Illinois Tool Works Inc. · NYSE:ITW

Illinois Tool Works — Jefferies 10th Annual Global Industrials Conference (August 2014)

6 slides from Illinois Tool Works's conference presentation, Aug 12, 2014

  1. Slide 1: Jefferies 10th Annual Global Industrials Conference

    Jefferies 10th Annual Global Industrials Conference Michael M. Larsen, Senior Vice President & CFO John Brooklier, Vice President Investor Relations August 12, 2014 New York City FORWARD LOOKING STATEMENTS Safe Harbor Statement This conference call contains forward-looking statements within the mean

  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: 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

  4. Slide 4: Q2 2014 Financial Summary

    Q2 2014 Financial Summary Q2 2014 Actuals Highlights ● Q2 EPS from continuing ops $1.21 up 32% EPS +32% ● Record operating margin of 20.5% … $1.21 EPS $0.92 Enterprise initiatives contribute 120 bps ● Total revenue up 4%; organic revenue grew $3.7B Total $3.6B 1.4% in a mixed environment Revenue ● C

  5. Slide 5: Q2 2014 Operating Margins

    Q2 2014 Operating Margins Operating Margins Key Drivers 20.5% 17.5% Q2 Enterprise Initiatives +120 bps Q2‘13 Q2‘14 Volume +40 OM% V bps Automotive OEM 23.7% +310 Price/Cost +10 T&M and Electronics 15.2 +150 Food Equipment 19.5 +80 Other (incl. ’13 pension settlement) +130 Polymers & Fluids 19.6 +130

  6. Slide 6: 2014 Financial Guidance

    2014 Financial Guidance Q3 2014 Guidance 2014 Guidance EPS +37% EPS +26% at mid-point at mid-point $1.19 - $1.27 $4.50 - $4.62 EPS $0.90 $3.63 EPS Up 3-4% Up 3-4% $3.6B $14.1B Total Total Revenue Revenue Q3’13 Q3’14F 2013 2014F ● 2-3% organic revenue growth ● 2-3% organic revenue growth ● Initiative

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