Tourism : 26Feb2021 - thl FY21 Investor Presentation

FY21

FY19

I F N UT LL EY R E I A M RR R E E SU SL U T L STS

PRESENTATION

PRESENTATION

Reset for the future

26 February 2021

Disclaimer

This presentation contains forward-looking statements and projections. These reflect thl's current expectations, based on what it thinks are reasonable assumptions. The statements are based on information available to thl at the date of this presentation and are not guarantees or predictions of future performance. For any number of reasons, the future could be different and the assumptions on which the forward-looking statements and projections are based could be wrong. thl gives no warranty or representation as to its future financial performance or any future matter. Except as required by law or NZX listing rules, thl is not obliged to update this presentation after its release, even if things change materially.

This presentation has been prepared for publication in New Zealand and may not be released or distributed in the United States.

This presentation is for information purposes only and does not constitute financial advice. It is not an offer of securities, or a proposal or invitation to make any such offer, in the United States or any other jurisdiction, and may not be relied upon in connection with any purchase of thl securities. thl securities have not been, and will not be, registered under the US Securities Act of 1933 and may not be offered or sold in the

United States, except in transactions exempt from, or not subject to, the registration of the US Securities Act and applicable US State securities laws. Past performance information given in this presentation is given for illustrative purposes only and should not be relied upon as an indication of future performance.

This presentation may contain a number of non-GAAP financial measures. Because they are not defined by NZ GAAP or IFRS, thl's calculation of these measures may differ from similarly titled measures presented by other companies, and they should not be considered in isolation from, or construed as an alternative to, other financial measures determined in accordance with NZ GAAP.

This presentation does not take into account any specific investors objectives and does not constitute financial or investment advice. Investors are encouraged to make an independent assessment of thl and seek professional advice. The information contained in this presentation should be read in conjunction with thl's latest financial statements, which are available at:www.thlonline.com.

Important notes

• • All financials are in NZ dollars unless stated otherwise (throughout presentation).

• • All comparisons are against the prior corresponding period (pcp) unless otherwise stated.

• • The average NZD:AUD cross-rate (average of the six months rates) for H1 FY21 was 0.9329 (H1 FY20 - 0.9433).

• • The average NZD:USD cross-rate (average of the six months rates) for H1 FY21 was 0.6756 (H1 FY20 - 0.6453).

• • Return On Funds Employed (ROFE) is a non-GAAP measure that thl uses to measure performance of business units, and the Group, in relation to the financial resources utilised. ROFE is calculated as EBIT divided by average monthly net funds employed. Net funds employed are measured as total assets, less non-interest bearing liabilities and cash on hand. Lease liabilities resulting from IFRS 16 are not considered in determining funds employed. Accordingly, the interest expense arising from IFRS 16 is also deducted from EBIT for the purposes of ROFE. The calculation is done in NZ dollars.

• • Net debt refers to bank borrowings less cash and cash equivalents.

• • References in this presentation to international travel or tourism (or similar) includes reference to an Australasian bubble, unless stated otherwise.

• • The balance sheet is converted at the closing rate as at 31 December 2020. The USD cross-rate used was 0.7227 (H1 FY20 - 0.6735); the AUD cross-rate used was 0.9384 (H1 FY20 - 0.9617) and the GBP cross-rate used was 0.5297 (H1 FY20 - 0.5136).

• • H1 FY21 includes a non-recurring accounting gain of $1.2M (inclusive of tax) as a result of termination of the lease for the Mangere branch.

• • H2 FY20 includes the following non-recurring items:

  • • the partial Togo exit undertaken in March 2020 which resulted in a one-off gain of $9.3M including tax and foreign exchange benefits;

  • • a tax benefit of $1.1M in the USA; and

  • • the write-off of $3.1M of goodwill attributed to Kiwi Experience.

• • The depreciation expense and interest expense recognised in H1 FY21 in relation to IFRS 16 Leases is $3.9M and $1.7M, respectively. The actual lease payments during the period were $5.4M.

Summary

• • Net debt of $22M as at 31 December 2020, reflecting a reduction of approximately $106M across H1 FY21 and $175M since 24 March 2020.

• • Balance sheet strength with net tangible assets at 31 December 2020 of approximately $266M, and $312M including intangible assets.

• • We remain committed to becoming a Future-Fit Business.

• • An 89% increase in the number of fleet sold and 132% increase in global vehicle sales revenue on the pcp.

• • EBIT of $16.6M in the USA business, up 34% on the pcp.

• • Statutory net loss after tax of $1.8M and underlying net loss after tax of $3M, down on a statutory/underlying profit of $13.1M in the pcp.

• • Total revenue of $205.8M, down 1% on the pcp, driven by the growth in vehicle sales revenue.

• • Global rental revenue of $64.8M, down 50% on the pcp.

• • Entry into agreement to acquire the remaining 50% interest in Action Manufacturing from joint venture partner for $9M, payable in $7.5M of thl shares being issued to Alpine Bird Manufacturing, with the remaining $1.5M paid in cash.

• • Updated plan for thl digital is regionally focused, looks to build integration within the digital portfolio and create efficiencies. This is expected to support EBIT growth by increasing engagement across the RV owner lifecycle and enabling growth in core business areas of sales, servicing, retail and peer-to-peer.

• • Given the uncertainty and significance of the Easter and school holiday period for New Zealand and Australia, and the spring/early summer season in the USA, it remains difficult to provide guidance for FY21. However, our expectations remain for a full year FY21 loss as disclosed in our most recent market update. 1

1 'FY21 Market Update' released on 23 December 2020.