Arb Corporation Limited · ASX:ARB
Arb — FY2023 Earnings Presentation
31 slides from Arb's earnings presentation, Aug 22, 2023
Slide 1: FY2023 Full Year Investor Presentation
Lachlan McCann - Chief Executive Officer Damon Page - Chief Financial Officer & Company Secretary 22 August 2023
Slide 2: Contents
CONTENTS FINANCIAL HIGHLIGHTS NEW VEHICLE SALES SALES PRODUCTS & OPERATIONS OUTLOOK
Slide 3: Financial Highlights
Slide 4: Financial Highlights
FY23 FINANCIAL HIGHLIGHTS SALES REVENUE SALES REVENUE: $671.2M DOWN 3.4% $750M erm s6231M $500M gacs.am 7 i $0M ; Fv2020 Fv2021 Fy2022 ——FY2023, + Sales CAGR of #13.0% from FY20 (i.e., consolidation of last two years’ growth). + Growth achieved in Australian Aftermarket . + Declines in Exports (pred
Slide 5: Financial Highlights: Total Group Sales by Channel
FY23 FINANCIAL HIGHLIGHTS TOTAL GROUP SALES BY CHANNEL AUSTRALIAN AFTERMARKET SALES REVENUE: $383.5M UP 2.6% $383.5 $400M $373.8 $342.2M $300m _S™ $200M $100M $0M Fv2020 F202 Fy20z2 Fv2023 + Represents 57.2% of total sales (FY22: 53.8%). + Growth of 5.2% excluding the decline in Thule branded produc
Slide 6: Financial Highlights: Fully Franked Dividends
FY23 FINANCIAL HIGHLIGHTS FULLY FRANKED DIVIDENDS (cents per share) AT 30% TAX RATE 75 FY2013 FY2014 «-FY2015_ «= FY2016- «=~ FY2017_—«—-FY2018 = FY2019 * FY2015 excludes $1.00 special dividend paid that year FY2020 FY2021 FY2022 FY2023 fl Interim dividend ll Final dividend Dividends fully funded fr
Slide 7: Profit & Loss Statement
FY23 PROFIT & LOSS STATEMENT FINANCIAL HIGHLIGHTS 4X4 ACCESSORIES A$000s FY23 % SALES | FY22 | %SALES| $CHANGE | % CHANGE | COMMENTS Sales and other revenue 675,037 697,276 (22,239) (3.2%) Reversal of Truckman contingent consideration 13,673 = 13,673 100.0% (i) As reported at December 2022 Total Rev
Slide 8: Cash Flow
FY23 CASH FLOW ARB $ 8 8 . 5 M $ 21 . 6 M FY22 Final dividend 39.0 cps FY23 Interim dividend 32.0 cps Profit after tax Property Fully franked @ 30% tax rate ta weaker AUD ey inflaton $ 1 9g 0 M Net cash down $7.8m Inventory volumes decreased G DRP & BSP takeup of 15% New product ranges introduced Pl
Slide 9: 4x4 Accessories
4X4 ACCESSORIES
Slide 10: Australian New Vehicle Sales
FY23 AUSTRALIAN NEW VEHICLE SALES Number of Vehicles sold (000s); Percentage change FY23 v FY22 60k 30.1% Improved vehicle supply in 2H FY23 compared with 1H FY23. Consistency of supply by make & model remained a challenge. Healthy volumes of 4x4 Ford Ranger and Toyota HiLux a highlight. Healthy rec
Slide 11: Sales
Slide 12: Australian Aftermarket Distribution
FY23 AUSTRALIAN AFTERMARKET DISTRIBUTION ARB STORES IN TOTAL NATIONWIDE ARB COMPANY OWNED STORES ARB BRANDED STORES STOCKISTS AND INDEPENDENT RESELLERS Northern Territory 2 Western Australia 10 South Australia 4 Queensland Independent ARB stores and stockist resellers ARB company owned stores ARB's
Slide 13: Australian Aftermarket
FY23 AUSTRALIAN AFTERMARKET Geprccoveny §=@0D) TouRiNG y LINXes9 ED Slide Kitchen EMU BASE RACK AIRLOCKERES G5) FRONTIERTANK AIR Zero 3
Slide 14: Australian Aftermarket Sales & Business Development
FY23 AUSTRALIAN AFTERMARKET SALES & BUSINESS DEVELOPMENT Short to medium term flagship store roadmap well developed to accelerate new stores. Store development programme to accelerate following delays resulting from building costs and council permit approvals in FY23. FYSHWICK, ACT ALBURY, NSW Avera
Slide 15: Australian Aftermarket
FY23 AUSTRALIAN AFTERMARKET Order backlog remains at Fitting capacity continues to be a key challenge within ARB and historically high levels. the broader distribution network and is constraining revenue. : Increasing productivity of : Selective working current workforce through targeted training, g
Slide 16: Australian Aftermarket Ford Partnership
FY23 AUSTRALIAN AFTERMARKET FORD PARTNERSHIP Program uptake has exceeded both Ford and ARB's expectations. (ARB Social media and retail consumer engagement with collaboration remains a highlight. TWO ICONIC BRANDS HAVE JOINED FORCES TO BRING AN INDUSTRY-LEADING VEHICLE Working with Ferd engincerings
Slide 17: Original Equipment Manufacturers
FY23 ORIGINAL EQUIPMENT MANUFACTURERS 4X4 ACCESSORIES OEM SALES ($M) * ~) Overall OEM sales declined 18.5% on a YOY basis. However 2H FY23 sales increase 19.7% on 1H FY23 and 7.6% over 2H FY22. 20 OEM sales represented 6.3% of total FY23 sales. New projects typically have a two-year to four- year de
Slide 18: USA Export Update
FY23 « Challenging year with the continued disruption to ARB USA's channel partners. « Ongoing changes to 4WP store ownership. Disruption in this sales channel. « Various options being considered to improve access for end users to ARB products. « Long-term outlook for the US business remains positiv
Slide 19: USA ARB
FY23 USA ARB 4X4 ACCESSORIES + Halo model Toyota Tacoma, peer to TRD Pro. + Focus on USA overlanding market. + All parts are factory fitted. + Trailhunter vehicle complemented in dealership with 40+ ARB AAP (Toyota approved, dealer supplied). accessories to allow customers to up-fit their Toyota veh
Slide 20: FY23 Export USA Update
a ea FY23,EXPORT USA UPDATE PARTNERSHIP WITH FORD USA CONTINUES TO GROW + Revenue from Ford program growing. Ford USA has become a key contributor to ARB USA's sales performance. + New model Ford Ranger due for release in the US 1H FY24. + ARB has designed and Ford has validated in excess of 15 vehi
Slide 21: FY23 Export Key Export Market Update
| FY23 EXPORT KEY EXPORT MARKET UPDATE EUROPE UK -TRUCKMAN NEW ZEALAND MONGOLIA Z ‘ll i i am Mi in mite at al 1HFY2022 2HFY2022 1HFY2023 2HFY2023 + ARB's European business + Sales at Truckman in the UK recovered + The Proform business in New Zealand « Mongolia experiences days during continued its p
Slide 22: F i Hi v : @ CTS di
F i Hi v : @ CTS di
Slide 23: Product
FY23 PRODUCT jis tlll ‘i TU = l wt it mm iil Earth Campers have been sold to end users in limited numbers. Careful ramp-up of both production and supply to market - Australia only at this time. Earth Camper will debut in the USA at SEMA in late October 2023. Overwhelmingly positive market response t
Slide 24: Product ARB
FY23 PRODUCT ARB 4X4 ACCESSORIES © ARB Earth Camper
Slide 25: ARB Engineering
FY23 ARB ENGINGEERING + Low-profile tub rack. + Aluminium tread plate material. . + Unique extrusion rail design. . « Unique dovetail design. + Increased load capacity. + Accessory carrying solution. + Released in May 2023. ; + 380kg static and 150kg dynamic + Additional comfort. + Extremely flexibl
Slide 26: Market Update
FY23 MARKET UPDATE Us Continuing to reinforce the importance of safety leadership, business safety plans, product safety and vehicle compliance in global markets. © Providing career opportunities to over 2,070 people globally i Partnering with global OEMs and working towards compliance of accessorie
Slide 27: Market Update
FY23 MARKET UPDATE REGISTERED USERS COURSES COURSE COMPLETIONS COMPLETION OF (OVERALL) SAFETY MODULES 1. Safe Hoist Use 2. Material Handling Safety Equipment 3. Spring Compressor
Slide 28: ARB 4x4 Accessories Outlook
ARB 4x4 ACCESSORIES OUTLOOK The Company's outlook remains positive with ongoing healthy demand for ARB's products, improving new vehicle supply around the world, stronger gross margins and new products recently and soon to be released to market. The Board anticipates sales and profits to grow in the
Slide 29: Q&A
Slide 30: Disclaimer
FY23 DISCLAIMER (ARB) 4X4 ACCESSORIES This presentation has been prepared by ARB Corporation Limited (ARB). The information in this presentation is current as at 22 August 2023. This presentation is not an offer or invitation for subscription or purchase of securities or a recommendation with respec
Slide 31: Thank You