Turners Automotive Group Ltd · NZX:TRA
Turners Automotive — HY18 Earnings Presentation
19 slides from Turners Automotive's earnings presentation, Dec 13, 2017
Slide 1: Interim Results Presentation
For personal use only Interim Results Presentation For six months ending 30 September 2017 Todd Hunter – Chief Executive Officer Aaron Saunders – Chief Financial Officer
Slide 2: HY18 Highlights and Key Events
For personal use only HY18 HIGHLIGHTS AND KEY EVENTS • Autosure and Buy Right Cars both successfully integrated into the group and contributed full six months of earnings • All divisions delivered improvements in revenue and operating profit • ASX dual listing completed • Appointed Greg Hedgepeth as
Slide 3: HY Results Snapshot
For personal use only HY RESULTS SNAPSHOT Continuing growth in revenue and profit REVENUE 300 250 Revenue $163.8m, +44% 200 Millions 150 2H Net Profit Before Tax $14.2m, +21% 100 1H 50 Net Profit After Tax $10.0m, +18% 0 FY15 FY16 FY17 FY18 Shareholders’ Equity $200.7m as at 30 Sep 17 NET PROFIT AFT
Slide 4: HY16: HY17 Revenue Bridge
For personal use only HY16: HY17 REVENUE BRIDGE $163.8m • Organic growth underpinned by strong used car sales and loan origination across the market $113.9m • Improvement in retail “end-user” sales in Turners Cars driving growth in finance and fleet margins (fixed price sales up 20% YoY) • Continued
Slide 5: HY16: HY17 Operating Profit Bridge
For personal use only HY16: HY17 OPERATING PROFIT BRIDGE • Organic growth of 14% excluding Buy Right Cars and Autosure acquisition • Turners Group additional end users sales and $14.2m growth in Trucks and Machinery $11.8m • Finance result improvement due to increase in ledger, provisions have incre
Slide 6: Balance Sheet
For personal use only BALANCE SHEET $000s HY18 HY17 Cash and cash equivalents 69,472 14,903 • Increase in cash balances due to transfer of Finance Receivables 269,229 176,052 Autosure Insurance liabilities on 31 March 2017 Inventory 42,143 44,028 • Growth in Finance Receivables and Property, Plant a
Slide 7: Funding Mix
For personal use only FUNDING MIX HY18 $m % of Total HY17 $m % of Total FY17 Borrowings by Source TOTAL ASSETS 626 433 MTF Bank Equity 201 32% 151 35% Bonds Convertible bonds 26 4% 26 6% Securitisation Funding (BNZ) 114 18% - Bank Funding [Corporate BNZ & Securitisation 112 18% 126 29% ASB] MTF Fina
Slide 8: Operating Environment
For personal use only OPERATING ENVIRONMENT • Used vehicle market continuing to grow: o Used cars up 1% YOY o Used trucks up 5% YOY o Damaged and end of life up 10% YOY • 12% increase (14,000 units) in number of used import cars coming into NZ Sept YTD • New car registrations (passenger and light co
Slide 9: Divisional Results
For personal use only DIVISIONAL RESULTS $M REVENUE 180 160 140 120 100 Automotive Retail 80 Finance and Insurance 60 Debt Management 40 20 0 HY16 HY17 HY18 $M SECTOR OPERATING PROFIT 25 20 15 Automotive Retail 10 Finance and Insurance Debt Management 5 0 HY16 HY17 HY18 HY18 Interim Results Presenta
Slide 10: Automotive Retail
AUTOMOTIVE RETAIL For personal use only Revenue $113.5m +32%, Op Profit $8.8m +27% • Organic revenue and profit growth (excluding Buy Right Cars) SALES BY CUSTOMER TYPE of 12% and 19% respectively 80% • Focus on higher margin sales helping to offset price competition: Sales to End Users Sales to Who
Slide 11: Finance
FINANCE For personal use only Revenue 17.8m +39%, Op Profit $5.5m +12% FINANCE RECEIVABLES 300 250 • Finance receivables growth has continued, up 30% to $269.2m from March 2017 200 $Millions • Continued enhancements of online loan approval platform AutoApp 150 • Non-recourse lending product for MTF
Slide 12: Insurance
INSURANCE For personal use only Revenue $22.4m +345%, Op Profit $2.6m (HY17: $0.1m) • Continuing innovation – dealer loyalty scheme, EV breakdown cover, refreshed loan repayment insurance products • Continue to build claims reserves over and above actual losses, in conjunction with close monitoring
Slide 13: Debt Management
For personal use only DEBT MANAGEMENT Revenue $10.2m +4%, Op Profit $3.4m (HY17: $3.4m) • Business continues to perform well, remains highly cash generative • Continue to increase debt load from key corporate accounts at expense of competitors • Strong Terms of Trade product sales in both NZ and Aus
Slide 14: Our Strategy Is Focused on Growth
For personal use only OUR STRATEGY IS FOCUSED ON GROWTH ORGANIC GROWTH: Identify opportunities to grow each business: More customers, more products and services, more channels, better technology ORGANIC GROUP GROUP INTEGRATION: Cross selling product across GROWTH INTEGRATION the group, and building
Slide 15: 2H18 Outlook
For personal use only 2H18 OUTLOOK • Organic growth through innovation • Expand physical footprint through extension and development of new sites for both Cars and Trucks & Machinery • Develop bundled approach to finance and insurance • Consolidation of finance entities and insurance entities into s
Slide 16: Contact
16 For personal use only Contact: Todd Hunter CEO Turners Limited T: 64 21 722 818 E: todd.hunter@turners.co.nz HY18 Interim Results Presentation – Australia Roadshow 16
Slide 17: Appendix – Divisional Performance
For personal use only APPENDIX 1 – DIVISIONAL PERFORMANCE Financial performance HY18 (vs pcp) HY18 HY18 (excl. acquisitions)1 NZ$m % pcp2 NZ$m % pcp2 Operating revenue Automotive 113.5 32% 84.5 12% Finance 17.8 39% 17.8 39% Insurance 22.4 345% 6.2 23% Debt management 10.2 4% 10.2 4% Corporate 0.0 -9
Slide 18: Appendix - The NZ Used Car Economy
For personal use only APPENDIX 2 - THE NZ USED CAR ECONOMY 3.7m Light vehicles in the NZ vehicle fleet 7.0% pa CAGR1 Dealer-to-public sales growth over the past 5 years 14yrs Is the average age of used vehicle in NZ 153,000 657 19.2 and 18.7 used cars were imported into NZ in 2016 Cars owned per 1,0
Slide 19: Disclaimer
For personal use only 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
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