1. travel
2. tourist destinations
3. australia and new zealand

Investor Presentation
Tourism Holdings Limited
October 2014 – Presented to Australian Fund Managers
CUSTOMER PROPOSITION
thl today
INTERNATIONAL BUSINESS
• NZSX listed since 1986
• Market Cap circa $160m
• Operations in NZ, Australia, USA. Franchise
in South Africa
• Top 50 shareholders own 73%
• Over 4,000 investors
• Gross dividend yield 10%
• Improvement in ROFE from 5.2% in FY13
to 9.6% in FY14
• 3,900 vehicles – Over $200m
*South Africa is a franchise model
FY2009 - FY2014
FY09
FY11
FY13
GFC Impacts.
New purpose ‘Unforgettable holiday
experiences’. New
vehicle build design
commences.
Manufacturing
turnaround
Road Bear (USA) purchased.
AU and NZ experience
demand decline.
New vehicle build cost
lowered
NZ merger and
industry consolidation.
Australian fleet
downsized
$22.8M
$16.0M
$14.6M
EBIT*
$9.9M
$4.3M
$1.1M
* Excluding Impairment
FY10
FY12
FY14
New low build cost
achieved.
AU fleet build
increased
Full year of Road Bear RV.
Manufacturing
consolidation/JV
Rugby World Cup (est’d
EBIT impact + $4.5M)
First full year of NZ
post-merger. Australian
performance improving from
H2. Manufacturing
performing well.
All business units in growth.
WORLD TRAVEL TRENDS
• Travelling is a global mega-trend
• Modest growth from the developed world – higher travel frequency
• Fast growth from emerging markets – ‘new world middle class’ to double by 2030 =
1.5 billion more middle class people eager to travel around the world
• Travel from Asia, Middle East and BRIC countries will grow strongly
“One Third of Humanity is Travelling But Two Thirds Are Not Yet Travelling”
> 70%
40% - 69%
< 40%
Source: ITB World Travel Trends Report 2013
RENTALS BUSINESS MODEL – BUILD RENT SELL
FOCUS ON MAXIMISING VALUE OVER TOTAL LIFE OF VEHICLE
BUILD / BUY
Model
Business
Structure
Value Drivers
RENT
SELL
• Build well designed
vehicles to robust
rental standards.
Where appropriate
buy using market
scale.
• Maximise the rental returns
from the vehicle fleet.
Depreciate vehicles over the
life on fleet to residual value
that allows for small profits on
sale
• Create further value in the
ownership market with
strong sale networks and
dedicated product
• RVMG Manufacturing JV
with owner operator
supplies NZ and AU
vehicles
• US vehicles externally
sourced
• NZ-AU Vehicles rotated
through rental brands 2-6
years
• US Rentals 1-2 years fleet
rotation
• NZ vehicle sales mainly
through RV Super Centre
• AU and US sales through
independent dealer
networks
• Long experience
• Strong design focus that
meets rental and owner
needs
• Relentless focus on lowering
cost of build
• Economies of scale
• Established multi-channel
distribution
• Experience driven
• Largest player in the world
• Global operation
• Growing demand for
private ownership of
motorhomes –baby
boomer segment
• NZ retail, trade-ins and
servicing
MEETING OUR COMMITMENTS - 2013-14
Commitment
Outcome
Deliver NPAT above $10.5M
Achieved $11.1M

Reduce debt to sub $90M from $120M
Achieved $79M

(plus Line of Credit for manufacturing facility of $6M)
Address Australia Cost Structure
Achieve respectable ROFE in FY15
Delivered 2 H run rate to achieve FY15 –
we are on track

Fix Manufacturing
Delivered $1.0M profit vs (1.4M) pcp.

(thl share)
FY15 Commitments
Deliver NPAT above $15M
Achieve acceptable returns in Australia and New Zealand
Commence a plan for growth
FY14 PROFIT BRIDGE
CURRENT DIRECTION
Summarized by Positive Change:
• Industry has been consolidated in NZ and AU
• Debt reduction has been ahead of targets
• Turnaround on track and underlying business model improving
Why and what's next …
• New blood and focus
• Strategic decisions delivering to plan
• Market recovery
Annual Meeting will be the opportunity to share a glimpse of where to next …
• Create the new and compelling
• Grow the underperformers to target
• Create growth from existing businesses
FINANCIAL STRENGTH
•
Business Metrics broadly aligned
to Moody’s Baa/S&P BBB grade
rating or above.
•
Debt levels were increased to fund
purchase of United and KEA in
2012.
•
Debt levels reduced as fleet has
been downsized to match
demand. To be maintained below
Debt:EBITDA of 2x.
•
Sale of fleet has proven the ability
to reduce capital employed as
required to respond to demand
cycles.
NET DEBT
Ratio
June 13 June 14
Debt/Debt + Equity
47%
36%
Debt:EBITDA
2.1
1.4
EBITDA:Interest
7.9
10.6
RENTALS NEW ZEALAND
BUSINESS SUMMARY: Rentals NZ
Financial
FY13
FY14
r
% thl EBIT
38%
33%
(5%)
Fleet Size
2,210
2,019
(9%)
EBIT $M
5.5
7.4
35%
Funds Employed $M
128
111
(13%)
Return on Funds Employed
4.3%
6.7%
2.4%
Market Context
Estimated rental market (vehicles)
4,500
thl estimated market share (vehicles)
45%
Main competitors
thl vehicle sales
Apollo
Jucy
circa 450 pa
434 FY14
Current Focus




Lifting ROFE to an acceptable return
Further downsize of fleet to lift ROFE
Business simplification underway
Operational improvements to lift
consistency of service offering
 Development of growth opportunities
within vehicle sales
Outlook
Total market fleet capacity
steady
Inbound visitors
+4.9% YTD Sep14
+4.5% MBIE forecast
for 2015
“Strong EBIT growth to acceptable performance
levels in a positive market”
RENTALS AUSTRALIA
BUSINESS SUMMARY: Rentals AU
Financial
FY13
FY14
r
% thl EBIT
9%
16%
7%
Fleet Size
1,421
1,336
(6%)
EBIT $M
1.3
3.7
185%
Funds Employed $M
72
58
(19%)
1.8%
6.3%
4.5%
Return on Funds Employed
Current Focus
 Building on performance improvement
commenced in H2 FY14 arising from
strategic review. Lifting ROFE to an
acceptable return
 Application of smart and disciplined
logistics practices
 Strong new management team over the
past 18 months
Market Context
Estimated rental market (vehicles)
3,500
thl estimated market share (vehicles)
40%
Main competitors
thl vehicle sales
Apollo
Jucy
TAB
circa 250 pa
(292 FY14)
Outlook
Total market fleet capacity
steady
Inbound visitors
+8.2% YTD Aug 2014
+5.6% year to June
2015 Tourism
Research Australia
Forecast
“Model changes near completion and
delivering gains. Consolidate”
RENTALS USA
BUSINESS SUMMARY: Rentals USA
FINANCIAL
FY13
FY14
r
% thl EBIT
45%
33%
(8%)
Fleet Size
541
537
(1%)
EBIT $M
6.5
7.6
17%
Funds Employed $M
34
30
(12%)
19.3%
25.4%
6.1%
Return on Funds Employed
Market Context
Estimated rental market (vehicles)
thl estimated market share (vehicles)
Main competitors
thl vehicle sales
Current Focus
 Transition of CEO to executive director role
and new CEO
 Modest and stable growth in fleet
 Grow new Orlando site (2013)
 Explore growth opportunities following
Camping World exit
Outlook
6,000
8%
Cruise America
El Monte
Camping World
circa 500 pa
(514 FY14)
Total market fleet
capacity
Steady-falling
Camping World (est. 400
vehicles) exiting the market
Inbound visitors
+8.7% YTD Jun14
+4.0% year to Dec15 forecast
US National Travel &
Tourism Office
“Maintain outstanding ROFE and look for growth”
RV MANUFACTURING GROUP (JV)
BUSINESS SUMMARY: RV Manufacturing Group (JV)
FINANCIAL
FY13
FY14
r
thl share of JV earnings $M
(1.4)
1.0
171%
Net thl interest in JV
7.1
7.5
0.4
RVMG Joint Venture
RVM
Manufacture of motorhomes for thl
NZ and AU.
Action Motor Bodies Specialist commercial vehicle
manufacturer including emergency
vehicles, mobile medical units,
refrigerated vehicles and minivans.
Current Focus
 RVM
• Production including new product: 4 berth
non toilet shower and 3 berth toilet
shower van product.
• Ongoing focus on lowering production
cost.
 Action Motor Bodies
• Full production schedule
• New product development for the
emergency vehicle market
Outlook
RVM
Action Motor Bodies
Increased production for thl
fleet FY15
Increased production
Debt to thl
Repayment of advances
“Return loans to thl, grow and
maintain build cost reductions”
WAITOMO GLOWWORM CAVES VISITOR CENTRE
AWARDS:
KIWI EXPERIENCE
BUSINESS SUMMARY: Tourism
Current Focus
Financial
FY13
FY14
r
% thl EBIT
27%
29%
2%
EBIT $M
4.0
6.6
66%
Funds Employed $M
28
26
(7%)
14.3%
25.4%
11.1%
Return on Funds Employed
Tourism Businesses
Glowworm Caves
Aranui
Ruakuri
Iconic guided experience
Top 10 Lonely Planet
‘world’s most illuminating
experiences’ 2014.
Wide market appeal.
The Legendary Black Water
Rafting Co.
Adventure tourism guided
experience. Youth focus.
Kiwi Experience
Flexible coach services
facilitating experiences for
the FIT youth market.
 Kiwi Experience
• New fleet and efficiencies
• New product development
• Growing the market
 Waitomo
• Gaining growth in Chinese market
• Leveraging Hobitton/Trilogy product
• New product development
Outlook
Inbound Visitors
total
+4.9% YTD Sep14
Forecast
+4.5% MBIE forecast for 2015
Inbound visitors
youth sector
+6.1% 15-34yr inbound YTD to
Aug14
Inbound visitors
Peoples Republic of
China
+7.2% Peoples Republic of
China inbound YTD Aug14
+11.9% MBIE forecast for 2015
“Growing strongly”
EXECUTIVE MANAGEMENT
Grant Webster
Chief Executive Officer
Mark Davis
Chief Financial Officer
Joining thl in 2005 as Chief
Operating Officer – Attractions
division, Grant was appointed to the
role of Chief Executive Officer in
December 2008. Appointed
Chairman, RV Manufacturing Group
joint venture in 2012. Grant is also
on the board of Tourism Industry
Association.
Grant’s background includes senior
executive roles across the tourism,
hospitality, gaming and retail
industries where he held director
and general management roles
within the retail sector before
moving into tourism. Prior to joining
thl Grant was a General Manager at
SKYCITY Auckland. Grant holds a
Bachelor of Commerce degree from
Victoria University and has
completed executive studies at the
Insead Advanced Management
Programme in Fontainebleau, and
Monash University, Melbourne
Australia.
Joining thl in February 2014,
Mark leads the finance function
including reporting to the Board
of Directors, external reporting,
internal and external auditing,
investor relations and banking
relationships. He also fulfils the
New Zealand Stock Exchange
requirements of thl as a listed
entity. Mark’s background
includes senior finance roles in
the media, gaming and
entertainment, and
telecommunications
sectors. Prior to joining thl, Mark
was CFO of The Radio Network.
Mark holds a Bachelor of
Management Studies (Hons)
degree from Waikato University
and is a member of the New
Zealand Institute of Chartered
Accountants.
Grant Brady
Managing Director
RV Manufacturing Group
After a successful career in the
construction industry in New
Zealand, Australia and the USA
Grant co-founded KEA Campers in
1995. As the primary shareholder
within the KEA Group, Grant
maintained 100% ownership of
KEA Manufacturing and supplied
product to KEA New Zealand, KEA
Australia and KEA South Africa.
Grant is Managing Director of
thl’s vehicle manufacturing joint
venture, RV Manufacturing Group
LP of which he owns 50%. In
addition to these responsibilities
Grant also leads the vehicle sales
business for thl in New Zealand
and has a particular focus on the
newly formed RV Super Centre
based in Albany, Auckland.
Keith Chilek
Chief Technology Officer
Joining thl in August 2014, Keith
is responsible for the technology
direction, product development
and creating a best in class online
user experience for thl
customers. Keith spent the
previous 12 years in the USA
building consumer facing
products in the education space,
holding various positions ranging
from Co-founding partner to
Senior Vice President of
Engineering. Keith holds a
Bachelor of Business
Administration degree with an
emphasis in Information and
Operations Management from
Texas A&M University.
EXECUTIVE MANAGEMENT
Matt Harvey
General Manager
Australian Operations
Mike Horne
General Manager
New Zealand Rentals Operations
Kate Meldrum
General Manager Group Revenue,
Brand & Customer Experience
Daniel Schneider
CEO & President
Road Bear RV Rentals & Sales
Matt joined thl in April 2010 as
Commercial Operations Manager
and progressed through to the
role of National Operation
Manager for NZ Rentals in
January 2012. In August 2013
Matt moved across to Melbourne
and now leads the Australian
Operations. Matt’s background
includes a number of operation
management roles within the
SKYCITY Group in New Zealand
and financial analyst roles within
the Gaming industry in London.
Matt holds a Bachelor of
Commerce degree from Auckland
University.
Mike leads the New Zealand
Rentals Operation having rejoined
thl in September 2010. Prior to
this, Mike had two years as Chief
Executive of Auckland Aquarium
Limited, running Village
Roadshow’s New Zealand
attractions business. Mike was
previously with thl as General
Manager of Fullers Bay of Islands
with general responsibility for the
Northland region. Previous
experience included senior
management roles within the
Hospitality and Events sector
both here and in Australia. Mike
holds a Bachelor of Business
Studies from Massey University.
Kate joined thl in 1991 in the
Sales and Marketing team as
Account Manager for North
America. She left in 1996 and
held several part-time and
contract marketing roles whilst
raising a family before re-joining
the company again in 2003 as
Sales & Marketing Manager for
New Zealand. Kate joined the
executive team in November
2009 as General Manager
Marketing & Customer
Experience and as of April 2014,
has assumed responsibility for
Group Revenue for the self-drive
experience businesses, and
overall responsibility for
marketing and sales channels.
Kate holds a Post Graduate
Diploma in Business from
Auckland University.
Following the acquisition of Los
Angeles based RV rentals
company, Road Bear, Daniel
joined thl 31st December 2010. A
Swiss and US citizen, Daniel
has over 20 year’s experience in
the USA rental RV industry with
expertise in sales, operations,
product design and business
general management/ownership.
Daniel holds a Bachelor degree in
Automotive Engineering from Biel
Switzerland.
BOARD OF DIRECTORS
Rob Campbell (Auckland)
Chairman
Chair, Market Disclosure Committee
Independent Director appointed in May 2013. Appointed Chairman of thl in August 2013 and Chair of Market Disclosure
Committee in April 2014. Rob has over 30 years’ experience in investment management and corporate governance.
Currently Chair of Summerset Group Holdings Limited (NZ), and a director of Guinness Peat Group Limited (UK), Precinct
Properties and Turners and Growers. He is a director of substantial private companies based in Australia and New Zealand.
In addition he is a director of or advisor to a number of hedge and private equity funds in a number of countries. Rob
trained as an economist and has worked in a variety of capital market advisory and governance roles over a long period.
Graeme Bowker (Melbourne)
Chairman, Audit & Risk Committee
Independent Director appointed in February 200​3. Appointed Chairman of thl Audit & Risk Committee 31st October 2012.
Currently is Chair of Silverstripe Australia Pty Limited and acts as a mentor to executives. Formerly the Victorian Managing
Partner for Deloitte Touche Tohmatsu and prior to this, Country Managing Partner in New Zealand.
Christina Domecq (Auckland)
Chair, Marketing & Customer Experience Committee
Independent Director appointed in February 2014. Appointed Chair of Marketing & Customer Experience Committee in
February 2014. Currently the CEO of Ora, winner of the Westpac Supreme Business Excellence Award in 2013. Christina has
operated internationally as a technology entrepreneur as well as an investor and a director in a variety of premium New Zealand
brands, including Stolen Rum, Umajin , Localist and The Market NZ. Starting her first company at the age of 20, Christina has
owned and invested in a large variety of companies around the world. Christina has broad skills in strategic assessment,
monetising ideas from concept to viable commercial entities and decisively seizing competitive advantage. Christina holds a
Bachelor of Arts & Science from Boston College and Master of Finance from Notre Dame University and has won a raft of awards
including Ernst & Young UK, ‘Young Entrepreneur of the Year' and ‘Science and Technology Entrepreneur of the Year’ in 2006
and CNBC Entrepreneur of the Year in 2009.
BOARD OF DIRECTORS
Kay Howe (Auckland)
Non Independent Director appointed in October 2012. With a background in a variety of industries Kay entered into
the tourism market in 1978 starting her first motorhome rental business as a small family operation. An industry
pioneer, Kay is experienced in the operational, financial, sales and marketing of a rental motorhome business in New
Zealand and has established strong industry relationships in many European markets. Kay founded United Vehicle
Rentals in 1994 which was sold to thl on the 31st October, 2012. Kay is a non independent director under the NZX
listing rules due to being a director of an entity that is a substantial security holder in thl.
David Neidhart (Switzerland)
Non Independent Director appointed in June 2013. David was proposed for appointment by the Sterling Grace funds,
an entity that is a substantial security holder in thl. David accumulated more than 4 years of experience in vehicle
rental industry as a Director of Strategy for the International business unit of Hertz. During his professional career,
David has operated across a number of international markets across various disciplines and industries. David has
managed Strategy and M&A for large International companies such as Hertz as well as being active in Asset
Management and Private Equity industries, Valartis and Bisange. David holds a Master of Finance of the Sciences-po
University in Paris and a Diploma of the Geneva University.
Graeme Wong (Wellington)
Chairman, Remuneration & Nomination Committee
Independent Director appointed in November 2007. Appointed Chairman Remuneration & Nomination Committee
October 2013. Background in stock broking, capital markets and investment. Founded and became Executive
Chairman of Southern Capital Limited which listed on the NZX and evolved into Hirequip New Zealand Limited. The
business was sold to private equity interests in 2006. Previous directorships include New Zealand Farming Systems
Uruguay Limited, Sealord Group Limited, Tasman Agriculture Limited, Magnum Corporation Limited, and At Work
Insurance; alternate director of Air New Zealand. Currently Chairman of Harbour Asset Management Limited;
Director of Areograph Limited, Precinct Properties New Zealand Limited and shareholder and Director of Southern
Capital Partners (NZ) Limited. Member of the Trust Board of Samuel Marsden Collegiate School and Member of the
Management Board of The Bible Society Development (New Zealand) Incorporated.