Slide 1: 2017 Annual Results Presentation
2017 Annual Results Presentation March 14, 2018
Slide 2: Frank Chan
Frank Chan
Slide 3: 2017 Full Year Results
2017 Full Year Results (US$ m) 2016 2017 Change Sales $5,480 $6,064 +10.6% Gross Profit $1,985 $2,226 +12.1% Gross Margin % 36.2% 36.7% +50 bps EBIT $450 $519 +15.3% % of sales 8.2% 8.6% Net Profit $409 $470 +15.0% % of sales 7.5% 7.8% EPS (cents) 22.32₵ 25.66₵ +15.0% Final Dividend (HK cents) 30.00
Slide 4: Sales and EBIT 7 Year Performance Trend
Sales and EBIT 7 Year Performance Trend ($US m) Sales 6,064 +9% CAGR 5,480 5,038 4,753 4,300 3,667 3,852 2011 2012 2013 2014 2015 2016 2017 EBIT +15% CAGR 519 450 400 351 304 260 219 2011 2012 2013 2014 2015 2016 2017
Slide 5: 2017 Segment Results
2017 Segment Results (US$ m) 2016 2017 Change Segment Sales $4,470 $5,138 +14.9% Power Segment % 81.6% 84.7% Equip. Op Profit $430 $512 +18.9% % of sales 9.6% 10.0% Sales $1,010 $926 -8.3% Floorcare & Segment % 18.4% 15.3% Appliance Op Profit $20 $7 -62.4% % of sales 2.0% 0.8%
Slide 6: 2017 Region Sales
2017 Region Sales (US$ m) 2016 2017 Change Region North $4,161 $4,626 +11.2% America Region % 75.9% 76.3% Europe $889 $919 +3.3% Region % 16.2% 15.1% ROW $430 $519 +20.8% (Rest of World) Region % 7.9% 8.6%
Slide 7: 2017 Income Statement
2017 Income Statement (US$ m) 2016 2017 Change Sales $5,480 $6,064 +10.6% Gross Profit $1,985 $2,226 +12.1% % of sales 36.2% 36.7% Selling, Distribution, & Advertising $794 $925 +16.5% Administrative Expenses $598 $624 +4.2% Research & Development $147 $163 +11.1% Total SG&A Expenses $1,540 $1,712 +
Slide 8: 2017 Financial Position
2017 Financial Position (US$ m) 2016 2017 Change Non-current Assets $1,923 $1,964 +2.2% Current Assets $3,197 $3,634 +13.7% Current Liabilities $2,070 $2,145 +3.7% Net Current Assets $1,128 $1,489 +32.0% Long-term Liabilities $652 $712 +9.3% Equity $2,400 $2,741 +14.2%
Slide 9: 2017 Gearing Trend
2017 Gearing Trend 110.0% 100.0% 104.3% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% -0.5% -10.0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 10: 2017 Key Financial Figures
2017 Key Financial Figures (US$ m) 2016 2017 Change Inventory $1,296 $1,467 Days 86 88 +2 days Receivables $935 $1,106 Days 62 67 +5 days Payables $1,331 $1,574 Days 89 95 +6 days Net Working Capital $900 $999 % of Sales 16.4% 16.5% Cash Balance $805 $864 +7.3% CAPEX $190 $205 +7.8%
Slide 11: 2017 Debt Profile
2017 Debt Profile (US$ m) 2016 2017 Change Cash Balance $805 $864 +7.3% Debt with Fixed Maturities $554 $564 +1.8% Working Capital Financing $375 $285 -24.0% Total Debt $929 849 -8.6% Total Net Debt $124 -$15 -111.8% Floating Rate 100% $929 88% $744 -19.9% Fixed Rate 0% $0 12% $105 N/A LT Debts - du
Slide 12: Joe Galli
Joe Galli
Slide 13: 2017 Full Year Sales
2017 Full Year Sales (US $m) 2016 2017 Sales $5,480 $6,064 % chg +10.6%
Slide 14: 2017 Sales
2017 Sales Floorcare 15% 18% Power Equipment 85% +14.9% -8.3% % Reported Growth % Reported Growth
Slide 15: 2017 Full Year Results
2017 Full Year Results (US $m) 2016 2017 Change Sales $5,480 $6,064 +10.6% Gross Margin % 36.2% 36.7% +50 bps EBIT $450 $519 +15.3% % of sales 8.2% 8.6% Net Profit $409 $470 +15.0% % of sales 7.5% 7.8%
Slide 16: Gross Margin Trend
Gross Margin Trend 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 36.7% 36.2% 35.7% 35.2% 34.2% 33.5% 32.6% 32.2% 31.3% 30.8% 8 years 9 years of Gross of Gross Marginimprovement Margin improvement
Slide 17: 2017 Working Capital
2017 Working Capital (US$ m) 2016 2017 Change Inventory $1,296 $1,467 Days 86 88 +2 days Receivables $935 $1,106 Days 62 67 +5 days Payables $1,331 $1,574 Days 89 95 +6 days WC % of Sales +16.4% +16.5% 2017 Free Cash Flow $334M
Slide 18: 2017 Productivity Progress
2017 Productivity Progress Change +10.6% Sales Headcount +6.7%
Slide 19: 2017 Sales
2017 Sales +21.7% % Reported Growth
Slide 20: Global Milwaukee Sales Growth %
Global Milwaukee Sales Growth % +21.7% 20.9% 5 YR CAGR +19.8% +17.9% +27.4% +18.1% 2012 2013 2014 2015 2016 2017 8 years 9 years of Gross of Gross Marginimprovement Margin improvement Note: Results based on actual rate
Slide 21: 2017 Sales Growth
2017 Sales Growth REGION % Growth NA +20.5% Europe +23.7% ANZ +33.6% ROW +24.0%
Slide 22: Global Served Market – 2022
Global Served Market – 2022 $50B PRO DIY Source: Techtronic Industries Co. Ltd. Internal Estimate
Slide 23: Served Market - 2022
Served Market - 2022 $50B Residential Construction Source: Techtronic Industries Co. Ltd. Internal Estimate
Slide 24: Next Generation Fuel Drills & Impact Driver
NEXT GENERATION FUEL DRILLS & IMPACT DRIVER
Slide 25: Compact Inflator
mig COMPACT INFLATOR
Slide 26: Rivet Tool
mig RIVET TOOL
Slide 27: Outdoor Power Equipment
Mise OUTDOOR POWER EQUIPMENT
Slide 28: Drain Cleaning Equipment
mig DRAINCLEANING E Q U1! PM E N T
Slide 29: Site Light with Flood Mode
Midaeoe IM18 BR) TCS SITE LIGHT WITH FLOOD MODE
Slide 30: High Output Lighting
EJapivs LIOVER LIOCKET HIGH OUTPUT LIGHTING
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Slide 35: Storage
ms STORAGE
Slide 36: Packout
ms =] ~ACKOUT
Slide 37: Data Comm Tools
ms DATA COMM TOOLS
Slide 38: Mechanics Tools
ms MECHANICS TOOLS
Slide 39: Concrete Levels
ms REDS /ICK CONCRETE LEVELS
Slide 40: Hand Tools
ms HAND TOOLS
Slide 41: Slide 41
Slide 42: Evercharge Stick Vacuum
EVERCHARGE STICK VACUUM
Slide 43: Project Vacuum
PROJECT VACUUM
Slide 44: Devour Debris Sweeper
DEVOUR DEBRIS SWEEPER
Slide 45: Pool Vacuum
POOL VACUUM
Slide 46: Cordless Cleaning
CORDLESS CLEANING
Slide 47: Lighting
LIGHTING
Slide 48: Cordless Mower Range
RYOsI. 7SVi Ui AOV CORDLESS MOWER RANGE
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Slide 50: Cordless Stick Vacs
CORDLESS STICK VACS
Slide 51: SmartWash Carpet Cleaner
ie Wf, SmartWash CARPET CLEANER
Slide 52: Oreck Technology
ORECKG) TECHNOLOGY
Slide 53: Vax Blade Cordless
vax BLADE CORDLESS
Slide 54: Slide 54