S NAP -O N RCMP Investment Presentation 1 Richie Hartz Ha Da Jang Diana Yang April 16, 2013 Diana Yang Iris Zhang Ishan Prasad Hexiyou Xu

A GENDA 2 I NTRODUCTION C OMPANY I NDUSTRY V ALUATION Introduction Company Overview Industry Overview Stock Performance Financial Analysis Valuation Recommendation

C OMPANY P ROFILE 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 3 Source: Snap-On Inc K I NTRODUCTION C OMPANY I NDUSTRY V ALUATION

C OMPANY H ISTORY 4 Source: Snap-On Inc. official website I NTRODUCTION C OMPANY I NDUSTRY V ALUATION 1920: Snap-On Wrench Company founded by William Seidemann and Joseph Johnson 1950s: Expanded concept of walk-in vans and pioneered franchisee van channel 2005: Entered India 1978: Listed on NYSE 1931: Entered international arena 1956: Acquired Joseph P Weidenhoff Company, manufacturer of timing and analysis equipment s

S ALES B REAKDOWN 5 GeographicBusiness SegmentProduct Source: Snap-On Inc K 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 I NTRODUCTION C OMPANY I NDUSTRY V ALUATION

M ORE A BOUT S NAP -O N 6 Source: Snap-On Inc K Brands Snap-On ATI Blue-Point BAHCO Irimo Fish and Hook Sun and ShopKey Brands Cartec John Bean I NTRODUCTION C OMPANY I NDUSTRY V ALUATION End Markets Vehicle dealerships Repair centers Aviation Aerospace Agriculture Construction Government and military Mining Natural resources & power generation Distribution Channels Mobile Van Channel Company Direct Sales Distributors E-Commerce

P RODUCT S EGMENTS 7 Source: Snap-On Inc. official website I NTRODUCTION C OMPANY I NDUSTRY V ALUATION FY2012 Revenues by Product Segment 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) 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) Equipment:  Air compressors/Air processing equipment  Battery charging and testing  Cooling system  Engine service  Exhaust  Tire and wheel  Paint spray

H ISTORICAL F INANCIALS 8 I NTRODUCTION C OMPANY I NDUSTRY V ALUATION RevenuesOperating Earnings Capital ExpendituresOperations before FinCo - Operating Margins (%) Source: Company K

K EY F INANCIAL R ATIOS 9 Source: K I NTRODUCTION C OMPANY I NDUSTRY V ALUATION

Company Profile — Competitive Strengths 10 StrengthsWeaknesses Diversified portfolio catering to large customer baseRevenues dependent on franchisees Strong and effective distribution networkHeavily dependent on credit risk of customers Attractive dividend yieldSignificant dependence on European market Strong and constant innovation Stable supply of short-term raw materials OpportunitiesThreats Rising demand for power and hand tools in the USIntense competition Growing global automotive aftermarketExposure to commodity price fluctuations Repair industries develop in emerging marketsFinancial regulatory changes Expand services adjacent to existing markets Increased costs due to new compliance and environmental regulations Extend to critical industries outside of vehicle repair I NTRODUCTION C OMPANY I NDUSTRY V ALUATION Source: Snap-On K, Company Annual Report, DataMonitor Snap-On Report

I NDUSTRY O VERVIEW 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 11 Source: Snap-On K, Company Annual Report, DataMonitor Snap-On Report I NTRODUCTION C OMPANY I NDUSTRY V ALUATION

Porter’s Five Forces 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 12 I NTRODUCTION C OMPANY I NDUSTRY V ALUATION Small Tools & Accessories Source: Snap-On K, Company Annual Report, DataMonitor Snap-On Report

G LOBAL O UTLOOK 13 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 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 I NTRODUCTION C OMPANY I NDUSTRY V ALUATION Source: DataMonitor Snap-On Report, Company K

E XPOSURE TO S TEEL P RICE F LUCTUATION 14 Steel is the principal raw material I NTRODUCTION C OMPANY I NDUSTRY V ALUATION Source: Bloomberg

E XPOSURE TO C ONSUMER C REDIT R ISK 15 Slowdown in global economy can adversely affect the revenue collection I NTRODUCTION C OMPANY I NDUSTRY V ALUATION

O THER M ACROECONOMIC I NDICATORS 16 I NTRODUCTION C OMPANY I NDUSTRY V ALUATION Source: Bloomberg

S TOCK P ERFORMANCE 17 Source: Yahoo! Finance I NTRODUCTION C OMPANY I NDUSTRY V ALUATION

SNAP-ON TOTAL SHAREHOLDER RETURN (1) 18 I NTRODUCTION C OMPANY I NDUSTRY V ALUATION Notes: 1Assumes $100 was invested on Dec. 31, 2007, and that dividends were reinvested quarterly 2Company’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. 3Peer 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

C OMPARABLE S TOCK P ERFORMANCES GPC: Genuine Parts Company DHR: Danaher SWK: Stanley Black & Decker SPW: SPX Corporation GWW: W.W. Grainger 19 Source: Yahoo! Finance I NTRODUCTION C OMPANY I NDUSTRY V ALUATION

Valuation — Trading Comparables 20 I NTRODUCTION C OMPANY I NDUSTRY V ALUATION Source: Capital IQ

M AKING THE N UMBERS W ORK 52-week high: $ week low: $ Week Range DCF Trading Price/LTM EPS $56.88$85.50 $81.67$ $79.01$ %-3.5%Perpetuity growth rate 8.57% % WACC 15.0x – 21.7x LTM EPS of 5.25 Current $81.23 Valuation shows that Snap-On is currently trading at a discount to its peers and to its intrinsic value I NTRODUCTION C OMPANY I NDUSTRY V ALUATION

Valuation — WACC Analysis 22 I NTRODUCTION C OMPANY I NDUSTRY V ALUATION Source: Bloomberg

VALUATION — SNAP-ON SANS FINANCIAL SERVICES 23 I NTRODUCTION C OMPANY I NDUSTRY V ALUATION

VALUATION — FINANCIAL SERVICES 24 I NTRODUCTION C OMPANY I NDUSTRY V ALUATION

R ISKS & D ECISION D RIVERS (1)GICS Diversification (2)Stronger growth compared to peers (3)DCF Valuation (1)Earnings release in 2 days (2)Competitive Market Segment (3)Macroeconomic Landscape Risks Decision Drivers I NTRODUCTION C OMPANY I NDUSTRY V ALUATION

R ECOMMENDATION Buy 100 Market Price Illustrative purposes: 100 * $81.23 = $8,123 I NTRODUCTION C OMPANY I NDUSTRY V ALUATION

Questions? Snap-On Incorporated 27