Slide 1: 2013 Annual Results Presentation
2013 Annual Results Presentation March 20, 2014
Slide 2: Frank Chan
Frank Chan 2
Slide 3: 2013 Full Year Results
2013 Full Year Results (US$ m) 2012 2013 Change Sales $3,852 $4,300 +11.6% Gross Margin % 33.5% 34.2% +0.7pts EBIT $260 $304 +16.9% % of sales 6.8% 7.1% Net Profit $201 $250 +24.5% % of sales 5.2% 5.8% EPS (cents) 11.42₵ 13.68₵ +19.8% Final Dividend (HK cents) 10.75₵ 13.75₵ +27.9% 3
Slide 4: 2013 Segment Results
2013 Segment Results (US$ m) 2012 2013 Change Power Equipment Sales $2,865 $3,144 +9.8% Op Profit $229 $261 +14.2% % of sales 8.0% 8.3% Floor Care and Appliances Sales $988 $1,156 +17.0% Op Profit $39 $52 +32.4% % of sales 4.0% 4.5% 4
Slide 5: 2013 Sales by Region
2013 Sales by Region (US$ m) 2012 2013 Change NA $2,807 $3,120 +11.2% EMEA $768 $870 +13.3% ROW $277 $310 +11.5% 5
Slide 6: 2013 Income Statement
2013 Income Statement (US$ m) 2012 2013 Change Sales $3,852 $4,300 +11.6% Gross Margin $1,289 $1,472 +14.2% % of sales 33.5% 34.2% Selling, Distribution, & Advertising $533 $563 +5.7% Administrative Expenses $421 $505 +19.9% Research & Development $80 $107 +34.7% Total SG&A Expenses $1,033 $1,175 +1
Slide 7: 2013 Financial Position
2013 Financial Position (US$ m) 2012 2013 Change Non-current Assets $1,443 $1,520 +5.3% Current Assets $2,138 $2,492 +16.6% Current Liabilities $1,563 $1,777 +13.7% Net Current Assets $575 $716 +24.5% Long-term Liabilities $462 $490 +6.2% Equity $1,549 $1,741 +12.4% Interest Coverage (x) 8.7x 12.4x
Slide 8: 2013 Gearing Ratio
2013 Gearing Ratio (Net Debt / Equity) 2011 2012 2013 Gearing 59.3% 25.8% 10.6% 8
Slide 9: 2013 Key Financial Figures
2013 Key Financial Figures (US$ m) 2012 2013 Change Inventory $689 $884 Days 65 75 +10 days Receivables $645 $752 Days 61 64 +3 days Payables ($710) ($1,040) Days 67 88 +21 days Net Working Capital $623 $596 % of Sales 16.2% 13.9% -2.3pts Cash Balance $618 $698 +13.0% CAPEX $103 $105 +1.6% 9
Slide 10: 2013 Debt Profile
2013 Debt Profile (US$ m) 2012 2013 Change Cash Balance $618 $698 +13.0% Debt with Fixed Maturities $504 $542 +7.6% Working Capital Financing $513 $341 (33.6%) Total Debt $1,017 $883 (13.2%) Total Net Debt $399 $185 (53.7%) Floating Rate 87% $883 89% $788 (10.8%) Fixed Rate 13% $134 11% $95 (28.8%)
Slide 11: Joe Galli
Joe Galli 11
Slide 12: 2013 Full Year Results
2013 Full Year Results (US$ m) 2012 2013 Change Sales $3,852 $4,300 +11.6% GM % 33.5% 34.2% +0.7pts SG&A % 26.8% 27.3% +0.5pts EBIT $260 $304 +16.9% % of sales 6.8% 7.1% +0.3pts 12
Slide 13: 2013 Full Year Results
2013 Full Year Results (US$ m) 2012 2013 Change EBIT $260 $304 +16.9% Net Profit $201 $250 +24.5% EPS (cents) 11.42₵ 13.68₵ +19.8% 13
Slide 14: 2013 Working Capital
2013 Working Capital (US$ m) 2012 2013 Change Inventory $689 $884 Days 65 75 +10 days Trade Rec $645 $752 Days 61 64 +3 days Trade Payables ($710) ($1,040) Days 67 88 +21 days Net Working Capital $623 $596 (4.3%) WC % of Sales 16.2% 13.9% (2.3pts) 14
Slide 15: Free Cash Flow Improvement
Free Cash Flow Improvement 2010 2011 2012 2013 +$332m +$275m +$149m $0 ($29m) Net Profit +$95m +$152m +$201m +$250m 15
Slide 16: 2013 Sales by Region
2013 Sales by Region (US$ m) 2012 2013 Change NA $2,807 $3,120 +11.2% EMEA $768 $870 +13.3% ROW $277 $310 +11.5% 16
Slide 17: Power Tool Market Share
Power Tool Market Share Region 2009 2010 2011 2012 2013 US Canada EMEA ANZ LA 17
Slide 18: Productivity Progress
Productivity Progress Dec 2012 Dec 2013 Change $4,300 +11.6% Sales $3,852 Headcount 18,068 18,746 +3.8% 18
Slide 19: 2014
2014
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Slide 21: TTI
TTI Confidential
Slide 22: TTI
TTI Confidential
Slide 23: TTI
TTI Confidential
Slide 24: TTI
TTI Confidential
Slide 25: TTI
TTI Confidential
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Slide 29: Air Strike
@NE Air Strike
Slide 30: ONE fg siyoritiav’
ONE fg siyoritiav’
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Slide 32: Outdoor Cordless Products
ONE fd OUTDOOR CORDLESS PRODUCTS
Slide 33: Outdoor Cordless Products
ONE fg siyoritiav’ OUTDOOR CORDLESS PRODUCTS
Slide 34: Outdoor Cordless Products
ONE fd OUTDOOR CORDLESS PRODUCTS
Slide 35: Outdoor Cordless Products
ONE a OUTDOOR CORDLESS PRODUCTS
Slide 36: Confidential Document Property of Milwaukee Electric Tool Corporation
Confidential Document Property of Milwaukee Electric Tool Corporation Brookfield, Wisconsin 53005
Slide 37: Driven to Outperform
M1i2iM1si 4 = (|= DRIVEN TO OUTPERFORM.
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Slide 39: Hand Tools
HAND TOOLS
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