Techtronic Industries Co., Ltd. · HKEX:669
Techtronic Industries — H1 2004 Earnings Presentation
24 slides from Techtronic Industries's earnings presentation, Aug 12, 2004
Slide 1: 2004 Interim Results Announcement
2004 Interim Results Announcement 12th August 2004
Slide 2: Agenda
Agenda £ Key achievements Mr. Horst Pudwill (Chairman & CEO) £ Financial review Mr. Frank Chan (Group Executive Director) £ Business review Mr. David Butts (Senior Vice President) £ Outlook Mr. Horst Pudwill (Chairman & CEO) 2004 interim results announcement 1
Slide 3: Key achievements
Key achievements For the 6 months ended 30th June, 2004 Mr. Horst Pudwill (Chairman & CEO) 2004 interim results announcement 2
Slide 4: Key achievements
Key achievements 6,724 4,815 £ Record results with strong performance across all divisions § Turnover increased by 40% to HK$6,724m § Net profit grew 42% to HK$299m 1H03 1H04 § EPS increased by 38% to HK 22.49 cents Turnover (HK$m) 299 £ High double-digit revenue growth across all lines of business
Slide 5: Financial Review
Financial Review For the 6 months ended 30th June, 2004 Mr. Frank Chan (Group Executive Director) 2004 interim results announcement 4
Slide 6: Highlights
Highlights For the 6 months ended 30th June, 2004 1H04 1H03 Changes (HK$m) (HK$m) (%) Turnover 6,724 4,815 39.7 Net profit 299 211 41.8 Basic EPS (HK cents) 22.49 16.28 38.2 DPS (HK cents) 4.500 3.625 24.1 Book value per share (HK$) 2.06 1.56 32.1 2004 interim results announcement 5
Slide 7: Profitability
Profitability For the 6 months ended 30th June, 2004 1H04 1H03 Changes HK$m HK$m % Gross profit 2,004 1,295 54.8 Gross margin (%) 29.8 26.9 Operating profit 419 293 43.0 Operating margin (%) 6.2 6.1 Net profit 299 211 41.8 Net margin (%) 4.4 4.4 2004 interim results announcement 6
Slide 8: Analysis by product
Analysis by product For the 6 months ended 30th June, 2004 Sales contributions by product Power Solar powered, equipment Floor care laser & electronic 70% products appliances measuring products (72%) Revenue ( HK$m) 4,712 1,717 295 Change (%YoY) 35.9 53.1 30.6 Result ( HK$m) 294 80 59 26% Change (%Y
Slide 9: Analysis by market location
Analysis by market location For the 6 months ended 30th June, 2004 Sales contributions by market location North America Europe RoW 78% Revenue ( HK$m ) 5,259 1,084 381 (79%) Change (%YoY) 39.0 41.4 44.4 Result ( HK$m ) 366 66 1 Change (%YoY) 54.8 46.9 -91.3 Margin (%) - 1H04 7.0 6.1 0.4 16% Margin (
Slide 10: Sales contribution by type
Sales contribution by type For the 6 months ended 30th June, 2004 OEM & private label 26% (41%) Own & licensed brands 74% (59%) (% ) – 1H03 figures 2004 interim results announcement 9
Slide 11: Financial position
Financial position YR 2003 (HK$m) 1H04 1,984 Non-current assets 2,120 7,662 Current assets 6,547 5,678 Current liabilities 4,398 1,984 Net current assets 2,149 1,409 Long-term liabilities 1,457 2,513 Shareholders' funds 2,748 1.35 Current ratio 1.49 Net cash Gearing ratio Net cash 2004 interim resul
Slide 12: Cash and borrowing profile
Cash and borrowing profile (HK$m) Zero coupon convertible bonds issued Short-term borrowing on 8th July 2004 Long-term borrowing Total amount : US$140m Cash - Five year due 8th July 2009 826 - Initial conversion price of HK$16.56/ share 549 - Full conversion of shares represent 4.93% 498 2,586 of ex
Slide 13: Healthy working capital position
Healthy working capital position Turnover days 1H04 1H03 Inventory (1) 68 78 Trade receivables (2) 48 50 Trade & other payables (3) 53 63 Bills payables (4) 60 55 Net debt to equity Net cash 53.1 Interest coverage (x) 10.4 8.2 (1) Average inventory / sales x 365 (2) Average trade receivables / sales
Slide 14: Business Review
Business Review Mr. David Butts (Senior Vice President) 2004 interim results announcement 13
Slide 15: Power equipment products
Power equipment products £ Strong organic growth for the Ryobi consumer power tool line £ RIDGID® professional power tools sold well on its merit of innovation, durability and quality £ Silver 2004 Industrial Design Excellence Award (IDEA) for TTI’s design strategy used in the line of 35 RIDGID® bra
Slide 16: Outdoor power equipment
Outdoor power equipment £ The launch of Ryobi outdoor products in North America exceeded expectations £ Homelite business saw aggressive revenue growth in North America with strong demand and improved supply chain management £ Ryobi outdoor products sold very well in Europe £ We are expanding the pr
Slide 17: Floor care appliances
Floor care appliances £ Royal operation continued making progress as it gained new product listings at its major retail customers £ Successful German business (reached No. 2 market position) £ Excellent growth for Vax as existing inventory was cleared and new models jointly developed with Royal were
Slide 18: Solar powered, laser & electronic measuring products
Solar powered, laser & electronic measuring products £ Strong growth in both revenue and earnings with improved margins £ Expansion continues in all product categories £ Our recent investment in technology enables us to respond more rapidly to the market 2004 interim results announcement 17
Slide 19: Operation
Operation Logistics and customer service £ Remained focused on improving the inventory management £ In North America, value store-level service programmes with our retail partner help boost sales Production and development £ Spent HK$165m in R&D (2.5% of sales) £ Completed the restructuring of Royal
Slide 20: Outlook
Outlook Mr. Horst Pudwill (Chairman & CEO) 2004 interim results announcement 19
Slide 21: Growth drivers
Growth drivers £ Power tools : expansion of product categories under Ryobi and in the professional segment with RIDGID® £ Outdoor power equipment : continue to strengthen the product platforms of both Ryobi and Homelite £ Floor care : expand product range, promote brand awareness and efficiency gain
Slide 22: Outlook
Outlook £ TTI is well positioned to deliver high growth results for 2004 £ Our expansion momentum will be driven by further product and market diversification £ We will strengthen our position as a top global player in all our lines of businesses 2004 interim results announcement 21
Slide 23: Thank you
Thank you
Slide 24: Disclaimer
Disclaimer Disclaimer This presentation includes forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Changes in the following important factors, among others, could cause Techtronic Industries Co. Ltd.’s actual resu
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