Arb Corporation Limited · ASX:ARB
Arb — Shareholder Meeting (October 2024)
46 slides from Arb's shareholder meeting presentation, Oct 17, 2024
Slide 1: Annual General Meeting
ANNUAL GENERAL MEETING COMPANY PRESENTATION 17 OCTOBER 2024
Slide 2: AGM Board of Directors
AGM BOARD OF DIRECTORS Welcome to our shareholders, business partners and guests. Robert Fraser Chairman of the Board Andrew Brown Managing Director Roger Brown Non-Executive Director Shona Faber Non-Executive Director Adrian Fitzpatrick Non-Executive Director Karen Phin Non-Executive Director Andre
Slide 3: AGM Disclaimer
AGM DISCLAIMER This presentation has been prepared by ARB Corporation Limited (ARB). The information in this presentation is current as at 17 October 2024. This presentation is not an offer or invitation for subscription or purchase of securities or a recommendation with respect to any security. Inf
Slide 4: AGM Presenters
AGM PRESENTERS Robert Fraser Lachlan McCann Damon Page Dennis Horton CHAIRMAN OF THE CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER DIRECTOR OF BOARD – APPOINTED OFFICER – APPOINTED & COMPANY SECRETARY MANUFACTURING AND 30 SEPTEMBER 2022 5 JULY 2022 ENGINEERING Robert was appointed as the Lachlan commenced
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Slide 6: AGM FY24 Financial Highlights
AGM FY24 FINANCIAL HIGHLIGHTS UP UP UP 3.3% SALES REVENUE A$693.2M 16.1% PROFIT AFTER TAX A$102.7M 11.3% FULLY FRANKED D IVIDENDS 69 CPS 10 YR CAGR 8.8% 10 YR CAGR 9.2% $700M $140M 80 $600M $120M 60 $500M $100M $400M $80M 40 $300M $60M * $200M $40M 20 * $100M $20M $0M $0M 0 FY 21 FY 15 FY 3 FY 2 24
Slide 7: AGM FY24 Cash Flow Financial Highlights
AGM FY24 CASH FLOW FINANCIAL HIGHLIGHTS $125.3M $48.1M $11.0M $44.7M $56.5M CASH FLOW PAYMENTS FOR PROPERTY, INVESTMENTS IN THE USA CASH DIVIDENDS NET CASH FROM OPERATIONS PLANT AND EQUIPMENT HOLDINGS $102.7M $33.1M 30% share in Off Road Warehouse FY23 Final dividend 30.0 cps FY24 Interim dividend 3
Slide 8: AGM Sales Revenue Summary
AGM SALES REVENUE SUMMARY Total Total Total Total Total Total $444M $465M $623M $695M $671M $693M $700M AUSTRALIAN AFTERMARKET 52 42 60 $600M OEM UP 5.4% 58.3% of sales PY: 57.2% 52 $500M EXPORTS 30 269 $400M 34 229 245 229 Exports DOWN 6.5% 33.1% of sales PY: 36.5% 152 130 $300M 404 OEM 384 $200M 3
Slide 9: Manufacturing Update
MANUFACTURING UPDATE 9
Slide 10: AGM Manufacturing Update
AGM MANUFACTURING UPDATE Circa 110,000 Square Metres of Manufacturing SMARTBAR MANUFACTURING Challenging labour shortages in Lonsdale, Adelaide. Significant number of new automotive products introduced. Expanded range of non-automotive products. Developed and committed to a robotic trimming cell. AR
Slide 11: AGM Manufacturing Update
AGM MANUFACTURING UPDATE THAILAND MANUFACTURING Appointed new Managing Director. Significant investment in plant & new equipment. Increased investment in automated manufacturing. Outsourced bottleneck processes. Increased manufacturing output. Expanded direct and indirect labour teams to support gro
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Slide 13: Capital Equipment
AGM MANUFACTURING UPDATE CAPITAL EQUIPMENT KEY INVESTMENTS FY24 ARB THAILAND COATING LINE Added 3 x robotic welding cells. High output E-coat and Powder-coat line. Lathes, mill and dyno for suspension products. Improved product protection against corrosion. Various other machines to expand capacity.
Slide 14: AGM Manufacturing - Earth Camper
AGM MANUFACTURING - EARTH CAMPER RECAP Launched 2023. 7 years in development. Unique styling and design with ARB DNA. Tow anywhere, go anywhere camper. Recreational Vehicle with over 3,500 components AFTER LAUNCH Positive customer feedback, it is a great product. Some issues with component design an
Slide 15: Engineering Update
ENGINEERING UPDATE 15
Slide 16: AGM Engineering and R&D
AGM ENGINEERING AND R&D INVESTMENT IN INNOVATION & NEW PRODUCT DEVELOPMENT REMAINS A CRITICAL PILLAR OF SUCCESS FOR ARB 95 engineers in Australia and New Zealand, up from 82 last year. 47 engineers in Thailand, up from 31 last year. Expanded OEM engineering team. Expanded ARB product R&D teams. Expa
Slide 17: AGM Engineering and R&D
AGM ENGINEERING AND R&D USA ENGINEERING & DEVELOPMENT ARB continues to invest in design and development for key US platforms. Air freight of new Toyota Tacoma and Toyota LandCruiser (Prado 250) to Australia to expedite new product development for these platforms. Approved a new engineering centre in
Slide 18: Australia
AUSTRALIA 18
Slide 19: AGM Australian New Vehicle Sales
AGM AUSTRALIAN NEW VEHICLE SALES V FY2 3 NUMBER OF VEHICLES SOLD (‘000S) PERCENTAGE CHANGE FY24 V FY23 35% Strong new vehicle sales for core 60k ARB models in the financial year. 15% Australia’s continued appetite for 4x4 pick-up vehicles highlighted in registration growth. Most notably Ford Ranger,
Slide 20: AGM Aftermarket Retail Stores
AGM AFTERMARKET RETAIL STORES 74 ARB STORES The Company’s flagship store program IN TOTAL continues to develop with deep NATIONWIDE investments being made by the Company and independent ARB store owners. FLAGSHIP ARB STORE DEVELOPMENTS DUE IN FY2025 The store development program includes both refurb
Slide 21: AGM National Sales New Store Updates
AGM NATIONAL SALES NEW STORE UPDATES NEW FLAGSHIP STORES IN FY25 MITTAGONG, NSW All new site being developed by the ARB GRIFFITH, NSW current independent store owner of ARB NEWCASTLE, NSW ARB Wollongong, NSW. Fantastic opportunity for growth in ARB MIDLAND, WA Southern Highlands with proximity to Bo
Slide 22: AGM National Sales Performance
AGM NATIONAL SALES PERFORMANCE TOTAL 4X4 TECHNICIANS MARKET UPDATE The Australian Aftermarket performed well in FY24 with sales up 5.4%. Retail sales in corporate stores remained relatively flat. Sales to independant stores and stockist showed positive growth, while sales to motor vehicle dealership
Slide 23: AGM Distribution to Market - FLA Partnership
AGM DISTRIBUTION TO MARKET - FLA PARTNERSHIP Ford Licensed Accessory program sales and order intake continue to trend positively. Dealerships showing increasing engagement in the FLA program. Ford and ARB working on approvals for 10 new product lines to include in the program. FLA sales in markets s
Slide 24: International
4X4 ACCESSORIES ) INTERNATIONAL
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Slide 26: AGM Exports
AGM EXPORTS ARB EXPORT SALES BY REGION (A$ Millions) FY23 FY24 Asia, NZ & Pacific -18.2% EU, ME & Africa 3.2% Nth & Sth America -6.5% 0 20 40 60 80 100 Export business recorded a net decrease of Truckman continued its positive results Weakness through Asian markets, 6.5% in FY24. Sales decreased by
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Slide 28: AGM USA 4WP and ORW Locations
AGM USA 4WP AND ORW LOCATIONS Combined 53 retail stores Combined 500+ employees 50% ownership 28
Slide 29: AGM Wheel Parts (4WP) at a Glance
AGM 4 WHEEL PARTS 4 WHEEL PARTS (‘4WP’) AT A GLANCE 4WP is a leading omni-channel retailer and installer of aftermarket parts and accessories in the US to the growing light truck and off-road SUV segment. LEADING RETAILER OF 42 STRATEGICALLY AFTERMARKET OFF-ROAD LOCATED STORES VEHICLE PARTS RETAIL E
Slide 30: AGM USA 4WP and ORW Locations
AGM USA 4WP AND ORW LOCATIONS ARB will move from 30% ownership in ORW to 50% ownership. Acquisition value for 4WP including associated IP and digital assets is US$30M. Approximately US$16M of stock. ARB will provide ORW with US$10M interest bearing loan which will not be fully drawn at sale. Sale wi
Slide 31: AGM Poison Spyder
AGM POISON SPYDER POISON SPYDER OPPORTUNITY AT A GLANCE Poison Spyder is a well-recognised aftermarket brand among the Jeep enthusiast community, known for its quality, adhering to rigid standards for design, function & style. HARDCORE PARTS FOR HARDCORE ENTHUSIASTS Manufacturer of aftermarket Jeep
Slide 32: AGM USA Business
AGM USA BUSINESS SALES DISTRIBUTION EXPANSION SEATTLE RETAIL Market conditions in the USA remain challenging, In anticipation of expansion of OEM and Seattle retail site is on hold while we focus our US with industry wide headwinds both in new aftermarket business, ARB will expand the resource on AR
Slide 33: AGM UK Truckman
AGM UK TRUCKMAN TRUCKMAN (UK) KEY VEHICLE REGISTRATIONS AUSTRALIAN FINANCIAL YEAR ARB’s UK Truckman business produced an excellent financial result recovering from a challenging FY23 due to low vehicle registrations. 25,000 UK vehicle registrations recovered to historical levels in FY24 as did 20,00
Slide 34: AGM Australia Ecommerce
AGM AUSTRALIA ECOMMERCE OUR GOAL Our goal is to deliver an intuitive & engaging digital experience that showcases our products and elevates the ARB brand. We will support our existing network by delivering quotes directly from online and increase foot traffic in store via click and collect programs.
Slide 35: OEM
OEM 35
Slide 36: AGM Original Equipment Manufacturers
AGM ORIGINAL EQUIPMENT MANUFACTURERS OEM SALES ($M) 35.00000 30.00000 Overall OEM sales improved 40.5% in FY24. 25.00000 OEM sales represented 8.6% of total sales. 20.00000 New projects typically have a 2-year to 4-year development cycle. ARB has a record number of projects currently 15.00000 underw
Slide 37: Products
PRODUCTS 37
Slide 38: AGM Back of Ute
AGM BACK OF UTE UTE LIDS CLASSIC CANOPY ASCENT CANOPY ALLOY TRAY & CANOPY 38
Slide 39: MITS Alloy
MITS7ALLOY EXPLORE WITH NO LIMITS
Slide 40: AGM MITS Alloy Acquisition
AGM MITS ALLOY ACQUISITION MITS STORY & EVOLUTION MITS Alloy was born from demand for durable trays and canopies, for tough environments. MITS Alloy employs around 50 staff and is based in Newcastle, NSW which has dedicated design engineering, manufacturing and installation facilities. Founder and M
Slide 41: AGM MITS Alloy
AGM MITS ALLOY WHAT MAKES MITS BETTER Australian Made Asset purchase agreement signed. Sale due for completion 18 October 2024. Modular 5-year earn out in place. Integration to the ARB store and wholesale Standard Sizing network to commence immediately. Extensive R & D New product roadmap well devel
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Slide 43: AGM FY24 ARB OME
AGM FY24 ARB OME Industry leading shock absorber line-up. Nitrocharger Plus, MT-64, BP-51. Best in-class spring range including new air-bag and parabolic leaf springs. Globally recognized integrated suspension solution. Market share opportunity in Australia, USA and other international markets. Targ
Slide 44: AGM Q1 FY25 Update
AGM Q1 FY25 UPDATE Sales growth of 6.5% was achieved in Q1 FY25 including: • 5.5% growth in Australian Aftermarket sales, • 2.0% decline in sales to OEMs, • 10.4% growth in Export sales. Gross margins achieved in Q1 FY25 remain healthy with a small price increase implemented on 1 October 2024. ARB’s
Slide 45: AGM Outlook
AGM OUTLOOK ARB’s Aftermarket order book remains strong despite pressure on the Australian economy The Board believes that the Company from cost of living increases. is well-positioned to achieve long-term success through: Increased fitting output, new store development and new product releases are
Slide 46: Thank You
THANK YOU 46