TRA – Letter to Shareholders

Dear Shareholder
T
he 2019 financial year has started well and we are
making good progress on our business objectives.
It was great to meet a number of our shareholders
on our inaugural Retail Shareholder Roadshow and be
able to share more details around our business and our
aspirations. Feedback was very positive and we intend
to include this as a regular part of our investor relations
programme.
Last year was about integrating our businesses after a
period of sustained growth and expansion, simplifying our
brands and developing common operating and funding
platforms. The building blocks are now in place and this
year we are focused on growing our market share across
all the sectors we operate in. While we will still consider
mergers and acquisitions where they make strategic sense,
the majority of our short to medium term growth will come
from within the group.
In line with this, we have been investing into expanding our
retail network, opening new branches, and relocating and
refurbishing existing branches to ensure we offer the best
possible retail experience.
Organic growth is coming from our Damaged and End of
Life offer, and as we have signed another agreement with
a large insurance brand to dispose of damaged and end of
life vehicles on their behalf.
We are also building our share of the finance market and
are focused on higher quality lending. Impairment levels for
MTF recourse loans have been higher than anticipated and
we have introduced stricter lending criteria. While this has
seen the volume of loans drop off, we expect to see quality
improve and will continue to monitor this carefully.
In another move, since September 2018, all loans
originating through Turners Cars are now being directed
into Oxford Finance. This will see circa $4 million a month
redirected away from MTF to Oxford, with the benefit to the
wider group meaning more margin and an increase in fee
revenue.
Quality is also an important focus for our insurance
business and we are currently undertaking a review to
identify further opportunities for claims efficiencies. We
believe we can reduce the cost of our insurance operations
through the use of fintech and are integrating our insurance
products into our AutoApp digital finance selling platform.
This will make it easier for dealers to transact both
insurance and finance products through the one system.
Having a strong funding portfolio in place is an essential
part of our business. The banking syndication finalised
in May is providing more headroom for business growth,
particularly for our finance book. We have also recently
announced a fully subscribed $25 million, three year bond
offer to replace the existing programme which matured
at the end of September. Pleasingly, 50% of existing
bondholders opted to convert their proceeds into shares in
Turners, reflecting their confidence in our growth strategy.
Todd Hunter
Chief Executive Officer
Turners Automotive Group
October 2018
Welcome to the second edition of our new Shareholder Newsletter. This October issue includes news and
stories from each of our business divisions, as well as an introduction to our new Director and the head of our
EC Credit Control business.
CEO UPDATE

2
COMPANY HAPPENINGS
INAUGURAL SHAREHOLDER ROADSHOW
During July 2018, we had the pleasure of meeting
many of our shareholders as we undertook our first
Retail Shareholder Roadshow. Following requests, we
expanded the original seven locations to nine city centres.
Shareholders were invited along to the local Turners’ branch
to meet CEO Todd Hunter, CFO Aaron Saunders and other
management. It provided an opportunity to share more
about the Turners’ eco-system and wider New Zealand car
market, our strategies to grow each part of our business and
the results and highlights from the 2018 financial year. The
turnout was great and we had many interesting and valued
discussions with our shareholders. Given its success, the
Roadshow will now be a regular part of our annual Investor
Relations calendar.
CONVERSION OF BONDS & NEW BOND OFFER
Bonds remain an important part of our funding portfolio,
providing additional debt capacity to fund future business
opportunities and offer some diversity to our bank
arrangements. The existing convertible bond programme
matured at the end of September and bondholders had
the option of converting these into fully paid shares or
redeeming them for cash. Pleasingly, bondholders have
elected to convert 50% of bonds into shares. This reflects
the market confidence in the group’s strategy, further
strengthens Turners’ capital position and will support
growth initiatives across the Group.
Turners has announced a new $25 million, three year
bond offer which has been fully subscribed (read
announcement here). Given Turners has recently raised
equity, the company chose to offer secured subordinated
bonds, with substantially similar features to TRAHB bonds,
but no equity conversion option and a longer term(3 years).
Pleasingly 81% of the monies received were from new
bondholders.

TURNERS DECLARES HIGHER
QUARTERLY DIVIDEND
The Board has declared the first quarterly dividend for the
2019 financial year of 4 cents per share, fully imputed, with
a record date of 23 October 2018 and a payment date of 30
October 2018.
In addition, the Board has advised that it expects to declare
a further two quarterly fully imputed dividends of 4 cents
per share in January and April 2019, followed by a fully
imputed final dividend of 5 cents per share in July 2019.
Chairman Grant Baker said: “We are targeting a minimum
FY19 full year dividend of 17 cents per share (up 10%
on FY18). Based on a share price of around $2.90, this
represents an annualised yield of 5.9% fully imputed.”
This dividend payment profile is consistent with the
Company’s policy of paying dividends totaling 50% to
60% of Net Profit After Tax to shareholders and enables
the company to balance the twin objectives of providing
consistent dividend returns to shareholders and ensuring
sufficient profits are re-invested in the business”.
Projected Dividends (fully imputed)
October 2018, December 2018, April 2019 4.0 cps
July 2019 5.0 cps
Total Projected Dividends for FY19 17.0 cps
INTRODUCING:
NEW DIRECTOR,
MARTIN BERRY
Having Directors with relevant industry,
commercial and governance skills is essential for
the continuing success of the Turners group. Diversity
of thought and experience is also taken into consideration by
the Board when reviewing Board membership.
We currently have Directors with hands on experience in the
finance, insurance and debt management sectors, as wellas
Directors with expertise in governance, sales and marketing
and international markets. We have high ambitions for our
company and believe that an entrepreneurial mindset is
important to achieve our aspirations and add value for
shareholders.
The latest addition to the Turners’ Board is Martin Berry,
a seasoned global financial services executive and
entrepreneur. Martin has run large international businesses
for the likes of ANZ, Citibank, Barclays and Standard Chartered,
and more recently has focused on entrepreneurial ventures.
He has a successful track record of having built, acquired and
sold several companies with values in excess of US$100m. He
later founded and now runs venture capital firm Brandhaus
Capital Partners out of Singapore, investing across the region
with a strong focus on fintech.
Martin’s experience in the financial services sector, combined
with his entrepreneurial acumen, will be a real asset to the
group. He has a strong focus on technology and new
opportunities and access to networks and opportunities
throughout the Pacific and Asian region.
Martin’s appointment was confirmed at the recent Annual
Shareholders Meeting.

TURNERS AUTOMOTIVE GROUP SHAREHOLDER NEWS
3
EXPANDING OUR RETAIL FOOTPRINT
AUTOMOTIVE RETAIL
While the number of customers researching and buying
online is growing, the majority of buyers still prefer the
“in-person” experience. Being able to view different cars on
offer, take them for a test drive and buy in-person remains
the preference for most people. Ensuring we have retail
sites in strategic locations across the country is a significant
advantage for our business and will be a key enabler of
growth moving forward.
We currently have 13 Turners Cars sites and 11 Buy Right
sites and are investing into new sites, relocations and
refurbishments to ensure we are in the right places and can
offer the best possible retail experience. Having our own
retail network also opens up additional opportunities for
profit contribution from the sale of finance and insurance
products.
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
to open in this new regional market for the business, in
the second half of 2018.
• Wellington City – second Turners branch in Wellington
due to open in 2018.
• 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.
Buy Right Cars has opened
its first branch outside of
Auckland, in Hamilton, right
across the road from the mega
mall The Base. The new site
is small, but that’s temporary
until the new 5,000m2 site
opens just down the road.
From left: Trevor Jans - Branch Manager
and Lucas Roslin - Group Sales Manager.
Whangarei
Hamilton
Tauranga
Napier
Wellington x2
Palmerston North
Christchurch
Dunedin
Invercargill
Auckland
Turners Cars x 2
Buy Right Cars x 10
New Plymouth

4
BUILDING OUR SHARE OF THE END OF LIFE VEHICLE MARKET
Hot on the heels of the
long term agreement
with Suncorp Insurance,
Turners has signed a
three year commercial
agreement with Tower
Insurance. Turners are now managing the logistics and
sale of damaged vehicles that have been written off by the
Tower insurance brand.
While only a small part of our business, the potential in this
sector of the market is significant. Not only can we sell older
and damaged cars at the end of their life, but we can also
help customers find newer used vehicles to replace them.
Over 156,000 vehicles were written off or removed from the
road in New Zealand in the past year and with almost 30%
of New Zealand’s 3.7 million light vehicle fleet being 20
years old or more, the number of vehicles being scrapped is
accelerating.
As one of New Zealand’s leading insurers, Tower has a
significant number of vehicles that are written off each year
that will now be sold through Turners’ Damaged and End of
Life vehicle auctions.
“Selling written-off vehicles through the
Turners partnership will allow us to reduce
claims costs, which ultimately means we can
pass these savings on to our customers.”
Glenys Talivai
Tower’s GM Customer Acquisition, Retention and Claims

TURNERS AUTOMOTIVE GROUP SHAREHOLDER NEWS
5
INSURANCE RATING
REAFFIRMED AS B+
The Reserve Bank of New Zealand requires all
insurance companies to undertake an independent
credit and insurance rating as part of the
requirements for holding an insurance license.
In line with this, A.M. Best, the world’s oldest and
most authoritative insurance rating and information
source, has recently affirmed Turners’ insurance
division rating with a Financial Strength Rating of
B+ (Good) and the Long-Term Issuer Credit Rating
of “bbb-”. The outlook of these Credit Ratings
(ratings) is stable.
This is a strong rating and we are pleased to have
it confirmed by A.M Best. They have also said that,
in FY19, they expect Turners’ insurance business
to exhibit lower expense ratios, as it benefits from
economies of scale and a greater premium base to
spread fixed costs over following the acquisition.
Going forward, stronger underwriting performance
is expected to drive a greater balance of earnings. It
has also said that the insurance division’s ownership
and affiliation with parent, Turners Automotive
Group Limited, which is the largest retailer of motor
vehicles in New Zealand, provides good access
to business and creates a valuable distribution
network.
FINANCE AND INSURANCE
More than 80% of our finance and
insurance business comes from our
network of referrers – car dealers and
insurance brokers who refer customers
to Oxford Finance and Autosure
Insurance during the vehicle purchase
process.
This is a very important customer group for
us and earlier this year, we initiated a Dealer
Share Scheme, with Turners’ shares issued to our
largest and most loyal referrers. Incentives like
this create a strong sense of ownership from the
dealer channel and it is also a unique offer from a
competitive position.
DEALER LOYALTY
REWARDED WITH
SHARE SCHEME
Dealer Share Scheme 102018
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As a valued and trusted partner, we would like to invite you to become
part of our Dealer Share Scheme.
This is a great opportunity for you to participate in the potential dividend flow and capital appreciation
of the Turners Automotive Group Limited Shares you earn.
How it works:
•
You will receive the Turners Automotive Group Limited Shares for Net Written Premium sold

(see Agreement for details)
•
You will need to achieve certain criteria targets (see Agreement for details)
•
Once issued you will have full rights to the Shares – including earning quarterly dividends
Please note: This is a summary only, full terms and conditions apply.
About Us:
Autosure is a business brand of DPL Insurance Limited, a subsidiary of Turners Automotive Group Limited
(turnersautogroup.co.nz), which is a wholly New Zealand owned and operated company listed on the NZX
(nzx.com/companies/TRA).
James Searle
General Manager
Partner
with us

and get
rewarded.
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Oxford Finance Dealer Share Scheme 022018
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Dealer Share Scheme – We’re in the business to drive your business forward.
As a valued and trusted partner, we would like to invite
you to become part of our Dealer Share Scheme.
This is a great opportunity for you to participate in the
potential dividend flow and capital appreciation of the
Turners Automotive Group Limited shares you earn.
How it works:
•
You will receive $10 in Turners Automotive Group
Limited Shares for every $5,000 in new Consumer
Loans advanced each month
•
All Consumer Loans secured by a motor vehicle
qualify
•
Minimum of $120,000 new Consumer Loans
advanced for the 6-month period is required
•
Once issued you will have full rights to the
Shares – including earning quarterly dividends
About Us:
•
Oxford Finance Limited is a subsidiary of Turners

Automotive Group Limited, a wholly New Zealand
owned and operated company listed on the NZX.
•
www.turnersautogroup.co.nz
•
www.nzx.com/companies/TRA
To become part of our
Dealer Share Scheme,
please talk to your
Oxford Finance
Business Development
Manager today.
Please note: this is a summary only, full terms and conditions apply.
Partner
with us

and get
rewarded.
DPL Insurance Head Office
28 The Warehouse Way
Northcote, Auckland

6
NEW BRAND ROLL OUT ACROSS NEW ZEALAND
A rebranding is being rolled out across the country,
following the consolidation of all the finance businesses
under the Oxford Finance brand. The latest facility to be
rebranded is the office in Levin, which has great road
frontage and some impressive signage now on display.
It’s certainly the talk of the town and looks very smart.
As part of the consolidation, all finance originated through
the Turners business is now being directed into Oxford
Finance, with more than $4 million in new loans expected
to be redirected from MTF to Oxford Finance each month.

TURNERS AUTOMOTIVE GROUP SHAREHOLDER NEWS
7
One of the primary services offered by EC Credit Control
(ECCC) is the preparation of customised Terms of Trade
for businesses. Having these in place provides the
best chance of success against even the most difficult
debtors.
ECCC’s data shows that clients with good Terms of Trade
documentation have a greater chance of collecting
outstanding or overdue debt. Worryingly however,
in New Zealand, around 30% of ECCC’s clients have
no Terms of Trade, indicating a lack of robust credit
management in the SME sector. In Australia it’s even
worse, with around 50% of clients falling into this
category.
Australian SME clients also have a higher appetite for
risk, with the average debt value approximately 40%
higher than in New Zealand. This combination of a high
percentage of SME businesses with inadequate or no
terms of trade in place to protect them, along with an
apparent appetite to carry a larger financial risk, reflects
recent market statistics; specifically that both cash flow
and late payments have hit their worst numbers this
financial year for small businesses.
EC CREDIT CONTROL
ENCOURAGES BETTER TERMS
OF TRADE TO PROTECT SMES
DEBT MANAGEMENT
More clients are turning to ECCC to recover their debt,
with the average debt load increasing in both Australia
and New Zealand, particularly in construction related
industries where materials, transport and labour costs
are hugely variable. In New Zealand, average debt
loads are up 20%, highlighting the importance of SME
businesses putting robust Terms of Trade in place to
protect their overall exposure during high growth
periods.
Watch the video link here
I started with ECCC in 2007, initially as NZ Corporate
Sales Manager to help establish the corporate portfolio.
In 2013, we turned our sights to the Australian market
and I took over responsibility for the sales teams in both
countries. In 2015, after the sale of ECCC to Turners, I
took up the role of CEO of the business.
We still have a big focus on new business development
and building the debt load from existing clients. I’ve
been in the industry for a long time so most people
know who I am and ECCC has an enviable position,
especially in NZ, in the corporate collections space.
Being in sales most of my life, there is nothing better
than bringing on board a new, large corporate client –
to this day, it’s still one of the highlights of my work life.
This year, we’re mainly focused on developing our
Australian business and making the ECCC brand as
recognisable in Australia as it is in New Zealand. We’re
building our corporate sales team in Australia and
leveraging the great relationships we have with our NZ
clients to gain a foot in the door with their business in
Australia. Culture is also a focus this year. Collections
can be a very thankless job, so we need to make sure
our people feel appreciated and rewarded.
The biggest reward is being able to assist clients to
transform their business and get themselves into a best
practice position. Without cash you can’t run a business,
so we are there to assist anyone who is prepared to
listen and take on board the advice we give them.
Business wise, I want to take ECCC to be a $50 million
turn over company and whilst this will take a lot of hard
work, I believe with the right people around me this is
achievable.
Outside of work, I’ll give any sport a go. At the
moment I’m actively involved in golf (8.6 handicap),
squash (graded B1), indoor netball, cycling and have
a large section which means lots of gardening and
building outdoor masterpieces. I am also a bit of a rum
connoisseur and have around 20 different varieties of
rum in the scullery. I believe life is all about having a
balanced approach, making sure you have time for what
you want to do.
MEET THE
TEAM
INTRODUCING
DAVE WILSON
CEO EC Credit Control

8
Primarily opera,ng in the automo,ve sector and providing strength in three key areas:
AUTOMOTIVE RETAIL

Controlling the buying and selling of
second hand cars, trucks and
machinery to earn a transacAonal
margin and delivering cross-sell
opportuniAes for Finance and
Insurance
Turners is the largest second hand
vehicle retailer in New Zealand
FINANCE AND INSURANCE

Helping customers with simple and
aKracAve finance and insurance
products, and building annuity revenue
streams
Turners has a por<olio of reputable
businesses offering finance and insurance
products to customers across New
Zealand, including personal, motor
vehicle loans and insurance
DEBT MANAGEMENT SERVICES

Helping businesses of any size in New
Zealand and Australia with beKer
management of their credit
challenges
Turners has a growing presence in the
debt management sector in both New
Zealand and Australia through its EC
Credit business
AN INTEGRATED AUTOMOTIVE FINANCIAL SERVICES GROUP
Helping retail and wholesale customers in three key areas:
Primarily opera,ng in the automo,ve sector and providing strength in three key areas:
AUTOMOTIVE RETAIL

Controlling the buying and selling of
second hand cars, trucks and
machinery to earn a transacAonal
margin and delivering cross-sell
opportuniAes for Finance and
Insurance
Turners is the largest second hand
vehicle retailer in New Zealand
FINANCE AND INSURANCE

Helping customers with simple and
aKracAve finance and insurance
products, and building annuity revenue
streams
Turners has a por<olio of reputable
businesses offering finance and insurance
products to customers across New
Zealand, including personal, motor
vehicle loans and insurance
DEBT MANAGEMENT SERVICES

Helping businesses of any size in New
Zealand and Australia with beKer
management of their credit
challenges
Turners has a growing presence in the
debt management sector in both New
Zealand and Australia through its EC
Credit business
Primarily opera,ng in the automo,ve sector and providing strength in three key areas:
AUTOMOTIVE RETAIL

Controlling the buying and selling of
second hand cars, trucks and
machinery to earn a transacAonal
margin and delivering cross-sell
opportuniAes for Finance and
Insurance
Turners is the largest second hand
vehicle retailer in New Zealand
FINANCE AND INSURANCE

Helping customers with simple and
aKracAve finance and insurance
products, and building annuity revenue
streams
Turners has a por<olio of reputable
businesses offering finance and insurance
products to customers across New
Zealand, including personal, motor
vehicle loans and insurance
DEBT MANAGEMENT SERVICES

Helping businesses of any size in New
Zealand and Australia with beKer
management of their credit
challenges
Turners has a growing presence in the
debt management sector in both New
Zealand and Australia through its EC
Credit business
AUTOMOTIVE RETAIL
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 is the largest second hand
vehicle retailer in New Zealand
FINANCE AND INSURANCE
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
DEBT MANAGEMENT
SERVICES
Helping businesses of any size in
New Zealand and Australia with
better management of their credit
challenges
Turners has a growing presence in
the debt management sector in
both New Zealand and Australia
through its EC Credit business
ABOUT TURNERS AUTOMOTIVE GROUP
SHAREHOLDER COMMUNICATIONS GO ELECTRONIC
We encourage our shareholders to receive communications from us by email.
This may include the annual report, share transaction statements, dividend
payment advice, shareholder meeting notices and other company related
material.
It’s simple to sign up. Email enquiry@computershare.co.nz, provide your CSN/
shareholder number and confirm you want to receive Turners Automotive
Group communications by email.
Alternatively, you can log in to www.investorcentre.com/nz and update your
details. For first time users, you will need your CSN/shareholder number and
FIN to access the Investor Centre and register your account. Going forward,
you will access this service with your own User ID and Password.
While there, you can also update other details including change of address,
banking instructions and IRD number.
STAY UP TO DATE WITH TURNERS eNEWS
You can also register to receive news and updates from
Turners as we release them to the market.
To sign up, scan the QR code here or visit our website to
subscribe.
Turners Automotive Group, Level 15, 34 Shortland St, Auckland 1010
Phone: 0800 100 601
|
info@turnersautogroup.co.nz
www.turnersautogroup.co.nz
KEY DATES
Half Year End:
30 September 2018
Interim Results Announced:
By end-November 2018
Interim Report:
By end-December 2018
Quarterly Dividends paid in:
April, July, October, January
CONTACT US
INVESTORS
www.turnersautogroup.co.nz
RETAIL
www.turners.co.nz
FINANCE
www.oxfordfinance.co.nz
INSURANCE
www.autosure.co.nz
EC CREDIT
www.eccreditcontrol.co.nz