2016 Annual Results Presentation. March 15, 2017

Transcription

1 2016 Annual Results Presentation March 15, 2017

2 Frank Chan 2

3 2016 Full Year Results (US$ m) Change Local Curr Sales $5,038 $5, % +9.8% Gross Profit $1,798 $1, % Gross Margin % 35.7% 36.2% +50 bps EBIT $400 $ % % of sales 7.9% 8.2% Net Profit $354 $ % % of sales 7.0% 7.5% EPS (cents) % Final Dividend (HK cents) % 3

4 2016 Segment Results (US$ m) Change Local Curr Segment Sales $3,972 $4, % +13.3% Power Segment % 78.8% 81.6% Equip. Op Profit $379 $ % % of sales 9.5% 9.7% Sales $1,066 $1, % -3.3% Floorcare & Segment % 21.2% 18.4% Appliance Op Profit $21 $20-3.2% % of sales 1.9% 2.0% 4

5 2016 Region Sales (US$ m) Change Local Curr Region North $3,772 $4, % +10.6% America Region % 74.9% 75.9% EMEA $861 $ % +7.1% Region % 17.1% 16.2% ROW $405 $ % +7.9% (Rest of World) Region % 8.0% 7.8% 5

6 2016 Income Statement (US$ m) Change Sales $5,038 $5, % Gross Profit $1,798 $1, % % of sales 35.7% 36.2% Selling, Distribution, & Advertising $697 $ % Administrative Expenses $578 $ % Research & Development $128 $ % Total SG&A Expenses $1,403 $1, % % of sales 27.9% 28.1% Net Finance Cost $13 $ % Profit before Income Tax $387 $ % Income Tax Expenses $33 $31-4.8% Net Profit $354 $ % % of sales 7.0% 7.5% 6

7 2016 Financial Position (US$ m) Change Non-current Assets $1,809 $1, % Current Assets $2,993 $3, % Current Liabilities $2,069 $2, Net Current Assets $924 $1, % Long-term Liabilities $578 $ % Equity $2,156 $2, % 7

8 2016 Gearing Trend Gearing 25.8% 10.6% 10.0% 13.4% 5.2% 8

9 Free Cash Flow Improvement Change Free Cash Flow $152 $344 + $192 Net Profit $354 $ % Conversion Rate 42.9% 84.1% +96.1% 9

10 2016 Key Financial Figures (US$ m) Change Inventory $1,190 $1,296 Days Receivables $828 $935 Days days Payables $1,160 $1,331 Days days Net Working Capital $858 $900 % of Sales 17.0% 16.4% Cash Balance $775 $ % CAPEX $162 $ % 10

11 2016 Debt Profile (US$ m) Change Cash Balance $775 $ % Debt with Fixed Maturities $498 $ % Working Capital Financing $566 $ % Total Debt $1,064 $ % Total Net Debt $289 $ % Floating Rate 100% $1, % $ % Fixed Rate 0% $0 0% $

12 Joe Galli 12

13 2016 Full Year Sales (US $m) Sales $5,038 $5,480 % chg +8.8% % chg Local Curr +9.8% 13

14 2016 Sales Power Equipment 82% Floorcare 18% +13.3% Local Curr -3.3% Local Curr 14

15 Floorcare 2016 Cordless Sales +53% Local Curr

16 2016 Full Year Results (US $m) Change Local Curr Sales $5,038 $5, % +9.8% Gross Margin % 35.7% 36.2% +50bps EBIT $400 $ % % of sales 7.9% 8.2% Net Profit $354 $ % % of sales 7.0% 7.5% 16

17 Gross Margin Trend % +35.7% +35.2% +34.2% +33.5% +32.6% +32.2% +31.3% +30.8% 8 years 8 years of Gross of Gross Margin improvement 17

18 2016 Working Capital (US$ m) Change Inventory $1,190 $1,296 Days Receivables $828 $935 Days days Payables $1,160 $1,331 Days days WC % of Sales 17.0% 16.4% 18

19 2016 Sales +21.0% Local Curr 19

20 2016 Sales REGION % Growth NA +20.6% EMEA +21.3% ROW +24.7% 20

21 US Manufacturing Position Milwaukee, WI Cookville, TN Greenwood, MS Jackson, MS Anderson, SC 21

22 Campus Hires LDP International USA International Hiring Commenced

23 Served Market 2021 $36B PRO Today PRO DIY DIY Source: Techtronic Industries Co. Ltd. Internal Estimate

24 CORDLESS NETWORK EFFECT

25 $36 Billion Cordless Growth Drivers Source: Techtronic Industries Co. Ltd. Internal Estimate

26 AC to Cordless AC PNEUMATIC PETROL CORDED LIGHTING HAND TOOLS HYDRAULIC NICAD BATTERIES BARE TOOLS

27 Pneumatic to Cordless AC PNEUMATIC PETROL CORDED LIGHTING HAND TOOLS HYDRAULIC NICAD BATTERIES BARE TOOLS

28 Petrol to Cordless AC PNEUMATIC PETROL CORDED LIGHTING HAND TOOLS HYDRAULIC NICAD BATTERIES BARE TOOLS

29 Corded Lighting to Cordless AC PNEUMATIC PETROL CORDED LIGHTING HAND TOOLS HYDRAULIC NICAD BATTERIES BARE TOOLS

30 Hand Tools to Cordless AC PNEUMATIC PETROL CORDED LIGHTING HAND TOOLS HYDRAULIC NICAD BATTERIES BARE TOOLS

31 Hydraulic to Cordless AC PNEUMATIC PETROL CORDED LIGHTING HAND TOOLS HYDRAULIC NICAD BATTERIES BARE TOOLS

32 Replacement Cycle AC PNEUMATIC PETROL CORDED LIGHTING HAND TOOLS HYDRAULIC NICAD BATTERIES BARE TOOLS

33 Battery Aftermarket AC PNEUMATIC PETROL CORDED LIGHTING HAND TOOLS HYDRAULIC NICAD BATTERIES BARE TOOLS

34 Network Effect - Bare Tools AC PNEUMATIC PETROL CORDED LIGHTING HAND TOOLS HYDRAULIC NICAD BATTERIES BARE TOOLS

35 CORDLESS LEADERSHIP 35

36 Served Market $36B Residential Construction Source: Techtronic Industries Co. Ltd. Internal Estimate

37 Confidential Document Property of Milwaukee Electric Tool Corporation Brookfield, Wisconsin 53005

38 Confidential Document Property of Milwaukee Electric Tool Corporation Brookfield, Wisconsin 53005

39 Confidential Document Property of Milwaukee Electric Tool Corporation Brookfield, Wisconsin Outdoor Power Equipment

40 Confidential Document Property of Milwaukee Electric Tool Corporation Brookfield, Wisconsin 53005

41 FORCE LOGIC Hydraulics Confidential Document Property of Milwaukee Electric Tool Corporation Brookfield, Wisconsin 53005

42 Confidential Document Property of Milwaukee Electric Tool Corporation Brookfield, Wisconsin Compact Vacuum

43 TICK Tool and Equipment Tracker Confidential Document Property of Milwaukee Electric Tool Corporation Brookfield, Wisconsin 53005

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45 Outdoor Products

46 Outdoor Products

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49 TTI Confidential