Stanley Black & Decker, Inc. · NYSE:SWK
Stanley Black & Decker — Investor Day (November 2024)
19 slides from Stanley Black & Decker's investor day presentation, Nov 20, 2024
Slide 1: Financial Overview
Financial Overview Pat Hallinan Executive Vice President, Chief Financial Officer November 20, 2024
Slide 2: Cautionary Statement
Cautionary Statement This Presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All such statements other than statements of historical fact are “forward-look
Slide 3: Key Takeaways
Key Takeaways Building A Consistent Execution Track Record Against 2022 Transformation Framework Focused On Restoring 35%+ Adj. Gross Margins* Through The Transformation And Believe There Is A Runway For Further Improvement Beyond 2026 Investing To Accelerate Profitable Organic Growth Strong Free Ca
Slide 4: Reiterating 2024 Guidance
Reiterating 2024 Guidance $1.15 - $1.75 $3.90 - $4.30 $650M - $850M GAAP EPS Adjusted EPS* Free Cash Flow* Focused On What Is Primarily Within Our Control To Continue Delivering Results Aligned With Expectations 2024 Capital Markets Day 4 *Non-GAAP Financial Measures. Refer To Appendix For Additiona
Slide 5: Significant Progress Achieved Via Transformation Strategy
Significant Progress Achieved Via Transformation Strategy Consistent Financial Execution Despite Lower Revenue & Higher Inflation Vs. Initial Plans Adj. Gross Margin* Adj. EBITDA* Highlights ~$1.5B Enabling Investment To & Adj. EBITDA* Growth ~$1.6B ~30% ~20% $0.9B Met Or Exceeded All Key Original 2
Slide 6: Focused On Successfully Completing The Transformation
Focused On Successfully Completing The Transformation Moving With Speed To Achieve 35% Adj. Gross Margin* Adj. Gross Margin* Free Cash Flow* Conversion Rate* ~100% +/-10pts >35% To 37% $650M To $850M ~30% FY24E FY27 & Beyond2 FY24E FY27 & Beyond2 Target Target Adj. Gross Margin Levers Free Cash Flow
Slide 7: Building An Organic Growth Culture
Building An Organic Growth Culture Prioritizing & Protecting Investments For Brand Health & Acceleration Of Organic Growth Purposeful & Efficient Investments Adjusted SG&A* % Of Sales FY25 – FY27 Target Longer-Term Target ~21% To ~22% ~20% To ~21% Focused Innovation Marketplace Brands Capabilities A
Slide 8: Long Term Financial Targets - Multi-Year Vision Beyond 2027
Long Term Financial Targets - Multi-Year Vision Beyond 2027 We Believe There Is A Multi-Year Runway For Growth & Margin Accretion Beyond The Transformation Long-Term Value Creation Algorithm (Beyond 2027) Revenue Growth: MSD Organic Growth* % (200-300bps Ahead Of LSD Market) Assumptions Adj. Gross M
Slide 9: Targeted Financial Performance
Targeted Financial Performance Successfully Achieving Our Transformation Provides A Foundation For Growth 2027 Target Longer-Term Estimated Range Context Net Sales $16.5B To $17.0B ~3% 3Yr CAGR MSD Average Growth % Productivity Adjusted Gross Margin* >35% >35% To 37% And Volume Adjusted SG&A* (% Of
Slide 10: Plan To Mitigate Higher Costs From Tariffs
Plan To Mitigate Higher Costs From Tariffs Possible 2025 Impact, Assuming Increase In Current China Tariffs1 To 60%, Is ~$200 Million Annualized… U.S. Tools & Outdoor Supply Approach To Potential Tariff Mitigation Approximately $6B Adjusted Cost of Sales2 Proactive Government Affairs Engagement ~20-
Slide 11: Capital Structure & Capital Deployment
Capital Structure & Capital Deployment Committed To Debt Reduction Disciplined Capital Deployment Priorities & Solid Investment Grade Credit Rating Focused On Achieving ≤ 2.5X Net Debt To Adj. EBITDA* 1 Transformation & Organic Growth Investments • Supported By Organic Cash Generation 2 Support A St
Slide 12: Returns Are A Key Measure Of Our Long Term Success
Returns Are A Key Measure Of Our Long Term Success We Are Focused On Improving Returns To ≥ Mid-Teens Level Cash Flow Return On Investment* Contributing Factors Asset Efficiency ≥Mid-Teens • Inventory Of 120-130 DSI 13.7% ~12% To ~13% • Disciplined CAPEX 8.9% ~9% Margin Improvement & Growth • Transf
Slide 13: Why Invest?
Why Invest? We See Significant Value Creation Potential In The Short, Medium And Long-Term Well-Positioned In Attractive & Growing Industries COMPLETING ACTIVATING A GROWTH DEPLOYING CAPITAL TRANSFORMATION CULTURE WITH WITH DISCIPLINE OPERATIONS EXCELLENCE Earnings Power Consistent Share Gain Accret
Slide 14: Key Takeaways
Key Takeaways Building A Consistent Execution Track Record Against 2022 Transformation Framework Focused On Restoring 35%+ Adj. Gross Margins* Through The Transformation And Believe There Is A Runway For Further Improvement Beyond 2026 Investing To Accelerate Profitable Organic Growth Strong Free Ca
Slide 15: Appendix
Appendix StanleyBlack&Decker For those who make the world.
Slide 16: Reconciliation Of GAAP To Non-GAAP Measures
Reconciliation Of GAAP To Non-GAAP Measures This presentation may include the following Non-GAAP measures. Organic revenue or organic sales 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 for
Slide 17: Reconciliation Of GAAP To Non-GAAP Measures
Reconciliation Of GAAP To Non-GAAP Measures FY 2024E GAAP Non-GAAP Non-GAAP Diluted EPS Adjustments Diluted EPS Range Range Range $1.15 - $1.75 $2.55 - $2.75 $3.90 - $4.30 4Q 2022 GAAP Non-GAAP Non-GAAP Gross Gross Profit Adjustments Profit $753.5 $24.5 $778.0 18.9% 19.5% 2024 Capital Markets Day 17
Slide 18: Reconciliation Of GAAP To Non-GAAP Measures
Reconciliation Of GAAP To Non-GAAP Measures 2024 Capital Markets Day 18
Slide 19: Reconciliation Of GAAP To Non-GAAP Measures
Reconciliation Of GAAP To Non-GAAP Measures 2024 Capital Markets Day 19
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