Stanley Black & Decker, Inc. · NYSE:SWK
Stanley Black & Decker — Q1 2022 Earnings Presentation
18 slides from Stanley Black & Decker's earnings presentation, Apr 28, 2022
Slide 1: First Quarter 2022 Overview
First Quarter 2022 Overview April 28, 2022
Slide 2: Participants
Participants Jim Loree CEO Don Allan President & CFO Dennis Lange VP, Investor Relations *Non-GAAP Financial Measures. See Appendix For Reconciliation of GAAP To Non-GAAP Measures Used in This Presentation. 1Q’22 OVERVIEW | 2
Slide 3: Cautionary Statement
Cautionary Statement 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 The
Slide 4: 1Q 2022 Key Messages
1Q 2022 Key Messages 1Q Revenue +20% And Higher Sequential Margins Driven By Strategic Transactions And Operational Execution Key Financials • Capitalized On A Sustained Strong Demand Environment, Strategic Outdoor Acquisitions & 5% Price Realization To Deliver $4.4 Billion Of Revenue, Up 20% $4.4B
Slide 5: Portfolio Optimization & Capital Allocation
Portfolio Optimization & Capital Allocation Maximizing Capital Allocation To Deliver A More Focused Portfolio & Long-Term Shareholder Value Creation… Strategic Divestitures At Attractive Valuations… …Enabling Significant Capital Allocation Outdoor Acquisitions ~$3 Billion Revenue | ~8.5x EBITDA Gros
Slide 6: Positioning Supply Chain For Growth
Positioning Supply Chain For Growth Supply Chain Remains Dynamic | Electronic Component Availability Improving, As Expected… Investing In Supply Chain Capacity, Efficiency & Progressing Inventory & Resiliency To Better Serve Our Customers Supply Chain Actions Inventory Capacity Expansion 1 Make Wher
Slide 7: 1Q'22 Segment Overview
1Q’22 Segment Overview Demand Remains Strong With Price Mitigating Inflation Across Segments Revenue • 1Q Organic Growth* (1%) $3,801 • (3%) N.A., +2% Europe, +5% EM | (1%) PT, (1%) HTAS, +4% OPG $3,063 • Pricing Contributed +5% Offset By Volume (6%) | Price Accelerated 60 Bps Vs. Tools & Outdoor +2
Slide 8: Cost & Actions Update
Cost & Actions Update Incremental Inflation Headwinds Necessitating Additional Price Actions… Incremental Commodity & Transport Inflation Emerged In 2Q… …Focused Response And Actions To Latest Headwinds Key Commodity Spot Price* Changes Since Guidance $1.4B Change Vs. Jan 31st +93% +48% $0.8B +33% +
Slide 9: 2022 Guidance
2022 Guidance Expect Mid-Twenties Total Revenue Growth Vs. Prior Year And Adjusted EPS Of $9.50 To $10.50*... 2022 Updated Outlook Drivers For Updated Adjusted Diluted EPS* Tools & Outdoor Industrial Jan’22 Guidance (Midpoint) $12.25 Organic: Mid-To-High Single Digits Organic: High-Single Digits To
Slide 10: Summary
Summary Strong Demand & 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 +10% CAGR $9.50 - I N N O VAT I O N 1 Continue Delivering Top Quartile Long-
Slide 11: Q&A
Q&A StanleyBlack&Decker
Slide 12: 1Q 2022 Free Cash Flow
1Q 2022 Free Cash Flow* Prioritizing Inventory Build For Outdoor Season And Spring Preparation… YTD Q1'21 Q1'22 V$ Net Income $ 487 $ 175 $ (312) Deprec / Amort 144 144 - Working Capital (720) (1,336) (616) Pre-tax Loss on Sale of Business 1 - (1) Other (70) (224) (154) Operating CF (158) (1,241) (1
Slide 13: Global Presence
Global Presence Canada 1Q’22 Organic (1%) % SWK 5% Europe 1Q’22 Organic (3%) Japan 1Q’22 U.S. 1Q’22 % SWK 17% Organic (2%) Organic (2%) % SWK 2% % SWK 62% EMG. MKT 1Q’22 Australia 1Q’22 Organic 7% Organic 8% % SWK 12% % SWK 2% 1Q’22 OVERVIEW | 13
Slide 14: 1Q 2022 Regional Revenue Breakout
1Q 2022 Regional Revenue Breakout Tools & Outdoor Industrial $3,801M $647M Emerging Other Markets Other 3% 16% 10% Emerging Markets 11% Europe 17% Europe N.America 17% 69% N.America 57% 1Q’22 OVERVIEW | 14
Slide 15: Reconciliation Of Measures
Reconciliation Of GAAP To Non-GAAP Measures Q4 2021 Q1 2022 GAAP Acquisition-Related Non-GAAP Gross GAAP Acquisition-Related Non-GAAP Gross Gross Profit Charges & Other Profit Gross Profit Charges & Other Profit $1,152.5 $28.2 $1,180.7 $1,305.4 $88.8 $1,394.2 28.3% 29.0% 29.3% 31.3% GAAP Acquisition
Slide 16: Reconciliation Of Segment Profit
Reconciliation Of GAAP To Non-GAAP Segment Profit Q1 2021 Q1 2022 Tools & Outdoor GAAP Acquisition-Related Non-GAAP GAAP Acquisition-Related Non-GAAP Segment Profit Charges & Other Segment Profit Segment Profit Charges & Other Segment Profit $644.7 $4.2 $648.9 $378.5 $153.7 $532.2 21.0% 21.2% 10.0%
Slide 17: Reconciliation Of Sales Growth
Reconciliation Of GAAP To Non-GAAP Sales Growth Stanley Black GAAP Sales Non-GAAP Organic & Decker Acquisitions Divestitures Currency Growth Sales Growth 20% 23% 0% -2% -1% GAAP Non-GAAP Organic Acquisitions Divestitures Currency Outdoor Tools & Sales Growth Sales Growth 24% 27% 0% -2% -1% GAAP Non-
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures Organic sales growth, or organic growth, is defined as the difference between total current and prior year sales less the impact of companies acquired and divested in the past twelve months and any foreign currency impacts divided by prior year sales. Operating profit is
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