On this page of StockholderLetter.com we present the latest annual shareholder letter from Gates Industrial Corp plc — ticker symbol GTES. Reading current and past GTES letters to shareholders can bring important insights into the investment thesis.
ANNUAL REPORT 2023
MISSION CRITICAL SOLUTIONS SUPPORT GROWING END MARKETS DIVERSIFIED END MARKETS SUPPORTED BY MACRO THEMES CREATING GROWTH OPPORTUNITIES ENABLED BY GATES PRODUCTS DIVERSIFIED INDUSTRIAL HIGHLY ENGINEERED AUTOMATION AUTOMOTIVE, ON-HIGHWAY, PERSONAL MOBILITY TRANSPORTATION NATURAL REPLACEMENT CYCLES AGRICULTURE, CONSTRUCTION, & ENERGY INFRASTRUCTURE MISSION CRITICAL
GATES IS THERE GATES PRODUCT SUITE GATES TARGET MARKETS & APPLICATIONS AUTOMATION DIVERSIFIED INDUSTRIAL High Torque Applications High Positional Accuracy High Temp & Food Safe Stationary Hydraulic and Industrial Hose & Couplings General Manufacturing Warehousing / Logistics Food & Beverage TRANSPORTATION PERSONAL MOBILITY Synchronous Belts CVT Belts Crankset Systems Front & Rear Sprockets Bicycles Scooters, Motorcycles and Power Sports TRANSPORTATION AUTOMOTIVE REPLACEMENT MICRO-V BELT Timing Belt Thermal Management Replacement Kits Mature Markets Emerging Markets Heavy Duty INFRASTRUCTURE OFF-HIGHWAY AND ENERGY & RESOURCES Hydraulic Hose & Couplings Frack Hose Industrial Belts Coolant Hose New Construction / Retrofit Energy / Mining Thermal Management GATES 2023 ANNUAL REPORT
2023 AT A GLANCE GEOGRAPHIES 27% Europe, Middle East & Africa 10% Greater China 49% North America 10% $3.6B REVENUE 4% 0.7% CORE GROWTH SEGMENTS East Asia & India South America $747M ADJ. EBITDA 20.9% MARGIN $2.2B $1.4B Power Transmission Fluid Power $410M CHANNELS FREE CASH FLOW 109.6% CONVERSION $1.36 36% First-Fit (OEM) ADJ. EPS 19% GROWTH 64% Replacement 23.0% ROIC 300 BPS GROWTH This Annual Report includes certain non-GAAP financial measures, which management believes are useful to investors. Non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with GAAP. For additional information, please see the section Non-GAAP Measures in Item 7 of this report as well as the supplemental reconciliations at the end of this document.
END MARKETS SUPPORTED BY SECULAR TAILWINDS. 6% Energy & Resources 19% 20% Industrial Off-Highway Diversified Industrial 4% Personal Mobility 9% Industrial On-Highway 9% Automotive First-Fit Numerous secular trends support demand for our products across end markets. Propulsion technologies in personal mobility and automotive applications are being electrified. The global car parc continues to grow and age. Global infrastructure is broadly outdated and demand for traditional and renewable energy capabilities is rising. A focus on efficiency and sustainability is 33% Automotive Replacement driving increasing levels of automation in factories and warehouses along with an increase in freight transportation. This demand is supplemented by our innovations in materials science to convert industrial chain to belts. Gates products play missioncritical roles in all of these trends, enabling reliable, efficient and safe operation across a wide range of applications. GATES 2023 ANNUAL REPORT
 • shareholder letter icon 4/26/2024 Letter Continued (Full PDF)
 • stockholder letter icon 4/26/2023 GTES Stockholder Letter
 • stockholder letter icon More "Industrial Machinery & Equipment" Category Stockholder Letters
 • Benford's Law Stocks icon GTES Benford's Law Stock Score = 84


GTES Shareholder/Stockholder Letter Transcript:

ANNUAL REPORT
2023

MISSION CRITICAL SOLUTIONS
SUPPORT GROWING END MARKETS
DIVERSIFIED
END MARKETS
SUPPORTED BY MACRO
THEMES CREATING GROWTH
OPPORTUNITIES
ENABLED BY GATES
PRODUCTS
DIVERSIFIED
INDUSTRIAL
HIGHLY
ENGINEERED
AUTOMATION
AUTOMOTIVE, ON-HIGHWAY,
PERSONAL MOBILITY
TRANSPORTATION
NATURAL
REPLACEMENT
CYCLES
AGRICULTURE,
CONSTRUCTION, & ENERGY
INFRASTRUCTURE
MISSION
CRITICAL

GATES IS THERE
GATES PRODUCT SUITE
GATES TARGET MARKETS & APPLICATIONS
AUTOMATION     DIVERSIFIED INDUSTRIAL
High Torque Applications
High Positional Accuracy
High Temp & Food Safe
Stationary Hydraulic and
Industrial Hose & Couplings
General
Manufacturing
Warehousing
/ Logistics
Food &
Beverage
TRANSPORTATION     PERSONAL MOBILITY
Synchronous Belts
CVT Belts
Crankset Systems
Front & Rear Sprockets
Bicycles
Scooters, Motorcycles
and Power Sports
TRANSPORTATION     AUTOMOTIVE REPLACEMENT
MICRO-V   BELT
Timing Belt
Thermal Management
Replacement Kits
Mature
Markets
Emerging
Markets
Heavy
Duty
INFRASTRUCTURE     OFF-HIGHWAY AND ENERGY & RESOURCES
Hydraulic Hose & Couplings
Frack Hose
Industrial Belts
Coolant Hose
New Construction /
Retrofit
Energy / Mining
Thermal Management
GATES 2023 ANNUAL REPORT

2023
AT A GLANCE
GEOGRAPHIES
27%
Europe,
Middle East &
Africa
10%
Greater China
49%
North America
10%
$3.6B
REVENUE
4%
0.7% CORE GROWTH
SEGMENTS
East Asia
& India
South America
$747M
ADJ. EBITDA
20.9% MARGIN
$2.2B
$1.4B
Power
Transmission
Fluid Power
$410M
CHANNELS
FREE CASH FLOW
109.6% CONVERSION
$1.36
36%
First-Fit (OEM)
ADJ. EPS
19% GROWTH
64%
Replacement
23.0%
ROIC
300 BPS GROWTH
This Annual Report includes certain non-GAAP financial measures, which
management believes are useful to investors. Non-GAAP financial
measures should be considered only as supplemental to, and not as
superior to, financial measures prepared in accordance with GAAP.
For additional information, please see the section Non-GAAP Measures
in Item 7 of this report as well as the supplemental reconciliations at the
end of this document.

END MARKETS SUPPORTED
BY SECULAR TAILWINDS.
6%
Energy &
Resources
19%
20%
Industrial
Off-Highway
Diversified
Industrial
4%
Personal
Mobility
9%
Industrial
On-Highway
9%
Automotive
First-Fit
Numerous secular trends support demand
for our products across end markets.
Propulsion technologies in personal mobility
and automotive applications are being
electrified. The global car parc continues to
grow and age. Global infrastructure is broadly
outdated and demand for traditional and
renewable energy capabilities is rising.
A focus on efficiency and sustainability is
33%
Automotive
Replacement
driving increasing levels of automation in
factories and warehouses along with an
increase in freight transportation. This
demand is supplemented by our innovations
in materials science to convert industrial
chain to belts. Gates products play missioncritical roles in all of these trends, enabling
reliable, efficient and safe operation across
a wide range of applications.
GATES 2023 ANNUAL REPORT



shareholder letter icon 4/26/2024 Letter Continued (Full PDF)
 

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