Techtronic Industries Co., Ltd. · HKEX:669
Techtronic Industries — H1 2005 Earnings Presentation
22 slides from Techtronic Industries's earnings presentation, Aug 18, 2005
Slide 1: 2005 Interim Results Announcement
2005 Interim Results Announcement 18th August 2005
Slide 2: Agenda
Agenda £ Key achievements Mr. Horst Pudwill (Chairman & CEO) £ Financial review Mr. Frank Chan (Group Executive Director) £ Business review Mr. David Butts (Senior Vice President) £ Outlook Mr. Horst Pudwill (Chairman & CEO) 2005 interim results announcement 1
Slide 3: Key achievements
Key achievements For the 6 months period ended 30th June 2005 Mr. Horst Pudwill (Chairman & CEO) 2005 interim results announcement 2
Slide 4: Key achievements
Key achievements For the 6 months period ended 30th June, 2005 10,217 £ TTI’s growth strategy continues to deliver record performance 6,724 § Turnover increased by 52% to HK$10.2bn § Profits attributable to shareholders of the Company grew 53% to HK$456m 04 05 Turnover (HK$m) § EPS increased by 50%
Slide 5: Financial Review
Financial Review For the 6 months period ended 30th June 2005 Mr. Frank Chan (Group Executive Director) 2005 interim results announcement 4
Slide 6: Financial highlights
Financial highlights For the 6 months period ended 30th June 2005 1H05 1H04 Changes HK$m HK$m % Turnover 10,217 6,724 52.0 Gross profit 3,172 2,004 58.3 Gross margin (%) 31.0 29.8 EBITDA 939 558 68.2 EBITDA margin (%) 9.2 8.3 Operating profits 723 419 72.6 Operating margin (%) 7.1 6.2 Profits attrib
Slide 7: Analysis by product
Analysis by product For the 6 months period ended 30th June 2005 Sales contributions by product 78% Power equipment Floor care Laser & electronic products appliances products (70%) Revenue ( HK$m) 7,889 1,980 348 Change (%YoY) 67.4 15.3 18.0 Result ( HK$m) 550 103 70 Change (%YoY) 86.8 28.7 18.4 19%
Slide 8: Analysis by market location
Analysis by market location For the 6 months period ended 30th June 2005 Sales contributions by market location North America Europe & other countries 74% Revenue ( HK$m ) 7,616 2,601 (78%) Change (%YoY) 44.8 77.6 Result ( HK$m ) 563 160 Change (%YoY) 53.6 137.3 Margin (%) - 1H05 7.4 6.2 26% Margin
Slide 9: Sales contributions by type
Sales contributions by type OEM & private label 18% (26%) Own & licensed brands 82% (74%) (%) – 1H04 figures 2005 interim results announcement 8
Slide 10: Financial position
Financial position YR2004* 1H04* (HK$m) 1H05 2,261 2,120 Non--current assets Non 6,921 11,642 6,547 Current assets 10,318 7,819 4,398 Current liabilities 7,892 3,823 2,149 Net current assets 2,426 2,548 1,457 Long--term liabilities Long 5,482 3,454 2,748 Shareholders’funds 3,764 1.49 1.49 Current ra
Slide 11: Gearing
Gearing £ Gearing ratio is expected to improve by end of the year given the Group’s strong cash flow generating capability Milwaukee / AEG / DreBo % Ryobi 120 North America 100 Ryobi Europe *Assuming CB 80 fully converted + Homelite Royal Appliance 60 Ryobi 40 Australasia 20 0 $$ $$ $$ $$ FY00 1H01
Slide 12: Cash and borrowing profile
Cash and borrowing profile Well-balanced loan portfolio for long-term growth LT borrowings added in 1Q05: -US$200m fixed interest rate Notes -US$200m syndicated loan £ The Group’s balance sheet remained solid and healthy £ Financed the Milwaukee / AEG 1,734 acquisition by internal resources and borr
Slide 13: Healthy working capital position
Healthy working capital position Turnover days 1H05 1H04 Inventory (1) 64 68 Trade receivables (2) 51 48 (3) Trade & other payables 59 53 (1) Average inventory / sales x 365 (2) Average trade receivables / sales x 365 (3) Average trade & other payables / sales x 365 2005 interim results announcement
Slide 14: Business Review
Business Review Mr. David Butts (Senior Vice President) 2005 interim results announcement 13
Slide 15: Power tools
Power tools £ Strong growth of the power tool business attributed to ü Double-digit growth of existing business ü First six months’contributions from the acquisition £ Successful product launches for both consumer and professional markets, experiencing tremendous market acceptance – Milwaukee® V28™
Slide 16: Outdoor power equipment
Outdoor power equipment £ Strong growth in both North American and European markets £ Capitalized on the already strong position of Ryobi® and introduced a number of new products, namely ü Gas-powered pressure washer ü Log splitter ü Cultivator £ Product expansion supported by effective advertising
Slide 17: Floor care appliances
Floor care appliances £ Dirt Devil® brand remained a consumer favourite exhibiting strong growth across all markets ü A wide range of new products e.g. Dynamite® line of vacuums and Centrixx cyclonic canister vacuums £ Strengthened North American Management team and created new marketing campaigns t
Slide 18: Laser & electronic products
Laser & electronic products £ Strong growth in sales and profit was the result of new product introductions and key productivity measures to contain costs £ Strengthened the strategic alliance with our key ODM partners £ A new range of electronic hand tools, solar lights and infant care products wil
Slide 19: Outlook
Outlook Mr. Horst Pudwill (Chairman & CEO) 2005 interim results announcement 18
Slide 20: Outlook
Outlook £ Sound core strategies are delivering higher performance in all areas of the business £ Robust outlook for the rest of the year ü Flow of highly innovative and quality products ü Lithium Ion battery technology platform for growth ü Dedication to cost rationalization ü Strong alliance with o
Slide 21: Thank you
Tri ee Thank you ELECTRIC TOOLS
Slide 22: 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
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