Techtronic Industries Co., Ltd. · HKEX:669
Techtronic Industries — FY2023 Earnings Presentation
71 slides from Techtronic Industries's earnings presentation, Mar 7, 2024
Slide 1: 2023 Analyst Presentation
2023 Analyst Presentation March 7th, 2024
Slide 2: Horst Pudwill, Chairman of the Board
HORST PUDWILL CHAIRMAN OF THE BOARD
Slide 3: Stephan Pudwill, Vice Chairman
STEPHAN PUDWILL VICE CHAIRMAN
Slide 4: Frank Chan, Chief Financial Officer
FRANK CHAN CHIEF FINANCIAL OFFICER
Slide 5: 2023 Results
2023 Results 2022 2023 Change Sales $13,254 $13,731 +3.6% GM % 39.3% 39.5% +14 bps SGA % 30.4% 31.3% +96 bps EBIT $1,201 $1,135 -5.5% % of sales 9.1% 8.3% Net Profit $1,077 $976 -9.4% % of sales 8.1% 7.1% EPS (cents) 58.86₵ 53.36₵ -9.3% Final Dividend (HK Cents) 90.00₵ 98.00₵ +8.9%
Slide 6: 2023 Income Statement
2023 Income Statement 2022 2023 Change Sales $13,254 $13,731 +3.6% Gross Profit $5,213 $5,420 +4.0% % of sales 39.3% 39.5% Selling, Distribution, & Marketing $2,191 $2,347 +7.1% Administrative Expenses $1,350 $1,406 +4.2% Research & Development $484 $549 +13.2% Total SG&A Expenses $4,025 $4,302 +6.9
Slide 7: 2023 Financial Position
2023 Financial Position 2022 2023 Change Non-current Assets $4,778 $5,279 +10.5% Current Assets $8,537 $7,123 -16.6% Current Liabilities $6,222 $4,783 -23.1% Net Current Assets $2,315 $2,340 +1.1% Long-term Liabilities $1,888 $1,871 -0.9% Equity $5,205 $5,748 +10.4%
Slide 8: 2023 Financial Figures
2023 Financial Figures 2022 2023 Change Inventory $5,085 $4,098 Days 140 109 -31 days Receivables $1,501 $1,699 Days 41 45 +4 days Payables $3,777 $3,373 Days 104 90 -14 days Net Working Capital $2,809 $2,424 % of Sales 21.2% 17.7% CAPEX $581 $502 -13.7% % of Sales 4.4% 3.7%
Slide 9: 2023 Gearing Trend
2023 Gearing Trend 100.0% 89.9% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 17.1% 0.0% -10.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Slide 10: 2023 Debt Profile
2023 Debt Profile Dec-22 Dec-23 Change Cash Balance $1,429 $953 -33.3% Debt with Fixed Maturities $1,384 $1,333 -3.7% Working Capital Financing $1,715 $601 -64.9% Total Debt $3,099 $1,934 -37.6% Total Net Debt $1,670 $981 -41.3% Floating Rate 61% $1,885 40% $767 -59.3% Fixed Rate 39% $1,214 60% $1,1
Slide 11: Joe Galli, Chief Executive Officer
JOE GALLI CHIEF EXECUTIVE OFFICER
Slide 12: 2023 Sales Growth by Half
2023 Sales Growth by Half H1 H2 -2.2% +10.2%
Slide 13: Sales Performance
Sales Performance +3.9% LC +3.6% +34.6% +0.4% $13.2B $13.3B $13.7B +28.0% $9.8B +9.2% $7.7B 2019 2020 2021 2022 2023
Slide 14: 2023 Results
2023 Results 2022 2023 Change Sales $13,254 $13,731 +3.6% GM % 39.3% 39.5% +14 bps SGA % 30.4% 31.3% +96 bps EBIT $1,201 $1,135 -5.5% % of sales 9.1% 8.3%
Slide 15: Inventory
Inventory -$987M Reduction in 2023 140 Days $5.1B 128 Days $4.6B 109 Days $4.1B Dec 22 Jun 23 Dec 23
Slide 16: Free Cash Flow
Free Cash Flow
Slide 17: Outlook
OUTLOOK
Slide 18: Cordless Leadership
Tri CORDLESS —LEADERSHIP_
Slide 19: 450+ Cordless Products
wil if 450+ CORDLESS PRODUCTS.
Slide 20: Global DIY Brand
# # GLOBAL DIY BRAND
Slide 21: He "oD wei
2 He 2 "oD wei
Slide 22: Cordless Leadership: Battery, Bare Tools, ASP, Conversion
CORDLESS LEADERSHIP # 1 Battery # 2 Bare Tools # 3 ASP # 4 Conversion
Slide 23: Driving Conversion to Cordless Outdoor
Driving Conversion to Cordless Outdoor 30% Rebate
Slide 24: Cordless Focus
ORDLESS FOCUS Dye
Slide 25: 2023 Sales: Global
2023 Sales GLOBAL +11% Growth in Local currency
Slide 26: Global Sales
GLOBAL SALES +11% +22% +38% +22% CAGR +26% +22% +28% +22% +21% +24% +22% +20% +18% +26% +25% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Reported Currency 2010 – 2013, local currency after 2014
Slide 27: 2023 Sales by Region
2023 Sales NORTH +10% AMERICA +14% EUROPE REST +13% OF WORLD 2023 Growth in Local currency
Slide 28: Organizational
ORGANIZATIONAL
Slide 29: Steve Richman, Sr. Group President
STEVE RICHMAN SR. GROUP PRESIDENT
Slide 30: People Culture
PEOPLE CULTURE JUST GETTING STARTED…
Slide 31: Disrupt, Dominate, Develop
THE USER’S BRAND OF CHOICE, DELIVERING PRODUCTIVITY AND SAFETY SOLUTIONS. THE BRAND DISTRIBUTION COUNTS ON, DELIVERING SALES AND PROFITABILITY. DISRUPT DOMINATE DEVELOP THE INDUSTRY THE COMPETITION NEW MARKETS
Slide 32: Our Users
OUR USERS PRODUCTIVITY AND SAFETY SOLUTIONS MORNING DAY NIGHT
Slide 33: Jobsite Solutions Team
JOBSITE SOLUTIONS TEAM EARNING THE RIGHT TO PARTNER
Slide 34: Our Core Trades
OUR CORE TRADES GENERAL RESIDENTIAL / MECHANICAL ELECTRICAL PLUMBING UTILITY CONTRACTING REMODELING LANDSCAPING TRANSPORTATION INFRASTRUCTURE MRO / RENEWABLE MINING & TREE CARE MAINTENANCE BUILDOUT MANUFACTURING ENERGY
Slide 35: User Partnerships
USER PARTNERSHIPS END-USER TRADES TRADE ORGANIZATIONS TRAINING CENTERS ELECTRICAL MECHANICAL PLUMBING SHEET METAL UTILITY BUILDER / GC LANDSCAPING & TREE CARE
Slide 36: Disruptive Innovation
uF = ) DISRUPTIVE -' - INNOVATION |
Slide 37: Owning the User
OWNING THE USER END-USER TRADES TRADE ORGANIZATIONS TRAINING CENTERS PARTNERSHIPS PAIN POINTS SOLUTIONS
Slide 38: Distribution Partnerships
DISTRIBUTION PARTNERSHIPS CORE TRADES USA CANADA MEXICO
Slide 39: Breakthrough Technology
BREAKTHROUGH TECHNOLOGY ARTIFICIAL INTELLIGENCE BRAIN IMPACT ADDITIVE BATTERY PACKS ADVANCED PROTECTION MANUFACTURING & BMS CHARGING MACHINE LEARNING ELECTRONICS MOTORS ADVANCED MATERIALS, & SENSORS & CONTROLS COATINGS & FABRICS IOT SOFTWARE CONNECTIVITY DEVELOPMENT
Slide 40: Shane Moll, Group President Power Tools & Equipment
SHANE MOLL GROUP PRESIDENT POWER TOOLS & EQUIPMENT
Slide 41: 450+ Cordless Products
wil if 450+ CORDLESS PRODUCTS.
Slide 42: World Leader in Breakthrough Cordless Technology
WORLD LEADER IN BREAKTHROUGH CORDLESS TECHNOLOGY ARTIFICIAL INTELLIGENCE REDLINK™ POWERSTATE™ HIGH OUTPUT™ MACHINE INTELLIGENCE BRUSHLESS MOTORS BREAKTHROUGH LEARNING REDLITHIUM™ BATTERIES 2008 2010 2012 2015 2018 2020 2022 2023
Slide 43: Lithium Forge
LITHIUM FORGE MOST POWER FASTEST CHARGING LONGEST LIFE S ie Por LITHIUM x06-0 AMldwaukee ) GB _5RGE ure HiRG, NS one pie = »/ } >=. cal | x 7 pORGE =
Slide 44: Slide 44
Slide 45: Digital Torque Wrench
DIGITAL TORQUE WRENCH
Slide 46: Slide 46
Slide 47: 1/2" Drill/Driver
1/2” DRILL/DRIVER MACHINE ARTIFICIAL LEARNING INTELLIGENCE
Slide 48: Controlled Torque Impact Wrenches
CONTROLLED TORQUE IMPACT WRENCHES MACHINE ARTIFICIAL LEARNING INTELLIGENCE
Slide 49: Single Channel Strut Shear & Dies
SINGLE CHANNEL STRUT SHEAR & DIES
Slide 50: 5" Underground Cable Cutter
5” UNDERGROUND CABLE CUTTER
Slide 51: Slide 51
Slide 52: 14" Cut-Off Saw
14” CUT-OFF SAW ae
Slide 53: 70kg Rammer
70kg RAMMER
Slide 54: Outdoor Power Equipment
OUTDOOR POWER EQUIPMENT
Slide 55: Dual Battery Backpack Blower
DUAL BATTERY BACKPACK BLOWER
Slide 56: Portable Energy Storage
PORTABLE ENERGY STORAGE
Slide 57: 5kWh Power Supply
SkWh POWER SUPPLY ee A
Slide 58: Tim Albrecht, Group President Hand Tools, Storage & PPE
TIM ALBRECHT GROUP PRESIDENT HAND TOOLS, STORAGE, & PPE
Slide 59: Disruptive Innovation
DISRUPTIVE INNOVATION PERSONAL HAND STORAGE PROTECTIVE TOOLS EQUIPMENT
Slide 60: Electrician's Hand Tools
ELECTRICIAN’S HAND TOOLS
Slide 61: Made in USA Lineman's Pliers
MADE IN USA LINEMAN’S PLIERS
Slide 62: Slide 62
Slide 63: Shop, Transit, Jobsite
SHOP TRANSIT JOBSITE
Slide 64: @builtby_n8
@builtby_n8 Facebook and Instagram are trademarks of Meta Platforms, Inc. Reddit is a trademark of Reddit, Inc.
Slide 65: Personal Protective Equipment
PERSONAL PROTECTIVE EQUIPMENT
Slide 66: Type 2 Safety Helmet
TYPE 2 SAFETY HELMET |
Slide 67: Linear Shear
IMPACT CAUSES SEVERE INJURY LINEAR SHEAR
Slide 68: We're Just Getting Started
Migs WE’RE JUST GETTING STARTED
Slide 69: Breakthrough Leadership
Tri BREAKTHROUGH LEADERSHIP
Slide 70: Slide 70
Slide 71: Disclaimer
DISCLAIMER This document (“document”) has been prepared by Techtronic Industries Company Limited (the “Company” or “TTI”, and together with its subsidiaries, the “Group”) solely for use at the presentation held in connection with the announcement of the Company’s financial results (the “Presentation
Techtronic Industries Company — FY2023 Earnings Presentation on 6ix