Stanley Black & Decker, Inc. · NYSE:SWK
Stanley Black & Decker — Investor Presentation (May 2024)
37 slides from Stanley Black & Decker's investor presentation, May 13, 2024
Slide 1: Investor Presentation
Investor Presentation Ve rs i o n 5 . 1 3 . 2 0 2 4
Slide 2: Contents
Contents Contacts Dennis Lange SWK Overview Pages 4 – 13 Vice President, Investor Relations 860-827-3833 Tools & Outdoor Pages 14 – 24 [email protected] Industrial Pages 25 – 29 Christina Francis Director, Investor Relations Appendix Pages 30 – 37 860-438-3470 [email protected] Chri
Slide 3: Cautionary Statement
Cautionary Statement This presentation contains “forward-looking statements,” that is, statements that address anything other than historical facts. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often con
Slide 4: More Streamlined Company With Great Franchises
More Streamlined Company With Great Franchises Tools & Outdoor Industrial A World-Wide Leader In Tools & Outdoor Highly-Engineered B-2-B Businesses Outdoor Power Infrastructure Equipment 19%* 22% 2023 Revenue*: $15.8B Power Tools Group Market Cap: ~$13.5B 48% $13.4B Hand Tools, Accessories & Enginee
Slide 5: Geographic Reach
Geographic Reach Stanley Black & Decker Segments Tools & Outdoor Industrial* 10% 12% 9% 12% 12% 15% 16% 15% 55% 18% 62% 64% U.S. Europe Emerging Markets ROW Diversified Globally With 60%-65% Of Our Revenues Generated In The U.S. Percentages As Of Fiscal Year 2023 Totals *Includes STANLEY Infrastruct
Slide 6: Transforming To Accelerate Organic Growth
Transforming To Accelerate Organic Growth Executing On Our Clear Vision And Strategy For Long-Term Success… Reduce Complexity – Invest In Core Growth Enhance ~$2B Savings By End Of ’25** $300M - $500M Shareholder Return Organic Revenue OPTIMIZE I N N O VAT I O N Growth* 2-3X Market C O R P O R AT E
Slide 7: Strategic Transformation
Strategic Transformation On-Track For Expected $2.0 Billion Pre-Tax Run-Rate Cost Savings By End Of 2025… Progress Achieved Supply Chain Transformation Pre-Tax Run-Rate Cost Savings Strategic Sourcing Footprint Rationalization $145M $1.2B Complexity Reduction Ops Excellence 1Q’24 Quarter-To-Date Pro
Slide 8: Stanley Black & Decker Value Creation Model
Stanley Black & Decker Value Creation Model Strong, Innovation-Driven Businesses World Class Brands In Diverse, Global Markets Attractive Growth Platforms Key Long-Term Metrics/Targets: Powered By: • Organic Revenue Growth*: 2-3x Market • 35%+ Adjusted Gross Margin* By 2025 Scalable, Defensible Fran
Slide 9: Balance Sheet & Liquidity
Balance Sheet & Liquidity 2023 2018 Actuals Actual Liquidity Key Points Free Cash Flow ($M)* $853 • Maintain Investment Grade Credit Ratings • $4.0B In Credit Facilities Backed By A Well Capitalized, Diversified Book Debt/ EBITDA*| Adj. EBITDA* 11.5x | 6.3x Bank Group • Long-Term Debt Maturity 1Q 20
Slide 10: 2024 Guidance
2024 Guidance StanleyBlack&Decker
Slide 11: 2024 Guidance
2024 Guidance Reiterating EPS Guidance Range Of GAAP $1.60-$2.85 And Adjusted* $3.50-$4.50 | Free Cash Flow* $0.6B-$0.8B… 2024 Outlook Total Company Tools & Outdoor Industrial Organic Revenue* Organic: +/- Low Single Digits Organic: Flat To Low Single Digit Organic: +/- Low Single Digits And Adjuste
Slide 12: Cash & Gross Margin Update
Cash & Gross Margin Update Profitability Improvements And Inventory Optimization To Drive Free Cash Flow* Generation In 2024… 1Q’24 In-Line With Expectations And Solid Start To Achieving 2024 Adjusted Gross Margin* Objective Reiterating 2024 Free Cash Flow* Target • 1Q’24 Free Cash Flow* Outflow Was
Slide 13: Currency Impact
Currency Impact Currency Trends Vs. USD (12/30/22 – 03/29/2024) Hedging Approach 15% Flat - Partially Hedge Key Currency 4% 1% 5% (4%) Exposures (CAD, EUR, GBP, & AUD, Among Other) - Intent Is To Dampen Volatility And 10% Allow Time For Business Teams To Mitigate Fluctuations With Cost & Price Actio
Slide 14: Tools & Outdoor
Tools & Outdoor
Slide 15: Tools & Outdoor
Tools & Outdoor 2023 Revenues: $13.4B Power Tools: $6.4B | Hand Tools Accessories & Storage: $4.0B | Outdoor Equipment: $3.0B 2023 Revenue Profile Adjusted Segment Margin* Emerging ROW 17% 16% 16% 18% 17% Markets 4Q’23: 9% 10% 12% 8% Europe U.S. 7% 15% DIY Pro Outdoor 64% Outdoor 15% FY17 FY18 FY19
Slide 16: A Global Leader In Tools & Outdoor
A Global Leader In Tools & Outdoor Proven Market Outperformance Driven By Our Powerful Growth Formula… A POWERFUL GROWTH FORMULA: COMMERCIALIZATION INNOVATION BRAND Across 5 Major Product Categories POWER TOOLS // OUTDOOR // HAND TOOLS // ACCESSORIES // STORAGE CONSUMER / DIY OUTDOOR PRODUCTS And 4
Slide 17: Hand & Power Tool Brand Positioning
Hand & Power Tool Brand Positioning HPP MPP OPP Consumer Tradesman Professional Automotive/Industrial DIY Advanced DIY Investor Presentation 17
Slide 18: Investments In Technology
Investments In Technology Electrical Charging Digital Motors & Electronics Faster Speed Asset Tracking Battery Cells Multiple Batteries Power Dense Cordless Broad Range Of Charging Comprehensive Loss Prevention Solutions Products And Solutions Products And Services Investor Presentation 18
Slide 19: Applying Technology Across Our Cordless Platform
Applying Technology Across Our Cordless Platform Smaller Smarter Stronger Body Grip Tools 20V Core Tools 20V Expansion Tools High Power Tools POWER Investor Presentation 19
Slide 20: DEWALT Innovation
DEWALT Innovation Power Of Cordless Freedom With A Leading Global PRO Tool Brand Investor Presentation 20
Slide 21: Heavy Duty Platform Expansion In 2024
Heavy Duty Platform Expansion In 2024 Revolutionary Platform Of Cordless Solutions For The Concrete Industry… Heavy Duty Line Of Concrete Solutions Debuted At World Of Concrete …Advancing The Trade With The Impressive Power, Runtime, Reliability Of Our Battery-Operated Solutions Investor Presentatio
Slide 22: Cordless System
Cordless System Focused On Increased Penetration Through Expanding The Cordless Power Tools System Investor Presentation 22
Slide 23: Hand Tools, Accessories & Storage Opportunities
Hand Tools, Accessories & Storage Opportunities $4B Global Business… Leader In $42B Total Market - $34B Addressable 30+ Categories THREE KEY AREAS OF FOCUS TO SERVE EVERY END USER, JOB SITE & AUTO SHOP IN THE WORLD: Elite Series Accessories Own The Toolbox Mechanics Tools Of The Future Unmatched Per
Slide 24: Outdoor Opportunities
Outdoor Opportunities Completed Two Major Complementary Acquisitions In 4Q 2021… ~$3 Billion Lawn & Garden Platform With Broad Coverage Across $25B+ Outdoor Category Fastest Growing Franchise In Cordless/Electric Outdoor Power Equipment MTD & Excel Acquisitions Provide Compelling Capacity Expansion
Slide 25: Industrial
Industrial Engineered Fastening
Slide 26: Industrial Overview: Engineered Fastening
Industrial Overview: Engineered Fastening 2023 Revenue: ~$2.0B Global Fastener Segment - $85B Geographic End Categories 7% 19% ROW Automotive 24% ~$29B 11% Industrial 20% Emerging 33% Markets 18% 10% 20% Value Add U.S. 49% 53% Market Segments 14% General Industry Electronics 22% Automotive Construct
Slide 27: Engineered Fastening Advantage
Engineered Fastening Advantage To Be A Worldwide Leader In Highly Engineered Products Vision With Opportunities To Grow Engineering Capabilities Leading System Solutions Engineered Fastening Growth Strategy High-Growth Verticals Automotive EV, Aerospace, Construction, And Solar Defendable Customer V
Slide 28: Addressable Market Increases Significantly For EV vs ICE
Addressable Market Increases Significantly For EV vs ICE Internal Combustion (ICE) Vehicle - Average Content Fully Electric & Hybrid Electric Vehicle - Projected Content Common Applications To ICE & EV $9.5/car Chassis / BIW Interior Trim Exterior Trim Low Voltage Wiring Auto Electronics $15/car $30
Slide 29: Electrification Opportunities In STANLEY Industrial
Electrification Opportunities In STANLEY Industrial Electrification Across The Industrial Platform Focus Areas Auto Industrial Chassis EV Tier Applications Suppliers Wire Harness EV Battery Mgmt. System And Thermal Management Heavy Equip Transfer Safety Solutions For EV Cordless Tools Replace Batter
Slide 30: Appendix
Appendix StanleyBlack&Decker For those who make the world.”
Slide 31: Non-GAAP & Other Financial Measures
Non-GAAP & Other Financial Measures This presentation may include non-GAAP and other financial measures as defined below. 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 mon
Slide 32: Reconciliation Of GAAP To Non-GAAP Measures
Reconciliation Of GAAP To Non-GAAP Measures Investor Presentation 32
Slide 33: Reconciliation Of GAAP To Non-GAAP Measures
Reconciliation Of GAAP To Non-GAAP Measures Free Cash Flow Adjusted EBITDA* (Continuing Operations) Millions of Dollars 1Q’24 FY’23 FY’22 FY’21 Millions of Dollars FY’23 FY’22 FY’21 Net (loss) earnings before equity Net Cash Provided By interest $ (282) $ 170 $ 1,532 (Used In) Operating Activities $
Slide 34: End Categories
End Categories End Categories - % Of Revenue* Industrial Tools & Outdoor SWK Existing Residential / Repair / DIY 0% 23% 20% New Residential Construction 0% 27% 23% Non-Resi. / Commercial Construction 0% 16% 14% Industrial & Automotive Repair 33% 11% 14% Automotive OEM 53% 0% 7% Aerospace 14% 0% 2% O
Slide 35: Material Spend
Material Spend Direct Material Spend* Components Finished Goods 2023 ($M) Finished Goods $1,660 27% Components 3,200 53% Steel 490 8% Resin / Plastic Moldings 390 6% Packaging 230 4% Base Metals 110 2% $6,080 Top Three Raw Material Exposures (Finished Goods + Direct + Components) 1. Steel 2. Resin 3
Slide 36: Liquidity
Liquidity Near Term Liquidity Sources Long-Term Debt Outstanding ($M) December 2023 Cash Position $0.4B Revolving Credit Facilities $4.0B Notes/Bonds Total Near-Term Liquidity $4.4B O/S 5-Year Agreement – Sep 2026 $2.5B 364-Day Facility – Sep 2024 $1.5B Adequate Liquidity To Meet The Needs Of The Co
Slide 37: Investor Presentation
Investor Presentation Ve rs i o n 5 . 1 3 . 2 0 2 4
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