Techtronic Industries Co., Ltd. · HKEX:669
Techtronic Industries — 1H 2019 Earnings Presentation
62 slides from Techtronic Industries's earnings presentation, Aug 15, 2019
Slide 1: Interim Results Presentation
2019 Interim Results Presentation August 15th, 2019
Slide 2: Frank Chan
Frank Chan
Slide 3: 1H 2019 Results
1H 2019 Results
Slide 4: 2019 1st Half Results
2019 1st Half Results 1H 2018 1H 2019 Change LC Sales $3,431 $3,728 +8.7% +10.7% Gross Profit $1,274 $1,403 +10.1% Gross Margin % 37.1% 37.6% +50 bps EBIT $281 $314 +11.9% % of sales 8.2% 8.4% Net Profit $255 $285 +11.9% % of sales 7.4% 7.6% EPS (HK cents) 13.89₵ 15.61₵ +12.4% Interim Dividend (HK c
Slide 5: Sales, EBIT & Net Profit 1st Half Year Performance Trend
Sales, EBIT & Net Profit 1st Half 10 Year Performance Trend Sales +10% CAGR 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 EBIT +16% CAGR 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Net Profit +22% CAGR 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Slide 6: 2019 1st Half Segment Results
2019 1st Half Segment Results Segment 1H 2018 1H 2019 Change LC Sales $2,962 $3,322 +12.1% +14.3% Power Segment % 86.3% 89.1% Equipment Op Profit $280 $314 +12.0% % of sales 9.5% 9.5% Sales $469 $406 -13.3% -12.0% Floorcare & Segment % 13.7% 10.9% Appliance Op Profit $0.6 $0.1 -- % of sales 0.1% 0.0
Slide 7: 2019 1st Half Region Sales
2019 1st Half Region Sales Region 1H 2018 1H 2019 Change LC North America $2,599 $ 2,845 +9.4% +9.7% Region % 75.8% 76.3% Europe $555 $ 595 +7.3% +14.2% Region % 16.2% 16.0% Rest of World $277 $ 288 +4.1% +12.8% Region % 8.0% 7.7%
Slide 8: 2019 1st Half Income Statement
2019 1st Half Income Statement 1H 2018 1H 2019 Change Sales $3,431 $3,728 +8.7% Gross Profit $1,274 $1,403 +10.1% % of sales 37.1% 37.6% Selling, Distribution, & Advertising $522 $582 +11.4% Administrative Expenses $375 $403 +7.4% Research & Development $99 $108 +9.6% Total SG&A Expenses $996 $1,093
Slide 9: 2019 1st Half Financial Position
2019 1st Half Financial Position 1H 2018 1H 2019 Change Non-current Assets $1,975 $2,529 +28.0% Current Assets $3,898 $4,767 +22.3% Current Liabilities $2,266 $3,145 +38.8% Net Current Assets $1,632 $1,622 -0.6% Long-term Liabilities $700 $970 +38.5% Equity $2,907 $3,181 +9.4%
Slide 10: 2019 1st Half Gearing Trend
2019 1st Half Gearing Trend 1H 2014 1H 2015 1H 2016 1H 2017 1H 2018 1H 2019 Gearing 22.8% 17.7% 16.0% 8.8% 1.8% 13.1%
Slide 11: 2019 1H Financial Figures
2019 1H Financial Figures 1H 2018 1H 2019 Change Inventory $1,578 $1,961 Days 88 94 +6 days Receivables $1,203 $1,319 Days 67 63 -4 days Payables $1,665 $1,885 Days 93 91 -2 days Net Working Capital $1,115 $1,395 % of Sales 17.0% 18.4% Cash Balance $863 $1,206 +39.7% CAPEX $86 $211 +146.7%
Slide 12: 2019 1st Half Debt Profile
2019 1st Half Debt Profile 1H 2018 1H 2019 Change Cash Balance $863 $1,206 +39.7% Debt with Fixed Maturities $565 $729 +29.0% Working Capital Financing $349 $894 +156.0% Total Debt $914 $1,623 +77.5% Total Net Debt $51 $417 +716.5% Floating Rate 89% $809 89% $1,443 +78.3% Fixed Rate 11% $105 11% $18
Slide 13: Joe Galli
Joe Galli
Slide 14: 2019 1st Half Sales Growth
2019 1st Half Sales Growth start--> 1H 2018 1H 2019 Sales $3,431 $3,728 % Growth +8.7% % Growth LC +10.7%
Slide 15: 2019 1st Half Results
2019 1st Half Results 2018 1H 2018 2019 Est 1H 2019 vs 2018 Change Sales $3,431 $3,728 +8.7% Gross Margin % 37.1% 37.6% +50 bps EBIT $281 $314 +11.9% % of sales 8.2% 8.4% Net Profit $255 $285 +11.9% % of sales 7.4% 7.6%
Slide 16: 2019 1st Half Gross Margin
2019 1st Half Gross Margin 1H 2018 1H 2019 37.6% 37.1%
Slide 17: 1st Half Gross Margin Trend
1st Half Gross Margin Trend 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 37.6% 37.1% 36.6% 36.1% 35.6% 35.0% 34.0% 33.5% 32.9% 32.6% 31.7% 31.5% 8 years 11 years of Gross of Gross Margin Margin improvement improvement
Slide 18: 2019 1st Half SG&A Strategic Investment
2019 1st Half SG&A Strategic Investment R&D SG&A Product Development Non Strategic -10 bps End User Conversion +30 bps Sales Coverage Strategic +40 bps Geographic Expansion LDP
Slide 19: 2019 1H Working Capital
2019 1H Working Capital 1H 2018 1H 2019 Change Inventory $1,578 $1,961 Days 88 94 +6 days Receivables $1,203 $1,319 Days 67 63 -4 days Payables $1,665 $1,885 Days 93 91 -2 days WC % of Sales +17.0% +18.4%
Slide 20: oe Oe | —
is oe Oe | — 1
Slide 21: Target Verticals
mis TARGET VERTICALS
Slide 22: Carpentry & Remodeling
CARPENTRY & REMODELING
Slide 23: 7-1/4” Rear Handle Circular Saw
7-1/4” Rear Handle Circular Saw Confidential Docum ent Property of M ILW AUKEE TOOL Brookfield, W isconsin 53005
Slide 24: 12” Sliding Compound Miter Saw
12” Sliding Compound Miter Saw Confidential Docum ent Property of M ILW AUKEE TOOL Brookfield, W isconsin 53005
Slide 25: Compact Router
Compact Router Confidential Docum ent Property of M ILW AUKEE TOOL Brookfield, W isconsin 53005
Slide 26: 21° & 30° Degree Framing Nailers
21° & 30° Degree Framing Nailers Confidential Docum ent Property of M ILW AUKEE TOOL Brookfield, W isconsin 53005
Slide 27: 9” Cut Off Saw
9” Cut Off Saw Confidential Docum ent Property of M ILW AUKEE TOOL Brookfield, W isconsin 53005
Slide 28: SURGE 1/4” Hydraulic Driver
SURGE™ 1/4” Hydraulic Driver Confidential Docum ent Property of M ILW AUKEE TOOL Brookfield, W isconsin 53005
Slide 29: Installation Drill Driver
Installation Drill Driver Confidential Docum ent Property of M ILW AUKEE TOOL Brookfield, W isconsin 53005
Slide 30: Mechanical Electrical Plumbing
MECHANICAL ELECTRICAL PLUMBING
Slide 31: Sewer Sectional Machine w/ CABLE DRIVE
Sewer Sectional Machine w/ CABLE DRIVE™ Confidential Docum ent Property of M ILW AUKEE TOOL Brookfield, W isconsin 53005
Slide 32: Angler Pulling Fish Tape
Angler™ Pulling Fish Tape Confidential Docum ent Property of M ILW AUKEE TOOL Brookfield, W isconsin 53005
Slide 33: Cable Stripper
Cable Stripper Confidential Docum ent Property of M ILW AUKEE TOOL Brookfield, W isconsin 53005
Slide 34: FORCE LOGIC 15T Crimper
FORCE LOGIC™ 15T Crimper Confidential Docum ent Property of M ILW AUKEE TOOL Brookfield, W isconsin 53005
Slide 35: Digital Torque Wrench
Digital Torque Wrench Confidential Docum ent Property of M ILW AUKEE TOOL Brookfield, W isconsin 53005
Slide 36: Power Utility
Miwon POWER UTILITY
Slide 37: FORCE LOGIC 10,000 PSI Hydraulic Pump
FORCE LOGIC™ 10,000 PSI Hydraulic Pump Confidential Docum ent Property of M ILW AUKEE TOOL Brookfield, W isconsin 53005
Slide 38: Utility Remote Control Search Light
Utility Remote Control Search Light Confidential Docum ent Property of M ILW AUKEE TOOL Brookfield, W isconsin 53005
Slide 39: USB Rechargeable Utility Hot Stick Light
USB Rechargeable Utility Hot Stick Light Confidential Docum ent Property of M ILW AUKEE TOOL Brookfield, W isconsin 53005
Slide 40: Transportation
Miwon TRANSPORTATION
Slide 41: Extended Anvil Controlled Torque 1/2” Impact Wrench
Extended Anvil Controlled Torque 1/2” Impact Wrench Confidential Docum ent Property of M ILW AUKEE TOOL Brookfield, W isconsin 53005
Slide 42: 1/4” & 3/8” Extended Reach Ratchets
1/4” & 3/8” Extended Reach Ratchets Confidential Docum ent Property of M ILW AUKEE TOOL Brookfield, W isconsin 53005
Slide 43: 1/4” Die Grinders
1/4” Die Grinders Confidential Docum ent Property of M ILW AUKEE TOOL Brookfield, W isconsin 53005
Slide 44: Midge
Midge
Slide 45: Lighting
Miwon LIGHTING
Slide 46: Packout
Miwon =) PACKOUT
Slide 47: Milwaukee Tape Measures
Slide 48: Stud Tape Measure
Stud Tape Measure
Slide 49: Ryobi ONE+ 18V System
Slide 50: Hobby Tools
Hobby Tools
Slide 51: Plumbing
Plumbing
Slide 52: Air Cannon
Air Cannon
Slide 53: Outdoor
5x(ee|] OUTDOOR
Slide 54: Mower Families
RYOsI. CVn ~BAOW urna Mower Families
Slide 55: Outdoor Families
RYOsI. CVn ~BAOW urna Outdoor Families
Slide 56: Snow Blower
RYOsI. AOV irre Snow Blower
Slide 57: Electric Zero Turn Riding Mower
Electric Zero Turn Riding Mower
Slide 58: Deep Cleaning: Carpet Cleaners & Solutions
DEEP CLEANING: CARPET CLEANERS & SOLUTIONS
Slide 59: Hoover ONE PWR System Cordless
Slide 60: Cordless FloorMate Jet
CORDLESS FLOORMATE JET”
Slide 61: Spotless Go
SPOTLESS GO
Slide 62: TTI
Techtronic Industries — 1H 2019 Earnings Presentation on 6ix