Slide 1: Quarterly Financial Review Third Quarter 2020
Quarterly Financial Review Third Quarter 2020 1 Q3-2020 Quarterly Review © 2020 Snap-on Incorporated
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT ▪ These slides should be read in conjunction with comments from the October 22, 2020 conference call. The financial statement information included herein is unaudited. ▪ Statements made during the October 22, 2020 conference call and/or information included in this presentation
Slide 3: Q3-2020 Quarterly Review © 2020 Snap-on Incorporated
3 Q3-2020 Quarterly Review © 2020 Snap-on Incorporated
Slide 4: Nick Pinchuk
Nick Pinchuk Chairman & Chief Executive Officer
Slide 5: Aldo Pagliari
Aldo Pagliari Senior Vice President & Chief Financial Officer
Slide 6: Consolidated Results – 3rd Quarter
CONSOLIDATED RESULTS – 3RD QUARTER 2020 2019 ($ in millions, except per share data - unaudited) $ % $ % Change Net sales $ 941.6 $ 901.8 4.4 % ➢ Organic sales 34.6 3.8 % ➢ Acquisitions 1.0 0.1 % ➢ Currency translation 4.2 0.5 % Gross profit $ 469.5 49.9 % $ 448.1 49.7 % Operating expenses 283.8 30.2
Slide 7: Commercial & Industrial – 3rd Quarter
COMMERCIAL & INDUSTRIAL – 3RD QUARTER ($ in millions - unaudited) 2020 2019 Change Segment sales $ 308.4 $ 335.3 (8.0)% ➢ Organic sales (29.1) (8.6)% ➢ Currency translation 2.2 0.6 % Gross profit $ 114.9 $ 127.0 % of sales 37.3 % 37.9 % Operating expenses $ 71.8 $ 78.7 % of sales 23.3 % 23.5 % Opera
Slide 8: Snap-on Tools – 3rd Quarter
SNAP-ON TOOLS – 3RD QUARTER ($ in millions - unaudited) 2020 2019 Change Segment sales $ 449.8 $ 385.2 16.8 % ➢ Organic sales 62.8 16.2 % ➢ Currency translation 1.8 0.6 % Gross profit $ 204.5 $ 167.2 % of sales 45.5 % 43.4 % Operating expenses $ 117.4 $ 114.2 % of sales 26.1 % 29.6 % Operating earni
Slide 9: Repair Systems & Information – 3rd Quarter
REPAIR SYSTEMS & INFORMATION – 3RD QUARTER ($ in millions - unaudited) 2020 2019 Change Segment sales $ 317.5 $ 322.7 (1.6)% ➢ Organic sales (7.0) (2.2)% ➢ Acquisitions 1.0 0.3 % ➢ Currency translation 0.8 0.3 % Gross profit $ 150.1 $ 153.9 % of sales 47.3 % 47.7 % Operating expenses $ 70.0 $ 70.6 %
Slide 10: Financial Services – 3rd Quarter
FINANCIAL SERVICES – 3RD QUARTER ($ in millions - unaudited) 2020 2019 Change Segment revenue $ 85.8 $ 84.1 2.0 % Operating earnings $ 65.6 $ 61.0 7.5 % Originations $ 252.8 $ 253.5 (0.3)% ▪ Originations decreased $0.7 million or 0.3% ▪ Average yield on finance receivables of 17.8% compared to 17.7%
Slide 11: Financial Services Portfolio Data
FINANCIAL SERVICES PORTFOLIO DATA United States International Extended Extended ($ in millions - unaudited) Credit Total Credit Total Gross finance portfolio $ 1,536.7 $ 1,931.1 $ 192.8 $ 267.3 Portfolio net losses (TTM) $ 43.9 $ 46.5 $ 2.8 $ 3.7 60+ Delinquency: As of 9/30/20 1.5 % 1.2 % 0.6 % 0.8
Slide 12: Cash Flows
CASH FLOWS 3rd Quarter September YTD ($ in millions - unaudited) 2020 2019 2020 2019 Net cash provided by operating activities $ 224.0 $ 131.1 $ 691.0 $ 477.9 ➢ Net earnings 184.7 169.2 432.6 536.2 ➢ Depreciation and amortization 23.9 22.9 71.5 68.5 ➢ Changes in deferred income taxes (6.6) (1.7) (8.
Slide 13: Balance Sheet
BALANCE SHEET September 26, December 28, ($ in millions - unaudited) 2020 2019 Trade & Other Accounts Receivable - net $ 618.9 $ 694.6 Days Sales Outstanding 64 67 Finance Receivables - net $ 1,654.4 $ 1,633.6 Contract Receivables - net $ 480.5 $ 460.8 Inventory - net $ 764.4 $ 760.4 Inventory turns
Slide 14: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AS REPORTED 3rd Quarter September 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 $ - $ - $ (11.5) $ - Income tax bene
Slide 15: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED INFORMATION – NON-GAAP 3rd Quarter September YTD ($ in millions - unaudited) 2020 2019 2020 2019 Operating earnings before financial services As reported $ 185.7 $ 167.7 $ 415.7 $ 545.0 Restructuring charges - - 11.5 - Legal settlement - - - (11
Slide 16: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED INFORMATION – NON-GAAP 3rd Quarter September YTD ($ in millions - unaudited) 2020 2019 2020 2019 Net earnings attributable to Snap-on Incorporated As reported $ 179.7 $ 164.6 $ 418.1 $ 522.9 Restructuring charges, after tax - - 9.3 - Legal settl
Slide 17: Q3-2020 Quarterly Review © 2020 Snap-on Incorporated
17 Q3-2020 Quarterly Review © 2020 Snap-on Incorporated