Snap-on Incorporated · NYSE:SNA

Snap-on — Q2 2019 Earnings Presentation

17 slides from Snap-on's earnings presentation, Jul 18, 2019

  1. Slide 1: Quarterly Financial Review Second Quarter 2019

    Quarterly Financial Review Second Quarter 2019

  2. Slide 2: Cautionary Statement

    CAUTIONARY STATEMENT • These slides should be read in conjunction with comments from the July 18, 2019 conference call. The financial statement information included herein is unaudited. • Statements made during the July 18, 2019 conference call and/or information included in this presentation may co

  3. 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

  4. Slide 4: Nick Pinchuk

    Nick Pinchuk Chairman & Chief Executive Officer

  5. Slide 5: Aldo Pagliari

    Aldo Pagliari Senior Vice President & Chief Financial Officer

  6. Slide 6: Consolidated Results – 2nd Quarter

    CONSOLIDATED RESULTS – 2ND QUARTER 2019 2018 ($ in millions, except per share data - unaudited) $ % $ % Change Net sales $ 951.3 $ 954.6 (0.3)%  Organic sales 15.1 1.6 %  Acquisitions 1.1 0.1 %  Currency translation (19.5) (2.0)% Gross profit $ 473.8 49.8 % $ 487.1 51.0 % Operating expenses 283.9

  7. Slide 7: Commercial & Industrial – 2nd Quarter

    COMMERCIAL & INDUSTRIAL – 2ND QUARTER ($ in millions - unaudited) 2019 2018 Change Segment sales $ 335.0 $ 337.8 (0.8)%  Organic sales 6.2 1.9 %  Acquisitions 1.1 0.3 %  Currency translation (10.1) (3.0)% Gross profit $ 129.2 $ 133.0 % of sales 38.6 % 39.4 % Operating expenses $ 80.3 $ 84.0 % of

  8. Slide 8: Snap-on Tools – 2nd Quarter

    SNAP-ON TOOLS – 2ND QUARTER ($ in millions - unaudited) 2019 2018 Change Segment sales $ 405.8 $ 411.9 (1.5)%  Organic sales (1.0) (0.2)%  Currency translation (5.1) (1.3)% Gross profit $ 182.9 $ 189.2 % of sales 45.1 % 45.9 % Operating expenses $ 111.6 $ 110.2 % of sales 27.5 % 26.7 % Operating e

  9. Slide 9: Repair Systems & Information – 2nd Quarter

    REPAIR SYSTEMS & INFORMATION – 2ND QUARTER ($ in millions - unaudited) 2019 2018 Change Segment sales $ 348.9 $ 343.1 1.7 %  Organic sales 11.7 3.5 % Currency translation (5.9) (1.8)% Gross profit $ 161.7 $ 164.9 % of sales 46.3 % 48.1 % Operating expenses $ 73.1 $ 76.2 % of sales 20.9 % 22.2 % Op

  10. Slide 10: Financial Services – 2nd Quarter

    FINANCIAL SERVICES – 2ND QUARTER ($ in millions - unaudited) 2019 2018 Change Segment revenue $ 84.1 $ 82.0 2.6 % Operating earnings $ 60.6 $ 57.8 4.8 % Originations $ 263.4 $ 276.1 (4.6)%  Originations decreased $12.7 million or 4.6%  Average yield on finance receivables of 17.6% compared to 17.7

  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 $ 1,487.3 $ 1,831.0 $ 191.6 $ 271.3 Portfolio net losses (TTM) $ 47.4 $ 49.3 $ 3.0 $ 3.7 60+ Delinquency: As of 6/30/19 1.4 % 1.2 % 0.7 % 0.7

  12. Slide 12: Cash Flows

    CASH FLOWS 2nd Quarter June YTD ($ in millions - unaudited) 2019 2018 2019 2018 Net cash provided by operating activities $ 145.5 $ 186.9 $ 346.8 $ 418.8  Net earnings 184.9 182.7 367.0 349.5  Depreciation and amortization 23.0 24.0 45.6 48.0  Changes in deferred income taxes 7.0 (4.5) 12.4 (4.1)

  13. Slide 13: Balance Sheet

    BALANCE SHEET June 29, December 29, ($ in millions - unaudited) 2019 2018 Trade & Other Accounts Receivable - net $ 684.1 $ 692.6 Days Sales Outstanding 66 67 Finance Receivables - net $ 1,618.0 $ 1,592.9 Contract Receivables - net $ 439.0 $ 443.2 Inventory - net $ 725.8 $ 673.8 Inventory turns - TT

  14. 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) 2019 2018 2019 2018 Benefit related to the settlement of a litigation matter (“legal settlement”) Pre-tax legal settlement $ - $ - $ 11.6 $ - Income tax expense - - (2.9)

  15. Slide 15: 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) 2019 2018 2019 2018 Debt related items (“net debt items”) Gain on settlement of treasury lock (A) Gain on settlement of treasury lock $ - $ - $ - $ 13.3 Income tax expens

  16. 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) 2019 2018 2019 2018 Operating earnings before financial services As reported $ 189.9 $ 193.1 $ 377.3 $ 370.8 Legal settlement - - (11.6) - As adjusted $ 189.9 $ 193.1 $ 365.

  17. Slide 17: Reconciliation of Non-GAAP Financial Measures

    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED INFORMATION – NON-GAAP 2nd Quarter June YTD ($ in millions - unaudited) 2019 2018 2019 2018 Net earnings attributable to Snap-on Incorporated As reported $ 180.4 $ 178.7 $ 358.3 $ 341.7 Legal settlement, after tax - - (8.7) - Net debt items, aft

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