Turners Automotive Group Ltd · NZX:TRA

Turners Automotive — Investor Presentation (December 2020)

20 slides from Turners Automotive's investor presentation, Dec 2, 2020

  1. Slide 1: Advisor Evening December 2020

    For personal use only December 2020 Advisor

  2. Slide 2: Agenda

    Agenda For personal use only 1. HY21 Results 2. FY21 Update and Outlook 2 • ADVISOR EVENING

  3. Slide 3: 1) HY21 Results

    For personal use only 1) HY21 Results 3 ••ADVISOR EVENING

  4. Slide 4: HY21 Results snapshot

    HY21 Results snapshot For personal use only Revenue $147.5m -14% Net profit Before Tax 35 Net Profit Before Tax 30 $18.7m +26% 25 Millions 20 2H Underlying Net Profit Before Tax 15 1H 10 $13.1m -11% 5 Q2 Dividend 4.0 cps 0 FY16 FY17 FY18 FY19 FY20 FY21 Projected FY Div 17.0cps 4 • ADVISOR EVENING

  5. Slide 5: Dividend Payments and Policy

    Dividend Payments and Policy For personal use only Earnings and Dividend per Share (Cents) 18.0 16.0 17.0 17.0 14.0 15.5 14.5 14.0 12.0 13.0 10.0 10.0 8.0 6.0 4.0 8.0 2.0 0.0 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Projected Dividends fully imputed from FY17 on 5 • ADVISOR EVENING

  6. Slide 6: Automotive retail

    Automotive retail For personal use only Revenue 96.1m -17%, Segment Profit $7.8m +6% Auto Retail Operating Profit Excl Wage Subsidy (% change on pcp) 100% 0% -100% -200% -300% -400% -500% -600% -700% Jan Feb Mar Apr May Jun Jul Aug Sep Oct 6 • ADVISOR EVENING

  7. Slide 7: Finance

    Finance Revenue $23.2m +2%, Segment Profit $7.6m +18% For personal use only Premium Risk Tier % of Consumer Lending 60% 50% 40% 30% 20% 10% 0% 7 • ADVISOR EVENING

  8. Slide 8: Finance: Improving Customer Credit Scores

    Finance Revenue $23.2m +2%, Segment Profit $7.6m +18% For personal use only Improving Customer Credit Scores 650 Average consumer Equifax 600 550 credit score 500 450 400 350 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 1H21 Oxford Finance 8 • ADVISOR EVENING

  9. Slide 9: Insurance

    Insurance For personal use only Revenue $21.1m -5%, Segment Profit $4.5m +74% Gross Written Premium FY21 v FY20 ($m) 60% 40% 20% 0% -20% -40% -60% -80% -100% Jan Feb Mar Apr May Jun Jul Aug Sep Oct 9 • ADVISOR EVENING

  10. Slide 10: Credit management

    Credit management For personal use only Revenue $7.0m -29% Segment Profit $3.0m -17% Debt Collected HY20 to HY21 ($m) 10 • ADVISOR EVENING

  11. Slide 11: 2) FY21 Update + Outlook

    For personal use only 2) FY21 Update + Outlook 11 • ADVISOR EVENING

  12. Slide 12: Building quality: Optimisation of Auto Retail

    Building quality … For personal use only #1 Optimisation of Auto Retail 1.Property 2.Sourcing 3.Customer experience 12 • ADVISOR EVENING

  13. Slide 13: Building quality: Risk pricing in Finance

    Building quality … For personal use only #2 Risk pricing in Finance 13 • ADVISOR EVENING

  14. Slide 14: Building quality: Diversification & Resilience

    Building quality … For personal use only #3 Diversification & Resilience 14 • ADVISOR EVENING

  15. Slide 15: NZ Used Car Market

    Building quality … For personal use only NZ Used Car Market (change of ownerships) 140,000 120,000 NZ used car market 100,000 80,000 (6%) April to Oct 60,000 40,000 NZ new car market 20,000 0 (28%) April to Oct Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 2020 15 • ADVISOR EVENING

  16. Slide 16: Building quality: Digital and data

    Building quality … For personal use only #4 Digital and data 16 • ADVISOR EVENING

  17. Slide 17: Building quality: Strong and sustainable yield

    Building quality … For personal use only #5 Strong and sustainable yield 17 • ADVISOR EVENING

  18. Slide 18: Quality of earnings and dividends

    Quality of earnings and dividends TRA has a dividend yield of 7.3% the NZX* For personal use only * Source: NZX; Based on rolling 12 month gross div (net div + imps) divided by share price at 20 November 2020. 18 • HY21 RESULTS PRESENTATION

  19. Slide 19: FY21 outlook

    FY21 outlook For personal use only • FY21 NPBT guidance: now expected to be towards the upper end of prior guidance of $28m to $31m • Indicative FY21 dividend implied of 17.0 cps (fully imputed, based on midpoint of range, and policy of 60-70% NPAT payout) 19 • ADVISOR EVENING

  20. Slide 20: Questions

    For personal use only Questions 20 • HY21 RESULTS PRESENTATION

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