Slide 1: 2006 Interim Results Announcement
2006 Interim Results Announcement 22nd August 2006
Slide 2: Agenda
Agenda ! Key achievements Mr. Horst Pudwill (Chairman & CEO) ! Financial review Mr. Frank Chan (Group Executive Director) ! Business review Mr. David Butts (Group Senior Vice President) ! Outlook Mr. Horst Pudwill (Chairman & CEO) 2006 interim results announcement 1
Slide 3: Key achievements
Key achievements For the 6 months period ended 30th June 2006 Mr. Horst Pudwill (Chairman & CEO) 2006 interim results announcement 2
Slide 4: Key achievements
Key achievements For the 6 months period ended 30th June 2006 10,217 10,737 ! Record first half turnover and profits : " Turnover increased by 5.1% to HK$10.7bn " Profits attributable to equity holders of the parent grew 10.4% to HK$504m 05 06 " EPS increased by 2.2% to HK34.40cents Turnover (HK$m)
Slide 5: Financial Review
Financial Review For the 6 months period ended 30th June 2006 Mr. Frank Chan (Group Executive Director) 2006 interim results announcement 4
Slide 6: Financial highlights
Financial highlights For the 6 months period ended 30th June 2006 1H06 1H05 Changes HK$m HK$m % Turnover 10,737 10,217 5.1 Gross profit 3,360 3,172 5.9 EBITDA 1,010 939 7.6 Operating profits 767 723 6.0 Profits attributable to equity holders 504 456 10.4 of the parent Basic EPS (HK cents) 34.40 33.6
Slide 7: Margin analysis
Margin analysis ! Gross margin improved despite raw % % material pricing pressure ! Continuous focus on new products and cost improvement programs Gross ! Total operating expenses accounted for 31.0 31.3 24.7% of Group turnover vs 24.3% in 1H05 due to additional expenditures in selling and advertisi
Slide 8: Analysis by product
Analysis by product For the 6 months period ended 30th June 2006 Sales contributions by product 82% (78%) Power equipment Floor care Laser & electronic products appliances products Revenue ( HK$m) 8,756 1,822 159 Change (% YoY) 11.0 -8.0 -54.4 Result ( HK$m) 678 67 22 Change (% YoY) 23.3 -34.7 -69.0
Slide 9: Analysis by market location
Analysis by market location For the 6 months period ended 30th June 2006 Sales contributions by market location North America Europe & other countries 73% Revenue ( HK$m ) 7,856 2,881 (74%) Change (% YoY) 3.2 10.7 Result ( HK$m ) 588 179 Change (% YoY) 4.5 11.5 Margin (% ) - 1H06 7.5 6.2 27% Margin
Slide 10: Financial position
Financial position FY2005 1H05 (HK$m) 1H06 8,078 6,921 Non-current assets 8,310 12,297 10,318 Current assets 11,822 7,411 7,892 Current liabilities 6,574 4,886 2,426 Net current assets 5,248 6,731 5,482 Long-term liabilities 6,978 6,112 3,764 Shareholders’ funds 6,503 1.66 1.31 Current ratio 1.80 5.
Slide 11: Healthy working capital position
Healthy working capital position Turnover days 1H06 1H05 Inventory (1) 69 71 Trade receivables (2) 51 58 Trade & other payables (3) 56 61 (1) Average inventory / sales x 365 (2) Average trade receivables / sales x 365 (3) Average trade & other payables / sales x 365 2006 interim results announcement
Slide 12: Cash and borrowing profile
Cash and borrowing profile Well-balanced loan portfolio for long-term growth ! The Group’s balance sheet remained solid and healthy 3,268 5,545 ! Well managed interest exposure with 67.4% of the long-term loan with fixed interests 611 Zero coupon ! Maintain liquidity for potential business CB opport
Slide 13: Business Review
Business Review Mr. David Butts (Group Senior Vice President) 2006 interim results announcement 12
Slide 14: Sales contributions by type: Continued shift to our Brands
Sales contributions by type Continued shift to our Brands OEM & private label 16% (18%) Own & licensed brands 84% (82%) (%) – 1H05 figures Note :Own & licensed brands include RIDGID® which is a registered trademark of Ridgid, Inc., part of Emerson Professional Tools, a business of St. Louis-based Em
Slide 15: Power Equipment Products
Power Equipment Products ! Power Equipment brands achieved double digit growth in aggregate with margin improvement through : # Numerous new product introductions # High impact marketing programs # Maintaining strong customer partnerships ! Milwaukee / AEG integration # Successfully transferred some
Slide 16: Power Tools
Power Tools ! Milwaukee® contributed excellent growth in the U.S. and Europe # Extension of V28™ lithium-ion cordless range # A new line of quality pneumatic tools launched in 1Q06 # Expansion of lithium-ion cordless platform e.g. Milwaukee® V18™, RIDGID® XLi™24-volt and Max Select™ ! AEG® added a n
Slide 17: Outdoor power equipment
Outdoor power equipment ! Expanded the business with new products under our brands including: # High pressure washers # Trimmer - edger combos # Gas chain saws ! Weather related factors resulted in slower than expected demand ! Continued improvements in our manufacturing operations and maintained ex
Slide 18: Floor care appliances
Floor care appliances ! In North America, Dirt Devil® branded products gained or held share in key product categories with increased average selling prices # Innovative Reaction™Dual-Cyclonic vacuum gained broad distribution and is supported by consumer advertising # Sears 2005 Partners in Progress
Slide 19: Laser & electronic products
Laser & electronic products ! After high growth the past few years, a slowdown in the laser measurement and solar light markets due to increased market saturation, negatively affected turnover and margin ! New OEM products in infant care and strong operational initiatives partially offset the negati
Slide 20: Outlook
Outlook Mr. Horst Pudwill (Chairman & CEO) 2006 interim results announcement 19
Slide 21: Outlook
Outlook ! TTI is confident of being able to deliver a strong performance in the second half of 2006 ! Power Equipment Products will continue to lead the growth with: # Aggressive expansion in the lithium-ion power tools # Integration and synergy programs will produce the expected savings going forwa
Slide 22: Thank you
Tri Na Thank you ie” Homelite’ Royal Bea Reona CED seure
Slide 23: 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