Techtronic Industries Co., Ltd. · HKEX:669
Techtronic Industries — H1 2007 Earnings Presentation
39 slides from Techtronic Industries's earnings presentation, August 2007
Slide 1: 2007 Interim Results Announcement
2007 Interim Results Announcement Aug 2007
Slide 2: Agenda
Agenda £ Overview Mr. David Butts (Group Senior Vice President) Mr. Frank Chan £ Financial review (Group Executive Director, CFO) £ Business review Mr. David Butts (Group Senior Vice President) Mr. Joe Galli (CEO, TAH) £ Outlook Mr. Horst Pudwill (Chairman & CEO) 2007 Interim Earnings Announcement 1
Slide 3: Overview
Overview Mr. David Butts (Group Senior Vice President) 2007 Interim Earnings Announcement 2
Slide 4: TTI has the vision to be number one in the industries we serve
#1 TTI has the vision to be number one in the industries we serve. 2007 Interim Earnings Announcement 3
Slide 5: Business Platforms
Business Platforms Outdoor Power Tools Products Floor Care & & & Accessories Accessories Accessories 2007 Interim Earnings Announcement 4
Slide 6: Brand Platforms
Brand Platforms Power Tools Outdoor Products Floor Care & Accessories & Accessories & Accessories 2007 Interim Earnings Announcement 5
Slide 7: Strategic Drivers
Strategic Drivers 2007 Interim Earnings Announcement 6
Slide 8: Strategic Drivers: Powerful Brands
Powerful Brands Strategic Drivers 2007 Interim Earnings Announcement 7
Slide 9: Strategic Drivers: Innovative Products
Powerful Brands Innovative Strategic Drivers Products 2007 Interim Earnings Announcement 8
Slide 10: Strategic Drivers: Best Cost
Powerful Brands Innovative Strategic Drivers Products Best Cost 2007 Interim Earnings Announcement 9
Slide 11: Strategic Drivers: Exceptional People
Powerful Brands Exceptional Innovative Strategic Drivers People Products Best Cost 2007 Interim Earnings Announcement 10
Slide 12: Expanding Geographical Reach
Expanding Geographical Reach 2007 Interim Earnings Announcement 11
Slide 13: 2007 1st Half Highlights
2007 1st Half highlights £ Record Turnover and Profits £ Global leader – Hoover integration on target £ Growth – Power Tool brands £ Growth – Floor Care brands £ Growth – Europe £ Future – Strategic Repositioning Plan 2007 Interim Earnings Announcement 12
Slide 14: Strategic Repositioning Plan
Strategic repositioning plan Includes 3 Major Initiatives: 1. Re-deploy global manufacturing & product development a) Hoover integration b) Redeployment of power tool manufacturing c) Creation of best cost manufacturing vision 2. Expansion of our brands and product categories 3. Rationalization of b
Slide 15: Financial Review
Financial Review Mr. Frank Chan (Group Executive Director, CFO) 2007 Interim Earnings Announcement 14
Slide 16: Financial Highlights
Financial highlights For the 6 months period ended 30th, June 2007 2007 2006 Changes HK$m HK$m % Turnover 11,928 10,737 11.1 Gross Profit 3,790 3,360 12.8 EBITDA 1,093 1,010 8.2 Operating profit 808 767 5.3 Profit attributable to equity holders 509 504 1.1 of the parent Basic EPS (HK cents) 34.50 34
Slide 17: Margin Analysis
Margin analysis % £ Gross margin improved because of % favorable currency gains in the Euro Zone £ Increase of raw material costs and RMB appreciation were partially 31.8 31.3 Gross offset by new products, cost containment programs, and Group synergies 9.4 £ Higher SG&A expenses from the Hoover 9.2
Slide 18: Analysis by Product
Analysis by product For the 6 months period ended 30th, June 2007 Sales contributions by product Power Floor care equipment & Others Revenue ( HK$m) 8,249 3,679 69% Change (%YoY) -5.8 85.7 (82%) Result ( HK$m) 686 122 31% Change (%YoY) 1.2 36.3 (18%) Margin (%) - 2007 8.3 3.3 Margin (%) - 2006 7.7 4
Slide 19: Analysis by Market Location
Analysis by market location For the 6 months period ended 30th, June 2007 Sales contributions by market location North America Europe & other countries Revenue ( HK$m ) 8,742 3,186 73% Change (%YoY) 11.3 10.6 (73%) Result ( HK$m ) 617 191 Change (%YoY) 4.9 6.7 27% Margin (%) - 2007 7.1 6.0 (27%) Mar
Slide 20: Analysis by Brand
Analysis by brand OEM & Private Label Own & Licensed Brands 16% (16%) New 84% in 2007 (84%) (%) – June 2006 figures 2007 Interim Earnings Announcement 19
Slide 21: Financial Position
Financial position Dec 2006 1H 2007 (HK$m) 1H 2006 8,464 9,195 Non-current assets 8,310 12,856 15,107 Current assets 11,822 7,214 9,728 Current liabilities 6,574 5,642 5,379 Net current assets 5,248 7,028 6,992 Long-term liabilities 6,978 6,997 7,497 Shareholders’ funds 6,503 1.78 1.55 Current ratio
Slide 22: Healthy Working Capital Position
Healthy working capital position Turnover days Jun-07 Dec-06 Jun-06 Inventory (1) 71 67 69 Trade receivables (2) 60 54 51 Trade & other payables (3) 57 56 56 £ Working capital position remains healthy. £ Higher inventory in preparation for peak shipment in 2H. £ Negotiated better terms with supplier
Slide 23: Cash and Borrowing Profile
Cash and borrowing profile Well-balanced loan portfolio for long-term growth LT borrowings added in 2005: -US$200m fixed interest rate Notes -US$200m syndicated loan 1,849 3,677 5,355 (HK$m) 21% Zero coupon Short-term borrowing CB Long-term borrowing Fixed 49% Cash Floating 30% 2007 Interim Earnings
Slide 24: Business Review – Power Tools and Accessories
Business Review – Power Tools and Accessories Mr. David Butts (Group Senior Vice President) 2007 Interim Earnings Announcement 23
Slide 25: Business Review: Power Equipment
Business review Power equipment 8,756 £ Turnover declined with Outdoor Products 8,249 ü Exited low margin product categories £ Turnover growth in Power Tool brands ü Europe and ROW continued growth trend 2006 2007 £ Improved margin to 8.3% from 7.7% in 2006 Divisional turnover ü Efficiency gains in
Slide 26: Business Review: Power Tools
Business review Power tools 2007 Interim Earnings Announcement 25
Slide 27: Business Review: Power Tools
Business review Power tools 2007 Interim Earnings Announcement 26
Slide 28: Business Review: Power Tools
Business review Power tools 2007 Interim Earnings Announcement 27
Slide 29: Business Review: Power Tools
Business review Power tools 2007 Interim Earnings Announcement 28
Slide 30: Business Review – Outdoor Products and Floor Care
Business Review – Outdoor Products and Floor Care Mr. Joe Galli (CEO, TTA) 2007 Interim Earnings Announcement 29
Slide 31: Outdoor Products
Power equipment Outdoor products 2007 Interim Earnings Announcement 30
Slide 32: Business Review: Floor Care
Business Review Floor care £ Turnover growth in 1H Floor care & Others ü Continued double digit expansion in Europe Revenue ( HK$m) 3,679 Change (%YoY) 85.7 ü Hoover contribution Result ( HK$m) 122 ü Increased marketing efforts Change (%YoY) 36.3 Margin (%) - 2007 Margin (%) - 2006 3.3 4.5 £ Hoover
Slide 33: Business Review: Floor Care
Business Review Floor care 2007 Interim Earnings Announcement 32
Slide 34: Business Review: Floor Care
Business Review Floor care 2007 Interim Earnings Announcement 33
Slide 35: Business Review: Floor Care
Business Review Floor care 2007 Interim Earnings Announcement 34
Slide 36: Business Review: Floor Care
Business Review Floor care 2007 Interim Earnings Announcement 35
Slide 37: Outlook
Outlook Mr. Horst Pudwill (Chairman and CEO) 2007 Interim Earnings Announcement 36
Slide 38: 2007 Interim Earnings Announcement
2007 Interim Earnings Announcement 37
Slide 39: 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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