2011 proved to be an outstanding year for TTI. We delivered strong financial results and we made great strides implementing our long-term strategic plan.

The centerpiece of our long-term strategy is developing leadership positions by continuously introducing innovative new products. Our new product machine does not focus on “rebranded” line extensions. At TTI we are developing a series of game-changing, technologically advanced new products and platforms. These innovations address our end-user needs with breakthrough performance, enhanced productivity and exceptional industrial design as witnessed by new product introductions amassing sales of over US$3 billion in the last three years. Our passion for new products is matched by our passion for operational performance. An innovative culture means we execute effectively, always doing it right and examining new processes for doing it better.

We are implementing this ‘disruptive’ innovation model throughout all of our business units. Let me share some powerful examples of our disruptive innovation now rolling out into the market:

MILWAUKEE® FUEL™ – When we introduced MILWAUKEE® RedLithium™ cordless, we set a new performance standard for cordless power tools. Now we are launching the revolutionary MILWAUKEE® FUEL™ lithium series. MILWAUKEE® FUEL™ will deliver breakthrough power, run-time and life for the industrial cordless users.

Subcompact Lithium – TTI continues to pioneer the 12-volt lithium subcompact market. We are introducing a series of M12™ MILWAUKEE® lithium power tools. Additionally, we are expanding our RYOBI® and JobMax™ subcompact lithium platforms.

RYOBI® ONE+ System® – Today, the RYOBI® ONE+ System® cordless platform delivers the broadest range of cordless tools available on one battery platform. We are expanding the RYOBI® ONE+ System® with our new generation ‘G4’ range of superior DIY cordless tools. Additionally, we are rolling out a new RYOBI® ONE+ System® inflator, radio charger, and flashlight.

RYOBI® Outdoor – We have achieved tremendous success with our RYOBI® ONE+ System® outdoor lithium tools. To expand on this success, we now offer a 24-volt RYOBI® lithium line and a new 36-volt RYOBI® outdoor high-performance lithium platform. RYOBI® is pioneering the outdoor lithium cordless market around the world.

New Businesses – At TTI we continue to introduce new businesses. We have introduced a hand tool business featuring productivity enhancing MILWAUKEE® hand tools and HART® branded striking tools. Our newly created hand tool business has vast potential. Our investment in developing a test and measurement start-up inside the company is now paying off with the introduction of the MILWAUKEE® Fluorescent Lighting Tester (FLT). The FLT is a unique innovative diagnostic tool that greatly enhances productivity for the target user.

Floor Care – Our floor care team is expanding the WindTunnel® Air™ range of lightweight, compact, high performance vacs featuring the elegant design our customers covet. This new generation of vacs is taking off in both the US and Europe.

Geographic Expansion

TTI has a strong foundation in the US market and we will benefit from an improving US economic environment. However, our long-term strategy is to aggressively build our business outside the US. We have worked hard to expand or establish companies in high potential markets around the world. Our teams in Canada, Western Europe, Central Europe, the Middle East, Latin America, Australia, and Asia all made exciting progress in 2011. This international progress will continue in the years ahead.

Leadership Development Program (LDP)

Our investment in people is exemplified by our LDP which is now drawing excellent talent from several continents with a network of over 50 universities. We have hired over 600 LDPs and close to 50% having been promoted at least two times. The Program is flourishing as we are building an exceptional team of future leaders.

Innovation Is Our Future

What is most exciting is we are just getting started! Our culture of innovation, from daily consumer and professional interaction to product design, from investments in technology and people to best in class processes, will ensure we have many new product innovations on the way with the ability to execute on a global level for the years ahead.

I want to extend a special thanks to our R&D and product development teams around the world. We are highly fortunate to have a talented and dedicated group of world-class people driving TTI product development!

In closing, I am grateful for the vision and the support of our Chairman, Horst Pudwill. Horst’s passion to build TTI continues to drive our company to new levels of excellence.

Joseph Galli Jr

Chief Executive Officer
March 22, 2012