2024 AGM Presentation

• ARB Corporation Limited's (ARB) FY24 sales revenue reached A$693.2 million, with a 10-year compound annual growth rate (CAGR) of 8.8%.
• Profit after tax was A$102.7 million, representing a 10-year CAGR of 9.2%.
• A fully franked interim dividend of 34 cents per share was paid in April 2024, and a final dividend of 35 cents per share is to be paid on October 18, 2024.
• Australian aftermarket sales contributed 58.3% of total sales, up 5.4% year-on-year.
• Export sales decreased by 6.5%, primarily due to weakness in Asian markets.
• OEM sales increased by 40.5% to represent 8.6% of total sales.
• Net cash holdings increased to A$56.5 million.
• Significant investments were made in manufacturing, including new robotic welding cells and other capital equipment totaling A$9.2 million.
• ARB acquired a 50% stake in Off Road Warehouse (ORW) for US$30 million, and Poison Spyder for US$1 million.
• The company is expanding its engineering teams in Australia, Thailand, and the USA.
• New flagship stores are planned for FY25.
• Q1 FY25 saw a 6.5% sales growth, with growth in Australian Aftermarket and Export sales, but a decline in OEM sales.

Score: 7

Explanation: Overall positive sentiment due to strong financial results and strategic acquisitions, but tempered by challenges in certain markets and ongoing labor issues.

• Strong FY24 financial results with increased sales revenue and profit after tax.
• Growth in Australian aftermarket and OEM sales.
• Successful grand opening of new flagship stores.
• Significant investments in manufacturing and engineering.
• Acquisition of 4WP and Poison Spyder expanding market presence.
• Positive outlook for FY25 with improving trading conditions in key markets.
• Strong aftermarket order book.
• Increased export order book in Q1 FY25.
• Growth in Q1 FY25 sales.

• Decline in export sales, particularly in Asian markets.
• Challenges with labor shortages in manufacturing.
• Some issues with component design and build quality in Earth Camper initially.
• Slow start to new vehicle sales in the new financial year.
• Market conditions in the USA remain challenging.
• Decline in OEM sales in Q1 FY25.

• Continued weakness in Asian markets.
• Ongoing labor shortages in manufacturing.
• Potential challenges in integrating newly acquired businesses.
• Dependence on new vehicle sales.
• Economic pressures on the Australian economy.
• Competition in the automotive aftermarket industry.

ARB expects continued strong aftermarket order books, increased fitting output, new store development, and new product releases to offset lower vehicle deliveries. The acquisition of 4WP by ORW is anticipated to provide an uplift in ARB sales over time, with further sales growth expected in the US due to contracts with Toyota USA. Improving trading conditions are expected in key export markets, and OEM sales (excluding Toyota USA) are forecast to remain stable.

• ’Positive customer feedback, it is a great product.’ (Regarding Earth Camper)
• ’Investment in innovation & new product development remains a critical pillar of success for ARB.’
• ’The Board believes that the Company is well-positioned to achieve long-term success… through improved USA distribution… expansion of the Australian Aftermarket… increased distribution and manufacturing capacity… a pipeline of new product developments… and a well balanced global management team.’

ARB's performance reflects broader trends in the automotive aftermarket, with growth in certain segments like aftermarket parts and accessories, but challenges in others like exports due to global economic conditions. The company's acquisitions and strategic partnerships, such as the Ford Licensed Accessory program, position it to navigate these industry dynamics.

• Continued investment in manufacturing and process efficiencies.
• Expansion of engineering teams in the USA and Thailand.
• Opening of new flagship stores in FY25.
• Integration of MITS Alloy and 4WP into ARB's network.
• Expansion of the Midlothian, Texas distribution center.
• Launch of a new engineering center in the USA.
• Implementation of the new robotic trimming cell.
• Further sales growth in the US as a result of contracts with Toyota USA.

• 2004: Robert Fraser appointed as ARB's first Non-executive Director.
• 2008-2012: Lachlan McCann served as Managing Director for ARB's Thailand business.
• 2014: Damon Page joined ARB as Chief Financial Officer.
• 2015: Special dividend of 100 cps paid.
• July 2022: Lachlan McCann appointed Chief Executive Officer.
• September 30, 2022: Robert Fraser appointed Chairman of the Board.
• April 2024: Fully franked interim dividend of 34 cents paid.
• April 25, 2024: Isuzu x ARB press information released.
• July 2024: Dennis Horton assumed oversight of ARB's engineering operations.
• September 9, 2024: Bundaberg, QLD store opened.
• October 1, 2024: Small price increase implemented.
• October 12, 2024: Successful grand opening event in Mornington, VIC.
• October 17, 2024: Date of the Annual General Meeting (AGM) presentation.
• October 18, 2024: Date of the FY24 final dividend payment and completion of MITS Alloy acquisition and ORW acquisition.
• October 21, 2024: ORW begins trading under ORW management.
• December 2024: Anticipated launch of ARB's US R&D facility and opening of Kilsyth, VIC store and expansion of Midlothian, Texas distribution centre.
• Q2 FY25: Work to commence on ARB Thailand coating line.
• Q3 FY26: Anticipated completion of ARB Thailand coating line.
• FY25: Estimated opening of Mittagong, NSW store and new contracts with Toyota USA to be announced.