2CC ASM Presentation

ANNUAL
SHAREHOLDERS’
MEETING
28September2023

Board of Directors &
Senior Management
2CHEAPCARS GROUPLIMITED| 2023 ASM PRESENTATION
Michael Stiassny
Independent Director|Chair
Gordon Shaw
Independent Director
Paul Millward
CEO
Angus (Gus) Guerin
CFO
David (Yusuke) Sena
ExecutiveDirector|Co-Founder

Shareholder & Proxyholder
Q&A participation
Written questions
Questions may be submitted ahead of the
meeting. If you have a question to submit during
the live meeting, please select the Q&Atab on the
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Help
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help. If you need assistance, please submit your
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Questions
2CHEAPCARS GROUPLIMITED| 2023 ASM PRESENTATION

Shareholder & Proxyholder voting
Once the voting has been opened, the resolutions
and voting options will allow voting.
To vote, simply click on the Votetab, and select
your voting direction from the options shown on
the screen. You can vote for all resolutions at once
or by each resolution.
Your vote has been cast when the tick appears.
To change your vote, select Change Your Vote.
Voting process
2CHEAPCARS GROUPLIMITED| 2023 ASM PRESENTATION

1.
CHAIRMAN’S ADDRESS
MichaelStiassny,Chair
2.
CEO’S ADDRESS
PaulMillward,CEO
3.
FINANCIAL UPDATE
AngusGuerin,CFO
4.
RESOLUTIONS
5.
GENERAL BUSINESS + Q&A
Agenda
2CHEAPCARS GROUPLIMITED| 2023 ASM PRESENTATION

CHAIRMAN’S
ADDRESS
2CHEAPCARS GROUPLIMITED| 2023 ASM PRESENTATION

CEO’S
ADDRESS
2CHEAPCARS GROUPLIMITED| 2023 ASM PRESENTATION

$
2.0
M
$
$
82.7
M
1.3
M
up 18% from $1.7m
up 25% from $66mdown ($1.3m) from $2.6m
FY23 Underlying NPATRevenue and incomeNPAT
*(includes$1.0mrestructuring&non-recurring costs)
*
$
0.8
M
$
3.8
M
up (representing 40% of full year profit)up 18% quarter-on-quarter
Q4 Underlying NPATRetailcontributionmargin
0.0
CPS
$
10.9
M
4.4
CPS
down from 3.1 cps
up $10.3m from $0.6m
up from 3.7 cps
Operating cash flow –
ex.lending
DividendUnderlying EPS
2CHEAPCARS GROUPLIMITED| 2023 ASM PRESENTATION
FY23 Summary

2CHEAPCARSGROUPLIMITED|2023 ASM PRESENTATION
PROGRESSMADE NEXT STEPS
LEADERSHIP
1.
SUPPLY
CHAIN
Howtogrow
Wheretowin
Focused strategy
Winning by leveraging strengths
GROSS
MARGIN
EXPANSION
3.
DIGITAL
4.5.
CUSTOMER
EXPERIENCE
6.
OUR PEOPLE
Expand hub
capabilitiesforvalue
Leadsupplyof
affordableEV&HEVs.
Leveragescalefor
efficiencies
Broadershipping
strategy
Nationalfootprint
forwiderreach
Clear“winurban”
propertystrategy
Refurbish
dealerships
Relevantbrand
programmeto
connect
IncreaseFinance
& Insurance
Accelaratedigital
application and
fulfilment
Rightvalue
proposition
Costand value
programme
Refinefull end-to-
endonline buying
process
Executeon
customerinsights
Digitalplatformto
“make iteasy”
Deepen connection
with138k+followers
on social
Investincustomer
careteam
Customer
satisfactioneveryday
Delivercustomer
valuethrough
partnerships
Health&safety
Developinclusive
leaders
Unlockahigh-
performanceculture
Capabilityinvestment
forfrontlinestaff
Talentbench
2.
RETAIL
FOOTPRINT

• Used car availability improving, but still tight
due to ongoing shipping issues
• 20% of cars are more than 20 years old
• Car repairs increasingly uneconomical for
insurers and consumers
• Increasing number and severity of weather
events causing vehicle damage
• Registered dealer numbers in decline–trend
expected to continue
• Significant barriers to efficiently import at
scale
• New vehicle sales under pressure –people
downtrading or holding for longer
• Increased demand for used cars from $8k-$12k.
Low cost, cost efficientretail is the sweet spot
2CHEAPCARS GROUPLIMITED| 2023 ASM PRESENTATION
40,000
45,000
50,000
55,000
60,000
65,000
70,000
75,000
80,000
85,000
90,000
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
Oct-22
Jan-23
Apr-23
Jul-23
TradeMe used car listings last 5 years
Favourable market dynamics

New & better branches
driving profitable growth
• 12 branches: 7 in Auckland plus Hamilton, Tauranga,
Palmerston North, Wellington & Christchurch
•Strong where it matters most – Auckland
•Christchurch to double in size – phase one growth
commenced (now 3200m2)
• Closures where prudent –Napier
• New yards require minimal capital investment
• Two-tiered site strategy –mega & satellite
• Low overheads to run additional sites
• Refurbishment plans being progressed
2CHEAPCARS GROUPLIMITED| 2023 ASM PRESENTATION
Retail footprint strategy

0.1
0.6
0.4
2.8
2.2
2.6
4.4
3.4
4.2
3.8
2.6
1.3
5.45
6.5
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 (F) 2025 (F)
NPAT (M)
Profitable growth levers
•
Footprint expansion where right
•
Increased vertical integration
•
Hub efficiency
•
Vehicle entry compliance growth
•
Shipping stability
•
Finance and insurance focus
•
Data-driven pricing
•
Assumes foreign exchange, supply
and regulatory stability
FY25 Ambition

$6.5m by FY25
Pre-IPO
FY24
Guidance
midpoint
FY25
Ambition
*(F) = Forecast

2CHEAPCARS GROUPLIMITED| 2023 ASM PRESENTATION
FINANCIAL
UPDATE

3,047
down17% from 3,650
Vehicles sold
30%
up from 26%
Finance penetration
2CHEAPCARS GROUPLIMITED| 2023 ASM PRESENTATION
$
2.4
M
$
4.0
M
Revenue
up 6% from 18%
up $1.7m from $0.7m
NPAT
Gross margin
24%
$
34.1
M
up1% from $33.8m
Operating cashflow
up $0.3m from $3.7m
FY24 YTD (August) update
0%
5%
10%
15%
20%
25%
30%
450
500
550
600
650
700
750
800
850
AprMayJunJulAug
Gross margin %
Vehicle sales
FY23 Gross margin %FY24 Gross margin %
FY23 Vehicle salesFY24 Vehicle sales

2CHEAPCARS GROUPLIMITED| 2023 ASM PRESENTATION
$
5.2-5.7
M
up from 18%
up from $1.3m
NPAT
Gross margin
~23%
3.8
2.6
1.3
5.45
2021202220232024 F
NPAT (M)
Guidance
midpoint
Dividend CPS
up 10.0 from 0.0 cps
•
Dividend policy – payout ratio 50%-60% of NPAT
•
Based on the projected 10c per share and a share price of
[62c] this is a gross yield of [16%]
7.00
2.22
0.88
00
5.00 5.00
Jun 21Dec 21 Jun 22 Dec 22 Jun 23 Dec 23 (F) Jun 24 (F)
FY24 Outlook
*(F) = Forecast

2CHEAPCARS GROUPLIMITED| 2023 ASM PRESENTATION
RESOLUTIONS

1. That the Board be authorised to fix the auditor’s remuneration.
2. That, for the purposes of rule 7(c) of the Takeovers Code, the acquisition
of 13,679,934 ordinary shares in the Company by David (Yusuke) Sena
and Tompkins Wake Trustees 2022 Limited (as trustees of the Sena
Family Trust) from Eugene Hamilton Williams and TLR Williams Trustee
Company Limited (as trustees of the E & Co Trust), pursuant to the
Agreement for Sale and Purchase of Shares in 2 Cheap Cars Group
Limited is approved.
Shareholder resolutions

Abstain*DiscretionaryAgainstForResolution
48,858600,3478,9515,199,849
That the Board be authorised to fix the auditor’s
remuneration.
190,354322,954376,7714,967,926
That, for the purposes of rule 7(c) of the
Takeovers Code, the acquisition of 13,679,934
ordinary shares in the Company by David
(Yusuke) Sena and Tompkins Wake Trustees
2022 Limited (as trustees of the Sena Family
Trust) from Eugene Hamilton Williams and TLR
Williams Trustee Company Limited (as trustees
of the E & Co Trust), pursuant to the Agreement
for Sale and Purchase of Shares in 2 Cheap Cars
Group Limited is approved.
*Votes cast by a shareholder who abstains on an item are not counted in the calculation of the required majority.
Proxy voting results

2CHEAPCARS GROUPLIMITED| 2023 ASM PRESENTATION
GENERAL BUSINESS
Q&A

2CHEAPCARS GROUPLIMITED| 2023 ASM PRESENTATION
THANK YOU

2CHEAPCARS GROUPLIMITED| 2023 ASM PRESENTATION
Important notice & disclaimer
Thispresentationisgivenonbehalfof2CheapCarsGroupLtd(2CC)(NZX:2CC).
Informationinthispresentationisforgeneralinformationpurposesonlyandis
notanofferorinvitationforsubscriptionorpurchaseof,orarecommendationto
investin2CCsecurities.
Thepresentationshouldbereadinconjunctionwith,andissubjectto,2CC’slatestsetoffinancial
statementsfortheperiodended31March2023,andothermarketreleasesandinformationreleasedon
the NZX.
Thepresentationincludesforwardlookingstatementsabout2CCandtheenvironmentthatitoperates
in,whicharesubjecttouncertaintiesoutsideof2CC’scontrol.2CC’sresultsorperformancemayvary
fromthesestatements.Alsoincludedarestatementsrelatingtopastperformance,whichshouldnotbe
regardedasareliableindicatoroffutureperformance.
Thepresentationmaycontaininformationfromthirdpartiesbelievedtobereliable,butno
representationsorwarrantiesaremadeastotheaccuracyorcompletenessofsuchinformation.
Non-GAAPandnon-IFRSmeasuresareusedby managementandtheBoardbelievetheyprovideuseful
informationforreaderstoassist intheunderstandingof2CC’s financialperformance.
Non-GAAPandnon-IFRSmeasuresdonothaveastandardisedmeaningprescribed by GAAP and
shouldnotbe viewedinisolationorbeconsideredsubstitutesformeasuresreportedin
accordancewithNZIFRS. Further, they may not be comparable to similar financial information
presented by other entities. Thesemeasureshavenotbeenindependentlyauditedorreviewed.
•Numbers related to FY24 to 31 August 2023 are unaudited.
•All currency amounts are presented in NZ dollars, unless otherwise stated.
•Authorised for release by the Board of Directors.

---

28 September 2023

Market Announcement
NZX:2CC



2CC ASM SCRIPT


SLIDE 1 – 2CC 2023 ANNUAL SHAREHOLDERS’ MEETING

Michael Stiassny
Mōrena, good morning and thank you for making the time to join us this morning.
My name is Michael Stiassny, Chairman of 2 Cheap Cars Group Limited. As it’s now 10.00am, I am
pleased to open the 2 Cheap Cars Annual Shareholders’ Meeting.

SLIDE 2 – BOARD AND MANAGEMENT

On behalf of my fellow Directors, welcome to all of you here at the Ellerslie Event Centre as well as
those who have joined via the Computershare webcast. This is your meeting, and we thank you for
taking the time to join us today.

With me this morning are directors David Sena and Gordon Shaw, our Chief Executive, Paul Millward,
and our Chief Financial Officer Angus Guerin. Our lawyers from Minter Ellison Rudd Watts are in the
room and our Auditors, UHY Haines Norton are present online.

This is a hybrid meeting, so before we start the meeting proper, there are separate housekeeping
matters to cover off. We appreciate your patience.

For those in the room:
 If you have a cell phone, please switch it off.
 If we need to evacuate this room for any reason, there are exits to your left through the
Mitchelson Lounge and also the entrance you came through.
 In the event of an emergency, please listen to the instructions from the 2 Cheap Cars staff,
Gemma & Joel.
 Bathroom facilities are located in the Mitchelson lounge which is the room to your left
 If you are feeling unwell, please advise one of our staff who will assist you.
For those who are attending the meeting online:
 We ask that you follow the information provided in the Notice of Meeting regarding voting and
asking questions.

 Should you require any assistance, you can type your query and one of the Computershare
team will assist, or alternatively, you can call Computershare on
09 488 7800.

SLIDE 3 – QUESTIONS

Please note that only shareholders and proxies can ask questions and submit votes.
I encourage all of you attending online to submit questions via Computershare at any time during the
meeting. If you have a question, click the Q&A tab on the right half of your screen. Type your
question into the field and press send. Your question will be submitted immediately. Specific
questions on any of the resolutions to be considered will be answered as the relevant resolution is put
forward, while general questions will be addressed later in the meeting.

Questions may be moderated, or if we receive multiple questions on a topic, they may be
amalgamated. If we run out of time to answer all questions during this meeting, we will answer them
directly via email and post the responses on our website.

To any media present – welcome. Just a reminder that this is a meeting for shareholders, but Paul
and I will be happy to talk to you after the meeting.

SLIDE 4 – VOTING PROCESS

Voting today will be by way of a poll on all items of business. To provide you with enough time to vote,
I will shortly open voting for all resolutions.

At that time, if you are eligible to vote at this meeting, you will be able to cast your vote under the Vote
tab. To vote, simply select your voting direction from the options shown on screen. You can vote for
all resolutions together, at once, or for individual resolutions. When the tick appears, your vote has
been cast. To change your vote after that time, simply select ‘Change Your Vote’. You can do this
until I declare voting closed.

I now declare voting open on all items of business. The resolutions will be open in the vote tab, you
may submit your votes at any time, and I will let you know in advance that voting will be closing.

SLIDE 5 – AGENDA

Here is today’s meeting agenda.

We will provide you with an update on last year’s performance, our strategy, and the progress we’ve
made at 2 Cheap Cars in recent months.

Following these presentations, we will move to the formal resolutions set out in the Notice of Meeting,
followed by general business and questions.

Finally, we hope that those of you here at Ellerslie will join us for refreshments at the conclusion of the
meeting.

Let’s now move on to the formal part of the meeting.
Apologies
Are there any apologies?
(If not:) Thank you.
(If yes:) Thank you, I will ask the Secretary to record those in the minutes.

Quorum
The Company’s constitution prescribes a quorum requirement of five shareholders present in person,
or by representative participating by audio, audio and visual or electronic means.
As confirmed by Computershare, this requirement has been met.

Proxies
In addition to those attending in person today, 60 shareholders, holding a total of 5,858,005 shares,
have appointed proxies (including proxies instructed to abstain). The appointed proxies represent
12.86% of all shares.
In my capacity as Chairman of the meeting and in my own name I hold proxies for 39 shareholders,
representing 4,885,458 shares, or 10.72% of all shares.
I intend to vote all undirected proxies I have received in favour of resolutions 1 and 2.

Annual Report and Notice of Meeting
The annual report was made available on 2 Cheap Cars’ website on the 29
th
of June 2023.
The Notice of Meeting was uploaded to the NZX and sent to shareholders and other persons entitled
to receive it on 30
th
August 2023.

I propose that we take the Annual Report and Notice of Meeting as read.

SLIDE 6 – CHAIR’S OPENING REMARKS

Michael Stiassny
It is good to be standing here today with the 2 Cheap Cars share price sitting at [62 cents], FY24 profit
guidance increased to between $5.2m and $5.7m, and to be able to reaffirm guidance that the
Company still intends to recommence dividend payments. Good news that I am sure will be
welcomed by you all.

The 2 Cheap Cars dividend policy is to pay 50% to 60% of NPAT. Based on the midpoint of our latest
guidance, this would translate to a gross interim dividend of five cents per share and a full year
dividend at a similar level.

Please note that the Board makes final decisions regarding dividends only once results are approved
at the half and full year, in accordance with our dividend policy, and acting prudently based on
information available at that time. To the extent expectations change, we will update the market.

When the new board was appointed little more than a year ago, we had a clear goal – to stabilise
what was then, a broken Company. We have reset the Company’s foundations to focus on profitable
growth, and importantly, to restore shareholder value.

That rebuild is now complete with the appointment of a new management team, new bankers and
auditors, a singular focus on selling affordable vehicles and a market brand that does what it says on
the can ... 2 Cheap Cars.

This is a no-frills business. We have returned to its successful, profitable pre-listing roots by stripping
out unnecessary cost, leveraging its supply chain dominance and strengthening focus on expanding
gross margins. Our recent guidance upgrade suggests that 2 Cheap Cars will achieve record profit for
FY24.

This turn around has not been without difficulty. The relationship breakdown between original co-
founders, David Sena and Eugene Williams has been acrimonious, distracting for the business both
from a governance and operational viewpoint, and detrimental for shareholder value.

Today you will be voting on whether to approve a transaction that will see David Sena and related
parties acquire the approximately 30% stake held by Eugene Williams and his interests. As outlined in
the Notice of Meeting, your independent directors believe that this transaction is in the best interests
of all shareholders as it will ensure the Company can move forward positively at pace, without further
disruption and distraction.

We were pleased to see our view supported by the New Zealand Shareholders Association, following
David’s discussions with them aimed at protecting the interests of minority shareholders.

David has made a public statement of his intention not to utilise the ‘creep’ provisions of the
Takeovers Code for a period of three years from the date of the share acquisition.

He also intends to maintain a majority of independent directors on the Board; and

enable consultation with minority shareholders and their representatives prior to the appointment of
future independent directors.

These statements of intent and their legal effect were released on NZX on 13 September, and can be
viewed by shareholders there.

I understand that in working with David on these commitments, NZSA has accomplished a first for an
NZX-listed company. I’d like to warmly thank NZSA for engaging so genuinely on these matters and
congratulate them on achieving greater alignment between the interests of major and minority
shareholders.

David is passionate about this business. He is a car man through and through and has been
instrumental in getting 2 Cheap Cars back on track, working hard to improve both its operational
performance and share price. He has an undeniable vested interest in the business achieving
sustainable profitability which clearly benefits all shareholders.

Your independent directors are hopeful that with a vote to approve this transaction, a line can finally
be drawn under the distractions of recent years. We believe that all Shareholders will ultimately
benefit from the Company finally having the stability and aligned vision required to reach its potential.

In closing, I’d just like to acknowledge and thank Paul for his efforts since joining the business in
January. He hit the ground running and the year to date results are testament to his energy and focus.

Importantly, I’d like to thank our shareholders for the patience you have shown as we have righted the
ship. Your board firmly believes the strategy is sound; the brand offering is on point in today’s
economic climate; and the fundamentals are in place to continue to drive improved performance and
profitability.

I’ll now hand over to Paul to take you through our FY23 results and strategy update.

SLIDE 7 – CEO ADDRESS

Paul Millward
Thanks Michael.

It’s a pleasure to be here today to address my first ASM as CEO. I joined in January, and it’s been
rewarding to be part of the transformation that was desperately needed. I do want to acknowledge my
team for all their hard work which has started to create a far more valuable business. I’m enjoying the
challenges of transforming this business and I’m passionate about seeing it reach its significant
potential for both our shareholders and our staff.

SLIDE 8 – FY23 SUMMARY

Before I share our strategy and our ambition, I’ll quickly cover off the highlights from FY23 (to the end
of March).
The Company’s full year revenue and income increased by 25% to $82.7m.

Non-recurring costs of $1.0m associated with board and management changes included in FY23 and
a one-off lease gain of $0.9m in FY22 saw NPAT fall to $1.3m from $2.6m in FY22.

Underlying NPAT, excluding the non-recurring costs, increased by 18% to $2.0m in FY23.

Underlying earnings per share rose from 3.7 cents per share to 4.4 cents per share.

Net operating cash flow excluding lending improved to $10.9m, up $0.6m for the same period the
previous year.

Total vehicles sales increased by 6.1%, whilst our market share reached 4.5%.

As you will be aware, the Board took the prudent decision to retain capital and no final dividend was
paid. However, as Michael mentioned earlier, we are anticipating recommencing dividend payments
at the half year.

In the fourth quarter, it became obvious that decisions taken to stabilise the Company were quickly
beginning to impact results. Underlying NPAT in the fourth quarter was $0.8 million representing 40%
of the full year profit, while retail contribution margin was $3.8 million, up 18% on the prior quarter. We
are pleased to say that this trend has accelerated into the first five months of FY24 which Angus will
share shortly.

SLIDE 9 – FOCUSED STRATEGY

Since joining the Company, my focus has been on resetting the foundations of the business. First up
we appointed new auditors, secured a new finance facility, and reset the business strategy to focus
on the core vehicle retail business and to act as a finance agent.

The rationale for this move was simple – focus must be on what drives value for shareholders and
what we do well, and that is retailing affordable cars. We already have great, profitable third-party
Finance and Insurance solutions, so the NZ Motor Finance loan book remains in run down mode with
the business collecting the receivables to recoup investment.

Reflecting this new focus, NZAI as a corporate brand was retired and replaced with our retail badge ...
2 Cheap Cars. That’s who we are. We’re proud of what we do, we’re privileged to have a strong brand
and it makes sense to connect with and leverage that brand at every single point.

We now have a simple, 6-point strategy to execute, and our commercial success has come about
from total focus on what matters.

Firstly, we are continuing to strengthen our supply chain operations. Our Japanese-based
procurement team is an important part of this, and we are also now undertaking some vehicle entry
compliance activity inhouse which delivers great cost savings and stronger supply chain control. This
means we get vehicles onto yards quicker which then drives sales.

And, taking on additional shipping partners has meant that inventory levels are no longer being
impacted by shipping constraints.

In short, the more we do in-house the more we can manage our value chain.

Electric and Hybrid electric vehicles continue to be a sweet spot for 2 Cheap Cars and accounted for
41% of total sales in FY23, an increase of 65% over the previous year.

Our ability to source quality Hybrids in particular is a real strength and we’re proud to share that year
to date, sales of EVs and hybrids have reached 52% of total sales. We are confident that pain at the
petrol pump will continue to make EVs and HEVs an attractive proposition for our customers.

Our approach to retail is to grow our footprint, but sensibly and over time. We are focused on
strengthening a national dealership that fuels profitable growth. Ultimately, that means ensuring the
right cars in the right locations with the right margin. Our strategic property plan will help us achieve
this and I’ll talk to that shortly.

Gross margin expansion is our key metric for success. We will achieve this through continuing to
increase finance and insurance penetration, accelerating our digital capabilities, and ensuring we
have the right cars in the right places at the right prices.

Our intention is to prioritise margin over market share. Yes - scale is still important in a low-cost
retailer, but delivering profits not market share is what will create value for shareholders.

In the digital space, sales via our website are healthy and we have made good progress refining our
end-to-end online buying process. But there’s plenty of upside still to be had by simplifying the digital
platform and executing on customer feedback. Behind the scenes, we’re working our CRM system a
lot harder to take every sales opportunity.

Customer experience is everything. We have a great reputation and a strong social media following
that we can leverage more. We are confident this is an area that can really deliver for us with stronger
focus and putting customers at the heart of what we do. We have a well-regarded consumer brand,
and the team are very proud of the recognition here including a recently “highly commended” in the
Readers Digest Most Trusted Brand survey.

Finally, people - I’m passionate about building great teams and we’re making progress to ensure we
have strong leaders, a great bench for tomorrow and a culture to attract talent. Health and safety is a
priority and our recruitment and training practices are also being built on to ensure that our team have
the skills and support they need to succeed.

SLIDE 10 – FAVOURABLE MARKET DYNAMICS

So, we have a clear and simple strategy, but the 2CC brand is also well positioned to take advantage
of current market conditions.

While used car availability is generally improving post-pandemic, shipping issues remain and 2CC
has the advantage of now using multiple shipping partners to support consistent delivery and strong
inventory. Our inventory is back to where it should be, but the graph clearly shows the choice
available to Kiwis is down on prior years, so we are ahead of the market here.

More generally, New Zealand is in the midst of a cost-of-living crisis, climate change is creating
weather events causing vehicle damage and the national fleet is ageing. The upshot is that car
repairs are increasingly uneconomic, new vehicle sales are under pressure and we’re seeing an
increased demand for used cars in the $8K to $12K bracket which is precisely where 2CC is
positioned.

And in terms of competitors, we continue to see the numbers of registered car dealers decline and
there remain significant barriers to import at scale.

Simply put, the 2CC strategy coupled with our scale, our brand and market dynamics paints a very
positive and valuable picture for the future.

SLIDE 11 – RETAIL FOOTPRINT

As I mentioned earlier, we have a strategic property plan that will drive profitable growth through new
and better branches in the right locations.

We need to be strong where it matters most – for us that is largely in big urban centres and
specifically Auckland where we currently have 7 branches. We have 9% market share in Auckland,
but the sheer scale of the city means we have further opportunity. We are also doubling the size of
our Christchurch yard, where we see potential for an expanded dealership in a market that is
significant and where our share is low.

We recently closed our Napier branch, not because it was unprofitable, but because there are other,
better opportunities for sustainable scale growth.

Over the next three years, you will see 2CC focus on a two-tiered site strategy with both mega and
satellite sites depending on the scale of the geographic opportunity. The rationale for this approach is
that additional sites require very low overheads to run and given our business model, new yards
require minimal capital investment.

SLIDE 12 – FY25 ambition

What’s next?

We’ve made really good progress getting this business back on a strong footing, with record profits
looking likely based on the current profit guidance.

This graph tracks the fortunes of 2CC since its original inception in 2012. It tells a very clear story pre-
and post-IPO and pre- and post-recent troubles.

The business is now in an exciting new phase and the team is really energised. We’ve broken quite a
few records this year and that’s something we want to keep doing!

This is our ambition, $6.5m net profit after tax in FY25

Provided we execute on the strategy I’ve taken you through today – and assuming foreign exchange,
supply, and regulatory stability – we are confident that this is a realistic and achievable figure.

I’m driven by two things – Developing people and delivering targets, so I’m serious when I say that I
want to be up here next year telling you we’re on track for another record-breaking profit.

Thanks for your time.

I’ll now hand over to Angus to take you through the financial update for FY24.

SLIDE 13 – FINANCIAL UPDATE
Angus Guerin

Thanks Paul.

I joined 2 Cheap Cars in late June because it was clear to me that the company had huge potential to
grow, and I wanted to be a part of that journey.

In July, we released an earnings upgrade taking our full year guidance to net profit after tax (NPAT) of
between $3.8m and $4.2m. Following the strong results in July and August we recently upgraded that
guidance to $5.2m-$5.7m.

Today I’d like to give a little more colour around our most recent earning guidance, first by taking you
through our year-to-date results and secondly, by outlining the drivers behind our full year 2024
projections. Please note that these results are unaudited.

SLIDE 14 – FY24 UPDATE

Year to date for the five months to the end of August we have delivered NPAT of $2.4m which
compares to $0.7m in the equivalent period last year.

There are several drivers behind these amazing results, but at the heart has been a sharp focus on
gross margin, even at the expense of some volume.

Our year-to-date gross margin is 24%, which is a 6-percentage point increase on the same period in
the prior year. We have achieved this by buying better, (helped by a favorable exchange rate),
improving reconditioning efficiencies and carefully managing pricing to ensure we remain competitive
while not leaving money on the table.

The table on the right shows that while our average year to date volume is below prior year by 17%,
we have consistently exceeded prior year gross margin in both percentage and absolute terms. We
have seen this flow directly to the bottom line.

Our revenue is slightly ahead of the same period prior year, which reflects higher prices and stronger
F&I penetration offset by the 17% lower volumes and the impact of lower revenue from our loan book
which continues to wind down.

The average year to date sale price of a vehicle including on road costs is $11,617 up from $9,563 at
the same time last year.

Our year-to-date operating cashflow was $4.0m despite having built inventory to a more stable level
following the shipping constraints noted at the previous year end. This compared to $3.7m at the
same period prior year.

SLIDE 15 – FY24 OUTLOOK

Our earnings guidance is $5.2m-$5.7m.

Should the board declare dividend payments, based on a midpoint of $5.45m, this would result in a
gross interim dividend of five cents per share payable in December and a final dividend at a similar
level payable in June 2024, dependent on the final full year NPAT. When we started this meeting, our
shares were trading at [62c]. A 10 cent full year dividend would translate to a gross yield of 16%.

We are confident in achieving this result for a number of reasons:
1) We have a much more stable supply chain with several freight forwarding options.
2) Our in-house compliance activities, launched in July, have delivered significant monthly cost
savings and have further untapped potential.
3) Our Christchurch yard is due to double in size from mid-October with significant additional
monthly volume anticipated.
4) On yard percentage of capacity continues to improve, driven by operational efficiencies at our
hub.
Having said that, we have taken a conservative approach to the rest of year forecast regarding
vehicle margins and finance and insurance penetration, factoring in the financial pressure on Kiwis
heading into Christmas.

It is great to see 2 Cheap Cars back strong and starting to achieve the sort of results our shareholders
deserve.

I look forward to reporting how we’re tracking later in the year and will now hand back to Michael.
Thank you.

Michael Stiassny

Thanks Gus. I will briefly open the floor to questions specifically regarding Paul’s, Angus’s and my
presentations, the Annual Report and Financial Statements only. We will take all general questions at
the conclusion of the general business and questions from online participants will also be read and
answered at that time.

I remind you that this is a shareholders’ meeting, and only shareholders and proxy holders may
speak.

Please be aware that this meeting is being webcast, so an audience outside of this room will hear you
too.

If you wish to speak, please raise your hand, and introduce yourself before you begin your remarks.

[QUESTIONS]

Thank you. We will now move to voting on the resolutions laid out in the Notice of Meeting.

SLIDE 16 – ORDINARY RESOLUTIONS

For those shareholders here in person, you will have either the Voting/Proxy Form sent to you with
the Notice of Meeting, or a voting form given to you by Computershare when you entered the
meeting.

When you cast your vote please tick one box, either for, against, or to abstain alongside each
resolution. In all cases, please ensure that you sign the form once your vote has been cast.

If you are here as a proxy on behalf of a shareholder, you will need to cast that shareholder’s votes
for them to be counted.

If you do not have a voting form, please go to the registration desk to ask for help.

Each of the resolutions to be voted on, as set out in the Notice of Meeting, is an Ordinary Resolution
which can be passed by a simple majority of the votes of shareholders entitled to vote and voting on
the resolution. As required by the NZX Listing Rules, the chairperson hereby demands a poll on all
resolutions. As such, the votes on each resolution shall be counted according to the votes attached to
the shares of each Shareholder entitled to vote and voting.

For those shareholders participating online, the resolution and voting options should now appear on
your screen. Please make sure you have signed in with your CSN number to ensure your vote is
valid.

To vote, simply select your voting direction from the options shown on the screen. You can vote for all
resolutions at once or by individual resolution.

Please note that your vote has been cast when the green tick appears, and you can change your vote
by selecting ‘Change your Vote’.

Should you require any technical assistance, please type your query in the Q&A tab or chat function
and one of the Computershare team will assist or call 09 488 7800.

All voting will remain anonymous. Votes will be collated by Computershare and the verified results will
be announced to the NZX later today.

SLIDE 17 – RESOLUTIONS

I now turn to resolution 1.

Section 207S of the Companies Act provides that the fees and expenses of the auditors are to be
fixed in such manner as the company determines at the Annual Meeting. The Board proposes that,
consistent with past practice, the auditor’s fees be fixed by the directors.

I therefore move that resolution 1 is put to shareholders – that the Board be authorised to fix the
auditor’s remuneration.

Is there any discussion?
[FOLLOWING ANY QUESTIONS OR DISCUSSION]

If shareholders could please cast their votes on resolution 1.
[PAUSE]

I now turn to resolution 2.

Just a reminder that Resolution 2 is subject to voting prohibitions under the Takeovers Code. Namely,
the parties to the transaction and their associates cannot vote on, appoint a proxy for, or exercise
discretionary proxies on this resolution.

Resolution 2 reads ... That, for the purposes of rule 7(c) of the Takeovers Code, the acquisition of
13,679,934 ordinary shares in the Company by David (Yusuke) Sena and Tompkins Wake Trustees
2022 Limited (as trustees of the Sena Family Trust) from Eugene Hamilton Williams and TLR Williams
Trustee Company Limited (as trustees of the E & Co Trust), pursuant to the Agreement for Sale and
Purchase of Shares in 2 Cheap Cars Group Limited is approved.

I therefore move that resolution 2 is put to shareholders.

Is there any discussion?
[FOLLOWING ANY QUESTIONS OR DISCUSSION]

If shareholders could please cast their votes on resolution 2.
[PAUSE]

So, if you haven’t already done so, webcast viewers please cast your votes. I will also then ask
Computershare to collect the voting papers.

[PAUSE FOR COMPUTERSHARE TO COLLECT PAPERS]

I now declare that voting is closed.
SLIDE 18 – PROXIES
As at 10.00am Wednesday 27 September, Computershare advises that the following proxy votes had
been received. With 12.86% of votes cast, and subject to verification by the scrutineers, resolution
two will pass paving the way for David and the Sena Family Trust to complete the purchase of shares
from Eugene Williams.

This is a significant milestone for the Company and draws a clear line underneath the tensions of the
past few years. The Board and management look forward to focusing on growing the Company and
the continued restoration of shareholder value.

Final verified results will be posted on the NZX later today.

Right, let’s move on. The final item on our agenda is General Business:
SLIDE 19 – GENERAL BUSINESS & QUESTIONS
Are there any matters of General Business to be tabled or moved?

A reminder that any shareholder or proxy holder wishing to speak should raise their hand and please
introduce yourself before asking your question.

[FOLLOWING ANY QUESTIONS OR DISCUSSION]

Are there any further questions from the floor?

I will now ask Gus to read out questions from shareholders attending online.

Gus to read questions
[FOLLOWING ANY QUESTIONS OR DISCUSSION]

Michael Stiassny
The directors will also be happy to answer questions from shareholders while refreshments are
served at the end of the meeting.

Thank you.

SLIDE 20 – THANK YOU FOR ATTENDING

That brings us to the conclusion of our business today and it remains for me first, to thank you for
your participation, and secondly to invite those of you here to join the Board and Management for
refreshments.

I declare the meeting closed. Thank you.