Illinois Tool Works Inc. · NYSE:ITW

Illinois Tool Works — Deutsche Bank 2014 Global Industrials and Basic Materials Conference

7 slides from Illinois Tool Works's conference presentation, Jun 4, 2014

  1. Slide 1: Deutsche Bank 2014 Global Industrials and Basic Materials Conference

    Deutsche Bank 2014 Global Industrials and Basic Materials Conference Michael Larsen, Senior Vice President & CFO John Brooklier, Vice President Investor Relations June 4, 2014 Chicago, Illinois FORWARD LOOKING STATEMENTS Safe Harbor Statement This conference call contains forward-looking statements

  2. Slide 2: ITW's Enterprise Strategy

    ITW’s Enterprise Strategy Differentiated Differentiated Business Model Performance 80/20 Business Solid Growth Process Key Enterprise Initiatives • Portfolio Management Customer-Back • Business Structure Strong Returns Innovation Simplification • Strategic Sourcing Decentralized Best-in-Class Entrep

  3. Slide 3: Seven highly differentiated, global businesses

    Seven highly differentiated, global businesses Automotive Test & Food Polymers Welding Construction Specialty OEM Measurement Equip. & Fluids Products Products Electronics % of ’13 Revenue 17% 15% 15% 14% 13% 12% 14% ‘13 Op. Margin ~21% ~15% ~19% ~17% ~25% ~14% ~20% Change vs. ‘12 +110bps -10bps +17

  4. Slide 4: Enterprise performance goals

    Enterprise performance goals Financial Goals by 2017: Portfolio Management  Robust competitive advantages 200bps Solid Growth organic growth  Strong sustainable differentiation  Positive long-term fundamentals above market World-Class Operating Efficiency Best-in-Class  80/20 business process 20

  5. Slide 5: Q1 2014 Financial Summary

    Q1 2014 Financial Summary Financial Highlights EPS +15% $1.01 ● Organic revenue up 3.3% … international EPS $0.88 up 6.3% $3.6B ● Total revenue up 4.4% Total $3.4B ● Good progress on operating margins … up Revenue 180 bps driven by enterprise initiatives – BSS and sourcing contribute 120 bps ● Accel

  6. Slide 6: Q1 2014 Operating Margin Expansion

    Q1 2014 Operating Margin Expansion Operating Margins Key Drivers 18.7% 16.9% Q1 Enterprise Initiatives +120 bps Q1‘13 Q1‘14 Volume +80 OM% V bps Automotive OEM 23.3% +350 Price/Cost +10 T&M and Electronics 12.2 -80 Food Equipment 18.6 +190 Acquisitions -20 Polymers & Fluids 16.6 +200 Margin Expansio

  7. Slide 7: Financial Guidance

    Financial Guidance Q2 2014 EPS Guidance 2014 EPS Guidance EPS +30% EPS +25% at mid-point at mid-point $1.16 - $1.24 $4.45 - $4.65 EPS $0.92 $3.63 EPS Up 3-5% Up 3-4% $3.6B $14.1B Total Total Revenue Revenue Q2’13 Q2’14F 2013 2014F ● 2-3% organic revenue growth ● 2-3% organic revenue growth ● Initiat

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