Strong FY20 result for Turners, and Q1 recovery underway

Company Announcement
18 June 2020

Strong FY20 result for Turners, and Q1 recovery underway

 NPBT in line with pre Covid-19 guidance at $29.1m (FY19: $29.0m)
 Underlying NPBT increased 11% to $28.8m (FY19: $26.0m)
 Group revenue decreased 1% to $333m
 Solid gains in the finance, insurance & credit management businesses
 Auto retail impacted by slowdown in last 6 weeks of FY20 due to Covid-19
 Solid market share gains, within the context of a softening used car market
 Final dividend (incorporating Q3 deferred dividend) of 6.0cps declared, taking full year
dividends to 14.0cps (FY19: 17.0 cps)
 Positive response to Covid-19 situation from Turners staff, landlords and business partners.
Trading levels so far ahead of “best case” scenarios modelled in early April. Robustness of
diverse portfolio of companies is proving its worth
 Plan to continue to progress strategic plan with focus on increasing auto retail market share,
continued retail optimisation, ongoing de-risking of Oxford Finance, and market-leading
technology investments


Financial results

Turners Automotive Group (NZX: TRA) delivered an 11% increase in underlying net profit
1
before tax
(NPBT) from $26.0m to $28.8m for the year ended 31 March 2020. Revenue decreased by 1% to $333m
(FY19: $337m).

“We are really pleased with the growth in underlying profits over FY20, despite the early impact of Covid-
19 in the last 6 weeks of the financial year” said CEO Todd Hunter. “We set about at the beginning of
FY20 to really push for organic growth. We have achieved that in 3 out of our 4 businesses and were on
track to achieve this with 4 out of 4 until Covid-19 hit.”

Auto Retail has continued to grow retail market share and we have increased the numbers of “owned
inventory” sold by 8% year-on-year but a reduction in consignment business and impact of Covid-19 has
resulted in a small decrease in revenue. Finance revenues have grown as a result of directing Turners
origination into Oxford. Insurance revenue has reduced due to the one-off impact of property sale in
FY19 ($3.0m) and the further risk optimisation we are running through the portfolio. We expect
consolidation in this industry and we note that during the GFC, the number of dealers reduced by around
15%. Turners is in a strong position to grow market share.

Reported NPBT was at $29.1m. This was in-line with guidance of $28- $30m and stable on FY19 NPBT of
$29.0m. Net profit after tax (NPAT) was $21.0m (FY19: $22.7m). Underlying NPBT increased by 11% to
$28.8m. This increase was driven by gains made in the Insurance, Finance and Credit divisions, partially
offset by a small drop in Auto Retail due to Covid-19.

Reported earnings per share was down 8% to 24.4 cents per share largely reflecting a higher effective
tax rate in FY20. Shareholder equity decreased to $223m (FY19: $226m) as at 31 March 2020.


1
See slide 7 in Annual FY20 Results Presentation for reconciliation between reported and underlying profit.

Company Announcement
18 June 2020

Dividend
In March 2020 the Board deferred the Q3 dividend payment as a cautionary step due to the uncertainty
surrounding the length of a L4/L3 lockdown. Now that we have April and May behind us and a better
understanding of how business is tracking, the board have declared a final fully imputed dividend
incorporating the Q3 deferred dividend of 6.0 cents per share resulting in full year dividends of 14.0
cps. The board believes this best ensures our ability to navigate the volatility and also the optionality
to take advantage of any upcoming opportunities. Based on a FY20 payout of 14.0 cps (fully imputed)
to shareholders this represents a gross dividend yield of 9.8% at an indicative share price of $1.98. The
board’s intention at this stage is to continue dividend payouts at the level of the current policy for FY21
which is 60-70% of net profit after tax.
COVID-19 Response
The Turners team has reacted in a positive manner through the pandemic. Our business was hit hard
during April (57% drop in revenue compared to April 19). However, the business has recovered faster
during May than our scenario planning suggested back in April. In April three out of four businesses
were profitable and in May all four businesses were profitable. Group profit excluding the government
wage subsidy was a loss of $424,000. In May this has improved significantly to $1.58m, and June overall
is tracking ahead of June 2019 in almost every critical measure.
We have been grateful for strong levels of support from our team, our customers, our landlords and
our business partners. The sudden change brought about by COVID-19 required dynamic planning and
execution urgency. Set against the unprecedented backdrop of a high level of uncertainty, we identified
the following priorities at the end of March:
1. Ensure the safety of our people and our customers
2. Ensure the business could survive and emerge from a 3 to 6 month lockdown
3. Avoid a dilutive capital raise event if possible
4. Position ourselves to take advantage of the opportunities that will eventuate
We are very pleased that the country has emerged from highly restricted lockdown and we have
achieved our first 3 priorities. We are now focused on the opportunities to grow this business. We have
been successful in reducing costs through rental relief, government wage subsidies, staff reducing work
hours and using annual leave balances, travel and other expenditures. The used car market has shown
considerable resilience in previous downturns and early indications are supporting this theme. We
know customers will be more likely to trade with businesses who have a strong brand and reputation
like Turners and we believe this is the time to build market share.
We will continue to de-risk the finance business, following a substantial improvement in credit quality
over the last 2 years. Over and above our standard finance receivable provisions, an additional COVID-
19 overlay of $1 million has been applied to mitigate any potential increase in credit losses over the
next 12 months. With Insurance, we are focused on distribution and cost and claims management. In
Credit Management we are focused on protecting and managing the reputations of our corporate
customers like banks and government departments that we collect for.

Company Announcement
18 June 2020

Auto Retail (Turners Group): Revenue $224.9m +0%, Operating profit $13.8m -24% (FY19 $18.3)
Underlying Segment Profit $13.3m (FY19 $14.9m)
Turners’ strategy of retail optimisation and the continued transition of wholesale to retail is continuing
to deliver growth in retail market share. During all of FY20 we observed a softening of the used car
market due to reduced consumer confidence and this decline was suddenly exacerbated during late
February and March 20 due to the Covid-19 pandemic. There has been a cyclical reduction in
consignment vehicles (down 26%) through the Turners business in FY20, however this reduction was
somewhat offset by an increase in sales of owned inventory (up 6%) with average gross profits per unit
up 12% to $529. FY19 results included a one-off property settlement gain of $3.4m.

We have a particular focus on optimisation of footprint. We have made some important decisions in
regard to the Auckland footprint and will be leaving the main Penrose “supersite” in December 2020.
Around the same time, we will bring on stream new retail sites in Westgate and Mt Richmond which will
enable a better retail experience for our customers. Penrose was established as a wholesale auction
facility twenty years ago and is no longer appropriate both in terms of a cost base or customer
experience.

We have successfully integrated the Buy Right cars business into the Turners cars business over the year.
We started with the brand consolidation early in FY20 and this has now been extended to core IT and
operational systems which will enable further efficiencies.

BuyNow retail sales were down around 0.5% year on year, which considering the impact of Covid-19 we
were pleased with. A new Dunedin branch at double the previous footprint, and new sites in Westgate
and Mt Richmond should see further gains made in retail sales over the next 1-2 years, depending on the
speed of recovery in the economy.

Damaged vehicle units were up 12% with some good gains from existing insurance vendors and the
benefit from one-off events like the Timaru hail storm and flood damaged cars from Sky City.

Finance (Oxford Finance): Revenue $45.7m +4%, Operating profit $12.2m +10%
Underlying Segment Profit $12.1m (FY19 $10.3m)
The Finance business had an excellent year. This reflects our increasing focus on lending to higher quality
borrowers. Operating profit increased 10% to $12.2m (FY19: $11.1m). We introduced 3 tier risk pricing
in August 2019 which has enabled us to be much more targeted towards high quality borrowers and
tighten up at the lower end of the quality range. Premium Tier risk now accounts for 11% of our total
existing book and on a new lending basis and is around 30-40% of new lending each month. Instalment
arrears on premium tier business is tracking at around 0.01% compared to Tier 2 instalment arrears at
5.6%.

The introduction of comprehensive credit reporting alongside negative reporting is proving to be a strong
combination of data to help us profile borrowers.

The Turners Cars loan origination is going well and we are earning more margin in the group as a result
of this. Turners Cars ledger is now up to $52m and is performing exceptionally well on lending quality
metrics.

Company Announcement
18 June 2020

We also completed the strategic review process for Oxford during the year and whilst there was
significant interest in Oxford Finance above the book value of the business, in the Board’s view, the offers
received did not fully reflect the intrinsic value of the business, both today and especially factoring in the
planned organic growth. We are pleased to have such a strong annuity business within the group at this
time and have funding and equity capacity to continue growing this business over the next few years.

Insurance (Autosure): Revenue $44.1m -9%, Operating profit $6.2m -25%
Underlying Segment Profit $6.2m (FY19 $5.2m)
Insurance revenue declined 9% to $44.1m (FY19: $48.5m), with General Gross Written Premium (GWP)
down 7% to $36.8m as a result of market conditions and focusing on lower risk portfolios and vehicles.
FY19 segment profit for insurance included a one-off property gain from sale of $3m.

Underlying profit increased 19% to $6.2m (FY19: 5.2m), due to continued improvements in risk pricing
and reduction in claims loss ratios resulting from a new insurance [software] system, as well as
procurement initiatives. The combined claims loss ratio for FY20 is 62% (FY19: 64%), while the MBI loss
ratio is a 66% (FY19: 75%).

All originators are now transitioned to a new retail policy generation system and we continue to review
dealers’ portfolio performance for risk pricing. Our Reserve Bank Culture and Conduct Review work was
completed with a number of initiatives implemented ensuring we are closer to end users and understand
customer outcomes and experience in a more detailed way.

The distribution partnership announced with Heartland Bank and our respective brands, Autosure and
MARAC is now implemented and working well. We are working on similar models of distribution with a
number of other organisations which involved deep integration of our insurance system into their front
end sales system. This is an area where we will continue to invest in.

Credit Management (EC Credit Control): Revenue $17.9m -1%, Operating profit $6.5m +3%
Underlying profit same as reported segment profit
Credit management revenue decreased by 1% to $17.9m (FY19: $18.2m). Reported Operating Profit up
3% to $6.5m (FY19: $6.3m). Although debt load was down 5% for the year to $225m, the debt collected
was up 14% in FY20 to $67m driven mostly out of improved collections from Australian SME clients and
Corporate NZ clients. Commission earned from debt collected increased 11% to $10.0m.

Our traction with customers connecting to ECCC via Xero and MYOB continues to gather momentum
with over 420 customers connected now loading debt worth over $3m. We have been working closely
with our large corporate customers to help manage their reputational risk with debt collection work
during lockdown and we are expecting a significant increase in debt loaded from these customers in the
medium term. We have already seen a lift in debt load over the last few weeks from SME customers.

Digital, Data and Disruption
The investment we are making in area of digital marketing and data will continue. We have several
projects underway in the area of “lead management”. This investment enables us to identify anonymous
users on our website and be more targeted in subsequent communications with them. It also allows
platforms like Facebook to match us with customers who match people already doing business with us.

Company Announcement
18 June 2020

We also implemented an automated digital communications project which allows a more strategic and
targeted approach to people who are looking to buy or sell through Turners.

We are working on two major data projects which will help us in the area of pricing vehicles and
identifying credit risk. Both these projects leverage “off-the-shelf” cloud-based data tools, including
machine-learning. The proof of concept results are promising and we know there is a significant
opportunity in vehicle purchasing to help identify and limit our “bad buys”, as there is in the finance
business with identifying and limiting our “bad lending”.

Car subscription progress has naturally been impeded by Covid-19. We are working directly with
Collaborate Corp (CL8.ASX) in Australia to get the subscription platform set up for NZ. We have now
made the decision to brand the business under the Turners brand umbrella due to the high trust and
strong brand value and recognition attached to the Turners brand. We expect Turners Car Subscription
to be up and running in Q2.

FY21
As with many businesses there are many environmental unknowns that we will be operating in over
the next 12-24 months.
Turners has outlined five strategic themes:
1. Accelerate market share growth
Turners currently maintains ~6% market share of the used car retail transactions and will
concentrate on increasing this through optimising existing branch networks, creating new
consignment relationships, expanding its retail footprint, and taking advantage of market
consolidation.
2. Leverage the high trust Turners brand
Our scale offers multiple advantages, and trust will be even more important in the new
economy. Turners has just received the Readers Digest Winner of the Most Trusted Brand in
the NZ Used Car Dealer category. We plan to continue our focus on great customer experiences
and outcomes and keep promoting and investing in helping people understand the strength in
the Turners brand.
3. Diversified business
Turners is diversified geographically and has the advantage of annuity and activity-based
revenues. These were demonstrated during lockdown and will be proven in near to medium
term performance.
4. Digital advantage
A key differentiator is the Turners digital platform with #2 most visited auto website in the NZ
(behind only TradeMe). We will continue to make material investment in technology, data and
digital marketing.
5. Balance sheet capacity supports growth
Turners are well positioned from a funding and capital perspective to take advantage of growth

Company Announcement
18 June 2020

opportunities into the future. The board sees this as a strong comparative advantage.
Funding and Liquidity
Turners’ funding capacity is currently $428m with $78m undrawn. 69% or $242m of this debt relates to
finance receivables within Oxford Finance. During March BNZ increased the limit for the securitisation
warehouse facility from $200m to $250m (including capital contribution from TRA) to provide the
headroom for further growth in the finance book. The remaining 31% of debt ($108m) relates to
borrowings associated with property, inventory and the $25m Bond program.
At 31 March 2020 we boosted our cash balances by pre-emptively drawing down on facilities to ensure
sufficient liquidity through as we entered a Level 4 lockdown of uncertain duration. These
precautionary drawings have now been repaid.

Outlook and Guidance
We expect some fallout within the dealer segment as the year progresses. Dealer numbers have been in
decline for the last two years and we expect this decline to accelerate further over the next twelve to
twenty-four months. We know this is a good time to be pushing hard for gains in retail market share.

At beginning of lockdown we modelled out three scenarios (Worst, Likely and Best). Pleasingly we are
thus far tracking above the best case. April and May trading have been significantly better than what we
expected as we moved through alert levels faster than originally anticipated. The benefits of laser focus
on costs, rent reductions and wage subsidy have been material.

The value of having a diversified business both geographically and from a revenue stream perspective is
of huge benefit. The offset of having annuity revenue businesses (finance and insurance) within the
group are proving very valuable in turbulent times. Also the used car industry is a relatively good industry
to be operating, given it is largely domestic focused and has demonstrated resilience during previous
downturns.

Due to the level of unprecedented uncertainty in the economy it will be difficult to issue guidance for
FY21. We will update over coming months with progress, and plan to give guidance once the macro
environment plays out more clearly.

ENDS

About Turners

Turners Automotive Group Limited is an integrated financial services group, primarily operating in the
automotive sector www.turnersautogroup.co.nz

For further information, please contact:

Todd Hunter, Chief Executive Officer, Turners Automotive Group Limited, Mob: 021 722 818
Media Liaison and Assistance: Jackie Ellis, Mob: 027 246 2505

---

Results announcement
Results for announcement to the market
Name of issuerTurners Automotive Group Limited
Report period12 months to 31 March 2020
Previous reporting period12 months to 31 March 2019
CurrencyNZD
Amount (000s)Percentage change
Revenue from continuing operations$332,1741%
Total revenue$332,674-1%
Net profit from continuing operations$20,953-8%
Total net profit $20,184-10%
Final dividend
Amount per quoted equity security$0.06000000
Imputed amount per quoted security$0.02333333
Record date14/07/2020
Dividend payment date24/07/2020
Current periodPrior comparable period
Net tangible assets per quoted security$0.77$0.85
A brief explanation of any of the figures
above necessary to enable the figures to
be understood
Please refer to accompanying Company Announcement
Authority for this announcement
Name of person authorised to make this
announcement
Barbara Badish
Contact person for this announcement Todd Hunter
Contact phone number021 722 818
Contact email addressTodd.Hunter@turners.co.nz
Date of release through MAP18/06/2020
This announcement is based on audited results.

TURNERS AUTOMOTIVE GROUP LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 March 2020
20202019
$’000$’000
Revenue from continuing operations
332,174328,358
Other income
5008,221
Cost of goods sold(135,003)(133,126)
Interest expense(14,853)(14,952)
Impairment provision expense
(6,044)(7,892)
Subcontracted services expense(17,149)(12,888)
Employee benefits (short term)(55,458)(52,756)
Commission(13,368)(14,581)
Advertising expense(2,743)(3,918)
Depreciation and amortisation expense(11,919)(5,785)
Property and related expenses(1,688)(10,945)
Systems maintenance(1,747)(1,471)
Claims(25,952)(26,804)
Movement in life insurance liabilities(836)(718)
Insurance deferred acquisition costs(701)(423)
Write off of intangible brand asset-(4,300)
Other expenses(16,148)(16,971)
Profit/(loss) before taxation29,06529,049
Taxation (expense)/ benefit(8,112)(6,330)
Profit for the year20,95322,719
Other comprehensive income for the year (which may
subsequently be reclassified to profit/loss), net of tax
Cash flow hedges(447)(364)
Revaluation of financial assets at fair value through OCI(310)-
Foreign currency translation differences(12)(26)
Total comprehensive income for the year20,18422,329
Earnings per share (cents per share)
Basic earnings per share 24.3526.21
Diluted earnings per share 24.3527.28
Included in other income is $0.037m (2019: $0.8m) resulting from unrealised gains on the revaluation of assets.
2

TURNERS AUTOMOTIVE GROUP LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 March 2020
ShareShare Translation Revaluation Cash flow Retained
capital optionsreservereservereserve earnings Total
$’000$’000$’000$’000$’000$’000 $’000
Balance at 31 March 2018199,148701(21)-(164)14,659 214,323
Change in accounting policies
Impact of the implementation of NZ IFRS 15-----(345) (345)
Impact of the implementation of NZ IFRS 9-----(2,292) (2,292)
-----(2,637) (2,637)
Balance at 1 April 2018 (restated)199,148701(21)-(164)12,022 211,686
Transactions with shareholders in their capacity as
owners
Capital contributions (net of issue costs)13,388----- 13,388
Capital buy-back(6,141)----- (6,141)
Fair value options issued-326----326
Dividend paid----- (15,214) (15,214)
Total transactions with shareholders7,247326--- (15,214) (7,641)
Comprehensive income
Profit-----22,719 22,719
Other comprehensive income
--(26)
-
(364)-
(390)
Total comprehensive income for the year, net of tax--(26)-(364)22,719 22,329
Balance at 31 March 2019206,3951,027(47)-(528)19,527 226,374
Change in accounting policy
Impact of the implementation of NZ IFRS 16-----(5,666) (5,666)
Balance at 1 April 2019 (restated)
206,3951,027(47)-(528)13,861 220,708
Transactions with shareholders in their capacity as
owners
Capital contributions (net of issue costs)97-----97
Capital buy-back(3,192)----- (3,192)
Cancellation of options1,027(1,027)-----
Dividend paid----- (14,742) (14,742)
Total transactions with shareholders(2,068)(1,027)--- (14,742) (17,837)
Comprehensive income
Profit--
--
-20,953 20,953
Other comprehensive income
--(12)(310)(447)-
(769)
Total comprehensive income for the year, net of tax--(12)(310)(447)20,953 20,184
Balance at 31 March 2020204,327-(59)(310)(975)20,072 223,055
3

TURNERS AUTOMOTIVE GROUP LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 March 2020
20202019
Note$’000$’000
Assets
Cash and cash equivalents132,77115,866
Financial assets at fair value through profit or loss164,98866,252
Trade receivables8,60912,471
Inventories44,37138,859
Finance receivables293,037290,017
Other receivables, deferred expenses and contract assets8,57210,955
Reverse annuity mortgages4,9138,294
Investment property5,6505,650
Financial assets at fair value through OCI1,000-
Property, plant and equipment52,78839,084
Right-of-use assets24,850-
Intangible assets166,843166,734
Total assets708,392654,182
Liabilities
Other payables27,34033,906
Financial liability at fair value through profit or loss-116
Contract liabilities2,7932,642
Deferred tax10,08013,918
Tax payables2,7724,570
Derivative financial instruments985524
Borrowings350,364312,863
Lease liabilities32,511-
Life investment contract liabilities7,0727,484
Insurance contract liabilities51,42051,785
Total liabilities485,337427,808
Shareholders’ equity
Share capital204,327206,395
Other reserves(1,344)452
Retained earnings20,07219,527
Total shareholders’ equity223,055226,374
Total shareholders’ equity and liabilities708,392654,182
Total assets per share ($ per share)8.28 7.53
Net tangible asset per share ($ per share)0.770.85
Note 1
The Group's insurance business is required to comply with the solvency standards for licensed insurers issued by the Reserve
Bank of New Zealand. The solvency standards specify the level of assets the insurance business is required to hold in order to
meet solvency requirements, consequently all cash and cash equivalents and term deposits, disclosed in financial assets through
the profit or loss, held in the insurance business may not be available for use by the wider Group. DPL Insurance's cash and cash
equivalents at 31 March 2020 were $1.5m (2019: $2.2m) and term deposits at 31 March 2020 were $54.6m (2019: $55.0m).
Cash and cash equivalents at 31 March 2020 of $5.1m (2019: $4.6m) belong to the Turners Marque Trust 1 and are not available
to the Group.
Investments in unitised funds, disclosed in financial assets through the profit or loss, underwrite the Life investment policies and
are not available for use by the wider Group. Investments in unitised funds at 31 March 2020 were $7.2m (2019: $7.7m).
4

TURNERS AUTOMOTIVE GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 March 2020
20202019
$’000$’000
Cash flows from operating activities
Interest received
43,87445,023
Receipts from customers
289,275279,472
Interest paid
(12,856)(12,184)
Payment to suppliers and employees
(285,795)(272,052)
Income tax paid(11,460)(10,752)
Net cash inflow from operating activities before changes in
operating assets and liabilities
23,03829,507
Net increase in finance receivables
(27,826)(34,926)
Net decrease in reverse annuity mortgages
3,9642,545
Net decrease/(increase) of financial assets at fair value through profit or loss
704(12,163)
Net contributions from life investment contracts
8816
Changes in operating assets and liabilities arising from cash
flow movements
(23,070)(44,528)
Net cash (outflow)/inflow from operating activities
(32)(15,021)
Cash flows from investing activities
Proceeds from sale of property, plant, equipment and intangibles
9139,388
Purchase of property, plant, equipment and intangibles
(19,245)(12,753)
Purchase of investments
(1,310)41
Sale of investments473-
Net cash inflow/(outflow) from investing activities
(19,169)(3,324)
Cash flows from financing activities
Net bank loan advances/(repayments)61,03820,570
Principal elements of lease payments(6,998)-
Proceeds from the issue of shares(3,192)7,100
Proceeds from the issue of bonds-(561)
Other borrowings-(2,837)
Dividend paid(14,742)(15,214)
Net cash inflow/(outflow) from financing activities36,1069,058
Net movement in cash and cash equivalents16,905(9,287)
Add opening cash and cash equivalents15,86625,145
Translation difference-8
Closing cash and cash equivalents32,77115,866
Represented By:
Cash at bank32,77115,866
Closing cash and cash equivalents32,77115,866
5

TURNERS AUTOMOTIVE LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONT)
For the year ended 31 March 2020
RECONCILIATION OF NET SURPLUS WITH CASH FLOWS FROM OPERATING ACTIVITIES
20202019
$’000$’000
Profit or loss
20,95322,719
Adjustment for non-cash items
Impairment charge on finance receivables, reverse annuity
mortgages and other receivables
6,0447,943
Net profit on sale of property, plant and equipment
(33)(3,660)
Depreciation and amortisation
11,9195,785
Capitalised reverse annuity mortgage interest
(613)(846)
Deferred revenue
(2,892)1,620
Financial assets at fair value through profit and loss
77(799)
Net annuity and premium change to policyholder accounts
(500)341
Non-cash long term employee benefits
-330
Non-cash adjustment to finance receivables effective interest rates
(226)(209)
Deferred expenses
(2,652)2,839
Fair value adjustment on investment property
-(830)
Fair value adjustment to contingent consideration
(116)-
Write off of intangible brand asset
-4,300
Adjustment for movements in working capital
Net (increase)/decrease in receivables and pre-payments
5,251(259)
Net (increase)/decrease in inventories
(5,512)(263)
Net increase in current tax payable
(1,806)(851)
Net increase/(decrease) in payables
(3,544)(5,220)
Net decrease in contract liabilities
(1,694)132
Net increase in finance receivables
(27,826)(34,926)
Net decrease in reverse annuity mortgages
3,9642,545
Net decrease of insurance assets at fair value through profit or loss
704(12,163)
Net (withdrawals)/contributions from life investment contracts8816
Net increase in deferred tax
(1,618)(3,565)
Net cash inflow/(outflow) from operating activities(32)(15,021)
6

TURNERS AUTOMOTIVE GROUP LIMITED
SEGMENTAL INFORMATION
For the year ended 31 March 2020
OPERATING SEGMENTS
Revenue
Revenue Revenue
TotalInter-fromTotalInter-from
segmentsegmentexternalsegmentsegmentexternal
revenue
revenue
customersrevenue
revenue
customers
2020
2020
2020201920192019
$’000$’000$’000$’000$’000$’000
Automotive retail229,512(4,634)224,878228,672(2,963)225,709
Finance45,744-45,74444,193-44,193
Credit management17,939-17,93918,196-18,196
Insurance45,236(1,129)44,10749,206(742)48,464
Corporate & other6-617-17
338,437(5,763)332,674340,284(3,705)336,579
Operating profit20202019
$’000$’000
Automotive retail13,82918,274
Finance12,16711,112
Credit management6,4946,321
Insurance6,2158,227
Corporate & other
(9,640)(14,885)
Profit/(loss) before taxation
29,06529,049
Income tax
(8,112)(6,330)
Net profit attributable to shareholders20,95322,719
2020
2019
2020201920202019
$’000$’000$’000$’000$’000$’000
Automotive retail3,9048,383(3,967)(4,206)(7,960)(2,457)
Finance40,57938,544(6,912)(6,596)(717)(413)
Credit management59(39)-(249)(104)
Insurance2,2762,434(91)-(2,783)(2,746)
Corporate & other617(3,930)(4,368)(210)(65)
46,77049,387(14,939)(15,170)(11,919)(5,785)
Eliminations(86)(218)86218--
46,68449,169(14,853)(14,952)(11,919)(5,785)
Other material non-cash items
2020201920202019
$’000$’000$’000$’000
Automotive retail - impairment provisions--(126)(503)
Finance - impairment provisions--(5,888)(7,436)
Insurance - Reverse annuity mortgage interest613846--
Corporate & other - Write down of brand and collateral---(4,570)
613846(6,014)(12,509)
Segment assets and liabilities
2020201920202019
$’000$’000$’000$’000
Automotive retail129,496132,83992,07888,065
Finance308,696276,356241,086216,996
Credit management38,26831,6857,5855,686
Insurance134,236135,00173,13373,293
Corporate & other216,173195,67391,42383,030
826,870771,554505,305467,070
Eliminations(118,478) (117,372)(19,968)(39,262)
708,392654,182485,337427,808
Depreciation and
Interest revenueInterest expenseamortisation expense
RevenueExpenses
AssetsLiabilities
7

TURNERS AUTOMOTIVE GROUP LIMITED
SEGMENTAL INFORMATION (CONT)
For the year ended 31 March 2020
Acquisition of property, plant & equipment, intangible assets and other non-current assets
20202019
$’000$’000
Automotive retail17,08511,478
Finance1,218671
Credit management197135
Insurance5,94914,884
Corporate & Other23674
24,68527,242
Eliminations(5,440)(14,489)
19,24512,753
Five reportable segment have been identified as follows:
Finance - provides asset based finance to consumers and SME's.
Insurance - marketing and administration of a range of life and consumer insurance and superannuation products.
Corporate & other - corporate centre.
Automotive retail - remarketing (motor vehicles, trucks, heavy machinery and commercial goods) and purchasing goods for sale (motor vehicles and commercial goods) and
related asset based finance to consumers.
Credit management - collection services, credit management and debt recovery services to the corporate and SME sectors. Geographically the collections services segment
business activities are located in New Zealand and Australia.
Other
8

TURNERS AUTOMOTIVE GROUP LIMITED
CHANGE IN ACCOUNTING POLICY
Adjustments recognised on adoption of NZ IFRS 16
$'000
Operating lease commitments disclosed as at 31 March 2019 32,511
Discounted using the incremental borrowing rate as at 1 April 2019 26,863
Less: short-terms leases recognised on a straight-line basis as expense (168)
Add: adjustments as a result of a different treatment of extension and termination options 10,080
Lease liability recognised as at 1 April 201936,775
The recognised right-of-use assets relate to the following types of assets:
31 March 20201 April 2019
$'000$'000
Properties
24,691
28,279
Equipment
159
250
Total right-of-use assets
24,850
28,529
The change in accounting policy affected the following items in the Statement of financial position on 1 April 2019:
1 April 2019
$'000
Right-of-use assets
28,529
Other payables
(377)
Deferred tax
(2,203)
Lease liabilities
36,775
Retained earnings
(5,666)
Practical expedients applied
In applying NZ IFRS 16 for the first time, the Group has used the following practical expedients permitted by the standard:
• the use of a single discount rate to a portfolio of leases with reasonably similar characteristics;
• reliance on previous assessments on whether leases are onerous;
• the accounting for operating leases with a remaining lease term of less than 12 months as at 1 April 2019 as short-term leases; and
• the exclusion of initial direct costs for the measurement of the right-of-use asset at the date of initial application.
This note explains the impact of the adoption of IFRS 16 Leases on the Group’s financial statements and discloses the new accounting policies that have been
applied from 1 April 2019.
The Group has adopted IFRS 16 retrospectively from 1 April 2019, but has not restated comparatives for the 2019 reporting period, as permitted under the specific
transitional provisions in the standard. The reclassifications and the adjustments arising from the new leasing rules are therefore recognised in the opening statement
of financial position on 1 April 2019.
On adoption of IFRS 16, the Group recognised lease liabilities in relation to leases which had previously been classified as ‘operating leases’ under the principles of
NZ IAS 17 Leases. These liabilities were measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate
as of 1 April 2019. The weighted average lessee’s incremental borrowing rate applied to the lease liabilities on 1 April 2019 was 6.1%.
The associated right-of-use assets for property leases were measured on a retrospective basis as if the new rules had always been applied. Other right-of use assets
were measured at the amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to that lease recognised in the
statement of financial position as at 31 March 2019. There were no onerous lease contracts that would have required an adjustment to the right-of-use assets at the
date of initial application.
The Group has also elected not to reassess whether a contract is, or contains a lease at the date of initial application. Instead, for contracts entered into before the
transition date the Group relied on its assessment made applying NZ IAS 17 and IFRIC 4 Determining whether an Arrangement contains a Lease.
9

TURNERS AUTOMOTIVE GROUP LIMITED
Impact of the adoption of NZ IFRS 16 in the Statement of financial position as at 1 April 2019:
31 March 20191 April 2019
As originallyNZ IFRS 161 April 2019
presentedadjustmentsrestated
$'000$'000$'000
Assets
Cash and cash equivalents
15,866
-
15,866
Financial assets at fair value through profit or loss
66,252 66,252
Trade receivables
12,471
-
12,471
Inventories
38,859
-
38,859
Finance receivables
290,017
-
290,017
Other receivables, deferred expenses and contract assets
10,955
-
10,955
Reverse annuity mortgages
8,294
-
8,294
Investment property
5,650
-
5,650
Property, plant and equipment
39,084
-
39,084
Right-of-use assets
-
28,529
28,529
Intangible assets
166,734
-
166,734
Total assets
654,18228,529682,711
Liabilities
Other payables
33,906 (377)
33,529
Financial liability at fair value through profit or loss
116 - 116
Contract liabilities
2,642 -
2,642
Deferred tax
13,918 (2,203) 11,715
Tax payables
4,570 - 4,570
Derivative financial instruments
524 -
524
Borrowings
312,863 -
312,863
Lease liabilities
- 36,775 36,775
Life investment contract liabilities
7,484 - 7,484
Insurance contract liabilities
51,785 -
51,785
Total liabilities
427,80834,195462,003
Shareholders' equity
Share capital
206,395 -
206,395
Other reserves
452 -
452
Retained earnings
19,527 (5,666) 13,861
Total shareholders' equity
226,374(5,666)220,708
Total shareholders' equity and liabilities
654,18228,529682,711
10

TURNERS AUTOMOTIVE GROUP LIMITED
Presentation of the Statement of comprehensive income for the year ended 31 March 2020 as if NZ IFRS 16 had not been adopted:
31 March 2020Year ended31 March 2020
reported with31 March 2020reported without
adoptingNZ IFRS 16 adopting
NZ IFRS 16adjustmentsNZ IFRS 16
$'000$'000$'000
Revenue from continuing operations 332,174
-
332,174
Other income 500
-
500
Cost of goods sold(135,003)
-
(135,003)
Interest expense(14,853)
2,034
(12,819)
Impairment provision expense(6,044)
-
(6,044)
Subcontracted services expense(17,149)
-
(17,149)
Employee benefits (short term)(55,458)
-
(55,458)
Commission(13,368)
-
(13,368)
Advertising expense(2,743)
-
(2,743)
Depreciation and amortisation expense(11,919)
6,300
(5,619)
Property and related expenses(1,688)
(8,806)
(10,494)
Systems maintenance(1,747)
-
(1,747)
Claims(25,952)
-
(25,952)
Movement in life insurance liabilities(836)
-
(836)
Insurance deferred acquisition costs(701)
-
(701)
Impairment of intangible brand asset -
-
-
Other expenses(16,148)
-
(16,148)
Profit before taxation29,065(472)28,593
Taxation expense(8,112) 132(7,980)
Profit from continuing operations 20,953(340)20,613
Other comprehensive income for the period (which may subsequently be
reclassified to profit/loss), net of tax
Cash flow hedges(447)
-
(447)
Revaluation of financial assets at fair value through OCI(310)
-
(310)
Foreign currency translation differences(12)
-
(12)
Total comprehensive income for the period20,184(340)19,844
Earnings per share (cents per share)
Basic earnings per share
24.35 (0.40)
23.95
11

TURNERS AUTOMOTIVE GROUP LIMITED
Presentation of the Statement of financial position as at 31 March 2020 as if NZ IFRS 16 had not been adopted:
31 March 2020Year ended31 March 2020
reported with31 March 2020reported without
adoptingNZ IFRS 16 adopting
NZ IFRS 16adjustmentsNZ IFRS 16
$'000$'000$'000
Assets
Cash and cash equivalents
32,771 -
32,771
Financial assets at fair value through profit or loss
64,988
Trade receivables
8,609 -
8,609
Inventories
44,371 - 44,371
Finance receivables
293,037 - 293,037
Other receivables, deferred expenses and contract assets
8,572 - 8,572
Reverse annuity mortgages
4,913 - 4,913
Investment property
5,650 - 5,650
Financial assets at fair value through OCI
1,000 - 1,000
Property, plant and equipment
52,788 -
52,788
Right-of-use assets
24,850 (24,850)
-
Intangible assets
166,843 -
166,843
Total assets
708,392(24,850)618,554
Liabilities
Other payables
27,340 264
27,604
Contract liabilities
2,793 - 2,793
Deferred tax
10,080 2,071 12,151
Tax payables
2,772 -
2,772
Derivative financial instruments
985 -
985
Borrowings
350,364 - 350,364
Lease liabilities
32,511 (32,511) -
Life investment contract liabilities
7,072 -
7,072
Insurance contract liabilities
51,420 -
51,420
Total liabilities
485,337(30,176)455,161
Shareholders' equity
Share capital
204,327 -
204,327
Other reserves
(1,344) - (1,344)
Retained earnings
20,072 5,326 25,398
Total shareholders' equity
223,0555,326228,381
Total shareholders' equity and liabilities
708,392(24,850)683,542
Total assets per share ($)
8.28
7.23
Net tangible assets ($)
0.77 0.86
12

TURNERS AUTOMOTIVE GROUP LIMITED
Presentation of the Segment information as at 31 March 2020 as if NZ IFRS 16 had not been adopted:
Operating profit31 March 2020Year ended31 March 2020
reported with31 March 2020reported without
adoptingNZ IFRS 16 adopting
NZ IFRS 16adjustmentsNZ IFRS 16
$'000$'000$'000
Automotive retail
13,829 (514)
13,315
Finance
12,167 (43) 12,124
Credit management
6,494 1
6,495
Insurance
6,215 55
6,270
Corporate & other(9,640)29(9,611)
Profit/(loss) before taxation
29,065 (472) 28,593
Income tax(8,112)132(7,980)
Profit attributable to shareholders
20,953(340)20,613
Interest expense
Automotive retail
(3,967) 1,847
(2,120)
Finance
(6,912) 43
(6,869)
Credit management
(39) 39
-
Insurance
(91) 91 -
Corporate & other(3,930)14(3,916)
(14,939) 2,034 (12,905)
Eliminations86-86
(14,853)2,034(12,819)
Depreciation and amortisation expense
Automotive retail
(7,960) 5,472
(2,488)
Finance
(717) 343 (374)
Credit management
(249) 153 (96)
Insurance
(2,783) 191
(2,592)
Corporate & other
(210)
141
(69)
(11,919)6,300(5,619)
Segment assets
Automotive retail
129,496 (23,141)
106,355
Finance
308,696 (1,165) 307,531
Credit management
38,268 (589) 37,679
Insurance
134,236 (1,372)
132,864
Corporate & other216,173(654)215,519
826,870 (26,921) 799,949
Eliminations(118,478)2,071(116,407)
708,392(24,850)683,542
Segment liabilities
Automotive retail
92,078 (28,221)
63,857
Finance
241,086 (1,221) 239,865
Credit management
7,585 (660) 6,925
Insurance
73,133 (1,463) 71,670
Corporate & other91,423(682)90,741
505,305 (32,247) 473,058
Eliminations(19,968)2,071(17,897)
485,337(30,176)455,161
13

TURNERS AUTOMOTIVE GROUP LIMITED
The Group’s leasing activities and how these are accounted for
• fixed payments (including in-substance fixed payments), less any lease incentives receivable;
• variable lease payment that are based on an index or a rate;
• amounts expected to be payable by the lessee under residual value guarantees;
• the exercise price of a purchase option if the lessee is reasonably certain to exercise that option; and
• payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.
Right-of-use assets are measured at cost comprising the following:
• the amount of the initial measurement of lease liability;
• any lease payments made at or before the commencement date less any lease incentives received;
• any initial direct costs; and
• restoration costs.
Under NZ IFRS 16, lessees must present:
The Group leases various offices, warehouses, retail stores, equipment and cars. Rental contracts are typically made for fixed periods of 3 to 8 years but may have
extension options as described in below. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease
agreements do not impose any covenants, but leased assets may not be used as security for borrowing purposes.
• Cash paid for the interest portion of a lease liability as either operating activities or financing activities, as permitted by NZ IAS 7 Statement of Cash Flows (the
Group has opted to include interest paid as part of operating activities, consistent with its presentation of interest paid on financial liabilities); and
• Cash payments for the principal portion for a lease liability, as part of financing activities. Under NZ IAS 17, all lease payments on operating leases were presented
as part of cash flows from operating activities.
Consequently, the net cash generated by operating activities has increased by $6.998m, being the lease payments, and net cash used in financing activities has
increased by the same amount.
The adoption of NZ IFRS 16 did not have an impact on net cash flows.
The Group has applied judgement to determine lease term for some lease contracts that include renewal options. The assessment of whether the Group is
reasonably certain to exercise such options impacts the lease term, which significantly affects the amount of lease liabilities and right-of-use assets.
Until the 2020 financial year, leases of property, plant and equipment were classified as either finance or operating leases. Payments made under operating leases
(net of any incentives received from the lessor) were charged to profit or loss on a straight-line basis over the period of the lease.
From 1 April 2019, leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Group.
Each lease payment is allocated between the liability and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant
periodic rate of interest on the remaining balance of the liability for each period. The right-of-use asset is depreciated over the shorter of the asset's useful life and the
lease term on a straight-line basis.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease
payments:
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the lessee’s incremental borrowing rate is used,
being the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms
and conditions.
Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an expense in profit or loss. Short-term leases
are leases with a lease term of 12 months or less. Low-value assets comprise IT-equipment and small items of office furniture.
Extension and termination options are included in a number of property and equipment leases across the Group. These terms are used to maximise operational
flexibility in terms of managing contracts. The majority of extension and termination options held are exercisable only by the Group and not by the respective lessor.
A deferred tax asset is raised for the tax impact of the changes in recognised lease relates assets and liabilities.
A lease is contract that conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
The application of NZ IFRS 16 has an impact on the consolidated Statement of cash flows of Group.
• Short-term lease payments, payments for leases of low-value assets and variable lease payments not included in the measurement of the lease liability as part of
operating activities;
14

TURNERS AUTOMOTIVE GROUP LIMITED
USE OF ESTIMATES AND JUDGEMENTS
Inventory provisioning
Expected credit losses on loan receivables
COVID-19
Inventories - impairment provision
Finance receivables - expected credit losses
Indefinite life intangibles - goodwill and brand
Inventories comprise primarily motor vehicles held for sale and are stated at the lower of cost or net realisable value. Cost comprises the purchase price, shipping
cost, compliance cost and other sundry related costs. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of
completion and the estimated costs necessary to make the sale. Estimated selling prices are based upon recent observed vehicle sales prices for comparable
vehicles. Management has estimated the net realisable value of inventories based on their estimate of the selling price in a post lockdown market.
Forecast cash flows over a minimum projected period of five years factor into the impairment assessment for goodwill and brand. The Group prepared revised cash
flow forecasts for the purposes of the Group's annual impairment testing of goodwill and brand. The revised cash flow forecasts considered the impact of COVID-19
and responses on the performance of the Group. Management's assessment included sensitivity analysis by changing key inputs into the value-in-use calculation as
the discount rate and long term growth rate.
This assessment has not identified any impairment of the carrying value of the goodwill and brand assets as at 31 March 2020.
The Group recognises a loss allowance for expected credit losses (ECL) on financial assets that are measured at amortised cost and contract assets. The amount of
expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument.
ECL are measured as an allowance equal to 12 month ECL for performing assets, or lifetime ECL for those assets that have experienced a significant increase in
credit risk since origination. Expectations about future losses are initially derived from past experience. In the current year, when measuring ECL the Group has used
reasonable and supportable forward looking information, which is based on estimates for the future movement of different economic drivers (i.e. unemployment rates
and government stimulus) and how these drivers will affect each other. As a result of the present economic circumstances with respect to COVID-19 there remains
inherent uncertainty of the impact on these economic drivers will have on the ECL. When assessing the impact of COVID-19 Management determined the likely
impact will be an increase in the estimated probability of default. Management's assessment included reviewing past experience during the global financial crisis and
a review of loans in at risk related industries.
Based on the work done the finance receivables expected credit loss provision includes $1.0m for any economic uncertainty associated with the COVID-19 pandemic
and its potential impact on the expected impact on credit losses.
Based on the work done the inventories impairment provision includes $0.5m for any economic uncertainty associated with the COVID-19 pandemic and its potential
impact on the expected impact on inventory provisions.
The impairment of the carrying value of intangibles - goodwill and brand
When assessing the possible future impact of COVID-19 on the carrying value of assets and liabilities, the Group reviewed past experience, including the impact of
the global financial crisis, on the Group's performance and aligned the forecast and estimates with this experience.
These financial statements have been prepared based upon conditions existing as at 31 March 2020 and consider those events occurring subsequent to that date
that provide evidence of conditions that existed at the end of the reporting period. As the outbreak of the COVID-19 pandemic occurred before 31 March 2020 its
impacts are considered an event that is indicative of conditions that arose prior to reporting period. Accordingly, as at the date of signing these financial statements, all
reasonably known and available information with respect to the COVID-19 pandemic has been taken into consideration in the critical accounting estimates and
judgements applied by Management and all reasonably determinable adjustments have been made in preparing these financial statements.
In preparing the financial statements in accordance with NZ IFRS, the Board and management are required to make judgements, estimates and assumptions about
the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates.
Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances. The principal areas of judgement in preparing these financial statements affected by the responses to COVID-19
pandemic are considered as follows:
The COVID -19 pandemic and responses has reduced the ability from many businesses to operate and reduced the demand for many goods and services resulting in
significant volatility and instability in financial markets. The Group's four businesses experienced significant declines in new business during lockdown level 4 and level
3, however three of the four businesses earn annuity income and were profitable during this period. The COVID-19 pandemic and responses continue to effect
general activity and confidence levels in the economy. While the scale and duration of these effects remain uncertain, the Group continues to monitor developments
and initiate plans to mitigate adverse impacts and maximise opportunities.
15

---

FY20
Results
Presentation
For the twelve monthsending
31 March 2020
1••FY20 RESULTS PRESENTATION

Agenda
1. Results summary
2. Business update - Q1
3. Business update - FY21
4. Financial results
5. Segment results
6. Summary and Q&A
2• FY20 RESULTS PRESENTATION

FY20 Results Overview
3• FY20 RESULTS PRESENTATION
•NPBT $29.1M in line with FY19
and guidance ($28m – $30m)
•Underlying NPBT $28.8m up 11%
•NPAT $21.0m down 8%
•Final Q4 Dividend (incorporating
the Q3 deferred dividend)
declared at 6.0cps
•EPS 24.4cps (FY19 26.2cps)
•
Accelerate market share gains
•
Leverage high trust brand
•
Diversified and Integrated business
•
Digital advantage
•
Balance sheet capacity supports
growth
FY20 Financials
•Auto Retail: fully operational with
sales stronger than expected
•Finance: Credit policy tightened for
new lending and arrears performing
well
•Insurance: New policy sales
recovering, claims tracking below
expectations
•Credit: SME debt load building, with
larger corporates to restart in June
Q1 UpdateKey Themes for FY21

4 • FY20 RESULTS PRESENTATION
Results
Summary
1

FY19/FY20 Revenuebridge
•Auto Retail revenue flat year on year
•Finance revenues have increased through Turner’s
origination and 3
rd
party origination
•Insurance reflects fewer policies sold as higher risk
vehicles re-priced and fewer used cars sold in the market
and effect of one-off property sale in FY19
•EC Credit Control revenue’s flat year on year...expect to
see uplift in years post COVID-19
•FY19 includes $3.4m one off gain from sale of property
5• FY20 RESULTS PRESENTATION
Revenue stable at $333m (FY19 $337m)

FY19/FY20 Net profit before tax (NPBT)bridge
6• FY20 RESULTS PRESENTATION
•Inline with both FY19 and at mid point of $28-$30m net
profit before tax guidance (prior to COVID-19, was tracking to
exceed slightly)
•Auto retail decrease due to Albany property settlement of
$3.4m in FY19 and COVID-19 impact in Feb/March
•Finance improvement driven by writing higher quality new
business and the resulting improved arrears performance. In
addition a COVID-19 overlay has been applied to finance
receivable provisioning ($1m increase).
•Insurance result from FY19 includes $3.0m one –off gain from
property sale. Gains in claims ratios have continued to offset
reduced policy sales
•Corporate included brand write off of Buy Right Cars of
$4.6m in FY19
NPBT of $29.1m inline with FY19 and guidance

Reconciliation: NPBT to underlyingNPBT
•Pleasing growth in underlying earnings
despite impact of COVID-19
•Property sale in FY19 relates to the sale of 133
Roscommon Road
•Christchurch property is Worsley Prestige
which was security on an old Dorchester
Finance property loan
•Albany branch was compulsorily acquired by
Transit NZ for motorway extension
$MillionsFY20FY19Var
Reported profit before tax29.129.00.3%
Oxford strategic review costs0.2-
IFRS 16 Lease Accounting changes(0.5)-
Christchurch property revaluation-(0.8)
Property Settlement – Albany site-(3.4)
Brand Write-Off (Buy Right Cars)-4.6
Sale of property -(3.4)
Underlying operating result28.826.011%
7• FY20 RESULTS PRESENTATION

FY19/FY20 Underlying NPBT bridge
Underlying Profit Before Tax
8• FY20 RESULTS PRESENTATION
•Auto Retail heavily impacted in key month of March 20
by COVID-19
•Finance improvement driven by growth in higher
quality lending, improvement in arrears and reducing
funding costs
•Insurance improvement from improved risk pricing
and reduction in claims ratios
•EC Credit higher commissions from improved NZ
corporate debt load
Underlying PBT increased from $26.0m to $28.8m

9 • FY20 RESULTS PRESENTATION
Business
Update – Q1
2

Thank You to Our Team, Landlords and Business Partners
10• FY20 RESULTS PRESENTATION
Speed -Work from home plans executed at speed and teams adapted very quickly.
Technology investments and quality of team, have put us in a strong position.
Committed- Many people have been asked to take additional annual leave, work reduced
hours, do different jobs and tasks and all have stepped up when required. Board and Senior
Management right across the business have reduced fees and salaries to 80% of normal for a
period of 3 months.
Thank you - Acknowledge and thank our landlords and business partners and employees
who have made sacrifices to ensure the business was in the best possible position to survive
and ultimately prosper.

Our approach to lockdown...
11• FY20 RESULTS PRESENTATION
ReactRethinkRebuild
•Safety of staff and customers
•Rapid WFH setup completed
•Cost reduction plans worked
on immediately
•Daily reporting on critical
KPIs established
•Establish what was possible
eg. Essential service, selling
cars online
•Close communication with
funders
•Online purchasing and
contactless delivery
•WFH on more permanent basis
•Customers reverting to strong
brands
•Growing unemployment
•Weakening demand and
softening prices
•Disciplined cost control
•100% online customer
experience
•Review credit risk scoring
•Enhance distribution in insurance
•Push the trust and strength in our
brands
•Significant opportunity to build
market share in all our businesses
Ensure survival of business
“cash is king” approach
Avoid a dilutive capital raise
“Eyes on the prize” and
prepare for opportunities

Key Messages on Near-term Environment
12• FY20 RESULTS PRESENTATION
Lockdown - Naturally, all four businesses experienced substantial new business drops during
L3/L4 lockdown. Group revenue down 57% in April 2020 v April 2019
Priorities - 1. Ensure the business survives 2. Avoid a dilutive capital raise 3. Ensure the business
is prepared for the opportunities
An uncertain outlook - but April/May better than expected - We expect mixed trading conditions
with NZ’s expected recession. YTD Trading results for April and May show levels significantly
better than our initial projections made at the commencement of L4 lockdown
Diversified portfolio of related businesses - Highlights the value of a diversified portfolio of
businesses, and the inherent “annuity” nature of those three businesses. Three of our four
businesses (Oxford Finance, Autosure Insurance and EC Credit Control) were profitable even
during the L3/L4 lockdown period

FY21 YTD Update - Early Metrics
13• FY20 RESULTS PRESENTATION
•Launched 100% online car selling “BuySafe” – sold 600 cars
during L4 lockdown
•Continuing marketing spend focusing on Turners “trusted
brand”
•Processed 1,500 (or 8%) hardship applications (payment
holidays or reduced payment) during L4...currently less
than 75 customers (5%) have required a further extension
•Arrears in finance book have continued to improve over
April / May and are at historic low levels
•Substantial decrease in insurance claim numbers during L4
and L3, tracking at around 80% of 2019 levels.
•SME debt load increasing and corporate debt load expected
to be large once they start releasing debt for collection
Change v pcpMar-20 Apr-20 May-20 Jun-20 MTD
Auto Retail Revenue(33%)(80%)(6%)(2%)
Car Units Sold(40%)(74%)(13%)2%
New Lending in Oxford(7%)(94%)(36%)65%
Consumer Loan Bal Arrears
(Actual)
8.5%7.2%6.8%6.8%
Insurance new policies sold(33%)(84%)(36%)10%
No. of claims lodged(30%)(80%)(21%)19%
Credit Management Revenue-(48%)(46%)(25%)
Debt Loaded(22%)(56%)(64%)(73%)
Actual Group Op Profit* ($000)1,220-4241,575
* Group operating profit excluding wage subsidy

Near Term Priorities
Auto Retail
•Cost discipline – property and people
•Continue to invest in promoting the Turners brand - build market share
•Retail optimisation – Exit Penrose and launch Westgate, Mt Richmond
Finance
•Keep improving credit quality
•Continued focus on arrears and rehabilitation
•Promote 100% digital loan process
Credit/Management
•Extending into ledger management from credit collections
•Cost discipline with Digital efficiencies – debtor self service portal, Xero/MYOB
•Working closely with corporates to manage reputational risk
14• FY20 RESULTS PRESENTATION
Insurance
•Cost and claims management discipline
•Increasing distribution through partnership strategy and sales integration
into other businesses eg Marac
•Enhance risk pricing

15 • FY20 RESULTS PRESENTATION
Business
Update – FY21
3

Key themes for FY21
#1 Opportunity to accelerate market share
Turners well placed to continue market share gains. Used
car market rationalisation likely to accelerate post COVID.
During the GFC, the number of dealers dropped by 15%
#2 Leverage the high trust Turners brand
Leverage our scale and brand equity. Our scale offers multiple
advantages. Our highly trusted brand will become even more
relevant in the new economy
#3 Diversified business
Turners is diversified geographically and has the advantage of
annuity and activity based revenues. These were demonstrated
during Lockdown and will be shown in the near to medium term.
#4 Digital advantage
Turners are well positioned from a funding and capital
perspective to take advantage of growth opportunities in the
future
#5 Balance sheet capacity supports growth
A key differentiator is the Turners digital platform with #2 most
visited auto website in the NZ behind TradeMe. We will continue to
make material investment in technology, data and digital marketing

1. Opportunity to accelerate market share
17• FY20 RESULTS PRESENTATION
•During the GFC, the number of dealers dropped by
15%
•Turners has adapted rapidly to remain robust and to be
in a position to realise any new opportunities that
emerge from a disrupted market
•100% online selling process “BuySafe” has been key
point of difference ... hit 20% market share during April
•Turners expects to accelerate market share gains that
were achieved in recent years
•Turners will continue to actively manage it’s portfolio of
sites, with a focus on retail transition.
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
Jan
15
Apr
15
Jul
15
Oct
15
Jan
16
Apr
16
Jul
16
Oct
16
Jan
17
Apr
17
Jul
17
Oct
17
Jan
18
Apr
18
Jul
18
Oct
18
Jan
19
Apr
19
Jul
19
Oct
19
Jan
20
Apr
20
Turners Public Market Share (3 Month Rolling Average)
Rolling 3 Month AverageLinear (Rolling 3 Month Average)

2. Leverage the high trust Turners brand
18• FY20 RESULTS PRESENTATION
Scale
Our scale offers multiple advantages:
•During challenging environments, Turners benefits
from its scale and diversification.
•With a larger team than any other auto retailer, Turners
was able to react rapidly to the challenges and
opportunities of COVID-19.
•Our scale giving us greater buying power around bulk
fleet purchases.
•Our large web audience and 23 branches spread across
the country gives us access to more customers
•Turners has greater access to capital, both via its
robust banking relationships, based on years of
demonstrating prudent financial management, and if
ever required, its NZX/ASX listing.
Most trusted brand
Trust will be even more important in the new economy:
•Turners is consistently NZ’s leading used auto retail
brand, according to independent market research
•Turners has strong web presence, traffic online hitting
all time highs
•Even during Level 4 and 3 lockdown, Turners was able
to sell 600 vehicles online. The ability to sell
uninspected vehicles online at scale for the first time
demonstrates the high trust and awareness of the
Turners brand.
•Turners recently received the 2020 Readers Digest
Trusted Brand Awardas New Zealand’s most trusted
used car dealer.

3. Diversified business
19• FY20 RESULTS PRESENTATION
•
Turners is a purposefully diversified business
•
Each business has different business cycles...
•
Annuity revenues from finance and insurance help offset the
short-term decline in the activity-based revenue businesses of
auto retail and credit management.
•
Credit management is counter-cyclical and will likely
experience high growth over near to medium term.
•
Geographical diversification allows the business to redeploy
inventory if there are any localised lockdowns going forward or
regional demand differences.
•
With a business model setup for consignment sales, Turners is
able to heavily increase its mix towards consignment, which
significantly reduces working capital and any pricing risk.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY16FY17FY18FY19FY20
% of Total Operating Profit by Business Division
Automotive retailFinanceCredit managementInsurance

4. Digital advantage
20• FY20 RESULTS PRESENTATION
•Turners is committed to creating competitive advantage from
technology investments, and will double down on these efforts to
further broaden its technology advantage
•Technology team: 26 FTE (Applications 15, Infrastructure /
Operations 11)
•All systems were robust and dynamic to the needs of lockdown,
including a rapid change to remote working in a couple of days
•Turners Car Subscription in development with launch expected Q2
due to delays with COVID-19.
•Focus going forward on digital marketing and 2 key data projects:
•CDP (customer data platform): Online lead identification,
management and automated communications
•Use of data & automated machine learning platform to predict
vehicle profitability and credit defaults
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
FY16FY17FY18FY19FY20
Group IT Spend ($Millions)
CapexOpex

5. Balance sheet has capacity to support growth
•Our balance sheet is a major competitive advantage, which will
enable continued growth in a consolidating market.
•Our balance sheet is robust;
•The group continues to operate well within its bank
covenants.
•In March 2020, an extension of the securitisation
warehouse facility was agreed with BNZ, from $200m to
$250 million
•Unrestricted cash of $20m+ and further funding
headroom if required.
•No renewals on debt until 2021.
•The Board deferred the Q3 dividend as a precautionary
measure.
•69% of total debt in business relates to finance receivables.
Finance has an equity to total assets ratio of 22%.
Funding Mix ($M)Limits Drawn
Finance Receivables Funding
Securitisation230 180
Banking Syndicate60 49
MTF Receivables (Auto Retail)13 13
Less Cash(9)
Net Receivables Funding303 233
Funding Capacity70
Corporate and Other Borrowings
Corporate & Property -Banking Syndicate 70 58
Inventory -Banking Syndicate30 25
NZX Listed Bond25 25
Less Cash(24)
Net Corporate Borrowings125 84
Funding Capacity41

22 • FY20 RESULTS PRESENTATION
Financial
Results
4

FY20 Results snapshot
Revenue
Net profit after tax
Revenue
$332.7m
-1% YoY
Shareholders’ Equity
$223m as at 31 March 20
Underlying Net Profit Before Tax
$28.8m +
11% YoY
Q3 Dividend 6.0 cps
FY Div 14.0 cps
Net Profit Before Tax
$29.1m
0% YoY
FY20 Earnings Per Share
24.4cps
(FY19 26.2cps,
-7%
)
Net Profit After Tax
$21.0m
-8% YoY
0
100
200
300
400
FY15FY16FY17FY18FY19FY20
Millions
2H
1H
0
5
10
15
20
25
FY15 FY16 FY17 FY18 FY19 FY20
Millions
2H
1H
23• FY20 RESULTS PRESENTATION

Capital Management andDividends
•In March directors deferred Q3 dividend payable in April
as a precautionary step due to uncertainty of L4
lockdown period.
•Given April and May trading has been better than
expected, directors have declared the FY20 Final
dividend incorporating the deferred Q3 dividend @ 6.0
cps payable in July.
•Gross dividend yield of 9.8% at indicative price of $1.98
(includes imputation credits)
•Directors intend to continue to pay out dividends
according to the current policy in FY21 (60% to 70% of
NPAT). This will be subject to underlying business
performance.
Dividend per Share (Cents)
Dividends fully imputed from FY17 onwards
0.09
0.12
0.13
0.145
0.18
0.14
0.00
0.02
0.04
0.06
0.08
0.10
0.12
0.14
0.16
0.18
0.20
FY15FY16FY17FY18FY19FY20
24 • FY20 RESULTS PRESENTATION

•Cash boosted by pre-emptive drawdowns as we entered
L4 lockdown and uncertainty around timing
•Inventory increase reflects COVID-19 slowdown and
lockdown
•Change in Finance rreceivables reflects quality ledger growth
in Oxford offset by rundown in MTF non-recourse ledger
•Borrowings reflect COVID-19 cash drawdown, lockdown
impact on working capital and investment in strategic site
acquisition.
•Property, plant and equipment increase due to
development of new sites in Whangarei, North Shore and
Mt Richmond purchase.
•Right of Use Asset and associated Lease Liabilities arise
from adoption of IFRS-16
$MillionsFY20FY19
Cash and cash equivalents
32.815.9
Financial assets at fair value
65.066.3
Inventory
44.438.9
Finance receivables
293.0290.0
Property, plant and equipment
52.839.1
Right of use Assets
24.9-
Intangible asset
166.8166.7
Other assets
28.737.3
Total Assets
708.4654.2
Borrowings
350.4312.9
Other payables
27.333.9
Deferred tax
10.113.9
Insurance contract liabilities
51.451.8
Lease liabilities
32.5-
Other Liabilities
13.615.3
Total Liabilities
485.3427.8
Balance sheet
25• FY20 RESULTS PRESENTATION

Funding mix
$MillionsLimitDrawn Undrawn
Receivables – Securitisation (BNZ)
23018050
Receivables – Banking Syndicate (ASB/BNZ)
604911
Receivables – MTF
13130
Corporate & Property [incl Bond]
958312
Inventory (ASB)
30255
Totals
42835078
Borrowings
Borrowings by Utilisation ($Millions)
As at 31 Mar 2020
•Cash and Cash equivalents as at 31 March $32.7m, reflects desire
to maintain higher cash balances during COVID-19 lockdown of
uncertain duration.
•Securitisation funding facility limit at $250m (including capital
contribution from TRA).
Inventory
26• FY20 RESULTS PRESENTATION
Corporate & Property $83
Inventory $25
Finance Receivables $242

27 • FY20 RESULTS PRESENTATION
Segment
Results
5

FY20 by Segment
Auto Retail
•
Growing retail market share
•
Better buying disciplines leading to improved margins
•
Continued optimisation for retail
Finance
•
Finance continued focus on targeting high quality borrowers
•
Risk pricing refinement
•
Continue to make investments in digital and system integration
Credit/Management
•
Significant share increase in NZ Corporate debt collection
•
SME focus: integrated with key systems (eg. Xero / MYOB)
28• FY20 RESULTS PRESENTATION
Insurance
•
Good progress in building out distribution
•
Risk pricing refinement
•
Insurance system providing more flexibility and agility

Automotive retail
Revenue $224.9m 0%, Segment Profit $13.8m -24%
Underlying Segment Profit $13.3m (FY19 $14.9m)
Turners Cars Whangarei
29• FY20 RESULTS PRESENTATION
•
NZ used car markets down 3% with dealer channels down 4% in FY20
•
BuyNow (retail sales) down 0.5% with new North Shore Branch coming
on stream from August.
•
Inventory value up at year end reflecting impact of COVID-19 in
Feb/Mar $44.4 (FY19 $38.9)
•
Unit sales of owned stock up 8%, with average gross profit per unit up
12%.
•
20% less consignment stock from lease and other consignment
vendors in FY20 (3,315 units down)
•
Transition of Buy Right Cars into Turners Cars and integration into the
full auto retail business has been successful
•
Damaged vehicle units up 12% in FY20, Timaru hail storm and Sky City
Fire
•
Average Net Promoter Score for FY20 at 71 (FY19 at 55)
Auto Retail Breakdown FY19 to FY20 ($Millions)
One offs -include gains on property settlements / sales of $3.3m in FY19 and $500k
positive IFRS-16 adjustment in FY20

Finance
•Finance improvement driven by writing higher quality
new business and the resulting improved arrears
performance. In addition a COVID-19 overlay has been
applied to finance receivable provisioning ($1m
increase).
•3-tier risk pricing model enabling better risk for reward
model.
•Premium and Tier 1 loans now account of 76% of the total
book (FY19 63%).
•High quality Turners Cars ledger at $52m
•Use of comprehensive credit scoring alongside negative
credit scoring enables more accurate profiling of customers.
Revenue $45.7m +4%, Segment Profit $12.2m +10%
Underlying Segment Profit $12.1m (FY19 $10.3m)
FY19 to FY20 Receivables Bridge
MTF –Motor Trade Finance
OFL –Oxford Finance Limited
TF –Turners Finance
30• FY20 RESULTS PRESENTATION

Insurance
•Combined loss ratio 62% (FY19: 64%), MBI loss ratio at 66%
(FY19 at 75%).
•New policy generation system for retail performing well and
providing agility and flexibility on risk pricing.
•Continued review of dealers portfolio performance for risk
pricing and review of incentives and rebates.
•Opex as a % of Gross Earned Premium down to 23% (FY19 24%,
FY18 30%)
•Culture and conduct review completed...implementation
plan progressing well
•General Gross Written Premium down 7% to $33.9m as a result of
COVID-19 impact and de-risking of portfolio
•MARAC distribution arrangement implemented and working
well.
•FY19 includes gain on sale from investment property of $3m
Revenue $44.1m -9%, Segment Profit $6.2m -25%
Underlying Segment Profit $6.2m (FY19 $5.2m)
31• FY20 RESULTS PRESENTATION

Creditmanagement
•Total debt load down 5% to $225m, debt collected up
14% to $67m
•Commission earned from debt collected up 21% to
$10m.
•Xero and MYOB integration completed, 420+
customer connections loading more than $3m in
debt.
•Contact centre retention improved significantly
with all work from home systems operating at
100%
Revenue $17.9m -1% Segment Profit $6.5m +3%
Underlying same as reported
Debt Collected FY19 to FY20($000s)
32• FY20 RESULTS PRESENTATION

33 • FY20 RESULTS PRESENTATION
Summary
And Q&A
6

FY20 Results Overview
34• FY20 RESULTS PRESENTATION
•NPBT $29.1M in line with FY19
and guidance ($28m – $30m)
•Underlying NPBT $28.8m up 11%
•NPAT $20.9m down 8%
•Final Q4 Dividend (incorporating
the Q3 deferred dividend)
declared at 6.0cps
•EPS 24.3cps (FY19 26.3cps)
•
Accelerate market share gains
•
Leverage high trust brand
•
Diversified and Integrated business
•
Digital advantage
•
Balance sheet capacity supports
growth
FY20 Financials
•Auto Retail: fully operational with
sales stronger than expected
•Finance: Credit policy tightened for
new lending and arrears performing
well
•Insurance: New policy sales
recovering, claims tracking below
expectations
•Credit: SME debt load building, with
larger corporates to restart in June
Q1 UpdateKey Themes for FY21

Outlook
35• FY20 RESULTS PRESENTATION
•Due to the level of unprecedented uncertainty in the economy it will be difficult to issue
guidance for FY21. We will update over coming months with progress, and plan to give
guidance around the AGM in September.
•At beginning of lockdown we modelled out 3 scenarios (Worst, Likely and Best) and we are
tracking above the best case currently.
•April and May trading have been significantly better than what we expected (refer to slide
13) as we moved through Alert Levels faster...benefits of cost focus, rent reductions and
wage subsidy have been material.
•The offset of having annuity revenue businesses (finance and insurance) within the group are
proving very valuable in turbulent times.

36 • FY20 RESULTS PRESENTATION
Questions
36• FY20 RESULTS PRESENTATION

37 • FY20 RESULTS PRESENTATION
Appendix
37• FY20 RESULTS PRESENTATION

Finance drill down
350
400
450
500
550
600
1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20
Average customer Equifax
Credit score
Improving Customer Credit Scores
Oxford Finance
89%
11%
Total Lending by Asset Class
Motor VehicleOther
2.7%
0.1%
14.4%
2.3%
0.3%
19.3%
0.0%
5.0%
10.0%
15.0%
20.0%
OFLTFIMTF NR
Consumer Instalment Arrears by Channel
Mar-19Mar-20
38 • FY20 RESULTS PRESENTATION

Disclaimer
39• FY20 RESULTS PRESENTATION
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 inthe 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 forwardlooking
statements, whether as a result of new information, future events or otherwise.

Contact
Todd Hunter
Group CEO
T: +64 21 722 818
E: todd.hunter@turners.co.nz
Aaron Saunders
Group CFO
T: +64 27 493 8794
E: aaron.saunders@turners.co.nz
40• FY20 RESULTS PRESENTATION

---

Distribution Notice
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(Please mark with an X in the Half YearSpecial
relevant box/es)
DRP applies
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Totalmoniesassociatedwiththe
distribution
5,133,282.60$
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Gross distribution
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Excluded amount (applicable to listed
PIEs)
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Iffullyorpartiallyimputed,please
state imputation rate as % applied
Imputationtaxcreditsperfinancial
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financial product
Name of person authorised to make
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Date of release through MAP
Section 1: Issuer information
Turners Automotive Group Limited
Ordinary shares
TRA
NZVNLE0001S1
Section 3: Imputation credits and Resident Withholding Tax
14 July 2020
13 July 2020
24 July 2020
Retained earnings
NZD
Section 2: Distribution amounts per financial product
$0.08333333
$0.06000000
n/a
$0.01058824
Todd Hunter
021 722 818
Todd.Hunter@turners.co.nz
18 June 2020
Fully imputed
28%
$0.02333333
$0.00416667
Section 4: Authority for this announcement
Barbara Badish