TO OUR SNAP-ON  SHAREHOLDERS During 2010, we made  significant progress in the four strategic areas  that we’ve identified as  decisive to our future: enhancing our franchise  network, expanding in the vehicle repair garage,  extending to critical  industries and building in emerging markets — all so that we can reach  more professionals.  We believe continued solid  execution in these four  strategic areas will place  Snap-on in a strong position  as we move forward,  creating long-term value for our shareholders.  Our performance in 2010 was  evidence of solid progress on our  strategic priorities, of continuing  benefits from our Snap-on Value  Creation Processes and of  stabilization in the overall business  environment. We were encouraged by the continuing higher sales and  earnings as the year progressed,  demonstrating a trend of increasing  strategic strength. Our customers  began to show restored confidence as their purchases of longer payback  items such as diagnostics, undercar  equipment and tool storage recovered  from the economic downturn. We were  also fortified by the ongoing benefits  from our commitment to Snap-on  Value Creation, driving product  innovation, customer connection,  quality assurance, safety and rapid  continuous improvement (RCI). For the year, net sales of $2.62 billion  were up 10.9% compared to 2009.  Operating income margin of 12.4%  improved 200 basis points from  10.4% and diluted earnings per share  of $3.19 improved 37.5% from $2.32  in 2009. These results reflect not  only the positive effects of higher  sales volumes from the improved  economic environment and further  penetration in key markets, but also the benefits of RCI and other  initiatives implemented in 2010 and previously. Through ongoing  advances with RCI and our other  Snap-on Value Creation Processes,  we believe that we have meaningful  opportunity for further overall  improvement and higher efficiency,  which will enable us to shift  resources to key initiatives and  investments aimed at future growth. 4