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04 STANLEY BLACK & DECKER  ANNUAL REPORT
A Powerful Portfolio
Each of our franchises share common attributes: they have world-class
brands and attractive growth characteristics, they are scalable and
defensible, and they dierentiate through innovation.
• Our Tools & Storage business is the tool company to own with its iconic
brands, robust innovation machine, global scale, and broad oering of
power and hand tools and related products across many channels in both
developed and developing markets
• Our Engineered Fastening business is a highly profitable, GDP+ growth
business oering high value-added innovative solutions with recurring
revenue attributes and global scale
• Our commercial electronic security franchise, with its value-added vertical
market oerings and attractive recurring revenue, presents a significant
margin accretion opportunity over the longer term. The Security business,
which has historically provided a stable revenue stream through economic
cycles, is a gateway into the digital world and an avenue to capitalize on
rapid digital changes
As we communicated at our May  Investor Day, we intend to provide
further information on the state of our Security franchise and its fit
within our portfolio in the second half of this year. We are encouraged by
Security’s recent favorable performance trends of improving operating
margins, increasing order rates and stabilizing attrition at targeted levels.
Operational enhancements are beginning to take hold across the segment
and talent upgrades in many portions of the business are starting to pay
dividends in terms of results and building a high performance culture.
M&A Opportunities
Over the last  years, we have invested significant capital into highly strategic
M&A. Over the next few years, we expect to deploy approximately % of
our excess capital to acquisitions, with a focus on further strengthening
our leading Tools & Storage franchise and pursuing industrial transactions
in Engineered Fastening and other areas. While further consolidation of the
electronic security sector remains a potential long-term strategy for that
business, our appetite for that will be based on our determination of the
future fit of Security within our portfolio.
SFS 2.0
In , we launched SFS ., the next generation of the Stanley Fulfillment
System, creating a more powerful operating system to enable sustained
above-market organic growth and margin expansion with high asset
eciency. The expanded SFS . will transform our Company by focusing
our enterprise on the following five key pillars:
• Core SFS, which targets asset eciency, remains fundamental to our operating
system and despite the significant advances we have made in improving our
working capital turns and free cash flow generation, opportunities still remain
for further working capital improvements and supply chain eciency to
+6%
ORGANIC REVENUE
GROWTH IN 2015
22%
16%
9%
53%
EMERGING
MARKETS
EUROPE
R.O.W.
U.S.
% OF  REVENUES
2015 GLOBAL PRESENCE