Fastenal Company · NASDAQ:FAST
Fastenal — Investor Day (March 2025)
107 slides from Fastenal's investor day presentation, Mar 13, 2025
Slide 1: Fastenal Investor Day
FASTENAL INVESTOR DAY
Slide 2: Agenda
AGENDA 8:30 AM -- 8:40 AM Holden Lewis Senior Executive VP & CFO 8:40 AM -- 9:00 AM Jeff Watts President & Chief Sales Officer 9:00 AM -- 9:25 AM Casey Miller Senior Executive VP, Sales 9:25 AM -- 9:50 AM Bill Drazkowski Executive VP, Sales 9:50 AM -- 10:15 AM Bill Reichenbacher VP, Sales 10:15 AM -
Slide 3: Safe Harbor Statement
Safe Harbor Statement 3 This presentation and the accompanying oral remarks contain statements that are not historical facts (e.g., future operating results, long-term share gains, and business activity, as well as expectations regarding operations, including gross and operating income margin, futur
Slide 4: Holden Lewis, Chief Financial Officer
Holden Lewis Chief Financial Officer
Slide 5: Jeff Watts, President & Chief Sales Officer
Jeff Watts President & Chief Sales Officer
Slide 6: International: Small but Mighty
6 International: Small but Mighty 0 200 400 600 800 1,000 1,200 1,400 International Market Growth All Non-U.S. Mexico All Non-U.S. Mexico 5-Yr CAGR 10.9% 14.1% 10-Yr CAGR 11.6% 17.2% 15-Yr CAGR 15.4% 24.0% Mills; US$
Slide 7: The Secret of Mexico's Success
7 The Secret of Mexico’s Success Share the Vision Which enables us to accomplish our goals Bring Visibility Through a shared pipeline Provide Accountability Set clear expectations of who leads what Share Responsibility One can’t be successful without the other Share the Sense of Ownership We’re all
Slide 8: The Secret of Our Success: Focused Alignment
8 The Secret of Our Success: Focused Alignment A L I GNMENT ACCOUNTAB I L I T Y EXECUTION Enhanced Productivity Improved Communication Ownership Ensure all Teams & Resources are Directed towards our Common Goal Clearly Defined Roles, Responsibilities and Expectations Action Necessary to Achieve our
Slide 9: Casey Miller, Senior EVP Sales
Casey Miller Senior EVP Sales
Slide 10: "Old" CSP Model Drove "Active Account" Growth
“Old” CSP Model Drove “Active Account” Growth “Retail Store” Feel Reactive – Business Runs You Dealing with One Crisis or Issue After Another No Time to Plan/Prepare for Growth Did Not Prioritize 10
Slide 11: "New" CFC Model Drives "Key Account" Growth
“New” CFC Model Drives “Key Account” Growth ‘Logistics Management’ Feel Streamline Branch Operations Creating Time to Plan/Prepare for Biggest/Best Opportunities Established Clear Priorities Eliminated Chaos 11
Slide 12: Updated Model, but Same Foundational Value
Updated Model, but Same Foundational Value 2013: U.S. Branches Peak at 2,408 Current: U.S. Branches are at 1,264 Still serve the core function of placing people and inventory close to our customers Within a 30-minute drive of 93.5% of U.S. industrial manufacturing base 12
Slide 13: Mindset is Critical … Enter Focus40
Mindset is Critical … Enter Focus40 The Goal? Free up time to overserve existing, and find more, supply chain partners. Critical KPIs: Market share gains – consistent double-digit sales growth Labor productivity – rising key ratio Asset efficiency – ‘Drive to 35’ The Four Pillars Aligned our Branch
Slide 14: Focus40 Timeline
Focus40 Timeline 2016 2017 2018 2019 2020 2021 2022 2023 2024 September: Phoenix Project October: Project Cali January: Focus40 Kickoff – Dallas Focus40 Phase 2 implemented company-wide June: 80/20 Kickoff – WI/IL March: 80/20 Kickoff - Houston Focus40 Phase 1 implemented company-wide 14
Slide 15: The Outcome of and Outlook for Focus40
The Outcome of and Outlook for Focus 40 15
Slide 16: District Success is Measured by …
District Success is Measured by … Sustained Double-Digit Sales Growth Pre-Tax Profit Growth At or Above Sales Growth Achieving and Sustaining a Threshold ROA Optimized Key Ratio 16
Slide 17: District Success Rests on Certain Non-Negotiables
District Success Rests on Certain Non-Negotiables Keep GMs on offensePrioritize winning $10K+ customers Foster successful CSC and ODS programs Deploy effective FMI and digital programs 17 CSC: Customer Solutions Consultant ODS: Onsite Development Specialist FMI: Fastenal Managed Inventory GM: Genera
Slide 18: Bill Drazkowski, EVP Sales
Bill Drazkowski EVP Sales
Slide 19: Contract Sales Vision
Contract Sales Vision ENSURE OUR CUSTOMER WILL BE DIFFERENT AS A RESULT OF DOING BUSINESS WITH FASTENAL Be a Growth Driver We exist to help the business grow faster with us than without us Embody the ‘Power of Fastenal People’ The best salesforce are the Blue Team members in the field Take an Expans
Slide 20: Contract Sales Mission
GROW SALES AND INCOME BY CREATING STRATEGIC PARTNERSHIPS WITH SINGLE & MULTI-LOCATION CUSTOMERS Position Fastenal as a global strategic supply chain partner Engage local leadership on the opportunity Propose and implement the best solution for each customer site Execute at all levels to ensure custo
Slide 21: Our Contract Portfolio
Our Contract Portfolio Government Program Government Sellers District Managers (DMs) General Managers (GMs) Cust. Sol’n Consultants (CSCs) $307M Shared Services Lean Solutions Industry Specialists Product SpecialistsOnsite Development Regional Program Regional VPs (RVPs) District Managers (DMs) Cust
Slide 22: Our 4Q23 Reset
Rebuild the Culture – Recreate our purpose Flatten the Structure Regionalize the Business Rebuild Internal Trust, Communication & Execution Re-Qualify our Prospects Our 4Q23 Reset 22
Slide 23: Prospect Requalification
Prospect Requalification Corporate HQ (multi-location) Prospects Corporate HQ Plant level Prospects Single Location Prospects Government Prospects New Commodity Prospects (Current customers) 23
Slide 24: Our Customer Sales Ecosystem
Our Customer Sales Ecosystem PlantPlant Plant Commodity Commodity CommodityCommodity HQ NA Sales Reps, Lean Team CSC (20k+) BSS GM, MM (5,10, 20K) Lean Team GM, MM Industry Specialists Account Specialists Onsite Development Lean Team Part Part Part Part Part Part Part Part Part Part Part Part Part P
Slide 25: End Result: Customer-Centric Alignment
End Result: Customer-Centric Alignment PRIORITIZING BUCKETS Key accounts benefiting from our solutions (5k, 10k, 20k, etc.) NATIONAL ACCOUNT PROGRAM Acquire and grow multi- location key accounts FULFILLMENT CENTERS ROLE SPECIALIZATION Execute key account business GROWING CSC PROGRAM Add plants/locat
Slide 26: End Result: Contract Growth
End Result: Contract Growth 26
Slide 27: Bill Reichenbacher, VP Sales
Bill Reichenbacher VP Sales
Slide 28: Key Account Selling's 'Source of Truth' Contract Vehicle
28 Key Account Selling’s ‘Source of Truth’ Contract Vehicle
Slide 29: Prospect Identification: Keeping the Pipeline Filled
29 Prospect Identification Keeping the Pipeline Filled
Slide 30: Prospecting "Fastenal types of customers"
30 Prospecting “Fastenal types of customers”
Slide 31: Sales Development Reps landed the meeting with Vandelay Industries
31 These are our SDR’s (Sales Development Rep) – they landed the meeting with Vandelay Industries
Slide 32: Winning with an Industry Leading Toolbox Sales Cycle
32 Winning with an Industry Leading Toolbox Sales Cycle
Slide 33: Sellers meet with Vandelay leadership
33 This is one of our Sellers – they will meet with Vandelay leadership to facilitate & negotiate the sales process
Slide 34: Goals vs. Reality: 2025 Priorities for Procurement
34 Goals vs. Reality Improve Spend Cost Reduction Ensure Supply Continuity Combat Inflationary Price Increases Act as a Strategic Advisor to the Business Transform the Operating Model 2 1 3 4 5 Source: Key Issues Study, The Hackett Group, 2024 2025 PRIORITIES FOR PROCUREMENT
Slide 35: Achieving Procurement KPIs
35 Achieving Procurement KPIs YOUR GOAL
Slide 36: Lean Consultants perform TCOAs at Vandelay's sites
36 These are our Lean Consultants – they perform TCOAs at each of Vandelay’s sites and present their findings
Slide 37: Total Cost of Ownership Analysis: Proving Our Value
37 Total Cost of Ownership Analysis: Proving Our Value
Slide 38: Converting Waste into Savings
38 Converting Waste into Savings 21.6%
Slide 39: Vandelay Industries (Actual) TCOA
39 Vandelay Industries (Actual) TCOA* * Aggregate Data from Four Sites
Slide 40: Bolting on to the Contract Vehicle
40 Bolting on to the Contract Vehicle Company Level: MRO/OEM eBusiness Data Analytics Business Terms Price Files Product Scope Local Level: FMI-T Onsites Site-Specific Pdts. Specialist Services Fulfillment Services Our eBusiness includes eProcurement activities, which are integrated transactions, in
Slide 41: A Consistent Model Across a Global Footprint
41 A Consistent Model Across a Global Footprint NORTH AMERICA Canada Mexico United States* SOUTH & CENTRAL AMERICA Brazil Chile Panama 25 Countries EUROPE United Kingdom Austria Belgium Czech Republic France Germany Hungary` Ireland Italy Netherlands Poland Romania Spain Sweden Switzerland ASIA Chin
Slide 42: Implementation specialists at each Vandelay site
42 Implementation – these are the specialists that get started at each Vandelay Industries Site
Slide 43: Vandelay Industries (Actual) Services Rendered
43 Vandelay Industries (Actual) Services Rendered *Fastenal Investment includes our asset and labor spend during implementation and excludes inventory investment. Fastenal Investment*: $1,450,000 $200,000 $525,000 $43,000 Solutions Implemented: Indiana: 93 POU coil/locker FASTVend devices; Onsite su
Slide 44: Account Management & Expansion
44 Account Management & Expansion Building Trust and Wallet Share
Slide 45: Business Sales Specialist manages Vandelay's contract
45 This is one of our BSS’s (Business Sales Specialist) – they manage Vandelay’s contract compliance and expands our footprint, site by site
Slide 46: Keeping Pace with Business Needs
46 Keeping Pace with Business Needs Strategic Business Reviews New Site Implementations Contract Compliance Price File Management Deployment of SME’s Reporting and Data Management Operational Excellence Product Category Expansion Contract Renewals Acquisitions and Divestitures
Slide 47: The Onsite Team
47 The Onsite Team – they execute the plan
Slide 48: The Blue Team – Winning Site-by-Site
48 The Blue Team – Winning Site-by-Site Our high-touch, high-tech model: a deep specialist pool & an industry-best toolbox
Slide 49: Q & A
Q & A
Slide 50: Jeff Hicks, Senior VP Solutions
Jeff Hicks Senior VP Solutions
Slide 51: Where Industry Meets Innovation
WHERE INDUSTRY MEETS INNOVATION...
Slide 52: FMIT Timeline: Accelerating Innovation
FMIT Timeline: Accelerating Innovation Operating Margin: Low-Teens % Operating Margin: Low/Mid-20% 52
Slide 53: In-Market Locations and Selling Personnel
3,600+ In-Market Locations 16,000+ Selling Personnel* 16 Solutions Service Centers Local Inventory Fulfillment Terminals16 175+ Solutions Specialists 24/7 Technical Support Weighted FMI Devices 115,000+Vending Configurations: Tested and Verified 200,000+ *Our selling personnel are attached to a spec
Slide 54: From Consumption Reduction to Data-Driven Decision Making
How is an employee interacting with products? What is inventory investment? How deep is my supply chain for an item? What are the behaviors of my assets? What is my inventory days on hand in this workspace and the current inventory state? What is the restock behaviors by stocking location? From Cons
Slide 55: Total Cost of Ownership & Planograms
Total Cost of Ownership & Planograms 55
Slide 56: Data-Driven Enterprises Transitioning Supply Chains
DATA-DRIVEN ENTERPRISES TRANSITIONING SUPPLY CHAINS TO WHERE INDUSTRY MEETS INNOVATION™ 56
Slide 57: Kevin Fitzgerald, VP Sales Operations
Kevin Fitzgerald VP Sales Operations
Slide 58: Data Analytics Strategy
Data Analytics Strategy Modernize Data Infrastructure Foster Good Data Governance & Security Develop Business-Led Analytics & Literacy Enable Self-Service Identify Critical Reporting, KPIs and Metrics 58 STRUCTURE DATA TO CREATE AN ENVIRONMENT OF SELF- SERVICE, ENHANCE DECISION- MAKING AND DRIVE INN
Slide 59: Data Analytics Goals
Data Analytics Goals Identify New Opportunities Enhance Decision Making Improve Customer Experience Foster Innovation Improve Productivity 59 STRUCTURE DATA TO CREATE AN ENVIRONMENT OF SELF- SERVICE, ENHANCE DECISION- MAKING AND DRIVE INNOVATION
Slide 60: Data Analytics Mission
Data Analytics Mission Identify New Opportunities Enhance Decision Making Improve Customer Experience Foster Innovation Improve Productivity 60 STRUCTURE DATA TO CREATE AN ENVIRONMENT OF SELF- SERVICE, ENHANCE DECISION- MAKING AND DRIVE INNOVATION
Slide 61: FAST360° Analytics
FAST360° Analytics 1-6 TT - gi. Ota as Home > My Account » FAST36O" Dashboard My Account Home | FAST360° Dashboard, » WH orders & Requests (44) FAST360° Dashboard - Your Collection of Site-Level Reporting Tools + Q vsersestnas » 483 Account Management » [reports Fu Technology My Business My teen My
Slide 62: My Vending Insights, Exclusive Brands Opportunity (2025)
My Vending Insights (2025) Exclusive Brands Opportunity (2025) 62 Coming Soon (2025)
Slide 63: My Vending Insights, Exclusive Brands Opportunity (2025)
My Vending Insights (2025) Exclusive Brands Opportunity (2025) Coming Soon (2025) 63
Slide 64: FAST360° Analytics - My Vending Insights
FAST360° Analytics - My Vending Insights Vending Transaction Summary Tra Totals . ° =< FASTENAL WHERE INDUSTRY MEETS INNOVATION.
Slide 65: Our Digital Front Door (FAST360º)
Our Digital Front Door (FAST360º) DIGITAL FRONT DOOR USER MGMT ECOMMERCE VENDING/ BINSTOCK REPORTING/ ANAYLICS FASTCRIB CUST. PROFILE MGMT 65
Slide 66: Donnalee Papenfuss, EVP Strategy & Communications
Donnalee Papenfuss EVP Strategy & Communications
Slide 67: My Fastenal Journey
My Fastenal Journey 67 1999 - 2006 Government Industry Specialist // 2006 - 2014 Director of Government & Diversity Affairs 2014 - 2024 Vice President of Contract Development & Support 2024 - Present Executive Vice President of Strategy and Communications
Slide 68: Strategic Planning
68 Strategic Planning ENHANCE OUR SERVICES EXPAND TOTAL ADDRESSABLE MARKETMORE EFFECTIVE SELLING Employee Engagement Platforms // Artificial Intelligence (A.I) // eCommerce FAST360˚ // Customer Engagement Platform // FASTCrib Objectives Accelerators
Slide 69: Employee Engagement Strategy
69 Employee Engagement Strategy Focus on purpose Encourage autonomy Develop expertise
Slide 70: Employee Engagement Platform Design Features
70 Employee Engagement Platform Design Features Company communications platform Social media like features Role-based resource curation with A.I. driven insights & recommendations Digital assistant features Access to tools & services Engagement features
Slide 71: Corporate Communications & Knowledge Management
71 Corporate Communications & Knowledge Management Volume & Velocity of Communication Demands Personalization & Role Curations of Resources
Slide 72: BLUE Chatbot
BLUE Chatbot @© Welcome To BLUE 7) © mannva ASK BLUE fy January 27, 17:08 Sales & Solutions Systems Fastenal offers a wide variety of vending machine styles, including coil machines, lockers and scaled devices, Please visit the link provided for additional information on each type of device offered.
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Slide 74: Q & A
Q & A
Slide 75: Lunch
We'll be back in 20 minutes Lunch
Slide 76: Jeff Hicks, Senior VP Solutions
Jeff Hicks Senior VP Solutions
Slide 77: Inventory Management, Supply Chain Services, Software
INVENTORY MANAGEMENT SUPPLY CHAIN SERVICES SOFTWARE 77
Slide 78: Current Expertise and Growth Opportunity
Inventory Management Reporting Sourcing & Procurement Preventative Maintenance Asset Management CURRENT EXPERTISE GROWTH OPPORTUNITY 78
Slide 79: Inventory Management
Custom Catalog Supplier Catalog // Customer Catalog Unit Conversions Min-Max Management Auto-Reorder // Pending Order Visibility Product Issuance Custom Data Capture // FIFO Management Inventory Management FIFO: First In, First Out79
Slide 80: Sourcing & Procurement
RFQ Multiple Suppliers Lead Time Quoting Price Quoting Requisitions Inventory Allocation Product Staging Ordering Pending Orders // Spot Buys Approvals Approval Hierarchy // Minimize Rogue Spending Punchout Catalog .com Website Access // eQuoting Processing Sourcing & Procurement 80
Slide 81: Asset Management
Tracking Check-In/Check-Out // Asset Visibility Usage Tracking Database Checklists & Forms // Warranties Categories // Certifications Tolerances Asset Management 81
Slide 82: Preventative Maintenance
Unplanned Work Order Approvals Reasons & Priority Request Parts Planned Time Based // Labor Tracking Downtime Tracking Parts Lists Preventative Maintenance 82
Slide 83: FMI Technology Maturity
FMI Technology Maturity Evolving from Vendor-Managed Inventory to Comprehensive Supply Chain Services Strategic AlignmentKey Points Data-Driven Decision Making FASTCrib Capabilities Expansion of Supply Chain Services Alignment with Core Competencies New Revenue Streams Customer Centric Focus Potenti
Slide 84: Christine Molling, VP Digital Solutions
Christine Molling VP Digital Solutions
Slide 85: Digital Solutions eBusiness Breakdown
Digital Solutions eBusiness Breakdown Contracts Local 17% 24% 76% eCommerce eProcurement CONTRACT CUSTOMERS National Accounts Regional Contracts Government 83% 85 NON-CONTRACT CUSTOMERS Small/Medium Customer
Slide 86: eBusiness Vision & Strategy
eBusiness Vision & Strategy VISION Position Fastenal as a comprehensive supply chain partner by delivering innovative digital platforms which serve industry supply chain needs and support strategic objectives. Text TextT Text WHY WHOWHAT HOW Strong Customer Relationships Continuous Innovation Meet C
Slide 87: Roadway To Improved Customer Experience
Roadway To Improved Customer Experience PRODUCT OFFERING Relevant Product Assortment, Industry Catalogs, Quality Data & Competitive Pricing ROBUST SEARCH A.I.-Assisted Search, Personalized Recommendations, Dynamic Filtering ACCURATE & TRANSPARENT FULFILLMENT Enhancing Delivery Operations with Compre
Slide 88: Defining Success
Defining Success Value to Customer Reducing Total Cost of Ownership Value to Shareholders Expanding Addressable Market Value to Fastenal Increasing Wallet Share & New Market Verticals 88
Slide 89: John Soderberg and Vic Miles
John Soderberg Senior EVP IT Vic Miles Microsoft Retail Industry Solutions
Slide 90: Navigating the Future: Generative AI in Supply Chains
+ Navigating the Future Generative AI in Supply Chains 90
Slide 91: Microsoft's AI Approach
Microsoft’s AI Approach Meaningful Innovation Empowering People Happiness Responsible A.I. 91
Slide 92: How Copilots Help
How Copilots help The role of technology From Autopilot To Copilot Tools Creative assistant Data input Data output Follows commands Provides recommendations, with human in the loop Uses specialized language Uses natural language 92
Slide 93: Natural language interface, Reasoning engine
Natural language interface Reasoning engine 93
Slide 94: Generative AI
Generative AI Content generation Automatically generate responses to customer inquiries Generate personalized website UIs or marketing images Summarization Summarize customer support conversation logs Summarize social media trends Code generation Convert natural language to data base query language
Slide 95: Agentic AI
Agentic AI Simple Advanced Retrieval Retrieve information from grounding data, reason, summarize, and answer user questions Task Take actions when asked, automate workflows, and replace repetitive tasks for users Autonomous Operate independently, dynamically plan, orchestrate other agents, learn and
Slide 96: Building on our Blue Team: AI Use Cases
Building on our 1 Leveraging FMI data capture to gain supply chain insights 2 Industrial supply copilot powered by the Blue Team 3 Product landscape: “What is it? What else it? Where is it?” 96
Slide 97: Leveraging FMI data to gain supply chain insights
Leveraging FMI data to gain supply chain insights1 AI USE CASE 97
Slide 98: Industrial supply copilot powered by the Blue Team
Industrial supply copilot powered by ‘the Blue Team’2 AI USE CASE 98
Slide 99: Product landscape AI use case
Product landscape: > What is it? > What else is it? > Where is it? 3 AI USE CASE 99
Slide 100: Click to edit Master title style
Click to edit Master title style 100
Slide 101: Q & A
Q & A
Slide 102: Dan Florness, Chief Executive Officer
Dan Florness Chief Executive Officer
Slide 103: Takeaways & Wrap-Up
Takeaways & Wrap-Up CONTINUE TO INVEST IN CULTURE, LOCAL SERVICE CAPABILITIES ON A GLOBAL SCALE, AND DATA-DRIVEN SOLUTIONS Better Customer-Facing Alignment around a Key Account Strategy Return to historic levels – or better – of share-related growth Accelerating FMI Innovation Provides a Unique Data
Slide 104: Customer Site Bucket Performance
<$5K (92% of Customer Sites) $5K - $10K (4% of Customer Sites) CUSTOMER SITE BUCKET PERFORMANCE $10K+ (5% of Customer Sites) $50K+ (1% of Customer Sites) (5%) 4% 14% 18% CAGR Since 2017 $991M (13% of Sales) $657M (9% of Sales) $5.9B (77% of Sales) $3.6B (48% of Sales) 2024 Sales $119K spend/mo. per
Slide 105: Customer Buckets: Sites Added and CAGR
2017 to 2022 (5-yr) 2012 to 2017 (5-yr) 2007 to 2012 (5-yr) 9.8%7.0%8.7%CAGR $518M$251M$214M$/year Customer sites added (removed) per year (net) 1,040 244 501 73 343 54 $10K+ $50K+ subset 547405309$5K to $10K 1,587906652$5K subtotal -52,091-5,64529,018<$5K -50,504-4,73929,670Total 20242023 2.8%5.3%
Slide 106: Q & A
Q & A
Slide 107: Thank You
THANK YOU