Tourism Holdings Rentals (THL) AGM 2024 summary

Opening remarks and agenda

• Meeting opened with confirmation of quorum, instructions for participation, and agenda including addresses, auditor remuneration resolution, Q&A, and general business.

• Board members, executive team, auditors, and legal representatives were introduced, with acknowledgment of a director's recent departure.

• 118.9 million valid proxies and postal votes received, representing 54% of shares; chair to vote discretionary proxies in favor of resolutions.

Financial performance review

• Underlying net profit after tax was NZD 51.8 million, below the 15% ROFE target, with group ROFE at 10% and strong results in NZ and Australia rentals offset by weaker Northern Hemisphere divisions.

• Share price declined, notably after a profit downgrade in May due to post-pandemic effects and lower sales volumes, especially in Q4.

• $165M spent on fleet capital expenditure to maintain a young fleet and expand inventory.

• Significant refinancing of bank facilities completed, increasing limits and improving terms; debt supported by asset values nearly double net debt.

• Withdrew 2026 NZD 100 million NPAT goal due to prolonged downturn; FY 2024 net profit was second largest in company history.

Dividend announcements

• FY24 dividend was NZD 0.095 per share, representing a 40% payout of underlying NPAT and a 7.4% gross yield for NZ shareholders.

• Dividend Reinvestment Plan uptake reached 30%, the highest in recent history.

• Dividend policy maintained despite profit downgrade; consistent approach emphasized.