Slide 1: ITW Conference Call Third Quarter 2011
Exhibit 99.2 ITW Conference Call Third Quarter 2011 October 25, 2011 1 Q3 2011 Conference Call
Slide 2: Agenda
ITW Agenda g 1. Introduction…………………...….. John Brooklier 2. Third Quarter Highlights………... David Speer 3 Financial Overview…………..….. 3. Overview Ron Kropp 4. Reporting Segments………....…. John Brooklier 5. 2011 Forecasts…..……….….…… Ron Kropp 6. Q & A………………......……...…... John Brooklier/Ron Kropp/David
Slide 3: Forward-Looking Statements
ITW Forward - Looking g Statements This conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, without limitation, statements regarding operating performance performance, revenue growth growth, diluted income per shar
Slide 4: Conference Call Playback
Conference Call Playback Replay number: 203-369-0637; No pass code necessary Telephone replay available through midnight of Nov. 8, 2011 Webcast / PowerPoint replay available at www.itw.com Supplemental financial and investor information will be available on the ITW website under the “Investor Relat
Slide 5: Q3 2011 Highlights
Q3 2011 Highlights • Total revenues grew 16.2%; Organic revenues increased 6.2% • Overall end market demand in Q3 was largely in line with Q2 levels and our forecast expectations • Produced diluted EPS growth of 25% • Generated $704 million in free operating cash flow – Raised our annual dividend pa
Slide 6: ITW Quarterly Highlights
ITW Quarterly Q y Highlights g g $ in Millions 2010 2011 F(U) Last Year Q3 Q3 Amount % Operating Revenues 3,941.1 4,580.5 639.4 16.2% Operating Income 619.7 714.3 94.6 15.3% % of Revenues 15.7% 15.6% (0.1) pts Income from Continuing Operations Income Amount 403.1 490.1 87.0 21.6% Income Per Share-Di
Slide 7: ITW Quarterly Operating Analysis
ITW Quarterly y Operating p g Analysis y % F(U) Prior Year Operating Operating Operating Revenues Income Margins Base Manufacturing Business Operating Leverage 6.2% 16.2% 1.5% Changes in VM & OH costs - -7.8% -1.2% Total 6 2% 6.2% 8 4% 8.4% 0 3% 0.3% Acquisitions/Divestitures 5.3% 3.1% -0.3% Transla
Slide 8: ITW Non Operating & Taxes
ITW Non Operating p g & Taxes $ in Millions 2010 2011 F(U) Last Year Q3 Q3 Amount % Operating Income 619.7 714.3 94.6 15.3% Interest Expense (43.5) (48.6) (5.1) Other Income / (Expense) 10 1.0 24 7 24.7 23 7 23.7 Income from Continuing Operations - Pretax 577.2 690.4 113.2 19.6% Income Taxes 174.1 2
Slide 9: ITW Invested Capital
ITW Invested Capital $ in Millions 9/30/10 6/30/11 9/30/11 Trade ade Receivables ece ab es 2,747.5 , 5 3,146.0 3, 60 2,985.4 ,985 Days Sales Outstanding 61.0 * 61.4 58.7 Inventories 1,612.7 1,919.7 1,794.3 Months on Hand 1.8 ** 1.9 1.8 Prepaids and Other Current Assets 294.5 507.4 498.1 Accounts Pay
Slide 10: ITW Debt & Equity
ITW Debt & Equity q y $ in Millions 9/30/10 6/30/11 9/30/11 Short Term Debt 639.4 1,450.4 1,040.8 Long Term Debt 2,812.1 2,622.8 3,522.1 Total Debt 3,451.5 4,073.2 4,562.9 Stockholders' Equity 9,266.7 10,422.0 9,852.0 Total Capital 12,718.2 14,495.2 14,414.9 Less: Cash (1,725.3) (1 725 3) (1,230.7)
Slide 11: ITW Cash Flow
ITW Cash Flow $ in Millions 2010 2011 Q3 Q3 Net Income 422.0 422 0 507.6 507 6 Adjust for Non-Cash Items 126.0 167.3 Changes in Trade Receivables 34.1 58.3 Changes in Inventories (38.9) 65.0 Changes in all other Operating Assets & Liabilities (19.3) (11.0) Net Cash From Operating Activities 523.9 78
Slide 12: ITW Acquisitions
ITW Acquisitions $ in Millions 2010 2011 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Annual Revenues Acquired 26 253 120 131 530 329 156 296 Purchase Price Cash Paid 27 199 145 160 531 556 190 480 Number of Acquisitions 4 7 5 8 24 6 7 8 12 Q3 2011 Conference Call
Slide 13: Transportation Quarterly Analysis
Transportation Quarterly y Analysis y Q3 2011 $ in Millions Operating Operating Operating Key Points (Q3’11 vs Q3’10) Revenues Income g Margins 2011 Q3 790.6 120.9 15.3% • Segment organic revenues: 9.5% 2010 Q3 628.4 92.0 14.6% • Auto OEM/Tiers: Worldwide base $ Inc(Dec) 162.2 28.9 0.7% revenue grow
Slide 14: Industrial Packaging Quarterly Analysis
Industrial Packaging Quarterlyy Analysis y Q3 2011 $ in Millions Operating Operating Operating Key Points (Q3’11 vs. Q3’10) Revenues Income g Margins 2011 Q3 664.3 70.4 10.6% • Segment organic revenues: 6.3% reflected reasonable industrial 2010 Q3 575.1 63.4 11.0% production activity worldwide, $ In
Slide 15: Power Systems and Electronics Quarterly Analysis
Power Systems and Electronics Quarterly y Analysis y Q3 2011 $ in Millions Operating Operating Operating Key Points (Q3’11 vs. Q3’10) Revenues Income g Margins 2011 Q3 750.5 147.8 19.7% • Segment organic revenues: 11.7% largely due to strong contributions 2010 Q3 619.3 128.0 20.7% from worldwide wel
Slide 16: Food Equipment Quarterly Analysis
Food Equipment Quarterly y Analysis y Q3 2011 $ in Millions Operating Operating Operating Key Points (Q3’11 vs. Q3’10) Revenues Income Margins g 2011 Q3 511.5 83.1 16.3% • Segment organic revenues: -0.5% as equipment sales were weak in 2010 Q3 487.5 86.2 17.7% North America and Europe; service $ Inc
Slide 17: Construction Products Quarterly Analysis
Construction Products Quarterly Analysis Q3 2011 $ in Millions Operating Operating Operating Key Points (Q3’11 vs. Q3’10) Revenues Income Margins 2011 Q3 513.8 63.7 12.4% • Segment organic revenues: 2.9% as North America and Europe 2010 Q3 455.8 52.7 11.6% both post positive organic revenue growth $
Slide 18: Polymers and Fluids Quarterly Analysis
Polymers and Fluids Quarterly y Analysis y Q3 2011 $ in Millions Operating Operating Operating Key Points (Q3’11 vs Q3’10) Revenues Income Margins g 2011 Q3 362.4 61.8 17.1% • Segment organic revenues: 8.2% reflected stronger 2010 Q3 277.7 49.9 18.0% industrial and niche end market demand for both p
Slide 19: Decorative Surfaces Quarterly Analysis
Decorative Surfaces Quarterly y Analysis y Q3 2011 $ in Millions Operating Operating Operating Key y Points ((Q3’11 vs. Q3’10)) Revenues Income Margins g 2011 Q3 283.2 34.2 12.1% • Segment organic revenues: 8.7% 2010 Q3 251.4 31.5 12.5% • North America laminate base $ Inc(Dec) 31.8 2.7 -0.4% revenue
Slide 20: All Other Quarterly Analysis
All Other Quarterly y Analysis y Q3 2011 $ in Millions Operating Operating Operating Key Points (Q3’11 vs. Q3’10) Revenues Income Margins • Segment organic revenues: 2011 Q3 725.7 132.3 18.2% 3.1% 2010 Q3 669.0 115.9 17.3% $ Inc(Dec) 56.7 16.4 0.9% • Worldwide test and measurement base revenues: % I
Slide 21: ITW 2011 Forecast
ITW 2011 Forecast Mid Low High g Point 4th Quarter 2011 Total Revenues 9.5% 12.5% 11.0% Diluted Income per Share from Continuing Operations $0.86 $0.94 $0.90 % F(U) 4th Quarter 2010 30% 42% 36% Full Year 2011 Total Revenues 15.1% 15.9% 15.5% Diluted Income per Share from Continuing Operations $4.04
Slide 22: ITW 2011 Forecast Key Assumptions
ITW 2011 Forecast Key Assumptions • Exchange rates hold at current levels • Acquired revenues in the $800 million to $1 billion range for the year • Restructuring costs of $50 to $60 million for the full year • Tax rate range of 28.5% to 29.5% for Q4 and full year (excludes the impact of the Q1 Aust
Slide 23: ITW Conference Call Q&A
ITW Conference Call Q&A Third Thi d Quarter Q t 2011 October 25, 2011 23 Q3 2011 Conference Call