Consistently Building Scale & Capabilities Through Acquisitions 2013 Investor Day
2
Niscayah Group Acquisition Rationale And Challenges
Accretive
Disciplined
Geographic Reach Portfolio Mix/Key Accounts High End Integration Skills Scale
• Synergies: Target Raised To $95M From $80M • Niscayah Profitability Improved With Stanley Model • SFS Discipline/Lean Processes • Performance Based Culture • Proven SBD Integration Skills
$1.5
15%
$1.0
10%
$0.5
5%
$0.0
0% 2006 07 Sales
• • • •
EBITDA %
Challenges
USD (Billions)
Strategic
• • • •
08
09
10
11
EBITDA %
Poor Service Rate (Net Promoter Score -17%) Decentralized Business Model Different Systems & Processes In All 14 Countries Difficult Economy: Low To Negative Growth Across Europe
Strategically Attractive But Not Without Its Challenges 2013 Investor Day
3
Stanley & Niscayah After The First Year Customer Satisfaction 20%
18%
15%
Truly Pan-European Trusted Partner Corporate European Headquarters, Belgium Country Head Offices European Sites
10% 5%
Reversed Performance Trend 1200
12% 10%
1000
10%
800
8%
0%
600
-5%
400
4%
-10%
200
2%
-15% -20%
6% 6.70%
0 -17% Before Acquisition
Acquisition +1 Year
Net Promoter Score -17% To +18% In 1 Year Supported By 100% TRUST Campaign
Opportunity For Growth With International Key Accounts Across Europe
0% 2011
2012
Stanley EU
Niscayah
OM%
2011 & 2012 Revenues $M & OM%
2013 Investor Day
4
Western Europe Electronic Security Market: Alarm & Video + Monitoring Total Market $17.8bn
By Vertical $17.8bn
By Segment $17.8bn
By Service $17.8bn EAS - $0.5 Video - $2.1
Alarm & Video $11.6 European Electronic Security Addressable Market $17.8
Commercial and Industrial $14.9
Commercial Alarm $2.9 Access Control $3.2 Fire $2.9 Commercial Monitoring $2.4
Monitoring $6.2 Government & Institutional $2.9
• Stanley: 6% Market Share • Leading Position In France And Nordics • Fragmented Market: Top 5 Competitors Have Less Than 1/3 Of Total Market
Fire Alarm $3.7
Source : Freedonia World Security Services 2013, Freedonia World Security Equipment 2001, Bain 2011 Report, SSS-E Internal Data
2013 Investor Day
5
Driving Profitable Organic Growth: Our Value Proposition Providing Pan-European One-Stop Solutions To Make Life Safer The Easy Way. • True Pan-European Partnership With Presence In 14 Countries + Partners To Cover All European Union Countries For Install Maintenance And Monitoring
• The Use Of Advanced Tools In Field Mobility And Sales Force Mgt Delivering Customer Excellence
• Product Agnostic Offering ‘Best Of Breed’
• High End Integration Skills Best In Industry
• Wide Range Of Solutions Available
• Stanley Assure Offering Customers Total Security
Customer Satisfaction Is Our No.1 Priority 2013 Investor Day
6
True One-Stop Direct Partnership: Stanley AssureTM Stanley AssureTM: Security As A Service. Subscription Based Agreement Offering End-To-End Security Solutions For Every Business.
• Very Latest Product And Technology With Future Proof Flexibility • Service And Monitoring Package Tailored To Individual Business • One Agreed, Manageable Regular Payment • One-On-One Relationship With Product, Service And Finance Provider (Internal Financing)
Partnership – Technology – Flexibility: A New Approach To Security Solutions 2013 Investor Day
7
High End Specific Value Proposition: Tailored Solutions By Vertical Healthcare
Industry
Buildings
Retail
Banking
Transport & Log.
Utilities
Specific Solutions For Each Vertical Market 2013 Investor Day
Customer Theft Robbery Internal Fraud Safety Protection Of Property • Cost Control
Value Proposition • Product Technology
Offer Differentiation • Powered By Stanley Assure™
‒ EAS (RF & AM Technology) ‒ Automatic Shopper Behaviour Analysis
Customer Safety
• Full Packaged Solution ‒ CCTV, Fire, Access Control, Intrusion And Electronic Article Surveillance
• Monitoring & Service ‒ Evideo Cloud
Employee Theft
Customer Theft
One Stop Partnership Turning Security Into Opportunity 2013 Investor Day
9
Stanley Security Europe Priorities And Longer Term Vision Customer Satisfaction
Profitable Growth
Business Transformation
• Pan-European ‘Best In Class’ Field Service & Monitoring Standards
• Continued Development Of Our International Key Account Business
• Embedded Net Promoter Score Feedback • Rigorous Performance Metrics To Track Progress
• Attain Greater Share Of Recurring Revenue (RMR) Leveraging Stanley Assure And With Targeted Bolt-On Acquisitions
• Consistent Stanley Business Model & SFS Principles Driving Optimum ‘Cost To Serve’
• Delight Our Customers Around The 5 Customers Touch Points (Account Management, Installation, Service, Monitoring & Billing)
• Continue To Develop Breadth Of Solutions & Verticals Capabilities Bringing In Near Neighbours – Mechanical Locks /Eas Etc…
• Roll Out Of Advanced Sales Force Management And Field Mobility Tools • Common Pan Europe Monitoring Platform • Unified Logistics And S&OP
Future State Goal 1200
16% 14%
1000
12% 800
10%
600
8% 6%
400
4% 200
2%
0
0% 2011 Stanley
2012
2015
Niscayah
OM%
Positioning For Success In A Challenged Macro Economic Climate 2013 Investor Day
10
Stanley Black & Decker - Investor Relations Solutions
Stanley Black & Decker 2013 Investor Day Security Europe Massimo Grassi President
Stanley Security: A Truly Pan-European Trusted Partner WELCOME TO
...