The Stanley Black & Decker 2009 Annual Review

The Stanley approach to growth

Since 2002, Stanley has spent approximately $2.8 billion on nearly 60 acquisitions, primarily focused on the Security segment. In 2009, Stanley continued its growth, both organically and via acquisition. We announced our largest transaction to date, the combination with Black & Decker to form Stanley Black & Decker, an $8.5 billion global industrial leader. This combination provides us with a stronger platform across all three of our core segments and opens up new, exciting growth opportunities for the future.

The core tenets of Stanley's approach to growth following the completion of the Black & Decker combination are the same as they have been since 2004. We remain committed to being selective and operating in markets where:

• Brand is meaningful
• Value proposition is definable and sustainable through innovation
• Global cost leadership is achievable

Stanley's 3-Pronged Growth Strategy For Building A Diversified Industrial Company

1. Continuously strengthen the core business portfolio
   
   • Continue to pursue time-tested operational formula
   • Brand Support
   • Innovative New-Product Development
   • 2-3%+  Annual Productivity Target
   • Utilize SFS for Differentiated Service Levels
   • Pursue Small Bolt on Acquisitions to Extend Reach and Grow Market Share
2. Build out 5 major growth platforms:
   • Electronic Security
   • Mechanical Security
   • Healthcare
   • Infrastructure
   • Engineered Fastening
3. Drive hard into emerging markets:
   • China
   • Southeast Asia
   • Middle East
   • Eastern Europe
   • Brazil/Latin America (Expanded opportunities to grow Stanley's presence through the channels already forged and established by Black & Decker)

Time-tested integrations:
This growth strategy is further bolstered by our time-tested integration process, which we have honed through nearly 60 acquisitions since 2002. This process includes unwavering discipline, protecting the core business, remaining focused on the interests of employees and customers, and following through on the value and thesis of the deal.

Learn more about some of our integration success stories:

• CDIY integration success stories
• Industrial integration success stories
• Security integration success stories

Download a full copy of the 2009 Stanley Black & Decker Annual Report To Shareholders, which includes the Letter to Shareholders, Stanley Financial Summaries and the Stanley 10-K. You can also download a copy of the 2009 Black & Decker 10-K.