stanley engineered fastening

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2015 INVESTOR DAY STANLEY ENGINEERED FASTENING JoAnna Sohovich President, Stanley Engineered Fastening

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Page 1: STANLEY ENGINEERED FASTENING

2015 INVESTOR DAY

STANLEY ENGINEERED FASTENING

JoAnna Sohovich President, Stanley Engineered Fastening

Page 2: STANLEY ENGINEERED FASTENING

2015 INVESTOR DAY

STANLEY Engineered Fastening Business Overview

2

Value Proposition

Business Model $1.6B

Revenue ~18%

Operating Margin

35%

30%

35%

Americas Europe Asia

Geographic

55% 28%

14%

3%

Auto Ind Electronics Other

End Market

OPTIMIZATION

Conversion Of Existing Assembly Technology To Alternatives That

Improve Production Efficiency

INNOVATION

The Development Of New Assembly Technologies That Enable The

Introduction Of High Strength, Lightweight Materials

CUSTOMIZATION

Application Specific Development That Assesses And Replaces

Assembly Technology In Under Performing Areas To Improve

Production Flow And Warranty Performance

Providing OEMs And Their Partners With Innovative, High Quality,

Value-driven Assembly Technology That Results In Improved

Productivity On A Global Basis

2014 Financials

Revenue Mix

Page 3: STANLEY ENGINEERED FASTENING

2015 INVESTOR DAY

+19%

$ Content Per Light Vehicle

3

Three Year Scorecard

+$0.7B Total +7% Avg. Organic

Revenue Growth

+125 BPS +24% CAGR

Operating Margin

+3%

Avg. Organic Industrial

8.9 +56%

Working Capital Turns

+10%

Avg. Organic Auto

Page 4: STANLEY ENGINEERED FASTENING

2015 INVESTOR DAY 4

Market Size And Competitive Landscape

28%

5%

14% 7%

46%

Global Fastener Market - $80B

Highly Attractive Diversified Markets

Automotive

Aerospace

Electronics

Construction

General Industry

~$18B Value Add

Market Segments

Competition

Fasteners

Tools

Tools & Fasteners

~$5B Application

Specific

Most Extensive Portfolio Of Assembly Technology And Engineered Solutions

Page 5: STANLEY ENGINEERED FASTENING

2015 INVESTOR DAY

STANLEY Engineered Fastening

5

$1.6B

• Assembly Technology For Light Vehicle Production

• Plastic Applications That Route Wire Harnesses, Fuel And Brake Lines

• Metal Based Retention Devices That Fasten Interior Trim And Provides Electrical Grounding And Current Management

$0.9B Automotive

• Broad Assembly Technology Offering Provides Multiple Alternatives For OEMs To Drive Productivity

• Concentration On Heavy Truck & Trailer, Aerospace, Defense And Renewable Energy Segments Aligns SEF Technology

With Customer Needs

$0.4B Industrial

• Applications For Micro-Mechanical Fastening Solutions Across Multiple Electronic Segments

• Assembly Technology Suitable For High Speed And Short Life Cycle Products

• Flexible, Asset Light Product Production Aligns With OEM’s Market Strategy

$0.2B Electronics

• Asset Tracking And Management For Manufacturing Production Lines And Capital Intensive Environments

• Inventory Management Systems Focused On Indirect Material And Secure Access-Controlled Vending

• Wi-Fi-Based RTLS Technology That Creates Eco-Systems That Monitor And Analyze Manufacturing Productivity

$0.1B Advanced Industrial Solutions

Page 6: STANLEY ENGINEERED FASTENING

2015 INVESTOR DAY

Automotive – $0.9B

6

• “No-hole” Fastening Technology Is A Flexible, High Production, Welding Of

Studs That Are Used To Route Wire Harnesses, Attach Electrical Components

And Retain Fuel And Brake Lines

• Weight Reduction Is A Priority Across The Industry, As New Regulations Push

For Greater Vehicle Efficiency/CO2 Reduction In The US And Europe

• Self Piercing Riveting System “SPR” Is Used To Structurally Assemble

Aluminum Vehicles To Decrease Weight And Increase Vehicle Efficiency/CO2

» Expand Global Leadership In SWS Equipment With Focus On Aluminum

Welding And Joining For Lightweight Vehicle Development

» Leadership Position In SPR Technology

• Plastic Fasteners Are Applied In Conjunction With Welding Technology To

Provide A Full System Approach And Seamless Interface With OEM’s Product

And Manufacturing Engineering Teams And Their Line Building Partners

Page 7: STANLEY ENGINEERED FASTENING

2015 INVESTOR DAY

Global Electronics – $0.2B

7

Customer & Segment Diversification

• Networking & Interconnect Devices

• Mobile Handset Market • Manufacturing Partnerships

Geographic Presence

• Global Program Management

• Micro-mechanical Application Engineering

• Assembly System Integration And Production Efficiency Focus

High Definition Disc-drive

• Laptops And Intense Memory Requirements

• High Performance Finishes To Enhance Assembly Process And Device Functionality

Climb The Value Chain

• Micro-stampings

• Precision Plastics

• Custom Interconnect

• Application Development And Value Analysis

Electronics Engineered Standards Program –

Speeds Access to Technology

To Drive High-Level Global Projects Global Customer Coordination

Page 8: STANLEY ENGINEERED FASTENING

2015 INVESTOR DAY 8

Emerging Markets – Growth Strategy

Malaysia China India Thailand Poland Brazil

• Accelerate Development Of Emerging Geographic Markets

• Support Global Customers As They Expand Manufacturing

Operations

• Establish Local Commercial And Manufacturing Presence

• Develop Local Customers That Have Global Potential 10% 12%

22% 26% $91

$110

$322

$410

2011 2012 2013 2014

% of Total

Emerging Markets - Revenue

Page 9: STANLEY ENGINEERED FASTENING

2015 INVESTOR DAY

Advanced Industrial Solutions – $0.1B

9

• Leader In Asset Tracking And Inventory Management Solutions In

Production Environments

• Simple Scalable Platform To Manage Indirect Material Inventory

• Global Provider Of Advanced Industrial Technologies

• Enables Efficient Management Of Direct And Indirect Materials In A

Production Environment, Maintenance Intensive And “At Risk” Worker

Safety Locations

• Wi-Fi-Based RTLS Technology

• Creates Eco-systems That Monitor And Analyze Manufacturing Productivity,

Inventory And Transaction Management By Integrating Multi-systems

E

q

u

i

p

m

e

n

t

Indirect Inventory Mgmt

Software and VMI

Enterprise Asset Tracking

And Worker Safety

Passive RFID Antenna

Page 10: STANLEY ENGINEERED FASTENING

2015 INVESTOR DAY

Stanley Engineered Fastening Summary

• STANLEY Engineered Fastening Provides Productivity Solutions To An Increasingly Diversified Industrial,

Automotive And Electronics Customer Base

» Global OEMs That Require Seamless Program Management And Application Development

» Development And Application Of Leading Assembly Technologies

» Extensive Product Portfolio That Drives OEM Productivity And Labor Efficiency

• Solid Track Record Of Highly Profitable Organic Growth

» New Technologies Provide Additional Growth Opportunities In Automotive, Industrial And Electronics Segments

• Well Established Position In Emerging Markets Facilitates Accelerated Growth And Market Penetration

10