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generation, where mission-critical repairs and activities require repeatability and reliability, is a natural extension of Snap-on’s value proposition, and one where we continue to make progress. 

We are also acting to capitalize on the building opportunities in emerging 

year progressed. Through 2010, sales for the Group returned to pre-recession levels — evidence that our franchisee stimulus programs implemented in the face of the economic downturn were effective. In the year, we continued to invest significantly in training and product support to keep our franchise 

increased 8.8% in 2010 and yielded an improved operating earnings margin of 19.4%. We achieved higher sales of equipment, diagnostics and repair information solutions to owners and managers of independent repair shops, and increased activity with automotive OEM dealerships. Sales were driven by innovation, 

## “OVERALL, 2010 WAS AN ENCOURAGING YEAR.“ 

markets, where there is a developing demand for our solutions, in what is still the early stages of vehicle repair and other critical industries. 

The Snap-on Tools Group  represents our worldwide franchised van business, whose primary customers are vehicle repair technicians. In 2010, net sales increased 10.6% and the operating earnings margin was 11%. Volumes in this segment were among the first to recover as sales of longer payback items such as diagnostics and tool storage, which were heavily impacted by the recession, improved as the 

In 2010, IndustryWeek  magazine selected the Snap-on Murphy, North Carolina, power tools manufacturing facility as one of the top 10 plants in North America. The award recognizes facilities that are on the leading edge in competitiveness, in customer satisfaction and in creating stimulating and rewarding work environments. This speaks to the powerful combination of the Snap-on Value Creation Processes and of the dedicated associates who are committed to delivering the most valued productivity solutions in the world . . . every day. 

network robust. In 2010, the annual Snap-on Franchisee Conference featured more products, more training and a business and profit center aimed specifically at helping franchisees improve their business effi ciency. Franchisees attended in signifi cantly higher numbers, displaying considerable energy and enthusiasm regarding prospects for their future. We thank our dedicated franchisees and their families for their ongoing commitment and passion for Snap-on. 

Net sales for the Repair Systems & Information Group (RS&I) 

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including the development and launch of new diagnostics and information products, as well as the continued expansion of functionality and content within existing RS&I solutions. For example, in 2010, we launched a new diagnostics unit, the VERDICT™, which raised industry handheld standards with features including Wi-Fi Internet capability, integration with Snap-on’s proprietary repair information databases and a wireless touch screen display that allows remote use by the technician throughout the garage. Expanding our product range with new products and services will 

