Turners Auctions 2006 Full Year Results Summary

Turners Auctions Ltd 2006 Full Year Results Summary

Turners Auctions today announced its full year net profit after tax and minority interests of $3.2m,
down 37% on the same time last year.

The vehicle and finance market conditions have been a major contributor to the decline…

• The lowest levels of used imported vehicles being bought and sold for over 5 years. (New
Registration of Ex Overseas Vehicles first half down 13%, second half down 26%).

• Intensifying global competition for used vehicles from Japan.

• Temporary reduction in NZ new vehicles from lease companies.

• Tight consumer finance has hit dealer customers hard. (Dealer to Public sales down
4.27% v 2005.)
• Significant reduction in dealer numbers and a tighter vehicle finance market.

There have been some specific issues within the business which have made 2006 a challenging
year…

• The loss of a major supplier to auctions.

• TUA unit sales down 10%.

• Finalising the exit of North American investments.

• Turners Fleet margins squeezed.

• Adopted a more cautious credit policy in response to other finance company failures.

However looking toward 2007 there are initiatives and factors giving us a more confident
outlook…
• Successful introduction of Turners Live resulting in 10% of all Turners vehicle sales now
online. We expect continued growth in this area.

• New valuation services to customers – 86,000 price checks in 8 weeks and 20% increase
in unit sales over campaign period.

• Increase in online community – approx 90,000 unique visitors per month. Fast
approaching the second highest ranking vehicle website.

• Retention of key customers – New supplier agreements with GSB for govt cars and IAG
for damaged vehicles.

• Success with “on customer site” sales.

• Supply chain logistics efficiencies – new shipping contracts and centralised fleet buying.

The directors declared a fully imputed net dividend of 3.5 cents per share, payable on 20 April
2007.

Results summary:

• Operating Revenues $74.3 million, down 7%

• Group Net Earnings after tax $3.2 million, down 37%

• Total Group Assets $40.4 million, down 5%

ENDS

See...
Investor Briefing (PDF)
Appendix 1 (PDF)
Appendix 7 (PDF)

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