NZX Virtual Investor Event – Turners Presentation

1• NZX VIRTUAL INVESTOR EVENT -TURNERS AUTO GROUP
NZX Virtual Investor
Event
May 2023
Todd Hunter –Group CEO

2• NZX VIRTUAL INVESTOR EVENT -TURNERS AUTO GROUP
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.

3• NZX VIRTUAL INVESTOR EVENT -TURNERS AUTO GROUP
We love cars
3• NZX VIRTUAL INVESTOR EVENT -TURNERS AUTO GROUP

4• NZX VIRTUAL INVESTOR EVENT -TURNERS AUTO GROUP
1967
1984
2014
Turners has been formed through the 2014 merger of New Zealand's largest vehicle and machinery
retailer, Turners Auctions, and leading consumer finance and insurance business, Dorchester
Turners Auctions was established in 1967 when Turners and Growers Limited began auctioning
cars and trucks alongside its fruit and produce business
Today, Turners is New Zealand's largest auction house and vendor of second hand cars, trucks
and machinery
Dorchester was incorporated in 1984 as Venture Pacific Limited. The company became
Dorchester Pacific Limited in 1992
Over the following years, Dorchester developed a core financial services base through the
acquisition of a number of finance companies throughout New Zealand aligned to its consumer
finance and insurance strategy
In 2014, Dorchester launched a successful takeover offer for Turners Auctions and
consolidated its interests into a single entity that carried the Turners name
The decision to continue the Turners brand recognised the rich history and consumer
recognition attached to it
History of Turners Automotive Group
2017
In 2017, Turners Limited changed its name to Turners Automotive Group to enable a Foreign
Exempt Listing on the ASX and to reflect the focus of the group on the automotive sector

5• NZX VIRTUAL INVESTOR EVENT -TURNERS AUTO GROUP
Overview of Turners Automotive Group
NZX and ASX listed business with over 50 years of heritage
700+ kiwis employed and 4,500 shareholders
FY22
$242.5m revenue
$19.4m profit
8% market share
FY22
$51.9m revenue
$18.0m profit
12% of auto loan market
FY22
$40.4m revenue
$11.6m profit
50% of Mechanical breakdown
insurance market
FY22
$9.7m revenue
$3.0m profit
20% of NZ debt collection market
54th largest
company on NZX
by free float
market cap

6• NZX VIRTUAL INVESTOR EVENT -TURNERS AUTO GROUP
Turners building a strong and sustainable business with a
proven track record...
* Dividends fully imputed from FY17 onwards
-8.5
45.5
84.7
109.6
15.1
41.9
63.7
79.2
-20.0
-
20.0
40.0
60.0
80.0
100.0
120.0
FY11 - FY13FY14 - FY16FY17 - FY19FY20 - FY22
Total NPBT/NPAT over 3 year period ($m)
NPBTNPAT
0.00
0.23
0.47
0.57
0.0
0.1
0.2
0.3
0.4
0.5
0.6
FY11 - FY13FY14 - FY16FY17 - FY19FY20 - FY22
Aggregate dividends paid over 3 year period (cps)*

7• NZX VIRTUAL INVESTOR EVENT -TURNERS AUTO GROUP
We operate to a simple formula

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Quality
outcomes for our
shareholders
Quality
environment
for our
people
+
Quality
customer
experiences
=

9• NZX VIRTUAL INVESTOR EVENT -TURNERS AUTO GROUP
Quality Environment –our team engagement scores
at all time high
•Having a strong culture and an engaged team is very
important to us, particularly in a service based retail
business and 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.
•In FY23 we launched an Employee Share Scheme with just
under 50% take up
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?”
7
7.5
8
8.5
9
9.5
Aug-20Oct-20Dec-20Mar-21Jun-21Sep-21Nov-21Mar-22Jul-22Oct-22Mar-23

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Our customer experience is market leading, but the job
is not finished...

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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
We are delivering strong returns for shareholders despite
the challenges...
Dividend per Share ($)
Note -Dividends fully imputed from FY17 onwards
•Proven track record of delivering strong, sustainable and
growing dividends in the business
•Directors have declared 16.0 cents YTD in the FY23
year with a final dividend still to be declared but
expected FY23 dividends are 23.0 cents per share.
•Dividend payoutratio is 60-70% of NPAT
•Based on the projected 23.0 cents per share dividend
and a share price of $3.50 this is a gross yield of 9.1%
pa.
COVID
impacted year

12• NZX VIRTUAL INVESTOR EVENT -TURNERS AUTO GROUP
2 HY23 Results

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HY23 Results snapshot
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

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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

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3 Segment Overview

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Regulatory changes driving drop in used car market sales...
•Government regulation Clean Car Standard and Clean Car Discount
continuing to constrain the supply of used vehicles in NZ
•Overall transaction levels down 10% FY22 v FY23.
•34% reduction in used overseas imports to 90k units.
•Demand for higher value cars is moderating and shifting into the
lower price point segments.
•Turners car unit sales up 14% FY23 v FY22
NZ Used Car Change of Ownerships (000s)
Source NZTA
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
0
200
400
600
800
1,000
1,200
FY19FY20FY21FY22FY23
Turners cars Sales
NZ Used car Market Transations
NZ MarketTurners Sales

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AutoRetaildivision
•Market share gains through brand promotion and retail
optimisation initiatives.
•New branches performing well-Nelson and Rotorua and
pipeline of new branches and upsize existing branches
developing well
•Speed to sale initiatives leading to more sales on lower
inventory levels.
•Big opportunity to transfer sales from our wholesale
auction channel (49% of sales or 18,500 units) into our
retail channel...margin and yield uplift
•Damaged vehicle sales will continue to rise with aging
fleet
0
10
20
30
40
50
60
70
80
90
100
2011201320152017201920212023
Search interest in topic
'Turners Cars''Used Cars'
Source -Google search trends
Turners brand becoming synonymous with used car sales
Branch expansion and retail optimisationkey areas of focus

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Financedivision
•Growth has moderated as quality and margin becomehigher
priorities.
•Our borrower “quality” metrics continue to improve
•Finance division profitability has been impacted by fastest
increasing interest rate cycle in history...but this will revert.
•Growth in Turners Cars business has halo impact for Oxford.
•Arrears tracking well below pre-covidlevels and at half of the
wider auto loan portfolio (2.6% v 5.4% at Mar-23)
Average Credit Score
Average consumer CENTRIX
credit score
Average Centrix
auto loan
portfolio score
Improving credit quality and maintaining margin key focus areas given environment

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Insurancedivision
•Market share gains continuing to provide robust policy sales
despite challenging market conditions.
•Risk pricing continues to be refined
•Digital distribution arrangements continuing to work well with
further opportunities in pipeline
•Claims Costs inflation being offset by frequency of claims
reducing due to changes in consumer behavior (WFH and
cost of living)
•Pandemic and weather events have confirmed no
catastrophe risk in portfolio, and our de-risking strategy has
worked effectively
Mechanical Breakdown Insurance Loss Ratio Performance
66%
60%
58%
58%
FY20FY21FY22FY23
Growing market share and focus on digital distribution

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Creditmanagement
•Consumer arrears are on the increase to 11.8%
of the credit active population (11.3% in Mar-22)
•Debt load up for EC Credit Control in FY23 v
FY22 and expecting this to gather pace as
economic conditions deteriorate
Debt load growing as economic conditions deteriorate
Consumer Arrears Trend
Source –Centrix Credit Bureau

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4 Outlook

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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

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•Latest guidance issued early March-23 where we reiteratedguidance given at the HY23 results announcement.
•The company is now on track for FY23 profit before tax to be at least $44.0m (FY22: $43.1m).
•Trading in Q423 has seen no significant change to the market dynamics we were experiencing in Q3:
—Auto retail: Car sales in our business continue to hold up well, market share continues to grow across new and
existing sites, margins are stable. Site expansion strategy working well and developing a pipeline of further
opportunities.
—Finance: The impact of a higher interest rate environment is increasing, the expected deterioration in arrears
occurred over December and January, however the loan book is stable and arrears improved in February.
—Insurance: Claims continue to track below expectations and investment returns improving.
—Credit: Debt load recovering, but more slowly than expected.
Outlook –FY23 Guidance

24• NZX VIRTUAL INVESTOR EVENT -TURNERS AUTO GROUP
Key Messages
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.

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We love cars
25• NZX VIRTUAL INVESTOR EVENT -TURNERS AUTO GROUP

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Contact
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