Snap-on (SNA) investor relations material

Business model and segment overview

• Focuses on premium tools and solutions for auto repair, commercial, industrial, and critical industries, with direct weekly engagement with technicians and repair shops.

• Tools Group generates about 34%-35% of revenues, with Repair Systems & Information and Commercial & Industrial serving broader markets including aviation, oil, gas, and military.

• Organic growth targets: Tools Group ~4%, Repair Systems & Information >5%, Critical Industries ~6%.

• Emphasizes close observation of customer work to identify and solve critical tasks, justifying premium pricing.

Market trends and customer sentiment

• Recent sales in the Tools Group have been flat, with technician confidence described as low despite strong employment and wage growth.

• Technicians are deferring large purchases, favoring high-margin hand tools over big-ticket items like tool storage.

• Some stabilization and green shoots observed in tool storage and franchisee confidence, with positive trends in Critical Industries post-government shutdown.

• Short-term oil price spikes have limited long-term impact on miles driven or repair demand; infrastructure repair needs may increase after disruptive events.

Margin drivers and operational strategy

• Margins have remained strong post-COVID due to continuous operations, supply chain inflation, and sticky pricing.

• Rapid Continuous Improvement and new product introductions help offset inflation and support premium pricing.

• Brand building investments reinforce premium positioning and long-term customer loyalty.