Investor Presentation

NZ Automotive Investments Limited
Investor Presentation │ February 2021

Page 2| Investor Presentation | NZ Automotive Investments Limited
Important Notice and Disclaimer
This presentation has been prepared by NZ Automotive Investments Limited (“NZAI” or the “Company”) to provide a general overview of NZAI. It is not prepared for any other
purpose and must not be provided to any person other than the intended recipient.
This presentation is not a product disclosure statement or other offering document under the laws of New Zealand or any otherjurisdiction or law. This presentation is not and
should not be construed as an offer to sell or a solicitation of an offer to buy financial products and may not be relied upon in connection with any purchase of financial products.
This presentation has not been and will not be filed with or approved by any regulatory authority in New Zealand or any otherjurisdiction.
No financial product of NZAI is currently being offered in New Zealand or elsewhere. Accordingly, no money is currently beingsought, and no person can currently apply for any
financial products of NZAI.
All amounts are disclosed in New Zealand dollars (NZ$) unless otherwise indicated. All references to financial years in this presentation refer to the financial years ending 31
March, unless otherwise stated.
This presentation is not a recommendation or other form of financial advice. While reasonable care has been taken in compiling this presentation, none of NZAI nor its
subsidiaries, directors, employees, agents or advisers (to the maximum extent permitted by law) gives any warranty or representation (express or implied) of the accuracy,
completeness or reliability of the information contained in it nor takes any responsibility for it. The information in this presentation has not been and will not be independently
verified or audited.
This presentation may contain certain forward-looking statements and comments about future events, including with respect to thefinancial condition, results, operations and
business of NZAI. These statements are based on management’s current expectations and the actual events or results may differmaterially and adversely from these
expectations. Recipients are cautioned not to place undue reliance on forward looking statements.
Past performance information given in this presentation is given for illustrative purposes only and should not be relied upon(and is not) an indication of future performance.
This presentation is provided to each recipient on a confidential basis and it, and the information it contains, must not be provided or disclosed to any other person prior to the
listing of NZAI on the NZX Main Board, which is expected to occur on 25 February 2021. If you are not the intended recipient of this presentation, you are hereby notified that any
review, dissemination, distribution or copying of this presentation prior to that time is strictly prohibited and you should notact upon anything in this presentation.

Page 3| Investor Presentation | NZ Automotive Investments Limited
About NZAI
NZAI is an Automotive Group that specializes in importing Japanese used cars. With operations in
Japan and NZ, the Group is vertically integrated from procurement through to retail sales and
financing.
74
employees
66,000+
customers
11,000+ cars
sold annually
2
~$31m loans
brokered annually
60,000+ Cars
sold to date
6 Auckland
dealerships
Automotive Retail
Vehicle Finance
Vertically integrated
supply chain, with 7
dedicated
procurement staff
based in Japan.
Finance provider to
Automotive Retail
customers, leveraging off
the scale of the
Automotive Retail
business to generate an
increasing level of
financing opportunities for
selected loan types.
13% of cars
sold are EV,
HEV or PHEV
1
Source: Company Analysis
1
Forthe6 monthsended31January2021.
2
Averageoverthepastthreeyears.
Car Plus Limited
(Japan Entity)
Procurement office
Specialises in quality,
affordable imported
Japanese cars sold
through a nationwide
network of
dealerships and
digital platforms.
Retail Sales
Procurement

Page 4| Investor Presentation | NZ Automotive Investments Limited
Key Milestones
Founded in 2011, NZAI has grown to become a nationwide dealership with approximately 8% market
share of the imported used car market
1
.
Second2CC
dealership opened in
Christchurch.
Foundedby
Eugene
Williams and
David Sena.
Recognisedin the Deloitte Fast 50 as the
fastest growing Retail and Consumer
business in New Zealand and the second
fastest growing company overall.
10th dealership
opened.
Company achieved
milestone of 20,000th
vehicle sold.
Japanoffice opens.
10,000vehicles sold
in the year ended 31
March 2016.
NZAI(formerly 2CC
Holdings Limited)
established.
Stinkbug contamination
disrupts the supply chain
across the sector.
50,000th vehicle
sold. NZ Motor
Finance established.
First 2CC dealership
openedin Auckland.
60,000th vehicle sold.
Winner of the Reader’s
Digest’s Silver Quality
Service Award.
2011
2013
2015
2016
2012
2014
2018
20172019
2020
73.7m
78.4m
76.0m
7.1m
5.9m
8.6m
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
0.0
20,000,000.0
40,000,000.0
60,000,000.0
80,000,000.0
FY18AFY19AFY20A
Financial performance
Revenue
Pro forma EBITDA
10,799
9,725
10,919
11,337
11,020
FY16AFY17AFY18AFY19AFY20A
Number of cars sold
1
Basedonthe12monthsended31March2020.Calculationbasedon2CC’smotorcentralsalesdataforFY20dividedby137,016importedpassengersalesforthesameperiodaspublishedbyAutofilemagazine.
Commerce
commission fine.
FY20AFY19AFY18A

Page 5| Investor Presentation | NZ Automotive Investments Limited
Market at a Glance
The used car import market has been a traditional mainstay for everyday New Zealanders, exhibiting
a compound annual growth rate of 8.7% in the last seven years
1
.
Private Car
Sales
Premium
Car Dealers
Budget Car
dealers
Price
QualityQuality
Price
Market: Imported used car sales, which makes up 60% of the entire New Zealand passenger
vehicle sales market
2
.
Market Position: Three main categories of competitors; premium car dealerships, budget car
dealership and private cars sales, differentiated by price and quality.
Competition: The New Zealand used vehicle market is very fragmented with 3,094 registered
dealers
3
.
1
Source:Ministryof Transport2019– NZVehicleFleetData.
2
MotorIndustryAssociationNewZealand(accessedasat 9 Nov2020). FiguresbasedonnewregistrationsintoNewZealandanddonotincludeprivatesalesbetweenindividuals.
3
MotorVehicleTradersRegister.
light passenger
vehicles per 1,000
people
of light
passenger cars
near the
scrapping age
used passenger
vehicles imported
annually
light vehicles
registered in New
Zealand, of which
1.0m turn over
each year
of used light
passenger
vehicles are
imported from
Japan
is the average age
of used vehicles in
New Zealand
4.0m
96%
~17yrs
684
Source: Ministry of Transport 2019 – NZ Vehicle Fleet Data
~800k
~150k

Page 6| Investor Presentation | NZ Automotive Investments Limited
Key Business Strengths
Operating in a fragmented market, NZAI has a wide range of key attributes.
Focused and Efficient Business Model
Mission is to deliver quality cars and financing solutions to the average New Zealander.
FavourableMarket Dynamics
Operates in a growing sector with an aging fleet; approximately 800,000 light vehicles are over scrapping age (20 years of age for import) and will
need to be replaced over the near term
1
.
Growth-Orientated Automotive Platform
NZAI’s existingposition in the used car market provides a base from which to grow its Vehicle Finance division in line with NZAI’s plans.
Approximately 33% of the Automotive Retail division’s customers require vehicle finance at point of sale –currently that finance is provided by third
parties.
Digital First Customer Experience
Early adopter of social media and digital advertising, enabling its customers to arrive at its dealerships ready to purchase a c ar that they have
already viewed and agreed to a price online.
Track Record of Cash Generation
Highly cash generative business with a healthy track record of paying dividends (average of 61% of NPAT for the last three financial years). The
Board’s current intention is to declare a full year dividend for FY21 in May 2021, to be paid in June 2021.
Highly Experienced Leadership Team
Management, backed by independent governance, has significant experience relevant to building a diversified automotive business.Co-founders
and Executive Directors Eugene Williams and David Sena have built an automotive retail businesses that has become a major Japanese used car
imported in New Zealand in less than a decade.
1
2
3
4
5
6
1
Ministryof Transport2019– NZVehicleFleetData.

Page 7| Investor Presentation | NZ Automotive Investments Limited
Focused and Efficient Business Model
NZAI’s Automotive Retail division operates a high volume, low-cost model underpinned by quality
cars and excellent service via its integrated supply chain with operations in Japan and New Zealand.
International Procurement Team
•Japan based procurement team, allowing NZAI to directly inspect the quality of its purchases.
•This provides NZAI with price and inventory advantages that translate to higher gross margins.
•Price and inventory advantages are evident in the margins NZAI has achieved against NZX-listed Turners
Automotive Group Ltd (“TRA”) and Eagers Automotive Ltd (“APE”).
Capital-Efficient Arrangements
•All dealership sites are leased, with an average lease tenure of 3.3 years.
•Avoided entering the capital-intensive vehicle finance space until retail base established.
Company-Owned Dealerships
•Owns all its dealerships, allowing greater control over the customer experience.
•Dealerships are in industrial areas with lower lease costs.
Sales-Driven Approach backed by Excellent Service
•Centralisedadministration, enabling dealerships to focus on sales.
•Significant focus on social media promotion.
6 Japanese based
procurement staff
on average to
sell a car on
yard
24
days
trade facility
with ASB Bank
$8m
Source:Companies’AnnualReports. NZAIandTRAreflectfinancialyearsending31March2018-20.APEreflectsfinancialyearsending31December2017-2019.NZAIincludesloss-making
financedivisionNZMF.
9.1%
7.0%
8.4%
7.4%
8.1%
6.1%
2.8%
3.2%
2.7%
FY18FY19FY20
EBIT Margins
NZAI Pro formaTRA (Automotive Retail)APE (Car Retail)

Page 8| Investor Presentation | NZ Automotive Investments Limited
Favourable Market Dynamics
New Zealand is an attractive automotive market. New Zealanders own roughly 0.7 light passenger
motor vehicles per person, which is amongst the highest levels of private vehicle ownership globally
1
.
Increased Migration: Strong migration has historically been a driver of light vehicle fleet growth in New Zealand, and the attractiveness of the country in the
global context should continue to support interest in inbound immigration.
Contracting number of dealers: The number of vehicle dealerships in New Zealand has declined over the last two years, from 3,435 in November 2018 to 3,094
in October 2020
3
. NZAI believes this trend will result in a lower level of competition and a stronger competitive position for NZAI.
Shift towards electric vehicles: NZIA is not beholden to a single manufacturer and is therefore indifferent to the increase in consumer interest in electric
vehicles. This consumer preference shift may in fact benefit NZAI by increasing the rate at which people want to replace their c ars.
Increased Health Concern: Covid-19 concerns may drive consumers to favour private vehicles over public transport, supporting higher levels of car ownership
and demand over the medium-term.
-
50,000
100,000
150,000
200,000
250,000
300,000
20122013201420152016201720182019
Annual Passenger Car Sales in New Zealand
2
Used ImportsNZ New
200
300
400
500
600
700
2.0m
2.5m
3.0m
3.5m
20122013201420152016201720182019
New Zealand Passenger Cars and Vehicle Ownership
1
Total Passenger CarsLight Passenger Vehicle Ownership per 1000 people
1
Ministry of Transport, The NZ Vehicle Fleet Report 2019.
2
Motor Industry Association New Zealand (as of 10 February 2021). Figures based on new registrations into New Zealand and do notinclude private sales between individuals.
3
Motor Vehicle Traders Register.

Page 9| Investor Presentation | NZ Automotive Investments Limited
Growth-Orientated Automotive Platform
NZAI is positioned to build a diversified Automotive Group, leveraging off its Automotive Retail
division to build a profitable finance book.
Improve digital
offering
Grow NZMF’s loan book by offering
Automotive retail customers finance
from NZMF (historically provided
through a range of third party finance
companies).
Improve digital offering by upgrading
the Company’s digital platform so
customers can purchase and pay for
vehicles directly online.
Vertical integration
with Finance
The close relationship between the divisions means that the NZAI finance business has a clear operating cost advantage over independent finance companies of
equivalent size. The risk and cost of acquiring sufficient business to grow the finance book is also minimiseddue to the ability of NZAI to cross-sell to its retail
customer base.

Page 10| Investor Presentation | NZ Automotive Investments Limited
Digital First Customer Experience
NZAI was an early adopter of social media and digital advertising, an approach which caters to its
target market of everyday New Zealanders.
Digital First approach: Early adopter of social media and digital advertising, which caters to its target market
of 20 –45-year-olds.
The customer can arrive at its dealerships ready to purchase a car that they have already viewed and agreed to
a price online:
•Reducing the time salespeople spend with each customer;
•Increasing inventory turnover; and
•Minimisingthe need for a large dealership footprint in high profile locations. This allows 2CC’s
dealerships to be based largely in industrial locations with lower lease costs.
Brand Building and Recognition: The adopted marketing strategy has enabled 2CC to build a brand identity
with over 130,000 followers on Facebook and Instagram. The Company runs a range of promotional activities
over its social media platforms, which are managed by its internal marketing team.
Aging Customer Base: As these consumers age over time and continue through multiple vehicle life cycles,
their brand affinity with 2CC provides a customer base for used car purchases and cross-selling of ancillary
products.
4.18 / 5.00
Buyer Score rating based on
11,859 reviews from January
2017 to November 2020
1
92%
of customers surveyed
would recommend 2CC or
would purchase from 2CC
again
1
1
2CC’sBuyerScoredashboardforJanuary2017to November2020.BuyerScoreis anindependentratingandreviewcollectionserviceforvehicledealersin NewZealand.
2
asassessedon2CCInstagramandFacebookpage11February2021.
130k+
followers on Facebook and
Instagram
2

Page 11| Investor Presentation | NZ Automotive Investments Limited
Track Record of Cash Generation
NZAI has a strong track record of paying dividends and will continue to target a 50% –60% pay-out
ratio.
cash on hand
Dividends
paid to
shareholders
in last 3 years
$7.6m
Cash conversion:Strong cash conversion has allowed NZAI to pay dividends of approximately 61% of net profit
after tax (on average) during the last three financial years.
Low Capital Expenditure:Annual capital expenditure has remained relatively steady at between $0.4m and
$0.8m.
Target dividend pay-out ratio:NZAI has a dividend policy with a target pay-out ratio of 50%-60% of underlying
NPAT. Retained earnings will be used to grow the Vehicle Finance division.
Payment of FY21 Dividend:The Board’s current intention is to declare a full year dividend for FY21 in May
2021, which is expected to paid in June
1
.
$6.6m
$4.4m
$3.4m
$4.2m
$0.8m
$0.4m
$0.6m
$2.1m
$4.3m
$1.0m
FY18AFY19AFY20A
Net profit after taxCapexDividend
Source:Companyanalysis.
1
Subjecttomarketconditions,nofurthersubstantivelockdownsand Boardapproval.

Page 12| Investor Presentation | NZ Automotive Investments Limited
Highly Experienced Leadership Team
Experienced independent Board including the co-founders and Executive Directors Eugene Williams
and David Sena.
David Sena
Co-Founder & Executive Director
Eugene Williams
Co-Founder & Executive Director
Karl Smith
Independent Chair
Tracy Rowsell
Director
Charles Bolt
Independent Director
Michele Kernahan
Independent Director
Board of Directors
•Over 40 years executive and
governance experience previously
serving as CEO of Gough Group
and in various other senior
positions.
•Current directorships include Halls
Group Limited (Chair), Hamilton
Jet, FortHillProperty Limited
(Chair) and VetNZLimited.
•Advisory partner at BDO
Auckland, with more than 20
years of experience in providing
business advisory and taxation
services.
•Provided advice to 2CC since
2012 and has a close
understanding and knowledge of
the business.
•Prior to his current role in the
General Counsel for TIL
Logistics Group, Charles began
his career at NZX, Bell Gully
and served in senior executive
positions at Fletcher Building.
•Holds an LLB from Victoria
University and has completed
the Senior Executive
Programmeat Columbia
University, New York.
•Prior to founding 2CC in 2011
with David Sena, Eugene had
been a successful small
business owner in the
education and FMCG sectors.
•Eugene is responsible for
sales and marketing and
overall strategy of NZAI. He
has been a Director of NZAI
since its inception.
•David founded 2CC in 2011 with
Eugene Williams. Born in Japan,
David has been influential in
developing and maintaining
relationships with overseas
vehicle suppliers.
•David has been a Director of
NZAI since its inception and is
responsible for supply chain and
procurement.
•Managing Director of New
Zealand’s largest temperature-
controlled transport and
logistics business, Hall’s Group.
•Holds an MBA and BA from the
University of Canterbury, and
has completed executive
programmesat Harvard,
Wharton, Stanford and
Melbourne Business Schools.

Page 13| Investor Presentation | NZ Automotive Investments Limited
Highly Experienced Leadership Team
NZAI’s management has the necessary skills and experience to build a diversified automotive
business.
Executive Management
•David has worked across a diverse range of
industries, holding a range of general management
roles and corporate governance responsibilities.
•Over 25 years of asset finance and banking
experience, which includes a comprehensive
knowledge of consumer, motor vehicle and
commercial asset finance.
•Recently spent 10 years at ASB, where he was
responsible for setting up the Asset Finance business
and growing the Specialist Industries business which
included Asset Finance, Franchise Banking,
Healthcare Banking, Professional Services Banking,
Maori Financial Solutions, Industry Development and
Strategic Partnerships.
•Over 25 years of experience in banking and finance,
including seven years as General Manager of Auto
Finance Direct.
•Responsible for the establishment and
implementation of NZMF, which includes pricing,
credit policies and responsible lending .
•Built up a vehicle finance business while at Auto
Finance Direct, where he oversaw the growth in the
finance book from $12m to circa $50m.
David Page
Chief Executive Officer
Martin Blockley
Managing Director, NZMF
Haydn Marks
Chief Financial Officer
•Over 20 years of financial management and
leadership experience across financial services and
technology sectors.
•Four years as CFO with a listed technology company,
Straker Translations (ASX:STG), where he took the
company to IPO on the ASX in 2018.
•Ten years working in London, most notably, in a
commercial group finance role with banking software
company Temenos (TEMN:SWX) and prior to that
held finance roles at Credit Suisse and Visa card.
•Member of Chartered Accountants Australia and New
Zealand and holds a Bachelor of Business from
Massey University.

Page 14| Investor Presentation | NZ Automotive Investments Limited
Important Metrics
NZAI has set a listing price of $1.30 per share, implying an FY20 EV / EBITDA multiple of 7.7x.
Capitalisation Table
Numberofsharesonissueatlisting45,554,500
Listingprice$1.30 per Share
Impliedmarketcapitalisation$59.2 million
Net cashasat31 January2021
1
$6.1 million
Impliedenterprisevalue(excludingleaseliabilitiesunderNZIFRS16)$53.1 million
Leaseliabilitiesunder NZ IFRS 16asat31 January2021$6.7 million
Impliedenterprisevalue(includingleaseliabilitiesunderNZIFRS16)$59.8 million
1
Comprisescashandcashequivalents. TheASBtradefinancefacilityhasbeentreatedasworkingcapitalconsistentwiththeindustrytreatmentforautomotiveretailcompanies.
KeyInvestmentMetricsFY20
Proforma EBITDA$8.6m
PreNZ IFRS 16Proforma EBITDA$6.9m
ImpliedEV (includinglease liabilitiesunder NZ IFRS 16)/Proforma EBITDA6.9x
ImpliedEV /Pre-NZ IFRS 16Proforma EBITDA7.7x

Page 15| Investor Presentation | NZ Automotive Investments Limited
NZX Listing Considerations
NZAI has elected a direct listing on the NZX for several reasons.
Provide access to capital to help fund its recently established Vehicle Finance division.
Support the growth of the Company’s digital platform model, building market intelligence and
thus improving our understanding of the New Zealand driver demographics.
Permit Eugene Williams and David Sena to achieve some liquidity after building the business to
its current scale over nearly 10 years of operation.
Position the Company to consolidate key geographic markets throughout New Zealand where it
does not have a physical presence.
Increase the profile of NZAI, both domestically and internationally.

NZ Automotive Investments Limited