Snap-On Tools Mac Tools

Binghamton Investment Fund | Snap-On Inc. November5, JuniorAnalyst Sector Head: Vienna Snap - NYSE: SNA | Price Target: SNA NYSE: 2019 : ChristopherSuchecki On Buscher Inc. $198 | Upside: 17.3%| 10Shares

NVESTMENT

INGHAMTON

UND Binghamton Investment Fund | Snap-On Inc. Agenda Valuation Risks & Mitigations Risks & Investment& Catalysts Thesis MarketSNA Position Overview Industry Overview Company SNA 2 Binghamton Investment Fund | Snap-On Inc. -20% 20% 40% 60% 80% Stock Performance Executive Summary Catalysts 0% 2014 End MarketDiversity & Security Promising Segment Expansion FavorableAutomotive Trends 2015 SNA 2016 S&P 2017 XLI 2018 10x 15x 20x 25x CreditRating Beta Debt/EquityRatio P/E Ratio MarketCap 52 PriceShare Key Metrics Relative Valuation 5x - - Long SNA Wk High/LowWk 12.83x PE 19.60x SNA $198 PT: EV/EBITDA 8.60x 13.48x IndustryAvg. A 0.96 0.72x 12.83x $9.23bn $135.29$174.46/ $ Upside: 168.76 17.3% - / A2 / A A2/ / EV/EBIT 9.45x 17.56x Shares 2.22 EV/Sales x 10 2.36x 3 Binghamton Investment Fund | Snap-On Inc. Segments Company Overview • • • • 4. 3. 2. 1. Company Financial Services FinancialServices Systems Repair Information & Commercial Industrial & Snap Current share at $158buyback Current program through franchisees Sales partially auto segment Main focuson serving manufacturer industrial & solutions Global tool • • • • • - Franchiseeselltools, trucks B2B model Tool & franchise financing, 8% of revenue Tool & franchisefinancing, 8%of revenue Diagnostics software,& 26%of revenue of 26%Specialized instruments, revenue Hand tools, market,B2B 40%of On ToolsOn 3,385 3,405 3,425 3,445 3,465 • Franchise Model $3,200m $3,600m $4,000m $4,400m RevenueMargin &EBIT and pitchproducts vanMobile franchises travel to customer locations • 2012 financing division; ease of credit promotes purchases creditpromotes financing division;of ease corporate able financethrough to purchases Customers 2015 2016 2013 Revenue Outstanding Franchisees 2017 2014 EBIT Margin 2018 2015 2019E 2016 2020E 20% 21% 22% 23% 24% 2017 SNA Mgmt.SNA Source: 4 Binghamton Investment Fund | Snap-On Inc. • • Segments Customer Overview Industry • • • • Competitive Environment Vehicle techniciansrepair main customer represent distributors, and e Distribution through franchiseetrucks, directsales, household household users,& mining heavyconstruction segments include: defense, aerospace,Secondary segment innovation on quality,Compete based price, and No unique across competitor segments all fragmented market nowith leader clear SNA markethas ~8% global share, highly • Innovation in software division &diagnostics - commerce Source: Markets & Markets Research & Markets Markets Source: Global PowerGlobal Tool Sales • • • Macroeconomic FactorsMacroeconomic Concentrated in U.S.,in Concentrated Asiain Growing U.S. vehicle on spending YoYup ~3% repairs conditions,discretionary not Essential car required repairs all economic in sales Tool sales car inversely& repairs related to car 5.3% CAGR, Historically Stable Historically CAGR, 5.3% – $31.8bn Current Valuation Current $31.8bn stable performance recession in stable performance 5 Binghamton Investment Fund | Snap-On Inc. • Opportunities Exploratory SNA Market Position • • • • • Brand PositioningBrand Easy expansion into the consumer consumer the Easy market into expansion tool Growingvocationalwith relationship schools businesses management fleet truck with Strategic integration and and quality products,(core Focus on innovation(software & diagnostics) B2B the Primarily marketserves competitors Positioned ashigherquality brand than • • • Boost product familiarityBoost earlyin career distribution channels to Similarcoreproducts, different point price and Especially consumer tool Especiallymanufacturersconsumer ie . hand tools). RCI Initiative Internal CompetitiveInternal Advantages • 4. 3. 2. 1. earnings $7.2m earnings Increased2018 manufacturing efficiency initiative systematically reduces costs boosts& RapidContinuous Improvement (RCI) operating operating RapidContinuous Improvement Initiative most robust among competitors scalability franchiseHigh through model Global Presence: 130+ countries future for capacity acquisitions diversificationHigh through acquisitions & margin benefit 2% Gross 2%Gross unfavorable translation currency currency Offset - 6 Binghamton Investment Fund | Snap-On Inc. • Expansion Promising Segment InvestmentThesis • Catalysts showing growth promising Diagnostics &commercialsegments marketshare andgrowth Robust boosts acquisition history End Market Diversity & Cash Flow Security Flow & Cash DiversityMarketEnd • Capital structure supports further M&A further supports structure Capital Promising Segment Expansion Segment Promising FavorableAutomotive Trends End MarketEnd Diversity &Security Favorable Automotive Trends • • • • North America North manyindustries, highly are necessary Tools have applicability high across tools diagnostic “smart” software& of Incorporation Demandfor specialized tools growing vehicles of Increasing average and complexity age 70% Geographic Distribution Europe 19% Other 11% 7 Binghamton Investment Fund | Snap-On Inc. • Favorable Trends Auto Industry • slow greatly • 12Yrs 10Yrs Increasing Average Vehicle Age 6 Yrs 8 Yrs repairs overrepairs new vehiclepurchases As increases,vehicleage customers choose economic conditions Mechanic’s inall tools constant for need new During recession, economic new vehiclesales • 1980 Boosts Boosts mechanicmarket, need for tools 1985 – boosts need for repairs tools & for boostsneed repairs 1990 1995 2000 2005 Translation for Snap 2010 2015 2018 SNA Mgmt.SNA Source: 0.9bn 1.0bn 1.1bn 1.2bn 1.3bn 1.4bn Capabilities with Internet Cars • • • through through M&A, relevant5+ recent acquisitions SNA actively diagnostics portfolio growing driving needs in & tool design change & Electric autonomous vehicles,among others, innovation Growing car demands complexity tool Global Installed Car Bases • 2012 their fastest growing segment growing theirfastest forSNA’sneed Increasing info. &diagnostic products, - On 2013 2014 2015 2016 Percent with Network Solutions 2017 2018 2019 2020 0% 5% 10% 15% 20% 25% McKinsey Source: 8 Binghamton Investment Fund | Snap-On Inc. • • &Industrial Segment Commercial • • Promising SegmentExpansion • Diagnostics Segment Consistent customer sales Consistent customer base w/ repeatable &industrial customers government Custom solutions aerospace, for tool per management’s guidance from2015,21% sales YoY5%growth run systems software information Market leader diagnostics and in repair existing relationship with U.S. withexisting relationship municipalities spendingprojects, from Benefits government • • • management’s guidance 2015,17%growth from sales4.5%YoY rateper run Key differentiatorfrom hand complexvehicles, in emerging marketsgrowth more Growing needdiagnostics for with increasingly - tool competitors - rate rate TMB Cognitran Car BTC Global Norbar Fastorq • • Strategic History Acquisition Interest Coverage:18.9x Capital Structure promotes continued M&A Structure Capital M&A involvement of Constant history Debt/Equity: 0.73x Debt/Equity: - • O , 2019 Notable Recent Acquisitions - segment growth, significantsegment similarities& synergiesgrowth, & diagnostic on emerging information focus Primary Liner , 2017 , 2018 , 2019 , 2017, , 2016 portfolio, segment useindustrial torque tool Expanded current & diagnostics segment& diagnostics use Repair software systems,information commercialsegment &industrial use Inspection software systems, Cash on Cash on Hand: $141m Current Ratio: 2.33x Current 9 Binghamton Investment Fund | Snap-On Inc. • • Outlook Industry Broad Security inEndMarkets Flows &Cash • • • • • Diverse Markets End Mechanic salaries YoY,up ~4% strong outlook ownershiprates single High rate rate environment credit customers for interest in global Ease of Global power ~5%YoY demand tool growing Diverse product portfolio, no majority segment subsectors distinct across Sales presence 130+countries and 14 toeasilyadaptable highlyfit diverse needs Product across needed numerable sectors, • • Clear indicator of customer marketstrength Clearindicatorof Largest subsectors: automotive, subsectors: Largest A&D, oil & gas - digit YoYdigit Chinese car in growth Strong Strong Dividend History $1.5 $2.5 $3.5 $4.5 $5.5 Franchise Model • • • $.5 reduction reduction 1939since Consecutive dividends quarterly without SNA’sdivision financing for franchisees financing through Ease of franchised vansmobile vehicletechnicians through repair Service • • 2013 Stable revenue through ongoing & contracts fees revenueStable ongoing through without significant capital expenditures segments allowsemerging in Model quickgrowth 16% Avg. Growth 2014 2015 2016 2017 $3.54 2018 2019E 2020E 2021E 10 Binghamton Investment Fund | Snap-On Inc. NTMEV/EBIT Sensitivity Analysis Valuation DCF DCF Multiples EV/EBITDA DCF DCF Growth EV/EBIT NTMPE DDM Growth Rate NTM… PE $125

194.82

2.5% 2.2% 1.9% 1.6% 1.3% $175

6.9%

262.76 248.82 236.57 225.71 216.03 PT:

WACC $198

7.4%

234.74 223.73 213.93 205.15 197.25 $225

7.9%

211.94 203.07 195.09 187.88 181.33 $275

8.4%

193.03 185.77 179.17 173.17 167.68

8.9%

177.10 171.06 165.54 160.48 155.83 $325

WACC TerminalRate Growth EV/EBITDAMultiple Investment Rationale • • • • SNA CEO: “Shares are inappropriately priced” inappropriately SNAare CEO: “Shares growth, higher for for innovative higher growth, segment diagnostic forecasts Management eventual ~4.5%total $157 weightedavg. of price ~31,000 shares purchased byrecently insiders at DDM metrics dividendStrong commitment adds value to compared to peers Undervalued • No comparable company spans all segments spans company comparable No Repurchased in 2019shares ~1.1m

11.41x

7.9% 1.9% 11 Binghamton Investment Fund | Snap-On Inc. Risks &Mitigations fluctuations could create translation could create high fluctuations Exposure Exposure (~20%)forex toEuropean rgetd&cmeiientr fFragmented & competitive nature of Global economic slowdownGlobal economic reduces industry limits market share industry growth buyer buyer sentiment costs through through M&A creates competitiveadvantage impact, created forex gain in some in periods. created impact, forex gain ueal emnsades ffinancing numerable segments and of ease Expansion fast into Strategic hedging historically reduced reduced historically hedging Strategic repair software segment organically & software organically segment repair eest ftools, presence across Necessity of Also offsetbyRCI initiative. promote continued sales - growing diagnostics & growing 12 Binghamton Investment Fund | Snap-On Inc. • • Summary FavorableTrends Auto Industry eadidpneto of Demand independent tools &repairs drivecomplexity for need and Increasing vehicleage economic sentiment sentiment economic LongSNA Price Target: • • • $198 Promising Segment ExpansionSegment Promising transactions transactions history, runway for future strategic M&A Strong segment SNA market this leader in & software solutions Growing for need diagnostic Catalysts Upside: 17.3% • • • End Market Diversity & Cash & Cash DiversityMarketEnd Strong dividendStrong history expenses minimizesexpansion, Franchise model allowsquick agnostic Tool demand is end • franchise SNA leading tool Flow Security Flow 10 Shares - market 13 Binghamton Investment Fund | Snap-On Inc. Questions? YouThank 14 Binghamton Investment Fund | Snap-On Inc. Appendix A: Projections Appendix A:

INCOME STATEMENT Revenue Snap-OnTools Group

Commercial & Industrial& Commercial

RepairSystems Information& Group

FinancialServices Revenue

Total RevenueTotal

COGS

GrossProfit OperatingExpenses

FinancialServices Expenses

Operating IncomeOperating InterestExpense Otherincome (expense) Earningsequity& earningstaxes before IncomeTaxExpense

Earningsequity before earnings EquityEarnings, net tax of NetEarnings NoncontrollingInterest Net Earnings Net Inc. attribn. Snap-On,

DilutedShares Outstanding EPS

% YoY Growth %YoY

%Non-Financial Revenue

% Growth %Growth Quarterly%of Total

%of Non-Financial Revenue

%of Financial Services Revenue

Tax Rate Tax

%Growth

$ $

FY 2015FY

(1,704)

(1,041)

50.8%

31.1%

29.2%

31.1%

3,593

1,569

1,890

(221)

(70)

(52) (16)

(12)

896

889

240

779

490

491

479

711

$ $

FY 2016FY

(1,720)

(1,048)

(3.6%)

50.1%

30.6%

29.4%

30.5%

14.1%

1,634

3,712

1,992

4.2%

5.1%

8.2%

3.3%

(244)

(83)

(52)

(13)

863

934

281

802

557

560

547

861

(8)

$ $

FY 2017FY

(1,861)

(1,161)

14.3%

15.2%

50.5%

31.5%

30.6%

30.5%

1,625 (.5%)

1,076

4,001

2,140

8.5%

7.8%

2.1%

(251)

(96)

(52)

(15)

986

313

883

823

572

573

558

(8)

$ $

FY 2018FY

(1,871)

(1,144)

50.0%

30.6%

30.2%

23.6%

21.8%

4,070

2,200

1,614 (.7%) 1,052

1,075 (.0%)

56.11

6.6%

8.8%

1.7%

12.12

(100)

(214)

(50)

(16)

330

956

696

697

680

910

$ $

FY 2019EFY

(1,877)

(1,159)

50.5%

30.9%

28.0%

23.6%

4,090

1,614

1,044 (.7%) 1,088

2,213

56.11

1.2%

9.2%

0.5%

12.19

(215)

0.5%

.0%

(96)

(52)

(16)

344

958

699

700

684

914

$ $

FY 2020EFY

(1,953)

(1,199)

50.5%

31.0%

23.6%

4,228

2,275

1,661

1,083

1,123

56.11 12.28

2.9%

3.7%

3.1%

9.3%

3.4%

(112)

(217)

0.8%

(52)

(16)

361

965

704

706

689

921

$ $

FY 2021EFY

(2,045)

(1,231)

51.0%

30.7%

31.0%

23.6%

4,384

2,339

1,714

1,130

1,166

56.11 12.66

3.2%

4.3%

3.8%

9.3%

3.7%

(116)

(223)

3.1%

(52)

(16)

375

993

949

725

727

710

$ $

FY 2022EFY

(2,146)

(1,271)

51.5%

30.5%

31.0%

23.6%

4,557

1,772

1,181

1,215

56.11 13.02

3.4%

4.5%

4.2%

9.3%

3.9%

2,411

1,019

(121)

(230)

2.9%

(52)

(16)

389

975

746

747

731

$ $

FY 2023EFY

(2,256)

(1,323)

52.0%

30.5%

31.0%

23.6%

4,744

2,488

1,834

1,236

1,268

1,039

56.11 13.30

3.5%

4.7%

4.4%

9.3%

4.1%

(126)

(234)

2.1%

(52)

(16)

405

996

761

762

746

$ $

FY 2024EFY

(2,374)

(1,379)

52.5%

30.5%

31.0%

23.6%

4,945

1,900

1,296

1,326

2,571

56.11 13.59

3.6%

4.8%

4.6%

9.3%

4.2%

1,061

1,017

(131)

(240)

2.2%

(52)

(16)

422

777

779

762

$ $

FY 2025EFY

(2,498)

(1,438)

53.0%

30.5%

31.0%

23.6%

2,656

1,969

1,358

1,387

5,154

1,082

1,038

56.11 13.88

3.6%

4.8%

4.6%

9.3%

4.2%

(136)

(245)

2.1%

(52)

(16)

440

794

795

779

1 15 Binghamton Investment Fund | Snap-On Inc.

INCOME STATEMENT Revenue Snap-OnTools Group

Commercial & Industrial& Commercial

RepairSystems Information& Group

FinancialServices Revenue

Total RevenueTotal

COGS

GrossProfit OperatingExpenses

FinancialServices Expenses

Operating IncomeOperating InterestExpense Otherincome (expense) Earningsequity& earningstaxes before IncomeTaxExpense

Earningsequity before earnings EquityEarnings, net tax of NetEarnings NoncontrollingInterest Net Earnings Net Inc. attribn. Snap-On,

DilutedShares Outstanding EPS Appendix A: Projections Appendix A:

% YoY Growth %YoY

%Non-Financial Revenue

% Growth %Growth Quarterly%of Total

%of Non-Financial Revenue

%of Financial Services Revenue

Tax Rate Tax

%Growth

$ $

FY 2015FY

(1,704)

(1,041)

50.8%

31.1%

29.2%

31.1%

3,593

1,569

1,890

(221)

(70)

(52) (16)

(12)

896

889

240

779

490

491

479

711

$ $

FY 2016FY

(1,720)

(1,048)

(3.6%)

50.1%

30.6%

29.4%

30.5%

14.1%

1,634

3,712

1,992

4.2%

5.1%

8.2%

3.3%

(244)

(83)

(52)

(13)

863

934

281

802

557

560

547

861

(8)

$ $

FY 2017FY

(1,861)

(1,161)

14.3%

15.2%

50.5%

31.5%

30.6%

30.5%

1,625 (.5%)

1,076

4,001

2,140

8.5%

7.8%

2.1%

(251)

(96)

(52)

(15)

986

313

883

823

572

573

558

(8)

$ $

FY 2018FY

(1,871)

(1,144)

50.0%

30.6%

30.2%

23.6%

21.8%

4,070

2,200

1,614 (.7%) 1,052

1,075 (.0%)

56.11

6.6%

8.8%

1.7%

12.12

(100)

(214)

(50)

(16)

330

956

696

697

680

910

$ $

Q1 2019

(3.6%)

(3.7%)

(1.1%)

48.8%

30.8%

27.5%

24.6%

23.8%

1,007

56.11

1.4%

9.3%

(450)

(284)

8.9%

3.17

(24)

(13)

(57)

410

250

262

557

250

239

182

178

(4)

$ $

Q2 2019

(1.5%)

50.2%

29.8%

27.9%

25.3%

23.1%

1,035

56.11

(.1%)

2.5%

8.8%

(478)

(284)

3.22

(24)

(12)

(56)

.9%

406

263

283

558

240

185

251

181

(5)

$ $

Q3 2019

(1.2%)

50.3%

31.1%

27.5%

24.1%

22.9%

56.11

2.8%

9.3%

(454)

(280)

1.0%

2.94

.5%

.6%

(23)

(12)

(50)

385

257

260

986

532

229

220

170

165

(5)

$ $

Q4 2019E

51.0%

32.0%

29.0%

(8.1%)

26.0%

24.2%

1,061

56.11

1.3%

1.6%

3.3%

9.2%

2.5%

(496)

(311)

2.87

(26)

(15)

(52)

413

274

284

566

230

164

216

161

(3)

$ $

FY 2019EFY

(1,877)

(1,159)

50.5%

30.9%

28.0%

23.6%

4,090

1,614

1,044 (.7%) 1,088

2,213

56.11

1.2%

9.2%

0.5%

12.19

(215)

0.5%

.0%

(96)

(52)

(16)

344

958

699

700

684

914

$ $

FY 2020EFY

(1,953)

(1,199)

50.5%

31.0%

23.6%

4,228

2,275

1,661

1,083

1,123

56.11 12.28

2.9%

3.7%

3.1%

9.3%

3.4%

(112)

(217)

0.8%

(52)

(16)

361

965

704

706

689

921

$ $

FY 2021EFY

(2,045)

(1,231)

51.0%

30.7%

31.0%

23.6%

4,384

2,339

1,714

1,130

1,166

56.11 12.66

3.2%

4.3%

3.8%

9.3%

3.7%

(116)

(223)

3.1%

(52)

(16)

375

993

949

725

727

710

$ $

FY 2022EFY

(2,146)

(1,271)

51.5%

30.5%

31.0%

23.6%

4,557

1,772

1,181

1,215

56.11 13.02

3.4%

4.5%

4.2%

9.3%

3.9%

2,411

1,019

(121)

(230)

2.9%

(52)

(16)

389

975

746

747

731

$ $

FY 2023EFY

(2,256)

(1,323)

52.0%

30.5%

31.0%

23.6%

4,744

2,488

1,834

1,236

1,268

1,039

56.11 13.30

3.5%

4.7%

4.4%

9.3%

4.1%

(126)

(234)

2.1%

(52)

(16)

405

996

761

762

746

$ $

FY 2024EFY

(2,374)

(1,379)

52.5%

30.5%

31.0%

23.6%

4,945

1,900

1,296

1,326

2,571

56.11 13.59

3.6%

4.8%

4.6%

9.3%

4.2%

1,061

1,017

(131)

(240)

2.2%

(52)

(16)

422

777

779

762

$ $

FY 2025EFY

(2,498)

(1,438)

53.0%

30.5%

31.0%

23.6% 16

2,656

1,969

1,358

1,387

5,154

1,082

1,038

56.11 13.88

3.6%

4.8%

4.6%

9.3%

4.2%

(136)

(245)

2.1%

(52)

(16)

440

794

795

779

1 Binghamton Investment Fund | Snap-On Inc.

CASH FLOWCASH ADJUSTMENTS CapEx

Depreciation

Amortization

Total D&A Total Appendix A: Projections Appendix A:

%of Non-Financial Sales

%of CapEx

%of Intangibles

$ $

FY 2015FY

71.9%

2.4%

2.5%

(80)

$ $

FY 2016FY

82.6%

2.2%

(74)

$ $

FY 2017FY

80.0%

2.2%

2.3%

(82)

$ $

FY 2018FY

75.7%

2.4%

2.2%

(91)

$ $

FY 2019EFY

77.6%

(106) 2.6%

108

$ $

FY 2020EFY

81.3%

2.7%

(114)

117

$ $

FY 2021EFY

85.0%

(123) 2.8%

104

128

$ $

FY 2022EFY

88.7%

(132) 2.9%

140

117

$ $

FY 2023EFY

92.5%

(142) 3.0%

132

153

$ $

FY 2024EFY

96.0%

(148) 3.0%

142

163

$ $

FY 2025EFY

97.5%

(152) 3.0%

148

168

19 17 Binghamton Investment Fund | Snap-On Inc.

BALANCE SHEET Assets: Current Current Assets: Cash & Equivalents Trade Receivables Finance Receivables Finance Contract Receivables Inventories Prepaid Expenses Prepaid Total Total Current Assets: PP&E, PP&E, net Deferred income taxes income Deferred LT Receivables Finance LT Contract Receivables Goodwill Other intangibles, net Other intangibles, Other Other assets Total Assets: Appendix B:BalanceSheet

FY FY 2015

1,789

4,331

563 447

498 106

414

773 267 790 195

FY FY 2016

1,884

4,723

599 473

531 117

425

935 287 896 185

FY FY 2017

2,119

1,039

5,249

676 505

639 111

484

323 924 254

FY FY 2018

2,217

1,074

5,373

141 693 519

674

495

345 902 233

Liabilities: Current Current Liabilities: Notes Payable, Current LT Payable, Debt Notes A/P Accrued benefits Accrued compensation Franchisee deposits Franchisee Other Other accrued liabilities Total Total Current Liabilities LT Debt Deferred income taxes income Deferred Retiree health care health benefits Retiree Pension Liabilities Pension Other Other LT Liabilities Total Liabilities: Equity: Common Common Stock APIC Retained Earnings Retained Accumulated OCI (OCL) Accumulated Treasury Stock Noncontrolling Interests Noncontrolling Total Equity: Total Equity: & Liabilities

$ $

FY FY 2015

1,900

2,987

2,431 4,331

(364) (574)

148

296 670 862

228

296

52 91 64

14 38

$ $

FY FY 2016

2,088

3,385

2,635 4,723

(499) (654)

301 171

308 990 709

247

317

53 90 67

13 37

$ $

FY FY 2017

1,193

2,277

3,772

2,972 5,249

(329) (900)

433 178

388

754

159 107

343

56 72 67

28 36

$ $

FY FY 2018

(1,123)

2,255

4,258

3,119 5,373

(462)

186 201

374 952 946

171 112

359

52 72 68

41 32

20 18 Binghamton Investment Fund | Snap-On Inc. Appendix C: NetAppendix C: Working Capital ΔNWC NWC LiabilitiesTotal AccruedLiabilities AccountsPayable CurrentLiabilities: CurrentTotal Assets PrepaidExpenses Inventory AccountsReceivable CurrentAssets: CALCULATION NWC %of OperatingFin. Services& Expenses %of OperatingFin. Services& Expenses DIO DSO DPO $ $ $ FY 2015FY 39.5% 1,109 1,696 1,092 9.6% 107 111 587 439 498 148 106 32 $ $ $ $ FY 2016FY 39.8% 10.3% 1,185 1,806 1,159 113 114 621 451 531 171 117 36

76 $ $ $ $ FY 2017FY 41.0%

2,027 1,334 1,278 8.8% 125 117 694 639 149 515 178 111 35 $ $ $ $ FY 2018FY 40.0%

2,076 1,378 1,309 7.5% 131 117 698 497 674 201 39

44 93 $ $ $ $ FY 2019EFY 40.1% 1,401 2,110 8.0% 1,316 135 117 709 503 206 694 100 40

24 $ $ $ $ FY 2020EFY 40.1% 1,458 2,214 1,360 8.0% 140 117 755 525 230 749 105 43

57 $ $ $ $ FY 2021EFY 40.1%

2,330 1,538 8.0% 1,410 145 117 792 540 252 108 812 45

80 $ $ $ $ FY 2022EFY 40.1%

2,430 1,607 1,466 8.0% 145 117 822 558 265 853 111 45

69 $ $ $ $ FY 2023EFY 40.1%

2,538 1,679 1,526 8.0% 145 117 859 278 896 581 116 45

72 $ $ $ $ FY 2024EFY 40.1%

2,655 1,757 8.0% 1,591 145 117 898 605 293 943 121 45

77 $ $ $ $ FY 2025EFY 40.1%

2,777 1,838 1,658 8.0% 145 117 939 308 993 631 126 45

81 19 Binghamton Investment Fund | Snap-On Inc.

Discounted Cash Analysis Flow Dollars in millions Dollars in FCFCalculation Revenue

EBIT EBITMargin NOPAT

Plus:D&A Less:CapEx Less:ΔNWC FCFF %Growth DiscountFactor PV of Cash PVFlows of

SNAP-ON Tools, Inc. Inc. SNAP-ON Tools,

WACC TerminalRate Growth EV/EBITDAMultiple

%Growth

Tax Rate Tax Appendix D:DCF

$ $

FY 2018 FY

23.5%

23.6%

4,070

1.7%

(91) (44)

956

690

731

$ $

FY 2019E FY

23.4%

23.6%

4,090

0.5%

2.9%

(106)

(24)

958

732

108

684

710

0.5

$ $

FY 2020EFY

(3.8%)

22.8%

23.6%

4,228

3.4%

(114)

(57)

965

738

117

684

610

1.5

$ $

FY 2021E FY

22.6%

23.6%

4,384

3.7%

(123)

0.%

(80)

993

759

128

684

566

2.5

$ $

FY 2022EFY

22.4%

23.6%

4,557

3.9%

(132)

1019

5.%

(69)

779

140

551

718

3.5

$ $

FY 2023EFY

21.9%

23.6%

4,744

4.1%

2.2%

(142)

1039

(72)

794

153

733

522

4.5

$ $

FY 2024EFY

21.4%

23.6%

4,945

4.2%

(148)

1061

2.%

(77)

163

748

493

811

5.5

11.41x

$ $

FY 2025EFY

7.9% 1.9%

23.6%

5,154

4.2%

21.%

1.9%

(152)

1082

(81)

827

168

762

466

6.5

TerminalCF WACC TerminalRate Growth TerminalValue PV of Terminal PVof Value EnterpriseValue Less:Debt Plus:Cash Equity ValueEquity DilutedShares Outstanding PricePerShare

TerminalEBITDA EV/EBITDA Multiple EV/EBITDA

TerminalValue PV of Terminal PVof Value EnterpriseValue Less:Debt Plus:Cash Equity ValueEquity DilutedShares Outstanding PricePerShare

Gordon Gordon Growth Method

Multiples Method Multiples

$ $

$ $ $ $ $ $

$ $

$ $ $ $ $ $

$ $

208.33

11.41x

14,257

12,607

11,690

1,058

1,250

8,716

141

13,016

194.82

11,849

10,931

7.86%

1,058

7,957

141

762

56 20

Multiples Method Multiples Binghamton Investment Fund | Snap-On Inc. Appendix D:DCF

EV/EBITDA Growth Rate

$ $

194.82

208.33

12.4x 11.9x 11.4x 10.9x 10.4x

2.5% 2.2% 1.9% 1.6% 1.3%

6.9%

0.0%

262.76 248.82 236.57 225.71 216.03

349.80 338.66 327.53 316.39 305.25

WACC

7.4%

234.74 223.73 213.93 205.15 197.25

228.29 221.27 214.25 207.23 200.21

7.9%

211.94 203.07 195.09 187.88 181.33

222.05 215.23 208.42 201.61 194.80

8.4%

193.03 185.77 179.17 173.17 167.68

216.00 209.40 202.79 196.18 189.57

8.9%

177.10 171.06 165.54 160.48 155.83

210.16 203.75 197.33 190.92 184.50 21 Binghamton Investment Fund | Snap-On Inc.

Dividend Discount Model PastDividends AnnualDividend

FutureDividends AnnualDividend

TerminalValue DiscountFactor PresentValue IntrinsicValue: Appendix E: DividendAppendix E: DiscountModel

Growth Rate Growth

Growth Rate

FY 2019EFY

$ $

15.5%

4.09

3.93

0.5

203.97

8.0% 7.5% 7.0% 6.5% 6.0%

FY 2020EFY

FY 2012FY

15.8%

15.5%

1.44

4.72

4.19

9.6%

1.5

409.83 319.86 264.49 226.99 199.90

FY 2021EFY

FY 2013FY

13.9%

15.5%

Cost of Equity of Cost

1.64

5.45

4.47

2.5

9.9%

344.24 279.11 236.44 206.32 183.93

FY 2022EFY

FY 2014FY

18.3%

15.0%

1.94

6.27

4.74

3.5

8.3%

344.24 279.11 236.44 206.32 183.93

FY 2023EFY

FY 2015FY

17.5%

15.0%

2.28

7.21

5.03

4.5

10.5%

260.33 222.11 194.81 174.33 158.41

FY 2024EFY

FY 2016FY

15.8%

15.0%

2.64

8.30

5.34

5.5

10.8%

FY 2025EFY

231.87 201.39 178.93 161.70 148.05

FY 2017FY

15.9%

15.0%

3.06

9.54

5.67

6.5

$ $

FY 2026EFY

FY 2018FY

203.97

299.78

170.59

15.7%

15.0%

10.97

3.54

7.5

DiscountRate: CostEquity of PerpetualGrowthRate:

8.3% 4.5% 22 Binghamton Investment Fund | Snap-On Inc. Appendix F: Appendix F: WACC WACC Debt Equity Outstanding Shares Stock Price After-Tax Cost of Debt Tax Rate Cost Debt of Pre-Tax Cost of Equity Beta Rate (10 Free Risk yr. note) Market Premium Risk Market Return CalculationWACC Beta Calculation 1Yr vs. S&P 0.81 2Yr vs. S&P $ $ 0.96

9,317,274,196 946,000,000

55,210,205 168.76 7.86% 23.6% 3.3% 4.4% 8.3% 1.8% 6.8% 8.6% 0.96 1Yr vs. XLI 0.75

Dilutive Dilutive Share Factor:

Stock Options Non-vested PSU's Non-vested Stock-Settled SAR's Stock-Settled Total Dilutive Effect: Basic Shares Outstanding Weighted Avg.Weighted Shares Outstanding

Outstanding Bonds:

Weighted Avg.Weighted Cost of Debt

Maturity Date

Instrument

2021 2027 2048 2Yr vs. XLI 0.91

$ $ $

Outstanding Amt.

2,440,000

187,000 278,000

250,000,000 300,000,000 400,000,000

WA WA Exercise Price $

Weight

26.3% 31.6% 42.1%

122

142

2,440,000

Issued

187,000 278,000

Repurchased

6.1% 3.3% 4.1%

YTM

1,769,130

4.4%

234,297

Net Net Dilution

55,210,205

56,111,778

670,870 187,000

901,573

43,703 23 Binghamton Investment Fund | Snap-On Inc.

Analyst Coverage Firm Baird Longbow Longbow Research Zacks Morningstar Tigress Financial Tigress Barrington Barrington Research CL King CL& King Associates Northcoast Northcoast Research Jefferies Oppenheimer & Co Oppenheimer Edward Jones ISS GovernanceISS BUY: HOLD: SELL:

Comparable Companies AnalysisCompanies Comparable

Snap-On Tools Inc. Snap-On Stanley Black &Stanley Decker, Inc. W.W. Grainger Inc. MSC Direct Co. Industrial Fortive Inc. Fortive Genuine Parts Company Genuine Ingersoll-Rand PLC Ingersoll-Rand Techtronic Industries Co. Ltd.Techtronic Industries Illinois Tool Works Inc. Illinois Makita Corp.

SNAP-ON Tools, Inc. SNAP-ONTools, Appendix G: Comparable Companies Analysis Appendix G:Comparable

Company

Position

Hold Hold Hold

Hold Hold

Sell Buy Buy Buy

Buy Buy Buy

6 5 1

MKTAY

TTNDY

Ticker

GWW

MSM

SWK

SNA

GPC

FTV

ITW

Multiple MIN Q1 MED MEAN Q3 MAX

Diversified Hardware Diversified

Consumer HardwareConsumer

Industrial Supply Industrial

Machinery

Hardware Hardware

Industry

12.83x 17.49x 17.85x 13.74x 24.38x 17.27x 19.41x 21.89x 21.33x 16.33x

13.74x 16.57x 17.38x 17.02x 17.76x 19.41x

NTM PE

12.93x 17.08x 17.57x 14.00x 19.55x 17.18x 18.40x 20.29x 20.62x 17.72x

NTM PE

14.00x 17.11x 17.38x 16.99x 17.68x 18.40x

EV/EBITDA

14.00x 12.50x

18.91x 11.06x 13.19x 14.89x 14.38x

8.60x

9.44x

9.25x

EV/EBITDA

11.78x 11.57x 13.02x 14.00x

9.25x 9.85x

NTM EV/EBITDA

12.08x 11.52x

16.68x 12.67x 12.83x 14.09x 14.56x

9.15x

9.71x

9.64x

10.16x 11.80x 11.41x 12.52x 12.83x

9.64x

EV/EBIT

21.11x 15.68x 10.90x 25.94x 16.22x 16.71x 21.76x 16.53x 10.72x

9.45x

EV/EBIT

10.72x 12.10x 15.95x 15.22x 16.59x 21.11x

NTM EV/EBIT

10.74x 14.41x 13.36x 11.20x 22.21x 15.39x 14.98x 19.29x 16.54x 11.31x

NTM EV/EBIT

11.20x 11.82x 13.89x 13.44x 14.84x 15.39x

EV/Sales

2.22x 2.01x 1.70x 1.35x 4.00x

2.11x 1.84x 3.99x 1.63x

.98x

NTM EV/Sales

EV/Sales

1.42x 1.67x 1.63x 1.93x 2.11x

.98x

2.60x 1.95x 1.66x 1.35x 3.85x

2.03x 1.77x 4.02x 1.62x

.95x

NTM EV/Sales

$ $

$ $ $ $ $

Market Cap

1.42x 1.64x 1.59x 1.88x 2.03x

.95x

21.31bn 15.76bn

21.95bn 13.81bn 27.56bn 60.42bn 48.49bn

8.46bn

3.81bn

8.17bn 24 Binghamton Investment Fund | Snap-On Inc. Appendix H: ProductExamples Appendix H: 25 Binghamton Investment Fund | Snap-On Inc. Appendix I: Product DivisionsAppendix I:Product 26 Binghamton Investment Fund | Snap-On Inc. Appendix J: Recent Acquisitions • • • • • • • • • Car Ryeson BTCGlobal Ltd Norbar TorqueSpecialists Control Fastorq TMB PowerHawk Tech Cognitran - O GeoMarketing - Liner , 2018 , TorqueLtd Holdings Corp , 2019 , , 2016 , ., 2016., – hydraulic and torquepower tool manufacturer ., 2017., – modular Software as a Service (SaaS) producerfor (SaaS) automotive Softwaremodular applications Service a as ., 2019 ., – – collision repair equipment, diagnostics & information systems equipment,diagnosticscollision &information repair , 2019 , torqueand error - vehicle inspection software and management company – rescue tool manufacturer servicing military, tool rescuemanufacturerservicing firegovernment, segments & rescue (TCS), 2017(TCS), – dealer location optimization location optimization software dealer ., 2017., – - proofing systems misc.torque solutions & tools – hydraulic and torque power tool manufacturer 27 Binghamton Investment Fund | Snap-On Inc. Appendix K: Appendix K: Competitors • • • • • • • • • Strong Strong diagnostics & software division diverseGeographically Most franchiserobust system Focus on automotiveindustry manufacturer Publicly Less diversifiedLess product offerings Lower brand name recognition Significantly robust lessfranchise system Private& aviationauto tools manufacturer • Important in Important this space - traded professional professional tradedtool Snap Cornwell ToolsCornwell - On Tools • • • • • • • • Lessexpansive reach geographic Significantly robust lessfranchise system automotiveindustry not More entirelygeneralized,focusedon Decker. U.S. More regionally Lessfocus on software & diagnostics conglomerate Fortive of Subsidiary Professional hand tool manufacturer - ae usdayo Stanley Black& of subsidiary based Matco Mac Tools - focusedin the U.S. Tools 28 Binghamton Investment Fund | Snap-On Inc. • • Revenue Miss Earnings Appendix L: Q32019 • Results Growth driven sales increase,by 1.4% organic $901.8m delivered, $909.6 expected Full year Full year sales estimate: ~$4.1bn acquisition • • • Core hand tool segment experienced flat tool Coregrowth hand segment experiencedflat +2.8% Diagnostics performing: highest typicallyQ3 lowest quarter Financial Services Revenue FinancialServices Net Earnings of $164.6m, of Net Earnings iue P f$2.96, Dilutedof EPS e ae f$901.8m, Net of Sales - related related sales Organic Sales Organic +140bps +390bps +40bps +256bps +79bps EPS Beat Segment Expansion • • • • • • Full year Full year estimate: $12.64 outstanding shares, increases EPS share reduces buyback Rigorous program Margin drivenexpansion by RCIinitiative $2.96 delivered, $2.94 expected growth & Information Diagnostics growth Commercial & Industrial • • • • Cost reduction and manufacturing reductionand Cost efficiency typically lowestQ3 quarter technology newdiagnostic Growth drivenof bysales increased markets European in specialty& sales Increased : 2.9% organic : 2.9% organic : 3.2% organic : 3.2% organic 29