Third Quarter 2021 Overview

Third Quarter 2021 OverviewOctober 28, 2021

3Q’21 OVERVIEW 2

Participants

Jim Loree CEO

Don Allan President & CFO

Lee McChesneyVP, Corporate Finance &

CFO, Tools & Storage

Dennis Lange VP, Investor Relations

3Q’21 OVERVIEW 3

Cautionary Statements

Certain Statements Contained In This Presentation Are Forward Looking. These Are Based On

Assumptions Of Future Events Which May Not Prove To Be Accurate. They Involve Risk And

Uncertainty. Actual Results May Differ Materially From Those Expected Or Implied. We Direct You

To The Cautionary Statements Detailed In The Corresponding Press Release And Form 8-K And Our

Recent ‘34 Act SEC Filings.

3Q’21 OVERVIEW 4

3Q 2021 Key Messages

*Non-GAAP Financial Measures. See Appendix For Reconciliation of GAAP To Non-GAAP Measures Used in This Presentation.

• Prioritized Meeting Demand In A Difficult Environment To Deliver Record $4.3 Billion In Revenue (+11% VPY | + 10% Organic Growth*)

• Investing In Innovation, Manufacturing Automation, Inventory & Our Supply Chain To Meet Strong Demand & Fuel Sustainable Growth

• Actively Addressing A Dynamic Supply Chain & Are Implementing Price & Productivity Actions To Offset Inflation

• We Are Confident In Our Multi-Year Growth & Margin Expansion Story Supported By Secular & Company Specific Catalysts

$4.3BTotal Revenue

10%Organic Growth*

32.8%Gross Margin %*

12.2%Operating Margin %*

$2.77Adjusted Diluted EPS*

Key Financials

Record 3Q Revenue Driven By Robust Customer Demand Resulting In 10% Organic Growth*

3Q’21 OVERVIEW 5

Growth In Outdoor

…Creating Significant ESG, Growth & Margin Opportunities

Announced Two Major Complementary Acquisitions During The Third Quarter…

~$4 Billion Lawn & Garden Platform* With Broad Coverage Across $25B+ Outdoor Category

2021 Estimated Revenue ~$2.5B+

2021 Estimated Revenue ~$0.4B 2021 Estimated Revenue ~$0.9B

Fastest Growing Franchise In Cordless/Electric Outdoor Power Equipment

MTD & Excel Acquisitions Provide Compelling Capacity Expansion & Multi-Year Runway For Growth

Electrification & Autonomous

Lead Large Format Gas & Electric Expansion

1Win With The Professional

Apply Innovation Leadership & Dealer Network To Expand Into

Higher-End Pro Categories

2Optimize Brand & Channel

Strong Position In Retail & Expansion In Pro Dealer Network

3Parts & Service

Further Penetrate ~$4B Global Lawn & Garden Parts &

Accessories Category

4

* Post Closing & Pending Required Regulatory Approvals for MTD and Excel Transactions

3Q’21 OVERVIEW

~$200M Of New SG&A Investments In 2H’21 Run Rate Cost Base

6

Tools: Fueling Organic Growth

PeopleInnovation Speed To Market

Power Tools200+ New Products Across Pro &

Industrial Categories

300+ New Products Supporting Tradespeople & DIY

Hand Tools500+ New Products

We Added ~1,300 New Hires Across Power Tools & Hand Tools To Support R&D And

Commercialization Efforts

New Product Cycle Time Reduction

1Streamlined Development Process

2 Increased Testing Capacity

3 Expanded Global Footprint & Design Centers

Additional Manufacturing Capacity

1M+ Ft.2 New North America Manufacturing Space

Additional Distribution & Third-Party Partnerships

Compact 20V Core High Power

Cutting

Mech Tools

Storage

MeasuringFastening Drilling

Engineers

Product Managers

Brand, Industrial Design & Insights

Sales & Commercial

3Q’21 OVERVIEW 7

DEWALT POWERSTACK™ … The Next Dimension In Power

…Shipping In 4Q21 With Hundreds Of Millions Of Annual Growth Potential

DEWALT’s Latest Breakthrough Delivering The Lightest And Most Powerful Compact Battery...

† Vs. DCB203 Battery; No In Application** Footprint Vs. DCB203 Battery*** Vs. Model DCB203

The Technology Leader In Professional Power Tools

3Q’21 OVERVIEW 8

Black + Decker reviva™

Collaborating With Eastman To Deliver The World’s First Power Tool Made From Recycled Material...

…One Example Why Black + Decker Is A Major Growth Catalyst Beginning In 2022

Fully Sustainable, Frustration-Free Packaging

Our Products are as Strong as Our Commitment to the Environment

9*

*Equivalent Weight**Recycled Material Is Certified Through Third-Party Mass Balance Allocation Process

Housing Manufactured From 50% Certified Recycled Material**

10M

3Q’21 OVERVIEW 9

Positioning Supply Chain For Growth

…And Set The Business Up For Significant Volume Growth In 2022 & Beyond

Investing In Supply Chain Capacity, Efficiency & Resiliency To Serve Our Customers…

Capacity Additions

Hermosillo, MX

Monterrey, MX

Fort Worth, TX

• Adding Capacity In Accordance With Our Make Where We Sell Strategy

• Opening 2 New Power Tool + 1 New Hand Tool North America Based Plants

Strategic Sourcing Factory Automation

Battery Cells

• Investments Made With Key Battery Suppliers To Secure Dedicated Capacity For The Medium Term

• Diversifying Supply Base And Increasing Inventory To Support Continued Strong Demand & Electrification Trends

Electronics & Semi-Conductors

• Qualifying Multiple Module Platforms To Increase Capacity & Supply Flexibility

• Investments With Suppliers To Install Additional Lines & Accelerate Capacity Improvement

• Diversifying Supply Base & Geographic Footprint

Target Capacity Increases Of Key Components To Support Significant Growth In ‘22+

• Flexible Automation Cells With Ability To Seamless Changeover To Manufacture Multiple Different Drills

• Significant ↑ In Labor Efficiency + Meaningful ↑ In Throughput = Key Enabler Of Make Where We Sell

• Multiple Applications Deployed At Charlotte Manufacturing Facility | <1Yr Payback

Leveraging Flexible Automation To Competitively Manufacture In The US

US Cost Of Sales Made In NA

2016 2021 + New Capacity

Approaching 3X Growth

3Q’21 OVERVIEW

$2,804 $3,186

3Q'20 3Q'21

10

3Q’21 Segment Overview

Revenue Profit*

Tools & Storage Industrial Security

• +13% Organic Growth*

• +9% N.A., +20% Europe, +28% EM

• +11% PT, +16% HTAS, +11% OPG

• Robust Demand Across All Markets As Secular Shifts Related To Reconnection With Home & Garden & eCommerce Were Amplified By Industry-Leading Innovation & Professional Demand

• Demand Remains Robust Outpacing 2020 Comps

• +25% Organic Revenues Versus 2019


• +12% N.A.

• Modestly Positive Europe

• N.A.: Strong Backlog Conversion In Commercial Electronic Security And Growth Within Automatic Doors & Healthcare

• Europe: Positive Organically Led By Data-Driven Product Solutions In France

• Transformation Is Driving Topline Momentum:

• Order Rates Grew 14% In 3Q & Record High Quarter-End Executable Backlog


• (1%) Engineered Fastening

• +7% Infrastructure

• Engineered Fastening: Strong General Industrial Growth Was Offset By Market-Driven Aerospace Declines & Lower Automotive OEM Production Resulting From The Global Semiconductor Shortage

• Infrastructure: 16% Organic Growth In Attachment Tools Was Partially Offset By Lower Pipeline Project Activity In Oil & Gas

• Cyclical Growth Opportunity In ‘22 And Beyond Across All End Markets

OM Rate* (580 Bps) | Volume, Price, Productivity And Benefits From Innovation Were More Than Offset By Accelerating Transit Costs, Commodity Inflation & Growth Investments

OM Rate* (440 Bps) | Benefits From Price & Productivity More Than Offset By Commodity Inflation, Growth Investments & Volume Declines In Higher Margin

Automotive & Aerospace Fasteners

OM Rate* (180 Bps) | Price & Volume Gains More Than Offset By Labor Costs, Pandemic-Related Inefficiencies &

Growth Investments

$603 $500

3Q'20 3Q'21

(17%)

+14% 21.5% 15.7%

$587 $594

3Q'20 3Q'21

Revenue Profit*

$72

$47

3Q'20 3Q'21

(35%)

+1% 12.3% 7.9%

$460 $484

3Q'20 3Q'21

Revenue Profit*

$50 $45

3Q'20 3Q'21

(12%)

+5% 11.0% 9.2%

*Non-GAAP Financial Measures. See Appendix For Reconciliation of GAAP To Non-GAAP Measures Used in This Presentation.

3Q’21 OVERVIEW

QTD YTD

Net Income 395$ 414$ 19$ 767$ 1,359$ 592$

Deprec / Amort 145 144 (1) 431 431 -

Working Capital 52 (457) (509) (668) (1,374) (706)

Pre-tax Loss on Sales

of Businesses - - - - 4 4

Other 85 (96) (181) 70 (129) (199)

Operating CF 677 5 (672) 600 291 (309)

CapEx (62) (130) (68) (209) (322) (113)

Free Cash Flow 615$ (125)$ (740)$ 391$ (31)$ (422)$

V$ 3Q'213Q'20 V$3Q'213Q'20

11

3Q 2021 Free Cash Flow*

…Expect Significant 4Q Free Cash Flow Generation In-Line With Normal Seasonality

Prioritizing Inventory To Serve The Robust Demand Environment…

5.7 WCT

(1.3T) VPY

*Non-GAAP Financial Measure

3Q’21 OVERVIEW 12

Cost & Actions Update

…Offsetting Cost Impacts That Accelerated During The Third Quarter

Taking Actions To Set The Business Up For Positive Net Carryover In 2022…

$XMSupply Chain Environment Remains Dynamic…

Key Trends Driving Incremental Pressure

$XXM

$300M

$160M

$290M$130M

$100M

Jul’21 Guide

Oct’21 Guide

~$460M

~$230M ~$690M

FY’22 YoY

~$600-$650M

Commodity Cost-To-Serve

• Inputs Continued To Move Higher During 3Q | Steel, Resins & Purchased Components Were Key Drivers

• Spot Container Prices ↑ ~6-7X | Transit Times ↑ From ~40 Days To ~85 Days Resulting In Higher Costs To Meet Demand

…Necessitating Incremental Pricing & Productivity Actions

• Productivity Actions

• 3Q Price Increases Completed

• Communicated 5% Surcharge In NA Tools & Storage Effective Nov. 8th & Global Price Increases Across The Businesses During 4Q

• 2022 Opportunity Of $100-$150M Margin Resiliency Benefits Incremental To Above Actions

Pricing/Margin Actions Sized To Exceed 2022 Headwinds

3Q’21 OVERVIEW 13

2021 Guidance

…Free Cash Flow To Approximate $1.1 To $1.3 Billion

Expect 16%-17% Organic Growth And EPS Of $10.90-$11.10*, Up 21%-23% Versus Prior Year...

* Excludes Acquisition-Related & Other Charges Noted Above** Assuming Current Input Cost & Demand Environment. Excludes Acquisition-Related & Other Charges

P&L And Other

• Diluted EPS: 2021 GAAP EPS $10.20 - $10.45 | 2021 Adjusted EPS* $10.90 - $11.10

• Cost Structure Considerations: $125M In Net Cost Savings Carryover | Inflation & Cost-To-Serve Headwind ~$690M | FX Tailwind ~$15M

• Other Items: Other, Net: ~$210M | Interest ~$180M | Pretax Acquisition-Related & Other Charges ~$130M

• Shares: ~161.2M | Tax Rate: ~12%

• Free Cash Flow: Expected To Approximate $1.1-1.3 Billion | CapEx ~3%-3.5% Of Sales

Organic Growth & Segments

2021 Updated Outlook Initial View On 2022

Industrial

Organic: Low Single Digit

Margin: Down YoY

Tools & Storage

Organic: Low 20’s

Margin: Down YoY

Security

Organic: High Single Digits

Margin: Down YoY

Total Company Organic Growth 16%-17%

Mid-Single Digit Volume Growth

Positive Price /Cost

MTD & Excel Accretion~$0.50

Below-The-Line (Tax)(~$0.50)

Targeting $1 EPS Accretion In 2022**

~$0.90 - $1.10

3Q’21 OVERVIEW

Summary

Growth + Margin Expansion

R E C O N N E C T I O N W I T H H O M E & G A R D E N

e C O M M E R C E

E L E C T R I F I C A T I O N

H E A L T H & S A F E T Y

M A R G I N R E S I L I E N C Y

14

…Performance Driven By Our People & Guided By Our Purpose – For Those Who Make The World

Demand Remains Robust & Our Multi-Year Runway For Growth & Margin Expansion Is Compelling...

Driven By Our Vision & Purpose

To Be A Force For Good

1 Continue Delivering Top Quartile Long-Term Performance

Be Recognized As One Of The World’s Most Innovative Companies2Elevate Our Commitment To Corporate Social Responsibility3

Q&ATHANK YOU

APPENDIX

3Q’21 OVERVIEW

Canada 3Q’21 YTD

Organic 6% 23%

% SWK 5% 5%

17

Global Presence

US 3Q’21 YTD

Organic 8% 19%

% SWK 59% 58%

Emg. Mkt 3Q’21 YTD

Organic 24% 45%

% SWK 13% 12%

Europe 3Q’21 YTD

Organic 10% 26%

% SWK 19% 20%

Japan 3Q’21 YTD

Organic 29% 32%

% SWK 2% 3%

Australia 3Q’21 YTD

Organic (13%) 12%

% SWK 2% 2%

3Q’21 OVERVIEW 18

3Q 2021 Regional Revenue Breakout

$594M

N.America66%Europe

17%

Emerging Markets

14%

Other3%

$3,186M

Tools & Storage

$484M

Industrial Security

N.America64%

Europe35%

Emerging Markets

1%

N.America57%

Europe15%

Emerging Markets

17%Other11%

3Q’21 OVERVIEW 19

Reconciliation Of GAAP To Non-GAAP Measures

$1,376.335.7%

GAAPGross Profit

$7.0

Acquisition-Related Charges & Other

$1,383.335.9%

Non-GAAP Gross Profit

Q3 2020

$637.416.6%

GAAPOperating Profit

$43.0


$680.417.7%

Non-GAAP Operating Profit

$2.44

GAAPDiluted EPS

$0.45


$2.89

Non-GAAP Diluted EPS

$1,391.532.6%

GAAPGross Profit

$5.0


$1,396.532.8%

Non-GAAP Gross Profit

Q3 2021

$492.711.6%

GAAPOperating Profit

$28.8


$521.512.2%

Non-GAAP Operating Profit

$2.56

GAAPDiluted EPS

$0.21


$2.77

Non-GAAP Diluted EPS

3Q’21 OVERVIEW 20

Reconciliation Of GAAP To Non-GAAP Segment Profit

$597.121.3%

GAAPSegment Profit

$5.6


$602.721.5%

Non-GAAP Segment Profit

Q3 2020

$63.810.9%

GAAPSegment Profit

$8.4


$72.212.3%


$39.38.6%

GAAPSegment Profit

$11.1


$50.411.0%


$485.815.2%

GAAPSegment Profit

$14.2


$500.015.7%


Q3 2021

$43.87.4%

GAAPSegment Profit

$3.2


$47.07.9%


$39.68.2%

GAAPSegment Profit

$5.0


$44.69.2%


Too

ls &

Sto

rage

Ind

ust

rial

Secu

rity

3Q’21 OVERVIEW 21

Reconciliation Of GAAP To Non-GAAP Sales Growth

14%

GAAPSales Growth

0%

Acquisitions

0%

Divestitures

1%

GAAPSales Growth

0%

Acquisitions

1%

Divestitures

5%

GAAPSales Growth

1%

Acquisitions

5%

Divestitures

1%

Currency

13%

Non-GAAP Organic Sales Growth

1%

Currency

1%


1%

Currency

8%


Too

ls &

St

ora

geIn

du

stri

alSe

curi

ty

11%

GAAP Sales Growth

0%

Acquisitions

0%

Divestitures

1%

Currency

10%


Stan

ley

Bla

ck

& D

eck

er

3Q’21 OVERVIEW 22

Organic sales growth 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 foreign currency impacts divided by prior year sales. Operating profit is defined as sales less cost of sales and selling, general and administrative expenses. Management uses operating profit and its percentage of net sales as key measures to assess the performance of the Company as a whole, as well as the related measures at the segment level. Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important indicator of its liquidity, as well as its ability to fund future growth and to provide a return to the shareowners and is useful information for investors. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company’s common and preferred stock and business acquisitions, among other items. Free cash flow conversion is defined as free cash flow divided by net income. The Non-GAAP statement of operations and business segment information, as reconciled to GAAP on pages 12 through 15 of the press release, is considered relevant to aid analysis of the Company’s profit and earnings results aside from the material impact of the acquisition-related and other charges.

Non-GAAP Financial Measures

Documents

Third Quarter 2021 Overview