NZX Retail Investor series presentation

1
NZ AUTOMOTIVE INVESTMENTS
NZXRETAiL
iNVESTOR SERiES
6 JULY 2021
DAViD PAGE, CEO

NZ AUTOMOTIVE INVESTMENTS | NZX RETAiL iNVESTOR SERiES
NZAI is an integrated used automotive group operating throughout New Zealand via two
divisions: Automotive Retail and Vehicle Finance.
ABOUT NZAI
Automotive Finance
Automotive Retail
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NZ AUTOMOTIVE INVESTMENTS | NZX RETAiL iNVESTOR SERiES
ABOUT NZAi | AUTOMOTiVE PROCUREMENT & RETAiL
PROCUREMENT
•Japan based team.
•Attends auctions, physically
inspects cars and makes
purchasing decisions.
•Improves quality, reduces cost and
timing delays.
COMPLiANCE AND TESTiNG
•Each vehicle is independently
tested by an NZTA approved third
party.
•A further round of internal checks to
ensure quality.
•Ability to process up to 250 cars a
week.
SALES
•Sold via digital platform and
dealership network.
•Efficient sales process (~23 days)
on average.
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NZ AUTOMOTIVE INVESTMENTS | NZX RETAiL iNVESTOR SERiES
ABOUT NZAi | AUTOMOTiVE PROCUREMENT & RETAiL
BRANDS AND VEHiCLESDEALERSHiP LOCATiONS
VEHiCLE SALES
0
2,000
4,000
6,000
8,000
10,000
12,000
FY16FY17FY18FY19FY20FY21
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NZ AUTOMOTIVE INVESTMENTS | NZX RETAiL iNVESTOR SERiES
$3.8M
30%
Current finance book
size
Percentage of automotive
retailer customers that
require finance
$8.3M
Net capital raised to fund
growth in FY22
4.6%
Percentage of retail car
sales NZMF financed
ABOUT NZAi | AUTOMOTiVE FiNANCE
GROWTH iN LOAN BOOK
•Began offering vehicle finance in June 2019.
•NZMF grew its loan book approximately 138% in FY21.
•Vertical integration with 2CC allows NZMF to originate its loans with
minimal acquisition and administrative costs.
FUNDiNG
•Net capital raised of $3.3m and a bank debt facility of $5.0m will
provide funding for FY22 loan book growth.
•$6.7m of funding available for new loans as of 31 Mar 2021.
•Renewed 2CC short term trade finance facility of $8.0m.
•Low write-off rate of 0.11%.
Demand for finance continues to be strong, this will be a focus area for growth.
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NZ AUTOMOTIVE INVESTMENTS | NZX RETAiL iNVESTOR SERiES
ABOUT NZAi | OUR JOURNEY
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NZ AUTOMOTIVE INVESTMENTS | NZX RETAiL iNVESTOR SERiES
ABOUT NZAI | WHAT WE’VE ACHiEVED RECENTLY
BOARD & MANAGEMENT
APPOiNTMENTS
Appointed an experienced Board
and management team, to provide
strong governance, lead the
company’s expansion and drive its
growth strategy.
DiRECT LiSTiNG
Successfully listed on the New
Zealand Stock Exchange (NZX),
going public via a direct listing
on the NZX main board.
ANNUAL FiNANCiAL
RESULT
Reported full year earnings to 31
March 2021 (FY21), achieving
NPAT slightly above guidance
and delivering a strong dividend
yield, demonstrating the ongoing
profitability and resilience of the
business.
STRATEGY
The Board and management
team continue to implement
NZAI’s strategy to be New
Zealand’s most innovative
provider of vehicle solutions,
delivering more affordable cars
to Kiwis than any other
company.
2020FEBRUARY 2021JUNE 2021ONGOiNG
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NZ AUTOMOTIVE INVESTMENTS | NZX RETAiL iNVESTOR SERiES
NZAI FY21 PERFORMANCE HIGHLIGHTS
$
3.8M
down 9.6%
UNDERLYiNG NPAT
1
$
7.8M
down 11.2%
UNDERLYiNG EBiTDA
1
$
66.1M
down 13.4%
REVENUE & iNCOME
$
6.4M
up $6.5m
UNDERLYiNG NET
OPERATiNG CASHFLOW
1
5.0CPS
SHARE
up 2.7 cps
2
DiViDEND (CPS)
11.7%
up 0.3%
UNDERLYiNG EBiTDA
MARGiN
1
1.Excludes transaction costs to list the Company.
2.Based on number of ordinary shares on issue post share restructure.
NB. Percentage change and other comparatives are based on results from the same period last year.
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NZ AUTOMOTIVE INVESTMENTS | NZX RETAiL iNVESTOR SERiES
TRACK RECORD OF PAYiNG DiViDENDS
•Consistently generating and a
healthy track record of paying
dividends.
•Policy of 50-60% NPAT dividend
pay-out ratio.
•FY21 dividend of 5.0c (fully
imputed) paid on 17 June 2021.
•Based on a share price of $1.05,
this represents a gross yield of
6.6% p.a.
DiViDEND OVER TiME
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NZ AUTOMOTIVE INVESTMENTS | NZX RETAiL iNVESTOR SERiES
NEW ZEALANDCAR iNDUSTRY
Growth of around3% (or ~ 130,000) vehicles per year.
96% of used light passenger vehicles are imported from Japan.
More than 2.2 MiLLiONvehicles in New Zealand predicted to be replaced over the
~ 150,000 used passenger vehicles are imported annually.
Over 90% of registered vehicles in New Zealand are light vehicles.
4.4 MiLLiON vehicles registered in New Zealand.
(or half) of the vehicles in New Zealand are predicted to be
replaced over the next 10 years.
Ministry of Transport 2019 –NZ Vehicle Fleet Data.
Motor Industry Association New Zealand (accessed as at 9 Nov 2020). Figures based on new registrations into New Zealand and do not include private sales between individuals.
Motor Vehicle Traders Register
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NZ AUTOMOTIVE INVESTMENTS | NZX RETAiL iNVESTOR SERiES
INDUSTRY TREND –CLEAN CAR PROGRAMME
Source: NZTA
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NZ AUTOMOTIVE INVESTMENTS | NZX RETAiL iNVESTOR SERiES
INDUSTRY TREND –ELECTRiC & HYBRiD ELECTRiC VEHiCLES (EV/HEV)
0
2000
4000
6000
8000
10000
12000
2018201920202021
ElectricPlug-in-HybridPetrol Hybrid
Source: Motor Industry Association
EV & HEV REGiSTRATiONS iN NEW ZEALAND (PER YEAR)
NZAI has a long-term strategy when it comes to EV/HEVs, and it continues to be
an area of focus to grow market share.
27,816
Electric vehicles on the road
in NZ (as at May 2021).
2050
Government’s target for being
carbon neutral.
1,073
No. of EV/HEVs 2 Cheap Cars
sold in FY21.
21%
Of sales were EV/HEV in the
last quarter of FY21.
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(YTD)

NZ AUTOMOTIVE INVESTMENTS | NZX RETAiL iNVESTOR SERiES
OUR STRATEGY
BE A TRUSTED
B
RAND
AND PARTNER.
GROW COMPANY VALUE.
L
EAD THE WAY.
D
ELiVER THE
B
EST
USED CARS.
OUR PURPOSE
Helping Kiwis
afford great
cars.
NZ AUTOMOTIVE INVESTMENTS | NZX RETAiL iNVESTOR SERiES
STRATEGiC GOALS
To be New Zealand’s most innovative provider of vehicle
solutions, delivering more affordable cars to Kiwis than
any other company.
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NZ AUTOMOTIVE INVESTMENTS | NZX RETAiL iNVESTOR SERiES
OUR STRATEGY
1. LEVERAGE OUR
STRENGTHS
Leverage the
company’s vertically
integrated supply chain
to source higher quality
cars at lower prices
than competitors.
2. GROW RETAIL
DISTRIBUTION
PLATFORM
Focus and drive
dealerships to deliver
value and maximise
sales.
3. GROW
VERTiCAL
iNTEGRATiON
Grow NZMF’s loan
book by offering more
automotive retail
customers finance from
NZMF.
4. IMPROVE
DiGiTAL
OFFERiNG
Develop the best and
most effective digital
platforms for our
customers and our
staff.
5. BUiLD BRAND
AND CUSTOMER
EXPERiENCE
Create best-in-class
customer experiences
that foster brand
loyalty.
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NZ AUTOMOTIVE INVESTMENTS | NZX RETAiL iNVESTOR SERiES
KEY TAKEAWAYS
1.CLEAR PURPOSE
2.iNTEGRATED BUSiNESS MODEL WiTH A VALUED CUSTOMER BASE
3.PROVEN TRACK RECORD OF SOLiD FiNANCiAL PERFORMANCE
4.STRONG CASHFLOW DELiVERiNG SHAREHOLDER RETURNS
5.LONG TERM GROWTH STRATEGY
6.EXPERiENCED BOARD AND MANAGEMENT CAPABiLiTY
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QUESTiONS
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NZ AUTOMOTIVE INVESTMENTS | NZX RETAiL iNVESTOR SERiES
THANK YOU
17 LEVENE PLACE, MT WELLiNGTON, AUCKLAND 1060
WWW.NZAUTOMOTiVEiNVESTMENTS.CO.NZ | PH: +64 9 869 3330

NZ AUTOMOTIVE INVESTMENTS | NZX RETAiL iNVESTOR SERiES
APPENDiX A | BOARD AND MANAGEMENT
KARL SMiTH
CHAIRMAN, INDEPENDENT DIRECTOR
DAViD (YUSUKE) SENA
EXECUTIVE DIRECTOR, CO-FOUNDER
EUGENE WiLLiAMS
EXECUTIVE DIRECTOR, CO-FOUNDER
TRACY ROWSELL
DIRECTOR
CHARLES BOLT
INDEPENDENT DIRECTOR
MiCHELEKERNAHAN
INDEPENDENT DIRECTOR

NZ AUTOMOTIVE INVESTMENTS | NZX RETAiL iNVESTOR SERiES
APPENDiX A | BOARD AND MANAGEMENT
KARL SMITH
CHAIRMAN
Karl is a professional independent director who has over 40 years’ extensive executive and governance experience. His current
directorships include Hamilton Jet, FortHillProperty Limited (Chair) and VetNZLimited. Karl previously held directorships in Ports of
Auckland, Lyttleton Port Company and the Crusaders Franchise Limited. Prior to becoming a professional director, Karl served as
Chief Executive Officer of Gough Group Limited and previously held senior executive positions in PDL Holdings, Progressive
Enterprises, Crane Group and Citibank N.A. Karl was appointed as Director and Chairman of NZAI in September 2020. Karl holds a
Bachelor of Commerce from the University of Canterbury, is a graduate of the Advanced Management Program at Harvard Business
School, is a Fellow of Chartered Accountants Australia and New Zealand and is a chartered member of the Institute of Directors.
EUGENE WiLLiAMS
EXECUTIVE DIRECTOR, CO-FOUNDER
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 (YUSUKE) SENA
EXECUTIVE DIRECTOR, CO-FOUNDER
David founded 2CC in 2011 with Eugene Williams. He is responsible for all procurement and supply chain aspects of the Company
including compliance, re-conditioning, and logistics. David was born in Japan and has been influential in developing and maintaining
relationships with vehicle suppliers. He has been a Director of NZAI since its inception.

NZ AUTOMOTIVE INVESTMENTS | NZX RETAiL iNVESTOR SERiES
APPENDiX A | BOARD AND MANAGEMENT
TRACY ROWSELL
DIRECTOR
Tracy is an advisory partner at BDO Auckland, with more than 20 years of experience in providing business advisory and taxation
services to a wide array of local and overseas clients. She has provided advice to 2CC since 2012 and has a close understanding and
knowledge of the business. Tracy has been a Director of NZAI since December 2020.
CHARLES BOLT
INDEPENDENT DIRECTOR
Charles has a background in corporate law and as a senior executive in a major listed company. Beginning his career in capital markets
regulation with the NZX, he then worked for New Zealand law firm Bell Gully before joining Fletcher Building where he most recently
held the role of Group General Counsel and Company Secretary until 2019. He is currently General Counsel for TIL Logistics Group
Limited. Charles holds an LLB from Victoria University and has completed the Senior Executive Programme at Columbia University,
New York. Charles has been a Director of NZAI since December 2020.
MiCHELE KERNAHAN
INDEPENDENT DIRECTOR
Michele is the Chief Executive Officer of New Zealand’s largest temperature-controlled transport and logistics business, Hall’s Group.
Prior to joining Hall’s Group in 2019 she held various Executive roles at Fletcher Building over 21 years, including as ChiefExecutive of
the Building Products division. She holds a Master of Business Administration and Bachelor of Arts from the University of Canterbury
and has completed the Advanced Management Programme at Harvard Business School and other Executive programmes at Wharton
Business School, Stanford School of Business and Melbourne Business School. Michele has been a Director of NZAI since February
2021.

NZ AUTOMOTIVE INVESTMENTS | NZX RETAiL iNVESTOR SERiES
APPENDiX A | BOARD AND MANAGEMENT
DAVID PAGE
CEO
David has worked across a diverse range of industries, holding a range of large-scale general management roles and corporate
governance responsibilities. David has over 25 years’ asset finance and banking experience, which includes a comprehensive
knowledge of consumer, motor vehicle and commercial asset finance. David 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. David joined NZAI as CEO in December 2020.
HAYDN MARKS
CFO
Haydn has over 20 years of financial management and leadership experience across financial services and technology sectors, including
most recently 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. After starting his career in advisory services in New Zealand, Haydn spent 10 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. Haydn is a member of Chartered Accountants Australia and New Zealand and holds a Bachelor of
Business from Massey University. Haydn joined the NZAI Group in November 2020.