Slide 1: 2004 Annual Results Announcement
2004 Annual Results Announcement 7th April 2005
Slide 2: Agenda
Agenda £ Key achievements Mr. Horst Pudwill (Chairman & CEO) £ Financial review Mr. Frank Chan (Group Executive Director) £ Business review Mr. David Butts (Senior Vice President) £ Outlook Mr. Horst Pudwill (Chairman & CEO) 2004 annual results announcement 1
Slide 3: Key achievements
Key achievements For the 12 months ended 31st December 2004 Mr. Horst Pudwill (Chairman & CEO) 2004 annual results announcement 2
Slide 4: Key achievements
Key achievements For the 12 months ended 31st December 16,304 £ Record results with strong organic growth across all divisions 13,183 § Turnover increased by 23.7% to HK$16.3bn § Net profit grew 39.1% to HK$938m 03 04 § EPS increased by 36.0% to HK 70.11 cents Turnover (HK$m) § Final DPS of HK 12.50
Slide 5: Exceeding our target: net profit more than double in 2 years
Exceeding our target Net profit (HK$m) More than double 938 in 2 years 674 413 02 03 04 For the 12 months ended 31st December 2004 annual results announcement 4
Slide 6: Financial Review
Financial Review For the 12 months ended 31st December, 2004 Mr. Frank Chan (Group Executive Director) 2004 annual results announcement 5
Slide 7: Financial highlights
Financial highlights 2004 2003 Changes HK$m HK$m (%) Turnover 16,304 13,183 23.7 Net profit 938 674 39.1 Basic EPS (HK cents) 70.11 51.56 36.0 DPS (HK cents) 17.00 12.50 36.0 Shareholders' funds 3,439 2,513 36.8 Book value per share (HK$) 2.54 1.90 34.0 2004 annual results announcement 6
Slide 8: Profitability
Profitability 2004 2003 Changes HK$m HK$m % Gross profit 4,941 3,898 26.7 Gross margin (%) 30.3 29.6 Operating profit 1,226 865 41.8 Operating margin (%) 7.5 6.6 Net profit 938 674 39.1 Net margin (%) 5.8 5.1 2004 annual results announcement 7
Slide 9: Five year summary
Five year summary 16,304 938 5-Year CAGR 5-Year CAGR 5-Year CAGR 70.1 43% 13,183 43% 38% 674 51.6 9,493 413 33.0 6,101 4,551 247 21.5 190 17.0 00 01 02 03 04 00 01 02 03 04 00 01 02 03 04 Turnover (HK$m) Net profit (HK$m) Earnings per share (HK cents) 2004 annual results announcement 8
Slide 10: Five year summary
Five year summary 17.0 26.8 27.3 2.5 22.2 22.6 12.5 20.7 1.9 1.4 8.0 1.0 5.8 5.0 0.8 00 01 02 03 04 00 01 02 03 04 00 01 02 03 04 Dividend per share (HK cents) Return on Equity (%) Book value per share (HK$) = Net profit / equity at year-end 2004 annual results announcement 9
Slide 11: Analysis by product
Analysis by product For the 12 months ended 31st December, 2004 Sales contributions by product Power equipment Floor care Laser & electronic 71% products appliances products (72%) Revenue ( HK$m) 11,524 4,079 701 Change (%YoY) 21.5 28.1 37.2 Result ( HK$m) 910 201 146 25% Change (%YoY) 39.3 53.2 44.
Slide 12: Analysis by market location
Analysis by market location For the 12 months ended 31st December, 2004 Sales contributions by market location North America Europe & other countries 81% Revenue ( HK$m ) 13,206 3,098 (83%) Change (%YoY) 21.1 36.1 Result ( HK$m ) 1,083 174 Change (%YoY) 42.0 42.0 Margin (%) - 2004 8.2 5.6 Margin (%)
Slide 13: Sales contributions by type
Sales contributions by type OEM & private label 28% (32%) Own & licensed brands 72% (68%) (% ) – 2003 figures 2004 annual results announcement 12
Slide 14: Financial position and working capital
Financial position and working capital As at 31st December, 2004 2003 (HK$m) 2004 1,984 Non--current assets Non 2,261 7,662 Current assets 11,642 5,678 Current liabilities 7,819 1,984 Net current assets 3,823 1,409 Long--term liabilities Long 2,563 2,513 Shareholders’funds 3,439 1.35 Current ratio 1
Slide 15: Cash and borrowing profile
Cash and borrowing profile Well-balanced loan portfolio for long-term growth Net cash of HK$2,093m HK$1,353m 5,452 (HK$m) Short-term borrowing Long-term borrowing Cash 840 2,586 1,855 498 2,519 781 1,348 554 2002 2003 2004 2004 annual results announcement 14
Slide 16: Strong free cash flow
Strong free cash flow 1,702 (HK$m) 1,256 612 2002 2003 2004 2004 annual results announcement 15
Slide 17: Business Review
Business Review Mr. David Butts (Senior Vice President) 2004 annual results announcement 16
Slide 18: Power tools
Power tools £ North America delivered strong growth ü Ryobi and RIDGID® brands played key roles ü Ryobi 18-volt One+ System™ --- a unique marketing strategy featuring an affordable 18-volt battery alongside a wide range of cordless power tools and accessories £ Ryobi Europe made substantial market g
Slide 19: Milwaukee / AEG Acquisition: Professional Power Tools
Milwaukee / AEG Acquisition Professional Power Tools £ Brand portfolio : adding the professional Milwaukee® and AEG® brands of power tools and DreBo® carbide drill bits £ Distribution channel : access to professional channel with Milwaukee’s strong dealer base in North America / Europe and adding AE
Slide 20: Power tools: V28 cordless power tool line
Power tools V28™ cordless power tool line Revolutionary break through in cordless tools technology! ü 1st Lithium-ion technology meets ‘high-current draw’! ü 28Volt, Twice the run time of traditional 18Volt – at less weight! ü Fade-free power, the last job as good as the first! ü Potential for Corde
Slide 21: Outdoor power equipment
Outdoor power equipment £ North America business expanded ü Added the Ryobi brand to our outdoor power equipment business ü New Ryobi gasoline trimmer range met exceptional end-user acceptance ü Homelite achieved strong growth demonstrating positive consumer acceptance and loyalty ü Launch of a new
Slide 22: Floor care appliances
Floor care appliances £ Dirt Devil delivered market gains in North America and Europe ü North America growth from penetration of key customers ü Top selling retail brand in Germany £ Integration of North America operations streamlined the new product development process and enhanced inventory manage
Slide 23: Laser & electronic products
Laser & electronic products £ Another excellent year as a result of successful product expansion and aggressive cost containment £ Enhanced factory automation allowed quicker response to large increase in demand and to achieve faster speed-to-market for all our ODM partners £ Award-winning launch of
Slide 24: Outlook
Outlook Mr. Horst Pudwill (Chairman & CEO) 2004 annual results announcement 23
Slide 25: Outlook
Outlook £ 2005 outlook ü Challenges ü Prospects £ Integration plan of Milwaukee and AEG businesses ü Brand strategy ü Product extension £ Create greater efficiency on a global basis ü Raw materials status £ Expansion opportunities in Europe, the new economies and Asia 2004 annual results announcemen
Slide 26: Thank you
7D Trl Me Thank you ELECTRIC TOOLS
Slide 27: Disclaimer
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 resu