Stanley Black & Decker, Inc. · NYSE:SWK
Stanley Black & Decker — ESG Presentation (May 2022)
32 slides from Stanley Black & Decker's sustainability presentation, May 2022
Slide 1: Investor Presentation: Strategy & ESG
Investor Presentation: Strategy & ESG May 2022
Slide 2: Cautionary Statements
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 s
Slide 3: Company Overview & Strategy
StanleyBlack&Decker Company Overview & Strategy
Slide 4: A Global Leader With World Class Franchises
A Global Leader With World Class Franchises STANLEY BLACK & DECKER (NYSE: SWK) 2021 Revenue: $15.6B Market Cap: $18.5B Cash Dividend Yield: 2.6% Dividend Paid Consecutively For 146 Years; Increased For Past 54 Consecutive Years Tools & Outdoor Industrial 2021 Revenue: $12.8B 2021 Revenue: $2.5B Outd
Slide 5: Strategic & Financial Objectives
Strategic & Financial Objectives Strategic Framework Our Long-Term Financial Goals Continue Organic Growth Momentum Revenue • ~4-6% Organic • Utilize SBD Operating Model As A Catalyst Growth • ~10-12% Total • Mix Into Higher Growth, Higher Margin Businesses • Increase SBD Weighting Of Emerging Marke
Slide 6: Global Franchises – Long-Term Value Drivers
Global Franchises – Long-Term Value Drivers A Company That Has Built Well Established, Global Franchises… Business Value Drivers • Brands • Innovation & Outdoor Electrification The Tool & In Tools & • Global Scale #1 Outdoor » Power & Hand Tools Outdoor Company To Own » Construction, DIY, Auto Repai
Slide 7: Stanley Black & Decker Value Creation Model
Stanley Black & Decker Value Creation Model Strong, Innovation-Driven Businesses World Class Brands In Diverse, Global Markets Attractive Growth Platforms Powered By: Scalable, Defensible Franchises Long-Term Financial Objectives • 4-6% Organic Growth Differentiable Through Innovation • 10-12% Total
Slide 8: SBD Operating Model
SBD Operating Model Investor Presentation: Strategy & ESG 8
Slide 9: Our Approach To ESG
StanleyBlack&Decker Our Approach To ESG
Slide 10: Powered By Purpose: For Those Who Make The World
Powered By Purpose: For Those Who Make The WorldTM World Class Businesses With A Track Record Of Performance The World’s Leading Tool Company Highly Engineered, Application Based Solutions TO BE A FORCE FOR GOOD Continue Delivering Top-Quartile Be Recognized As One Of The Elevate Our Commitment To L
Slide 11: Our Approach To ESG
Our Approach To ESG Grounded By Stakeholder Capitalism Ro o t e d I n O u r P u r p o s e - F o r T h o s e W h o M a ke T h e Wo r l d ™ ALIGNED TO WORLD ECONOMIC FORUM FRAMEWORK ENVIRONMENT SOCIAL GOVERNANCE Planet People Prosperity Governance Protecting The Planet Furthering Fostering Purpose & P
Slide 12: Leading The Charge
Leading The Charge ESG FOCUS AREAS Climate Change DEI & Talent Development Governance Go Beyond Carbon Neutral By 2030 Racial Equity 10 Point Plan Diverse & Inclusive Board Zero Waste to Landfill Gender Parity Shareholder Rights Sustainable Water Use Skillset Development Risk Management & Oversight
Slide 13: 2030 ESG Strategy – Public Commitments
2030 ESG Strategy – Public Commitments Environment Social PLANET: CREATE A MORE SUSTAINABLE WORLD PRODUCTS: INNOVATE WITH PURPOSE PEOPLE: EMPOWER MAKERS & CHAMPION DEI Empower Makers Carbon Neutral and Beyond Innovate with Purpose By 2030, SBD will empower 10 million By 2030, as part of our science-
Slide 14: Our 2030 Strategy
Our 2030 Strategy Our 2030 Strategy/Overall Objectives* Sustainability Performance* Link: 2021 Online ESG Report We Remain Focused On Our 2030 Goals Elevating & Executing On Our Commitment To Corporate Social Responsibility *Results Include The Convergent Security Solutions (“CSS”) Business, Access
Slide 15: Action Plan – Create A More Sustainable World
Action Plan – Create A More Sustainable World Actions To 2030 Goal Go Beyond Carbon Neutral Operations Positively impact the environment By 2030, We Aim To Reduce Our Operational (Scope 1 & 2) Carbon Emissions through our operations To Zero And Eliminate Additional Emissions Through Means Of Carbon
Slide 16: Action Plan – Innovate With Purpose
Action Plan – Innovate With Purpose Actions To 2030 Goal Innovate our products to enhance the lives of 500 Addressing Unmet Societal Needs million people and improve environmental impacts Deliver “Innovation With Purpose” Projects That Enhance The Lives Of 500 Million People. Embrace Circular Design
Slide 17: Action Plan – Empower Makers
Action Plan – Empower Makers Actions To 2030 Goal Employee Career Mobility Enable 10 million creators and makers to thrive in a changing world Prepare Employees For Career Mobility Relevant For Industry 4.0 By Supporting Their Upskilling & Repurposing. STEAM Education Enable People To Access STEAM E
Slide 18: Attracting World Class Talent
Attracting World Class Talent Launched A Number Of Initiatives To Create A More Contemporary Workplace & Infuse Talent… Lifelong Learning (Skills) Leadership Industry 4.0 Skilling/ Development Reskilling Efforts Employment Branding Recruiting & Onboarding University & Tech School Partnerships Divers
Slide 19: Diversity, Equity & Inclusion
Diversity, Equity & Inclusion Building A Purpose-Driven Culture Where Inclusivity Is A Reflex, Not An Initiative Employee Resource Groups R.I.S.E. : Reach | Inspire | Support | Engage & Diversity Councils A Unified Commitment To Equity & Opportunity A Cornerstone Of Our Culture: Gender & Racial Equi
Slide 20: Building A Culture To Be Proud Of
Building A Culture To Be Proud Of 2021 2022 5th Year on 2022 11TH 4TH 9 YEARS BEST BEST PLACES WORLD’S MOST AMERICA'S CONSECUTIVE CONSECUTIVE on CDP Climate WORKPLACE FOR LGBTQ ADMIRED MOST YEAR YEAR Change A List & FOR EQUALITY COMPANIES RESPONSIBLE Dow Jones Dow Jones 6 YEARS INNOVATORS Corporate
Slide 21: Governance
StanleyBlack&Decker Governance
Slide 22: ESG & Disclosure Enhancements
ESG & Disclosure Enhancements • Amended Our Governance Documents To Allow Shareholders To Act By Written Consent • Eliminated All Express Or Default Supermajority Vote Provisions Applicable To The Company Under The Connecticut Business Corporation Act • Adopted A Majority Voting Standard For An Unco
Slide 23: Governance Policies Aligned With Shareholders
Governance Policies Aligned With Shareholders ✓ Robust Stock Ownership Guidelines For Directors And Executive Officers ✓ Policy Against Hedging And Pledging Applicable To All Directors And Executive Officers ✓ Recoupment Policy Relating To Unearned Equity & Cash Incentive Compensation ✓ Proactive Lo
Slide 24: Board Independence
Board Independence ✓ Independent Chair Or Independent Lead Director Since 2000 Board Diversity Gender And Racial/Ethnic ✓ Board Adopted Director Independence Standards Diversity*(a) » Standardized, Specific Criteria For Determining Independence 36% Are Women, Including A Veteran (9%) And A ✓ Superma
Slide 25: Corporate Governance
Corporate Governance Board Composition And Governance Features Board Refreshment And Tenure ✓ Independent Chairperson Average Tenure Of 7 Years ✓ 4 New Non-Management Directors In The Last 3 Years ✓ Balance Of Institutional Knowledge And Fresh Perspective <= 3 years 4 ✓ Key Governance Features: 7 >
Slide 26: Independent, Experienced & Diverse Board Of Directors
Independent, Experienced & Diverse Board Of Directors Andrea J. Ayers James M. Loree Patrick D. Campbell Chair President & CEO Former SVP & CFO Stanley Black & Decker Stanley Black & Decker 3M Former President & CEO Convergys ✓ Integral Knowledge Of The Daily Workings Of ✓ Expertise In Finance, M&A
Slide 27: Independent, Experienced & Diverse Board Of Directors
Independent, Experienced & Diverse Board Of Directors Michael D. Hankin Adrian V. Mitchell Jane M. Palmieri President & CEO EVP & CFO President, Industrial Intermediates & Brown Advisory Macy’s, Inc. Infrastructure ✓ Expertise In Financial & Investment Planning, ✓ Leads All Of Macy's Finance Functio
Slide 28: Committee Structure
Committee Structure Audit Corporate Committee Governance Campbell (C) Hankin Mitchell Poul Tan Committee Cardoso (C) Coutts Mitchell Palmieri Poul Tan Compensation & Finance & Talent Development Pension Committee Crew (C) Ayers Campbell Coutts Committee Hankin (C) Ayers Crew Palmieri Executive Commi
Slide 29: Management Compensation Aligned With Performance
Management Compensation Aligned With Performance The Right Compensation Structure For Our Long-Term Strategy Pay For Performance Align Pay With Shareholder Interests Manage Risk • Pay Is Strongly Aligned With Financial Performance • Alignment Through Stock-Based Compensation, Stock • Compensation Co
Slide 30: Well Positioned To Generate Long-Term Shareholder Value
Well Positioned To Generate Long-Term Shareholder Value Demand Remains Robust & Our Multi-Year Runway For Growth & Margin Expansion Is Compelling... Strong Record Of Performance Growth + Margin Expansion Driven By Our Vision & Purpose Diluted Adjusted EPS* To Be A Force For Good I N N O VAT I O N +6
Slide 31: Appendix
StanleyBlack&Decker APPENDIX
Slide 32: Reconciliation Of GAAP To Non-GAAP Measures
Reconciliation Of GAAP To Non-GAAP Measures GAAP Acquisition-Related Non-GAAP Diluted EPS Charges & Other* Diluted EPS** FY19 $6.10 $1.49 $7.59 FY20 $7.16 $0.88 $8.04 FY21 $9.62 $0.86 $10.48 * Please refer to the Company’s 2021 Annual Report available at https://www.stanleyblackanddecker.com/investo