2CC Group Interim results for Half Year 2026

13 November 2025
Market announcement
NZX:2CC
Interim dividend declared despite challenging market conditions
2 Cheap Cars Group Limited (NZX:2CC) has reported net profit after tax (NPAT) of $1.01m for the
half year ended 30 September 2025 (HY26), down from $1.67m in HY25.
Summary of key results
(Figures quoted are in NZ dollars; comparisons are made against HY25)
• Revenue and income: $39.77 million down from $42.01 million
• Gross margin YTD: $7.86 million, down from $9.06 million
• Underlying EBITDA (including finance income): $3.1 million, down from $3.8 million
• Net profit after tax (NPAT): $1.01 million, down from $1.67 million
• Underlying earnings per share (EPS): 2.2 cents per share vs 3.7 cps
• Vehicle sales: 3,604 units, down 13%
Performance overview
The first half of FY26 was challenging, with continued economic weakness, margin pressure, low
immigration numbers and high regulatory costs directly impacting the used-vehicle industry, and the
cost-of-living crisis weighing heavily on consumer confidence.

These conditions saw revenue decline 5% to $39.8 million in the first half of FY26, reflecting lower
sales volumes. This was partially offset by improved retail pricing and stronger finance and insurance
penetration. Finance penetration rose to 32%, up five percentage points, while insurance penetration
reached 41%, supported by lower interest rates and effective sales execution.

Gross margin decreased by two percentage points to 19%, primarily due to the impact of carbon tax
costs under the Clean Car Standard. The $0.7 million decrease in NPAT primarily reflected the $0.7
million after-tax impact of the Clean Car Standard, as other favourable and unfavourable movements
largely offset each other.

However, the Group continues to maintain a strong balance sheet, with $4.6 million in cash, stable
debt levels, and inventory carefully managed to align with current demand.

Market overview

Weak economic growth, subdued consumer confidence, and a significant reduction in net migration
collectively reduced imported used vehicle sales volumes in HY26.

The Clean Car Standard, has exacerbated this situation through increased complexity and costs for
used vehicle importers due to shifting compliance thresholds and rising carbon credit costs.

While overall trading conditions remain subdued, several external factors have provided partial
offsets. Lower interest rates are improving vehicle affordability through reduced finance costs, while a
strong New Zealand dollar against the Japanese yen has supported more favourable import pricing.
There is, however, significant international competition for late-model, fuel-efficient Japanese vehicles
that is continuing to drive up procurement costs and tighten supply.

The Company is also beginning to benefit from increased local sourcing opportunities through direct
purchases from the public, alongside trade-ins, which, while still a small fraction of total purchases,
help to reduce exposure to carbon credit obligations and support a more balanced inventory mix.

Strategic update
In response to the continued difficult market conditions, the Company has made several operational
adjustments to enhance flexibility and strengthen long-term capability. A senior Brand and Marketing
Manager is being recruited to accelerate investment in direct-to-consumer channels and reinforce
brand positioning.
And to reinforce the Company’s ability to source consistent supplies of high-quality, late-model
vehicles, 2 Cheap Cars CEO David Sena is increasing his direct involvement and time on the ground
in Japan to strengthen the capability of the local procurement team
As vehicle volumes remain volatile, the Company has reassessed its compliance insourcing strategy
and reverted to a hybrid compliance model, combining in-house expertise with selected outsourced
suppliers to avoid unnecessary overheads and improve capacity management and responsiveness.
Dividend

The Board has declared a HY26 interim dividend of 2.15 cents per share (gross), representing 70% of
the underlying NPAT for the period. The record date for the dividend is 21 November 2025, with
payment scheduled for 5 December 2025. This decision reflects the Group’s commitment to delivering
shareholder value while maintaining prudent financial management.

Outlook

Market conditions are expected to remain challenging through the second half of FY26.
While 2 Cheap Cars will likely benefit from easing interest rates and the contribution from new
flagship dealerships, these positives are being outweighed by the broader economic and regulatory
environment. The pace of recovery in demand is expected to remain gradual, and trading in the
second half of FY26 is not anticipated to materially exceed the first half. The Group continues to
expect full-year profitability to be lower than FY25, reflecting the ongoing cost and volume pressures
across the sector.
Chairman Michael Stiassny noted that while the business is performing solidly, the impact of Clean
Car Standard compliance costs was not to be underestimated.
“As recently highlighted by the Imported Motor Vehicle Industry Association, the Clean Car Standard
is creating an unintended consequence whereby increasing compliance costs are making used
imported vehicles unaffordable for many households who are then forced to retain older, higher-
emitting vehicles.

“We continue to control what is within our power to control. The business remains tightly managed,
with a disciplined focus on efficiency, cash generation, and balance sheet strength.”
The figures included in this announcement are unaudited.
Ends
This announcement has been authorised by 2CC Chair, Michael Stiassny.
For shareholder enquiries, please contact
Angus Guerin
CFO
Mobile: +64 21 998 708
Email: angus.guerin@2ccgroup.co.nz
About 2 Cheap Cars Group
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.

---

2 Cheap Cars Group Limited
Interim financial statements
For the 6 month period ended 30 September 2025

2 Cheap Cars Group Limited
Consolidated statement of profit or loss and other comprehensive income
For the 6 month period ended 30 September 2025
UnauditedUnaudited
NoteSEP 2025SEP 2024
$'000$'000
Revenue
Revenue and income39,750 41,978
Sundry income20 35
Expenses
Cost of sales(31,914) (32,950)
Administration expenses(1,475) (1,670)
Advertising expenses(1,265) (1,106)
Depreciation & amortisation expenses(1,429) (1,279)
Employee benefits(1,542) (1,907)
Finance expenses(311) (368)
Property expenses(437) (409)
Profit before income tax31,397 2,324
Income tax expense(391) (651)
Profit for the period1,006 1,673
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Translation of foreign operations(122) 5
Total other comprehensive income(122) 5
Total comprehensive income for the period884 1,678
Earnings per share
Basic earnings per share 0.02 0.04
Diluted earnings per share 0.02 0.04
The accompanying notes form part of these interim consolidated financial statements
1

2 Cheap Cars Group Limited
Interim consolidated statement of financial position
As at 30 September 2025
UnauditedAudited
NoteSEP 2025MAR 2025
Note$'000$'000
Equity
Share capital39,344 39,344
Amalgamation reserve(35,956) (35,956)
Foreign currency translation reserve26 148
Retained earnings17,550 17,525
Total equity20,964 21,061
Current liabilities
Trade and other payables1,992 3,214
Employee benefit liabilities819 862
Borrowings133 114
Income tax payable(80) 459
Derivative financial liabilities(3) (38)
Related party payable10 10
Lease liability2,313 2,084
Other current liabilities8 14
Total current liabilities5,192 6,719
Non-current liabilities
Lease liability6,965 5,598
Borrowings732 823
Total non-current liabilities7,697 6,421
Total equity and liabilities33,853 34,201
Current assets
Cash and cash equivalents4,577 5,344
Trade and other receivables283 192
Other current assets1,609 882
Loans receivable4177 385
Inventories14,150 14,932
Total current assets20,796 21,735
Non-current assets
Other non current assets951 896
Plant, property and equipment2,692 2,708
Intangible assets682 1,589
Loans receivable4212 286
Deferred tax asset133 133
Right-of-use assets8,387 6,854
Total non-current assets13,057 12,466
Total assets 33,853 34,201
Approved on behalf of the Board on 12th November 2025
DirectorDate12-Nov-25
DirectorDate12-Nov-25
The accompanying notes form part of these interim consolidated financial statements
2

2 Cheap Cars Group Limited
Consolidated statement of changes in equity
For the 6 month period ended 30 September 2025
Share
Capital
Retained
Earnings
Foreign
Currency
Translation
Reserve
Amalgamation
Reserve
Total Equity/
(Accumulated
Losses)
$'000$'000$'000$'000$'000
Balance as at 01 April 202439,344 17,140 (155) (35,956) 20,373
Profit for the period- 3,300 - - 3,300
Translation of foreign operations- - 303 - 303
Total comprehensive income for the period- 3,300 303 - 3,603
Dividend paid- (2,915) - - (2,915)
Total transactions with owners of the group- (2,915) - - (2,915)
Balance as at 31 March 202539,344 17,525 148 (35,956) 21,061
Balance as at 01 April 202539,344 17,525 148 (35,956) 21,061
Profit for the period- 1,006 - - 1,006
Translation of foreign operations- - (122) - (122)
Total comprehensive income for the period- 1,006 (122) - 884
Dividend paid- (981) - - (981)
Total transactions with owners of the group- (981) - - (981)
Balance as at 30 September 202539,344 17,550 26 (35,956) 20,964
The accompanying notes form part of these interim consolidated financial statements
3

2 Cheap Cars Group Limited
Interim Consolidated Statement Of Cash Flows
For the 6 month period ended 30 September 2025
UnauditedUnaudited
SEP 2025SEP 2024
$'000$'000
Cash flows from operating activities
Cash receipts from customers39,664 41,988
Cash paid to suppliers and employees(35,835) (39,602)
Interest received51 62
Interest paid - retail operations(24) (57)
Tax paid / received(1,939) (1,567)
Net cash inflow from operating activities before Changes in Operating Assets and
Liabilities
1,917 824
Proceeds from loan receivables242 628
Net cash inflow from operating activities2,159 1,452
Cash flows from investing activities
Proceeds from sale of property, plant and equipment- 28
Purchase of property, plant and equipment(200) (288)
Purchase of Intangible Assets(91) -
Decrease / (increase) in lease guarantee deposits(55) (242)
Net cash outflow from investing activities(346) (502)
Cash flows from financing activities
Dividend paid(981) (1,907)
Interest paid - finance operations(268) (275)
Net (repayment) /proceeds of borrowings(73) -
Principal elements of lease payments(1,136) (905)
Net cash outflow from financing activities(2,458) (3,087)
Net increase/(decrease) in cash and cash equivalents(645) (2,137)
Cash and cash equivalents at beginning of period5,344 4,673
Effect of exchange rate(122) 5
Cash and cash equivalents at end of period4,577 2,541
The accompanying notes form part of these interim consolidated financial statements
4

Notes to the financial statements
1. Reporting entity
2. Basis of preparation
(a) Statement of compliance
(b) Basis of measurement
• Derivative financial instruments
• Loans receivable (Note 4)
(c) Functional and presentation currency
(d) Going Concern
(e) Critical accounting estimates and judgements
(f) Changes in accounting policies
There were no accounting policy changes during the period.
TheseinterimconsolidatedfinancialstatementsfortheGrouparepresentedinNewZealanddollars($),whichistheGroup'sfunctionalandtheGroup'spresentation
currency. All financial information presented has been rounded to the nearest thousand dollars.
2 Cheap Cars Group Limited (the Company) is a company domiciled in New Zealand.
The Company is incorporated in New Zealand, registered under the Companies Act 1993 and is publicly traded on the New Zealand Stock Exchange.
These interim consolidated financial statements comply with the requirements of the Companies Act 1993 and the Financial Markets Conduct Act 2013.
These interim consolidated financial statements as at 30 September 2025 comprise the Company and its subsidiaries:
2CheapCarsLimited,NZMotorFinanceLimited,2CCInternationalLimited,2CheapRentalCarsLimited,CarSafetyNZLimitedandCarPlusK.K.(collectively,the
Group).
TheseunauditedinterimconsolidatedfinancialstatementshavebeenpreparedinaccordancewithGenerallyAcceptedAccountingPracticeinNewZealand(GAAP)
andtherequirementsoftheFinancialMarketsConductAct2013.TheyhavebeenpreparedinaccordancewithIAS34'Interimfinancialreporting'.Theydonot
includealloftherequiredinformationinannualfinancialstatementsinaccordancewithIFRSandshouldbereadinconjunctionwiththeconsolidatedfinancial
statements for the year ended 31 March 2025.
Theinterimconsolidatedfinancialstatementshavebeenpreparedonthehistoricalcostbasisexceptthatcertainassetsandliabilitiesaremeasuredatfairvalue
where stated under their specific accounting policies.
The Directors consider that the Group is a going concern and the consolidated financial statements have been prepared on that basis.
Thepreparationoftheconsolidatedfinancialstatements,requiresmanagementtomakejudgements,estimatesandassumptionsthataffecttheapplicationof
accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimatesandunderlyingassumptionsarereviewedonanon-goingbasis.Revisionstoaccountingestimatesarerecognisedintheperiodinwhichtheestimatesare
revised and in any future periods affected.
5

3. Segment reporting
Description of segments
Reportable segments have been identified as follows:
Operating Segments
AutomotiveOther
As at 30 September 2025retailFinanceentitiesTotal
$'000$'000$'000$'000$'000
Revenue including interest39,551 70 13,273 (13,144) 39,750
Sundry Income14 - 6 - 20
Cost of sale(33,414) - (11,644) 13,144 (31,914)
Operating expense(4,580) (54) (1,514) - (6,148)
Operating profit1,571 16 121 - 1,708
Dividend received- - 981 (981) -
Interest expense - trading(279) (27) (13) 8 (311)
Net profit before tax1,292 (11) 1,089 (973) 1,397
AutomotiveOther
As at 30 September 2024retailFinanceentitiesTotal
$'000$'000$'000$'000$'000
Revenue including interest41,788 169 5,406 (5,385) 41,978
Sundry Income35 - 26 (26) 35
Cost of sale(34,387) - (3,948) 5,385 (32,950)
Operating expense(4,667) (91) (1,613) - (6,371)
Operating profit2,769 78 (129) (26) 2,692
Interest expense - trading(331) (51) - 14 (368)
Net profit before tax2,438 27 (129) (12) 2,324
Inter-entity
transactions
Inter-entity
transactions
ManagementhasdeterminedtheoperatingsegmentsbasedonthecomponentsoftheGroupthatengageinbusinessactivities,whichhavediscretefinancial
informationavailableandwhoseoperatingresultsareregularlyreviewedbytheGroup'schiefoperatingdecisionmaker.Thechiefoperatingdecisionmakerhas
beenidentifiedastheBoardofDirectors.TheBoardofDirectorsmakesdecisionsabouthowresourcesareallocatedtothesegmentsandassessestheir
performance. Geographically the Group's business activities are located in New Zealand.
6

4. Loans Receivable
Determination of fair values
Loans and receivables – At amortised cost book valueBook value
Loans and receivables – At fair value through profit and lossDiscounted cash flow
Fair value through
Amortised costprofit and loss Total
Opening balance (1 April 2024)
Gross carrying value1,113 816 1,930
Less: Impairment allowance (109) - (109)
Total Loans receivable1,005 816 1,821
Movements during the period
Advances of loans to customers - - -
Repayments of loans by customers(728) (550) (1,278)
Movement in accrued interest119 113 232
Other accrued repayments22 29 51
Movement in Impairment Allowance(50) - (50)
Fair value gain/(loss) on revaluation- (104) (104)
Total Movements(637) (512) (1,150)
Gross carrying value526 304 830
Less: Impairment allowance (159) - (159)
Total Loans receivable367 304 671
Closing balance (31 March 2025)
Current portion305 239 544
Non-current portion221 65 286
Less: Impairment allowance (159) - (159)
Total Loans receivable367 304 671
Fair value through
Amortised Costprofit and loss Total
Opening balance (1 April 2025)
Gross carrying value526 304 830
Less: Impairment allowance (159) - (159)
Total loans receivable367 304 671
Movements during the period
Repayments of loans by customers(177) (112) (289)
Movement in accrued interest37 - 37
Other accrued repayments6 4 10
Movement in Impairment Allowance(27) - (27)
Fair value gain/(loss) on revaluation- (13) (13)
Total movements(161) (121) (283)
Gross carrying value392 183 575
Less: Impairment allowance (186) - (186)
Total loans receivable206 183 389
Closing balance (30 September 2025)
Current portion225 138 363
Non-current portion168 44 212
Less: Impairment allowance (186) - (186)
Total loans receivable207 182 389
5. Subsequent events
Loans receivable measured at amortised cost (financial assets which represent solely payments of principal and interest) have been impaired at 47.4%, using the
expected credit loss model.
The effective interest rate on loans receivable at amortised cost are 9.95% - 17.95%.
No significant events have occurred subsequent to the balance date.
Loans receivable measured at fair value (financial instruments that include waiver based clauses) are modelled at fair value and include an effective default risk
impairment rate of 31.9% which is factored into the valuation inputs.
The Company ceased additional lending in July 2022 with the remaining loan book now being wound down.
7

---

Results announcement



Results for announcement to the market
Name of issuer 2 Cheap Cars Group Limited
Reporting Period 6 months to 30 September 2025
Previous Reporting Period 6 months to 30 September 2024
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$39,750 -5%
Total Revenue $39,770 -5%
Net profit/(loss) from
continuing operations
$1,006 -40%
Total net profit/(loss) $884 -47%
Interim/Final Dividend
Amount per Quoted Equity
Security
$0.01550000
Imputed amount per Quoted
Equity Security
$0.00602778
Record Date 21/11/2025
Dividend Payment Date 05/12/2025
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.44 $0.43
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Please refer to accompanying Results Announcement
Authority for this announcement
Name of person

authorised
to make this announcement
David Sena, CEO
Contact person for this
announcement
Angus Guerin, CFO
Contact phone number 021 998 708
Contact email address angus.guerin@2ccgroup.co.nz
Date of release through MAP

13/11/2025

Unaudited financial statements accompany this announcement.

---

Template
Distribution Notice

Updated as at June 2023



Please note: all cash amounts in this form should be provided to 8 decimal places, including zeros (ie 0.01001000)

Please do not amend or delete individual rows. As this template relates to prescribed content, changes to content
should only be made where it is clearly indicated that this is permitted, otherwise, if an Issuer considers a particular
element does not apply, mark the row as N/A, Any other changes to this prescribed form must first be approved by
NZX as required under NZX Listing Rule 3.26.1.

Section 1: Issuer information
Name of issuer 2 Cheap Cars Group Limited
Financial product name/description Ordinary Shares
NZX ticker code 2CC
ISIN (If unknown, check on NZX
website)
NZNZAE0001S5
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies
Record date 21/11/2025
Ex-Date (one business day before the
Record Date)
20/11/2025
Payment date (and allotment date for
DRP)
05/12/2025
Total monies associated with the
distribution
1

$ 706,094.75
Source of distribution (for example,
retained earnings)
Retained Earnings
Currency New Zealand Dollar
Section 2: Distribution amounts per financial product
Gross distribution
2
$ 0.02152778
Gross taxable amount
3
$ 0.02152778
Total cash distribution
4
$ 0.01550000
Excluded amount (applicable to listed
PIEs)
$ N/A
Supplementary distribution amount $ 0.00273529


1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.

Section 3: Imputation credits and Resident Withholding Tax
5

Is the distribution imputed

Fully imputed


If fully or partially imputed, please
state imputation rate as % applied
6

28%
Imputation tax credits per financial
product
$ 0.00602778
Resident Withholding Tax per
financial product
$ 0.00107639


Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
David Sena, CEO
Contact person for this
announcement
Angus Guerin, CFO
Contact phone number 021998708
Contact email address Angus.guerin@2ccgroup.co.nz
Date of release through MAP

13/11/2025






5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.



6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.