TURNERS ACQUIRES AUTOSURE INSURANCE BUSINESS

21 November 2016 Company Announcement TURNERS ACQUIRES AUTOSURE INSURANCE BUSINESS Enters into a corporate partnership with Suncorp New Zealand Turners Limited (NZX : TNR) today announced it has reached agreement to purchase the Autosure business including the Autosure brand, mechanical breakdown and payment protection insurance portfolios. Auckland based Autosure has been market leader in all areas of motor insurance under Suncorp New Zealand's ownership over the last 12 years. Autosure distributes through approximately 750 dealer agencies throughout New Zealand. Turners will pay a total purchase price consideration of $34 million in cash. Settlement will occur on 1 December 2016. While the sale and purchase is unconditional, the transfer of in-force portfolios by 31 March 2017 is subject to regulatory approval from the Reserve Bank of New Zealand. Turners Limited CEO, Todd Hunter said the acquisition of Autosure will be transformational for Turner's existing insurance business. "Autosure will be run as a stand-alone business and all current management and staff will be retained. We expect Autosure will contribute earnings before interest, tax, depreciation and amortisation of around $5.5 million in the first full year following transfer of the in-force portfolios. "Additional synergies are expected to arise for the Turners group from utilisation of Autosure's repairer network by our existing insurance business and from cross selling of insurance and finance to an extended dealer network and customer base. We believe we can deliver significant additional opportunities to the current dealer network through the acquisition of the Autosure business." Turners has also entered into a new corporate partnership with Suncorp New Zealand. Under the partnership Turners will sell private motor vehicle insurance under the Autosure, Mainstream and other Turners controlled brands, all underwritten by Suncorp New Zealand's intermediated general insurance provider, Vero. Suncorp New Zealand CEO, Paul Smeaton, said he was excited about the opportunity to partner with Turners in a move that delivers on Suncorp New Zealand's growth strategy. "Turners is New Zealand's largest seller of cars, trucks and machinery, so it makes perfect sense for Suncorp, a leading general and insurance provider, to go into partnership with them. Customers will benefit from Vero's market leading capabilities including expert claims support. Turners Limited Chairman, Grant Baker, said the purchase of Autosure completely aligns with our strategy of building on organic growth with acquisitions of reputable businesses and brands that build capability and scale in the integrated automotive financial services market. "With sustainable earnings expected from both Autosure and the recently acquired Buy Right Cars, we anticipate group earnings will lift significantly for the financial year to 31 March 2018. Approximately 70% of the Autosure acquisition will be funded from our recent Bond conversion and share placement capital raising. Turners remains in a strong financial position to continue to invest in organic growth initiatives and evaluate further M & A opportunities". ENDS For further information, please contact; Todd Hunter Chief Executive Officer Turners Limited Tel: 09 580 9358 Mob: 021 722 818 Grant Baker Chairman Turners Limited Mob: 021 729 800 End CA:00293037 For:TNR Type:ASSET Time:2016-11-22 09:29:46