Correction to Imputation Credit Account balance

18 August 2025
Market Announcement
NZX:2CC


Correction to Imputation Credit Account balance
2 Cheap Cars Group Limited (2CC) advises that a review of shareholding changes during the
2024 financial year has identified an overstatement of the Company’s imputation credit
account (ICA) balance in both the FY24 and FY25 financial statements and annual reports.
This overstatement arose from an inadvertent breach of shareholder continuity rules for
imputation purposes, which occurred in October 2023. Consequently, imputation credits
accumulated before 30 May 2023 were forfeited, while credits earned after this date remain
available for use. The total value of forfeited imputation credits is estimated to be
approximately $3.7 million. The Company’s reported ICA balances for FY24 and FY25 did not
account for this.
The Company does not currently anticipate restating and reissuing the FY25 financial
statements or annual report, subject to guidance received from relevant regulatory bodies
and the Company’s external advisers, with the required correction to be made in the FY26
financial statements and annual report.
Impact on shareholders
The Company wishes to reassure shareholders of the following:
 No shareholder tax impact from loss of imputation credits: All imputation credits
attached to dividends already paid remain valid. Shareholders will not face any
adverse tax consequences related to dividends paid since 30 May 2023 as a result of
the forfeiture of imputation credits.
 Sufficient imputation credits for future dividends: The ICA currently holds enough
imputation credits to fully impute future dividends under the existing dividend policy
of paying 60% of NPAT. While there are no plans to change the dividend policy, the
Company will review the availability of imputation credits if the payout ratio were to
increase materially, particularly during a period of significant profit growth.
 Dividend policy remains unchanged: The Company’s policy of distributing 60% of
NPAT as dividends remains in place and is unaffected by this adjustment.
Next steps
The Company will file an amended FY24 imputation return with Inland Revenue to reflect
the loss of shareholder continuity, including payment of a minor penalty for a temporarily

overdrawn balance. This adjustment will not affect the Company’s ability to pay fully
imputed dividends under its current dividend policy.
2 Cheap Cars remains committed to transparency and timely communication with
shareholders and will keep the market informed of any material developments.
ENDS
This announcement has been authorised by 2 Cheap Cars Group Chair, Michael Stiassny.

About 2 Cheap Cars Group (2CC)
2 Cheap Cars Group is an integrated used automotive group.  We are vertically integrated
from procurement in Japan through to our retail branches nationwide.  Operating under the
“2 Cheap Cars” brand, our Automotive Retail company is one of the largest used vehicle
sellers in New Zealand with 12 dealerships across the country. Our mission is to deliver on
our promise... 2 Cheap Cars, driving better deals, every day.