Our  Commercial & Industrial Group  WHO WE ARE OUR MISSION The most valued productivity solutions in the world We deeply believe in: Non-negotiable Product  and Workplace Safety Uncompromising Quality Passionate Customer Care Fearless Innovation Rapid Continuous Improvement Our behaviors define our success: We demonstrate Integrity. We tell the Truth. We respect the Individual. We promote Teamwork. We Listen. To be acknowledged as the: Brands of Choice Employer of Choice Franchisor of Choice Business Partner of Choice Investment of Choice VISION VALUES BELIEFS continue to be a key driver for success in this arena.  (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  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  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. Nicholas T. Pinchuk  Chairman and Chief Executive Officer 