Insights into Optimizing Battery Design to Create Value and Improved Performance for Consumer Products

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1 Insights into Optimizing Battery Design to Create Value and Improved Performance for Consumer Products Lisa King Sr. Manager, Battery Technology 34 th International Battery Seminar Ft. Lauderdale, FL March 23, 2017

2 Overview Stanley Black and Decker is the home of market-leading storage, hand tool, consumer home, outdoor and tradesman products, professional power and automotive tool brands Research feedback shapes the innovation, design and physical testing of the products to be launched into the market. The shift from Ni-Cad to Li-ion technology has enhanced customer-desired features such as convenience, portability, longer run time, shorter charge time and power

3 Battery Technology at SBD Over 150 m 2 Lab for Cell & Pack Test Cell Supplier Development Technology Assessment Cell Construction & Failure Analysis Charger & Tool Application Risk Evaluation and Testing Cell and Pack Abuse, Performance & Life Evaluation and Qualification Provide internal support to Packs, Charger, Motors, Reliability, Compliance, Quality, Innovation, Global Supply Chain teams Continued Area of Growth & Investment If a Stanley Black & Decker branded product has a battery cell in it, our team touches it

4 Power Cell System Safety Considerations Cell Design Current Interrupt Device (CID) Vent Fusible positive tab Shutdown separator Pack Design Over-voltage protection Fusible link Thermistor Charger Design Pack identification Under-voltage protection Over-voltage protection Over-temperature protection Applications: 5 15C Short Circuit: 50C + Tool Design Over-current protection Under-voltage protection Over-temperature protection

5 Battery Supply Risks Battery Supply Chain Cordless Dependent on Battery Supply Chain #1 Risk: global demand for Li-Ion materials #2 Risk: supplier cell capacity < demand More than 3x demand increase for battery materials expected over next 10 years Lithium +16% AGR, cost >100% since 2015 demand +250% over next 10 years Cobalt Cost rising every month Ongoing DRC conflict minerals debate Recycling is slow taking off

6 Category Focus: Home Products xx Cordless Pet Solutions Allergy Solutions Wet Cleaning Solutions Leverage SBD Technology Upright Expansion Category Creation BLACK+DECKER: Addressing Categories That Meet Customer Needs

7 Global Market Leader in Hand Vacs 1978

8 User Insights Drive Innovation This Modern Lifestyle: Busy home with kids and pets Larger homes Would rather do a little each day than larger tasks Environmental awareness Allergies, hard flooring vs. carpet, cadmium Portable and cordless Lighter weight, adaptable to different areas of home Minimizing time and effort for household chores while maximizing results!

9 Battery Chemistry Changed the Game % of Home Products was Nickel-Cadmium User Insights Driving System Approach Redesign of Product Line Benefits of Lithium over Nickel Always ready: Low self-discharge Better calendar life/maintenance charging Ergonomics Cost neutral Voltage regulation can be used to extend runtime

10 Example: 2-in-1 Stick Vac Battery Optimization 27 Wh Walk Based on Ni-Cd 21.6 Wh New Options Cell Type SC Ni-Cd Li-Ion Li-Ion Li-Ion Li-Ion Cell Quantity Capacity (Ah) Battery Voltage (V) Battery Weight (g) Battery Volume (cm 3 ) Advantage -70% Wt. & Vol. -80% Wt. & Vol. -25% Wt. & Vol.

11 2, 3, 4 and 5 Cell Platform Pack Platform pack developed through Gen 10 Project Modular Cell Carriers allowing multiple pack configurations Cell Strap design to facilitate automated soldering process in manufacturing 2, 3, 4 and 5 cell platform to be used in multiple products reducing base electronics development time opportunity for additional feature development

12 Leveraging B+D Platform Pack Automation PROCESS Cell Housing PCBA Cell insert Date Code Cell Welding Attach Foam Locate PCBA Automated Soldering Test AUTOMATION

13 Hand Vac Ni-Cd & Ni-MH Chargers: 110 Variations! Cell QTY 210mA timer (3 versions to suit different cell capacities) SWITCHING ADAPTOR CEC WITH TIMER 85mA* /100mA / 210mA C.C SWITCHING ADAPTOR NON CEC 100mA / 130mA / 150mA / 200mA LINEAR ADAPTORS USED IN NON CEC MARKETS UP TO 15.6V (EVERY VOLTAGE = UNIQUE CHARGER). EPP ORB FLEXIVACS GEN 9 PIVOT Multiple generations across product range

14 All Lithium Vacuum Charger Platforms Now Only 24 Variations 150 ma C.C (1 3 Cell) 400 ma C.C (2-3 Cell) & (4-5 Cell) 500 ma C.C 6 & 9 Cell EPP 1-2 CELL GEN3 PIVOT 3-5 CELL GEN CELL HPP ORA 6 & 9 CELL GEN2 FLEXI 3-5 CELL GEN CELL ORB 2 CELL

15 Filter Indicator SOC Indicator 2-Speed Operation Tactile Switch vs. Slide

16 Same hand vac product, different customer ratings 14-cell SC Nickel-Cadmium 3-cell Lithium-Ion 4-cell Lithium-Ion

17 And stick vacs too Lithium-Ion has allowed B+D to get into stick vac market with good reception 5-cell Lithium-Ion

18 Hand Vacuum Cell Chemistry Conversion Li-Ion 25% Ni-Cd or MH 75% Li-Ion 60% Ni-Cd or MH 40% Ni 10% Li-Ion 90% Li-Ion 99% Ni 1%

19 2017 Cordless Pet Solutions Rubberized Anti Tangle Scented Filter Large 1 Liter Dust Bin Wide Beater Bar Spot & Wet Cleaning 2018 Product Innovation Merchandising 65% US Household Pet Ownership

20 Home Products Market Trends & Future Emerging Trends + B+D Advantage Robust Product Roads = Hand Vacs Stick Vacs Robotic Vacs Wet Cleaning Technology Strongest New Product Deck Ever In BLACK+DECKER Home Products

21 Stanley Black & Decker Acknowledgements Professional Products Group Shared Services Battery Technology Team Black + Decker Home Products Group Engineering & Marketing Thank You!

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