Techtronic Industries Co., Ltd. · HKEX:669
Techtronic Industries — FY2019 Earnings Presentation
46 slides from Techtronic Industries's earnings presentation, Mar 5, 2020
Slide 1: 2019 Annual Results Presentation
2019 Annual Results Presentation March 5th, 2020
Slide 2: Frank Chan
Frank Chan
Slide 3: 2019 Full Year Results
2019 Full Year Results 2018 2019 Change Sales $7,021 $7,667 +9.2% Gross Profit $2,615 $2,893 +10.6% Gross Margin % 37.2% 37.7% +50 bps EBIT $607 $673 +10.9% % of sales 8.7% 8.8% Net Profit $552 $615 +11.3% % of sales 7.9% 8.0% EPS (cents) 30.16₵ 33.67₵ +11.6% Final Dividend (HK cents) 50.00₵ 58.00₵
Slide 4: Sales, EBIT & Net Profit Year Performance Trend
Sales, EBIT & Net Profit 10 Year Performance Trend Sales +10% CAGR 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 EBIT +17% CAGR 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Net Profit +23% CAGR 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Slide 5: 2019 Segment Results
2019 Segment Results Segment 2018 2019 Change LC Sales $6,009 $6,792 +13.0% +14.6% Power Segment % 85.6% 88.6% Equipment Op Profit $598 $663 +10.8% % of sales 10.0% 9.8% Sales Sales Sales $1,012 $1,012 $875 $1,012 $875 $875 -13.5% -13.5% -13.5% -12.5% -12.5% -12.5% Floorcare Floorcare Floorcare & &
Slide 6: 2019 Region Sales
2019 Region Sales 2018 2019 Change North $5,372 $5,910 +10.0% America Region % 76.5% 77.1% Europe $1,071 $1,161 +8.4% Region % 15.3% 15.1% ROW $578 $596 +3.1% Region % 8.2% 7.8%
Slide 7: 2019 Income Statement
2019 Income Statement 2018 2019 Change Sales $7,021 $7,667 +9.2% Gross Profit $2,615 $2,893 +10.6% % of sales 37.2% 37.7% Selling, Distribution, & Advertising $1,103 $1,195 +8.3% Administrative Expenses $708 $805 +13.7% Research & Development $203 $230 +13.4% Total SG&A Expenses $2,014 $2,230 +10.7%
Slide 8: 2019 Financial Position
2019 Financial Position 2018 2019 Change Non-current Assets $2,124 $2,674 +25.9% Current Assets $4,225 $5,024 +18.9% Current Liabilities $2,616 $3,218 +23.0% Net Current Assets $1,609 $1,806 +12.3% Long-term Liabilities $676 $1,086 +60.8% Equity $3,057 $3,394 +11.0%
Slide 9: 2019 Gearing Trend
2019 Gearing Trend 104.3% 0.5%
Slide 10: 2019 Key Financial Figures
2019 Key Financial Figures 2018 2019 Change Inventory $1,767 $2,113 Days 92 101 +9 days Receivables $1,089 $1,161 Days 57 55 -2 days Payables $1,922 $2,177 Days 100 104 +4 days Net W/C $934 $1,097 % of Sales 13.3% 14.3% +1.0% Cash Balance $1,104 $1,412 +$308 CAPEX $259 $375 +$116
Slide 11: 2019 Debt Profile
2019 Debt Profile 2018 2019 Change Cash Balance $1,104 $1,412 +27.9% Debt with Fixed Maturities $566 $863 +52.5% Working Capital Financing $399 $564 +41.4% Total Debt $965 $1,427 +47.9% Total Net Cash/ (Net Debt) $139 -$16 -111.2% Floating Rate 89% $860 76% $1,082 25.8% Fixed Rate 11% $105 24% $345
Slide 12: Joe Galli
Joe Galli
Slide 13: 2019 Full Year Sales
2019 Full Year Sales 2018 2019 Sales $7,021 $7,667 % chg Growth +9.2% % chg Growth LC +10.7%
Slide 14: Floorcare 2019 Results
Floorcare 2019 Results 2019 Change Sales $875 -13.5% EBIT $10 +12.8% % of sales 1.2%
Slide 15: 2019 Results
2019 Results 2018 2019 Change Sales $7,021 $7,667 +9.2% GM % 37.2% 37.7% +50 bps SG&A % 28.7% 29.1% +40 bps EBIT $607 $673 +10.9% % of sales 8.7% 8.8% Net Profit $552 $615 +11.3% % of sales 7.9% 8.0%
Slide 16: 2019 SG&A Strategic Investment
2019 SG&A Strategic Investment R&D Non Strategic -10 bps Product Management End User Conversion Marketing +40 bps Strategic Sales Coverage +50 bps In Store Reps Geographic Expansion LDP
Slide 17: Gross Margin Trend
Gross Margin Trend 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 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 18: 2019 Working Capital
2019 Working Capital 2018 2019 Change Inventory $1,767 $2,113 Days 92 101 +9 days Receivables $1,089 $1,161 Days 57 55 -2 days Payables $1,922 $2,177 Days 100 104 +4 days WC % of Sales +13.3% +14.3%
Slide 19: 2020
2020
Slide 20: 2019 Sales
2019 Sales +21.7%
Slide 21: 2019 Sales
2019 Sales North America +21.3% Europe +24.6% Rest of World +20.6%
Slide 22: 21° & 30° Degree Framing Nailers
21° & 30° Degree Framing Nailers
Slide 23: Nailers
Nailers
Slide 24: Hole Hawg
mies Mis] 1 = [— i oe Hole Hawg®
Slide 25: Slide 25
Slide 26: Slide 26
Slide 27: Slide 27
Slide 28: 14” Cut-Off Saw
Mier EQUIPMENT SYSTEM 14” Cut-Off Saw
Slide 29: Tower Light
Mier EQUIPMENT SYSTEM Tower Light
Slide 30: Breaker
Mier EQUIPMENT SYSTEM Breaker
Slide 31: CARRY-ON 3600W/1800W Power Supply
CARRY-ON™ 3600W/1800W Power Supply
Slide 32: REDLITHIUM Battery Packs
Mier EQUIPMENT SYSTEM REDLITHIUM™ Battery Packs
Slide 33: Slide 33
Slide 34: Slide 34
Slide 35: Slide 35
Slide 36: Radio + Charger
Radio + Charger
Slide 37: Personal Safety
Miwon Personal Safety
Slide 38: Respirators
Respirators
Slide 39: New US Hand Tool Factory
twat New US Hand Tool Factory
Slide 40: Ryobi Outdoor 40V Lithium
RYOsl OUTDOOR ONE = 40ViITHIUuM
Slide 41: Ryobi Whisper Series 40V Lithium
rRYOsIl WHISPER SERIES. 4OVirTrHIum
Slide 42: Ryobi Whisper Series 40V Lithium
rRYOsIl WHISPER SERIES. ONE =| 40OViiTrHIuM
Slide 43: Slide 43
Slide 44: Grey DASH SMARTWASH
Grey DASH SMARTWASH
Slide 45: Slide 45
Slide 46: Slide 46