NZ Automotive full year results for FY2022

Full Year Results29 May 20222CCFinancials

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NZ Automotive Investments Limited
102 Mays Road,
Onehunga,
Auckland, 1061
+64 (9) 869 3330

info@nzautomotiveinvestments.co.nz
nzautomotiveinvestments.co.nz

NZ Automotive Investments announces its FY22 results and final 0.88 cps dividend

Auckland, 30 May 2022

NZX: NZA

NZ Automotive Investments Limited today announced its audited financial results for the year ended 31
March 2022 (FY22).

Summary:

 Revenue and income of $66.0 million, down $0.1 million from last year
 Actual net profit after tax (NPAT) of $2.6 million down from $3.2 million last year
 Underlying net profit after tax of $1.7 million down from $3.8 million last year
 Net operating cashflow (excluding loan book lending) decreased by $6.8 million
 Underlying earnings per share of 4.0 cps (actual eps 6.0 cps)
 Final gross dividend of 0.88 cents per share bringing full year FY22 gross dividend to 3.1 cps

Chief Executive David Page said: “The last financial year has been a difficult one for the business with
the Covid 19 restrictions having a greater impact than in FY2021, with our dealership network being
restricted from fully operating for a total of 108 days. The reduced ability to trade during the lockdowns
and pandemic-related uncertainty impacted buyer behaviour, while the Omicron outbreak in January and
February meant more stringent self-isolation with the business not experiencing the same level of bounce
back in sales previously experienced after the first lockdown in the prior financial year.

“The August lockdown provided an opportunity for the vehicle processing hub to review stock and process
vehicles freeing up future capacity. While the decision to bring this initiative forward was made to improve
future processing capacity and to help enable a stock clearance strategy ahead of the move to new
premises, it did absorb more time and incurred more cost to resolve than had been anticipated.”

“As a consequence of the lower volume of vehicle sales and the new CCCFA lending standards, 2 Cheap
Cars’ finance and insurance income was impacted in the second half of the year. The changes to lending
standards made it more difficult for some customers to access consumer finance, and also increased the
time for our third party providers to process applications. The second half of the year was also impacted
by an unexpected strengthening of the New Zealand dollar against the Japanese Yen. This affected the
Company’s foreign exchange hedge position with respect to committed inventory purchases, across the
FY22 balance date, resulting in an adverse impact on net profit after tax.

The rearrangement of the company’s leases associated with the shift of the vehicle processing hub from
Mt Wellington to Onehunga realised a one off, non recurring gain of $0.9 million, resulting in a reported
NPAT of $2.6 million. Underlying NPAT as noted in the summary above was therefore $1.7 million

Net operating cashflow, excluding NZ Motor Finance lending decreased by $6.8 million in FY22 due to
the timing of inventory purchases, in particular a prepaid shipment of $3.2 million at the end of March
2022.

NZAI’s balance sheet remains solid, with $3.8 million in cash and net debt of $8 million as at 31 March
2022.

The Board has approved a final gross dividend for the financial year of 0.88 cents per share (fully imputed)
to be paid on 24 June 2022. Combined with the interim dividend of 2.22 cents per share that brings the
total gross dividend to 3.1 cents per share for FY22. Based on a share price of $0.73, this represents a
total gross dividend yield for the year of 4.24%. NZAI now has over 3,000 shareholders.

Results by Division

Automotive Retail

The Covid 19 restrictions meant that the business was restricted from fully operating for a total of 108
days, or 30% of the year, with 63 of the impacted days falling in the second half of the financial year.
Accordingly, revenue decreased by 2.1% to $63.4 million. The business sold 7,882 vehicles, being 325
less than last year. The reduction in the number of vehicles sold was primarily offset by the ability to raise
selling prices.

In the first half of the year the business purchased a greater number of vehicles than in the prior
comparative period as part of a plan to build stock ahead of shipping and logistics challenges and potential
stock shortages. The purchase price of these vehicles increased on average by almost 15% - a reflection
of macroeconomic factors including a reduced supply of new vehicles globally and a resultant increase
in global demand for used vehicles, and regulatory changes in New Zealand requiring better quality and
therefore higher priced used vehicles.

Sales of electric and hybrid electric vehicles (EV/HEV) almost doubled to 27% of all sales in FY22. The
Company increased its inventory of EV/HEVs to meet an anticipated increase in demand as a result of
the Government’s Clean Car Discount Scheme, increasing petrol and diesel prices, and the consequent
consumer demand for these types of vehicles.

Move to New Vehicle Processing Facility

As part of a strategy to take advantage of the Company’s vertical integration, the Company moved into
an expanded vehicle processing hub in Onehunga, also investing in equipment and processes to optimise
flow and output. This move will set the business up for greater vehicle processing capacity to position the
business for sales growth, while providing greater amenity and a safer and more pleasant working
environment for employees and contractors.

Digital Marketing

A further strategic initiative was the introduction of click and collect functionality to the Company’s website
which was developed on the back of the 2020 lockdowns. This innovation resulted in 39% of all vehicle

sales during the lockdown period being completed through the click and collect channel, and 16% of all
vehicle sales over the whole financial year were completed this way.

Automotive Finance

The NZ Motor Finance business had a pleasing financial result with the loan book growing from
$3.8 million to $6.8 million, an increase of 79%. As at 31 March 2022 NZ Motor Finance had 889 loans
in place.

People and Culture

In April 2022, inaugural Chairperson Karl Smith and Independent Director Michele Kernahan stepped
down from the NZAI Board. Tim Cook joined the Board as an Independent Director and Charles Bolt was
appointed the Interim Chairperson, having been an Independent Director since listing. The Board will be
looking to make at least one further appointment of a Director in the coming months.

The Board will also be working closely with management to review the operating structure of the Company
to ensure that the business is positioned for growth, and that it has the right skillsets that will be required
to deliver on that strategy.

There is no doubt that the past year has seen many challenges and disruptions resulting from the
pandemic. The Company is appreciative of its employees who have remained focused on supporting the
customers and each other during this period, and has put in place a number of strategies to lift
engagement and attract and retain talent.

Outlook

In the early days of the new financial year, the Retail Automotive Division is seeing an improvement in
sales and foot traffic, although there remains some economic uncertainty, with rising interest rates,
inflationary pressures in an economy emerging from the current Covid pandemic.

By achieving greater efficiencies in the relocated vehicle processing hub and executing on a carefully
targeted plan to increase the dealership footprint and a significant uplift in sales and marketing
investment, the Company is well positioned for growth and development. Coupled with the increasing
demand for more fuel efficient and environmentally friendly vehicles, and the model of directly sourcing
such vehicles through the Japan-based buying team, the Company is also set up to deliver on this
evolving dynamic and respond to the changing regulatory settings and upcoming opportunities in this part
of the economy.

We thank our valued shareholders for their continuing support.

Media and investor enquiries:
David Page
CEO
+64 21 980 795
David.p@nzautomotiveinvestments.co.nz

About NZAI
NZAI is an integrated used automotive group operating throughout New Zealand via two subsidiaries:
Automotive Retail and Vehicle Finance. NZAI’s mission is to deliver quality cars and financing solutions
at the most affordable prices to the average New Zealander. Operating under the “2 Cheap Cars” brand,
its Automotive Retail company is one of the largest used vehicle sellers in New Zealand with 12
dealerships across the country. Its Vehicle Finance company operates under the “NZ Motor Finance”
brand. It was established in 2019 to diversify earnings and provide a further growth opportunity for NZAI.
It originates loans entirely from cross-selling to Automotive Retail customers, which allows NZ Motor
Finance to grow its finance book with minimal acquisition and administrative costs.
www.nzautomotiveinvestments.co.nz

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FY22 RESULTS
PRESENTATION
FULL YEAR FINANCIAL RESULTS
TO MARCH 2022
30 MAY 2022
NZ AUTOMOTIVE INVESTMENTS
1

IMPORTANT NOTICE & DISCLAIMER
This presentation is given on behalf of NZAutomotive 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 2022, 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 information presented is current at 31 March 2022, unless otherwise stated. All currency amounts are presented in NZ dollars, unless
otherwise stated.
Authorised for release by the Board of Directors.
NZ AUTOMOTIVE INVESTMENTS | FY22 INVESTOR PRESENTATION
2

PERFORMANCE HIGHLIGHTS – YEAR ENDING 31 MARCH 2022
$
2.6
M
down 18.9% ($0.6m)
NPAT
$
1.7
M
down 55.7%
UNDERLYING NPAT
$
66.0
M
down0.3%
REVENUE & INCOME
$
0.6
m
down ($6.8M)
NET OPERATING
CASHFLOW ex LENDING
3.1
CPS
Final gross dividend of 0.88 cps
to be paid in June 2022
FULL YEAR DIVIDEND
0.6
CPS
down 51%
EPS
4
*.
Underlying NPAT is a non-IFRS measure and excludes the net consideration from rearrangement of leases.
*
NZ AUTOMOTIVE INVESTMENTS | FY22 INVESTOR PRESENTATION

1. BUSINESS PERFORMANCE
• We have taken steps to establish a base for future growth in the business.
• Completed the move to the vehicle processing Hub in Onehunga, setting the business up to unlock growth.
• Opened new Westgate dealership in March 2022.
• Sales of HEV/EV’s doubled in FY22 against last year and digital sales made up 16% of total sales.
• Dealership network was restricted from full operating for 108 days due to COVID restrictions.
• Pandemic related uncertainty impacted buyer behaviour.
• August lockdown provided opportunity to review stock and process vehicles, freeing up future capacity.
• 2 Cheap Cars finance and insurance income was impacted in second half of year by CCCFA regulations.
• NZ Motor Finance nearly doubled its loan book size during the year.
• Our buyer score improved during the year from 4.33 to 4.5 and again received the silver service Readers Digest award.
5
NZ AUTOMOTIVE INVESTMENTS | FY22 INVESTOR PRESENTATION

2. FY22 FINANCIAL RESULTS
6
NZ AUTOMOTIVE INVESTMENTS | FY22 INVESTOR PRESENTATION
• Revenue & income of $66.0m was largely in-line with FY21.
• Vehicle sales and revenues were affected by COVID disruption.
• Underlying EBITDA including finance income decreased from
$7.8 million in FY21 to $4.5 million in FY22.
• Sales volume decreases, together with reducing the age of
inventory and costs associated with being a listed company
contributed to the $3.3m reduction.
• A foreign exchange hedging loss in March 2022 of $0.7m also
affected the FY22 result.
• Net profit after tax (NPAT) of $2.6 million included a net gain of
$0.9m associated with the re-arrangement of leases.
• Gross dividend yield of 4.24% on an annualised basis, delivering
a final gross dividend of 0.88 cents per share.
FY22FY21 Change
Revenue and income
64.2 65.4 (1.7%)
Sundry income
1.7 0.8 127.2%
Total revenue and income66.0 66.1 (0.3%)
Operating expenses
60.6 58.4 3.8%
Cost to list company0.7
N/A
EBITDA inc. finance income5.4 7.1 (23.6%)
Net consideration from reassignment of leases (0.9)
N/A
Cost to list company0.7
N/A
Underlying EBITDA inc finance income4.5 7.8 (41.8%)
EBITDA Margin6.8%11.7% (4.9%)
D&A
1.8 2.0 (9.8%)
EBIT3.6 5.1 (28.9%)
Interest expense
0.4 0.4 6.5%
NPBT3.2 4.7 (31.9%)
Tax
0.6 1.5 (59.7%)
NPAT2.6 3.2 (18.9%)
Tax effect of Other items
(0.9)0.6 (243.7%)
Underlying NPAT1.7 3.8 (55.7%)
Underlying NPAT Margin2.6%5.8% (3.2%)
EPS
0.06 0.12
(50.6%)
NZD m

FY22 CASHFLOW
• Net cash flow excluding loan book lending decreased by $6.8m.
• Impacted by timing of inventory purchases, including a prepaid
shipment of $3.2m at the end of March.
• NZMF lent $6.6m to customers resulting in net loan book
lending of $3.1m.
• Invested in new plant & equipment during the year, including the
setup of the new vehicle processing hub to optimise flow and
output.
7
NZ AUTOMOTIVE INVESTMENTS | FY22 INVESTOR PRESENTATION
NZAI HAS FORWARD INVESTED IN INVENTORY WHILST MAINTAINING WORKING CAPITAL
Cash flow summaryFY22FY21 Change
Net cash flow ex. loan book lending0.6 7.4 (6.8)
Net loan book lending (3.1) (1.5) (1.6)
Net operating cash flow (2.5)5.7 (8.2)
Investing cash flow (0.4) (0.2) (0.3)
Financing cash flow (1.5)1.0 (2.4)
Net cash flow (4.4)6.5 (10.9)
Cash equivalents3.8 8.3 (4.5)
NZD m

FY22 FINANCIAL POSITION & FUNDING
• Inventory turnover improved to 86 days from 94 days.
• Loan book grew to $6.8m, with low write-offs for the period
• Loan book debt facility increased to $6.0m.
• At 31 March NZMF had $2.2m of funding available to lend.
• Balance sheet remains solid with $3.8m in cash and net
debt of $8.0m as at 31 March 2022.
8
NZ AUTOMOTIVE INVESTMENTS | FY22 INVESTOR PRESENTATION
Balance sheet summaryFY22FY21
Cash equivalents3.8 8.3
Inventories13.0 11.9
Loan receivables6.8 3.8
Other assets13.7 10.5
Total assets37.3 34.4
Borrowings11.8 8.4
Other liabilities10.4 10.4
Total liabilities22.2 18.8
Equity15.1 15.6
NZD m

3. BUSINESS UPDATE
2 CHEAP CARS
AUTOMOTIVE RETAIL
VEHICLE SALES AND REVENUE
• Revenue down 2.1% on the prior year.
• Profit per car was in-line with the prior year.
• Average cost price of vehicles increased by 15% over FY22.
• Focus on improved vehicle quality as average car prices rise.
PROCESSING CAPACITY
• Relocated to the new expanded vehicle processing hub in Onehunga in February
2022 which will set the business up for greater processing capacity and enable
growth.
• Hired new GM of Operations and Customer Care team.
13
$
1.57
k
16%
Dealerships
Digital sales
Cars sold in FY22
Average profit per car
7,882
9
NZ AUTOMOTIVE INVESTMENTS | FY22 INVESTOR PRESENTATION

10
WESTGATE AUCKLAND WAS OPENED IN MARCH AND A LARGER NEW LYNN SITE WILL BE OPENING IN JUNE
NZ AUTOMOTIVE INVESTMENTS | FY22 INVESTOR PRESENTATION
2 CHEAP CARS
EXPANSION OF DEALERSHIP FOOTPRINT
WESTGATE
NEW LYNN

GROWTH OPPORTUNITY
ELECTRIC & HYBRID ELECTRIC VEHICLES (EV/HEV’s)
CLEAN CAR IMPORT STANDARD
NZAI HAS A LONG-TERM STRATEGY WHEN IT COMES TO EV/HEV’s - WE ARE WELL POSITIONED TO MEET DEMAND
34,513
Electric vehicles on the road in
NZ (Source: Ministry of
Transport, 31 March 2022).
2,097
Number of of EV/HEVs
2 Cheap Cars sold in FY22, an
increase of 95% on FY21
EV/HEV SALES GROW TO 37% OF TOTAL SALES
11
NZ AUTOMOTIVE INVESTMENTS | FY22 INVESTOR PRESENTATION

$6.8
M
32%
FY22 Finance book
size
Percentage of automotive
retail customers that
require finance
889
Number of loans
4.6%
Percentage of retail car
sales financed by NZMF
NZMF
AUTOMOTIVE FINANCE
• NZMF grew its loan book by approximately 79% in FY22.
• Signed partnerships with additional third-party automotive retail
dealers.
• Low write-off rate on loan book - less than 0.05%.
DEMAND FOR FINANCE CONTINUES TO BE STRONG, BUT HAS BEEN AFFECTED BY CCCFA REGULATION CHANGES.
12
NZ AUTOMOTIVE INVESTMENTS | FY22 INVESTOR PRESENTATION

4. 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.
Invest in brand /
advertising.
3. GROW
FINANCE LOAN
BOOK
Increase financial
penetration.
Implement digital
application and
fulfilment.
4. IMPROVE
DIGITAL
OFFERING
Refine full end-to-end
online buying process.
Automate internal
processes.
Execute on customer
insights.
5. CUSTOMER
EXPERIENCE
Deepen our connection
with our 130,000
followers on social
media.
Invest in customer care
team.
Uplift net promoter
score from 4.33 to 4.5.
Deliver customer value
through partnerships.
13
NZ AUTOMOTIVE INVESTMENTS | FY22 INVESTOR PRESENTATION
P
P
P
P
P
P
P
P
P
Progress made

STRATEGIC EXECUTION – NEW HOME FOR NZAI
SUCCESSFULLY MOVED VEHICLE PROCESSING HUB AND HEAD OFFICE FOR 2 CHEAP CARS
Benefits
•Increased processing capacity.
•Functional layout enabling
automation.
•Approximately 1.5 x footprint
increase.
•More attractive and safer
location for staff and suppliers.
14
NZ AUTOMOTIVE INVESTMENTS | FY22 INVESTOR PRESENTATION

MARKET DYNAMICS
15
Source: NZTA and Autofile
CY: Calendar year.
USED CAR IMPORT MARKET IN NEW ZEALAND IS UP 8% in 2021
NZ AUTOMOTIVE INVESTMENTS | FY22 INVESTOR PRESENTATION
• Average fleet age of a NZ used imported
vehicle is 17 years.
• Government’s ‘Clean Car Discount’ scheme,
implemented earlier this year, is creating
demand for EV/HEV vehicles.
• Government’s recently announced scrap-to-
replace scheme expected to add to demand.
• Rising fuel costs continuing to drive
consumers towards more fuel-efficient
vehicles.
EXPECT DEMAND FOR USED VEHICLES TO CONTINUE

5. OUTLOOK
In the early days of the new financial year, the business is seeing an improvement in sales and foot traffic.
Focus areas for FY23
• Capitalise on the increased capacity at the new vehicle processing hub.
• Targeted expansion of the distribution network of dealerships.
• Significant uplift in sales and marketing investment.
• Improved core supply chain capabilities, including purchasing and in-housing activity.
• Leverage EV/HEV opportunities presented by the Government’s clean car and scrap-to-replace initiatives.
We thank our valued shareholders for their continuing support.
16
NZ AUTOMOTIVE INVESTMENTS | FY22 INVESTOR PRESENTATION

Q&A6.
17
NZ AUTOMOTIVE INVESTMENTS | FY22 INVESTOR PRESENTATION

THANK YOU
102 Mays Road, Onehunga, Auckland 1061
www.nzautomotiveinvestments.co.nz | Ph: +64 9 869 3330
18

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NZ AUTOMOTIVE
INVESTMENTS LIMITED
FINANCIAL STATEMENTS
31 MARCH 2022

NZ AUTOMOTIVE INVESTMENTS LIMITED
Table of Contents
SectionPage(s)
Director's Report3
Consolidated Statement of Profit or Loss and Other Comprehensive Income4
Consolidated Statement of Changes in Equity5
Consolidated Statement of Financial Position6
Consolidated Statement of Cash Flows7
Notes to the Consolidated Financial Statements8 - 35
Audit Report36 - 38
Company Directory39
2

NZ AUTOMOTIVE INVESTMENTS LIMITED
Director's Report
For the Year ended 31 March 2022
Approved for and on behalf of the Board of Directors
Director
Director
29th of May 2022Date
The Board of Directors of NZ Automotive Investments Limited
present the consolidated financial statements of the Group
for the year ended 31 March 2022.
The Board of Directors of NZ Automotive Investments Limited
authorised the issue of these consolidated financial statements
on this 29 day of May 2022
3

NZ AUTOMOTIVE INVESTMENTS LIMITED
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the Year Ended 31 March 2022
NoteMAR 2022MAR 2021
$'000$'000
Revenue
Revenue and Income464,231 65,366
Sundry Income51,725 759
Expenses
Cost of sales(51,680) (51,688)
Administration expenses(2,720) (2,032)
Advertising expenses(1,192) (1,201)
Depreciation expenses(1,779) (1,972)
Employee benefits(3,847) (2,806)
Finance expenses8(689) (413)
Property expenses(853) (627)
Operating Profit3,196 5,386
Listing Costs- (695)
Profit before Income Tax3,196 4,691
Income Tax Expense20(602) (1,492)
Profit for the period2,594 3,199
Other Comprehensive Income
Items that may be reclassified subsequently to profit or loss
Translation of foreign operations(90) (86)
Total Other Comprehensive Income(90) (86)
Total Comprehensive income for the Period2,504 3,113
Earnings per share
Basic earnings per share 100.06 0.12
Diluted earnings per share 100.06 0.12
The accompanying notes form part of these consolidated financial statements
κ

NZ AUTOMOTIVE INVESTMENTS LIMITED
Consolidated Statement of Changes in Equity
For the Year Ended 31 March 2022
Share
Capital
Retained
Earnings
Foreign
Currency
Translation
Reserve
Amalgamation
Reserve
Total
attributable to
equity holders
of Parent
Non‐
Controlling
Interests
Total Equity/
(Accumulated
Losses)
$'000$'000$'000$'000$'000$'000$'000
Balance as at 1 April 202015,442 10,061 91 (35,442) (9,848) 67 (9,781)
Profit for the Period- 3,199 - - 3,199 - 3,199
Translation of Foreign Operations- -(86) (86) - (86)
Total Comprehensive Income for the Period- 3,199 (86) - 3,113 - 3,113
.
Transactions with owners of the Group in their capacity as owners
Movement in NCI- 24 - - 24 (67) (43)
Movement in Share Capital23,902 - - - 23,902 - 23,902
Movement in Amalgamation- - - (514) (514) - (514)
Dividends paid- (1,064) - - (1,064) - (1,064)
Total transactions with owners of the Group23,902 (1,040) - (514) 22,348 (67) 22,281
Balance as at 31 March 202139,344 12,220 5 (35,956) 15,613 - 15,613
Balance as at 1 April 202139,344 12,220 5 (35,956) 15,613 - 15,613
Profit for the Period- 2,594 - - 2,594
- 2,594
Translation of Foreign Operations- -(90) - (90) - (90)
Total Comprehensive Income for the Period- 2,594 (90) - 2,504 - 2,504
Share options recognised at fair value net of options lapsed21 - - - 21 - 21
Dividends paid- (3,025) - - (3,025) - (3,025)
Total transactions with owners of the Group21 (3,025) - - (3,004) - (3,004)
Balance as at 31 March 202239,365 11,789 (85) (35,956) 15,113 - 15,113
The accompanying notes form part of these consolidated financial statements
5

NZ AUTOMOTIVE INVESTMENTS LIMITED
Consolidated Statement of Financial Position
As At 31 March 2022
MAR 2022MAR 2021
Note$'000$'000
Equity
Share Capital2339,365 39,344
Amalgamation Reserve(35,956) (35,956)
Foreign Currency Translation Reserve(85) 5
Retained Earnings11,789 12,220
Total Equity15,113 15,613
Current Liabilities
Trade and Other Payables161,890 2,095
Employee Benefit liabilities19933 871
Borrowings2211,800 8,420
Income tax Payable- 724
Derivative financial liabilities18414 43
Related Party Payable2510 20
Lease liability171,484 1,600
Other Current Liabilities126 35
Total Current Liabilities16,657 13,808
Non-Current Liabilities
Lease Liability175,833 5,003
Total Non-Current Liabilities5,833 5,003
Total equity and liabilities37,603 34,424
Current assets
Cash and cash equivalents123,790 8,267
Trade and other receivables154,865 2,559
Income tax receivable288 -
Loans receivable142,954 1,591
Inventories1313,008 11,892
Total current assets24,905 24,309
Non-current assets
Plant, property and equipment
271,335
1,176

Intangible assets4 4
Loans receivable 143,870 2,212
Deferred tax asset20433 477
Right-of-use assets 177,056 6,246
Total non-current assets12,698 10,115
Total assets 37,603 34,424
Approved on behalf of the Board on 29th May 2022
DirectorDate29 May 2022
DirectorDate29 May 2022
6

NZ AUTOMOTIVE INVESTMENTS LIMITED
Consolidated Statement of Cash Flows
For The Year Ended 31 March 2022
MAR 2022MAR 2021
$'000$'000
Cash flows from operating activities
Cash receipts from customers
65,068 64,471
Government Grants Received
351 600
Cash paid to suppliers and employees
(63,047) (55,169)
Interest received
26 14
Interest paid - retail operations
(263) (165)
Tax paid
(1,570) (2,366)
Net cash inflow from operating activities before Changes in
Operating Assets and Liabilities
565 7,385
Loan receivables advanced
(6,576) (3,589)
Proceeds from loan receivables
3,514 2,123
Net cash inflow / (outflow) from operating activities(2,497) 5,919
Cash flows from investing activities
Proceeds from sale of property, plant and equipment
242 19
Purchase of property, plant and equipment
(656) (176)
Net cash outflow from investing activities(414) (157)
Cash flows from financing activities
Dividend paid
(3,025) (1,078)
Repayments from related parties
- 4
Interest paid - finance operations
(187) (234)
Principal elements of lease payments
(1,645) (1,682)
Capital Raise
- 3,555
Cost of capital raise
- (243)
Trade finance advance
3,380 420
Net cash inflow / (outflow) from financing activities(1,477) 742
Net increase/(decrease) in cash and cash equivalents
(4,388) 6,504
Cash and cash equivalents at beginning of period
8,267 1,775
Effect of exchange rate
(89)
(12)
Cash and cash equivalents at end of period3,790 8,267
The accompanying notes form part of these consolidated financial statements
7

Notes to the Financial Statements
1. Reporting entity
2. Basis of preparation
(a) Statement of compliance
(b) Basis of measurement
• Derivative financial instruments (Note 18)
• Loans receivable (Note 14)
(c) Functional and presentation currency
(d) Going Concern and COVID-19
NZ Automotive Investments Limited (the Company) is a company domiciled in New Zealand.
The Company is incorporated in New Zealand, registered under the Companies Act 1993 and is publicly traded on the
New Zealand Stock Exchange.
These consolidated financial statements comply with the requirements of the Companies Act 1993 and the Financial
Markets Conduct Act 2013.
These consolidated financial statements as at 31 March 2022 comprise the Company and its subsidiaries:
2 Cheap Cars Limited, NZ Motor Finance Limited, 2CC International Limited, 2 Cheap Rental Cars Limited and Car Plus
K.K. (collectively, the Group).
These consolidated financial statements have been prepared in accordance with Generally Accepted Accounting Practice
in New Zealand (GAAP) and the requirements of the Financial Markets Conduct Act 2013.
The consolidated financial statements have been prepared on the historical cost basis except that certain assets and
liabilities are measured at fair value where stated under their specific accounting policies.
The COVID-19 pandemic has continued to disrupt economic activity in New Zealand through out FY2022 due to
Government introduced restrictions, put in place to reduce the spread of the virus compounded by reduced consumer
spending due to unwillingness to attend retail settings.
Demand for used cars in New Zealand was strong in the lead up to the lockdown commencing 17 August 2021. The
business was performing solidly to this point and ahead of the same Covid-affected period last year. On 17 August 2021
due to the Covid-19 alert system in New Zealand having moved to level 4, all twelve 2 Cheap Cars Limited dealerships
and the company’s car processing hub in Auckland closed for a period of time. The business was able to trade, but only
on a limited basis through online channels during any move to alert level 3 and then on a more complete basis when
regions out of Auckland moved to level 2.
The Group enacted a COVID recovery plan, which included negotiating an extension to trade finance contracts in order to
conserve cash during the period. All measures were taken to ensure staff were safe and still being paid. Rent relief was
sought and other cost saving measures were implemented during this time. The Group did not experience any significant
issues with regards to finance customers meeting debt repayment obligations and there are no significant uncertain
estimates or unusual provisions at balance date.
These consolidated financial statements for the Group are presented in New Zealand dollars ($), which is the Group's
functional and the Group's presentation currency. All financial information presented has been rounded to the nearest
thousand dollars.
These financial statements comply with New Zealand equivalents of International Financial Reporting Standards (NZ
IFRS). As such, they also comply with International Financial Reporting Standards (IFRS).
8

(e) Critical accounting estimates and judgements
(f) Changes in accounting policies
None during the period.
(g) Changes in accounting estimates
During the period the group updated its accounting treatment with regards to depreciation of fixed assets, previously
utilising the diminishing value methodology, and switching to the Straight line method going forward. The effective date of
this change is 1 April 2021. The Accounting Treatment has therefore been applied prospectively from this date. The
Interim financial statements for the six month period ended 30 September 2021 will therefore be restated in the next
appropriate reporting period following the updated methodology. Refer to Note 27 for the financial impact of this change.
The preparation of the consolidated financial statements, requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and
expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are
recognised in the period in which the estimates are revised and in any future periods affected.
Towards the end of the financial period, particularly in the final quarter, when the Omicron COVID-19 wave was affecting
New Zealand, there was a economic impact which affected the demand for used motor vehicles in New Zealand, due to
less active customers in the retail setting.
The Directors have assessed the likely impact of COVID-19 on the Group and have concluded that, for the 12 months
from the date of signing the financial statements, COVID-19 is not expected to impact the Group’s ability to continue
operating as a going concern. The main drivers of this conclusion are due to the business‘ past performance of navigating
COVID disruptions and due to the fact that the Government has implemented the new COVID response plan, with high
population vaccination rates and the introduction of the traffic light system which is expected to see retail business less
affected by restrictive lockdowns moving forward. The group is maintaining a conservative cash balance to assist in the
event of further restrictive lockdowns.
Based on these factors, the Directors consider that the Group is a going concern and the consolidated financial
statements have been prepared on that basis.
9

3. Significant Accounting Policies
Details of the Group’s significant accounting policies are provided below.
a) Basis of consolidation
Subsidiaries
Name
MAR 2022MAR 2021
2 Cheap Cars LimitedNew Zealand
100%100%
NZ Motor Finance LimitedNew Zealand
100%100%
2CC International LimitedNew Zealand
100%100%
2 Cheap Rental Cars LimitedNew Zealand
100%100%
Car Plus K.K
Japan100%100%
(b) Foreign currency
(i) Foreign currency transactions
The consolidated financial statements present the results of the Company and its subsidiaries (“the Group”) as if they
formed a single entity. Intra-group transactions and balances are therefore eliminated in full.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated
from the date that control ceases.
Transactions in foreign currencies are translated to the functional currency at exchange rates at the dates of the
transactions. Foreign currency differences arising from settlement at a different exchange rate are recognised in profit or
loss.
(ii) Foreign currency monetary assets and liabilities
(iii) Foreign currency non-monetary assets and liabilities
Foreign non-monetary assets and liabilities that are measured based on historical costs are translated using the
exchange rate at the date of the transactions. Any foreign currency difference arising due to translating to functional
currency are recognised in profit or loss.
At balance date, foreign monetary assets and liabilities are translated to the functional currency at the closing rate and
exchange variations are recognised in profit or loss.
The Group has applied the same accounting policies and methods of computation in these financial statements as its
previous annual financial statements, except for those detailed in note 2(f) and (g) above.
In preparing the consolidated financial statements, all intercompany balances, transactions, unrealised gains and losses
resulting from intra-group transactions and dividends have been eliminated in full.
The subsidiaries of NZ Automotive Investments Limited, all of which have been included in these consolidated financial
statements, are as follows:
Proportion of
ownership interest
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to,
variable returns from its involvement with the entity and has the ability to affect those returns through its power over the
entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date that
control commences.
Country of incorporation and
principal place of business
10

(c) Revenue
(i) Vehicles sold
(ii) Insurance policies
(iii) Sale of scrap parts
(iv) Commissions received (booking fee, sales, finance)
(v) Interest revenue calculated using the effective interest method
Performance obligations and timing of revenue recognition
The specific revenue recognition policies associated with the Group’s distinct performance obligations (as presented in
Note 4) are detailed below:
Revenue is recognised at a point-in-time, with the transfer of control determined as the point purchaser takes final
physical possession of the vehicle.
Commission revenue is recognised on an agent basis at a point-in-time , with the transfer of control determined at the
point the end customer enters into a signed insurance policy with the insurance provider (principal). As the uncertainty
associated with any commission clawbacks is resolved, previously deferred revenue recognised as contract liabilities is
released and recognised as revenue.
Revenue is recognised at a point-in-time, with the transfer of control determined as the point that the purchaser takes
final physical possession of the scrap parts.
Revenue is recognised on an agent basis at a point-in-time , with the transfer of control determined as the point the end
customer enters into a signed finance agreement with the finance provider (principal). As the uncertainty associated
with any commission clawbacks is resolved, previously deferred revenue recognised as contract liabilities is released
and recognised as revenue.
Interest revenue comprises interest on loans receivable and cash and cash equivalents. Interest revenue is recognised
based on the effective interest method.
Revenue is measured based on the consideration to which the Group expects to be entitled to, excluding amounts
collected on behalf of third parties and net of rebates, discounts and payments to customers that are not in consideration
for separate goods or services provided. This represents the fair value of total consideration payable, including both cash
and in the case of vehicles sold, any vehicle trade-ins.
Where the ultimate transaction price receivable is subject to variability (such as in the case of vehicle returns or
clawbacks on commissions) revenue is recognised only to the extent that it is highly probable that the revenue recognised
would not be subsequently reversed.
Revenue is recognised when the control associated with a good or service (or in aggregate thereof) representing a
distinct performance obligation is transferred from the Group to the customer.
Where a single contract contains two or more distinct performance obligations, the total transaction price of the contract is
allocated between the separate performance obligations based on their stand-alone-sales-prices, and represents the
revenue to be recognised with respect to that separate performance obligation.
11

(d) Insurance contracts
NZ IFRS 17 Insurance contracts becomes effective for annual reporting periods commencing on or after 1 January 2023.
- Use of interest-bearing borrowings (interest rate risk); and:
- Purchases in foreign currencies (foreign currency risk).
(e) Tax
(i)
(ii)temporary differences arising on the initial recognition of goodwill; and
(iii)
NZ IFRS 17 Insurance contracts provides a scope exception for certain contracts that provide waivers (forgiveness) of
loan balances upon the occurrence of specified events. Rather than accounting for these waivers as insurance contracts,
the scope exemptions permits the Group to elect to account for such loans entirely as financial instruments.
temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business
combination and that affects neither accounting nor taxable profit or loss,
temporary differences related to investments in subsidiaries and jointly controlled entities to the extent that the
timing of the reversal of the temporary differences is controlled by the Group and it is probable that they will not
reverse in the foreseeable future.
Tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in profit or loss, except to
the extent that they relate to items recognised directly in equity or in other comprehensive income. In such cases, the tax
is also recognised directly in equity or in other comprehensive income, respectively.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted
or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Current tax
also includes any tax liability arising from the declaration of dividends.
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for:
The Group has elected to apply this scope exemption. Further details of the accounting policy relating to Loans receivable
to which the scope exemption directly effects can be found in Note 7.
Revenue is recognised on an over-time basis subject to meeting specific criteria, otherwise, revenue is recognised at a
point-in-time , being the point that the customer obtains control of the good or service subject to various indicators.
Payment received from customers before revenue is recognised and presented as a “Contract liability” in the consolidated
statement of financial position.
Receivables resulting from revenue being recognised before the Company is able to contractually invoice for the goods or
services provided is recognised and presented as a “Other current asset” in the consolidated statement of financial
position.
The Group recognises revenue on a net basis as an “Agent” (rather than on a gross basis as “Principal”) when
(i) it is not the party primarily responsible for fulfilling to provide goods or services to the end customer,
(ii) when it does not assume the (inventory) risk of the goods or services, and/or
(iii) it does not have discretion in setting the price payable by the end customer.
ϭϮ

(f) Employee benefits
(i) Short-term employee benefits
(ii) Defined contribution plans (Kiwisaver etc.)
(iii) Share-based payment arrangements
Equity Settled Transactions.
The Group has provided benefits to key management personnel in the form of share-based payments, whereby
employees render services in exchange for shares or rights over shares (equity settled transactions). The cost of these
equity-settled transactions with employees is measured by reference to the fair value benefit of the equity instruments at
the date at which they are granted. In valuing equity-settled transactions, conditions linked to the price of the shares of NZ
Automotive Investments (NZX:NZA - market conditions) are considered where applicable. The cost of equity-settled
transactions is recognised, together with a corresponding increase in equity, over the period in which the performance
and/or service conditions are fulfilled (the vesting period), ending on the date on which the relevant employees become
fully entitled to the award (the vesting date).
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse,
using tax rates enacted or substantively enacted at the reporting date.
In determining the amount of current and deferred tax the Group takes into account the impact of uncertain tax positions
and whether additional taxes and interest may be due. The Group believes that its accruals for tax liabilities are adequate
for all open tax years based on its assessment of many factors, including interpretations of tax law and prior experience.
This assessment relies on estimates and assumptions and may involve a series of judgements about future events. New
information may become available that causes the Group to change its judgement regarding the adequacy of existing tax
liabilities; such changes to tax liabilities will impact tax expense in the period that such a determination is made.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets,
and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but
they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised
simultaneously.
Contributions to defined contribution plans are recognised in the consolidated statement of profit or loss and other
comprehensive income in the year to which they relate.
A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extent
that it is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are
reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will
be realised.
Liabilities for wages and salaries, including non-monetary benefits and accumulating annual leave that are expected to be
settled wholly within 12 months after the end of the period in which the employees render the related service are
recognised in respect of employees’ services up to the end of the reporting period and are measured at the amounts
expected to be paid when the liabilities are settled.
These include salaries and wages accrued up to the reporting date and annual leave earned, but not yet taken at the
reporting date. The Group recognises a liability and an expense for bonuses where they are contractually obliged or
where there is a past practice that has created a constructive obligation.
ϭ3

(g) Property, plant and equipment
(i) Recognition and measurement
Cost includes expenditure that is directly attributable to the acquisition of the asset.
(ii) Subsequent expenditure
(iii) Depreciation
The useful lives and depreciation method used for significant items of property, plant and equipment are as follows:
Leasehold improvements 6.7% - 20.0% SL
Furniture and fittings 6.3% - 50.0% SL
Motor vehicles 10.0% - 50.0% SL
Computer equipment 20.0% - 100% SL
Workshop equipment 10.0% - 50.0% SL
Depreciation methods, useful lives and residual values are reviewed at reporting date and adjusted if appropriate.
(h) Inventories
Vehicles acquired via trade-in from car sales with customers are initially measured at their trade-in date fair value.
(i) Financial instruments
The Group recognises financial instruments when it becomes a party to the contractual provisions of the instrument.
(i) Financial assets – classification and subsequent measurement
At Amortised cost
Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each component of
an item of property, plant and equipment.
Inventories are measured at the lower of cost and net realisable value with due allowance for any damaged and obsolete
stock items. The cost of inventories is based on the first-in first-out principle and includes expenditure incurred in
acquiring the inventories and other costs incurred in bringing them to their existing location and condition.
Financial instruments are initially measured at fair value. For those financial instruments that are classified as amortised
cost this includes directly attributable transaction costs. For those financial instruments classified as at fair value through
profit or loss, any directly attributable transaction costs are expensed in profit or loss as incurred. Financial liabilities are
measured net of transaction costs.
Financial assets are classified based on whether their repayments represent solely payments of principal and interest
(SPPI), and whether the instrument is held to collect those repayments, and/ or to be sold.
These financial assets represent those held to collect SPPI, and include: Trade and other receivables; Loans receivable
(those that do not include waiver clauses); Cash and cash equivalents (including cash in hand, deposits held at call with
banks).
Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment
losses.
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate
items (major components) of property, plant and equipment.
Any gain or loss on disposal of an item of property, plant and equipment (calculated as the difference between the net
proceeds from disposal and the carrying amount of the item) is recognised in profit or loss.
Subsequent expenditure is capitalised only when it is probable that the future economic benefits associated with the
expenditure will flow to the Group. Ongoing repairs and maintenance is expensed as incurred.
For plant and equipment, depreciation is based on the cost of an asset less its residual value. Significant components of
individual assets that have a useful life that is different from the remainder of those assets are depreciated separately.
14

Impairment allowances for Trade receivables
Impairment allowances for Loans receivable
- significant financial difficulty of the borrower;
- a breach of contract, such as a default or being more than 90 days past due;
- it is probable that the borrower will enter bankruptcy or other financial reorganisation.
Impairment allowances for Cash and cash equivalents
Balances held with “investment grade” counterparties a significant increase in credit risk is deemed not be present.
At Fair value through profit or loss (non-derivatives)
Accordingly, these balances are classified and measured subsequently as at fair value through profit or loss.
At Fair value through profit or loss (derivatives)
For those for which credit risk has increased significantly, lifetime expected credit losses along with the gross interest
income are recognised (“Stage 2”). The Group assumes that the credit risk on a financial asset has increased
significantly if it is more than 30 days past due.
For those that are determined to be credit impaired (in default), lifetime expected credit losses along with interest
income on a net basis are recognised (“Stage 3”). The Group considers a financial asset to be in default when the
financial asset is more than 90 days past due, as well as observable evidence with respect to:
When determining whether there has been a significant increase in credit risk since initial recognition of the financial
asset, and when estimating ECLs, the Group considers reasonable and supportable information that is relevant and
available without undue cost or effort.
This includes both qualitative and quantitative information and analysis, based on the Group’s historical experience and
informed credit assessment and includes forward looking information.
The gross carrying amount of Loans receivable is written off when the Group has no reasonable expectation of
recovering the balance in its entirety or a portion thereof.
- granting to the borrower a concession for economic or contractual reasons relating to the borrower’s financial
difficulty; that the Group would not consider otherwise; or
Are recognised based on the simplified approach within NZ IFRS 9 using a provision matrix in the determination of the
lifetime expected credit losses. On confirmation that the trade receivable will not be collectible, the gross carrying value
of the asset is written off against the associated impairment allowance.
Are recognised based on a forward-looking expected credit loss (“ECL”) model. The methodology used to determine the
amount of the allowance is based on whether there has been a significant increase in credit risk since initial recognition
of the financial asset.
For those where the credit risk has not increased significantly since initial recognition of the financial asset, twelve
month expected credit losses along with gross interest income are recognised (“Stage 1”).
These financial assets represent Loans receivable (that include waiver clauses). In applying the scope exemption in NZ
IFRS 17 Insurance Contracts to these contracts, such that they are accounted for as financial assets in their entirety,
the presence of the waiver clauses results in repayments not representing SPPI. Loans receivable includes loans on
which customers voluntarily elect to opt for additional Asset Waiver and/or Income Waiver products which are offered by
the Group.
Repayments of these loans are recognised as reductions in the carrying amount, with fair value gains or losses at each
reporting date recognised in profit or loss.
Derivatives financial assets represent “in the money” derivative contracts that are classified and measured subsequently
as at fair value through profit or loss, with fair value gains or losses at each reporting date recognised in profit or loss.
15

(ii) Financial liabilities - classification and subsequent measurement
At Amortised cost
Includes; Trade and other payables; Borrowings; Lease liabilities.
These financial liabilities are subsequently measured at amortised cost using the effective interest rate method.
At Fair value through profit or loss (derivatives)
(iii) Derecognition of financial assets and financial liabilities
Financial assets
Financial liabilities
The Group derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire.
(iv) Impairment of non-financial assets
On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration
paid (including any non-cash assets transferred or liabilities assumed) is recognised in profit or loss.
The carrying amounts of the Group’s non-financial assets, other than deferred tax assets and inventories, are reviewed
at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the
asset’s recoverable amount is estimated.
An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount.
Impairment losses directly reduce the carrying amount of assets and are recognised in profit or loss.
The estimated recoverable amount of non-financial assets is the greater of their fair value less costs to sell and value in
use. Value in use is determined by estimating future cash flows from the use and ultimate disposal of the asset and
discounting these to their present value using a pre-tax discount rate that reflects current market rates and the risks
specific to the asset. For an asset that does not generate largely independent cash inflows, the recoverable amount is
determined for the cash-generating unit to which the asset belongs.
Financial liabilities are classified as at fair value through profit or loss if it is held-for-trading, it is a derivative or it is
designated as such on initial recognition, otherwise the it is classified as At Amortised cost.
Derivatives financial liabilities represent “out of the money” derivative contracts that are classified and measured
subsequently as At Fair value through profit or loss, with fair value gains or losses at each reporting date recognised in
profit or loss.
The Group derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire,
or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and
rewards of ownership of the financial asset are transferred or in which the Group neither transfers nor retains
substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.
The Group also derecognises a financial liability when its terms are modified and the cash flows of the modified liability
are substantially different, in which case a new financial liability based on the modified terms is recognised at fair value.
A cash-generating unit is the smallest group of assets that generates cash inflows from continuing use that are largely
independent of the cash inflows of the other assets or groups of assets.
Impairment losses are reversed when there is a change in the estimate used to determine the recoverable amount and
there is an indication that the impairment loss has decreased or no longer exists. An impairment loss is reversed only to
the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net
of depreciation or amortisation, if no impairment loss had been recognised. All impairment losses are reversed through
profit or loss.
16

(j) Share capital
Ordinary shares
(k) Goods and services tax
With the exception of trade payables and receivables, all items are stated exclusive of Goods and Services Tax.
(l) Reserves
Amalgamation reserve
(m) Leases
• Leases of low value assets; and
• Leases with a duration of 12 months or less.
(i) Initial measurement
Other variable lease payments are expensed in the period to which they relate.
On initial recognition, the carrying value of the Lease liability also includes:
• amounts expected to be payable under any residual value guarantee;
• Lease payments made at or before commencement of the lease;
• Initial direct costs incurred; and
All leases in which the Group is a lessee are accounted for by recognising a Right-of-use asset and a Lease liability
except for:
Payments associated with all leases of low-value assets and short-term leases of equipment and vehicles are recognised
on a straight-line basis as an expense in profit or loss.
Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term, with
the discount rate determined by reference to the rate inherent in the lease unless (as is typically the case) this is not
readily determinable, in which case the Group’s incremental borrowing rate on commencement of the lease is used.
Variable lease payments are only included in the measurement of the lease liability if they depend on an index or rate,
however in such cases the initial present value determination assumes that the variable element will remain unchanged
throughout the lease term.
• the exercise price of any purchase option granted in favour of the Group if it is reasonable certain to assess that
• any penalties payable for terminating the lease, if the term of the lease has been estimated on the basis of termination
option being exercised.
Right-of-use assets are initially measured at the amount of the Lease liability, reduced for any lease incentives received,
and increased for:
• The amount of any provision recognised where the Group is contractually required to dismantle, remove or restore the
leased asset (typically make-good provisions on buildings).
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are
recognised as a deduction from equity, net of any tax effects.
The amalgamation reserve represents the difference between the fair value of consideration paid and the carrying amount
of net assets in a business combination where the acquirer and acquiree are controlled by the same (ultimate) party
(business combination under common control).
17

(ii) Subsequent measurement
(iii) Remeasurement
(iv) Modifications to lease agreements
Increases in scope:
Decreases in scope:
The right-of-use asset is adjusted by the same amount.
(n) Government grants
(o) Finance income and finance expenses
Interest income is recognised as it accrues in profit or loss, using the effective interest method.
Finance expenses comprise interest expense on borrowings.
Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are
recognised in profit or loss using the effective interest method.
When the Group renegotiates the contractual terms of a lease with the lessor, the accounting depends on the nature of
the modification:
• Both the carrying amount of the lease liability and right-of-use asset are reduced by the same proportion to reflect the
partial of full termination of the lease with any difference recognised in profit or loss.
The lease liability is then further adjusted to ensure its carrying amount reflects the amount of the renegotiated payments
over the renegotiated term, with the modified lease payments discounted at the rate applicable on the modification date.
• If the renegotiation results in one or more additional assets being leased for an amount commensurate with the stand-
alone price (i.e. market rate) for the additional rights-of-use obtained, the modification is accounted for as a separate
lease in accordance with the above policy.
• In all other cases (whether that is an extension to the lease term, or one or more additional assets being leased), the
lease liability is remeasured using the revised discount rate applicable on the modification date, with the right-of-use
asset being adjusted by the same amount.
Grants that compensate the Group for expenses incurred are recognised as income in profit or loss on a systematic
basis in the periods in which the associated expenses are recognised.
Right-of-use assets are amortised on a straight-line basis over the remaining term of the lease or over the remaining
economic life of the asset if, rarely, this is judged to be shorter than the lease term. Right-of-use assets are also subject to
impairment assessment at reporting date.
When the Group revises its determination of the use (or non-use) of renewal and/or termination options, the carrying
amount of the lease liability is adjusted to reflect the payments to make over the revised term, which are discounted at the
revised discount rate.
The carrying value of lease liabilities is similarly revised when the variable element of future lease payments dependent
on a rate or index is revised, however this is discounted at the original discount rate.
In both cases an equivalent adjustment is made to the carrying value of the right-of-use asset, with the revised carrying
amount being amortised over the remaining (revised) lease term.
For changes in lease payments as a result of COVID-19, the carrying value of lease liabilities is revised and discounted at
the original discount rate, with a corresponding adjustment to profit or loss (variable lease payment).
Subsequent to initial measurement Lease liabilities increase as a result of interest charged at a constant rate on the
balance outstanding and are reduced for lease payments made.
18

(p) Intangible assets
The estimated useful lives for the current and comparative periods are as follows:
- Trademarks 10 years
Amortisation methods and useful lives are reviewed at each reporting date and adjusted if appropriate.
(q) Cash and cash equivalents
Finite Intangible assets are amortised on a straight-line basis in profit or loss over their estimated useful lives, from the
date that they are available for use.
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand,
deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three
months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of
changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the
consolidated statement of financial position.
19

Notes to and Forming part of the Consolidated the Financial Statements
4. Revenue from Contracts with Customers
MAR 2022
MAR 2021
$'000$'000
Sale of cars56,653 58,105
Fair value gain/(loss) on revaluation8
132
Contractual income earned on loans at fair value through profit or loss762 610
Interest on bank accounts, short term deposits and investments463 144
Agent commissions received
- Interest agent commissions4,132
4,228
- Insurance agent commissions2,213
2,147
Total revenue from contracts with customers64,231 65,366
Timing of transfer of goods and services
Point of sale income64,204 65,222
Over time income27 144
Total Revenue64,231 65,366
5. Sundry Income
MAR 2022
MAR 2021
$'000$'000
Gain/(loss) on sale of property, plant and equipment6 (85)
Government grants received
1
351 599
Consideration for reassignment of leases
2
1,085 -
Other283 245
Total sundry income1,725 759
1
During the period the Group received government grants in the form of COVID-19 related Wage subsidies from the New Zealand
Government.
2
The Group received consideration from an external party for the assignment of two leased properties.
20

6. Segment reporting
Description of segments
Reportable segments have been identified as follows:
Operating Segments
As at 31 March 2022
Automotive RetailFinanceTotal
$'000$'000$'000$'000$'000
Revenue including interest63,381 1,185 2,547 (2,882) 64,231
Sundry Income1,681 16 28 - 1,725
Cost of sale(52,649) - (1,567) 2,536 (51,680)
Interest expense - finance- (90) - - (90)
Operating expense(7,208) (674) (2,690) 181 (10,391)
Operating profit5,205 437 (1,682) (165) 3,795
Dividend received- - 3,025 (3,025) -
Interest expense - trading(361) (441) - 203 (599)
Net profit before tax4,844 (4) 1,343 (2,987) 3,196
As at 31 March 2021Automotive RetailFinanceTotal
$'000$'000$'000$'000$'000
Revenue including interest64,709 1,004 723 (1,070) 65,366
Sundry Income806 - 1,435 (1,482) 759
Cost of sale(52,656) - (1,058) 2,026 (51,688)
Interest expense - finance(9) (586) 89 494 (12)
Operating expense(6,893) (397) (1,348) - (8,638)
Operating profit5,957 21 (159) (32) 5,787

Cost to list Company
(418) - (278) - (696)
Dividend received- -1,064 (1,064) -
Interest expense - trading(383) - (17) - (400)
Net profit before tax5,156 21 610 (1,096) 4,691
Management has determined the operating segments based on the components of the Group that engage in business activities,
which have discrete financial information available and whose operating results are regularly reviewed by the Group's chief
operating decision maker. The chief operating decision maker has been identified as the Board of Directors. The Board of
Directors makes decisions about how resources are allocated to the segments and assesses their performance. Geographically
the Group's business activities are located in New Zealand.
Inter-entity
transactions
Inter-entity
transactions
Other
Entities
Other
Entities
Ϯϭ

7. Determination of fair values
Carrying
Fair value
31 March 2022NoteAmount(level 3)
$'000$’000
Assets
Cash and cash equivalents123,790 3,790
Trade and other receivables154,865 4,865
Loans receivable - Amortised Cost143,456 3,673
Loans receivable - Fair Value through Profit or Loss143,442 3,442
Total15,553 15,770
Current Liabilities
Trade and Other Payables161,890 1,890
Borrowings2211,800 11,800
Derivative financial liabilities18414 414
Related Party Payable2510 10
Total14,114 14,114
CarryingFair value
31 March 2021NoteAmount(level 3)
$'000$’000
Assets
Cash and cash equivalents128,267 8,267
Trade and other receivables152,559 2,559
Loans receivable - Amortised Cost14829 876
Loans receivable - Fair Value through Profit or Loss142,998 2,998
Total14,653 14,700
Current Liabilities
Trade and Other Payables162,095 2,095
Borrowings228,420 8,420
Derivative financial liabilities1843 43
Related Party Payable2520 20
Total10,578 10,578
Borrowings relate to facilities that are repaid within a short timeframe.
Refer to Note 14 for fair value measurement information regarding Loans receivable.
Face value versus carrying amounts
The fair value of financial assets and liabilities, together with the carrying amounts shown in the Consolidated
Statement of Financial Position, are as follows.
The carrying amount of cash and cash equivalents, trade and other receivables and trade and other payables has been
determined to be a reasonable approximation of the fair value of the financial instrument given the short-term nature of these
financial instruments.
22

The sensitivity analysis of a reasonably possible change in one significant unobservable input, holding other inputs constant,
of level 3 financial instruments is provided below:
Significant unobservable inputsIncreasesDecreasesIncreasesDecreases
$’000$’000$’000$’000
Discount rate used
(+/- 5%)232 (208)167 (150)
Default provision used
(+/- 5%)178 (178)128 (128)
Waiver provision rate used
(+/- 5%)163 (163)117 (117)
8. Finance Expenses
NoteMAR 2022
MAR 2021
$'000$'000
Interest expense on financial liabilities measured at amortised cost(263)(166)
Interest expense on lease liabilities17(189)(234)
Other(237)(13)
Finance Expenses(689)(413)
9. Key operating expenses
Key operating expenses includes the following:
NoteMAR 2022MAR 2021
$'000
$'000
Audit fees(87)(60)
Depreciation - property, plant and equipment27(204)(304)
Depreciation - right-of-use assets17(1,574)(1,669)
Employee benefit expenses - excluding direct wages included in cost of sale
Wages and salaries, Including kiwisaver contributions(2,620)(2,854)
Expenses related to reassignment of leases(200)
-
10. Earnings Per Share
Basic earnings per share (EPS) is calculated by dividing the profit attributable to shareholders of the Group by the weighted average
number of ordinary shares on issue during the year, excluding shares held as treasury stock.
Diluted earnings per share assumes conversion of all dilutive potential ordinary shares in determining the denominator.
MAR 2022
MAR 2021
Numerator $'000
$'000
Profit for the period
2,594
3,199
Denominator
Weighted average number of shares
45,554,500
27,731,042
EPS basic
0.06
0.12
EPS Diluted
0.06
0.12
Other comprehensive
income (net of tax)
Profit or loss
Ϯ3

11. Dividends
MAR 2022
MAR 2021
$'000
$'000
Final Dividend
2,296 1,078
Interim Dividend
729 -
Total3,025
1,078
12. Cash and Cash Equivalents
Cash and cash equivalents in the Consolidated Statement of Financial Position comprise cash at bank and short term deposits
with an original maturity of three months or less which are subject to an insignificant risk of changes in value.
Held with
Credit RatingInterestInterestMAR 2022MAR 2021
Credit Rating31 Mar 202231 Mar 2021$'000
$'000
31 Mar 2022
Cash at BankASB Bank &AA- & A-10.11%0.11%3,790
8,267
Mitsui Bank
As cash and cash balances are held with counterparties with “investment grade” credit ratings, there is not deemed to be a significant
increase in credit risk associated with the Group’s Cash and cash equivalents balance. Credit rating is as per Standard & Poor.
Term deposits are presented as cash equivalents if they have a maturity of three months or less from the date of acquisition and are
repayable with 24 hours’ notice with no loss of interest. See note 3(q) for the group’s other accounting policies on cash and cash
equivalents.
13. Inventories
MAR 2022
MAR 2021
$'000
$'000
Gross stock on hand13,334 12,350
Inventory provision(326) (458)
Total inventories13,008 11,892
Ϯκ

14. Loans Receivable
Fair value through
Opening balance (1 Apr 2020)Amortised Cost
profit and loss Total
Gross carrying value463 1,148 1,611
Less: Impairment allowance (9) - (9)
Total Loans receivable454 1,148 1,602
Movements during the period
Advances of loans to customers 711 2,777 3,488
Repayments of loans by customers(431) (1,059) (1,490)
Movement in accrued interest86 - 86
Movement in Impairment Allowance(15) - (15)
Fair value gain/(loss) on revaluation- 132 132
Total Movements351 1,850 2,201
Closing balance (31 Mar 2021)
Current portion406 1,209 1,615
Non-current portion423 1,789 2,212
Less: Impairment allowance (24) - (24)
Total Loans receivable805 2,998 3,803
Fair value through
Opening balance (1 Apr 2021)Amortised Costprofit and loss Total
Gross carrying value829 2,998 3,827
Less: Impairment allowance (24) - (24)
Total Loans receivable805 2,998 3,803
Movements during the period
Advances of loans to customers 3,611 2,677 6,288
Repayments of loans by customers(1,273) (2,241) (3,514)
Movement in accrued interest288 - 288
Movement in Impairment Allowance(49) - (49)
Fair value gain/(loss) on revaluation- 8 8
Total Movements2,577 444 3,021
Gross carrying value3,455
3,442 6,897
Less: Impairment allowance (73) - (73)
Total Loans receivable3,382 3,442 6,824
Closing balance (31 March 2022)
Current portion1,343 1,684 3,027
Non-current portion2,112 1,758 3,870
Less: Impairment allowance (73) - (73)
Total Loans receivable3,382 3,442 6,824
The effective interest rate on Loans receivable at Amortised cost are 9.95% - 17.95%. (2021: 15.95% - 17.95%)
Loans Receivable measured at amortised cost (financial assets which represent solely payments of principal and interest) have
been impaired at 2% (2021: 2%), using the expected credit loss model.
Loans receivable measured at fair value (financial instruments that include waiver based clauses) are modelled at fair value and
include an effective default risk impairment rate of 2% (2021: 2%) which is factored into the inputs of the valuation.
The impairment rate used is higher than the current actual current rate of impairment, which stood at 0.05% at 31 March 2022 (31
March 2021: 0.11%). Consideration was made with reference to additional default risks that could be caused from the effects that
COVID-19 could have on borrowers ability to repay debt and was taken into account when determining the impairment rate.
Ϯρ

Gross financeNet finance
receivablereceivables
$'000$'000$'000
31 Mar 2022
Current2%6,528 (29) 6,499
Past due up to 30 days2%211 (8) 203
Past due 30 - 60 days2%56 (8) 48
Past due 60 - 90 days2%71 (18) 53
91 days and over2%31 (10) 21
in default0%- -
6,897 (73)6,824
31 Mar 2021
Current2%3,826 (24)3,802
Past due up to 30 days2%1
-
1
Past due 30 - 60 days - - -
Past due 60 - 90 days - - -
91 days and over - - -
in default - - -
3,827 (24)3,803
MAR 2022MAR 2021
$'000
$'000
Movement in the impairment provisions:
Specific impairment provision- -
Opening balance(24) (9)
Impairment Movement through profit or loss(49) (11)
Amounts written off- (4)
(73)(24)
15. Trade and other Receivables
MAR 2022
MAR 2021
$'000
$'000
Trade receivables461 215
Less: Impairment allowance(42)(17)
Net trade receivables419 198
Lease deposits and bonds320 217
Financial assets At Amortised cost739 415
Prepayments3,797 2,069
GST receivable
-
-
Other current assets329 75
Total trade and other receivables4,865 2,559
Trade receivables generally have terms of 30 days and are interest free. Trade receivables of a short-term duration are not discounted.
These financial assets are subsequently measured at amortised cost using the effective interest rate method, less impairment.
Expected
loss rate
Collective
impairment
provision
The following table details the risk profile of the Group’s provision matrix for loan receivables collectively assessed for impairment.
The provision disclosed relates to loans assured at amortised cost only. Provision on loans valued at fair value are included in the
fair value gain or loss.
Ϯς

16. Trade and other payables
MAR 2022
MAR 2021
$'000
$'000
Trade payables1,319 1,577
Financial liabilities At Amortised cost1,319 1,577
Contract liabilities207 228
GST payable
-
(153)
Other payables364 443
Total trade and other payables1,890 2,095
Trade payables generally have terms of 30 days and are interest free. Trade payable of a short-term duration are not discounted.
17. Leases
The Group leases a number of properties and equipment in the jurisdiction from which it operates.
(i) Right of use AssetsMAR 2022
MAR 2021
$'000
$'000
Opening Balance6,246 7,651
Additions and modifications4,958 560
Less:
Depreciation(1,574)(1,669)
Terminations(2,574)(296)
Closing Balance7,056 6,246
(ii) Lease Liabilities
Opening Balance6,603
7,883
Additions and modifications4,958 563
Interest189 234
Gain on changes to leases(154)17
Less:
Terminations(2,574)(278)
Repayments(1,645)(1,682)
COVID Relief(45)(120)
Effects of movements in exchange rates(15)(14)
Closing Balance7,317 6,603
Current portion1,484 1,600
Non-current portion5,833 5,003
Total lease liabilities7,317 6,603
27

(ii) Balance sheet and cash flow statementMAR 2022MAR 2021
$'000
$'000
Carrying amount of RoU asset (by asset class)
• Premises7,056
6,246
• Equipment-
-
Total cash outflow related to leases (principal repayments)(1,645)(1,682)
Total cash outflow related to leases (interest)(189)(234)
(i) Variable lease payments
(ii) Lease term – use of renewal and termination options
(i) Amounts recognised in the financial statements
(ii) Short-term lease expense (excluding leases of 1 month or less)
18. Derivative financial instruments
19. Employee benefit liabilities
MAR 2022
MAR 2021
$'000
$'000
Liability for annual leave730 613
Wages payables203 258
Total933 871
As standard industry practice, several of the Groups property leases are subject to periodic CPI increases and/or market rent
reviews. A 1% increase in these payments would result in an additional $16,510 (2021: $8,453) cash outflow compared to the
current period’s cash outflow. (2021: 1%)
The Group’s property leases typically include renewal and termination options. The Group must assess whether it reasonably
expects (or not) to exercise these when determining the lease term.
As at 31 March 2022, there is no leases where the group has assessed it does not reasonably expect to exercise all available
renewal options, resulting in potential future lease payments not currently being included in the lease liability recognised for these
leases:
These are all leases that exclude 1 month or less in duration, which management have assessed do not qualify as a lease under
NZ IFRS16 leases and have not been capitalised as a result.
Forward contracts were taken out during the year to provide cover for risks that could potentially arise from foreign currency
fluctuations in the buying & selling of inventories. If the contracts are realised at fair market value at balance date, this would
result in a foreign exchange loss on derivatives of $414k as at 31 March 2022 (31 March 2021: Foreign exchange gain of $43k).
28

20. Income tax
(a) Income tax recognised in profit or loss and other comprehensive incomeMAR 2022MAR 2021
$'000
$'000
Income tax recognised in profit or loss
Current tax558 1,541
Deferred tax44 (49)
Total income tax expense602 1,492
(b) Reconciliation of income tax expense
MAR 2022
MAR 2021
Income tax recognised in profit or loss$'000
$'000
Profit before income tax expense3,196 4,691
Tax expense at the domestic tax rate (28%)895 1,313
Permanent differences(278)284
Timing differences(43)49
Intergroup eliminations21 (168)
Effects of tax rate in foreign jurisdictions7 14
Income tax expense602 1,492
(c) Deferred tax
MAR 2022
MAR 2021
Income tax recognised in profit or loss$'000
$'000
Balance at the beginning of the period477 428
Current period movement(44)49
Deferred tax asset433 477
Made Up Of:
Deferred tax asset2,399 2,230
Deferred tax liability(1,966)(1,753)
Net balance as per above433 477
Deferred tax assets are attributable to the following:
Inventory provision91 127
Employee benefits179 160
Doubtful debt32 13
Others7 12
Contract liabilities51 64
Lease liabilities2,039 1,854
Right-of-use asset(1,966)(1,753)
Total433 477
21. Imputation Credits
MAR 2022
MAR 2021
$'000
$'000
Imputation credits at 1 April(3,461)
(2,091)
New Zealand Tax payments, net of refunds(1,310) (1,788)
Imputation credits attached to dividends received
-
(559)
Imputation credits attached to dividends paid1,176 977
(3,595) (3,461)
The imputation credits are available to shareholders of the group:
- Through the company
- Through subsidiaries
29

22. Borrowings
MAR 2022
MAR 2021
$'000
$'000
Motor Vehicle Finance Credit Facility3,800 420
Retail Trade Finance Facility8,000 8,000
Total Trade finance facility11,800 8,420
The loan facilities are up for review and expire on 31 December 2022.
All covenants on facilities were met throughout the year.
23. Share capital
MAR 2022
MAR 2021
Number of Ordinary Shares
Opening balance45,554,500 15,000,000
Shares issued capital raise
-
3,509,500
Shares issued staff incentives
-
45,000
Shares issued buy back of non controlling interest
-
413,358
Shares issued conversion shareholder loans to shares
-
14,012,144
Share split
-
12,574,498
Total issued and authorised capital45,554,500 45,554,500
Dollar value of Ordinary SharesMAR 2022MAR 2021
$'000
$'000
Opening balance39,344 15,442
Shares issued capital raise
-
3,510
Cost of capital raise
-
(243)
Share Option Scheme21 -
Shares issued staff incentives
-
45
Shares issued buy back of non controlling interest
-
590
Shares issued conversion shareholder loans to shares
-
20,000
Share split
-
-
Total issued and authorised capital39,365 39,344
All issued shares are fully paid and have no par value. The holders of ordinary shares are entitled to receive dividends as
declared from time to time and are entitled to one vote per share at meetings of the Group and rank equally with regard to the
Group’s residual assets.
30

24. Share-based payment arrangements
Refer accounting Policy in Note 3 (f)
This Programme is active as at 31 March 2022.
Tranche
Average ESOP ValueVesting DateContractual life
Tranche 10.31 1 October 2021175,000 30 September 20243 years
Tranche 20.13 1 October 2021150,000 30 September 20243 years
Tranche 30.62 1 October 202194,230 30 September 20243 years
419,230
The Vesting Conditions are linked to Profitability, Share price and Liquidity in publicly traded shares of NZ Automotive investments.
The Fair Value of the options was determined using a Monte Carlo option pricing model.
25. Related parties
Identity of related parties
The group has a related party relationship with its key management personnel being the Directors and Executive Officers.
Key management personnel
MAR 2022
MAR 2021
$'000
$'000
Short-term employee benefits1,496 1,076
Defined contribution plans45 30
Total key management personnel remuneration1,541 1,106
Transactions with related parties
MAR 2022MAR 2021MAR 2022MAR 2021
$'000
$'000
$'000
$'000
Eugene Williams10 10
-
10
Yusuke Sena
-
10 10 10
10 20 10 20
Balance outstanding at
balance date
Transactions for the period
Each option entitles the holder to subscribe for one ordinary share in the group, for nil consideration, in the event that certain
performance hurdles are met and they remain employed by the Company at the end of the performance period
Key management personnel represent the Board of Directors, and the Senior Leadership team including the Managing Directors,
Chief Executive Officer and Chief Financial Officer.
Grant DateNumber of Instruments
The significant inputs in the model were share price at grant date of $0.83, Annual Volatility of 41.6% and an annual
Risk free rate of 1.52%.
On 1 October 2021 the group established a share option programme that entitles key management personnel to purchase shares
in the group. Under this programme holders of vested options are entitled to purchase shares at a pre-determined rate at the
grant date. The programme is limited to select key management personnel approved by the board.
3ϭ

26. Financial instruments - risk management
Through its operations, the Group is exposed to the following financial risks:
(a) Credit risk
(b) Market risk
(c) Liquidity risk
(d) Currency risk
(a) Credit risk
Credit risk is the risk of financial loss to the Group if a counterparty to a financial asset fails to meet their contractual obligations.
The Group’s exposure to credit risk is represented by the carrying amount of cash and cash equivalents and investments.
The Group only holds cash and cash equivalents and investments with financial institutions that are independently determined credit
ratings of “A” or higher.
The Group has an Audit & Risk Committee that monitors credit risk as part of its wider duties.
Cash and cash equivalents held with financial institutions are presented in the table below:
31 March 2022
Credit rating * Cash and cash InvestmentsTotal
equivalents
$’000$’000$’000
ASB BankAA-3,705 - 3,705
Mitsui BankA-185 - 85
3,790
-
3,790
31 March 2021Credit rating * Cash and cash InvestmentsTotal
equivalents
$’000$’000$’000
ASB BankAA-7,959 - 7,959
Mitsui BankA-1308 - 308
8,267
-
8,267
* Standard & Poor’s
Interest rates on interest bearing cash and cash equivalents and investments range between 0.11% - 0.86% (2021: 0.11% - 0.20%).
(b) Market risk
Market risk arises from the Group’s:
- Use of interest-bearing borrowings (interest rate risk); and
- Purchases in foreign currencies (foreign currency exchange risk).
i. Interest rate risk
The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly affecting the Groups
competitiveness and flexibility. Further details regarding these policies as they relate to the specific financial risks that the Group
is exposed to are set out below.
The Board has overall responsibility for the determination of the Group’s risk management objectives and policies and, whilst
retaining ultimate responsibility for them, it has delegated the authority for designing and operating processes that ensure the
effective implementation of the objectives and policies to the Group’s finance function. The Board receives monthly reports from
the Chief Financial Officer through which it reviews the effectiveness of the processes put in place and the appropriateness of the
objectives and policies it sets. The Group’s internal finance team also review the risk management policies and processes and
report their findings to the Audit Committee.
The Group is exposed to fair value interest rate risk from its fixed / variable rate borrowing and lease liabilities, with rates between
3.3% - 3.75% (2021: 3.3%).
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates.
3Ϯ

ii. Foreign currency exchange risk
There are open forward exchange contracts of $6.3m at the end of the reporting period (2021: $6.4m).
The net foreign exchange loss recognised for the year was $0.79m (2021: $0.97m loss).
(c) Liquidity risk
The following table sets out the contractual maturities (representing undiscounted contractual cash-flows) of financial liabilities:
Up to
Between 3Between 1Between 2Over 5 yearsTotal
As at 31 March 20223 months and 12 monthsand 2 yearsand 5 years$’000$’000
$’000$’000$’000$’000
Trade and other payables1,809 26 48 7 - 1,890
Borrowings11,800 - - - - 11,800
Lease liabilities380 1,104 1,409 2,620 1,804 7,317
Total13,989 1,130 1,457 2,627 1,804 21,007
Up toBetween 3Between 1Between 2Over 5 yearsTotal
As at 31 March 20213 months and 12 monthsand 2 yearsand 5 years$’000$’000
$’000$’000$’000$’000
Trade and other payables2,003 92 - - - 2,095
Borrowings8,000 420 - - - 8,420
Lease liabilities408 1,191 1,362 3,642 - 6,603
Total10,411 1,703 1,362 3,642 - 17,118
(d) Currency risk
The Group is exposed to currency risk arising from Japanese Yen (‘JPY’).
Currency risk arises from the future transactions, recognised assets and liabilities, and investments.
The
Board receives monthly financial statements which include statements of financial position, performance and cash flows, as
well as budge/forecast variance reports, to ensure it holds or will hold cash equivalents to meet its obligations.
During the current reporting period the Group has purchased used cars with purchase prices denominated in foreign currencies
(YEN).
Liquidity risk arises from the Group’s management of working capital. It is the risk that the Group will encounter difficulty in
meeting its financial obligations as they fall due.
The Group’s policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when they become due. To
achieve this the Group maintains a monthly forecast on its future cash position to ensure it can meet financial obligations when
they fall due.
To mitigate foreign exchange risk on significant purchases, the Group enters into forward exchange contracts to match the timing
and amount of payments due. Derivatives are initially recognised at fair value on the date a derivative contract is entered into, and
they are subsequently remeasured to their fair value at the end of each reporting period.
The Group does not apply hedge accounting to these transactions, and they are classified as held for trading for accounting
purposes and are accounted for at fair value through profit or loss. They are presented as current assets or liabilities to the extent
they are expected to be settled within 12 months after the end of the reporting period. They are considered level 2 fair value
measurements being based on the present value of future cash flows based on the forward exchange rates at the reporting date.
The Group currently does not have any sales transactions denominated in foreign currencies, however the Group has purchases
transactions denominated in foreign currencies.
33

27. Property, plant and equipment
Leasehold
MotorFurniture andComputerWorkshopTotal
improvementsvehiclesfittingsequipmentequipment
Cost$’000$’000$’000$’000$’000$’000
Balance at 1 April 2021
706            349            602            519            62 2,238
Additions213            255 70 68 50 656
Disposals
(408)(11)(28)(9)-(456)
Balance at 31 March 2022511 593 644 578 112 2,438
Accumulated depreciation
Balance at 1 April 2021
(212)(181)(273)(382)(14)(1,062)
Depreciation
(42)(66)(35)(51)(10)(204)
Disposals
139 4 11 4 -158
Effect of exchange rate
-
5 - -
-
5
Balance at 31 March 2022(115)(238)(297)(429)(24)(1,103)
Net Book Value
As at 31 March 2022396 355 347 149 88 1,335
The Group has reviewed each items of property, plant and equipment and no impairment charge was recognised for the year ended
31 March 2022 (March 2021: Nil).
LeaseholdMotorFurniture andComputerWorkshopTotal
improvementsvehiclesfittingsequipmentequipment
Cost$’000$’000$’000$’000$’000$’000
Balance at 1 April 2020
724            319 655 497 49 2,244
Additions24 61 16 43 32 176
Disposals(42)(31)(69)(21)(19)(182)
Balance at 31 March 2021706 349 602 519 62 2,238
Accumulated depreciation
Balance at 1 April 2020(172)(90)(246)(309)(9)(826)
Depreciation(52)(92)(60)(91)(9)(304)
Disposals12 7 33 18 4 74
Effect of exchange rate
-
(6) - - - (6)
Balance at 31 March 2021(212)(181)(273)(382)(14)(1,062)
Net Book Value
As at 31 March 2021494 168 329 137 48 1,176
Depreciation Methodology
As per Note 2(f) the group has changed its method for recognising depreciation from Diminishing value to Straight line.
This has had the following impact on the depreciation expense both in the current financial period and future periods:
Financial year ending:Increase / (Decrease) in Depreciation expense
31 March 2022(74,721)
31 March 2023(17,640)
31 March 202418,540
34

28. Notes supporting statement of cash flows
Reconciliation of Profit after tax with Net Cash Flow from Operating Activities
MAR 2022
MAR 2021
$'000
$'000
Net Profit for the year2,594 3,199
Non-cash / Non-operating items:
Depreciation of property, plant and equipment1,779 1,973
Amortisation of intangible fixed assets -
Loss/(gain) on sale of property, plant and equipment(6)85
Foreign exchange(90)(235)
Income tax expense602 1,492
Finance expense277 235
Impairment of related parties
-
47
2,562 3,597
Movements in working capital:
(Increase)/decrease in trade and other receivables(3,669)(2,181)
Increase/(decrease) in trade and other payables(1,298)(413)
(Increase)/decrease in Inventory(1,116)3,355
(6,083)761
Cash generated from operations(927)7,557
Income taxes paid(1,570)(1,638)
Net cash flows from operating activities(2,497)5,919
29. Contingent liabilities
ASB Bank Limited has given a guarantee to the landlord on behalf of the Group to secure premises.
The maximum guarantee is for $1,643,000 (March 2021: $541,145).
30. Subsequent events
No significant events have occurred subsequent to balance date. (2021: None)
35

Grant Thornton New Zealand Audit
Limited
L4, Grant Thornton House
152 Fanshawe Street
P O Box 1961
Auckland 1140

T +64 9 308 2570
F +64 9 309 4892
www.grantthornton.co.nz

Chartered Accountants and Business Advisers
Member of Grant Thornton International Ltd

To the Shareholders of NZ Automotive Investments Limited
Report on the Audit of the Consolidated Financial Statements
Opinion
We have audited the consolidated financial statements of NZ Automotive Investments Limited (the “Company”)
and its subsidiaries (the “Group”) on pages 4 to 35 which comprise the consolidated statement of financial
position as at 31 March 2022, and the consolidated statement of profit or loss and other comprehensive income,
consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended,
and notes to the financial statements, including a summary of significant accounting policies
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the
financial position of the Group as at 31 March 2022 and its consolidated financial performance and consolidated
cash flows for the year then ended in accordance with New Zealand Equivalents to International Financial
Reporting Standards (“NZ IFRS”) issued by the New Zealand Accounting Standards Board.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (“ISAs (NZ)”)
issued by the New Zealand Auditing and Assurance Standards Board. Our responsibilities under those standards
are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
section of our report. We are independent of the Group in accordance with Professional and Ethical Standard 1
International Code of Ethics for Assurance Practitioners (including International Independence Standards) (New
Zealand) issued by the New Zealand Auditing and Assurance Standards Board and the International Ethics
Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including
International Independence Standards) (IESBA Code, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion.
Other than in our capacity as auditor we have no relationship with, or interests in, the Group.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the consolidated financial statements of the current period. These matters were addressed in the context of our
audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.

Independent Auditor’s Report

Why the audit matter is significant How our audit addressed the key audit matter
Revenue recognition – NZ Automotive
Investments Ltd and Group
The Group has recognised revenue of $64m (FY
2021: $ 65m) (Note 4). NZAI Group’s net sales
comprises revenue from the sale of cars,
insurance agent commissions and interest agent
commissions.
Revenue is recognised when the control
associated with a good or service (or in aggregate
thereof) representing a distinct performance
obligation is transferred from the Group to the
customer.
There are a number of factors that could affect
this reported amount, including the risk for
revenue recognition policies being incorrectly
applied or recognised in an incorrect period. This
presents a key audit matter due to the financial
significance and nature of net sales in the financial
statements.
To address the risk associated with revenue recognition,
the following audit procedures were carried out:
• Evaluated the design and operational
effectiveness of management's internal controls
related to revenue recognition.
• Reviewed revenue recognition policies for
appropriateness and compliance with relevant
accounting standards.
• Performed analytical procedures by projecting
the revenue listing by the model of the cars in a
scatter diagram and identifying outliers.
• Selected a sample of transactions and inspected
supporting documentation, cash received and
assessed whether all criteria related to revenue
recognition has been met before being
recognised as revenue.
• Performed revenue cut off procedures by
selecting a sample of revenue samples before
and after year end and testing whether cut off on
revenue was accurate.
Valuation of loan receivables with waiver
clauses – NZ Motor Finance Limited

The Group has early adopted NZ IFRS 17
Insurance Contracts and applied the scope
exemption allowing them to measure the loan
receivables that include waiver clauses as
financial assets in their entirety at fair value
through profit or loss. Repayments of the loans
are recognised as reductions in carrying amount,
with any fair value gains or losses at each
reporting date recognised in profit or loss.
The determination of the fair value for loan
receivables with waiver clauses requires
management judgment and continuous
monitoring.
To address the risk associated with the valuation of the
waiver loan receivables at fair value through profit or loss,
the following audit procedures were carried out:
• Evaluated the design and operational
effectiveness of key controls related to valuation
of loan receivables, independent model
validation and approval.
• Reviewed the loan receivables measurements
policies for appropriateness and compliance with
relevant accounting standards and adequate
disclosures in the financial statements.
• Performed a review of the model prepared by
management’s expert to measure the loan
receivables at fair value by assessing it for
completeness and accuracy, reviewing the
underlying key assumptions (including discount
rate, default provision rate, asset and income
waiver provision, etc) used by management. We
challenged the assumptions used for
reasonability and appropriateness, comparing
these to market benchmarks, with no evidence
of management bias identified from our
procedures.
Loan receivables have been classified into those
with waiver clauses and those without. The Group
has recognised loan receivables with waiver
clauses at fair value through profit of loss at $ 3.4m
(FY 2021: $ 3.0m) (Note 14). There was a fair
value gain on revaluation recognised through
profit or loss of $ 8k (FY 2021: $ 132k) (Note 4
and 14). Accounting policies relevant to loan
receivables have been disclosed under Note 3(d),
3(i), 7 and 14.

Information Other than the Consolidated Financial Statements and Auditor’s Report thereon
The Directors are responsible for the annual information. The other information comprises the annual report. The
annual report is expected to be made available after the date of this auditor’s report. Our opinion on the
consolidated financial statements does not cover the other information and we do not and will not express any
form of audit opinion or assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other
information identified above when it becomes available and, in doing so, consider whether the other information
is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or
otherwise appears to be materially misstated.
When we read the annual report, if we conclude that there is a material misstatement therein, we are required to
report that fact.
Directors’ responsibilities for the Consolidated Financial Statements
The Directors are responsible on behalf of the Group for the preparation and fair presentation of the consolidated
financial statements in accordance with NZ IFRS, and for such internal control as the Directors determine is
necessary to enable the preparation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the directors are responsible on behalf of the Group for
assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group
or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit
conducted in accordance with ISAs (NZ) will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated
financial statements.
A further description of the auditor’s responsibilities for the audit of the consolidated financial statements is
located on the External Reporting Board’s website at: https://www.xrb.govt.nz/assurance-standards/auditors-
responsibilities/audit-report-1/
Restriction on use of our report
This report is made solely to the Company’s shareholders, as a body. Our audit work has been undertaken so
that we might state to the Company’s shareholders, as a body those matters which we are required to state to
them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Company and the Company’s shareholders, as a body, for our
audit work, for this report or for the opinion we have formed.
Grant Thornton New Zealand Audit Limited

VJ Black
Partner
Auckland
29 May 2022

NZ AUTOMOTIVE INVESTMENTS LIMITED
Company Directory
Nature of Business
Used automotive vehicle retailer and motor vehicle finance provider
Registered Office
Head Office
102 Mays Road
Onehunga
Auckland 1061
Directors
Charles Bolt (Interim Chair)
Karl Smith (Chair - Resigned 22 April 2022)
Eugene Williams
Yusuke Sena
Michele Margaret Kernahan (Resigned 8 April 2022)
Tracy Rowsell
Tim Cook (Appointed 22 April 2022)
Bankers
ASB Bank
Solicitors
Lowndes Jordan
Advisors
BDO Auckland
Independent Auditors
Grant Thornton New Zealand Limited, Auckland Office
Share Register
Computershare
BDO Auckland
Level 4, 4 Graham Street
Auckland, 1010 , New Zealand
39

---

Distribution Notice

Please note: all cash amounts in this form should be provided to 8 decimal places

Section 1: Issuer information
Name of issuer NZ Automotive Investments Limited
Financial product name/description Ordinary Shares
NZX ticker code NZA
ISIN (If unknown, check on NZX
website)
NZNZAE0001S5
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year X Quarterly
Half Year Special
DRP applies
Record date 15/06/2022
Ex-Date (one business day before the
Record Date)
14/06/2022
Payment date (and allotment date for
DRP)
24/06/2022
Total monies associated with the
distribution
1

$286,993.35000000
Source of distribution (for example,
retained earnings)
Retained Earnings
Currency New Zealand Dollar
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.00875000
Total cash distribution
3
$0.00630000
Excluded amount (applicable to listed
PIEs)
N/A
Supplementary distribution amount $0.00000000
Section 3: Imputation credits and Resident Withholding Tax
4

Is the distribution imputed Fully imputed
If fully or partially imputed, please
state imputation rate as % applied
5

28%
Imputation tax credits per financial
product
$0.00245000

1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
4
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.
5
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.

Resident Withholding Tax per
financial product
$0.00043750
Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
David Page, CEO
Contact person for this
announcement
Haydn Marks, CFO
Contact phone number 0212211040
Contact email address haydnmarks@nzautomotiveinvestments.co.nz
Date of release through MAP 29/05/2022

---

Results announcement

Results for announcement to the market
Name of issuer NZ Automotive Investments Limited
Reporting Period 12 months to 31 March 2022
Previous Reporting Period 12 months to 31 March 2021
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$64,231 -1.7%
Total Revenue $65,956 -0.3%
Net profit/(loss) from
continuing operations
$2,594 -18.9%
Total net profit/(loss) $2,504 -19.6%
Interim Dividend
Amount per Quoted Equity
Security
$0.00630000
Imputed amount per Quoted
Equity Security
$0.00245000
Record Date 15/06/2022
Dividend Payment Date 24/06/2022
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.32 $0.33
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood

Authority for this announcement
Name of person

authorised
to make this announcement
David Page, CEO
Contact person for this
announcement
Haydn Marks, CFO
Contact phone number 0212211040
Contact email address haydnmarks@nzautomotiveinvestments.co.nz
Date of release through MAP

29/05/2022

Unaudited financial statements accompany this announcement.

NZ Automotive to announce full year results for FY22 Dividend payment date change due to public holiday

Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.

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