Techtronic Industries Co., Ltd. · HKEX:669

Techtronic Industries — H1 2020 Earnings Presentation

58 slides from Techtronic Industries's earnings presentation, Aug 13, 2020

  1. Slide 1: Interim Results Presentation

    2020 Interim Results Presentation August 13th, 2020

  2. Slide 2: Frank Chan

    Frank Chan

  3. Slide 3: 1H 2020 Results

    1H 2020 Results

  4. Slide 4: 2020 1st Half Results

    2020 1st Half Results 1H 2019 1H 2020 Change Sales $3,728 $4,206 +12.8% Gross Profit $1,403 $1,597 +13.9% Gross Margin % 37.6% 38.0% +40 bps EBIT $314 $363 +15.6% % of sales 8.4% 8.6% Net Profit $285 $332 +16.3% % of sales 7.6% 7.9% EPS (cents) 15.61₵ 18.14₵ +16.2% Interim Dividend (HK cents) 45.00₵

  5. Slide 5: Sales, EBIT & Net Profit 1st Half Year Performance Trend

    Sales, EBIT & Net Profit 1st Half 12 Year Performance Trend Sales +10% CAGR 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 EBIT +17% CAGR 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Net Profit +23% CAGR 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

  6. Slide 6: 2020 1st Half Segment Results

    2020 1st Half Segment Results Segment 1H 2019 1H 2020 Change LC Sales $3,322 $3,748 +12.8% +14.0% Power Segment % 89.1% 89.1% Equipment Op Profit $314 $359 +14.5% % of sales 9.5% 9.6% Sales $406 $458 +12.7% +13.6% Floorcare & Segment % 10.9% 10.9% Appliance Op Profit $0.1 $3.6 +$3.5m % of sales 0.0%

  7. Slide 7: 2020 1st Half Region Sales

    2020 1st Half Region Sales Region 1H 2019 1H 2020 Change LC North America $2,845 $3,252 +14.3% +14.5% Region % 76.3% 77.3% Europe $595 $628 +5.4% +8.2% Region % 16.0% 14.9% Rest of World $288 $326 +13.3% +21.0% Region % 7.7% 7.8%

  8. Slide 8: 2020 1st Half Income Statement

    2020 1st Half Income Statement 1H 2019 1H 2020 Change Sales $3,728 $4,206 +12.8% Gross Profit $1,403 $1,597 +13.9% % of sales 37.6% 38.0% Selling, Distribution, & Advertising $582 $671 +15.3% Administrative Expenses $403 $448 +11.3% Research & Development $108 $121 +11.3% Total SG&A Expenses $1,093

  9. Slide 9: 2020 1st Half Financial Position

    2020 1st Half Financial Position 1H 2019 1H 2020 Change Non-current Assets $2,529 $2,769 +9.5% Current Assets $4,767 $5,927 +24.3% Current Liabilities $3,145 $3,807 +21.0% Net Current Assets $1,622 $2,120 +30.7% Long-term Liabilities $971 $1,302 +34.1% Equity $3,181 $3,587 +12.8%

  10. Slide 10: 2020 1st Half Gearing Trend

    2020 1st Half Gearing Trend 1H 2014 1H 2015 1H 2016 1H 2017 1H 2018 1H 2019 1H 2020 Gearing 22.8% 17.7% 16.0% 8.8% 1.8% 13.1% 4.0%

  11. Slide 11: 2020 1H Financial Figures

    2020 1H Financial Figures 1H 2019 1H 2020 Change Inventory $1,961 $2,327 Days 94 102 +8 days Receivables $1,319 $1,500 Days 63 65 +2 days Payables $1,885 $2,501 Days 91 109 +18 days Net Working Capital $1,395 $1,326 % of Sales 18.4% 15.8% Cash Balance $1,206 $1,715 +42.2% CAPEX $211 $117 (44.4%)

  12. Slide 12: 2020 1st Half Debt Profile

    2020 1st Half Debt Profile 2H 2019 1H 2020 Change Cash Balance $1,412 $1,715 +21.5% Debt with Fixed Maturities $863 $1,063 +23.1% Working Capital Financing $564 $796 +41.0% Total Debt $1,427 $1,859 +30.2% Total Net Debt $16 $144 +822.7% Floating Rate 76% $1,082 69% $1,283 +18.5% Fixed Rate 24% $345

  13. Slide 13: Joe Galli

    Joe Galli

  14. Slide 14: A crisis does not build character. A crisis reveals it.

    “A crisis does not build character. A crisis reveals it.”

  15. Slide 15: 2020 1st Half Sales Growth

    2020 1st Half Sales Growth 1H 2019 1H 2020 Sales $3,728 $4,206 % chg +12.8% % chg Local Currency +14.0%

  16. Slide 16: 2020 1st Half Sales: Power Equipment and Floorcare

    2020 1st Half Sales Power Equipment Floorcare 89% 11% +12.8% +12.7%

  17. Slide 17: 2020 1st Half Results

    2020 1st Half Results 2019 2020 Change Sales $3,728 $4,206 +12.8% Gross Margin % 37.6% 38.0% +40 bps SGA % 29.3% 29.5% +20 bps EBIT $314 $363 +15.6% % of sales 8.4% 8.6% Net Profit $285 $332 +16.3% % of sales 7.6% 7.9%

  18. Slide 18: 2020 1st Half Gross Margin

    2020 1st Half Gross Margin 1H 2019 1H 2020 38.0% 37.6%

  19. Slide 19: 1st Half Gross Margin Trend

    1st Half Gross Margin Trend 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 38.0% 37.6% 37.1% 36.6% 36.1% 35.6% 35.0% 34.0% 33.5% 32.9% 32.6% 31.7% 31.5%

  20. Slide 20: 2020 1H Working Capital

    2020 1H Working Capital 1H 2019 1H 2020 Change Inventory $1,961 $2,327 Days 94 102 +8 days Receivables $1,319 $1,500 Days 63 65 +2 days Payables $1,885 $2,501 Days 91 109 +18 days WC % of Sales +18.4% +15.8%

  21. Slide 21: Campus hires in 2020

    Leadership Development Program 1,000+ Campus hires in 2020 Sales ● Marketing ● Engineering ● Ops

  22. Slide 22: 2020 Sales

    2020 Sales +13.3%

  23. Slide 23: 2020 Sales by region

    2020 Sales +12.8% +8.5% North Europe America +27.6% ROW

  24. Slide 24: 1" D-Handle Extended Anvil High Torque Impact Wrench

    1” D-HANDLE EXTENDED ANVIL HIGH TORQUE IMPACT WRENCH

  25. Slide 25: 8" Metal Circular Saw

    DAY Q7 nies TAL Cc RGU \ }

  26. Slide 26: Metal Cutting Circular Saw Blades

    METAL CUTTING CIRCULAR SAW BLADES

  27. Slide 27: Compact Bandsaw

    COMPACT BANDSAW

  28. Slide 28: 2 Gallon Compact Quiet Compressor

    2 GALLON COMPACT QUIET COMPRESSOR

  29. Slide 29: Nailers

    NAILERS

  30. Slide 30: Slide 30

  31. Slide 31: Slide 31

  32. Slide 32: Right Angle Impact Wrenches

    RIGHT ANGLE IMPACT WRENCHES

  33. Slide 33: Oscillating Multi-Tool

    bel. OSCILLATING MULTI-TOOL

  34. Slide 34: Oscillating Tool Blades

    OSCIELALINGSLOOER BEADE TY, x OSCILLATING OSCILLATING MULTI-TOOL BLADES | MULTI-TOOL BLADES B

  35. Slide 35: Slide 35

  36. Slide 36: High Output Lighting

    Tilitowauhe, HIGH OUTPUT LIGHTING 4 >

  37. Slide 37: Slide 37

  38. Slide 38: Packout

    a PAC KOUT ae

  39. Slide 39: 106PC Ratchet & Socket Set

    106PC RATCHET & SOCKET SET

  40. Slide 40: Personal Protective Equipment

    PERSONAL. PR TECTIVE | UIPMENT

  41. Slide 41: Ryobi Brushless Compact Series

    RYOBI _ = BRUSHLESS COMPACT SERIES

  42. Slide 42: Compact Cut-Off Tool

    COMPACT CUT-OFF TOOL

  43. Slide 43: 1/2" Compact Drill Driver

    1/2” COMPACT DRILL DRIVER

  44. Slide 44: 1/4" Compact Impact Driver

    1/4” COMPACT IMPACT DRIVER

  45. Slide 45: One Handed Recip Saw

    / WS ONE HANDED RECIP SAW

  46. Slide 46: Cleaning Series

    CLEANING SERIES

  47. Slide 47: Slide 47

  48. Slide 48: Outdoor

    OUTDOOR +25.0%

  49. Slide 49: Cordless Mowers

    nA nt me OTE a Milkg AL \ a) Bay } CORDLESS MOWERS ©... Wiha wie y 4 Mn cio <

  50. Slide 50: Cordless Mowers

    RYOBI. CORDLESS CORDLESS MOWERS. # a. ay By (es ne ry 1 ‘s i By a SV, RYOBI -

  51. Slide 51: Snow Blowers

    SNOW BLOWERS 51

  52. Slide 52: Cordless Outdoor

    5/14/20 CORDLESS OUTDOOR 52

  53. Slide 53: Slide 53

  54. Slide 54: 2020 1st Half Floorcare Results

    2020 1st Half Floorcare Results 1H 2019 1H 2020 Change Sales $406 $458 +12.7% EBIT $0.1 $3.6 +$3.5m % of sales 0.0% 0.8%

  55. Slide 55: Carpet Cleaning

    CARPET CLEANING

  56. Slide 56: Cordless Cleaning Platform

    ESS' CLEANING PLATEORM by a || sys TEM

  57. Slide 57: Slide 57

  58. Slide 58: Just the Beginning

    Just the Beginning

Techtronic Industries — H1 2020 Earnings Presentation on 6ix