Techtronic Industries Co., Ltd. · HKEX:669
Techtronic Industries — FY2006 Earnings Presentation
31 slides from Techtronic Industries's earnings presentation, Apr 19, 2007
Slide 1: 2006 Annual Results Announcement
2006 Annual Results Announcement 19th April 2007
Slide 2: Agenda
Agenda £ Financial review Mr. Frank Chan (Group Executive Director) £ Business review Mr. David Butts (Group Senior Vice President) £ Outlook Mr. Horst Pudwill (Chairman & CEO) 2006 annual results announcement 1
Slide 3: Financial Review
Financial Review Mr. Frank Chan (Group Executive Director) 2006 annual results announcement 2
Slide 4: Financial highlights
Financial highlights For the 12 months period ended 31st December, 2006 2006 2005 Changes HK$m HK$m % Turnover 21,823 22,358 (2.39) Gross profit % 31.6% 31.0% EBITDA 2,098 1,989 5.5 Operating profit 1,656 1,576 5.0 Profit attributable to equity holders 1,072 1,019 5.2 of the parent Basic EPS (HK cen
Slide 5: Margin analysis
Margin analysis Across the board improvements % % £ Gross margin improved despite raw material pricing pressure £ Helped by favorable product portfolio, 31.6 31.0 Gross new products, and cost improvement programs £ Controlled operating expenses combined 9.6 with gross margin improvements resulted EB
Slide 6: Five year summary
Five year summary 22,358 21,823 1,072 1,019 926 16,304 674 5-Year CAGR 13,183 5-Year CAGR 9,493 413 27% 23% 02 03 04 05 06 02 03 04 05 06 Turnover (HK$m) Net profit (HK$m) 73.5 73.2 69.3 4.78 5-Year CAGR 4.18 5-Year CAGR 51.6 22% 35% 33.2 2.55 1.90 1.42 02 03 04 05 06 02 03 04 05 06 Earnings per sha
Slide 7: Analysis by product
Analysis by product For the 12 months period ended 31st December, 2006 Sales contributions by product Power equipment Floor care Laser & electronics 79% Revenue ( HK$m) 17,116 4,428 279 (77%) Change (%YoY) -0.4 -2.2 -57.5 Result ( HK$m) 1,462 157 37 20% Change (%YoY) 18.2 -21.5 -73.5 (20%) 1% Margin
Slide 8: Analysis by market location
Analysis by market location For the 12 months period ended 31st December, 2006 Sales contributions by market location North America Europe & other countries Revenue ( HK$m ) 16,082 5,741 74% (77%) Change (%YoY) -6.1 9.6 Result ( HK$m ) 1,384 272 Change (%YoY) -0.1 42.2 26% Margin (%) - 2006 8.6 4.7
Slide 9: Financial position
Financial position YR2006 (HK$m) 2005 8,464 Non-current assets 8,078 12,856 Current assets 12,297 7,214 Current liabilities 7,411 5,642 Net current assets 4,886 7,028 Long-term liabilities 6,731 6,997 Shareholders’ funds 6,112 1.78 Current ratio 1.66 1.22 Quick Ratio 1.12 74.1% Gearing 68.3% 5.2 Int
Slide 10: Healthy working capital position
Healthy working capital position Turnover days 2006 2005 Inventory (1) 67 55 Trade receivables (2) 54 46 Trade & other payables (3) 56 53 £ Working capital position remains healthy. £ Slower sales in 2H increased inventory levels. £ Negotiated better terms with suppliers. (1) Average inventory / sal
Slide 11: Cash and borrowing profile
Cash and borrowing profile Well-balanced loan portfolio for long-term growth LT borrowings added in 2005: -US$200m fixed interest rate Notes -US$200m syndicated loan 691 3,719 5,570 (HK$m) 20% Zero coupon Short-term borrowing CB 47% Long-term borrowing Fixed Floating Cash 33% 2006 annual results ann
Slide 12: Business Review
Business Review Mr. David Butts (Group Senior Vice President) 2006 annual results announcement 11
Slide 13: TTI has the vision to be number one in the industries we serve
TTI has the vision to be number one in the industries we serve. 2006 annual results announcement 12
Slide 14: Powerful Brands, Exceptional People, Innovative Products
Powerful Brands Exceptional Innovative Strategic Drivers People Products Best Cost 2006 annual results announcement 13
Slide 15: 2006 Highlights
Business Review 2006 Highlights £ Record Profits - 12th year of increase £ Global leader - Hoover® acquisition £ Growth - Professional power tool brands £ Growth - Europe £ Strengthened - Global management team £ Consolidation - 2005 power tool acquisition 2006 annual results announcement 14
Slide 16: Business by Brand
Business by Brand OEM & Private Label Own & Licensed Brands 20% (20%) 80% (80%) New in 2007 (%) – 2005 figures 2006 annual results announcement 15
Slide 17: Powerful Brands
Powerful Brands 79% Floor Care 20% Power Tools 1% & Accessories Power Equipment Outdoor Power Equipment 2006 annual results announcement 16
Slide 18: Expanding Geographical Reach
Expanding Geographical Reach 2006 annual results announcement 17
Slide 19: Power Equipment
Business Review Power Equipment 17,177 17,116 £ Profit expanded 18.2% £ Improved margin to 8.5% from 7.2% in 2005 ü Innovative new products ü Growth of higher value brands ü Product transfer programs & cost savings initiatives 2005 2006 Divisional turnover £ Turnover almost flat due to soft macro (H
Slide 20: Power Tools
Power Equipment Power Tools £ Milwaukee® and AEG® professional brands grew ü Lithium ion cordless technology expands cordless segment ü Geographical expansion ü Introducing “Jobsite Solutions” 2006 annual results announcement 19
Slide 21: Power tools
Power equipment products Power tools £ Profit margins improve ü Innovative new products ü Milwaukee® transfer ü CIP ü Global R&D efforts 2006 annual results announcement 20
Slide 22: Power Tools: RYOBI One+ franchise
Power Equipment Power Tools £ RYOBI® One+™ franchise ü Added nine innovative new products ü Expansion in Europe and ROW 2006 annual results announcement 21
Slide 23: Power Tool Accessories
Power Equipment Power Tool Accessories £ Growing business segment £ Innovative product launches ü AEG® DrillConnect™ SDS-max adapter system ü AEG® Carbide Tipped Universal Hole Saws ü Milwaukee® Ice Edge™, a new generation of reciprocating saw blades ü RYOBI® laser measuring tools 2006 annual result
Slide 24: Outdoor Power Equipment
Power equipment products Outdoor Power Equipment £ Turnover growth for the year and double-digit gains coming outside of North America ü RYOBI® entered new product categories ü HOMELITE® MightyLite™ lightest weight outdoor product in the industry 2006 annual results announcement 23
Slide 25: Floor Care
Business Review Floor Care £ Turnover growth in 2H and full year decline of 2.2% 4,526 4,428 ü Strategic shift to brands ü Increased marketing efforts ü Continued double digit expansion in Europe and ROW £ Margin pressures for global material costs 2005 2006 Divisional turnover ü Innovative new prod
Slide 26: Floor Care: Hoover acquisition
Business Review Floor Care £ Hoover® acquisition creates global leader Floor Care £ Premium Hoover® brand £ Global Scale £ Powerful brand portfolio £ 2007 Integration 2006 annual results announcement 25
Slide 27: Floor Care: brand and product strength
Business Review Floor Care £ Brand and product strength in all major categories Uprights Canisters Extractors Sticks & Hand 2006 annual results announcement 26
Slide 28: Outlook
Outlook Mr. Horst Pudwill (Chairman & CEO) 2006 annual results announcement 27
Slide 29: Outlook
Outlook £ Solid foundation and scale advantages provide us competitive flexibility to meet market challenges £ Positive outlook for 2007 ü More powerful brand portfolio with the addition of Hoover ü Innovative products capture market share and enhance status of our brands ü Leading lithium ion batte
Slide 30: Thank you
Tri eo Thank you
Slide 31: 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