Arb Corporation Limited · ASX:ARB
Arb — FY2022 Earnings Presentation
22 slides from Arb's earnings presentation, Aug 23, 2022
Slide 1: FY2022 Financial Result
FY2022 FINANCIAL RESULT 23 August 2022 LACHLAN MCCANN DAMON PAGE
Slide 2: Table of Contents
TABLE OF CONTENTS 3 Financial Highlights 8 Australian New Vehicle Sales 10 Sales Categories 13 Operations 17 Forward Focus 19 Outlook
Slide 3: FY2022 Financial Highlights
FY2022 FINANCIAL HIGHLIGHTS Sales Net Profit Net Profit Revenue Before Tax After Tax 11.5% 10.4% 8.1% v FY2021 v FY2021 v FY2021 Sales Revenue: $694.5M Net Profit Before Tax: $165.7m NetProfit Net ProfitAfter AfterTax: Tax:$122.0m $122.0m 800 180 120 120 $122.0m $122.0m $165.7m $112.9m $112.9m 600 $
Slide 4: Financial Highlights: Total Group Sales Growth
FY2022 FINANCIAL HIGHLIGHTS TOTAL GROUP SALES GROWTH FOR FY2022 11.5% Australian Original Exports Equipment Aftermarket 9.2% 17.4% 0.2% v FY2021 v FY2021 v FY2021 Australian Aftermarket Sales Export Sales ($millions) Original Equipment Sales ($millions) ($millions) 40 191 150 130 138 131 32 200 177
Slide 5: Financial Highlights: Fully Franked Dividends
DIVIDENDS FINANCIAL HIGHLIGHTS 70 FULLY FRANKED DIVIDENDS Total Dividends for FY2022 increased from 68.0 cps to 60 32.0 50 71.0 cps Cents per share 39.0 40 Dividend Payout Ratio stable at around 30 21.0 21.0 19.5 18.0 20 14.0 15.5 16.0 16.0 17.0 39.0 48% Final 29.0 Dividend 10 16.0 17.5 18.5 18.5 Da
Slide 6: FY2022 Profit & Loss Statement
FY2022 PROFIT & LOSS STATEMENT FINANCIAL HIGHLIGHTS A$000s FY2022 % sales FY2021 % sales CHANGE $ CHANGE % Comments TOTAL REVENUE 697,276 625,857 71,419 11.4% Materials and consumables used (305,129) 44% (278,878) 45% (26,251) (9.4%) Sales price increases offset inflation; stronger AUD to THB Employ
Slide 7: FY2022 Cash Flows
FY2022 CASH FLOWS FINANCIAL HIGHLIGHTS $84.6M $58.1M $50.3M $52.7M Cash flows from operations Payments for property, Fully Franked Dividends paid Net cash holdings plant and equipment in cash Cash flow from operations Property FY21 Final dividend 39.0 cps Net cash FY22 Interim dividend 39.0 cps $18.
Slide 8: Australian New Vehicle Sales FY2022 v FY2021
FY2022 v FY2021 AUSTRALIAN NEW VEHICLE SALES New Vehicle Sales FY2022 v FY2021 50k -6.5% Percentages indicate change from last year 5.0% 40k 30k 23.2% 2.1% 9.0% -56.5% 20k 21.7% 9.8% 13.5% 26.2% 34.6% 10k 0k Model Model changeover of the changeover of the Toyota Landcruiser Ford Ranger Mid-size SUVs
Slide 9: Number of New Vehicles Sold: Total SUV & 4WD Utility
FY2022 v FY2021 AUSTRALIAN NEW VEHICLE SALES 1,400,000 ARB’s 1,195,086 100% Australian 1,200,000 Aftermarket Total SUV & 4WD Utility (excl Compact SUVs) 1,102,055 Sales in FY2022 950,816 1,042,026 1,020,221 9.2% Number of New Vehicles Sold 1,000,000 80% % of Total Market New Vehicle 800,000 Sales 60
Slide 10: Australian Aftermarket and ARB Flagship Stores
Aftermarket sales increase of 9.2%, representing 53.8% of total sales 2 NT 17 74 ARB Stores in 10 WA 4 QLD Total Nationwide SA 21 30 44 NSW ARB Company Owned Stores ARB Branded Stores 17 VIC 3 TAS 35 30 25 New ARB Stores 20 34 15 RUTHERFORD, NSW SALE, VIC MELTON, VIC 10 KARRATHA, WA ARB FLAGSHIP STO
Slide 11: Exports
EXPORTS Export sales grew by 17.4% and now represent 38.7% of total sales ARB EXPORT SALES BY REGION ($ millions) Rest of World 18.8% Asia Pacific 4.1% Americas 27.0% 0 40 80 120 FY2022 FY2021 EXPORTS 11
Slide 12: Original Equipment Manufacturers
ORIGINAL EQUIPMENT MANUFACTURERS Overall OEM sales growth of 0.2% after a Sales to Original Equipment Manufacturers ($ millions) record 73.9% sales increase last year 8 #2 Major model launch OEM sales represent 7.5% of total sales #1 7 Major model launch 6 5 • OEMs stocked up for new models during:
Slide 13: Ford Update
FORD UPDATE 362136 207310 67213 People People People reached reached reached 6554 14723 3143 Interactions Engagements Likes 13
Slide 14: USA Update
USA UPDATE Texas DC Wheel Pros USA OEM Latin America acquired 4WP • Third US distribution centre • ARB is in direct • Positive engagement with • Latin American business communication with Wheel US OEMs continues to grow • 4,000 sqm warehouse Pros to support its business • Rivian business on-going •
Slide 15: Key Export Markets Update
KEY EXPORT MARKETS UPDATE • Core business impacted by three key challenges: • Pro-form remains a key contributor to ARB’s success in New Zealand – availability of pick-up vehicles and Australia for the canopy business – freight costs • Pro-form’s business has been impacted by significant outbound fr
Slide 16: Engineering / New Products
ENGINEERING / NEW PRODUCTS Product Innovation remains a core pillar for ARB’s continued competitive advantage 100+ Design & Production Engineers Engineering center of excellence 4+ ALL NEW PRODUCTS Investment in global engineering team: 1,000 sqm Long-term product development AU | NZ | USA | UK | TH
Slide 17: Forward Focus
FY23 FORWARD FOCUS Australian Aftermarket USA Business Challenges • Continued roll out of flagship stores • Management of new site in Texas • Global shortages of new vehicles • Product supply of LC300 and Ranger products • Broaden range for US platforms • Commodity prices and availability • Operatio
Slide 18: Forward Focus: Thai Factory Under Construction
Thai Factory under Construction FORWARD FOCUS Thai factory under construction is 83% complete and on schedule for December 2022 handover 18
Slide 19: Outlook
ARB 4X4 ACCESSORIES OUTLOOK The Company’s growth in FY2022 was achieved in a very challenging and uncertain global environment, particularly in the second half of the financial year. These conditions have persisted into the first half of the current financial year and it is not possible to provide f
Slide 20: Q&A
ARB 4X4 ACCESSORIES Q&A Pp —— @ (ARB-008
Slide 21: Disclaimer
ARB 4X4 ACCESSORIES DISCLAIMER This presentation has been prepared by ARB Corporation Limited (ARB). The information in this presentation is current as at 23 August 2022. This presentation is not an offer or invitation for subscription or purchase of securities or a recommendation with respect to an
Slide 22: Thank You
THANK YOU 22