TURNERS DELIVERS 33% INCREASE IN PROFIT

Company Announcement
29 May 2018
TURNERS DELIVERS 33% INCREASE IN PROFIT AFTER YEAR OF INTEGRATION AND GROWTH
TRA Full Year Result for the 12 months ended 31 March 2018
Turners Automotive Group Limited (NZX/ASX:TRA) has delivered a strong 33% lift in net profit after tax
to $23.4m as it benefits from acquisitions and its integrated offering in the automotive sector.
A full year of contribution from strategic acquisitions helped to boost the result, with Turners moving to
focus on organic growth and synergy benefits after a period of sustained acquisition growth. Net profit
before tax was $31.1m, at the top end of earlier market guidance and represents a 26% increase on the
prior year. Guidance for FY19 has been set at $34m to $36m net profit before tax (a mid-point increase
of 13% on FY18).
Revenue was up 31% to $330.5m positively impacted by both the Buy Right Cars and Autosure
acquisitions, and the organic growth from Turners focus on retail and the growing finance book.
Shareholder equity as at 31 March 2018 was $214.3m (FY17: $171.7m) and reflects the $30m capital
raise in October 2017. The additional capital provides Turners with funding to support the continued
organic growth across the business as well as a ‘war chest’ for additional growth initiatives including
strategic acquisitions and property expansion.
Turners’ funding platform has recently been strengthened with the successful completion of a banking
syndication with ASB and BNZ replacing previous facilities held largely with BNZ. The new arrangement
significantly simplifies the debt structure, provides more funding headroom and further diversifies the
funding base of the group. Importantly the new structure will enable a higher proportion of cash from
operations to be directed into growth initiatives due to the shift from amortising debt to committed
longer term debt. The company is also in the process of re-negotiating pool parameters with BNZ on the
Securitisation Warehouse. “Both ASB and BNZ have been extremely supportive and have indicated
appetite to extend further credit as and when required to support Turners’ growth” said CEO Todd
Hunter. “We highly value the strong long term relationships we have had with both banks over many
years.”
Based on the ongoing positive performance of the group, the Board has declared a final quarter fully
imputed dividend of 5.0 cents per share, taking full year dividends to 15.5 cents per share, up from 14.5
cents in FY17. Directors have also adopted an enhanced dividend policy with an increase in the payout
ratio to 50% to 60% of NPAT.
Chairman of Turners, Mr Grant Baker, said: “We are pleased to deliver another year of record results
and increasing value for our shareholders. Kiwis love their cars – more than 1.1 million transactions took
place in the last year alone – and we expect the demand for second hand vehicles to continue, whether
that be today’s internal combustion engines or the electric vehicles of the future.
“Going forward, we will continue to build on the strength of our existing businesses, offering more
products and services to more customers across more channels. Our company is well funded and well

Company Announcement
29 May 2018
positioned to continue growing, cementing our unique position as an integrated automotive group and
delivering increasing value for our shareholders.”
The results to 31 March 2018 have been audited by Staples Rodway, who expect to give an unmodified
opinion on the financial statements.
Trading Performance
Turners operates an integrated business helping retail and wholesale customers across three divisions –
Automotive Retail, Finance and Insurance, and Debt Management Services. This provides a number of
advantages, from the ability to offer an end-to-end customer journey and higher margin transactions in
controlled channels, through to better customer relationships, diversification of earnings and a balanced
mix of annuity and transactional revenue.
This year, management have deliberately focused on integrating acquisitions and driving organic growth
after a period of sustained growth by acquisition. This integration included simplifying brands to allow
for better marketing and promotion; merging teams to improve collaboration; building common
operating and funding platforms; and continuing to improve systems and processes to ensure the
company operates as efficiently as possible in delivering a great customer experience.
The expansion and development of Turners property footprint is opening additional opportunities for
profit contribution. New sites are being targeted and a number of “retail reconfiguration” projects are
underway to support organic growth and drive improved retail experience. We have completed 2
significant projects (value circa $16m) in the last 12 months in Porirua and Wiri. We are also able to
improve insurance division returns by allocating a proportion of growing insurance reserves to support
the auto retail property expansion and assist in better utilisation of capital in the business.
Trends in the used vehicle market remained positive during FY18, despite some softening earlier in the
year during the elections and dealing with the Stink Bug and Takata Airbag Recall in the latter part of the
year. Year on year, sales were up across the industry for all used vehicle groups – cars, trucks &
machinery and damaged & end of life vehicles.
With a tight labour market and requirements for more resource Turners are working hard to make sure
they are an employer of choice and will continue to attract the right sort of people. We continue to
measure and focus on improving employee engagement, a commitment to ongoing workplace diversity,
building a culture of developing people and promote from within.
Automotive Retail (Turners Group and Buy Right Cars) is the largest contributor to the group,
generating 68% of revenue and 41% of operating profit. Revenue was $223.2m, up 16% on prior year,
while Operating Profit was $16.6m, an increase of 8%.
Turners Group has delivered another outstanding result with operating profit up 15% on prior year off
revenue growth of 10%. The ongoing transition from wholesale to higher margin retail customers
continues, with 70% of transactions now with retail customers (65% in FY17). These sales provide more

Company Announcement
29 May 2018
opportunities to sell finance and insurance contracts. In addition, the percentage of ‘owned’ vehicles –
those purchased and onsold by Turners – increased to 50% of transactions, up from 15% four years ago.
These retail sales also generate better margins and more lending opportunities.
Buy Right Cars had strong revenue growth up 34% from a full year contribution, however operating
profits were down 21%. Turners took over the management of Buy Right Cars in September 2017 from
the vendor, a year earlier than expected. We have had a new management team in place since
November 2017 and they are dealing competently with some legacy issues around aged inventory. The
earnout payment to the original owners has been adjusted accordingly and is working as intended. The
Board and management remain very confident about further growth prospects of the Buy Right Cars
business.
Today, the company is pleased to announce a new partnership with Auto Super Shoppe to provide
services, repairs and maintenance for vehicle owners. Auto Super Shoppes has a network of 83
workshops located right throughout New Zealand and are the ideal partner for the new Turners Service
offering. The service products will be rolled out through the Turners Cars branches over the next two
months, fulfilled through the Auto Super Shoppe network.
The Finance division delivered a 48% lift in revenue to $39.7m and a 16% increase in operating profit to
$11.7m. The finance book grew 39% to $239.0m. The primary focus for the year was amalgamating the
separate finance businesses under the Oxford Finance brand and establishing a single operating
platform. From H2 FY19, Turners Finance loans will be redirected into Oxford Finance in another step
towards deeper group integration.
Credit criteria continues to be tightened to position the business for the inevitable downward shift in
the credit cycle. There has been some arrears deterioration, most noticeably in the MTF non-recourse
book as this loan book seasons. The performance of the loans written by originators in the first 12
months have disappointed both MTF and ourselves. This has resulted in a tightening of the credit criteria
and change to the customer on-boarding process which has reduced loan volumes but significantly
improved the quality of new lending.
Insurance revenue grew almost 300% to $46.9m and operating profit increased by over 500% to $5.7m,
mainly due to the acquisition of Autosure in 2016 which provided a step change in the scale of the
business. As with finance, the focus has been on combining multiple businesses into one insurance
brand, Autosure. Significant progress has been made in integrating brands including moving to new
premises. Migrating to a new front end retail system will be the final step in this large integration
project and this will be completed in the latter part of FY19. We have also implemented a number of risk
and product pricing initiatives over the FY18 year to ensure we are pricing correctly for risk in a changing
market. The number of gross written policies and new policy sales continues to grow; and sales of
mechanical breakdown and motor vehicle insurance now exceed 5,300 policies per month.
Claims ratios were slightly higher than forecast at 70%, and we have a number of initiatives already in
place to bring this closer to 68% over the FY19 year. We continue to take a conservative approach to

Company Announcement
29 May 2018
building claims reserves over and above actual losses, in conjunction with close monitoring of risk
profiles and claims management.
The Debt Management business, EC Credit Control, continues to deliver consistent results with both
revenue of $18.7m and operating profit of $6.1m in line with last year. This is a strong performance
considering the reduced unredeemed voucher release of $433k (FY17 $1.1m). Debt load from New
Zealand corporate customers has been positive as have product sales to the New Zealand SME market.
There is still a big opportunity for the business in the Australian corporate market where sales efforts
are being targeted. EC Credit Control is benefitting from new Auto Dialler technology creating
efficiencies in their contact centre. The recently announced strategic partnership with IODM, an
Australian based online automated accounts receivable solution provider is still building momentum.
This partnership strengthens the overall product offering of EC Credit Control and the proposition to our
customer base by pushing us further into the accounts receivable process.
Outlook
Turners is focused on growing market share by leveraging the strength and unique benefits of its
integrated business model. The used vehicle market remains strong and the large number of cars
nearing ‘scrapping’ age continues to grow which is positive for underlying replacement demand in the
market and as automotive sales increase, so does the demand for automotive finance and insurance
products. Our recent consumer market research project confirmed Turners as having the most “trusted”
brand in the used car market and the brand that has the most awareness. We are strongly positioned to
attract customers to our ‘one stop shop’ service.
The company is well funded and has a strong platform in place to support continued growth. While
mergers and acquisitions will be considered where there is a strategic benefit, the majority of medium-
term growth will come from within the group. Directors and management are very focused on
continuing to drive shareholder value through growing underlying sustainable profits and improving
dividends to increase returns and value for shareholders.
Turners is expecting to deliver another year of strong growth in FY19, with Net Profit before Tax
expected to be between $34m and $36m.

ENDS

About Turners
Turners Automotive Group Limited is an integrated financial services group, primarily operating in the
automotive sector www.turnersautogroup.co.nz

Company Announcement
29 May 2018
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 Period12 months to 31 March 2018
Previous Reporting Period12 months to 31 March 2017
Revenue from ordinary activities32% increase
Expenses from ordinary activities32% increase
Profit before tax26% increase
Taxation expense10% increase
Net profit attributable to security holders33% increase
Final DividendAmount per securityImputed amount per
security
Record Date
Dividend Payment Date
Comments:
31,133
(7,773)
23,360
$0.0500$0.0194
3 July 2018
18 July 2018
(299,337)
TURNERS AUTOMOTIVE GROUP LIMITED
Results for announcement to the market
Amount (NZD000s)Percentage change
330,470
1

TURNERS AUTOMOTIVE GROUP LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 March 2018
20182017
$’000$’000
Revenue from continuing operations
325,047249,338
Other income
5,4231,671
Cost of goods sold(137,332)(116,997)
Interest expense(14,344)(11,350)
Movement in impairment provisions
(6,380)(2,026)
Subcontracted services expense(10,777)(8,520)
Employee benefits (short term)(51,911)(40,862)
Commission(12,107)(7,446)
Advertising expense(4,001)(3,431)
Depreciation and amortisation expense(5,627)(2,863)
Property and related expenses(10,644)(9,391)
Systems maintenance(1,822)(1,468)
Claims(32,021)(6,491)
Life fund movement(82)(1,056)
Credit legal fee service expense(844)(838)
Other expenses(11,445)(13,639)
Profit/(loss) before taxation31,13324,631
Taxation (expense)/ benefit(7,773)(7,057)
Profit for the year23,36017,574
Other comprehensive income for the year (which may
subsequently be reclassified to profit/loss), net of tax
Cash flow hedges(170)41
Foreign currency translation differences2(6)
Total comprehensive income for the year23,19217,609
Earnings per share (cents per share)
Basic earnings per share 29.325.5
Diluted earnings per share 28.925.0
Included in other income is $1.4 million (2017: $1.2 million) resulting from unrealised gains on the revaluation of assets.
2

TURNERS AUTOMOTIVE GROUP LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 March 2018
ShareShare Translation Cash flow Retained
capital optionsreservereserve earnings Total
$’000$’000$’000$’000$’000 $’000
Balance at 31 March 2016136,127-(17)(35)(6,263) 129,812
Transactions with shareholders in their capacity as
owners
Capital contributions (net of issue costs)32,682---- 32,682
Fair value options issued-208---208
Dividend paid----(8,595) (8,595)
Total transactions with shareholders32,682208--(8,595) 24,295
Comprehensive income
Profit----17,574 17,574
Foreign currency translation differences
--(6)--
(6)
Cash flow hedge
---41-
41
Total comprehensive income for the year, net of tax--(6)4117,574 17,609
Balance at 31 March 2017168,809208(23)62,716 171,716
Transactions with shareholders in their capacity as
owners
Capital contributions (net of issue costs)30,339---- 30,339
Fair value options issued-493---493
Dividend paid---- (11,417) (11,417)
Total transactions with shareholders30,339493-- (11,417) 19,415
Comprehensive income
Profit--
-
-23,360 23,360
Foreign currency translation differences
--2--
2
Cash flow hedge
---(170)-
(170)
Total comprehensive income for the year, net of tax--2(170)23,360 23,192
Balance at 31 March 2018199,148701(21)(164)14,659 214,323
3

TURNERS AUTOMOTIVE GROUP LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 March 2018
20182017
Note$’000$’000
Assets
Cash and cash equivalents125,14569,069
Financial assets at fair value through profit or loss153,37810,320
Trade receivables13,42312,663
Inventories38,59644,642
Finance receivables289,799207,143
Derivative financial instruments-88
Other receivables and deferred expenses9,9008,489
Reverse annuity mortgages9,9979,222
Investment property4,8204,000
Property, plant and equipment35,94518,909
Intangible assets170,982172,088
Total assets651,985556,633
Liabilities
Other payables35,19528,091
Financial liability at fair value through profit or loss2267,611
Deferred revenue5,5065,624
Tax payables5,0291,808
Derivative financial instruments111-
Deferred tax18,46620,173
Borrowings317,373265,889
Life investment contract liabilities7,12712,847
Insurance contract liabilities48,62942,874
Total liabilities437,662384,917
Shareholders’ equity
Share capital199,148168,809
Other reserves516191
Retained earnings14,6592,716
Total shareholders’ equity214,323171,716
Total shareholders’ equity and liabilities651,985556,633
Total assets per share ($ per share)7.69 7.47
Net tangible asset per share ($ per share)0.730.27
Note 1
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 and term deposits, disclosed in financial
assets thorough the profit or loss, held in the insurance business may not be a available for use by the wider Group. DPL
Insurance's cash and cash equivalents at 31 March 2018 were $9.2m (2017: $55.6m) and term deposits at 31 March 2018
were $42.5m (2017: $nil).
Cash and cash equivalents at 31 March 2018 of $4.9m (2017: $2.1m) belong to the Turners Marque Trust 1 are not available
to the Group.
4

TURNERS AUTOMOTIVE GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 March 2018
20182017
$’000$’000
Cash flows from operating activities
Interest received
41,92527,909
Receipts from customers
281,031216,948
Interest paid
(9,609)(8,237)
Payment to suppliers and employees
(265,806)(216,489)
Income tax paid(6,142)(5,044)
Net cash inflow from operating activities before changes in
operating assets and liabilities
41,39915,087
Net increase in finance receivables
(75,248)(36,403)
Net decrease in reverse annuity mortgages
661,246
Net decrease of financial assets at fair value through profit or loss
(41,937)9,156
Net (withdrawals)/contributions from life investment contracts
(5,765)(2,645)
Changes in operating assets and liabilities arising from cash
flow movements
(122,884)(28,646)
Net cash (outflow)/inflow from operating activities
(81,485)(13,559)
Cash flows from investing activities
Proceeds from sale of property, plant, equipment, intangibles and held for sale assets
3,944340
Purchase of property, plant, equipment and intangibles
(22,698)(8,401)
Purchase of subsidiaries and investments
(3,754)(63,346)
Net cash inflow/(outflow) from investing activities
(22,508)(71,407)
Cash flows from financing activities
Net bank loan advances/(repayments)39,00582,288
Proceeds from the issue of shares29,65613,374
Proceeds from the issue of bonds-19,784
Other borrowings2,837-
Dividend paid(11,417)(8,595)
Net cash inflow/(outflow) from financing activities60,081106,851
Net movement in cash and cash equivalents(43,912)21,885
Add opening cash and cash equivalents69,06913,810
Cash included with purchase of subsidiaries-33,378
Translation difference(12)(4)
Closing cash and cash equivalents25,14569,069
Represented By:
Cash at bank25,14569,069
Closing cash and cash equivalents25,14569,069
5

TURNERS AUTOMOTIVE LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONT)
For the year ended 31 March 2018
RECONCILIATION OF NET SURPLUS WITH CASH FLOWS FROM OPERATING ACTIVITIES
20182017
$’000$’000
Profit or loss
23,36017,574
Adjustment for non-cash items
Impairment charge on finance receivables, reverse annuity
mortgages and other receivables
6,3902,026
Net (profit)/loss on sale of property, plant and equipment
(1,000)(84)
Depreciation and amortisation
5,6272,863
Capitalised reverse annuity mortgage interest
(869)(885)
Deferred revenues
9174,678
Financial assets at fair value through profit and loss
(1,139)(1,012)
Net annuity and premium change to policyholder accounts
45(137)
Non-cash long term employee benefits
516179
Non-cash adjustment to finance receivables effective interest rates
10983
Deferred expenses
(7,135)(3,901)
Fair value adjustment on investment property
(820)(500)
Fair value adjustment to contingent consideration
(2,845)-
Adjustment for movements in working capital
Net (increase)/decrease in receivables and pre-payments
1,009(6,518)
Net (increase)/decrease in inventories
5,958(3,585)
Net increase in current tax payable
1,8812,159
Net increase/(decrease) in payables
9,7612,071
Net increase in finance receivables
(75,248)(36,403)
Net decrease in reverse annuity mortgages
661,246
Net decrease of insurance assets at fair value through profit or loss
(41,937)9,156
Net (withdrawals)/contributions from life investment contracts(5,765)(2,645)
Net increase in deferred tax
(366)76
Net cash inflow/(outflow) from operating activities(81,485)(13,559)
6

TURNERS AUTOMOTIVE GROUP LIMITED
SEGMENTAL INFORMATION
For the year ended 31 March 2018
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.
OPERATING SEGMENTS
Revenue
Revenue Revenue
TotalInter-fromTotalInter-from
segmentsegmentexternalsegmentsegmentexternal
revenue
revenue
customersrevenue
revenue
customers
2018
2018
2018201720172017
$’000$’000$’000$’000$’000$’000
Automotive retail226,434(3,222)223,212193,472(783)192,689
Finance39,747-39,74726,818-26,818
Collection services - New Zealand13,075(3,886)9,18913,127(3,804)9,323
Collection services - Australia9,488-9,4889,783-9,783
Insurance46,923-46,92312,255-12,255
Corporate & other1,911-1,911466(325)141
337,578(7,108)330,470255,921(4,912)251,009
Operating profit20182017
$’000$’000
Automotive retail16,55015,397
Finance11,73510,156
Collection services - New Zealand5,8456,006
Collection services - Australia224239
Insurance5,731928
Corporate & other
(8,952)(8,095)
Profit/(loss) before taxation
31,13324,631
Income tax
(7,773)(7,057)
Net profit attributable to shareholders23,36017,574
Management has determined the operating segments based on the components of Turners Automotive Group Limited and its subsidiaries
(the Group) that engage in business activities, which have discrete financial information available and whose operating results are regularly
reviewed by the Group's chief operating decision maker. The chief operating decision maker has been identified as the Board of Directors.
The Board of Directors makes decisions about how resources are allocated to the segments and assesses their performance.
Geographically the Group's business activities are located in New Zealand and Australia.
No businesses were acquired in the financial year ending 31 March 2018. During the financial year ending 31 March 2017, the Group
acquired the business of Buy Right Cars and Autosure. Buy Right Cars has been aggregated into the 'Automotive retail' segment as Buy
Right Cars, together with Turners Group NZ Limited, operate in the automotive sector remarketing motor vehicles and other related activity.
Autosure has been aggregated into the 'Insurance segment' as Autosure, together with DPL Insurance, operate in the insurance market,
marketing and administering consumer insurance products and other related activity.
7

TURNERS AUTOMOTIVE GROUP LIMITED
SEGMENTAL INFORMATION (CONT)
For the year ended 31 March 2018
2018
2017
2018201720182017
$’000$’000$’000$’000$’000$’000
Automotive retail9,3117,590(4,767)(3,753)(2,351)(2,286)
Finance34,43222,907(5,829)(3,648)(348)(329)
Collection services - New Zealand1213--(91)(92)
Collection services - Australia----(2)-
Insurance1,997875--(681)(91)
Corporate & other22418(4,438)(4,274)(2,154)(65)
45,77431,803(15,034)(11,675)(5,627)(2,863)
Eliminations(690)(325)690325--
45,08431,478(14,344)(11,350)(5,627)(2,863)
Other material non-cash items
2018201720182017
$’000$’000$’000$’000
Automotive retail - impairment provisions--(423)(297)
Finance - impairment provisions--(5,929)(1,710)
Insurance - impairment provisions--(28)(16)
Corporate & Other - impairment provisions----
Collection services - New Zealand - deferred revenue4331,061--
Insurance - Reverse annuity mortgage interest869825--
Corporate & other - Reverse annuity mortgage interest-60-(3)
1,3021,946(6,380)(2,026)
Segment assets and liabilities
2018201720182017
$’000$’000$’000$’000
Automotive retail152,006134,160115,071103,821
Finance255,937174,134199,374126,528
Collection services - New Zealand27,11525,9745,7569,246
Collection services - Australia1,6651,9081,181890
Insurance124,611118,72269,46666,503
Corporate & other298,912266,40389,44379,169
860,246721,301480,291386,157
Eliminations(208,261)(164,668)(42,629)(1,240)
651,985556,633437,662384,917
Acquisition of property, plant & equipment, intangible assets and other non-current assets
2018201720182017
$’000$’000$’000$’000
Automotive retail-1,95821,5157,578
Finance--418403
Collection services - New Zealand--14082
Collection services - Australia----
Insurance-8878,384377
Corporate & Other--1061
-2,84530,4678,501
RevenueExpenses
AssetsLiabilities
Depreciation and
Interest revenueInterest expenseamortisation expense
Business combinationsOther
8

TURNERS AUTOMOTIVE GROUP LIMITED
SEGMENTAL INFORMATION (CONT)
For the year ended 31 March 2018
Automotive retail segment analysis Revenue Revenue
TotalInter-fromTotalInter-from
divisiondivisionexternaldivisiondivisionexternal
revenue
revenue
customersrevenue
revenue
customers
201820182018201720172017
$’000$’000$’000$’000$’000$’000
Auctions41,655(472)41,18338,169(272)37,897
Finance14,711(143)14,56812,700-12,700
Fleet108,047-108,04797,858-97,858
Buy Right Cars62,021(2,607)59,41444,745(511)44,234
226,434(3,222)223,212193,472(783)192,689
Operating profit20182017
$’000$’000
Auctions3,4102,442
Finance5,7244,916
Fleet4,9704,932
Buy Right Cars2,4463,107
16,55015,397
Division assets and liabilities
2018201720182017
$’000$’000$’000$’000
Auctions44,39530,38624,03813,044
Finance66,29455,50660,13350,694
Fleet14,59520,5468,37314,876
Buy Right Cars28,54929,45023,04525,724
153,833135,888115,589104,338
Eliminations(1,827)(1,728)(518)(517)
152,006134,160115,071103,821
AssetsLiabilities
9

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Notice of event affecting securities
1
Turners Automotive Group Limited
Barbara BadishDirectors' resolution
09 308 496709 308 498229052018
Ordinary sharesNZVNLE0001S1
In dollars and cents
Retained earnings
$0.050
Enter N/A if not
applicable
N/A$0.003472$0.019444
$
New Zealand Dollars
$4,240,129
Date Payable
3 July, 201818 July, 2018

---

FY18 Full Year Results Presentation
For 12 months ending 31 March 2018

FY18 Full Year Results Presentation
Turners Automotive Group - the biggest seller of cars, trucks and machinery in NZ. We finance them and
insure them for mechanical breakdown, accident and loan repayments with the best range of products
in the market.
CREDIT
MANAGEMENT
SERVICES
Controlling the buying and selling of
second hand cars, trucks and
machinery to earn a transactional
margin and delivering cross-sell
opportunities for Finance and
Insurance
Turners and Buy Right Cars combined
are the largest second hand vehicle
retailers in New Zealand
Helping customers with simple and
attractive finance and insurance
products, and building annuity
revenue streams
Turners has a portfolio of reputable
businesses offering finance and
insurance products to customers
across New Zealand, including
personal, motor vehicle loans and
insurance
Helping businesses of any size in New
Zealand and Australia with better
management of their credit
challenges
Turners has a growing presence in the
credit management sector in both
New Zealand and Australia through its
EC Credit business
FINANCE AND
INSURANCE
AUTOMOTIVE
RETAIL
TURNERS’ AN INTEGRATED AUTOMOTIVE GROUP
2

FY18 Full Year Results Presentation
THE KIWI CAR ECONOMY
61%
of people ended up spending
less than $10,000 on their car,
80% were less than $20,000
3.85m
Light vehicles in the NZ vehicle fleet
3,500
Registered dealers
in NZ
14yrs
Is the average age of used
vehicle in NZ since 2013
7,232 EVs
7,232 as at the end of March
2018, more than double its size
in March 2017.
164,000
used cars were imported
into NZ in year ended Mar
18
21 years
The average age light
vehicles were scrapped
from fleet was 22 years for
an import and 21 years for
NZ new
Source: NZTA, Ministry of Transport, MBIE, Turners Market Research Nov 17
Note 1. Dealer-to-public plus ex-overseas sales
3
153,000
New passenger and light
commercial vehicles sold into NZ
in year ended Mar 18
158,000
Vehicles de-registered in FY18

FY18 Full Year Results Presentation
FY18 OPERATING ENVIRONMENT
•Used vehicle market continuing to grow:
oUsed cars in line with previous year
oUsed trucks up 5% YOY
oDamaged and end of life up 11% YOY

•New car registrations (passenger and light
commercial) up 5.4% to 153,000 units registered end-
March 2018.

•164,000 used vehicles imported from overseas (53% of
total new registrations for FY18)

•Intense competition for originators

•Indications of a tightening credit market


4
Used vehicle transactions in NZ (including deregistered vehicles and trucks)
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
F10F11F12F13F14F15F16F17F18
Total Used Vehicle Sales
Financial Year
Car COOCar DeregsTrucks

FY18 Full Year Results Presentation
FY18 Financial
Results

FY18 Full Year Results Presentation
6
FY18 FINANCIAL HIGHLIGHTS
Continuing growth in revenue and profit
Revenue $330.5m, +32%
Net Profit Before Tax $31.1m, +26%
(Guidance NPBT $29m to $31m)
Net Profit After Tax $23.4m, +33%
NPATA $24.9m, +42%
Shareholders’ Equity $214.3m as at 31 Mar 18
Final Quarter Dividend 5.0 cps Total FY Dividend 15.5cps, +7%
Earnings Per Share 29.3cps, +15%
FY19 NPBT Guidance $34m to $36m (up 13% on mid)
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
FY14FY15FY16FY17FY18
Millions

REVENUE
0
5
10
15
20
25
30
35
FY14FY15FY16FY17FY18
Millions

NET PROFIT BEFORE TAX
NPATA – is net profit after tax and tax adjusted add back of amortised acquisition intangibles IE. Autosure portfolios
inforce and customer relationships

FY18 Full Year Results Presentation
FY17: FY18 REVENUE BRIDGE
7
•Continued improvement in retail “end-
user” sales in Turners Cars driving
growth in add-on finance and insurance
sales
•Full year impact of BRC trading
•Finance reflects growth in receivables
ledger over the last 18 months
•Insurance has a step change in revenue
as a result of Autosure transaction
$330.5m
$251.0m

FY18 Full Year Results Presentation
FY17: FY18 PROFIT BRIDGE
8
•Turners Group shows incremental improvement
across all divisions
•BRC impacted by margin compression and
dealing with aged stock issue
•Finance result improvement due to increase in
ledger up 39%
•Insurance showing step change in profits from
Autosure
•EC Credit Control showing good underlying
growth in NZ whilst Australia remains work in
progress.
•Corporate and Other costs include ASX listing
costs, acquisition amortisation and acquisition
earnings adjustments.
$31.1m
$24.6m

FY18 Full Year Results Presentation
EARNINGS PER SHARE AND DIVIDEND
Dividend Policy Change: Increase in pay out ratio of
50% to 60% of NPAT
•FY18 fully imputed quarterly dividends and fully
imputed
•Q1 @ 3.0c per share
•Q2 @ 3.0c per share
•Q3 @ 4.5c per share
•Q4 @ 5.0c per share

•FY18 full year dividend of 15.5 cents per share
(FY17: 14.5 cps imputed)

•Fully imputed dividend yield of 5.3% at current
price of $2.93
0
5
10
15
20
25
30
35
FY14FY15FY16FY17FY18
Cents per share

EARNINGS PER SHARE
Prior years adjusted for 10:1 share consolidation undertaken in FY16
9
29.3 cps

FY18 Full Year Results Presentation
BALANCE SHEET
•Cash change due to investment of $42m into
term deposit for insurance reserves. Explains
increase in Other Financial Assets
•Growth in Finance Receivables from MTF
Non recourse and OFL
•Focus on faster turn in inventory and a
reduction in aged stock has delivered
improved working capital efficiency
•$19m was invested in capital projects
primarily in updating and repositioning our
branch network
10
$m FY18 FY17
Cash and cash equivalents
25 69
Other Financial Assets
53 10
Finance Receivables
290 207
Inventory
39 45
Property, Plant and Equipment
36 19
Intangible Assets
171 172
Other Assets
38 35
TOTAL ASSETS
652 557
Borrowings
317 266
Other Payables
35 28
Deferred Tax
19 20
Insurance Contract Liabilities
49 43
Other Liabilities
18 28
TOTAL LIABILITIES
438 385

FY18 Full Year Results Presentation
FUNDING MIX
11
•$30M capital raise in Oct 17
•Convertible Bonds of $26M
mature Sept 2018.
•Growth in Securitisation
Warehouse reflects growth in
finance book and substitution
of corporate bank funding
• $140m syndication facility with
ASB and BNZ completed May
2018.
•Growth in MTF funding driven
by growth in Turners Finance.
FY18 $m % of Total FY17 $m % of Total
TOTAL ASSETS
652

557

Equity
214 33%
172 31%
Convertible bonds
26 4%
26 5%
Securitisation Funding (BNZ)
133 20%
69 12%
Bank Funding [Corporate BNZ &
ASB]
97 15%
122 22%
MTF Finance Receivables Funding
59 9%
49 9%
Insurance Contract Liabilities
49 8%
43 8%
Life Investment Contract Liabilities
7 1%
13 2%
Payables and Deferred Revenue
49 8%
43 8%
Deferred tax liability
19 3%
20 4%

Sector
Performance

FY18 Full Year Results Presentation
Auto Retail
Finance &
Insurance
Debt
Manageme
nt
FY18 REVENUE
FY18 SECTOR RESULTS
13
0
10
20
30
40
FY15FY16FY17FY18
$M
SECTOR OPERATING PROFIT
0
50
100
150
200
250
300
350
FY15FY16FY17FY18
$M
SECTOR REVENUE
Automotive RetailFinance and InsuranceDebt Management
Auto Retail
Finance &
Insurance
Debt
Manageme
nt
FY18 OP PROFIT
Automotive Retail the largest
contributor: 68% revenue and
41% Operating Profit

Annual trends reflect
acquisition and organic growth

Step up in FY18 in Auto Retail –
acquisition of Buy Right Cars;
and Insurance – acquisition of
Autosure

Balance between transactional
income from Auto Retail and
annuity income from Finance &
Insurance. Consistent returns
from Credit Management
business

FY18 Full Year Results Presentation
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY16FY17FY18
Sales by Customer Type for Turners Cars
% Sales to Wholesale% Sales to End User
AUTOMOTIVE RETAIL
Revenue $223.2m +16%, Op Profit $16.6m +8%
14
•Turners Group strong result with operating profit up 15% off
revenue growth of 10%.
•Continuing increase in fixed price sales (cf auction or tender) -
up 17% YoY with sales to end users at 70% of all car purchases
•Corresponding increase in finance contract sales (16% increase
in loans written, 15% increase in MBI policies sold)
•Percentage of ‘owned vehicles’ increased to 50% (up from 48%)
of transactions – better margins
•Expansion of physical footprint with new sites for both Cars and
Trucks & Machinery
•Recent market research confirms Turners as most trusted used
car brand in NZ
•Recently inked partnership with Auto Super Shoppes (83
workshops in NZ) for delivery of service and maintenance
products

FY18 Full Year Results Presentation
AUTO RETAIL: BUY RIGHT CARS
•Revenue growth of 34% reflecting full year of
operation, operating profit down 21%.
•Financial performance has disappointed as new
management team deals with legacy issues
•New management team in place since
November 2017
•Dealing with aged inventory issue
•Earn-out mechanism working as intended
•Closer association with Turners Auto Group
branding to be implemented
•Grown physical footprint by one branch in FY18
(Penrose). Targeting three new branches over
the next two years
15
Turners Buy Right Cars
Satisfaction 87% 88%
Likelihood to
Repurchase
71% 77%
Customer view of Buy Right Car and Turners
TRA Market Research Nov 2017
Recent brand research reflects positively on quality
customer experience that Buy Right Cars provides

FY18 Full Year Results Presentation
AUTO RETAIL: PROPERTY OPPORTUNITY
•Property reconfiguration to drive improved retail
experience for further growth
•Used vehicle business creates opportunity to be
innovative in location and configuration eg container
offices
•Purchasing either brown fields or bare land with
straight forward developments with customised lease
•Sale and lease back provides profit opportunity to
capitalise on “Turners” brand as a tenant
•Five years of property opportunities ahead including
large projects in Auckland and Christchurch
•Completed 2 major projects value $16M during FY18
(Porirua Turners Cars and Wiri Trucks and Machinery)

16
Wellington bound container offices in Chinese manufacturer
Concept design for Cambridge Terrace site in Wellington

FY18 Full Year Results Presentation
FINANCE
Revenue $39.7m +48%, Op Profit $11.7m +16%
17
•Finance receivables growth has continued, up 40% to $290m
from March 2017
•Continued enhancements of online loan approval platform
AutoApp (insurance integration key deliverable)
•Continue to tighten credit criteria to position the business for
any change in the credit cycle
•Captive channel lending IE Turners Cars and BRC delivers higher
quality loans (more control)
•Integration and consolidation of finance brands into single
entity is complete
290
207
48
24
10
150
170
190
210
230
250
270
290
310
FY17MTF
Increase
OFL
Increase
TF IncreaseFY18
Millions

FY18 LOAN BOOK GROWTH
MTF – Motor Trade Finance
OFL – Oxford Finance Limited
TF – Turners Finance

FY18 Full Year Results Presentation
FINANCE DRILL DOWN
18
86%
9%
5%
FY18 TOTAL LENDING BY ASSET CLASS
Motor Vehicle
Other
Commercial Vehicle
•Total instalment arrears tracking at 2.0% (1.0% at end-
March 2017)
•Arrears deterioration most noticeable in MTF – Non
Recourse (NR) book. An overhaul of the credit criteria and
on boarding process has resulted in lower loan volumes
but higher quality new lending.
1.7%
0.1%
0.1%
2.1%
0.2%
2.4%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
OFLTFMTF-NR
Consumer Instalment Arrears by Finance Book
FY17FY18
9.2%
9.4%
9.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
11.0%
FY16FY17FY18
Net Interest Margin

FY18 Full Year Results Presentation
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
100000
-
5
10
15
20
25
30
35
40
45
FY13FY14FY15FY16FY17FY18
Number of New Policies

$Millions Gross Written Premium

Policy and Gross Written Premium Growth in
Insurance
INSURANCE
Revenue $46.9m +283%, Op Profit $5.7m, +518%
19
•Autosure acquisition creates step change in scale of
insurance business in FY18
•Consolidation of insurance brands into single entity
•Use of data analytics to re-price risk
•GEP at 4% above budget for Y18
•15% increase in policies sold through Turners captive
channels to 8,500 policies.
•Loss ratios at 70% tracking 3% above budget, implementing
initiatives to reduce to below 68% for FY19
•Identified opportunity to allocate a proportion of insurance
reserves to support auto retail property expansion

FY18 Full Year Results Presentation
CREDIT MANAGEMENT
Revenue $18.7m, Op Profit $6.1m – in line with FY17
20
•Solid and consistent performer, delivering good cashflow and profitable
returns
•Continue to increase debt load from key NZ corporate accounts at
expense of competitors
•Still big opportunity in Australian corporate market (under penetrated)
•Strong Terms of Trade product sales in NZ up 20% v FY17
•Auto Dialler technology performing well and creating significant lift in
productivity
•Early stages of a strategic partnership established with IODM, an
Australian based online automated accounts receivable solution
provider, 23 clients subscriptions signed up at end of Mar 18
•Result includes $0.4m unredeemed voucher release ($1.1M FY17)

FY18 Full Year Results Presentation
Opportunities and
Strategic Focus

FY18 Full Year Results Presentation

STRATEGIC IMPERATIVES
CUSTOMER FIRST:
•Keep developing ‘Customer First’ culture across
all businesses
•Improve the quality of customer experience –
both in-person and online

QUALITY LENDING:
•Continue transition to higher quality, more
profitable lending

UTILISE WEALTH OF DATA:
•Access and drive value from the wealth of data
in the business to engage with our customers,
and deliver better service

LEVERAGE OUR UNIQUE AUTOMOTIVE ECO-
SYSTEM TO MEET OF OUR CUSTOMERS NEEDS

22
Ollie - star of the Turners’ TVCs

FY18 Full Year Results Presentation

KEY FOCUS FOR FY19
•AUTO RETAIL – Customer experience (people and
property), redirect Finance into OFL, leverage trucks
and machinery network

•FINANCE – redirect finance from Turners into OFL,
Customer experience quicker and easier through
smart data analytics, re-position to higher quality
lending

•INSURANCE –continue pricing for risk, procurement
/ cost out initiatives, replace dealer retail selling
system,

•CREDIT MANAGEMENT - customer acquisition
Australia, implement collections scorecard, target
higher debt load from existing customers
23
Turners Trucks and Machinery Tauranga

FY18 Full Year Results Presentation
OUTLOOK
•Used car market is resilient, less discretionary than new
•A large aging vehicle fleet that needs to be replaced
•80% of people purchasing vehicles under $20k
•High trust position in the “Turners” brand
24
FY19 NPBT guidance $34 million to $36 million

Questions

FY18 Full Year Results Presentation
Contact:

Todd Hunter
CEO Turners Limited
T: 64 21 722 818
E: todd.hunter@turners.co.nz
26

FY18 Full Year Results Presentation
Appendix

FY18 Full Year Results Presentation
EXAMPLES OF TURNERS ECOSYSTEM
Nina is looking
to upgrade her
current 7 year
old car, finds a
late model ex-
rental at Buy
Right Cars
Purchase
Disposal
Finance
Insurance Service &
Maintenance
Research
Trademe.co.nz
Turners.co.nz
Buyrightcars.co.nz
End of Life
Liz is looking for
a larger car to
run the kids
around
Purchase
Disposal
Finance
Insurance Service &
Maintenance
Research
End of Life
Trademe.co.nz
Turners.co.nz

FY18 Full Year Results Presentation
EXAMPLES OF TURNERS ECOSYSTEM
Purchase
Disposal
Finance
Insurance Service &
Maintenance
Research
Trademe.co.nz
End of Life
Tim is looking
for a used
import on
TradeMe and
finds the perfect
car through a
dealer in
Rotorua
Buys from
dealer in
Rotorua
Trades in old
car through
dealer
Tim’s “trade in” is purchased through Turners wholesale
division and sold to wreckers (it is at the end of its life)
through Turners Damaged and End of Life Division
Takes out finance and insurance
at time of purchase

FY18 Full Year Results Presentation
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 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 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.

30