Snap-On

1. Snap-On RCMP Investment Presentation Richie Hartz Ha Da Jang Diana Yang Diana Yang Iris Zhang Ishan Prasad Hexiyou Xu April 16, 2013

2. Agenda Introduction Company Overview Industry Overview Stock Performance Financial Analysis Valuation Recommendation Introduction Company Industry Valuation

3. Company Profile • Manufacturer and marketer of tools, equipment, and diagnostics • Provides repair information and systems solutions • Four business segments: Commercial and Industrial, Snap-On Tools, Repair Systems & Information, and Financial Services • Headquarters: Kenosha, Wisconsin • Employs over 11,200 people worldwide • Services professional in over 130 countries • Has continuously paid dividends since 1939 without interruption or reduction • Market Cap: $4.95 Billion Source: Snap-On Inc. 2012 10-K Introduction Company Industry Valuation

4. Company History 1956: Acquired Joseph P Weidenhoff Company, manufacturer of timing and analysis equipment 1920: Snap-On Wrench Company founded by William Seidemann and Joseph Johnson 2005: Entered India 1931 1956 1920 1950s 1978 2005 1950s: Expanded concept of walk-in vans and pioneered franchisee van channel 1978: Listed on NYSE 1931: Entered international arena Source: Snap-On Inc. official website Introduction Company Industry Valuation

5. Sales Breakdown • Opportunity to grow globally as majority of sales is domestic • Ability to leverage technology and products across customers and regions • Economies of scale – optimize cost structure Breakdown of 2012 Net Sales Before Financial Services of $2.94 bn Geographic Business Segment Product Source: Snap-On Inc. 2012 10-K Introduction Company Industry Valuation

6. More About Snap-On End Markets • Vehicle dealerships • Repair centers • Aviation • Aerospace • Agriculture • Construction • Government and military • Mining • Natural resources & power generation Brands • Snap-On • ATI • Blue-Point • BAHCO • Irimo • Fish and Hook • Sun and ShopKey Brands • Cartec • John Bean Distribution Channels • Mobile Van Channel • Company Direct Sales • Distributors • E-Commerce Source: Snap-On Inc. 2012 10-K Introduction Company Industry Valuation

7. Product Segments FY2012 Revenues by Product Segment • Equipment: • Air compressors/Air processing equipment • Battery charging and testing • Cooling system • Engine service • Exhaust • Tire and wheel • Paint spray • Diagnostics & Repair Info: • Fuel and engine systems (Compression gauge sets, fuel system) • Hand held diagnostics (Gas analyzers, scan tool accessories) • Testing and electronics (Circuit testers, computer, electrical) • Tools: • Hand tools (Aviation, brake, measuring, headlamp, hammers, sockets) • Power tools (Power tool accessories, flashlights) • Tool storage (Floor mats, metal boxes, work surface, roll carts) Source: Snap-On Inc. official website Introduction Company Industry Valuation

8. Historical Financials Revenues Operating Earnings Capital Expenditures Operations before FinCo - Operating Margins (%) Source: Company 2012 10-K Introduction Company Industry Valuation

9. Key Financial Ratios Source: 2012 10-K Introduction Company Industry Valuation

10. Company Profile — Competitive Strengths Source: Snap-On 2012 10-K, Company Annual Report, DataMonitor Snap-On Report Introduction Company Industry Valuation

11. Industry Overview • Sector: Industrial Goods • Industry: Small Tools and Accessories • Most tools are for automobile • Growth from 4 sources: • Franchise network • Expand in garage • Extend to critical industries • Build in emerging markets Source: Snap-On 2012 10-K, Company Annual Report, DataMonitor Snap-On Report Introduction Company Industry Valuation

12. Porter’s Five Forces Small Tools & Accessories Threat of New Entrants: Low Lack of Industry experience/ know-how Threat of Substitute Products: Low Matured industry with large competitors Bargaining Power of Buyers: Moderate to High Pricing Pressures due to intense competition and high consumer expectations Bargaining Power of Sellers: Moderate High concentration of sellers, however subject to market prices Intensity of Competition: High Large, established players dominating market Source: Snap-On 2012 10-K, Company Annual Report, DataMonitor Snap-On Report Introduction Company Industry Valuation

13. Global Outlook Expected Global Trends • Robust consumer demand is expected to support increased production in North America at a moderate pace • Macro economic uncertainties affecting production in Europe • Continued high expected growth in emerging markets Future Growth Drivers • Increased in new mobile lead to increase in more tools usage • The number of current mobile in use is large enough to support sale • Increase in purchasing power lead to using more professional tools Source: DataMonitor Snap-On Report, Company 2012 10-K Introduction Company Industry Valuation

14. Exposure to Steel Price Fluctuation Steel is the principal raw material Source: Bloomberg Introduction Company Industry Valuation

15. Exposure to Consumer Credit Risk Slowdown in global economy can adversely affect the revenue collection Introduction Company Industry Valuation

16. Other Macroeconomic Indicators Source: Bloomberg Introduction Company Industry Valuation

17. Stock Performance Source: Yahoo! Finance Introduction Company Industry Valuation

18. SNAP-ON TOTAL SHAREHOLDER RETURN (1) • Notes: • Assumes $100 was invested on Dec. 31, 2007, and that dividends were reinvested quarterly • Company’s fiscal year ends on the Saturday that is on or nearest to December 31 of each year, for eas of calculation, the fiscal year end is assymed to be December 31. • Peer Group consists of: Stanley Black & Decker, Inc. Danaher, Emerson Electric Co., Genuine PartsCompany, Newell Rubbermaid, Pentair Ltd., SPX Corporation and W.W. Grainger Source: Company 2012 Annual Report Introduction Company Industry Valuation

19. Comparable Stock Performances • GPC: Genuine Parts Company • DHR: Danaher • SWK: Stanley Black & Decker • SPW: SPX Corporation • GWW: W.W. Grainger Source: Yahoo! Finance Introduction Company Industry Valuation

20. Valuation — Trading Comparables Source: Capital IQ Introduction Company Industry Valuation

21. Making the Numbers Work Valuation shows that Snap-On is currently trading at a discount to its peers and to its intrinsic value Current $81.23 • 52-week high: $56.88 • 52-week low: $85.50 52-Week Range $56.88 $85.50 • 2.5%-3.5%Perpetuity growth rate • 8.57% - 10.57% WACC DCF $81.67 $117.59 • 15.0x – 21.7x LTM EPS of 5.25 Trading Price/LTM EPS $79.01 $114.23 Introduction Company Industry Valuation

22. Valuation — WACC Analysis Source: Bloomberg Introduction Company Industry Valuation

23. VALUATION — SNAP-ON SANS FINANCIAL SERVICES Introduction Company Industry Valuation

24. VALUATION — FINANCIAL SERVICES Introduction Company Industry Valuation

25. Risks & Decision Drivers Risks Earnings release in 2 days Competitive Market Segment Macroeconomic Landscape • GICS Diversification • Stronger growth compared to peers • DCF Valuation Decision Drivers Introduction Company Industry Valuation

26. Recommendation Buy 100 shares @ Market Price Illustrative purposes: 100 * $81.23 = $8,123 Introduction Company Industry Valuation

27. Snap-On Incorporated Questions?