SFS 2.0 Driving
Excellence

Our operating system, SFS 2.0, is the backbone for ensuring operational excellence and our ability to outperform. It underpins every initiative at Stanley Black & Decker. Adapted for the digital age, SFS 2.0 harnesses and applies the disruptive power of digital pervasively across the business — delivering continuous process improvements while sustaining a culture of outperformance and ceaseless innovation in pursuit of above-market organic growth with margin expansion and strong free cash flow generation.

: OUR OPERATING SYSTEM

OUR VALUE CREATION MODEL

World Class Brands
Attractive Growth Platforms
Scalable, Defensible Franchises
Differentiable Through Innovation

Strong, Innovation-Driven Businesses In Diverse, Global Markets

Outsized, Capital-Efficient Organic Growth
Attractive, Expandable Operating Margin Rate
Outstanding Free Cash Flow Conversion

Investor-Friendly Capital Allocation

~1/2

M&A

~1/2

Return Cash
To Shareholders

Long-Term Financial
Objectives

4%–6% Organic Growth
10%–12% Total Revenue Growth
10%–12% EPS Growth**
(Including Acquisitions)
FCF ≥ Net Income
10+ Working Capital Turns
CFROI in 12%–15% Range

World Class Branded Franchises With Sustainable Strategic Characteristics That Create Exceptional Shareholder Value

**7%–9% excluding acquisitions | Excludes M&A related charges

Performance Security Business Transformation

Performance Catalyzing
Organic Growth