Slide 1: Quarterly Financial Review Second Quarter 2020
Quarterly Financial Review Second Quarter 2020 1 Q2-2020 Quarterly Review © 2020 Snap-on Incorporated
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT ▪ These slides should be read in conjunction with comments from the July 31, 2020 conference call. The financial statement information included herein is unaudited. ▪ Statements made during the July 31, 2020 conference call and/or information included in this presentation may co
Slide 3: Q2-2020 Quarterly Review © 2020 Snap-on Incorporated
3 Q2-2020 Quarterly Review © 2020 Snap-on Incorporated
Slide 4: Nick Pinchuk, Chairman & Chief Executive Officer
Nick Pinchuk Chairman & Chief Executive Officer
Slide 5: Aldo Pagliari, Senior Vice President & Chief Financial Officer
Aldo Pagliari Senior Vice President & Chief Financial Officer
Slide 6: Consolidated Results – 2nd Quarter
CONSOLIDATED RESULTS – 2ND QUARTER 2020 2019 ($ in millions, except per share data - unaudited) $ % $ % Change Net sales $ 724.3 $ 951.3 (23.9)% ➢ Organic sales (214.9) (22.9)% ➢ Acquisitions 2.3 0.2 % ➢ Currency translation (14.4) (1.2)% Gross profit $ 341.2 47.1 % $ 473.8 49.8 % Operating expenses
Slide 7: Commercial & Industrial – 2nd Quarter
COMMERCIAL & INDUSTRIAL – 2ND QUARTER ($ in millions - unaudited) 2020 2019 Change Segment sales $ 261.9 $ 335.0 (21.8)% ➢ Organic sales (66.2) (20.2)% ➢ Currency translation (6.9) (1.6)% Gross profit $ 90.2 $ 129.2 % of sales 34.4 % 38.6 % Operating expenses $ 67.3 $ 80.3 % of sales 25.7 % 24.0 % O
Slide 8: Snap-on Tools – 2nd Quarter
SNAP-ON TOOLS – 2ND QUARTER ($ in millions - unaudited) 2020 2019 Change Segment sales $ 323.3 $ 405.8 (20.3)% ➢ Organic sales (79.2) (19.7)% ➢ Currency translation (3.3) (0.6)% Gross profit $ 134.8 $ 182.9 % of sales 41.7 % 45.1 % Operating expenses $ 96.4 $ 111.6 % of sales 29.8 % 27.5 % Operating
Slide 9: Repair Systems & Information – 2nd Quarter
REPAIR SYSTEMS & INFORMATION – 2ND QUARTER ($ in millions - unaudited) 2020 2019 Change Segment sales $ 245.0 $ 348.9 (29.8)% ➢ Organic sales (101.4) (29.5)% ➢ Acquisitions 2.3 0.7 % ➢ Currency translation (4.8) (1.0)% Gross profit $ 116.2 $ 161.7 % of sales 47.4 % 46.3 % Operating expenses $ 65.6 $
Slide 10: Financial Services – 2nd Quarter
FINANCIAL SERVICES – 2ND QUARTER ($ in millions - unaudited) 2020 2019 Change Segment revenue $ 84.6 $ 84.1 0.6 % Operating earnings $ 57.6 $ 60.6 (5.0)% Originations $ 255.8 $ 263.4 (2.9)% ▪ Originations decreased $7.6 million or 2.9% ▪ Average yield on finance receivables of 17.6% in both periods
Slide 11: Financial Services Portfolio Data
FINANCIAL SERVICES PORTFOLIO DATA United States International Extended Extended ($ in millions - unaudited) Credit Total Credit Total Gross finance portfolio $ 1,533.3 $ 1,914.3 $ 188.0 $ 259.1 Portfolio net losses (TTM) $ 47.5 $ 50.5 $ 2.9 $ 3.8 60+ Delinquency: As of 6/30/20 1.0 % 0.8 % 0.7 % 1.0
Slide 12: Cash Flows
CASH FLOWS 2nd Quarter June YTD ($ in millions - unaudited) 2020 2019 2020 2019 Net cash provided by operating activities $ 253.6 $ 145.5 $ 467.0 $ 346.8 ➢ Net earnings 105.9 184.9 247.9 367.0 ➢ Depreciation and amortization 23.8 23.0 47.6 45.6 ➢ Changes in deferred income taxes 1.7 7.0 (1.9) 12.4 ➢
Slide 13: Balance Sheet
BALANCE SHEET June 27, December 28, ($ in millions - unaudited) 2020 2019 Trade & Other Accounts Receivable - net $ 563.5 $ 694.6 Days Sales Outstanding 59 67 Finance Receivables - net $ 1,648.8 $ 1,633.6 Contract Receivables - net $ 464.6 $ 460.8 Inventory - net $ 784.0 $ 760.4 Inventory turns - TT
Slide 14: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AS REPORTED 2nd Quarter June YTD ($ in millions, except per share data - unaudited) 2020 2019 2020 2019 Charges associated with exit and disposal activities (“restructuring charges”) Pre-tax restructuring charges $ (4.0) $ - $ (11.5) $ - Income tax benef
Slide 15: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED INFORMATION – NON-GAAP 2nd Quarter June YTD ($ in millions - unaudited) 2020 2019 2020 2019 Operating earnings before financial services As reported $ 91.1 $ 189.9 $ 230.0 $ 377.3 Restructuring charges 4.0 - 11.5 - Legal settlement - - - (11.6)
Slide 16: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED INFORMATION – NON-GAAP 2nd Quarter June YTD ($ in millions - unaudited) 2020 2019 2020 2019 Net earnings attributable to Snap-on Incorporated As reported $ 101.2 $ 180.4 $ 238.4 $ 358.3 Restructuring charges, after tax 3.3 - 9.3 - Legal settleme
Slide 17: Q2-2020 Quarterly Review © 2020 Snap-on Incorporated
17 Q2-2020 Quarterly Review © 2020 Snap-on Incorporated