Turners Automotive Group Ltd · NZX:TRA
Turners Automotive — Investor Presentation (October 2023)
26 slides from Turners Automotive's investor presentation, Oct 11, 2023
Slide 1: NZX Virtual Investor Event Oct 2023
NZX Virtual Investor For personal use only Event Oct 2023 Todd Hunter – Group CEO 1 • NZX VIRTUAL INVESTOR EVENT - TURNERS AUTO GROUP
Slide 2: Disclaimer
Disclaimer Turners Automotive Group the (company) is solely responsible for the content of this document. This document is not an investment For personal use only statement or prospectus and does not constitute an offer of securities. This document or any other written or oral statements made by, or
Slide 3: We love cars
For personal use only We love cars 3 • NZX VIRTUAL INVESTOR EVENT - TURNERS AUTO GROUP
Slide 4: Overview of Turners Automotive Group
Overview of Turners Automotive Group NZX and ASX listed business with over 50 years of heritage 700+ kiwis employed and 4,500 shareholders FY23 47th largest For personal use only $59M revenue $15m profit company on NZX by 11% of auto loan market free float market cap 9-10-23 FY23 FY23 $44M revenue $
Slide 5: Turners has built a strong and sustainable business with a proven track record
Turners has built a strong and sustainable business with a proven track record… For personal use only Total NPBT/NPAT over 3 year period ($M) Aggregate dividends paid over 3 year period (cps) 140.0 70.0 66 126 120.0 60.0 100.0 91 50.0 47 89 80.0 40.0 38 65 67 60.0 51 30.0 40.0 20.0 20.0 10.0 8 3 0 -
Slide 6: On track to better FY23 and achieve record result in FY24
On track to better FY23 and achieve record result in FY24 For personal use only Net profit before tax 50.0 CAGR 11% 45.5 Updated guidance issued this week 45.0 43.1 40.0 • HY24 net profit after tax will be at least $25M 37.4 35.0 • After a strong H1 comfortable to reaffirm that our 31.1 FY24 result
Slide 7: We operate to a simple formula
For personal use only We operate to a simple formula 7 • NZX VIRTUAL INVESTOR EVENT - TURNERS AUTO GROUP
Slide 8: Quality environment + quality customer experiences = outcomes for shareholders
For personal use only Quality Quality Quality outcomes environment + customer = for our for our people experiences shareholders 8 • NZX VIRTUAL INVESTOR EVENT - TURNERS AUTO GROUP
Slide 9: Our strong culture is a key advantage for our business
Our strong culture is a key advantage for our business Peakon Employee Engagement Scores For personal use only How likely is it that you would recommend Turners Automotive Group as a place to work? 9.5 • Turners rank in the top 5% of consumer businesses globally using the Peakon survey tool 9.0 • Ha
Slide 10: We're building our ownership of the used car category
For personal use only We're building our “ownership” of the used car category. Most trusted winner for 4th year in a row. 10 • NZX VIRTUAL INVESTOR EVENT - TURNERS AUTO GROUP
Slide 11: Turners has been growing dividends for almost a decade
Turners has been growing dividends for almost a decade For personal use only Dividend per Share ($) 0.30 • Proven track record of delivering. 0.25 COVID impacted year 0.24 • Dividend payout ratio is 60-70% of NPAT. 0.23 0.23 0.20 0.20 • Quarterly dividend payments 0.17 • Q1 dividend declared at 6.0
Slide 12: Segment Overview
3 Segment Overview For personal use only 12 • NZX VIRTUAL INVESTOR EVENT - TURNERS AUTO GROUP
Slide 13: Go to www.turnersautogroup.co.nz Investor Centre
For personal use only Go to www.turnersautogroup.co.nz Investor Centre / Results and Presentations Our Annual Shareholder Meeting presentation has a lot of good detailed information in here on the business divisions 13 • NZX VIRTUAL INVESTOR EVENT - TURNERS AUTO GROUP
Slide 14: Auto Retail division
Auto Retail division Branch expansion and retail optimisation key areas of focus For personal use only Turners Retail Quarterly Market Share 10.00% • Market share has continued to grow 9.00% Tina campaign • Local vehicle sourcing strategy continues to deliver 8.00% started • New branches delivering
Slide 15: For personal use only
For personal use only 15 • NZX VIRTUAL INVESTOR EVENT - TURNERS AUTO GROUP
Slide 16: Retail expansion pipeline
Retail expansion pipeline Ready for expansion. We have a balance of committed sites and future opportunities Committed development pipeline For personal use only Expected “Opportunities” pipeline additional Location Size Timing profit contribution New locations • Takanini/Drury Timaru 4,000m2 Q4 FY
Slide 17: Timaru: New territory open Nov-23
Timaru: New territory open Nov-23 For personal use only 17 • NZX VIRTUAL INVESTOR EVENT - TURNERS AUTO GROUP
Slide 18: Napier: Bigger better branch open Nov-23
Napier: Bigger better branch open Nov-23 For personal use only 18 • NZX VIRTUAL INVESTOR EVENT - TURNERS AUTO GROUP
Slide 19: Christchurch: becomes from mid-2025 to 2026
Christchurch: 1 becomes 3 from mid-2025 to 2026 For personal use only Wairakei Moorhouse Hornby 19 • NZX VIRTUAL INVESTOR EVENT - TURNERS AUTO GROUP
Slide 20: Finance division
Finance division Improving credit quality and maintaining margin key focus areas given environment For personal use only Average Credit Score Average Centrix • Quality and margin have been higher priorities. auto loan portfolio score • Our borrower “quality” metrics continue to improve Average consu
Slide 21: Quality lending strategy resulting in arrears well below industry benchmarks
Quality lending strategy resulting in arrears at well below industry benchmarks Consumer arrears For personal use only 8.0% Centrix Auto 7.0% Loan Portfolio 6.0% 6.0% 5.0% Oxford 4.0% Finance 3.1% 3.0% 2.0% 2.0% 1.0% 0.0% Jul-20 Jul-21 Jul-22 Jun-23 Jul-23 Apr-20 May-20 Jun-20 Nov-20 Apr-21 May-21 J
Slide 22: Insurance division
Insurance division Growing market share and focus on digital distribution For personal use only Mechanical Breakdown Insurance Loss Ratio Performance • Market share gains continuing to provide robust policy sales despite challenging market conditions. 66% • Risk pricing continues to be refined • Dig
Slide 23: Outlook
4 Outlook For personal use only 23 • NZX VIRTUAL INVESTOR EVENT - TURNERS AUTO GROUP
Slide 24: What's next
What’s next… For personal use only • Business has never been stronger, building genuine ownership of the used car category in NZ. • On track to achieve our 10% market share goal in Auto Retail in the near term… • Still so much opportunity in the used car space, 20% of registered cars in NZ 20+ years
Slide 25: We love cars
For personal use only We love cars 25 • NZX VIRTUAL INVESTOR EVENT - TURNERS AUTO GROUP
Slide 26: Contact
Contact Todd Hunter For personal use only 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 26 • NZX VIRTUAL INVESTOR EVENT - TURNERS AUTO GROUP
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