Slides
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As seen, worldwide FY25 INTERIM RESULTS PRESENTATION 25 FEBRUARY 2025
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2thl FY25 INTERIM RESULTS PRESENTATION This presentation contains forward- looking statements and projections. These reflect thl’s current expectations, based on what it thinks are reasonable assumptions. The statements are based on information available to thl at the date of this presentation and are not guarantees or predictions of future performance. For any number of reasons, the future could be different and the assumptions on which the forward-looking statements and projections are based could be wrong. thl gives no warranty or representation as to its future financial performance or any future matter. Except as required by law or NZX listing rules, thl is not obliged to update this presentation after its release, even if things change materially. This presentation has been prepared for publication in New Zealand and may not be released or distributed in the United States. This presentation is for information purposes only and does not constitute financial advice. It is not an offer of securities, or a proposal or invitation to make any such offer, in the United States or any other jurisdiction, and may not be relied upon in connection with any purchase of thl securities. thl securities have not been, and will not be, registered under the US Securities Act of 1933 and may not be offered or sold in the United States, except in transactions exempt from, or not subject to, the registration of the US Securities Act and applicable US State securities laws. Past performance information given in this presentation is given for illustrative purposes only and should not be relied upon as an indication of future performance. This presentation may contain a number of non-GAAP financial measures. Because they are not defined by Generally Accepted Accounting Practice in New Zealand (NZ GAAP) or International Financial Reporting Standards (IFRS), thl’s calculation of these measures may differ from similarly titled measures presented by other companies and they should not be considered in isolation from, or construed as an alternative to, other financial measures determined in accordance with NZ GAAP. This presentation does not take into account any specific investors objectives and does not constitute financial or investment advice. Investors are encouraged to make an independent assessment of thl. The information contained in this presentation should be read in conjunction with thl’s latest financial statements, which are available at: www.thlonline.com. Disclaimer
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thl FY25 INTERIM RESULTS PRESENTATION Executive Summary 3 • Underlying net profit after tax of $26.5M, down 33% • Statutory net profit after tax of $25.3M, down 36% • Group Return on Funds Employed (trailing 12 months) of 8.1% • Underlying EBITDA of $113.3M, down 5% • Continued recovery in international tourism underpins rental fleet growth of 11% and rental revenue growth of 8% • Ongoing vehicle sales challenges result in 4% decrease in sale of goods revenue and lower margins for ex-rental and retail RV sales • Interim FY25 dividend of 2.5 cents per share, 100% imputed and 0% franked • Progressing cost-out and optimisation initiatives, continued confidence in delivering a benefit of at least $12M NPAT in FY27 • We remain focused on increasing underlying NPAT in FY25, but acknowledge the risks and uncertainty in the coming period • Market factors, including a more prolonged downturn in RV sales, may delay our recovery until FY26 and prevent us from delivering underlying NPAT growth in FY25 • We intend to provide FY25 earnings guidance in the fourth quarter of FY25, when there is more clarity
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Results Summary COMPARED TO THE PRIOR CORRESPONDING PERIOD UNDERLYING NET PROFIT AFTER TAX2 $26.5M -33% STATUTORY NET PROFIT AFTER TAX $25.3M -36% UNDERLYING EBIT2 $59.6M -19% UNDERLYING EBITDA2 $113.3M -5% RENTAL REVENUE $232M +8% SALE OF GOODS REVENUE $206M -4% INTERIM DIVIDEND 2.5cps 1. On 31 December 2024 & 31 December 2023. 2. Excludes non-recurring items. Refer to slide 31 for a reconciliation of underlying NPAT, EBIT and EBITDA. thl FY25 INTERIM RESULTS PRESENTATION CLOSING RENTAL FLEET1 8,172 +11% -44%
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thl FY25 INTERIM RESULTS PRESENTATION Return on Funds Employed (Trailing 12 Months) New Zealand divisions above target; North America and UK/Ireland bring down group performance 5 • Due to the seasonality of thl’s divisions, ROFE should be evaluated over a 12-month period • Group Return on Funds Employed for the 12 months ending 31 December 2024 was 8.1% • thl targets each division delivering at least 15% ROFE • New Zealand continues to excel with ROFE well above target • The North America and UK divisions have remained well below target. The Board and Management have a clear focus on driving improvement in these divisions • ROFE in Australia is impacted by retail RV sales. The division also carries most of the goodwill from the Apollo merger 1. thl uses Adjusted EBIT to calculate ROFE. Adjusted EBIT reflects underlying EBIT and includes lease interest costs arising from IFRS 16. Average Funds and Period End Funds exclude IFRS 16 lease liabilities. Refer to the Glossary of Key Terms on slide 28 for further detail on the calculation methodology for ROFE, and on slide 31 for a reconciliation of Adjusted EBIT to Reported EBIT. 2. Funds employed in the Australian Rentals, Sales & Manufacturing division includes $114.2M of the goodwill recognised as part of the merger with Apollo Tourism & Leisure Limited. $M NZD Adjusted EBIT1 Average Funds1 Period End Funds1 Return on Funds Employed New Zealand Rentals & Sales 47.6 250.5 268.9 19.0% Australian Rentals, Sales & Manufacturing2 32.9 379.1 391.5 8.7% North America Rentals & Sales 1.7 350.5 354.9 0.5% UK/Ireland Rentals & Sales (3.5) 59.0 61.9 < 0% Action Manufacturing Group 12.9 46.3 44.3 27.9% Tourism 12.8 8.8 6.3 146.0% Group Support Services/Other (11.1) 13.7 10.7 N/A Eliminations (4.6) (14.6) (14.2) N/A Total 88.8 1,093.1 1,124.4 8.1% Trailing 12 Months to 31 December 2024
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thl FY25 INTERIM RESULTS PRESENTATION thl Global Snapshot Rental fleet and revenue are growing, while sales are at a cyclical low 6 Average Rental Fleet Size 7,807 H1 FY24: 7,212 RevPARV $29.8k H1 FY24: $30.6k Ex-Fleet Sales Volumes1 595 H1 FY24: 651 Ex-Fleet Sales Margin1 24.4% H1 FY24: 26.1% Retail RV Sales Volumes 1,092 H1 FY24: 1,094 Retail RV Sales Margin 9.1% H1 FY24: 10.8% • Average Rental Fleet Size: Grew by 8%, with increases in New Zealand, Australia and the UK, offset by an intentional reduction in North America to improve capital efficiency • RevPARV: Decreased by 3%. New Zealand and Australian markets have absorbed fleet growth well, seeing only minor RevPARV reduction. North America has improved, but the global metric was affected by the UK • Ex-Fleet Sales Volumes: Down 9%, largely due to 43% reduction in North America. New Zealand down, but strong improvement in Australia • Ex-Fleet Sales Margin: Margins are still normalising globally as cheaper vehicles purchased pre-COVID are still being sold. With depreciation rate adjustments implemented in FY25, margins and thl’s earnings sensitivity to vehicle sales volumes should decrease over time • Retail RV Sales Volumes: Volumes in line with pcp due to contribution of Camperagent, acquired in January 2024. On a same-store basis, volumes were down 18% • Retail RV Sales Margin: Continued pressure from the most challenging RV sales market in recent history. Margins are currently below typical expectations 1. thl’s historical reporting of ex-fleet sales volumes have included intercompany sales between the UK & New Zealand divisions. In H1 FY24, there were 155 such sales, but none in H1 FY25. To accurately reflect changes in external sales volumes and margins, these sales have been excluded from the H1 FY24 metrics above.
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thl FY25 INTERIM RESULTS PRESENTATION RV Industry Market Overview RV operators worldwide are navigating tough market conditions 7 • thl has remained profitable and continues to pay a dividend through what we believe are the most challenging conditions in the RV sales industry in decades • We believe that thl has maintained its performance relatively well when compared to many counterparts in the RV industry: ⎼ Prominent USA RV dealers Camping World and LazyDays with net losses in 2024 YTD1 ⎼ World’s largest RV manufacturer, Thor Industries, with net income down 29% in FY242 ⎼ Two European rental operators, OffCampers and Vanever, entered insolvency ⎼ Two caravan manufacturers in Australia, Tango Caravans and Highline Caravans, went into liquidation, and other manufacturers have consolidated ⎼ Knaus Tabbert, the second largest European RV manufacturer, halted production for two months to manage inventory levels • The sentiment across the industry is that the current challenges are cyclical and that the long-term outlook is positive 1. Camping World 3Q results for the nine months to 30 September 2024 released on 28 October 2024; LazyDays 3Q results for the nine months to 30 September 2024 released on 18 November 2024. 2. Thor Industries 4Q results for the twelve months to 31 July 2024, released on 24 September 2024.
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thl FY25 INTERIM RESULTS PRESENTATION Dividend Interim dividend of 2.5 cps declared 8 • The Board has approved an interim FY25 dividend of 2.5 cents per share, 100% imputed and 0% franked • The dividend reinvestment plan is offered for eligible shareholders with a 2% discount available • As previously indicated, thl targets distributing approximately 30% of its annual dividend as an interim dividend, and 70% as a final dividend • In the last two financial years, thl has paid a dividend at the lower- end of its dividend policy range. The Board believes this strikes an appropriate balance between thl’s capital requirements for fleet growth and shareholder returns • As of 31 December 2024, thl has fully utilised all of its existing Australian tax losses 1. thl currently has tax losses in Australia and is therefore not generating franking creditsKEY DIVIDEND DATES • Ex-dividend date of Thursday 20 March 2025 • Record date of Friday 21 March 2025 • DRP election date of Monday 24 March 2025 • Payment/DRP issue date of Friday 4 April 2025
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thl FY25 INTERIM RESULTS PRESENTATION Strengthening Financial Resilience Focus on prudent management of balance sheet 9 • Closing net debt of $477M. Higher debt attributable to fleet growth during period and slower than anticipated vehicle sales • thl’s equity ratio of 38.9%2 (as at 31 December 2024) is underpinned by the global rental fleet of over 8,000 vehicles • Given challenging market conditions, thl remains focused on balance sheet management: ⎼ Moderating fleet growth – right-sizing manufacturing in Australia and carefully managing fleet capex to optimise fleet efficiency ⎼ Improving liquidity – syndicated bank facility refinanced in July 2024, limit increased from $250M to $480M, reducing reliance on asset financing ⎼ Reducing funds employed in North America – improving business performance through higher fleet utilisation • The liquidity of thl’s fleet and ability to reduce fleet purchases provides thl with flexibility in managing its balance sheet Closing Net Debt1 $477M 31 Dec 2023: $403M Net Debt to Underlying EBITDA (TTM)3 2.4x H1 FY24: 1.9x Average Net Debt1 $468M H1 FY24: $354M 1. Net debt excludes IFRS 16 lease liabilities. 2. Equity ratio net of intangibles, right-of-use assets and liabilities, prepayments and deferred tax assets. 3. EBITDA is normalised to exclude non-recurring items. 4. Total borrowings are net of $1.1M of deferred borrowing costs capitalised onto the syndicated bank facility. Equity Ratio2 38.9% 31 Dec 2023: 40.2% AS AT 31 DEC 2024 FACILITY TYPE FACILITY SIZE DRAWN UNDRAWN Syndicated bank facility $479.2M $377.4M $101.8M Asset finance $286.5M $136.6M $149.9M Floor plan finance $93.5M $12.0M $81.5M Total4 $859.2M $526.0M $333.2M
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thl FY25 INTERIM RESULTS PRESENTATION Disciplined Capital Management Conservatively growing fleet in current conditions 10 Capital Management • We are implementing thl’s capital management disciplines by moderating fleet manufacturing and purchases, and improving rental utilisation • As a result, gross and net fleet capital expenditure in H1 have been significantly lower than the pcp • Over time, these adjustments will rectify the excess inventory caused by lower-than-expected sales Capital Expenditure • Gross fleet capital expenditure in FY25 is expected to be approximately $290M to $300M, compared to $353M in FY241 • The variability in vehicle sales volumes in H2 make it challenging to provide net fleet capital expenditure guidance for FY25 at this time • Non-fleet capital expenditure in H1 FY25 has been higher than usual due to construction works for the Waitomokia rental branch and dealership in Auckland, and equipment upgrades for manufacturing improvements, among other investments • Non-fleet capital expenditure in H2 FY25 will also be higher than recent years. Total FY25 non-fleet capital expenditure is expected to be approximately $45M but should return towards typical levels from FY26 onwards 1. FY24 includes $16M of intercompany fleet capex for purchases made by New Zealand from the UK. No such purchases are expected in FY25. Gross Fleet Capital Expenditure $92M H1 FY24: $187M Net Fleet Capital Expenditure $38M H1 FY24: $102M Non-Fleet Capital Expenditure $20M H1 FY24: $7M Ex-Fleet Sales Proceeds $54M H1 FY24: $85M Note: The figures above include fleet bought or sold under buyback agreements in Australia. These are omitted from the PPE note in the financial statements as they are classified as operating leases rather than acquisitions or disposals of fixed assets. Ex-fleet sales proceeds on this slide will therefore differ from slide 34 which excludes buyback arrangements. The figures include expenditure and proceeds from intercompany transactions. Non-fleet capital expenditure includes purchases of software and other intangible assets recognised within Intangibles in the Statement of Financial Position.
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thl FY25 INTERIM RESULTS PRESENTATION Cost Out and Optimisation Initiatives Confidence remains high in meeting our targeted cost reduction plan for at least $12M NPAT benefit in FY27 ✓ Closure of the Melbourne sub-assembly plant, with activity consolidated into the Brisbane factory as part of the rationalisation of manufacturing locations in Australia ✓ Continued optimisation of fleet production in New Zealand and Australia, and procurement savings in North America/Europe ✓ First stage optimisation of organisational structure across executive, group support and front-line manufacturing roles ✓ Greater product alignment across North America, and more ex-fleet vehicles transferred between the USA and Canada as part of the North American business optimisation ‒ We are closely monitoring the evolving USA/Canada tariff situation for any potential impact on this model ✓ Motek, single system for booking, pricing and scheduling now in place in all rental operations globally 11
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thl FY25 INTERIM RESULTS PRESENTATION Building for a Stronger Future We are facing a cyclical low but are implementing initiatives for sustainable growth 12 INITIATIVES EXPECTED BENEFITS AND TIMEFRAME EXPECTED SIZE OF OPPORTUNITY1 Rental Demand Recovery and Fleet Growth • Organic growth of thl’s rental fleet by 20%+, with opportunity for material earnings growth due to thl’s high operating leverage. • Recovery over several years, with the pace of growth expected to align with the international tourism recovery and improvements in the macroeconomic environment. $$$ Fleet Build Cost Reduction • Vehicle design changes, production line improvements, direct procurement from China and better labour efficiency, supporting reduced costs and quality improvement. • This will lead to immediate cash benefits from FY25 on new units and profit over a vehicle’s lifespan (up to 6 years) through reduced depreciation and R&M expense. $$$ North American Business Model Optimisation • Primary initiatives include optimising fleet movement and alignment between the USA and Canada, expanding direct retail sales capabilities, and developing a network for generating non-tourism and events rental revenue. • These efforts aim to deliver steady growth in rentals and sales revenue over multiple years while improving capital efficiency, with significant contributions expected from FY26 onwards. $$$ “One System” Across The Globe • Moving to single systems across fleet management and reservations, scheduling, asset management, ERP, payroll, CMS and data platform. • Eliminates system overlap allowing cost savings on redundant systems, enhances operational efficiency, and allows more meaningful global IP sharing. $$ Capital Management • Establishment of $480M syndicated, four-party bank facility. • Consolidating asset finance facilities into a smaller group of high-quality lenders. • Interest cost savings from FY25, while also enhancing financial resilience and providing access to capital for ongoing growth. $ Growing our People • Leveraging technology and integration of AI into the ways of working for greater capability building, efficiency and engagement. $ 1. Illustrative only.
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thl FY25 INTERIM RESULTS PRESENTATION Real and Accounting Depreciation Rates 13 • The Real Depreciation Rate (RDR) is a key metric in assessing whether thl is efficiently purchasing and selling its rental fleet • thl’s RDRs have been below historical norms as vehicle values appreciated during the pandemic, but are expected to normalise in the future • RDRs in Australasia are typically higher as vehicles are held on the fleet longer, whereas vehicles in the Northern Hemisphere are typically sold within one to two years • RDRs in Australasia are expected to stay below historical norms due to merger manufacturing synergies and more ex-fleet vehicles sold through thl’s own dealerships • thl annually reviews its accounting depreciation rates and makes adjustments, if required, so that earnings are appropriately apportioned between the Rentals and Sales divisions • While overall depreciation expense is expected to be higher in FY25, changes to accounting depreciation rates that commenced on 1 July 2024 will have different impacts on Canada and UK/Ireland (higher depreciation rates) and New Zealand and Australia (lower depreciation rates) • These adjustments do not affect overall earnings over the vehicle lifecycle, cashflows,1 or the Real Depreciation Rate, however they do impact the reporting periods in which profit is recognised REAL DEPRECIATION RATE • The difference between the original purchase price and sale price for ex-fleet vehicles sold in a reporting period, represented as an annual depreciation percentage • It allows for no gain on sale or costs associated with the sale or maintenance of the rental vehicle • It is not impacted by the accounting depreciation rate applied to the vehicle during its time on the rental fleet • A low Real Depreciation Rate indicates that thl is efficiently managing the purchasing and selling of fleet, with a low differential between purchase and sale prices 1. Except the timing of tax payments. 2. Historical norms represent thl only. Historically, the UK/Ireland business was a joint venture that mostly sold vehicles to thl New Zealand. Historical RDR data is therefore unavailable for UK/Ireland. REAL DEPRECIATION RATES H1 FY25 FY24 HISTORICAL NORM1 New Zealand ~3% ~2% ~6 - 7% Australia ~2.5% ~1% ~7 - 9% North America ~0% ~0% ~0 - 1% UK/Ireland <0% < 0% N/A
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14thl FY25 INTERIM RESULTS PRESENTATION 36° 14′ N — 116° 49′ W Divisional Review
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thl FY25 INTERIM RESULTS PRESENTATION New Zealand Rentals & Sales 15 • Return on Funds Employed (TTM) of 19.0% • Another period of earnings growth due to increased fleet and the recovery in international tourism. The division is expected to achieve deliver another record EBIT result in FY25 • The division achieved 25% rental revenue growth, an excellent achievement given international visitors to New Zealand during the same period grew by only 6% • A 1% reduction in RevPARV is considered a positive outcome, given the larger fleet in the first half, which typically has lower utilisation. The benefits of this larger fleet will be more evident in the second half of FY25 • We are growing the New Zealand fleet at the fastest pace out of all our markets, as the total fleet remains well below pre-COVID levels • The vehicle sales market remains tough, with total RV sales volumes down 7%. More affordable stock still sells well but new and higher- priced vehicle sales are slow • Ex-fleet margins are continuing to normalise and are facing particular pressure from the ex-UK units acquired during the pandemic which incurred higher shipping costs • Auckland operations and group support will relocate to Waitomokia in April 2025. This move will consolidate three Auckland locations, expand rental capacity for ongoing growth, and establish the largest RV dealership in New Zealand NZD $M H1 FY25 H1 FY24 VAR VAR % Rental revenue 54.7 43.9 10.8 25% Sale of goods revenue 21.6 19.1 2.5 13% Costs (59.1) (48.3) (10.9) (23%) EBIT 17.2 14.8 2.4 16% Rentals division Operating rental fleet H1 FY25 H1 FY24 VAR VAR % Average rental fleet size 1,961 1,556 405 26% Revenue per average rental vehicle H1 FY25 H1 FY24 VAR VAR % RevPARV (NZD $k) 27.9 28.2 (0.3) (1%) Vehicle sales division Unit sales (#) H1 FY25 H1 FY24 VAR VAR % Ex-fleet sales 111 152 (41) (27%) Retail RV sales 57 28 29 104% Total RV sales 168 180 (12) (7%) Gross profit margin % H1 FY25 H1 FY24 VAR GP margin on ex-fleet sales 32.0% 37.2% (5.2%) GP margin on retail RV sales 11.5% 14.3% (2.7%) Total GP margin on RV sales 22.9% 31.8% (8.9%) Real depreciation rate on ex-fleet sales H1 FY25 H1 FY24 RDR ~3% ~2%
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thl FY25 INTERIM RESULTS PRESENTATION Australia Rentals, Sales & Manufacturing 16 • Return on Funds Employed (TTM) of 8.7% • 31% decrease in EBIT due to vehicle sales margin pressures, despite continued growth in the rental fleet and rental revenue • Improving rental utilisation has been a key focus, helping to offset the impact on RevPARV from the expected normalisation of rental yields. The division continues to aim for further utilisation improvement • The growth in total RV sales is attributable to the contribution from Camperagent RV, acquired in January 2024. • Focused efforts have achieved an 84% increase in ex-fleet sales and a A$13M reduction in Australian dealership inventory, despite the challenging sales market • Three underperforming RV dealerships (Newcastle, Geelong, Cairns) have been recently shut down, and further synergies between rental and retail operations are being explored • Rental operations in Sydney and Perth are expected to relocate to new, larger premises in H2 FY25, increasing capacity at two key entry ports for international customers • Reflective of the reduction in demand and changes to production plans for 2025, the Melbourne sub-assembly plant was closed in December 2024 with activity assumed by the Brisbane factory • The Brisbane factory has discontinued the production of caravans and is now focusing on motorhomes and campervans. This shift is expected to improve ROFE from Manufacturing NZD $M H1 FY25 H1 FY24 VAR VAR % Rental revenue 73.8 68.0 5.8 8% Sale of goods revenue 115.3 117.4 (2.1) (2%) Costs (173.7) (163.1) (10.6) (7%) Underlying EBIT1 15.4 22.3 (7.0) (31%) AUD $M H1 FY25 H1 FY24 VAR VAR % Rental revenue 67.2 62.9 4.3 7% Sale of goods revenue 105.1 108.6 (3.5) (3%) Costs (158.4) (150.9) (7.5) (5%) Underlying EBIT 13.9 20.6 (6.7) (32%) Rentals division Operating rental fleet H1 FY25 H1 FY24 VAR VAR % Average rental fleet size 2,367 2,171 196 9% Revenue per average rental vehicle H1 FY25 H1 FY24 VAR VAR % RevPARV (AUD $k) 28.4 29.0 (0.6) (2%) Vehicle sales division Unit sales (#) H1 FY25 H1 FY24 VAR VAR % Ex-fleet sales 213 116 97 84% Retail RV sales 1,035 1,066 (31) (3%) Total RV sales 1,248 1,182 66 6% Gross profit margin % H1 FY25 H1 FY24 VAR GP margin on ex-fleet sales 34.7% 48.0% -13.3% GP margin on retail RV sales 8.9% 10.7% -1.7% Total GP margin on RV sales 12.2% 13.9% -1.7% Real depreciation rate on ex-fleet sales H1 FY25 H1 FY24 RDR ~2..5% ~1% 1. Refer to slide 30 for Reported EBIT.
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thl FY25 INTERIM RESULTS PRESENTATION North America Rentals & Sales 17 • Return on Funds Employed (TTM) of 0.5% • The North America segment combines USA Rentals & Sales and Canada Rentals & Sales, as they are now more closely integrated in their management, fleet and organisational structure • North America’s EBIT declined by NZ$7.6M due to: ⎼ lower RV sales volumes and pressure on sales margins ⎼ a $3M increase in depreciation expense in Canada, despite a reduction in average fleet size. This is due to the adjustment of depreciation rates effective from 1 July 2024, aligning the approach in Canada with other regions – refer to slide 13 • By closely managing the fleet size, the division has achieved an increase in RevPARV and improved rental utilisation, even though rental revenue has remained stable • Focused efforts have increased retail (direct) RV sales share of total sales from 18% to 55%, helping to offset margin pressures. We expect a higher proportion of wholesale sales in the second half, which should increase volumes but will impact margins • The business grew non-tourism and events rental revenue and is actively exploring demand for emergency accommodation bookings from the LA fires • A streamlining of locations has resulted in the planned closure of two underperforming branches in the USA • We are closely monitoring the USA & Canada tariff situation to assess any impacts on our North American business optimisation project NZD $M H1 FY25 H1 FY24 VAR VAR % Rental revenue 91.2 91.2 0.1 0% Sale of goods revenue 24.0 36.4 (12.5) (34%) Costs (94.0) (98.8) 4.8 5% EBIT 21.2 28.8 (7.6) (26%) Rentals division Operating rental fleet H1 FY25 H1 FY24 VAR VAR % Average rental fleet size 2,882 3,038 (156) (5%) Revenue per average rental vehicle H1 FY25 H1 FY24 VAR VAR % RevPARV (USD $k) 19.3 18.2 1.0 6% Vehicle sales division Unit sales (#) H1 FY25 H1 FY24 VAR VAR % RV sales 183 322 (139) (43%) Gross profit margin % H1 FY25 H1 FY24 VAR GP margin on RV sales 14.1% 15.5% (1.4%) Real depreciation rate on ex-fleet sales H1 FY25 H1 FY24 RDR ~0% < 0%
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thl FY25 INTERIM RESULTS PRESENTATION NZD $M H1 FY25 H1 FY24 VAR VAR % Rental revenue 12.4 11.9 0.4 4% Sale of goods revenue 10.2 23.6 (13.4) (57%) Costs (22.6) (32.5) 10.0 31% EBIT 0.1 3.1 (3.0) (98%) GBP £M H1 FY25 H1 FY24 VAR VAR % Rental revenue 5.8 5.8 0.0 0% Sale of goods revenue 4.8 11.4 (6.6) (58%) Costs (10.5) (15.7) 5.2 33% EBIT 0.1 1.5 (1.4) (95%) Rentals division Operating rental fleet H1 FY25 H1 FY24 VAR VAR % Average rental fleet size 598 447 150 34% Revenue per average rental vehicle H1 FY25 H1 FY24 VAR VAR % RevPARV (GBP £k) 9.7 13.0 (3.3) (25%) Vehicle sales division Unit sales (#) H1 FY25 H1 FY24 VAR VAR % RV sales 88 216 (128) (59%) Gross profit margin % H1 FY25 H1 FY24 VAR GP margin on RV sales 20.9% 12.4% 8.5% Real depreciation rate on ex-fleet sales H1 FY25 H1 FY24 RDR < 0% < 0% UK & Ireland Rentals & Sales 18 • Return on Funds Employed (TTM) <0% • A disappointing performance in both rentals and RV sales has led to a $3M EBIT decline • Rentals were significantly impacted by delayed production and deliveries from RV manufacturers, with 50% of the new fleet in 2024 arriving in the middle of the high season, missing the early weeks of FY25 • No vehicles were sold to thl New Zealand in the period under the flex model (compared to 155 in H1 FY24). This has reduced RV sales volumes but increased GP margin.1 Excluding intercompany sales, the division grew external retail sales volumes by 44% • The decision to keep fleet in the UK in 2024 has impacted the division’s performance, resulting in a larger fleet over winter and therefore higher depreciation expense • The division is expected to operate at a loss in the second half of FY25, traditionally a seasonally slower period 1. Refer to slide 34 for sales volumes and margin on external sales only.
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thl FY25 INTERIM RESULTS PRESENTATION NZD $M H1 FY25 H1 FY24 VAR VAR % Sale of goods - third party 35.3 34.3 1.0 3% Costs - third party (32.5) (29.9) (2.6) (9%) Underlying EBIT - third party 2.8 4.4 (1.6) (36%) Sale of goods - intercompany 51.2 54.4 (3.2) (6%) Costs - intercompany (46.2) (51.1) 4.9 10% Underlying EBIT - incl. intercompany transactions 1 7.9 7.7 0.2 2% Action Manufacturing (NZ) 19 • Return on Funds Employed (TTM) of 27.9% (inclusive of intercompany transactions) • EBIT for third-party work decreased by 36%, driven by margin pressures, as customers delay new capital expenditure in response to current macroeconomic conditions • The EBIT margin on thl work has increased as Action implements initiatives to optimise fleet production and reduce build costs. This should lead to benefits for thl Rentals through lower fleet pricing in future years, which will see Action’s EBIT margin on thl work return to typical levels • Action is experiencing a softer pipeline for third-party work with continued pressure on margins and volumes. However, the pipeline for Government-related work (emergency vehicles) remains robust • Action continues to invest in aligning systems and culture across its divisions, as well as in new equipment to deliver ongoing efficiencies • The Action Manufacturing reporting segment includes thl’s New Zealand manufacturing division only. thl’s Australian manufacturing operations are included in the Australian Manufacturing, Rentals & Sales segment 1. EBIT including intercompany transactions comprises intercompany revenue and costs from the manufacture of RVs for thl's rental operations, which are eliminated at a group level. EBIT - third party comprises only the revenue and costs from the manufacture of specialist commercial vehicles for third parties. Refer to slide 30 for Reported EBIT.
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thl FY25 INTERIM RESULTS PRESENTATION Tourism 20 • Return on Funds Employed (TTM) of 146%, the highest in the group • Strong result, especially as the pcp had the benefits of the FIFA Women’s World Cup during typically quiet months • The China inbound market has seen the strongest improvement, followed by the Australian market Group Support Services & Other Group Eliminations • Any margin generated on intercompany vehicle transfers between Action Manufacturing and New Zealand and Australia Rentals & Sales, or other operating segments, is eliminated on group consolidation • Typically, Manufacturing profit is released over the rental life of a vehicle to offset depreciation. Once an ex-rental vehicle is ultimately sold to a third party, any remaining profit previously eliminated on intercompany transfers are recognised • The elimination and subsequent recognition of profits are shown in the Group Eliminations division • thl recharges most of its group support costs to its individual business units. Some costs are not recharged and remain in the GSS & Other division. The result for this division is predominantly an outcome of the applicable recharges in a year • thl expects FY25 Underlying EBIT for GSS & Other (after recharge allocations) to be approximately -$7M, with the lower expenditure run-rate in the second-half reflecting recent group support synergy actions Tourism NZD $M H1 FY25 H1 FY24 VAR VAR % Revenue 19.3 18.3 1.0 6% Costs (14.2) (13.0) (1.2) (9%) EBIT 5.2 5.3 (0.1) (2%) Group Eliminations NZD $M H1 FY25 H1 FY24 VAR VAR % Intercompany revenue elimination (51.5) (70.0) 18.5 26% Intercompany costs elimination 48.1 67.0 (18.9) (28%) EBIT (3.4) (3.0) (0.4) (13%) Group Support Services & Other NZD $M H1 FY25 H1 FY24 VAR VAR % Revenue 0.8 0.6 0.1 16% Costs (4.7) (5.6) 1.0 17% Underlying EBIT1 (3.9) (5.0) 1.1 21% 1. Refer to slide 30 for Reported EBIT.
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21thl FY25 INTERIM RESULTS PRESENTATION -45° 02’ S — 168° 29’ E Outlook
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thl FY25 INTERIM RESULTS PRESENTATION We believe the RV industry has a positive long-term outlook Despite today’s challenges, demographic and travel trends should help grow the RV travel category for years to come 22 Interest in RV travel from younger generations The median age of RV owners has reduced by 4 years since 20211 RV sales benefiting from an aging population The number of people aged 65 years or older worldwide is expected to double by 20502 RV travel is only a small percentage of leisure travel, with an opportunity to grow category share Shifts toward eco-tourism and sustainable travel Travelers seeking more unique experiences and simpler, independent travel 1. Go RVing 2025 RV Owner Demographic Profile. Represents RV owners in North America. 2. United Nations Department of Economic and Social Affairs
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thl FY25 INTERIM RESULTS PRESENTATION Outlook 23 • We remain focused on increasing underlying NPAT in FY25, but acknowledge the risks and uncertainty in the coming period. • We are growing global rental hire days and we are on track to deliver our cost-out targets which should add significant benefit in the coming years. New Zealand and Australian rentals have been positive, with robust demand and fleet growth. • Countering this growth is a more prolonged downturn in RV sales. In particular, the Australian market remains under pressure on volumes and margin and is not yet showing signs of a recovery from the bottom of the cycle. • Considering the impacts, both actual and potential, across the various operating jurisdictions results in a range of possible outcomes for FY25. The key factors driving variability in the second half of FY25 include: ‐ the degree of recovery in North American vehicle sales in the 2025 sales season, which typically commences around May; ‐ opportunities in North America for non-tourism bookings related to the LA fires and ongoing discussions concerning larger wholesale vehicle sales opportunities; ‐ short-term impacts from North American tariffs. The announcement has seen increased demand for our Canadian fleet, as dealers and customers anticipate an upcoming tariff on imports from the USA; ‐ performance at several major RV sales shows across New Zealand and Australia in the coming months; and ‐ rentals for the Easter and ANZAC day period, which fall in the same week in 2025. This has historically led to an increase in late domestic rental demand in Australia and New Zealand. • Although we will be driving to achieve the best of these outcomes, market factors may delay our recovery until FY26 and prevent us from delivering underlying NPAT growth in FY25 overall. • The uncertainty in vehicle sales and potential outcomes from these factors also make it difficult to provide an accurate profit guidance range for FY25 at this time. We will have more certainty on vehicle sales and several of these other factors in the fourth quarter of FY25, at which point we intend to provide earnings guidance for FY25. • We remain confident in the global rental outlook and continue to reinforce that there are no indicators of a structural change in the demand for RVs in our operating markets. This combined with our ongoing efforts in cost out and optimisation, efficiencies, investment in people and leveraging merger benefits, underpins our confidence in a strong rebound in future performance.
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24thl FY25 INTERIM RESULTS PRESENTATION -14° 19’ S — 132° 34’ E Questions
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25thl FY25 INTERIM RESULTS PRESENTATION 42° 46’ S — 147° 33’ E Thank you
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26thl FY25 INTERIM RESULTS PRESENTATION Important Notes 36° 14′ N — 116° 49′ W
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Important notes • All financials are in NZ dollars unless stated otherwise (throughout presentation). • All comparisons are against prior corresponding period unless stated otherwise. • The average: ▶ NZD:AUD cross-rate (average of the 6-month rates) for H1 FY25 was 0.9128 (H1 FY24: 0.9241). ▶ NZD:USD cross-rate (average of the 6-month rates) for H1 FY25 was 0.6044 (H1 FY24: 0.6053). ▶ NZD:CAD cross-rate (average of the 6-month rates) for H1 FY25 was 0.8336 (H1 FY24: 0.8165). ▶ NZD:GBP cross-rate (average of the 6-month rates) for H1 FY25 was 0.4671 (H1 FY24: 0.4823). ▶ CAD:USD cross-rate (average of the 6-month rates) for H1 FY25 was 0.7246 (H1 FY24: 0.7413). • EBIT should not be viewed in isolation and is intended to supplement the NZ GAAP measures and therefore may not be comparable to similarly titled amounts reported by other companies. • The balance sheet is converted at the following closing rates: ▶ The USD cross rate used was 0.5640 (H1 FY24: 0.6340). ▶ The AUD cross rate used was 0.9070 (H1 FY24: 0.9279). ▶ The CAD cross rate used was 0.8098 (H1 FY24: 0.8387). ▶ The GBP cross rate used was 0.4495 (H1 FY24: 0.4977). • H1 FY25 had $1.7M (before tax) in non-recurring restructuring costs. • H1 FY24 had no non-recurring items. • The depreciation expense and interest expense recognised in H1 FY25 in relation to IFRS 16 is $12.2M (H1 FY24: $11.4M) and $4.6M (H1 FY24: $4.7M) respectively. Actual lease payments for the period were $12.2M (H1 FY24: $11.2M). 27
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thl FY25 INTERIM RESULTS PRESENTATION Glossary of Key Terms 28 Average Fleet Size or Average Fleet refers to the average of the closing rental fleet balance at the end of each month in the reporting period Average Net Debt refers to the average of the net debt balance at the end of each month in the reporting period Average Yield refers to the average daily rental van hire rate (excluding revenue relating to add-on products) EBIT refers to the operating profit or loss before financing costs and tax EBITDA refers to the operating profit or loss before financing costs, tax, depreciation and amortisation Ex-fleet Sales refers to the sale of vehicles that previously operated on thl’s rental fleet. It excludes the sale of buyback fleet (relevant in Australia only) Fleet refers to the fleet of vehicles operating in the rentals division. It excludes sales inventory in the vehicle sales/dealership division Gross Profit Margin or GP Margin refers to vehicle sales margin as a percentage of total vehicle sales revenue (net of any wholesale dealer commissions) Net Debt refers to interest bearing loans and borrowings less cash and cash equivalents, and excludes IFRS 16 lease liabilities NPAT refers to net profit after tax PCP refers to the prior corresponding period Real Depreciation Rate or RDR refers to the difference between the original purchase price and sale price for vehicles sold in the reporting period, represented as an annual depreciation percentage. It allows for no gain on sale or costs associated with the sale or maintenance of the vehicle Retail RV Sales refers to the sale of new and trade-in vehicles. It excludes ex-fleet sales RevPARV refers to rental revenue per average rental vehicle (based on the average fleet size) ROFE or Return on Funds Employed refers to EBIT divided by the average monthly net funds employed. Net funds employed is measured as total equity plus net debt. Lease Interest costs arising from IFRS 16 (not ordinarily reflected in EBIT) are deducted from EBIT for the calculation, on the basis that the associated lease liabilities are not included in net funds employed. The calculation is done in NZ dollars TTM refers to the trailing 12-month period Underlying NPAT refers to NPAT after removing any non-recurring items in the reporting period Utilisation refers to total hired rental days as a percentage of total calendar days Vehicle Sales Margin refers to vehicle sales revenue (net of any wholesale dealer commissions) less the net book value of vehicles sold. It excludes other costs of sale
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29thl FY25 INTERIM RESULTS PRESENTATION -45° 02’ S — 168° 29’ E Supplementary Information
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thl FY25 INTERIM RESULTS PRESENTATION Divisional Performance 30 6 months to 31 December 2024 6 months to 31 December 2023 $M NZD REVENUE DIVISIONAL EBITDA DIVISIONAL EBIT AVE FUNDS EMPLOYED REVENUE DIVISIONAL EBITDA DIVISIONAL EBIT AVE FUNDS EMPLOYED New Zealand Rentals & Sales 76.3 28.1 17.2 250.5 63.1 23.1 14.8 159.2 Australian Rentals, Sales & Manufacturing 189.1 31.2 14.3 379.1 185.4 37.9 22.3 311.7 North America Rentals & Sales 115.2 40.5 21.2 350.5 127.6 45.3 28.8 347.3 UK/Ireland Rentals & Sales 22.6 3.2 0.1 59.0 35.5 4.9 3.1 70.1 Action Manufacturing Group 86.6 10.0 7.7 46.3 88.7 9.9 7.7 47.1 Tourism 19.3 6.3 5.2 8.8 18.3 6.0 5.3 13.2 Group Support Services/Other 0.8 (3.2) (4.3) 13.7 0.7 (3.7) (5.0) 49.9 Group eliminations (51.5) (4.5) (3.4) (14.6) (70.0) (3.7) (3.0) (14.6) Reported Revenue, EBITDA, EBIT 458.4 111.6 57.8 1,093.1 449.2 119.7 74.0 983.9 Adjustment for non-recurring items – 1.7 1.7 – – – – – Underlying EBITDA/EBIT 113.3 59.6 119.7 74.0
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thl FY25 INTERIM RESULTS PRESENTATION Reconciliation of NPAT, EBIT and EBITDA 31 NPAT NZD $M H1 FY25 H1 FY24 Statutory net profit after tax 25.3 39.7 Restructuring costs 1.2 – Underlying net profit after tax 26.5 39.7 EBITDA NZD $M H1 FY25 H1 FY24 Reported EBITDA 111.6 119.7 Restructuring costs 1.7 – Underlying EBITDA 113.3 119.7 EBIT NZD $M H1 FY25 H1 FY24 Reported EBIT 57.8 74.0 Restructuring costs 1.7 – Underlying EBIT 59.6 74.0 Rolling 12 month Adjusted EBIT (used for ROFE calculation) NZD $M H1 FY25 Underlying EBIT - H1 FY25 59.6 Underlying EBIT - H2 FY24 37.1 IFRS 16 interest expense (7.9) Adjusted EBIT 88.8
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thl FY25 INTERIM RESULTS PRESENTATION Income Statement 32 NZD $M H1 FY25 H1 FY24 VAR VAR % Revenue Sale of services 251.9 234.0 18.0 8% Sale of goods 206.4 215.2 (8.8) (4%) Total revenue 458.4 449.2 9.2 2% Costs (346.8) (329.5) (17.3) (5%) EBITDA 111.6 119.7 (8.1) (7%) Depreciation & amortisation (53.7) (45.7) (8.0) (18%) EBIT 57.8 74.0 (16.1) (22%) Net finance costs (22.6) (17.9) (4.7) (26%) Net profit before tax 35.2 56.0 (20.8) (37%) Taxation (9.9) (16.3) 6.4 39% Net profit after tax 25.3 39.7 (14.5) (36%) Net profit after tax is attributable to: Equity holders of the Company 25.3 39.7 (14.5) (36%) Basic EPS (in cents)(1) 11.5 18.4 Diluted EPS (in cents)(1) 11.5 18.3 1. Based on weighted average number of shares on issue across the reporting period
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thl FY25 INTERIM RESULTS PRESENTATION Balance Sheet 33 1. Based on shares on issue at the relevant balance date. 2. Equity ratio net of intangibles, right-of-use assets and liabilities, prepayments and deferred tax assets. Disclosures in previous presentations were net of intangibles only. As at NZD $M 31 Dec 2024 30 Jun 2024 VAR 31 Dec 2023 VAR Equity 647.3 616.9 30.4 618.4 28.9 Non-current liabilities (excluding lease liabilities) 531.2 431.3 99.9 388.5 142.7 Current liabilities (excluding lease liabilities) 194.2 301.8 (107.6) 255.3 (61.1) Lease liabilities 213.2 147.5 65.8 148.1 65.1 Total source of funds 1,586.0 1,497.5 88.5 1,410.3 175.7 Intangible assets (including goodwill) 190.7 186.5 4.3 190.7 0.0 Investments 0.2 0.1 0.0 24.6 (24.5) Derivatives 1.0 1.6 (0.6) 0.9 0.1 Property, plant and equipment 864.2 829.3 34.9 746.5 117.7 Right-of-use assets 193.3 130.1 63.2 132.3 61.0 Current assets 336.7 349.8 (13.2) 315.3 21.4 Total use of funds 1,586.0 1,497.5 88.5 1,410.3 175.7 Net debt (excluding lease liabilities) 477.3 403.3 74.0 403.3 74.0 Net tangible assets 456.6 430.4 26.2 427.7 28.9 Shares on issue Net tangible assets per share1 $2.07 $1.97 $1.97 Book value of net assets per share1 $2.94 $2.83 $2.85 Debt / debt + equity ratio2 51.1% 48.4% 48.5% Equity ratio2 38.9% 37.1% 40.2%
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thl FY25 INTERIM RESULTS PRESENTATION Ex-Rental Fleet Sales 1. Sales for the Australian division in the FY24 Interim Results presentation included the profit on sale recognised by the Australia Retail division only. To provide a clearer understanding of the total profit contribution to the group from each sale, these figures now also include the Rentals division’s profit from the intercompany transfer to the Retail division, for vehicles sold in the period (previously recognised by Rentals and eliminated at the group level). 2. Sales for the UK/Ireland division in the FY24 Interim Results presentation included 155 intercompany sales to thl New Zealand in H1 FY24. These have been excluded from the above metrics to show changes in external sales. Intercompany sales are included in the UK/Ireland divisional slide. 34 6 months to 31 December $M H1 FY25 H1 FY24 VAR VAR % Proceeds from ex-fleet sales New Zealand 9.7 11.3 (1.6) (14%) Australia 14.7 10.0 4.7 47% North America 19.6 34.3 (14.7) (43%) UK/Ireland2 7.0 5.1 1.9 36% Total proceeds from ex-fleet sales 51.0 60.7 (9.8) (16%) Net book value of ex-fleet sold New Zealand (6.6) (7.1) 0.5 7% Australia1 (9.6) (5.2) (4.4) (85%) North America (16.8) (29.0) 12.2 42% UK/Ireland2 (5.5) (3.6) (2.0) (55%) Total net book value of ex-fleet sold (38.5) (44.9) 6.3 14% Gross margin on ex-fleet sales New Zealand 3.1 4.2 (1.1) (26%) Australia1 5.1 4.8 0.3 6% North America 2.7 5.3 (2.6) (48%) UK/Ireland2 1.5 1.6 (0.1) (6%) Total gross margin on ex-fleet sales 12.4 15.9 (3.4) (22%) 6 months to 31 December $k H1 FY25 H1 FY24 VAR VAR % Average gross margin on ex-fleet sales New Zealand 27.9 27.6 0.3 1% Australia1 23.9 41.4 (17.4) (42%) North America 15.0 16.5 (1.4) (9%) UK/Ireland2 16.7 25.6 (9.0) (35%) Group 20.9 24.4 (3.5) (14%) % H1 FY25 H1 FY24 VAR Gross profit margin on ex-fleet sales New Zealand 32.0% 37.2% -5.2% Australia1 34.7% 48.0% -13.3% North America 14.1% 15.5% -1.4% UK/Ireland2 20.9% 30.4% -9.5% Group 24.4% 26.1% -1.8% # H1 FY25 H1 FY24 VAR VAR % Ex-fleet vehicles sold New Zealand 111 152 (41) (27%) Australia 213 116 97 84% North America 183 322 (139) (43%) UK/Ireland2 88 61 27 44% Total ex-fleet vehicles sold 595 651 (56) (9%)
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thl FY25 INTERIM RESULTS PRESENTATION Retail RV Sales (New Zealand and Australia only) 35 6 months to 31 December $M H1 FY25 H1 FY24 VAR VAR % Proceeds from retail RV sales New Zealand 7.8 3.5 4.3 123% Australia 101.8 106.1 (4.3) (4%) Total proceeds from retail RV sales 109.6 109.6 0.0 0% Book value of retail RVs sold New Zealand (6.9) (3.0) (3.9) (130%) Australia (92.7) (94.8) 2.1 2% Total book value of retail RVs sold (99.6) (97.8) (1.8) (2%) Gross margin on retail RV sales New Zealand 0.9 0.5 0.4 80% Australia 9.1 11.3 (2.2) (19%) Total gross margin on retail RV sales 10.0 11.8 (1.8) (15%) 6 months to 31 December $k H1 FY25 H1 FY24 VAR VAR % Average gross margin on retail RV sales New Zealand 15.8 17.9 (2.1) (12%) Australia 8.8 10.6 (1.8) (17%) Group 9.2 10.8 (1.6) (15%) % H1 FY25 H1 FY24 VAR Gross profit margin (%) on retail RV sales New Zealand 11.5% 14.3% -2.7% Australia 8.9% 10.7% -1.7% Group 9.1% 10.8% -1.6% # H1 FY25 H1 FY24 VAR VAR % Retail RV sales New Zealand 57 28 29 104% Australia 1,035 1,066 (31) (3%) Total retail RV sales 1,092 1,094 (2) (0%)
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thl FY25 INTERIM RESULTS PRESENTATION Fleet Movements 1. Off-fleets consist of vehicles transferred to inventory for sale, intercompany transfers to other jurisdictions (where applicable), and vehicles written-off 36 Units: H1 FY25 H1 FY24 VAR VAR % New Zealand Opening fleet - 30 Jun 1,967 1,400 567 41% On-fleets 652 572 80 14% Off-fleets(1) 248 157 91 58% Closing fleet - 31 Dec 2,371 1,815 556 31% Australia Opening fleet - 30 Jun 2,361 2,081 280 13% On-fleets 384 482 (98) (20%) Off-fleets(1) 290 311 (21) (7%) Closing fleet - 31 Dec 2,455 2,252 203 9% North America Opening fleet - 30 Jun 3,003 3,220 (217) (7%) On-fleets 2 44 (42) (95%) Off-fleets(1) 187 323 (136) (42%) Closing fleet - 31 Dec 2,818 2,941 (123) (4%) Units: H1 FY25 H1 FY24 VAR VAR % UK/Ireland Opening fleet - 30 Jun 590 532 58 11% On-fleets 83 47 36 77% Off-fleets(1) 145 221 (76) (34%) Closing fleet - 31 Dec 528 358 170 47% Total Group Opening fleet - 30 Jun 7,921 7,233 688 10% On-fleets 1,121 1,145 (24) (2%) Off-fleets(1) 870 1,012 (142) (14%) Closing fleet - 31 Dec 8,172 7,366 806 11%
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