Techtronic Industries Co., Ltd. · HKEX:669

Techtronic Industries — 1H 2018 Earnings Presentation

66 slides from Techtronic Industries's earnings presentation, Aug 16, 2018

  1. Slide 1: 2018 1H Interim Results Presentation

    2018 1H Interim Results Presentation August 16, 2018 1

  2. Slide 2: Frank Chan

    Frank Chan

  3. Slide 3: 1H 2018 Results

    1H 2018 Results

  4. Slide 4: 2018 1st Half Results

    2018 1st Half Results (US $m) 1H 2017 1H 2018 Change Sales $2,882 $3,431 +19.1% Gross Profit $1,056 $1,274 +20.6% Gross Margin % 36.6% 37.1% +50 bps EBIT $233 $281 +20.7% % of sales 8.1% 8.2% Net Profit $204 $255 +24.6% % of sales 7.1% 7.4% EPS (cents) 11.17₵ 13.89₵ +24.4% Interim Dividend (HK cents

  5. Slide 5: 2018 1st Half Segment Results

    2018 1st Half Segment Results (US $m) 1H 2017 1H 2018 Change Segment Sales $2,467 $2,962 +20.1% Power Segment % 85.6% 86.3% Equip. Op Profit $232 $280 +20.7% % of sales 9.4% 9.5% Sales $415 $469 +12.9% Floorcare & Segment % 14.4% 13.7% Appliance Op Profit $0.4 $0.6 +57.7% % of sales 0.1% 0.1%

  6. Slide 6: 2018 1st Half Region Sales

    2018 1st Half Region Sales (US $m) 1H 2017 1H 2018 Change Region North $2,201 $2,599 +18.1% America Region % 76.4% 75.8% Europe $446 $555 +24.3% Region % 15.5% 16.2% ROW $235 $277 +17.9% (Rest of World) Region % 8.1% 8.0%

  7. Slide 7: 2018 1st Half Income Statement

    2018 1st Half Income Statement (US $m) 1H 2017 1H 2018 Change Sales $2,882 $3,431 +19.1% Gross Profit $1,056 $1,274 +20.6% % of sales 36.6% 37.1% Selling, Distribution, & Advertising $431 $522 +21.4% Administrative Expenses $318 $375 +17.8% Research & Development $77 $99 +28.4% Total SG&A Expenses $

  8. Slide 8: 2018 1st Half Financial Position

    2018 1st Half Financial Position (US $m) 1H 2017 1H 2018 Change Non-current Assets $1,943 $1,975 +1.7% Current Assets $3,481 $3,898 +12.0% Current Liabilities $2,187 $2,266 +3.6% Net Current Assets $1,294 $1,632 +26.1% Long-term Liabilities $705 $700 -0.7% Equity $2,532 $2,907 +14.8%

  9. Slide 9: 2018 1st Half Gearing Trend

    2018 1st Half Gearing Trend 1H 2013 1H 2014 1H 2015 1H 2016 1H 2017 1H 2018 Gearing 26.2% 22.8% 17.7% 16.0% 8.8% 1.8%

  10. Slide 10: 2018 1st Half Key Financial Figures

    2018 1st Half Key Financial Figures (US $m) 1H 2017 1H 2018 Change Inventory $1,415 $1,578 Days 88 88 +0 days Receivables $1,108 $1,203 Days 69 67 -2 days Payables $1,403 $1,665 Days 87 93 +6 days Net Working Capital $1,119 $1,115 % of Sales 19.1% 17.0% Cash Balance $818 $863 +5.5% CAPEX $72 $86 +18

  11. Slide 11: 2018 1st Half Debt Profile

    2018 1st Half Debt Profile (US $m) 1H 2017 1H 2018 Change Cash Balance $818 $863 +5.5% Debt with Fixed Maturities $558 $565 +1.3% Working Capital Financing $484 $349 -27.9% Total Debt $1,042 $914 -12.3% Total Net Debt $224 $51 -77.2% Floating Rate 90% $937 89% $809 -13.6% Fixed Rate 10% $105 11% $10

  12. Slide 12: Joe Galli

    Joe Galli

  13. Slide 13: 2018 1st Half Sales Growth

    2018 1st Half Sales Growth (US $m) 1H 2017 1H 2018 Sales $2,882 $3,431 % chg +19.1%

  14. Slide 14: 2018 1st Half Sales

    2018 1st Half Sales Floorcare 14% 18% Power Equipment 86% +20.1% +12.9% % Reported Growth % Reported Growth

  15. Slide 15: 2018 1st Half Results

    2018 1st Half Results (US $m) 1H 2017 1H 2018 Change Sales $2,882 $3,431 +19.1% Gross Margin % 36.6% 37.1% +50 bps EBIT $233 $281 +20.7% % of sales 8.1% 8.2% Net Profit $204 $255 +24.6% % of sales 7.1% 7.4%

  16. Slide 16: 2018 1st Half Gross Margin

    2018 1st Half Gross Margin 1H 2017 1H 2018 37.1% 36.6%

  17. Slide 17: 1st Half Gross Margin Trend

    1st Half Gross Margin Trend 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 37.1% 36.6% 36.1% 35.6% 35.0% 34.0% 33.5% 32.9% 32.6% 31.7% 31.5% 10 years of Gross Margin improvement

  18. Slide 18: 2018 1st Half SG&A Strategic Investment

    2018 1st Half SG&A Strategic Investment R&D SG&A Product Management Non Strategic -30 bps End User Conversion +30 bps Sales Coverage Strategic +60 bps Geographic Expansion LDP

  19. Slide 19: Campus Hires – LDP

    Campus Hires – LDP 530 International North America International Hiring commenced 2009

  20. Slide 20: 2018 1st Half Productivity Progress

    2018 1st Half Productivity Progress Jun 2017 Jun 2018 Change $3,431 +19.1% Sales $2,882 23,226 +6.3% Headcount 21,857

  21. Slide 21: 2018 1st Half Sales

    2018 1st Half Sales +29.8%

  22. Slide 22: 2018 1st Half Sales Growth

    2018 1st Half Sales Growth REGION % Growth NA +27.3% Europe +43.0% ROW +29.8% 22

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  24. Slide 24: Confidential Document Property of Milwaukee Tool

    Confidential Document Property of MILWAUKEE TOOL Brookfield, Wisconsin 53005

  25. Slide 25: 1/2" Hammer Drill/Driver

    Midge Y2” HAMMER DRILL/DRIVER

  26. Slide 26: 1/4" Hex Impact Driver

    Midge Ya” HEX IMPACT DRIVER

  27. Slide 27: High Performance

    Ms Wi FRU. HIGH PERFORMANCE <2 re EAKTH i-{elble,.

  28. Slide 28: High Output HD12.0 Battery Pack

    HIGH OUTPUT HD12.0 BATTERY PACK

  29. Slide 29: Super Sawzall Recip Saw

    Midge SUPER SAWZALL RECIP SAW

  30. Slide 30: 7-1/4" Circular Saw

    Midge 7-1/4” CIRCULAR SAW

  31. Slide 31: 8-1/4" Table Saw w/ One Key

    Midge 8-1/4” TABLE SAW w/ ONE KEY

  32. Slide 32: 7"/9" Large Angle Grinder

    Midge 77/9” LARGE ANGLE GRINDER

  33. Slide 33: 16" Chainsaw

    Midge 16” CHAINSAW

  34. Slide 34: 3-in-1 Backpack Vacuum

    Midge 3-in-1 BACKPACK VACUUM

  35. Slide 35: =

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  36. Slide 36: Heated Axis Jackets & Vests

    mig HEATED AXIS™ JACKETS & VESTS

  37. Slide 37: Rivet Tool

    mig RIVET TOOL

  38. Slide 38: Compact Inflator

    COMPACT INFLATOR

  39. Slide 39: Soldering Iron

    mig SOLDERING IRON

  40. Slide 40: Ratchets

    Midge RATCHETS

  41. Slide 41: 1/4" Stubby Impact Wrench

    Midge Ya” STUBBY IMPACT WRENCH

  42. Slide 42: 3/8" Stubby Impact Wrench

    Midge 3/8” STUBBY IMPACT WRENCH

  43. Slide 43: Compact 3" Cut Off

    Midge COMPACT 3” CUT OFF

  44. Slide 44: =

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  45. Slide 45: Rocket Dual Power Tower Light

    ROCKET DUAL POWER TOWER LIGHT

  46. Slide 46: High Output Lighting

    EjJapius GIOVER LIOCKET HIGH OUTPUT LIGHTING

  47. Slide 47: Personal Lighting

    Milwore PERSONAL LIGHTING

  48. Slide 48: Drain Cleaning Equipment Vertical

    DRAIN CLEANING EQUIPMENT VERTICAL

  49. Slide 49: Power Utility Vertical

    Milwore POWER UTILITY VERTICAL

  50. Slide 50: Transportation Vertical

    TRANSPORTATION VERTICAL

  51. Slide 51: Mechanics Hand Tools

    Milwore MECHANICS HAND TOOLS

  52. Slide 52: STUD Tape Measures

    STUD™ TAPE MEASURES

  53. Slide 53: Measuring Products

    Milwore MEASURING PRODUCTS

  54. Slide 54: Hammers

    HAMMERS

  55. Slide 55: Carbide Teeth Cutting Accessories

    CARBIDE TEETH CUTTING ACCESSORIES

  56. Slide 56: Circular Saw Blades

    his CIRCULAR SAW BLADES

  57. Slide 57: Milwaukee PACKOUT Modular Storage System

  58. Slide 58: Portable Air Compressor

    PORTABLE AIR COMPRESSOR

  59. Slide 59: PEX Pinch Clamp

    PEX PINCH CLAMP

  60. Slide 60: Cordless Stick Vac

    CORDLESS STICK VAC

  61. Slide 61: ONE+ 18V Family

    ONE+ 18V FAMILY

  62. Slide 62: Cordless Mowers

    CORDLESS MOWERS

  63. Slide 63: Cordless Outdoor

    CORDLESS OUTDOOR

  64. Slide 64: Carpet Cleaner

    CARPET CLEANER

  65. Slide 65: Van

    Van BLADE 2

  66. Slide 66: TTI logo

Techtronic Industries Company — 1H 2018 Earnings Presentation on 6ix