TRA Presentation NZX Retail Investor evening

Turners
NZX Retail
Investor
Evening
September 2019

Key Points
•Large market with sizeable forward demand
•Generating strong sustainable profits with
excellent dividend yields
•Focus on simplification and capital efficient
growth
•Strong brand, in expansion mode
Todd Hunter CEO
2• NZX RETAIL INVESTOR ROADSHOWPRESENTATION

3• NZX RETAIL INVESTOR ROADSHOW
PRESENTATION
Market
Update

The used car market is large and there are is good forward
demand
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 orolder
1.13m
used cars were traded to the year
ended 31 March 2019 down 1%
on year ended Mar18
13,000EVs
The number of EVs registered in
New Zealand to end of March2019
18.5years
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
140,000cars
Used cars imported from Japan for
year ended Mar 2019 down 11%
on Mar18
204,000
Average odo reading for a scrapped
car in the light fleet for2017
4• NZX RETAIL INVESTOR ROADSHOWPRESENTATION

5• NZX RETAIL INVESTOR ROADSHOW
PRESENTATION
Highlights
&
Divisional
Review

A quick look back in time...
As at March YE20122013201420152016201720182019
ShareholderFunds ($m)243374121130169214226
Total Assets ($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
Shareson issue 17.6m20.8m49.4m63.1m63.4m74.5m84.8m86.9m
Shareprice$0.70$2.70$2.40$3.20$3.04$3.63$3.01$2.27
6• NZX RETAIL INVESTOR ROADSHOWPRESENTATION
Numbers adjusted for 1-10 share swap in 2014

FY19 resultssnapshot
NPATA–isnetprofitaftertaxandtaxadjustedaddbackofamortisedacquisitionintangiblesIE.Autosureportfoliosinforceandcustomer
relationships.
Revenue(millions)
Net profit aftertax(millions)
Revenue
$336.6m+2%
Shareholders’Equity
$226.4m as at 31Mar19
Net Profit BeforeTax
$29.0m-7%
($33.6m exclBRC brand write down)
FinalDividend 5.0cps
Total FY Dividend17.0cps
Net Profit After Tax
$22.7m-3%
Earnings PerShare
26.3cps
(FY18 29.3cps,-10%)
NPATA
$24.3m-3%
0
50
100
150
200
250
300
350
400
FY15FY16FY17FY18FY19
2H
1H
0
5
10
15
20
25
FY15FY16FY17FY18FY19
2H
1H
7• NZX RETAIL INVESTOR ROADSHOWPRESENTATION

Strong dividend yield will be ongoing
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 9.3% at indicative current
price of $2.32
8• NZX RETAIL INVESTOR ROADSHOWPRESENTATION
Note –Dividends fully
imputed from FY17 on

•Reduction in cash balances due to
investment of insurance reserves into
longer dated termdeposits
•Changein Finance Receivables reflects
growth in Oxford offset by rundown in MTF
non-recourse ledger
•Property, plant and equipmentincrease due
to development of new sites in Whangarei
and North Shore
•Insurance contract liabilities increase
reflect growth in Autosure policysales
$000sFY19FY18
Cash and cashequivalents
15,86625,145
Financial assets at fairvalue
66,25253,378
FinanceReceivables
290,017289,799
Inventory
38,85938,596
Property, Plant andEquipment
39,08435,945
OtherAssets
37,10037,887
IntangibleAssets
166,734170,982
TOTALASSETS
653,912651,732
Borrowings
312,863317,373
OtherPayables
31,72934,875
DeferredTax
13,91818,786
Insurance ContractLiabilities
51,78548,376
OtherLiabilities
17,24317,999
TOTALLIABILITIES
427,538437,409
Balancesheet
9• NZX RETAIL INVESTOR ROADSHOWPRESENTATION

Strategic
Review

11• NZX RETAIL INVESTOR ROADSHOWPRESENTATION
Strength of
Turnersbrand
Complexity of
existingbusiness
Growth of NZ’s
ageing vehiclefleet
Demandfor
digitisation
Primarydrivers

Industry-leadingbrand
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%
12• NZX RETAIL INVESTOR ROADSHOWPRESENTATION

Summary of ourplan...
Our strategy isto...
•Simplify thebusiness
•Accelerate growth in a capital efficientway
•De-risk by focusing on our corebusiness and strengths
This will enable usto...
•Significantly increase market share in the core business of Auto retailand
•Participate in new and innovative auto adjacentopportunities
For our key stakeholders thismeans...
•Sharpen our focus on meeting customersneeds
•Improving the efficiency of ourbusiness
•Reducing cyclical swings in our business, especially aroundcredit
•Increasing the returns we deliver to ourshareholders
A capital efficient
growth strategy
for Turners
Group, with an
increasedfocus
onTurners’core
autoretail
business
13• NZX RETAIL INVESTOR ROADSHOWPRESENTATION

Focus on a single brandstrategy
Leverage our strong brands, remove complexity and play to strength in auto
retail.
ConsumerbrandsWholesale/B2Bbrands
14• NZX RETAIL INVESTOR ROADSHOWPRESENTATION

15• NZX RETAIL INVESTOR ROADSHOWPRESENTATION
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
growthmodel
•Profits from captive
business aredeferred
•Reduces channelconflict
•High return capital
business
•Non-auto therefore lower
alignment with auto-centric
strategy
Short termreviewMedium termreview
16• NZX RETAIL INVESTOR ROADSHOWPRESENTATION

Improve the customerexperience
Expand our retailfootprint
Continue to expand our footprint in high potential locations
across thecountry.
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 customergroups.
Use data to source moreeffectively
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 maximiseyield.
Bulkbuying
Leverage our scale and balance sheet to drive down sourcing
costs by buying in bulk (i.e. 100 cars at atime).
Turners Cars
Turners
Commercia
Turners Cars
TurnersCommercial
New PlannedBranches
17• NZX RETAIL INVESTOR ROADSHOWPRESENTATION
Turners Auto Group Owned Properties
Whangarei(8,000m2)Turners Cars
North Shore Cars (8,500m2)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 ~147,000m2to ~220,000m2in
next 2 years through opening 9 new sites
North Shore -AKLRe-opening of Turners’ Auto-Retail flagship store July 20198,524m2
DunedinRe-opening of Turners’ Auto-Retail flagship store Dec 20199,025m2
Westgate-AKLPart of wider Auckland expansion June 20208,500m2
Mt Richmond -AKLProcessing and Retailing June 202010,300m2
Christchurch EastTurners Auto-Retail expansion 202010,000m2
PukekohePart of wider Auckland expansion 202110,000m2
NelsonPart of the regional expansion strategy 20218,000m2
RotoruaPart of the regional expansion strategy 20218,000m2
TimaruPart of the regional expansion strategy 20218,000m2
Committed branches
18• NZX RETAIL INVESTOR ROADSHOW
PRESENTATION

Branch Re-location –Whangarei (Owned site)
•PurchasedoldPlacemakerssite
•Increasedfootprintfrom6,500m2
to8000m2
•Highprofilecornersite
•Higher%ofretailsalesatnew
site,morefinancedeals,higher
marginsonownedinventory
•3monthstoJune85%increase
inoperatingprofitJunYTD
19• NZX RETAIL INVESTOR ROADSHOWPRESENTATION

New Branch –New Plymouth
•Leasedsite
•Highprofilecornersiteonbusy
arterialof4,600m2
•180+carsite
•Highyardtobuildingratio
21• NZX RETAIL INVESTOR ROADSHOWPRESENTATION

Relocation –North Shore (Owned site)
•Ownedanddevelopedsiteincar
precinctofWairauValley
•HighprofilesiteonArchersRoad
8,500m2
•300+carsite
•Highyardtobuildingratio
•OpenslateJuly
23• NZX RETAIL INVESTOR ROADSHOW
PRESENTATION

New Branch –Hamilton
•Highprofilecornersiteacrossfrom
TheBase
•5,000m2
•200+carsite
•OpensinAugust
•TurnersCarsbrandedsite
•Utilisesstackedcontainersfor
brandstatement
24• NZX RETAIL INVESTOR ROADSHOWPRESENTATION

Adjacentopportunities
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 automarkets
•Turners brand would makesense
•Strong interest in platformor aggregator
typemodels
•Must significantly improve the way
customer needs aremet
TurnersGroup
Leverage scale,
brand, data assets
andnetwork
Providecapital
Provide minority
funds, mentoring and
support
Partnerships,
Platforms,Investments,
Newmodels
Improve customer experience
Can help lowercosts
Can help with
disruptiveforces
26• NZX RETAIL INVESTOR ROADSHOWPRESENTATION

Innovation -Investment in Collaborate (CL8.ASX)
•InvestedAUD$1millionfor12.13%stakein
CollaborateCorp(CL8.ASX)
•TurnersappointadirectortotheCollaborate
board.
•Wanttounderstandalternativeownership
models
•Collaborate’scorebusinesscentresaroundthe
rapidlyevolvingcarsharingmarket
withDriveMyCar,Australia’sleadingpeer-to-
peercarrentalbusiness,complementedby
Carly,Australia’sfirsttrulyflexiblecar
subscriptionoffering.
•Thisisthefirstofaseriesofpotential
investmentsbyTurnersunderthepillarof
innovationandventures
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
27• NZX RETAIL INVESTOR ROADSHOW
PRESENTATION

Summary
•Large market with sizeable forward
demand
•Generating strong sustainable profits with
excellent dividend yields
•Focus on simplification and capital efficient
growth
•Strong brand, in expansion mode
28• NZX RETAIL INVESTOR ROADSHOWPRESENTATION

29• NZX RETAIL INVESTOR ROADSHOW
PRESENTATION
Questions

30• FY20 INVESTOR ROADSHOW
PRESENTATION
Contact
ToddHunter-CEO
T: 64 21 722818
E:todd.hunter@turners.co.nz
Aaron Saunders -CFO
T: 64 274938794
aaron.saunders@turners.co.nz

Disclaimer
Turners Automotive Groupthe (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 ofsecurities.
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 regulatorypolicies;
II.The occurrence of catastrophic events with a frequency or severity exceeding ourestimates;
III.The legalenvironment;
IV.Loss of services of any of the company’sofficers;
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
identifyforward-lookingstatements. Recipients of this document are cautioned not to place undue reliance on these forward-looking statements,
which speak only as of their dates. The companyundertakes no obligation to update or revise any forward-looking statements, whether as a
result of new information, future events orotherwise.
31• FY20 INVESTOR ROADSHOWPRESENTATION