Techtronic Industries Co., Ltd. · HKEX:669
Techtronic Industries — FY2020 Earnings Presentation
60 slides from Techtronic Industries's earnings presentation, Mar 4, 2021
Slide 1: 2020 Annual Results Presentation
2020 Annual Results Presentation March 4th, 2021
Slide 2: Frank Chan
Frank Chan
Slide 3: 2020 Full Year Results
2020 Full Year Results 2019 2020 Change Sales $7,667 $9,812 +28.0% Gross Profit $2,893 $3,753 +29.7% Gross Margin % 37.7% 38.3% +52 bps EBIT $673 $868 +29.0% % of sales 8.8% 8.9% Net Profit $615 $801 +30.2% % of sales 8.0% 8.2% EPS (cents) 33.67₵ 43.80₵ +30.1% Final Dividend (HK cents) 58.00₵ 82.00₵
Slide 4: Sales, EBIT & Net Profit Year Performance Trend
Sales, EBIT & Net Profit 12 Year Performance Trend Sales +11% CAGR 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 EBIT +19% CAGR 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Net Profit +26% CAGR 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Slide 5: 2020 Segment Results
2020 Segment Results Segment 2019 2020 Change Sales $6,792 $8,730 +28.5% Power Segment % 88.6% 89.0% Equipment Op Profit $663 $844 +27.3% % of sales 9.8% 9.7% Sales $875 $1,082 +23.6% Segment % 11.4% 11.0% Floorcare Op Profit $10.3 $24.6 +138.0% % of sales 1.2% 2.3%
Slide 6: 2020 Region Sales
2020 Region Sales 2019 2020 Change North America $5,910 $7,650 +29.5% Region % 77.1% 78.0% Europe $1,161 $1,383 +19.1% Region % 15.1% 14.1% ROW $596 $779 +30.6% Region % 7.8% 7.9%
Slide 7: 2020 Income Statement
2020 Income Statement 2019 2020 Change Sales $7,667 $9,812 +28.0% Gross Profit $2,893 $3,753 +29.7% % of sales 37.7% 38.3% Selling, Distribution, & Advertising $1,195 $1,573 +31.6% Administrative Expenses $805 $1,006 +25.0% Research & Development $230 $317 +37.8% Total SG&A Expenses $2,230 $2,896 +2
Slide 8: 2020 Financial Position
2020 Financial Position 2019 2020 Change Non-current Assets $2,674 $3,050 +14.1% Current Assets $5,024 $6,340 +26.2% Current Liabilities $3,218 $4,081 +26.8% Net Current Assets $1,806 $2,259 +25.1% Long-term Liabilities $1,086 $1,406 +29.5% Equity $3,394 $3,903 +15.0%
Slide 9: 2020 Gearing Trend
2020 Gearing Trend 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% -10.0% -20.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2019 0
Slide 10: 2020 Key Financial Figures
2020 Key Financial Figures 2019 2020 Change Inventory $2,113 $3,224 Days 101 120 +19 days Receivables $1,161 $1,284 Days 55 48 -7 days Payables $2,177 $3,137 Days 104 117 +13 days Net Working Capital $1,097 $1,371 % of Sales 14.3% 14.0% Cash Balance $1,412 $1,534 +8.6% Operating CAPEX $375 $459 +22.
Slide 11: 2020 FY Debt Profile
2020 FY Debt Profile 2019 2020 Change Cash Balance $1,412 $1,534 +8.6% Debt with Fixed Maturities $863 $1,085 +25.7% Working Capital Financing $564 $232 -58.9% Total Debt $1,427 $1,317 -7.7% Total Net Cash / (Net Debt) -$16 $217 +1493.2% Floating Rate 76% $1,082 49% $639 -41.0% Fixed Rate 24% $345 5
Slide 12: Joe Galli
Joe Galli
Slide 13: 'I am the storm.'
Fate whispers to the warrior: ‘You can not withstand the storm’ The warrior whispers back: ‘I am the storm.’
Slide 14: 2nd Half 2020
nd 2 Half 2020 +42%
Slide 15: 2020 Full Year
2020 Full Year +28%
Slide 16: 2020 Full Year +$2.1 Billion
2020 Full Year +$2.1Billion
Slide 17: 1 Pro Brand 1 DIY Brand
Global Leadership Brands # 1 Pro Brand 1 DIY Brand #
Slide 18: 2020 Full Year Sales
2020 Full Year Sales Power Equipment Floorcare 89% 11% +28.5% +23.6%
Slide 19: 2020 Results
2020 Results 2019 2020 Change Sales $7,667 $9,812 +28.0% GM % 37.7% 38.3% +52 bps SGA % 29.1% 29.5% +43 bps EBIT $673 $868 +29.0% % of sales 8.8% 8.9% Net Profit $615 $801 +30.2% % of sales 8.0% 8.2%
Slide 20: 2020 SG&A Strategic Investment
2020 SG&A Strategic Investment SG&A R&D Non Strategic Product Management -24 bps End User Conversion Marketing +43 Strategic bps +67 bps Sales Coverage In Store Reps Geographic Expansion LDP
Slide 21: 2020 Gross Margin
2020 Gross Margin 2019 2020 38.3% 37.7%
Slide 22: Gross Margin Trend
Gross Margin Trend 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 38.3% 37.7% 37.2% 36.7% 36.2% 35.7% 35.2% 34.2% 33.5% 32.6% 32.2% 31.3% 30.8%
Slide 23: E-Commerce Leadership
E-Commerce Leadership INTERCONNECTED Partner of the Year
Slide 24: 2020 Working Capital
2020 Working Capital 2019 2020 Change Inventory $2,113 $3,224 Days 101 120 +19 days Receivables $1,161 $1,284 Days 55 48 -7 days Payables $2,177 $3,137 Days 104 117 +13 days WC % of Sales +14.3% +14.0%
Slide 25: Environmental, Social, Governance
a e) Environmental Tid Social N a Governance
Slide 26: 2021 New Manufacturing Sites
2021 New Manufacturing Sites NORTH AMERICA ASIA Mukwonago, WI West Bend, WI USA USA Cookeville, TN USA Torreón, Coahuila, Anderson, SC Ho Chi Minh City MEXICO USA VIETNAM
Slide 27: Floorcare 2020 Results
Floorcare 2020 Results 2019 2020 Change Sales $875 $1,082 +23.6% EBIT $10 $25 +138.0% % of sales 1.2% 2.3%
Slide 28: Carpet Washing & Formulas
CARPE SET TAW/ aN NG ) L KS AD ] ]
Slide 29: Cordless Cleaning Platform
CORDLESS CLEANING PLATFORM
Slide 30: Slide 30
Slide 31: Global Outdoor
GLOBAL OUTDOOR +46.3%
Slide 32: Cordless Mowers
- "RYOBI — CORDLESS } CORDLESS MOWERS
Slide 33: Riding Mowers
RIDING MOWERS 33
Slide 34: Made in USA Cordless Mowers
CORDLESS MOWERS MADE IN USA
Slide 35: 25 New Products
ONE 4ov We 25 NEW PRODUCTS =
Slide 36: Slide 36
Slide 37: 18 Tools
→ 18 TOOLS
Slide 38: Hobby & Craft
HOBBY & CRAFT
Slide 39: Sweden
SABAH AUS SWEDEN st ae a= Ng] RvOR!
Slide 40: Outdoor Cleaning Tools
TOTAL PRODUCTS TOOLS 123 OUTDOOR 44 CLEANING 15 182
Slide 41: 2020 Sales
2020 Sales +25.8%
Slide 42: 2020 Sales by Region
2020 Sales +25.5% +24.6% North Europe America +31.0% ROW
Slide 43: Sawzall Recip Saw w/ One-Key
SAWZALL™ RECIP SAW W/ ONE-KEY™
Slide 44: 1" SDS Plus Rotary Hammer w/ HammerVac Dust Extractor
1” SDS PLUS ROTARY HAMMER w/ HAMMERVAC DUST EXTRACTOR
Slide 45: 1/4" Blind Rivet Tool
tye on ae. _ 4 | /@* BLIND | RI i “TOOL tnt, 4A a 3 po, “gy v, : : Fucu
Slide 46: 4-1/2" / 5" Grinder
a @ie/#% Qt Bee BOS ee BO Cw
Slide 47: Total Platform = 216 Products
TOTAL PLATFORM = 216 PRODUCTS
Slide 48: Nailers
NAILERS
Slide 49: 23 Gauge Pin Nailer
23 GAUGE PIN NAILER
Slide 50: High Speed Ratchets
1/4" 3/8" ¼" & 3/8* HIGH SPEED RATCHETS
Slide 51: Low Speed Tire Buffer
LOW SPEED TIRE BUFFER
Slide 52: Compact Band Saw
ARIF 053F fer Ar FP AF INEA I UELIVEAA EE
Slide 53: ProPEX Expander
lay = Vi wa Vy,uwnatla’yN\| UWL Par EN
Slide 54: Total Platform = 130 Products
TOTAL PLATFORM = 130 PRODUCTS
Slide 55: Laser Levels & Accessories
i. Sig LASER L . ee — LITHIUM USB
Slide 56: Total Platform = 10 Products
TOTAL PLATFORM = 10 PRODUCTS
Slide 57: Personal Protective Equipment
PERSONAL PROTECTIVE EQUIPMENT _= OVER 500 PRODUCTS
Slide 58: Packout
= aN PACKOU
Slide 59: Shockwave
— . et | tee Ni | SHOCKWAVE
Slide 60: Slide 60
Techtronic Industries Company — FY2020 Earnings Presentation on 6ix