Slide 1: 2005 Annual Results Announcement
2005 Annual Results Announcement 12th April 2006
Slide 2: Agenda
Agenda } Financial review Mr. Frank Chan (Group Executive Director) } Business review Mr. David Butts (Senior Vice President) } Outlook Mr. Horst Pudwill (Chairman & CEO) 2005 annual results announcement 1
Slide 3: Financial Review
Financial Review Mr. Frank Chan (Group Executive Director) 2005 annual results announcement 2
Slide 4: Financial highlights
Financial highlights For the 12 months period ended 31st December, 2005 2005 2004 Changes HK$m HK$m % Turnover 22,358 16,304 37.1 Gross profit 6,942 4,941 40.5 EBITDA 1,989 1,489 33.6 Operating profits 1,576 1,226 28.5 Profits attributable to shareholders 1,019 926 10.0 of the Company Basic EPS (HK
Slide 5: Margin analysis
Margin analysis } Gross margin improved despite raw % % material pricing pressure } Helped by favorable product portfolio, new products and cost improvement programs 30.3 Gross 31.0 } Full year consolidation of acquisition increased admin expenses, offsetting gains in gross margins } *EBITDA margin
Slide 6: Five year summary
Five year summary 5-Year CAGR 5-Year CAGR 5-Year CAGR 1,019 38% 22,358 40% 926 34% 69.3 73.5 16,304 51.6 674 13,183 33.2 9,493 413 6,101 21.7 247 01 02 03 04 05 01 02 03 04 05 01 02 03 04 05 Turnover (HK$m) Net profit (HK$m) Earnings per share (HK cents) 2005 annual results announcement 5
Slide 7: Analysis by product
Analysis by product For the 12 months period ended 31st December, 2005 Sales contributions by product 77% Power equipment Floor care Laser & electronic products appliances products (71%) Revenue ( HK$m) 17,177 4,526 655 Change (%YoY) 49.1 11.0 -6.5 Result ( HK$m) 1,237 200 139 Change (%YoY) 35.9 -0.
Slide 8: Analysis by market location
Analysis by market location For the 12 months period ended 31st December, 2005 Sales contributions by market location North America Europe & other countries 77% Revenue ( HK$m ) 17,122 5,236 (81%) Change (%YoY) 29.7 69.0 Result ( HK$m ) 1,385 191 Change (%YoY) 28.0 9.4 Margin (%) - 2005 8.1 3.7 23%
Slide 9: Financial position
Financial position YR2004* (HK$m) 2005 2,261 Non-current assets 8,078 11,642 Current assets 12,297 7,819 Current liabilities 7,411 3,823 Net current assets 4,886 2,548 Long-term liabilities 6,731 3,454 Shareholders’ funds 6,112 1.49 Current ratio 1.66 32.1% Gearing 68.3% 11.6 Interest coverage(x) 5.
Slide 10: Healthy working capital position
Healthy working capital position Turnover days 2005 2004 Inventory (1) 55 59 Trade receivables (2) 46 53 Trade & other payables (3) 53 56 } Flexible and efficient procurement and manufacturing operation } Raw material and work in progress inventory days stayed at 17 days } Finished goods inventory d
Slide 11: Cash and borrowing profile
Cash and borrowing profile Well-balanced loan portfolio for long-term growth LT borrowings added in 2005: -US$200m fixed interest rate Notes } The Group’s balance sheet remained -US$200m syndicated loan solid and healthy } Financed the Milwaukee / AEG acquisition (HK$4.89bn) by internal 4,046 5,304
Slide 12: Business Review
Business Review Mr. David Butts (Senior Vice President) 2005 annual results announcement 11
Slide 13: Sales contributions by type
Sales contributions by type OEM & private label 20% (28%) Own & licensed brands 80% (72%) (%) – 2004 figures 2005 annual results announcement 12
Slide 14: Power equipment products
Power equipment products Acquisition 17,177 } Strong growth of the power tool business attributed to double Core 9 Double-digit organic growth of our primary brands 11,523 9 Double-digit growth by Milwaukee® and AEG® } Core organic growth driven by the strong demand for our brands but offset by the
Slide 15: Floor care appliances
Floor care appliances } Solid own brand performance despite extreme price sensitivity in 4,526 North American market 4,079 } Our own branded business continued to improve market position 9 - Leading brand in Germany 9 - Moved up to No. 2 position in the UK } Continuing flow of new products accounted
Slide 16: Laser and electronic products
Laser and electronic products 701 } Turnover declined for the full year despite a strong first half but 656 margins improved thanks to operational efficiency and new products } Investments in manufacturing delivered significant gains in our cost position, offsetting rising input costs } Difficult se
Slide 17: Outlook
Outlook Mr. Horst Pudwill (Chairman & CEO) 2005 annual results announcement 16
Slide 18: Outlook
Outlook } Solid foundation and scale advantages provide us competitive flexibility to meet market challenges } Positive outlook for 2006 9 Powerful brand portfolio 9 Innovative products capture market share and enhance status of our brands 9 Leading lithium Ion battery technology platform 9 Expanded
Slide 19: Thank you
Tri Ne Thank you oii” ESD BD bometite Royal BEL Reon CED soure
Slide 20: 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