Slide 1: Annual General Meeting Company Presentation
4X4 ACCESSORIES ANNUAL GENERAL MEETING COMPANY PRESENTATION 28 OCTOBER 2022
Slide 2: Board of Directors
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 Fitzgerald Non-Executive Director Adrian Fitzpatrick Non-Executive Director Karen Phin Non-Executive Director Andre
Slide 3: Disclaimer
DISCLAIMER This presentation has been prepared by ARB Corporation Limited (ARB). The information in this presentation is current as at 28 October 2022. This presentation is not an offer or invitation for subscription or purchase of securities or a recommendation with respect to any security. Informa
Slide 4: Roger Brown Still Going Strong
ROGER BROWN 8 STILL GC iNG STRONG |
Slide 5: Robert Fraser and Lachlan McCann presenters
Robert Fraser CHAIRMAN OF THE BOARD - APPOINTED 30 SEPTEMBER 2022 Robert was initially appointed as the Company’s first Non-executive Director in 2004. He was previously Chairman of the Audit and Risk Committee and the Remuneration and Nomination Committee. Mr. Fraser has over 30 years of investment
Slide 6: FY2022 Financial Highlights
FY2022 FINANCIAL HIGHLIGHTS t +11.5% 10 YR CAGR 10.0% SALES REVENUE A$694.5M mAust Aftermarket =Export mOEM 4X4 ACCESSORIES $ million 120 100 t +8.1% 10 YR CAGR 12.2% PROFIT AFTER TAX A$122.0M t +4.4 TOTAL DIVIDENDS FULLY FRANKED DIVIDENDS 71CPS minterim = Final * Excludes special dividend of 100 cp
Slide 7: FY2022 Financial Highlights
FY2022 FINANCIAL HIGHLIGHTS $84.6M CASH FLOW FROM OPERATIONS 4 Cash flow from operations $18.6M $58.1M PAYMENTS FOR PROPERTY, PLANT & EQUIPMENT Property $44.5M NET CASH HOLDINGS 4 Net cash $32.1M Conversion to cash Plant and equipment $13.6M Debt $O Funded capital expenditure and dividends % Working
Slide 8: Sales Revenue Summary
SALES REVENUE SUMMARY 750 500 250 Australian Aftermarket Exports 2017/18 ARB) 4X4 Accessories 2018/19 2019/20 2020/21 2021/22 t 9.2% 53.8% of sales PY: 54.9% t 17.4% 38.7% of sales PY: 36.7% 4 0.2% 7.5% of sales PY: 8.3%
Slide 9: Sales Revenue Summary
SALES REVENUE SUMMARY AU Aftermarket = Export = OE 400 $31M $32M 300 $20M $99M $130M $138M 200 100 ) 1H FY 2021 2H FY 2021 1H FY 2022 2H FY 2022 ARB) 4X4 Accessories
Slide 10: ARB Australia
Slide 11: FY2022 SUV and AWD new vehicle sales
FY2022 1,250,000 1,000,000 750,000 500,000 250,000 0 FY 2018 FY 2019 FY 2020 Other Vehicles [Hi Total suv and wo utility (excl. compact SUVs) SUV and AWD (excl. compact SUVs) % of New Vehicles Sold ARB) 4X4 Accessories FY 2021 51.6% FY 2022 42.1% 1,020,221 = wil 51.6% of total vehicles sales 40.5% 5
Slide 12: Target Vehicle Sales
TARGET VEHICLE SALES me Fvz Frat 0,000 = By & = ¢ 40,000 30,000 8 8 2 a 3 20,000 eo on a a > s = © = o 3 5 = o 8 10,000 | | | | Ci] ° | | » > » - eb fF ca * ? & o gS s s g & - s s »* sf Se gt SF OC FS SF SS se & 36 sy Ss we Se oS &o ss co SF LK ” &£ “a € “a ¥ oe ARB) 4x4 accessories
Slide 13: ARB Retail Stores
ARB RETAIL STORES Australian Aftermarket sales grew by 9.2% to $374 millionand represented 53.8% of total sales. NT New stores in FY2022 + Melton and Sale, Vic + Karratha, WA + Rutherford, NSW QLD ARB Pakenham was also acquired during the year. WA NSW ARB Flagship stores in Australia SA vic TAS 30 2
Slide 14: ARB Australian Operations
ARB AUSTRALIAN OPERATIONS 1,150 employees nationally ARB's retail and wholesale businesses are complemented by a dedicated operations team comprised of: « Canopy assembly + Manufacturing « Warehouse and distribution « Paint for colour matching products 4X4 ACCESSORIES A Speed to market Quality contr
Slide 15: ARB International
Slide 16: Exports
EXPORTS Export sales grew by 17.4% to $269 million and represented 38.7% of total sales. m FY2022 m FY 2021 Nth & Sth America EU, ME & Africa Asia, NZ & Pacific 100 125 ° nv a a 3 ™ a 4X4 ACCESSORIES
Slide 17: US customer change, Toyota AAP and Dallas distribution centre
As a significant customer, the change in ownership has been disruptive to ARB's business. Working closely with Wheel Pros, the new owner, to recover sales through 4 Wheel Parts stores. ARB) 4X4 Accessories Toyota has launched its Associated Accessory Products (AAP) featuring ARB products. Further de
Slide 18: International
INTERNATIONAL ARB’s sales in South East Asia, Europe, Africa and the Middle East are all trending positively. Challenges continue in China and our business to Russia remains on stop. ARB) 4X4 Accessories Vehicle supply to the UK remains low making trading conditions challenging. Vehicle supply expec
Slide 19: Add Adventure
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Slide 20: Partnership with Ford
In partnership with Ford, ARB’s Ranger and Everest accessories have been extremely well received and demand has been healthy through retail and wholesale channels. ARB) 4X4 Accessories Sales to Ford of approved products continues to grow. ARB continues to add products to the Ford accessories portfol
Slide 21: ARB Original Equipment Manufacturers
Slide 22: Original Equipment Manufacturers
ORIGINAL EQUIPMENT MANUFACTURERS Sales to OEM (A$ millions) a Major Model Launch “ jor Model Launch 1d dcidebddal Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun PNW UU DAN FY2020 mFY2021 mFY2022 4X4 ACCESSORIES tussan &RIVIAN toyota CD) hd wy, ISUZU Overall OEM sales growth of 0.2% in FY2022 was ac
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Slide 24: Marketing
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Slide 25: Marketing
MARKETING ARB's marketing reach is worldwide with some great consumer raat . Malaysian distributor for 2 facing shows managed and supported by our local ARB teams Ford Ranger Raptor returning post COVID, e.g. ADIHEX, 4x4 camping shows and launch event more. ARB's international offices are strong in
Slide 26: Product Development
PRODUCT DEVELOPMENT Product development and innovation remain key to ARB’s competitive advantage. Next Generation Summit Bull Bar ARB launched its facelift of the flagship Summit Bull Bar in January 2022. Product styling and design features have been well received and sales have been strong. SEMA la
Slide 27: Operations
OPERATIONS On schedule and close to completion, Thailand’s 4th factory (5th site) will be ready for operation from December 2022. This state-of-the-art facility provides an additional 33,250 sqm, effectively doubling the manufacturing footprint in Thailand. 60,000 SQM. 33,250 SQM. ARB’s newly comple
Slide 28: Q1 FY2023 Trading Update
Q1 FY2025 The first quarter of FY2023 highlights a challenging environment. + Sales revenue for Q1 FY2023 is 10% lower than Q1 FY2022 (22% higher than the corresponding quarter in FY2021) Australian Aftermarket sales are 4% higher than Q1 FY2022 ° Total sales of new ARB target vehicles are up 14% in
Slide 29: Outlook
OUTLOOK + Sales have started well in @2 FY2023 and longer term initiatives should support stronger sales in 2H FY2023 and into FY2024. ARB’s Australian Aftermarket order book remains strong and the Company is continuing with its product development work and store development programme. ARB’s Export
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