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continue to be a key driver for success in this arena. 

## Our Commercial & Industrial Group 

(C&I)  increased sales by 16.8% year over year, reflecting higher volumes to customers in critical industries and emerging markets. Higher sales and favorable manufacturing utilization contributed to an improved operating earnings margin, which reached 11.2% for the year. We continued to apply innovation through customer connection in delivering productivity-enhancing solutions that address the unique needs of professionals in a variety of critical industries. For example, the ATC storage system, highlighted earlier, was introduced during the past year to an enthusiastic reception from key professionals in the aviation and aerospace industries. 

In Asia, where we have been focused on building our physical presence over the past several years, 2010 marked significant progress in developing products tailored to the local market, including band saws, undercar equipment, power tools and our first 

## BELIEFS 

We deeply believe in: Non-negotiable Product and Workplace Safety Uncompromising Quality Passionate Customer Care Fearless Innovation Rapid Continuous Improvement 

The most valued productivity solutions in the world 

## WHO WE ARE 

handheld diagnostics unit for the Chinese market. These advancements helped drive significant inroads for us in this increasingly important region. 

Since becoming a public company in 1939, Snap-on has paid consecutive quarterly cash dividends, without interruption or reduction — a claim few public companies can make. In November, the Board of Directors approved a 6.7% increase in our dividend, underscoring our commitment to create long-term value for our shareholders. In 2010, dividends paid per share were $1.22, representing a return of $71.3 million to our shareholders. 

Overall, 2010 was an encouraging year. Considerable progress was made as we continued investing in our strategic growth initiatives aimed at strengthening our business capabilities, extending our geographic and customer diversification and expanding our presence in emerging markets. We believe that the strength of our brands, the resilience of our business models and the power of the Snap-on Value Creation Processes will 

## OUR MISSION 

## VALUES 

Our behaviors define our success: We demonstrate Integrity. We tell the Truth. We respect the Individual. We promote Teamwork. We Listen. 

enable us to continue that progress as we move forward. 

In 2010, we welcomed Gregg M. Sherrill, chairman and chief executive officer of Tenneco, Inc., to the Board of Directors. Gregg brings with him a wealth of experience and capabilities from multiple industries and broad international theatres. This year we bid farewell to Richard F. Teerlink, who is retiring from the Board after serving since 1997. Over the years, Rich’s advice, wisdom and counsel have been invaluable in making Snap-on what it is today. We thank him for his many years of dedicated service. We also wish to thank the other members of our Board, our associates and franchisees for their contributions, service and dedication, and our customers and shareholders for their ongoing support. 

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## VISION 

To be acknowledged as the: Brands of Choice Employer of Choice Franchisor of Choice Business Partner of Choice Investment of Choice 

