Slides
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1 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP 2025 Annual Meeting Presentation 21 August 2025
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2 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP Board of Directors Grant Baker Non-executive Chairman Matthew Harrison Non-executive Director Alistair Petrie Non-executive Director Todd Hunter Group CEO & Managing Director Antony Vriens Independent Director John Roberts Independent Director Lauren Quaintance Independent Director
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3 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP Meeting Agenda 1. Presentations •Address from the Chair, Grant Baker •Address from the CEO, Todd Hunter •Address from Directors up for re-election 2. Shareholder Discussion 3. Resolutions are per Notice of Meeting • Resolution 1 - That Baker Tilly Staples Rodway be reappointed as auditor of the Company and that the Directors be authorised to fix the auditor’s remuneration. • Resolution 2 - That Grant Baker, who retires by rotation pursuant to NZX Main Board Listing Rule 2.7.1 and has offered himself for re-election, be re-elected as a Director of the Company. • Resolution 3 - That Todd Hunter, who was appointed by the Board since the Company’s last annual meeting and retires pursuant to NZX Main Board Listing Rule 2.7.1 and, being eligible, has offered himself for election, to be elected as a Director of the Company. 4. General Business
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4 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP Chairman’s Address Grant Baker 4 • 2025 ASM PRESENTATION TURNERS AUTO GROUP
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5 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP 5 • TURNERS AUTOMOTIVE GROUP FY24 RESULTS
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6 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP • Record result caps off a decade of growth • Resilient model and outstanding team • Confidence in future growth 6 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP
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7 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP Record result caps off a decade of growth * Dividends fully imputed from FY17 onwards Operating profit contribution by segment ($M) 0.10 0.13 0.145 0.155 0.17 0.14 0.20 0.23 0.23 0.255 0.29 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 DPS ($) Dividend per Share ($) 0 10 20 30 40 50 60 70 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Operating Profit ($M) Automotive retail Finance Insurance Credit management
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8 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP We delivered on growth, despite the NZ economy … 1. The result extended our track record of resilience, by again delivering another record, despite an extremely challenging consumer environment. 2. FY25 dividend of 29.0 cps up +14% on pcp and caps off a decade of strongly growing dividends from 10 cps in FY15. 3. Earning diversification proven again, with well signalled lower Auto Retail revenue offset by gains from Finance, Insurance and Credit Management, as expected. 4. Consumer sentiment downturn put pressure on vehicle prices, reducing margins during 1H. But 2H showed strong recovery in Auto Retail, and all 4 business divisions showed growth over 2H24. 5. NZ used car market volumes have remained resilient, despite the economic conditions. 6. The Turners team remains highly motivated, with strong employee engagement and broad share ownership. 7. Outlook for FY26 is a slowly recovering economy with further growth expected in Turners profits over FY25.
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9 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP FY25 Results snapshot Revenue Net profit after tax Revenue $414.2M -1% Shareholders’ Equity $298M as at 31 March 25 Net Profit Before Tax $54.3M +10% Final Dividend 9.0 cps (fully imputed) FY Div 29.0 cps +14% EBIT 1 $62.3M +6% Earnings Per Share 2 43.3cps +17% Net Profit After Tax 2 $38.6M +17% 1 EBITadjusted for interest expense in Finance (non-IFRS measure) 2 The effective tax rate for FY25 reverted to 29%. In FY24 there was a one-off legislative change to remove depreciation on commercial buildings which increased the effective tax rate to 33%. 0 10 20 30 40 50 FY19 FY20 FY21 FY22 FY23 FY24 F25 Millions 2H 1H 0 100 200 300 400 500 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Millions 2H 1H
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10 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP We operate to a simple formula 10 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP
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11 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP Quality outcomes for our shareholders Quality environment for our people + Quality customer experiences = Top 5% globally for levels of team engagement Winner of Most Trusted Used Car Dealership 5 years running 53% of our team (~350 people) own shares in Turners A decade of increasing dividends and share price growth for shareholders (except for 2020)
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12 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP Our strong culture is a key advantage for our business Employee Engagement Scores - How likely is it that you would recommend Turners Automotive Group as a place to work? 30% 40% 50% 60% 70% 80% 90% 0 1 2 3 4 5 6 7 8 9 10 How likely is it that you would recommend Turners Automotive Group as a place to work? % Promoters • 83% of leadership roles filled internally 59 20 19 35 80 Employee Net Promoter Score
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13 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP Turners has built a strong and sustainable business with a proven track record… • “Skin in the game” (30% shares owned around board table, 53% participation from employees). • Quarterly dividend payments. • Our dividend reinvestment plan (DRP) remains in place. • FY25 dividend of 29.0cps, +14% on prior year, capping off a decade of consistent increases.). 0.10 0.13 0.145 0.155 0.17 0.14 0.20 0.23 0.23 0.255 0.29 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Dividend per Share ($) CAGR 14% since FY15 10cps 29cps
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14 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP Future Growth Opportunities
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15 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP MyAutoShop rebranded to Turners Servicing and Repairs • Rebrand under way to Turners Servicing and Repairs to leverage strong brand awareness and equity in “Turners” brand. • Turners Servicing and Repairs is now nearing break-even, and we continue to investment aggressively for growth. • Marketing campaign launching Sept-25 to drive awareness of the ease and convenience of mobile servicing.
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16 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP
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17 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP 29.0 29.0 37.0 43.0 45.5 49.1 54.2 65.0 20 25 30 35 40 45 50 55 60 65 70 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 Target On track to achieve our medium term FY28 target earlier Net Profit Before Tax ($M) Target #1 (FY21) of $45M NPBT by FY24 - Achieved Target #2 (FY22) of $50M NPBT by FY25 - Achieved Target #3 (FY24) of $65M NPBT by FY28 • 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. Target #1 set in FY21 for FY24, and Target #2 set in FY22 for FY25
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18 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP Key takeaways… • Scale player, in a big market, operating off a platform of trust (in a market that stands for the opposite). • Proven track record with over a decade of profit and dividend growth. • “Skin in the game” with directors and management owning significant shares (30%). • Growth to come – well on track for our $65M target by FY28. • Servicing and repairs a big opportunity and first time we are leveraging the Turners brand into a new category. • People focused business…strong culture and highly engaged team, with ownership mindset = powerful combo.
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19 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP A new Tina campaign and a new number one… • This is the first time since December 2023 that there has been someone new at number one, with ASB and ANZ having continuously occupied the top two spots. • 3.3M views on YouTube 60 sec (56 sec viewing) • 2.7M views on YouTube 90 sec (78 sec viewing time) • Additional $600k investment in media July-25 YTD compared to July-24 YTD
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20 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP CEO’s Update Todd Hunter 20 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP
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21 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP Used car market demonstrating resilience % Change Yr on Yr, New Car vs Used Car Sales Source NZTA -30% -20% -10% 0% 10% 20% 30% 40% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Jun YTD Used Car % Change Y on Y New Car & LCV % Change Y on Y
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22 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP 2,500 2,700 2,900 3,100 3,300 3,500 3,700 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23 Jul-23 Oct-23 Jan-24 Apr-24 Jul-24 Oct-24 Jan-25 Apr-25 Dealer numbers in freefall Registered Dealer Numbers NZ (source MBIE) 25% drop 3,518 Feb-18 2,631 Jul-25 • Dealer numbers starting to track down again with weak demand, and difficulty in importing cars from Japan. • Ultimately, scale will be the key determinant of long-term success in this category.
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23 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP Business Divisions
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24 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP Auto Retail Division Strong brand Smart sourcing Operational agility
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25 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP Auto Retail - Summary • FY25 NZ auto market conditions were challenging, in line with the macroeconomic environment. • Our sourcing initiatives, pricing optimisation and stock management discipline during 1H set us up for margin expansion in 2H. • Damaged/end-of-life segment dropped on the previous year, due to more benign weather. • Commercial division benefited from increased liquidations and receiverships, particularly in 2H. • Continuing to expand our network and grow our market share. 13.8 15.4 19.4 25.0 31.8 29.1 0 5 10 15 20 25 30 35 FY20 FY21 FY22 FY23 FY24 FY25 Operating Profit Contribution Auto Retail ($M)
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26 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP Entering the next phase for ongoing growth push Location Branch Size Timing Expected additional profit contribution Tauranga – Tauriko (COMPLETED) Commercial 7,900m2 Q2 FY25 $400k Invercargill (COMPLETED) Cars 5,500m2 Q1 FY26 $400k Christchurch – Hornby (COMPLETED) Cars 15,500m2 Q1 FY26 $400k1 Christchurch – City Centre (COMPLETED) Cars 6,700m2 Q1 FY26 $500k1 Christchurch – Airport (COMPLETED) Cars 12,000m2 Q2 FY26 $300k1 Napier (COMPLETED) Commercial 6,000m2 Q1 FY26 $200k Roscommon Rd - Manukau Cars 10,000m2 Q3 FY26 $700k2 Tauranga - Greerton Cars 7,600m2 Q4 FY27 $600k Committed development pipeline 1 additional profit contribution over and above the current operating profit of Christchurch operations of ~$4M 2 initially geared as a processing branch to replace Auckland service center with some retailing. 3 larger site with increased rent somewhat revenue gains due to better profile. More opportunities to purchase sites at attractive valuations (stage of interest rate cycle). We own 17 of our sites with a cost value of $130M+ “Live” conditional offers • Drury – Commercial site 18,000m2 • Whanganui – Cars 3,500m2 • Takanini – Cars 8,0000m2 • Ormiston – Cars 7,200m2 “Opportunities” pipeline New locations • Albany north • North East Christchurch • Lower Hutt Existing locations expansion • New Plymouth
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27 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP Entering the next phase for ongoing growth push “Live” conditional offers • Drury – Commercial site 18,000m2 • Whanganui – Cars 3,500m2 • Takanini – Cars 8,0000m2 • Ormiston – Cars 7,200m2 “Opportunities” pipeline New locations • Albany north • North East Christchurch • Lower Hutt Existing locations expansion • New Plymouth Committed development pipeline 1 additional profit contribution over and above the current operating profit of Christchurch operations of ~$4M 2 initially geared as a processing branch to replace Auckland service center with some retailing. 3 larger site with increased rent somewhat revenue gains due to better profile. More opportunities to purchase sites at attractive valuations (stage of interest rate cycle). We own 17 of our sites with a cost value of $130M+
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28 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP Turners Cars (Invercargill)
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29 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP Turners Cars Wairakei Turners Cars Hornby Turners Cars Moorhouse Turners Cars Christchurch 1 into 3
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30 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP Turners Cars Hornby (Christchurch West)
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31 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP Turners Cars Moorhouse (Christchurch CBD)
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32 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP Turners Cars Wairakei (Christchurch Airport)
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33 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP Finance Division Strong brand Smart sourcing Operational agility
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34 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP Finance - Summary • Total ledger is growing again. • Through challenging economic conditions, arrears have remained substantially below industry norms. • Quality continues to improve with credit scores lifting and reduced higher risk commercial lending. • Net interest margin is expanding as OCR shifts from headwind to tailwind. 12.2 15.8 18.0 15.0 12.2 16.0 0 2 4 6 8 10 12 14 16 18 20 FY20 FY21 FY22 FY23 FY24 FY25 Operating Profit Contribution Finance ($M)
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35 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP 200 250 300 350 400 450 500 Mar-20 May-20 Jul-20 Sept-20 Nov-20 Jan-21 Mar-21 May-21 Jul-21 Sept-21 Nov-21 Jan-22 Mar-22 May-22 Jul-22 Sept-22 Nov-22 Jan-23 Mar-23 May-23 Jul-23 Sept-23 Nov-23 Jan-24 Mar-24 May-24 Jul-24 Sept-24 Nov-24 Jan-25 Mar-25 May-25 Jul-25 Millions Receivables by month (excl. impairments) Our finance business is back in growth mode Pricing discipline 5% book growth in first 4 months of FY26
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36 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP 619 630 635 632 634 650 659 674 699 703 702 712 722 730 729 735 740 742 560 580 600 620 640 660 680 700 720 740 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 1H21 2H21 1H22 2H22 1H23 2H23 1H24 2H24 1H25 2H25 Average consumer CENTRIX credit score Avg NZ auto loan portfolio We maintain our focus on credit quality Average Centrix credit score for loans on -boarded • Oxford FY26 YTD score at 745 • Premium borrower risk tier makes up 56.4% at July-25 (51.5% Jul-24)
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37 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 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 Apr-24 Jun-24 Aug-24 Oct-24 Dec-24 Feb-25 Total consumer arrears Industry arrears (Centirx) Quality lending is something we don’t compromise on Low point of 2.0% Consumer arrears Oxford Finance June 2.6% Centrix Auto Loan Portfolio June-25 - 5.4%
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38 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP Insurance Division Stable and consistent business Distribution networks remain strategically important Digital sales platform gaining momentum
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39 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP Insurance • Comprehensive Motor Insurance portfolio (underwritten by Suncorp NZ) has increased by +25% over FY24, with sustained customer acquisition and retention. • Winning dealer / broker market share • New digital platform launched, enhancing our direct-to-consumer capabilities. The private-to-private car market represents a significant opportunity to capture share. • NZ AA Digital Partnership successfully launched and showing promising early performance. 6.2 9.4 11.6 12.5 14.3 16.2 - 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 FY20 FY21 FY22 FY23 FY24 FY25 Operating Profit Contribution Insurance ($M)
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40 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP • Claims Cost inflation stabilising. • Autosure’s continuous risk pricing improvements, moved from 7 risk categories in FY24 to 14 risk categories in FY25. Allowing us to price our risk much more accurately. • Scale enables us to fix vehicles more cost effectively. Mechanical Breakdown Insurance (MBI) Loss Ratio Performance Combination of risk pricing and procurement have helped us moderate claims ratios 60% 58% 58% 58% 57% FY21 FY22 FY23 FY24 FY25
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41 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP Credit Management Division Strong growth in both debt referred and collected Economic conditions are a tailwind Well positioned for further growth
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42 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP Credit Management - Summary • Debt referred has increased in all sectors with both corporate and SME businesses feeling the impact of the economy on their arrears. • NZ wide credit metrics continue to track at the highest levels for the last 8 years. • Lower repayment amounts and extended payment arrangements due to diminished customer repayment capacity. • Payment arrangement "bank" growing as consumer debt load increases. 6.5 5.1 3.0 2.9 3.1 3.5 - 1.0 2.0 3.0 4.0 5.0 6.0 7.0 FY20 FY21 FY22 FY23 FY24 FY25 Operating Profit Contribution Credit ($M)
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43 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP NZ credit arrears metrics track at 8 year lows Consumer Arrears Trend Source – Centrix Credit Bureau
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44 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP Business has funding capacity for growth plans Borrowings by asset class ($M) • Strong credit appetite from our panel of funders, and pricing moving in a favourable direction. • Oxford capacity is expected to support lending over the next 12 months ~$100m in funding capacity. • Corporate funding capacity is sufficient to support current committed branch expansion plans in Auto Retail ~$50M in funding capacity 0 50 100 150 200 250 300 350 400 450 500 Finance Receivables (78% of total borrowings) Property (22% of total borrowings) Inventory (0% of total borrowings) Asset Borrowings
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45 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP Looking forward … 45 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP
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46 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP Segment Outlook Automotive Retail • Swap out of consignment cars for owned cars in 1H. • Some profit impact of Christchurch transition in Q1. • Additional cost of upweighted media for new Tina campaign in H1 ($600k). • Expect 2H26 to deliver stronger vehicle margins and volumes as overall demand improves. • Impact of new Tina campaign and benefits of new Christchurch branch footprint to flow in 2H26. Finance • Maintaining credit discipline remains a key priority. • We expect solid book growth for FY26 at stable margins.
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47 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP Segment Outlook Insurance • Earned premium holding up very well and claims ratios stable. • Contribution from new distribution arrangements and direct sales gaining momentum. • Motor vehicle insurance portfolio (underwritten by Vero) to continue to grow strongly. Credit Management • Our payment bank is rebuilding as debt load increases from the tightening economic conditions and the resultant impact on consumer arrears. • We have onboarded a large new corporate customer in April and we remain well positioned for the next stage of the NZ credit cycle.
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48 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP • The economy is still patchy and consumer confidence has declined since Liberation Day. Interest rates are still restrictive and unemployment is increasing. • Despite these challenges we are still expecting a record first half performance, HY26 NPBT expected to be at least +10% ahead. • Still on track to achieve our mid-term target of $65M NPBT in FY28 early. Guidance
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49 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP Shareholder Discussion 49 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP
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50 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP Resolutions 50 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP
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51 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP Resolutions ORDINARY RESOLUTIONS: Resolution 1 That Baker Tilly Staples Rodway be reappointed as auditor of the Company and that the Directors be authorised to fix the auditor’s remuneration. Resolution 2 That Grant Baker, who retires by rotation pursuant to NZX Main Board Listing Rule 2.7.1 and has offered himself for re-election, be re-elected as a Director of the Company. Resolution 3 That Todd Hunter, who was appointed by the Board since the Company’s last annual meeting and retires pursuant to NZX Main Board Listing Rule 2.7.1 and being eligible, has offered himself for election, be elected as a Director of the Company.
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52 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP Voting Resolution: Proxies FOR AGAINST PROXY DISCRETION 1. Auditor’s reappointment / remuneration 25,548,120 122,065 2,382,960 2. Re-election of Grant Baker 19,679,626 4,115,522 2,299,329 3. Re-election of Todd Hunter 25,736,330 23,074 2,293,240 Total proxies received in respect of 28,053,145shares representing 31.01% of total shares on issue. Voting on each resolution will be by way of poll.
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53 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP Close of meeting 53 • 2025 ASM PRESENTATION TURNERS AUTOMOTIVE GROUP