H171H18
$Millions
FINANCE RECEIVABLES
CoreTurnersMTF non-recourse

HY18 Interim Results Presentation –Australia Roadshow
INSURANCE
Revenue $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 actual 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 vehicle category
•Consolidation of insurance brands into single entity is
progressing well
•Improved performance in life products through new
distribution arrangements

HY18 Interim Results Presentation –Australia Roadshow
DEBT MANAGEMENT
Revenue $10.2m +4%, Op Profit $3.4m (HY17: $3.4m)
13
•Business continues to perform well, remains highly cash generative
•Continue to increase debt load from key corporate accounts 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 efficiencies in contact
centre -new Auto Dialler technology introduced with encouraging
results.
•Partnership established with IODM, an Australian based 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 –Australia Roadshow
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 technology
GROUP INTEGRATION: Cross selling product across
the group, and building a common operating and
funding platform for the finance businesses
MERGERS AND ACQUISITIONS: Target businesses that
build capability/scale and have sustainable earnings
and growth potential
OUR PEOPLE: Invest into upskilling and rewarding our
people to encourage them to strive for growth
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HY18 Interim Results Presentation –Australia Roadshow
2H18 OUTLOOK
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•Organic growth through innovation
•Expand physical footprint through extension and development of new
sites for both Cars and Trucks & Machinery
•Develop bundled approach to finance and insurance
•Consolidation of finance entities and insurance entities into single
operating platforms
•Build on existing capability to offer servicing and maintenance
•Continue to assess M&A opportunities to build market share,
particularly in Automotive Retail
Firmly on track to achieve FY18 Guidance
•Net Profit Before Tax of $29m to $31m (represents an 18% to 26%
increase on FY17, or 10 to 14% excluding acquisitions)

HY18 Interim Results Presentation –Australia Roadshow
Contact:
Todd Hunter
CEO Turners Limited
T: 64 21 722 818
E: todd.hunter@turners.co.nz
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HY18 Interim Results Presentation –Australia Roadshow
Financial performance HY18 (vs pcp)
HY18HY18 (excl. acquisitions)
1
NZ$m% pcp
2
NZ$m% pcp
2
Operating revenue
Automotive
113.532%84.512%
Finance
17.839%17.839%
Insurance
22.4345%6.223%
Debt management
10.24%10.24%
Corporate
0.0-92%0.0-92%
Operating revenue
163.844%118.715%
Operating profit
Automotive
8.827%7.419%
Finance
5.512%5.512%
Insurance
2.61921%0.6368%
Debt management
3.41%3.41%
Corporate
-3.86%-3.914%
Inter-company eliminations
-1.2n/a-0.2n/a
Acquisition amortisation
-1.1n/a0.0n/a
Operating profit
14.221%12.914%
Note 1. Excludes the acquisition of Buy Right Cars and Autosure
2. Previous comparable period (pcp) is the six months to September 2016
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APPENDIX 1 –DIVISIONAL PERFORMANCE

HY18 Interim Results Presentation –Australia Roadshow
APPENDIX 2 -THE NZ USED CAR ECONOMY
79%
Of all household trips taken
in a car
3.7m
Light vehicles in the NZ vehicle fleet
3,500
Registered dealers
in NZ
14yrs
Is the average age of used
vehicle in NZ
7.0% pa CAGR
1
Dealer-to-public sales growth over the
past 5 years
657
Cars owned per 1,000 NZers, higher than Australia
and the UK
153,000
used cars were imported into NZ
in 2016
19.2 and 18.7
years
In 2015, the average
age light vehicles were
scrapped from fleet
was 19.2 years for
import and 18.7 years
for NZ new
Source: NZTA, Ministry of Transport, MBIE
Note 1. Dealer-to-public plus ex-overseas sales
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HY18 Interim Results Presentation –Australia Roadshow
DISCLAIMER
Turners Automotive Group the (company) is solely responsible for the content of this document. 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 statements 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 forward-looking statements are subject to
uncertainties and other factors that could cause actual results to differ materially from such statements. These uncertainties and other factors
include, but are not limited to:
I.Uncertainties relating to government and regulatory policies;
II.The occurrence of catastrophic events with a frequency or severity exceeding our estimates;
III.The legal environment;
IV.Loss of services of any of the company’s officers;
V.General economic conditions; and
VI.The competitive environment in which the company, its subsidiaries and its customers operate; and other risks inherent in thecompany’s
industry
The words “believe,” “anticipate,” “investment,” “plan,” “estimate,” “expect,” “intend,” “will likely result,” or “willcontinue” and other
similar expressions identify forward-looking statements. Recipients of this document are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of their dates. The company undertakes no obligation to update or revise any forward-
looking statements, whether as a result of new information, future events or otherwise.
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