Strong 1/2 year results sets positive growth expectations

26th February 2014

MEDIA | NZX RELEASE

TOURISM HOLDINGS LIMITED (thl)

FINANCIAL RESULTS FOR SIX MONTHS ENDED 31 DECEMBER 2013

Strong half year results sets positive expectations for growth

HIGHLIGHTS:

- Operating Profit Before Financing Costs and Tax (EBIT) of $7.2M up $1.9M on the prior corresponding period (pcp)

- Net Profit After Tax of $2.5M versus a loss of $(0.5M) for pcp

- Interim dividend of 5 cents per share declared versus 2 cents for pcp up 150%

- Net Debt decreased to $97M down $37M on the pcp

- FY14 year end NPAT forecast of $10.5M up 175% on previous year actual result of $3.8M

- Strategic financial goals set at the Annual Meeting are well on track

thl today released an interim result well ahead of the previous year’s performance setting a strong base for a dramatically improved FY14 result.

Chairman of thl Mr Rob Campbell said: “We have publicly set some clear financial goals for the business and this result keeps us ahead of that plan and reinforces the commitments we have made to all shareholders.”

“We are now in a position to forecast a FY14 year end Net Profit after Tax of $10.5M which will be an increase of 175% on the prior year. The business is well on track with its transformation and a decisive focus on achieving appropriate returns for shareholders. The 5cps dividend should also be seen by all as a positive indication of our progress and commitment to those targets.”

“thl has now positioned itself to protect recent gains with discipline and is creating a plan for growth. As a board we are collectively focussed on both of these elements.”

thl Chief Executive Officer Mr Grant Webster said: “All parts of the business have growth planned for the FY14 year and are performing in line with those plans. Significantly, the approach to rectifying the Australian result is working and we remain confident in achieving an appropriate return on capital over the next 18 months.” thl – Financial Results Six Months Ended 31 December 2013 Page 2 of 9

Mr Webster also said: “We are also very pleased with the net debt position of $97M at December. Whilst a portion of the decrease against guidance is timing, we can also now confidently forecast a net debt figure for June 2014 of $95M, a drop of 40% since the New Zealand rentals merger in November 2012. This forecast net debt figure is after the payment of $5.6M to shareholders through the interim dividend to be paid in April 2014.”

Revenue for the half of $112M represented an increase of 4% on the pcp. Operating Profit before financing, joint venture earnings and tax (EBIT) of $7.2M was an increase of $1.9M on the pcp. All businesses performed in line with expectations.

Read full press release here:

thl__Media__NZX_Release__thl_financial_results_six_months_ended_31Dec13.pdf

ENDS

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