Turners Automotive Group (TRA) Investor presentation summary

Financial performance and growth

• Achieved record earnings in FY24 with revenue of $417.0M (+7%), NPBT of $49.1M (+8%), and NPAT of $33.0M (+1.5%).

• Full-year dividend increased to 25.5 cps (+11%), with a gross yield of ~9% and a payout ratio of 60-70% of NPAT.

• Auto Retail division profits grew 27%, Insurance 15%, and Credit 9%, offsetting Finance division's -18% profit due to interest rate impacts.

• Set a new medium-term NPBT target of $65M for FY28, after achieving FY24 targets a year ahead.

• Five-year actual NPBT CAGR (FY19–FY24) was 11.1%; forecast 10-year CAGR (FY19–FY28) is 9.4%.

Strategic initiatives and investments

• Invested $3.35M for 50% of My Auto Shop, a vehicle repair platform, to access the $3B NZ auto repair market and cross-sell to 200,000+ customers.

• Acquired a 13% stake in Quashed, an insurance comparison platform, to enhance customer value and referral opportunities.

• Continued branch expansion with a committed pipeline, including new and expanded sites in Christchurch, Tauranga, and other regions.

• Owns 15 sites valued at $115M, supporting growth and operational efficiency.

Market and operational environment

• Regulatory changes led to a drop in used car market sales, but unit sales are tracking 7% ahead YTD.

• Dealer numbers have declined 18% since 2018, with scale increasingly important for success.

• Demand is shifting toward lower-priced vehicles as higher-value car demand moderates.

• Diversified revenue streams and annuity-based income provide resilience against economic headwinds.