Turners Automotive Group Ltd · NZX:TRA
Turners Automotive — Investor Presentation (July 2018)
24 slides from Turners Automotive's investor presentation, Jul 2, 2018
Slide 1: FY18 Retail Investor Presentation
For personal use only FY18 Retail Investor Presentation
Slide 2: Agenda & Introductions
AGENDA & INTRODUCTIONS For personal use only • Overview • Customer Journeys • Market Update • Highlights and Divisional Review • Focus areas • Outlook Todd Hunter CEO Aaron Saunders CFO 2 FY18 Full Year Results Presentation
Slide 3: Turners: An Integrated Automotive Group
TURNERS’ AN INTEGRATED AUTOMOTIVE GROUP For personal use only Turners Automotive Group - the biggest seller of cars, trucks and machinery in NZ. We finance them and insure them for mechanical breakdown, accident and loan repayments with the best range of products in the market. CREDIT AUTOMOTIVE FIN
Slide 4: Examples of Turners Ecosystem
EXAMPLES OF TURNERS ECOSYSTEM For personal use only Research Purchase Disposal Finance Insurance Service & End of Life Nina is looking Maintenance to upgrade her current 7 year old car, finds a Trademe.co.nz late model ex- Turners.co.nz rental at Buy Buyrightcars.co.nz Right Cars Research Purchase D
Slide 5: Examples of Turners Ecosystem
EXAMPLES OF TURNERS ECOSYSTEM For personal use only Research Purchase Disposal Finance Insurance Service & End of Life Tim is looking Maintenance for a used import on TradeMe and Trademe.co.nz Buys from Trades in old Takes out finance and insurance finds the perfect dealer in car through at time of
Slide 6: The Kiwi Car Economy
THE KIWI CAR ECONOMY For personal use only 164,000 153,000 3.85m Light vehicles in the NZ vehicle fleet 7,232 EVs used cars were imported into NZ in year ended Mar 18 New passenger and light commercial vehicles sold into NZ in year ended Mar 18 7,232 as at the end of March 2018, more than double its
Slide 7: Highlights and Divisional Performance
For personal use only Highlights and Divisional Performance
Slide 8: FY18 Financial Highlights
FY18 FINANCIAL HIGHLIGHTS Continuing growth in revenue and profit For personal use only REVENUE Revenue $330.5m, +32% 350.0 300.0 Net Profit Before Tax $31.1m, +26% 250.0 (Guidance NPBT $29m to $31m) Millions 200.0 150.0 Net Profit After Tax $23.4m, +33% 100.0 50.0 NPATA $24.9m, +42% 0.0 FY14 FY15 F
Slide 9: FY17: FY18 Profit Bridge
FY17: FY18 PROFIT BRIDGE For personal use only $31.1m • Turners Group shows incremental improvement across all divisions • BRC impacted by margin compression and dealing with aged stock issue • Finance result improvement due to increase in ledger up 39% $24.6m • Insurance showing step change in prof
Slide 10: Automotive Retail
AUTOMOTIVE RETAIL Revenue $223.2m +16%, Op Profit $16.6m +8% For personal use only Sales by Customer Type for Turners Cars 100% • Turners Group strong result with operating profit up 15% off 90% revenue growth of 10%. • Continuing increase in fixed price sales (cf auction or tender) - 80% up 17% YoY
Slide 11: Auto Retail: Buy Right Cars
AUTO RETAIL: BUY RIGHT CARS For personal use only • Revenue growth of 34% reflecting full year of operation, operating profit down 21%. • Financial performance has disappointed as new management team deals with legacy issues • New management team in place since Customer view of Buy Right Car and Tur
Slide 12: Auto Retail: Property Opportunity
AUTO RETAIL: PROPERTY OPPORTUNITY For personal use only • Property reconfiguration to drive improved retail experience for further growth • Used vehicle business creates opportunity to be innovative in location and configuration eg container offices • Purchasing either brown fields or bare land with
Slide 13: Napier – Retail Expansion
NAPIER – RETAIL EXPANSION For personal use only FY18 Full Year Results Presentation 14
Slide 14: Porirua – Land Purchase & Development
PORIRUA – LAND PURCHASE & DEVELOPMENT For personal use only FY18 Full Year Results Presentation 15
Slide 15: Finance
FINANCE Revenue $39.7m +48%, Op Profit $11.7m +16% For personal use only FY18 LOAN BOOK GROWTH 310 Millions 10 290 290 24 270 48 250 • Finance receivables growth has continued, up 40% to $290m from March 2017 230 207 • Continued enhancements of online loan approval platform 210 AutoApp (insurance in
Slide 16: Insurance
INSURANCE Revenue $46.9m +283%, Op Profit $5.7m, +518% For personal use only Policy and Gross Written Premium Growth in Insurance • Autosure acquisition creates step change in scale of 45 100000 insurance business in FY18 90000 40 • Consolidation of insurance brands into single entity 80000 35 • Use
Slide 17: Credit Management
CREDIT MANAGEMENT Revenue $18.7m, Op Profit $6.1m – in line with FY17 For personal use only • Solid and consistent performer, delivering good cashflow and profitable returns • Continue to increase debt load from key NZ corporate accounts at expense of competitors • Still big opportunity in Australia
Slide 18: Funding Mix
FUNDING MIX For personal use only FY18 $m % of Total FY17 $m % of Total • $30M capital raise in Oct 17 TOTAL ASSETS 652 557 • Convertible Bonds of $26M Equity 214 33% 172 31% mature Sept 2018. Convertible bonds 26 4% 26 5% • Growth in Securitisation 133 20% 69 12% Warehouse reflects growth in Securi
Slide 19: Opportunities and Strategic Focus
For personal use only Opportunities and Strategic Focus FY18 Full Year Results Presentation
Slide 20: Key Focus for FY19
KEY FOCUS FOR FY19 For personal use only • AUTO RETAIL – Customer experience (people and property), redirect Finance into OFL, leverage trucks and machinery network • FINANCE – redirect finance from Turners into OFL, Customer experience quicker and easier through smart data analytics, re-position to
Slide 21: Outlook
OUTLOOK For personal use only • Used car market is resilient, less discretionary than new • A large aging vehicle fleet that needs to be replaced • 80% of people purchasing vehicles under $20k • High trust position in the “Turners” brand FY19 NPBT guidance $34 million to $36 million FY18 Full Year R
Slide 22: Questions
For personal use only Questions
Slide 23: Contact
For personal use only Contact: Todd Hunter CEO Turners Limited T: 64 21 722 818 E: todd.hunter@turners.co.nz FY18 Full Year Results Presentation 24
Slide 24: Disclaimer
DISCLAIMER For personal use only 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
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