First Quarter 2024 April 30, 2024

Earnings Conference Call

 Forward-Looking Statements
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 global
supply chain challenges, expected impact of inflation including raw material inflation and rising interest rates, the impact of
enterprise initiatives, future financial and operating performance, free cash flow and free cash flow to net income
conversion rate, organic and total revenue, operating and incremental margin, price/cost impact, statements regarding
diluted income per share, restructuring expenses and related benefits, expected dividend payments, after-tax return on
invested capital, effective tax rates, exchange rates, expected access to liquidity sources, expected capital allocation,
expected timing and amount of share repurchases, end market economic and regulatory conditions, the impact of recent or
potential acquisitions and/or divestitures, and the Company’s 2024 guidance. These statements are subject to certain risks,
uncertainties, assumptions, and other factors, which could cause actual results to differ materially from those anticipated.
Important risks that could cause actual results to differ materially from the Company’s expectations include those that are
detailed in ITW’s Form 10-K for 2023 and subsequent reports filed with the SEC.

Non-GAAP Measures
The Company uses certain non-GAAP measures in discussing the Company’s performance. The reconciliation of those
measures to the most directly comparable GAAP measures is detailed in ITW’s press release for the first quarter of 2024,
which is available at www.itw.com, together with this presentation. The estimated guidance of free cash flow to net income
conversion rate and after-tax return on average invested capital are based on assumptions that are difficult to predict, and
estimated guidance for the most directly comparable GAAP measures and a reconciliation of these forward-looking estimates
to their most directly comparable GAAP estimates have been omitted due to the unreasonable efforts required in connection
with such a reconciliation and the lack of availability of reliable forward-looking cash flow and operating information.

2 Never stronger. Never better positioned for the future.

 Q1’24 Financial Performance
HIGHLIGHTS (ex-item)**
GAAP EPS $2.33 $2.73 +17%
• The near-term demand environment across the majority of
our segments was challenging as expected
$4.0B $4.0B (1)% - Organic growth of (0.6)% in line with our expectations
- Expect positive growth through the balance of the year
based on current levels of demand, favorable comparisons
Revenue
• Continued strong margin and profitability performance
- Operating margin of 25.4%, an increase of +120 bps as
enterprise initiatives contributed +140 bps
Q1'23 Q1'24 - EPS of $2.44, an increase of 5%
Operating Margin 24.2% 28.4% +420 bps
• Free cash flow* of $494M
- 68% of Net Income
After-tax ROIC* 29.4% 30.1% +70 bps
• Effective tax rate of 23.6%

A SOLID START TO THE YEAR IN A CHALLENGING ENVIRONMENT

*See ITW’s Q1’24 press release for the reconciliation from GAAP to non-GAAP measures.
**GAAP results include the favorable impact from a one-time LIFO inventory accounting item resulting in
3 pre-tax income of $117M, operating margin improvement of 300 bps, and EPS of $0.29.
Never stronger. Never better positioned for the future.
 Q1’24 Segment Performance
ORGANIC GROWTH BY GEOGRAPHY AUTOMOTIVE OEM

+3% +370 bps

$816M 19.8%
$796M 16.1%
+15%

+6%
North +1%
America
(4)% EMEA APAC China Q1'23 Q1'24 Q1'23 Q1'24
Revenue Operating Margin

• Near-term macro demand environment was • Organic revenue 3%

challenging as expected • North America (6)%
- China +7% ex-Automotive OEM • Europe 2%
• China 23%

4 Never stronger. Never better positioned for the future.

 Q1’24 Segment Performance
FOOD EQUIPMENT TEST & MEASUREMENT/ELECTRONICS

(1)% 26.7% (70) bps $703M $696M (1)%

26.0% 24.5%
$635M $631M 23.4% (110) bps

Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24

Revenue Operating Margin Revenue Operating Margin

• Organic revenue (1)% • Organic revenue (1)%

• Equipment (4)%, Service 3% • Test & Measurement 2%
• North America (2)% • Electronics (8)%
• International flat

5 Never stronger. Never better positioned for the future.

 Q1’24 Segment Performance
WELDING POLYMERS & FLUIDS

32.7% +80 bps

31.9% +140 bps
$493M (3)% $447M $432M (3)% 25.8%
$476M
24.4%

Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24

Revenue Operating Margin Revenue Operating Margin

• Organic revenue (3)% • Organic revenue (1)%

• Equipment (2)%, Consumables (6)% • Automotive Aftermarket (2)%
• North America (3)% • Fluids flat
• International (8)% • Polymers flat

6 Never stronger. Never better positioned for the future.

 Q1’24 Segment Performance
CONSTRUCTION PRODUCTS SPECIALTY PRODUCTS

$526M $488M (7)% 29.4% +190 bps $440M +4% +410 bps
$423M 29.7%
27.5% 25.6%

Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24

Revenue Operating Margin Revenue Operating Margin

• Organic revenue (7)% • Organic revenue 6%

• North America (3)% • North America (1)%
• Europe (11)% • International 19%
• Australia/New Zealand (12)%

7 Never stronger. Never better positioned for the future.

 2024 Financial Guidance
HIGHLIGHTS
GAAP EPS $9.74 $10.30 – $10.70 +6 - 10%
• Expect that current levels of demand across our end
markets and favorable comparisons year-over-year
$16.4 - $16.7B +2 - 4%
translate to positive organic growth through the balance
$16.1B of the year
- On track to deliver organic growth of 1 to 3%
Revenue
• Continued strong margin and profitability performance
- Operating margin expansion of 140 bps at mid-point as
enterprise initiatives contribute more than 100 bps

2023 2024E • Raising GAAP EPS guidance by $0.30 and margins by 50 bps
Operating Margin 25.1% 26 - 27% – Operational guidance unchanged

• Free cash flow conversion of 100%+ of net income

After-tax ROIC* 30.4% 30%+
• Share repurchases of ~$1.5B

ITW IS ON TRACK AND WELL POSITIONED TO DELIVER ON OUR 2024 GUIDANCE

8 *See ITW’s Q1’24 press release for the reconciliation from GAAP to non-GAAP measures.
Never stronger. Never better positioned for the future.
Q&A
 Recently Released Reports
2023 ANNUAL REPORT 2023 SUSTAINABILITY REPORT

Link to Sustainability Report

Link to Annual Report

10 Never stronger. Never better positioned for the future.