Turners FY20 Investor Roadshow

Turners
FY20 Investor
Roadshow
July & August 2019

Agenda and introductions
Aaron Saunders CFO
•Market Update
•Highlights and Divisional Review
•Strategy
•Focus Areas and Outlook
Todd Hunter CEO
2• FY20 INVESTOR ROADSHOW PRESENTATION

3 • FY20 INVESTOR ROADSHOW PRESENTATION
Market
Update

NZ used car market still at strong historic levels
•After a period of growth used car change of
ownership numbers have plateaued.
•Underlying demand still strong with more cars
exiting fleet due to cost of repairs increasing and
a stricter WoF regime from NZTA.
•Mar 2020, all vehicles imported into the
country required to have ESC, impact in sub
$8k budget segment.
•Margins have recovered from low point
Oct/Nov 2018.
•Industry is going through a period of
consolidation Registered dealers down 5%
cf. 2018
•Less than 10% of Turners volume comes
from used imports
Source: NZTA – Used Car Change of Ownership Stats
Annual registrations of used, ex-overseas vehicles
Annual changes in used vehicle ownerships
0
50,000
100,000
150,000
200,000
250,000
010203040506070809101112131415161718
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
010203040506070809101112131415161718
4• FY20 INVESTOR ROADSHOW PRESENTATION

The Kiwi careconomy
3.85m
Light vehicles in the
New Zealand vehicle
fleet
953,000
The number of cars in the light vehicle
fleet that are 20 years or older
1.13 m
used cars were traded to the year
ended 31 March 2019 down 1%
on year ended Mar 18
13,000 EVs
The number of EVs registered in
New Zealand to end of March 2019
18.5 years
The average age light vehicles
were scrapped from fleet was
19.5 years for an import and 17.5
years for New Zealand new in
2017
140,000 cars
Used cars imported from Japan for
year ended Mar 2019 down 11%
on Mar 18
204,000
Average odo reading for a scrapped
car in the light fleet for 2017
5• FY20 INVESTOR ROADSHOW PRESENTATION

Our industry dynamics are changing
The used-car industry is at the cusp of some significant changes, creating both opportunities and
threats.
Customer expectations
Customer experience is vital
Aggregator & comparison sites
Transparency and a higher value
offering
Digital disruption
Big data and technology proliferating
the retail landscape
Industry consolidation
Key industry dynamics are creating
headwinds
Increased regulation
Data privacy, finance services
regulation & emissions standards
Alternative ownership models
Rise of subscription style services for car
ownership and demand for flexible
solutions
Move from offline to online
Less demand for physical visits to
dealerships and a move to digital self-
service channels
6• FY20 INVESTOR ROADSHOW PRESENTATION

7 • FY20 INVESTOR ROADSHOW PRESENTATION
Highlights &
Divisional
Review

A quick look back in time...
As at March YE20122013201420152016201720182019
Shareholder Funds ($m)243374121130169214226
Total Assets ($m)74104127329367557652654
NPBT ($m)-1.5-0.14.919.021.624.631.029.0
EPS (cents)(9.1)9.020.432.824.725.529.326.2
Shares on issue 17.6m20.8m49.4m63.1m63.4m74.5m84.8m86.9m
Share price$0.70$2.70$2.40$3.20$3.04$3.63$3.01$2.27
8• FY20 INVESTOR ROADSHOW PRESENTATION
Numbers adjusted for 1-10 share swap in 2014

FY19 resultssnapshot
NPATA – is net profit after tax and tax adjusted add back of amortised acquisition intangibles IE. Autosure portfolios inforce and customer
relationships.
Revenue (millions)
Net profit after tax (millions)
Revenue
$336.6m
+2%
Shareholders’ Equity
$226.4m as at 31 Mar 19
Net Profit Before Tax
$29.0m
-7%
($33.6m excl BRC brand write down)
Final Dividend 5.0 cps
Total FY Dividend 17.0cps
Net Profit After Tax
$22.7m
-3%
Earnings Per Share
26.3cps
(FY18 29.3cps,
-10%
)
NPATA
$24.3m
-3%
0
50
100
150
200
250
300
350
400
FY15 FY16 FY17 FY18 FY19
2H
1H
0
5
10
15
20
25
FY15 FY16 FY17 FY18 FY19
2H
1H
9• FY20 INVESTOR ROADSHOW PRESENTATION

Dividends
Dividend per Share (Cents)
5.0
10.0
13.0
14.5
15.5
17.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
FY13FY14FY15FY16FY17FY18FY19
•Dividend Policy Change: Increase in pay out ratio
to 60% to 70% of NPAT
•Reminder we pay quarterly dividend
•FY19 full year dividend of 17.0 cents per share
(FY18: 15.5 cps imputed)
•4.6m shares issued to convertible bond holders
•2.6m shares purchased during Share Buy Back
programme reducing issued shares by 3%.
Directors have resolved to recommence share buy
back.
•Gross dividend yield of 10.8% at indicative current
price of $2.18
10• FY20 INVESTOR ROADSHOW PRESENTATION
Note –Dividends fully
imputed from FY17 on

•Reduction in cash balances due to
investment of insurance reserves into
longer dated term deposits
•Change in Finance Receivables reflects
growth in Oxford offset by rundown in MTF
non-recourse ledger
•Property, plant and equipment increase
due to development of new sites in
Whangarei and North Shore
•Insurance contract liabilities increase
reflect growth in Autosure policy sales
$000sFY19FY18
Cash and cash equivalents
15,86625,145
Financial assets at fair value
66,25253,378
Finance Receivables
290,017289,799
Inventory
38,85938,596
Property, Plant and Equipment
39,08435,945
Other Assets
37,10037,887
Intangible Assets
166,734170,982
TOTAL ASSETS
653,912651,732
Borrowings
312,863317,373
Other Payables
31,72934,875
Deferred Tax
13,91818,786
Insurance Contract Liabilities
51,78548,376
Other Liabilities
17,24317,999
TOTAL LIABILITIES
427,538437,409
Balance sheet
11• FY19 RESULTS & STRATEGY PRESENTATION

New Lynn rebranded with Turners Cars
Automotive retail
Revenue 225.7m +1.1%, Segment Profit $18.3m +10.2%
Buy Right Cars - Revenue $63.4m, up 7%. Segment profit $(0.9m) loss, down 136%
Turners Group - Revenue $162.3m, down 1%. Segment profit $19.1m, up 35.7%
•Profit includes $3.4m of one off gains.
•Continuing increase in BuyNow (retail sales) – up 3% YoY
•NPS continuing to track up 61% at year end compared to 49% at half year.
•A number of cost out initiatives in place, including closing down the under-
performing Lambie Drive Branch.
•Transition to Turners Cars brand has been completed swiftly and cost
effectively ($250k).
•Margins on local purchased stock improved 13% on FY18 to $486 per unit.
Margins on import stock dropped 64% to $393 per unit over FY18.
•Average margin per unit down 10% cf. FY18.
•Branch expansion and relocation plans progressing well
12• FY20 INVESTOR ROADSHOW PRESENTATION

Finance
•Directing Turners Cars lending into Oxford milestone
achievement in FY19, new lending from Turners at
$28M.
•MTF non-recourse book in run out, Mar 19 net
receivables balance at $35m, down 43%.
•Impairment expense in OFL is up 25% to $7.4m
•Continued progress on repositioning towards higher
quality borrowers through progressive tightening of
credit policy and introduction of comprehensive credit
scoring in Mar 19.
•Active dealers up 11% to 419 cf FY18.
•Continue to invest and innovate through Auotapp
platform.
•Impairments on high risk category loans not
improving... Total instalment arrears excl MTF non
recourse impairments 2.0% (1.6% FY18).
Revenue $44.2m +11%, Segment Profit $11.1m -5%
Improving Customer Credit Scores
Average customer VEDA credit score
Net Interest Margin
300
350
400
450
500
550
600
1H172H171H182H181H192H19
9.4%
9.4%
8.9%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
11.0%
FY17FY18FY19
13• FY20 INVESTOR ROADSHOW PRESENTATION

Insurance
•Improvements in loss ratios across all insurance
products. Combined loss ratio 62% (FY18: 68%), MBI
loss ratio at 72% (FY18 at 78%).
•New retail selling system completed
•Continued review of dealers portfolio performance
for risk pricing and review of incentives and
rebates.
•Continued investment in training dealer staff to
improve sales of PPI, GAP and MVI and support
good conduct practises and adherence to
compliance requirements.
•Result includes gain on sale in investment property of
$3.0m
•Investment returns improved by 38% over FY18.
•AM Best has confirmed financial strength rating of B+
(good) but upgraded outlook from stable to positive.
CCI Product has discontinued
Revenue $48.5m +3%, Segment Profit $8.2m +126%
Net Earned Premium FY18 to FY19 ($000)
14• FY20 INVESTOR ROADSHOW PRESENTATION

Creditmanagement
•28% more outbound debtor actions taken in FY19
2.1m (FY18 1.64m)
•Total debt load up 15% to $237m, commission earned
from debt collected up 2% to $9.0m.
•Product sales to SMEs up 7% to $8.5m.
•Integration into Xero developed and first debts
being loaded via the interface.
•Recruitment and retention in contact centre has been
challenging which has been addressed through
improving remuneration. This has been offset through
efficiencies created through use of Dialler technology.
•Debt Collection Scorecard “Focus” continues to be
enhanced and refined.
•Debtor self service portal in development.
Revenue $18.2m –3% Segment Profit $6.3m +4%
Debt Collected FY18 to FY19 ($m)
15• FY20 INVESTOR ROADSHOW PRESENTATION

Strategic
Review

Summary of ourplan...
Our strategy is to...
•Simplify the business
•Accelerate growth in a capital efficient way
•De-risk by focusing on our core business and strengths
This will enable us to...
•Significantly increase market share in the core business of Auto retail and
•Participate in new and innovative auto adjacent opportunities
For our key stakeholders this means...
•Sharpen our focus on meeting customers needs
•Improving the efficiency of our business
•Reducing cyclical swings in our business, especially around credit
•Increasing the returns we deliver to our shareholders
A capital efficient
growth strategy
for Turners Group,
with an increased
focus onTurners’
core auto retail
business
17• FY20 INVESTOR ROADSHOW PRESENTATION

18• FY20 INVESTOR ROADSHOW PRESENTATION
Strength of
Turners brand
Complexity of
existing business
Growth of NZ’s
ageing vehicle fleet
Demand for
digitisation
Primary drivers

Industry-leading brand
With over 50 years in the market, we are the largest and most-trusted brand in the
industry.
Brand awareness in
the New Zealand
market
View Turners as the most
trustworthy used car dealer in
New Zealand
Turners
Other
Buy Right
Cars
Enterprise
Motors
2 Cheap
Cars
Turners
90%
45%
2 Cheap
Cars
60%21%
Enterprise
Motors
52%8%
4%
3%
Buy Right
Cars
34%
Pacific
Motors
Source: TRA Qualitative and Quantitative Study,
2017.
30%
90%
45%
19• FY20 INVESTOR ROADSHOW PRESENTATION

Complexity of existingbusiness
•Our business model has the perception of
being complicated, compounded by multi-
brands and some low synergy businesses.
•Turners business model and operating
performance can be difficult to understand and
compare.
•Disproportionate resources and capital are
being used in lower ROE segments of the
business.
20• FY20 INVESTOR ROADSHOW PRESENTATION

10
12
14
16
18
20
22
2001 2003 2005 2007 2009 2011 2013 2015 2017
NZ’s ageing and growing vehiclefleet
A large proportion of cars in New Zealand are at the end of their economic
life.
14 years
Average age of light
fleet in New Zealand
24%
(953,000 cars) are 20+
old
Source: Ministry of Transport,
2018.
AUUSNZ
NZ newUsed imports
14yrs
11yrs
10yrs
17.5 – 19.5years
Average age of exit
(NZ new – used)
Average light vehicle scrappage age
21• FY20 INVESTOR ROADSHOW PRESENTATION

Increased digitisation
Of all internet users in NZ
86% are using YouTube
and 85% are using
Facebook
Source: Global WebIndex, 2018
The average car buyer used
to visit five dealerships.
Now, with online research,
that number has dropped to
two
Source: Google TNS Auto Study, 2016
Before
Personal contact with dealers,
combined with online research
and configuration, has been
common
Now
Digital natives are becoming
mainstream car buyers who
follow omnichannel
experiences
22• FY20 INVESTOR ROADSHOW PRESENTATION

Strategic initiatives
SimplifyDe-RiskGrow
•Single brand strategy
in Auto Retail
•Single brand and system
strategy in finance and
insurance
•Run down non-core life
insurance products
•Strategic review for business
units where we don’t hold
dominant market position
•Continue strategy of
writing higher quality
loans
•Early adoption of
comprehensive credit
reporting
•Focus on loan origination
rather than underwriting
credit risk
•Active engagement
with regulators
•Expand auto retail footprint
•Shift marketing investment
into digital platforms
•Leverage data analytics to
buy and sell smarter
•Evolve the customer
experience in person and
online
•Look for innovation
and disruptive
opportunities
23• FY20 INVESTOR ROADSHOW PRESENTATION

Focus on a single brandstrategy
Leverage our strong brands, remove complexity and play to strength in auto
retail.
Consumer brandsWholesale/B2B brands
24• FY20 INVESTOR ROADSHOW PRESENTATION

25• FY20 INVESTOR ROADSHOW PRESENTATION
Buy Right Cars brand change out completed in May

Strategic review of businessunits
We are undertaking a
review of non-core
businesses with lower
synergies to the core auto
business.
•Capital intensive
growth model
•Profits from captive
business are deferred
•Reduces channel conflict
•High return capital
business
•Non-auto therefore lower
alignment with auto-
centric strategy
Short term reviewMedium term review
26• FY20 INVESTOR ROADSHOW PRESENTATION

Improve the customerexperience
Expand our retail footprint
Continue to expand our footprint in high potential locations
across the country.
Increase our brand reach with digital marketing
We
will increase our marketing investments and shift
existing marketing dollars to online channels (especially
social) to improve efficiency and reach new customer groups.
Use data to source more effectively
Invest in extracting insights from our data assets to help
identify the right cars to buy and the right price to sell them
at to maximise yield.
Bulk buying
Leverage our scale and balance sheet to drive down sourcing
costs by buying in bulk (i.e. 100 cars at a time).
Turners Cars
TurnersCommercia
Turners Cars
TurnersCommercial
New Planned Branches
27• FY20 INVESTOR ROADSHOW PRESENTATION
Turners Auto Group Owned Properties
Whangarei (8,000m2)Turners Cars
Mt Richmond Auckland (10,500m2)Turners Cars
Roscommon Road Auckland (10,000m2)Turners Trucks
Porirua (17,000m2)Turners Cars
Palmerston North (1,850m2)Turners Trucks
Christchurch (9,000m2)Turners Damaged

Growth in footprint from ~147,000m
2
to ~220,000m
2
in
next 2 years through opening 9 new sites
North Shore - AKL Re-opening of Turners’ Auto-Retail flagship store July 20198,524m
2
DunedinRe-opening of Turners’ Auto-Retail flagship store Dec 20199,025m
2
Westgate - AKL Part of wider Auckland expansion June 20208,500m
2
Mt Richmond - AKL Processing and Retailing June 202010,300m
2
Christchurch East Turners Auto-Retail expansion 202010,000m
2
PukekohePart of wider Auckland expansion 202110,000m
2
NelsonPart of the regional expansion strategy 20218,000m
2
RotoruaPart of the regional expansion strategy 20218,000m
2
TimaruPart of the regional expansion strategy 20218,000m
2
Committed branches
28• FY20 INVESTOR ROADSHOW PRESENTATION

Branch Re-location – Whangarei (Owned site)
•Purchased old Placemakers site
•Increased footprint from 6,500m2
to 8000m2
•High profile corner site
•Higher % of retail sales at new site,
more finance deals, higher margins
on owned inventory
•3 months to June 85% increase in
operating profit JunYTD
29• FY20 INVESTOR ROADSHOW PRESENTATION

New Branch – New Plymouth
•Leased site
•High profile corner site on busy
arterial of 4,600m2
•180+ car site
•High yard to building ratio
31• FY20 INVESTOR ROADSHOW PRESENTATION

New Branch – Wellington City
•Leased site
•Pop up store concept
•High profile corner site on busy arterial
of 1,200m2
•Branding and lead generation for larger
Porirua site
33• FY20 INVESTOR ROADSHOW PRESENTATION

Relocation – North Shore (Owned site)
•Owned and developed site in car
precinct of Wairau Valley
•High profile site on Archers Road
8,500m2
•300+ car site
•High yard to building ratio
•Opens late July
35• FY20 INVESTOR ROADSHOW PRESENTATION

36• FY20 INVESTOR ROADSHOW PRESENTATION

New Branch – Hamilton
•High profile corner site across from
The Base
•5,000m2
•200+ car site
•Opens in August
•Turners Cars branded site
•Utilises stacked containers for brand
statement
37• FY20 INVESTOR ROADSHOW PRESENTATION

Proposed New Branch – Westgate Auckland
•Leased site inWestgate Auckland
•High profile corner site of 8,500m2
•300+ car site
•High yard to building ratio
X
39• FY20 INVESTOR ROADSHOW PRESENTATION

New branch example – Westgate Auckland
40• FY20 INVESTOR ROADSHOW PRESENTATION

Adjacent opportunities
Turners has a strong balance sheet,
large customer base and rich data
assets which put it in a unique
position to partner and invest to
harness the changing market
dynamic.
Criteria for Investment /Partnership
•Highly adjacent to auto markets
•Turners brand would make sense
•Strong interest in platform or aggregator
type models
•Must significantly improve the way
customer needs are met
Turners Group
Leverage scale, brand,
data assets and
network
Provide capital
Provide minority
funds, mentoring and
support
Partnerships, Platforms,
Investments,
New models
Improve customer experience
Can help lower costs
Can help with
disruptive forces
41• FY20 INVESTOR ROADSHOW PRESENTATION

Innovation - Investment in Collaborate (CL8.ASX)
•Invested AUD$1 million for 12.13% stake in
Collaborate Corp (CL8.ASX)
•Turners appoint a director to the Collaborate
board.
•Want to understand alternative ownership models
•Collaborate’s core business centres around the
rapidly evolving car sharing market
withDriveMyCar, Australia’s leading peer-to-peer
car rental business, complemented byCarly,
Australia’s first truly flexible car subscription
offering.
•This is the first of a series of potential investments
by Turners under the pillar of innovation and
ventures
Overseas
Now
12 OEMs and 26 non-OEMs offering vehicle
subscription in Europe and USA
Forecast
10% of all new vehicles to be offered via
vehicle subscription in 2025 -
Frost and Sullivan 2019
42• FY20 INVESTOR ROADSHOW PRESENTATION

43 • FY20 INVESTOR ROADSHOW PRESENTATION
Focus &
Outlook

Focus and Outlook
Auto retail
•Expand
footprint
•Invest in digital
and social
marketing
channels
•Leverage
data
analytics
Insurance
•Focus on auto-
retail insurance
•Look for
partnership
opportunities to
increase
distribution
•Run down non-
core life insurance
products
Finance
•Short term strategic
review
•Continue to focus on
risk pricing
•API development
to broaden
distribution
Credit
•Medium term
strategic
review
•System
integration to
improve debt
load process
Adjacent
opportunities
•Launch vehicle
subscription in NZ
•Investigate, assess
and invest in other
opportunities
All business divisions tracking ahead of budget and ahead of FY19 at end of Q1
44• FY20 INVESTOR ROADSHOW PRESENTATION

45 • FY20 INVESTOR ROADSHOW PRESENTATION
Questions
FY20 INVESTOR ROADSHOW
PRESENTATION

46• FY20 INVESTOR ROADSHOW PRESENTATION
Contact
Todd Hunter - CEO
T: 64 21 722 818
E: todd.hunter@turners.co.nz
Aaron Saunders - CFO
T: 64 274938794
aaron.saunders@turners.co.nz

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.
47• FY20 INVESTOR ROADSHOW PRESENTATION