Tourism Holdings Limited 2018 Annual Meeting Address

FY18Full Year Results Presentation
WE
ARE
HERE.
2018 Annual Meeting Presentation

Rob Campbell
Chairman’s Address
2

Proxies and Postal Votes Received
•Valid proxy and postal votes24.8M
•Proxy & postal as a percentage of ordinary shares on issue 20.1%
•Proxies received that have identified the Chairman 19.8M
of the meeting as proxy
3

Agenda
•Chairman’s address
•Chief Executive Officer’s address
•Question & answer
•Formal Items of business
•General business
•Afternoon tea
4

FY18 Financials
•a record NPAT result before and after non-recurring items
•EBIT of $63.5M, excluding the one-off items -an increase of 33% over the prior year
5
NZD $M
FY18
FY17
VAR
%
Operating revenue
425.9
340.8
85.1
25%
Earnings before interest
and tax*
86.6
47.7
38.9
81%
Operating profit before tax
76.2
43.7
32.4
74%
Profit after tax
62.4
30.2
32.2
107%
Non-recurring Items
24.9
–
24.9
NA
Ordinary NPAT
37.5
30.2
7.3
24%
* includes non-recurring items
Financial Highlights

Establishment of TH2
6

Sustainability
7
•Carbon Footprint down 3.4% across Australian and NZ
operations
•10 electric campervans expected on fleet in December
•Waste-to-landfill down 11% in Australian and NZ
businesses
•Release of Kiwipledge which has been a key driver for
Tiaki Promise
•Community Impact assessment completed in Queenstown
•Australia Employer of Choice awards winner
•Carbon footprint includes the US operations and joint
ventures
•GRI compliant and fully online reporting on
thlsustainability.com
•Alignment with sustainability development goals started

The Board
8
Rob Campbell
Debbie Birch
Cathy Quinn
GráinneTroute
Graeme Wong
Up for re-election
Up for re-election
Kay Howe

9
Transaction Activity
and Long-Term
Outlook
•We remain focused on acquisitions as well as the growth of our
core business
•Progressing the potential sale of some Tourism businesses,
with an intention to re-invest sale proceeds in transaction
activity
•The underlying core business assumptions for the previous
FY2020 NPAT goal of NZ$50M have not materially changed
•However, with our investment in TH2 and other potential M&A
activity, we need to set new medium-term goals for the
business
•We expect to set a new goal once transaction activity is
finalised
•We are very much focused on setting goals, driving towards
them, being transparent and reporting against our set goals

Chairman’s Report
Closing Comments
•We are now a global player in the RV industry with
operations and aspirations that are growth orientated
•We are currently constructing a flexible business model
to deliver future opportunities
•We have significant opportunities for improvement and
growth, particularly in TH2
•We are pro-actively addressing how we impact our
environment with a core focus on sustainability
•We will continue to be open about our progress and
our shortfalls
10

Grant Webster
Chief Executive’s Address
11

FINANCIAL
HIGHLIGHTS
12
AS AT 30 JUNE 2018
WHERE
WE ARE.
2018
REVENUE
TOTAL NET
PROFIT AFTER
TAX (NPAT)
ORDINARY
NPAT
$341M
$426M
$62.4M
$37.5M
+25%
+107%
+24%
20172018
FINAL DIVIDEND
1
TOTAL ROFE
2
EARNINGS BEFORE
INTEREST AND TAX
(EBIT)
3
11cps
14.3%
$47.7 M
14cps
15.3%
$63.5M
+27%
+7%
+33%
Note: 1) Fully imputed; 2) Total ROFE inclusive TH2 ; 3) FY18 EBIT exclusive of non-recurring items
2017
$341M
$30.2M
$30.2M

13
KEY ACHIEVEMENTS FY18
Agrowing business globally RECORD HIGHvehicle sales
numbers
Doing thingssustainably
Completedanother key
future focused transaction
with the TH2 joint venture
with Thor Industries.
Australia increasedvehicle
sales by over 30% on the pcp
(including buybacks).
Absolute carbon footprint
down 3.4% across NZ and
Australian operations.
RoadBear reached 750
vehicle sales -another new
record.
Launched Kiwi Pledge.
33% IMPROVEMENT in EBIT
before one-off gains.
New Zealand retail accessory
sales grewby over 18% -a
new record sales number.
Communityassessment
completed in Queenstown.
Increasingproduction
capacity at Action
Manufacturing to enable
Australian export growth.
ElMonte sold 564 vehicles -
likely a new record.
Completed the USA carbon
emission assessment.

Balance Sheet
•Net Debt expected to be approximately NZ$195M –NZ$210M at the end of FY19, excluding transaction
activity and including investment in TH2
•FY19 gross capital expenditure expected to be in line with FY18 at approximately NZ$200M
•FY19 dividends are expected to be in line with FY18
14
Net Debt
Gross Capex

15
WHERE
TO NEXT?
OUR AMBITIONS
•Search out M&A activity that aligns with the business
core capability
•Action Manufacturing’s acquisition of Fairfax
Industries
•Continue to deliver a ROFE for the core business
around 15%
•Develop TH2 into a globally successful set of
businesses. Be the digital platform for the RV industry
Key Initiatives

16
WHERE
TO NEXT?
OUR AMBITIONS
•We are reviewing acquisition opportunities across the
world:
•Small acquisition opportunities within New Zealand and
Australia
•Ongoing exploration of further acquisitions in USA
•Potential opportunities in the UK on a smaller scale
•Further opportunities being explored in growth
jurisdictions that we do not operate in, e.g. Europe,
Canada and China
•Jurisdictions that we currently operate in have further
opportunities for growth
Growth and
Acquisitions

TH2 –the Market and Business Model
17
The Market
•The key target customers for TH2 are:
•RV owners –likely close to 15M* owners globally
•RV rental customers –ease of access through thl’s relationships with rental customers
•Self-drive customers –tourists taking road trips
•Initial focus on North America and Australasia but ultimately a global approach
The Business Model
•High gross margin revenue generation through:
•Paid advertising
•Businesses to be promoted on apps
•Subscription fees:
•End customers for app use
•SaaS model for software services within RV industry
•Low gross margin revenue generation through commission on RV industry services (e.g.
mechanical repairs) and accommodation bookings
* thl’s estimate based on historical RV production statistics in North America, Europe, UK, Australia and New
Zealand.

TH2 –Funding, Returns and Risk
18
Funding
•We are confident that the planned aggregate US$20M investment by thl and Thor will be sufficient for FY19, excluding any potential
transaction activity
•Key costs outside of development staff are variable customer acquisition costs
•Broad range expectation for TH2 of FY20 NPBT between loss of US$10M and profit of US$10M
•thlwill only invest further funds in FY20 up to a maximum of US$5M if it has confidence in the performance of TH2 against its KPIsand
customer acquisition targets
•A US$10M NPBT in FY20 is an ambitious target but achievable if a global launch is successful
Returns
•Given the minimal capital required, over time we expect the return from TH2 to exceed thlrequirements
Risks and mitigation
•thl’s financial contribution to TH2 not expected to exceed a total of approximately US$30M (inclusive of original costs forthl IP contributed
to TH2)
•If targets not achieved, we expect that there will be strong residual value in TH2’s technology
•Open discussions to be had with joint venture partner, Thor Industries, if further opportunities become available to TH2 beyond thl’s
acceptable risk profile

TH2 –KPI’s and Other Benefits
19
KPI management
•Appropriate KPIs will be reported, whilst ensuring sufficient commercial sensitivity
•Roadtrippers now has over 3.5M registered users and over 12M trips planned to date,
with double-digit growth in trips planned annually.
Other benefits of TH2
•Significant value attributable to anonymised customer data collected through products,
providing powerful insights into the RV and wider tourism industry
•Cost reductions in other business areas –telematics have provided significant cost
returns in thl’s Australian rentals business
•Connection to the RV Industry on a global basis, with scale.

Investing in Technology: Togo
20
KEY FEATURES
•Track RV maintenance
•Keep RV service close
•Set custom notifications
•Reference checklists for RV trips
•Phase two launch planned for March 2019 will include
roadside assistance, recall notifications, how-to guides
and RV owner’s manuals

Our Global System
•Collectively, thlhas a comprehensive and expansive RV
travel offer –but we have not yet connected it as a total
system
•We have set up a brand that connects our customers with all
parts of our globally connected system, with the primary
objective to drive repeat business with our RV rental
customers
•Our guiding principles are to:
•Put the customer at the heart of this RV travel system
•Be a connector of brands, not a monolithic brand
•Enable future innovations & acquisitions to plug into the system
•Leverage the equity of what we already have
Why not monolithic?
•We’re still growing through acquisitions
•We have brands at different stages of life, most have strong
heritage and customer value
•There is a difference in product delivery and customer value
•We gain today from a range of brands through increased
shelf space
•We will always review this position objectively
21

Building New Meaning into thl
powered by the
world’s most
advanced RV
technology
putting more
moving global
experiences at
our customers
fingertips
22

Powerfully Enabling our Vehicle Brands
23

Connecting our Network to Establish thlas the World’s LeadingRV Travel
System
24

25
Other
Activities
FY19
•Technology –
•Delivery of D365 in the USA and at Action
Manufacturing
•Cosmos launch in NZ and Australia
•Global telematics continued roll-out following
successful implementation in Australia
•Sustainability –launch of the first bookable electric
RV which is now available to book for use in
December 2018
•Core business –focus on new RV product
development

26
FY19 –Rentals New Zealand
•NZ rental revenue expecting 10% growth on prior
year
•NZ vehicle sales on track with growth expectations
to date –expecting to balance fleet levels by end of
FY19
•Increase in level of RV imports unlikely to impact thl
rentals –some potential impact on new vehicles
sales
•Action Manufacturing and thlworking together to
develop products to increase market share of new
vehicle sales
•Recent movements in exchange rates expected to
naturally decline the level of RV imports into New
Zealand

$32M-$34M*
NPAT FY19
27
•NZ$15M investment into TH2 (thl’s share)
•El Monte earnings expected to be lower than FY18
•Group support services expected to be up NZ$1M on
FY18, excluding any transaction costs
•Potential one-off Australian tax issue of
approximately AU$2.5M (pre-tax) being challenged –
any potential ongoing impact will be immaterial
FY19 Outlook
*NZD. Excluding potential one-off Australian tax liability of approx. AU$2.5M
pre-tax

Questions?
28

Formal Items of
Business
29

Resolution 1
Re-election of Rob Campbell
That Robert James Campbell, who retires by
rotation and is eligible for re-election, be re-
elected as a Director of the Company.
30

30
Resolution 2
Re-election of Debra Birch
That Debra Ruth Birch, who retires by rotation
and is eligible for re-election, be re-elected as
a Director of the Company.
31

30
Resolution 3
Re-election of Grároute
Resolution 3
Director Remuneration
That the maximum aggregate amount of
remuneration payable to all Directors taken together
(in their capacity as Directors) be increased from
$650,000 per annum to a maximum of $750,000 (plus
GST, if any) per annum with this sum available to be
paid to the Directors of the Company as the Board
considers appropriate and which may be payable
either in whole or in part by way of an issue of
ordinary shares in the Company, provided that any
issue occurs in compliance with NZX Main Board
Listing Rule 7.3.8.
32

30
Resolution 3
Re-election of Grároute
Resolution 4
Remuneration of Auditors
That the Directors are authorised to fix the
remuneration of the auditors for the ensuing year.
33

General Business
34

Thank you
35

Disclaimer
36
•The information in this presentation, dated 31 October 2018, may contain forward-looking statements and projections. These reflect
thl’s current expectations, based on what it thinks are reasonable assumptions. However, for any number of reasons, the future
could be different and the assumptions on which the forward-looking statements and projections are based could be wrong. thl
gives no warranty or representation as to its future financial performance or any future matter. Except as required by law or NZX
listing rules, thlis not obliged to update this presentation after its release, even if things change materially.
•This presentation may contain a number of non-GAAP financial measures. Because they are not defined by GAAP or IFRS, thl’s
calculation of these measures may differ from similarly titled measures presented by other companies and they should not be
considered in isolation from, or construed as an alternative to, other financial measures determined in accordance with GAAP.
•This presentation does not take into account any specific investors objectives, and does not constitute financial or investment
advice. Investors are encouraged to make an independent assessment of thl.
•The information contained in this presentation should be read in conjunction with thl’s latest financial statements, which are available
at: www.thlonline.com

---

Tourism Holdings Limited
Tel: +64 9 336 4299
The Beach House
Fax: +64 9 309 9269
Level 1, 83 Beach Road
www.thlonline.com
Auckland City

PO Box 4293, Shortland Street

Auckland 1140, New Zealand



Self drive
Experiences
New Zealand
Australia
USA
UK


Design &
manufacturing
New Zealand
Australia

Guided
Experiences
New Zealand



31 October 2018


MEDIA | NZX RELEASE
TOURISM HOLDINGS LIMITED (thl) ANNUAL MEETING – 31 OCTOBER 2018
CHAIRMAN | CHIEF EXECUTIVE ADDRESS

SLIDE 1 – Tourism Holdings Ltd Annual Meeting

Chairman’s Address – Rob Campbell

SLIDE 2 – Welcome

Tena koutu katoa.

Welcome to the 32
nd
Annual Meeting for Tourism Holdings Limited. My name is Rob Campbell, your
Chairman.

As we have a quorum present, and it is 2:00pm, I declare the Annual Meeting open.

Today we are conducting this Annual Meeting simultaneously here and online. We welcome all
shareholders. I am joined on stage by fellow directors Debbie Birch, Kay Howe, Cathy Quinn, Gráinne
Troute and Graeme Wong. We’re also joined on stage by our Chief Executive Officer, Grant Webster,
Group Financial Controller, Steven Hall and acting Company Secretary, Amir Ansari, who is on
secondment from our legal advisors for a period.

In the audience today, we have a number of the team from within the thl, Action Manufacturing and
TH2 businesses. I will quickly introduce the executives in the room – From thl, we have Jo Allison, Ollie
Farnsworth, Matt Harvey, Ben Lane, Brett Morris, and Saskia Verraes. From TH2, we have Dave
Simmons. From Action Manufacturing, we have our Joint Venture partner Grant Brady. Kate Meldrum
and Gordon Hewston are attending online and we also have representatives from the New Zealand
Rentals business, our support crew in Auckland, Kiwi Experience and the vehicle sales business based in
Albany.

Finally, we have representatives from our auditors, PricewaterhouseCoopers; solicitors, Minter Ellison
Rudd Watts; banking partners, ANZ, HSBC and Westpac; and our share registrar, Link Market Services,
who are managing the polling process.

Members of the news media are also with us today. Grant and I will make ourselves available for
comment after the meeting.

thl – Annual Meeting 31 October 2018 – Chairman & Chief Executive Address Page 2 of 14

SLIDE 3 – Proxies and Postal Votes Received
As indicated on the screen, we have received 24.8M valid proxies and postal votes, representing 20.1%
of the ordinary shares on issue. Of those, 19.8M have identified me, as Chair of the meeting, as proxy.


SLIDE 4 - Agenda
I will provide a brief overview on the business and then hand over to our Chief Executive, Grant
Webster, to provide more detail on the year that has passed and the future direction of the business.
We appreciate the questions and feedback we receive at these sessions.


SLIDE 5 – FY18 Financials
In FY18 we delivered another record result - a pre-one-off net profit after tax (NPAT) of NZ$37.5M, an
increase of 24%. Within that result there were areas of strong success, but there were also areas which
were just ok, and other areas that we can and will improve in. Since FY14 we have been increasing NPAT
results. We regard thl as a growth business. In the current period we are creating a platform for long-
term growth on a global basis centred on the recreational vehicle market. We aim to participate in the
most effective manner in all aspects of that market from production, to rental, to sales and ongoing
owner services. The one-off gain of NZ$23.1M we made in the year under review, in addition to the
record profit I have referred to, is worthy of note. It is non cash, yet compelling. The one-off gain
reflects the agreed value of the thl IP contributed into TH2 which is genuine value created over the past
five years. As per accounting policies we reflected 50% of the actual gain, given we are a 50% joint
venture partner in TH2.

The investor presentation that we released with our Annual Results this year increased our level of
disclosure and I encourage you to review that document for the detail of our results.


SLIDE 6 – Establishment of TH2
A key highlight for thl in 2018 was the establishment of TH2, our 50:50 joint venture with Thor
Industries. We see substantial opportunities for the future in TH2. This business has a goal of becoming
the digital platform for the global RV industry and is well positioned to deliver to that goal. Grant will
cover some details on where we are at with TH2 today, which will increase our level of disclosure on
this business.

Businesses today are challenged to operate differently, to change business models, to disrupt or be
disrupted. We are doing this in the thl model, in alliance with a global industry leader and without
betting the farm. The investment in TH2 is significant and ground breaking. It is the right thing to do.

We have also referred in our business updates to the extensive corporate activity in which we are
engaged. We are continuously reviewing opportunities in markets around the world to drive faster
growth and greater efficiency in our operations, and to enhance the position of thl. We apply the same
rigour to these reviews that we have been applying to capital allocation within our existing operations.
This will mean that some acquisition opportunities will not proceed and that others will take longer than

thl – Annual Meeting 31 October 2018 – Chairman & Chief Executive Address Page 3 of 14
might otherwise be the case. Large or small, each potential opportunity is assessed with great care and
caution.

SLIDE 7 – Sustainability
Last year we published our first sustainability report to show that we are serious about being a
responsible global business. All of our businesses across the globe are now reporting within our
sustainability framework, and sustainable practice is becoming a part of our culture.

We have a number of initiatives underway which are detailed in the 2018 sustainability report. As a
summary, in the last year we reduced our carbon footprint by 3.4% across our New Zealand and
Australian operations. In Australia, we also eliminated the use of 94,000 plastic bags from our
operations. These are just first steps and we have much more to do. We’ve set ambitious sustainability
targets, including a 20% reduction in our total emissions by 2025 and for at least 5% of our total RV fleet
to be low-emission vehicles by 2020. I encourage all our shareholders who would like more information
about thl’s sustainability initiatives to read our online report, available at www.thlsustainability.com.

Traditionally, sustainability initiatives being undertaken by a business have been viewed as conflicting
with financial returns. This has partly been a result of short-termism, with financial markets being too
focused on short-term returns and ignoring future risks and wider consequences. Companies that
adopt this type of short-term thinking are less likely to succeed in the long-term. The value in a
business, which is often measured by the anticipated cash flows of the business over many decades, is
illusory if the environmental conditions for continued earnings are not there. In reality, there is no
sharp distinction between what is sustainable and progressive, and what is profitable. To become true
champions of sustainability, we must be wary of the danger of this form of short-term thinking. As
Chairman, I consider that my role is not only to think about thl’s performance in the coming year, but
also its life expectancy over the next 10, 20 or 30 years. Ensuring that the culture of thl is built around
sustainability, and that the business does good and helps to improve the way people live and work
together, is one of the keys to that life expectancy.


SLIDE 8 – Board and Diversity
We have a diverse and skilled Board that is very committed to guiding the business to deliver the best
outcomes for you as shareholders. As a Board, we are committed to ensuring that we hold ourselves to
the appropriate standards of governance through communication, accountability and transparency with
and to shareholders.

Last year, thl was an early adopter of the principles in the NZX Corporate Governance Code. We
continue to review our policies and guidelines to ensure they are in compliance with best practice,
including with the NZX Corporate Governance Code and the FMA’s refreshed Corporate Governance
Principles and Guidelines.

We are continuously reviewing the capability matrix for the Board and we will most likely commence a
search for one additional Director, who fills some of the areas we identify as needing some further
expertise. We have no set timeframe we will operate to and don’t expect to make any announcement
until early next year.

thl – Annual Meeting 31 October 2018 – Chairman & Chief Executive Address Page 4 of 14

SLIDE 9 – Long term outlook, transaction and M&A
We remain focussed on acquisitions as well as the growth of our core business. We are presently
engaged with a number of opportunities which may extend our scope. At this stage, we are unable to
discuss the details, locations or quantum of these opportunities.

Last week, we disclosed that we are in discussions regarding a potential sale of Kiwi Experience and
some of our Discover Waitomo businesses including Black Water Rafting, Ruakuri and the Waitomo
Homestead.

We have said for some time now that the future for thl is RV-centric and global. We are not, and do not
aim to be simply a New Zealand tourism business. We feel that the timing is right for this transaction
and that we have found the right partner to work with on the Waitomo Glow Worm Caves, which will
not form part of the potential sale, primarily because the term of the lease for that business ends in
2027.

We intend to re-invest any proceeds from the potential sale of these tourism assets into transaction
activity that more closely aligns with our core capabilities and goals. We have set goals for the
realisation we expect, which are responsible, and we will not be selling any assets for other than their
full current value in our assessment.

As was mentioned in our annual shareholder review for 2018, given the substantial changes in the
structure of our business we need to review our original NPAT target of NZ$50M for FY20. This does
not mean that any of the underlying core business assumptions for our NZ$50M target have materially
changed. Our core business is operating reasonably consistently against our expectations and goals
underlying that target, although El Monte is operating below expectations and approximately one year
behind our original targets for that business.

We are still not at a stage to announce that new goal today. We will do so once our transaction activity
is finalised. Once our goals are set, our focus will be on driving towards them, being transparent, and
reporting against those goals. The nature of our business being one of growth means that on occasion
we do have to look at and revise previous targets as we continue to develop in new directions – we
think this is a positive thing.


SLIDE 10 – Chairman’s closing comments
In summary, let me consider the investment case for thl today. We’ve moved to be a player in a
significant global industry, with a positive medium and long term outlook. We are operating with a
flexible business model, strong balance sheet disciplines and high relative return on funds employed.
We have also created vast opportunities with a strong partner with TH2. We are operating in a more
sustainable manner and will continue to do so. We are set to be successful into the future. We will
have bumps along the way, and we will see some parts of the business underperform to our
expectations. When that occurs we will fix the issues. Profit this year will be lower than last year as we
invest a substantial amount in our global activity and manage growth. That’s a reality. Hold us to
account on how we manage growth, market conditions and our core financial disciplines.

thl – Annual Meeting 31 October 2018 – Chairman & Chief Executive Address Page 5 of 14
Grant and I have spent some time discussing how best to portray the strategy on which we are engaged
in thl. Reading early this morning, I discovered a new study released by Boston Consulting Group and
Fortune which identifies the key things which distinguish companies which are both established and
manage to thrive in a changing market. They describe this characteristic as “vitality” and quote the
novelist F Scott Fitzgerald as saying “vitality shows not only in the ability to persist but the ability to
start over”. That captures what we are trying to do.

They identify three key building blocks:
1. The ability to continuously develop future growth options or what they describe as “constantly
renewing a pipelines of potential bets”
2. The willingness of leadership to think differently about strategy, or as they say not “simply
maximising short term total shareholder return” but exploring options and having a long term
orientation and allocating resources to that.
3. Determination to build the right capabilities.
I’m not saying we are there yet but this very accurately captures what we are trying to do.

Finally I would like to thank all the teams across the business. I had the pleasure to attend certain
aspects of the recent thl leadership conference. It was another example of the commercial, positive,
change-tolerant culture that exists within thl.

I will now pass on to Grant.


SLIDE 11 – Chief Executive’s Address

CEO Address – Grant Webster

Thank you Rob.

As we have in previous years, we will provide a brief update on the results for the prior year but, more
importantly, focus on the new initiatives in the business and direction for the coming years.


SLIDE 12 – FY18 Financial Highlights

Firstly, a quick overview of the FY18 result.

On 1 March 2018, we formed TH2. As you will have seen in our annual report and investor
presentation, we have shown a number of figures with and without the impact from the formation of
the JV to show the true underlying business result.

The FY18 result is also the first financial year that includes a full-year result for the El Monte business.

thl – Annual Meeting 31 October 2018 – Chairman & Chief Executive Address Page 6 of 14

Without considering the one-off items relating to TH2 and inclusive of El Monte:
 We delivered an ordinary NPAT result of $37.5M, an increase of 24%;
 Revenue was up 25% for the year;
 We increased EBIT by 33%;
 Return on average funds employed (ROFE) increased from 14.3% to 15.3%;
and,
 We delivered a final dividend of 14cps, a 27% increase on the final dividend of 11cps the
previous year, which brought our total dividend for FY18 to 27cps from 21cps the previous
year.


SLIDE 13 – Key Achievements FY18
As Rob mentioned, the creation of TH2 would be the highlight of the year, given the potential of this
business and its new initiatives.

The New Zealand rentals business increased EBIT by 6% - this followed growth in FY17 of over 50%.
New Zealand rentals were tracking very well during the first half of the year but had a poor second-half,
partly as we were unable to match the second-half result we had in FY17 during the Lions Tour, and
partly due to an inability to process all the vehicles for sale that we had intended. Vehicle sales margins
decreased mainly due to a greater mix of vehicles selling through third-party dealers and some intended
price adjustments in line with the our disclosure at last year’s Annual Meeting.

Another highlight for thl was the performance of the Australian rentals business, which increased EBIT
by 35% to $10.6M and increased ROFE from 11.8% to 13.3%. The Australian business also increased
vehicle sales by over 30%. This result reflects a significant effort from the Australian team over the last
few years.

The other businesses results are well covered in the annual report and we are happy to take questions
on those, if required.


SLIDE 14 – Balance Sheet
Our net debt at year-end increased from $176M last year to $199M this year. This reflected an
increased fleet, primarily in New Zealand and an increase in the year-end USD:NZD exchange rate. Our
year-end net debt to EBITDA ratio was 1.9x which remains unchanged from the previous year, and also
remains within our target ratio of 2.0x.

We are forecasting net debt to be between $195 – $210M at the end of FY19 on a like for like basis,
excluding any transaction activity but inclusive of our TH2 investment.

FY19 gross capital expenditure is expected to be in line with FY18 at approximately NZ$200M.

FY19 dividends are expected to be in-line with FY18. This will take us outside of the thl dividend policy
on current profit projections. This is because we are excluding the FY19 TH2 investment in our
calculations.

thl – Annual Meeting 31 October 2018 – Chairman & Chief Executive Address Page 7 of 14
SLIDE 15 – Where to Next – Key Initiatives
We are now well and truly a multinational business and a real player in the global RV industry. Looking
forward, we aim to solidify our position in that respect by continuing to search for appropriate M&A
opportunities in various parts of the world that align with our business core capabilities, focusing on
opportunities with a suitable ROFE. An example of this is the recent acquisition by Action
Manufacturing of Fairfax Industries, a New Zealand leader in refrigerated truck body and trailer
manufacturer. This acquisition is a part of Action Manufacturing’s long-term growth strategy,
particularly in the refrigerated transport industry.

We also continue to remain focused on our core business and aim to deliver a ROFE around 15% in
those aspects of our business going forward.

In saying that, to continue to deliver shareholder value thl is also focused on the future, particularly in
respect of the digital opportunity in the RV industry.


SLIDE 16 – Growth and Acquisitions
Currently, we see potential M&A opportunities across the world. Although there are some
opportunities for small additions in New Zealand, we consider this to be less likely given that we already
have a strong presence. We also see small opportunities in Australia for acquisitions within our core
business as well as in adjacent businesses. Looking further in the world, we are also exploring
opportunities within the USA and the UK.

We also keep a close eye on markets across the globe that we don’t currently operate in, but that are
experiencing strong RV sector growth such as Europe, Canada and China. We are considering greenfield
development, partnerships and acquisitions as the methods of entry.

Beyond M&A activity, we consider that there are still further growth opportunities in the jurisdictions
that we operate in today. We will continue to take advantage of those opportunities by leveraging all
aspects of the RV eco-system and continuing to implement our core business model of building, renting
and selling to maximise the value we get from each RV.


SLIDE 17 – TH2 (the market and the business model)
TH2’s main purpose is to improve every aspect of RV use and ownership through technology. To do so,
significant engagement will be required with three key customer segments, RV owners, RV rental
customers and self-drive customers. The potential size of these addressable markets globally are
extraordinary, with RV owners alone likely to be around 15 million.

Roadtrippers is targeting the much broader self-drive tourist market. In theory, that could be every
single driver globally.

TH2’s initial geographical focus will be in North America and Australasia, shortly followed by Europe and
the UK. This initial focus will enable TH2 to best leverage the existing presence and relationships of
each of thl and Thor in these regions, but ultimately TH2 will be a global offering.

thl – Annual Meeting 31 October 2018 – Chairman & Chief Executive Address Page 8 of 14
We expect that TH2 will have a number of high-margin key revenue sources, primarily through paid
advertising, and subscription fees from the end user. The underlying technology for TH2 could also be
made available for distribution within the RV industry under a Software-as-a-Service model. The gross
margin, in time, available to TH2 in these areas is likely to be between 50 to 75 percent.

TH2 will also be able to facilitate the use of ancillary services like mechanical RV repairs or the booking
of accommodation as part of planning a road trip by its users, and will be able to charge a commission
for those services. We see this as a secondary revenue source in which the gross margin available to
TH2, in time, would be somewhere between 2 to 8 percent.


SLIDE 18 – TH2 (funding, returns and risk)
thl and Thor combined will be investing US$20M, in aggregate, in the 2019 financial year through an
aggressive customer acquisition and product development strategy. We are confident that this
investment will be sufficient to cover costs in FY19, excluding the funding of any potential transaction
activity.

It is difficult to predict the returns to thl from its investment in TH2 at this early stage. We will be taking
a cautious approach and will only provide further investment in TH2 in FY20 if it is delivering on its
customer acquisition targets around user growth and revenue per user at the time and with favourable
forecasts. If that should be the case, thl would consider investing additional funds in FY20 up to a
maximum of US$5M. This would essentially limit thl’s financial contribution to TH2 to an aggregate of
approximately US$30M, inclusive of the original cost of the thl IP that was contributed to TH2.

As we’ve mentioned, the opportunity for TH2 is significant and we think that as a stand-alone entity, it
is capable of achieving a net profit before tax (NPBT) in FY20 of up to US$10M. This is an ambitious
target but one that we think will be achievable if the global launch of TH2 proceeds successfully. An
FY20 NPBT of US$10M would indicate higher than expected initial uptake and revenue per user.

We have also considered factors to mitigate the risk of our investment in TH2. If it becomes clear that
TH2’s performance will not be as anticipated, we think that there will be real value in TH2’s technology
assets.

If further opportunities become available to TH2 beyond thl’s acceptable risk profile, we will be open to
discussions with our joint venture partner, Thor Industries, about options - one of which could be
reducing our shareholding.


SLIDE 19 – TH2 (KPI’s and other benefits)
We will continue to track and report on the performance of TH2 through appropriate KPIs in future
presentations and reports to you. For example, Roadtrippers now has approximately 3.5M registered
users with over 12M trips planned so far, and is continuing to experience double-digit growth in trips
planned annually. However, we will need to ensure that we don’t disclose commercially sensitive
information to the detriment of TH2.

thl – Annual Meeting 31 October 2018 – Chairman & Chief Executive Address Page 9 of 14
Beyond its financial performance, the collection of significant amounts of anonymised customer data
through TH2’s various product offerings will provide significant insights into the RV and other associated
industries.

Additionally, the use of telematics, now being developed by TH2, has benefit to thl’s core rentals
business and can lead to cost reductions in that aspect of our business. We piloted this within our
Australian rentals business with positive results and will be looking to commence the launch of
telematics into the rest of thl’s rentals business globally in FY19.


SLIDE 20 – Togo Update
TH2 has recently conducted the phase one launch of Togo, our all-encompassing app focussed on
meeting RV owners needs. It is now available to download on the Apple App Store and Google Play
Store for Android.

Togo is intended to bring the RV experience into the palm of the user’s hand. It allows RV owners to log
RV maintenance and service checks, get registration renewals, reference convenient checklists for RV
travel plans, and more. Everything about Togo is intended to reduce the time and hassle of owning and
operating an RV.

Togo also functions as an integrated link into Roadtrippers and Mighway, bringing together the
complementary product offering that TH2 has.

The phase two launch will bring a number of additional features, including roadside assistance, recall
notifications and inbuilt RV owner’s manuals.


SLIDE 21 – Connected Customer Brand (Our Global System)
Coming back to thl, we’ve been working on a concept that better connects all aspects of thl’s offering in
the eyes of our customers, driving repeat business. Our guiding principles were to:
 create something that champions the unique character of our portfolio brands;
 create something that is scalable, so any new innovation or acquisition can be easily
incorporated into our business blueprint; and
 create something that leverages the equity in what we already have.


SLIDE 22 – Connected Customer Brand (Building new meaning into thl)
So we’ve looked at how thl as our existing corporate brand can become this connector between all of
our brands. We had a great launching pad with the thl torus – our current mark – so we have slightly
adopted it to be repositioned as our customer facing connected brand.


SLIDE 23 – Connected Customer Brand (Powerfully enabling our vehicle brands)
Our vision is that this will be a key tool for connecting existing customers with global options for their
next trip, and it will help us tell the story of our unique proposition by endorsing our wide range of
services and value-add options.

thl – Annual Meeting 31 October 2018 – Chairman & Chief Executive Address Page 10 of 14


SLIDE 24 – Connected Customer Brand (Connecting our network)
The connected customer brand will be used in a variety of ways – from a simple endorsement through
to championing our global community. This doesn’t mean that we will be overhauling our existing
brands – simply connecting them all back to a centralised thl.

Some of the more immediate applications we’re exploring are:
 Reinforcing the system at branch and on vehicles, through a multi-year roll out;
 Consolidating thl’s travel apps – this will commence with the migration of our existing Maui,
Britz and Mighty apps into a single thl app; and,
 Creating a global repeat traveller community headlined by thl.


SLIDE 25 – Other activities FY19
We have outlined our key focus for FY19 in our annual results presentation and I have already touched
on most of these areas today. In terms of our other activities that we will be conducting in FY19, we will
be looking to deliver D365 which we have already implemented in our New Zealand and Australian
rentals business, in the USA as well as in Action Manufacturing. Cosmos booking system will be
launched in New Zealand and Australia, telematics roll-out continues. From a sustainability perspective,
we will also continue to action our initiative to incorporate electric RVs into our fleet. In fact, as of the
start of this week, our electric RVs are now available to book online in New Zealand, and can be
collected during December.


SLIDE 26 – FY19 Outlook for New Zealand Rentals
The New Zealand rentals business has performed well over the first quarter of the year. We expect that
rental revenue in New Zealand will grow by approximately 10% on the prior year. New Zealand vehicle
sales have also been strong to date and are on track with our growth expectations. We remain
confident that we will be able to balance fleet levels by the end of the year.

The recent increase in the level of RV imports into New Zealand are unlikely to impact our rentals
business – however there may be some impact on our level of new vehicle sales. We’re currently
working with Action Manufacturing on a number of measures, including new product development, to
ensure that we retain and increase our market share of new RV sales in New Zealand. We also expect
that the increased level of RV imports will naturally decrease over the remainder of the year as a result
of movements in exchange rates.


SLIDE 27 – FY19 Outlook
We have previously indicated that our FY19 profit will be lower than FY18 due to our investment into
TH2. Now that the first 4 months of FY19 have passed, we are in a better position to provide guidance
on our FY19 net profit result.

thl – Annual Meeting 31 October 2018 – Chairman & Chief Executive Address Page 11 of 14
El Monte’s earnings for FY19 are looking to be lower than the prior year. This shortfall is due to low
vehicle sales as we adjust our product mix to newer, higher priced vehicles and market conditions, as
well as lower domestic rental revenue (yield) in the July – September period. The outlook for calendar
year 2019 is currently very positive from an international rental demand perspective, and domestic
yields have improved in October.

Group support services are also likely to be approximately NZ$1M higher than the prior year, excluding
any transaction costs due to increased support and management costs.

We are also currently challenging a historical Australian tax issue which, if unsuccessful, will likely result
in a one-off cost of approximately AU$2.5M pre-tax, including penalties and interest. If this challenge is
not successful there will also be an ongoing increase in costs for the Australian business but these will
not be material.

Accounting for the TH2 investment and current trading outlook, we expect that our net profit after tax
for FY19 will be between NZ$32M and NZ$34M. This excludes any impact from the potential Australian
tax issue.

In conclusion, I believe we are on the right track to create a more compelling global thl for the future.
We know what we need to do to succeed, we are clear and transparent about the areas to improve and
we are taking measured risks to invest in a new business model for the future.

I would like to thank you all for your attendance and ongoing support of the business.
We have done some good work so far and the future holds a number of exciting opportunities for thl.
We have much more to do and are focused as a business on continuing our development.

Thank you as well to all the team at thl - as I’ve indicated, we are a fast moving, global business with lots
of moving parts. That takes dedication to deliver - and the thl team does just that.

Thank you.

I will now pass back to the Chairman to proceed with any questions from the floor, and to address the
proposed Resolutions.


SLIDE 28 – Questions

Rob Campbell

Thanks Grant.

thl – Annual Meeting 31 October 2018 – Chairman & Chief Executive Address Page 12 of 14
I would like to open up to the floor, and online, for questions. If you are attending the meeting online,
you are able to ask questions by clicking on ‘ask a question’. Further information on this is set out in the
virtual Annual Meeting online portal guide that has been sent to shareholders. To ensure the questions
on the Resolutions being asked online make it to me as we go through each Resolution, I would ask that
shareholders who are attending the meeting online submit those questions now. For those who are in
the room, we have microphones available and I would ask you to hold up your admittance card if you
would like to raise a question. When you speak, please tell us your name and whether you are a
shareholder or proxy holder, for the Minutes. Following any questions from the floor, we will answer
any questions submitted online, that have not already been answered.

Are there any questions?


SLIDE 29 – Formal Items of Business
There being no more questions, I will now move on to the formal items of business on the agenda.

As indicated, we are operating a poll vote for all Resolutions today. Eligible shareholder or proxies have
been given a voting card. For each Resolution, you need to tick the box indicating whether you are
voting for or against the Resolution, or abstaining. Link representatives will collect the voting cards at
the end of the Resolutions, prior to general business, and the votes will be counted and collated with
the postal and online votes.

For those attending the meeting online, you will be able to cast your vote by clicking ‘get voting card’ -
further instructions can be found in the online portal guide.

PricewaterhouseCoopers are acting as scrutineers and, once the result of the Resolutions have been
confirmed, these will be announced to the NZX. Moving on to the Resolutions:


SLIDE 30 – Resolution 1
Under NZSX Listing rule 3.3.11, and in accordance with the constitution of the Company, at least one
third, or the number nearest to one third, of the total number of Directors must retire by rotation at
each Annual Meeting of shareholders.

The Directors to retire are those who have been longest in office since their last election or re-election
and, if they’re eligible, they may offer themselves for re-election by shareholders at the annual meeting.

The Directors stepping down by rotation this year are myself and Debbie Birch.

As the first resolution relates to myself, I will now pass over the Chair of the meeting to Gráinne Troute.

Gráinne Troute

thl – Annual Meeting 31 October 2018 – Chairman & Chief Executive Address Page 13 of 14

Resolution 1 – Re-election of Rob Campbell
That Robert James Campbell, who retires by rotation and is eligible for re-election, be re-elected as a
Director of the Company.

I will now ask Rob to speak.

[Rob]

Thank you Rob. Are there any questions for Rob? If not, can you please cast your vote on the voting
card, or online, in relation to resolution 1?

Thank you. I will now pass back to Rob to resume as Chair of the meeting.


Rob Campbell

Thank you Gráinne. Moving onto the next resolution.

SLIDE 31 – Resolution 2
Resolution 2 – Re-election of Debbie Birch
That Debra Ruth Birch, who retires by rotation and is eligible for re-election, be re-elected as a Director
of the Company.

I will now ask Debbie to speak.

[Debbie]

Thank you Debbie. Are there any questions for Debbie? If not, can you please cast your vote on the
voting card, or online, in relation to resolution 2?


SLIDE 32 – Resolution 3
Resolution 3 – Director Remuneration
That the maximum aggregate amount of remuneration payable to all Directors taken together (in their
capacity as Directors) be increased from $650,000 per annum to a maximum of $750,000 (plus GST, if
any) per annum with this sum available to be paid to the Directors of the Company as the Board
considers appropriate and which may be payable either in whole or in part by way of an issue of
ordinary shares in the Company, provided that any issue occurs in compliance with NZX Main Board
Listing Rule 7.3.8.

I note that the Directors and their respective Associated Persons, are disqualified from voting on this
Resolution. In addition, where I have been appointed as proxy for a shareholder, I am only able to
exercise those votes in accordance with the express instructions of the shareholder – I cannot vote
undirected proxies.

thl – Annual Meeting 31 October 2018 – Chairman & Chief Executive Address Page 14 of 14
Are there any questions in relation to Resolution 3? If there are no questions, I would ask you to cast
your vote on your voting card, or online, for Resolution 3.


SLIDE 33 – Resolution 4
Resolution 4 – Auditors
That the Directors are authorised to fix the remuneration of the auditors for the ensuing year.

Are there any questions in relation to Resolution 4? If there are no questions, I would ask you to cast
your vote on your voting card, or online, for Resolution 4.


SLIDE 34 – General Business
That ends the Resolutions for this meeting. We will move on to General Business. Are there any other
items shareholders would like to raise?

There being no other matters of business, I would like to thank you all for attending and I now declare
the meeting closed and invite those of you attending in person to a light afternoon tea.


SLIDE 35 – Thank You

END


Authorised by:

Rob Campbell
Chairman, Tourism Holdings Limited

For further information contact:

Grant Webster
thl Chief Executive
Direct Dial: +64 9 336 4255
Mobile: +64 21 449 210

About thl (www.thlonline.com)

thl is a global tourism operator. We are listed on the NZX and are the largest provider of holiday vehicles for rent and sale in Australia and New Zealand. In the USA
we own and operate the Road Bear RV Rentals and Sales brand. Within New Zealand we operate Kiwi Experience and the Discover Waitomo group which includes
Waitomo Glowworm Caves, Ruakuri Cave, Aranui Cave and The Legendary Black Water Rafting Co. In 2012 thl entered in a joint venture to form RV Manufacturing
Group LP, now Action Manufacturing LP, New Zealand’s largest motorhome and specialist vehicle manufacturer. Action Manufacturing LP has operations both in
Auckland and Hamilton. In February 2015, thl acquired 49% of Just go Motorhome Rentals & Sales, based in the UK. In November 2015, thl launched Mighway – a
sharing economy platform for motorhome owners. In January 2017, thl acquired El Monte RV Rentals and Sales in the USA.