TRA Annual Meeting Presentation

2018 Annual Meeting Presentation
Turners Automotive Group Limited
2018 Annual Meeting

2018 Annual Meeting Presentation
OUR OPPORTUNITY: THE NZ AUTOMOTIVE SECTOR
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
9,000+ EVs
9,752 as at the end of August 2018,
more than double its size from
August 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
2
153,000
New passenger and light
commercial vehicles sold into NZ
in year ended Mar 18
158,000
Vehicles de-registered in FY18

2018 Annual Meeting Presentation
FY18: NET PROFIT AFTER TAX UP 33%
GROUP REVENUE Up 32% to $330.5m
3
0
50
100
150
200
250
300
350
FY14FY15FY16FY17FY18
$Millions

REVENUE
0
5
10
15
20
25
FY14FY15FY16FY17FY18
$Millions

NET PROFIT AFTER TAX
NPAT Up 33% to $23.4m

2018 Annual Meeting Presentation
FY18: FULL YEAR DIVIDEND UP 7% TO 15.5 CPS
FULL YEAR DIVIDENDS Up 7%
15.5 cents per share

4
0
2
4
6
8
10
12
14
16
18
FY14FY15FY16FY17FY18
Cents Per Share

DIVIDEND
0
5
10
15
20
25
30
35
FY14FY15FY16FY17FY18
Cents per share

EARNINGS PER SHARE
EARNINGS PER SHARE up 15% to 29.3cps

2018 Annual Meeting Presentation
SHARE PRICE IS UNDERVALUED
•Share price undervalued on core metrics

•Board and management continue to invest personally

•Feedback centres around three core themes
-Complexity of Turners business and strategy
-Concern about the tightening credit cycle
-Negative sentiment from last year’s capital raise

•Strategy remains growth focused across our
automotive and related financial services group

•No current plans to raise further equity

5
Analyst A Analyst B
12 month target
share price ($)
3.29 3.35
Forecasted FY19
NPBT ($m)
34.1 35.0

DIVERSIFIED FUNDING
ENABLING GROWTH
•$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.
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Bank
18%
Securitisati
on
25%
[CATEGOR
Y NAME]
[PERCENTA
GE]
MTF
11%
Other
1%
Equity
40%
FY18 Borrowings by Source

2018 Annual Meeting Presentation
TURNERS’ AN
INTEGRATED
AUTOMOTIVE GROUP
•Turners is 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.
•We also operate in the Debt
Management sector, leveraging
off our expertise in the finance
market.
I NEED TO FINANCE
AND INSURE MY
VEHICLE
I NEED TO REPAIR
AND SERVICE MY
VEHICLE
I NEED TO
SELL MY
VEHICLE
I NEED TO BUY A
VEHICLE

2018 Annual Meeting Presentation
Todd Hunter
Chief Executive Officer

2018 Annual Meeting Presentation
FY18 YEAR AT A GLANCE
•Integrated Buy Right Cars into the group
•Integrated three separate finance operating entities into single
entity under the Oxford Finance brand
•Successfully merged existing insurance business into the newly
acquired Autosure Insurance business
•Changed name to Turners Automotive Group Limited and dual listed
on the ASX
•Completed $30 million capital raising, to support growth initiatives
•Expanded property footprint with opening of four new retail sites
for Cars and Trucks & Machinery
•Acquired new sites for retail development in Auckland, Wellington
and Whangarei
•Banking syndication finalised with ASB and BNZ (post balance date
May 2018)
9
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
FY14FY15FY16FY17FY18
Millions

REVENUE
0
10
20
30
40
FY14FY15FY16FY17FY18
Millions

NET PROFIT BEFORE TAX

2018 Annual Meeting Presentation
Auto Retail
Finance &
Insurance
Debt
Manageme
nt
FY18 REVENUE
FY18 SECTOR RESULTS
10
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

2018 Annual Meeting 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


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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

2018 Annual Meeting Presentation

STRATEGIC IMPERATIVES FOR FY19
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

12
Ollie - star of the Turners’ TVCs

2018 Annual Meeting Presentation
AUTOMOTIVE
RETAIL
FY19 KEY FOCUS AREAS
•Optimise for retail customers
•Deliver a better customer
experience in-store and online
•Investment in property and
recruitment, training and
development
•Redirection of Turners Finance
loans into Oxford Finance in 2H19
13

2018 Annual Meeting Presentation
AUTO RETAIL - PROGRESS ON KEY INITIATIVES
14
•Introduced Net Promoter Score measure
•63% promoters, 25% passive, 12% detractors so far
Online and digital experience
•Web traffic to www.turners.co.nz up 8.5% Aug YTD to 1.15
million users, NZ’s second most popular auto website
•All Turners branches directing finance into OFL as at beginning
of Sept.
•Expect $4m+ per month from September
Customer focused
Redirect Turners Finance into
Oxford
Auto servicing pilot Auto servicing pilot
•Pilot of selling Auto Super Shoppe service plans started

2018 Annual Meeting Presentation
Wellington
Turners Cars x 2
Christchurch
Palmerston North
Napier
Gisborne
Tauranga
Auckland
Hamilton
New Plymouth
Greymouth
Dunedin
Invercargill
AUCKLAND
Turners Cars x 2
Buy Right Cars x 10
Whangarei
AUTO RETAIL: PIPELINE OF PROPERTY OPPORTUNITY
PROPERTY ACTIVITY 2018 TO DATE
Porirua – Turners Cars branch relocated from Seaview
Whangarei – land acquired in high retail zone, existing
branch to be relocated in Jan 2019
North Shore – land acquired in Wairau Valley to relocate
Turners Albany branch
New Plymouth – acquired lease for new Turners branch.
This is a new regional market for the business.
Wellington City– second Turners branch in Wellington due
to open in 2H18
Napier – extension and redevelopment of existing Turners
site
Penrose – new Buy Right cars site
Hamilton – Opening of Buy Right Cars site. First expansion
outside of Auckland
TOTAL NETWORK as at 20 Sept 18
13 Turners Cars sites
11 Buy Right Cars sites
8 Trucks & Machinery
4 Damaged and Commercial sites

2018 Annual Meeting Presentation
FINANCE AND
INSURANCE
FY19 KEY FOCUS AREAS
•Streamline the customer experience
by making it quicker and easier
•Use data analytics and automated
services to make better lending
decisions
•Continue to re-position finance
ledgers towards higher quality lending
•Continued focus on insurance ‘pricing
for risk’ with data analytics as a key
enabler
•Implement replacement dealer retail
selling system, tightly integrated in
finance origination system AutoApp
16

2018 Annual Meeting Presentation
FINANCE AND INSURANCE - PROGRESS ON KEY INITIATIVES
17
•Electronic ID and address verification added, 100 new dealers
on-boarded
Loan origination platform enhancements
Improve lending quality by tightening
credit criteria
Risk pricing work in Insurance
•Re-pricing high risk vehicles has impacted 100% of originators,
with further targeted pricing work for high risk originators (15%)
Replacement of Insurance retail
selling system
•Project initiated and progressing well.
422
437
455
450
495
429
437
465
508
Apr16-Sep16Oct16-Mar17Apr17-Sep17Oct17-Mar18Apr18-Aug18
OFL Average VedaMTF Average Veda

2018 Annual Meeting Presentation
CREDIT MANAGEMENT
FY19 KEY FOCUS AREAS:
•Investing in sales resource in Australia to build our
corporate debt base
•Attract and load higher quality debt
•Use technology to improve efficiencies
•Use data to improve results for customers eg Collections
Scorecard
•Integrate with Xero and MYOB
18

2018 Annual Meeting Presentation
CREDIT MANAGEMENT - PROGRESS ON KEY INITIATIVES
19
•Corporate debt load up 13% Aug YTD
•Key wins in NZ - Contact Energy and QBE Insurance new clients, ACC
renewed for 3 years, increase in debt load from banking clients
•New BDM hired in key Australian market of Melbourne
SME product sales
•Terms of Trade, HR and Credit reporting up 15% YTD
•Developed and in production being used to prioritise actions
with debtors.
Corporate debt load
Collections Scorecard
Technology and efficiency
•Implemented dialler
•Sept YTD outbound calls, SMS, and emails up 95% year on year

2018 Annual Meeting Presentation
OUTLOOK
•On track for FY19 guidance of NPBT $34 million to $36 million
•Challenging Q1, but much improved Q2
•Investments in people and property to deliver in H2
•Focus on organic growth
•Confidence in guidance and long term growth prospects of the business
20
FY19 NPBT guidance $34 million to $36 million

2018 Annual Meeting Presentation
SHAREHOLDER DISCUSSION

2018 Annual Meeting Presentation
RESOLUTIONS
•RESOLUTION 1: That Staples Rodway be reappointed as auditors of the Company and that the
Directors be authorised to fix the auditors’ remuneration.
•RESOLUTION 2: That Martin Berry, who was appointed by the Board as a Director on 17 August
2018 and retires from office at the annual meeting, be elected as a Director of the Company.
•RESOLUTION 3: That Antony Vriens, who retires by rotation and has offered himself for re-
election, be re-elected as a Director of the Company.
•RESOLUTION 4: That Paul Byrnes, who retires by rotation and has offered himself for re-election,
be re-elected as a Director of the Company.
•RESOLUTION 5: That the pool for Directors’ fees be increased by $225,000 from $440,000 to
$665,000 per financial year, with effect for the financial year commencing 1 April 2018.
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2018 Annual Meeting Presentation
VOTING
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Resolution FOR AGAINST PROXY
DISCRETION
Auditor’s remuneration 35,526,170 6,492 534,084
Election of Martin Berry 35,419,004 39,342 587,140
Re-election of Antony Vriens 35,475,741 27,101 537,140
Re-election of Paul Byrnes 35,490,679 61,677 495,179
Increase in Directors’ remuneration pool 28,180,683 1,591,353 265,765
Total proxies received in respect of 36,071,218 shares representing 42.5% of total shares on
issue.

Voting on each resolution will be by way of poll.

2018 Annual Meeting Presentation
OTHER BUSINESS

CLOSE OF
MEETING
CONTACT
Todd Hunter
CEO Turners Limited
T: 64 21 722 818
E: todd.hunter@turners.co.nz

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2018 Annual Meeting 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.

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