Slide 1: Quarterly Financial Review Fourth Quarter 2022
Quarterly Financial Review Fourth Quarter 2022
Slide 2: Q4-2022 Quarterly Review
Q4-2022 Quarterly Review © 2023 Snap-on Incorporated
Slide 3: Cautionary Statement
Cautionary Statement ▪ These slides should be read in conjunction with comments from the February 2, 2023 conference call. The financial statement information included herein is unaudited. ▪ Statements made during the February 2, 2023 conference call and/or information included in this presentation
Slide 4: Nick Pinchuk
Nick Pinchuk Chairman and Chief Executive Officer
Slide 5: Aldo Pagliari
Aldo Pagliari Senior Vice President and Chief Financial Officer
Slide 6: Consolidated Results
Consolidated Results Q4 2022 Q4 2021 ($ in millions, except per share data - unaudited) $ % $ % Change Net sales $ 1,155.9 $ 1,108.3 4.3 % ➢ Organic sales 85.3 8.0 % ➢Currency translation (37.7) (3.7)% Gross profit $ 560.7 48.5 % $ 533.4 48.1 % Operating expenses 312.7 27.0 % 301.2 27.1 % Operating
Slide 7: Commercial & Industrial
Commercial & Industrial ($ in millions - unaudited) Q4 2022 Q4 2021 Change Segment sales $ 343.2 $ 358.7 (4.3)% ➢ Organic sales 5.7 1.7 % ➢ Currency translation (21.2) (6.0)% Gross profit $ 129.4 $ 130.9 % of sales 37.7 % 36.5 % Operating expenses $ 81.5 $ 80.8 % of sales 23.7 % 22.5 % Operating ear
Slide 8: Snap-on Tools
Snap-on Tools ($ in millions - unaudited) Q4 2022 Q4 2021 Change Segment sales $ 542.7 $ 504.8 7.5 % ➢ Organic sales 47.4 9.6 % ➢ Currency translation (9.5) (2.1)% Gross profit $ 234.4 $ 221.5 % of sales 43.2 % 43.9 % Operating expenses $ 118.3 $ 111.0 % of sales 21.8 % 22.0 % Operating earnings $ 1
Slide 9: Repair Systems & Information
Repair Systems & Information ($ in millions - unaudited) Q4 2022 Q4 2021 Change Segment sales $ 437.9 $ 392.5 11.6 % ➢ Organic sales 54.9 14.3 % ➢Currency translation (9.5) (2.7)% Gross profit $ 196.9 $ 181.0 % of sales 45.0 % 46.1 % Operating expenses $ 86.3 $ 83.8 % of sales 19.7 % 21.3 % Operatin
Slide 10: Financial Services
Financial Services ($ in millions - unaudited) Q4 2022 Q4 2021 Change Segment revenue $ 88.3 $ 86.9 1.6 % Operating earnings $ 63.9 $ 67.2 (4.9)% Originations $ 299.7 $ 256.3 16.9 % ▪ Originations increased $43.4 million or 16.9% ▪ Average yields on finance receivables were 17.6% and 17.7% in 2022 a
Slide 11: Financial Services Portfolio Data
Financial Services Portfolio Data United States International Extended Extended ($ in millions - unaudited) Credit Total Credit Total Gross finance portfolio $ 1,596.5 $ 2,001.9 $ 197.4 $ 276.3 Portfolio net losses (TTM) $ 40.8 $ 42.5 $ 3.0 $ 3.5 60+ Delinquency: As of 12/31/22 1.6 % 1.3 % 0.8 % 1.1
Slide 12: Cash Flows
Cash Flows 4th Quarter Full Year ($ in millions - unaudited) 2022 2021 2022 2021 Net cash provided by operating activities $ 210.6 $ 222.7 $ 675.2 $ 966.6 ➢ Net earnings 244.5 229.1 933.9 841.4 ➢ Depreciation and amortization 24.7 29.7 100.2 104.8 ➢ Changes in deferred income taxes 3.8 5.0 (10.3) 8.
Slide 13: Balance Sheet
Balance Sheet December 31, January 1, ($ in millions - unaudited) 2022 2022 Trade & Other Accounts Receivable - net $ 761.7 $ 682.3 Days Sales Outstanding 61 58 Finance Receivables - net $ 1,733.0 $ 1,656.3 Contract Receivables - net $ 493.7 $ 488.6 Inventory - net $ 1,033.1 $ 803.8 Inventory turns
Slide 14: Snap-on Makers + Fixers