2020 Annual Meeting Address

F Y 1 9
F U L L Y E A R R E S U L T S
P R E S E N T A T I O N
2 0 2 0 A N N UA L
S H A R E H O L D E R S
M E E T I N G P R E S E N TAT I O N
Resilience
to reset
30 October 2020

2 0 2 0 A N N U A L M E E T I N G P R E S E N T A T I O N
2020 Annual Meeting
•Welcome
•Questions can be submitted at any time during the meeting –for assistance refer
to the online portal guide or contact the helpline on 0800 200 220
•Quorum present
•Directors and management team in attendance

2 0 2 0 A N N U A L M E E T I N G P R E S E N T A T I O N
Proxies and postal votes
•Valid proxy and postal votes: 35.3M
•Proxy and postal as percentage of ordinary shares on issue: 23.8%
•Proxies received identifying Chair of meeting as proxy: 32.9M

2 0 2 0 A N N U A L M E E T I N G P R E S E N T A T I O N
Agenda
•Chair’s address
•Chief Executive’s address
•Chief Financial Officer’s first impressions of thl
•General Q&A session on business and performance
•Three resolutions
•Close of meeting

Chair’s
Address
Rob Campbell

2 0 2 0 A N N U A L M E E T I N G P R E S E N T A T I O N
Chair’s address
6
•A challenging year with the most significant social and economic disruption in
recent times
•The future is highly uncertain and it is difficult to predict when tourism will
recover, but it is becoming apparent we will have some form of disruption for at
least the next 12 months

2 0 2 0 A N N U A L M E E T I N G P R E S E N T A T I O N
Financial results
7
OPERATING PROFIT BEFORE
FINANCING COSTS AND TAX (EBIT)
1
$48.6M
(FY19 $62.1M)
NET PROFIT AFTER
TAX (NPAT
)1
$27.4M
(FY19 $29.8M)
-5%-22%
REVENUE
$401M
(FY19 $423M)
8 MONTHS
$288.3M
4 MONTHS
$112.6M
8 MONTHS
$53.5M
4 MONTHS
-$4.9M
8 MONTHS
$25.5M
4 MONTHS
-$5.5M
-8%
VEHICLE SALES QUANTITY
2,066
(FY19 2,059)
UNDERLYING NPAT
2
$20.0M
(FY19 $27.9M)
NZ DOMESTIC CAMPAIGN
BOOKINGS
~20,000
0%
1
Inclusive of non-recurring items.
2
Exclusive of non-recurring items. See slide 3 in our FY20 Annual Results presentation.
(FY19 $285.5M)
(FY19 $137.5M)
(FY19 $57.0M)
(FY19 $5.1M)
(FY19 $30.3M)
(FY19 -$0.6M)
(FY19 $30.3M)
(FY19 -$2.5M)

2 0 2 0 A N N U A L M E E T I N G P R E S E N T A T I O N
Chair’s address
8
•Responded swiftly and decisively in making changes that were necessary to
operate in the new environment
•Undergone the biggest organisational change in our history
•Avoided the need for a capital raise by selling down our motorhomes to
generate cash –but this cannot continue forever without re-investing in our fleet
•Net debt will continue to reduce in the first half of FY21 but must necessarily
increase once again as we purchase new fleet to meet demand

2 0 2 0 A N N U A L M E E T I N G P R E S E N T A T I O N
Chair’s address
9
•Environment changing at too fast a pace to provide a forecast for the coming 12
months
•Assume that thl will not make a profit in FY21 given the increased likelihood that
international borders will remain largely closed
•Do not expect to pay a dividend for FY21
•Continue to be future focused despite the immediate issues
•thl is at its core a dynamic company and should not be deterred from continuing
to be growth oriented

2 0 2 0 A N N U A L M E E T I N G P R E S E N T A T I O N
Chair’s address
10
•Continue to review the broad direction of our business and capitalise on
opportunities presenting themselves based on our core skill set
•Being a global company has proven useful and given our business model further
resilience
•Tourism as an industry and thlas a business can only prosper if sustainable and
regenerative
•Thank you to all of our people for their efforts over the last 12 months

Chief Executive’s
Address
Grant Webster

2 0 2 0 A N N U A L M E E T I N G P R E S E N T A T I O N
Acknowledging our people
12
•Our people stepped up to the challenge in front of them and made great
things happen
•Most of our highlights over the last 12 months are attributable to our
dedicated and talented people
•Our restructure affected crew from all aspects of our business
•To those people impacted by these decisions I thank all of you for your
contributions to our business

2 0 2 0 A N N U A L M E E T I N G P R E S E N T A T I O N
Debt reduction
13
187.6
183.9
166.0
127.7
98.2
75.1
49.2
34.8
-
40
80
120
160
200
31-Mar-2030-Apr-2031-May-2030-Jun-2031-Jul-2031-Aug-2030-Sep-2020-Oct-20
Net Debt $M

2 0 2 0 A N N U A L M E E T I N G P R E S E N T A T I O N
Notable achievements and events
14
•Undertaking our structured exit from our technology joint venture Togo Group
•Launch of the fleet management and telematics products within our core rentals
business
•Co-operating with government agencies and private organisations to provide
essential support services
•Four consecutive record vehicle sales months in the USA
•Action Manufacturing success in the non-motorhome commercial sector
•Overcoming the impacts of recent fire at Māngere branch in Auckland

2 0 2 0 A N N U A L M E E T I N G P R E S E N T A T I O N
Senior Executive team
15
Steven Hall
Deputy Chief Financial Officer
Ollie Farnsworth
Chief Commercial & Customer Officer
Matthew Harvey
COO –New Zealand
Kate Meldrum
COO –Australia
Gordon Hewston
COO –Northern Hemisphere
Grant Webster
Chief Executive
Nick Judd
Chief Financial Officer

2 0 2 0 A N N U A L M E E T I N G P R E S E N T A T I O N
The domestic environment
16
Approximate
fleet size*
Domestic residents per thl vehicle
New Zealand2,5001 RV for every 1,900people
Australia1,4401 RV forevery17,000 people
United States1,9001 RV for every 173,000 people
•We are over-fleeted in New Zealand, and to a
lesser extent Australia, relative to the size of
the domestic population
•We see increased fluctuation in customer
demand, lower yield and shorter hire
durations
•Weekend booking pattern results in maximum
achievable utilisation during peak periods
falling by approximately 20% due to vacant
days mid-week
* As at 30 June 2020
% ∆ average yield in the domestic environment*
New Zealand~ 50% lower
Australia~ 30% lower
United States~ 0 –10% higher
* Compared to thl’s historical performance in a mixed international/domestic environment in
each country. Approximate figures and management estimates only.

2 0 2 0 A N N U A L M E E T I N G P R E S E N T A T I O N
Financial outlook
17
•Expecting a domestic only environment in all countries for FY21
•On that assumption we expect an EBIT loss for FY21 at a group level
•Greatest loss expected to be the New Zealand businessesfollowed by Australia
•Expect a small EBIT profit in the USA
•Positioning business to make an EBIT profit in FY22, provided there is a reasonable
quantum of international leisure travel
•USA and Australia positioned to enable an FY22 EBIT profit in a domestic or international
environment, provided there are no interstate travel restrictions across the year

2 0 2 0 A N N U A L M E E T I N G P R E S E N T A T I O N
Capital expenditure and debt
18
•Will be purchasing more fleet than previous expectations, particularly in the USA
•We have committed to around $100Mof capital expenditure in the second half of FY21
•Expect gross capital expenditure of approximately $100M -$130M in FY21 and net
capital expenditure to be negative
•Expect net debt position of around $100M at the FY21 year end

2 0 2 0 A N N U A L M E E T I N G P R E S E N T A T I O N
Strategic focus
19
UNITED STATES
•Reduced fleet, maximised sales and
minimised debt in 2020
•Ongoing investment and fleet renewal in
order to drive profitability in CY2021
•A real domestic rentals opportunity we can
capitalise on as two key operators have
exited the USA market for at least CY2021
AUSTRALIA
•Preparing business for profitable operation
once interstate travel restrictions are lifted
•Balancing vehicle sales and rental fleet
requirements to meet positive demand
profile for CY2021
•Holding fleet size at current levels
•Will consider further investment based on
expectations of performance in full
interstate travel environment
NEW ZEALAND
Rentals
•Increase vehicle sales, servicing and retail
activity
•Initiatives to improve utilisation and yield
in the domestic environment, particularly
in the off-peak periods
Tourism
•Adapt our marketing mix to minimise EBIT
loss

2 0 2 0 A N N U A L M E E T I N G P R E S E N T A T I O N
Strategic focus
20
•We believe we have made the right strategic decisions so far
•We have confidence in our core competencies and capabilities
•We will continue to develop our regional digital strategy in a cost effective manner
•Improving efficiency in our core rentals
•Building out new revenue streams
•Continue to explore operating in the broader RV ecosystem and growing through M&A
•Once borders open we see a positive outlook and will continue our path for growth

2 0 2 0 A N N U A L M E E T I N G P R E S E N T A T I O N
Committed to becoming Future Fit
21
•Firm and ongoing commitment to making progress as a Future Fit Business
•Timing and approach has changed but the way we operate to ensure long-term success
for all stakeholders is unchanged
•Remain invested in electrifying our fleet –but this requires R&D efforts from chassis
suppliers to improve battery range
•Thank you to all of the thlteam and our committed Board
•We now focus on dealing with the challenges of FY21 and leading the industry recovery

Chief Financial Officer
Nick Judd

General Questions
(not relating to resolutions)

2 0 2 0 A N N U A L M E E T I N G P R E S E N T A T I O N
Voting
24
•Three resolutions
•Voting by way of poll
•Vote using the electronic voting card once online registration is validated
•Refer to virtual meeting online portal guide or contact helpline on 0800
200 220

2 0 2 0 A N N U A L M E E T I N G P R E S E N T A T I O N
Resolutions
25
Resolution 1
Re-election of
Cathy Quinn
That Catherine Agnes Quinn, who retires
by rotation and is eligible for re-election,
be re-elected as a Director of the Company.

2 0 2 0 A N N U A L M E E T I N G P R E S E N T A T I O N
Resolutions
26
Resolution 2
Re-election of
Gráinne Troute
That Gráinne Patricia Troute, who retires
by rotation and is eligible for re-election,
be re-elected as a Director of the Company.

2 0 2 0 A N N U A L M E E T I N G P R E S E N T A T I O N
Resolutions
27
Resolution 3
Auditor remuneration
That the Directors are authorised to fix the
remuneration of the auditors for the
ensuing year.

F Y 1 9
F U L L Y E A R R E S U L T S
P R E S E N T A T I O N
General
business
28

Thank you

2 0 2 0 A N N U A L M E E T I N G P R E S E N T A T I O N
Disclaimer
30
This presentation, dated 30 October 2020, may contain forward-looking statements and projections. These reflect thl’s current expectations,
based on what it thinks are reasonable assumptions. For any number of reasons, the future could be different and the assumptions on which the
forward-looking statements and projections are based could be wrong. thlgives no warranty or representation as to its future financial
performance or any future matter. Except as required by law or NZX listing rules, thlis not obliged to update this presentation after its release,
even if things change materially.
This presentation has been prepared for publication in New Zealand and may not be released or distributed in the United States.
This presentation is for information purposes only and does not constitute financial advice. It is not an offer of securities, or a proposal or
invitation to make any such offer, in the United States or any other jurisdiction, and may not be relied upon in connection withany purchase of thl
securities. thlsecurities have not been, and will not be, registered under the US Securities Act of 1933 and may not be offered or sold in the
United States, except in transactions exempt from, or not subject to, the registration of the US Securities Act and applicable US State securities
laws. Past performance information given in this presentation is given for illustrative purposes only and should not be relied upon as an indication
of future performance.
This presentation may contain a number of non-GAAP financial measures. Because they are not defined by NZ GAAP or IFRS, thl’s calculation of
these measures may differ from similarly titled measures presented by other companies and they should not be considered in isolation from, or
construed as an alternative to, other financial measures determined in accordance with NZ GAAP.
This presentation does not take into account any specific investors objectives and does not constitute financial or investment advice. Investors are
encouraged to make an independent assessment of thl. The information contained in this presentation should be read in conjunction with thl’s
latest financial statements, which are available at: www.thlonline.com.

---

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



Self drive
Experiences
New Zealand
Australia
USA
UK


Design &
Manufacturing
New Zealand
Australia

Guided
Experiences
New Zealand


30 October 2020

MEDIA | NZX RELEASE
TOURISM HOLDINGS LIMITED
ANNUAL SHAREHOLDERS’ MEETING

Chairman’s Address - Rob Campbell

We continue to experience the most significant social and economic disruption in recent times. As I
mentioned in our Integrated Report released five weeks ago, to an extent never before seen, the future
of thl and society more generally, is uncertain and the old adage of ‘the only certainty is uncertainty’
rings true. As we near the end of 2020, it is becoming more apparent that we will still be dealing with
the disruption caused by COVID-19 in some manner for at least the next 12 months. We cannot say
when tourism will recover or what recovery will look like. We are working on a wide range of scenarios.

We will not be covering our result in the last financial year in detail today, this is in our Integrated
Report and Annual Results Presentation.

However, on the screen, you will find our performance in FY20 split between the first eight months of
the year and the final four months in which we were impacted by COVID-19. You can see that at an EBIT
level, our performance in the last four months of FY20 was $10 million down on the same period in the
prior financial year.

While the result in the first eight months was also slightly below the prior financial year, given the
events to date in 2020 it is easy to forget that 2019 also had a number of unusual events that impacted
our business, such as the Australian bushfires and 2019 California wildfires.

The increasing occurrence of these historically unusual events is a wake-up call on the existential threat
to our way of living. I consider the disruption to our daily lives from COVID-19 to be an opportunity for

society to reset, and to make meaningful and transformational change, rather than the incremental
change being made in the pre COVID-19 world. We are certainly looking at it this way at thl.

thl had a number of positive achievements over the last 12 months. Our leadership team responded
swiftly and decisively to make the changes to our business that were necessary to operate in the new
environment. The thought put into the changes required was much more than many others in our
industry and gave us a first mover advantage in the COVID-19 alternative revenue space. Our
relationships and knowledge of the RV industry, and operational excellence, which we have developed
over decades, came to light and protected company value and jobs.

Unfortunately as part of those decisions, we had to make the biggest organisational change in the
history of thl. It was simply not sustainable to carry the same cost base when there was such a
substantial shock to our revenue. Our team understood this and again I would like to thank all of our
former staff for their contributions to thl.

During the peak of the global lock downs, there was much speculation as to when thl would launch its
capital raise and how much it would require. The Board considered and investigated the possibility in
depth at a number of different times, but ultimately given the flexibility of our business model, and
where the share price was trading, it did not make sense at the time to capital raise.

In lieu of the capital raise, we have been selling down our surplus motorhomes to generate the cash we
require to see us through this period. While we have been successful to date in this regard, supported
by a buoyant market given the resurgence of domestic tourism in each country we operate in, this can
only be a temporary solution as ultimately we have a finite number of vehicles.

Our sales programme has been sensible. We have focused on selling vehicle types we had in surplus and
have sought to sell vehicles evenly across all model years. It has not been a rushed realisation of assets.
We have successfully managed to reduce debt substantially and well above our original plan.

We will see our net debt reduce further during the first half of FY21, possibly reaching lows of around
$30M, but it must then necessarily increase once again as we reinvest in the fleet we require to meet
demand in a very changed but still active market in each country.
We are prudently recycling assets to deliver the best possible outcome.

As mentioned in our Integrated Report recently, it would be foolish to provide a forecast for the coming
12 months while the environment changes at such pace. However, given the increasing likelihood that
international borders will be largely closed across all of the current financial year, we are progressing on
the assumption that thl will not make a profit in FY21. We are and will continue to make every effort to
ensure that any loss is mitigated to the extent possible.

One obvious consequence of that is that we would not expect to pay a dividend for FY21, as was the
case for the last financial year. We acknowledge the impact that this has had on shareholders. The
priority has been and remains to protect value and optionality in the business. We will review our
ongoing dividend policy when the markets and our strategy are clearer than is possible at this time.

Despite the immediate issues, we must ensure that we continue to remain future focused. At its core,
thl is a dynamic and growth company, and the current environment should not deter us from continuing
to be growth oriented.

Our business model has pivoted substantially over recent months, and we continue to review the broad
direction of our business and any opportunities that we can capitalise on based on our core skill set.
Being a global company has proven useful as the countering high seasons and at times different market
dynamics give our business model further resilience.

This has been a rather low key review of a tough year and there remains a hard road ahead for thl. But
we remain of a positive mindset. Great holidays and experiences are important parts of well being. In
each country we can see increasing interest in the kinds of holidays and experiences which our brands
deliver. We can and will adapt to the different ways in which we have to deliver those. We know that
this will centre on families and other groups enjoying the natural environment. Tourism as an industry

and thl as a business can only prosper if it is sustainable and regenerative. There is no future for tourism
based on exploitation of natural resources or people. Grant will talk about how the Future Fit model we
have adopted guides our future in practical terms from here. So far as the Board is concerned we aim to
fully deliver on our fiduciary responsibilities to the wide range of stakeholders from investors to
financiers, from staff to customers, from suppliers to partners and not least to the healthy planet we all
need.

Before I pass on to Grant, I would just like to say thank you to all of our people for their efforts over the
last 12 months. Time and time again, they have had to respond to shocks and have shown the strength
and adaptability that sets thl apart from others in the industry.

I will now pass on to Grant.

CEO’s Address – Grant Webster

Thank you Rob.

The history books will be full of various perspectives of review of the events of 2020. From a thl
perspective, my view is that we suffered, showed the strength of our business model and strategy,
leveraged the amazing change tolerance in our business to great effect, and demonstrated what often
happens in a crisis, the ability of people to step up to the challenge in front of them and made great
things happen.

Most of thl’s highlights over the last 12 months are attributable to our people. We have extremely
dedicated and talented people within our organisation and the value of this really shined in 2020. It
should also be acknowledged that the necessary changes to our business also meant that we had to
undertake a significant organisational restructure in which many talented and loyal people left the
business. Our restructure affected crew from all aspects of the business, whether they were recent
additions or long-standing members of our team. I would like to take this opportunity to thank all of our
former thl crew that were impacted by these decisions for the contribution they made to the business.
There was nothing about these events that reflected on any individual, all of our changes reflected the
impact of a global pandemic.

Over recent months, given the constantly evolving environment we operate in, we have provided more
regular market updates to ensure you, our shareholders, continue to be informed of where our business
was heading. This included our framework for operating in FY21, which we released back in July. We
were clear that debt reduction was a major focus for us and to date we have been very successful in
doing so. From a starting position of $188 million at the end of March, we have now reached
approximately $35 million of net debt as at 20 October.

Beyond the obvious, there were several notable events for thl in the last 12 months, both positive and
negative, that deserve acknowledgement. In March, we commenced our managed exit from our joint
venture Togo Group, in a transaction that saw us retain rights to what we consider the key Togo Group

assets for the core thl rentals business and the Australasian region. To be able to undertake this
transaction in the midst of the extreme uncertainty globally due to the COVID-19 pandemic is a
testament to the positive relationship we have with the excellent team at Thor Industries.

The various divisions we have re-integrated back into thl have now formed into thl’s digital arm, named
thl digital. Over the remainder of 2020, Nick Judd will be working with all the leaders and teams in this
part of our business to tidy up some operational matters and more importantly set the most
appropriate positive direction for the years ahead. We expect to discuss this business in more detail
with shareholders around the time of the interim reporting in early 2021.

The impending launch of both the fleet management and telematics products within our thl core rentals
business is a significant event that should be acknowledged. Lots of dedication and years of hard work
have gone into getting these products to where they are now. This suite of products lies at the heart of
the thl rentals management processes. We talk about this change being the equivalent of a heart
transplant for our business, replacing a system that is well over 20 years old, and enabling better
revenue, fleet utilisation and cost management across the business. It has been a long challenging and
expensive process so our expectations are high.

Our work with government agencies and private organisations globally with essential support services
and emergency accommodation is another highlight. One of our first actions in response to the impact
of COVID-19 was to swiftly create a new product and processes in order to offer our self-contained RVs
as an emergency accommodation solution. The team used well-honed skills in design thinking and
change management to assertively target new opportunities, saving jobs and creating cash.

In New Zealand, our team assisted the Government to establish its first quarantine base with 75 RVs to
house the 157 New Zealanders evacuated from Wuhan in China. In the US, we worked with a number of
utilities and power companies to supply RVs that were used to accommodate essential employees on
site at key power generation facilities, enabling them to safely isolate while ensuring the continued
operations of the power plants. In total, we provided 600 vehicles to over 20 community support
organisations in the US.

As the Chair noted, we have also been focused on enabling the best possible vehicle sales result. The
USA had four record months this calendar year and have sold over 750 vehicles from the start of June to
the end of September. Indeed all our vehicle sales teams globally have been running hard at all
opportunities.

Leveraging what you do well in a crisis is vital and Action Manufacturing have been able to do just that.
In recent months, they have been commissioned to manufacture more St John Ambulances as well as
mobile policing units and some vehicles for the New Zealand Defence Force. The business continues to
receive a healthy number of positive enquiries for the coming year.

More recently on the 3
rd
of September we awoke to find that during the early hours of the morning a
massive fire had engulfed our main Auckland rentals branch near the Airport. thl has operated from
that site for decades and so it was an emotional scene to see it in that state, particularly for some of our
staff who have also worked there for decades. However if there is one thing I can confidently say about
this year it is that it is teaching us resilience. The team knew that once again, we just had to get on with
things and within hours we had a plan to be back in business the following day at a different temporary
site.

We are continuing to work with our insurers to assess the total quantum of damage resulting from the
event but are confident that we have the right insurance policies and coverage limits in place. From a
vehicle perspective, we had about 30 vehicles requiring repairs, with about half of these vehicles
damaged beyond repair.

Within our Executive team, in recent months we have had some changes. With Nick Judd joining us and
bringing unique and valuable expertise beyond the financial function, we felt it was the right time to re-
visit our C-suite Executive structure, which had not changed for some years despite thl evolving into a
truly global company.

The changes have seen existing General Managers Matt Harvey, Kate Meldrum and Gordon Hewston

move into Regional Chief Operating Officer roles, and Ollie Farnsworth moving into a new Chief
Commercial and Customer Officer role. Steven Hall has also moved into a Deputy Chief Financial Officer
role.

Our General Manager and “C” level group in the business are the team that have created our high
points as a business, and have the right capabilities to re-position thl to be successful once again.

In each of our operating jurisdictions, we have now implemented initiatives to ensure that we have
appropriately pivoted to the domestic market while international borders remain closed. However, the
size of the domestic rentals opportunity varies globally. If we think about our fleet size at the start of
FY20 compared to the domestic population in each country, we have approximately:
 1 RV for every 1,900 Kiwis;
 1 RV for every 17,000 Australians; and
 1 RV for every 172,000 Americans.

Put simply, these figures illustrate is that in New Zealand, and to a lesser extent Australia, we have been
over-fleeted and so it will be difficult to maintain a satisfactory level of utilisation while operating in a
domestic-only environment. Our utilisation metric is a critical focus for the business. New Zealand is a
great touring destination, arguably the best in the world, and so with international tourism activity our
fleet size is entirely appropriate.

The key issue with domestic customers’ utilisation is that they inherently have a shorter average hire
duration, primarily driven down by more weekend-only hires. You will often have a vehicle returned on
a Sunday or Monday, and it will sit with us for say through to the Wednesday, before the next customer
collects on a Thursday or Friday. While we can never achieve 100% utilisation in a normal situation due
to the time required to turn a vehicle, in our experience we have found that the maximum achievable
utilisation during peak periods is about 20% lower in the domestic only environment. This is a pattern
we’ve seen across all countries and has a material impact on our performance.

From a yield perspective, our pricing needs to be attractive enough to shift people away from using

their own vehicles. This is more of an issue in New Zealand, as in the USA and Australia we have more
customers travelling one way and over longer distances.

Our experience in the domestic environment to date has shown that we do need to adjust our pricing in
order to generate demand. In the most recent New Zealand and Australian winter season, we have
observed that New Zealand rates need to be approximately 50% lower, and Australian rates need to be
approximately 30% lower, compared to our pre-COVID pricing. Our experience in the USA domestic
environment over the recent summer season however, has been quite different. In general, we have
maintained our pricing in line with, and at times slightly above, our historical yield in that market.

A key aspect of proactively managing our business is to continually aim for the right balance between
our fleet size and generating enough demand, while maximising yield. We have been doing this in all
countries and are seeing positive improvements in yield. Although we adjusted pricing to a greater
extent over recent months in New Zealand and Australia in order to generate demand, it is too early to
tell whether this will also be the case in the coming summer period.

In isolation, each of these impacts, the reduction in total hire days, the shorter booking durations and
the lower yield, we usually try to mitigate by appropriately managing the other variables in our
business. However, when combined, there is an exponential impact to our overall rental revenue and
therefore profitability.

From a cost perspective, we have adjusted the way the business operates and created a cost structure
that reflects the current environment but is not damaging to our business in the long term. We are in a
position where we have survived well and we need to be certain that we can make the most of the
coming period.

As we look ahead to the remainder of FY21 we are still in a position where we are managing to an
expectation that all operating jurisdictions will be domestic only. Any borders opening during FY21
would be considered incremental gains.

Based on that assumption and the knowledge we now have of the domestic patterns and fleet
expectations for the year ahead, we can confirm that under these assumptions we expect an EBIT loss
for FY21. The New Zealand business, inclusive of the Tourism businesses will likely be our largest loss,
followed by Australia. In the USA, we expect to make a small EBIT profit in FY21. We are however
positioning the business from an operations and fleet size perspective to make a profit in FY22,
provided there is a reasonable quantum of international leisure travel. The USA and Australia
businesses will be well positioned to make an FY22 EBIT profit under either a domestic or international
environment, provided there are no domestic travel restrictions across the whole year.

At our core, we create unforgettable experiences through the delivery of rental motorhomes and other
great activities. So ensuring we match supply and demand is critical.

We are dealing with high demand for sales, a very difficult purchasing market and variable rental
demand markets. A difficult balance in a very dynamic market. This however is what we do, this is a
core competence of ours.

This year we will be purchasing more fleet, particularly in the USA. As mentioned by the Chair, we have
currently committed to around $100M of capital expenditure in the second half of FY21. We have done
so as we have confidence that we will be able to rotate our fleet and capitalise on the current vehicle
sales market. We are expecting the full year gross capital expenditure for the group to be around $100 -
130M. However as this expenditure is for fleet replenishment, we expect that our net capital
expenditure will be negative in FY21.

This will likely create a net debt position of somewhere around $100M at year-end. This will be the
lowest year-end debt position for many years and reflects the strong focus on balance sheet strength,
whilst maintaining a fleet size that enables us to generate profit moving forward.

We have laid out the approach to FY21 throughout the year and we will continue to provide updates as
developments occur. In short, by jurisdiction we can summarise the current approach as follows.

In New Zealand, we are focusing on vehicle sales, vehicle servicing and retail to enable overhead cost
recovery and to keep our skilled team engaged. We will continue to target the domestic rental market
in a variety ways as we seek to increase our utilisation and yield to make this part of our business
profitable.

With the tourism businesses, we will continue to adapt our marketing mix to minimise our EBIT losses
while borders are closed. During this period we will be reducing our capital investment in our New
Zealand businesses.

In Australia, we are focused on setting the business to operate profitably once all state borders are
open. Vehicle sales remains critical but we must ensure we have enough rental fleet to service what we
see as a positive demand profile for the calendar year 2021.

We are holding our fleet size in Australia at current levels and will continue to consider investment
based on profit expectations.

In the USA, we have used the 2020 calendar year to reduce fleet, maximise sales and minimise the debt
position. We have also learnt a tremendous amount about the domestic rental market, the demand
profile, customer travel preferences and more. This has enabled us to consider ongoing investment in
the USA business with fleet renewal that we expect will help us achieve EBIT profitability in calendar
year 21. The fleet size in the USA is smaller than we have had historically, but will be higher than our
historical winter season low point.

All of this activity is of course occurring within a competitive environment. Across the globe we are
seeing changes in the RV rentals market that are to our benefit. As was the case following the GFC over
a decade ago, we have seen key operators exit the USA market, at least for the 2021 season. We have
also seen competitors reducing their fleet size in line with us and other competitors. Everybody appears
focused on debt reduction. This will be fundamental to those operators with a lower level of equity in
their business. In fact, one of our competitive advantages is our strong balance sheet relative to others
that enables us to invest in new fleet and expand before others as the market allows.

Top of mind is clearly generating revenue to get ourselves out of the losses trough. When reflecting on
the last 10 months, we do consider that even with the benefit of hindsight we have made the right
strategic decisions so far. However we know that we must continue to adapt.

Strategically we are operating on a business-by-business basis as is appropriate when there are such
different external environments. On a group basis, we have strong confidence in our core competencies
and capabilities and are focused on ensuring our competitive advantages and strategic direction are
sound and appropriate for this new and different tourism environment.

We will continue to develop our regional digital strategy in a cost effective manner, to improve
efficiency in the business model and build out new revenue streams. The data sets we have generated
through these businesses are significant and valuable. Our connected customer network across rentals,
sales, servicing and retail, as well as our digital marketing capability, are providing benefits and are
advantages that we will capitalise on further in the coming year.

We will continue to explore where we operate, and where we do not currently operate, within the
broader RV ecosystem. We will continue the M&A pipeline and are open to what we consider
appropriate investments. Appropriate today, to us, means a value that reflects the P&L and quality of
assets we would be buying. We continue to look at the broader tourism market holistically and in New
Zealand, there may be some appropriate acquisition opportunities worth exploring given the current
market conditions.

In summary, the broad direction of our industry has only improved globally. The RV market is more
attractive today, both in the short and long term. It is somewhat strange to have ended up in this
positive position after the initial concern for our business as COVID-19 hit. We know tourism will be
different and we expect to be one of the beneficiaries of this change. As such once borders open, we
expect a positive outlook and every reason to continue our strategic path for growth. We will seek to
achieve all of this whilst closely managing our business while borders remain closed.

Whatever direction we take strategically, we have a firm and ongoing commitment to making progress
as a Future Fit Business. It is just too easy in a difficult financial situation to cast aside such
commitments under the guise that they are a lower priority at present. We don’t believe that is the
case. Yes, we have had to adapt our timing on some elements and we have less resource than we did,
but the commitment to operating in a manner that ensures long-term success for our business, our
stakeholders, and the environment we operate in, is the right path. We will continue to look to electrify
our fleet. We see that chassis suppliers are continuing their R&D efforts. That is critical to making
significant progress in this area, as we need battery range in the EV fleet to improve. We will continue
to target a break-even position within the Future Fit framework.

In closing, I would like to acknowledge the experience and tenacity of the thl team as well as the
commitment of our highly skilled directors. We have managed well, and proven out the flexibility
underlying our business model. Now we look to deal with FY21 in an appropriate manner and lead the
industry recovery positively.

I will now pass on to Nick to share some words on his first impressions of thl.

CFO’s Address – Nick Judd

Thank you Grant for the opportunity to provide a short background on myself and then to give my initial
impressions of thl formed over the last 6 weeks.

I have a strong background in the tourism industry after 17 years spent with Air New Zealand. Most
recently, I spent three years on the Executive team at Air New Zealand leading the functions of Strategy,
Networks, Sustainability and their Alliance and Joint Venture relationships.

I was fortunate in my time at Air New Zealand that I was able to work across many areas of the business
and in leadership roles in Australia, China and the United States, and a huge attraction for me in joining
thl was the global footprint that they have been so successful in building. I have been a member of
Chartered Accountants New Zealand for over 15 years and am enjoying being deeply involved in profit
and loss, cash flow and balance sheet statements once again.

As you would expect, before I accepted the role here at thl I did my due diligence on the culture,
aspirations and potential of the organisation. I am pleased to say that what I saw and heard from the
outside has well and truly been matched by what I have experienced in my short time here. My
personal belief is that those organisations with a strong culture will thrive when clear of COVID impacts
and it is obvious to me every day how strong the culture is within this organisation.

The way the business has responded to the challenges thrown at it this year, including recently the
Mangere fire, is a testament to the passion, enthusiasm and drive of our employees. They are all willing
to go the extra mile to ensure that the business performs to the best of its ability and customer
expectations are met, no matter the circumstances. I think this is the true test of an organisation’s
culture.

I have been fortunate in my timing in joining the organisation, as the business has moved beyond the
crisis phase and is now in a phase of re-establishing new business processes and planning for the
coming years, albeit facing a period of domestic demand only. There is a wealth of knowledge and
experience in the Board and Executive team, which has been highlighted in how well they have
managed the crisis phase and how well the company is positioned comparatively to the industry and
competitors.

I have also been impressed by the willingness of the Executive to be challenged on historic processes
and to use the COVID slowdown as an opportunity to undertake transformational change by re-
imagining the way we do things, in order to ensure that thl re-emerges stronger and capable of
delivering enhanced returns. There is no doubt for me that many of the experiences we have had over
the last 8 months will be useful for us as we look to grow revenue and drive further shoulder and low
season utilisation.

In short, I am very happy with the choice I have made to join thl and I am looking forward to supporting
the growth aspirations of this business in the years to come.