Advisor Evening Presentation

Advisor
Evening
December 2020

Agenda
1.HY21 Results
2.FY21 Update and Outlook
2• ADVISOR EVENING

1) HY21 Results
3••ADVISOR EVENING

HY21 Results snapshot
Net profit Before Tax
Revenue
$147.5m-14%
Net Profit Before Tax
$18.7m+26%
Underlying Net Profit BeforeTax
$13.1m-11%
Q2 Dividend 4.0 cps
Projected FY Div17.0cps
4• ADVISOR EVENING
0
5
10
15
20
25
30
35
FY16FY17FY18FY19FY20FY21
Millions
2H
1H

DividendPayments and Policy
Earnings and Dividend per Share (Cents)
10.0
13.0
14.5
15.5
17.0
14.0
17.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
FY15FY16FY17FY18FY19FY20FY21
Projected
Dividends fully imputed from FY17 on
5• ADVISOR EVENING
8.0

Automotiveretail
Revenue 96.1m -17%, Segment Profit $7.8m+6%
6• ADVISOR EVENING
Auto Retail Operating Profit Excl Wage Subsidy (% change on
pcp)
-700%
-600%
-500%
-400%
-300%
-200%
-100%
0%
100%
JanFebMarAprMayJunJulAugSepOct

Finance
Revenue $23.2m +2%, Segment Profit $7.6m +18%
7• ADVISOR EVENING
Premium Risk Tier % of Consumer Lending
0%
10%
20%
30%
40%
50%
60%

Finance
Revenue $23.2m +2%, Segment Profit $7.6m +18%
8• ADVISOR EVENING
350
400
450
500
550
600
650
1H172H171H182H181H192H191H202H201H21
Average
consumer
Equifax
credit score
Improving Customer Credit Scores
Oxford Finance

Insurance
Revenue $21.1m -5%, Segment Profit $4.5m +74%
9• ADVISOR EVENING
Gross Written Premium FY21 v FY20 ($m)
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
JanFebMarAprMayJunJulAugSepOct

Creditmanagement
Revenue $7.0m -29% Segment Profit $3.0m -17%
Debt Collected HY20to HY21($m)
10• ADVISOR EVENING

11• ADVISOR EVENING
2) FY21 Update +
Outlook

#1
Optimisation of Auto Retail
1.Property
2.Sourcing
3.Customer experience
Building quality ...
12• ADVISOR EVENING

#2
Risk pricing in Finance
Building quality ...
13• ADVISOR EVENING

#3
Diversification & Resilience
Building quality ...
14• ADVISOR EVENING

NZ used car market
(6%) April to Oct
NZ new car market
(28%) April to Oct
Building quality ...
15• ADVISOR EVENING
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
JanFebMarAprMayJunJulAugSepOctNovDec
NZ Used Car Market (change of ownerships)
20192020

#4
Digital and data
Building quality ...
16• ADVISOR EVENING

#5
Strong andsustainable yield
Building quality ...
17• ADVISOR EVENING

Quality of earnings and dividends
TRA has a dividend yield of 7.3% the NZX*
* Source: NZX; Based on rolling 12 month gross div (net div + imps) divided by share price at 20 November 2020.
18• HY21 RESULTS PRESENTATION

•FY21 NPBT guidance: now expected to be towards the upper endof
prior guidance of $28m to $31m
•Indicative FY21 dividend implied of 17.0 cps
(fully imputed, based on midpoint of range, and policy of 60-70% NPAT payout)
FY21 outlook
19• ADVISOR EVENING

Questions
20• HY21 RESULTS PRESENTATION