创科实业 2023年度报告

SINGLE CHANNELSTRUT SHEAR The M18 FORCE LOGIC Single Channel Strut Shearis the most productive way to shear strut on thejobsite. It uses proprietary shearing dies to deliversquare, clean shears without additional filing ordeburring and having a dual die design eliminatesexposed blades and reduces the chance ofelectricians cutting themselves on the jobsite. PROPRIETARYSHEARING DIES Delivers clean shears eliminatingthe need to file or deburr DUAL DIE DESIGN Eliminates exposed blades, reducingcuts and lacerations STRUT SUPPORT PLATE Provides quick, simple, and repeatable shears tomaximize productivity on site Contents 2Financial Highlights4Chairman’s Statement6Chief Executive Officer’s Message8Strategic Drivers10Power Equipment46Floorcare & Cleaning54Management’s Discussion and Analysis58Board of Directors64Corporate Governance Report80Report of the Directors93Independent Auditor’s Report96Consolidated Financial Statements102Notes to the Consolidated Financial Statements194Financial Summary195Corporate Information Company Profile Techtronic Industries Company Limited (the “Company”, the “Group”or “TTI”) is a fast-growing world leader in Power Tools, Accessories,Hand Tools, Outdoor Power Equipment, and Floorcare & Cleaningfor Do-It-Yourself (DIY)/Consumer, professional and industrial usersin the home improvement, repair, maintenance, construction andinfrastructure industries. The Company is committed to acceleratingthe transformation of these industries through superior environmentallyfriendly cordless technology. The TTI brands like MILWAUKEE,RYOBI and HOOVER are recognized worldwide for their deep heritageand cordless product platforms of superior quality, outstandingperformance, safety, productivity and compelling innovation. Founded in 1985 and listed on the Stock Exchange of Hong Kong(“SEHK”) in 1990, TTI is included in the Hang Seng Index as one oftheir constituent stocks. The Company maintains a powerful brandportfolio, global manufacturing and product development footprint,healthy financial position with record 2023 worldwide sales ofUS$13.7 billion and over 47,000 employees. FINANCIALHIGHLIGHTS EBIT (US$’ million)1,135A decrease of 5.5%as compared to 2022 Free Cash Flow (US$’ million)1,281Record free cash flowof US$1,281 million, anincrease of US$952 millionas compared to 2022 Revenue (US$’ million)13,731An increase of 3.6%as compared to 2022 39.5% Gross Margin improved for the 15thconsecutiveyear to 39.5%, a 14 basis points increase Dividend per Share (US cents)24.84 Working Capital as % of Sales17.7%Working capital as a percentage tosales was at 17.7% as comparedto 21.2% in 2022 The Board has recommended a finaldividend of US12.61 cents which resultsin a full-year dividend of US24.84 cents Chairman’s Statement Globally, all regions delivered above market growth in local currency in2023. North America grew 2.9% and Europe delivered an impressive7.3% growth. Rest of World, including Australia, Latin America, andAsia, delivered 7.6% growth. Gross margin improved 14 bps to 39.5% in 2023. This improvementis a direct result of the continued success of the MILWAUKEE business,the growth of our aftermarket battery sales, and highly innovativemargin accretive new product. This gross margin improvement ishighly encouraging given our significant US$987 million inventoryreduction versus last year. Total SG&A increased 96 bps from year end 2022 to 31.3% of sales.Selling, distribution, and marketing increased 56 bps due to one-timepromotional funding investments to drive sell through at our partnersand reduce inventory in our channels. Research and developmentincreased 34 bps versus last year. Amortization of intangible assetsaccounted for 28 bps of the increase, and we increased investmentsin research activities to bolster our new product pipeline. Financial Performance EBIT was at US$1.1 billion, 5.5% lower than 2022. In the secondhalf of 2023, EBIT improved to US$575 million, a 1.1% increaseversus the second half of 2022. In 2023, we delivered US$976 million of net profit. The decline of9.4% versus last year was partially driven by significant increasesin interest rates over the period, resulting in higher interest expense.Earnings per share also declined 9.3% to US53.36 cents. We reduced inventory an impressive US$987 million from year end2022. This was split throughout the halves with a US$504 millionreduction in the first half and an additional US$483 million in thesecond half. Although we have made vast progress on inventory,we believe we can continue reducing inventory days on hand in 2024and the years ahead. TTI delivered US$13.7 billion of sales in 2023,up 3.6% in reported growth and 3.9% in localcurrency. Both our MILWAUKEE and Consumergroup of businesses gained momentum in thesecond half of 2023. Capex spend for the year was US$502 million, lower than last year by13.7%. This spend includes investments in new product, manufacturingcapacity, automation, and productivity init