Arb Corporation Limited · ASX:ARB
Arb — H1 FY2023 Earnings Presentation
21 slides from Arb's earnings presentation, Feb 21, 2023
Slide 1: 1H FY2023 Results Presentation
1H FY2023 RESULTS PRESENTATION Lachlan McCann Chief Executive Officer Damon Page Chief Financial Officer & Company Secretary 21 February 2023
Slide 2: Content
CONTENT 3 Financial Results 9 Vehicles & Sales 16 USA Update 17 Ford Relationship 18 Operations 19 Current Focus 20 Outlook 2 / 22
Slide 3: Financial Results: Sales & Profits
FINANCIAL RESULTS: 1H FY2023 SALES & PROFITS -5.1% -29.7% -31.2% SALES REVENUE NET PROFIT BEFORE TAX NET PROFIT AFTER TAX $340.9M $64.6M $47.4M $400M $100M $75M $300M $359.2M $75M $92.0M $68.9M $340.9 $50M $200M $50M $64.6M $47.4M $25M $100M $25M $0M $0M $0M 1H FY 2022 1H FY 2023 1H FY 2022 1H FY 20
Slide 4: Financial Results: Group Sales by Channel
FINANCIAL RESULTS: 1H FY2023 GROUP SALES BY CHANNEL ERMARK IPMENT FT RT QU O A IGINAL E ET -11. EXP ALIAN +2.7% -8.8% -36.9% R R ST O AU 60% 40% 10% 57.4% 38.4% 53.1% 30% 36.9% 7.5% 40% 8.5% 20% 5% 5.7% 20% 10% 2.5% 0% 0% 0% 1H FY 2022 1H FY 2023 1H FY 2022 1H FY 2023 1H FY 2022 1H FY 2023 Growth ac
Slide 5: Financial Results: Dividends 1H FY2023
FINANCIAL RESULTS: 1H FY2023 DIVIDENDS 1H FY 2023 INTERIM DIVIDEND Dividends (Fully Franked @ 30% tax rate) 32 CPS Interim Dividend Final Dividend 75 DIVIDEND PAYOUT RATIO 39.0 32.0 50 55.0% 25 16.0 16.0 17.0 18.0 19.5 21.0 21.0 KEY DATES FOR INTERIM DIVIDEND 13.0 13.0 14.5 16.0 17.5 18.5 18.5 29.0
Slide 6: Profit and Loss Statement
FINANCIAL RESULTS: 1H FY2023 PROFIT AND LOSS STATEMENT A$000s 1H 2023 % sales 1H 2022 % sales Change $ Change % Comments GROSS MARGIN Materials and consumables Sales & other revenue 342,377 360,663 (18,286) (5.1%) used increased from 42% of net sales value to 47%. Reversal of Truckman consideration
Slide 7: Truckman Acquisition Adjustments
FINANCIAL RESULTS: 1H FY2023 TRUCKMAN ACQUISTION ADJUSTMENTS The acquisition of Truckman in March 2021 included a deferred contingent consideration component of $13.2M (present valued at time of acquisition) depending on the EBITDA achieved during the three years following completion. The pricing me
Slide 8: Financial Results: Cash Flows
FINANCIAL RESULTS: 1H FY2023 CASH FLOWS $47.4M $19.2M $17.9M $23.0M $29.8M 1H FY2023 INCREASE IN INVENTORIES PAYMENTS FOR PROPERTY, DIVIDENDS PAID PROFIT AFTER TAX NET CASH HOLDINGS FROM JUNE 2022 PLANT & EQUIPMENT IN CASH ACHIEVED Net cash Profit After Tax Inventories Plant and Land & Final fully f
Slide 9: Vehicles & Sales
Vehicles & | Sales mh 4X4 ACCESSORIES : ; a 9/22
Slide 10: Australian Aftermarket
AUSTRALIAN AFTERMARKET RETAIL STORES Australian Aftermarket sales grew by 2.7% to $196 million and represented 57.4% of total sales 2 NT New sites acquired, corporate stores in planning stage: Mornington, VIC Albury, NSW 74 ARB stores in 17 QLD Bundaberg, QLD Launceston, TAS. A new site in Osborne P
Slide 11: Store Renovation
STORE RENOVATION ARB COOPERS PLAINS 12 / 22
Slide 12: Exports
EXPORTS Export sales declined by 8.8% to $126 million and represented 36.9% of total sales ARB EXPORT SALES BY REGION (A$ millions) 1H FY2022 1H FY2023 Asia, NZ & Pacific 8.7% 1.6% EU, ME & Africa 15.7% The Americas 0 20 40 60 13 / 22
Slide 13: Original Equipment Manufacturers
ORIGINAL EQUIPMENT MANUFACTURERS OEM sales decreased by 36.9% to $19 million and represented 5.7% of total sales Australian Business Global Result follows prior guidance on OEM ARB continues to win strategically revenue decline. important new OEM contracts off- OEM inventory overstocks have shore. a
Slide 14: Intensity IQ Launch
INTENSITY IQ LAUNCH 15 / 22
Slide 15: USA Update
USA UPDATE ARB predominantly sells into the 4x4 wholesale market in the USA. Unlike Australia, the wholesale distribution network is fragmented and lacks a strong National aftermarket retailer. The sale and subsequent restructure of a number of key accounts in the USA, including 4 Wheel Parts, conti
Slide 16: Ford Relationship
AUSTRALIA The Ford Licensed Accessories by ARB program (FLA) has been running FORD since October 2021. The Ford website promotes and offers an extensive range of ARB RELATIONSHIP products with a 5-year warranty (ARB offers a 3-year warranty). FLA program has been very well received by Ford dealers a
Slide 17: Operations
OPERATIONS NEW ZEALAND DEVELOPMENT EXPANSION 5,000 sqm Plans finalised. On-site retail showroom and fitting. Consolidation of the Beaut Utes and Proform businesses. ENGINEERING CENTRE BUILDING 1,000 sqm State-of-the-art facilities completed on budget and on time, housing c.100 engineers on the Corpo
Slide 18: Current Focus
CURRENT FOCUS Continued expansion of the On-going improvements in ARB Flagship store Australian fitting capacity program. All new stores to reduce customer lead- and existing store upgrades times Continued development of Inventory efficiency USA distribution channels, including B2C eCommerce and ARB
Slide 19: Outlook
OUTLOOK The Company maintains a positive short-term outlook based on its continuing strong customer order book, which is in line with order levels throughout 2022. ARB is focused on supporting export markets and pursuing various market opportunities, whilst managing input costs and global supply cha
Slide 20: Disclaimer
This presentation has been prepared by ARB Corporation Limited (ARB). The information in this presentation is current as at 21 February 2023. This presentation is not an offer or invitation for subscription or purchase of securities or a recommendation with respect to any security. Information in th
Slide 21: Thank You
THANK YOU have a great day 22 / 22