Turners delivers record FY24 and lays out future road map
Company Announcement
21 May 2024
1
Turners delivers record FY24 earnings and lays out roadmap for future growth
Turners Automotive Group (NZX/ASX: TRA) has again delivered record earnings for the financial year to March 31,
2024 (FY24), underscoring its resilient earnings platform, and the value of diversification, integrating the activity
and annuity elements of its business.
Despite economic challenges and soft consumer demand, the company achieved its FY24 target a year early, is well
placed to exceed its FY25 Net Profit Before Tax (NPBT) target of $50M and today announced its new medium-term
target for $65m NPBT in FY28.
Key Financial Highlights:
● Revenue $417m +7%
● EBIT $58.6m up 12%
● NPBT $49.1m +8%
● NPAT $33.0m +1.5% (normalised NPAT $35.1M +8%)
1
● Earnings per share (EPS) 37.7cps 0% (normalised EPS 40.2cps +7%)
1
● Final dividend declared of 7.5 cents per share (cps)
● Full year dividend of 25.5cps +11%, representing a gross yield of ~9% per annum based on current share
price ($4.10)
1
The legislative change to remove depreciation on commercial buildings has increased the effective tax rate to 33% for FY24. This is a one-
off non-cash impact in FY24 only. The effective tax rate over the last two years is between 27.5-28.5%. A normalised NPAT using FY23 tax
rate of 28.5% would be $35.1M +8% and EPS would be 40.2 +7%.
Key Business Highlights:
● Auto segment profit was up 27% and constituted more than 50% of group profits. Driven by two new
branches launched in FY24, improved sourcing, retail optimisation (from wholesale auctions to retail),
growing brand strength, operating efficiencies and solid organic growth across the network.
● Finance segment has weathered the interest rate shock as we deliberately sacrificed some top line
growth over the last two years to focus on higher quality borrowers, positioning the segment well as
interest rates ease. Net interest margin (NIM) is expanding, following an inflection point during H2 and
rate headwinds will now turn into tailwinds. Meanwhile, arrears remain significantly below industry
benchmarks.
● Insurance segment increased contribution to profit as a well-tuned business with robust policy sales,
well managed claims and improved investment returns. Notably claims cost inflation was offset by
reduced frequency of claims.
● Credit Management business has turned a corner with debt load recovering in line with a tightening
economy, particularly in SMEs. The business is well-placed for growth as the economy tightens and debt
value load continues to increase.
● A strong culture remains a key advantage, ranking in the top 5% of consumer businesses globally using
Peakon (employee engagement tool). 50% of the team took up the Employee Share Scheme offer.
● Outlook: An anticipated deterioration in economic conditions during HY25, combined with cycling
against a high-growth HY24 comparative period arising in part from extreme weather events, means we
expect HY25 to be testing. Our near term focus remains on exceeding the $50M NPBT goal in FY25,
despite the economic backdrop. Beyond FY25, Turners is well-placed to continue to make strong
progress, thanks to the resilience of a diversified business model (activity and annuity), and clear strategy
for further growth.
Company Announcement
21 May 2024
2
Turner’s FY24 result demonstrated strong earnings in challenging conditions, thanks to its resilient, diversified
business model, and is well placed to implement its next phase of development and growth.
Group revenue rose 7% to $417m, delivering a record NPBT result of $49.1m up 8% on FY23.
The Auto Retail segment achieved another year of 20%+ growth, with segment profit up 27% over FY23 to
$31.8m. Although the Finance segment’s profit was down, revenue continued to grow, and further progress was
made improving the quality of the loan book, and rebuilding lending margins. Insurance continued its steady
growth of recent years with 15% profit growth. And Credit Management expanded of a low base, recording 9%
profit growth.
Todd Hunter, CEO, said: “We’re pleased to continue to deliver another record result for shareholders. Our business
is founded on delivering great experiences for our customers. We continue to innovate, gain market share and
improve margins across all segments. In addition to the continued expansion of our activity businesses (Auto Retail
and Credit Management), our annuity businesses (Finance and Insurance) have gained momentum. This
underscores the benefits of our diversification strategy and ensures the resilience we need to grow, through all
phases of the economic cycle.
“Our Auto Retail segment again excelled and is now entering a build phase for our next growth push. Our Finance
segment has weathered the interest rate shock, continued to improve its credit scores and is now back into growth
mode. Our Insurance and Credit Management teams continue to finely-tune these businesses to market-leading
positions with future opportunity as the economic cycle tightens.”
FY24 Financial results
NPBT for the full year increased 8% to $49.1m. Net profit after tax (NPAT) of $33.0m was up 1.5%. EBIT rose 12%
to $58.6m.
Earnings per share (EPS) for FY24 were 37.7cps, matching last year. The legislative change to remove depreciation
on commercial buildings increased the effective tax rate to 33% for FY24. This is a one-off non-cash impact for FY24
only.
A final 7.5cps dividend (payable in July) takes FY24 dividends to 25.5cps, up 11% on last year. This meets the
company’s dividend policy payout of 60-70% of net profit after tax (NPAT), and represents a yield of ~9% per annum
based on the current share price.
Grant Baker, Chairman, said: “This is an outstanding result for the business in light of the economic backdrop. The
strength of our brand, and our distribution networks means we are ever more accessible and trusted by customers,
offering strong adjacent opportunities. The resilience of our diversified model leaves us well-placed for what comes
next in the economic cycle.
Our leadership position and strong balance sheet, means we can continue to invest for our next phase of growth,
even in tough times, so that we remain ahead of the market as conditions begin to improve into the next year and
beyond. We continue to remain focused on returns to shareholders, as well as strengthening our platform for
growth as we now implement our roadmap to NPBT of $65m at FY28. The economic conditions New Zealand is
faced with are challenging but I have absolute confidence in the team to keep delivering.”
Company Announcement
21 May 2024
3
Results by segment
Refer to Appendix
FY25 Outlook
We expect New Zealand’s trading conditions to remain challenging throughout HY25 (six months ending September
2024). However we expect to see a recovery in the second half of the year and our near term focus remains on
exceeding our goal of $50m NPBT in FY25.
Roadmap to $65m (FY25-FY28 Growth model)
Having successfully met our FY24 target a year early, and remaining on track for our FY25 $50m target, we today
announced our Roadmap to $65m NPBT for FY28.
Our FY25-FY28 growth model is underpinned by five key areas:
● Auto Retail - Branch expansion
● Auto Retail - Retail optimisation (transition of unit sales from wholesale auctions to retail)
● Finance - growth in premium lending as economic cycle eases and interest costs start to reduce
● Insurance - growth in market share gains and direct to consumer distribution opportunities;
● Credit Management - growth from rebuilding the payment bank as debt load increases.
Given the uncertain economic outlook, the mix of activity and annuity-based revenues remains a core strength for
the business as we grow towards our future goals.
Turners FY24 Results Call
Todd Hunter (Group CEO) and Aaron Saunders (Group CFO) will present the FY24 financial results followed by Q&A
at 10:30am on 21 May 2024.
https://turners.zoom.us/webinar/register/WN_Zqo5c_sKTwaIcgm7IWpEBg
Results Video
For further commentary on the FY24 results, a short video is available at
https://www.turnersautogroup.co.nz/invest
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, Group CEO, Turners Automotive Group Limited, Mob: +64 21 722 818
Aaron Saunders, Group CFO, Turners Automotive Group Limited, Mob: +64 27 493 8794
Company Announcement
21 May 2024
4
Appendix: Segmental Results
Auto Retail: Revenue $298.6m +7%, NPBT $31.8m +27%
The Auto Retail segment completed another year of strong growth off the back of improved local sourcing of
vehicles. Revenue was up 7% to $298.6m, lifting profit contribution to $31.8m, up 27% on FY23. This was founded
on continuing to develop a very strong brand, sourcing vehicles smarter and improving systems efficiency. Some
one-off impacts from the Auckland Anniversary floods and Cyclone Gabrielle also affected early HY24 (higher levels
of sales from damaged and end of life vehicles plus replacement vehicles).
Central to Auto Retail’s profit growth is a continued migration from auctioned vehicles into expanding retail
channel sales. Retail channel sales generate higher revenues and add on sales opportunities compared to vehicles
sold through auction. The segment is sourcing more owned stock, and is increasing its retail capacity through
branch expansion. Total ‘owned’ unit sales grew 5% in FY24 to 25.3k vehicles. The number of vehicles sold at
auction in FY24 also grew, +7% to 19.8k units.
Branch expansion, local sourcing and increased brand awareness is driving increased sales. ‘Tina from Turners’
continues to prove effective in the market, and popular with customers.
The segment is now entering a “build phase” for its next growth push. A new Timaru branch and Napier branch
expansion was completed in FY24. The development pipeline for FY25 includes: Tauranga-Tauriko, Hornby in
Christchurch, and Burnside (Christchurch Airport precinct). But the timing of these mean that their impact will only
be fully felt in FY26, not FY25. Branches in Christchurch City Centre and Greerton, Tauranga are planned for FY26
and FY27 respectively.
Finance: Revenue $62.4m +6%, NPBT $12.2m -18%
Finance segment achieved steady revenue growth during FY24, up 6% at $62.4m. Segment profit was down 18%
at $12.2m. The high interest rate environment continued to bite. However, by H2-24, the segment was back in
growth mode.
Net interest margin (NIM) has stabilised and returned to growth. This inflection confirms the segment has
weathered the interest rate shock and is now well placed when the rate cycle begins to ease. The relentless focus
on quality means that premium lending was 50% of our total loan book as at March 2024. Credit policy was further
tightened through FY24 with the consequence that average borrower credit scores continued to improve. As a
result of the focus on quality, consumer loan arrears continue to track at half the levels of the wider market. The
segment has maintained a conservative position on the possible impact on credit losses from unemployment,
increasing its economic overlay provision to $2.3m (FY23 $2.0m).
Insurance: Revenue $46.1m +6%, NPBT $14.3m +15%
Insurance continued to make gains in FY24, with distribution networks delivering significant value. Inflation
continued to increase the cost of claims, but this was offset by lower frequency of claims (work from home and
cost of living encouraging more use of public transport). Indications are that we are nearing the end of claims
inflation phase. Loss ratios strengthened due to further improvements to risk pricing during FY24.
Company Announcement
21 May 2024
5
Autosure has introduced two new categories of vehicle during FY24 to further optimise pricing for risk. The business
now has the building blocks in place to address a substantial opportunity within the private car selling market (50%
of used cars are sold private to private).
Credit Management: Revenue $9.8m +6%, NPBT $3.1m +9%
The Credit Management business continued to recover well in FY24, building back through improved marketing
and benefitting from higher demand as cashflow pressures emerge in the wider economy. Debt value loaded
increased by 14% ($18m) over FY23. Lower repayment amounts and extended payment arrangements were a
feature of FY24 due to diminished customer payment capacity. The Payment bank is being rebuilt as debt load
increases. The business is well-positioned to make further gains as New Zealand’s credit metrics continue to
deteriorate. They are now at their worst level in seven years, suggesting debt load levels will increase over coming
years.
ENDS
---
1• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
FY24 Results
Presentation
For the twelve months ending
31 March 2024
2• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
We love cars
2• TURNERS AUTOMOTIVE GROUP FY24
RESULTS
3• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
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.
4• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
Record result
Resilient model
Ready for what’s next
4• TURNERS AUTOMOTIVE GROUP FY24
RESULTS
5• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
Agenda
1.FY24 Results
2.Segment results
3.Looking forward ...
6• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
Delivering on our plan for growth ...
1.Record result despite an economy under significant pressure. Turners demonstrates resilience and ability to pivot to
where the demand is strongest.
2.Auto Retail division grows profits 27%, Insurance 15%, Credit 9% helping to offset continued impact from increasing
interest rates in Finance division.
3.Full year dividend at 25.5 cps.Based on current share price this is a gross yield of ~9%pa.
4.Our plan for growth has been proven up and de-risked over the last three years.
5.The business remains well diversified, and the value of having annuity and activity based revenues is proving out again.
6.NZ and global economic challenges will persist over the next 12-24 months. Still see opportunities in the markets we
operate in, and are well positioned to take advantage of these.
7• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
Our plan for growth is standing up to the economic and
interest rate challenges being thrown at us
AutoRetail
•Volume growth and margin gains due to focus on domestic sourcing and retail optimisation.
•Branch expansion pipeline building, entering next phase of development.
Finance
•Quality metrics continue to improve, provision buffer increased.
Insurance
•Distribution improving and direct to consumer platform built.
Credit Management
•Business improving as debt load increases as wider environment deteriorates.
8• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
FY24 Results overview
•EBIT $58.6M +12%
1
•NPBT $49.1M +8%
•NPAT $33.0M +1.5% (normalised NPAT $35.1M
+8%)
2
•Revenue $417.0M +7%
•Dividend 25.5 cps +11%
•Earnings per share 37.7 cps 0% (normalised
EPS 40.2cps +7%)
•Continued gains in margin and volume in Auto
Retail
•Unusually high sales of damaged and end of
life vehicles and demand for replacement
vehicles following the Auckland floods and
Cyclone Gabrielle
•Interest rates continued to be a headwind
through FY24.
•Lots of change driven by changes in
government regulation (Clean Car Discount
and Clean Car Standard)
•Economic conditions worsen through FY24
Financials
Key Drivers for FY24
FY24
•FY24 result a record...
•Auto Retail: 2 new branches launched in FY24,
growth in locally sourced cars and improvement in
margins.
•Finance: Net interest margin back expanding in H2
of FY24 for Oxford.
•Insurance:Claims being well managed
andinvestment returns improved. Policy sales
robust.
•Credit: has turned a corner with debt load
recovering in-line with tightening economy
particularly in SMEs.
1
EBITadjusted for interest expense in Finance (non-IFRS measure)
2
The legislative change to remove depreciation on commercial buildings
has increased the effective tax rate to 33% for FY24. This is a one-off non-
cash impact in FY24 only. The effective tax rate over the last two years is
between 27.5-28.5%. A normalised NPAT using FY23 tax rate of 28.5%
would be $35.1M +8% and EPS would be 40.2 +7%.
9• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
Turners is a strong and sustainable business with a proven
track record...
* Dividends fully imputed from FY17 onwards
Total NPBT/NPAT over 3 year period ($m)
Aggregate dividends paid over 3 year period
(cps)
23.9
77.3
95.5
137.6
27.9
56.6
70.6
96.9
0
20
40
60
80
100
120
140
160
FY13-FY15FY16-FY18FY19-FY21FY22-FY24
NPBTNPAT
0.10
0.43
0.51
0.715
0.000
0.100
0.200
0.300
0.400
0.500
0.600
0.700
0.800
FY13 - FY15FY16 - FY18FY19 - FY21FY22 - FY24
10• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
We have made great progress in 5 years...
KPIFY19FY24Progress
Finance conversion
30%
33%+
No. of locally sourced vehicles purchased
16,179
25,312+
BuyNowsales %
48%
52%+
AvgGP per owned unit
$470
$992+
% of premium lending
3%54%+
Consumerarrears
10.6%3.1%+
Finance net interest margin after comm
8.5%
4.9%
-
Insurance Claims Ratio MBI72%
58%+
GrossWritten Premium MBI
$32.6M$37.2M+
Debt Collected
$57M$37M-
Reported Net Profit Before Tax$29.0M$49.1M+
Earnings per Share
26.2 cps37.7 cps+
Dividends Paid per Share
$0.17$0.255+
11• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
Regulatory changes driving drop in used car market sales...
•The last year saw a material impact on the used import market with
unprecedented levels of change in government regulation.
•Overall transaction levels grew +5% in FY24, however most of these
are pre-registrations ahead of the changes in government regulation.
•+30% increase in used overseas imports to 117k units, still well
below FY22 levels of 137k. Expect FY25 numbers to increase on
FY24.
•Demand for lower value cars growing. Expect this to continue until
interest rates start dropping.
•Turners car unit sales up 6% FY24 v FY23.
•Registered dealer numbers have bottomed out, off higher numbers of
used imports. We don’t expect dealer numbers to recover.
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
45,000
0
200
400
600
800
1,000
1,200
FY19FY20FY21FY22FY23FY24
Total Cars Sales for Turners
NZ Used Vehicle Change of Ownership
NZ MarketTurners Sales
12• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
1. FY24 Results
13• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
FY24 Results snapshot
Revenue
Net profit aftertax
Revenue
$417.0M+7%
Shareholders’Equity
$278Mas at 31March 24
Net Profit BeforeTax
$49.1M+8%
Final Dividend7.5cps
FY Div25.5cps+11%
EBIT
1
$58.6M +12%
FY24 Earnings PerShare
2
37.7cps0%
Net Profit After Tax
2
$33.0M+1.5%
0
50
100
150
200
250
300
350
400
450
FY18FY19FY20FY21FY22FY23FY24
Millions
2H
1H
-
5.0
10.0
15.0
20.0
25.0
30.0
35.0
FY18FY19FY20FY21FY22FY23FY24
Millions
2H
1H
1
EBITadjusted for interest expense in Finance (non-IFRS measure)
2
The legislative change to remove depreciation on commercial buildings has increased the effective tax rate to 33% for FY24.
This is a one-off non-cash impact in FY24 only. The effective tax rate over the last two years is between 27.5-28.5%. A
normalised NPAT using FY23 tax rate of 28.5% would be $35.1M +8% and EPS would be 40.2 +7%.
14• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
FY23 to FY24 Revenuebridge
•Auto revenues have grown off increased car and
damaged vehicle unit sales from weather events, new
branches and more owned stock flowing through the
business.
•Finance book revenues reflect higher average loan
book over FY23 with growth in premium borrower
segment.
•Insurance revenues up off strong policy sales and
improved investment returns.
•Credit Management revenues have increased as a
result of increasing debt load increasing the payment
bank of arrangements.
Revenue increased from $389M to $417M
Revenue Bridge FY23 to FY24 ($M)
15• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
FY23 to FY24 Net profit before tax(NPBT)bridge
•Auto Retailprofit growth from increased unit sales, better
margins, more owned stock and new branches.
•Finance result continuing to be impacted by increasing
interest rates and impact on net interest margin. The
contribution from Finance is improving as interest margins
are starting to expand.
•Insurance result reflects improvements in risk pricing,
investment returns, claims ratios and cost base.
•Credit Managementresult is driven off increased debt
load and commissions generated from this.
•Corporatecosts up due to higher interest rates.
NPBT increased from $45.4M to $49.1M
NPBT Bridge FY23 to FY24 ($M)
16• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
Turners has a strong and sustainable yield
Dividend per Share ($)
Note -Dividends fully imputed from FY17 onwards
•Continued the track record of delivering strong,
sustainable and growing dividends in the business
(CAGR 11%)
•Directors have declared a final dividend of 7.5 cents per
share taking full FY24 dividends to 25.5 cents per share.
•Dividend payoutratio is 60-70% of NPAT.
•Based on the projected 25.5 cents per share dividend
and a share price of $4.10 this is a gross yield ~9% pa.
COVID
impacted year
0.10
0.13
0.15
0.16
0.17
0.14
0.20
0.230.23
0.255
0.00
0.05
0.10
0.15
0.20
0.25
0.30
FY15FY16FY17FY18FY19FY20FY21FY22FY23FY24
17• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
Balance sheet has capacity to support growth
•Inventory levels tightly managed, increase in “budget” units.
•Finance receivables ledger growing slightly over FY23, but
still prioritising margin and credit quality.
•Property, plant and equipment increase due to
development of sites in Timaru and Napier.
•Borrowings reflects property development/acquisition
progress.
($M)FY24FY23
Cash and cash equivalents
1812
Financial assets at fair value
7067
Inventory
2526
Finance receivables
430425
Property, plant and equipment
114106
Right of use Assets
2122
Intangible asset
163164
Other assets
2531
Total Assets
866853
Borrowings
425412
Other payables
4856
Deferred tax
1512
Insurance contract liabilities
6059
Lease liabilities
2527
Other Liabilities
1517
Total Liabilities
588583
Shareholders Equity
278270
18• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
More diversification in funding introduced
Borrowings
Borrowings byasset class ($M)
•Two additional funders, one bank and non-bank, brought into funding mix bringing further diversification and capacity.
•New securitisation warehouse created for new funders ($100M), Fitch AAA rating achieved as part of transaction process.
•Inventory funding broadened to provide flexibility for local purchasing as well as imports.
•Corporate funding capacity sufficient to fund committed branch expansion plans in Auto Retail.
($M)LimitDrawn
Receivables –Securitisation(BNZ/ACC)
371305
Receivables –Banking Syndicate(ASB/BNZ/Westpac)
50 23
Less Cash
(10)
Net Receivables Funding
421318
Receivables Funding Capacity
103
Corporate & Property
13092
Working Capital (ASB& BNZ)
305
Less Cash
(8)
Net Corporate Borrowings
16089
Corporate and Property Funding Capacity
71
0
50
100
150
200
250
300
350
400
450
Finance Receivables
(77% of total borrowings)
Property
(21% of total borrowings)
Inventory
(2% of total borrowings)
AssetBorrowings
19• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
Our strong culture is a key advantage for our business
•Turners rank in the top 5% of consumer businesses
globally using the Peakon survey tool.
•Having a strong culture and an engaged team is very
important to us, particularly at a time when recruitment
and retention is challenging.
•We have now run our Employee Share Scheme for 2
years and take up is 50%.
•Turners scores 9.4 for Diversity and Inclusion. This
measures ourefforts to maintain a diverse workforce
and create an environment where every individual
feels included.
•Turners scores 9.2 for Health and Wellbeing. This
measures how satisfied employees are with Turners
efforts to help them cope with stress and stay
mentally, socially, and physically healthy.
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?”
7.0
7.5
8.0
8.5
9.0
9.5
20• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
2. Segment Results
21• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
FY24 by segment
($M)Automotive RetailFinanceInsuranceCredit
Revenue298.6+7%62.4+6%46.1+6%9.8+6%
Segment NPBT31.8+27%12.2(18%)14.3+15%3.1+9%
22• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
The mix of activity and annuity businesses gives
earnings stability during difficult times.
•Auto Retail super growth 27% which makes up
~52% of group profits.
•Financecontinues to be materially impacted by
the tightening cycle in interest rates. However we
have seen margins start expanding and expect
interest rates to become a tailwind once the
easing cycle begins.
•Insuranceis consistently growing through more
policy sales, better risk pricing and the benefit of
increasing interest rates on investment returns.
•Credit Management business recovering as more
customers fall behind and debt load grows as a
consequence.
Operating profit contribution by segment ($M)
The mix of annuity and activity revenues gives Turners a
diverse and resilient earnings base
0
10
20
30
40
50
60
70
FY20FY21FY22FY23FY24
Operating Profit ($M)
Automotive retailFinanceInsuranceCredit management
23• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
Auto Retail Division
Strong brand
Smarter sourcing
Systems efficiency
24• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
Automotiveretail
Revenue $299M +7%, Segment Profit $32M +27%
•Total cars sold up +6% to 40,100 units for FY24, BuyNowretail units up 4% to 20,300 in FY24.
•New branches in Timaru and Napier opened and both trading ahead of expectations
•Total “owned” units sold up 5% to and margin up 18% for FY24.
•Overall finance attach rates are at 33% in-line with FY23
•Business continues to pivot to lower priced stock units to reflect where demand is. Value of inventory down but stock
units up. Mar-24 3,465 units @ average price of $7,200 (FY23 3,021 units @ average price of $8,600)
•Unusually high sales of damaged and end of life vehicle volumes following the Auckland floods and Cyclone Gabrielle
(up 11% in FY24 to 34,200)
•18 months of property development to complete before next phase of expansion in retail network
25• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
Local sourcing continues to deliver growth, margin and
address customer need
•Total “owned” units sold in FY24 up 5% to
25,312 and overall margin on cars we own is
up 18% for FY24.
•Business continues to pivot to lower priced
stock units to reflect where demand is. Value
of inventory down but stock units up. Mar-24
3,465 units @ average price of $7,200 (FY23
3,021 units @ average price of $8,600)
Owned cars sold through Turners + Average Margin
1
1
Margin calculated after selling fees
0
200
400
600
800
1,000
1,200
0
5,000
10,000
15,000
20,000
25,000
30,000
FY19FY20FY21FY22FY23FY24
Avergae margin ($)
Units Sold
Local Units soldImport units soldMargin
26• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
Transition of wholesale to retail is a material opportunity
•BuyNowunits increased by 4% to
20,300 in FY24. Most recent quarter at
53% of total sales.
•19,800 units sold through auction in FY24
v 18,500 sold in FY23 a 7% increase
(increase in government fleet and repos).
•For each additional vehicle sold through
retail (not auction) Turners makes another
$1,000 per vehicle.
•We have generated more owned stock,
and we are increasing our retail % and
capacity through branch expansion.
FY23FY24
21,70025,300
57%59%
SOURCINGSELLING
RETAIL
OWNED
CONSIGNMENT
FY23FY24
16,30014,800
43%41%
FY23FY24
19,50020,300
51%52%
FY23FY24
18,50019,800
49%48%
WHOLESALE
27• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
Branch expansion + owning more local cars will drive
growth in units sold
Car units sold v Forecasted property retail m2
Exiting inefficient
large branches eg.
Penrose supersite
Impact of
Covidon
unit sales
Growth in retail focused and
located branches +
operational efficiency
Acquisition of
BuyRightCars
Committed plan to
have 29 branches
operating in FY27
11 branches
in FY16
139,083
166,120
182,151
186,843
187,267
178,026
163,978
174,318
179,599
187,236
191,187
188,560
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
18,000
38,000
58,000
78,000
98,000
118,000
138,000
158,000
178,000
198,000
218,000
FY16FY17FY18FY19FY20FY21FY22FY23FY24FY25FY26FY27
Total Car Units SOld
Total footprint m2
Footprint (000's) m2Car Sales
28• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
Entering a “build” phase for next growth push
LocationBranchSizeTiming
Expected additional
profit contribution
Timaru (COMPLETED)Cars4,000m2Q4 FY24$500k
Napier (COMPLETED)Cars8,000m2Q4 FY24$500k
Tauranga –Tauriko
Trucks &
Damaged
Vehicles
7,900m2Q2 FY25$400k
Christchurch –HornbyCars15,500m2Q4 FY25$400k
1
Christchurch –Burnside
(Airport precinct)
Cars8,000m2Q4 FY25$300k
1
Christchurch –City CentreCars6,000m2Q1 FY26$500k
1
Tauranga -GreertonCars7,600m2Q4FY27$600k
New locations
•Takanini/Drury
•Whanganui
•North East Christchurch
•Lower Hutt
•Albany north
Existing locations expansion
•Invercargill
•New Plymouth
Committed development pipeline
“Opportunities” pipeline
1
additional profit contribution over and above the current
operating profit of Christchurch operations of ~$4M
29• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
Damaged and End of Life vehicle volumes on the rise
Damaged and end of life vehicle units sold through Turners
•The comparative period in FY23 saw an unusual
upward lift in units following the Auckland floods
and Cyclone Gabrielle where there was an
increased volume of “written off” vehicles from
insurers.
•Long-term growth is being driven by accident
damaged vehicles and older vehicles getting
more expensive to repair (parts/labour), vehicles
more technical
•Expect units in FY25 to normaliseto run rate of
~30,000
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
FY15FY16FY17FY18FY19FY20FY21FY22FY23FY24
Insurance Written Off VehiclesGeneral End of Life Vehicles
30• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
Finance Division
Weathered the interest rate shock
Credit scores continue to improve
Back into growth mode
31• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
Finance
Revenue $62.4M +6%, Segment Profit $12.2M -18%
•Focus on quality (56% premium lending in 2H24) has put us in a strong position.
•Net interest margin into expansion cycle...bottom was 1H24. Pleasing improvements in weighted average
interest rate.
•Credit policy continually tightened throughout FY24, with average credit score continuing to improve.
•Oxford loan arrears continue to track at ~half the levels of the wider market (see Centrix data on slide 36).
•Maintaining a conservative position on possible impact on credit losses from unemployment.Economic
provision overlayincreased to $2.3M (FY23 $2.0M).
•Back in growth mode.
32• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
Finance
Total Receivables (ex impairments)
200
250
300
350
400
450
Mar-20
May-20
Jul-20
Sep-20
Nov-20
Jan-21
Mar-21
May-21
Jul-21
Sep-21
Nov-21
Jan-22
Mar-22
May-22
Jul-22
Sep-22
Nov-22
Jan-23
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
Mar-24
Millions
•Focus on quality (56% premium
lending in H2FY24) has put us in
a strong position.
•Back in growth mode.
Pricing
discipline
Growth of 4%
since Jun-23
low point
33• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
Controlled Lending (Turners Cars + Direct)
More "controlled lending" leads to better margins and
arrears
•Targeting 80% of lending originated through
Turners branch network to go to Oxford
•Controlled lending through our own Turners and
Direct channel up 23% in FY24 to $95M
•Best performing segment of lending on arrears
metrics
Total Consumer ($362M ledger)3.1%
Controlled ($133M ledger)1.6%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
-
20
40
60
80
100
120
140
1H222H221H232H231H242H24
Arrears %
Total Ledger ($M)
Ledger (LHS)Arrears % (RHS)
34• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
•NIM has stabilisedand is back growing
but will gather pace as a reducing OCR
cycle begins.
•Some older and low priced interest
swaps running off in Q1 FY25 which will
have a negative impact on NIM in H1
but will unwind in H2.
•Increased hedged portion of Oxford
borrowings to over ~75%.
Net Interest Margin (NIM) % after originator commission
Net interest margin starting to lift.
0%
1%
2%
3%
4%
5%
6%
7%
8%
1H212H211H222H221H232H231H242H24
35• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
560
580
600
620
640
660
680
700
720
740
The quality of the finance book continues to improve.
Total New Lending with Premium Tier Risk
Split
Average Credit Score
Average Centrix
autoloanportfolio
score
3%
26%
47%
48%
48%
49%
51%
54%
53%
56%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1H202H201H212H211H222H221H232H231H242H24
OtherPremium
36• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
0%
1%
2%
3%
4%
5%
6%
7%
8%
Apr-20
Jun-20
Aug-20
Oct-20
Dec-20
Feb-21
Apr-21
Jun-21
Aug-21
Oct-21
Dec-21
Feb-22
Apr-22
Jun-22
Aug-22
Oct-22
Dec-22
Feb-23
Apr-23
Jun-23
Aug-23
Oct-23
Dec-23
Feb-24
+3 days arrears %
Total consumer arrearsIndustry arrears (Centirx)
Quality lending strategy resulting in arrears at well below
industry benchmarks
Consumer arrears
•Oxford has continued to tighten credit policy during FY24.
•Consumer total arrears has increased slightly to 3.1% (2.8%
at Mar-23). However 90+day arrears inline with Mar-23
levels at 0.6%.
•Commercial loan arrears have increased to 4.8% (1.8% at
Mar-23), however ledger size has reduced from $85M to
$66M. Specific customer management required in heavy
transport and forestry/logging.
•Economic provision overlayremains intact to support any
material increase in unemployment and impact on arrears.
Oxford Finance
3.1%
Low point
of 2.0%
Centrix Auto Loan
Portfolio 6.5%
HardshipCOVID peak
in FY22
As at FY23As at FY24
Number5114558
Balance$12,260,000$760,0001,085,000
37• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
Insurance Division
Well tuned business
Distribution networks still important
Building blocks for a direct to consumer offer in place
38• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
Insurance
•Distribution networks delivering significant value.
•Fastest growing comprehensive motor insurance book with
Suncorp.
•Core system replacement project completed
•Building blocks in place to address significant opportunity within
the private car selling market (50% of used cars trade private to
private)
Revenue $46.1M +6%, Segment Profit $14.3M +15%
Net Earned Premium FY23 to FY24 ($000’s)
39• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
•Claims Costs inflation being offset by frequency of
claims reducing due to changes in consumer behavior
(WFH and cost of living).
•Risk pricing very important in managing loss ratios,
Autosurehas introduced 2 new categories of vehicle in
FY24 to ensure we are pricing correctly for risk
•Expectation is we are near the end of claims inflation
phase
59.8%
58.4%
58.0%
58.0%
FY21FY22FY23FY24
Mechanical Breakdown Insurance (MBI) Loss Ratio Performance
Claims are being well managed
40• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
Credit Management Division
Business recovering
Tightening economy supports growth
Payment bank being rebuilt
41• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
Creditmanagement
•Business recovering and building off the back of improved marketing and a deteriorating economy.
•Debt value loaded increased by 14% ($18M) over FY23.
•Lower repayment amounts and extended payment arrangements due to diminished customer payment capacity.
•Payment bank being rebuilt as debt load increases
•NZ wide credit metrics continue to deteriorate and are now the worst they have been in the last 7 years, which should see
debt load levels increase over coming years.
Revenue$9.8M +6%, Segment Profit $3.1M +9%
42• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
Creditmanagement
•Debt value loaded increased by 14% ($18M) over
FY23.
•Higher yielding SME clients debt loaded up 23% in
FY24 and debt collected up 33% in FY24.
•Debt value collected was up 9% to $37M. Lower
repayment amounts and extended payment
arrangements due to diminished customer payment
capacity.
•Promises to Pay kept rate has dropped to 73% (75%
FY23) reflecting the pressure on household budgets.
Total Debt Collected ($M)
Total Debt Loaded ($M)
$237m
$225m
$119m
$108m
$130m
$148m
$0
$50
$100
$150
$200
$250
FY19FY20FY21FY22FY23FY24
$57m
$65m
$40m
$37m
$34m
$37m
$0
$10
$20
$30
$40
$50
$60
$70
FY19FY20FY21FY22FY23FY24
43• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
NZ credit arrears metrics worst in 7 years
Centrix NZ Credit Metrics
•Consumers reported in arrears in
March rose to 12.70% of the credit
active population (up from 11.8% in
Mar-23).
•Number of people that are behind on
their payments is now 463,000
(compared to 427,000 Mar-23).
•The current arrears level is 7.4% higher
year-on-year, tracking just above 2018
levels after coming off historic lows.
Consumer Arrears Trend
Source –Centrix Credit Bureau
44• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
3. Looking forward ...
45• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
ChallengeMitigationMar-22Mar-23Sept-23Mar-24
Rapid increases
in interest and
Inflation rates
•Diversifying funding sources
•Increase volume of direct lending
•Increase hedging
•Tightening cycle at or close to end
HighMediumLowLow
Recession
•Targeting lower value cars <$15k for
resale to meet where demand is
•Continued tightening of credit policy
and conservative provisioning
HighMediumMediumMedium +
Regulatory
•Continueto engage constructively
with regulators directly
•Likely to see walking back of some
regulation with new government
MediumLowLowLow
Our key risks are narrowing...
46• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
Growth model: FY25
AutoRetail
•Stock acquisition –Keep building domestic sourcing
•Retail optimisation and expansion –develop new sites and build retail volumes
•Transition wholesale auction transactions to retail
•Improvement in conversion rates from lead to customer
Finance
•Pricing and margin management
•Discipline on credit quality
•Drive further growth out of controlled lending channels (Turners + Direct)
CreditManagement
•Rebuild payment bank by building on “resolution” focused collections strategy
•Continue working closely with corporates to manage reputational risk
•Well positioned for the next stage of the NZ credit cycle.
Insurance
•Expand distribution through partnership strategy
•Launch direct to consumer offer
•Continue to enhance risk pricing and product features
47• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
•NZ’s economy has deteriorated and along with it consumer confidence and demand. We are expecting the first
half of FY25 to be impacted by these conditions but expect to see a second half recovery.
•Our focus remains on exceeding the $50M NPBT goal in FY25 however there remains some obvious risks with
interest rates and the overall economy and consumer demand.
Business divisions
•Automotive Retail –we are in a build phase over the next 18 months as a number of new sites are under development. We will
continue to push hard for the transition of wholesale to retail and see upside coming from this strategy. Consumers demanding
lower priced vehicles and lease customers delaying change over to new lease vehicles could have an impact on margins and
volume. Countering this will be an increase in repo volumes and commercial receivership sales.
•Finance–Maintaining credit discipline remains a key priority but we are expecting a much improved performance from Oxford
Finance. The interest rate headwinds become tailwinds and we expect ledger growth in the second half of the financial year.
•Insurance –Policy growth from direct to consumer launch and claims ratios to be stable.
•Credit Management –Our payment bank is rebuilding as debt load increases from the tightening economic conditions and the
resultant impact on consumer arrears. We are well positioned for the next stage of the NZ credit cycle.
Outlook + guidance
48• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
Growth model: FY25 –FY28
1.Auto Retail -Branch expansion
2.Auto Retail -Retail optimisation of unit sales from wholesale to retail
3.Finance –Growth in premium lending and interest rates becoming a tailwind
4.Insurance –Execute direct to consumer distribution opportunities
5.Credit Management –Rebuild payment bank off increasing debt load
The model gives us confidence in higher earnings growth through the cycle.
We have found the right formula, and will optimise further.
Five key areas underpin our earnings growth, a combination of both physical and digital:
49• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
20
25
30
35
40
45
50
55
60
65
70
FY19FY20FY21FY22FY23FY24FY25FY26FY27FY28
New medium term goal of $65M NPBT for FY28
Net Profit Before Tax ($M)
FY28
target
Target of $65M NPBT by FY28
•We achieved our FY24 target a year ahead, and remain on
track for exceeding our $50M NPBT FY25 goal.
•Assumes organic growth out of Auto Retail with new
branches planned plus continued wholesale to retail
transition. Recovery in Finance business and Credit
management + direct to consumer growth in Insurance.
•5yr actual CAGR -FY19 to FY24 of 11.1%
•10yr forecast CAGR FY19 to FY28 of 9.4%
50• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
Roadmap to $65M NPBT...
•Auto retail growth continues to come from retail optimisation and
branch expansion.
•Margin expansion in Auto Retail out of transition of unit sales from
auction into retail channels.
•Finance growth to resume as we exit tightening cycle.
•Insurance growth to come from direct and digital distribution.
•Credit Management delivers growth as payment bank rebuilt from
more debt being loaded due to tougher economic conditions.
•Corporate costs reduce due to lower interest rates.
•Mix of annuity and activity based revenues remain a core strength
for business.
•Business is highly cash generative, leading to growth + yield for
shareholders.
Net Profit Before Tax Bridge ($M)
51• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
Results Video
A short video is available summarising the FY24 results at...
https://www.turnersautogroup.co.nz/investor-centre
52• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
Questions
52• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
53• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
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
53• TURNERS AUTOMOTIVE GROUP FY24 RESULTS
---
Results announcement
Results for announcement to the market
Name of issuerTurners Automotive Group Limited
Report period12 months to 31 March 2024
Previous reporting period12 months to 31 March 2023
CurrencyNZD
Amount (000s)Percentage change
Revenue from continuing operations$416,1457.0%
Total revenue$416,9687.0%
Net profit from continuing operations$32,9661.5%
Total net profit $28,796-12.2%
Final dividend
Amount per quoted equity security$0.07500000
Imputed amount per quoted security$0.02916667
Record date18 July 2024
Dividend payment date26 July 2024
Current periodPrior comparable period
Net tangible assets per quoted security$1.47$1.38
A brief explanation of any of the figures
above necessary to enable the figures to
be understood
Please refer to accompanying Company Announcement
Authority for this announcement
Name of person authorised to make this
announcement
Barbara Badish
Contact person for this announcementTodd Hunter
Contact phone number021 722 818
Contact email address
Todd.Hunter@turners.co.nz
Date of release through MAP21/05/2024
This announcement is based on audited results.
1
TURNERS AUTOMOTIVE GROUP LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 March 2024
Restated
20242023
Note$'000$'000
Revenue2
416,145
389,027
Other income 2
823
608
Cost of goods sold
(177,175)
(173,986)
Interest expense
(27,842)
(19,933)
Impairment provision expense2
(4,616)
(3,740)
Subcontracted services expense
(15,466)
(11,927)
Employee benefits
(66,365)
(60,709)
Commission
(11,070)
(12,024)
Advertising expense
(5,650)
(4,934)
Depreciation and amortisation expense2
(11,968)
(11,478)
Systems maintenance
(5,384)
(5,109)
Claims
(21,901)
(21,827)
Other expenses
(20,392)
(18,544)
Profit before taxation49,139
45,424
Taxation expense
(16,173)
(12,941)
Profit from continuing operations 32,966
32,483
Other comprehensive income for the period (which may subsequently be
reclassified to profit/loss), net of tax
Cash flow hedges
(4,118)415
Revaluation of financial assets at fair value through OCI
(73)(91)
Foreign currency translation differences
21(7)
Total comprehensive income for the period28,796
32,800
Earnings per share (cents per share)
Basic earnings per share 3
37.71
37.54
Diluted earnings per share 3
37.61
37.65
2
TURNERS AUTOMOTIVE GROUP LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 March 2024
Share
Capital
Share
Options
Reserve
Translation
Reserve
Revaluation of
financial
assets at
fair value
through OCI
Cash flow
reserve
Retained
Earnings
Total
$’000$’000$’000$’000$’000$’000$’000
Balance at 31 March 2022 205,482 472 (32) (1,085) 5,477 42,083 252,397
Adjustments on initial application of NZ IFRS 17, net of tax
9 - - - - - (1,754) (1,754)
Restated balance at 1 April 2022 205,482 472 (32) (1,085) 5,477 40,329 250,643
Transactions with shareholders in their capacity as owners
Employee share based payments31,594(188)---296 1,702
Dividend paid8-----(14,732)(14,732)
1,594 (188) - - - (14,436) (13,030)
Comprehensive income
Profit
-----32,483 32,483
Other comprehensive income
--(7)(91)415- 317
Total comprehensive income for the period, net of tax
- - (7) (91) 415 32,483 32,800
Balance at 31 March 2023 207,076 284 (39) (1,176) 5,892 58,376 270,413
Transactions with shareholders in their capacity as owners
Dividend reinvestment plan3
5,106 - - - - - 5,106
Employee share based payments3
1,040(41)---- 999
Dividend paid/payable8
-----(27,090)(27,090)
6,146 (41) - - - (27,090) (20,985)
Comprehensive income
Profit----32,966
32,966
Other comprehensive income--21(73)(4,118)-
(4,170)
Total comprehensive income for the period, net of tax - - 21 (73) (4,118) 32,966 28,796
Balance at 31 March 2024
213,222 243 (18) (1,249) 1,774 64,252 278,224
3
TURNERS AUTOMOTIVE GROUP LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 March 2024
RestatedRestated
202420231 April 2022
Note$'000$'000$'000
Assets
Cash and cash equivalents4
17,523
11,845 13,373
Financial assets at fair value through profit or loss
69,558
66,730 70,274
Trade receivables
7,277
7,800 7,506
Inventories
25,051
26,057 31,980
Finance receivables5
430,299
424,621 422,870
Other receivables, deferred expenses and contract assets
13,782
9,144 9,520
Derivative financial instruments
1,774
5,887 5,414
Financial assets at fair value through OCI
157
230 225
Reverse annuity mortgages
2,489
2,925 3,242
Property, plant and equipment
113,948
105,993 67,569
Right-of-use assets
20,716
22,226 23,497
Investment property
-
5,800 5,950
Intangible assets
163,084
163,556 164,453
Total assets
865,658
852,814 825,873
Liabilities
Other payables
48,352
56,008
50,103
Contract liabilities
1,297
1,562
1,848
Tax payable
5,183
6,773
4,016
Deferred tax
15,037
12,412
12,564
Borrowings6
425,318
412,035
412,761
Lease liabilities
24,924
27,120
28,209
Life investment contract liabilities
7,188
7,042
8,153
Insurance contract liabilities
60,135
59,449
57,576
Total liabilities
587,434
582,401 575,230
Shareholders' equity
Share capital3
213,222
207,076
205,482
Other reserves
750
4,961
4,832
Retained earnings
64,252
58,376
40,329
Total shareholders' equity
278,224
270,413 250,643
Total shareholders' equity and liabilities
865,658
852,814 825,873
Total assets per share ($)9.80 9.84 9.53
Net tangible assets ($)1.47 1.38 1.14
4
TURNERS AUTOMOTIVE GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 March 2024
20242023
$'000$'000
Cash flows from operating activities
Interest received 56,183 51,639
Receipts from customers 359,265 334,105
Receipt of government subsidies 13 100
Interest paid - borrowings(25,954) (17,653)
Interest paid - lease liabilities(1,483) (1,548)
Payment to suppliers and employees(330,265) (286,783)
Income tax paid(15,259) (10,394)
Net cash inflow/(outflow) from operating activities before
changes in operating assets and liabilities 42,500 69,466
Net increase in finance receivables(11,117) (6,814)
Net decrease in reverse annuity mortgages 673 572
Net increase of financial assets at fair value through profit or loss(2,293) 3,872
Net (withdrawal)/contribution from life investment contracts(92) (304)
Changes in operating assets and liabilities arising from
cash flow movements(12,829) (2,674)
Net cash inflow/(outflow) from operating activities 29,671 66,792
Cash flows from investing activities
Proceeds from sale of property, plant, equipment and intangibles 3,180 942
Purchase of property, plant, equipment and intangibles(18,641) (44,177)
Purchase of investments - (96)
Sale of investments 5,526 -
Net cash inflow/(outflow) from investing activities(9,935) (43,331)
Cash flows from financing activities
Net bank loan (repayments)/advances 13,283 (553)
Principal elements of lease payments(6,303) (5,976)
Proceeds from the issue of shares 918 1,436
Dividend paid(21,956) (19,896)
Net cash inflow/(outflow) from financing activities(14,058) (24,989)
Net movement in cash and cash equivalents 5,678 (1,528)
Add opening cash and cash equivalents 11,845 13,373
Closing cash and cash equivalents17,523 11,845
5
TURNERS AUTOMOTIVE GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONT)
For the year ended 31 March 2024
RECONCILIATION OF NET SURPLUS WITH CASH FLOWS FROM OPERATING ACTIVITIES
Restated
20242023
$'000$'000
RECONCILIATION OF NET SURPLUS WITH CASH FLOWS FROM OPERATING ACTIVITIES
Profit/(loss) 32,966 32,483
Adjustment for non-cash items
Impairment charge on finance receivables, reverse annuity mortgages and other receivables
4,627 3,659
Net loss/(profit) on sale fixed assets
(204) (290)
Depreciation and amortisation
11,968 11,478
Capitalised reverse annuity mortgage interest
(291) (287)
Deferred revenues
713 628
Fair value adjustments on assets/liabilities at fair value through profit and loss
(573) (444)
Net annuity and premium change to policyholders accounts
394 (656)
Non-cash adjustments to finance receivables effective interest rates
- (3)
Deferred expenses
765 1,105
Revaluation loss on investment property - 150
Adjustment for movements in working capital
Net decrease/(increase) receivables and pre-payments(1,870) 937
Net decrease/(increase) in inventories 389 5,923
Net increase in payables(7,033) 12,580
Net decrease in contract liabilities(265) (345)
Net increase in finance receivables(11,117) (6,814)
Net decrease in reverse annuity mortgages 673 572
Net (decrease)/increase of insurance assets at fair value through profit or loss(2,293) 3,872
Net (withdrawals)/contributions from life investment contracts(92) (304)
Net (decrease)/increase in deferred tax liability 2,327 (212)
Net increase in tax payable(1,413) 2,760
Net cash inflow/(outflow) from operating activities 29,671 66,792
6
TURNERS AUTOMOTIVE GROUP LIMITED
1. SEGMENTAL INFORMATION
OPERATING SEGMENTS
RevenueRevenueRevenue
TotalInter-fromTotalInter-from
segmentsegmentexternalsegmentsegmentexternal
revenuerevenuecustomersrevenuerevenuecustomers
202420242024202320232023
$'000$'000$'000$'000$'000$'000
Automotive retail 300,366 (1,750) 298,616 283,354 (5,189) 278,165
Finance 62,416 - 62,416 58,634 - 58,634
Insurance 47,838 (1,765) 46,073 45,282 (1,717) 43,565
Credit management 9,794 (10) 9,784 9,259 (36) 9,223
Corporate & other 79 - 79 48 - 48
420,493 (3,525) 416,968 396,577 (6,942) 389,635
Restated
Operating profit20242023
$'000$'000
Automotive retail 31,807 24,985
Finance 12,228 14,956
Insurance 14,287 12,468
Credit management 3,121 2,865
Corporate & other(12,304) (9,850)
Profit/(loss) before taxation49,13945,424
Income tax(16,173) (12,941)
Profit attributable to shareholders 32,966 32,483
202420232024202320242023
$'000$'000$'000$'000$'000$'000
Automotive retail687225(3,583)(2,349)(9,700)(9,141)
Finance54,55151,508(18,399)(13,281)(775)(725)
Insurance3,5052,138(50)(61)(1,173)(1,211)
Credit management54(9)(11)(162)(258)
Corporate & other3120(6,174)(4,261)(158)(143)
58,77953,895(28,215)(19,963)(11,968)(11,478)
Eliminations(373)(30)37330--
58,40653,865(27,842)(19,933)(11,968)(11,478)
Other material non-cash items
20242023
$'000$'000
Finance - impairment provisions(4,562)(3,741)
Insurance - reverse annuity mortgage interest291 287
SEGMENT ASSETS AND LIABILITIES
RestatedRestated
2024202320242023
$'000$'000$'000$'000
Automotive retail163,917155,85096,47873,689
Finance457,041453,869340,080344,786
Insurance151,002136,89678,51179,576
Credit management35,43234,0352,9273,943
Corporate & other255,178238,577100,17484,618
1,062,5701,019,227618,170586,612
Eliminations(196,912)(166,413)(30,736)(4,211)
865,658852,814587,434582,401
Depreciation and
amortisation expenses
Revenue/(expenses)
Segment liabilitiesSegment assets
Interest revenueInterest expense
7
TURNERS AUTOMOTIVE GROUP LIMITED
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.
Insurance -
Credit management -
Corporate & other -corporate centre.
2. PROFIT BEFORE TAX
Revenue from continuing operations includes:20242023
$'000$'000
Interest income
Bank accounts, short term deposits and investments
3,891 2,026
Finance receivables
54,224 51,552
Reverse annuity mortgages
291 287
Total interest income
58,406
53,865
Sales of goods
215,054 205,916
Commission and other sales revenue
87,549 74,980
Loan fee income
2,669 2,988
Insurance and life investment contract income
39,181 38,514
Collection income
9,810 9,204
Bad debts recovered
1,879 1,832
Other revenue
1,597 1,728
Total operating revenue
357,739 335,162
Revenue from continuing operations
416,145
389,027
Other income includes:
Dividend income
8 5
Gain on sale of property, plant and equipment
233 378
Government wage subsidies
- 100
Rental income
386-
Other
196 125
823 608
Over time
Automotive retail
Commission and other sales revenue
21,874
16,425
Finance
Other sales revenue
3,306
2,434
At a point in time
Automotive retail
Sales of goods
215,054
205,916
Auction commissions
60,640
54,922
Credit management
Collection income
9,510
8,704
Voucher income
300
500
Insurance
Motor vehicle insurance commissions
1,729
1,199
marketing and administration of a range of life and consumer insurance and saving products.
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.
8
TURNERS AUTOMOTIVE GROUP LIMITED
Net operating profit includes the following specific expenses
20242023
$'000$'000
Depreciation
- Buildings 380
299
- Plant, equipment & motor vehicles 1,427
1,118
- Leasehold improvements, furniture, fittings & office equipment 1,064
1,075
- Computer equipment 1,419
1,274
- Signs & flags 145
198
Intangible amortisation
Amortisation of software 834
1,099
Amortisation of customer relationships 520
520
Amortisation of right-of-use asset 6,179
5,895
11,968
11,478
Movement in impairment provisions
Provisions for:
Specific impaired finance receivables
1,333
446
Collective impairment provision for finance receivables
2,699
2,784
Movement in COVID-19 overlay
-
(1,682)
Movement in economic overlay provision
345
1,965
Collective impairment on reverse annuity mortgages
54
32
Finance receivables bad debts written off
185
195
Movement 4,616
3,740
3. SHARE CAPITAL AND EARNINGS PER SHARE
20242023
$'000$'000
Number of ordinary shares
Opening balance
86,700,247
86,069,248
Shares issued for staff options
300,000
525,000
Shares issued for employee share scheme
95,305
105,999
Shares issued under dividend reinvestment plan
1,258,137
-
88,353,689 86,700,247
Basic earnings per share
Restated
20242023
$'000$'000
Profit for the Period ($'000)
32,966
32,483
Weighted average number of ordinary shares at the end of the period
87,423,305
86,518,326
Basic earnings per share (cents per share)
37.71
37.54
Weighted number of shares
Opening balance
86,700,247
86,069,248
Shares issued for staff options
211,858
385,479
Shares issued for employee share scheme
56,246
63,599
Shares issued for Dividend Reinvestment Plan
454,954
-
87,423,305 86,518,326
The calculationofbasic earningspershareat 31Marchwasbasedonthe profit attributabletoordinary shareholdersandweighted average numberofordinary shares outstanding,as
follows:
9
TURNERS AUTOMOTIVE GROUP LIMITED
Diluted earnings per share
Restated
20242023
$'000$'000
Continuing operations ($'000)
32,966
32,483
Add: Long term incentive expense relation to options ($'000)
55
265
Profit for the year ($'000)
33,021
32,748
Weighted number of ordinary shares (diluted)
Weighted average number of shares (basic)
87,423,305
86,518,326
Effect of the exercise of options
376,944
467,052
Weighted average number of shares (diluted)87,800,24986,985,378
Diluted earnings per share (cents per share)
37.61
37.65
4. CASH AND CASH EQUIVALENTS
20242023
$'000$'000
Cash and cash equivalents
17,52311,845
5. FINANCE RECEIVABLES
20242023
$'000$'000
Gross finance receivables
429,400
422,014
Deferred fee revenue and commission expenses
10,111
11,276
Provision for impairment
(6,902)
(6,704)
Economic overlay provision
(2,310)
(1,965)
430,299
424,621
Fair value
432,065
425,900
Securitisation
Turners Marque Warehouse Trust 1 (the Trust)
The calculationofdiluted earningspershareat 30Septemberand 31Marchwasbasedonthe diluted profit attributabletoshareholdersanda diluted weighted average numberof
ordinary shares outstanding as follows:
The Group's insurance businessis requiredtocomply with the solvency standards for licensed insurers issuedbythe Reserve BankofNewZealand. The solvency standards specify the
levelofassets the insurance businessis requiredtoholdin ordertomeet solvency requirements, consequently all cashandcash equivalents heldinthe insurance business maynot be
available for use by the wider Group. The Group's insurance business' cash and cash equivalents at 31 March 2024 were $2.1m (2023: $2.0m).
The Group retains substantially all the risksandrewards relatingtothe finance receivables soldandtherefore the finance receivablesdo notqualify for derecognitionandremainonthe
Group's consolidated statement of financial position.
Cashandcash equivalentsat 31March2024 of$6.7m (2023: $4.3m) belongstothe Turners Marque Warehouse Trust 1andthe Turners MarqueABS2023-1 Trustandarenotall
available to the Group.
The Trusthasa wholesale funding facility with the BankofNewZealand (BNZ) whichis securedbyfinance receivables soldtothe Trust. The facilityis for$355m andwith a 1 year term
that will be renewed annually. BNZ fund up to 90% (2023: 85%) of the purchase price of the finance receivables with the balance funded by sub-ordinated notes from the Group.
During the reporting period $202.4m finance receivables were soldtothe Trust (31March2023:$215.5m)andthe Trust sold $100.0m finance receivablestothe Turners MarqueABS
2023-1 Trust. As at 31 March 2024 the carrying value of finance receivables in the Trust was $281.2m (2023: $314.4m).
The fair values are based on cash flows discounted using a weighted average interest rate of 13.07% (2023: 11.81%).
The Grouphastwo Trustsunderwhichit securitises finance receivables. The Trusts are special purpose entities setupsolely for the purposeofpurchasing finance receivables originated
bythe finance sector. TheNewZealand Guardian Trust Company Limitedhas beenappointed TrusteeandNZGT Security Trustee Limitedasthe security trustee for both Trusts. The
Company is the sole beneficiary of both Trusts.
The Grouphasthepowerover the Trusts, exposure,orrights,tovariable returns from its involvement with the Trustsandthe abilityto use itspowerover the Truststoaffect the amountof
the Group's returns from the Trusts. Consequently the Group controls the Trusts and has consolidated the Trusts into the Group's financial statements.
10
TURNERS AUTOMOTIVE GROUP LIMITED
Turners Marque ABS 2023-1 Trust (the 2023-1 Trust)
6. BORROWINGS
20242023
$'000$'000
Secured bank borrowings
373,710
412,035
Non bank borrowings 51,608-
Total borrowings 425,318 412,035
Fair value 423,539 406,127
Secured bank borrowings
Non bank borrowings
The Group's non bank securitisation arrangement with the Accident Compensation Corporation is described under finance receivables.
7. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
Level 1Level 2Level 3Total
$'000$'000$'000$'000
31/03/2024
Fair value assets:
Financial assets at fair value through profit or loss - insurance
- 7,508- 7,508
Financial assets at fair value through profit or loss - term deposits
62,050-- 62,050
Derivative financial instruments
- 1,774- 1,774
62,050 9,282- 71,332
31/03/2023
Fair value assets:
Financial assets at fair value through profit or loss - insurance
- 7,305- 7,305
Financial assets at fair value through profit or loss - term deposits
59,425-- 59,425
Investment property
-- 5,800 5,800
Derivative financial instruments
- 5,887- 5,887
59,425 13,192 5,800 78,417
AtMarch2024the Grouphasa syndicated funding facility, including a18month working capital facility, with the BankofNewZealand,ASBBankandWestpacNewZealand, a self
liquidating trade finance facility and three year term facility with ASB Bank and a securitisation facility with the Bank of New Zealand.
Thebankborrowings are securedbya first-ranking general security agreement over the assetsofthe Companyandits subsidiaries, excluding DPL Insurance Limited, Turners Finance
Limited and EC Credit (Aust.) Limited. The bank funded securitisation financing arrangement is described under finance receivables.
The fair valueoffinancial assetsandliabilities carriedatfair value are summarisedinthe table below. The methods usedtocalculate fair value are the sameasthose appliedwhen
preparing the Group's Annual Report for the yearended 31March2023(refer note 5.5inthe Annual Report for the yearended 31March 2023). During the period there wereno
movements of fair value assets or liabilities between levels of the fair value hierarchy.
During the period the Group created the 2023-1 Trust. The 2023-1 Trust,is a closedpooltrust,andissued$100mnotes comprising$70mClassA1notesand$20.7m ClassA2notes both
ratedAAAsf(Fitch)and$9.3m unrated Class B notes, the ClassA2notesandB notes are heldbythe Group. The 2023-1 Trust purchased $100.0m finance receivables from the Trust.As
at the 31 March 2024 the carrying value of finance receivables in the 2023-1 Trust was $72.9m.
11
TURNERS AUTOMOTIVE GROUP LIMITED
8. DIVIDENDS
20242023
$’000
$’000
5,202
-
6,085 6,062
5,251 4,335
5,267 4,335
5,285-
27,09014,732
Dividends not recognised at year end
In addition to the above dividends, after year end the directors recommended the payment of the following dividend:
-5,202
6,6276,085
Final dividend for the year ended 31 March 2023 of $0.07 (31 March 2022: $0.07) per fully paid ordinary share, imputed paid on 28 July 2023
(2023: 28 July 2022).
Quarterly dividend for the year ended 31 March 2024 of $0.06 (31 March 2023: $0.05) per fully paid ordinary share, imputed, paid on 27 October
2024 (2023: 28 October 2022).
Quarterly dividend for the year ended 31 March 2023 of $0.06 per fully paid ordinary share, imputed, paid on 27 April 2023 .
Quarterly dividend for the year ended 31 March 2023 of $0.06 per fully paid ordinary share, imputed, paid on 27 April 2023.
Final dividend of $0.075 (31 March 2023: $0.07) per fully paid ordinary share, imputed, payable on 26 July 2024 (2022: 28 July 2023).
Quarterly dividend for the year ended 31 March 2024: $0.06 per fully paid ordinary share, imputed, paid on 27 March 2024.
Quarterly dividend for the year ended 31 March 2024 of $0.06 (31 March 2023: $0.05) per fully paid ordinary share, imputed, paid on 26 January
2024 (2023: 26January 2023).
12
Turners Automotive Group Limited
9. CHANGE IN ACCOUNTING POLICY
This note explains the impact of the adoption of NZ IFRS 17 Insurance Contracts on the Group’s financial statements and discloses the new accounting
policies that have been applied from 1 April 2023.
The Group has adopted NZ IFRS 17 retrospectively from 1 April 2023 and has restated certain comparative amounts, the retrospective restatement does not
have a material effect on the information in the statement of financial position at the beginning of the preceding period.
A. Recognition, measurement and presentation of insurance contracts
NZ IFRS 17 establishes principles for the recognition, measurement, presentation and disclosure of insurance contracts, reinsurance contracts and investment
contracts with discretionary participation features. It introduces a model that measure groups of contracts based on the Group’s estimates of the present
value of future cash flows that are expected to arise as the Group fulfils the contracts, an explicit risk adjustment for non-financial risk and a contractual
service margin (CSM).
Under NZ IFRS 17, insurance revenue in each reporting period represents the changes in the liabilities for remaining coverage that relate to services for
which the Group expects to receive consideration and an allocation of premiums that relate to recovering insurance acquisition cash flows. In addition,
investment components are no longer included in insurance revenue and insurance service expenses.
The Group applies the premium allocation approach (PAA) to simplify the measurement of certain contracts.
Under NZ IFRS 17, only directly attributable insurance acquisition cash flows that arise before the recognition of the related insurance contracts are recognised
as separate assets and are tested for recoverability. These assets are presented in the carrying amount of the related portfolio of contracts and are
derecognised once the related contracts have been recognised.
B. Transition
Changes in accounting policies resulting from the adoption of NZ IFRS 17 have been applied using the fair value approach as the Group cannot obtain
reasonable and supportable information necessary to apply the full or modified retrospective approach.
The change in accounting policy only relates to the insurance segment and has affected the following items in the Statement of financial position:
C. Accounting policy – Insurance contracts
Insurance contracts are those contracts that transfer significant insurance risk and are accounted for in accordance with the requirements of NZ IFRS 17
Insurance Contracts. The Group issues the following insurance contracts:
• Long-term insurance contracts with fixed and guaranteed terms, these contracts insure events associated with human life (for example, death) over a
long duration;
• Temporary life insurance contracts covering death disablement, disability and redundancy risks; and
• Short term motor vehicle contracts covering mechanical breakdown risks.
Aggregation and recognition of insurance contracts
Insurance contracts
Insurance contracts are aggregated into groups for measurement purposes. Groups of insurance contracts are determined by identifying portfolios of
insurance contracts, each comprising contracts subject to similar risks and managed together, and dividing each portfolio into annual cohorts (i.e. by year of
issue) and each annual cohort into three groups based on the profitability of contracts:
• any contracts that are onerous on initial recognition;
• any contracts that, on initial recognition, have no significant possibility of becoming onerous subsequently; and
• any remaining contracts in the annual cohort.
An insurance contract issued by the Group is recognised from the earliest of:
• the beginning of its coverage period (i.e. the period during which the Group provides services in respect of any premiums within the boundary of the
contract);
• when the first payment from the policyholder becomes due or, if there is no contractual due date, when it is received from the policyholder; and
• when facts and circumstances indicate that the contract is onerous.
When the contract is recognised, it is added to an existing group of contracts or, if the contract does not qualify for inclusion in an existing group, it forms a
new group to which future contracts are added. Groups of contracts are established on initial recognition and their composition is not revised once all
contracts have been added to the group.
Contract boundaries
The measurement of a group of contracts includes all of the future cash flows within the boundary of each contract in the group, determined as follows.
1/04/2022
$'000
Increase in Other receivables, deferred expenses and contract assets
180
Increase in Insurance contract liabilities2,561
Decrease in deferred tax impact
627
Decrease in Retained earnings1,754
13
Turners Automotive Group Limited
Insurance contracts
Cash flows are within the contract boundary if they arise from substantive rights and obligations that exist during the reporting period in which the Group
can compel the policyholder to pay premiums or has a substantive obligation to provide services (including insurance coverage and investment services). A
substantive obligation to provide services ends when:
• the Group has the practical ability to reassess the risks of the particular policyholder and can set a price or level of benefits that fully reflects those
reassessed risks; or
• the Group has the practical ability to reassess the risks of the portfolio that contains the contract and can set a price or level of benefits that fully
reflects the risks of that portfolio, and the pricing of the premiums up to the reassessment date does not take into account risks that relate to periods
after the reassessment date.
Measurement – Contracts not measure under the PAA
On initial recognition, the Group measures a group of contracts as the total of (a) the fulfilment cash flows, which comprise estimates of future cash flows,
adjusted to reflect the time value of money and the associated financial risks, and a risk adjustment for non-financial risk; and (b) the CSM.
The risk adjustment for non-financial risk for a group of insurance contracts, determined separately from the other estimates, is the compensation required
for bearing uncertainty about the amount and timing of the cash flows that arises from non-financial risk.
The CSM of a group of insurance contracts represents the unearned profit that the Group recognises as it provides services under those contracts. On
initial recognition of a group of insurance contracts, the Group determines the net present value of future cash-flows expected to arise under those
contracts, with an allowance for non-financial risk. If the result is positive (i.e. a net inflow), the group is not onerous, and a CSM is established equal to the
present value of the net inflow, hence no profit is recognised in profit or loss at contract inception. If the result is negative, the CSM is zero, and the
negative value reflects the loss on those contracts recognised at inception and is recognised as a loss in profit or loss.
Subsequently, the carrying amount of a group of contracts at each reporting date is the sum of the liability for remaining coverage and the liability for
incurred claims. The liability for remaining coverage comprises (a) the fulfilment cash flows that relate to services that will be provided under the contracts
in future periods and (b) any remaining CSM at that date. The liability for incurred claims includes the fulfilment cash flows for incurred claims and expenses
that have not yet been paid, including claims that have been incurred but not yet reported.
The fulfilment cash flows of groups of contracts are measured at the reporting date using current estimates of future cash flows, current discount rates and
current estimates of the risk adjustment for non-financial risk. Changes in fulfilment cash flows are recognised as follows.
Changes relating to future services Adjusted against the CSM (or recognised in the insurance service result
in profit or loss if the group is onerous)
Changes relating to current or past services Recognised in the insurance service result in profit or loss
Effects of the time value of money, financial risk and changes therein on
estimated future cash flows
Recognised as insurance finance income or expenses
The CSM is adjusted subsequently only for changes in fulfilment cash flows that relate to future services and other specified amounts and is recognised in
profit or loss as services are provided. The CSM at each reporting date represents the profit in the group of contracts that has not yet been recognised in
profit or loss because it relates to future service.
This approach is applied to the Group’s Funeral Plan and Annuity Insurance Life contracts.
Measurement – Contracts measured under the PAA
The Group uses the PAA to simplify the measurement of groups of contracts when the Group reasonably expects that such simplification would produce a
measurement of the liability for remaining coverage for the group that would not differ materially from the result of applying the accounting policies
described above.
On initial recognition of each group of insurance contracts, the carrying amount of the liability for remaining coverage is measured at the premiums received
on initial recognition. The Group has elected to recognise insurance acquisition cash flows as expenses when they are incurred.
Subsequently, the carrying amount of the liability for remaining coverage is increased by any further premiums received and decreased by the amount
recognised as insurance revenue for services provided. The liability for remaining coverage for in-force policies will reduce in line with the underlying
pattern of insurance risk over the duration of the contracts in the group.
If at any time before and during the coverage period, facts and circumstances indicate that a group of contracts is onerous, then the Group will recognise a
loss in profit or loss and increase the liability for remaining coverage to the extent that the current estimates of the fulfilment cash flows that relate to
remaining coverage exceed the carrying amount of the liability for remaining coverage.
The Group recognise the liability for incurred claims of a group of contracts at the amount of the fulfilment cash flows relating to incurred claims. The
liability for incurred claims is derived from undiscounted fulfilment cash flows as the Group writes only lines of business with claims that are virtually all
settled within 12 months.
This approach is applied to all the Group’s insurance contracts, except for the Group’s Funeral Plan and Annuity Insurance Life contracts.
The Group applies the same accounting policies to measure a group of reinsurance contracts, adapted where necessary to reflect features that differ from
those of insurance contracts.
Derecognition
The Group derecognises a contract when it is extinguished – i.e. when the specified obligations in the contract expire or are discharged or cancelled.
Presentation
Portfolios of insurance contracts that are assets and those that are liabilities, and portfolios of reinsurance contracts that are assets and those that are
liabilities, are presented separately in the statement of financial position. All rights and obligations arising from a portfolio of contracts are presented on a
net basis; therefore, balances such as insurance receivables and payables are no longer presented separately. Any assets or liabilities recognised for cash
14
Turners Automotive Group Limited
flows arising before the recognition of the related group of contracts (including any assets for insurance acquisition cash flows) are also presented in the
same line item as the related portfolios of contracts.
Amounts recognised in the statement of profit or loss and OCI are disclosed by the nature of the item.
Insurance contracts
For contracts not measured using the PAA, insurance revenue for each year includes the changes in the liabilities for remaining coverage that relate to
services for which the Group expects to receive consideration and an allocation of premiums that relate to recovering insurance acquisition cash flows.
For contracts measured using the PAA, insurance revenue is recognised based on an allocation of expected premium receipts to each period of coverage,
which is based on the passage of time.
Transition
Changes in accounting policies resulting from the adoption of NZ IFRS 17 have been applied using the fair value approach as the Group cannot obtain
reasonable and supportable information necessary to apply the full or modified retrospective approach.
The following items have not be applied retrospectively:
• The risk mitigation option in NZ IFRS 17 have not been applied prospectively from 1 April 2022. Certain groups of contracts to which the risk
mitigation option is applied have been measured under the fair value approach at 1 April 2022 (see below).
• The consequential amendments to NZ IFRS 3 Business Combinations introduced by NZ IFRS 17 require the Group to classify contracts acquired as
insurance contracts based on the contractual terms and other factors at the date of acquisition. This requirement has not been applied to business
combinations before 1 April 2023, for which the Group classified contracts acquired as insurance contracts based on the conditions at contract.
Reinsurance of onerous underlying contracts
For groups of reinsurance contracts covering onerous underlying contracts that were entered into before or at the same time as the onerous underlying
contracts, the Group has established a loss-recovery component at 1 April 2022.
Fair value approach
Under the "Fair Value" method of transition, the Group determines the price that an independent party would pay to take over the insurance contract
liabilities, allowing for:
• the future net cash-flows arising under those contracts;
• the time value of money; and
• the compensation that the purchaser would require for the uncertainty relating to those cash-flows.
Non-performance risk of the contract issuer is taken into account in determining the fair value. In the valuation of portfolios of insurance contracts, the non-
performance risk is normally taken as zero as it is assumed that policyholder obligations will be met with certainty.
The opening value of Contractual Service Margins is then equal to the difference between the Fair Value, and the value of fulfilment cash-flows determined
under NZ IFRS 17.
15
---
Distribution Notice (updated)
Name of issuer
Financial product name/description
NZX ticker code
ISIN
Type of distributionFull YearXQuarterly
(Please mark with an X in the Half YearSpecial
relevant box/es)
DRP appliesX
Record date
Ex-Date(onebusinessdaybeforethe
Record Date)
Payment date
Totalmoniesassociatedwiththe
distribution
6,626,526.68$
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
DRP % discount (if any)
Start date and end date for
determining market price for DRP
Date strike price to be announced (if
not available at this time)
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
New issue
DRP strike price per financial product
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
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@turners.co.nz
21 May 2024
Fully imputed
28%
$0.02916667
$0.00520833
Section 4: Authority for this announcement
Barbara Badish
Section 4: Distribution re-investment plan (if applicable)
2%
24 July 2024
19 July 2024
17 July 202423 July 2024
Todd Hunter
021 722 818
Section 3: Imputation credits and Resident Withholding Tax
18 July 2024
17 July 2024
26 July 2024
Retained earnings
NZD
Section 2: Distribution amounts per financial product
$0.10416667
$0.07500000
n/a
$0.01323529
Section 1: Issuer information
Turners Automotive Group Limited
Ordinary shares
TRA
NZVNLE0001S1
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.