Black & Decker 2013 Annual Report Download - page 8

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06
of dividends and repurchases. Over the
last 10years, we have transformed and
diversified the portfolio, building a world
class stable of brands and a ten-year
Total Shareholder Return (TSR) of close to
180%, nearly twice that of the S&P 500.
The Stanley Fulfillment System
SFS represents a competitive advantage,
involving all functions and employees
within the Company. SFS starts and ends
with the customer and has over time
evolved into a mindset as well as a
business system, innovating how work
gets done to deliver value to our
customers and shareholders better and
faster. SFS, with its five key pillars of
Sales & Operations Planning, Operational
Lean, Complexity Reduction, Order-
To-Cash Excellence and Global Supply
Management, is key to our ability to excel
in increasing efficiencies, integrating
acquisitions and growing our free cash
flow. We are making progress towards our
goal of achieving 10 working capital
turns as we continue to unlock significant
value goingforward.
Summary
Our objectives remain unchanged —
to create a diversified industrial
business with $15billion of revenues,
4–6% organic growth, greater than 15%
operating margin, 12–15% cash flow
return on investment, 10working
capital turns, and greater than 20% of
our revenue from emergingmarkets.
We are operating from a position of
strength — we have tremendous financial
resources and leadership capabilities —
our balance sheet, investment grade
credit rating, cash flow generation,
liquidity, and confidence that we are on
the right path gives us optimism for the
future. We have an exceptionally strong
strategic position with our brands,
including market share, scale, value
proposition, commitment to innovation,
cost leadership, and of course, our
employees, representing our number one
asset. We have the operating rhythms,
the Centers of Excellence, and the
Stanley Fulfillment System. 2013 was a
challenging year, but we have learned
from it and look to 2014 and beyond as a
time to outperform onceagain.
March 11, 2014
New Britain, CT
James M. Loree
President & Chief Operating Officer
John F. Lundgren
Chairman & Chief Executive Officer
Vision
$15B
In Revenue
4
–
6%
Organic Growth
>15%
Operating Margin
12
–
15%
Cash Flow Return on Investment
10
Working Capital Turns
>20%
Revenue in Emerging Markets
Stanley Black & Decker 2013 Annual Report