NZAI FY21 Annual Meeting Presentation

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2021 Annual
Shareholders Meeting
25 August 2021
NZ AUTOMOTIVE INVESTMENTS | Fy21 ASM Presentation
NZ AUTOMOTIVE INVESTMENTS
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Important Notice and Disclaimer
This presentation is given on behalf of NZ Automotive Investments Limited (NZAI), (NZX:NZA).
Information in this presentation is for general information purposes only and is not an offer or invitation for subscription or
purchase of, or a recommendation to invest in NZAI securities.
The presentation should be read in conjunction with, and is subject to, NZAI’s latest set of financial statements for the period
ended 31 March 2021, and other market releases and information released on the NZX.
The presentation includes forward looking statements about NZAI and the environment that it operates in, which are subject
to uncertainties outside of NZAI’s control. NZAI’s results or performance may vary from these statements. Also included are
statements relating to past performance, which should not be regarded as a reliable indicator of future performance.
The presentation may contain information from third parties believed to be reliable, but no representations or warranties are
made as to the accuracy or completeness of such information.
Non-GAAP and non-IFRS measures are used as management and the Board believe they provide useful information for
readers to assist in the understanding of NZAI’s financial performance. Non-GAAP and non-IFRS measures do not have a
standardised meaning and should not be viewed in isolation or be considered substitutes for measures reported in
accordance with NZ IFRS. These measures have not been independently audited or reviewed.
All currency amounts are presented in NZ dollars, unless otherwise stated.
Authorised for release by the Board of Directors.
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Housekeeping matters
Q&A in Zoom
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•Welcome to the Zoom Call.
•We will be using the Zoom Q&A and Voting functionality during the session, the Chair will endeavor to
answer all questions in the available time.
•You can ask a question at any time, we will answer all questions at the end.
•Question & Answer: Open the Q&A window, allowing you to ask questions to the Board, Directors, CEO
and CFO.
•To ask a question, type your question into the Q&A box. Click Send.
•Note: Check ‘Send Anonymously’ if you do not want your name attached to your question in the Q&A.
•The Q&A functionality is located at the bottom of the Screen.
•Upvote questions that have already been asked if you want to ask the same question.

Housekeeping matters
Voting on Resolutions
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•We will be using the Poll feature in order to collate
Shareholder votes cast during the meeting.
•Voting will remain anonymous, and we will collate and
announce the results after the meeting on the NZX.
•If you are voting as a shareholder, be sure that you have
registered with your CSN number for your vote to be
considered valid.
•If there has been an issue, please advise the company
via haydn.m@nzautomotiveinvestments.co.nz if you
intend to cast your vote during the meeting.
•A pop up box will appear on your screen for you to be
able to vote at the appropriate time.

Agenda
1. Chairman's Address | Karl Smith
2. Business highlights | David Page
3. Ordinary Resolutions
4. Results from Proxy Voting
5. General Business
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Board of Directors
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
Michele Kernahan
INDEPENDENT DIRECTOR
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1. Chairman’s Address
Karl Smith
Chairman
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FY21 Highlights –The year that has been
•2021 a year of significant change and progress
•Successful Board & management appointments
•Direct listing on the NZX
•Finalised our strategy
•Covid-19 impact
•Good start as publicly listed company - first annual results above guidance
•Fully imputed dividend of 5.0 cps declared
8NZ AUTOMOTIVE INVESTMENTS | Fy21 ASM Presentation

Our points of difference
How is NZAI differentiated in the automotive market?
1. Our target market is different - High quality, more affordable cars
•2 Cheap Cars has been a disruptor in the automotive retail market with its high volume, low
margin business model
•Price point $5k-$15k
•We focus on middle NZ, “helping Kiwis afford great cars”
2. Our vehicle sourcing is different - Japan-based procurement team
•We are one of the biggest importers of secondhand vehicles from Japan into New Zealand with
approximately 7.5% market share - we don’t rely on domestic supply
•We have our own people on the ground in Japan
3. Our objectives are different - Accelerating the shift towards climate friendly vehicles
•We support lower emission vehicles, EV and HEV - opportunity
•Digital channels - opportunity
•Powerhouse in the automotive sector focused on used car market
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OUR STRATEGY –Looking forward with a strategy to grow
Our purpose
Helping Kiwis
afford great
cars
.
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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2. BUSINESS HIGHLIGHTS
David page
Chief executive officer
NZ AUTOMOTIVE INVESTMENTS | Fy21 ASM Presentation1111NZ AUTOMOTIVE INVESTMENTS | Fy21 ASM Presentation

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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ABOUT NZAI
AUTOMOTIVE PROCUREMENT & RETAIL
BRANDS & VEHICLES12 DEALERSHIP LOCATIONSVEHICLE SALES
0
2,000
4,000
6,000
8,000
10,000
12,000
FY16 FY17 FY18 FY19 FY20 FY21
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$3.8
m
30%
FY21 Finance book
size
Percentage of automotive
retailer customers that
require finance
$6.7
m
Funding available for new
loans in FY22
4.6%
Percentage of retail car
sales NZMF financed
NZMF
AUTOMOTIVE FINANCE
GROWTH IN LOAN BOOK
•NZMF grew its loan book approximately 138% in FY21.
•Low write-off rate of 0.11%.
Future growth from:
•Increase finance penetration rate within the Group;
•Partnerships with third party automotive retail dealers; and
•Explore opportunities for acquisition growth.
Demand for finance continues to be strong, this will be a focus area for growth.
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LOAN BOOK FUNDING
NZMF is well financed to carry out strategy to grow loan book.
•NZAI successfully carried out a capital raise for
$3.5m, or $3.3m after transaction costs.
•And arranged a $5.0m bank debt facility to
provide funding for loan book growth.
•NZMF had $6.7m of funding available for new
loans as at 31 March 2021.
NZMF Loan book use of funds
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NZAI FY21 PERFORMANCE HIGHLIGHTS
$
3.8
M
down 9.6%
UNDERLYING NPAT
1
$
7.8
M
down 10.7%
UNDERLYING EBITDA
1
$
66.1
M
down 13.4%
REVENUE & INCOME
1. Includes Finance income and 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.
3. A non-GAAP measure which includes finance income and adjustments which normalize performance for the impact of non-recurring items. EBITDA including Finance income and excluding normalisations was $8.7m for FY20.
Historical REVENUE & INCOME
HistoricalEBITDA
3
$7.1
$5.9
$9.0
$7.8
FY18FY19FY20FY21
$73.7
$78.4
$76.4
$66.1
FY18FY19FY20FY21
$
6.4
M
up $6.5m
Underlying net operating
cashflow
1
5.0
cps
up 2.7 cps
2
Dividend (CPS)
11.7
%
up 0.3%
Underlying ebitda margin
1
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TRACK RECORD OF PAYING DIVIDENDS
•Consistently generating strong
cashflow paying out strong
dividends.
•Policy of 50 – 60% NPAT
dividend pay-out ratio.
•FY21 dividend of 5.0c (fully
imputed) paid on 17 June 2021.
•Based on the dividend record
date, share price of $1.05
represented a gross yield of
6.6% p.a.
DIVIDEND OVER TIME
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More than
2.2 million
vehicles in New Zealand predicted to be replaced over the
NZ USED CAR INDUSTRY
A Resilient Market with Favourable Market Dynamics
Growth of around
3%
(or ~ 130,000) vehicles per year.
96%
of used light passenger vehicles are imported from Japan.
~ 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.
Source: Ministry of transport 2019 – NZ Vehicle Fleet Data, Motor Industry Association New Zealand (accessed as of 10 February 2021). Figures based on new registrations into New Zealand and
do not include private sales between individuals and Motor Vehicles Traders Register.
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INDUSTRY TREND
ELECTRIC & HYBRID ELECTRIC VEHICLES (EV/HEV)
CLEAN CAR IMPORT STANDARD -NZAI SALES
NZAI has a long-term strategy when it comes to EV/HEVs.
We are well positioned to meet demand.
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.
78%
22%
CURRENT BUYING PROFILE
No PenaltyPenalty
68%
32%
FY21 SALES PROFILE
No Penalty
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INDUSTRY TREND -THE 3 A’s OF CLEAN CARS

OUR STRATEGY
1. EXPAND SUPPLY
CHAIN
Expand our HUB car
processing to unlock
growth.
Actively increase supply
of affordable EV & HEVS.
Leverage our scale to
drive efficiencies.
2. GROW RETAIL
DISTRIBUTION
Expansion of national
dealership footprint.
Upgrade and modernise
physical dealerships.
3. GROW FINANCE
LOAN BOOK
Increase financial
penetration.
Implement digital
application and
fulfilment.
Explore acquisition
opportunities.
4. IMPROVE DIGITAL
OFFERING
Refine full end-to-end
online buying process.
Automate internal
processes.
5. CUSTOMER
EXPERIENCE
Deepen our connection
with our 130,000
followers on Social
Media.
Invest in customer care
team.
Uplift Net promoter
score.
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STRATEGIC EXECUTION – NEW HOME FOR NZAI
NZAI is pleased to announce that it is moving to an expanded Vehicle Processing Hub and Head Office for 2 Cheap Cars.
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Benefits
•Pre-tax $0.8m gain from leases
negotiations
•Increased processing capacity
•Functional layout enabling
automation
•Approx. 1.5 x current foot print
•More attractive location for staff
and suppliers

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NZ AUTOMOTIVE INVESTMENTS | Fy21 ASM Presentation
STRATEGIC EXECUTION – NEW HOME FOR NZAI

STRATEGY EXECUTION
Other areas of strategic progress:
•NZMF growth - loan book up 18% to $4.5m since March 2021
•New NZMF partnerships signed – accessing new customers
•Digital transformation – 2 Cheap Cars “buy now’’ online capability continuing to grow
•Electric and hybrid vehicles – 21% of cars sold presenting further opportunity
•Acquisition
–
no current active opportunities
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YEAR TO DATE performance
NZAI has had a successful first four months of the year in the lead up to the latest
Covid lockdown.
•Revenues are up 37% to $24.7m for 4 months to July 21, compared to the same period in 2020
•Vehicle sales up 28% YTD on the same period last year
•Stronger finance penetration across the group YTD
•NZMF loan book up 18% to $4.5m since March 2021
•Revenues and income across the Group are up 38% to $25.2m to July 2021
•Cost management focus, responding to inflationary headwinds across labour, shipping and compliance
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OUTLOOK
NZAI has a solid platform to continue to execute strategy
•Realise expected financial and operational benefits from moving to the new Vehicle Processing Hub
•Continue to drive NZMF growth momentum
•Optimise longstanding supply chain relationships
•Continue to leverage opportunity presented by EV/HEVs
•Deepen connection with 130,000 followers on social media
•Focus on attracting and retaining quality staff
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OUTLOOK continued
NZAI well positioned to work through latest COVID challenges.
COVID status
•All dealerships closed at level 4
•Limited trading possible in any shift to level 3
•Period to end of July trading ahead of Covid-impacted Prior Corresponding Period
•Prolonged extension of level 4 and 3 alert levels could have a material impact on trading for the
balance of the year.
Resilient sector
•Used car market (less discretionary than new cars)
•Geographically dispersed NZ customer base
•We service the mid-range buyer
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OUTLOOK continued
NZAI well positioned to work through latest COVID challenges.
Immediate focus
•Support staff & customers
•Secure supply chain
•Plan to deliver more cars to dealerships to meet post COVID demand
Management working to mitigate longer term risks
•Cost management focus, responding to inflationary headwinds across labour, shipping and
compliance.
•Execute on move to the new hub, embedding lean processes and delivering efficiencies
•Deliver uplift in worker engagement / retention
•Further promote and deploy digital purchasing and finance solutions
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NZ AUTOMOTIVE INVESTMENTS | Fy21 ASM Presentation
Our customers, our team, our business

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Our customers, our team, our business

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Our customers, our team, our business

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3. Ordinary Resolutions

Voting on Resolutions
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•When the Poll is launched it will appear on your screen,
simply select your response and then submit to confirm
your vote.
•Voting will remain anonymous, and we will collate and
announce the results after the meeting on the NZX.
•If there has been an issue, please advise the company
via haydn.m@nzautomotiveinvestments.co.nz
Vote by selecting
from the options
presented here
After this press
submit in order to
confirm your vote,
the textbox will
disappear after this

Auditors' remuneration
Resolution 1
“That the Board be authorised to fix the
auditors remuneration”
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Election of Directors
Resolution 2
“That Karl Smith, Chairman, be
re-elected as a director of NZAI”
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Election of Directors
Resolution 3
“That David (Yusuke) Sena be
re-elected as a director of NZAI”
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Election of Directors
Resolution 4
“That Eugene Williams be
re-elected as a director of NZAI”
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4. Proxy voting
results

Proxy voting results
Resolutions% For% Against % Abstain
% of Total votes
cast
Auditors remuneration
94.02%-- 94.05%
Re-election of Karl Smith, Chairman
93.98%--
94.05%
Re-election of David Sena, Director
94.01%--
94.05%
Re-election of Eugene Williams, Director
94.01%--
94.05%
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•Provided by Computershare, as of 4:30pm 23 August 2021, close of proxy voting. There were also a
small number of discretionary proxy votes which will be included in the final voting.
•Full voting results will be posted to the NZX on 26 August 2021.

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5. Shareholder
questions

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Meeting Close

Thank you
17 Levene Place, Mt Wellington, Auckland 1060
www.nzautomotiveinvestments.co.nz | Ph: +64 9 869 3330
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