TRA NZSA Investor Day Presentation

1• OCT 2020 NZSA MEETING
TURNERS
AUTOMOTIVE GROUP
NZSA Meeting
28 October 2020

2• OCT 2020 NZSA MEETING
Meeting Agenda
1. Turners Overview –Todd Hunter
2. Auto Retail Division –Greg Hedgepeth
3. Finance Division –Todd Hunter
4. Insurance Division –James Searle
5. Credit Division –Dave Wilson
6. Capital & Funding –Aaron Saunders
7. Questions and Answers –All

3• OCT 2020 NZSA MEETING
Building quality ...

4• OCT 2020 NZSA MEETING
A Transformed Business
As at March YEFY10FY15FY20
Shareholder Equity ($m)
(3)121223
Total Assets ($m)
109329708
NPBT ($m)
(18)1929
Dividend per Share (cps)
-10.0 14.0
Market Capitalisation ($m)
4202118
Numbers adjusted for 1-10 share swap in 2016
Note -$118m
valuation as at 31
March 2020

5• OCT 2020 NZSA MEETING
Robust improvement in earnings and dividends
TRA has one of the highest dividend yield on the NZX
1
Source: NZX. Based on rolling 12 month gross div (net div + imps) divided by share price at 14 September 2020.
Excludes three NZX-listed higher yields (LIC (because co-op); NWF (because micro-cap with $39m mkcap); KMD (because dividend suspended).
2
Dividends fully imputed from FY17 onwards

6• OCT 2020 NZSA MEETING
What is our ambition for Turners?
To be New Zealand’s
best place to buy and
sell vehicles with
continually high
customer satisfaction

7• OCT 2020 NZSA MEETING
The rationale for the group’s structure is now proven
The Strategic Reviews for Oxford and EC Credit determined that the group was most
valuable in its current structure
Consumer brandsWholesale/B2B brands

8• OCT 2020 NZSA MEETING
Business unitWhat we liked pre-COVID?What we like post COVID?
Auto retail
•Used cars is a large resilient market
•Leading “trust” brand
•Diversifiedsources of supply
•Acquiring strategic sites and building
property portfolio over time
•Used cars have demonstrated
resilience
•Geographical diversification
•Diversifiedsources of supply
•Trust brand
Benefit of Auto business became clearer in COVID

9• OCT 2020 NZSA MEETING
Business unitWhat we liked pre-COVID?What we like post COVID?
Finance
•Challenger brand
•Promising signs from de-risk strategy
•Pricing risk differently
•Annuity earningshelpful in lockdown
•Arrears proven to be robust
•De-riskingstrategy working well
Benefit of Finance business became clearer in COVID

10• OCT 2020 NZSA MEETING
Business unitWhat we liked pre-COVID?What we like post COVID?
Insurance
•#1brand in niche insurance
•Promisingsigns from de-risk strategy
•Improvements in distribution
•Using a portion of capital reserves to
build property portfolio used in
AutoRetail
•Annuity earningshelpful in lockdown
•Premiumtaken up front
•Technology and distribution
•Using a portion of capital reserves to
build property portfolio used in
AutoRetail
Benefit of Insurance business became clearer in COVID

11• OCT 2020 NZSA MEETING
Business unitWhat we liked pre-COVID?What we like post COVID?
Credit Management
•Strong cash flows
•Capital light business
•Dataand web opportunity
•Payment bank stickier than expected
•Counter-cyclical, defensive
•Strong relationships from debtloaders
Benefit of Credit business became clearer in COVID

12• OCT 2020 NZSA MEETING
Resilient and well placed for an uncertain environment
COVID was a stress-test, but we exceeded expectations
1. Used car market is resilient
2. Diversified business
3. High “trust” brands
4. Digital is a competitive advantage
5. Strong and sustainable yield
6. Experienced management team and directors

13• OCT 2020 NZSA MEETING
1. Market - The used car market is resilient and robust
•COVID had a temporary impact, before a strong
rebound in June and July
•August impacted by second lockdown, AKL sales
dropped most (c.1/3 of population)
•Net migration has added to post lockdown
demand
•Underlying demand still strong with more cars
exiting the fleet
•Mar 2020: all vehicles imported into the
country required to have ESC, impact in sub
$8k budget segment
•Cost of repairs increasing
•Stricter WoF regime
•20% of vehicle fleet 20 years or older
Source: NZTA
0
20,000
40,000
60,000
80,000
100,000
120,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
NZ Used car change of ownerships
20192020

14• OCT 2020 NZSA MEETING
2a. Geographic diversification
Our 37 sites nationwide offer a unique advantage
•
Geographical diversification
allows the business to
redeploy inventory
•
Advantage if there are any
localised lockdowns or
regional demand differences
•
Online sales / click n collect at
any branch nationwide

15• OCT 2020 NZSA MEETING
2b. Business diversification
Turners Group is a purposefully diversified business
Each business has different business cycles:
•
Stable annuity revenue (finance +
insurance) helps offset short-term drop in
activity-based revenue (auto retail + credit).
•
Credit management is counter-cyclical
•
Can increase our mix towards consignment
(reduce working capital & any pricing risk).

16• OCT 2020 NZSA MEETING
3. Brand - leverage the high trust Turners brand
Trust is even more important in a time of uncertainty
•Most trusted brand: Turners is consistently
NZ’s leading used auto retail brand
(independent market research)
•100% online sales demonstrates trust: Sold
600 vehicles during Level 4 and 3 lockdown.
The ability to sell uninspected vehicles online
at scale demonstrates the high trust and
awareness of the Turners brand
•Valuable online presence: Second most visited
auto site, with traffic online hitting all time
highs
2020 Readers Digest Trusted Brand Award:
NZ’s most trusted used car dealer.

17• OCT 2020 NZSA MEETING
4. Digital advantage
Continue to invest in this crucial competitive advantage
•Maintained headcount of Technology
team: 26 FTE (Applications
15,Infrastructure/Operations11)
•Major investment and resource
commitment in high redundancy data
centre spread between 2 sites (AKL +
HAM)
•Turners Car Subscription launched in
mid-Sept
•Focus going forward on digital
marketing, customer data platform and
marketing automation

18• OCT 2020 NZSA MEETING
•Q3 dividend (payable April-20) was
deferred as a precaution due to
uncertainty of L4 lockdown
•Final FY20 6.0 cps dividend paid July-20
•FY21 Q1 dividend declared at 4.0 cps
•Turners’ dividend stream is supported by
its robust balance sheet and stability of
earnings, even in this extreme
environment
•Directors intend to continue current
dividend policy during FY21 (60% to 70%
of NPAT).
Dividend per share (cents)
2
0.100
0.130
0.145
0.155
0.170
0.140
0.00
0.02
0.04
0.06
0.08
0.10
0.12
0.14
0.16
0.18
FY15FY16FY17FY18FY19FY20
5. Attractive + defensive dividend yield
TRA has a high dividend yield

19• OCT 2020 NZSA MEETING
6. “Through the cycle” experience
Team has alignment with shareholders, and plenty of experience, including the GFC
•Board and management own just under 30% of shares in the company
- high degree of alignment with shareholder interests
•Each business unit has key executives / directors who managed these units during GFC
•Board continue to be actively involved in key areas of the business where skills directly apply
•COVID response: board + mgmt. met every few days, ongoing review of critical business KPIs
•Board and mgmt. work collaboratively with ongoing business improvement.

20• OCT 2020 NZSA MEETING
•Quality of our trusted brands
•Purposefully diversified business model
•Risk optimisation
•Extending our competitive advantage for digital
Building a quality business

21• OCT 2020 NZSA MEETING
Our business
Credit Management
Insurance
Auto Retail
Finance

22• OCT 2020 NZSA MEETING
Greg Hedgepeth
Auto Retail Division CEO
Auto Retail Division

23• OCT 2020 NZSA MEETING
Auto Retail – What do we do in the business?
New Zealand’s favourite place to buy & sell vehicles (~33,000 cars p.a.)
CARS Division (80% of sales):
•Transition from auction/wholesale to retail/consumer ... better yield and cross-sell
to Finance and Insurance
•~50% of cars sold on consignment (e.g. govt, lease, finance companies)
•~50% direct: purchased to sell, take price risk on owning the asset. e.g. public,
dealers, imports, de-fleets.
COMMERCIAL Division (20% of sales):
•Trucks & Machinery plus Salvage (insurance write-off) vehicles.
•Predominantly a consignment business that utilises the Auction sales channel,
almost exclusively transacted online.
•Re-marketing contracts in place with some of NZs biggest Insurers and Civil
Contracting firms.

24• OCT 2020 NZSA MEETING
Auto Retail - Today
#1
NZ’s largest buyer and
seller of vehicles
31
Locations in NZ from
Whangarei to Invercargill
24,000
Damaged vehicles sold on
behalf of insurers in FY20
6 mins
Turners sell 1 car every 6
minutes, which equates to
over 100 cars per day
470
Avg number of finance
contracts written per month
465
Kiwis employed across
Auto retail business
$43m
Worth of Trucks & Machinery
sold in FY20
97%
Customers ‘that would recommend
Turners’ via Buyerscore (our customer
feedback platform)
NZ’s #1 most trusted used
vehicle dealership brand

25• OCT 2020 NZSA MEETING
Auto Retail – Why are we good at it?
• Experience –We have been doing this for over 50 years. We constantly learn, fine tune & evolve.
• Size –We are by far the biggest and we are located in almost every city across NZ
• Brand –Kiwis know Turners and they trust us in a market that stands for the opposite of this
• Fresh approach –We are disrupting the traditional used vehicle sales model
• Economies of scale –Our scale enables us to deliver better value .
• Low pressure selling –We help people buy cars we don’t sell to them.
• Digital –We use technology and a digital first approach wherever we can.
• Our people –they are experts in their field, highly engaged, fully aligned to our guiding principles.

26• OCT 2020 NZSA MEETING
Auto Retail – What do we do differently?
• Diversification of locations and supply –mix of locations nationwide.
• Diversification of supply –mix of consignment + owned stock (from multiple supply sources).
• Customer Driven –we have a relentless focus on our customers.
• Scale –very high volume of vehicles meaning we can pass these savings on to our customers.
• “Bricks and clicks” –physical locations go hand in hand with the online experience.
• Unfair advantage –NZ’s biggest vehicle transaction database. Helps us buy & sell better than others.
• Technology investments –we invest much more in tools and projects to help improve our customer
experience or to help us operate the business more efficiently.
• Digital first –every challenge or opportunity we face is approached with utilisation of digital solutions.

27• OCT 2020 NZSA MEETING
We continue to optimise our network
Our focus this year is on continued retail optimisation
New Dunedin operation (opened May 2020)
Continue to optimise retail network

Transition from wholesale to retail (eg. exit Penrose, open Mt
Richmond and Westgate)

Rationalise sub-scale sites
We want to be closer and more accessible to our customers

Omnichannel world: our sweet spot is c.10,000m2, high profile
site, adjacent to large customer catchment eg. Westgate

Convenience is key, manageable selection on each site, but max
selection online. Cars are moved around in region (JIT approach)

Logistically easier to manage a 10,000m2 site than 40,000m2
We continually and cautiously assess new sites - lease or own ...
Our property portfolio now 8 sites (valued on books at $50m)

Retail Units up 34% Aug YTD

Gross Profit per unit up 43%

Operating profit $243k v $31k in FY20
New Westgate operation (opened Oct 2020)

28• OCT 2020 NZSA MEETING
Some examples of our Digital First approach.
We can run diagnostics on any vehicle.
Ensure vehicles are ready for sale, reduces future issues.
Buy better: identify hidden issues before agree purchase price.
Example uses
VW Golf with no lights on. But scan tool found codes had been cleared
recently. Car had multiple issues. Paid $3,000 less.
Holden Commodore with engine check light on. Seemed fine, then
plugged in scan tool. Catalytic converters causing engine check light,
but also found other faults (ABS, body control module). Paid $1,000
less.
Example 1: Diagnostic ScannersExample 2: Buysafe program
•Rapid deployment of contactless 100% online buying
process in 1
st
week of lockdown.
•Required change to our core systems, online platform,
marketing program and operational processes.
•5 day money back guarantee developed in consultation
with vendors ... now applies to all retail vehicles sold to
consumers.
•Virtual inspections of vehicles. Contactless handover at
branch or home.
•Used in April/May however since then people have
reverted to more traditional modes of purchasing.

29• OCT 2020 NZSA MEETING
Questions

30• OCT 2020 NZSA MEETING
Todd Hunter
Group CEO

31• OCT 2020 NZSA MEETING
History of Oxford Finance
Oxford Finance includes the former Dorchester and Southern Finance businesses
1992: Venture Pacific Ltd rebrands as Dorchester Pacific Ltd
2014: Dorchester Pacific purchases Oxford Finance
Dorchester Pacific acquires Turners Group
2015: Dorchester Finance purchases Southern Finance
2016: AutoApp Launch
2017: BNZ securitisation facility is established
Amalgamation of Oxford Finance, Dorchester and Southern
Finance brands on to a single receivables platform
2018: Turners Auto-Retail loans redirected via Oxford Finance
2019: Centrixcredit reporting (CCR) implementation

32• OCT 2020 NZSA MEETING
Finance Today
$291m
Gross receivables less
impairments @Sept-20
$251m
Consumer ledger less impairments
@ Sept-20
$40m
Commercial ledger less
impairments @ Sept-20
95
Number of customers in
hardship
14,158
Number of open consumer
loans @ Sept-20
$12,400
Average consumer loan size
193
Average number of dealers and
brokers who originated business
per month Q2 FY21
95%
95% of loans secured by a vehicle
12%
Ledger has grown over $30m
from Sept 2019 to Sept 2020

33• OCT 2020 NZSA MEETING
Summary of origination channels
Oxford Finance distributes via a diverse range of channels
Turners Origination Channels
•Turners Auto Retail
•3
rd
party consumer – via 400+ dealers and brokers across NZ
•3
rd
party commercial – via 75+ finance brokers + dealers across NZ
•Direct – via Oxford website
52.8
55%
18.8
20%
5.2
5%
19.7
20%
New Lending by Channel FY21 YTD ($000s)
ConsumerTurnersDirectCommercial

34• OCT 2020 NZSA MEETING
•Investment in market leading online portal, AutoApp
•Introduction of auto-scraping of bank account data
•Early adoption of Centrix Credit Rating positive credit
•100% online loan signup process introduced
•Move to “price for risk” multi-tier model
•Current strong offering across 3 tiers of risk vs competitors tend to focus on
only one tier
•Leverages Centrix data + proprietary information to create credit score
•Direct channel offering allows Oxford Finance to start its relationship with
the customer earlier in their purchase journey
•Will take a “digital first” approach to this lending opportunity
Strategy
Focus on providing a competitive product, that meets needs of introducers + customers
Strong, diversified introducer relationships
•400+ originator relationships
Direct and digital are a big opportunity
Risk pricing approach to improve quality
Reduce sales friction through technology

35• OCT 2020 NZSA MEETING
Credit scores improve; arrears decline, market share increases
350
400
450
500
550
600
650
1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 1H21
Avergae consumer VEDA
credit score
Improving Customer Credit Scores
Oxford Finance
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
Oct-19
Nov-19
Dec-19
Jan-20
Feb-20
Mar-20
Apr-20
May-20
Jun-20
Jul-20
Aug-20
Total Arrears %3 per. Mov. Avg. (Total Arrears %)
1. High quality Turners Auto-Retail origination
tracking ~2% total arrears with ledger size of $55m
2. Introduction of Centrix Credit Rating (CCR)
3. Expanding the Risk Based Pricing Model / Premium
Tier Introduction
4. Low quality MTF and DPL Legacy loans run-off

36• OCT 2020 NZSA MEETING
Questions

37• OCT 2020 NZSA MEETING
James Searle
Insurance Division CEO

38• OCT 2020 NZSA MEETING
Insurance – What do we do in the business?
We help Kiwis with motor vehicle, loan protection and life insurance solutions
•Distributed through licensed car dealers, finance companies & brokers, life insurance advisers and online
•Head office in Auckland (incl. claims and operations teams), sales representatives throughout NZ
•Range of products:
•Mechanical breakdown insurance
•Payment protection insurance
•Guaranteed asset protection insurance
•Car insurance
(underwritten by Suncorp New Zealand)
•Term life & funeral insurance
EXAMPLES OF WHITE LABEL BRANDS

39• OCT 2020 NZSA MEETING
Insurance Today
6,000+
Number of insurance
policies sold per month
3,252
Mechanical Breakdown Insurance
policies sold per month
$24.6M
Value of claims paid in FY20
200,705
Number of active policies as at
Sept 20
915
Number of active dealers and
brokers selling our products
46
We employ 46 kiwis across
the Insurance business
1,887
Monthly average number of
claims paid out in FY20
32
Number of years James Searle
has been involved in Insurance
$34.5M
Value of new polices sold in FY20

40• OCT 2020 NZSA MEETING
Insurance – Why are we good at it?
We’re passionate about cars and love being part of the motor vehicle industry.
This means we’re driven to protect customers throughout their ownership journey.
•34 years ago we were one of the first players in this industry and continue to be a leader in the market
•Our Autosure brand is one of the strongest amongst motor vehicle dealers and is widely recognised by
Kiwis
•With the data we’ve collected over the years, we have the knowledge to correctly price for risk and enhance
our product offerings
•Our well-established relationships with repairers and parts suppliers enable us to effectively and efficiently
repair vehicles for customers
•We use technology to enhance our offering, connectivity with our agents and customer experience

41• OCT 2020 NZSA MEETING
Insurance – What do we do differently?
• Our value proposition is based on service and quality
• Expertise and economies of scale in vehicle repairs delivers value for customers
• Our premium rating and underwriting controls are more refined
• Network: We have an extensive approved repairer network and parts supply chain
• Industry: We are actively involved within the NZ motor vehicle and consumer finance industries
• Digital: Our use of technology and linking with third party systems improves customer experience
• Data-led: We actively use our extensive data and IP for decision making

42• OCT 2020 NZSA MEETING
Questions

43• OCT 2020 NZSA MEETING
Dave Wilson
Credit Division CEO

44• OCT 2020 NZSA MEETING
SME customers load via
web portal or directly via
Cloud Accounting App
Money collected via payment arrangement or
one off payment via web self service portal
Debtors run through dialler system
which allocates calls to contact
centre team members
FOCUS is an analytical process which creates
a “propensity to collect score” to enable
prioritisation of collection strategies
ECCC has a proprietary system for managing
the debtors and collection of money
ECCC generates commission from debt
collected...we do not buy debt, only
collect on a contingent basis
Corporate clients load debts
by file transfer or csv file
In the event we are unable to collect a default can be listed
against the credit file or a discussion on commencing legal
action takes place
The debt collection process
Capital light business model and strong cash generator
Debt load from SME and Corporate Customers
Run debtors against FOCUS to generate
“propensity to collect score”
Debtor actions happen –letters,
text, email, phone call
Debt collected
Default list,
legal action

45• OCT 2020 NZSA MEETING
Credit Management Today
$178.7m
Corporate debt load in FY20
$64.1m
Amount of money collected from
debtors FY20
3,176
Number of SME clients loading
debt FY20
472
Number of SME clients who
have loaded debts via Xero
and MYOB since April 2019
100%
Of all major trading banks
have ECCC on the debt
collection panels
57
We employ 57 people in our
business 52 are based at Head
Office in Napier and 5 in Australia
32.7%
The average recovery rate for
Corporate debt loaded FY20
36
Number of independent contractors
selling our debt collection products
and credit management tools across
NZ and AUS
31.1%
The average recovery rate for
SME debt loaded FY20

46• OCT 2020 NZSA MEETING
• Debt Recovery –represent all major trading banks and finance institutions in
New Zealand as well as many major household brands.
• Terms –Typically we’re on a debt collection panel which uses “champion
challenger” model - debt gets allocated proportionately based on your results.
• Brand protection –During Covid-19 protection of our clients brand has been a
priority due to potential reputational risk.
• Expert Guidance –Working closely with SME clients across many industries
and provide expert guidance on credit management issues.
• More than debts –We collect debts but we also sell products that help protect
the business eg. Terms of Trade.
• Connected –Helping clients load their debt faster - online and through
connectivity with cloud based accounting apps:
46
Credit – Why are we good at it?

47• OCT 2020 NZSA MEETING
•A large sales force operating across NZ and Australia,
we can provide expertise on the ground
•We do more than just debt collections...we are experts
on all facets of credit management
EG - Terms of Trade documentation – The protection
Credit reporting (partnership with Equifax)
Personal Property Securities Registrations (PPSA)
•Debt Recovery – Use FOCUS (our in-house analytical
modelling tool) to predict the “propensity to collect
score”... allows us to rank / prioritise collection efforts
Sales Force
NZ –
11
Australia –
25
1,972
Terms of Trade written in
the past 2 years
310
clients purchased a credit
reporting pack
1,586
clients purchased PPSR
vouchers
Credit – What do we do differently?

48• OCT 2020 NZSA MEETING
Questions

49• OCT 2020 NZSA MEETING
Balance Sheet
and Funding
Aaron Saunders
Group CFO

50• OCT 2020 NZSA MEETING
•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 receivables 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

51• OCT 2020 NZSA MEETING
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
•No renewals on debt until 2021
•74% of total debt in business relates to finance receivables.
•Finance has an equity to total assets ratio of 23%.
•$15m increase in funding headroom since March 31, focus
has now shifted from de-leveraging to supporting further
growth and extending facility duration
Funding Mix ($M) as atSept 30Limits Drawn
Finance Receivables Funding
Securitisation230 182
Banking Syndicate60 43
MTF Receivables (Auto Retail)7 7
Less Cash(8)
Net Receivables Funding297 224
Funding Capacity73
Corporate and Other Borrowings
Corporate & Property -Banking Syndicate 70 45
Inventory -Banking Syndicate30 13
NZX Listed Bond25 25
Less Cash(11)
Net Corporate Borrowings125 72
Funding Capacity53

52• OCT 2020 NZSA MEETING
Capital Management and Dividends
•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 7.3% at indicative price of $2.65
as at 23/10/20 ... (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
•FY21 Q1 dividend paid on 22 October at 4.0 cps
•FY21 projected dividend at mid-point of NPBT guidance
is 17cps
Dividend per Share (Cents)
Dividends fully imputed from FY17 onwards
0.10
0.13
0.15
0.155
0.17
0.14
0.17
0.00
0.02
0.04
0.06
0.08
0.10
0.12
0.14
0.16
0.18
FY15FY16FY17FY18FY19FY20 FY21 Projected

53 • OCT 2020 NZSA MEETING
Summary+
Overall Q&A

54• OCT 2020 NZSA MEETING
Our focus for FY21
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 through data driven risk pricing
•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
54• OCT 2020 NZSA MEETING
Insurance
•Cost and claims management discipline
•Increasing distribution through partnership strategy and sales integration
into other businesses eg Marac
•Enhance risk pricing

55• OCT 2020 NZSA MEETING
•
The business has rebounded strongly since lockdown and demonstrated resilience
•
The business has momentum and YTD trading provides some optimism into 2H21
•
Targeting FY21 NPBT to be in the range of $28m to $31m.
•This is conditional upon no further substantive lockdowns occurring before year end
•
Indicative full year dividend at this NPBT level would be 17.0 cps (fully imputed)
•
FY21 Q1 dividend declared at 4.0 cps
FY21 outlook

56• OCT 2020 NZSA MEETING