Turners 2021 Annual Meeting Update (TRA)

Dear Shareholder
The Turners Limited Annual Report for the year ended 31 March 2022 is now available. We invite you to
read this on our website at https://www.turnersautogroup.co.nz/Investor+Centre/Investor+Reports.html
The FY22 year delivered another record result for our business, with Turners not only demonstrating
earnings resilience but strong growth credentials as well. We are confident we have found the right
formula and that our actions will deliver continuing growth over the next three years.
Our growing returns are driving much improved outcomes for our shareholders, and we were pleased to
deliver record dividends of 23.0 cents per share in FY22.
With another record year of results, a stronger and de-risked business, a clear strategy and a near-term
economic outlook that is looking more uncertain, our business has never been in better shape. We are
ready for whatever comes next.
Our Three Year Plan
Our three-year plan centres on organic growth and is focused on four
key areas, comprising both physical and digital investments.
1. Retail Optimisation and Expansion across people, property and
processes.
2. Vehicle purchasing decision-making using data and tools to help
identify new sourcing opportunities, and leveraging our brand
strength to generate local sourcing leads.
3. Margin management and Premium lending within Finance.
4. Continued investment in digital and improving our omni-channel
customer experience which allows customers to engage with us
however, whenever and wherever they want.
Looking beyond FY23, we remain very confident about further growth
over the medium to longer term. We have updated our three-year rolling
target to grow to more than $50m of underlying profit before tax by
FY25.
On behalf of the Board and management, we would like to thank our
shareholders for your continued support.
FY22 AT A GLANCE
FY22 FINANCIAL SNAPSHOT
■ Record earnings from
divisions operating in
the used car market
(Auto Retail, Finance and
Insurance)
■ Record NPBT up 15% to
$43.1m
■ NPAT up 16% to $31.3m
■ EBIT up 11% to $47.7m1
■ Underlying NPBT up 29%
to $44.1m2
■ Revenue up 14% to
$344.5m
■ Dividends up 15% to 23.0
cents per share
■ Earnings per share up 16%
to 36.4 cents per share
■ Unrealised property gains
per share 22 cents per
share (measured from
carrying value)
More information on Turners
FY22 financial results can be
read in Turners FY22 Annual
Report.
■ Strong consumer demand despite continued disruption
from COVID-19 lockdowns and Omicron outbreak
■ Employee engagement at an all-time high (top 5% of
companies using Peakon tool); continued to increase at
a time where retention and recruitment have been under
significant pressure
■ Auto Retail: Market share continued to grow in Auto Retail
with a good pipeline of new branches
■ Finance: Quality lending strategy resulting in arrears at
record lows
■ Insurance: Strong new policy sales with improving claims
ratios
■ Credit Management: Debt load
returning slowly but environment
should be more productive in FY23
■ Macro headwinds (inflation and
interest rates) starting to
impact… speed of change
biggest challenge
1 Earnings Before Interest and Tax (EBIT) adjusted for interest expense in Finance (non-IFRS measure).
2 Underlying Net Profit Before Tax (NPBT) is a non-GAAP measure and excludes one-off or non-cash costs including property sales
and acquisitions, covid-related support and remuneration sacrifice, review and restructure costs and profit normalisation (Turners’
estimated profit had the business not been shut during lockdown). In FY22, these totalled $1.0 million. A reconciliation can be viewed
in Turners FY22 Annual Report.

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DYOR

i hold TRA

be careful it is a rarely traded share in Australia (on the ASX )