Snap-on Incorporated · NYSE:SNA

Snap-on — Q4 2020 Earnings Presentation

17 slides from Snap-on's earnings presentation, Feb 4, 2021

  1. Slide 1: Quarterly Financial Review Fourth Quarter 2020

    Quarterly Financial Review Fourth Quarter 2020 1 Q4-2020 Quarterly Review © 2021 Snap-on Incorporated

  2. Slide 2: Cautionary Statement

    CAUTIONARY STATEMENT ▪ These slides should be read in conjunction with comments from the February 4, 2021 conference call. The financial statement information included herein is unaudited. ▪ Statements made during the February 4, 2021 conference call and/or information included in this presentation

  3. Slide 3: Q4-2020 Quarterly Review © 2021 Snap-on Incorporated

    3 Q4-2020 Quarterly Review © 2021 Snap-on Incorporated

  4. Slide 4: Nick Pinchuk, Chairman & Chief Executive Officer

    Nick Pinchuk Chairman & Chief Executive Officer

  5. Slide 5: Aldo Pagliari, Senior Vice President & Chief Financial Officer

    Aldo Pagliari Senior Vice President & Chief Financial Officer

  6. Slide 6: Consolidated Results – 4th Quarter

    CONSOLIDATED RESULTS – 4TH QUARTER 2020 2019 ($ in millions, except per share data - unaudited) $ % $ % Change Net sales $ 1,074.4 $ 955.2 12.5 % ➢ Organic sales 102.1 10.6 % ➢ Acquisitions 7.5 0.8 % ➢ Currency translation 9.6 1.1 % Gross profit $ 516.2 48.0 % $ 450.5 47.2 % Operating expenses 300.0

  7. Slide 7: Commercial & Industrial – 4th Quarter

    COMMERCIAL & INDUSTRIAL – 4TH QUARTER ($ in millions - unaudited) 2020 2019 Change Segment sales $ 364.4 $ 352.9 3.3 % ➢ Organic sales (2.5) (0.7)% ➢ Acquisitions 7.5 2.1 % ➢ Currency translation 6.5 1.9 % Gross profit $ 137.8 $ 125.4 % of sales 37.8 % 35.5 % Operating expenses $ 81.6 $ 80.4 % of sa

  8. Slide 8: Snap-on Tools – 4th Quarter

    SNAP-ON TOOLS – 4TH QUARTER ($ in millions - unaudited) 2020 2019 Change Segment sales $ 494.9 $ 411.7 20.2 % ➢ Organic sales 81.0 19.6 % ➢ Currency translation 2.2 0.6 % Gross profit $ 212.1 $ 165.4 % of sales 42.9 % 40.2 % Operating expenses $ 118.5 $ 111.1 % of sales 24.0 % 27.0 % Operating earni

  9. Slide 9: Repair Systems & Information – 4th Quarter

    REPAIR SYSTEMS & INFORMATION – 4TH QUARTER ($ in millions - unaudited) 2020 2019 Change Segment sales $ 361.1 $ 335.0 7.8 % ➢ Organic sales 23.7 7.0 % ➢ Currency translation 2.4 0.8 % Gross profit $ 166.3 $ 159.7 % of sales 46.1 % 47.7 % Operating expenses $ 76.3 $ 72.5 % of sales 21.2 % 21.7 % Oper

  10. Slide 10: Financial Services – 4th Quarter

    FINANCIAL SERVICES – 4TH QUARTER ($ in millions - unaudited) 2020 2019 Change Segment revenue $ 93.4 $ 83.9 11.3 % Operating earnings $ 68.5 $ 62.2 10.1 % Originations $ 272.4 $ 262.4 3.8 % ▪ Originations increased $10.0 million or 3.8% ▪ Average yield on finance receivables of 17.7% compared to 17.

  11. 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 $ 1,539.1 $ 1,935.3 $ 203.7 $ 283.9 Portfolio net losses (TTM) $ 42.9 $ 45.5 $ 2.7 $ 3.5 60+ Delinquency: As of 12/31/20 1.8 % 1.5 % 0.7 % 0.7

  12. Slide 12: Cash Flows

    CASH FLOWS 4th Quarter Full Year ($ in millions - unaudited) 2020 2019 2020 2019 Net cash provided by operating activities $ 317.6 $ 196.7 $ 1,008.6 $ 674.6 ➢ Net earnings 213.8 175.0 646.4 711.2 ➢ Depreciation and amortization 25.2 23.9 96.7 92.4 ➢ Changes in deferred income taxes 0.3 23.5 (8.2) 34

  13. Slide 13: Balance Sheet

    BALANCE SHEET January 2, December 28, ($ in millions - unaudited) 2021 2019 Trade & Other Accounts Receivable - net $ 640.7 $ 694.6 Days Sales Outstanding 64 67 Finance Receivables - net $ 1,666.5 $ 1,633.6 Contract Receivables - net $ 487.2 $ 460.8 Inventory - net $ 746.5 $ 760.4 Inventory turns -

  14. Slide 14: Reconciliation of Non-GAAP Financial Measures

    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AS REPORTED 4th Quarter Full Year ($ in millions, except per share data - unaudited) 2020 2019 2020 2019 Charges associated with exit and disposal activities (“restructuring charges”) Pre-tax restructuring charges $ (1.0) $ - $ (12.5) $ - Income tax bene

  15. Slide 15: Reconciliation of Non-GAAP Financial Measures

    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED INFORMATION – NON-GAAP 4th Quarter Full Year ($ in millions - unaudited) 2020 2019 2020 2019 Operating earnings before financial services As reported $ 216.2 $ 171.4 $ 631.9 $ 716.4 Restructuring charges 1.0 - 12.5 - Legal settlement - - - (11.6

  16. Slide 16: Reconciliation of Non-GAAP Financial Measures

    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED INFORMATION – NON-GAAP 4th Quarter Full Year ($ in millions - unaudited) 2020 2019 2020 2019 Net earnings attributable to Snap-on Incorporated As reported $ 208.9 $ 170.6 $ 627.0 $ 693.5 Restructuring charges, after tax 1.0 - 10.3 - Legal settle

  17. Slide 17: Q4-2020 Quarterly Review © 2021 Snap-on Incorporated

    17 Q4-2020 Quarterly Review © 2021 Snap-on Incorporated

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