Tourism : 28Feb2020 - thl FY20 Interim Results Presentation

FY20

INTERIMF Y 1 9 RESULTS

FU L L Y E A R RE S U L TS

PRESENTATION

PRE S E N TA TION

our view today

goes on forever

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. The information contained in this presentation should be read in conjunction with thl's latest financial statements, which are available at: www.thlonline.com.

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General notes

• All financials are in NZ dollars unless stated otherwise (throughout presentation).
• All comparisons are against prior corresponding period.
• The average NZD:AUD cross-rate (average of the 6 month rates) for H1 FY20 was 0.9433 (H1 FY19 - 0.9251).
• The average NZD:USD cross-rate (average of the 6 month rates) for H1 FY20 was 0.6453 (H1 FY19 - 0.6705).
• 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. The lease liability as a result of IFRS 16 is not considered to be part of 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.
• The balance sheet is converted at the closing rate as at 31 December 2019. The USD cross-rate used was 0.6735 (H1 FY19 - 0.6713); the AUD cross-rate used was 0.9617 (H1 FY19 - 0.9520) and the GBP cross-rate used was 0.5136 (H1 FY19 - 0.5290).
• Our forecast FY20 NPAT of around $24M assumed a NZD:AUD cross-rate of 0.93 and NZD:USD cross- rate of 0.66.

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IFRS 16 | Leases

thl's H1 FY20 results include changes in financial disclosures resulting from the adoption of IFRS 16:

• Right-of-useassets ($68.8M as at 31 December 2019) and lease liabilities ($80.5M as at 31 December 2019) have been recognised on the thl balance sheet, grossing up total assets and total liabilities.
• Opening retained earnings as at 1 July 2019 has been adjusted downwards by $7.6M, net of tax.
• FY19 amounts in the financial statements remain as previously reported.
• The impact on thl's H1 FY20 income statement is a negative impact of $0.4M on NPAT, a positive impact of $1.5M on EBIT, and a positive impact of $5.1M on EBITDA. These have resulted from a change in lease expense classification from operating expenses of $5.1M to:
• • Financing costs of $2.0M;
  • Depreciation of $3.6M; and
  • Net NPAT impact of negative $0.4M.
• The impact on thl's H1 FY20 cash flow statement is that operating lease payments ($5.1M) have now been recognised as:
• • Interest expense ($2.0M) in operating activities; and
  • Lease liability principal repayment $3.1M in financing activities.
• thl's banking covenants are calculated on a frozen GAAP basis.

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Summary

• Net profit after tax of $13.1M - down on the prior period, largely driven by performance in the USA vehicle sales market and investment in Togo Group.
• Interim dividend of 10 cents per share declared, fully imputed. Cash dividend yield of 7.8%*.
• The global rentals businesses continue to perform well, delivering revenue growth in New Zealand and Australia and stable revenue in the USA.
• New Zealand and Australia have had solid performances in vehicle sales from both a volume and margin perspective.
• USA vehicle sales remain a key challenge and focus for the remainder of FY20.
• Future-Fitimplementation team well underway with benchmarking assessments against the FFB goals.
• Net debt of $181M as at 31 December 2019 - expected to be $135M to $145M at end of FY20 due to the lag of right sizing of fleet in the USA.
• Reviewing the nature of thl's future investment into Togo Group.
• FY20 NPAT expectation remains at around $24M**.

• Based on the closing share price on 26 February 2020 of $2.55 and assumption of 20cps total FY20 dividend.
• Based on the assumed cross-rates noted on page 4.

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Half year in review

As at 31 December 2019

REVENUE (RENTALS & SERVICES)

$148.4M

(H1 2019 - $144.3M)

NET PROFIT AFTER TAX (NPAT)

$13.1M

(H1 2019 - $17.5M)

1. 100% imputed in H1 2020; 50% imputed in H1 2019.
2. As at 31 December.
3. Represents thl's share of NPBT losses.

+3%

-25%

REVENUE (VEHICLE SALES)

$59.1M -6%

(H1 2019 - $62.9M)

OPERATING PROFIT BEFORE FINANCING COSTS AND TAX (EBIT)

$31.0M -11%

(H1 2019 - $34.7M)

NET DEBT2

$181M -20%

(H1 2019 - $226M)

INTERIM DIVIDEND1

10CPS -23%

(H1 2019 - 13CPS)

EBIT EXCLUDING IMPACT OF IFRS 16

$29.5M -15%

(H1 2019 - $34.7M)

INVESTMENT IN TOGO GROUP3

$7.3M

(H1 2019 - $5.4M)

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Financial highlights

• Revenue of $207.5M, up $0.2M.
• EBIT of $31.0M, down 11%.
• NPAT of $13.1M, down 25%.
• EBIT growth for the Rentals New Zealand and Rentals Australia businesses.
• Excluding the impact of IFRS 16, interest expense was down $0.4M as a result of lower debt across the half year.

NZD $M		Dec-19	Dec-18	VAR	%
Operating revenue		207.5	207.3	0.2	0%
Earnings before interest and	31.0	34.7	(3.7)	(11%)
tax	(1)
Operating profit before tax	(2)	18.7	25.0	(6.2)	(25%)
Profit after tax		13.1	17.5	(4.4)	(25%)

1. H1 FY20 includes a $1.5M benefit relating to the adoption of IFRS 16.
2. H1 FY20 includes a $0.5M expense relating to the adoption of IFRS 16.

					OPERATING PROFIT BEFORE TAX $M
	35.0				0.4
	30.0			0.4	(6.1)
	25.0							1.6	(1.1)
						(0.1)		(1.4)
NZ$m	20.0
15.0
		25.0
	10.0										18.7
	5.0
	-
		Profit Before Tax H1 FY19	Rentals NZ	Rentals AU	Rentals USA	Tourism Group	Group Services & Other	JV & Associates	Net Interest *	Profit Before Tax H1 FY20

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* Includes additional $2.0M expense relating to the adoption of IFRS 16.

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Balance sheet

• Net debt as at 31 December 2019 was $181M.
• The key factors impacting net debt in H1 FY20 were the $50M received from the thl rights offer, investment in Togo Group and new fleet capital expenditure.
• Our Net debt:EBITDA was 1.7x, down on the prior year primarily due to the equity raise completed in July 2019.
• We consider that our current Net debt:EBITDA ratio provides us with capacity for acquisitions and growth initiatives.
• Net debt at the end of FY20 is expected to be in the range of $135M to $145M, in line with our previous expectations.
• Our review of existing borrowing sources and target capital structure is underway and will be completed prior to year end.

Net debt

Net debt:EBITDA*

$181M 1.7x

Last year

Last year

$226M 2.0x

	250				Net debt				3.0
	200										2.5	Net
($M)NZD					226				2.0	debt:EBITDA
	150		1.9	2.0	1.9
	1.7				1.7
									1.5
	100	178	199				202	181	1.0	(x)
	50										0.5
	-										-
		Dec 17		Jun 18		Dec 18	Jun 19	Dec 19
				Net debt			LOC		Net debt: EBITDA

• Net debt:EBITDA is calculated using a 12 month EBITDA on a frozen GAAP basis. Net debt used for the calculation includes LOC and derivatives balance.

Note: Net debt and Net debt:EBITDA do not include lease liabilities relating to the adoption of IFRS 16.

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Dividend

• Interim dividend of 10cps, fully imputed.
• Cash dividend yield of 7.8%.*
• Total dividend paid is expected to be approximately $14.8M (compared to $16.1M in the pcp). Compared to the pcp, dividend per share reflects the greater number of shares on issue.
• We expect to continue to assess our dividend pay-out in FY20 excluding our investment in Togo Group.
• The interim dividend will not be eligible for the thl Dividend Reinvestment Plan (DRP).
• Record date: 4 May 2020.
• Payment date: 11 May 2020.

• Based on the closing share price on 26 February 2020 of $2.55 and assumption of 20cps total FY20 dividend.

Interim Dividend

10 cents

Fully imputed

Interim FY19 - 13 cents (50% imputed)

	14	14
10	11
				13		13
	10	10
9

FY16	FY17	FY18	FY19	FY20
			Interim		Final

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Togo Group

• Togo RV
• • App re-design released on 24 February with new user interface and additional features including 'RV Living'.
  • Further features expected by end of March 2020.
• Roadtrippers Plus
• • Over 20,000 new subscriptions during H1 FY20.
  • 37,000+ active Roadtrippers Plus subscribers as at February 2020.
  • Recent launch of 'Extraordinary Places' feature.
• Outdoria Group (46%)
• • CamperMate has approximately 6 million sessions each month over the summer period.
  • Freedom camping project underway in New Zealand, providing real- time capacity information on freedom campgrounds to CamperMate users.
  • Data sales to local governments/councils providing strong contribution to revenue.

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Technology investment

Togo Fleet

• The Togo Fleet product operations system was successfully launched within thl in October 2019.
• Product operations is delivering efficiencies including fleet scheduling, inventory management, vehicle collections and relocations.
• Togo Fleet scheduling operated effectively with booking cancellations in Australia due to bush fires.
• Further features to be incorporated by the end of FY20 include booking, and customer and agent management systems for New Zealand and Australia.

Togo Insights (Telematics)

• New generation in-vehicle tablets and telematics devices are being installed in all rental vehicles in New Zealand and Australia.
• Telematics units allowed us to locate and communicate with our rentals customers during the bush fire events in Australia.

Togo Group

• thl's share of NPBT losses in Togo Group in
  H1 FY20 was NZ$7.3M.
• FY20 investment in Togo Group is now expected to be US$10M (previously US$8.5M).
• The nature of thl's future investment into
  Togo Group is under review.

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Divisional Review

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Divisional EBIT

		6 Months to December
$M	FY20	FY19	VAR	VAR %
thl Rentals
New Zealand	7.5	7.0	0.4	6%
Australia	8.6	8.2	0.4	5%
USA	12.4	18.4	(6.1)	(33%)
Total Rentals	28.5	33.7	(5.2)	(15%)
Tourism Group	4.3	4.4	(0.1)	(3%)
Total operating divisions	32.8	38.1	(5.3)	(14%)
Group Support Services & Other	(1.8)	(3.4)	1.6	47%
Total EBIT	31.0	34.7	(3.7)	(11%)
Split
Australia	8.6	8.2	0.4	5%
USA	12.4	18.4	(6.1)	(33%)
NZ	10.0	8.1	1.9	23%
Total EBIT	31.0	34.7	(3.7)	(11%)
	Prior to IFRS	Impact of
	16	IFRS 16	H1 FY20
Australia	8.2	0.4	8.6
USA	11.8	0.6	12.4
NZ	9.6	0.4	10.0
Total EBIT	29.5	1.5	31.0

Revenue by Geography

H1 FY20

H1 FY19

38%	40%	40%	38%
	22%	22%
New Zealand Rentals & Sales	New Zealand Rentals & Sales
Australia		Australia
USA		USA
	EBIT before Group Services and Other*

H1 FY20	H1 FY19
13%	23%	12%	18%
		48%	22%
38%	26%
New Zealand Rentals & Sales	New Zealand Rentals & Sales
Australia		Australia
USA		USA
Tourism Group		Tourism Group

*In H1, the majority of EBIT relates to the USA business due to seasonality.

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New Zealand rentals

"Continued core growth"

• The New Zealand business has once again performed well and delivered year on year growth.
• EBIT of $7.5M, an increase of 6% on the pcp.
• Rental revenue growth of 5%, with both total booked days and yield up on the pcp.
• Vehicle sales revenue growth of 14%.
• A total of 311 vehicles sold (inclusive of non-fleet vehicles), compared to 270 in the pcp. Sales of minivan vehicles, which comprised the greatest shortfall in sales in FY19, have been positive in FY20 to date.
• Forward bookings for H2 FY20 are positive, with low single digit percentage growth expected.

Half Year
NZD $M	Dec-19	Dec-18	VAR	VAR %
Rental income	40.5	38.5	2.0	5%
Sale of goods	25.8	22.7	3.1	14%
Costs	(58.8)	(54.1)	(4.7)	(9%)
(1)	7.5	7.0	0.4	6%
EBIT

Vehicle Fleet

Units:	Dec-19	Dec-18	VAR	VAR %
Opening Fleet	2,332	2,083	249	12%
Fleet Sales(2)	(269)	(199)	70	35%
Fleet Purchases	570	677	(107)	(16%)
Closing Fleet	2,633	2,561	72	3%

1. EBIT excluding the impact from the adoption of IFRS 16 is $7.1M.
2. Exclude sales of non-fleet vehicles.

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Australia rentals

"Delivering growth in a competitive environment"

• EBIT result of AUD$8.2M, up $0.6M on the prior year - an increase of 7%.
• Rental revenue up 4% through growth in booked days, despite a small reduction in yield from increased competition.
• Vehicle sales revenue fell by 9% due to a shift in the mix of vehicles sold towards smaller RVs. Total vehicle sales contribution improved on the pcp due to growth in average sales margins on consistent vehicle sales volumes.
• Impact of Australian bush fires estimated to be ~NZ$1M.
• The second half of FY20 has been impacted by recent events. As a result, H2 FY20 rental revenue is expected to be below H2 FY19.

Half Year
NZD $M	Dec-19	Dec-18	VAR	VAR %
Rental income	37.7	37.0	0.7	2%
(1)	7.6	8.5	(0.9)	(11%)
Sale of goods
Costs	(36.7)	(37.3)	0.6	2%
(2)	8.6	8.2	0.4	5%
EBIT
AUD $M	Dec-19	Dec-18	VAR	VAR %
Rental income	35.6	34.2	1.4	4%
(1)	7.2	7.9	(0.7)	(9%)
Sale of goods
Costs	(34.6)	(34.5)	(0.1)	0%
(2)	8.2	7.6	0.6	7%
EBIT
Units:	Dec-19	Dec-18	VAR	%
Opening Fleet	1,641	1,539	102	7%
Fleet Sales(3)	(324)	(324)	-	-
Fleet Purchases	379	437	(58)	(13%)
Closing Fleet	1,696	1,652	44	3%

1. Excludes sales of buyback vehicles.
2. EBIT excluding the impact from the adoption of IFRS 16 is NZD $8.2M (AUD $7.8M).
3. Includes sales of buyback vehicles, but excludes sales of non-fleet vehicles.

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USA rentals

"Difficult vehicle sales conditions continue"

• Continued difficulty in the vehicle sales market has resulted in EBIT of US$8.0M (down 35% on the pcp), despite consistent performance in rental revenue.
• Rental revenue of US$33.9M was flat on the pcp in USD terms - but experienced growth of 4% (NZ$2.0M) in NZD terms due to favourable exchange rate fluctuations.
• Fleet size during upcoming peak season will be approximately 20% smaller due to right sizing of fleet. Focus for H2 FY20 and early FY21 is to maximise revenue through improved utilisation and yield on our smaller fleet size.
• Vehicle sales performance is covered in the next slide.

Half Year
NZD $M	Dec-19	Dec-18	VAR	%
Rental income	52.4	50.4	2.0	4%
Sale of goods	25.7	31.7	(6.1)	(19%)
Costs	(65.7)	(63.7)	(2.0)	(3%)
(1)	12.4	18.4	(6.1)	(33%)
EBIT
USD $M	Dec-19	Dec-18	VAR	%
Rental income	33.9	33.9	0.0	0%
Sale of goods	16.1	20.9	(4.8)	(23%)
Costs	(41.9)	(42.4)	0.5	1%
(1)	8.0	12.4	(4.3)	(35%)
EBIT
Vehicle Fleet
Units:			VAR	%
Dec-19	Dec-18
Opening Fleet	2,440	2,109	331	16%
Fleet Sales	(351)	(400)	(49)	(12%)
Fleet Purchases	3	-	3	-
Closing Fleet	2,092	1,709	383	22%

1. EBIT excluding the impact from the adoption of IFRS 16 is NZD $11.8M (USD $7.6M).

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Update on USA performance and review

USD	Q1FY20	Q1FY19	VAR	%
Motorhome fleet sales (units)	244	243	1	0%
Gain on sale of motorhome fleet after	0.9	1.7	(0.8)	(45%)
selling costs ($M)
Total average gain on sale after	3,872	7,021	(3,149)	(45%)
selling costs ($)

•	Despite 37% decline in average sales margin in H1
	FY20 on the pcp, there has been a small improvement
	in the second quarter of FY20 compared to the first
	quarter (US$4,748 vs. US$3,872).
•	This is partly a reflection of the channel and product

USD Motorhome fleet sales (units) Gain on sale of motorhome fleet after selling costs ($M) Total average gain on sale after selling costs ($)

Q2FY20	Q2FY19	VAR	%
107	157	(50)	(32%)
0.5	0.9	(0.4)	(46%)
4,748	5,939	(1,191)	(20%)

mix in Q2 compared to Q1, which had some large

wholesale transactions at lower margins.

• There has been some anecdotal evidence of

improvement in visitor numbers at recent RV shows,

Progress

The targeted changes to head count and roles have been

People

implemented.

Two branches have been closed. Further potential closures are being

Property

explored.

On track to achieve target of a reduction in funds employed of

Funds employed

US$20M by the end of FY20.

as well as improvement in dealer sentiment.

• Fleet depreciation in H1 FY20 approximately US$0.8M

greater than in the pcp, due to excess fleet held

across the period.

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Tourism

"Continued strong ROFE performance"

• The Tourism Group delivered an EBIT result of $4.3M - down 3% from $4.4M in the pcp.
• The Waitomo business EBIT was below the pcp. Total revenue declined due to a fall in passenger numbers.
• Kiwi Experience delivered an improvement in EBIT on the pcp despite a decline in revenue, due to good cost controls being put in place.
• New product lines of small group tours and snow tours in Kiwi Experience have launched.
• Some impact expected in H2 FY20 due to containment measures relating to COVID-19.

Half Year
NZD $M	Dec-19	Dec-18	VAR	%
Revenue	17.8	18.4	(0.7)	(4%)
Costs	(13.5)	(14.0)	0.5	4%
EBIT	4.3	4.4	(0.1)	(3%)

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Equity Investments

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Equity investments

• These part-owned businesses are not controlled by thl and are equity accounted. The results are not reported in Earnings Before Interest & Tax (EBIT), and are not included in our ROFE calculations.
• Action Manufacturing (50%)
• • NPBT of $1.4M a strong improvement on the prior year, up 151% ($0.9M).
  • The pcp included opening losses relating to the acquisition of Fairfax Industries.
  • Positive outlook for the remainder of FY20.
• Just go (49%)
• • NPAT down 28% on the pcp.
  • We believe uncertainty with Brexit impacted vehicle sales against plan.
  • Positive first six months in new location in Edinburgh, Scotland.
• Togo Group (50%)
• • thl's share of NPBT losses in Togo Group in H1 FY20 was NZ$7.3M - 34% higher than in the pcp.

Equity Investments
NZD $M	Dec-19	Dec-18	VAR	%
Action Manufacturing	1.4	0.6	0.9	151%
Just go	0.2	0.3	(0.1)	(28%)
Togo Group	(7.3)	(5.4)	(1.9)	(34%)
Total	(5.7)	(4.6)	(1.1)	(24%)

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Group support services and other

NZD $M	Dec-19	Dec-18	VAR	%
Revenue	-	-	-	-
Costs	(1.8)	(3.4)	1.6	47%
EBIT	(1.8)	(3.4)	1.6	47%

• Group support service costs of $1.8M, down 47% on the prior year.
• The variance is primarily attributable to the transaction costs incurred in the first half of FY19 relating to the discontinued sale of the Tourism businesses and other acquisition opportunities.

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Outlook

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FY20 capital expenditure

Gross Capital Expenditure ($M)

201	197
171
126	~133

FY16	FY17	FY18	FY19	FY20
	Core	Flex		Forecast

• FY20 gross capital expenditure is forecast at approximately $133M.
• Fleet purchases have been reduced in FY20 as we adjust fleet, release capital and generate a positive operating cash flow for the USA business.

Proceeds from Fleet Sales ($M)

	143	~129
112	121

81

FY16	FY17	FY18	FY19	FY20
	Core		Flex	Forecast

• Total fleet sales proceeds expected to be around $129M, ~6% up on prior year.

Net Capital Expenditure ($M)

76

58 58

46

				~4
FY16	FY17	FY18	FY19	FY20

Forecast

Net Capex

• Net capital expenditure is expected to be around $4M, due to the substantial reduction of capital expenditure in the USA.

• Approximately 55% is expected to be core expenditure and 45% flex expenditure.

Note: Fleet purchased/sold under buyback arrangements are not treated as additions/sales of fixed assets, but are treated as operating leases under IFRS reporting. For the purposes of the above, the purchases and sales values under buyback arrangements are included. The above also includes non-fleet capital expenditure, which has been categorised as core capital expenditure.

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Outlook

• On 5 February 2020 we announced that our expectations for FY20 NPAT were around NZ$24M, with the primary relevant factors being:
• • USA vehicle sales weakness;
  • The impact of bush fires in Australia;
  • Containment measures relating to COVID-19; and
  • Ongoing investment in Togo Group.
• Our expectation remains that thl's FY20 NPAT will be around $24M.*
• thl is reviewing the nature of its future investment into Togo Group.
• Net debt at the end of FY20 is expected to be $135M to $145M, in line with our previous expectations.
• Gross capital expenditure in FY20 is expected to be approximately $133M, with net capital expenditure of approximately $4M.
• The full FY20 dividend is expected to be at the upper end of our dividend policy of 75% - 90% of NPAT. We continue to exclude our investment in Togo Group for dividend purposes.
• We will provide a further update to the market prior to our FY20 annual results release in August.

• Based on the assumed cross-rates noted on page 4.

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Supporting Analysis

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Income statement summary

		6 Months to December
$M	FY20	FY19	VAR	VAR %
Sale of services	148.4	144.3	4.1	3%
Sale of goods	59.1	62.9	(3.9)	(6%)
Total revenue	207.5	207.3	0.2	0%
Costs	145.4	147.2	(1.9)	(1%)
EBITDA	62.1	60.0	2.1	3%
Depreciation & Amortisation	31.1	25.3	5.8	23%
EBIT	31.0	34.7	(3.7)	(11%)
Interest	(6.6)	(5.2)	(1.4)	(28%)
Share of Joint Ventures	(5.9)	(4.9)	(1.0)	(21%)
Share of Associates	0.2	0.3	(0.1)	(28%)
Profit before taxation	18.7	25.0	(6.2)	(25%)
Taxation	(5.7)	(7.5)	1.8	24%
Profit attributable to thl	13.1	17.5	(4.4)	(25%)
shareholders
Basic EPS (in cents)	8.9	14.0	*

* Note: the FY19 earnings per share calculations have been adjusted for the bonus element of the capital raise.

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Revenue

	6 months to December
$M	FY20	FY19	VAR	VAR %
thl Rentals - Rental Revenue
New Zealand	40.5	38.5	2.0	5%
Australia	37.7	37.0	0.7	2%
USA	52.4	50.4	2.0	4%
	130.6	125.9	4.7	4%
thl Rentals - Sale of Goods
New Zealand	25.8	22.7	3.1	14%
Australia	7.6	8.5	(0.9)	(11%)
USA	25.7	31.7	(6.1)	(19%)
	59.1	62.9	(3.9)	(6%)
Tourism Group	17.8	18.4	(0.7)	(4%)
Total Revenue	207.5	207.3	0.2	0%
Split
Australia	45.3	45.5	(0.2)	(0%)
USA	78.1	82.2	(4.1)	(5%)
NZ and other	84.1	79.6	4.5	6%
	207.5	207.3	0.2	0%
Revenue Split
Sale of Services	148.4	144.3	4.1	3%
Sale of Goods	59.1	62.9	(3.9)	(6%)
	207.5	207.3	0.2	0%

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Divisional summary

		31-Dec-19			31-Dec-18
$M	REVENUE	DIVISIONAL	AVE FUNDS	OPERATING	REVENUE	DIVISIONAL	AVE FUNDS	OPERATING
	EBIT	EMPLOYED	CASHFLOW*		EBIT	EMPLOYED	CASHFLOW*
Rentals New Zealand	66.3	7.5	155.4	(24.2)	61.2	7.0	155.7	(19.4)
Rentals Australia	45.3	8.6	83.0	(1.3)	45.5	8.2	84.0	(3.5)
Rentals USA	78.1	12.4	164.6	24.2	82.2	18.4	139.1	19.8
Tourism Group	17.8	4.3	20.6	5.8	18.4	4.4	22.0	6.6
Group Support Services/Other	-	(1.8)	4.4	(3.5)	-	(3.4)	1.8	(10.6)
thl 100% owned entities	207.5	31.0	428.0	0.9	207.3	34.7	402.5	(7.1)
Joint Ventures		(5.9)	56.9			(4.9)	53.4
Associates		0.2	4.7			0.3	4.2
Group Total	207.5	25.3	489.6	0.9	207.3	30.1	460.1	(7.1)

* Operating cash flow includes the sale and purchase of rental assets.

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EBITDA

EBITDA
	6 Months to December
$M	FY20	FY19	VAR	VAR %
EBIT	31.0	34.7	(3.7)	(11%)
Add back non-cash items:
Depreciation	30.6	24.7	5.8	24%
Amortisation	0.5	0.6	(0.0)	(8%)
EBITDA	62.1	60.0	2.1	3%

EBITDA excluding IFRS 16
	6 Months to December
$M	FY20	FY19	VAR	VAR %
EBIT	29.5	34.7	(5.2)	(15%)
Add back non-cash items:
Depreciation	26.9	24.7	2.2	9%
Amortisation	0.5	0.6	(0.0)	(8%)
EBITDA excluding IFRS 16	57.0	60.0	(3.0)	(5%)

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Balance sheet

		As at
$M	DEC 19	DEC 18	VAR
Equity	314.9	250.7	64.3
Non current liabilities	209.5	247.0	(37.5)
Current liabilities	65.2	75.1	(9.9)
Lease liabilities (IFRS 16)	80.5	0.0	80.5
Total source of funds	670.1	572.7	97.4
Intangible assets and goodwill	43.6	44.2	(0.6)
Investments in associates and joint ventures	58.1	56.8	1.3
Property, plant and equipment	403.6	379.1	24.5
Right-of-use assets (IFRS 16)	68.8	0.0	68.8
Non-current derivative financial instruments	0.0	0.7	(0.7)
Current assets	96.0	91.9	4.1
Total use of funds	670.1	572.7	97.4
Net debt position (exclude IFRS 16 lease liabilities)	181.0	225.6	(44.6)
Net tangible assets (NTA)	271.3	206.4	64.9
NTA per share	$1.83	$1.67
Book value of net assets per share	$2.13	$2.03
Debt / debt + equity ratio (net of Intangibles)	40%	52%
Equity ratio (net of Intangibles)	43%	39%
AUD exchange rate at period end	0.9617	0.9520
USD exchange rate at period end	0.6735	0.6713

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				Gain on vehicle sales and gross profit
	6 Months to December
$M	FY20	FY19	VAR	VAR %
Proceeds from sales of motorhome fleet	51.0	52.7	(1.7)	(3%)
Net book value of vehicles sold (incl writeoffs)	44.3	45.6	(1.3)	(3%)
Gain on sales of motorhome fleet before selling costs	6.7	7.1	(0.5)	(6%)
Vehicle sales costs (warranty only)	0.4	0.4	0.0	6%
Gain on sales of motorhome fleet after selling costs	6.3	6.7	(0.4)	(6%)
Gross profit on non-fleet vehicles, retail and accessory sales	1.5	1.8	(0.3)	(17%)
Reported gross profit	7.8	8.5	(0.7)	(8%)
Total average gain on sale ($000) after selling costs	8.2	8.9	(0.7)	(8%)
Fleet motorhomes sold (incl writeoffs, excl buybacks)
AU	144	147	(3)	(2%)
NZ	269	199	70	35%
US	351	400	(49)	(12%)
Total fleet motorhomes sold (units), excl. buybacks	764	746	18	2%
Flex fleet sales on buy-backs excluded from above	FY20	FY19
AU	180	177
	FY20	FY19
Total fleet sales	324	324
AU	269	199
NZ	351	400
US	944	923

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