Stanley Black & Decker, Inc. · NYSE:SWK
Stanley Black & Decker — Q2 2020 Earnings Presentation
17 slides from Stanley Black & Decker's earnings presentation, Jul 30, 2020
Slide 1: Second Quarter 2020 Overview
Second Quarter 2020 Overview July 30, 2020
Slide 2: Participants
Participants Jim Loree President & CEO Don Allan Executive VP & CFO Dennis Lange VP, Investor Relations 2Q’20 OVERVIEW 2
Slide 3: Cautionary Statements
Cautionary Statements Certain Statements Contained In This Presentation Are Forward Looking. These Are Based On Assumptions Of Future Events Which May Not Prove To Be Accurate. They Involve Risk And Uncertainty. Actual Results May Differ Materially From Those Expected Or Implied. We Direct You To Th
Slide 4: Stanley Black & Decker
StanleyBlack&Decker
Slide 5: Navigating The COVID-19 Pandemic
Navigating The COVID-19 Pandemic Aligning The Organization Around Key Priorities… #1 #2 #3 #4 ENSURE THE HEALTH MAINTAIN BUSINESS SERVING OUR DOING OUR PART TO AND SAFETY OF OUR CONTINUITY AND CUSTOMERS AS THEY HELP MITIGATE THE EMPLOYEES & FINANCIAL STRENGTH PROVIDE ESSENTIAL IMPACT OF THE VIRUS SU
Slide 6: 2Q'20 Segment Overview
2Q’20 Segment Overview Tools & Storage Industrial Security $2,626 $650 $54 $448 $106 $485 $42 $518 $433 $2,197 $373 $46 (23%) (17%) (57%) (16%) 17.0% 17.0% (20%) (11%) 11.2% 16.4% 8.8% 9.6% 2Q '19 2Q '20 2Q '19 2Q '20 2Q '19 2Q '20 2Q' 19 2Q '20 2Q '19 2Q '20 2Q '19 2Q '20 Revenue Profit* Revenue Pr
Slide 7: Free Cash Flow & Liquidity
Free Cash Flow & Liquidity 2020 YTD Free Cash Flow Liquidity Key Points YTD • Maintain Strong, Investment Grade Credit Ratings 2Q'19 2Q'20 V$ • $3B Revolving Credit Facilities Backed By A Well Capitalized, Diversified Bank Group Net Income $ 528 $ 372 $ (156) • No Term Debt Maturities Until 4Q 2021
Slide 8: 2H Scenario Planning
2H Scenario Planning 2H Planning Assumption Range For Organic Growth Recent Key Trends Organic Growth Organic Growth Trend • U.S. T&S Retail → POS Growth Currently At 2H’20 Range June + July MTD1 VPY ~35% Versus Prior Year For Last 4 Weeks Tools & NA: EU: • European T&S → Organic Growth ↑ High- -3%
Slide 9: Cost Reduction Program
Cost Reduction Program Cost Actions 2Q Update ~$1B Total Savings | ~$500M 2020 Cost Action Sustainability • Organization Working To Improve The Sustainability Of Cost Program Heading Into 2021 Indirect Cost Deflation • Converting A Majority Of Temporary Compensation Prof Services, MRO, IT, Fin. Good
Slide 10: Summary – FY 2020 Financials
Summary – FY 2020 Financials • Revenues: Given The Uncertainties In The Global Economic Outlook, Multiple Scenarios Contemplated Organic Growth Planning Range: 2H (-7.5% To Flat) | FY (-10% To -5%) • Cost Structure Considerations: $180M In Cost Savings (Announced Oct’19) & $500M (Announced Apr’20).
Slide 11: Summary – Strong 2Q Performance
Summary – Strong 2Q Performance New Market Trends Are Emerging… Reconnecting With eCommerce Health & Safety The Home & Garden Security Re-Imagined Global eCommerce Core & Breakthrough Innovation …Positioned To Benefit From Improved Demand & Capitalize On Growth Opportunities 2Q’20 OVERVIEW 11
Slide 12: Q&A Thank You
StanleyBlack&Decker Q&A THANK YOU
Slide 13: Appendix
StanleyBlack&Decker APPENDIX
Slide 14: Global Presence
Global Presence Canada 2Q’20 YTD Organic (13%) (5%) % SWK 4% 5% Europe 2Q’20 YTD Organic (23%) (15%) Japan 2Q’20 YTD US 2Q’20 YTD % SWK 18% 20% Organic (14%) (11%) Organic (12%) (10%) % SWK 3% 3% % SWK 64% 61% Emg Mkt 2Q’20 YTD Australia 2Q’20 YTD Organic (27%) (21%) Organic (11%) (7%) % SWK 10% 10%
Slide 15: 2Q 2020 Regional Revenue Breakout
2Q 2020 Regional Revenue Breakout Tools & Storage Industrial Security $2,197M $518M $433M Emerging Other Markets Emerging Emerging 4% Other Markets Europe 15% Markets 8% 2% 15% 10% N.America 59% Europe 15% N.America Europe 71% 39% N.America 62% 2Q’20 OVERVIEW 15
Slide 16: Organic sales growth is defined as total sales growth
Organic sales growth is defined as total sales growth less the sales of companies acquired and divested in the past twelve months and any foreign currency impacts. Operating margin is defined as sales less cost of sales and selling, general and administrative expenses. Management uses operating marg
Slide 17: Stanley Black & Decker
StanleyBlack&Decker
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