#1ITW FOURTH QUARTER 2022 EARNINGS CONFERENCE CALL FEBRUARY 2, 2023#2FORWARD-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 the duration and potential effects of the COVID-19 pandemic and global supply chain challenges, related government actions and the Company's strategy in response thereto on the Company's business, expected impact of inflation including raw material inflation and rising interest rates, enterprise initiatives, future financial and operating performance, free cash flow and free cash flow 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, expected repatriation of overseas cash, 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, potential acquisitions and divestitures and related impact on financial results, including statements with respect to the impact of the 2021 acquisition of the MTS Test & Simulation business and the 2022 divestitures, and the Company's 2023 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 2021 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 fourth quarter of 2022, which is available at www.itw.com, together with this presentation. The estimated guidance of free cash flow 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. ITW 2#3Q4'22 FINANCIAL PERFORMANCE GAAP EPS $1.93 $2.95 +53% - Ex. Divestiture gains $2.34 +21% +8% $4.0B $3.7B REVENUE Q4'21 Q4'22 +12% Organic HIGHLIGHTS Strong growth momentum across the majority of our business portfolio as evidenced by organic growth of 12% Aggressive execution on our "Win the Recovery" strategy resulting in profitable market penetration and double-digit growth in 5 segments - FX translation impact of (5)%, Acquisition/Divestitures +1% Excellent execution in a challenging operating environment resulting in strong financial performance - Incremental margin of 52% - Enterprise initiatives contribution of 110 bps - Price/cost accretive to EPS and margin impact of 70 bps Record GAAP EPS of $2.95 including divestiture gains OPERATING MARGIN 22.7% - Ex. MTS Acquisition AFTER-TAX ROIC* 24.8% 25.2% +210 bps 27.2% 30.8% +360 bps - · EPS growth of 21% excluding divestiture gains ITW ITW DELIVERED A RECORD Q4 TO CLOSE OUT A VERY STRONG 2022 * See ITW's fourth quarter 2022 press release for the reconciliation from GAAP to non-GAAP measures. 3#4Q4'22 PERFORMANCE ITW ORGANIC REVENUE GROWTH VS. PEERS 12% 12% AUTOMOTIVE OEM $745M +12% $663M 17.1% 16.8% +30 bps ITW 9% ITW 9% PROXY PROXY Q4'21 Q4'22 PEERS* PEERS* Total Revenue 2021 2021 2022 • Organic revenue 20% Q3'22 YTD • North America 15% • Europe 23% Meaningful progress on delivering sustained above- Q4'22 Q4'21 Operating Margin market organic growth through the cycle with best- in-class margins and returns on capital • China 17% A ITW TW Global Automotive DELTAR® 4 * Proxy peers that report organic revenue growth: CAT, DOV, ECL, EMR, ETN, FTV, HON, JCI, MMM, PH, PPG, ROK, SWK, and TT#5Q4'22 SEGMENT PERFORMANCE FOOD EQUIPMENT TEST & MEASUREMENT/ELECTRONICS +50 bps 27.6% +470 bps $732M +15% 26.9% $631M +11% 26.4% $636M 22.9% +340 bps ex-MTS Acq. $569M Q4'21 Q4'22 Q4'21 Q4'22 Q4'21 Total Revenue Operating Margin Q4'22 Total Revenue Q4'21 Q4'22 Operating Margin • Organic revenue 17% Equipment 18%, Service 16% North America 25% International 7% • Organic revenue 10% Test & Measurement 12% Electronics 7% ☑ BROOKS ITW HOBART Traulsen VULCAN FOSTER INSTRON® INSTRUMENT Texwipe An ITW Company MTS LO 5#6Q4'22 SEGMENT PERFORMANCE WELDING 31.6% +160 bps +14% 30.0% $481M $422M POLYMERS & FLUIDS +2% $455M 25.8% +170 bps $447M 24.1% Q4'22 Q4'21 Q4'22 Operating Margin Q4'21 Q4'22 Q4'21 Total Revenue Q4'22 Operating Margin Q4'21 Total Revenue • • Organic revenue 15% Equipment 17%, Consumables 13% North America 15% International 17% ITW // Miller. HOBART FILLER METALS • • Organic revenue 11% Automotive Aftermarket 13% • Polymers 11% • Fluids 5% rain-x Devcon PLEXUS 6 Permatex#7Q4'22 SEGMENT PERFORMANCE CONSTRUCTION PRODUCTS SPECIALTY PRODUCTS $480M (2)% $470M 25.8% 25.5% (30) bps 26.5% $467M (80) bps $462M (1)% 25.7% Q4'21 Total Revenue Q4'22 Q4'21 Q4'22 Operating Margin Q4'21 Q4'22 Total Revenue Q4'21 Operating Margin Q4'22 • Organic revenue 4% • · North America 9% • Europe 3% Australia/New Zealand (4)% Organic revenue 3% North America 1% International 7% ITW PPaslode Ramset DRIVING JOBSITE SPEED spit GRK ZIP PAKⓇ HI Conc FASTENERS We're Uniquely Flexible. we are all around) ITW GSE 7#82022 FINANCIAL PERFORMANCE HIGHLIGHTS GAAP EPS $8.51 $9.77 +15% Ex. Divestiture gains $9.17 +8% $15.9B +10% $14.5B +12% Organic • REVENUE 2021 2022 OPERATING MARGIN 24.1% 23.8% - Ex. MTS Acquisition 24.4% AFTER-TAX ROIC* 29.5% - Ex. MTS Acquisition 29.1% 31.2% ITW Delivered strong organic growth of 12% with best-in-class operating margins and returns on capital - Meaningful progress on delivering sustained above- market organic growth Executed with discipline in a challenging environment and generated record financial performance Leveraged 80/20 FTB to sustain world-class customer service in the face of significant supply chain disruptions - Implemented timely and appropriate pricing actions in response to input cost inflation - Delivered earnings growth of 15% and record GAAP EPS Invested $0.7B in ITW's highly profitable core businesses and returned $3.3B to shareholders Raised dividend for 59th consecutive year (+7%/share) RECORD FINANCIAL PERFORMANCE IN A CHALLENGING ENVIRONMENT *See ITW's fourth quarter 2022 press release for the reconciliation from GAAP to non-GAAP measures. 8#92023 FINANCIAL GUIDANCE GAAP EPS -Ex. Divestiture gains $9.77 $9.17 $9.40 - $9.80 +3 - 7% • REVENUE $16.2 - $16.5B $15.9B 2022 2023E OPERATING MARGIN 23.8% 24.5 25.5% AFTER-TAX ROIC* 29.1% 30%+ +3 - 5% Organic HIGHLIGHTS Projecting organic growth of 3 to 5% - Based on current levels of demand and anticipated further slowing in certain end markets - Combined FX translation and divesture impact of (1.5)% Enterprise initiatives contribute - 100 bps Price/cost accretive to EPS and margins Free Cash Flow of 100%+ of Net Income Share repurchases of -$1.5 billion Effective tax rate of approximately 24% ITW VERY WELL-POSITIONED TO DELIVER TOP-TIER PERFORMANCE IN 2023 *See ITW's fourth quarter 2022 press release for the reconciliation from GAAP to non-GAAP measures. 9#102023 ORGANIC GROWTH RATE PROJECTIONS BY SEGMENT DFance Blok SCRUBS KRAFT SHARP CHEDDAR ITW Automotive OEM Food Equipment T&M / E Welding Polymers & Fluids Construction Products Specialty Products 2023 Estimate 5 - 7% 8 - 10% 2 - 4% 5 - 7% 3 - 5% (5) - (3)% (1) - 1% 3 - 5% 2022 Actuals 12% 23% 9% 16% 11% 14% -flat 12% 2021 Actuals 6% 17% 15% 18% 10% 14% 10% 12% DELIVERING SOLID ORGANIC GROWTH WITH BEST-IN-CLASS MARGINS AND RETURNS ITW 10 10#11ITW Q&A 11