Slide 1: Quarterly Financial Review First Quarter 2021
Quarterly Financial Review First Quarter 2021 1
Slide 2: Cautionary Statement
Cautionary Statement ▪ These slides should be read in conjunction with comments from the April 22, 2021 conference call. The financial statement information included herein is unaudited. ▪ Statements made during the April 22, 2021 conference call and/or information included in this presentation may
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 Q1 2021 Q1 2020 ($ in millions, except per share data - unaudited) $ % $ % Change Net sales $ 1,024.6 $ 852.2 20.2 % ➢ Organic sales 141.9 16.3 % ➢ Acquisitions 11.3 1.3 % ➢ Currency translation 19.2 2.6 % Gross profit $ 513.6 50.1 % $ 421.6 49.5 % Operating expenses 312.7 30.5
Slide 7: Commercial & Industrial
Commercial & Industrial ($ in millions - unaudited) Q1 2021 Q1 2020 Change Segment sales $ 345.7 $ 299.9 15.3 % ➢ Organic sales 29.3 9.5 % ➢ Acquisitions 7.3 2.3 % ➢ Currency translation 9.2 3.5 % Gross profit $ 133.9 $ 110.5 % of sales 38.7 % 36.8 % Operating expenses $ 83.2 $ 79.0 % of sales 24.0
Slide 8: Snap-on Tools
Snap-on Tools ($ in millions - unaudited) Q1 2021 Q1 2020 Change Segment sales $ 478.3 $ 375.9 27.2 % ➢ Organic sales 95.7 25.0 % ➢ Currency translation 6.7 2.2 % Gross profit $ 219.7 $ 160.4 % of sales 45.9 % 42.7 % Operating expenses $ 120.8 $ 111.8 % of sales 25.2 % 29.8 % Operating earnings $ 98
Slide 9: Repair Systems & Information
Repair Systems & Information ($ in millions - unaudited) Q1 2021 Q1 2020 Change Segment sales $ 347.6 $ 314.6 10.5 % ➢ Organic sales 24.2 7.6 % ➢ Acquisitions 4.0 1.2 % ➢ Currency translation 4.8 1.7 % Gross profit $ 160.0 $ 150.7 % of sales 46.0 % 47.9 % Operating expenses $ 78.6 $ 73.4 % of sales
Slide 10: Financial Services
Financial Services ($ in millions - unaudited) Q1 2021 Q1 2020 Change Segment revenue $ 88.6 $ 85.9 3.1 % Operating earnings $ 65.3 $ 56.9 14.8 % Originations $ 261.8 $ 255.6 2.4 % ▪ Originations increased $6.2 million or 2.4% ▪ Average yield on finance receivables of 17.6% compared to 17.7% last ye
Slide 11: Financial Services Portfolio Data
Financial Services Portfolio Data United States International Extended Extended ($ in millions - unaudited) Credit Total Credit Total Gross finance portfolio $ 1,515.6 $ 1,905.5 $ 205.4 $ 287.9 Portfolio net losses (TTM) $ 41.3 $ 43.5 $ 2.6 $ 3.1 60+ Delinquency: As of 3/31/21 1.6 % 1.3 % 0.6 % 0.6
Slide 12: Cash Flows
Cash Flows 1st Quarter ($ in millions - unaudited) 2021 2020 Net cash provided by operating activities $ 319.3 $ 213.4 ➢ Net earnings 197.6 142.0 ➢ Depreciation and amortization 24.7 23.8 ➢ Changes in deferred income taxes 2.3 (3.6) ➢ Changes in working investment 16.0 12.4 ➢ Changes in accruals and
Slide 13: Balance Sheet
Balance Sheet April 3, January 2, ($ in millions - unaudited) 2021 2021 Trade & Other Accounts Receivable - net $ 650.8 $ 640.7 Days Sales Outstanding 62 64 Finance Receivables - net $ 1,645.7 $ 1,666.5 Contract Receivables - net $ 482.0 $ 487.2 Inventory - net $ 730.1 $ 746.5 Inventory turns - TTM
Slide 14: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures AS REPORTED 1st Quarter ($ in millions, except per share data - unaudited) 2021 2020 2019 Charges associated with exit and disposal activities (“restructuring charges”) Pre-tax restructuring charges $ - $ (7.5) $ - Income tax benefits - 1.5 - Restructuri
Slide 15: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ADJUSTED INFORMATION – NON-GAAP 1st Quarter ($ in millions - unaudited) 2021 2020 2019 Operating earnings before financial services As reported $ 200.9 $ 138.9 $ 187.4 Restructuring charges - 7.5 - Legal settlement - - (11.6) As adjusted $ 200.9 $ 146.4
Slide 16: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ADJUSTED INFORMATION – NON-GAAP 1st Quarter ($ in millions, except per share data - unaudited) 2021 2020 2019 Net earnings attributable to Snap-on Incorporated As reported $ 192.6 $ 137.2 $ 177.9 Restructuring charges, after tax - 6.0 - Legal settlement,
Slide 17: Since 1920
SINCE 1920