Techtronic Industries Co., Ltd. · HKEX:669
Techtronic Industries — FY2018 Earnings Presentation
40 slides from Techtronic Industries's earnings presentation, Mar 7, 2019
Slide 1: 2018 Annual Results Presentation
2018 Annual Results Presentation March 7th, 2019
Slide 2: Frank Chan
Frank Chan
Slide 3: 2018 Full Year Results
2018 Full Year Results (US$ m) 2017 2018 Change Sales $6,064 $7,021 +15.8% Gross Profit $2,226 $2,615 +17.4% Gross Margin % 36.7% 37.2% +50 bps EBIT $519 $607 +17.0% % of sales 8.6% 8.7% Net Profit $470 $552 +17.4% % of sales 7.8% 7.9% EPS (cents) 25.66₵ 30.16₵ +17.5% Final Dividend (HK cents) 39.75
Slide 4: Sales and EBIT 8 Year Performance Trend
Sales and EBIT 8 Year Performance Trend (US$ m) Sales +10% CAGR 7,021 6,064 5,480 4,753 5,038 4,300 3,667 3,852 2011 2012 2013 2014 2015 2016 2017 2018 EBIT +16% CAGR 607 519 400 450 304 351 219 260 2011 2012 2013 2014 2015 2016 2017 2018
Slide 5: 2018 Segment Results
2018 Segment Results (US$ m) 2017 2018 Change Segment Sales $5,138 $6,009 +17.0% Power Segment % 84.7% 85.6% Equip. EBIT $512 $598 +16.9% % of sales 10.0% 10.0% Sales $926 $1,012 +9.3% Floorcare & Segment % 15.3% 14.4% Appliance EBIT $7 $9 +22.9% % of sales 0.8% 0.9%
Slide 6: 2018 Region Sales
2018 Region Sales (US$ m) 2017 2018 % Growth Region North $4,626 $5,372 +16.1% America Region % 76.3% 76.5% EMEA $919 $1,071 +16.6% Region % 15.1% 15.3% ROW $519 $578 +11.4% (Rest of World) Region % 8.6% 8.2%
Slide 7: 2018 Income Statement
2018 Income Statement (US$ m) 2017 2018 Change Sales $6,064 $7,021 +15.8% Gross Profit $2,226 $2,615 +17.4% % of sales 36.7% 37.2% Selling, Distribution, & Advertising $925 $1,103 +19.3% Administrative Expenses $624 $708 +13.5% Research & Development $163 $203 +23.8% Total SG&A Expenses $1,712 $2,01
Slide 8: 2018 Financial Position
2018 Financial Position (US$ m) 2017 2018 Change Non-current Assets $1,964 $2,124 +8.1% Current Assets $3,634 $4,225 +16.3% Current Liabilities $2,145 $2,616 +21.9% Net Current Assets $1,489 $1,609 +8.1% Long-term Liabilities $712 $676 -5.2% Equity $2,741 $3,057 +11.6%
Slide 9: 2018 Gearing Trend
2018 Gearing Trend 100.0% 104.3% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% -10.0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 -20.0% -4.5%
Slide 10: 2018 Key Financial Figures
2018 Key Financial Figures (US$ m) 2017 2018 Change Inventory $1,467 $1,767 Days 88 92 +4 days Receivables $1,106 $1,089 Days 67 57 -10 days Payables $1,574 $1,922 Days 95 100 +5 days Net Working Capital $999 $934 % of Sales 16.5% 13.3% Cash Balance $864 $1,104 +27.8% CAPEX $205 $259 +26.3%
Slide 11: 2018 Debt Profile
2018 Debt Profile (US$ m) 2017 2018 Change Cash Balance $864 $1,104 +27.8% Debt with Fixed Maturities $564 $566 +0.3% Working Capital Financing $285 $399 +40.1% Total Debt $849 $965 +13.6% Total Net Cash $15 $139 +858.1% Floating Rate 88% $744 89% $860 15.6% Fixed Rate 12% $105 11% $105 -0.2% LT Deb
Slide 12: Joe Galli
Joe Galli
Slide 13: 2018 Full Year Sales
2018 Full Year Sales (US $m) 2017 2018 Sales $6,064 $7,021 % chg +15.8%
Slide 14: 2018 Sales
2018 Sales Floorcare 14% Power 18% Equipment 86% +17.0% +9.3%
Slide 15: 2018 Full Year Results
2018 Full Year Results (US $m) 2017 2018 Change Sales $6,064 $7,021 +15.8% Gross Margin % 36.7% 37.2% +50 bps SG&A % 28.2% 28.7% +50 bps EBIT $519 $607 +17.0% % of sales 8.6% 8.7% Net Profit $470 $552 +17.4% % of sales 7.8% 7.9%
Slide 16: Gross Margin Trend
Gross Margin Trend 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 37.2% 36.7% 36.2% 35.7% 35.2% 34.2% 33.5% 32.6% 32.2% 31.3% 30.8%
Slide 17: 2018 Working Capital
2018 Working Capital (US$ m) 2017 2018 Change Inventory $1,467 $1,767 Days 88 92 +4 days Receivables $1,106 $1,089 Days 67 57 -10 days Payables $1,574 $1,922 Days 95 100 +5 days WC % of Sales +16.5% +13.3% +$65M Cash
Slide 18: Productivity Progress
Productivity Progress Dec 2017 Dec 2018 Change $7,021 +15.8% Sales $6,064 23,279 +5.7% Headcount 22,033
Slide 19: Campus Hires – LDP
Campus Hires – LDP 783 International 153 USA 142 101 122 100 80 630 65 433 48 42 307 338 324 26 34 288 164 175 122 118 136 72 64 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Slide 20: Hoover ONE PWR Cordless System
Slide 21: Ryobi ONE+ 18V System
Slide 22: Outdoor
IBV rr DOW ry OUTDOOR
Slide 23: Milwaukee: Nothing but Heavy Duty
ilwauke Nothing but HEAVY DUTY.
Slide 24: Milwaukee Cordless Revolution M12 M18
Slide 25: Pipe Threader
Migs 7 ONE? KEY PIPE THREADER
Slide 26: 1" High Torque Impact Wrench
Migs 7 ONE? KEY 4” HIGH TORQUE IMPACT WRENCH
Slide 27: 7/16" Utility High Torque Impact Wrench
7/16” UTILITY HIGH TORQUE IMPACT WRENCH
Slide 28: Cordless Impact Wrenches
Miwa CORDLESS IMPACT WRENCHES
Slide 29: 4-1/2" - 6" Braking Grinder
Midge 4-1/2” - 6” BRAKING GRINDER
Slide 30: Cordless Grinders
Midge CORDLESS GRINDERS
Slide 31: Switch Tank Sprayer & Water Supply System
SWITCH TANK™ SPRAYER & WATER SUPPLY SYSTEM
Slide 32: Quik-Lok Attachment System
QUIK-LOK™ ATTACHMENT SYSTEM
Slide 33: Outdoor
OUTDOOR
Slide 34: High Output Lighting
Milwore HIGH OUTPUT LIGHTING
Slide 35: Cordless
Milwore CORDLESS
Slide 36: Cordless Tools per Core Tradesman
Miwa CORDLESS TOOLS PER CORE TRADESMAN
Slide 37: Packout
Milwore =) PACKOUT
Slide 38: Milwaukee Trades Served
Slide 39: Power Utility
Milwore POWER UTILITY
Slide 40: Slide 40