Revenue

+9.2%
US$7,667 million

Gross Profit Margin

+50 bps
37.7% in 2019

EBIT

+10.9%
US$673 million

Basic Earnings per Share

+11.6%
US33.67 cents

Net Profit

+11.3%
US$615 million

Dividend per Share

+17.0%
US13.26 cents

Revenue

+9.2%
US$7,667 million

Gross Profit Margin

+50 bps
37.7% in 2019

EBIT

+10.9%
US$673 million

Basic Earnings per Share

+11.6%
US33.67 cents

Net Profit

+11.3%
US$615 million

Dividend per Share

+17.0%
US13.26 cents

Financial Highlights

2019
US$’ million
2018
US$’ million
Changes
Revenue 7,667 7,021 +9.2%
Gross profit margin 37.7% 37.2% +50 bps
EBIT 673 607 +10.9%
Profit attributable to Owners of the Company 615 552 +11.3%
Basic earnings per share (US cents) 33.67 30.16 +11.6%
Dividend per share (approx. US cents) 13.26 11.33 +17.0%

10th
consecutive year of
record revenue

11th
consecutive year of
Gross Margin improvement

12th
consecutive year of
record profit

10th
consecutive year of
record revenue

11th
consecutive year of
Gross Margin improvement

12th
consecutive year of
record profit

Chairman’s Statement

I am proud to report that TTI had a strong year of financial performance with record profits delivering a decade of consecutive annual revenue growth.
Horst Julius Pudwill
Chairman

Chief Executive Officer’s Message

We are not just selling more cordless power tools than the competition, we are building a great tool company for the future.
Joseph Galli Jr
Chief Executive Officer

Our Strategic Focus

TTI has a powerful strategy and a disciplined process that create vast growth opportunities.

  • Powerful Brands
  • Innovative Products
  • Exceptional People
  • Operational Excellence
  • Unassailable Competitive Advantage
  • Sustainability
  • Superior Performance Commitment
Vast Growth
Opportunities

Unassailable
Competitive
Advantage

  • Breakthrough Technologies
  • Product Innovation

Superior
Performance
Commitment

  • New Product
    Machine
  • Operational
    Excellence
  • Leadership
    Development
    Program

Vast Growth
Opportunities

  • Platform
    Expansion
  • Category
    Expansion
  • Vertical
    Expansion
  • Geographic
    Expansion

Management’s Discussion and Analysis

Review of Operations
Power Equipment, Accessories, Storage and Hand Tools

TTI’s Power Equipment business, featuring MILWAUKEE industrial tools, RYOBI DIY power tools and RYOBI outdoor products delivered outstanding organic growth in all key markets with revenue increasing 13.0% to US$6.8 billion.

The relentless development of new innovative products, targeted sales and marketing investments and strategic geographic expansion all drove the stellar 2019 performance. Operating profit was up 10.8% to US$663 million. The Power Equipment business represented 88.6% of total sales.

13.0%

Revenue growth of Power Equipment business

US$663 million

The business delivered operating profit of US$663 million, a 10.8% increase over the previous year

Flagship Milwaukee Tool business continues to grow 20%+ in local currency

RYOBI cordless sales delivered double-digit sales growth

US$6.8 billion

Sales in Power Equipment, Accessories, Storage and Hand Tools

Floor Care and Appliances

In 2019, the Floor Care and Appliance business made outstanding progress developing the categories of Cordless cleaning and Carpet Washers.

The transition has resulted in 18.9% growth in these categories year-over-year making a significant contribution to the overall business. We have been disciplined in transitioning our floor care business from dated legacy corded floor care products to high-performance cordless and newly engineered state-of-the-art carpet washers. The floor care and appliance sales decline of 13.5% from prior year was a result of our successful strategic exit of the German floor care business while improving our profitability in the segment. The disciplined expansion of in-house manufacturing for our strategic categories in cordless cleaning and carpet washing products to the US and Vietnam has been a great success.

18.9%

growth in cordless cleaning and carpet washer categories

US$10 million

The Floor Care and Applicance business generated US$10 million of operating profit, up 12.8% from 2018

HOOVER and VAX cordless ONEPWR products have great potential

Expansion of in-house manufacturing in the US and Vietnam

US$875 million

Sales in Floor Care and Appliances

Environmental, Social and Governance Report

Governance

GRI
Incorporation of Global Reporting Initiative Standards

Environment

+200%
Increase in battery collection at TTI’s North American sites

Supply Chain Management

Cobalt
Procurement Policy launched

Social

1,475
Graduates in our Leadership Development Program (LDP)

Community

Habitat for Humanity
Global partnership

Environmental, Social and Governance Report

Governance

GRI
Incorporation of Global Reporting Initiative Standards

Environment

+200%
Increase in battery collection at TTI’s North American sites

Supply Chain Management

Cobalt
Procurement Policy launched

Social

1,475
Graduates in our Leadership Development Program (LDP)

Community

Habitat for Humanity
Global partnership