Chairman’s Statement

“We are positioned to capitalize on the many growth opportunities we have identified in the months and years ahead.”

I am pleased to announce that 2020 was an outstanding year for TTI with exceptional revenue and profit growth.

We reported sales of US$9.8 billion, an increase of 28.0%. Our second half sales grew an exceptional 42.3%, outpacing the market. Increased strategic investment in new product, manufacturing capacity, geographic expansion, and our in-field marketing initiatives is the driving force behind our industry leading extraordinary growth.

TTI continued to strengthen its global leadership position with robust sales growth in every business unit and in all geographic regions. North America delivered growth of 29.5%, EMEA grew 19.1% and ROW grew 30.6%. Our Power Equipment business, representing 89.0% of total sales, grew 28.5% to US$8.7 billion. Our MILWAUKEE Professional, the RYOBI DIY, and the RYOBI Outdoor businesses all delivered double-digit growth. Our Floorcare business produced sales growth of 23.6% to US$1.1 billion.

Gross margin improved for the 12th consecutive year, from 37.7% in 2019 to 38.3% in 2020. This gross margin improvement is a direct result of the launching of high margin new product, disciplined mix management, exceptional productivity gains and volume leverage. Additionally, our relentless focus on operational excellence improved productivity throughout our operations.

A major strategic initiative for TTI is our commitment to building out a world class e-commerce capability. We achieved fantastic traction with e-commerce and Buy Online Pickup In Store (BOPIS). We have worked closely with our customers, capitalizing on the accelerated shift to online and BOPIS. An example of our world class leadership in e-commerce is The Home Depot presenting us with their Omnichannel Interconnected Partner of the Year award in 2020.

Our Response to COVID
When it became clear that the coronavirus was a global issue, our immediate priority was to focus on the safety of our employees, their families, our customers and end users. We are incredibly proud of the way our global team managed throughout this pandemic, staying safe while supporting our customers.

Starting in April 2020, we made a bold decision to further accelerate investment in additional sales/field marketing specialists, engineers, new product development resources and geographic expansion to seize market share and drive above market growth. We also made the bold decision to aggressively expand manufacturing capacity in China, Vietnam, Mexico, and North America and we invested in higher levels of inventory to better serve our customers.

Financial Performance
EBIT increased 29.0% to US$868 million, with the EBIT margin improving by 10 basis points to 8.9%. Net Profit rose 30.2% to US$801 million, with earnings per share increasing 30.1% over 2019 to US43.80 cents. We invested in inventory to support our above market growth levels, while working capital management remained best-in-class at 14.0% of sales.

Outlook
We are well positioned to continue outperforming the market, with a strong balance sheet and a disciplined fixed and working capital management process. We are positioned to capitalize on the many growth opportunities we have identified in the months and years ahead.

I would like to thank our customers, end users, suppliers, shareholders, Board and entire TTI organization for another outstanding year. Our dedicated, skilled and passionate teams across the globe are enabling us to achieve outstanding results. It is our unrelenting bold vision, customer focus and business momentum that will make 2021 another successful year and position TTI with exciting opportunities in the decade to come.

Horst Julius Pudwill
Chairman
March 3, 2021
Chairman’s Statement (PDF)

Chief Executive Officer’s Message

“To achieve growth and global expansion like ours is a testament to the quality of our team, strength of our culture and the crystal-clear focus of our strategy.”

2020 was clearly a breakout year for TTI. In just twelve months, we grew sales organically by US$2.1 billion, while improving gross margin and net profit. This extraordinary performance was driven by our unwavering strategic focus on cordless technology.

We are leading the revolution from traditional power sources to cordless in power tools, light equipment, outdoor products and cleaning. Our technologically advanced cordless products drive our sales and gross margin improvement, which funds additional strategic SG&A investments in R&D, new product development and in-field marketing specialists, creating a virtuous cycle of growth.It is through our bold strategic direction, operational excellence, and exceptional team that TTI has consistently delivered on our financial goals of outgrowing the market, driving gross margin improvement, and growing profit faster than sales.

Cordless Leadership
We are obsessively focused on developing advanced, demonstrably better, technologically superior cordless products. In 2020, our MILWAUKEE brand became the fastest growing and #1 Professional Tool Brand in the world, while RYOBI extended its leadership position as the largest global DIY Tool Brand. Our drive for advancing cordless technology continues to intensify. When one version of a product launches in the market, we immediately focus on the engineering of the next generation with improved run-time, power, speed, life, compactness and other breakthrough features. Examples of these advancements include our recently launched next generation RYOBI High Performance (HP) Brushless series, our next generation MILWAUKEE M18 FUEL SAWZALL, the revolutionary MILWAUKEE MX FUEL Light Equipment System, and our leadership range of RYOBI cordless mowers.

In addition to our relentless focus on advancing cordless technology, we also continue to deploy our geographic expansion strategy. When we enter a new strategic market, we enter aggressively with a strong team to rapidly develop the market. Our geographic expansion efforts are an ongoing success at TTI.

Hiring the Best
We viewed 2020 as an opportunity to bolster our talent pool and recruit the very best off of college campuses across the globe. Our top focus was hiring newly minted engineers. We’ve built out a vastly superior global engineering capability with R&D Centers located around the US, Europe, Australia, Vietnam and China. In 2020, we augmented our engineering powerhouse with over six hundred newly recruited engineers who drive technological advancements and accelerate the pace of our new product launches. These high potential electrical engineers, software development engineers and other technical engineering specialists have joined TTI from over 100 college campuses around the world.

In addition, while other companies pulled back on recruiting in 2020, we accelerated and hired 1,208 high-potential college graduates into our Leadership Development Program (LDP). Since its beginning thirteen years ago, the program has supported our growth by creating a pipeline of future leaders across the sales, marketing, engineering, purchasing, supply-chain, manufacturing, and finance disciplines. Today, some of these LDP graduates hold roles with increasing levels of responsibility up to vice presidents and presidents. We are committed to developing even more LDPs into meaningful leadership roles throughout the organization in 2021 and beyond.

Winning Culture
Our vision is to be number one in the industries we serve, and this drives a high-performance culture across all levels and functions of our organization. Our unique high-speed decision-making process supports our maniacal focus on developing superior cordless products and meeting high customer service level expectations. We view our winning culture as a competitive advantage that powers our growth.

This year, our team performed admirably through the challenges presented by the coronavirus pandemic while keeping the safety of our employees, their families, our customers and end users as the priority. I am incredibly proud of the way our team has adhered to all safety protocols, while engaging with customers and end users all over the globe.

Strategic Capacity Investments
In 2020, we made the bold decision to build out additional manufacturing capacity in support of our future growth. We invested in our world-class facility in China, while expanding operations in Vietnam, Mexico, Europe, and across the United States. Construction is currently underway on new greenfield manufacturing sites in Wisconsin and South Carolina that will further increase the agility of our operations network.

Our expanding global manufacturing footprint gives us the ability to produce high quality products with the flexibility to quickly react to changing geopolitical and environmental factors. All sites across the globe adhere to the TTI OPEX philosophy of driving productivity, delivering world class quality, and maintaining best-in-class service levels for our customers.

Sustainability
Our mission is to lead our industry in replacing high-polluting, fossil-fueled products with our environmentally friendly, clean cordless powered technology. We are reshaping sustainability into a core competency by embracing best Environmental, Social and Governance (ESG) practices. Our global organization understands that economic, social and environmental aims are all interrelated and firmly believes that our ability to grow and innovate is linked to our ESG performance.

A Bold Vision for the Future
In 2020, we dramatically outpaced the market. To achieve growth and global expansion like ours is a testament to the quality of our team, strength of our culture and the crystal-clear focus of our strategy. Our bold investments in new product development, manufacturing, geographic expansion and in-field marketing initiatives drove our growth and our position as industry leaders. We continued to strengthen our global leadership position with tremendous sales growth in every business unit and all geographic regions. Once again, we are thrilled with our 2020 performance, however we believe the next five years will be an amazing period for the company’s sales and profit growth.

I feel incredibly fortunate for the partnership and alignment I share with our Chairman, Horst Pudwill, and Vice Chairman, Stephan Pudwill. It is a powerful competitive advantage to share the leadership responsibilities with these bold leaders, and we are all relentlessly focused on winning in cordless. I’d like to thank them both for their tremendous teamwork in 2020 and look forward to many more years of partnership ahead. Together, we share a vision for an incredible future, and we are confident the best is yet to come.

Joseph Galli Jr
Chief Executive Officer
March 3, 2021
CEO’s Statement (PDF)

Vice Chairman’s Statement

“Culture is driven from the top, and every member of our company’s leadership team and our Board of Directors drives TTI to align its core strategic drivers and culture with ESG values.”

2020 challenged the world and its global citizenry perhaps as never before. We are proud that throughout this challenging year, we assiduously maintained our dedication to our people and to their health and safety.

We are equally proud that we strengthened our commitment to be a global leader in environmental sustainability, social responsibility, and ethical corporate governance. While achieving an unprecedented level of growth and success, we intensified our focus on recruiting and retaining a talented and diverse global workforce.

Culture is driven from the top, and every member of our company’s leadership team and our Board of Directors drives TTI to align its core strategic drivers and culture with ESG values. By promoting these commitments and beliefs throughout the organization, we have successfully driven initiatives that deliver positive impacts for our employees, customers, suppliers, investors, other partners, and society. The following are examples of just some of those initiatives:

• Environment: Even in the face of a global pandemic, we continued to relentlessly invest in talent and R&D to produce revolutionary, environmentally responsible cordless products that will accelerate the world’s conversion away from gas-powered products and other legacy technologies. Our industry-leading products are designed and engineered to reduce emissions, noise, vibration, size, and weight and otherwise improve ergonomics for users. These innovative products include our WHISPER series of leaf blowers which substantially reduce the noise produced in residential and commercial neighborhoods, highly efficient brushless motors, and an expanded platform of cordless cleaning, tool and outdoor products. We take immense pride in receiving The Home Depot’s Environmental Partner of the year award and will continue to build on our successes. As a whole, we worked to reduce TTI’s greenhouse gas (GHG) emissions intensity and as we continue to grow, we are setting environmental targets and incorporating environmental requirements into the design of our new and existing facilities.

• Social and Community: The health and safety of our employees are our top priority, and our global facilities adhered to government and health agency guidelines and best practices and provided employee training, personal protective equipment, and other support wherever and whenever needed. The recruitment into our Leadership Development Program (LDP) was unmatched in the record number of exceptional people hired who represent the future leadership of TTI. Our diversity and inclusion initiatives help enable us to attract and retain a global workforce who represent diversity in many dimensions.

• Governance: We have expanded our ESG Executive Committee, comprised of Board members and members of our leadership team across geographic regions and functional areas. Additionally, we renewed our membership to Global Reporting Initiative (GRI) which aims to increase transparency in ESG reporting. We joined the Responsible Business Alliance (RBA) as a supporter member to foster human rights, environment protection and overcome potential ethical supply chain challenges.

At TTI, we are and will remain unflaggingly passionate about pursuing our strategic drivers while fulfilling our commitment to a more just, diverse, safe, and environmentally responsible world. I am confident that our exceptional people will continue to meet the challenges and exceed the goals that lay ahead as we continue to lead our industry toward a more sustainable future.

Stephan Horst Pudwill
Vice Chairman
March 3, 2021

TTI's ESG Approach and Strategic Framework

Instilling ESG best practices along our value chain drives TTI’s approach to sustainability in the way we operate, what we produce, how we source and the way we live. Sustainability is at the core of our business today and is the bedrock for both the development of our business and creating shared value for all our stakeholders’ future prosperity. Our strategic framework for ESG is based on engagement with our stakeholders to learn what is important to them, their needs and key concerns. Their feedback helps TTI conduct a comprehensive assessment process which allows us to identify our material topics that impact the sustainability of our value chain and business overall.We understand that our actions are not only of significant importance to the future of our business, but also address collective, global concerns to make a true difference by aligning with the United Nations Sustainable Development Goals (UNSDGs). We are committed to implementing more initiatives, including setting environmental targets to address our climate impact and enhancing our overall sustainability practices. Accountability and transparency will drive the success of these goals and our vision for ESG.

Governance

Our material topics have wide-ranging impacts along our value chain, therefore embedding sustainability across our business by utilizing a strong governance structure and robust risk management strategy is key. Embedding sustainability in the business means operating responsibly by adhering to sound ethics and governance practices in accordance with codes and policies that emphasize accountability. These codes and policies address both offline and online risks. As such, securing the integrity of some of our most valuable assets – our online data systems and intellectual property – is also an important focus of our governance strategy.

Operating responsibly necessitates engaging in global initiatives to enhance our performance and transparency to create a more sustainable world. In addition to progress on alignment with key UNSDGs and our participation in effective multi-stakeholder forums, such as the Global Reporting Initiative (GRI), our global efforts include partnerships with a number of organizations that are working actively to promote sustainability and tackle sustainability challenges.

93.1%

of employees trained on anti-corruption practices

Global Cyber Policy

review successfully conducted with remediation efforts accomplished for identified gaps

Environment

Protecting our planet for the long-term sustainability of our business and communities is critical. At TTI, we recognize the responsibility we have to positively impact our communities and we are committed to do our part to improve environmental performance within our operations, along our value chain, through our products and for the community. Our approach to environmental sustainability is closely tied to our drive for innovation, conservation of resources, reduction of waste, energy efficiency and renewable energy technology. These are fundamental as we move toward setting environmental targets. Our commitment to help protect the planet and tackle climate change remains foundational to the strategic drivers – Powerful Brands, Innovative Products and Operational Excellence – that guide our business.

14% & 20%

decrease in AIP consumption and intensity per production value US$ million of natural gas

14%

reduction in GHG emission carbon dioxide equivalent (Scope 1, 2 and 3) intensity per production value US$ million globally

Social and Community

In 2020, our global workforce comprised of more than 48,000 people, an increase of 45% compared to 2019. Many factors contributed to our substantial growth, including the expansion of our global manufacturing operations. Customer demand across all our brands propelled the development of new products and resulted in increased hiring.

Throughout this period, our mission has been to create positive social impacts through comprehensive employee initiatives, robust customer-centric policies and active community partnerships. In 2020, the emphasis on health, safety and wellbeing played an even greater role due to the COVID-19 pandemic.

The following sections on talent attraction and engagement, health, safety and wellbeing, diversity and inclusion, product safety and community investment and engagement discuss how we have managed these material topics in 2020.

464,196

training hours provided to employees

Mental Health
First Aid

programs established in response to COVID-19 pandemic

Supply Chain Management

TTI’s relationships with an extensive global range of diverse suppliers are vital to our long-term success. Transparency, accountability and efficiency in our supply chain are essential as we strive to make our procurement more sustainable. Our commitment extends beyond simply complying with regulations, to supporting the long-term social, environmental and economic health of the communities along our supply chain. We are proud to partner with a number of organizations helping us in this journey.

Zero

high risk concerns identified in our Conflict Minerals and Cobalt Procurement Campaigns

Responsible
Business Alliance

TTI became a supporter member of the RBA

Remodel
Hobby & Craft
Lifestyle
Pro
Load More
Load Less
Cordless
Cleaning
Carpet
Washing
Cordless
Cleaning
Carpet
Washing

Trade Vertical Innovation:
Diversified and Disruptive

Learn More

Setting the bar high

Learn More
Highly advanced motor technology boosts efficiency, generating more power from a compact power source. That means the ultimate performance, durability and run-time comes in a smaller, lighter package.
An advanced combination of hardware and software, REDLINK intelligence enables full-circle communication between our batteries and tools, allowing for unmatched levels of performance, protection and productivity.

1

POWERSTATE BRUSHLESS MOTOR
  • MILWAUKEE designed and built brushless motor
  • Outperforms all leading competitors

2

REDLINK PLUS INTELLIGENCE
  • Most advanced electronic system on the market for maximum performance
  • Total system communication with overload protection increases tool life
  • Built-in fuel gauge displays remaining charge

3

REDLITHIUM CP2.0 & XC4.0 BATTERY PACKS
  • Up to 2X run-time
  • 20% more power
  • Up to 2X more recharges than leading competitor
  • Operates below -18ºC / 0ºF
Highly advanced motor technology boosts efficiency, generating more power from a compact power source. That means the ultimate performance, durability and run-time comes in a smaller, lighter package.
An advanced combination of hardware and software, REDLINK intelligence enables full-circle communication between our batteries and tools, allowing for unmatched levels of performance, protection and productivity.

1

POWERSTATE BRUSHLESS MOTOR
  • MILWAUKEE designed and built brushless motor
  • Outperforms all leading competitors

2

REDLINK PLUS INTELLIGENCE
  • Most advanced electronic system on the market for maximum performance
  • Total system communication with overload protection increases tool life

3

REDLITHIUM XC5.0 BATTERY PACK
Fits M18 Tools
  • Most durable pack on the market
  • Over 2X more recharges than leading competitor
  • Fuel gauge displays remaining charge
  • Operates below -18ºC / 0ºF
Highly advanced motor technology boosts efficiency, generating more power from a compact power source. That means the ultimate performance, durability and run-time comes in a smaller, lighter package.
An advanced combination of hardware and software, REDLINK intelligence enables full-circle communication between our batteries and tools, allowing for unmatched levels of performance, protection and productivity.

1

REDLITHIUM BATTERY PACK

2

REDLINK PLUS INTELLIGENCE

3

POWERSTATE BRUSHLESS MOTOR
RYOBI 18V ONE+ HP and 40V HP Brushless products deliver a premium user experience through the combination of powerful brushless motors, advanced electronics, and high-performance
lithium-ion battery technology. This powerful combination allows users to get more work done per charge with increased performance.

Brushless Motor Technology
More power, longer run-time, and longer motor life. Our brushless motors give you increased performance and a premium user experience. Brushless motors not only deliver more power, they are lighter and more compact than brushed motors, allowing users to work longer and more efficiently.

Superior Ergonomics
RYOBI designed these tools for best-in-class ergonomics, without compromising on performance.

Advanced Electronics
The advanced electronics in our 18V ONE+ HP tools and 18V Lithium High Performance Batteries allow users to maximize performance in all applications.

High Performance Lithium-Ion Battery Technology
RYOBI 18V Lithium High Performance Batteries provide up to 4X run-time and 30% more power, in a lighter weight and more ergonomic design than previous generations of RYOBI 18V ONE+ batteries.

Leadership Development Program

Since its inception in 2007, the TTI Leadership Development Program (LDP) has been a key initiative with the recruitment of high-potential graduates from top universities for a vast array of job roles followed by dedicated systems focusing on training, mentoring, and promoting. Over the last 14 years, TTI has hired over 5,000 LDPs with many becoming leaders within the organization and a number serving in international positions.

Our flourishing LDP program continues to grow and has been expanded worldwide from the USA into Europe, Canada, Latin America, Australia and New Zealand. TTI continues to invest in its LDP program and hired 1,208 graduates in 2020. Our unwavering commitment to the program will continue to propel TTI’s growth and feed talent into key positions throughout the company, forming the foundation of future TTI leaders.

LDP Career Path

Global LDP Hires – 2007-2020

LDP 2020 – Campus Hires

New Product Machine

A TTI strategy is the investment in R&D to drive innovative, technology-rich product development. We have built a powerful high-speed new product development system that delivers a continuous stream of innovative new products to improve the performance, safety and productivity of our users.

Our innovation network of world class Concept Centers includes researchers, designers, engineers and product experts, working collaboratively across multiple time zones around the globe. The TTI New Product Machine is introducing one breakthrough product after another and delivering a high level of product vitality year after year.

24 HOUR R&D, Delivering New and Innovative Products at High Speed-to-Market

World-class Concept Studios

Six studios in three continents: North America, Europe, Asia

High Caliber Talent

Multi-disciplinary concept staff consisting of researchers, designers, engineers and product experts

Product Impact

Over 100 international design awards in 2020

Global Manufacturing

TTI has a global manufacturing footprint providing strategic geographic diversification. We are globally aligned in production and supply chain capacity to support our growth. We source and manufacture in the best cost locations to supply our global businesses. TTI has moved rapidly to expand operations in Vietnam, US and Mexico bringing capacity and balance in the face of global uncertainties.
As all our manufacturing facilities execute the TTI OPEX System, cellular and lean manufacturing practices are vertically integrated on key components and linked to our global purchasing network. Our global manufacturing and supply chain allow rapid response, best cost and are diligently focused on service.

Operational Excellence System

TTI has a relentless focus on Operational Excellence. Through a disciplined execution of the TTI OPEX System, we are generating efficiencies throughout our operations. The TTI OPEX System establishes performance targets and measures results that improve productivity and quality, eliminates waste and unnecessary costs, and controls non-strategic overhead. Our TTI OPEX System generates a cycle of improvement at all levels of operations.

Cordless Cleaning

HOOVER Cordless Cleaning

In 2020, HOOVER expanded its successful ONEPWR compatible cordless line with several accessory products and two core hero products. The HOOVER EVOLVE Cordless Vacuum blends the power and capacity of a full-size upright with the lightweight convenience of a stick vacuum in a free-standing form. The HOOVER Cordless HEPA Bagged Upright is the first cordless bagged vacuum. With its sealed bagged system, it captures and contains dirt, dust and irritants for safe and convenient disposal.

Carpet Washing

HOOVER Carpet Washing

HOOVER continues to change the landscape of carpet washing to address the various needs of consumers. The iconic brand offers compact carpet cleaners for quick, high-traffic carpet cleaning, full-size carpet washers for larger areas and spot cleaners for spills, spots and stains. In 2020, HOOVER built on the success of the SMARTWASH platform by adding a pet-specific model with a detachable pre-treat wand for spots and stains.

Cordless Cleaning

VAX Cordless Cleaning

The powerful ONEPWR battery powers a variety of VAX cordless cleaning products. The system is led by the VAX BLADE 4 range which represents VAX’s best performing cordless stick vac, boasting up to 90 minutes of run-time and is proven to clean carpets better than the UK’s top 3 best-selling cordless vacuums.

Carpet Washing

VAX Carpet Washing

VAX is the UK’s number one name in carpet washing. 2020 saw the launch of the new VAX PLATINUM SMARTWASH, VAX’s best ever carpet washer which kills over 99% of bacteria and with next generation motion sense technology, it’s effortlessly simple to use.

Financial Highlights

11th consecutive year of
Record Revenue

28.0%

US$9,812 million
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11th consecutive year of
Record Revenue

28.0%

US$9,812 million
  • Full year organic sales growth of over US$2.1 billion, +28.0%
  • Exceptional 2nd half sales growth of +42.3%
12th consecutive year of
Gross Margin Improvement

52 bps

38.3% in 2020
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View Chart
12th consecutive year of
Gross Margin Improvement

52 bps

  • Gross margin improved for the 12th consecutive year to 38.3%, up +52 basis points
13th consecutive year of
Record Profit

30.2%

US$801 million
View Chart
View Chart
13th consecutive year of
Record Profit

30.2%

US$801 million
  • Net profit growth of 30.2% to US$801 million
 
EBIT

29.0%

US$868 million
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View Chart
EBIT

29.0%

US$868 million

An increase of 29.0% as compared to US$673 million in 2019

 
Basic Earnings per Share

30.1%

US43.80 cents
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View Chart
Basic Earnings per Share

30.1%

US43.80 cents

Delivered the thirteenth consecutive year of record basic EPS

 
Dividend per Share

31.1%

US17.37 cents
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View Chart
Dividend per Share

31.1%

US17.37 cents

The final dividend is US10.55 cents

Financial Highlights

  2020
US$'
million
2019
US$'
million
Changes
Revenue 9,812 7,667 +28.0%
Gross profit margin 38.3% 37.7% +52 bps
EBIT 868 673 +29.0%
Profit attributable to Owners of the Company 801 615 +30.2%
Basic earnings per share (US cents) 43.80 33.67 +30.1%
Dividend per share (approx. US cents) 17.37 13.26 +31.1%

Chairman’s Statement

“We are positioned to capitalize on the many growth opportunities we have identified in the months and years ahead.”

Horst Julius Pudwill
Chairman

Chief Executive Officer’s Message

“To achieve growth and global expansion like ours is a testament to the quality of our team, strength of our culture and the crystal-clear focus of our strategy.”

Joseph Galli Jr
Chief Executive Officer

Strategic Drivers

TTI is a global strategy-based organization. We have been diligent in researching and refining the key concepts for ongoing sustainability and growth. Early on, leadership identified four strategic areas that would drive our success: Powerful Brands, Innovative Products, Exceptional People and Operational Excellence. The synergy in our four strategic drivers creates a culture of disruptive innovation and execution resulting in world-class, powerful brands. This dynamic structure of interconnectivity not only maximizes growth and improvement in every area of our company; but also, delivers the innovative, high-quality driven products needed by consumers and professionals around the world. Consequently, our focus on strategy has created a cycle for our continued success.

Powerful Brands
Innovative Products
Exceptional People
Operational Excellence

Financial Highlights

Trade Vertical Innovation:
Diversified and Disruptive

It all starts with the user. We don’t make assumptions. Instead, we set out to deliver disruptive innovation by getting out on the jobsite, alongside trade professionals, to understand their challenges – the frustrations, needs, and previous limitations. We set out to completely rethink a solution with new-to-world technology and unparalleled levels of design and engineering. Whether it’s bringing cordless power to traditionally corded or gas products and manual activities, or advances to fundamental tools and equipment, MILWAUKEE’s focus is on working directly with users to help improve their productivity and safety.

Cordless System

The MILWAUKEE M12 System continues to introduce innovative solutions that deliver portable productivity and performance. For example, the newly launched M12 FUEL HATCHET 6” Pruning Saw delivers unmatched control, power, and versatility while meeting the demands of landscape maintenance professionals.

Cordless System

The MILWAUKEE M18 Platform continued to grow with the launch of several best-in-class additions. In the cordless nailing category, our new M18 FUEL 30 and 21 Degree Framing Nailers and 18ga 1/4" Narrow Crown Stapler all deliver powerful pneumatic performance professionals expect without the hassle of a compressor, hose or gas cartridge. We also launched the quietest cordless compressor on the market with our M18 FUEL 2 Gallon Compact Quiet Compressor. In addition to expanding into new product categories, we introduced next generation innovation to our legendary M18 FUEL SAWZALL Reciprocating Saw.

Cordless System

With the launch of the industrial MILWAUKEE MX FUEL Equipment System, we entered the multi-billion-dollar light equipment space. This platform’s disruptive cordless technology replaces traditional gas and corded power sources and has been well received by industrial users all over the world.

Storage and Safety

Storage

The revolutionary MILWAUKEE PACKOUT Storage System continues to expand to meet the professional’s growing tool storage, transportation and organizational needs. New innovations to the system of over 36 interchangeable products include the PACKOUT Customizable Work Surface, PACKOUT 16QT Cooler, M18 PACKOUT Light/Charger and PACKOUT 2-Wheeled Cart.

Safety

MILWAUKEE is committed to keeping professionals safe on the job by offering over 500 solutions in the categories of hard hats, eye protection, hearing protection, high visibility vests, respirators, and work gloves. Each PPE solution has been developed with a deep understanding of user’s needs, allowing us to introduce needed innovations like fog-free safety glasses, impact rated gloves and many more.

Lasers and Accessories

M12 and REDLITHIUM USB Laser

MILWAUKEE continues to drive layout innovation with the introduction of M12 and REDLITHIUM USB Lasers. M12 Lasers deliver all-day run-time, best visibility, and faster set-up. The USB Rechargeable solutions are designed to tackle frustrations with current alkaline-powered solutions, eliminating the dependency on disposable batteries. All MILWAUKEE lasers are engineered with a focus on power, visibility, and set-up in order to increase productivity on the jobsite.

SHOCKWAVE IMPACT DUTY Sockets

The new SHOCKWAVE IMPACT DUTY 6 Point Socket Lineup is available in 1/4", 3/8", 1/2", 3/4", and 1" drives. The SHOCKWAVE IMPACT DUTY Sockets provide maximum wear resistance with stamped and ink-filled size markings, making it easier for users to select the right socket for their application throughout the entire life of the socket. Constructed with high-strength forged steel, these sockets deliver optimized performance in heavy-duty applications, and a non-slip hex geometry prevents socket and fastener rounding. For easy socket attachment and removal, the sockets are complete with a dual-hole design and ring groove.

Financial Highlights

Setting the bar high

RYOBI specializes in making pro-featured power tools and outdoor products truly affordable. We’re the brand of choice for millions of homeowners and DIYers. Using cordless lithium-ion technology, RYOBI’s 18V ONE+ Cordless System powers through almost anything to meet our consumers’ needs. With 175 ONE+ tools including the new line of HP tools, RYOBI is continually innovating our products and finding their way into workshops and jobsites.

As the #1 Cordless Mower brand, RYOBI is an industry leader in the Outdoor Power Equipment category. Superior 40V tools exceed consumer’s expectations by delivering GAS-LIKE POWER along with fade-free, long-lasting performance. Part of the 40V Cordless System, the new 40V HP tools and batteries are compatible with 50+ RYOBI 40V tools.

Remodel
Hobby & Craft
Lifestyle
Pro

18V ONE+ Cordless System

Today, RYOBI 18V ONE+ is the #1 Consumer PowerTool brand in the world. Featuring 175 innovative product solutions, RYOBI provides the ultimate in versatility and selection to get the job done. Millions of DIY enthusiasts and pros worldwide look to ONE+ to power through almost anything – from the home to the jobsite to out in the yard or on the go, RYOBI ONE+ is the system that gives users “The Power To Do More”.

40V Cordless Outdoor System

From the #1 Cordless Lawn & Garden Brand in the world, RYOBI’s 40V lineup sets the bar for performance and innovation. Our 40V Lithium tools deliver superior run-time and performance, providing consumers freedom from gas-powered outdoor equipment. Today, there are 50 innovative products in the system that can be powered by any RYOBI 40V lithium-ion battery. Our 40V system makes it convenient to transition from gas to cordless to handle all consumers’ lawn and garden needs.

As the industry’s #1 Cordless Mower Brand, RYOBI has built upon our impressive product offering. We continue to invest in brushless technology – where power and performance meet cordless convenience in this next generation of mowers.

RYOBI set the standard for power, performance, and innovation in its class with the introduction of the 18V ONE+ HP Brushless and 40V HP Brushless products. The High Performance (HP) tools are optimized to deliver longer run-time and more work per charge, with an ergonomic design for comfort during extended use without compromising on performance. In parallel, we harnessed the same technology to elevate our high voltage 40V lineup of products with the introduction of the 40V HP Brushless tools. The 40V HP Brushless Tools harness GAS-LIKE POWER and deliver maximum run-times without the hassle of a traditional gas unit.

The 18V ONE+ HP and 40V HP platforms combine high-performance brushless motors, advanced technologies, and superior ergonomics to deliver a best-in-class user experience. In other words, RYOBI’s 18V ONE+ HP and 40V HP products enable DIYers, weekend warriors, homeowners, and pros alike to make more cuts and drive more screws on a single charge than ever before. The 40V HP Brushless products allow users to tackle yardwork and lawn maintenance without having to plug-in or fill-up.

HOOVER Cordless Cleaning

In 2020, HOOVER expanded its successful ONEPWR compatible cordless line with several accessory products and two core hero products. The HOOVER EVOLVE Cordless Vacuum blends the power and capacity of a full-size upright with the lightweight convenience of a stick vacuum in a free-standing form. The HOOVER Cordless HEPA Bagged Upright is the first cordless bagged vacuum. With its sealed bagged system, it captures and contains dirt, dust and irritants for safe and convenient disposal.

Technology

The ONEPWR battery allows the HOOVER brand to power a full lineup of cleaning tools with a single removable, replaceable lithium-ion battery.

HOOVER Carpet Washing

HOOVER continues to change the landscape of carpet washing to address the various needs of consumers. The iconic brand offers compact carpet cleaners for quick, high-traffic carpet cleaning, full-size carpet washers for larger areas and spot cleaners for spills, spots and stains. In 2020, HOOVER built on the success of the SMARTWASH platform by adding a pet-specific model with a detachable pre-treat wand for spots and stains.

VAX Cordless Cleaning

The powerful ONEPWR battery powers a variety of VAX cordless cleaning products. The system is led by the VAX BLADE 4 range which represents VAX’s best performing cordless stick vac, boasting up to 90 minutes of run-time and is proven to clean carpets better than the UK’s top 3 best-selling cordless vacuums.

VAX Carpet Washing

VAX is the UK’s number one name in carpet washing. 2020 saw the launch of the new VAX PLATINUM SMARTWASH, VAX’s best ever carpet washer which kills over 99% of bacteria and with next generation motion sense technology, it’s effortlessly simple to use.

Management’s Discussion & Analysis

Review of Operations

Power Equipment

Our Power Equipment segment delivered sales growth of 28.5% to US$8.7 billion. During the period, we seized on the opportunity to aggressively invest in our business and grew operating profit 27.3% to US$844 million.

Review of Operations

Floorcare

Our Floorcare business accounted for 11.0% of TTI total sales, with sales increasing 23.6% to US$1.1 billion, while generating US$24.6 million of operating profit, up 138.0% from 2019.

Environmental, Social and Governance Report

Vice Chairman’s Message

Strategic Framework

Governance

93.1%

of employees trained on anti-corruption practices
Environment

14%

Reduction in GHG emission carbon dioxide equivalent (Scope 1, 2 and 3) intensity per production value US$ million globally
Social & Community

464,196

Training hours provided to employees
Supply Chain Management

Zero

High risk concerns identified in our Conflict Minerals and Cobalt Procurement Campaigns

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Intellectual Property

All trademarks and trade names listed other than AEG, RYOBI and PROPEX are owned by 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.

PROPEX is a trademark of Uponor, Inc.