Techtronic Industries Co., Ltd. · HKEX:669
Techtronic Industries — H1 2009 Earnings Presentation
44 slides from Techtronic Industries's earnings presentation, Aug 28, 2009
Slide 1: Interim Results Presentation
2009 Interim Results Presentation 28 August 2009
Slide 2: Introduction – Horst Pudwill, Chairman
Introduction Horst Pudwill Chairman 2
Slide 3: Frank Chan, CFO
Frank Chan CFO 3
Slide 4: 2009 Interim Results
2009 Interim Results 2008 2009 Changes US$m US$m Sales 1,684 1,454 (13.7%) Gross Profit Margin% 31.5% 31.7% SG&A % of Sales 25.5% 27.5% EBIT 82 65 (20.9%) EBITDA 128 116 (9.0%) Net Profit 45 33 (27.3%) EPS (US cents) 3.03 2.20 (27.3%) ) 4
Slide 5: 2009 Interim Financial Position
2009 Interim Financial Position 2008 2008 2009 1H FY 1H US$m US$m US$m Non-current Assets 1,310 1,284 1,291 Current Assets 1,795 1,509 1,724 Current Liabilities 1,435 1,375 1,388 Net Current Assets 359 135 336 Long-term Liabilities) 722 528 681 Shareholders’ Funds 935 877 931 Current Ratio 1.3 1.1 1
Slide 6: 2009 Debt Profile
2009 Debt Profile June 2008 June 2009 Changes US$m US$m Cash 343 376 9.5% Short-term Debt 362 213 (41.2%) Short-term Debt - CB - 13 Long-term Debt - Fixed 341 340 0.0% Long-term Debt - Floating 173 63 (63.5%) Long-term Debt - CB 13 117 819.2% Gearing 95.3% 85.0% Interest Coverage (x)) 4.2x 4.1x 6
Slide 7: Proforma Debt to Equity Ratio After Share Placement
Proforma Debt to Equity Ratio After Share Placement June 2009 Share June 2009 (US$m) (as reported) Placement (after placement) Total Net Debt 791 (76) 715 Equity 931 76 1,007 Debt to Equity 85% 71% Ratio 7
Slide 8: Proforma Debt to Equity Ratio Assuming CB converted and Warrant exercised
Proforma Debt to Equity Ratio Assuming CB converted and Warrant exercised June 2009 June 2009 (US$m) (after placement) CB Warrant (proforma) Total Net Debt 715 (150) (37) 528 Equity 1,007 150 37 1,194 Debt to Equity 71% 44% Ratio 8
Slide 9: Joe Galli, CEO
Joe Galli CEO 9
Slide 10: 2009 1st Half Results: Sales -13.7%
2009 1st Half Results Sales -13.7% Competitor A -27.8% Competitor B -34.9% 10
Slide 11: Vs Competition
Vs Competition 2008 2009 Changes 1H 1H Comp. A $3,138m $2,265m -27.8% Sales Comp. B $1,742m $1,134m -34.9% $1,684m $1,454m -13.7% Gross Profit Margin% Comp. A 33.6% 31.5% -2.1pts Comp. B 41.6% 38.6% -3.0pts 31.5% 31.7% +0.2pt EBIT % (After one time benefit, before Comp. A 8.3% 4.8% -3.5pts restructu
Slide 12: Headcount Reduction
Headcount Reduction 23,685 21,619 19,354 18,628 Dec 2007 June 2008 Dec 2008 June 2009 Headcount Cuts -2,066 -2,265 -726 Total Reduction since Dec 2007: 5,057 21% Headcount Cut 12
Slide 13: Drive Free Cash Flow
Trl Focus Drive Free Cash Flow
Slide 14: 2009 Inventory
2009 Inventory (USm) $768 $649 84 days 74 days June 2008 June 2009 US$119M decrease in Inventory 14
Slide 15: 2009 Receivables and Payables
2009 Receivables and Payables 2008 2009 Days 1H 1H Improvement Receivables (DSO) 57 55 -2 days Payables (DPO) 63 65 +2 days Solid Progress 15
Slide 16: US$148M decrease in Working Capital
2009 Working Capital as a % of Sales $712 (USm) $564 21.4% of sales 17.7% of sales June 2008 June 2009 US$148M decrease in Working Capital 16
Slide 17: 2009 Working Capital as a % of Sales
2009 Working Capital as a % of Sales 17.7% Competitor A 26.8% Competitor B 52.2% 17
Slide 18: 2009 CAPEX
2009 CAPEX (USm) $53 $36 3.1% of sales 2.5% of sales June 2008 June 2009 Depreciation $34m $34M US$17M decrease in CAPEX 18
Slide 19: Outgrow the Market
Challenging economic environment Objective Outgrow the Market 19
Slide 20: New Product
New Product 20
Slide 21: 21
21
Slide 22: Test & Measurement
mga Test & Measurement
Slide 23: 23
23
Slide 24: Compact Band Saws
mg? Compact Band Saws
Slide 25: SHOCKWAVE
SHOCKWAVE
Slide 26: 26
26
Slide 27: Cordless Electronic Tools
CORDLESS ELECTRONIC TOOLS
Slide 28: Tile Saws
RYOsI. Tile Saws
Slide 29: Paint Systems
RYOsI. Paint Systems
Slide 30: Outdoor Products
7 Til \ Outdoor Products
Slide 31: 31
31
Slide 32: Outdoor Accessories
Ze) an Sudoor Accessories
Slide 33: 33
33
Slide 34: (:)
(:)
Slide 35: TEAM
TEAM 35
Slide 36: Team
Team 36
Slide 37: Team
Team 37
Slide 38: Team
Team 38
Slide 39: Team
Team
Slide 40: Team
Team
Slide 41: Team
Team
Slide 42: New Milwaukee Distributor Accessory Conversions
New Milwaukee Accessory Conversions Distributor 42
Slide 43: 43
43
Slide 44: 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 results to diff
Techtronic Industries — H1 2009 Earnings Presentation on 6ix