Illinois Tool Works Inc. · NYSE:ITW
Illinois Tool Works — Q4 2021 Earnings Presentation
11 slides from Illinois Tool Works's earnings presentation, Feb 3, 2022
Slide 1: Fourth Quarter 2021 Earnings Conference Call
FOURTH QUARTER 2021 EARNINGS CONFERENCE CALL FEBRUARY 3, 2022
Slide 2: Forward-Looking Statement / Safe Harbor Statement
F O RWA R D - L O O K I N G S TAT E M E N T SAFE HARBOR STATEMENT This presentation and related conference call contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements regarding the dur
Slide 3: Q4'21 Financial Performance
Q4'21 FINANCIAL PERFORMANCE GAAP EPS $2.02 $1.93 COMMENTARY - Excl. MTS impact $1.95 $3.7B +5.9% • Strong growth momentum as six of seven segments MTS delivered combined organic growth of +12% $3.5B +5.3% - Automotive OEM continued to be impacted by production Organic limitations due to component su
Slide 4: Q4'21 Segment Performance: Automotive OEM and Food Equipment
Q4'21 SEGMENT PERFORMANCE AUTOMOTIVE OEM FOOD EQUIPMENT $800M +21% (17)% $569M $663M $471M 23.9% (710) bps 22.9% +60 bps 16.8% 22.3% Q4'20 Q4'21 Q4'20 Q4'21 Q4'20 Q4'21 Q4'20 Q4'21 Total Revenue Operating Margin Total Revenue Operating Margin • Organic revenue (16)% • Organic revenue 21% • North Ame
Slide 5: Q4'21 Segment Performance: Test & Measurement/Electronics and MTS
Q4'21 SEGMENT PERFORMANCE TEST & MEASUREMENT/ELECTRONICS MTS ACQUISITION CLOSED DECEMBER 1, 2021 $636M +19% • Highly complementary to our Test & Measurement and MTS 28.6% (90) bps Electronics segment, positions ITW in new industry verticals $534M 27.7%* MTS 26.4% • Tight strategic fit that will rein
Slide 6: Q4'21 Segment Performance: Welding and Polymers & Fluids
Q4'21 SEGMENT PERFORMANCE WELDING POLYMERS & FLUIDS $447M +2% $422M +15% 30.0% +110 bps $437M $368M 28.9% 25.4% (130) bps 24.1% Q4'20 Q4'21 Q4'20 Q4'21 Q4'20 Q4'21 Q4'20 Q4'21 Total Revenue Operating Margin Total Revenue Operating Margin • Organic revenue 15% • Organic revenue 3% • Equipment 14%, Co
Slide 7: Q4'21 Segment Performance: Construction and Specialty Products
Q4'21 SEGMENT PERFORMANCE CONSTRUCTION PRODUCTS SPECIALTY PRODUCTS 27.0% (50) bps $480M +12% 26.2% (40) bps $467M +6% 26.5% $430M 25.8% $439M Q4'20 Q4'21 Q4'20 Q4'21 Q4'20 Q4'21 Q4'20 Q4'21 Total Revenue Operating Margin Total Revenue Operating Margin • Organic revenue 12% • Organic revenue 7% • Nor
Slide 8: 2021 Financial Performance
2021 FINANCIAL PERFORMANCE GAAP EPS $6.63 $8.51 +28% COMMENTARY - Excl. one-time tax items $8.09 • Disciplined execution in a challenging environment: - Leveraged 80/20 FTB and localized supply chain $14.5B +15% capabilities to sustain world-class customer service $12.6B - Implemented appropriate an
Slide 9: 2022 Financial Guidance
2022 FINANCIAL GUIDANCE COMMENTARY GAAP EPS $8.51 $8.90 to $9.30 +10 to - Excl. ‘21 tax items $8.09 15% • Organic growth of 6 to 9% $15.5 to $16B +7.5 to - MTS acquisition +3%, foreign currency translation (1.5)% MTS 10.5% $14.5B • Enterprise initiatives contribute ~100 bps • Price/cost EPS positive
Slide 10: 2022 Organic Growth Projections by Segment
2022 ORGANIC GROWTH PROJECTIONS BY SEGMENT Automotive Food Polymers Construction Specialty T&M / E Welding OEM Equipment & Fluids Products Products 2021 6% 17% 15%* 18% 10% 14% 10% 2022E 6 to 10% 7 to 11% 4 to 8%* 6 to 10% 5 to 9% 6 to 10% 3 to 7% ORGANIC GROWTH OF 6 TO 9% AT THE ENTERPRISE LEVEL 10
Slide 11: Q&A
Q&A 11