Funding arrangements and FY20 guidance

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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25 June 2020

MEDIA | NZX RELEASE
TOURISM HOLDINGS LIMITED (thl)

FUNDING ARRANGEMENTS AND FY20 GUIDANCE

thl today provides a further update on the business including its funding arrangements and
expectations for FY20.

Funding arrangements
As advised on 11 June, thl has been in discussions with its banking partners regarding ongoing
funding arrangements. These discussions have now concluded and thl has entered into a
binding term sheet with its banking partners reflecting these new arrangements. Formal
documentation is expected to be completed in the coming days.

Commitments have been provided by thl’s banking partners for debt funding of approximately
$225 million, consisting of a number of tranches maturing between September 2021 and July
2022.

thl’s new funding arrangements also include:

 a requirement for consent from thl’s banking partners for any distribution to shareholders
or capital expenditure beyond a prescribed amount, during the term of the facilities;
 that thl’s existing earnings-based covenants (leverage ratio and interest coverage ratio)
will not be tested until 1 July 2022, however other existing covenants (equity ratio and
guaranteeing group ratio) remain applicable;
 new covenants relating to minimum shareholder funds, and a cumulative EBITDA
requirement (tested quarterly) from the period ending on 30 September 2021; and
 new undertakings requiring that EBITDA and vehicle sales performance are not greater
than 15% below amounts determined in a banking case scenario model (tested quarterly),
based on thl’s expectations as set in April 2020. If these levels were not met then an ‘event
of review’ would occur. This would mean that the company would commence discussions
with thl’s banking partners to agree a path that would enable the company to retain the
full use of its banking facilities.

Given these new funding arrangements and the current outlook for the business, thl has
determined that it does not require additional equity.

FY20 earnings and debt guidance
thl expects to report an underlying net profit after tax of $17.5 – $19 million for the financial
year ending 30 June 2020 (FY20). This guidance excludes the impact of the partial Togo exit
undertaken in March 2020, or any potential impairments or other non-ordinary items.

As a result of continued outperformance in vehicle sales, particularly in the United States, as
well as an improvement in thl’s working capital position, we now expect that net debt as at 30
June 2020 will be approximately $140 – $145 million.

As part of its year-end process, thl is undertaking impairment testing across its businesses. As a
result of the expectation that the Kiwi Experience business will be hibernated until
international borders reopen, the Board has approved the write-off of the full $3.1 million of
goodwill attributed to Kiwi Experience on its balance sheet. Nevertheless, thl remains
committed to the Kiwi Experience business and looks forward to reopening the business when
long haul international tourism recommences. thl is in the process of the annual impairment
testing which is completed as part of its year-end and audit processes.

Dividend
Reflective of thl’s focus on debt reduction, the inherent uncertainty in the operating
environment and thl’s new funding requirements, the thl Board has determined that no final
dividend will be declared for FY20.

Financial reporting
Due to the impact of COVID-19, thl intends to rely on the Financial Markets Authority’s
extension of financial reporting deadlines. thl expects to release its results for FY20 on Friday,
18 September 2020.

We expect to provide a market update on the framework by which we plan to run the business
in FY21 by the end of July.

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. 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.