Stanley Black & Decker

Transcription

1 Stanley Black & Decker 2013 Investor Day Welcome & Agenda Kate Vanek Vice President of Investor & Government Relations

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 forwardlooking statements. Please refer to our most recent SEC filings, including our 2012 Annual Report on Form 10-K, subsequently filed Quarterly Report on Form 10-Q, as well as our other filings with the Securities and Exchange Commission, 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. This presentation also contains non-gaap financial information, including CFROI. CFROI is defined as cash flow from operations less capital and software expenditures* divided by year end capital (debt plus equity* less cash). CFROI is considered important as it is a cash based measure of value creation that ties our strategic focus to returns. Reconciliations of other non-gaap measures are provided in our quarterly press releases announcing financial results. We use this information in our internal analysis of results and believe that this information may be informative to investors. *Excluding M&A Charges/Payments 2013 Investor Day 2

3 Agenda 11:55 1:00PM PAST, PRESENT & FUTURE Kate Vanek, VP Of IR (1) John Lundgren, Chairman & CEO (1) Jim Loree, President & COO (2) Scott Bannell, VP Corporate Brand Management & Licensing (3) Marc Hohmann, Lippincott (3) Q&A 1:00 1:50PM EMERGING MARKETS: A MODEL FOR HYPER GROWTH Jaime Ramirez, SVP & President, Emerging Markets (4) Steve Stafstrom, VP Operations, CDIY & Emerging Markets (5) Q&A (Ben Sihota Pres. EMG, Jeff Chen VP & Pres. Asia-tools, Grethel Kunkel Pres., Latin America) 15 MINUTE BREAK 2:05 3:10 PM ACQUISITIVE GROWTH PLATFORMS Brett Bontrager, SVP & Group Executive, SSS (6) Massimo Grassi, President SSS Europe (7) Mike Tyll, President Engineered Fastening (8) Infrastructure (Video) & Healthcare (Video) Q&A (Jim Cannon Pres. Oil & Gas, Barb Popoli Pres. Infrastructure) 3:10 3:55 PM GLOBAL LEADERSHIP IN TOOLS: CDIY & IAR JoAnna Sohovich, President Industrial & Automotive Repair (9) John Wyatt, President CDIY Europe & ANZ (10) Jeff Ansell, SVP & Group Executive CDIY (11) 3:55 4:30 PM FINANCIALS & ROADMAP TO 2016/2017 Don Allan, SVP & Chief Financial Officer (Book #2) Q&A And Closing Remarks COCKTAILS & PRODUCT DEMOS 2013 Investor Day 3

4 Key Messages Organic Growth Initiative Continues To Gain Traction & We Remain On Track To Achieve Our Goals Of $850M In Revenue And $200M In Operating Profit By 2015 Stanley Black & Decker Possesses Tested And Proven Management Depth And Breadth Combined With A World-Class Approach To Successful, Profitable Growth In The Emerging Markets The Stanley Fulfillment System Has Been And Will Continue To Be A Competitive Advantage For The Company On Our Journey To 10 WCT By 2016/2017 Innovation And World Class Brands Are Core To The Company; Competitive Advantages Are Clear And Best In Class NPD As Well As Go-To-Market Strategy Drive Market Share Gains Capital Allocation Strategy Represents An Attractive Hybrid Value Proposition: A Growth Company That Returns A Large Percentage Of Cash To Shareholders Compelling 2016/2017 Vision Mission: Building World Class Branded Franchises With Sustainable Strategic Characteristics That Create Exceptional Shareholder Value 2013 Investor Day 4

5 Stanley Black & Decker 2013 Investor Day Stanley Black & Decker: Past, Present & Future John Lundgren Chairman & CEO

6 Today s Presenters JOHN LUNDGREN Chairman & CEO JIM LOREE President & COO SCOTT BANNELL VP Corporate Brand Management MARC HOHMANN Partner, Lippincott JAIME RAMIREZ SVP & President, Global Emerging Markets STEVE STAFSTROM VP, Operations, CDIY & Emerging Markets BRETT BONTRAGER SVP & GE, Stanley Security Americas & Asia MASSIMO GRASSI President, Stanley Security - Europe MIKE TYLL President, Engineered Fastening JOANNA SOHOVICH President, IAR JOHN WYATT President, CDIY - EANZ JEFF ANSELL SVP & GE, CDIY DON ALLAN SVP & CFO x Indicates Tenure With Stanley Black & Decker 2013 Investor Day 6

7 Final Chapter Of The Black & Decker Merger March 2013 Marked The Three Year Anniversary Of The Merger With Black & Decker Cost Synergy Overachievement By The End Of 2013 We Will Have Achieved $500M In Cost Synergies; Exceeding Original $350M Target By 43% 2012 CDIY OM Of $760M, Excluding M&A Charges, Exceeded Entire 2009 OM Of Legacy SWK & BDK Combined Revenue Synergy Projects Yielding Strong Results Already Surpassed $300M In Revenue Synergies Vs. Goal Of $300 - $400M By YE 13 Example: Stanley Hand Tools Up $25M In Latin America Since Merger Two Cultures Of World Class Innovation Combined New Products Since Merger $800M+ Of CDIY Organic Growth Stanley Fulfillment System Fully Embraced Working Capital Turns Of 7.5 In 2012, Up From 5.9 Pro Forma Pre-Merger Levels 2012 CDIY Working Capital Was 50% Of 2009 Pre-Merger Levels Which, By All Measures, Continues To Be A Resounding Success 2013 Investor Day 7

8 Last Look At The Black & Decker Merger: The Returns The Merger With Black & Decker Resulted In Extremely Strong Returns Realized Cost Synergies $135M $200M $115M 11.5% 12.2% Within 3-5 Year Objective Of 12-15% 8.4% $50M In Cost Synergies In 2013 Brings Total To $500M CFROI Driving Clear And Compelling Value For Shareholders Pro-Forma. Excludes M&A Charges & Payments 2013 Investor Day 8

9 Organic Revenue Initiatives Organic Growth Initiatives Are On Track Overview Initiatives 2-3 Points Of Incremental Revenue Growth By 2015 ($850M Incremental In Total) $200M Incremental Operating Profit By 2015, Or ~$1.00 EPS $100M Ongoing OpEx Investment, $50M One-Time CapEx Investment 6 Different Initiatives Spanning Most Every Business & Region Initiatives Are Largely The Result Of Key Acquisitions Completed In Last 3 Years: BDK, CribMaster, AeroScout, Tong Lung, CRC-Evans, Bajaj, Niscayah, GMT, Powers Process Program Run & Tracked Like An Acquisition Integration Bi-Weekly Steering Committee Meetings, Initiative Has Leader & Finance Support Internal Emerging Markets JV Structure For CDIY & IAR To Enable Achievement Of LT Growth Targets With Minimal Help From The Macro Environment 2013 Investor Day 9

10 Stanley Black & Decker Core Competencies Consistent Leverage Of Core Competencies Drives Shareholder Value Acquisition Integration Operational Excellence Profitable Growth World Class Brands Free Cash Flow Generation And Remain The Foundation For The Future 2013 Investor Day 10

11 Core Competency: Acquisition Integration Historical Acquisition OM% Accretion Post-SWK Integration 1,800 Bps 1,300 Bps 1100 Bps 800 Bps 700 Bps 300 Bps Best Access facom GdP BDK ADT France Niscayah (Fmr. ADT France) Proven SWK Integration Process Yields 1,000 Bps Margin Improvement On Average 2013 Investor Day 11

12 Core Competency: Operational Excellence The Stanley Fulfillment System Is A Competitive Advantage 2010 WCT 2011 WCT 2012 WCT Legacy SWK Total Co SWK Industrial Security SWK Industrial Security SWK Industrial Security That Continues To Yield In Market-Leading Results For Shareholders & Customers Industrial/Tools Peers Include Danaher, Eaton, Illinois Tool Works, Ingersoll Rand, Masco, Newell Rubbermaid, Snap-On, Sherwin Williams - Security Peers Include Assa Abloy, Checkpoint, Diebold, Honeywell, Siemens, Tyco, United Technologies 2013 Investor Day 12

13 Core Competency: Profitable Growth CDIY, Engineered Fastening & IAR Have Grown Their Top & Bottom Lines Due To New Product Innovation & Market Share Gains 70%+ Of SWK 3 Year CDIY Engineered Fastening IAR Avg. Organic Growth 5% 10%+ 6% OM% Improvement 570 Basis Points 1,000 Basis Points 550 Basis Points Now The Focus Is On Security 2013 Investor Day 13

14 Core Competency: Global Brand Power World Class Stable Of Brands 2013 Investor Day 14

15 Stock Price Performance vs. S&P 500 SWK Has Outperformed The Market Over The Long Term S&P 500 SWK Charted To 12/31/12 3 Year Price Performance 43.6% 27.9% 5 Year Price Performance 52.6% 10 Year Price Performance 113.9% -2.9% 62.1% Plus, Strong Dividend Growth Has Enhanced Total Return 2013 Investor Day 15