/$%'%&2 3$04%*#,+" 2$0(*5 2013 #&&6#+ $"30$*

!"#$%&$"'%"(.)*#&+"!,+#-.#&//"-."$.-01 As we build on our commitment to sustainability, FRONT COVER: Upper Left: The D(WALT Cordless Framing we have continued with a smaller page count Nailer frees professionals from gas combustion and can drive 3.5” or 90mm framing nails all day on a single for this year’s Annual Report, a tradition we charge. Upper Right: With the opening of a new power started in "##$. tools manufacturing plant in the USA, representing the first significant investment in production and delivery of power Visit yearinreview.stanleyblackanddecker.com tools in the U.S. since the original D(WALT launch in 1992, to view videos and pictures that bring exciting D(WALT tools celebrate a living legacy of American pride— aspects of the Stanley Black & Decker story born in the USA and built in the USA. Lower Left: STANLEY Engineered Fastening’s T Series—a next generation stud to life, to explore our financials, review our welding system—delivers improved cycle time, advanced sustainable practices, and to read about our networking capability and increased flexibility. Lower businesses, our brands and our plans for growth. Right: The STANLEY EL Series Electronic Lock is an afford- able option for smaller businesses that need to limit and Stanley Black & Decker was named to the Carbon control access both internally and externally. INSIDE Disclosure Project (CDP) S&P 500 Climate FRONT COVER: Top: The STANLEY FATMAX AntiVibe "-Piece Performance Leadership Index (CPLI) for the Framing Hammer hits like a hammer that is 30% heavier while reducing vibrations for comfort and control. Bottom: 1st time in 2013 within the Industrials Sector. Automotive Brake Line Clips from STANLEY Engineered The CDP allows our stakeholders to assess Fastening are an integral part of cars and trucks around our corporate preparedness for changing the world. INSIDE BACK COVER: Top: The revolutionary market demands and emissions regulations. EyeSwipe-Nano TS system verifies identities on the fly. Bottom: BLACK+DECKER Steam Mops deliver a deep Inclusion on the CPLI acknowledges our ability down, hassle-free clean that kills 99.9% of germs. BACK to measure, verify, manage and reduce our COVER: Upper Left: STANLEY Oil & Gas’s M-400 Welding energy demand and resultant carbon footprint. System is a revolutionary, lightweight, multi-process, multi-power-source, on-board wire feed, single-torch Additionally, Stanley Black & Decker remains on pipe welding system. Upper Right: STANLEY Healthcare’s the 2013 North America Dow Jones Sustainability Patient Flow solution uses Wi-Fi enabled Real-Time Location System (RTLS) technology to monitor the status Index for the third year in a row, in recognition and location of patients at all times. Lower Left: The HP of our economic, environmental and social TWIN8 revolutionizes the way hydraulic tools are used— performance. Stanley Black & Decker was powering two hydraulic power tools at once. Lower Right: recast to the Machinery and Electrical STANLEY White Series Measuring Tape was designed to meet the demands of users across Asia, and has been met Equipment sector for the first time in 2013, with enthusiastic customer and end-user response. a considerably larger sector than Durable Household Goods, our previous classification. In 2013 Stanley Black & Decker continued the application of Stanley Fulfillment System (SFS) principles and delivered year-over- year improvements in environmental waste reduction, energy conservation and water reduction. Our global manufacturing and distribution centers reported:

• %&% decrease in energy consumption intensity

• %'% decrease in CO2e emission intensity • Over "#% decline in water consumption intensity • Over %'% decrease in waste generation intensity Review these accomplishments and all our sustainability results at www. stanleyblackanddecker.com/company/ sustainability. Letter to Shareholders left John F. Lundgren Chairman & Chief Executive Officer

right James M. Loree President & Chief Operating Officer

Our mission remains to continue to invest in building world-class franchises with sustainable strategic characteristics that create exceptional shareholder value, a model that has proven highly successful for us over the course of the last decade.

In 2013 Stanley Black & Decker faced !"#$ Summary of Results a number of challenges, testing our • Total revenues increased 8% to ability to generate financial returns at $11.0 billion, with organic growth of 3% our historical levels. The success of our organic growth initiatives, solid • Earnings per share was $4.98* growth across our core CDIY and IAR compared to $4.76* in 2012 tools businesses, strong performance • Free cash flow totaled $854* million within Stanley Engineered Fastening and the dividend was increased during and Oil & Gas, and excellent progress the year integrating Infastech were overshadowed by weak operating performance within • Working capital turns increased to our Security segment and significant 8.0 from 7.6, as the impact of the emerging markets currency headwinds. Stanley Fulfillment System continued to As a result, we have adopted a series drive gains in operating efficiencies of actions designed to address these • During the year we invested approx- challenges head-on, and enter 2014 imately $900 million in acquisitions with a clear set of priorities to increase most notably relating to Infastech operating efficiencies, drive profitable and GQ organic growth, improve our cash flow return on investment (CFROI) and increase • Our Security segment underperformed value for shareholders through an against both our expectations in 2013 enhanced capital return program. and the business’ potential; improving Longer-term, our mission remains to our Security segment is one of our continue to invest in building world-class key near-term operational priorities as franchises with sustainable strategic we move into 2014 and beyond characteristics that create exceptional * Excluding charges and payments shareholder value, a model that has proven highly successful for us over the course of the last decade.

!" Lessons Learned – Security as the replacement and upgrade of the majority of the sales force during the past As we pride ourselves on continuous two years. improvement, we looked at the challenges Revenue Growth in "$!# faced in 2013 as an opportunity to better In North America, the majority of the 2013 prepare the Company for the future. The operational performance issues centered performance of our Security segment fell around taking on too many changes at significantly below our expectations in once, primarily in our electronics and both Europe and North America in 2013. commercial locks units. The changes we It has been and will continue to be a implemented in these businesses resulted in a temporary setback to the overall priority for us to learn from what went % +Total Revenue$ Growth wrong and lay a new foundation for sustain- performance of North American Security. able, long-term success in Security. However, we firmly believe that our North American Security management team is In Europe, we were impacted by the oper- on top of the issues, as evidenced by the ational underperformance of the legacy steady increase in operating margins from Niscayah business, compounded by 14% in the first half of 2013 to 16% in the a weak macro-economic backdrop. We second half of the year. We fully expect worked diligently to implement important operating margins in our North American remedies during the year which centered Security business to continue to trend on three primary areas: towards their more historical high-teens !. Centralized Operating Model—we levels as we move through 2014. are restructuring the operating model We are bringing all the necessary of the legacy Niscayah business resources to bear to improve the Security so that we have full operational control business and are confident in our ability of branch activity at the country to succeed. Stanley Security has one level and can focus efforts on driving of the best global footprints in the world, productivity, field efficiency, and margin is the only integrator with scale in both improvement actions. mechanical and electronic security, and ". Talent—we upgraded under- carries a high margin recurring revenue performing management in several key model with low capital intensity. We positions at both the headquarters believe that Security is a valuable part of and country levels. our portfolio which will generate returns to shareholders consistent with our #. Sales Orientation—“Hunters” versus long-term financial objectives, ultimately “Farmers”—the Niscayah organization delivering organic growth and above line was overly dependent on “farming” average operating margins. referrals from their former owner, which necessitated a culture change as well

!# Stanley Black & Decker #!"$ Annual Report Near Term Focus – Operational !"#$ Business Highlights Efficiency and Capital Allocation By continuing to invest for the long-term, "$!# Global Presence In addition to tackling the problems within we were able to realize many successes in %% OF &'() REVENUES* Security, we remain steadfast in our 2013. Highlights and wins include: commitment to increase both near- and • Integrating the Infastech acquisition D long-term returns for our shareholders. to position the Stanley Engineered To ensure that we achieve our targeted Fastening business to exceed all C operating leverage, we are executing a financial commitments relating to this A cost reduction program, expected to acquisition, including sales, operating generate $85 million of savings in 2014, margin, cost synergies and cash flow $45 million of which will be in our return on investment. B Security business. The remaining savings • Assembling a retooled emerging markets represent surgical cuts spread across team in rapid fashion, from concept the rest of the business which will allow to implementation within 18 months, A: U.S. '%% us to improve our operating leverage. adding 300 people on the street, B: Europe "&% In terms of capital allocation, we plan creating two new product SBUs, and C: Emerging Markets !%% to return approximately $1.5–$1.7 billion introducing over 100 new locally R.O.W. D: !$% of capital to shareholders through 2015 designed products during the year. by extending our pause in strategic We expect to introduce another M&A activity, continued dividend growth, 400 new products in 2014 and will have and repurchasing up to $1 billion in stock close to 800–1,000 new products by during that period. Beginning in 2016, 2015 in the mid-price point space within we anticipate returning to our historical the emerging markets, a profitable, 50/50 long-term capital allocation strategy, high growth segment representing where approximately 50% of capital will approximately 70% of the market which be returned directly to shareholders we have heretofore not addressed. through dividends and share repurchases, • Successfully closing our acquisition and approximately 50% will be invested of GQ in China, a highly strategic in M&A activities over time. element of our emerging markets These actions combined with modest debt growth strategy. deleveraging are expected to improve capital • Continuing to build momentum behind returns to value accretive levels for our the overall organic growth initiative Company and improve our cash flow return as we strive to transform this initiative on investment by 250 basis points through from five discrete programs to an 2015. Our goal is to maximize shareholder embedded core competency within value while continuing to position the the organization. franchise for long-term outperformance.

!$ Stanley Fulfillment System mon Platfor (SFS) Com ms

C E O V N O T R Sales & R P Operational O M Operations L I Lean Planning

Breakthrough Customer Value Order-to-Cash Complexity Excellence Reduction

Global Supply Management

Co s mmon Platform

EXPAND

• Finally, constantly using the Stanley and delivery of power tools in the U.S. Fulfillment System (SFS) to drive asset since the original D+WALT launch in efficiency and customer satisfaction. 1992. CDIY’s European business also We generated 8 working capital turns performed well, with 2% organic growth in 2013, up from 5.9 at the end of 2010 in a stagnant tools market, delivering and 4.5 back in 2006 while dramatically approximately 300 basis points of gross improving customer facing metrics— margin expansion and 150 basis points a great example of how we can turn an of operating margin improvement. opportunity into a core competency. Stanley Oil & Gas had an impressive Within CDIY, there were some truly note- year, capitalizing on the North America worthy accomplishments. During 2013, onshore market rebound and impressive CDIY posted 4% organic growth with share gain in the offshore market. They 5–6% growth in each of the second, third posted 30% organic growth and achieved and fourth quarters. This progress was a 68% operating margin expansion. primarily fueled by new products, which The team did an excellent job combining generated $300 million of new revenue the technological leadership of CRC during the year. CDIY generated another with Stanley Black & Decker’s operating $85 million of revenue synergies from disciplines and is well positioned for the Black & Decker merger in 2013, a solid 2014, and, based on projected bringing their total to $300 million and pipeline construction activity, an even the Company total to $370 million. stronger 2015. CDIY also developed and executed a Stanley Engineered Fastening recorded “Built in the USA” power tool manufac- 49% revenue growth, 3% of which was turing plant initiative using materials organic and the rest from Infastech, and from all over the globe. This initiative $61 million of positive operating margin moved from concept to production growth. This business has now posted within 12 months, representing the first four consecutive record years in sales, significant investment in production

!% Stanley Black & Decker #!"$ Annual Report A Global Company with American Roots – A Living Legacy of American Pride Our company was founded in the United States of America over 150 years ago. While we have grown into a global diversified industrial solutions company, America continues to be an important part of our world.

Born in the USA. Built in the USA. Land of the Free, Tools of the Brave Wounded Warrior Project D+WALT is a global brand with American D+WALT has become not just a leader We are partnering with Wounded Warrior roots. With our new plant in North Carolina, in pro-grade tools, but a true statement Project®—known for healing wounds, we are expanding the number of D+WALT of American ingenuity and pride. Visit visible and invisible—to help serve and tools we build in the USA. toolsofthebrave.com to see how. support America’s injured veterans.

operating margins, and working capital and where we can achieve global cost turns—a model of consistency. leadership. In time, we will also look to once again utilize our core competency Other key highlights during the year in M&A to build our franchises by adding from our Industrial & Automotive higher growth, higher margin businesses Repair business include the results and continuing to consolidate the indus- of CribMaster, which delivered 70% tries in which we operate, building out our organic growth with above line operating growth platforms and our growth verticals, margins, and posting its and importantly, selectively investing 16th consecutive quarter of organic in differentiated technologies. We’ve growth, topped off by 8% growth in the recently seen some of the benefits of this fourth quarter. with our iris biometric identification Positioned for Profitable solution, in partnership with eyelock, and Organic Growth AeroScout Real Time Location System (RTLS) technology. As we move into 2014, our long-term strategy and financial objectives remain Taking a step back, Stanley Black & intact. Our mission is to build world- Decker has achieved its success by class franchises that create exceptional building franchises that are resilient and shareholder value. To do so, we are sustainable. From where we sit today, committed to achieving sustained organic we are #( in Tools and Storage, #& in growth outperformance by investing Commercial Electronic Security Services in our business, leveraging our scale in and #& in Engineered Fastening. We’ve emerging markets and nurturing our grown our revenues an average of growth culture. We will continue to selec- 20% over the last ten years, averaged tively operate in markets where brand greater than 125% free cash flow is meaningful and powerful, the value conversion over the past five years, and proposition is definable, sustainable, returned over 50% of our cash generated and can be improved through innovation, to shareholders since 2000 in the form

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

Our objectives remain unchanged — John F. Lundgren to create a diversified industrial Chairman & Chief Executive Officer business with $15 billion of revenues, 4–6% organic growth, greater than 15% operating margin, 12–15% cash flow return on investment, 10 working capital turns, and greater than 20% of James M. Loree our revenue from emerging markets. President & Chief Operating Officer

!' Stanley Black & Decker #!"$ Annual Report Financial Highlights**

%MILLIONS OF DOLLARS, EXCEPT PER0SHARE AMOUNTS* "$!#(!) "$!" (!) "$!! (!) "$!$ (!) "$$*

SWK Revenue $ !!,$$!." $ (',(,1.2 $ 2,)1/.- $ 1,,,).$ $ ),,)-./ Gross Margin – $ $ #,*&".' $ ),1&-.( $ ),,1&.& $ &,$(-.( $ (,)2/.( Gross Margin – % #&.$% )/.1% )1.'% )1.$% ,'./% Working Capital Turns +.$ 1./ 1.) -.2 1.2 Free Cash Flow* $ +,' $ (,'-2 $ (,'', $ 2)/ $ ,,) Diluted EPS from Continuing Operations $ '.*+ $ ,.1/ $ ,.// $ ).-, $ &./&

CDIY Revenue $ ,,'+!.! $ -,($2.2 $ -,'').& $ ,,(,,.' $ (,&-,.2 Segment Profit – $ $ +!!.$ $ 1/&./ $ /-,.1 $ -,&.2 $ ()1., Segment Profit – % !'.+% (,.1% ().(% ().(% ('.2%

Industrial Revenue $ #,$*%., $ &,--1.$ $ &,,2&./ $ (,$$&.& $ $$(.& Segment Profit – $ $ '&!.$ $ ,&&.& $ ,(-.1 $ &$&., $ 22., Segment Profit – % !'.*% (/.-% (/.1% (-.'% ((.)%

Security Revenue $ ",'"".& $ &,,''.& $ (,$$'.1 $ (,,(1./ $ (,&22.- Segment Profit – $ $ "%&.% $ )-,.' $ )(&./ $ &-&.( $ &1$.2 Segment Profit – % !!.'% (,.1% (/./% (1.$% &(.-%

%(* Excludes merger and acquisition-related charges and payments. * Refer to the inside back cover. ** During 2013, the Company classified two small businesses within the Security and Industrial segments as held for sale based on management’s intention to sell these businesses. The business within the Industrial segment was sold in February 2014. The results from 2009–2012 were recast for these discontinued operations for comparability.

!( !""'(!"#$ CAGR: "$!# Scorecard #*% $ ! , #$% $ ! , #"$ $ % . &' $ . %& $ ! , #$% $ . && $ ! , %&# $ ! , ##& $ %'( $ #$% $ ( . )% $ ( . )$ $ ! , '#% $ " . #$ $ ' . %" $ ' . &' $ &&' $ #') $ # . !# '( !' !! !" !" !" #! ## #' !" #% !# !! !" !"

Adjusted EBITDA EPS Free Cash Flow(c) (Continuing Operations)(a) (Continuing Operations)(b) %$ MILLIONS* %$ MILLIONS* + % & % &%' ((* % '%(

($! & " % $ % (!! ! ,! +! #&

%! $+ % #%! , % $! # % #%& ! )%* %

#$! )(* % #$! !" (! (( ($ !" !" %! %% %$ !" Total Sales Growth Organic Sales Growth LONG0TERM OBJECTIVE: +('.(&% LONG0TERM OBJECTIVE: +,./%

!""'(!"#$ CAGR: +$)% # . $ # . ' # . $ $ !# . # . % $ !# . % !% . & % $ !# . ( . ' $ ( . # !! . ' % !# . ! % !# . " % # . $ % $ ' .

&' !& !! !" !" #& !# !! !" !" #$ !# !! !" !"

Working Capital Turns(d) Average Capital Employed(e) Cash Flow Return on %$ BILLIONS* Investment(f)

(a) “EBITDA” (earnings before interest, taxes, depreciation and amortization) is a non-GAAP measurement. Management believes it is important for the ability to determine the earnings power of the Company and to properly value the Company, due to current high levels of non-cash expenses related to recent acquisitions. The Company’s 2013 results exclude $394 million (pretax) of charges related to merger and acquisition-related charges and cost containment actions, as well as the charges associated with the extinguishment of debt during the fourth quarter of 2013. The Company’s 2012 results exclude $442 million (pretax) of charges related to merger and acquisition-related charges, the charges associated with the $200 million in cost actions implemented in 2012, as well as the charges associated with the extinguishment of debt during the third quarter of 2012. In 2011 and 2010, EBITDA excludes merger and acquisition-related charges of $236 million and $478 million, respectively, primarily associated with the Black & Decker merger and Niscayah acquisition.

%MILLIONS OF DOLLARS* "$!# "$!" "$!! "$!$ "$$*

Net earnings from continuing operations $ ,!+ $ '&, $ &$% $ !,! $ "!! Interest income %()* %('* %&1* %2* %)* Interest expense (/' (,, (,' ((' /, Income taxes /2 1$ -& (2 ,1 Depreciation and amortization ,,( ,'- )/1 )', ($2 EBITDA from continuing operations $ !,!%, $ !,$+" $ !,!#* $ ,%, $ ,$+ Merger and acquisition-related charges #*' 442 236 478 — Adjusted EBITDA $ !,,&* $ !,,"' $ !,#%, $ !,$,# $ ,$+

(b), (c), (d), (e) and (f) refer to the inside back cover.

!) Stanley Black & Decker #!"$ Annual Report Comparison of ,-Year Set forth below is a line graph comparing the yearly percentage change in the Company’s Cumulative Total Return Among cumulative total shareholder return for the last five years to that of the Standard & Poor’s 500 Index (an index made up of 500 companies including Stanley Black & Decker) Stanley Black & Decker, and the Peer Group. The Peer Group is a group of eight companies that serve the S&P ,$$ Index and Peer Group same markets the Company serves and many of which compete with one or more of the Company’s product lines. Total return assumes reinvestment of dividends.

Comparison of !-Year Cumulative Total Return !VALUE OF $"## INVESTMENT AT YEAR END$

$%&#

$%##

$'&#

$'##

$"&#

$"## #( #) "# "" "' "%

THE POINTS IN THE ABOVE TABLE ARE AS FOLLOWS: "$$+ "$$* "$!$ "$!! "$!" "$!#

Stanley Black & Decker $ !$$.$$ $ !,$.&$ $ "$$.$% $ "$%.!# $ ""&.&+ $ "&!.!' S&P -'' (''.'' (&&.-- (,(.'( (,).21 (/,.&& &&'.&( Peer Group (''.'' ()).'( (1&.$1 (-,.$$ &(-.$2 )().,,

Assumes $100 invested on January 1, 2009, in the Company’s common stock, S&P 500 Index and the Peer Group. The Peer Group consists of the following eight companies: Eaton Corporation plc, , Illinois Tool Works, Inc., Ingersoll-Rand Company, Masco Corporation, Newell Rubbermaid, Inc., Snap-On Incorporated and The Sherwin-Williams Company. Prior to 2013, the Company included Cooper Industries, Inc. in its Peer Group. Due to the acquisition of Cooper Industries, Inc. by Eaton Corporation in November 2012, the results of Eaton Corporation have been included in the Peer Group in place of Cooper Industries, Inc. for all years. Prior to 2010, the Company included The Black & Decker Corporation in its Peer Group. Due to the merger on March 12, 2010, the results of The Black & Decker Corporation are now included in the Company’s consolidated results. As a matter of consistency, the total returns of The Black & Decker Corporation have been excluded from all prior years.

New York Stock Exchange Certification ANNUAL CEO CERTIFICATION %SECTION )')A.(&%A** As the Chief Executive Officer of Stanley Black & Decker, and as required by Section 303A.12(a) of the New York Stock Exchange Listed Company Manual, I hereby certify that as of the date hereof I am not aware of any violation by the Company of NYSE’s Corporate Governance listing standards, other than has been notified to the Exchange pursuant to Section 303A.12(b) and disclosed on Exhibit H to the Company’s Domestic Company Section 303A Annual Written Affirmation.

John F. Lundgren CHAIRMAN & CEO May 7, 2013

The Company has filed the certifications required by Section )'& of the Sarbanes-Oxley Act of 2002 as Exhibits 31(i)(a) and 31(i)(b) to its Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 20, 2014. !* At-A-Glance

Construction / Do-It-Yourself Our trusted hand and power tools are known worldwide for being tough, innovative and up to the task. With robust storage solutions to match, we serve both the pro and the do-it-yourselfer who wants to work like one.

LEADING BRANDS

STANLEY D,WALT BLACK+DECKER Porter Cable Powers GQ Tools

BUSINESS HIGHLIGHTS

6% overall growth, 4% organic, with growth in every region and business unit.

Incremental $300 million of revenues from new product introductions.

“Built in the USA” Program—from concept to execution in less than 12 months. Represents the first significant investment in the production and delivery of power tools in the U.S. since the original D,WALT launch in 1992.

9% organic revenue growth in Global Emerging Markets.

2X growth in eCommerce revenues.

4X better than the industry average for Total Recordable Incident Rate.

"! Stanley Black & Decker #!"$ Annual Report Industrial Security We build the solutions that keep your world running — We deliver peace of mind with advanced electronic from leading tools, tool tracking and productivity safety, security and monitoring solutions, innovative solutions for industrial and automotive repair, to pipeline locks and automatic doors, and for healthcare providers, construction and hydraulic tools, to preferred engineered sophisticated patient safety, asset-tracking and fastening solutions. productivity solutions.

LEADING BRANDS LEADING BRANDS

Industrial & Infrastructure Security Automotive Repair STANLEY Oil & Gas STANLEY Security Facom STANLEY LaBounty Sonitrol MAC STANLEY Hydraulics Best Access Systems STANLEY Dubuis PACOM Precision Hardware CribMaster Engineered Fastening Vidmar & Lista Storage Healthcare STANLEY Engineered Fastening & Workspace Solutions STANLEY Healthcare AeroScout Industrial AeroScout EXPERT InnerSpace USAG Hugs Wander Guard BUSINESS HIGHLIGHTS

Launched Proto Air Tools and Mac Tools Cordless lines of automotive BUSINESS HIGHLIGHTS repair power tools. $60M of orders from the Security Verticals initiative. Significant Almost 70% organic growth in CribMaster driven primarily by the MRO projects with Tiffany & Co., , Amazon, Motorola Mobility vending market as a result of being selected as exclusive vending and the U.S. Department of Veterans Affairs, among others. provider by 8 of the top 10 MRO distributors in North America. Enterprise access control platform for 71 sites of the Saint Paul ProLock—the first field-reconfigurable electronic lockers on the market— Public School system, the largest school system in Minnesota. Sole became CribMaster’s #3 selling product in just four months time. source electronic security provider for the City of Brockton School Department, New England’s largest school system. Also sole source 100% growth in AeroScout smart tools and storage solutions. provider for the University of Houston and for SUNY Geneseo. 30% organic growth in Oil & Gas led by onshore pipeline construction STANLEY Access Technologies delivered innovative ballistic door, rebound in North America and growth within offshore fueled by organic storefront, security revolver and turnstile solution for the Federal growth investments. Reserve Bank of Chicago. Global launch of STANLEY LaBounty MDP (Mobile Demolition Processors) Opened STANLEY Security Discovery Center in Indianapolis, IN and for concrete recycling. the STANLEY Healthcare Experience Center in Waltham, MA. STANLEY Engineered Fastening automotive continued to grow in excess The Kingdom of Saudi Arabia Ministry of Health selected Hugs® on Wi-Fi of global light vehicle production. for use in 156 hospitals to help protect more than 350,000 newborns Three STANLEY Engineered Fastening manufacturing locations awarded every year. General Motors Supplier Quality Excellence Award for 2013. Over 80% of U.S. acute care hospitals rely on solutions from 6% organic revenue growth in Global Emerging Markets for the Industrial STANLEY Healthcare. segment as a whole.

"" The Stanley Black & Decker Leadership Team

BOARD OF DIRECTORS MANAGEMENT TEAM

John F. Lundgren John F. Lundgren Barbara Popoli Chairman & Chief Executive Officer, Chairman & Chief Executive Officer Vice President, Transformation & President, Stanley Black & Decker Stanley Infrastructure Solutions James M. Loree George W. Buckley President & Chief Operating Officer Jaime Ramirez Retired Executive Chairman, Senior Vice President & President, 3M Company Donald Allan, Jr. Global Emerging Markets Senior Vice President & Patrick D. Campbell Chief Financial Officer James Ray, Jr. Retired Senior Vice President & President, Industrial & Automotive Repair, Chief Financial Officer, )M Company Jeffrey D. Ansell North America Senior Vice President & Group Executive, Carlos M. Cardoso Construction & DIY Jason Santamaria Chairman, President & President, Stanley Healthcare Chief Executive Officer, Michael A. Bartone Kennametal, Inc. Vice President, Corporate Tax Ben S. Sihota President, Emerging Markets Group Robert B. Coutts Bruce H. Beatt Retired Executive Vice President, Senior Vice President, JoAnna Sohovich Lockheed Martin Corporation General Counsel & Secretary President, Industrial & Automotive Repair

Debra A. Crew D. Brett Bontrager Steven J. Stafstrom President, PepsiCo Americas Beverages Senior Vice President & Group Executive, Vice President, Operations, Stanley Security—Americas & Asia CDIY & Emerging Markets Benjamin H. Griswold, IV Chairman, Brown Advisory James Cannon William Taylor President, Stanley Oil & Gas President, Fastening & Accessories Anthony Luiso Retired President—Campofrio Spain, Craig A. Douglas Michael A. Tyll Campofrio Alimentacion, S.A. Vice President & Treasurer President, Stanley Engineered Fastening

Marianne Miller Parrs Rhonda Gass Joseph R. Voelker Retired Executive Vice President & Vice President & Chief Information Officer Senior Vice President, Human Resources Chief Financial Officer, International Paper Company Massimo Grassi Gregory S. Waybright President, Stanley Security—Europe Vice President, Robert L. Ryan Investor & Government Relations Retired Senior Vice President & Grethel Kunkel Chief Financial Officer, Medtronic, Inc. President, Latin America John Wyatt President, Construction & DIY, Europe & Australia/New Zealand

"# Stanley Black & Decker #!"$ Annual Report

FINANCIAL AND INVESTOR COMMUNICATIONS (d) Working Capital turns are computed as year-end working capital (accounts receivable, inventory, accounts The Stanley Black & Decker investor relations department payable, and deferred revenue) divided by fourth quarter provides information to shareowners and the financial sales, annualized. community. We encourage inquiries and will provide services (e) Average Capital Employed is computed by dividing the which include: 2-point average of debt and equity. • F ulfilling requests for annual reports, proxy statements, (f) CFROI is computed as cash from operations plus after-tax forms 10-Q and 10-K, copies of press releases and other interest expense, divided by the 2-point average of debt Company information. and equity. • Meetings with securities analysts and fund managers. Contact the Stanley Black & Decker investor relations CAUTIONARY STATEMENTS UNDER THE PRIVATE SECURITIES department at our corporate offices by callingGreg Waybright, LITIGATION REFORM ACT OF 1995 VP, Investor & Government Relations at (860) 827-3833 Statements in this Annual Report that are not historical, including, or by mail at 1000 Stanley Drive, New Britain, CT 06053. but not limited to, those that often contain words such as “expect,” We make earnings releases available online on the Internet “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” or “will,” on the day that results are released to the news media. are “forward-looking statements” and subject to risk and Stanley Black & Decker releases and a variety of shareowner uncertainty. The results that are expressed or implied in such information can be found at the Company’s website: statements involve inherent risks and uncertainties that www.stanleyblackanddecker.com. could cause actual outcomes and results to differ materially from those expectations, including, but not limited to, the FINANCIAL HIGHLIGHTS AND SCORECARD FOOTNOTES risks, uncertainties and other factors set forth or referred to (b) The Company has excluded the 2013, 2012, 2011, and under Item 1A Risk Factors and Item 7 MD&A of the Company’s 2010 after tax merger and acquisition related charges of 2013 Annual Report on Form 10-K that is part of this Annual $273 million ($1.72 of diluted EPS), $329 million ($1.97 Report, and any material changes thereto set forth in any of diluted EPS), $186 million ($1.09 of diluted EPS), and subsequent Quarterly Reports on Form 10-Q, as well as those $380 million ($2.53 of diluted EPS), respectively, in the contained in the Company’s other filings with the Securities calculation of diluted EPS. These amounts have been and Exchange Commission. The Company undertakes no excluded because the Company believes these are better obligation to publicly update or revise any forward-looking indicators of operating trends when analyzing diluted EPS, statements to reflect events or circumstances that may arise due to the unusually large magnitude of these charges after the date hereof. and the fact that they are non-recurring. Therefore, the Visit www.yearinreview.stanleyblackanddecker.com to view Company has provided these measures both including and videos and pictures that bring exciting aspects of the Stanley excluding such charges. Black & Decker story to life, to explore our financials, and to (c) Free Cash Flow = Net cash provided by operating activities read about our businesses, our brands and our plans for growth. minus capital expenditures. In 2013, 2012, 2011, and 2010 free cash flow excludes $352 million, $479 million, $307 million, and $382 million, respectively, of merger and acquisition related charges and payments incurred primarily in connection with the Black & Decker merger and acquisitions of Niscayah and Infastech. Such normalized free cash flow is considered a meaningful metric to aid the understanding of the Company’s cash flow performance aside from the material impact of these merger and acquisition related payments. Refer to page 30 in the enclosed 10-K for the reconciliation of operating cash flow to free cash flow.

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