2016 WELLS FARGO INDUSTRIAL AND CONSTRUCTION CONFERENCE

Transcription

1 2016 WELLS FARGO INDUSTRIAL AND CONSTRUCTION CONFERENCE John Lundgren Chairman & CEO Tuesday, May 10, 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 Wells Fargo Industrial & Construction Conference 2

3 The Evolution Of Stanley Black & Decker 15 Year Transformation From A Small Cap Building Products Company To A Large Cap Diversified Industrial Revenue: 2000 $2B $11B+ 1Q 16 Highlights Organic Growth Of 5% Tools & Storage (+8%) Significant Outperformance In Emerging Markets (+9%) Market Cap: Employees: $2.7B 15K $16.4B 50K+ Operating Margin Of 13.1% Security & Industrial OM Rates Up 110 Bps & 120 Bps Respectively 1Q 16 Diluted EPS Of $1.28 (+20% VPY) Raised 2016 EPS Outlook To $ $6.40 From $ $6.20 Progress Continued In 1Q Wells Fargo Industrial & Construction Conference 3

4 Stanley Black & Decker Today Stanley Black & Decker (NYSE: SWK) 2015 Revenue: ~$11.2B Market Cap: $17.0B Cash Dividend Yield: 2.0% Dividend Paid Consecutively For 139 Years; Increased For Past 48 Consecutive Years Convergent Security Mechanical Access Industrial $2.0B Security $2.1B Tools & Storage $7.1B Europe 22% Emerging Markets 16% ROW 9% 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 4/22/2016 $ Wells Fargo Industrial & Construction 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 Wells Fargo Industrial & Construction Conference 5

6 Total Shareholder Return: During This Transformation, Long-Term Shareholders Have Been Significantly Rewarded 412% 205% Industrial Peers* 108% S & P 500 Dec-00 Dec-03 Dec-06 Dec-09 Dec-12 Dec-15 With A Total Return Of 412% Over The Last 15 Years *Industrial Peers: MMM, DHR, HON, DOV, GE, IR, EMR, ITW, UTX, TXT, SPXC Time Period: 12/31/ /31/ Wells Fargo Industrial & Construction Conference 6

7 Leveraging SFS 2.0 Operating System Breakthrough Innovation Commercial Excellence Digital Excellence Functional Transformation Core SFS Go Beyond Incremental Innovation Form Dedicated Breakthrough Teams Across Company Establish Breakthrough Innovation Culture Market Moving Growth Ideas >$100M Establish Continuous Process Improvements Across All Customer Facing Activities Boost Growth & Share Gain Through Tactical Execution Harness And Apply The Disruptive Power Of Digital Pervasively Rapidly Elevate The Company s Digital IQ Clean Sheet Zero Based Approach Completely Re-think & Re-tool Key Functions Fund Other SFS 2.0 Initiatives & Expand OM% Drive Cost Effectiveness Achieve 10+ WCT Fully Digitize Supply Chain Implement Smart Factory Across Company Bring Supply Chain Into Digital Age & Achieve Capital Efficient Organic Growth Drive Outsized Organic Growth Drive Asset & Cost Efficiency SFS 2.0 Will Enable Achievement Of Our Long-Term Financial Objectives On A More Sustained Basis 2016 Wells Fargo Industrial & Construction Conference 7

8 Why Invest In Stanley Black & Decker? Consistent & Proven Strategy That Has Produced Outperformance Over The Long-Term World Class Franchises #1 Or #2 In All Businesses Strong Brands Poised For Differentiated Growth Margin Improvement Opportunity Strong FCF Generation & Shareholder Friendly Capital Allocation Accelerating Organic Growth Through SFS 2.0 Resumption Of M&A Operating Leverage Functional Transformation Security Improvement Core SFS Strong & Growing Dividend ~50% FCF To Shareholders With Compelling Opportunities For Future Growth & Margin Expansion Fueled By SFS Wells Fargo Industrial & Construction Conference 8

9 Thank You