Illinois Tool Works Inc. · NYSE:ITW

Illinois Tool Works — Q1 2017 Earnings Presentation

10 slides from Illinois Tool Works's earnings presentation, Apr 24, 2017

  1. Slide 1: First Quarter 2017 Conference Call

    First Quarter 2017 Conference Call April 24, 2017

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements SAFE HARBOR STATEMENT This conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, without limitation, statements regarding the expected impact of product line simplification activities and e

  3. Slide 3: Q1 2017 Performance

    Q1 2017 CONFERENCE CALL Q1 2017 Performance Financial Results Highlights EPS +19%  GAAP EPS of $1.54, an increase of 19% − EPS grew 21% excl. ($0.02) from foreign currency translation impact $1.54  Total revenue grew 6.0%; organic growth of 3.5% GAAP EPS $1.29 – North America 1.4%, International 6

  4. Slide 4: Operating Margin

    Q1 2017 CONFERENCE CALL Q1 2017 Operating Margin Operating Margin Key Margin Drivers Q1'17 +120 bps Enterprise Initiatives +100 bps 23.3% Volume/Other +100 22.1% EF&C Margin Impact (50) Price/Cost (30) Total Margin Expansion +120 bps Q1'16 Q1'17 ALL-TIME RECORD FOR ITW 4

  5. Slide 5: Segment Performance

    Q1 2017 CONFERENCE CALL Segment Performance Organic Revenue Growth by Segment Automotive OEM $828 +26% Organic Growth 26.4% $656 (200) bps Q4’16 Q1’17 24.4% Automotive OEM 7% 9% Food Equipment 3 2 Q1'16 Q1'17 Q1'16 Q1'17 T&M and Electronics ~flat 6 Total Revenue Operating Margin Welding (8) ~flat Hi

  6. Slide 6: Segment Performance: Food Equipment, Test & Measurement/Electronics

    Q1 2017 CONFERENCE CALL Segment Performance Food Equipment Test & Measurement/Electronics ~Flat 25.1% +60 bps +4% +450 bps $499 $497 24.5% $480 20.0% $464 15.5% Q1'16 Q1'17 Q1'16 Q1'17 Q1'16 Q1'17 Q1'16 Q1'17 Total Revenue Operating Margin Total Revenue Operating Margin Highlights Highlights  Organ

  7. Slide 7: Segment Performance: Welding, Polymers & Fluids

    Q1 2017 CONFERENCE CALL Segment Performance Welding Polymers & Fluids +2% $426 (1)% 27.7% +380 bps $418 +40 bps $389 $387 20.6% 23.9% 20.2% Q1'16 Q1'17 Q1'16 Q1'17 Q1'16 Q1'17 Q1'16 Q1'17 Total Revenue Operating Margin Total Revenue Operating Margin Highlights Highlights  Organic growth ~flat  Org

  8. Slide 8: Segment Performance: Construction Products, Specialty Products

    Q1 2017 CONFERENCE CALL Segment Performance Construction Products Specialty Products (1)% +80 bps +3% +150 bps $468 $463 26.9% $384 $395 22.5% 26.1% 21.0% Q1'16 Q1'17 Q1'16 Q1'17 Q1'16 Q1'17 Q1'16 Q1'17 Total Revenue Operating Margin Total Revenue Operating Margin Highlights Highlights  Organic gro

  9. Slide 9: 2017 Guidance

    Q1 2017 CONFERENCE CALL 2017 Guidance Financial Guidance Highlights EPS +11%  GAAP EPS guidance raised $0.20 at mid-point − $0.10 from Q1 + $0.10 from higher organic growth and lower tax rate $6.20 to $6.40  Organic growth guidance raised 50 bps; now 2 to 4% GAAP EPS $5.70  All-time full-year rec

  10. Slide 10: Q&A

    Q&A

Illinois Tool Works — Q1 2017 Earnings Presentation on 6ix