Automotive : AHG 2017 FULL YEAR RESULTS

ASX / MEDIA STATEMENT

25 August 2017

AHG FULL YEAR RESULTS

Automotive Holdings Group Limited

21 Old Aberdeen Place West Perth WA 6005 www.ahgir.com.au ABN 35 111 470 038

• Record Group revenue of $6.08 billion ($5.63b pcp)

• Operating1EBITDA of $216.0 million ($225.5m pcp)

• Operating1EBITDA margin 3.6% (4.0% pcp)

• Operating1NPAT of $87.3 million ($97.2m pcp)

• Operating1EPS 26.7 cents (31.7 pcp)

• Statutory NPAT of $55.5 million ($90.1m pcp)

• Statutory EPS 17.0 cents (29.4 cents pcp)

• Final dividend of 9.5 cents takes the full‐year dividend to 19.0cps fully franked (22.5 pcp)

Automotive Holdings Group Limited (ASX: AHG) reports Operating1NPAT for the full year to 30 June 2017 of $87.3 million (down 10.2% pcp), in line with the Company's trading update issued 24 May 2017.

Statutory NPAT was $55.5 million, down 38.4% (pcp), primarily due to one‐off costs associated with the Refrigerated Logistics transformation program, restructuring of the Company's operations, and cost down initiatives as detailed in the May trading update.

The Board declared a final dividend of 9.5 cents per share, taking the full year payout to 19.0 cents fully franked, that reflects the Company's profit position and is consistent with AHG's dividend policy of paying 65 to 75 percent of operating profit.

AHG managing director John McConnell said the Company was now in a stronger position to address the short term challenges in Automotive and take advantage of the opportunities for further industry consolidation.

"FY2017 was a challenging year in Automotive, given the acknowledged decline in the new vehicle market in Western Australia and the tightening of consumer credit conditions, which impacted on finance and insurance income," said Mr McConnell.

"It is pleasing that the performance of our dealerships in New Zealand and the eastern states of Australia was strong," he said.

"We have commenced the restructuring of the Automotive division and implemented a number of cost reduction initiatives that will mitigate anticipated insurance commission changes in FY2018.

"We are also accelerating the roll‐out of the easyauto123 fixed‐price used car warehouse model in conjunction with our acquisition in July of a majority stake in the Carlins auction and wholesale business. The easyauto123 model is resonating with customers without affecting used car sales at our franchised dealerships," said Mr McConnell.

"We delivered a strong performance in Refrigerated Logistics in the second half of the year, with EBITDA up 68% on last year as the restructuring of the division began delivering expected improvements," he said.

The Company's Other Logistics division, which includes the AMCAP parts distribution business and the importation and distribution of KTM and Husqvarna motorcycles, performed ahead of FY2016.

Outlook

Management is cautiously optimistic in its outlook based on AHG's strong balance sheet and diverse business operations.

The outlook for the Group in FY2018 is for a modest uplift in operating performance based on expectations that the Western Australian economy is stabilising, realising the benefits of AHG's cost reduction programs and the ongoing improvement in Refrigerated Logistics.

The anticipated uplift is expected to mitigate the impact of regulatory changes to FY2018 insurance income in the Automotive division.

"AHG has previously advised the market that the changes to flex finance commission payments in FY2019 are expected to have little impact on earnings and we remain of that view," said Mr McConnell.

"We are delivering on our strategic objectives to reposition AHG for future growth. Our Automotive division is driven by ongoing improvements in our relationships with manufacturers and our commitment to further enhancing the customer experience across sales and service, coupled with our confident expectation of growth in our used car warehouse model."

ENDS

About AHG Automotive Holdings Group Limited (ASX: AHG) is a diversified automotive retailing and logistics group with operations in every Australian mainland state and in New Zealand. The Company is Australia's largest automotive retailer, with operations in Western Australia, New South Wales, Queensland and Victoria.

AHG's logistics businesses operate throughout Australia via subsidiaries Rand Transport, Harris Refrigerated Transport, Scott's Refrigerated Freightways and JAT Refrigerated Road Services (transport and cold storage), AMCAP (motor parts and industrial supplies distribution), VSE (vehicle storage and engineering), Genuine Truck Bodies (body building services to the truck industry), Higer Bus (bus and truck importation and distribution), and KTM Sportmotorcycles and HQVA (KTM and Husqvarna motorcycle importation and distribution in Australia and New Zealand).

Corporate: David Rowland Company Secretary Mobile: [phone]

Email: [e-mail]

Media: David Christison Group Executive Corporate Communications Mobile: [phone]

Email: [e-mail]

25 August 2017

The Manager

Company Announcements Office Australian Securities Exchange

Dear Sir / Madam,

APPENDIX 4E - PRELIMINARY FINAL REPORT AND 2017 FULL YEAR RESULTS

In accordance with ASX Listing Rules, the following documents are attached for release to the market;

• Appendix 4E - Preliminary Final Report; and

• 2017 Full Year Results Announcement and Presentation.

Yours faithfully,

D ROWLAND COMPANY SECRETARY

Enc.

21 Old Aberdeen Place, West Perth, Western Australia 6005

Tel: [phone] Fax: [phone] Email: [e-mail]

Automotive Holdings Group Limited ABN 35 111 470 038

Appendix 4E - Preliminary Final Report

FOR THE YEAR ENDED 30 JUNE 2017 - AUTOMOTIVE HOLDINGS GROUP LIMITED AND ITS CONTROLLED ENTITIES ABN 35 111 470 038

Report for the year ended 30 June 2017

This statement includes the results for Automotive Holdings Group Limited and its controlled entities, for the year ended 30 June 2017 (current period) compared with the year ended 30 June 2016 (prior period). The financial results of Automotive Holdings Group Limited and its Australian controlled entities are prepared in accordance with Australian International Financial Reporting Standards (AIFRS), whilst the Group's New Zealand controlled entities local financial statements are prepared in accordance with New Zealand International Financial Reporting Standards (NZIFRS) and converted to AIFRS on consolidation.

This report is based on financial accounts which are in the process of being audited.

Results for Announcement to the Market
Revenues from ordinary activities	Up	$A'000's 455,746	8.1% to	$A'000's 6,081,745
Profit after tax from ordinary activities attributable to members	Down	(34,532)	-38.4% to	55,539
Profit after tax from continuing operations attributable to members	Down	(34,532)	-38.4% to	55,539

DIVIDENDS Amount per

security

Franked amount per security

Interim dividend 9.5 cents

Final dividend 9.5 cents 9.5 cents

Record date for determining entitlement to the final dividend 22/09/2017

Date the final dividend is payable 6/10/2017

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