Illinois Tool Works Inc. · NYSE:ITW
Illinois Tool Works — Q4 2022 Earnings Presentation
11 slides from Illinois Tool Works's earnings presentation, Feb 2, 2023
Slide 1: Fourth Quarter 2022 Earnings Conference Call
FOURTH QUARTER 2022 EARNINGS CONFERENCE CALL FEBRUARY 2, 2023
Slide 2: Forward-Looking Statements / Safe Harbor Statement
F O RWA R D - L O O K I N G S TAT E M E N T S 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 d
Slide 3: Q4'22 Financial Performance Highlights
Q4'22 FINANCIAL PERFORMANCE HIGHLIGHTS GAAP EPS $1.93 $2.95 +53% - Ex. Divestiture gains $2.34 +21% • Strong growth momentum across the majority of our business portfolio as evidenced by organic growth of 12% $4.0B +8% $3.7B - Aggressive execution on our “Win the Recovery” strategy +12% resulting in
Slide 4: Q4'22 Performance
Q4’22 PERFORMANCE ITW ORGANIC REVENUE GROWTH VS. PEERS AUTOMOTIVE OEM $745M +12% $663M 17.1% +30 bps 16.8% 12% 12% ITW 9% ITW 9% PROXY PROXY Q4'21 Q4'22 Q4'21 Q4'22 PEERS* PEERS* Total Revenue Operating Margin • Organic revenue 20% 2021 2021 2022 Q3’22 YTD • North America 15% • Meaningful progress o
Slide 5: Q4'22 Segment Performance: Food Equipment, Test & Measurement/Electronics
Q4'22 SEGMENT PERFORMANCE FOOD EQUIPMENT TEST & MEASUREMENT/ELECTRONICS 27.6% +470 bps +15% +50 bps $732M 26.9% $631M +11% $636M 26.4% +340 bps 22.9% ex-MTS Acq. $569M Q4'21 Q4'22 Q4'21 Q4'22 Q4'21 Q4'22 Q4'21 Q4'22 Total Revenue Operating Margin Total Revenue Operating Margin • Organic revenue 17%
Slide 6: Q4'22 Segment Performance: Welding, Polymers & Fluids
Q4'22 SEGMENT PERFORMANCE WELDING POLYMERS & FLUIDS 31.6% +160 bps +14% 30.0% $481M $455M +2% 25.8% +170 bps $447M $422M 24.1% Q4'21 Q4'22 Q4'21 Q4'22 Q4'21 Q4'22 Q4'21 Q4'22 Total Revenue Operating Margin Total Revenue Operating Margin • Organic revenue 15% • Organic revenue 11% • Equipment 17%, Co
Slide 7: Q4'22 Segment Performance: Construction Products, Specialty Products
Q4'22 SEGMENT PERFORMANCE CONSTRUCTION PRODUCTS SPECIALTY PRODUCTS $480M (2)% 26.5% $470M 25.8% 25.5% (30) bps (80) bps $467M $462M (1)% 25.7% Q4'21 Q4'22 Q4'21 Q4'22 Q4'21 Q4'22 Q4'21 Q4'22 Total Revenue Operating Margin Total Revenue Operating Margin • Organic revenue 4% • Organic revenue 3% • Nor
Slide 8: 2022 Financial Performance Highlights
2022 FINANCIAL PERFORMANCE HIGHLIGHTS GAAP EPS $8.51 $9.77 +15% - Ex. Divestiture gains $9.17 +8% • Delivered strong organic growth of 12% with best-in-class operating margins and returns on capital $15.9B +10% - Meaningful progress on delivering sustained above- $14.5B market organic growth +12% Or
Slide 9: 2023 Financial Guidance
2023 FINANCIAL GUIDANCE HIGHLIGHTS GAAP EPS $9.77 $9.40 - $9.80 -Ex. Divestiture gains $9.17 +3 – 7% • Projecting organic growth of 3 to 5% - Based on current levels of demand and anticipated $16.2 - $16.5B further slowing in certain end markets $15.9B +3 - 5% - Combined FX translation and divesture
Slide 10: 2023 Organic Growth Rate Projections by Segment
2 0 2 3 O R G A N I C G R O W T H R AT E P R O J E C T I O N S B Y S E G M E N T Automotive Food Polymers Construction Specialty T&M / E Welding OEM Equipment & Fluids Products Products 2023 5 - 7% 8 - 10% 2 - 4% 5 - 7% 3 - 5% (5) - (3)% (1) - 1% 3 – 5% Estimate 2022 12% 23% 9% 16% 11% 14% ~flat 12%
Slide 11: Q&A
Q&A 11