Turners delivers record earnings for FY21

Company Announcement
25 May 2021


1
Turners delivers record earnings for FY21

Turners Automotive Group (NZX: TRA) has reported record earnings for the financial year to March
31, 2021 (FY21), despite a COVID-19 disrupted year, effectively reducing the year to a 10-month
trading period due to lockdowns.

Key highlights:

 NPBT $37.4m +29%
 NPAT $26.9m +28%
 Underlying NPBT $34.3m +19%
 Revenue $296.5m -11%
 Final FY21 dividend declared at 6.0 cps bringing FY21 dividend to 20.0 cps (equating to a gross
yield of 7.4% per annum based on a share price of $3.75)
 Earnings per share 31.4cps +29%
 Used car market proved resilient, rebounding strongly for `high trust’ Turners brand
 Robust annuity earnings from Finance and Insurance validates diversified business model
 Organic capital spend to be focused on digital investment, new auto retail sites and growth in
finance business
 FY22 should see a further improvement in NPBT over FY21
 Further highlights and discussion on growth are included in the FY22 Results
Presentation released with this announcement

Although a disrupted operating period saw FY21 revenue down 11% to $296.5m, a strong response from
the business, including acceleration of its digital strategy and rigorous cost management saw three of
the four segments lift profit strongly. Only Credit was down on last year’s result with a number of our
corporate and bank customers reluctant to pursue debt aggressively over the Covid-19 period.

Demonstrating the benefits of the Group’s diversified annuity businesses, profit rose 50% in Insurance,
30% in Finance and 11% in Automotive Retail, contributing to strong and sustainable yield. Profit in the
Credit Management business was down 22%.

Todd Hunter, CEO, said: “Our team has responded incredibly well to the pandemic in the first half of the
year. Their high levels of engagement combined with the diversified nature of the business, ensured we
were well positioned as we moved out of the lockdown. As a group, we have continued to build quality
customer experiences, improving the quality of the work environment for our people, which will deliver
quality returns for our shareholders. Our growth plans are working and the exciting thing is there is more
to come.”

Financial results
Reported NPBT increased 29% to $37.4m with net profit after tax (NPAT) of $26.9m, up 28% on the same
period last year. Underlying NPBT was up 19% to $34.3m, with a reconciliation of reported and
underlying numbers available on slide 10 of the investor presentation, also released today.

Earnings per share for FY21 were 31.4 cps, up 29% on the previous year. A further 6.0 cps dividend has
been declared for the final payment of FY21 (payable in July), taking FY21 dividends to 20.0 cps. This
reflects the dividend policy to payout 60-70% of net profit after tax (NPAT).

Company Announcement
25 May 2021


2
Grant Baker, Chairman, said: “We remain committed to delivering a strong and sustainable yield to
shareholders. Initiatives worked on over the last 2-3 years are really starting to come together and most
importantly are delivering results, even during the disrupted period of 2020. Our company is in a real
position of strength and we feel very confident in our growth plans. Margin expansion and market share
gains are helping deliver the bottom line growth that we knew was possible. Our team right across the
wider business has done a fantastic job of managing the business and supporting our customers through
the pandemic. Our business has never been in better shape, and the mix of diversified earnings is
delivering the consistent growth plus yield that shareholders are looking for. ”

The results to 31 March 2021 have been audited by Baker Tilly Staples Rodway, who expect to give an
unmodified opinion on the financial statements.


Results by division
Auto Retail, Finance and Insurance divisions have all delivered significantly improved earnings. Only
Credit Management has had an earnings decrease year on year because of the reduced debt load during
the last 12 months as many of the large banks stopped collection actions due to the reputational risk
during Covid-19.

Auto Retail: Revenue $201.0m – 11%, NPBT $15.4m +11%
The Auto Retail division revenue was 11% lower at $201.0m, reflecting fewer units, an impact of the
national and regional lockdowns. Volumes have recovered in the second half of the year and improving
margins have been a significant driver of profitability. Margin expansion is due to a number of buying
initiatives and a result of tight supply of cars nationally, due to supply constraints for new cars. Reducing
the cost base was a key priority out of lockdown. The used car market has demonstrated resilience, not
just rebounding after lockdowns, but through the economic cycle.

Finance: Revenue $47.9m +5%, NPBT $15.8m +30%
The Finance division is now a significant contributor to group earnings and has gone from strength to
strength over the last 12 months, with the highest segmental NPBT. Revenue for FY21 was $47.9m, up
5% on last year. NPBT was $15.8m up 30% of the year prior, continuing to gain market share in the high-
quality borrower segment of customers, providing more than 45% of the new loans written each month
in the premium risk tier. Targeting high-quality borrowers means arrears are at record low levels with
Consumer arrears at 4.2% and Commercial arrears at 1.8%. Finance has retained a Covid-19 arrears
provision buffer to allow for any unemployment increase in future months.

Insurance: Revenue $41.9m -5%, NPBT $9.4m +50%
Insurance revenue decreased 5% to $41.9m due to the impact of national and regional lockdowns. Gross
Written Premium (GWP) increased for the year due to a number of key competitive wins and risk pricing
adjustments and despite the lockdowns was 2% ahead of FY20. NPBT was up 50% to $9.4m on higher
margins, reduced claims, lower overhead costs, and the finish of amortising the acquired premium
portfolio as part of the Autosure acquisition from Vero in 2017. Progress on building our distribution
over the year included two sizeable system integration projects completed with Marac Finance and MTF
Finance. Combined claims ratios improved from 69% in FY20 to 60% in FY21.

Company Announcement
25 May 2021


3
Credit Management: Revenue $12.8m -29%, NPBT $5.1m -22%
Credit Management revenue decreased 29% to $12.8m, due to the impact of Covid-19 and the market-
wide conservatism with respect to debt collection during the first phase of the pandemic. Many large
corporate customers only recently once again began initiating collection actions. Despite revenue being
down 29%, NPBT was only down 22% to $5.1m. The division is working closely with referrers to manage
and improve customer outcomes as we operate in an environment where bad debts are likely to increase
and debt collection services will see increasing demand. We have now seen lenders who were prioritising
reputation over collections, reinitiate debt load and collections work. A similar pattern was experienced
post the GFC, before a busy collection period began.

A strong focus on organic growth
Our growth plan has developed over the last 24 months and there is real confidence in this plan to
continue delivering growth over the next 3 years. We have outlined our growth model in the FY22
Results Presentation including outlining our thinking on the roadmap to a $5 share price (see Slide 30
to 35). Investors may also be interested in the more comprehensive detail contained in our recent
Investor Morning (click for link), which was well attended by various institutional investors.

Four key areas will underpin our earnings growth. These will be a combination of both physical and digital
investments.
1. Retail Optimisation across people, property and process. Expanding the physical branch
network with two new sites already acquired in Rotorua and Nelson;
2. Vehicle purchasing decision-making using data and tools to help identify new sourcing
opportunities and ensure our vehicle buyers are maximising opportunities;
3. Growing premium lending within Finance; and
4. Continued investment in digital and improving our omni-channel customer experience which
allows customers to engage with us however, whenever and wherever they want.

Outlook and Guidance
April and early May 2021 have seen a continuation of the positive momentum Turners has enjoyed over
the past 10 months. Our April 2021, financial results are materially ahead of a more comparative period
of April 2019 (non Covid-impacted).

In Automotive Retail, we are expecting the supply-constrained market to continue for 12-18 months due
primarily to impacts on the new car supply chain. New lending in the finance business will be strong and
our expectation is that arrears will continue to improve, as the weighting towards newly introduced
premium loans grows as a percentage of the book. In Insurance, we expect new policy sales to be
buoyant and claims ratios to stabilise. Lastly, in Credit Management, debt recovery is returning as
corporate customers start to get back to business as usual. Shareholders should expect to see a further
improved result in FY22 and accordingly a corresponding increase in FY22 dividends. Turners will update
more specific FY22 guidance over coming months.


ENDS

Company Announcement
25 May 2021


4


About Turners

Turners Automotive Group Limited is an integrated financial services group, primarily operating in the
automotive sector www.turnersautogroup.co.nz

For further information, please contact:

Todd Hunter, Group CEO, Turners Automotive Group Limited, Mob: +64 21 722 818
Aaron Saunders, Group CEO, Turners Automotive Group Limited, Mob: +64 27 493 8794

---

Results announcement
Results for announcement to the market
Name of issuerTurners Automotive Group Limited
Report period12 months to 31 March 2021
Previous reporting period12 months to 31 March 2020
CurrencyNZD
Amount (000s)Percentage change
Revenue from continuing operations$296,512-11%
Total revenue$303,527-9%
Net profit from continuing operations$26,86428%
Total net profit $27,49036%
Final dividend
Amount per quoted equity security$0.06000000
Imputed amount per quoted security$0.02333333
Record date14/07/2021
Dividend payment date28/07/2021
Current periodPrior comparable period
Net tangible assets per quoted security$0.92$0.77
A brief explanation of any of the figures
above necessary to enable the figures to
be understood
Please refer to accompanying Company Announcement
Authority for this announcement
Name of person authorised to make this
announcement
Barbara Badish
Contact person for this announcementTodd Hunter
Contact phone number021 722 818
Contact email addressTodd.Hunter@turners.co.nz
Date of release through MAP25/05/2021
This announcement is based on audited results.

TURNERS AUTOMOTIVE GROUP LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 March 2021
20212020
$'000$'000
Revenue
296,512
332,174
Other income
7,015
500
Cost of goods sold
(116,036)
(135,003)
Interest expense
(11,266)
(14,853)
Impairment provision expense
(3,986)
(6,044)
Subcontracted services expense
(14,888)
(17,149)
Employee benefits
(52,023)
(55,458)
Commission
(12,721)
(13,368)
Advertising expense
(2,349)
(2,743)
Depreciation and amortisation expense
(11,418)
(11,919)
Systems maintenance
(2,365)
(1,747)
Claims
(21,843)
(25,952)
Other expenses
(17,257)
(19,373)
Profit before taxation37,375
29,065
Taxation expense
(10,511)
(8,112)
Profit from continuing operations 26,864
20,953
Other comprehensive income for the period (which may subsequently be
reclassified to profit/loss), net of tax
Cash flow hedges
1,023
(447)
Revaluation of financial assets at fair value through OCI
(430)
(310)
Foreign currency translation differences
33
(12)
Total comprehensive income for the period27,490
20,184
Earnings per share (cents per share)
Basic earnings per share
31.40
24.35
Diluted earnings per share
31.54
24.35

TURNERS AUTOMOTIVE GROUP LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 March 2021

Share
Capital
Share
Options
Reserve
Translation
Reserve
Revaluation of
financial
assets at
fair value
through OCI
Cash flow
reserve
Retained
EarningsTotal
$’000$’000$’000$’000$’000$’000$’000
Balance at 31 March 2019 206,395 1,027 (47) - (528) 19,527 226,374
Change in accounting policy
Impact implementation of NZ IFRS 16 - - - - - (5,666)(5,666)
- - - - (5,666) (5,666)
Balance at 1 April 2019 (restated) 206,395 1,027 (47) - (528) 13,861 220,708
Transactions with shareholders in their capacity as owners
Capital contributions (net of issue costs)
97 - - - - - 97
Capital buy back
(3,192) - - - - - (3,192)
Cancellation of options1,027(1,027)---- -
Dividend paid-----(14,742)(14,742)
(2,068) (1,027) - - - (14,742) (17,837)
Comprehensive income
Profit
----20,953 20,953
Other comprehensive income
--(12)(310)(447)-(769)
Total comprehensive income for the period, net of tax
- - (12) (310) (447) 20,953 20,184
Balance at 31 March 2020 204,327 - (59) (310) (975) 20,072 223,055
Transactions with shareholders in their capacity as owners
Capital buy back(30) - - - - -
(30)
Employee share based payments
-255----
255
Dividend paid
-----(17,200)
(17,200)
(30) 255 - - - (17,200) (16,975)
Comprehensive income
Profit----26,864
26,864
Other comprehensive income--33(430)1,023-
626
Total comprehensive income for the period, net of tax - - 33 (430) 1,023 26,864 27,490
Balance at 31 March 2021
204,297 255 (26) (740) 48 29,736 233,570

TURNERS AUTOMOTIVE GROUP LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 March 2021
20212020
Note$'000$'000
Assets
Cash and cash equivalents1
11,867
32,771
Financial assets at fair value through profit or loss
- Insurance
67,465
61,834
- Other
2,931
3,154
Trade receivables
7,155
8,609
Inventories
30,189
44,371
Finance receivables
330,165
293,037
Derivative financial instruments
40
-
Other receivables, deferred expenses and contract assets
8,116
8,572
Reverse annuity mortgages
4,152
4,913
Investment property
5,950
5,650
Financial assets at fair value through OCI
570
1,000
Property, plant and equipment
60,258
52,788
Right-of-use assets
23,559
24,850
Intangible assets
166,034
166,843
Total assets
718,451
708,392
Liabilities
Other payables
37,985
28,048
Contract liabilities
2,571
2,085
Deferred tax
11,297
10,080
Tax payable
3,453
2,772
Derivative financial instruments
-
985
Borrowings
339,611
350,364
Lease liabilities
28,747
32,511
Life investment contract liabilities
8,116
7,072
Insurance contract liabilities
53,101
51,420
Total liabilities
484,881
485,337
Shareholders' equity
Share capital
204,297
204,327
Other reserves
(463)
(1,344)
Retained earnings
29,736
20,072
Total shareholders' equity
233,570
223,055
Total shareholders' equity and liabilities
718,451
708,392
Total assets per share ($)8.40 8.28
Net tangible assets ($)0.92 0.77
Note 1
The Group's insurance business is required to comply with the solvency standards for licensed insurers issued by the Reserve Bank of
New Zealand. The solvency standards specify the level of assets the insurance business is required to hold in order to meet solvency
requirements, consequently all cash and cash equivalents and term deposits, disclosed in financial assets at fair value through the profit
or loss, held in the insurance business may not be available for use by the wider Group. DPL Insurance's cash and cash equivalents at
31 March 2021 were $0.7m (2020:$1.5m) and term deposits at 31 March 2021 were $59.2m (2020: $54.6m).
Cash and cash equivalents at 31 March 2021 of $3.6m (2020 : $5.1m) belongs to the Turners Marque Warehouse Trust 1 and is not
available to the Group.
Investments in unitised funds, disclosed in financial assets at fair value through the profit or loss, underwrite the Life investment policies
and are not available for use by the wider Group. Investments in unitised funds at 31 March 2021 were $8.3m (2020: $7.2m).

TURNERS AUTOMOTIVE GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 March 2021
20212020
$'000$'000
Cash flows from operating activities
Interest received 41,598 43,874
Receipts from customers 256,676 289,275
Receipt of government subsidies 5,247 -
Interest paid - borrowings(9,193) (10,822)
Interest paid - lease liabilities(1,461) (2,034)
Payment to suppliers and employees(222,063) (285,795)
Income tax paid(8,166) (11,460)
Net cash inflow/(outflow) from operating activities before
changes in operating assets and liabilities 62,638 23,038
Net increase in finance receivables(48,654) (27,826)
Net decrease in reverse annuity mortgages 1,134 3,964
Net (increase)/decrease of financial assets at fair value through profit or loss(4,090) 704
Net (withdrawal)/contribution from life investment contracts(150) 88
Changes in operating assets and liabilities arising from
cash flow movements(51,760) (23,070)
Net cash inflow/(outflow) from operating activities 10,878 (32)
Cash flows from investing activities
Proceeds from sale of property, plant, equipment and intangibles 563 913
Purchase of property, plant, equipment and intangibles(8,641) (19,245)
Purchase of investments - (1,310)
Sale of investments 234 473
Net cash inflow/(outflow) from investing activities(7,844) (19,169)
Cash flows from financing activities
Net bank loan advances/(repayments)(392) 61,038
Principal elements of lease payments(6,346) (6,998)
Buy back of shares - (3,192)
Dividend paid(17,200) (14,742)
Net cash inflow/(outflow) from financing activities(23,938) 36,106
Net movement in cash and cash equivalents(20,904) 16,905
Add opening cash and cash equivalents 32,771 15,866
Closing cash and cash equivalents11,867 32,771

TURNERS AUTOMOTIVE GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONT)
For the year ended 31 March 2021
RECONCILIATION OF NET SURPLUS WITH CASH FLOWS FROM OPERATING ACTIVITIES
20212020
$'000$'000
RECONCILIATION OF NET SURPLUS WITH CASH FLOWS FROM OPERATING ACTIVITIES
Profit/(loss) 26,864 20,953
Adjustment for non-cash items
Impairment charge on finance receivables, reverse annuity mortgages
and other receivables 3,986 6,044
Net loss/(profit) on sale fixed assets(689) (33)
Depreciation and amortisation 11,418 11,919
Capitalised reverse annuity mortgage interest(403) (613)
Deferred revenues 52 (2,892)
Fair value adjustments on assets/liabilities at fair value through profit and loss(1,582) 77
Net annuity and premium change to policyholders accounts 1,194 (500)
Non-cash adjustments to finance receivables effective interest rates(86) (226)
Deferred expenses(1,850) (2,652)
Fair value adjustment on contingent consideration - (116)
Revaluation gain on investment property(300) -
Gain on modification of a lease(1,132) -
Covid 19 rent concessions(780) -
Adjustment for movements in working capital
Net decrease/(increase) receivables and pre-payments 1,515 5,251
Net decrease/(increase) in inventories 14,182 (5,512)
Net increase/(decrease) in payables 6,955 (3,544)
Net increase/(decrease) in contract liabilities 1,365 (1,694)
Net increase in finance receivables(48,654) (27,826)
Net decrease in reverse annuity mortgages 1,134 3,964
Net decrease of insurance assets at fair value through profit or loss(4,090) 704
Net contributions/(withdrawals) from life investment contracts(150) 88
Net increase/(decrease) in deferred tax liability 1,248 (1,618)
Net increase/(decrease) in tax payable 681 (1,806)
Net cash inflow/(outflow) from operating activities 10,878 (32)

TURNERS AUTOMOTIVE GROUP LIMITED
NEW ACCOUNTING POLICY
SEGMENTAL INFORMATION
OPERATING SEGMENTS
RevenueRevenueRevenue
TotalInter-fromTotalInter-from
segmentsegmentexternalsegmentsegmentexternal
revenuerevenuecustomersrevenuerevenuecustomers
202120212021202020202020
$'000$'000$'000$'000$'000$'000
Automotive retail 204,991 (4,080) 200,911 229,512 (4,634) 224,878
Finance 47,862 - 47,862 45,744 - 45,744
Credit management 12,762 - 12,762 17,939 - 17,939
Insurance 43,175 (1,262) 41,913 45,236 (1,129) 44,107
Corporate & other 82 (3) 79 6 - 6
308,872 (5,345) 303,527 338,437 (5,763) 332,674
Operating profit20212020
$'000$'000
Automotive retail 15,415 13,829
Finance 15,816 12,167
Credit management 5,087 6,494
Insurance 9,350 6,215
Corporate & other(8,293) (9,640)
Profit/(loss) before taxation37,37529,065
Income tax(10,511) (8,112)
Profit attributable to shareholders 26,864 20,953
202120202021202020212020
$'000$'000$'000$'000$'000$'000
Automotive retail1,2083,904(2,144)(3,967)(8,891)(7,960)
Finance40,46640,579(5,503)(6,912)(782)(717)
Credit management15(30)(39)(289)(249)
Insurance1,6542,276(82)(91)(1,286)(2,783)
Corporate & other36(3,510)(3,930)(170)(210)
43,33246,770(11,269)(14,939)(11,418)(11,919)
Eliminations(3)(86)386--
43,32946,684(11,266)(14,853)(11,418)(11,919)
Other material non-cash items
20212020
$'000$'000
Automotive retail - gain on modification of a lease1,132-
Automotive retail - impairment provisions229(126)
Finance - impairment provisions(4,185)(5,888)
Insurance - reverse annuity mortgage interest403 613
Revenue/(expenses)
COVID-19-Related Rent Concessions (Amendment to NZ IFRS 16) have been early adopted.
Government grants are not recognised until there is reasonable assurance that the Group will comply with the conditions attaching to them and that the grants will be received.
Government grants are recognised in profit or loss on a systematic basis over the periods in which the Group recognises as expenses the related costs for which the grants are intended to
compensate.
Government grants
Interest revenueInterest expense
Depreciation and
amortisation expenses

TURNERS AUTOMOTIVE GROUP LIMITED
SEGMENT ASSETS AND LIABILITIES
2021202020212020
$'000$'000$'000$'000
Automotive retail110,818129,49667,55292,078
Finance351,185308,696271,383241,086
Credit management31,15138,2685,2987,585
Insurance139,583134,23675,02273,133
Corporate & other190,439216,17371,13491,423
823,176826,869490,389505,305
Eliminations(104,725)(118,477)(5,508)(19,968)
718,451708,392484,881485,337
Five reportable segments have been identified as follows:
Automotive retail -remarketing (motor vehicles, trucks, heavy machinery and commercial goods) and purchasing goods for sale.
Finance -provides asset based finance to consumers and SME's.
Credit management -
Insurance -marketing and administration of a range of life and consumer insurance and saving products.
Corporate & other -corporate centre.
DIVIDEND
2021
2020
$’000
$’000
Quarterly dividend for the year ended 31 March 2019: $0.04 per fully paid ordinary share, imputed, paid on 30 April 2019.-3,489
5,1624,366
3,4403,441
3,4383,446
5,160-
17,20014,742
Dividends not recognised at year end
In addition to the above dividends, after year end the directors recommended the payment of the following dividend:
Final dividend of $0.06 (31 March 2020: $0.06) per fully paid ordinary share, imputed, payable on 28 July 2021 (2020: 24 July 2020).5,1335,162
Segment liabilitiesSegment assets
Final dividend for the year ended 31 March 2020 of $0.06 (31 March 2019: $0.05) per fully paid ordinary share, imputed paid on 24 July 2020
(2019: 18 July 2019)
Quarterly dividend for the year ended 31 March 2021 of $0.04 (31 March 2020: $0.04) per fully paid ordinary share, imputed, paid on 22 October
2020 (2020: 22 October 2019).
Quarterly dividend for the year ended 31 March 2021 of $0.06 per fully paid ordinary share, imputed, paid on 30 March 2021
Quarterly dividend for the year ended 31 March 2021 of $0.04 (31 March 2020: $0.04) per fully paid ordinary share, imputed, paid on 28 January
2021 (2020: 30 January 2020).
collection services, credit management and debt recovery services to the corporate and SME sectors. Geographically the collections services segment business
activities are located in New Zealand and Australia.

---

FY21
Results
Presentation
For the twelve months ending
31 March 2021
1••FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP

Disclaimer
2• FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP
Turners Automotive Group the (company) is solely responsible for the content of this document. This document is not an investment
statement or prospectus and does not constitute an offer of securities.
This document or any other written or oral statements made by, or on behalf of, the company may include forward-looking statements that
reflect the company’s current views with respect to future events and financial performance. These forward-looking statements are subject to
uncertainties and other factors that could cause actual results to differ materially from such statements. These uncertainties and other factors
include, but are not limited to:
I. Uncertainties relating to government and regulatory policies;
II. The occurrence of catastrophic events with a frequency or severity exceeding our estimates;
III. The legal environment;
IV. Loss of services of any of the company’s officers;
V. General economic conditions; and
VI. The competitive environment in which the company, its subsidiaries and its customers operate; and other risks inherent inthe company’s
industry
The words “believe,” “anticipate,” “investment,” “plan,” “estimate,” “expect,” “intend,” “will likely result,” or “will continue” and other
similar expressions identify forward-looking statements. Recipients of this document are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of their dates. The company undertakes no obligation to update or revise any forwardlooking
statements, whether as a result of new information, future events or otherwise.

Agenda
1.FY21 Results
2.Segment results
3.Looking forward ...
3• FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP

Delivering on our plan for growth ...
1.We achieved 19% growth in normalised PBT in FY21...a step change in the business
performance
2.Full year dividend at 20.0cps versus guidance of 18.0cps. Based on a share price of $3.75 this
is a gross yield of 7.4% pa.
3.Our plan for growth* has been proven up and de-risked over the last three years:
1.Building out an omni-channel experience in Auto Retail
2.Auto Retail optimisation
3.Targeting high quality lending growth in finance
4.FY22 has started well, with April-21 materially ahead of trading in April-19
5.Our target is for a further 31% increase in Underlying NPBT from FY21 to FY24
* For more details on our Growth Plan, please refer to our recent Investor Presentation(14/4/2021)
4• FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP

FY21 Results overview
•NPBT $37.4m +29%
•NPAT $26.9m +28%
•Underlying NPBT $34.3m +19%
•Revenue $296.5m -11%
•Final dividend declared at 6.0 cps
•Full year dividend to 20.0 cps
•Earnings per share 31.4cps
+29%
•Effectively a 10-month trading period
due to lockdown
•Used vehicle supply constrained due
to “new car” supply chain issues
•Consumer demand better than
expected for vehicles
•Improvement in sourcing combined
with market dynamics have led to
improved margins
•Improving credit profile of loan
book showing through in arrears
Financials
Key Drivers for FY21
FY22 Update
•April-21 result strong...positive
momentum continues
•Auto retail: supply constrained market
expected to continue for 12-18 months
•Finance: new lending strong and
arrears at all-time historic lows
•Insurance:new policy sales strong,
claims ratios improving
•Credit: debt load returning as corporate
customers get back to BAU
5• FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP

6• FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP
1. FY21 Results

FY21 Results snapshot
Revenue
Net profit aftertax
Revenue
$296.5m-11%
Shareholders’Equity
$234m as at 31March 21
Underlying Net Profit BeforeTax
$34.3m+19%
Final Dividend6.0cps
FY Div20.0cps
Net Profit BeforeTax
$37.4m+29%
FY21 Earnings PerShare
31.4cps
(FY20 24.3cps,+29%)
Net Profit After Tax
$26.9m+28%
0
100
200
300
400
FY16FY17FY18FY19FY20FY21
Millions
2H
1H
-
5.0
10.0
15.0
20.0
25.0
30.0
FY16FY17FY18FY19FY20FY21
Millions
2H
1H
7• FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP

FY20 to FY21 Revenuebridge
•Revenue reflects material impact of L4 /L3 lockdown
in April & May impacting Auto Retail, Finance and
Insurance sales
•NZ used car market has recovered since lockdown
•Post lockdown there are emerging supply
constraints in the new car supply chain which are
likely to continue for at least 12-18 months
•Finance book reflects better quality business written
at lower interest rates
•Credit management revenue impacted by lack of
debt load from major banks as they managed
reputational risk
Revenue decreased from $332m to $297m
Revenue Bridge FY20 to FY21
($Millions)
8• FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP

FY20 to FY21 Net profit before tax(NPBT)bridge
•Cost reduction plans implemented as a priority in Covid
response plan
•Auto Retail result underpinned by stronger commercial
business and improved margins on owned inventory
•Finance driven by writing higher quality new business and
the resulting improved arrears performance
•Insurance result reflects improvement in claims ratios and
cost base
•Cost of funding reductions reflected in corporate cost line
NPBT increased from $29.0m to $37.4m
NPBT Bridge FY20 to FY21
($Millions)
9• FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP

Reconciliation: NPBT to underlyingNPBT
•Property adjustment includes IFRS 16 adjustment
of $1.9m benefit offset by property exit costs of
$1.3m, and rent relief of $700k
•A number of properties have been exited as part of
our retail optimisation and cost management plan
•H2 FY21 operating profit result has no one-off
adjustments and reflects our expected run rate of
$3m+ operating profit per month
$MillionsPeriodFY21FY20Var
Profit before tax actual37.429.129%
Oxford strategic review costs-0.2
Property exit and lease adjustmentsH1(1.3)(0.5)
NZ Government CovidSupportH1(5.1)
Staff/Directors Rem SacrificeH1(1.0)-
Employee restructurecostsH10.8
Profit normalisation(Apr/May 20)H13.5
Underlying operating result34.328.819%
H2 Operating Profit Run Rate18.7
10• FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP

Turners has a strong and sustainable yield
Dividend per Share ($)
Dividends fully imputed from FY17 onwards
•Business demonstrated strong momentum in
H2 FY21
•Directors declared a final dividend of 6.0 cents
per share (fully imputed) taking YTD dividends
to 20.0 cents per share.
•Based on a share price of $3.75 this is a gross
yield of 7.4% pa
0.10
0.13
0.145
0.155
0.17
0.14
0.20
0.00
0.05
0.10
0.15
0.20
0.25
FY15FY16FY17FY18FY19FY20FY21
11• FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP

Balance sheet has capacity to support growth
•Reduction in cash balances from precautionary
levels held at March-20.
•Inventory reduction due to improved stock turn and
management of aged stock.
•Change in Finance receivables reflects quality ledger
growth in Oxford.
•Property, plant and equipment increase due to
development of new site in Otahuhuand Nelson
purchase.
•Borrowings post Covid-19 de-leveraging partly offset
by finance receivable growth
$MillionsFY20FY19
Cash and cash equivalents1233
Financial assets at fair value7065
Inventory3044
Finance receivables330293
Property, plant and equipment6053
Right of use Assets2425
Intangible asset166167
Other assets2629
Total Assets718708
Borrowings340350
Other payables3828
Deferred tax1110
Insurance contract liabilities5351
Lease liabilities2933
Other Liabilities1413
Total Liabilities485485
Shareholders Equity233223
12• FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP

Fundingmixoptimised to support growth
Borrowings
Borrowings byUtilisation($Millions)
As at 30 March 2021
•Total borrowings down by $10m since March-20 due de-leveraging in
corporate debt, and working capital efficiencies, partially offset by
growth in receivables funding.
•Increase in Securitisation funding facility limit to$300m (including
capital contribution from TRA), to support growth in Oxford.
•77% of total debt in business relates to finance receivables.
•Oxford Finance has an equity to total assets ratio of 23% and currently
has capacity to underpin a further 18 months growth in the finance
book.
Inventory
Securitisation
Banking
Syndication
MTF
$MillionsLimitDrawnUndrawn
Receivables –Securitisation(BNZ)
276 239 37
Receivables –Banking Syndicate
(ASB/BNZ)
50 2030
Receivables –MTF
3 3 -
Corporate & Property(inclBond)
95 69 26
Inventory(ASB)
30 9 21
Totals
454 340 114
Finance
receivables
$262m (77%)
Corporate &
Property
$69m (20%)
Inventory
$9m (3%)
13• FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP

Environmental Social Governance
•The focus through FY21 has been on delivering on the
“social” pillar of our ESG strategy.
•Health and safety of customers and staff during Covid-19
•Implementing and employee engagement measure
(Peakon)
•Dealing with 1,700+ customer hardship situations in
Oxford Finance and successfully rehabilitating 96% of
these over the last 12 months.
•In process of establishing and measuring emissions targets
and we have a number of initiatives underway already
Board subcommittee established
Turners help in getting old and unusable vehicles off the
road
Piloting solar power installations in two of our sites and
have committed to rainwater retention systems
Vehicle subscription with a particular focus on Electric
Vehicles in partnership with EECA
PeakonEmployee Engagement Scores
7.6
7.7
7.8
7.9
8
8.1
8.2
8.3
Aug-20Oct-20Dec-20Mar-21
Across nearly 700 employees we are averaging
8+/10 to the question “How likely is it that you
would recommend Turners Auto Group as a
place to work?”
14• FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP

15• FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP
2. Segment Results

FY21 by segment
$ MillionsAutomotive RetailFinanceInsuranceCredit
Revenue201.0(11%)47.95%41.9(5%)12.8(29%)
Segment Profit15.411%15.830%9.450%5.1(22%)
16• FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP

FY21 by segment
Autoretail
•Covidrecovery and cost management
•Margin improvement through supply initiatives and supply constraints
•Continued optimisation for retail eg. new sites in Dunedin, Westgate,
Otahuhuand exit of Penrose
Finance
•Continued focus on targeting high quality borrowers,
•Refinement of risk pricing strategy
•Continue to make digital investments to improve customer experience
Creditmanagement
•Manage cost base in reduced debt load environment
•Work closely with large corporate customers to manage reputational risk
Insurance
•Good progress in building out distribution through integrating into finco
application systems
•Claims ratios continue to improve through risk pricing and procurement
initiatives
17• FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP

Automotiveretail
Revenue 201m -11%, Segment Profit $15.4m+11%
•Margin on retail channel sales substantially higher than an
auction channel sale.
•Margins on “owned” fleet have improved due to a number
of buying improvement initiatives, more retail sales and
constrained supply of used cars nationally.
•Diversified sources of supply continues to be a real
competitive advantage...increased brand spend in FY22
focused on attracting domestic supply.
•Inventory levels have been very stable for the last 11
months at $29m-$32m level around 30% lower than peak
at beginning of April. Sale volumes recovering and
tracking at similar levels to 2019.
•Significant improvement in commercial business.
45%
50%
55%
60%
65%
70%
FY18
Q1
FY18
Q2
FY18
Q3
FY18
Q4
FY19
Q1
FY19
Q2
FY19
Q3
FY19
Q4
FY20
Q1
FY20
Q2
FY20
Q3
FY20
Q4
FY21
Q1
FY21
Q2
FY21
Q3
FY21
Q4
BuyNow RetailExpon. (BuyNow Retail )
% of Total Sales by Sales Channel
Target for BuyNow Retail Channel
18• FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP

1. Sourcing
Buy more local car inventory &
maintain margin.
5. Build the BrandBecome a Kiwi Icon & market leader
in used car data.
RegionalBranch
Operating Profit of
$500k pa
Financeattach
+1% = $400k
1% lift
+800 salespa
Higher consideration
Profit / vehicle
$1,500
Growth Focus –Auto growth priorities
2. Retail Optimization
1-2 additional retail locations pa.
Investment in staff.
3. Finance & Insurance
Maximise F&I as a sales enabler &
revenue stream.
4. Lead management
Improvement in both marketing &
sales conversion rates.
19• FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP

Expansion -new sites confirmed for the next 12 months -Rotorua
20• FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP

Rotorua–high profile next to Countdown
21• FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP

Expansion -new sites confirmed for the next 12 months -Nelson
22• FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP

Nelson -corner site, next to Harvey Norman
23• FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP

Finance
Revenue $47.9m +5%, Segment Profit $15.8m +30%
Total Receivables (ex impairments)
Average Credit Score
•Premium Tier business growing strongly. For H2 has
averaged 45% of our new business per month
•Expanded the Risk Based Pricing Model in Dec-20 creating
further growth in Premium lending
•Arrears continue to track down at historic low levels,
Consumer arrears at 4.2% at end of March and
Commercial arrears at 1.8%.
•65 customers (or 0.29%) in hardship status, peaked at
1,700+ in June 2020.
•Still carrying a material Covid-19 arrears provisionbuffer to
allow for future uncertainty and performance of loans that
have been in hardship status.
250
260
270
280
290
300
310
320
330
$ Millions
350
400
450
500
550
600
650
1H172H171H182H181H192H191H202H201H212H21
Average
consumer
Equifax
credit score
Oxford Finance
24• FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP

04-1905-1906-1907-1908-1909-1910-1911-1912-1901-2002-2003-2004-2005-2006-2007-2008-2009-2010-2011-2012-2001-2102-2103-21
OtherPremium
Premium Tier
Introduced
Online document
signingIntroduced
FY20
Avg
Minimum credit
scores increased
Quality transformation in finance loan book progressing well...
25• FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP

Quality lending strategy resulting in arrears at record lows
4.2%
1.7%
•The loans we have written since Aug-19 are
tracking at 1.7% arrears
•Our premium strategy means the % of premium
lending will structurally increase over time.
•Runout of legacy low quality ledgers will be
complete by the end of FY22
Consumer Customer Arrears (Loan Balance)
26• FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP

Insurance
•Gross Written Premium up 2% on FY20 despite
impact of lockdown periods on FY21 sales.
•Claims loss ratios continue to improve due to better
underwriting, procurement and less vehicle
movement in lockdown periods.
•Good growth in digital distribution (MTF, Marac
Finance and Motorcentralusing Autosure API), and
pipeline of opportunities ahead.
•New portfolio management system providing product
and pricing agility
•AM Best upgraded credit rating for Insurance.
Financial strength rating improving to B++ (good).
Revenue $41.9m -5%, Segment Profit $9.4m +50%
Gross Written Premium FY21 v FY20 ($000s)
MBI Loss Ratio Performance
77%
75%
66%
60%
FY18 AFY19 AFY20 AFY21 A
MBI
1.0
2.0
3.0
4.0
AprMayJunJulAugSepOctNovDecJanFebMar
FY20FY21
27• FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP

Creditmanagement
•Total debt load down 47% to $119m, mainly due to large
NZ corporate customers pulling back on collections
actions during Covid-19 to manage reputational risk.
•Debt load from major banks and government
departments has re-commenced heading into year end.
•Debt collected down 39% to $40m, however conversion
rates have improved.
•Payment arrangement commitments met up to 74%
(70% FY20).
•New CEO of Credit Management appointed in Dec –20,
internal promotion of COO Matt Gannaway to CEO.
Revenue $12.8m -29%, Segment Profit $5.1m -22%
Debt Collected HY20to HY21($000s)
28• FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP

29• FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP
3. Looking forward ...

Growth model: FY22 –FY24
The model gives us confidence in higher earnings growth through the cycle.
We have found the right formula, and will optimise further ...
Four key areas underpin our earnings growth. These are a combination of both physical and digital:
1.Retail optimisation
2.Vehicle purchasing decision-making
3.Premium lending
4.Continued investment in digital and omni-channel customer
experience
30• FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP

Growth model: FY22
AutoRetail
•Stock acquisition –secure the right cars at the right price
•Continue to invest in promoting the Turners brand -build market share
•Retail optimisation –developing and launching Rotoruaand Nelson
Finance
•Expand distribution
•Keep improving credit quality through data driven risk pricing
•Simplify and automate lending process
•Reduce early settlements
CreditManagement
•Grow SME debt load
•Build on data initiatives to drive up contact rates with debtors
•Continue to develop Debtor self service portal, Xero/MYOB
•Continue working closely with corporates to manage reputational risk
Insurance
•Expand distribution through partnership strategy and sales integration into other
businesses
•Cost and claims management discipline
•Continue to enhance risk pricing
31• FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP

Capital Allocation: high level thinking
•Clear messagefrom market that shareholders want yield + growth supported from existing capital base
•Organic growth to be funded via retained earnings and improving capital efficiency
•Maintain dividend policy of 60% to 70% NPAT
•Capital allocation broadly prioritised as follows:
•Auto Retail businesses –footprint expansion can be funded largely through debt (lease premises and
floorplan finance for inventory), some capital investment required for fit-out of retail sites
•Property –de-risks the auto business through control of strategic sites and cost base plus provides
opportunity for long term capital growth.
•Oxford Finance –growth requires capital alongside debt to grow receivables ledger and profits
•Digital initiativesacross the Group largely assumed to be opex, supported by some capital to be
allocated to support growth and future proofing
32• FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP

20
25
30
35
40
45
50
FY18FY19FY20FY21FY24
Roadmap to $5/share ...
Over three years we target 31% growth in Underlying NPBT
Underlying Net Profit Before Tax ($M)
1
9.5%
CAGR
Dividends Paid (cps)
7.7%
CAGR
1
Underlying NPBT is a non-GAAP measure
Reported NPBT ($m) for FY18 31.1, FY19 29.0, FY20 29.1, FY21 37.4
Reconciliations for each of the periods can be found in the respective Annual Results Presentation
10.0
12.0
14.0
16.0
18.0
20.0
22.0
24.0
26.0
FY18FY19FY20FY21FY24
33• FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP

Roadmap to $5/share ...
•Business is highly cash generative, leading to growth + yield
for shareholders
•Profit growth largely driven out of Auto Retail and Finance
•Retail optimisation in Auto Retail –growth driven by
combination of new sites and growth in existing sites
•Margin expansion in Auto Retail out of supply side
initiatives
•Finance growth driven out of direct lending and
improvements in distribution
•Whilst PE multiples are assumed to expand they remain
very conservative
Net Profit Before Tax Bridge ($M)
34• FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP

•April-21 result strong...positive momentum continues
•Auto retail: supply constrained market expected to continue for 12-18 months
•Finance: new lending strong and arrears at all-time historic lows
•Insurance:new policy sales strong, claims ratios improving
•Credit: debt load returning as corporate customers get back to BAU
•We expect to see an improved result in FY22 and an increase in FY22 dividend
Outlook + guidance
35• FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP

For details on our Growth model, please refer to
our recent Investor Presentation (14/4/2021)
click here

Questions
37• FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP

Contact
ToddHunter
Group CEO
T: 64 21 722818
E:todd.hunter@turners.co.nz
Aaron Saunders
Group CFO
T: 64 27 4938794
E: aaron.saunders@turners.co.nz
38• FY21 RESULTS PRESENTATION –TURNERS AUTO
GROUP

---

Distribution Notice
Name of issuer
Financial product name/description
NZX ticker code
ISIN
Type of distributionFull YearXQuarterly
(Please mark with an X in the Half YearSpecial
relevant box/es)
DRP applies
Record date
Ex-Date(onebusinessdaybeforethe
Record Date)
Payment date
Totalmoniesassociatedwiththe
distribution
5,132,654.88$
Source of distribution
Currency
Gross distribution
Total cash distribution
Excluded amount (applicable to listed
PIEs)
Supplementary distribution amount
Is the distribution imputed
Iffullyorpartiallyimputed,please
state imputation rate as % applied
Imputationtaxcreditsperfinancial
product
Resident Withholding Tax per
financial product
Name of person authorised to make
this announcement
Contact person for this
announcement
Contact phone number
Contact email address
Date of release through MAP
Todd Hunter
021 722 818
Todd.Hunter@turners.co.nz
25 May 2021
Fully imputed
28%
$0.02333333
$0.00416667
Section 4: Authority for this announcement
Barbara Badish
Section 3: Imputation credits and Resident Withholding Tax
14 July 2021
13 July 2021
28 July 2021
Retained earnings
NZD
Section 2: Distribution amounts per financial product
$0.08333333
$0.06000000
n/a
$0.01058824
Section 1: Issuer information
Turners Automotive Group Limited
Ordinary shares
TRA
NZVNLE0001S1