2021-04-14 08:39Financial Performance - The company reported a revenue of $9.812 billion for 2020, an increase of 28.0% compared to $7.667 billion in 2019[9]. - Gross margin improved to 38.3% in 2020 from 37.7% in 2019, marking a 52 basis point increase[9]. - Operating profit before interest and tax rose by 29.0% to $868 million, with an operating margin of 8.9%[18]. - Net profit attributable to shareholders increased by 30.2% to $801 million, with basic earnings per share rising to 43.80 cents, a 30.1% increase[9]. - The company achieved significant growth and global expansion in 2020, with all business units and regions recording outstanding sales growth[26]. - The company achieved a gross margin increase, with profit growth outpacing sales growth, reflecting strong financial performance[28]. - The company’s revenue for the year was $9,800,000,000, an increase of 28.0% from $7,700,000,000 in 2019[127]. - Net profit attributable to shareholders was $801,000,000, up from $615,000,000 in 2019, representing a growth of 30.2%[127]. - Basic earnings per share increased to $0.4380 from $0.3367 in 2019, reflecting a rise of 30.2%[127]. - The company achieved a compound annual growth rate (CAGR) of 17.4% in revenue and 18.7% in earnings before interest and taxes (EBIT) over the past three years[168]. Sales and Market Growth - The electric tools segment accounted for 89.0% of total sales, growing by 28.5% to $8.7 billion[16]. - Sales in North America grew by 29.5%, while Europe, the Middle East, and Africa saw a 19.1% increase, and other global regions grew by 30.6%[16]. - The floor care business reported a sales increase of 23.6%, reaching $1.1 billion[16]. - The electric tools segment reported a sales increase of 28.5% to $8.7 billion, with operating profit rising 27.3% to $844 million[102]. - The flagship brand Milwaukee experienced a growth of 25.8%, driven by continuous product innovation and the expansion of the M18 and M12 cordless product platforms[105]. - The floor care segment saw a sales growth of 23.6% to $1.1 billion, with operating profit increasing by 138% to $24.6 million[122]. - RYOBI, the leading global DIY tool brand, launched a new generation of ONE+ HP brushless products, contributing to double-digit growth in 2020[114]. Product Development and Innovation - Strategic investments were made in new product development and regional expansion to capture market share during the pandemic[17]. - The company is focused on developing advanced, high-quality rechargeable products, with the MILWAUKEE brand becoming the fastest-growing professional tool brand globally in 2020[22]. - The company has established a global network of R&D centers, employing over 600 engineers to drive technological improvements and accelerate new product launches[22]. - The M12 FUEL platform continues to innovate with new products like the M12 FUEL HATCHET 6-inch pruning saw, enhancing user productivity and performance[34]. - The M18 platform has introduced new products, including the M18 FUEL 30-degree and 21-degree nailers, which provide powerful pneumatic performance without the hassle of compressors[40]. - The REDLINK PLUS intelligent system enables comprehensive communication between batteries and tools, resulting in unmatched performance and safety[50]. - The company continues to innovate in personal protective equipment, offering over 500 solutions tailored to user needs, including fog-resistant goggles and impact gloves[56]. - The company is committed to investing in new product development, production, and market expansion to maintain its leading position in the industry[26]. Sustainability and ESG Initiatives - The company emphasizes sustainability by leading the industry in environmentally friendly rechargeable technology, aligning its growth with ESG performance[25]. - The company is committed to sustainable development by replacing high-pollution fossil fuel products with low-emission lithium battery products[28]. - The company invested in revolutionary eco-friendly rechargeable products to accelerate the transition away from traditional fuel-driven products, focusing on reducing emissions, noise, vibration, size, and weight[189]. - The company is committed to reducing greenhouse gas emissions intensity and has set environmental goals integrated into the design of new and existing facilities[189]. - The company maintains membership in the Global Reporting Initiative (GRI) to improve ESG reporting transparency[194]. - The company emphasizes the importance of stakeholder engagement, focusing on climate change, ethical governance, data protection, and product sustainability and safety as top priorities[198]. - The company has established a compliance reporting hotline and online platform for suppliers to ensure adherence to social and environmental responsibilities[197]. - The company expanded its ESG Executive Committee to include board members and regional leaders, enhancing governance and transparency in ESG reporting[194]. Corporate Governance and Management - Joseph Galli Jr has been the CEO since February 2008, focusing on M&A in North America and Europe, and enhancing global sales potential of strong brand portfolio[141]. - The company has a strong management team with extensive experience in the industry, including members with backgrounds in major firms like Black & Decker and Amazon[141]. - The board includes independent non-executive directors with significant experience in banking and legal sectors, enhancing corporate governance[145][146]. - The company has maintained high levels of corporate governance to enhance shareholder value and promote sustainable development[150]. - The board's responsibilities include reviewing and monitoring local and international business risks to enhance shareholder value[153]. - The company has established three board committees: Audit Committee, Nomination Committee, and Remuneration Committee, with a majority of independent non-executive directors[162]. - The company encourages directors to engage in various professional development programs to enhance their knowledge and skills[156]. - The board has adopted a code of conduct for securities trading, ensuring compliance among all employees[159]. Employee Development and Talent Acquisition - The company hired 1,208 talented university graduates for its Leadership Development Program (LDP), aiming to cultivate future leaders in various fields[22]. - The company hired 600 new engineers from top 100 global universities and has employed a total of 5,292 LDP graduates since 2007, indicating a strong focus on talent acquisition[28]. - The total employee cost for the year was $1,584,000,000, an increase from $1,337,000,000 in 2019, with the number of employees rising to 48,028 from 33,177[132]. - The company achieved record recruitment numbers in its Leadership Development Program (LDP), indicating a strong pipeline of future leadership talent[189]. Shareholder Engagement and Communication - The company has adopted a shareholder communication policy to ensure effective communication with shareholders, which includes timely updates on financial reports and annual general meetings[181]. - The company emphasizes transparency and investor relations, allowing shareholders with at least 5% voting rights to request a special general meeting[182]. - The company has established a robust communication channel with shareholders to convey their opinions effectively to the board[155]. - The company encourages institutional shareholders and analysts to engage in regular meetings for direct communication with the board and management[181]. Risk Management - The company has established a comprehensive risk management system to identify and mitigate risks related to ESG regulations and requirements[132]. - The company emphasizes the importance of effective risk management and internal control systems to achieve long-term goals[179]. - The board continuously monitors and reviews key internal control policies, including risk management and financial reporting functions[179].