Turners Automotive Group Ltd · NZX:TRA
Turners Automotive — FY2025 Earnings Presentation
53 slides from Turners Automotive's earnings presentation, May 2025
Slide 1: FY25 Results Presentation
FY25 Results Presentation For the period ending 31 March 2025 1 • TURNERS AUTOMOTIVE GROUP FY25 RESULTS
Slide 2: Disclaimer
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 com
Slide 3: 3 • TURNERS TURNERS AUTOMOTIVE AUTOMOTIVE GROUP
3 • TURNERS TURNERS AUTOMOTIVE AUTOMOTIVE GROUP GROUP FY25 FY24 RESULTS RESULTS
Slide 4: Record result, resilient model, confidence in future growth
• Record result caps off a decade of growth • Resilient model and outstanding team • Confidence in future growth 4 • TURNERS TURNERS AUTOMOTIVE AUTOMOTIVE GROUP GROUP FY25 FY25 RESULTS RESULTS
Slide 5: Record result caps off a decade of growth
Record result caps off a decade of growth Operating profit contribution by segment ($M) Dividend per Share ($) 70 0.35 60 0.30 0.29 0.255 50 0.25 0.23 0.23 Operating Profit ($M) 0.20 40 0.20 DPS ($) 0.17 0.155 0.145 0.14 30 0.15 0.13 0.10 20 0.10 10 0.05 0 0.00 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY2
Slide 6: Diversified model with widespread growth
Diversified model with widespread growth Auto Retail Volume growth and margin gains expected from a focus on domestic sourcing and 3x new Christchurch branches opening, with new branch pipeline building well. Finance Solid loan book growth expected and quality metrics will continue to improve. Provi
Slide 7: We delivered on growth, despite the economy
We delivered on growth, despite the 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 i
Slide 8: Our strong culture is a key advantage for our business
Our strong culture is a key advantage for our business Peakon Employee Engagement Scores • Turners rank in the top 5% of consumer businesses 9.5 90% 80% globally using the Peakon survey tool. 9.0 70% • We have now run our Employee Share Scheme for 3 8.5 years and take up is ~53%. 60% 8.0 • Turners s
Slide 9: 1. FY25 Results
1. FY25 Results 9 • TURNERS AUTOMOTIVE GROUP FY25 RESULTS
Slide 10: FY25 Results snapshot
FY25 Results snapshot Revenue 500.0 Revenue Shareholders’ Equity 400.0 $414.2M -1% $298M as at 31 March 25 Millions 300.0 2H 200.0 1H Net Profit Before Tax Final Dividend 9.0 cps (fully imputed) 100.0 $54.3M +10% FY Div 29.0 cps +14% - FY19 FY20 FY21 FY22 FY23 FY24 FY25 EBIT 1 Net profit after tax $
Slide 11: FY24 to FY25 Revenue bridge
FY24 to FY25 Revenue bridge Revenue flat from $417.0M to $414.2M Revenue Bridge FY24 to FY25 ($M) 417.0 • Auto Retail revenues have decreased from selling 420 1.5 0.5 - 414.2 5.9 lower value vehicles particularly in 1H25 as we (10.7) positioned stock for where demand in the market was. 400 Also fewe
Slide 12: FY24 to FY25 Net profit before tax (NPBT) bridge
FY24 to FY25 Net profit before tax (NPBT) bridge NPBT increased from $49.1M to $54.3M NPBT Bridge FY24 to FY25 ($M) 60 0.3 1.9 54.3 • Auto Retail profit growth decreased due to difficult 1H 1.9 50 49.1 3.8 trading period. Improved momentum as vehicle pricing stabilised and margins improved with 2H25
Slide 13: Turners has delivered sustainable dividend growth
Turners has delivered sustainable dividend growth Dividend per Share ($) 0.35 • 6.6% gross dividend yield based on a $6.10 share price. 0.30 0.29 COVID impacted year 0.255 • Continued the track record of delivering strong, 0.25 0.23 0.23 sustainable and growing dividends in the business 0.20 (CAGR 1
Slide 14: Balance sheet has capacity to support growth
Balance sheet has capacity to support growth ($M) FY25 FY24 Cash and cash equivalents 22 18 Financial assets at fair value 79 70 Inventory 22 25 • Inventory levels reflect lower value units and gains from a Finance receivables 447 430 focus on operational efficiencies to improve stock turn. Property
Slide 15: Business has funding capacity for growth plans
Business has funding capacity for growth plans Borrowings Borrowings by asset class ($M) ($M) Limit Drawn 500 Receivables – Securitisation (BNZ/ACC) 399 322 450 Receivables – Banking Syndicate (ASB/BNZ/Westpac) 50 27 400 350 Less Cash (8) 300 Net Receivables Funding 449 341 250 200 Receivables Fundi
Slide 16: 2. Segment Results
2. Segment Results 16 • TURNERS AUTOMOTIVE GROUP FY25 RESULTS
Slide 17: FY25 by segment
FY25 by segment Automotive Revenue ($M) Finance Insurance Credit Retail 1H25 146.3 (6%) 33.6 11% 23.7 4% 5.4 2% 2H25 141.6 (1%) 34.7 8% 23.9 2% 4.9 9% FY25 Total 287.9 (4%) 68.3 9% 47.6 3% 10.3 5% Automotive NPBT ($M) Finance Insurance Credit Retail 1H25 14.7 (18%) 8.1 59% 7.7 8% 1.8 2% 2H25 14.4 4%
Slide 18: Auto Retail Division
Auto Retail Division Strong brand Smart sourcing Operational agility 18 • TURNERS AUTOMOTIVE GROUP FY25 RESULTS
Slide 19: Auto Retail - Summary
Auto Retail - Summary Revenue $287.9M -4%, Segment Profit $29.1M -8% • FY25 NZ auto market conditions were challenging, in line with the macroeconomic environment. • Our sourcing initiatives, pricing optimisation and stock management discipline during 1H set us up for margin expansion in 2H. • Ope
Slide 20: Disciplined approach to stock management
Disciplined approach to stock management Average Vehicle Margin 1 by Quarter 1100 1,082 1050 • Overall units sold up +3% to 41,300 units. Retail 1000 975 977 970 987 (BuyNow) unit sales +4% to ~21,200, Same store 953 958 953 BuyNow units +2%. 950 900 • Demand for lower-priced stock remains steady,
Slide 21: Used car market slowly recovering
Used car market slowly recovering… NZ Used Car Change of Ownerships (000s) • Overall transaction levels grew +1% in FY25. 1,150 45,000 1,100 40,000 • The last year saw a material impact on the used import market with 35,000 continued changes in government regulation. No. of transactions (000s) 1,
Slide 22: Local sourcing continues to deliver growth, margin and address customer need
Local sourcing continues to deliver growth, margin and address customer need Owned cars sold through Turners + Average Margin 1 30,000 1,200 25,000 1,000 • Total “owned” units sold in FY25 +6% to 26,767 and overall margin per unit on cars 20,000 800 we own is down 16% for FY25. Avergae margin ($) •
Slide 23: Entering the next phase for ongoing growth push
Entering the next phase for ongoing growth push More opportunities to purchase sites at appropriate valuations (stage of interest rate cycle). Committed development pipeline Expected additional Location Branch Size Timing profit contribution “Live” conditional offers Tauranga – Tauriko Commercial 7,
Slide 24: 24 • TURNERS AUTOMOTIVE GROUP FY25 RESULTS
24 • TURNERS AUTOMOTIVE GROUP FY25 RESULTS
Slide 25: Tina 2.0
Tina 2.0 • New integrated campaign launched May 2025 • 90"/60"/30" brand TVCs with 8 other executions – total of $700K production • +15% increase in media investment from $4.2M in FY25 to $5.1M in FY26 • Expanding campaign messaging from sourcing to now include selling ads • Content generated for mu
Slide 26: Finance Division
Finance Division Net interest margin expanding Arrears stayed flat and well below industry Well positioned for growth 26 • TURNERS AUTOMOTIVE GROUP FY25 RESULTS
Slide 27: Finance - Summary
Finance - Summary Revenue $68.3M +9%, Segment Profit $16.0M +31% • Total ledger is growing again. • During extreme economic hardship, our arrears have remained substantially below industry norms. • Quality continues to improve with credit scores lifting and reduced higher risk commercial lending. •
Slide 28: Strong Q4 growth in loan book
Strong Q4 growth in loan book Receivables by month (excl. impairments) Largest monthly 500 growth ($7m) Pricing since May22 discipline 450 • Despite challenging economic conditions, the total active receivables have increased from $427m (Mar24) to $442m (Mar25) 400 • The growth has largely come from
Slide 29: Arrears well below industry due to continued focus on credit quality
Arrears well below industry due to continued focus on credit quality • Consumer loan arrears continue to perform materially Consumer arrears vs auto-loan industry (Centrix) better than market data (see chart at left). 8% • Hardship applications have consistently increased through 7% FY25, peaking in
Slide 30: Highest net interest margin (NIM) in 3 years
Highest net interest margin (NIM) in 3 years NIM % (after originator commission) 8% 7.4% 7% 6.8% 6.6% • NIM has increased further in 2H25 as cost of funds have 5.9% 5.8% stabilised and the loan book has been repriced 6% 5.4% 5.5% 5.2% 5% 4.8% • The pace of recovery is expected to be slower than the
Slide 31: Improving conversion demonstrates operating leverage
Improving conversion demonstrates operating leverage and reduces cost to income measures Opened loans as a percentage of total applications (above 500 CCR) 55% 75% 70% • Cost to income ratio has reduced from 65% to 50% 65% 60%, as a result of operational efficiency gains. 60% 45% • Loan conversion r
Slide 32: Insurance Division
Insurance Division Stable and consistent business Distribution networks remain strategically important Digital sales platform gaining momentum 32 • TURNERS AUTOMOTIVE GROUP FY25 RESULTS
Slide 33: Insurance
Insurance Revenue $47.6M +3%, Segment Profit $16.2M +13% • Strong GWP growth across all insurance portfolios with Gross Written Premium (GWP) FY24 to FY25 ($000’s) key distribution partnerships continuing to deliver significant value (large dealer and finance broker 42,000 287 41,826 partnerships) 1
Slide 34: Risk pricing and procurement have helped moderate claims ratios
Combination of risk pricing and procurement have helped us moderate claims ratios Mechanical Breakdown Insurance (MBI) Loss Ratio Performance 60% • Claims Cost inflation stabilising. 58% • MBI Claims Ratio showing a slight reduction and 58% 58% holding steady, reflecting our effective claims 57% man
Slide 35: Credit Management Division
Credit Management Division Strong growth in both debt referred and collected Economic conditions are a tailwind Well positioned for further growth 35 • TURNERS AUTOMOTIVE GROUP FY25 RESULTS
Slide 36: Credit Management - Summary
Credit Management - Summary Revenue $10.3M +5%, Segment Profit $3.5M +11% • Debt referred has increased in all sectors with both corporate and SME businesses feeling the impact of the economy on their arrears. • NZ wide credit metrics continue to deteriorate across 2024, and are tracking at the high
Slide 37: Debt referred/collected growing, steadily
Debt referred/collected growing, steadily Total debt referred for FY25 (NZ$M) $250 $200 $150 • First referral corporate debt load increased in FY25, +52% driven $100 by government and banking clients. $50 • Higher yielding SME clients debt load increased +8% in FY25 $0 reflecting impacts of recessio
Slide 38: Strong growth in payment arrangement bank
Strong growth in payment arrangement bank Debts under repayment arrangement 7,600 7,400 • Total debts under arrangement up +17% in the last 12- 7,200 months and building. 7,000 • Cost-of-living pressures are resulting in longer repayment arrangements to resolve outstanding debts. 6,800 6,600 • The '
Slide 39: Servicing and Repairs
Servicing and Repairs 39 • TURNERS AUTOMOTIVE GROUP FY25 RESULTS
Slide 40: Focus on integration, brand transition and co-marketing
Focus on integration, brand transition and co-marketing • Recap - Turners invested $3.35M for 50% of My Auto Shop in August 2024 an early stage growth opportunity. • Turners supports growth by integrating My Auto Shop into its Auto Retail network, creating significant synergies by conducting servici
Slide 41: 3. Looking forward
3. Looking forward … 41 • TURNERS AUTOMOTIVE GROUP FY25 RESULTS
Slide 42: Our key risks are narrowing
Our key risks are narrowing… Challenge Mitigation Mar22 Mar23 Sept23 Mar24 Sept24 Mar25 • Diversifying funding sources • Increase volume of higher margin Funding and direct lending Interest rate • Increase hedging High Medium Low Low Low Low movements • Operate the business conservatively against fu
Slide 43: Outlook
Outlook • Group – Our expectations are to see continued strong progress towards our FY28 goal of $65M NPBT over the next twelve months. The business will continue to benefit from the tailwind of reducing interest rates as will the NZ economy which will translate into more robust demand for cars. We
Slide 44: On track to achieve FY28 target earlier
On track to achieve FY28 target earlier Net Profit Before Tax ($M) 70 65.0 65 60 Target #1 of $45M NPBT by FY24 - Achieved 54.2 55 49.1 Target #2 of $50M NPBT by FY25 - Achieved 50 45.5 45 43.0 Target #3 of $65M NPBT by FY28 40 37.0 • Assumes organic growth out of Auto Retail with new 35 branches pl
Slide 45: Results Video
Results Video: A short video is available summarising the FY25 results at… https://www.turnersautogroup.co.nz/investor-centre 45 • TURNERS AUTOMOTIVE GROUP FY25 RESULTS
Slide 46: Questions
Questions 46 • TURNERS 46 • TURNERS AUTOMOTIVE AUTOMOTIVE GROUPGROUP FY25 RESULTS FY25 RESULTS
Slide 47: Contact
Contact 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 47 • TURNERS 47 • TURNERS AUTOMOTIVE AUTOMOTIVE GROUPGROUP FY25 RESULTS FY25 RESULTS
Slide 48: Appendices
Appendices 48 • TURNERS 48 • TURNERS AUTOMOTIVE AUTOMOTIVE GROUPGROUP FY25 RESULTS FY25 RESULTS
Slide 49: Transition of wholesale to retail is progressing
Transition of wholesale to retail is progressing. • BuyNow units increased by 4.4% to 21,200 in FY24 FY25 FY24 FY25 FY25. A strong result in a recessionary market. 22,400 23,000 OWNED 20,300 21,200 RETAIL • 20,100 units sold through auction in FY25 56% 56% 50.6% 51.3% v 19,800 sold in FY24 a 1.5% in
Slide 50: Damaged vehicle volumes down with no material weather events
Damaged vehicle volumes down with no material weather events Damaged and end of life (DEL) vehicle units sold through Turners 40,000 35,000 • Volumes are down -5% or 1,700 units in comparison to the previous year which had the benefit of 30,000 weather damaged vehicles in Auckland and the Hawkes Bay
Slide 51: Underwriting quality continues to improve
Underwriting quality continues to improve Average Centrix credit score for loans on-boarded 740 742 740 735 730 729 722 Average consumer CENTRIX credit score 720 712 703 702 699 700 • In FY25 premium tier lending (CCR score of 735+) Avg NZ auto made up 60% of our new lending (54% in FY24). 680 loan
Slide 52: Turners Auto Retail finance attach rates and originated loan ledger with Oxford
Turners Auto Retail finance attach rates and Turners originated loan ledger with Oxford Turners Ledger and Loan Attach Rate 120 36% 106.8 108.7 101.1 34% 100 94.7 86.3 32% 83.3 79.6 80 73.7 30% 66.7 64.3 57.8 60 28% 44.5 26% 40 29.8 24% 20 10.1 22% 0 20% H1 19 H2 19 H1 20 H2 20 H1 21 H2 21 H1 22 H2
Slide 53: Tailwind effect of NZ wide credit metrics still deteriorating
Tailwind effect of NZ wide credit metrics still deteriorating year on year Consumer arrears trend Source – Centrix Credit Bureau 53 • TURNERS AUTOMOTIVE GROUP FY25 RESULTS
Turners Automotive Group — FY2025 Earnings Presentation on 6ix