Letter to Shareholders

Dear Shareholder
The Turners Limited Annual Report for the year ended 31 March 2023 is now available. We invite you to
read this on our website at www.turnersautogroup.co.nz/Investor+Centre/Investor+Reports.html.
When we presented our annual report last year, we said that our business had never been in better shape
and we were ready for whatever came next. This sentiment has been proven true over the FY23 financial
year. Despite challenging economic and market conditions, Turners has reported record earnings, market
share gains and margin improvements.
This result is particularly pleasing in an environment where costs are up significantly due to inflation,
interest rates have never increased faster, there has been more government regulation in finance and
vehicle markets than ever before, and market demand is down....Turners has continued to perform.
This year’s record earnings result underscores our well-founded confidence in the resilience of the used
car market through the cycle but also the formula we operate the business to. Great employee experience
gives us the best chance of providing a great customer experience and these two things combined should
deliver great shareholder value.
Given the strong profit performance over the year, Directors declared a final dividend of 7 cps (payable in
July 2023), taking FY23 dividends to 23.0 cps, matching last year’s strong result.
Turners’ dividend reinvestment plan (DRP) will be available for the final dividend with a 2% discount
applied for those taking up the DRP. You can read a copy of the full DRP offer document at
www.turnersautogroup.co.nz/investor-centre/. Eligible investors wishing to take up the DRP must
register by 5.00pm NZT on 12 July 2023. Any applications received on or after this time will be applied
to subsequent dividends. If you have any queries on the DRP, please contact Computershare by emailing
drp@computershare.co.nz or by calling 09 488 8777.
As we head into an economic environment that will offer up different challenges and opportunities, the
business has already been significantly de-risked. We achieved the FY24 profit target of $45m, which
we set in FY21, 12 months’ ahead of time and are now focused on our FY25 target of $50m profit before
tax. We remain confident about our growth, however, are very mindful of the macro challenges still in
the market, particularly the headwinds in Finance. If interest rates start to cycle down by the second half
of this calendar year, then our modelling shows we will remain on track to achieve our target by FY25. If
interest rates continue to rise, then it is likely our timing will push out to FY26.
Looking beyond FY24 we remain confident that our growth model is broadly on track. On behalf of the
Board and management, we would like to thank shareholders for your continued support.
Grant Baker Todd Hunter
Chairman Group Chief Executive Officer
“Our company continues to
demonstrate resilience no matter
what the operating conditions.
This year’s strong performance
is very pleasing and reflects the
success of our diversification
strategy, our de-risking initiatives
as well as the quality of our team”.
WE’RE GETTING
STRONGER

FY23 AT A GLANCE
Turners continues to achieve strong results in challenging conditions
and to strengthen its position for the next upcycle.
KEY FINANCIAL HIGHLIGHTS
PECENTAGE INCREASES FY22:FY23
■
Revenue up 13% to $389.6m
■
EBIT
1
increased 9% to
$52.2m
■
Net profit before tax up 6%
to $45.5m
■
Net profit after tax
increased 4% to $32.6m
■
Full year dividend 23.0 cps,
equating to a gross yield of
8.5% per annum based on a
share price of $3.75
■
Earnings per share 37.6
cents per share, an increase
of 3% year on year
■
Record earnings demonstrating sustainable earnings
platform and strategic value of diversification and
de-risking strategies over recent years.
■
Strong performance despite challenging economic
trends and changes in market conditions.
■
Auto Retail: Market share gains and margin
improvement driving record earnings. Expecting
further market share gains as branch network
expands.
■
Insurance: Strong policy sales in a declining market
and improved claims ratios. Distribution and market
share gains expected to drive buoyant sales.
■
Finance: Solid revenue growth, however, impacted
by rapid interest rate rises driving a near term drag
on earnings. Well placed to grow again once interest
rates stabilise.
■
Credit management: Debt load increased
albeit from lower quality debt. Well
positioned for the next stage of the
credit cycle.
■
Employee engagement levels remain at
record levels and are a core part of the
competitive advantage of Turners Auto Group.
■
Employee Share Scheme launched with almost
50% take up.
■
Diversified business is well-placed to deliver
further growth as well as offering solid returns to
shareholders.
1
EBIT adjusted for interest expense in Finance (non-IFRS measure,
NPAT $45.5m and interest paid $19.9m less Finance segment
interest $13.2m).