Stanley Black & Decker, Inc. · NYSE:SWK
Stanley Black & Decker — Investor Presentation (July 2022)
32 slides from Stanley Black & Decker's investor presentation, July 2022
Slide 1: Investor Presentation Strategy & ESG July 2022
Investor Presentation Strategy & ESG July 2022
Slide 2: Cautionary Statement
Cautionary Statement 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 su
Slide 3: Company Overview & Strategy
Company Overview & Strategy StanleyBlack&Decker
Slide 4: More Streamlined Company With Great Franchises
More Streamlined Company With Great Franchises Tools & Outdoor Industrial 2021 Revenue: $12.8 Billion 2021 Revenue: $2.5 Billion Outdoor Power Power Tools Equipment* Infrastructure 2021 Revenue: $15.6B 47% 25% 25% Market Cap: $18.5B Engineered Fastening Cash Dividend Yield: 2.6% 75% Hand Tools, Divi
Slide 5: Focused Mandate To Deliver Runway Of Growth & Margin Expansion
Focused Mandate To Deliver Runway Of Growth & Margin Expansion The Company Is Reprioritizing $200 - $250M In Investments To Drive Growth And $1B Of Cost Productivity… Growth Investments Portfolio Transformation Operational Execution Driving Share Gain Focused Company With Great Franchises Increasing
Slide 6: 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 7: 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 8: 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 • 10-12% Total Revenue Growth Differentiable Thr
Slide 9: Our Evolving Operating Model
Our Evolving Operating Model Investor Presentation: Strategy & ESG 9
Slide 10: Our Approach To ESG
Our Approach To ESG StanleyBlack&Decker
Slide 11: 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 12: Our Approach To ESG
Our Approach To ESG G rounded By S ta keholder C a pita lism Ro o te 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 Progress Fosteri
Slide 13: 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 14: 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 Carbon Neutral and Beyond Empower Makers Innovate with Purpose By 2030, as part of our science-based By 2030, SBD will empower 10 mi
Slide 15: 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 16: 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 17: 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 18: 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 19: 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 20: 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 21: 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 22: Governance
Governance StanleyBlack&Decker
Slide 23: 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 24: 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 25: 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 26: Corporate Governance
Corporate Governance Board Composition And Governance Features Board Refreshment And Tenure ✓ Independent Chairperson Average Tenure Of 6 Years ✓ 4 New Non-Management Directors In The Last 3 Years ✓ Balance Of Institutional Knowledge And Fresh Perspective 5 <= 3 years ✓ Key Governance Features: 6 >
Slide 27: Independent, Experienced & Diverse Board Of Directors
Independent, Experienced & Diverse Board Of Directors Andrea J. Ayers Donald Allan, Jr. Patrick D. Campbell Chair President & CEO Former SVP & CFO Stanley Black & Decker Stanley Black & Decker 3M Former President & CEO Convergys ✓ Appointed Stanley Black & Decker’s President & ✓ Expertise In Finance
Slide 28: 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 29: 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 Cardoso Crew Palmieri Executi
Slide 30: 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 Including • Alignment Through Stock-Based Compensation, Stock • Compe
Slide 31: Appendix
Appendix StanleyBlack&Decker
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
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