Tourism Holdings Limited Independent Report In relation to the: Acquisition of the businesses and assets of United Vehicle Rentals Limited Acquisition of the businesses and assets of Kea Campers (New Zealand) Limited And other Minor Components STRICTLY PRIVATE AND CONFIDENTIAL 24 September 2012 TOURISM HOLDINGS LIMITED – INDEPENDENT REPORT Table of Contents Abbreviations and Definitions .............................................................................................................. 4 Executive Summary .......................................................................................................................... 6 Background .............................................................................................................................................. 6 Transaction summary ......................................................................................................................................... 6 Transaction assessment ..................................................................................................................................... 7 1. Summary of the Transaction and Scope of Report ............................................................. 11 1.1. Background ....................................................................................................................................... 11 1.2. Summary of the Transaction .............................................................................................................. 11 1.3. Regulatory Requirements and Scope of Report ................................................................................. 14 2. The Transaction ...................................................................................................................... 16 2.1. Sector Background / Business Environment ...................................................................................... 16 2.2. Rationale for the Transaction ............................................................................................................. 24 2.3. Alternatives to the Transaction........................................................................................................... 25 2.4. Transaction Details ............................................................................................................................ 25 3. Transaction Valuation ............................................................................................................ 37 3.1. Valuation Methodology ...................................................................................................................... 37 3.2. Status Quo and Post-Transaction Enterprise Valuation ..................................................................... 38 3.3. Transaction Value to thl Shareholders and Vendors .......................................................................... 41 4. Transaction Assessment ....................................................................................................... 45 4.1. Transaction rationale ......................................................................................................................... 45 4.2. Synergies ........................................................................................................................................... 46 4.3. Fleet rationalisation ............................................................................................................................ 46 4.4. Capital structure ................................................................................................................................. 47 4.5. Valuation ............................................................................................................................................ 48 Appendix 1 – Qualifications, Declarations and Consents ............................................................... 52 Declarations ............................................................................................................................................ 52 Qualifications ............................................................................................................................................ 52 Independence ............................................................................................................................................ 52 Disclaimer and restrictions on the Scope of Our Work ...................................................................................... 52 Appendix 2 – Information Sources .................................................................................................... 53 Appendix 3 – Redeemable Shares ..................................................................................................... 54 Appendix 4 – Trading Comparables .................................................................................................. 56 PAGE | 2 TOURISM HOLDINGS LIMITED – INDEPENDENT REPORT Table of Figures and Tables Figure A – Transaction consideration and funding sources .................................................................... 7 Figure B – DCF Transaction bridge ......................................................................................................... 9 Figure 1.1 – Transaction elements, parities and key principals ............................................................ 12 Figure 1.2 – Consideration .................................................................................................................... 13 Figure 1.3 – Indicative timetable ............................................................................................................ 14 Figure 1.4 – Cameron Partners approach ............................................................................................. 15 Figure 2.1 – thl segment revenue and EBITDA ..................................................................................... 16 Figure 2.2 – thl historical financial performance .................................................................................... 17 Figure 2.3 – thl NZ Rental Business ...................................................................................................... 18 Figure 2.4 – Historical and forecast visitor arrivals to New Zealand ..................................................... 18 Figure 2.5 – Historical visitor arrivals to NZ by type .............................................................................. 20 Figure 2.6 – thl NZ Rentals fleet utilisation (FY11A, FY12A & FY13E, assuming no transaction) ....... 21 Figure 2.7 – NZ industry fleet size and visitor spend ............................................................................ 22 Figure 2.8 – Sector share by estimated volume before and after proposed transaction ...................... 24 Figure 2.9 – Strategic options and considerations ................................................................................ 25 Figure 2.10 – Kea fleet and consideration ............................................................................................. 27 Figure 2.11 – United fleet and consideration ......................................................................................... 28 Figure 2.12 - Consideration ................................................................................................................... 29 Figure 2.13 – thl shareholding composition (12 September 2012) ....................................................... 30 Figure 2.14 – thl shareholding composition post-transaction ................................................................ 31 Figure 2.15 – Funding sources .............................................................................................................. 31 Figure 2.16 – Capex and opex benefits ................................................................................................. 33 Figure 2.17 – Cost synergies ................................................................................................................. 33 Figure 2.18 – Total transaction benefits ................................................................................................ 34 Figure 2.19 – Statement of financial performance (Status Quo and Post-Transaction) ....................... 34 Figure 2.20 – Pro-forma statement of financial position, (Pre-Transaction and Post-Transaction) ...... 35 Figure 2.21 – Pro-forma capital structure and gearing (Pre-Transaction and Post-Transaction) ......... 36 Figure 3.1 – Valuation assumptions ...................................................................................................... 38 Figure 3.2 – Comparable company metrics........................................................................................... 39 Figure 3.3 – thl enterprise value bridge ................................................................................................. 41 Figure 3.4 – Transaction benefits analysis ............................................................................................ 43 Figure 3.5 – DCF transaction bridge ..................................................................................................... 43 Figure 4.1 – Dis-synergies and mitigants .............................................................................................. 46 Figure 4.2 – Debt ratios (Pre-Transaction and Post-Transaction)......................................................... 47 Figure