Techtronic Industries Co., Ltd. · HKEX:669
Techtronic Industries — H1 2022 Earnings Presentation
62 slides from Techtronic Industries's earnings presentation, Aug 10, 2022
Slide 1: 2022 1H Interim Results Presentation
2022 1H Interim Results Presentation August 10th, 2022
Slide 2: Frank Chan
Frank Chan
Slide 3: 2022 1st Half Results
2022 1st Half Results 2021 2022 Change Sales $6,394 $7,034 +10.0% Gross Profit $2,465 $2,747 +11.4% Gross Margin % 38.6% 39.1% +50 bps EBIT $572 $633 +10.7% % of sales 8.9% 9.0% Net Profit $524 $578 +10.4% % of sales 8.2% 8.2% EPS (cents) 28.62₵ 31.59₵ +10.4% Interim Dividend (cents) 10.94₵ 10.94₵ +
Slide 4: Dividend Per Share 1st Half
Dividend Per Share 1st Half (HK Cents) 95 85 +30% CAGR 53 45 38 28 20 16 13 10 5 7 3 4 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2021 2022 Chg. Interim Dividend (HK Cents) 85₵ 95₵ +11.8%
Slide 5: Sales, EBIT & Net Profit 1st Half Year Performance Trend
Sales, EBIT & Net Profit 1st Half 12 Year Performance Trend 14 Sales +13% CAGR 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 EBIT +19% CAGR 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Net Profit +25% CAGR 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 6: 2022 1st Half Segment Results
2022 1st Half Segment Results Segment 2021 2022 Change LC Sales $5,820 $6,562 +12.8% +14.9% Power Segment % 91.0% 93.3% Equipment Op Profit $565 $646 +14.4% % of sales 9.7% 9.8% Sales $574 $472 -17.8% -16.4% Segment % 9.0% 6.7% Floorcare & Cleaning Op Profit $6.8 ($13.3) N/A % of sales 1.2% -2.8%
Slide 7: 2022 1st Half Region Sales
2022 1st Half Region Sales Region 2021 2022 Change LC North America $4,886 $5,397 +10.5% +10.5% Region % 76.4% 76.7% Europe $1,019 $1,074 +5.4% +14.1% Region % 15.9% 15.3% Rest of World $489 $563 +15.1% +23.0% Region % 7.7% 8.0%
Slide 8: 2022 1st Half Income Statement
2022 1st Half Income Statement 2021 2022 Change Sales $6,394 $7,034 +10.0% Gross Profit $2,465 $2,747 +11.4% % of sales 38.6% 39.1% Selling, Distribution, & Advertising $1,031 $1,153 +11.9% Administrative Expenses $673 $737 +9.5% Research & Development $196 $232 +18.2% Total SG&A Expenses $1,900 $2,
Slide 9: 2022 1st Half Financial Position
2022 1st Half Financial Position 2021 2022 Change Non-current Assets $3,293 $4,196 +27.5% Current Assets $8,975 $9,322 +3.9% Current Liabilities $6,621 $6,608 -0.2% Net Current Assets $2,354 $2,714 +15.3% Long-term Liabilities $1,381 $1,861 +34.8% Equity $4,266 $5,049 +18.4%
Slide 10: 2022 1st Half Gearing Trend
2022 1st Half Gearing Trend 40.5%
Slide 11: 2022 1st Half Financial Figures
2022 1st Half Financial Figures 2021 2022 Change Inventory $4,471 $5,232 Days 136 138 +2 days Receivables $1,837 $2,060 Days 56 54 -2 days Payables $4,108 $4,066 Days 125 107 -18 days Net Working Capital $2,200 $3,226 % of Sales 18.3% 23.3% CAPEX $245 $229 -6.4% % of Sales 3.8% 3.3%
Slide 12: 2022 1st Half Debt Profile
2022 1st Half Debt Profile YE 2021 1H 2022 Change Cash Balance $1,874 $1,274 -32.0% Debt with Fixed Maturities $1,190 $1,484 +24.7% Working Capital Financing $2,018 $1,835 -9.1% Total Debt $3,208 $3,319 +3.5% Total Net Debt $1,334 $2,045 +53.3% Floating Rate 70% $2,258 63% $2,106 -6.7% Fixed Rate 30
Slide 13: Joe Galli
Joe Galli
Slide 14: Winston Churchill quote
“A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.” -Winston Churchill
Slide 15: Bob Myers quote on thinking about the future
“My job is to think about the future, even when the present is on fire.” -Bob Myers General Manager Golden State Warriors
Slide 16: 2022 1st Half Sales Growth
2022 1st Half Sales Growth 2021 2021 2022 2022 Sales Sales $6,394 $6,394 $7,034 $7,034 % Chg % Chg +10.0% +10.0% % Chg % Chg Local Local Currency Currency +12.1% +12.1%
Slide 17: 1st Half Sales Performance
1st Half Sales Performance +10.0% +52.0% $7.0B $6.4B $7.0B $6.4B +12.8% +8.7% $4.2B $4.2B $3.7B 2019 2020 2021 2022
Slide 18: FY Sales Performance/Estimate
FY Sales Performance/Estimate +Mid Single Digit +34.6% $13.2B +28.0% $9.8B +9.2% $7.7B 2019 2020 2021 2022 Est
Slide 19: 2022 1st Half Sales in Local Currency
2022 1st Half Sales in Local Currency Power Equipment Floorcare 93% 7% +14.9% -16.4%
Slide 20: 2022 1st Half Results
2022 1st Half Results 2021 2022 vs 2021 Sales $6,394 $7,034 +10.0% GM % 38.6% 39.1% +50 bps SGA % 29.7% 30.2% +45 bps EBIT $572 $633 +10.7% % of sales 8.9% 9.0% Net Profit $524 $578 +10.4% % of sales 8.2% 8.2% EPS (cents) 28.62₵ 31.59₵ +10.4%
Slide 21: 2022 1st Half Gross Margin
2022 1st Half Gross Margin 2021 2022 39.1% 38.6%
Slide 22: Gross Margin Performance
Gross Margin Performance 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 39.1% 38.6% 38.0% 37.6% 37.1% 36.6% 36.1% 35.6% 35.0% 34.0% 33.5% 32.9% 32.6% 31.7% 31.5%
Slide 23: Powerful Brands, Innovative Products, Exceptional People, Operational Excellence
POWERFUL BRANDS INNOVATIVE PRODUCTS EXCEPTIONAL PEOPLE OPERATIONAL EXCELLENCE
Slide 24: Disciplined SKU Management
DISCIPLINED SKU MANAGEMENT
Slide 25: 2022 1st Half Inventory
2022 1st Half Inventory 1H 2021 FY 2021 1H 2022 vs. Dec 21 Raw/Components $471 $602 $ 754 Days 14 17 20 +3 Days WIP $112 $61 $ 100 Days 3 2 3 +1 Days Finished Goods $3,888 $4,186 $4,378 Days 118 116 115 -1 Days Inventory $4,471 $4,850 $5,232 Days 136 134 138 +4 Days
Slide 26: 2022 1st Half CAPEX Spend
2022 1st Half CAPEX Spend $245M $229M % Sales 3.8% 3.3% 2021 2022
Slide 27: 2022 Free Cash Flow
2022 Free Cash Flow H1 FY 2021 -$0.7B -$1.0B CASH FLOW 2022 -$0.2B POSITIVE
Slide 28: 2022 1st Half Sales
2022 1st Half Sales +26%
Slide 29: 2022 1st Half Sales by Region
2022 1st Half Sales NORTH +25% AMERICA +23% +% EUROPE REST +35% +% OF WORLD
Slide 30: Pro Cordless Market Share
PRO CORDLESS 1 Market Share #
Slide 31: Cordless Market Share
CORDLESS # 1 Market Share # 1 Market Share # 1 Market Share
Slide 32: Cordless Products
CORDLESS 144 Products 259 Products 13 Products
Slide 33: 4th Generation Power & Performance
4TH GENERATION POWER & PERFORMANCE +20% +60% +30% 1ST GEN 2ND GEN 3RDGEN 4THGEN 2013 2015 2018 2022
Slide 34: 4th Generation 1/2" Drill Driver & Hammer Drill
4TH GENERATION 1/2” DRILL DRIVER & HAMMER DRILL
Slide 35: 4th Generation 1/4" Hex Impact Driver
4TH GENERATION 1/4” HEX IMPACT DRIVER
Slide 36: Utility Fencing Stapler
UTILITY FENCING STAPLER
Slide 37: 6-1/2" Plunge Track Saw
6-1/2” PLUNGE TRACK SAW
Slide 38: Top Handle Chainsaw
TOP HANDLE CHAINSAW
Slide 39: #1 Pro Cordless Platform
CiEf=] #1 PRO CORDLESS PLATFORM
Slide 40: 3rd Generation Power & Performance
3RD GENERATION POWER & PERFORMANCE +30% +15% 1ST GEN 2ND GEN 3RDGEN 2013 2018 2022
Slide 41: 3rd Generation 1/2" Drill Driver & Hammer Drill
3RD GENERATION 1/2” DRILL DRIVER & HAMMER DRILL
Slide 42: 3rd Generation 1/4" Hex Impact Driver
3RD GENERATION 1/4” HEX IMPACT DRIVER
Slide 43: #1 Market Share Leader
: imizh #1 MARKET SHARE LEADER ie es Sear oe
Slide 44: #1 Cordless Light Equipment Platform
#1 CORDLESS LIGHT EQUIPMENT PLATFORM
Slide 45: Packout Modular Storage System
PACKOUT MODULAR STORAGE SYSTEM
Slide 46: System
SYSTEM
Slide 47: DIY / Consumer
DIY / CONSUMER
Slide 48: System: USA Household Penetration
SYSTEM USA Household Penetration: 42%
Slide 49: #1 Market Share in DIY Cordless
SYSTEM #1 Market Share in DIY Cordless
Slide 50: Same Battery System Since 1996
Same Battery System Since: 1996
Slide 51: Ryobi ONE+ System
RYOBIONEE SYSTEM — 1ss6 #000 #002 — 2007 2012 iLithium alLithium ONE = 18V 18V 1 _ i _ 7 i f {rT ir 4 | I "| CJ J i 2013 e014 eo1s 2 e2o2o M2021 MF eoeze | alLithium+ HP 18Virrnum
Slide 52: Ryobi ONE+ System Battery Evolution
RYOBIONEE SYSTEM 2012 alLithium-+ 18V i .¥ € = yx — e ° : Fi 73 7 #-# IS eo ae F 188s = 2aoo ONE ER wiLithium 126 f@ & DZ MH ocwrst 2014 eo1s 2 2020 2 2021 ulLithium+ HP 18Virrmum ONER Hi 14 ale
Slide 53: System: Power Tools, Outdoor, Cleaning
SYSTEM POWER TOOLS OUTDOOR CLEANING 162 84 21
Slide 54: Battery Powered Outdoor Products
BATTERY POWERED OUTDOOR 84 + 81 Products Products
Slide 55: Battery Powered Outdoor: #1 in Market Share
BATTERY POWERED OUTDOOR #1 in Market Share
Slide 56: Ryobi ONE+ System Outdoor Products
RYOsl QONEE SYSTEM 84 Outdoor Products ae
Slide 57: Ryobi 40V System Outdoor Products
RYOsl A2AOV SYSTEM 81 Outdoor Products
Slide 58: Whisper Series Outdoor Products
= WHISPER SERIES. 20 Outdoor Products |
Slide 59: Zero Turn Rider
ZERO TURN RIDER
Slide 60: Floorcare & Cleaning 1st Half Sales
Floorcare & Cleaning 1st Half Sales +22.4% $574M -16.4% +13.6% $472M -12.0% $458M $406M 2019 2020 2021 2022 Growth in Local Currency
Slide 61: Floorcare & Cleaning Family
rYOsIi. FLEOORCAREFRMaCEEANING FAMILY
Slide 62: Slide 62
Techtronic Industries Company — H1 2022 Earnings Presentation on 6ix