TTI delivers impressive growth in sales and profit

Hong Kong (ots/PRNewswire) – growth drivers-new battery-products

Key data

2018* USD million 2017USDMio. Change Sales
7.021 6.064 +15,8 % Gross Profit Margin Of 37.2 % To 36.7 % +50 Bp. EBIT 607
519 +17,0 % profit participation of the shareholders
552 470 +17.4% in earnings per share (US cents) 30,16 25,66 +17,5 % dividend per share (approximately US cents) 11,33 8,69 +30,4 %
*For the year ending 31 December. December 2018 for the year ended

* Inclusion in the Hang Seng Index as one of the fifty constituent Stocks

* Strong organic growth record results, driven by battery-products

* Revenue growth of 15.8 % and net profit growth of 17.4 %

* Gross margin improved for the tenth year in a row

* Milwaukee Tool delivers outstanding sales growth of 28.2 %

* RYOBI ONE+ recorded double-digit sales growth

* Business unit floor care and appliances can increase sales by 9.3 %

The global electrical and floor care equipment manufacturer Techtronic Industries co. Ltd. („TTI“ or the „Group“) (stock exchange symbol: 669, ADR Symbol: TTNDY) announced, with headquarters in Hong Kong, the results for the financial year as of 31. December 2018. The total turnover of the Group increased for the ninth year in a row, and was at 7.02 billion USD, up 15.8% higher than in the last reporting period. Each geographical Region has produced impressive growth, based on an ongoing series of new and exciting battery products. The gross margin improved from 36.7% in 2017 to 37.2 % in 2018, driven by new products, product mix, volume and productivity. The EBIT grew by 17.0% to 607 million USD, while the EBIT margin by 10 basis points to 8.7%. The profit participation of the shareholders increased by 17.4 % to 552 million USD, where the profit per share to 2017 increased by 17.5% to 30.16 US cents. Through disciplined economies with working capital TTI again reported net liquidity. The Supervisory Board recommends a final dividend of 50.00 HK cents (approx. of 6.44 US cents) per share. Together with the interim dividend of 38.00 HK cents (approx. 4,89 US cents) per share, this results in an annual dividend of 88,00 HK cents (approx. 11,33 US cents) per share, compared to 67,50 HK cents (approx. 8,69 US cents) per share in 2017, an increase of 30.4%.

In the case of electrical appliances, with a share of the total turnover of 85.6%, with the largest division of TTI, revenues rose by 17.0% to 6.0 billion USD, with an increase in operating profit of 16.9 % to 598 million USD. The division of Milwaukee Tool has continued, with sales growth of 28.2% on its successful course of growth, while the business area RYOBI achieved double-digit growth. The turnover of the business industry floor care and appliances improved by 9.3 % and showed a positive Trend. TTI has invested heavily in the Expansion of its sales, manufacturing and R&d capacity in North America, and in Vietnam, a new production plant to be built in order to control the rapid growth. The Group has made strategic investments in research and development, innovative products to emerge, which define the work in the domestic environment and at work. Thanks to technological progress, from which new perspectives, pushing TTI into new markets and vertical industries.

22. February 2019 was Hang Seng Indexes Company Limited the inclusion of TTI in the Hang Seng Index as one of the fifty constituent Stocks with effect as of 11. March 2019 known. Thus, TTI has positioned itself among the Blue-Chip companies that are traded on the Hong Kong stock exchange. The market demonstrates its confidence in the market value, the consistent industry-leading financial Performance, the excellent management and the future growth prospects of TTI.

Horst Pudwill, Chairman of TTI, said: „We are delighted to enter another year with excellent business growth. We implement with discipline and Confidence of our strategic Plan to provide battery technology for a growing product range and therefore TTI as the world market leader in our existing and new markets to establish. We are proud of the inclusion in the Hang Seng Index as a constituent stock title. This is without a doubt an important milestone in the development of TTI that underpins the market confidence in our strategic focus on Innovation in battery products, operational excellence, outstanding employees and a strong brand portfolio. We are proud to create a better future.“

Joseph Galli, CEO of TTI, commented: „We are consistently working on the implementation of our strategy in the case of battery products, the growth in the various business of the Group branches. In doing so, we retain our top position in the change of the sector towards cordless tools with Lithium-ion batteries. We are convinced that battery-operated power equipment and floor care products are the future, and the rapid pace of change is already in full swing. For the future we have set ourselves the goal, through technological progress and innovative product solutions on the market for battery products to our stamp. We are confident that our unprecedented body will stop growth.“

Information about TTI

Founded in 1985, and since 1990 on the stock exchange of Hong Kong-listed company, TTI is a world-leading provider of battery technologies for consumer products, technical articles and industrial products, including power tools, motor devices for gardening and forestry, ground care equipment and accessories. To serve, industries, home, construction, maintenance, industrial and infrastructure. The company is based on four strategic pillars: strong brands, innovative products, outstanding employees, and operational excellence. These reflect a long-term, expansive Vision of the progress of wireless technology. The global growth strategy, based on the relentless pursuit of product innovation, has brought TTI to the tip of its branches. The impressive brand portfolio of TTI includes power tools, accessories and hand tools from the brands MILWAUKEE, AEG and RYOBI, products brands RYOBI and HOMELITE for outdoor use, Layout and measuring devices of the brand EMPIRE as well as floor care products and devices of brands like HOOVER, ORECK, VAX and DIRT DEVIL.

TTI is one of the stocks in the MSCI All Country World Index (ACWI), FTSE Developed Index and the Hang Seng Composite LargeCap Index under the Hang Seng Composite Size Index. 11. March 2019 is included TTI in the Hang Seng Index. For more information, see www.ttigroup.com.

All the brands mentioned (with the exception of AEG, and RYOBI) belong to the Group. AEG is a registered trademark of AB Electrolux (publ.) and is used under license. RYOBI is a registered trademark of Ryobi Limited and is used under license.

Contact for enquiries: techtronic Industries Strategic Financial co. Ltd. Isabella Relations Limited Veron
ChanTel.: +(852) 2402 Ng +(852) 2864 4831
6495E-Mail: veron.ng@sprg.com.hk isabella.chan@tti.com.hk Denise Siu +(852)
Website: 2114 4913 [1] www.ttigroup.com denise.siu@sprg.com.hk
Beverly Chiu +(852) 2114
4329
beverly.chiu@sprg.com.hk
Website: [2] www.sprg.com.hk

1. http://www.ttigroup.com/
2. http://www.sprg.com.hk/