4 th ANNUAL MORGAN STANLEY LAGUNA CONFERENCE

Transcription

1 4 th ANNUAL MORGAN STANLEY LAGUNA CONFERENCE Don Allan Vice President & CFO Thursday, September 15, 2016

2 Cautionary Statements This presentation contains forward-looking statements, that is, statements that address future, not past events. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as: expect, anticipate, intend, plan, believe, seek, or will. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. These statements are based on assumptions of future events that may not prove accurate. They are also based on our current plans and strategy and such plans and strategy could change in the future. Actual results may differ materially from those projected or implied in any forward-looking statements. Please refer to our most recent SEC filings, including our 2015 Annual Report on Form 10-K, subsequently filed Quarterly reports on Form 10-Q, as well as our other filings with the SEC, for detailed information regarding factors that could cause or contribute to actual results differing materially from those expressed or implied in such forward-looking statements. We do not undertake to update our forward-looking statements. 4 th Annual Morgan Stanley Laguna Conference 2

3 The Evolution Of Stanley Black & Decker Transformed From A Small Cap Building Products Company To A Large Cap Diversified Industrial Over 15 Years Revenue: 2000 $2B $11B+ 1H 2016 Highlights Organic Growth Of 4% Top Decile For Industrial Peers Market Cap: Employees: $2.7B 15K $16.4B 50K+ Operating Margin Expands 60 Bps VPY To 14.5% 1H 2016 Diluted EPS Of $3.12 (+20% VPY) 1H 2016 Average Working Capital Turns +0.8 VPY Targeting ~9.5 Turns For The Year Generated TSR Of 400%+ Over Same Period: 2X Peers & 4X S&P Returns 4 th Annual Morgan Stanley Laguna Conference 3

4 Stanley Black & Decker Today Stanley Black & Decker (NYSE: SWK) 2015 Revenue: ~$11.2B Market Cap: $18.3B Cash Dividend Yield: 1.8% Dividend Paid Consecutively For 140 Years; Increased For Past 49 Consecutive Years Convergent Security Mechanical Access Security $2.1B Emerging Markets 16% ROW 9% Industrial $2.0B Tools & Storage $7.1B Europe 22% US 53% STANLEY Engineered Fastening Infrastructure Power Tools & Accessories Hand Tools & Storage Transformation To A Diversified Global Industrial Has Left Us Poised To Accelerate Growth, Margin Expansion & Value Creation Going Forward Market Cap & Dividend Yield Are As Of Market Close 8/29/2016 $ th Annual Morgan Stanley Laguna Conference 4

5 Global Franchises Long Term Value Drivers A Company That Has Built Well Established, Global Franchises Business Value Drivers #1 In Tools & Storage Brands Innovation Global Scale» Power & Hand Tools» Construction, DIY, Auto Repair & Industrial» Developed & Developing Market Presence The Tool Company To Own #2 In Engineered Fastening Highly Engineered, Value Added Innovative Solutions Recurring Revenue Model Global Scale High Profitability; GDP+ Growth #2 In Commercial Electronic Security Services High Value Added Vertical Market Solutions Recurring Revenue Model CapEx Light Vs. Resi Model Global Footprint Potential Large Margin Accretion Opportunity Longer Term With Asset Efficiency And Customer Level Execution Aided By SFS th Annual Morgan Stanley Laguna Conference 5

6 Stanley Black & Decker Value Creation Model World Class Brands Strong, Innovation-Driven Businesses In Diverse, Global Markets Attractive Growth Platforms Scalable, Defensible Franchises Differentiable Through Innovation Powered By: Outsized, Capital-Efficient Organic Growth Attractive, Expandable OM Rate Outstanding FCF conversion Long Term Financial Objectives 4%-6% Organic Growth 10%-12% Total Revenue Growth 10%-12% EPS Growth* FCF Net Income 10+ Working Capital Turns Investor-friendly Capital Allocation ~1/2 M&A ~1/2 Return Cash To Shareholders World Class Branded Franchises With Sustainable Strategic Characteristics That Create Exceptional Shareholder Value *Including Acquisitions 4 th Annual Morgan Stanley Laguna Conference 6

7 Leveraging SFS 2.0 Operating System Breakthrough Innovation Go Beyond Incremental Innovation Form Dedicated Breakthrough Teams Across Company Establish Breakthrough Innovation Culture Market Moving Growth Ideas >$100M Digital Excellence Harness And Apply The Disruptive Power Of Digital Pervasively Functional Transformation Clean Sheet Zero Based Approach Completely Re-think & Re-tool Key Functions Fund Other SFS 2.0 Initiatives & Expand OM% Drive Cost Effectiveness Commercial Excellence Establish Continuous Process Improvements Across All Customer Facing Activities Boost Growth & Share Gain Through Tactical Execution Drive Outsized Organic Growth Rapidly Elevate The Company s Digital IQ Core SFS Achieve 10+ WCT Fully Digitize Supply Chain Implement Smart Factory Across Company Bring Supply Chain Into Digital Age & Achieve Capital Efficient Organic Growth Drive Asset & Cost Efficiency 4 th Annual Morgan Stanley Laguna Conference 7

8 Breakthrough Innovation Update In June We Introduced The World To The DEWALT FLEXVOLT Battery System Power Of Corded. Freedom Of Cordless. World s First Convertible Battery Pack That Changes Voltages When You Change Tools Operates On The Same System As Our Existing Cordless Tools 1-Battery System For 20V 60V 120V Of Power Delivers Uncompromised Performance To Traditionally Corded Tools On The Jobsite Now With The Flexibility Of Cordless The First Example Of Breakthrough Innovation Agile Teams Throughout The Company Developing Industry Disrupting Innovations Providing $100M+ Revenue Opportunities DEWALT FLEXVOLT Launch Strengthened By SFS2.0 Commercial Excellence and Digital Excellence 1 st Product Shipment: August 22 nd 1 st POS: August 25 th A Revolutionary Product Which Will Reshape The Tool Industry 4 th Annual Morgan Stanley Laguna Conference 8

9 New CEO What s Ahead? Consistent & Proven Strategy That Has Produced Outperformance Over The Long-Term New CEO 17 Year Tenure At The Company 10 Years As CFO 7 Years As COO Firmly Committed To Existing Strategy & Value Creation Model 7 Year Go Forward Vision: Double Revenues To $20B+ Build Upon World Class Franchises Deliver Top Quartile TSR With Compelling Opportunities For Future Growth & Margin Expansion Fueled By SFS th Annual Morgan Stanley Laguna Conference 9

10 Thank You 4 th Annual Morgan Stanley Laguna Conference