Turners – NZX Virtual Investor Event

1• NZX VIRTUAL INVESTOR EVENT -TURNERS AUTO GROUP
NZX Virtual Investor
Event
Oct 2023
Todd Hunter –Group CEO

2• NZX VIRTUAL INVESTOR EVENT -TURNERS AUTO GROUP
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.

3• NZX VIRTUAL INVESTOR EVENT -TURNERS AUTO GROUP
We love cars
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Overview of Turners Automotive Group
NZX and ASX listed business with over 50 years of heritage
700+ kiwis employed and 4,500 shareholders
FY23
$278M revenue
$25M profit
~9% market share
FY23
$59M revenue
$15m profit
11% of auto loan market
FY23
$44M revenue
$12.6M profit
60% of Mechanical breakdown
insurance market
FY23
$9.2M revenue
$3M profit
20% of NZ debt collection market
47th largest
company on NZX by
free float market
cap 9-10-23

5• NZX VIRTUAL INVESTOR EVENT -TURNERS AUTO GROUP
Turners has built a strong and sustainable business
with a proven track record...
* Dividends fully imputed from FY17 onwards
3
65
89
126
8
51
67
91
-
20.0
40.0
60.0
80.0
100.0
120.0
140.0
FY12 - FY14FY15 - FY17FY18 - FY20FY21 - FY23
Total NPBT/NPAT over 3 year period ($M)
NPBTNPAT
0
38
47
66
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
FY12 - FY14FY15 - FY17FY18 - FY20FY21 - FY23
Aggregate dividends paid over 3 year period (cps)

6• NZX VIRTUAL INVESTOR EVENT -TURNERS AUTO GROUP
21.6
24.6
31.1
29
29.1
37.4
43.1
45.5
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
FY16FY17FY18FY19FY20FY21FY22FY23
On track to better FY23 and achieve record result in FY24
Net profit beforetax
CAGR 11%
Updated guidance issued this week
•HY24 net profit after tax will be at least $25M
•After a strong H1 comfortable to reaffirm that our
FY24 result will be ahead of record FY23 result.
•Forecast dividend at this level of profit will be 24
cents per share (+4%).

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We operate to a simple formula

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Quality outcomes
for our
shareholders
Quality
environment
for our people
+
Quality
customer
experiences
=

9• NZX VIRTUAL INVESTOR EVENT -TURNERS AUTO GROUP
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 continue to invest in training, remuneration, and
other benefits eg.in FY23 we launched an Employee
Share Scheme with just under 50% take up
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
Aug-20Oct-20Dec-20Mar-21Jun-21Sep-21Nov-21Mar-22Jul-22Oct-22Mar-2323-Jun
How likely is it that you would recommend Turners Automotive
Group as a place to work?

10• NZX VIRTUAL INVESTOR EVENT -TURNERS AUTO GROUP
We're building
our“ownership” of
the used car category.
Most trusted winner
for 4th year in a row.

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0.10
0.13
0.145
0.155
0.17
0.14
0.20
0.230.23
0.24
0.00
0.05
0.10
0.15
0.20
0.25
0.30
FY15FY16FY17FY18FY19FY20FY21FY22FY23FY24 (F)
Turners has been growing dividends for almost a decade
Dividend per Share ($)
Note -Dividends fully imputed from FY17 onwards
•Proven track record of delivering.
•Dividend payoutratio is 60-70% of NPAT.
•Quarterly dividend payments
•Q1 dividend declared at 6.0 cps paid on the 28
th
Oct.
•Based on the projected 24.0 cents per share
dividendand a share price of $4.00 this is a gross yield
of 8.3% pa.
•Dividend reinvestment plan (DRP) will continue.
COVID
impacted year

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3 Segment Overview

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Go to www.turnersautogroup.co.nz
Investor Centre / Results and Presentations
Our Annual Shareholder Meeting presentation
has a lot of good detailed information in here on
the business divisions

14• NZX VIRTUAL INVESTOR EVENT -TURNERS AUTO GROUP
AutoRetaildivision
•Market share has continued to grow
•Local vehicle sourcing strategy continues to deliver
•New branches delivering and good pipeline building
•Big opportunity to transfer sales from our wholesale
auction channel (49% of sales or 18,500 units) into our
retail channel...margin and yield uplift
•Damaged and end of life vehicle business performing well
off the back of aging NZ vehicle fleet
Branch expansion and retail optimisationkey areas of focus
Turners Retail Quarterly Market Share
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
10.00%
Tina
campaign
started

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Retail expansion pipeline
LocationSizeTiming
Expected
additional
profit
contribution
Timaru4,000m2Q4 FY24$500k
Napier (site
expansion)
8,000m2Q4 FY24$500k
Christchurch -
Hornby
15,500m2Q4 FY25$400k
Christchurch –
Burnside (Airport
precinct)
8,000m2Q4 FY25$300k
Christchurch –
City Centre
6,000m2Q1 FY26$500k
New locations
•Takanini/Drury
•Whanganui
•North East Christchurch
•Lower Hutt
•Albany North
Existing locations expansion
•Invercargill
•New Plymouth
•Tauranga
Committed development pipeline
“Opportunities” pipeline
Ready for expansion. We have a balance of committed sites and future opportunities​
We own 14 of our sites with a cost
value of $95M

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Timaru: New territory open Nov-23

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Napier: Bigger better branch open Nov-23

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Christchurch: 1 becomes 3 from mid-2025 to 2026
Hornby
Wairakei
Moorhouse

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Financedivision
•Quality and margin have beenhigher priorities.
•Our borrower “quality” metrics continue to improve
•Interest rate cycle has been a head wind...but this will turn into a
tail wind in time
•Growth in Turners Cars business has halo impact for Oxford.
•AAA rating from Fitch on the Oxford Finance receivables
•Arrears tracking well below pre-covidlevels
Average Credit Score
Average consumer CENTRIX
credit score
Average Centrix
auto loan
portfolio score
Improving credit quality and maintaining margin key focus areas given environment

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0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
Apr-20
May-20
Jun-20
Jul-20
Aug-20
Sep-20
Oct-20
Nov-20
Dec-20
Jan-21
Feb-21
Mar-21
Apr-21
May-21
Jun-21
Jul-21
Aug-21
Sep-21
Oct-21
Nov-21
Dec-21
Jan-22
Feb-22
Mar-22
Apr-22
May-22
Jun-22
Jul-22
Aug-22
Sep-22
Oct-22
Nov-22
Dec-22
Jan-23
Feb-23
Mar-23
Apr-23
May-23
Jun-23
Jul-23
Aug-23
Total consumer arrearsIndustry arrears (Centirx)
Quality lending strategy resulting in arrears at well below
industry benchmarks
Oxford
Finance
3.1%
2.0%
Consumer arrears
Centrix Auto
Loan Portfolio
6.0%

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Insurancedivision
•Market share gains continuing to provide robust policy sales
despite challenging market conditions.
•Risk pricing continues to be refined
•Digital distribution arrangements continuing to work well
with further opportunities in pipeline
•Claims Costs inflation being offset by frequency of claims
reducing due to changes in consumer behavior (WFH and
cost of living)
•Pandemic and weather events have confirmed no
catastrophe risk in portfolio, and our de-risking strategy has
worked effectively
Mechanical Breakdown Insurance Loss Ratio Performance
66%
60%
58%
58%
FY20FY21FY22FY23
Growing market share and focus on digital distribution

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4 Outlook

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What’s next...
•Business has never been stronger, building genuine ownership of the used car category in NZ.
•On track to achieve our 10% market share goal in Auto Retail in the near term...
•Still so much opportunity in the used car space, 20% of registered cars in NZ 20+ years old.
•A strong Auto Retail business has a great halo effect for finance and insurance.
•We have huge strength in the Turners brand, systems, technology and people...we need to push ourselves to see what
else we can do with this brand.
•Membership into the “NZX50 club” is close, as is our $50M profit target.

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We love cars
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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