Techtronic Industries Co., Ltd. · HKEX:669
Techtronic Industries — FY2024 Earnings Presentation
54 slides from Techtronic Industries's earnings presentation, Mar 5, 2025
Slide 1: Disclaimer
DISCLAIMER This document (“document”) has been prepared by Techtronic Industries Company Limited (the “Company” or “TTI”, and together with its subsidiaries, the “Group”) solely for use at the presentation held in connection with the announcement of the Company’s financial results (the “Presentation
Slide 2: 2024 Analyst Presentation
2024 Analyst Presentation March 5th, 2025
Slide 3: Horst Pudwill, Chairman of the Board
HORST PUDWILL CHAIRMAN OF THE BOARD
Slide 4: Stephan Pudwill, Vice Chairman
STEPHAN PUDWILL VICE CHAIRMAN
Slide 5: Frank Chan, Chief Financial Officer
FRANK CHAN CHIEF FINANCIAL OFFICER
Slide 6: 2024 Results
2024 RESULTS 2023 2024 Change Sales $13,731 $14,622 +6.5% GM % 39.5% 40.3% +85 bps SGA % 31.3% 31.7% +42 bps EBIT $1,135 $1,270 +11.9% % of sales 8.3% 8.7% Net Profit $976 $1,122 +14.9% % of sales 7.2% 7.7% EPS (cents) 53.36₵ 61.43₵ +15.1% Final Dividend (HK cents) 98.00₵ 118.00₵ +20.4%
Slide 7: 2024 Segment Results
2024 SEGMENT RESULTS Segment 2023 2024 Change LC Sales $12,794 $13,723 +7.3% +7.6% Power Segment % 93.2% 93.9% Equipment Op Profit $1,108 $1,242 +12.1% % of sales 8.7% 9.0% Sales $937 $899 -4.1% -4.5% Floorcare Segment % 6.8% 6.1% & Cleaning Op Profit $27 $28 +4.3% % of sales 2.9% 3.2%
Slide 8: 2024 Region Sales
2024 REGION SALES Region 2023 2024 Change LC North America $10,513 $11,079 +5.4% +5.5% Region % 76.6% 75.8% Europe $2,093 $2,323 +11.0% +10.2% Region % 15.2% 15.9% Rest of World $1,125 $1,220 +8.4% +12.5% Region % 8.2% 8.3%
Slide 9: 2024 Income Statement
2024 INCOME STATEMENT 2023 2024 Change Sales $13,731 $14,622 +6.5% Gross Profit $5,420 $5,896 +8.8% % of sales 39.5% 40.3% Selling, Distribution, & Advertising $2,347 $2,504 +6.7% Administrative Expenses $1,406 $1,490 +5.9% Research & Development $549 $648 +18.2% Total SG&A Expenses $4,302 $4,642 +7
Slide 10: 2024 Financial Position
2024 FINANCIAL POSITION 2023 2024 Change Non-current Assets $5,279 $5,191 -1.7% Current Assets $7,123 $7,699 +8.1% Current Liabilities $4,783 $4,919 +2.8% Net Current Assets $2,340 $2,780 +18.9% Long-term Liabilities $1,871 $1,607 -14.1% Equity $5,748 $6,363 +10.7%
Slide 11: 2024 Financial Figures
2024 FINANCIAL FIGURES 2023 2024 Change Inventory $4,098 $4,076 Days 109 102 -7 days Receivables $1,699 $1,884 Days 45 47 +2 days Payables $3,373 $3,849 Days 90 96 +6 days Net Working Capital $2,424 $2,111 % of Sales 17.7% 14.4% CAPEX $502 $292 -41.9% % of Sales 3.7% 2.0%
Slide 12: Free Cash Flow Trend
FREE CASH FLOW TREND $1,591M $1,281M $544M $401M $282M $273M $329M $101M $75M $116M 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 CONVERSION: 34% 21% 69% 58% 73% 19% 68% -105% 31% 131% 142% -$1,156M
Slide 13: Gearing Trend
GEARING TREND 100.0% 90.0% 89.9% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.7% 0.0% 2008 2010 2012 2014 2016 2018 2020 2022 2024 -10.0%
Slide 14: 2024 Year End Debt Profile
2024 YEAR END DEBT PROFILE 2023 2024 Change Cash Balance $953 $1,232 +29.3% Debts with Fixed Maturities $1,333 $1,039 -22.1% Working Capital Financing $601 $238 -60.4% Total Debts $1,934 $1,277 -34.0% Total Net Debts $981 $45 -95.4% Floating Rate 40% $767 28% $354 -53.8% Fixed Rate 60% $1,167 72% $9
Slide 15: Steve Richman, Chief Executive Officer
STEVE RICHMAN CHIEF EXECUTIVE OFFICER
Slide 16: Built by People & Culture
OUR FOUNDATION… BUILT BY PEOPLE & CULTURE
Slide 17: Grow Sales, Drive Innovative Solutions, Deliver Strong Financial Results
GROW SALES DRIVE INNOVATIVE SOLUTIONS DELIVER STRONG FINANCIAL RESULTS
Slide 18: 16 Year Performance Trend
16 YEAR PERFORMANCE TREND SALES +11% CAGR SALES +11% CAGR 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 EBIT +17% CAGR 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 NET PROFIT +21% CAGR 2009 2010 2011 2012 2013 2014 2015 2016 2017 2
Slide 19: Sales Performance
SALES PERFORMANCE ALL FOCUS: OTHER SALES GROWTH: -14% +6% +12% PROFITABILITY: ALL OTHER
Slide 20: Financial Focus Areas
FINANCIAL FOCUS AREAS #1 #2 #3 SALES EBIT FREE CASH GROWTH ACCRETION FLOW ABOVE MARKET DRIVING TO 10% OVER $1B USD OF SALES ANNUALLY
Slide 21: Cordless Domination
CORDLESS DOMINATION WITH DEEPLY ENTRENCHED BATTERY SYSTEMS DELIVERING PRODUCTIVITY DELIVERING VALUE & & SAFETY SOLUTIONS SOLVING END USER NEEDS
Slide 22: $100B+ Global Opportunity
$100B+ GLOBAL OPPORTUNITY OUR CORE TRADES MECHANICAL ELECTRICAL PLUMBING REMODELING UTILITY TRANSPORTATION MAINTENANCE GENERAL CONTRACTING LANDSCAPE MAINTENANCE RENEWABLE ENERGY MINING
Slide 23: $80B+ Global Opportunity
RYOsl LIGHT DIY HEAVY DIY TRANSPORTATION MAINTENANCE LIFESTYLE & LAWN & GARDEN RECREATION CLEANING
Slide 24: Disruptive Innovation
WE HAD TO THINK DIFFERENTLY… DISRUPTIVE INNOVATION “PROBLEMS CANNOT BE SOLVED BY THE SAME LEVEL OF THINKING THAT CREATED THEM.” ALBERT EINSTEIN 1879 – 1955 THEORETICAL PHYSICIST
Slide 25: Disruptive Innovation
SYSTEM ARCHITECTURE HARDWARE DEVELOPMENT DISRUPTIVE INNOVATION NEW PRODUCT DESIGN MANUFACTURING DISTRIBUTION & SUPPLY CHAIN
Slide 26: People & Culture
PEOPLE & CULTURE
Slide 27: Bobby Shaw, Group President - Consumer Power Tools
BOBBY SHAW GROUP PRESIDENT - CONSUMER POWER TOOLS
Slide 28: Ryobi 400+ Cordless Solutions
Slide 29: Global Sales Growth Cordless
GLOBAL SALES GROWTH CORDLESS: CAGR +15% 2016 2024
Slide 30: "Do It Yourself" (DIY) User Strategy
“DO IT YOURSELF” (DIY) USER STRATEGY
Slide 31: Customer Strategy
RYOsl NEW USERS EXISTING USERS
Slide 32: Ryobi Advantage
RYOBI ADVANTAGE COMPATIBILITY PERFORMANCE. SYSTEM SIZE NO CUSTOMER LEFT BEHIND INNOVATION. PERFORMANCE. VALUE. LARGEST BREADTH OF LINE
Slide 33: Innovation. Performance. Value.
INNOVATION. PERFORMANCE. VALUE. 2X FASTER Cutting 44% QUIETER 2X MORE Power LESS VIBRATION 24% MORE Velocity BEST Cut Performance
Slide 34: A Tool for Every Yard
7, GAS PERFORMANCE. CORDLESS CONVENIENCE.
Slide 35: Lifestyle & Recreation
CORDLESS SYSTEM SOLUTIONS FOR ON THE GO
Slide 36: Demand Generation
DEMAND GENERATION IN STORE ONLINE DIGITAL/SOCIAL
Slide 37: Distribution Partners
ZUNNINGS ‘warehouse | MBricolage [JULA)
Slide 38: Own the Home
OWN THE HOME IN THE HOME IN THE YARD ON THE GO
Slide 39: Shane Moll, Group President - Milwaukee Tool
SHANE MOLL GROUP PRESIDENT – MILWAUKEE TOOL POWER TOOLS & EQUIPMENT
Slide 40: Productivity & Safety Solutions
mage” PRODUCTIVITY & SAFETY SOLUTIONS + “ONE TEAM FOCUSED ON THE USER
Slide 41: Global Sales Growth
GLOBAL SALES GROWTH +12% CAGR = 22% +11% +22% +38% +26% +22% +28% +22% +21% +24% +22% +20% +18% +26% +25% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Reported Currency 2010 – 2013, local currency after 2014
Slide 42: $100B+ Global Opportunity
$100B+ GLOBAL OPPORTUNITY OUR CORE TRADES MECHANICAL ELECTRICAL PLUMBING REMODELING UTILITY TRANSPORTATION MAINTENANCE GENERAL CONTRACTING LANDSCAPE MAINTENANCE RENEWABLE ENERGY MINING
Slide 43: Opportunity to Grow
CURRENT SUB-TRADES RENEWABLE LANDSCAPING TRANSPORTATION GENERAL UTILITY MECHANICAL ELECTRICAL PLUMBING REMODELING MINING ENERGY & TREE CARE MAINTENANCE CONTRACTING COMMERCIAL UTILITY SCA LE POWER COMMERCIAL COMMERCIAL MAINTENANCE AF TER MA RKET CA RPENTRY PLUMBING CONSTR UCTION HVA C SOLAR Gener ati
Slide 44: Earning the Right to Partner | 1,600+ Strong
JOBSITE SOLUTIONS TEAM EARNING THE RIGHT TO PARTNER | 1,600+ STRONG
Slide 45: Hypergrowth Segments
HYPERGROWTH SEGMENTS DATA CENTERS ENERGY MEGA PROJECTS INFRASTRUCTURE
Slide 46: Embedded Within the Entire Value Chain
POWER GENERATION POWER TRANSMISSION EMBEDDED WITHIN THE ENTIRE VALUE CHAIN POWER TRANSFORMERS DATA CENTERS POWER DISTRIBUTION & SUBSTATIONS
Slide 47: Solutions Provider: Power Utility
SOLUTIONS PROVIDER $12B+ GLOBAL OPPORTUNITY POWER UTILITY
Slide 48: Solutions Provider: Electrical
SOLUTIONS PROVIDER $15B+ GLOBAL OPPORTUNITY ELECTRICAL
Slide 49: Solutions Provider: Mechanical
SOLUTIONS PROVIDER $9B+ GLOBAL OPPORTUNITY MECHANICAL
Slide 50: Technology Leadership
TECHNOLOGY LEADERSHIP CELLS BATTERY PACKS MOTORS ELECTRONICS CHARGING CONNECTIVITY SOFTWARE AI / ML
Slide 51: PowerState
POWERSTATE’ BRUSHLESS MOTOR REDLINK PLUS’ INTELLIGENCE REDLITHIUNM FORGE’ HD12.0 BATTERY PACK FITS M18™ TOOLS. _ POWERED x 4 2007 a AUTO STOP) JACHINE— =.) LEARNING
Slide 52: Demand Creation
DEMAND CREATION Facebook and Instagram are trademarks of Meta Platforms Inc., YouTube is a trademark of Google Inc. LinkedIn is a trademark of LinkedIn.
Slide 53: Milwaukee
Slide 54: TTI
Techtronic Industries Company — FY2024 Earnings Presentation on 6ix