Slide 1: Quarterly Financial Review Fourth Quarter 2021
Quarterly Financial Review Fourth Quarter 2021 1
Slide 2: Cautionary Statement
Cautionary Statement ▪ These slides should be read in conjunction with comments from the February 3, 2022 conference call. The financial statement information included herein is unaudited. ▪ Statements made during the February 3, 2022 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, Chairman & Chief Executive Officer
Nick Pinchuk Chairman & Chief Executive Officer 4
Slide 5: Aldo Pagliari, Senior Vice President & Chief Financial Officer
Aldo Pagliari Senior Vice President & Chief Financial Officer 5
Slide 6: Consolidated Results
Consolidated Results Q4 2021 Q4 2020 ($ in millions, except per share data - unaudited) $ % $ % Change Net sales $ 1,108.3 $ 1,074.4 3.2 % ➢ Organic sales 24.7 2.3 % ➢ Acquisitions 12.2 1.1 % ➢ Currency translation (3.0) (0.2)% Gross profit $ 533.4 48.1 % $ 516.2 48.0 % Operating expenses 301.2 27.1
Slide 7: Commercial & Industrial
Commercial & Industrial ($ in millions - unaudited) Q4 2021 Q4 2020 Change Segment sales $ 358.7 $ 364.4 (1.6)% ➢ Organic sales (1.6) (0.4)% ➢ Currency translation (4.1) (1.2)% Gross profit $ 130.9 $ 137.8 % of sales 36.5 % 37.8 % Operating expenses $ 80.8 $ 81.6 % of sales 22.5 % 22.4 % Operating e
Slide 8: Snap-on Tools
Snap-on Tools ($ in millions - unaudited) Q4 2021 Q4 2020 Change Segment sales $ 504.8 $ 494.9 2.0 % ➢ Organic sales 7.9 1.6 % ➢ Currency translation 2.0 0.4 % Gross profit $ 221.5 $ 212.1 % of sales 43.9 % 42.9 % Operating expenses $ 111.0 $ 118.5 % of sales 22.0 % 24.0 % Operating earnings $ 110.5
Slide 9: Repair Systems & Information
Repair Systems & Information ($ in millions - unaudited) Q4 2021 Q4 2020 Change Segment sales $ 392.5 $ 361.1 8.7 % ➢ Organic sales 19.7 5.5 % ➢ Acquisitions 12.2 3.3 % ➢ Currency translation (0.5) (0.1)% Gross profit $ 181.0 $ 166.3 % of sales 46.1 % 46.1 % Operating expenses $ 83.8 $ 76.3 % of sal
Slide 10: Financial Services
Financial Services ($ in millions - unaudited) Q4 2021 Q4 2020 Change Segment revenue $ 86.9 $ 93.4 (7.0)% Operating earnings $ 67.2 $ 68.5 (1.9)% Originations $ 256.3 $ 272.4 (5.9)% ▪ Originations decreased $16.1 million or 5.9% ▪ Average yield on finance receivables of 17.7% in both years ▪ Averag
Slide 11: Financial Services Portfolio Data
Financial Services Portfolio Data United States International Extended Extended ($ in millions - unaudited) Credit Total Credit Total Gross finance portfolio $ 1,518.1 $ 1,915.7 $ 205.5 $ 288.3 Portfolio net losses (TTM) $ 38.7 $ 39.8 $ 2.4 $ 2.7 60+ Delinquency: As of 12/31/21 1.6 % 1.3 % 0.6 % 0.7
Slide 12: Cash Flows
Cash Flows 4th Quarter Full Year ($ in millions - unaudited) 2021 2020 2021 2020 Net cash provided by operating activities $ 222.7 $ 317.6 $ 966.6 $ 1,008.6 ➢ Net earnings 229.1 213.8 841.4 646.4 ➢ Depreciation and amortization 29.7 25.2 104.8 96.7 ➢ Changes in deferred income taxes 5.0 0.3 8.4 (8.2
Slide 13: Balance Sheet
Balance Sheet January 1, January 2, ($ in millions - unaudited) 2022 2021 Trade & Other Accounts Receivable - net $ 682.3 $ 640.7 Days Sales Outstanding 58 64 Finance Receivables - net $ 1,656.3 $ 1,666.5 Contract Receivables - net $ 488.6 $ 487.2 Inventory - net $ 803.8 $ 746.5 Inventory turns - TT
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) 2021 2020 2021 2020 Charges associated with exit and disposal activities (“restructuring charges”) Pre-tax restructuring charges $ - $ (1.0) $ - $ (12.5) Income tax bene
Slide 15: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ADJUSTED INFORMATION – NON-GAAP 4th Quarter Full Year ($ in millions, except per share data - unaudited) 2021 2020 2021 2020 Operating earnings As reported $ 299.4 $ 284.7 $ 1,123.5 $ 880.5 Restructuring charges - 1.0 - 12.5 As adjusted $ 299.4 $ 285.7 $
Slide 16: Since 1920
SINCE 1920