Ivan Feinseth: So just 2 questions. One, as far as new product development, where do you see going with — as car onboard ADAS systems continue to grow of increasing diagnostic and calibration capabilities inside, let’s say, Apollo and Zeus. And then also the CEO of General Motors has said many times she envisions $50 billion in revenue coming from software and subscriptions, especially as cars become increasingly — have increasing software-defined functionality. And though the dealerships will have to kind of become an increasing part of that equation. So how do you see that benefiting dealer…
Nicholas Pinchuk: No, that’s going to — well, I think it benefits us greatly because look, if you want to — sort of like it isn’t a $50 billion example, but we do have examples associated with just what you said, ADAS, the advanced driver assistance systems, and the calibrations associated with that. That’s behind — that’s sold enabled both through our diagnostics, like you said, like Zeus and Apollo in those, and it’s enabled through our undercar equipment business. And those are the 2 businesses that taste the RS&I group, they were both up nice double digits. And really the software and the physicals associated with calibration have been helping drive the situation in undercar equipment and the input around ADAS systems in Mitchell 1 and in the diagnostic systems has helped drive their attractiveness.
And as more of that goes in, those products are going to get more and more essential to the technician. You see, what you’re saying, I think another way to talk about this, Ivan, is this, is that right now, let’s say, if you look at the total car park, like maybe 45% of the repairs require a diagnostic unit. But if you look at new units, it’s like 80%. And as software starts to rise, more and more of the places where we have leadership in terms of repair information and in the software that’s going to wheel that information and the calibration will be important for us. And that’s all making money for us now. And the wider it gets, the more we’re going to have in that situation. So we’re developing products along that line. One of the things that you don’t even think about is in collision.
I think you know this very well. But the thing is right now, new cars are like a neural network of sensors. And if they get dinged, you get your bumper dinged. It’s a major operation to recalibrate it and reset the sensors and so on. And that’s making — that’s driving a lot of the underneath car — the undercar activity in RS&I. So we’re already seeing that. And so we’re focusing on that stuff as well. A big portion of our business now — or development now is associated with software. And you’re going to see that we’re going to focus on it more and more as we go forward. .
Ivan Feinseth: I believe software sales is going to be an increasing opportunity for you, so I’m excited for it.
Nicholas Pinchuk: Yes. We’re going to make sure we get big focus on it. But I think we already have a pretty good position in it. We just see as it develops, these are going to create opportunities that are going to lay out there in front of you. .
Ivan Feinseth: Congratulations again.
Nicholas Pinchuk: Thanks a lot. Take care. .
Operator: And this will conclude our question-and-answer session. I’d like to turn the conference back over to Sara Verbsky for any closing remarks. .
Sara Verbsky: Thank you all for joining us today. A replay of this call will be available shortly on snapon.com. As always, we appreciate your interest in Snap-on. Good day.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect your lines at this time.
