Slide 1: Quarterly Financial Review Third Quarter 2021
Quarterly Financial Review Third Quarter 2021 1
Slide 2: Cautionary Statement
Cautionary Statement ▪ These slides should be read in conjunction with comments from the October 21, 2021 conference call. The financial statement information included herein is unaudited. ▪ Statements made during the October 21, 2021 conference call and/or information included in this presentation
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
Nick Pinchuk Chairman & Chief Executive Officer 4
Slide 5: Aldo Pagliari
Aldo Pagliari Senior Vice President & Chief Financial Officer 5
Slide 6: Consolidated Results
Consolidated Results Q3 2021 Q3 2020 ($ in millions, except per share data - unaudited) $ % $ % Change Net sales $ 1,037.7 $ 941.6 10.2 % ➢ Organic sales 67.0 7.0 % ➢ Acquisitions 19.5 2.1 % ➢ Currency translation 9.6 1.1 % Gross profit $ 520.7 50.2 % $ 469.5 49.9 % Operating expenses 319.4 30.8 % 2
Slide 7: Commercial & Industrial
Commercial & Industrial ($ in millions - unaudited) Q3 2021 Q3 2020 Change Segment sales $ 351.4 $ 308.4 13.9 % ➢ Organic sales 32.9 10.6 % ➢ Acquisitions 7.5 2.4 % ➢ Currency translation 2.6 0.9 % Gross profit $ 134.1 $ 114.9 % of sales 38.2 % 37.3 % Operating expenses $ 80.5 $ 71.8 % of sales 22.9
Slide 8: Snap-on Tools
Snap-on Tools ($ in millions - unaudited) Q3 2021 Q3 2020 Change Segment sales $ 471.4 $ 449.8 4.8 % ➢ Organic sales 16.7 3.7 % ➢ Currency translation 4.9 1.1 % Gross profit $ 215.9 $ 204.5 % of sales 45.8 % 45.5 % Operating expenses $ 117.7 $ 117.4 % of sales 25.0 % 26.1 % Operating earnings $ 98.2
Slide 9: Repair Systems & Information
Repair Systems & Information ($ in millions - unaudited) Q3 2021 Q3 2020 Change Segment sales $ 364.4 $ 317.5 14.8 % ➢ Organic sales 31.7 9.9 % ➢ Acquisitions 12.0 3.7 % ➢ Currency translation 3.2 1.2 % Gross profit $ 170.7 $ 150.1 % of sales 46.8 % 47.3 % Operating expenses $ 87.4 $ 70.0 % of sales
Slide 10: Financial Services
Financial Services ($ in millions - unaudited) Q3 2021 Q3 2020 Change Segment revenue $ 87.3 $ 85.8 1.7 % Operating earnings $ 70.6 $ 65.6 7.6 % Originations $ 269.3 $ 252.8 6.5 % ▪ Originations increased $16.5 million or 6.5% ▪ Average yield on finance receivables of 17.8% in both years ▪ Average y
Slide 11: Financial Services Portfolio Data
Financial Services Portfolio Data United States International Extended Extended ($ in millions - unaudited) Credit Total Credit Total Gross finance portfolio $ 1,521.3 $ 1,926.7 $ 203.5 $ 287.4 Portfolio net losses (TTM) $ 40.2 $ 41.8 $ 2.5 $ 2.8 60+ Delinquency: As of 9/30/21 1.4 % 1.2 % 0.6 % 0.6
Slide 12: Cash Flows
Cash Flows 3rd Quarter September YTD ($ in millions - unaudited) 2021 2020 2021 2020 Net cash provided by operating activities $ 186.4 $ 224.0 $ 743.9 $ 691.0 ➢ Net earnings 201.5 184.7 612.3 432.6 ➢ Depreciation and amortization 24.9 23.9 75.1 71.5 ➢ Changes in deferred income taxes (0.6) (6.6) 3.4
Slide 13: Balance Sheet
Balance Sheet October 2, January 2, ($ in millions - unaudited) 2021 2021 Trade & Other Accounts Receivable - net $ 653.2 $ 640.7 Days Sales Outstanding 56 64 Finance Receivables - net $ 1,655.2 $ 1,666.5 Contract Receivables - net $ 497.9 $ 487.2 Inventory - net $ 789.6 $ 746.5 Inventory turns - TT
Slide 14: Since 1920
SINCE 1920