Slide 1: Quarterly Financial Review Second Quarter 2021
Quarterly Financial Review Second Quarter 2021 1
Slide 2: Cautionary Statement
Cautionary Statement These slides should be read in conjunction with comments from the July 22, 2021 conference call. The financial statement information included herein is unaudited. Statements made during the July 22, 2021 conference call and/or information included in this presentation may co
Slide 3: Who We Are
Snapan incorporated Who We Are OUR MISSION The most valued productivity solutions in the world BELIEFS VALUES VISION We deeply believe in: Our behaviors define our success: To be acknowledged as the: Non-negotiable Product and We demonstrate Integrity. Brands of Choice Workplace Safety Uncompromisin
Slide 4: Nick Pinchuk, Chairman & Chief Executive Officer
Nick Pinchuk Chairman & Chief Executive Officer 4
Slide 5: Aldo Pagliari, Senior Vice President & Chief Financial Officer
Aldo Pagliari Senior Vice President & Chief Financial Officer 5
Slide 6: Consolidated Results
Consolidated Results Q2 2021 Q2 2020 ($ in millions, except per share data - unaudited) $ % $ % Change Net sales $ 1,081.4 $ 724.3 49.3 % Organic sales 316.9 42.5 % Acquisitions 19.6 2.7 % Currency translation 20.6 4.1 % Gross profit $ 543.1 50.2 % $ 341.2 47.1 % Operating expenses 326.0 30.1
Slide 7: Commercial & Industrial
Commercial & Industrial ($ in millions - unaudited) Q2 2021 Q2 2020 Change Segment sales $ 350.5 $ 261.9 33.8 % Organic sales 71.3 26.3 % Acquisitions 7.7 2.8 % Currency translation 9.6 4.7 % Gross profit $ 138.5 $ 90.2 % of sales 39.5 % 34.4 % Operating expenses $ 83.0 $ 67.3 % of sales 23.7
Slide 8: Snap-on Tools
Snap-on Tools ($ in millions - unaudited) Q2 2021 Q2 2020 Change Segment sales $ 484.1 $ 323.3 49.7 % Organic sales 154.1 46.7 % Currency translation 6.7 3.0 % Gross profit $ 226.5 $ 134.8 % of sales 46.8 % 41.7 % Operating expenses $ 123.0 $ 96.4 % of sales 25.4 % 29.8 % Operating earnings $ 10
Slide 9: Repair Systems & Information
Repair Systems & Information ($ in millions - unaudited) Q2 2021 Q2 2020 Change Segment sales $ 398.6 $ 245.0 62.7 % Organic sales 135.7 54.1 % Acquisitions 11.9 4.7 % Currency translation 6.0 3.9 % Gross profit $ 178.1 $ 116.2 % of sales 44.7 % 47.4 % Operating expenses $ 91.4 $ 65.6 % of sal
Slide 10: Financial Services
Financial Services ($ in millions - unaudited) Q2 2021 Q2 2020 Change Segment revenue $ 86.9 $ 84.6 2.7 % Operating earnings $ 68.9 $ 57.6 19.6 % Originations $ 285.8 $ 255.8 11.7 % Originations increased $30.0 million or 11.7% Average yield on finance receivables of 17.5% compared to 17.6% last
Slide 11: Financial Services Portfolio Data
Financial Services Portfolio Data United States International Extended Extended ($ in millions - unaudited) Credit Total Credit Total Gross finance portfolio $ 1,521.9 $ 1,913.4 $ 210.0 $ 293.2 Portfolio net losses (TTM) $ 39.1 $ 40.8 $ 2.5 $ 3.0 60+ Delinquency: As of 6/30/21 1.2 % 1.0 % 0.6 % 0.6
Slide 12: Cash Flows
Cash Flows 2nd Quarter June YTD ($ in millions - unaudited) 2021 2020 2021 2020 Net cash provided by operating activities $ 238.2 $ 253.6 $ 557.5 $ 467.0 Net earnings 213.2 105.9 410.8 247.9 Depreciation and amortization 25.5 23.8 50.2 47.6 Changes in deferred income taxes 1.7 1.7 4.0 (1.9)
Slide 13: Balance Sheet
Balance Sheet July 3, January 2, ($ in millions - unaudited) 2021 2021 Trade & Other Accounts Receivable - net $ 645.4 $ 640.7 Days Sales Outstanding 56 64 Finance Receivables - net $ 1,659.7 $ 1,666.5 Contract Receivables - net $ 483.8 $ 487.2 Inventory - net $ 760.9 $ 746.5 Inventory turns - TTM 2
Slide 14: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures AS REPORTED 2nd Quarter ($ in millions, except per share data - unaudited) 2021 2020 Charges associated with exit and disposal activities (“restructuring charges”) Pre-tax restructuring charges $ - $ (4.0) Income tax benefits - 0.7 Restructuring charges,
Slide 15: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ADJUSTED INFORMATION – NON-GAAP 2nd Quarter ($ in millions, except per share data - unaudited) 2021 2020 Operating earnings As reported $ 286.0 $ 148.7 Restructuring charges - 4.0 As adjusted $ 286.0 $ 152.7 Operating earnings as a percentage of revenue
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