Illinois Tool Works Inc. · NYSE:ITW

Illinois Tool Works — Baird Industrial Conference 2014

6 slides from Illinois Tool Works's conference presentation, Nov 11, 2014

  1. Slide 1: Baird Industrial Conference Presentation

    Baird Industrial Conference Presentation E. Scott Santi, President & CEO Michael M. Larsen, Senior Vice President & CFO John Brooklier, Vice President, Investor Relations Aaron Hoffman, Vice President, Investor Relations November 11, 2014 Chicago, Illinois FORWARD LOOKING STATEMENTS Safe Harbor Stat

  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: Q3 2014 Financial Summary

    Q3 2014 Financial Summary Q3 2014 Actuals Highlights ● Enterprise initiatives contribute 120 bps of EPS +42% margin expansion $1.28 EPS $0.90 ● All time record … $772M quarterly operating Total $3.7B income $3.6B Revenue ● Total and organic revenue up 3.5% … -1% drag from product line simplification

  5. Slide 5: Q3 2014 Operating Margins

    Q3 2014 Operating Margins Operating Margins Key Drivers 20.9% 19.0% Q3 Enterprise Initiatives +120 bps Q3‘13 Q3‘14 Volume +80 OM% V bps Automotive OEM 23.4% +230 Price/Cost +10 T&M and Electronics 18.7 +240 Food Equipment 23.1 +320 Other (20) Polymers & Fluids 20.2 +210 Margin Expansion +190 bps Wel

  6. Slide 6: 2014 Financial Guidance

    2014 Financial Guidance Q4 2014 Guidance 2014 Guidance EPS +21% EPS +27% at mid-point at mid-point $1.07 - $1.15 $4.57 - $4.65 EPS $0.92 EPS $3.63 Organic: 2-3% Organic: 2-3% Total: 2-3% $3.6B Total: ~Flat $14.1B Total Total Revenue Revenue Q4’13 Q4’14F 2013 2014F ● Initiatives contribute ~100 bps o

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