Letter to Shareholders – Chief Executive

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PO Box 6159 Level 6 Telephone 04 384-9734 E-mail cmc@colmotor.co.nz
Wellington 6141 57 Courtenay Place Facsimile 04 801-7279 Website www.colmotor.co.nz
NEW ZEALAND Wellington 6011 DX SP21009




CHIEF EXECUTIVE AND SENIOR MANAGEMENT CHANGES


Dear CMC Shareholder

At the Company AGM in November 2020 it was announced that Graeme Gibbons,
would be retiring as CEO in 2021. This is now confirmed to take place on 30
September 2021. Graeme will continue his involvement with the Company as a
Director.

Graeme has been CEO since July 1990. He started at a time when the new vehicle
industry was under intense pressure from a depressed economy, compounded by the
industry adjusting to the removal of import tariffs plus the unintended consequence of
used car imports. It was a period of profound change and downsizing. The
Company’s trading profit after tax in 1991 was only $1.8m and the new vehicle
industry did not exceed its 1980’s peak volume until 2014. Following Ford NZ’s exit
from the heavy truck market, Graeme led the establishment of Southpac Trucks with
the Kenworth and Foden heavy truck franchises, later adding the DAF brand. Mazda
franchises were added to the Group in the early 2000’s, initially as part of the
Auckland Auto Collection joint venture with Ford and Mazda. The last 20 years has
been a period of organic expansion and reinvestment, with sustained profitability
enabling significant growth in dividends and total shareholder returns.

Of necessity, a change of CEO after 30 years requires a wide review of what and how
the Company’s Group Office carries out its functions. In early 2020 the Board carried
out a thorough review to identify a pathway to select and appoint a new CEO and
management team. As part of that process, the nature and functions of the CMC
Group Office were reviewed, especially its relationships within the Group and with
numerous external parties. The process needed to identify what was required in order
to select the best people. Both internal candidates and external options were
considered. Early on the Board identified that the Group Office needed an expanded
leadership team.

The internal candidates were identified and over an extended period of time the Board
and executive assessed their capabilities and suitability for the roles. This pathway
also included identifying education and training opportunities to round out their
experience.

Alex Gibbons will be appointed the new Chief Executive Officer, commencing on 1
October 2021. He will be supported by June Gibbons, Group Manager of People
Process and Technology, and Paul Stephenson, Group Manager Finance.
Jack Tuohy continues in his role as Company Secretary.

As CEO, Alex will have overall responsibility for the performance of the Company,
supported by the Group Managers who will provide the depth in their respective fields.
June will pick up leadership of the Group’s dealership support functions including
health & safety, information systems, customer retention processes, and human
relations. Paul will manage the external financial reporting requirements of the
Company, taxation, external audit and internal management accounting and the
Company’s funding requirements.

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Alex has a Masters degree in Marketing Management from Otago. He then worked
with Sanitarium Health and Wellbeing Company in the areas of business analysis and
category management before joining the CMC Group in 2015 at Southpac Trucks.
There he was responsible for developing systems for marketing, sales and customer
retention. In 2017 he moved to the CMC Group Office, initially working on dealership
information systems and building a deeper understanding of the functions the Group
Office performs. More recently as General Manager, he has been involved with
property development, strategic planning, working with the Dealer Principals and
dealership performance.

June has a Masters degree in Resource Management from Munich, Germany. She
started with the Group in 2016 as Accountant at Stevens Motors in Lower Hutt and
then became CFO of both of the Wellington dealerships. Through 2020 she was
heavily involved in the integration of Capital City Motors and Stevens Motors into one
dealership for the Wellington region. June moved to the CMC Group Office in late
2020.

Paul has a degree in Civil Engineering from Loughborough University in the United
Kingdom and is a member of the Institute of Chartered Accountants in England and
Wales. Paul was the Chief Financial Officer of a privately owned aged care provider
before joining the Group in 2019.

The Board has confidence that the new and expanded management team, combined
with the existing expertise throughout the Group, has the capacity and ability to guide
the Company to a successful future in the forever changing business environment in
which we operate.

The Board wishes to sincerely thank Graeme for his efforts and commitment and to
acknowledge his sustained successes in leading the Company over three decades.


On behalf of the Board


Jim Gibbons
Chairman

28 May 2021