thl Annual Results to 30 June 2017

22 August 2017 MEDIA | NZX RELEASE TOURISM HOLDINGS LIMITED (thl) FINANCIAL RESULTS FOR THE YEAR TO 30 JUNE 2017 "thl delivers another record profit - growing globally" HIGHLIGHTS: o Record NPAT result of $30.2M, up 24% on the prior corresponding period (pcp). o Revenue of $341m, including six months of the USA acquisition, El Monte RV Rentals and Sales (El Monte) - up 22% on the pcp. o Fully imputed dividend of 11cps, bringing the full year dividend to 21cps (partially imputed) - up 11% on the pcp. o Net Debt of $176M, down on the forecast debt of $185M. o Return on Funds Employed (ROFE) of 14.3% (Excluding El Monte would have been 16.7%). New Zealand rentals EBIT up more than 50%, at $24M. o FY18 outlook positive; expected NPAT between $36M-39M. Update to be provided at our Annual Meeting. thl today releases its results for the full year ending 30 June 2017. The result is a record result for the Company. thl Chairman, Mr Rob Campbell, said, "in 2015 we set a target for the business to reach $30M NPAT in FY19. This goal assisted the business to direct energy in the areas that would really make a difference. It is pleasing for the business and shareholders to deliver to this target two years earlier than originally planned." "In December 2016, with the announcement of the El Monte acquisition and associated transactions, we announced a new target for the business - $50M NPAT in FY20. Already, within the six months since that announcement, we have, again, seen the business galvanise around that target." The result was greater than expected for the second six months, due mainly to strong performance from Rentals NZ, but also included higher than expected margins on the sale of the older El Monte fleet, which had been classified as inventory fleet for sale. All business units showed progress during the year in EBIT growth and Return on Funds Employed in operating country currency. The New Zealand rentals and sales business had an excellent year, with some benefit from the Lions tour, a strong shoulder season and higher yields in a high growth market. EBIT of $24M was up over 50% on the prior year. Dividends have continued to rise, with a year-end dividend of 11cps taking the total dividend to 21cps for the full year. With higher New Zealand-based earnings, the year-end dividend will be fully imputed. It is expected that future dividends will return to be partially imputed, as overseas earnings grow as a proportion of the total business. CEO, Mr Grant Webster, said "there are a number of achievements within the result which should be celebrated and, yet, we can clearly see more opportunities for improvement as we head towards the FY20 goal of $50M NPAT." "The year's review should be dominated by the announcements we made in December 2016. The acquisition of El Monte to take us to a clear number two position in the USA, the investment in Roadtrippers - a leading travel and technology company in the USA - and the pilot of Mighway all reset the way we think about North America." "The outlook for the FY18 result will be detailed at the Annual Meeting in October, however we are providing an initial forecast range of between $36M and $39M, which includes the first full year of El Monte." Mr Webster noted "we operate in an industry that's in a growth phase, we deliver compelling experiences and we are a business that has improved, is still improving and is prepared to take some careful risks for future substantial growth." The company has also today released its first sustainability report. The report is available online and outlines the current performance and future focus for the company from a sustainability perspective. Mr Webster said, "we do consider ourselves a responsible tourism operator. We are often leading the way within our industry segment and we will continue to do so. We have goals we want to achieve and we want to be confident we are making a positive contribution to the broader environment in which we operate." The shareholder review, financial statements and a detailed investor presentation are all available on the thl website. ENDS Authorised by: Rob Campbell Chairman, Tourism Holdings Limited For further information contact: Grant Webster thl Chief Executive Direct Dial: +64 9 336 4255 Mobile: +64 21 449 210 Mark Davis thl Chief Financial Officer Direct Dial: +64 9 336 4212 Mobile: +64 27 444 0199 About thl (www.thlonline.com) thl is a global tourism operator. We are listed on the NZX and are the largest provider of holiday vehicles for rent and sale in Australia and New Zealand. In the USA we own and operate the Road Bear RV Rentals and Sales brand. Within New Zealand we operate Kiwi Experience and the Discover Waitomo group which includes Waitomo Glowworm Caves, Ruakuri Cave, Aranui Cave and The Legendary Black Water Rafting Co. In 2012 thl entered in a joint venture to form RV Manufacturing Group LP, now Action Manufacturing LP, New Zealand's largest motorhome and specialist vehicle manufacturer. Action Manufacturing LP has operations both in Auckland and Hamilton. In February 2015, thl acquired 49% of Just go Motorhome Rentals & Sales, based in the UK. In November 2015, thl launched Mighway - a sharing economy platform for motorhome owners. In January 2017, thl acquired El Monte RV Rentals and Sales in the USA. End CA:00305865 For:THL Type:FLLYR Time:2017-08-22 08:30:32