Techtronic Industries Co., Ltd. · HKEX:669
Techtronic Industries — FY2008 Earnings Presentation
45 slides from Techtronic Industries's earnings presentation, April 2009
Slide 1: 2009 Annual Results Presentation
2009 Annual Results Presentation April 2009
Slide 2: Frank Chan, CFO
Frank Chan CFO 2
Slide 3: 2008 Financial Results
2008 Financial Results 2007 2008 Changes US$m US$m Sales 3,184 3,421 +7.4% Gross Profit Margin% 31.5% 30.8% SG&A % of Sales 27.9% 25.9% EBIT 115 166 +44.3% (Before one time benefit, restructuring and relocation costs, and goodwill impairment) 3
Slide 4: 2008 Financial Results
2008 Financial Results 2007 2008 Changes US$m US$m EBIT (Before one time benefit, restructuring and relocation costs, 115 166 +44.3% and goodwill impairment) One Time Benefit 49 9 (80.8%) EBIT 163 175 +7.2% (After one time benefit, before restructuring and transition costs, and goodwill impairment)
Slide 5: 2008 Strategic Repositioning Plan
2008 Strategic Repositioning Plan Original Projection Actual (US$m) 2008 Full Year 2008 Full Year Cash 49.9 56.7 Non cash 22.5 35.6 Total 72.4 92.3 Savings 25.0 48.5 5
Slide 6: Strategic Repositioning Plan Completed
Strategic Repositioning Plan Completed Actual Plan (US$m) 2007 2008 Total Total Change Cash 63.1 56.7 119.8 117.0 2.8 Non cash 32.4 35.6 68.0 55.0 13.0 Total 95.5 92.3 187.8 172.0 15.8 6
Slide 7: 2008 Financial Position
2008 Financial Position 2007 2008 Changes US$m US$m Non-current Assets 1,284 1,284 0.0% Current Assets 1,917 1,509 (21.3%) Current Liabilities 1,536 1,375 (10.5%) Net Current Assets 381 135 (64.7%) Long-term Liabilities) 766 528 (31.0%) Shareholders’ Funds 887 878 (1.2%) Current Ratio 1.3 1.1 Quick
Slide 8: 2008 Debt Profile
2008 Debt Profile 2007 2008 Changes US$m US$m Cash 422 307 (27.3%) Short-term Debt 383 430 +12.4% Short-term Debt - CB - 13 Long-term Debt - Fixed 340 340 0.0% Long-term Debt - Floating 204 28 (86.3%) Long-term Debt - CB 13 - (100.0%) Gearing 104.3% 94.6% Interest Coverage (x)) 4.5x 4.4x 8
Slide 9: US$125m 8.5% Convertible Bonds with Warrants
US$125m 8.5% Convertible Bonds with Warrants (US$m) Tranche 1 Tranche 2 Total Convertible Bonds Size 74 51 125 Upsize Option - 25 25 Warrants Size 18 13 31 Upsize Option - 6 6 9
Slide 10: Proforma Debt Portfolio after CB Issue
Proforma Debt Portfolio after CB Issue 2008 2008 (US$m) (as reported) CB (proforma) Borrowing due within 396 (150) 246 one year 52% 32% Borrowing due after 368 150 518 one year 48% 68% Total 764** 764 100% 100% **Working capital financing excluded 10
Slide 11: Balanced maturity profile
Current and Proforma Debt Maturity Profile 200 150 100 50 - 2009 2010 2011 2012 2013 2014 2015 Actual as of 3/31/09 Proforma after CB Issue Balanced maturity profile 11
Slide 12: Proforma Debt to Equity Ratio Assuming CB converted and Warrant exercised
Proforma Debt to Equity Ratio Assuming CB converted and Warrant exercised 2008 2008 (US$m) (as reported) CB Warrant (proforma) Total Net Debt 830 (150) (37) 643 Equity 877 150 37 1,064 Debt to Equity 95% 60% Ratio 12
Slide 13: Joe Galli, CEO
Joe Galli CEO 13
Slide 14: 2008 Results: Sales Up +7.4%
2008 Results Sales Up +7.4% 14
Slide 15: 2008 Results EBIT
2008 Results 2007 2008 US$m US$m Change EBIT* 115 166 +44.3% % 3.6% 4.8% *Before one time benefit, restructuring and relocation cost, and goodwill impairment 15
Slide 16: Focus: Drive Free Cash Flow
Focus Drive Free Cash Flow 16
Slide 17: 2008 Free Cash Flow
2008 Free Cash Flow $105 (USm) ($57) 2007 2008 US$162M increase in FCF 17
Slide 18: 2008 Inventory
2008 Inventory $765 (USm) $581 88 days 62 days 2007 2008 US$184M decrease in Inventory 18
Slide 19: 2008 CAPEX
2008 CAPEX $111 (USm) $93 3.5% of sales 2.7% of sales 2007 2008 Depreciation $72m $68M US$18M decrease in CAPEX 19
Slide 20: Manufacturing and Innovation Campus
Manufacturing and Innovation Campus Innovation Center 20
Slide 21: 2008 Headcount
2008 Headcount 23,685 19,354 2007 2008 18% reduction in Headcount 21
Slide 22: 2009
2009 22
Slide 23: Outgrow the Market
Challenging economic environment Objective Outgrow the Market 23
Slide 24: 2009 Focus
2009 Focus Sales Outperform Market GM% Improve Cut Aggressively SG&A - Protect Strategic SG&A Cash Flow Continue Driving 24
Slide 25: Financial Targets
Financial Targets 2007 2008 2011 GM % 31.5% 30.8% 34%+ SG&A % 27.9% 25.9% EBIT% 3.6% 4.8% 10%+ 25
Slide 26: Continue Driving Free Cash Flow
Continue Driving Free Cash Flow Further Improvement (USm) 105 (57) 2007 2008 2009 26
Slide 27: Store Coverage Team
Team Store Coverage Team 27
Slide 28: In Store Sales
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Slide 29: In Store Sales
IN STORE SALES 29
Slide 30: In Store Sales
IN STORE SALES 30
Slide 31: In Store Sales
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Slide 32: New Product Strategy: Cordless, New Businesses
New Product Strategy Cordless New Businesses 32
Slide 33: Cordless Leadership
CORDLESS LEADERSHIP LITHIUM ( oo © g.
Slide 34: Heavy Duty
TMi vein but HEAVY DUTY:
Slide 35: Heavy Duty
TMi vein but HEAVY DUTY:
Slide 36: Ryobi Lithium 18V
rRYOsI. aiLithium 18V
Slide 37: Ryobi Lithium 12V
rRYOsI. aiLitthium 12V
Slide 38: Slide 38
Slide 39: Ryobi Gas Power
rRYOsI. Gas Power
Slide 40: New Generation Pressure Washer
NEW GENERATION PRESSURE WASHER
Slide 41: Pressure Washers
PRESSURE WASHERS
Slide 42: Generators
GENERATORS
Slide 43: Outdoor Accessories
OUTDOOR ACCESSORIES
Slide 44: 44
44
Slide 45: 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