Arb Corporation Limited · ASX:ARB
Arb — Investor Presentation (February 2022)
20 slides from Arb's investor presentation, Feb 22, 2022
Slide 1: H1 FY22 Financial Result
H1 FY22 FINANCIAL RESULT Robert Fraser Non-executive Director Chairman of the Audit & Risk Committee Damon Page Chief Financial Officer & Company Secretary 22 FEBRUARY 2022
Slide 2: Table of Contents
TABLE OF CONTENTS 3 Financial Highlights 8 New Vehicle Sales 10 Sales Categories 14 Operations 17 Outlook
Slide 3: H1 FY22 Financial Highlights
H1 FY22 FINANCIAL HIGHLIGHTS Sales Net Profit Net Profit Revenue Before Tax After Tax 26.5% 27.6% 27.6% Sales Revenue: $359.2M Net Profit Before Tax: $92.0M Net Profit After Tax: $68.9M 400 100 80 $359.2M 80 $92.0M 300 60 $68.9M $283.9M 60 $72.1M $54.0M 200 40 40 100 20 20 0 0 0 H1 FY21 H1 FY22 H1 F
Slide 4: Financial Highlights: Sales Growth by Channel
H1 FY22 FINANCIAL HIGHLIGHTS Overall Sales Growth Australian Exports Original Aftermarket 26.5% Equipment 15.6% 39.9% 50.6% Australian Aftermarket Exports Original Equipment 59% % of Group Sales 39% % of Group Sales 9.0% % of Group Sales 58% $283.9M $72.1M $54.0M 57% 58.1% 38% 38.4% 8.5% 56% 8.5% 37
Slide 5: Financial Highlights: Dividends
DIVIDENDS FINANCIAL HIGHLIGHTS Interim dividend of 39.0 cps declared 70 FULLY FRANKED DIVIDENDS for FY22 60 34.5% 50 39.0 Dividend Cents per Share Payout Ratio 40 increased from 43% to 30 18.0 19.5 21.0 21.0 46% 17.0 20 15.5 16.0 16.0 39.0 14.0 29.0 H1 FY21 interim 10 17.5 18.5 18.5 dividend of 29 c
Slide 6: H1 FY22: Profit & Loss Statement
H1 FY22: PROFIT & LOSS STATEMENT FINANCIAL HIGHLIGHTS A$000s H1 2022 % sales H1 2021 % sales CHANGE $ CHANGE % Comments TOTAL REVENUE 360,663 285,019 75,644 26.5% Materials and consumables used (151,891) 42% (125,700) 44% (26,191) (20.8%) Improvement via stronger AUD and volume driven recoveries Emp
Slide 7: H1 FY22: Cash Flows
H1 FY22: CASH FLOWS FINANCIAL HIGHLIGHTS $28.6M $27.0M $25.4M $58.3M Cash flows from operations Payments for property, plant Dividends paid Net cash holdings and equipment Cash flow from operations Property Net cash Final fully franked dividend of $29.5M $12.6M 39.0 cps. $26.5M Inventories increased
Slide 8: Australian New Vehicle Sales
H1 FY22 v H1 FY21 AUSTRALIAN NEW VEHICLE SALES New Vehicle Sales H1 FY22 v H1 FY21 25K 10.7% Percentages indicate change from last period Total New Vehicles 20K 0.7% Sold 15K 18.4% 1.6% 10K 29.9% -38.5% -66.7% 34.0% 28.3% 64.3% 52.8% 40.1% 5K ARB’s Car Parc 0K 1.7% Sales decline in Toyota Landcruise
Slide 9: Number of New Vehicles Sold
H1 FY22 v H1 FY21 AUSTRALIAN NEW VEHICLE SALES New Vehicle Sales 589,564 600,000 547,589 1.6% Total SUV & 4WD Utility (excl Compact SUVs) 508,401 100% 482,363 482,363 500,000 474,553 Number of New Vehicles Sold ARB’s Target 80% Vehicles % of Total Market 400,000 50.5% 50.6% 60% 1.7% 300,000 46.5% 48
Slide 10: Aftermarket sales increase of 15.6% now representing 53.1% of total sales
Aftermarket sales increase of 15.6% now representing 53.1% of total sales 2 17 NT QLD 72 ARB Stores in 10 Total Nationwide WA 20 4 NSW 29 43 SA 16 ARB Company ARB Branded Owned Stores Stores 3 VIC TAS 35 30 31 25 20 15 29 31 New ARB ARB FLAGSHIP 23 Stores 10 SALE, VIC STORES IN TOTAL 15 5 10 KARRATH
Slide 11: Exports
EXPORTS Export sales grew by 39.9% and now represent 38.4% of the business ARB EXPORT SALES BY REGION NTH & STH AMERICA 22.0% ME, EU, UK & AFRICA 68.7% ASIA, NZ & PACIFIC 37.1% $0M $20M $40M $60M H1 FY21 H1 FY22 EXPORTS 11
Slide 12: Original Equipment Manufacturers
OEM sales increase of 50.6% now representing 8.5% of total sales New Vehicle New Sales Products H1 FY22 growth in Australia reflects OEMs Targeting and developing relationships stocking up in preparation of new vehicle with OEMs internationally. model launches and the addition of new business. Sales
Slide 13: Ford Relationship
FY22 FORD RELATIONSHIP • The Ford Licensed Accessories by ARB program (FLA) commenced in October 2021 FORD WEBSITE • The Ford website promotes and offers an extensive range of “Ford has joined • Ford Motor Company in the USA and ARB entered into a ARB products forces with ARB to strategic partnershi
Slide 14: Head Office Redevelopment
HEAD OFFICE REDEVELOPMENT OPERATIONS UPDATE INVESTMENT $20M Stage 1 Stage 2 Stage 3 Stage 4 Front Car Engineering Corporate New Retail Park /R&D Building Head Office Showroom 1,000 m² 3,600 m² 500 m² Late 2022/ Late 2023/ Completed Early 2022 Early 2023 Early 2024 14
Slide 15: Ora Thai Factory
ORA 4 THAI FACTORY OPERATIONS UPDATE 36,000 sqm under roof INVESTMENT • Increased manufacturing capacity to facilitate growth and new products $27m • Continued focus on efficiencies • Timing of overhead recoveries Manufacturing • Managing rising costs 15
Slide 16: Forward Focus
FY22 FORWARD FOCUS Australian Aftermarket USA Business Challenges • Global shortages of new vehicles • Successful Ford partnership • • Continued roll out of flagship stores Commodity prices and availability • Broaden range for US platforms • • Development of stockist network Global logistics and pri
Slide 17: Outlook
ARB 4X4 ACCESSORIES OUTLOOK The Company maintains a positive outlook based on a strong customer order book, improved inventory levels and new products that are yet to be released to market. However, the flow on impacts of COVID-19, including disruptions to supply chains, shipping networks, retail op
Slide 18: ARB 4x4 Accessories Q&A
ARB 4X4 ACCESSORIES (ARB) 4X4 ACCESSORIES
Slide 19: Disclaimer
ARB 4X4 ACCESSORIES DISCLAIMER This presentation has been prepared by ARB Corporation Limited (ARB). The information in this presentation is current as at 22 February 2022. This presentation is not an offer or invitation for subscription or purchase of securities or a recommendation with respect to
Slide 20: Thank You
ARB 4X4 ACCESSORIES THANK YOU