Turners Automotive Group Ltd · NZX:TRA
Turners Automotive — NZX Retail Investor Webinar (August 2021)
15 slides from Turners Automotive's conference presentation, Aug 12, 2021
Slide 1: NZX Retail Investor Webinar
For personal use only TURNERS AUTOMOTIVE GROUP NZX Retail Investor Webinar 12 August 2021
Slide 2: An integrated automotive financial services group
An integrated automotive financial services group Primarily operating in the automotive sector and providing strength in three key areas: For personal use only AUTOMOTIVE DEBT FINANCE AND RETAIL MANAGEMENT INSURANCE SERVICES Controlling the buying and selling of Helping customers with simple and Hel
Slide 3: A Transformed Business
A Transformed Business For personal use only Turners Auctions was established in 1967 As at March YE FY10 FY15 FY20 FY21 In 2014, Dorchester launched a successful takeover offer for Turners Shareholder Equity ($m) (3) 121 223 234 Auctions Total Assets ($m) 109 329 708 718 In 2017, Turners Limi
Slide 4: Our vision: To be NZ's leading ecosystem for vehicle users
For personal use only Our vision: To be NZ’s leading ecosystem for vehicle users 4 • FY21 RESULTS PRESENTATION – TURNERS AUTO GROUP 4 • NZX RETAIL WEBINAR – TURNERS AUTO GROUP
Slide 5: Successfully delivered on growth strategy
Successfully delivered on growth strategy Earnings and dividends have grown substantially and predictably For personal use only We are on track for a step change in profit and dividends over the next 3 year period. 5 • NZX RETAIL WEBINAR – TURNERS AUTO GROUP
Slide 6: A record result in FY21 despite Covid pandemic
A record result in FY21 … despite Covid pandemic For personal use only 1. We achieved 19% growth in normalised PBT in FY21…a step change in the business performance 2. Full year dividend at 20.0cps versus guidance of 18.0cps. Based on a share price of $4.30 this is a gross yield of 6.5% pa. 3. Our p
Slide 7: Annuity earnings are increasing
Annuity earnings are increasing Higher levels of annuity earnings are leading to more stable and predictable profits For personal use only Annuity business profits as a % of total operating profit 60% • Businesses are a mix of activity and 55% annuity based revenue business 50% 45% • Annuity profits
Slide 8: Our businesses are well positioned for the new norm
Our businesses are well positioned for the “new norm” For personal use only Auto Retail Insurance • Used cars have demonstrated resilience • Annuity earnings helpful in lockdowns • Geographical diversification • Premium taken up front • Improving technology and distribution • Diversified sources of
Slide 9: FY21 Results Presentation
For personal use only 9 • FY21 RESULTS PRESENTATION – TURNERS AUTO GROUP
Slide 10: Growth model: FY22 – FY24
Growth model: FY22 – FY24 For personal use only The model gives us confidence in higher earnings growth through the cycle…a number of changes we have been working on over the last 2-3 years are now delivering both market share growth and margin expansion as well as de-risking the business. We have f
Slide 11: Performance: Line of sight on where we're going
Performance: Line of sight on where we’re going Over three years we target 31% growth in Underlying NPBT 1 For personal use only Underlying Net Profit Before Tax ($M) 1 Dividends Paid (cps) 50 26.0 7.7% 24.0 CAGR 45 9.5% CAGR 22.0 40 20.0 35 18.0 16.0 30 14.0 25 12.0 20 10.0 FY18 FY19 FY20 FY21 FY24
Slide 12: Roadmap to $45m NPBT
Roadmap to $45m NPBT The majority of the profit growth with come out of Auto Retail and Finance divisions. For personal use only Net Profit Before Tax Bridge ($M) • Business is highly cash generative, leading to growth + yield for shareholders • Profit growth largely driven out of Auto Retail and Fi
Slide 13: Our pathway to future growth
Our pathway to future growth For personal use only 1. A strong focus on organic growth 2. Further optimisation in all businesses with margin expansion and market share gains 3. Focus on sustainable dividend growth - management and board “skin in the game” 4. We will consider and look at opportunisti
Slide 14: Questions
For personal use only Questions 14 • NZX RETAIL WEBINAR – TURNERS AUTO GROUP
Slide 15: Contact
Contact For personal use only Todd Hunter Group CEO T: 64 21 722 818 E: todd.hunter@turners.co.nz Aaron Saunders Group CFO T: 64 27 493 8794 E: aaron.saunders@turners.co.nz 15 • NZX RETAIL WEBINAR – TURNERS AUTO GROUP
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