Techtronic Industries Co., Ltd. · HKEX:669
Techtronic Industries — H1 2024 Earnings Presentation
59 slides from Techtronic Industries's earnings presentation, Aug 7, 2024
Slide 1: Disclaimer
DISCLAIMER This document (“document”) has been prepared by Techtronic Industries Company Limited (the “Company” or “TTI”, and together with its subsidiaries, the “Group”) solely for use at the presentation held in connection with the announcement of the Company’s financial results (the “Presentation
Slide 2: 2024 1H Analyst Presentation
2024 1H Analyst Presentation August 7th, 2024
Slide 3: Horst Pudwill, Chairman of the Board
HORST PUDWILL CHAIRMAN OF THE BOARD
Slide 4: Stephan Pudwill, Vice Chairman
STEPHAN PUDWILL VICE CHAIRMAN
Slide 5: Frank Chan, Chief Financial Officer
FRANK CHAN CHIEF FINANCIAL OFFICER
Slide 6: 2024 First Half Results
2024 FIRST HALF RESULTS 2023 2024 Change Sales $6,879 $7,312 +6.3% GM % 39.3% 39.9% +67 bps SGA % 31.2% 31.5% +24 bps EBIT $560 $626 +11.8% % of sales 8.1% 8.6% Net Profit $476 $550 +15.7% % of sales 6.9% 7.5% EPS (cents) 26.00₵ 30.12₵ +15.8% Dividend (HK cents) 95.00₵ 108.00₵ +13.7%
Slide 7: 2024 First Half Income Statement
2024 FIRST HALF INCOME STATEMENT 2023 2024 Change Sales $6,879 $7,312 +6.3% Gross Profit $2,702 $2,921 +8.1% % of sales 39.3% 39.9% Selling, Distribution, & Advertising $1,187 $1,244 +4.8% Administrative Expenses $719 $760 +5.6% Research & Development $243 $298 +22.4% Total SG&A Expenses $2,149 $2,3
Slide 8: 2024 First Half Financial Position
2024 FIRST HALF FINANCIAL POSITION 2023 2024 Change Non-current Assets $4,997 $5,191 +3.9% Current Assets $8,433 $7,931 -6.0% Current Liabilities $5,899 $5,144 -12.8% Net Current Assets $2,534 $2,787 +10.0% Long-term Liabilities $1,837 $1,725 -6.1% Equity $5,694 $6,253 +9.8%
Slide 9: 2024 First Half Financial Figures
2024 FIRST HALF FINANCIAL FIGURES 2023 2024 Change Inventory $4,581 $4,027 Days 128 104 -24 days Receivables $1,945 $2,328 Days 54 60 +6 days Payables $3,546 $3,713 Days 99 96 -3 days Net Working Capital $2,980 $2,642 % of Sales 22.7% 18.7% CAPEX $210 $100 -52.3% % of Sales 3.0% 1.4%
Slide 10: FY Free Cash Flow Trend
FY FREE CASH FLOW TREND $1,281M $1,281 M $544M $508M $401M $282M $329M $301M $273M $101M$544 $75M $116M H1 2014 M 2015 2016 2017 2018 2019$330M 2020 2021 2022 2023 2024H1 CONVERSION: 34% 21% 69% 58% 73% 19% 68% -105% 31% 131% 92% -$1,156M -$1.2B -$1,156M
Slide 11: 2024 First Half Gearing Trend
2024 FIRST HALF GEARING TREND 100.0% 95.3% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 9.2% 0.0% 2008 2010 2012 2014 2016 2018 2020 2022 2024
Slide 12: 2024 First Half Debt Profile
2024 FIRST HALF DEBT PROFILE H1 2023 H1 2024 Change Cash Balance $1,485 $1,227 -17.4% Debts with Fixed Maturities $1,451 $1,129 -22.2% Working Capital Financing $1,489 $673 -55.1% Total Debts $2,949 $1,802 -38.9% Total Net Debts $1,464 $575 -60.7% Floating Rate 60% $1,763 43% $779 -55.8% Fixed Rate
Slide 13: Steve Richman, Chief Executive Officer
STEVE RICHMAN CHIEF EXECUTIVE OFFICER
Slide 14: First Half Sales Trend
FIRST HALF SALES TREND +10.0% +6.3% -2.2% +52.0% $7.0B $7.3B $6.9B $6.4B +12.8% +8.7% $4.2B $3.7B 2019 2020 2021 2022 2023 2024
Slide 15: 16 Year First Half Performance Trend
16 YEAR FIRST HALF PERFORMANCE TREND SALES +11% CAGR 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 EBIT +16% CAGR 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 NET PROFIT +21% CAGR 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2
Slide 16: Gross Margin Performance
GROSS MARGIN PERFORMANCE 20102009 2008 2009 2008 2011 20102012 2011 2013 2012 2014 20152015 2013 2014 2016 20162017 2017 2018 20192020 2018 2019 2020 20212021 2022 2022 2023 2023 2024 39.9% 39.3% 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 17: Inventory Trend
INVENTORY TREND 135 Days 17 DOH 104 Days DAYS ON 88 Days HAND 23 DOH 7 DOH RAW + WIP FINISHED 118 DOH GOODS 81 DOH 81 DOH H1 2018 H1 2021 H1 2024
Slide 18: People & Culture
7s) PEOPLE & CULTURE ri ——
Slide 19: Global Manufacturing Footprint
GLOBAL MANUFACTURING FOOTPRINT
Slide 20: Innovation. Performance. Value.
INNOVATION. PERFORMANCE. VALUE.
Slide 21: DIY User Focus: Consumer Cordless System
DIY USER FOCUS TRANSPORTATION LAWN & LIGHT DIY CLEANING MAINTENANCE GARDEN HEAVY DIY / REMODEL HOBBY, CRAFT, & MAKER LIFESTYLE & RECREATION LARGEST AND MOST ENTRENCHED CONSUMER CORDLESS SYSTEM
Slide 22: Expanding Opportunity
THE VALUE PRO EXPANDING OPPORTUNITY
Slide 23: Distribution Partnership
2 a i aia BUNNINGS Fs , warehouse PAE AUHAUS| $M, SULA) tcooma “8
Slide 24: 2024 1st Half Sales Growth
2024 1st HALF SALES GROWTH Local currency +11%
Slide 25: Global Sales Growth
GLOBAL SALES GROWTH +11% +22% +38% CAGR = 22% +26% +22% +28% +22% +21% +24% +22% +20% +18% +26% +25% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Reported Currency 2010 – 2013, local currency after 2014
Slide 26: Our Users
OUR USERS PRODUCTIVITY & SAFETY SOLUTIONS ALL ALL ALL MORNING DAY NIGHT
Slide 27: $100B+ Global Opportunity
$100B+ GLOBAL OPPORTUNITY OUR CORE TRADES GENERAL ELECTRICAL PLUMBING UTILITY REMODELING CONTRACTING LANDSCAPING & TRANSPORTATION RENEWABLE MECHANICAL MINING TREE CARE MAINTENANCE ENERGY
Slide 28: Current Sub-Trades
CURRENT SUB-TRADES RENEWABLE LANDSCAPING TRANSPORTATION GENERAL UTILITY MECHANICAL ELECTRICAL PLUMBING REMODELING MINING ENERGY & TREE CARE MAINTENANCE CONTRACTING COMMERCIAL UTILITY SCALE POWER COMMERCIAL COMMERCIAL MAINTENANCE AFTER MARKET CARPENTRY PLUMBING CONSTRUCTION HVAC SOLAR Generation RESI
Slide 29: New Opportunities
NEW OPPORTUNITIES ELEVATOR & IRONWORK MASONRY GLAZING ESCALATOR SECURITY PAINTING INSULATION RAIL SYSTEMS DRYWALL ROOFING WELDING FLOORING
Slide 30: $100B+ Global Opportunity: Product Segments
$100B+ GLOBAL OPPORTUNITY PRODUCT SEGMENTS OUTDOOR POWER EQUIPMENT POWER TOOLS LIGHTING HAND TOOLS POWER TOOL STORAGE EQUIPMENT ACCESSORIES SOLUTIONS
Slide 31: Distribution Partnerships
DISTRIBUTION PARTNERSHIPS STRONG SUPPORT FOR OUR TRADES…
Slide 32: We're Just Getting Started
ius | WERE JUST GETTING STARTED FOUNDED
Slide 33: Alex Duarte, Sr. Group President EMEA
ALEX DUARTE SR. GROUP PRESIDENT EMEA
Slide 34: Sales Growth
SALES GROWTH MILWAUKEE EMEA 15 YR CAGR: +23% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Slide 35: Why Are We Winning: Disruptive Innovation
WHY ARE WE WINNING MILWAUKEE EMEA DISRUPTIVE INNOVATION DRIVING PREMIUM POSITIONING Confidential Document Property of MILWAUKEE TOOL D-71361 Winnenden, Germany
Slide 36: Why Are We Winning: Industrial Distribution
WHY ARE WE WINNING MILWAUKEE EMEA FOCUSED COMMERCIAL STRATEGY – INDUSTRIAL DISTRIBUTION Confidential Document Property of MILWAUKEE TOOL D-71361 Winnenden, Germany
Slide 37: Why Are We Winning: End User Conversion
WHY ARE WE WINNING MILWAUKEE EMEA END USER CONVERSION AND DEMAND GENERATION THROUGH JSS Confidential Document Property of MILWAUKEE TOOL D-71361 Winnenden, Germany
Slide 38: Why Are We Winning: Best Team
WHY ARE WE WINNING MILWAUKEE EMEA BEST TEAM WITH MILWAUKEE DNA Confidential Document Property of MILWAUKEE TOOL D-71361 Winnenden, Germany
Slide 39: Growth Potential: Geographic Expansion
GROWTH POTENTIAL MILWAUKEE EMEA GEOGRAPHIC CORDLESS EXPANSION MARKET SHARE Confidential Document Property of MILWAUKEE TOOL D-71361 Winnenden, Germany
Slide 40: Growth Potential: Category Expansion
GROWTH POTENTIAL MILWAUKEE EMEA OUTDOOR POWER PERSONAL PROTECTIVE STORAGE SOLUTIONS HAND TOOLS EQUIPMENT EQUIPMENT (PPE) SOLUTIONS PROVIDER – CATEGORY EXPANSION WITH LOW SHARE Confidential Document Property of MILWAUKEE TOOL D-71361 Winnenden, Germany
Slide 41: EMEA Growth Potential
EMEA GROWTH POTENTIAL MILWAUKEE EMEA EXISTING FUTURE $50B+ $10B OPPORTUNITY OPPORTUNITY POWER TOOLS SOLUTIONS PROVIDER – CATEGORY EXPANSION WITH LOW SHARE Confidential Document Property of MILWAUKEE TOOL D-71361 Winnenden, Germany
Slide 42: Investment Capability
INVESTMENT CAPABILITY MILWAUKEE EMEA 800+ JOBSITE SOLUTIONS HEADCOUNT 19 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Slide 43: We're Just Getting Started
ius | WERE JUST GETTING STARTED FOUNDED
Slide 44: Shane Moll, Group President – Milwaukee Tool
SHANE MOLL GROUP PRESIDENT – MILWAUKEE TOOL POWER TOOLS & EQUIPMENT
Slide 45: Solutions Provider: Leader in Safety and Productivity
SOLUTIONS PROVIDER LEADER IN SAFETY AND PRODUCTIVITY
Slide 46: Breakthrough: World Leader in Cordless Technology
WORLD LEADER IN… ARTIFICIAL INTELLIGENCE REDLINK™ POWERSTATE™ MACHINE INTELLIGENCE BRUSHLESS MOTORS HIGH OUTPUT™ LEARNING BREAKTHROUGH REDLITHIUM™ BATTERIES 2008 2010 2012 2015 2018 2020 2022 2023 BREAKTHROUGH CORDLESS TECHNOLOGY
Slide 47: Technology Leadership
TECHNOLOGY LEADERSHIP CELLS BATTERY PACKS MOTORS ELECTRONICS CHARGING CONNECTIVITY SOFTWARE AI / ML
Slide 48: Breakthrough Technology
BREAKTHROUGH TECHNOLOGY Sensors / HMI Embedded § Accelerometer § 32 Bit Cortex § Gryo / IMU M4 MCUs § Active Feedback § 20S Battery § Temperature Mgmt. § Hall Sensor System Security Pack-to-Tool Link Power Electronics Wireless § Dedicated Authentication ICs § Full Digital § 3-Phase BLDC Si § Bluetoo
Slide 49: The Next Breakthrough
THE NEXT BREAKTHROUGH Ma FORGE Mls — LJ — L_ MIE] Surerciascer DRIVEN TO OUTPERFORM. MOST POWER FASTEST CHARGING LONGEST LIFE HIGH-SPEED ‘ASTER = GOOLING LESS DOWNTIME.
Slide 50: New Lithium-Ion Cell Technologies
NEW LITHIUM-ION MECHANICAL NEXT GENERATION CELL TECHNOLOGIES REDESIGN ELECTRONICS
Slide 51: Driven to Outperform
Mis] a = [i DRIVEN TO OUTPERFORM. POWERSTATE’ BRUSHLESS MOTOR >) n_¥ ‘ -e: 7) = ZR we _ “=r REDLITHIUM™ FORGE™ LEK LITHIUM “FORGE BATTERY PACK et HD12.0 REDLINK PLUS" D INTELLIGENCE yO y YL oo?) Cr LY ~ (
Slide 52: Over 10X Capability, Full Compatibility
OVER 10X CAPABILITY FULL COMPATIBILITY 2007 2010 2012 2015 2018 2024
Slide 53: Hypergrowth Segments
HYPERGROWTH SEGMENTS MEGA PROJECTS DATA CENTERS INFRASTRUCTURE RENEWABLE ENERGY
Slide 54: Megaproject Entrenchment
MEGAPROJECT ENTRENCHMENT CORE TRADE PARTNERSHIPS
Slide 55: Data Centers Solutions
DATA CENTERS SOLUTIONS PRECISION JOBSITE CLEANUP ELECTRICAL MECHANICAL PPE FASTENING & MAINTENANCE
Slide 56: Solutions Provider: General Contracting
SOLUTIONS PROVIDER $25B+ GLOBAL OPPORTUNITY GENERAL CONTRACTING
Slide 57: Solutions Provider: Mechanical
SOLUTIONS PROVIDER $9B+ GLOBAL OPPORTUNITY MECHANICAL
Slide 58: Confidential Document Property of MILWAUKEE TOOL D-71361 Winnenden, Germany
Confidential Document Property of MILWAUKEE TOOL D-71361 Winnenden, Germany
Slide 59: Thank You
as) Tie THANK YOU _
Techtronic Industries Company — H1 2024 Earnings Presentation on 6ix