Turners Automotive Group Ltd · NZX:TRA
Turners Automotive — Q2 2026 Earnings Presentation
52 slides from Turners Automotive's earnings presentation, Nov 19, 2025
Slide 1: 1H26 Results Presentation
1H26 Results Presentation For the six months ending 30 September 2025 1 • 1H26 RESULTS PRESENTATION
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 c
Slide 3: Resilient used car market, diversified model, improving capital effectiveness
Resilient used car market Diversified business model Improving capital effectiveness 3 • 1H26 RESULTS PRESENTATION
Slide 4: We delivered on growth, despite the economy
We delivered on growth, despite the economy … 1. The result extended our track record of resilience, by delivering another record result, despite an extremely challenging consumer environment. 2. NZ used car market continues to show resilience, despite registered dealer numbers declining to lowest l
Slide 5: Diversified model with widespread growth
Diversified model with widespread growth Auto Retail Vehicle margins up on owned stock. Lease and import unit sales down. Demand has been patchy, consistent with two speed economy. Finance Strong growth in origination, interest rate environment supportive, with net interest margin stable as we push
Slide 6: Used car market continues to show resilience
Used car market continues to show resilience NZ used car transaction volumes (Apr to Sep) • Overall used car transaction levels for 1H26 +4% on 1H25. 600,000 • Used import registrations -13.5% on 1H25. 550,000 • Pressure on securing stock due to fewer imports coming into NZ will reduce with recentl
Slide 7: Registered dealer numbers lowest since May 2012
Registered dealer numbers lowest since May 2012 Registered Motor Vehicle Trader Numbers (NZ) 3,700 Since “peak-dealer” in 3,500 November 2017 at 3,535 the number of dealers in 3,300 NZ has dropped by 27% 3,100 2,900 2,700 2,500 Aug-21 Apr-18 Oct-20 Apr-23 Mar-21 Jan-17 Jun-17 Jan-22 Jul-24 Jul-19 Ju
Slide 8: 1H26 Financial Performance
1H26 Financial Performance… 8 • 1H26 RESULTS PRESENTATION
Slide 9: 1H26 Results snapshot
1H26 Results snapshot Revenue 450 400 Revenue Shareholders’ Equity 350 300 $219.0M +5% $306M as at 30 Sept 2025 NZ$M 250 2H 200 1H 150 Q2 Fully Imputed Dividend 8.0 cps 100 EBIT1 Projected FY fully imputed 50 $34.1M +10% Div of at least 32.0 cps 0 FY20 FY21 FY22 FY23 FY24 FY25 FY26 +10% Net Profit A
Slide 10: 1H25 to 1H26 Net profit before tax bridge
1H25: 1H26 Net profit before tax (NPBT) bridge NPBT increased +13% to $30.2M NPBT Bridge 1H25 to 1H26 • Auto Retail profit lifted on improved 35 owned-stock margins and a stronger 30 1.3 1.4 0.7 0.8 30.4 commercial business. 26.9 (0.7) 25 • Finance profit increased as market-share gains drove loan-b
Slide 11: Robust balance sheet
Robust balance sheet NZ$M 1H26 1H25 Cash and cash equivalents 20.4 16.7 Financial assets at fair value 85.5 72.7 • Inventory levels have grown but remain low Inventory 19.1 16.1 relative to historical levels. Finance receivables 492.9 430.9 Property, plant and equipment 142.9 130.3 • Good growth in
Slide 12: Funding mix optimised to support growth
Funding mix optimised to support growth Borrowings Borrowings by asset class (NZ$M) (NZ$M) Limit Drawn 600 Receivables – Securitisation Trusts 377 361 493 500 Receivables – Banking Syndicate (ASB/BNZ) 50 30 391 Less Cash (6) 400 Net Receivables Funding 427 385 300 Receivables Funding Capacity 42 200
Slide 13: Spotlight – Securitisation warehouse term out
Spotlight – Securitisation warehouse term out Margin on AAA rated Motor Vehicle ABS Securitisation Deals 200 185 180 155 160 155 • Turners termed out $200M of securitised receivables 160 140 145 from the warehouse funded by BNZ to new investors 140 130 125 122 115 120 120 114 115 in an inaugural pub
Slide 14: Improving capital effectiveness is a priority
Improving capital effectiveness is a priority • Improving return on capital metrics is a focus for management and the board. • Capital allocation within the group will focus on the highest returning initiatives: ― Auto Retail growth ― Finance book growth • All capital initiatives are benchmarked aga
Slide 15: Growing dividends for over a decade
Growing dividends for over a decade Dividend (cps) 35.0 32.0 30.0 29.0 • Proven track record of delivering consistent and COVID impacted year 25.5 growing dividends. 25.0 23.0 23.0 • The dividend payout ratio remains between our 20.0 target ration of 60-70% of NPAT. 20.0 15.5 17.0 • Quarterly divide
Slide 16: Segment Results
Segment Results 16 • 1H26 RESULTS PRESENTATION
Slide 17: 1H26 by segment
1H26 by segment NZ$M Automotive Retail Finance Insurance Credit Revenue 152.6 5% 37 10% 24.7 4% 4.6 -14% Segment Profit 16 9% 9.5 18% 8.4 9% 1.1 -42% 17 • 1H26 RESULTS PRESENTATION
Slide 18: The business has a diverse and resilient earnings base
The business has a diverse and resilient earnings base Operating profit contribution by segment ($M) 40.0 35.0 1.1 1.8 1.8 30.0 8.4 2.1 1.4 7.1 7.7 25.0 5.8 6.3 NZ$M 3.0 5.1 9.5 20.0 8.1 4.5 15.0 9.9 9.1 7.6 10.0 18.0 16.0 14.7 5.0 10.2 11.1 7.8 - HY21 HY22 HY23 HY24 HY25 HY26 Auto Retail Finance In
Slide 19: Auto Retail Division
Auto Retail Division Strong brand Smarter sourcing Operational efficiency 19 • 1H26 RESULTS PRESENTATION
Slide 20: Auto Retail - Summary
Auto Retail - Summary Revenue 152.6M +5%, Segment Profit $16.0M +9% • More local units purchased and margin improvement on owned stock as a result of more disciplined buying and improved stock turn. • Additional marketing investment ($600k) in 1H for launch of brand campaign Tina 2.0. • Consignment
Slide 21: Margins have improved 1H26 v 1H25
Margins have improved 1H26 v 1H25 Average margin 1 ($) and units of “owned” vehicles sold 16,000 1,000 • Good recovery in 1H26 margins over 1H25 14,000 with more disciplined buying and tighter 12,000 800 aged inventory management. Avergae Margin ($) 10,000 Units Sold 600 • Continued growth in owned
Slide 22: Damaged and End of Life volumes stable
Damaged and End of Life volumes stable Damaged and end of life (DEL) vehicle units sold through Turners 20,000 Cyclone Gabrielle • An increasing number of “end of life” and Auckland weather event cars are sourced outside of the 18,000 traditional insurance accident write- 16,000 offs. This is +100%
Slide 23: Entering the next phase for ongoing growth
Entering the next phase for ongoing growth More opportunities to secure sites (stage of interest rate cycle and economy). Committed development pipeline Expected additional In progress negotiations Location Branch Size Timing profit contribution • Tauranga – Mt Maunganui 8,000m2 Invercargill (COMPLE
Slide 24: Finance Division
Finance Division Loan book in growth mode Credit quality continues to improve Generating operating leverage 24 • 1H26 RESULTS PRESENTATION
Slide 25: Finance - Summary
Finance - Summary Revenue $37.0M +10%, Segment Profit $9.5M, +18% • Ledger in growth mode +13% on 1H25. • Quality has now been stress-tested. Arrears are substantially below industry norms. • Quality continues to improve with credit scores lifting and reduced commercial lending. • Net interest margi
Slide 26: Lending book starting to grow again
Lending book starting to grow again Receivables by month (excl. impairments) 500 • Despite industry contraction, the total ledger has Millions 450 increased to $483M, from $426M in September 2024. 400 • Consumer lending has increased while commercial 350 lending has decreased. Our credit policies ha
Slide 27: Underwriting quality continues to improve
Underwriting quality continues to improve Average Centrix credit score for loans on-boarded 740 742 744 740 735 730 729 722 720 712 699 703 702 700 Avg NZ auto loan portfolio • Premium Tier lending (CCR score of 735+) 674 makes up 57% of our ledger in Sep-25 up 680 659 from 52% in September 24. 660
Slide 28: Arrears well below industry due to quality lending
Arrears well below industry due to quality lending Consumer arrears vs auto-loan industry (Centrix) • Loan arrears continue to perform materially better 8.0% than market data. • Hardship applications have averaged 55 per month in 6.0% 1H26 down from 67 per month in 1H25. 5.10% • We have transitioned
Slide 29: Net interest margin (NIM) on the rise
Net interest margin (NIM) on the rise NIM % (after originator commission) 8.0% 7.38% 7.0% 6.77% 6.61% 5.89% 5.81% 5.93% • NIM has stabilised with the interest rate cycle 6.0% 5.42% 5.45% becoming a tailwind. 5.17% 5.0% 4.78% 4.59% • Our forward view is that NIM will stabilise 4.0% around 6.0%. 3.0%
Slide 30: Insurance Division
Insurance Division Stable and consistent business Distribution networks strategically important Digital direct platform delivering 30 • 1H26 RESULTS PRESENTATION
Slide 31: Insurance - Summary
Insurance - Summary Revenue $24.7M +4%, Segment Profit $8.4M, +9% • Gross Written Premium (GWP) +10%. • Claims ratio is being well managed. • Claims cost inflation has eased. • The digital direct platform has launched and offers substantial upside over time. • Distribution strategy focuses on a high
Slide 32: Premiums written increasing and distribution grows
Premiums written increasing and distribution grows Gross Written Premium 1H25 to 1H26 ($000’s) • Gross written premium (GWP) +10% to $22.8M for 1H26 with Gross earned premium (GEP) up slightly at $18.9M v $18.5M 24,000 for 1H25. 23,000 127 22,788 2,049 • Total overheads flat at $4.4M, investment inc
Slide 33: MVI premium continues to grow well
MVI premium continues to grow well Motor Vehicle Insurance Gross Written Premium ($) 30 25.0 25 23.6 20 • MVI premium continues to grow well 16.0 $M 15 • Autosure resell Vero MVI product, which Vero take 10.5 the underwriting risk for. 10 8.7 9.2 5 - HY21 HY22 HY23 HY24 HY25 HY26 33 • 1H26 RESULTS P
Slide 34: Digital direct distribution growing well
Digital direct distribution growing well No. of policies sold via digital direct 450 418 400 • Significant lift in policies sold direct online. 350 300 • Distribution partnerships with NZ AA and Quashed 250 gaining momentum. 200 165 143 150 108 100 50 0 3Q25 4Q25 1Q26 2Q26 34 • 1H26 RESULTS PRESENTA
Slide 35: Claims are being well managed
Claims are being well managed Mechanical Breakdown Insurance (MBI) Loss Mechanical Breakdown Insurance (MBI) Average Ratio Performance Claims Cost 59% 58% $1,386 $1,320 58% $1,211 57% $1,071 HY23 HY24 HY25 HY26 HY23 HY24 HY25 HY26 MBI Loss Ratio Average Claims Cost - MBI ($) • Autosure’s continuous
Slide 36: Credit Management Division
Credit Management Division Challenging environment Payment bank rebuilding Growing SME business 36 • 1H26 RESULTS PRESENTATION
Slide 37: Credit Management - Summary
Credit Management - Summary Revenue $4.6M -14%, Segment Profit $1.1M, -42% • Reduction in debt load due to a number of major clients undertaking system upgrades resulting in several months of debt load being paused. • Commission revenue inline with 1H25 but product sales to SMEs -23% due to challeng
Slide 38: Debt referred and collected
Debt referred and collected Total debt referred for 1H26 (NZ$M) • Reduction in debt load due to a number of major clients $140 undertaking system upgrades resulting in several months of $120 debt load being paused. $100 $80 • Despite the -24% reduction in debt loaded, the team have $60 $40 delivered
Slide 39: NZ wide credit metrics showing no material signs of improvement
NZ wide credit metrics showing no material signs of improvement Consumer arrears trend Source – Centrix Credit Bureau 39 • 1H26 RESULTS PRESENTATION
Slide 40: Turners Servicing and Repairs
Turners Servicing and Repairs Brand change Growing the customer base Growing the network 40 • 1H26 RESULTS PRESENTATION
Slide 41: MyAutoShop to Turners Servicing and Repairs
MyAutoShop to Turners Servicing and Repairs • Significant opportunity to develop a scale player in the highly fragmented $3B auto repair market in NZ. • Significant partnership developing with VTNZ, TSR have taken over pre-purchase inspections for VTNZ. Bookings and Service / Repair Jobs by HY • Tot
Slide 42: Google reviews
Google reviews 42 • 1H26 RESULTS PRESENTATION
Slide 43: Outlook
Outlook 43 • 1H26 RESULTS PRESENTATION
Slide 44: Our key risks remain consistent
Our key risks remain consistent … Challenge Mitigation Mar22 Mar23 Sept23 Mar24 Sept24 Mar25 Sep-25 • Diversifying funding sources • Increase volume of higher Funding and margin direct lending Interest rate • Increase hedging High Medium Low Low Low Low Low movements • Operate the business conservat
Slide 45: Segment Outlook
Segment Outlook • Automotive Retail – continuation of branch expansion plans, recovery in lease units and improvement in retail numbers as economy continues to track out of recession. Vehicle pricing is expected to lift which will be supportive of margins. • Finance – Maintaining credit discipline r
Slide 46: Guidance
Guidance The two-speed economy is expected to persist into 2H26, moderating the pace of consumer recovery. We are on track to achieve another record full year result of around $60M in NPBT, with an expected dividend payout of at least 32cps. 46 • 1H26 RESULTS PRESENTATION
Slide 47: Summary
Summary • A record 1H26 result demonstrated the Group’s resilience and agility, keeping TRA on track to deliver another record full - year outcome • 1H26 unfolded differently than expected, with slower demand recovery and lower consignment volumes, and more competition for local NZ stock. • Our team
Slide 48: 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 48 • 1H26 RESULTS PRESENTATION
Slide 49: Transition of wholesale to retail remains a big opportunity
Transition of wholesale to retail remains a big opportunity • Retail sales have been challenging with sluggish demand environment. 1H25 1H26 1H25 1H26 • The rapid aging of the NZ Fleet has 11,629 12,018 OWNED 11,048 9,974 RETAIL resulted in more End of Life cars being 55% 58% 52% 48% purchased which
Slide 50: Wholesale to retail transition slowed by stock mix and economic conditions
Wholesale to retail transition slowed by stock mix and economic conditions Owned cars sold by channel (HY) Consigned cars sold by channel (HY) 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% 1H19 2H19 1H20 2H20 1H21 2H21 1H22 2H22 1H23 2H23 1H24 2H24 1H25 2H25 1H26 1H19
Slide 51: Spotlight – Ex Overseas Imported Registrations
Spotlight – Ex Overseas Imported Registrations NZ Ex-Overseas Registrations (CY 2006 to 2025 Sep YTD) • Recent changes to the Clean Car Discount 180,000 Standard will benefit Turners in the 160,000 following way: 140,000 • More replacements mean older units exit 120,000 the fleet, feeding sales thro
Slide 52: Our strong culture is a key advantage for our business
Our strong culture is a key advantage for our business Employee Net Promoter Score (eNPS) - How likely is it that you would recommend • 67% share ownership from Turners Automotive Group as a place to work? employees 10 90% • 83% of leadership roles filled internally 9 80% 8 Latest Published Employee
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