Market update on USA performance pre Annual Meeting

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



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21 October 2019


MEDIA | NZX RELEASE
TOURISM HOLDINGS LIMITED (thl)

MARKET UPDATE

“Update on USA performance pre Annual Meeting ”

As previously indicated to the market, the USA vehicle sales market has been weaker over the past year
than in previous years, and has impacted results accordingly. As part of the preparation for its 2019
Annual Meeting, thl has reviewed its FY20 financial forecast and concluded that if the most recent trend
in the USA market continues throughout the remainder of FY20, it is likely to have a material impact on
thl’s FY20 net profit compared to market expectations. It is not clear whether or not this is a likely
outcome as we will need to see the results of the North America springtime, a period when the peak retail
buying season starts, but it is a possibility.

Within thl’s USA business, the average vehicle sales margin in the first quarter of FY20 has been down
approximately 40% on the prior year, while vehicle sales by units are in line with the prior year. Margin
pressure is being driven by some large volume discounts in the wholesale market, and general retail price
pressure. This is an issue across the market for all participants. thl is taking active steps to manage fleet
and sales at all levels, and we consider that the business is performing well on a comparative basis.

Due to the current uncertainty and volatility in the USA market, thl will not be providing a specific
guidance range for its FY20 result at the 2019 Annual Meeting.

If these market dynamics continued, then our current expectation is that the FY20 NPAT result would be
below the FY19 ordinary NPAT (exclusive of non-recurring items) result of $27.9M. The FY19 ordinary
result excluded the impact of a non-recurring $1.9M deferred tax benefit.

Beyond the USA business, expectations remain as previously indicated. Rental forward bookings in all
businesses are positive into the 2020 calendar year, and are up year to date compared to the 2019
calendar year. Vehicle sales in New Zealand and Australia are broadly line with expectations. No
significant changes to prior performance are expected from the New Zealand tourism businesses.

Further details regarding thl’s overall performance and business development progress will be provided
at the 2019 Annual Meeting, which will be held at 2pm on Wednesday 23 October 2019 at the Heritage
Hotel, Auckland.

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ENDS

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 RVs for rent and sale in Australia and
New Zealand, and the second largest in North America. In the USA we own and operate the Road Bear RV Rentals & Sales brand
and El Monte RV Rentals & Sales. thl is a 50:50 partner, along with Thor Industries Inc. - the largest RV manufacturer in North
America (a NYSE listed entity), in the joint venture company Togo Group – Togo Group is a global digital platform for the RV
industry; it owns and operates several brands including Roadtrippers, Mighway and Togo RV. In the UK, thl owns 49% of Just go
Motorhomes. 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. thl is a joint venture partner in Action
Manufacturing LP, New Zealand’s largest motorhome and specialist vehicle manufacturer.