Arb Corporation Limited · ASX:ARB
Arb — H1 FY2024 Earnings Presentation
24 slides from Arb's earnings presentation, Feb 20, 2024
Slide 1: 1H FY2024 Results Presentation
4X4 ACCESSORIES ~~ 1H FY2024 RESULTS PRESENTATION + 20 FEBRUARY 2024 Lachlan McCann Chief Executive Officer Pine a Damon Page org Chief Financial Officer 8 Company Secretary
Slide 2: Contents
FINANCIAL RESULTS 1H FY2024 CONTENTS (ARB) FINANCIAL RESULTS AUSTRLALIAN AFTERMARKET INTERNATIONAL ORIGINAL EQUIPMENT MANUFACTURERS PRODUCTS OUTLOOK
Slide 3: Financial Results: Sales & Profits
1H FY2024 FINANCIAL RESULTS SALES & PROFITS NET PROFIT BEFORE TAX: $72.5M UP 12.6% EXCLUDING TRUCKMAN ADJ SALES REVENUE: $341.5M UP 0.2% $350M $8om $300M $250M yom $200M ‘$150M “on $100M $50M $OM $om 1H FY 2024 1H FY 2023 1H FY 2024 1H FY 2023 1H sales performance flat with 0.2% growth. 1Q sales gro
Slide 4: Financial Results: Group Sales by Channel
1H FY2024 FINANCIAL RESULTS GROUP SALES BY CHANNEL 4X4 ACCESSORIES AUSTRALIAN AFTERMARKET EXPORT SALES ORIGINAL EQUIPMENT UP 3.7% DOWN 13.6% UP 53.8% $250M $30M $200M 25M $20M $150M $15M $100M $10M $50M $e $OM SOM 4H FY 2023 1H FY 2024 1H FY 2023 4H FY 2024 4H FY 2023 4H FY 2024 + The Australian Aft
Slide 5: Profit & Loss Statement
| 1H FY2024 FINANCIAL RESULTS PROFIT & LOSS STATEMENT Total Revenue 342,688 342,377 3n 0.1% Materials & consumables used (145,132) 42% (159,572) a7% 14,440 9.0% Improved margin: price increases, reduced freight & inflation Employee expenses (76,873) 23% (74,437) 22% (2,436) (3.3%) Increase in employ
Slide 6: Financial Results
1H FY2024 FINANCIAL RESULTS $51.3M Profit after tax Working capital stable Profit after tax converted to cash $18.7M Land & Buildings $7.4M Plant & Equipment 49% interest in Nacho LED LLC for US$2.0m Proven partner Start up developing lighting products 30% interest in ORW USA, Inc. for US$5.0m_ Prov
Slide 7: Dividends
1H FY2024 FINANCIAL RESULTS DIVIDENDS FULLY FRANKED DIVIDENDS (cents per share) AT 30% TAX RATE 80 Dividends fully funded from operating cash flows. Interim dividend 34cps. Dividend payout ratio 54.5% Key Dates: Record: 5 April 2024 Payment: 19 April 2024 DRP and BSP in operation with 2.0% discount.
Slide 8: Australian Aftermarket
Slide 9: Australian Aftermarket Retail Stores
1H FY2024 RESULTS AUSTRALIAN AFTERMARKET RETAIL STORES 4X4 ACCESSORIES Neon conten 5 Queensland The Company’s flagship store roadmap is NATIONWIDE Western ald well developed to accelerate new stores. Australia 10 ARB store upgrades to the flagship model ARB include Osborne Park WA and Canberra SED A
Slide 10: Australian Aftermarket Retail Stores
1H FY2024 RESULTS AUSTRALIAN AFTERMARKET RETAIL STORES JAYCO ADELAIDE ARB welcomes Jayco Adelaide in becoming an ARB Authorised Partner at its new dealership in West Beach, SA. ALBURY Nearing completion. Looking great. Trading out of corporate location. Expected completion Q2 cy2024. MORNINGTON Site
Slide 11: Fitting capacity continues to be a key challenge
1H FY2024 RESULTS Fitting capacity continues to be a key challenge for ARB, however gradual improvements to employee retention, skill development and total fitters are contributing to improved fitter productivity in recent months. « Fitter turnover well down in 1H + Increased retention and employee
Slide 12: Port disruption due to the industrial action
1H FY2024 RESULTS + Port disruption due to the industrial action in recent months had a material effect on revenue in 2 Fy2024. + The backlog of containers continues to be an operational challenge as our DCs process higher inbound inventory. + Key supplier issues dampened both domestic aftermarket a
Slide 13: International
Slide 14: Exports
1H FY2024 RESULTS EXPORTS ARB EXPORT SALES BY REGION Asia, NZ & Pacific EU, ME & Africa The Americas $OM $10M Export business generally hampered by increased interest rates, supply challenges and weakness in emerging markets. Conflicts around the world have made some markets difficult to operate in.
Slide 15: First New Zealand flagship store in Hamilton
1H FY2024 RESULTS ARB welcomes its first New Zealand flagship store in Hamilton, NZ. Opening March 2024. New Zealand remains a focus market for ARB and we continue to invest in its development.
Slide 16: USA Business
1H FY2024 RESULTS USA BUSINESS STRUCTURE SEATTLE RETAIL 4X4 ACCESSORIES + US business has been structured to + Seattle retail site remains on schedule + The Trailhunter program with Toyota USA + Business progressing well. address our two core sales channels for opening in @4 CY2024. remains on sched
Slide 17: ARB USA eCommerce site launched
1H FY2024 RESULTS ARB USA’s eCommerce site (www.arbusa.com) has « Shipped product to every US State launched successfully. Order intake, average order « Average 3 day shipping across US value and total revenue have been pleasing. ARB USA will continue to invest in site optimization and enhanced cont
Slide 18: Toyota Marketing
1H FY2024 RESULTS i TOYOTA MARKETING TovoTaHAS, (SN NATIONAL MARKETING CAM OA GC. FEATURING UNIQUE ARB CONTENT ‘© tacoma ON TRAILHUNTER MADE OF STEEL AND MODEL. PONTRINS SOUR RE 18
Slide 19: Original Equipment Manufacturers
1H FY2024 RESULTS ORIGINAL EQUIPMENT MANUFACTURERS () 4X4 ACCESSORIES OEM SALES OEM sales increased 53.8% on a YOY basis. A strong result for this business channel given recent declines in OEM. $30M 25M . Invoicing to Toyota USA for new contracts has not yet commenced. $20M Australian OEM business p
Slide 20: Products
Slide 21: Products
1H FY2024 RESULTS PRODUCTS EARTH CAMPER + Global interest in the ARB Earth Camper remains strong. * Quality challenges in the new build process has slowed the roll- out. + International orders have now been received and shipped in limited quantities. + Compliance for the US market progressing well.
Slide 22: Outlook
1H FY2024 RESULTS OUTLOOK + ARB’s Aftermarket order book remains strong. The Company has recently strengthened its fitter capacity and is accelerating its store development programme. ¢ ARB’s Export order book is holding at recent levels with positive signs. * The recent investment in ORW (US retail
Slide 23: Disclaimer
1H FY2024 DISCLAIMER (ARB) 4X4 ACCESSORIES This presentation has been prepared by ARB Corporation Limited (ARB). The information in this presentation is current as at 20 February 2024, This presentation is not an offer or invitation for subscription or purchase of securities or a recommendation with
Slide 24: Thank You