Stanley Black & Decker, Inc. · NYSE:SWK
Stanley Black & Decker — ESG Presentation (March 2022)
32 slides from Stanley Black & Decker's sustainability presentation, March 2022
Slide 1: Investor Presentation: Strategy & ESG
Investor Presentation: Strategy & ESG March 2022
Slide 2: Cautionary Statements
Cautionary Statements 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 s
Slide 3: Company Overview & Strategy
StanleyBlack&Decker Company Overview & Strategy
Slide 4: A Global Leader With World Class Franchises
A Global Leader With World Class Franchises STANLEY BLACK & DECKER (NYSE: SWK) 2021 Revenue: $15.6B Market Cap: $27B Cash Dividend Yield: 1.9% Dividend Paid Consecutively For 145 Years; Increased For Past 54 Consecutive Years Tools & Storage Industrial 2021 Revenue: $12.8B 2021 Revenue: $2.5B Outdoo
Slide 5: 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 6: 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 7: 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 Differentiable Through Innovation • 10-12% Total
Slide 8: SBD Operating Model
SBD Operating Model Investor Presentation: Strategy & ESG 8
Slide 9: Our Approach To ESG
StanleyBlack&Decker Our Approach To ESG
Slide 10: Powered By Purpose: To Be A Force For Good
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 11: Our Approach To ESG
Our Approach To ESG Grounded By Stakeholder Capitalism Ro o t e 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 Fostering Purpose & P
Slide 12: 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 13: 2030 ESG Strategy – Public Goals
2030 ESG Strategy – Public Goals Environment Social (People) Social (Product) Carbon Neutral & Beyond Empower Makers Innovate with Purpose By 2030, as part of our science- By 2030, SBD will empower 10 By 2030, SBD will address unmet based target commitment, SBD will million makers to thrive in a soc
Slide 14: Our 2030 Strategy
Our 2030 Strategy Our 2030 Strategy/Overall Objectives* Sustainability Performance* Link: 2020 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 And Excl
Slide 15: 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 16: 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. Global Battery Alliance
Slide 17: 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 18: 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 19: 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 20: 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 21: Governance
StanleyBlack&Decker Governance
Slide 22: 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 23: 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 24: 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 25: Corporate Governance
Corporate Governance Board Composition And Governance Features Board Refreshment And Tenure ✓ Independent Chair Average Tenure Of 7 Years ✓ 4 New Non-Management Directors In The Last 3 Years ✓ Balance Of Institutional Knowledge And Fresh Perspective <= 3 years 4 ✓ Key Governance Features: 7 > 6 year
Slide 26: Independent, Experienced & Diverse Board Of Directors
Independent, Experienced & Diverse Board Of Directors George W. Buckley Andrea J. Ayers James M. Loree Chairman Retired President & CEO President & CEO Stanley Black & Decker Convergys Stanley Black & Decker (Retiring April 2022) (Assuming Chair Role April 2022) ✓ Integral Knowledge Of The Daily Wor
Slide 27: Independent, Experienced & Diverse Board Of Directors
Independent, Experienced & Diverse Board Of Directors Debra A. Crew Michael D. Hankin Adrian V. Mitchell President, North America President & CEO EVP & CFO Diageo Brown Advisory Macy’s, Inc. ✓ Expertise In Consumer/Retail, Branding, ✓ Expertise In Financial & Investment Planning, ✓ Leads All Of Macy
Slide 28: 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 Crew Palmieri Executive Commi
Slide 29: 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 • Alignment Through Stock-Based Compensation, Stock • Compensation Co
Slide 30: Well Positioned To Generate Long-Term Shareholder Value
Well Positioned To Generate Long-Term Shareholder Value Demand Remains Robust & 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 RECONNECTION +6% +30
Slide 31: Appendix
StanleyBlack&Decker APPENDIX
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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