Turners delivers robust returns despite challenging market

Company Announcement
22 November 2022



1
Turners delivers robust returns, despite challenging market

Key HY23 Financial Metrics (% v HY22):
 Revenue $185.3m (+11%)
 EBIT increased 2% to $26.1m
 NPBT $23.4m (+1%)
 NPAT $17.1m (+1%)
 Earnings per share 19.8 cps (+1%)
 Q2 dividend declared at 5.0 cps

Highlights
 Record net profit before tax of $23.4m for HY23 slightly ahead of HY22 ($23.2m NPBT).
 Auto retail and Insurance divisions grew operating profit.
 Auto retail market share increased from 6.4% at HY22 to 8.2% year on year.
 Car units sold increased through scaling up local sourcing, during a period in which the NZ used
car market was down 7.5%, which offset reduced industry margins.
 Interest rate environment impacting Finance net interest margin as expected.
 Finance arrears performing significantly better than market levels, and well provisioned for
any increase in arrears
 Earnings diversification and resilience of business demonstrated in a challenging economic
and operating environment. Q1 impacted by Omicron, both in customer demand and staff
impact.
 Record levels for both employee engagement and customer experience metrics. Employee
share scheme well received and aligns with shareholders value creation.
 Based on our experience in the first half and early trading in H2 we expect FY23 NPBT to be at
or slightly above last year’s record result, with a projected FY23 dividend of 0.23 cps,
consistent with last year, representing a gross yield of 8.9% per annum (based on a $3.60 share
price).

Turners Automotive Group (NZX/ASX: TRA) delivered strong earnings in the six months to September 30
2022 (HY23) successfully navigating Omicron disruption and tightening economic conditions, including
rising inflation and interest rates, which impacted consumer spending and finance margins. The healthy
result reflects the inherent diversification of the business and strengthened positions of each core
market segment over recent years, providing greater resilience through the cycle.

Todd Hunter, CEO, said: “In a market where used car sales were down 7.5%, Turners grew market share
and achieved higher sales year on year, a credit to our auto retail network expansion, our award-winning
advertising and retail optimization strategy. To be able to maintain healthy returns to shareholders
during a difficult period is a tribute to our dedicated and highly engaged team, which once again
outperformed. The robustness of our diversified business has been demonstrated despite the industry
headwinds which we expect will continue into the second half of the year.”

Company Announcement
22 November 2022



2
Financial results
Reported NPBT, which is the basis for Turners’ full year guidance, increased 1% year on year to $23.4m
with net profit after tax (NPAT) at $17.1m, up 1%. Earnings per share for HY23 were 19.8 cps, up 1% on
the previous year. The Board declared a Q1 dividend of 5.0 cps, and a further 5.0cps has been declared
for Q2, taking HY23 dividends to 10.0 cps. This reflects the dividend policy to pay-out 60-70% of net profit
after tax (NPAT).
Grant Baker, Chairman, commented: “Considering the disruption of Omicron, during which up to 25%
of our operational staff were impacted, and the headwinds of higher interest rates and households
under an economic squeeze, we are encouraged with the results achieved in our first half. Turners
Automotive Group has become a sustainable, high-performing business.
“Undoubtedly, we will face tough economic conditions in the second half, but our geographic and
earnings diversification continue to provide resilience through the cycle. Car sales have held up well so
far in Q3, and margins are starting to improve. Our loan book is stable, although rising interest rates
will continue to put pressure on cost of funds. Claims in our Insurance business continue to track below
expectations. We are demonstrating that we can win market share and deliver growth through the
down cycle due to the success of our strategy, the quality of our portfolio and our incredible team. We
see opportunities during this time of adversity”

Divisional results
Refer to Appendix.

Turners’ strategy proves its worth
Our investment over recent years to diversify our business, as well as taking a leadership position in each
segment, continues to deliver results, and provide resilience in the face of tough conditions:

 Auto Retail: market share gains through brand promotion and retail optimization initiatives. In
particular, Speed to Sale operational initiatives led to more sales on lower inventory. Damaged
unit sales were up 13% year on year.

 Finance: our continued focus on targeting high-quality borrowers again saw more than 50% of
new lending in the premium risk business. Interest expense was up 106% to $5.6m resulting in
an expected compression in net interest margins. Arrears are stable.

 Insurance: we made market share gains and claims ratios continued to improve. We have
almost completed our core system replacement programme, which will further improve
operational agility and future performance.

 Credit Management: continues to face tough conditions, but we are well placed for a pick up
in activity in this space with debt load continuing to increase. We are making good progress in
our transition to more customer focused collection practices (resolution not consequences).

Company Announcement
22 November 2022



3
Award-winning Marketing

Gains in market share have been supported by our “Tina from Turners” brand campaign. In September
2022, Turners claimed the top award at the 2022 New Zealand Marketing Awards. Up against high calibre
competition Turners took home the Supreme Award, as well as Excellence in Brand Transformation
Strategy and Excellence in Consumer Products & Services Strategy. This was followed up in October with
two “gold” awards at the Advertising Effectiveness “Effie” Awards for Best Strategic Thinking and
Retail/Etail categories. The judges clearly love Tina as much as our customers do.

Update, Outlook and Guidance

Q3 Update: While we know economic headwinds will continue into the second half with interest rates
continuing to rise at unprecedented speed and consumer confidence impacted, we are well-placed to
continue to compete effectively in difficult market conditions:

o Auto retail: Car sales holding up well, margins improving, new site contribution
o Finance: Increasing impact of interest rate environment. Expecting some deterioration
in arrears Loan book stable.
o Insurance: Claims continue to track below expectations, and investment returns
improving
o Credit: Debt load recovering, but more slowly than expected.

FY23 guidance: We expect the Auto retail business to continue to grow strongly from our execution of
our retail optimisation strategy, however the impact of the interest rate environment will be more
pronounced in H2 FY23 and FY24.

Based on our experience in the first half and early trading in H2 we expect FY23 NPBT to be at or
slightly above last year’s record result. We anticipate full year fully imputed dividends of 23 cents per
share (FY22 23 cps) based on the current dividend payout policy of 60-70% of NPAT.


ENDS

About Turners

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

For further information, please contact:

Todd Hunter, Chief Executive Officer, Turners Automotive Group Limited, Mob: 021 722 818

Company Announcement
22 November 2022



4
Appendix: Divisional results

Auto Retail: Revenue $129.6m +13%, Segment Profit $11.1m +8%

 Revenue grew by 13% to $130m, reflecting market share growth, despite a 7.5% reduction in
used car market transactions from April to September, 2022. Registered dealers are at their
lowest level for almost nine years as government regulation and higher interest rates impact
the viability of smaller operators.

 Turners continue to outperform with total owned units sold in HY23 up 11% over HY22, even
though our overall margin on cars we own was down 9% for the period. Retail unit sales were
up 7% to around 9,500, and wholesale auction unit sales were up 42% to around 9,500 units.

 Gains in market share have been greatly supported by our Tina brand campaign, as mentioned
above. Meanwhile, Nelson and Rotorua auto retail centres are now both fully operational and
performing above expectations. These rapid results further validate the success of our
geographic expansion model. Expansion in Timaru, Napier and Tauranga in pipeline for FY24.
The business is operating off lower inventory levels with faster stock turn and is repositioning
type of stock to smaller and cheaper, anticipating future trends in a tighter market.

Finance: Revenue $29.2m +16%, Segment Profit $9.1m -9%

 Finance had another strong six months, despite rapid interest rate rises which pressured
margins. Revenue for HY23 was $29.2m, up 16% on last year. NPBT was down 9% to $9.1m,
nonetheless a creditable result considering market conditions.

 A focus on pricing and margin has been critical in dealing with the speed of interest rate rises.
Growth has moderated as quality and margin become higher priorities. Controlled lending
through our own Turners and Direct channels was up 13% in HY23 to $34m. Pleasingly Premium
Tier business accounts for more than 50% of our new business each month.

 Credit policy has been tightened incrementally throughout HY23. Hardships are down more
than 90% from their FY22 peak.

Insurance: Revenue $21.6m +4%, Segment Profit $6.3m +8%

 Market share gains continued to underpin policy sales despite challenging market conditions.
NPBT was up 8% to $6.3m on the back of revenue gains to $21.6m, up 4% on the same period
last year. Operating cost ratio was steady between 20%-21%.

 Distribution arrangements are continuing to work well, including further digital enhancements.
Claims costs remain steady with procurement remaining a key strength and offsetting parts
inflation and labour rate increase.

Company Announcement
22 November 2022



5

 We have reaffirmed AM Best credit rating for Insurance and Financial Strength rating at B ++
(Good).

Credit Management: Revenue $4.9m -14%, Segment Profit $1.4m -32%

 Revenue decreased 14% to $4.9m, as COVID-19 continued to impact our collections results, this
time Omicron waves rather than lockdowns. Debt load is up 3% for HY23 to $63.4m, as market
wide credit metrics start to deteriorate. Debt value collected was down 8% to $18.7m as cost
of living pressures impacted consumers’ ability to address outstanding debts.

 Our “Promises to Pay” kept rate has remained stable at 76%.

 We are continuing to transition to a digital-based business, as well as transforming our
collections approach to be more customer-focused, centered on resolution rather than
consequence.


ENDS

---

HY23
Results
Presentation
For the sixmonthsending
30 September 2022

Disclaimer
Turners Automotive Group the (company) is solely responsible for the content of this document. This document is not an investment
statement or prospectus and does not constitute an offer of securities.
This document or any other written or oral statements made by, or on behalf of, the company may include forward-looking statements that
reflect the company’s current views with respect to future events and financial performance. These forward-looking statements are subject to
uncertainties and other factors that could cause actual results to differ materially from such statements. These uncertainties and other factors
include, but are not limited to:
I. Uncertainties relating to government and regulatory policies;
II. The occurrence of catastrophic events with a frequency or severity exceeding our estimates;
III. The legal environment;
IV. Loss of services of any of the company’s officers;
V. General economic conditions; and
VI. The competitive environment in which the company, its subsidiaries and its customers operate; and other risks inherent inthe company’s
industry
The words “believe,” “anticipate,” “investment,” “plan,” “estimate,” “expect,” “intend,” “will likely result,” or “will continue” and other
similar expressions identify forward-looking statements. Recipients of this document are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of their dates. The company undertakes no obligation to update or revise any forwardlooking
statements, whether as a result of new information, future events or otherwise.
2• HY23 RESULTS PRESENTATION

Agenda
1.Overview of HY23
2.HY23 Results
3.Segment results
4.Outlook
3• HY23 RESULTS PRESENTATION

4• HY23 RESULTS PRESENTATION
1 Overview of HY23

Key highlights: Turners maintains robust earnings
despite macro challenges...
1.Record net profit before tax of $23.4m for HY23 slightlyahead of HY22 ($23.2m NPBT) despite a challenging macro
environment,
2.The HY23 was 58% up on the last pre-Covidearnings in HY20.
3.Based on our experience in H1 and early trading in H2 we expect FY23 NPBT to be at or slightly above last year’s record result
with full year dividends expected at 23.0 cps (in line with FY22)
4.Despite the macro context, the resilience and diversification of the group continue to deliver robust earnings and
consistentdividends for Turners’ shareholders. Q2 dividend declared at 5.0 cps.
5.The wider NZ used car market is down 7.5% year to date (Apr to Sept) compared to the same period last year, however Turners
has seen an increase in car units sold year on year and as a result, and strong growth in market share.
6.Turners’ auto retail network expansion, highly effective (award winning) advertising and retail optimisation strategy continues to
drive growth for the business and offset the impact of the interest rate headwinds being experienced by Oxford Finance.
7.Record high levels of employee engagement and record high scores for customer experience measures.
5• HY23 RESULTS PRESENTATION

NZ used car market: Lower volumes and dealers leaving
market ...
•Transaction levels tracking well behind pre-Covidlevels due
toOmicron impact, rising interest rates, increased
government regulation, and decreased industry demand.
•Used car Change of Ownership transactions down 7.5%
from April to September.
•Still expecting supply to be constrained due to disruption to
material supply, and impact of government regulation.
•Registered dealer numbers at lowest point in the last 5 years
(now under 3k), down 14% from peak in 2017...last time we
were below 3k dealers was Feb-14.
•Demand for higher value cars is moderating and shifting into
the lower price point segments.
Source: NZTA
300,000
350,000
400,000
450,000
500,000
550,000
600,000
HY20HY21HY22HY23
Total Change of Ownerships for Used Vehicles in NZ by HY (Apr to Sep)
6• HY23 RESULTS PRESENTATION

Used car transactions impacted by government regulation
2700
2800
2900
3000
3100
3200
3300
3400
3500
3600
Jan-17
Apr-17
Jul-17
Oct-17
Jan-18
Apr-18
Jul-18
Oct-18
Jan-19
Apr-19
Jul-19
Oct-19
Jan-20
Apr-20
Jul-20
Oct-20
Jan-21
Apr-21
Jul-21
Oct-21
Jan-22
Apr-22
Jul-22
Registered Dealer Numbers NZ (source MBIE)
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
1,100,000
1,200,000
0607080910111213141516171819202122
Fcst
Total Change of Ownerships for Used Vehicles in NZ
* 2022 forecast annualisesSept YTD at 727,000 changes of ownership
*
7• HY23 RESULTS PRESENTATION

HY23 Results overview
•Revenue $185.3m +11%
•EBIT $26.1m +2%
•NPBT $23.4m +1%
•NPAT $17.1m +1%
•Normalised NPBT $23.4m -4%
•HY dividend declared at 5.0 cps
•Earnings per share 19.8 cps +1%
•Q1 impacted materially by Omicron both
in customer demand and staff impact.
•Reduced vehicle margins offset
bycontinued gains in auto market share.
•Interest rate environment negatively
impacting finance net interest margin as
expected.
•Finance arrears performing significantly
better than market levels.
•Earnings diversification and resilience of
business demonstrated in a challenging
economic environment.
Financials
Key Drivers for HY23
Q3 Update
•Auto retail: Car sales holding up well,
margins improving.
•Finance: Increasing impact of interest
rate environment on cost of funds. Loan
book stable.
•Insurance:Claims continue to track
below expectations.
•Credit: Debt load recovering but slower
than expected. NZ Credit metrics
continue to deteriorate.
8• HY23 RESULTS PRESENTATION

9• HY23 RESULTS PRESENTATION
2 HY23 Results

HY23 Results snapshot
10• HY23 RESULTS PRESENTATION
Revenue
$185.3m+11%
Shareholders’Equity
$266.7m as at 30Sept2022
EBIT
$26.1m+2%
Q2 Dividend5.0cps
ProjectedFY Div23.0cps
Net Profit BeforeTax
$23.4m+1%
H1 Earnings PerShare
19.8 cps
(HY22 19.6 cps,+1%)
Net Profit After Tax
$17.1m+1%
Revenue
Net profit aftertax
0
50
100
150
200
250
300
350
400
FY17FY18FY19FY20FY21FY22FY23
Millions
2H
1H
0
5
10
15
20
25
30
35
FY17FY18FY19FY20FY21FY22FY23
Millions
2H
1H

HY22:HY23Revenuebridge
•Revenue growth in Auto Retail reflects increase in
both “owned” units sold and increase in
consignment units.
•Finance revenue growth reflects larger loan book
driven out of growth in high quality borrower
segment.
•Insurance revenue gains from no lockdown periods
in HY23.
•Credit management revenue impacted by reduced
debt loaded.
11% increase in revenue, predominantly driven by Auto Retail
11• HY23 RESULTS PRESENTATION

HY22: HY23 Net profit before tax(NPBT)bridge
12• HY23 RESULTS PRESENTATION
•Auto Retail result underpinned by market share
gains and new branch growth, with market wide
lower margins.
•Finance impact of rising interest costs.
•Insurance result reflects improvement in investment
returns and continued efficiencies in claims.
•Credit performance reflects debt load still at
reduced levels.
NPBT increased from $23.2m to $23.4m,profit largely unchanged for each segment

The business has a diverse and resilient earnings base
•All three auto related businesses grew
materially from pre-pandemic levels.
•Credit management has been significantly
impacted by reduced debt load and no
collection instructions from major
corporates and government departments
during COVID.
•The mix of activity and annuity businesses
provides the earnings diversification to
protect earnings stability during difficult
times.
Operating Profit Contribution by Segment ($m)
8.0
7.3
7.8
10.2
11.1
5.4
6.5
7.6
9.9
9.1
5.3
2.6
4.5
5.8
6.3
3.1
3.6
3.0
2.1
1.4
-
5.0
10.0
15.0
20.0
25.0
30.0
HY19HY20HY21HY22HY23
Credit management
Insurance
Finance
Automotive retail
13• HY23 RESULTS PRESENTATION

Reconciliation: NPBT to NormalisedNPBT
•No material one-off gains or losses in HY23.
•Whilst there were no lockdowns in HY23 there
were disruptions from the Omicron outbreak
however these were difficult to isolate and
quantify the impact of this.
•Results demonstrate the earnings resilience of
the business during challenging macro
conditions.
$MillionsHY23HY22Var
Profit before tax actual23.423.21%
Profit on sale of MTF shares(0.5)
NZ Government Covid Support(1.5)
Covid Restriction Profit Normalisation3.3
Normalised operating result23.424.5(4%)
14• HY23 RESULTS PRESENTATION

0.10
0.13
0.145
0.155
0.17
0.14
0.20
0.230.23
0.00
0.05
0.10
0.15
0.20
0.25
FY15FY16FY17FY18FY19FY20FY21FY22FY23
Projected
DividendPayments and Policy
15• HY23 RESULTS PRESENTATION
Dividend(cents per share)
•Continued strong track record of sustainable dividends
for shareholders over time.
•Q1 FY23 dividend declared at 5.0 cps in Oct, Q2 FY23
dividend = 5.0 cps.
•Based on the current dividend payoutpolicy of 60-70%
of NPAT we anticipate full year fully imputed dividends
of 23 cents.
•Based on the projected 23.0 cents per share dividend
and a share price of $3.60 this is a gross yield of 8.9%
pa.
**
*Dividends fully imputed from FY17 onwards
**Covid-19 related cancellation of final dividend
*

Balancesheet
16• HY23 RESULTS PRESENTATION
•Inventory levels down as we focus on improving
processing times and overall stock turn metrics. Units
down from 4,300 in Sept-21 to 3,067 in Sept-22
•Increasein Finance Receivables reflects growth in
Oxford (offset partly by rundown in MTF funded
receivables in Auto retail)
•Property, plant and equipmentincrease due to
completion of new sites in Rotorua and Nelson
•Increase in borrowings reflects ongoing growth
in Oxford receivables
$MillionsHY23HY22
Cash and cash equivalents
17.714.2
Financial assets at fair value
66.265.4
Inventory
26.231.9
Finance receivables
443.1372.3
Property, plant and equipment
74.266.6
Other Assets
34.226.7
Right of use asset
24.6
21.2
Intangible assets
164.4
165.3
Total Assets
850.6763.6
Borrowings
430.8374.3
Trade & other payables
42.435.1
Deferred tax
13.412.2
Insurance contract liabilities
55.354.2
Lease liabilities
30.126.2
Other Liabilities
11.913.6
Total Liabilities
583.9515.6

Fundingmix
Borrowings
Borrowings byUtilisation($Millions)
As at 30 September 2022
•BNZ Securitisation notes now consist of Class 1 and Class 2 only
after June 2022 refinance of Class 3 notes by Turners.
•Securitisation funding facility limit extended from $276M at Sept
2021 to $331M (excluding notes funded by TRA).
•80% of total debt in business relates to finance receivables.
Oxford Finance has an equity to total assets ratio of 22% and
currently has capacity to underpin a further 18 months growth in
the finance book.
Inventory
Securitisation
Banking
Syndication
MTF
17• HY23 RESULTS PRESENTATION
$MillionsLimitDrawnUndrawn
Receivables –Securitisation(BNZ)
33131615
Receivables –Banking Syndicate
(ASB/BNZ)
502921
Corporate & Property
1107238
Inventory(ASB/ BNZ)
301416
Totals
52143190
Finance Receivables
$345m
Corporate & Property
$72m
Inventory
$14m

18• HY23 RESULTS PRESENTATION
3 Segment Results

HY23 by segment
19• HY23 RESULTS PRESENTATION
Note –HY23 reported NPBT of $23.4m includes corporate costs of $4.3m
$Millions
Automotive
Retail
FinanceInsuranceCredit
Revenue129.613%29.216%21.64%4.9(14%)
Segment Profit11.18%9.1(9%)6.38%1.4(32%)

HY23 by segment
AutoRetail
•Market share gains through brand promotion and retail
optimisation initiatives.
•Speed to sale initiatives leading to more sales on lower
inventory levels.
•Damaged unit sales up 13% year on year.
Finance
•Finance continued focus on targeting high quality
borrowers, attracting 50%+ of new lending in premium risk
business.
•Interest expense up materially 106% to $5.6m resulting in
expected compression in net interest margin.
•Arrears stable.
Credit/Management
•Debt load increasing.
•Market wide credit defaults starting to lift off historical
lows.
•Customer experience scores very pleasing confirming
resolution focus right strategy.
Insurance
•Market share gains.
•Claims ratios continue to improve, and less cars moving
in WFH arrangements.
•Core technology system replacement development
underway and on target for completion in Nov-22.
20• HY23 RESULTS PRESENTATION

3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
Automotiveretail
Revenue 129.6m +13%, Segment Profit $11.1m+8%
•Market share has continued to improve in HY23, “Tina” brand
campaign working well, winning multiple NZ Marketing Awards.
•Retail (BuyNow) unit sales up 7% to ~9,500, wholesale auction
unit sales up 42% to ~9,500 units.
•Total “owned” units sold in HY23 up 11% over HY22, overall
margin on cars we own is down 9% for H1.
•Nelson and Rotorua now both fully operational and performing
above expectations.
•HY22 Finance attach rates have recovered from low point
conversion of 25% during time of CCCFA (Q3 FY22). Currently
tracking at 32% (HY22: 35% pre CCCFA changes).
•Business is operating off lower inventory levels, with faster stock
turn, and is repositioning type of stock (smaller and cheaper).
Turners Retail Market Share % (Quarterly)
21• HY23 RESULTS PRESENTATION
Source –NZTA Dealer to Public Registrations + Ex-Overseas Registrations

Improving our speed to sale has improved our stock turn and
reduced inventory levels
22• HY23 RESULTS PRESENTATION
•Data tools have enabled accurate measurement of the
process.
•Vehicle preparation process has been re-engineered and
optimised for specific vehicle requirements, which has
removed a number of time critical bottlenecks.
•Outcome has been higher sales of lower inventory
investment, and reduced exposure to market pricing
changes.
•Upweighting local sourcing versus used imports has been
beneficial.
Key IndicatorSept-21Mar-22Sep-22
Speed to sale
(days)
352514
Stock value
($m)
34.033.327.7
Stock units4,2653,7003,067

Focus on local sourcing reduced reliance on import channel
23• HY23 RESULTS PRESENTATION
•Noticeable impact on margins during high demand and
limited supply during COVID pandemic.
•Positive impact on volume and margins from focus on local
sourcing in HY22, use of data, branch network, lead
generation, customer experience and conversion.
•Improvements in use of data, higher proportion of domestic
buying have helped to lock in structural improvements in
margin over pre-pandemic levels.
Average Margin
1
($) and Units of “owned” cars sold
0
100
200
300
400
500
600
700
800
900
1,000
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
HY19HY20HY21HY22HY23
Avergae margin ($)
Units Sold
Local Units soldImport units soldMargin
1
Margin calculated after selling fees

The value of the Turners brand continues to grow...
24• HY23 RESULTS PRESENTATION
•Gains in market share have been supported by our “Tina from
Turners” brand investment.
•In September 2022, Turners claimed the top award at the
2022 edition of the New Zealand Marketing Awards. With the
Awards now in its 31st year, Turners took home the Supreme
Award as well as Excellence in Brand Transformation Strategy
and Excellence in Consumer Products & Services Strategy.
•In October Tina picked up two “gold” awards at the Advertising
Effectiveness “Effie” Awards for Best Strategic Thinking and
Retail/Etail categories.
•The executive judges said “WE LOVE TINA! This campaign
was a brilliant case study which was effective in its delivery
and had a clear strategy showcasing simplicity at its finest. It
was a pleasant surprise and one that had our Executive
Judges saying, “why didn’t I think of this?”

Continue to expand footprint –Rotorua exceeds expectations
25• HY23 RESULTS PRESENTATION

Continue to expand footprint -Nelson exceeds expectations
26• HY23 RESULTS PRESENTATION

Turners Subscription continues to gather momentum and clear
pathway to viable business clear
27• HY23 RESULTS PRESENTATION
•Turners Subscription has broken through the milestone of 200
live subscriptions in October with almost 250 vehicles
concurrently on subscription in mid-Nov.
•The average subscription period continues to expand,
currently at 15 weeks. The average subscription payment is
just over $200 per week and trending up as demand
increases.
•Vehicles available at most branches around the country.
Subscribers mostly come from metro areas with Auckland
accounting for 75% of subscribers, Christchurch around 10%,
and Hamilton and Tauranga making up 10% between them.
•1 in 4 vehicles on subscription are now LEV (low emmission
vehicle), but there continue to be challenges sourcing these
vehicles.
15
35
55
75
95
115
135
155
175
195
215
Concurrent subscriptions by month
Snapshot Subs

Finance
Revenue $29.2m +16%, Segment Profit $9.1m (9%)
Receivables growth by month (exclimpairments)
28• HY23 RESULTS PRESENTATION
•Growth has moderated as quality and margin becomehigher
priorities.
•Focus on pricing and margin management has been critical in
dealing with the speed of interest rate rises.
•Premium Tier business holding up well and accounts for 50%+
of our new business per month.
•Controlled lending through our own Turners and Direct channel
up 13% in HY23 to $34m.
•Credit policy continually tightened throughout HY23.
•Hardships peak at less than 1/3
rd
of 2020 peak levels.
200
250
300
350
400
450
Millions

The quality of the finance book continues to improve...
Total New Lending with Premium Tier Risk
Split
3%
26%
47%
48%
48%
49%
51%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
H1 FY20H2 FY20H1 FY21H2 FY21H1 FY22H2 FY22H1 FY23
PremiumOther
Average Centrix Credit Score for loans onboarded
560
580
600
620
640
660
680
700
720
740
1H172H171H182H181H192H191H202H201H212H211H222H221H23
Avergae consumer CENTRIX
credit score
29• HY23 RESULTS PRESENTATION

Focus on quality reflected in arrears
•Our large proportion of premium borrower business combined with
the run-off of legacy loan book leads to structural improvement in
arrears.
•Oxford has continued to tighten credit policy during HY23.
•Oxford loan arrears continue to track better than market data
published by Centrix (see chart at top left).
•Hardships remain at historically low levels.
•There is a material buffer in arrears provisioning to allow for further
economic uncertainty.
Consumer Customer +3 Day Arrears (Loan Balance)
Commercial Customer +3 Day Arrears (Loan Balance)
CovidHardship PeakHY23FY22
Number47511
Balance$971,000$12,260,000
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
Total consumer arrearsIndustry arrears (Centirx)
0.0%
5.0%
10.0%
15.0%
20.0%
Commercial Total Arrears Percentage
30• HY23 RESULTS PRESENTATION

Insurance
•Market share gains continuing to provide robust policy sales
despite challenging market conditions.
•Distribution arrangements continuing to work well with
further digital enhancements.
•Claims Costs remaining steady with procurement remaining
a key strength and offsetting parts inflation and labourrate
increases.
•Operating Cost Ratio steady between 20-21%.
•Reaffirmed AM Best credit rating for Insurance and Financial
Strength rating at B++ (Good).
•Google Rating and Customer Net Promoter Score continuing
to increase.
Revenue $21.6m +4%, Segment Profit $6.3m +8%
Net Earned Premium HY22 to HY23 ($000s)
MBI Loss Ratio Performance
75%
66%
60%
58%
58%
FY19 AFY20 AFY21 AFY22 AFY23 HY
MBI Loss Ratio
31• HY23 RESULTS PRESENTATION

Creditmanagement
•Debt value loaded increased by 3% to $63.4m over HY22 as
market wide credit metrics start to deteriorate.
•Debt value collected was down 8% to $18.7m with cost of living
pressure impacting on consumers surplus levels to address
outstanding debts.
•Promises to Pay kept rate has remained stable through the last 12
months at 76%.
•While many consumers have paid off and closed down credit
cards during the pandemic, credit defaults are up 20% on last
year, but still lower than pre-pandemic levels –Centrix data Sep
2022.
Revenue $4.9m (14%) Segment Profit $1.4m (32%)
Debt LoadedHY22to HY23($m)
32• HY23 RESULTS PRESENTATION
Centrix Consumer Credit Default Index –Sep 22

Digital advantage continues to expand against competitors
33• HY23 RESULTS PRESENTATION
•Team fully resourced in a very challenging employment
environment –headcount increased to 40 and team
strengthened in data and development
•Data platform and tools –enabling sustainability
measures, helping improve our sourcing, detailed
measurement and insight into car preparation processes,
customer data platform helping drive conversion
•Transformation to Cloud underway with first 3 pilot
projects completed –commercial finance online
application, new ratings engine for Insurance, new
vehicle management portal for Auto Retail consignment
vendors
Car wizard launched on turners.co.nz
Launched Jun-22 and had 14,000 uses of the wizard

Our team engagement scores are at record high levels
PeakonEmployee Engagement Scores
Across nearly 700 employees we are averaging 9/10 to the question “How likely is it
that you would recommend Turners Auto Group as a place to work?”
•Having a strong culture and an engaged
team is very important to us, particularly at a
time when recruitment and retention is
challenging
•Turners rank in the top 5% of consumer
businesses globally using the Peakon survey
tool
•We continue to invest in training,
remuneration, and other benefits. We have
also launched an Employee Share Scheme
with just under 50% take up in HY23
7.8
7.9
8.1
8.2
8.3
8.5
8.8
9.09.0
9.1
7
7.5
8
8.5
9
9.5
Aug-20Oct-20Dec-20Mar-21Jun-21Sep-21Nov-21Mar-22Jul-22Oct-22
How likely is it that you would recommend Turners Automotive Group as
a place to work?
34• HY23 RESULTS PRESENTATION

35• HY23 RESULTS PRESENTATION
4 Outlook

There are some challenges, but we are in a strong position...
Competitive advantages...
•High trust brands in our stable
•Biggest buyer and seller of cars in NZ
•Unmatched national footprint
•Diversified sources of cars
•Agility in finance and insurance systems
•Technology capability and data advantages
•Highly engaged and capable team of people
Challenges
•Cost of living impact on consumer confidence
•Rapidly increasing interest rate environment
•New car supply chain issues
•Recruitment and retention of people
•Regulatory
36• HY23 RESULTS PRESENTATION

•Based on our experience in the first half and early trading in H2 we expect FY23 NPBT to be at or slightly
above last year’s record result.
•We anticipate full year fully imputed dividends of 23 cents per share (FY22 23 cps) based on the current
dividend payout policy of 60-70% of NPAT.
•Vehicle margins improving, and we expect these to hold at or near current levels. We anticipate some deterioration in
arrears as cost of living pressures become more material for people. Improving investment returns in insurance will
offset some of the material impact in funding costs being experienced through the finance business.
•We expect the Auto retail business to continue to grow strongly from our execution of our retailoptimisationstrategy,
however the impact of the interest rate environment will be more pronouncedin H2 FY23 and FY24.
Outlook –FY23 Guidance
37• HY23 RESULTS PRESENTATION

Key Messages
38• HY23 RESULTS PRESENTATION
1.Continue to produce robust and reliable earnings, despite macro challenges
Following a number of strategic initiatives, and focus on de-risking, Turners continues to produce reliable and consistent earnings
and a sustainable dividend yield. Auto and Insurance are growing strongly offsetting the impact of the interest rate environmenton
Finance.
2.Continue to grow market share in key auto retail segment
With more branches in the pipeline, customers turning to “trusted” brands in times of uncertainty and a diversified sourcing model
Turners is well positioned to widen its competitive moat in the used vehicle segment.
3.Used car market is mostly needs based...lots of market resilience in this segment
20% of NZ vehicle fleet is 20 years or older...this is over 830,000 cars that are at the end of their life.
4.We are very conscious of NZ and global economic challenges over the next 12-24 months
We are aware of the challenges and still have clear plans to mitigate these. We still see opportunities in the markets we operate in,
and are well positioned to take advantage of these. The strong will get stronger.

Contact
39• HY23 RESULTS PRESENTATION
ToddHunter
Group CEO
T: 64 21 722818
E:todd.hunter@turners.co.nz
Aaron Saunders
Group CFO
T: 64 27 4938794
E: aaron.saunders@turners.co.nz

---

Distribution Notice
Name of issuer
Financial product name/description
NZX ticker code
ISIN
Type of distributionFull YearQuarterlyX
(Please mark with an X in the Half YearSpecial
relevant box/es)
DRP applies
Record date
Ex-Date(onebusinessdaybefore
the Record Date)
Payment date
Totalmoniesassociatedwiththe
distribution
4,335,012.35$
Source of distribution
Currency
Gross distribution
Total cash distribution
Excluded amount (applicable to listed
PIEs)
Supplementary distribution amount
Is the distribution imputed
Iffullyorpartiallyimputed,please
state imputation rate as % applied
Imputationtaxcreditsperfinancial
product
Resident Withholding Tax per
financial product
Name of person authorised to make
this announcement
Contact person for this
announcement
Contact phone number
Contact email address
Date of release through MAP
Todd Hunter
021 722 818
Todd.Hunter@turners.co.nz
22 November 2022
Fully imputed
28%
$0.01944444
$0.00347222
Section 4: Authority for this announcement
Aaron Saunders
Section 3: Imputation credits and Resident Withholding Tax
12 January 2023
11 January 2023
26 January 2023
Retained earnings
NZD
Section 2: Distribution amounts per financial product
$0.06944444
$0.05000000
n/a
$0.00882353
Section 1: Issuer information
Turners Automotive Group Limited
Ordinary shares
TRA
NZVNLE0001S1

---

Results announcement
Results for announcement to the market
Name of issuerTurners Automotive Group Limited
Report period6 months to 30 September 2022
Previous reporting period6 months to 30 September 2021
CurrencyNZD
Amount (000s)Percentage change
Revenue from continuing operations$185,02112%
Total revenue$185,27711%
Net profit from continuing operations$17,0901%
Total net profit $18,7532%
Interim dividend
Amount per quoted equity security$0.05000000
Imputed amount per quoted security$0.01944400
Record date12/01/2023
Dividend payment date26/01/2023
Interim dividendCurrent periodPrior comparable period
Net tangible assets per quoted security$1.33$1.10
A brief explanation of any of the figures
above necessary to enable the figures to
be understood
Please refer to accompanying Company Announcement
Authority for this announcement
Name of person authorised to make this
announcement
Aaron Saunders
Contact person for this announcement Todd Hunter
Contact phone number021 722 818
Contact email addressTodd.Hunter@turners.co.nz
Date of release through MAP22/11/2022
Unaudited financial statements accompany this announcement

TURNERS AUTOMOTIVE GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 September 2022
Six monthsSix monthsYear
endedendedended
30/09/202230/09/202131/03/2022
UnauditedUnauditedAudited
Note$'000$'000$'000
Revenue3
185,021
164,585342,029
Other income 3
256
2,1712,487
Cost of goods sold
(80,527)
(70,947)(153,173)
Interest expense
(8,251)
(5,228)(10,932)
Impairment provision expense
(1,177)
(894)(3,024)
Subcontracted services expense
(6,352)
(5,457)(10,940)
Employee benefits
(30,341)
(27,865)(56,030)
Commission
(6,999)
(5,400)(12,925)
Advertising expense
(2,131)
(2,108)(4,140)
Depreciation and amortisation expense
(5,387)
(5,248)(10,702)
Systems maintenance
(2,039)
(1,491)(3,399)
Claims
(10,680)
(10,082)(21,024)
Other expenses
(7,953)
(8,837)(15,107)
Profit before taxation23,440
23,19943,120
Taxation expense
(6,350)
(6,332)(11,839)
Profit from continuing operations 17,090
16,86731,281
Other comprehensive income for the period (which may subsequently be
reclassified to profit/loss), net of tax
Cash flow hedges
1,664
1,8115,429
Revaluation of financial assets at fair value through OCI
(53)
(270)(345)
Foreign currency translation differences
52
(33)(6)
Total other comprehensive income for the period1,663
1,5085,078
Total comprehensive income for the period18,753
18,37536,359
Earnings per share (cents per share)
Basic earnings per share 4
19.79
19.6436.39
Diluted earnings per share 4
19.77
19.6036.45

TURNERS AUTOMOTIVE GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 September 2022

Share
Capital
Share
Options
Reserve
Translation
Reserve
Revaluation of
financial
assets at
fair value
through OCI
Cash flow
hedge
reserve
Retained
EarningsTotal
Note
$’000$’000$’000$’000$’000$’000$’000
Balance at 31 March 2021 (audited) 204,297 255 (26) (740) 48 29,736 233,570
Transactions with shareholders in their capacity as owners
Employee share based payments 1,185 (23) - - - - 1,162
Dividend paid9-----(5,164)(5,164)
1,185 (23) - - - (5,164) (4,002)
Comprehensive income
Profit
-----16,867 16,867
Other comprehensive income
--(33)(270)1,811- 1,508
Total comprehensive income for the period, net of tax
- - (33) (270) 1,811 16,867 18,375
Balance at 30 September 2021 (unaudited) 205,482 232 (59) (1,010) 1,859 41,439 247,943
Transactions with shareholders in their capacity as owners
Employee share based payments - 240 - - - - 240
Dividend paid9----- (13,770) (13,770)
- 240 - - - (13,770) (13,530)
Comprehensive income
Profit
----14,414 14,414
Other comprehensive income
--27(75)3,618- 3,570
Total comprehensive income for the period, net of tax
- - 27 (75) 3,618 14,414 17,984
Balance at 31 March 2022 (audited) 205,482 472 (32) (1,085) 5,477 42,083 252,397
Transactions with shareholders in their capacity as owners
Employee share based payments
1,20156---- 1,257
Employee share scheme
401----- 401
Dividend paid9
-----(6,062)(6,062)
1,602 56 - - - (6,062) (4,404)
Comprehensive income
Profit----17,090
17,090
Other comprehensive income--52(53)1,664-
1,663
Total comprehensive income for the period, net of tax - - 52 (53) 1,664 17,090 18,753
Balance at 30 September 2022 (unaudited) 207,084 528 20 (1,138) 7,141 53,111 266,746

TURNERS AUTOMOTIVE GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 September 2022
30/09/202230/09/202131/03/2022
UnauditedUnauditedAudited
Note$'000$'000$'000
Assets
Cash and cash equivalents5
17,711
14,195 13,373
Financial assets at fair value through profit or loss
- Insurance
66,168
65,436 70,199
- Other
-
13 -
Trade receivables
5,529
7,189 7,581
Inventories
26,214
31,924 31,980
Finance receivables6
443,057
372,315 422,870
Other receivables, deferred expenses and contract assets
12,708
7,958 9,340
Derivative financial instruments
7,146
1,864 5,414
Financial assets at fair value through OCI
172
300 225
Reverse annuity mortgages
2,851
3,313 3,242
Property, plant and equipment
74,180
66,592 67,569
Right-of-use assets
24,557
21,200 23,497
Investment property
5,950
5,950 5,950
Intangible assets
164,359
165,329 164,453
Total assets
850,602
763,578 825,693
Liabilities
Trade and other payables
42,442
35,100 50,103
Contract liabilities
1,808
2,289 1,848
Deferred tax
13,352
12,231 13,191
Tax payable
2,999
2,894 4,016
Borrowings7
430,827
374,337 412,761
Lease liabilities
30,107
26,181 28,209
Life investment contract liabilities
7,039
8,412 8,153
Insurance contract liabilities
55,282
54,191 55,015
Total liabilities
583,856
515,635 573,296
Shareholders' equity
Share capital
207,084
205,482 205,482
Other reserves
6,551
1,022 4,832
Retained earnings
53,111
41,439 42,083
Total shareholders' equity
266,746
247,943 252,397
Total shareholders' equity and liabilities
850,602
763,578 825,693
Total assets per share ($)9.81 8.87 9.59
Net tangible assets ($)1.33 1.10 1.18

TURNERS AUTOMOTIVE GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 30 September 2022
Six monthsSix monthsYear
endedendedended
30/09/202230/09/202131/03/2022
UnauditedUnauditedAudited
Note$'000$'000$'000
Cash flows from operating activities
Interest received 25,924 22,980 45,346
Receipts from customers 158,173 143,065 297,260
Receipt of government subsidies 69 1,515 1,580
Interest paid(7,189) (4,211) (8,870)
Interest paid - lease liabilities(737) (742) (1,642)
Payment to suppliers and employees(143,449) (140,639) (273,105)
Income tax paid(7,268) (5,960) (9,326)
Net cash inflow/(outflow) from operating activities before
changes in operating assets and liabilities 25,523 16,008 51,243
Net increase in finance receivables(21,091) (42,158) (93,992)
Net decrease in reverse annuity mortgages 520 974 1,164
Net decrease of financial assets at fair value through profit or loss 3,170 2,477 (2,482)
Net contribution from life investment contracts(87) 16 126
Changes in operating assets and liabilities arising from
cash flow movements(17,488) (38,691) (95,184)
Net cash inflow/(outflow) from operating activities 8,035 (22,683) (43,941)
Cash flows from investing activities
Proceeds from sale of property, plant, equipment and intangibles 479 550 636
Purchase of fixed assets and intangible assets(9,826) (8,548) (16,121)
Purchase of investments - (176) -
Sale of investments - 3,420 3,420
Net cash (outflow)/inflow from investing activities(9,347) (4,754) (12,065)
Cash flows from financing activities
Net bank loan advances/(repayments) 18,238 61,571 100,660
Principal elements of lease payments(2,964) (2,687) (5,563)
Repayment of bond - (25,000) (25,000)
Proceeds from the issue of shares 1,602 1,043 1,185
Dividend paid(11,226) (5,162) (13,770)
Net cash inflow/(outflow) from financing activities 5,650 29,765 57,512
Net movement in cash and cash equivalents 4,338 2,328 1,506
Add opening cash and cash equivalents 13,373 11,867 11,867
Closing cash and cash equivalents17,711 14,195 13,373
Represented by:5 17,711 14,195 13,373
Cash at bank
Closing cash and cash equivalents17,711 14,195 13,373

TURNERS AUTOMOTIVE GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 30 September 2022
Six monthsSix monthsYear
endedendedended
30/09/202230/09/202131/03/2022
UnauditedUnauditedAudited
$'000$'000$'000
RECONCILIATION OF NET SURPLUS WITH CASH FLOWS FROM OPERATING ACTIVITIES
Profit/(loss) 17,090 16,867 31,281
Adjustment for non-cash items
Impairment charge on finance receivables, reverse annuity mortgages
and other receivables 1,099 894 3,108
Net loss/(profit) on sale fixed assets(187) (544) (306)
Depreciation and amortisation 5,814 5,248 10,702
Capitalised reverse annuity mortgage interest(144) (150) (294)
Deferred revenues 416 986 1,500
Fair value adjustments on assets/liabilities at fair value through profit and loss 840 (520) (297)
Net annuity and premium change to policyholders accounts(1,027) 280 (89)
Non-cash adjustments to finance receivables effective interest rates(3) (13) (14)
Deferred expenses(444) (2,926) (4,136)
Gain on modification of a lease - (23) (60)
COVID-19 rent concessions - (139) (92)
Adjustment for movements in working capital
Net decrease/(increase) receivables and pre-payments(86) 186 (1,506)
Net decrease/(increase) in inventories 5,766 1,150 (1,792)
Net increase/(decrease) in payables(1,185) (5,127) 11,190
Net increase/(decrease) in contract liabilities(1,931) (531) (465)
Net increase in finance receivables(21,091) (42,158) (93,992)
Net decrease in reverse annuity mortgages 520 974 1,164
Net decrease of insurance assets at fair value through profit or loss 3,170 2,477 (2,482)
Net contributions/(withdrawals) from life investment contracts(87) 16 126
Net decrease in deferred tax liability 237 934 1,952
Net increase/(decrease) in tax payable(732) (564) 561
Net cash inflow/(outflow) from operating activities 8,035 (22,683) (43,941)

TURNERS AUTOMOTIVE GROUP LIMITED
1. ACCOUNTING POLICIES AND SIGNIFICANT JUDGEMENT, ESTIMATES AND ASSUMPTIONS
2. SEGMENTAL INFORMATION
OPERATING SEGMENTS
RevenueRevenueRevenueRevenue
TotalInter-fromTotalInter-fromTotalInter-from
segmentsegmentexternalsegmentsegmentexternalsegmentsegmentexternal
revenuerevenuecustomersrevenuerevenuecustomersrevenuerevenuecustomers
30/09/202230/09/202230/09/202230/09/202130/09/202130/09/202131/03/202231/03/202231/03/2022
UnauditedUnauditedUnauditedUnauditedUnauditedUnauditedAuditedAuditedAudited
$'000$'000$'000$'000$'000$'000$'000$'000$'000
Automotive retail 133,201 (3,575) 129,626 117,994 (2,850) 115,144 249,236 (6,707) 242,529
Finance 29,157 - 29,157 25,190 - 25,190 51,898 - 51,898
Insurance 22,471 (846) 21,625 21,527 (776) 20,751 43,269 (2,897) 40,372
Credit management 4,862 - 4,862 5,655 - 5,655 9,671 - 9,671
Corporate & other 7 - 7 16 - 16 46 - 46
189,698 (4,421) 185,277 170,382 (3,626) 166,756 354,120 (9,604) 344,516
Operating profit30/09/202230/09/202131/03/2022
UnauditedUnauditedAudited
$'000$'000$'000
Automotive retail 11,061 10,225 19,447
Finance 9,061 9,949 17,987
Insurance 6,265 5,813 11,580
Credit management 1,386 2,050 3,033
Corporate & other(4,333) (4,838) (8,927)
Profit/(loss) before taxation23,44023,19943,120
Income tax(6,350) (6,332) (11,839)
Profit attributable to shareholders 17,090 16,867 31,281
The same accounting policies included in the Group’s Annual Report for the year ended 31 March 2022 have been applied when preparing these consolidated condensed financial statements.
The same significant judgments, estimates and assumptions (including basis of segmentation and the fair value measurement) included in the notes to the financial statements in the Group's Annual Report for the year to 31 March 2022 have been
applied to these financial statements. The business does not experience notable seasonal variations. There has been no change to the basis of segmentation from that applied at 31 March 2022.
These consolidated condensed financial statements have been prepared in accordance with Generally Accepted Accounting Practice in New Zealand ('NZ GAAP'). They comply with New Zealand equivalents to International Accounting Standard 34
Interim Financial reporting ('NZ IAS 34') and International Accounting Standard 34 Interim Financial Reporting ('IAS 34'). The Group is a Tier 1 for-profit entity in accordance with XRB A1 Application of the Accounting Standards Framework.

TURNERS AUTOMOTIVE GROUP LIMITED
Interest revenueInterest expense
30/09/202230/09/202131/03/202230/09/202230/09/202131/03/202230/09/202230/09/202131/03/2022
UnauditedUnauditedAuditedUnauditedUnauditedAuditedUnauditedUnauditedAudited
$'000$'000$'000$'000$'000$'000$'000$'000$'000
Automotive retail103160199(770)(799)(1,531)(4,199)(3,962)(8,126)
Finance25,54421,50744,782(5,564)(2,707)(6,322)(356)(385)(842)
Insurance7715181,020(32)(37)(72)(627)(651)(1,240)
Credit management111(8)(12)(21)(132)(168)(330)
Corporate & other7-1(1,877)(1,673)(2,994)(73)(82)(164)
26,42622,18646,003(8,251)(5,228)(10,940)(5,387)(5,248)(10,702)
Eliminations--(8)-8---
26,42622,18645,995(8,251)(5,228)(10,932)(5,387)(5,248)(10,702)
Other material non-cash items
30/09/202230/09/202131/03/2022
UnauditedUnauditedAudited
$'000$'000$'000
Automotive retail - gain on modification of a lease-2360
Automotive retail - impairment provisions(17)(65)151
Finance - impairment provisions(1,128)(814)(3,135)
Insurance - reverse annuity mortgage interest144150294
2.2 SEGMENT ASSETS AND LIABILITIES
30/09/202230/09/202131/03/202230/09/202230/09/202131/03/2022
UnauditedUnauditedAuditedUnauditedUnauditedAudited
$'000$'000$'000$'000$'000$'000
Automotive retail124,164114,103116,43872,27866,30166,679
Finance478,118397,254451,504372,065308,208353,313
Insurance134,342136,447139,09175,29975,64075,544
Credit management32,83931,91531,5143,7724,6083,476
Corporate & other203,758204,037187,74983,89481,05276,181
973,221883,756926,296607,308535,809575,193
Eliminations(122,619)(120,178)(100,603)(23,452)(20,174)(1,897)
850,602763,578825,693583,856515,635573,296
Five reportable segments have been identified as follows:
Automotive retail - remarketing (motor vehicles, trucks, heavy machinery and commercial goods) and purchasing goods for sale.
Finance - provides asset based finance to consumers and SME's.
Credit management - collection services, credit management and debt recovery services to the corporate and SME sectors. Geographically the collections services segment business activities are located in New Zealand and Australia.
Insurance - marketing and administration of a range of life and consumer insurance and saving products.
Corporate & other - corporate centre.
Segment assetsSegment liabilities
Depreciation and
amortisation expenses
Revenue/(expenses)

TURNERS AUTOMOTIVE GROUP LIMITED
3. REVENUE
Revenue includes:
Six monthsSix monthsYear
endedendedended
30/09/202230/09/202131/03/2022
UnauditedUnauditedAudited
$'000$'000$'000
Interest income
26,426 22,186 45,995
Sales of goods
94,841 85,003 182,435
Commission and other sales revenue
34,401 28,906 58,962
Loan fee income
1,595 1,872 3,659
Insurance and life investment contract income
19,393 19,025 38,149
Collection income
4,861 5,519 9,519
Bad debts recovered
885 618 1,147
Other revenue
2,619 1,456 2,163
185,021 164,585 342,029
Other income includes:
Gain on sale of investments
- 502502
Dividend income
- 4545
Gain of sale of property, plant and equipment
187 86 270
Gain on modification of a lease
- 23 60
Government subsidies
69 1,515 1,580
Other
-- 30
256 2,171 2,487
Revenue from contracts with customers
Over time
Automotive retail
Commission and other sales revenue
13,27811,79124,700
At a point in time
Automotive retail
Sales of goods
94,841 85,003 182,435
Auction commissions
20,542 16,090 31,116
Credit management
Collection income
4,611 5,479 9,424
Voucher income
250 40 95
Insurance
Motor vehicle insurance commissions
5665001,012
4. SHARE CAPITAL AND EARNINGS PER SHARE
30/09/202230/09/202131/03/2022
UnauditedUnauditedAudited
Number of ordinary shares
Opening balance
86,069,248
85,544,24885,544,248
Shares issued for staff options
525,000
525,000525,000
Shares issued for empolyee share scheme
105,999
--
86,700,24786,069,24886,069,248

TURNERS AUTOMOTIVE GROUP LIMITED
Basic earnings per share
Six monthsSix monthsYear
endedendedended
30/09/202230/09/202131/03/2022
UnauditedUnauditedAudited
Profit for the Period ($'000) 17,090 16,867 31,281
Weighted average number of ordinary shares at the end of the period
86,337,400
85,868,42885,968,563
Basic earnings per share (cents per share)
19.79
19.6436.39
Weighted number of shares
Opening balance
86,069,248
85,544,24885,544,248
Shares issued for staff options
246,721
324,180424,315
Shares issued for empolyee share scheme
21,431
--
86,337,40085,868,42885,968,563
Diluted earnings per share
Six monthsSix monthsYear
endedendedended
30/09/202230/09/202131/03/2022
UnauditedUnauditedAudited
Continuing operations ($'000) 17,090 16,867 31,281
Add: Long term incentive expense relation to options ($'000)
72 118 359
Profit for the year ($'000)
17,162 16,985 31,640
Weighted number of ordinary shares (diluted)
Weighted average number of shares (basic)
86,337,400
85,868,42885,968,563
Effect of the exercise of options 482,541798,736 841,642
Weighted average number of shares (diluted)86,819,94186,667,16486,810,205
Diluted earnings per share (cents per share)
19.77
19.6036.45
5. CASH AND CASH EQUIVALENTS
30/09/202230/09/202131/03/2022
UnauditedUnauditedAudited
$'000$'000$'000
Cash and cash equivalents
17,711 14,195 13,373
6. FINANCE RECEIVABLES
30/09/202230/09/202131/03/2022
UnauditedUnauditedAudited
$'000$'000$'000
Gross finance receivables
438,556 375,520 421,102
Deferred fee revenue and commission expenses
13,915 11,871 12,788
Provision for impairment
(7,932) (13,665) (9,338)
COVID-19 overlay
(1,482) (1,411) (1,682)
443,057 372,315 422,870
Fair value
433,162 370,009 421,403
The calculation of basic earnings per share at 30 September and 31 March was based on the profit attributable to ordinary shareholders and weighted average
number of ordinary shares outstanding, as follows:
The calculation of diluted earnings per share at 30 September and 31 March was based on the diluted profit attributable to shareholders and a diluted weighted
average number of ordinary shares outstanding as follows:
The Group's insurance business is required to comply with the solvency standards for licensed insurers issued by the Reserve Bank of New Zealand. The
solvency standards specify the level of assets the insurance business is required to hold in order to meet solvency requirements, consequently all cash and cash
equivalents held in the insurance business may not be available for use by the wider Group. The Group's insurance business' cash and cash equivalents at 30
September 2022 were $1.2m (30 September 2021: $1.7m; 31 March 2022: $1.5m).
Cash and cash equivalents at 30 September 2022 of $3.9m (30 September 2021 :$3.3m; 31 March 2022: $3.4m) belongs to the Turners Marque Warehouse
Trust 1 and is not available to the Group.
The fair values are based on cash flows discounted using a weighted average interest rate of 11.40% (30 September 2021: 11.42%; 31 March 2022: 11.23%).

TURNERS AUTOMOTIVE GROUP LIMITED
Securitisation
7. BORROWINGS
30/09/202230/09/202131/03/2022
UnauditedUnauditedAudited
$'000$'000$'000
Secured bank borrowings
430,827 373,466 412,588
Deferred borrowing costs
---
430,827 373,466 412,588
Non-bank borrowings
Motor Trade Finance- 871 173
Total borrowings 430,827 374,337 412,761
Fair value 430,827 372,473 407,347
Secured bank borrowings
Motor Trade Finance
Turners Finance Limited has a finance faclity wih Motor Trade Finance Limited (MTF). MTF provided the services of a finance company, including funding, on a
full recourse basis.
The Group has a wholesale funding facility with the Bank of New Zealand (BNZ) under which it securitises finance receivables through The Turners Marque
Warehouse Trust 1 (the Trust). Under the facility, BNZ provide funding to the Trust secured by finance receivables sold to the Trust from the finance segment.
The facility is for a 1 year term that will be renewed annually. The facility is for $331m.
The Trust is a special purpose entity set up solely for the purpose of purchasing finance receivables from the finance sector with the BNZ funding up to 89% (30
September 2021 & 31 March 2022: 92%) of the purchase price with the balance funded by sub-ordinated notes from the Group. The New Zealand Guardian
Trust Company Limited has been appointed Trustee for the Trust and NZGT Security Trustee Limited as the security trustee. The Company is the sole
beneficiary.
The Group has the power over the Trust, exposure, or rights, to variable returns from its involvement with the Trust and the ability to use its power over the Trust
to affect the amount of the Group's returns from the Trust. Consequently the Group controls the Trust and has consolidated the Trust into the Group's financial
statements.
The Group retains substantially all the risks and rewards relating to the finance receivables sold and therefore the finance receivables do not qualify for
derecognition and remain on the Group's consolidated statement of financial position.
During the reporting period $125.6m finance receivables were sold to the Trust (30 September 2021: $116.0m; 31 March 2022: $247.1m). As at 30 September
2022 the carrying value of financial receivables in the Trust was $354.2m (30 September 2021: $296.8m; 31 March 2022: $329.9m).
In September 2022 the Group has a syndicated funding facility, including a 1 year working capital facility, with the Bank of New Zealand and ASB Bank, a self
liquidating trade finance facility and three year term facility with ASB Bank and a securitisation facility with the Bank of New Zealand.
The bank borrowings are secured by a first-ranking general security agreement over the assets of the Company and its subsidiaries, excluding DPL Insurance
Limited, Turners Finance Limited and EC Credit (Aust.) Limited. The Group's securitisation financing arrangement is described under finance receivables.

TURNERS AUTOMOTIVE GROUP LIMITED
8. ASSETS AND LIABILITIES CARRIED AT FAIR VALUE
Level 1Level 2Level 3Total
$'000$'000$'000$'000
30/09/2022 (unaudited)
Fair value assets:
Financial assets at fair value through profit or loss - insurance- 7,193- 7,193
Financial assets at fair value through profit or loss - investment in equities----
Financial assets at fair value through profit or loss - term deposits 58,975-- 58,975
Investment property-- 5,950 5,950
Derivative financial instruments- 7,146- 7,146
58,975 14,339 5,950 79,264
30/09/2021 (unaudited)
Fair value assets:
Financial assets at fair value through profit or loss - insurance- 8,436- 8,436
Financial assets at fair value through profit or loss - investment in equities- 13- 13
Financial assets at fair value through profit or loss - term deposits 57,000-- 57,000
Investment property-- 5,950 5,950
Derivative financial instruments- 1,864- 1,864
57,000 10,313 5,950 73,263
31/03/2022 (audited)
Fair value assets:
Financial assets at fair value through profit or loss - insurance- 8,259- 8,259
Financial assets at fair value through profit or loss - term deposits 61,940-- 61,940
Investment property-- 5,950 5,950
Derivative financial instruments
- 5,414- 5,414
61,940 13,673 5,950 81,563
9. DIVIDENDS
Six monthsSix monthsYear
endedendedended
30/09/202230/09/202131/03/2022
UnauditedUnauditedAudited
$'000$'000$'000
6,062 5,164 5,164
-- 4,303
-- 4,303
-- 5,164
Total dividends provided for or paid 6,062 5,164 18,934
Dividends not recognised at the end of the half year:
-- 6,062
4,358 4,303-
4,335 4,303-
10. COMMITMENTS
Capital Expenditure
Quarterly dividend for the year ended 31 March 2022 of $0.06 per fully paid ordinary share, imputed,
paid on 20 April 2022.
Quarterly dividend for the year ended 31 March 2023 of $0.05 (31 March 2022: $0.05) per fully paid
ordinary share, imputed, payable on 27 October 2022 (2022: 28 October 2021).
Quarterly dividend for the year ended 31 March 2023 of $0.05 (31 March 2022: $0.05) per fully paid
ordinary share, imputed, payable on 26 January 2023 (2022: 27 January 2022).
Quarterly dividend for the year ended 31 March 2022 of $0.05 per fully paid ordinary share, imputed,
paid on 28 October 2021.
Quarterly dividend for the year ended 31 March 2022 of $0.05 per fully paid ordinary share, imputed,
paid on 27 January 2022.
Final dividend of $0.07 for the year ended 31 March 2022 (31 March 2021 of $0.06) per fully paid
ordinary share, imputed paid on 28 July 2022 (28 July 2021).
The fair value of financial assets and liabilities carried at fair value are summarised in the table below. The methods used to calculate fair value are the same as
those applied when preparing the Group's Annual Report for the year ended 31 March 2022 (refer note 5.5 in the Annual Report for the year ended 31 March
2022. During the period there were no movements of fair value assets or liabilities between levels of the fair value hierarchy.
At balance date, the Group has committed to the purchase of three properties. This has resulted in capital commitments of $15,700,000 (30 September 2021:
$nil; 31 March 2022: $18,000,000).
In addition to the above dividends, since the end of the period the directors have recommended the payment of the following dividends expected to be paid out of
retained earnings at 30 September 2022 (30 September 2021; 31 March 2022, but not recognised as a liability at the end of the period:
Final dividend of $0.07 per fully paid ordinary share, imputed, payable on 28 July 2022.