#1EW 11 Third Quarter 2023 Earnings Conference Call October 24, 2023#2ITW 2 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 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, the potential impact of automotive industry labor actions, 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 2022 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 third quarter of 2023, 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. Never stronger. Never better positioned for the future.#3ITW GAAP EPS REVENUE Q3'23 Financial Performance $2.35 $2.55 +9% $4.01B $4.03B +0.5% Q3'22 Q3'23 +0.2% Organic • HIGHLIGHTS Organic revenue growth of +2% on an equal days' basis - Foreign exchange translation impact of +1.5% - Divestiture impact (1.2)% Strong margin and income performance - Operating margins up 200 bps; Enterprise initiatives contributed 140 bps - Operating income grew 9% to $1.1B GAAP EPS grew 9% to $2.55 - Includes $0.07 of net favorable corporate items OPERATING MARGIN 24.5% 26.5% +200 bps Free cash flow* of $856M, an increase of 40% - 111% conversion to net income AFTER-TAX ROIC* 29.9% 31.9% +200 bps STRONG OPERATIONAL EXECUTION AND FINANCIAL PERFORMANCE 3 * See ITW's Q3'23 press release for the reconciliation from GAAP to non-GAAP measures. Never stronger. Never better positioned for the future.#4ITW 4 Q3'23 Segment Performance ORGANIC GROWTH BY GEOGRAPHY AUTOMOTIVE OEM +6% +15% $799M $753M +8% +6% +140 bps 18.9% 17.5% North America (1.6)% +0.4% EMEA APAC China South America Q3'22 Q3'23 Total Revenue Q3'22 Q3'23 Operating Margin • Total ITW organic growth of 0.2%; +2% on an equal days' basis • Organic revenue 4% • North America (5)% - China (1)% ex. Automotive OEM • Europe 5% • China 18% Never stronger. Never better positioned for the future.#5ITW LO 5 Q3'23 Segment Performance FOOD EQUIPMENT TEST & MEASUREMENT/ELECTRONICS +7% $715M $678M $633M 27.3% +100 bps $698M (2)% 26.3% 25.2% (140) bps 23.8% Q3'22 Q3'23 Q3'22 Total Revenue Q3'23 Operating Margin Q3'22 Q3'23 Total Revenue Q3'22 Q3'23 Operating Margin Organic revenue 6% • Organic revenue (4)%; +2% ex. Semi Equipment 5%, Service 9% North America 10% International 1% • Test & Measurement 2% Electronics (13)% Never stronger. Never better positioned for the future.#6ITW 6 Q3'23 Segment Performance WELDING POLYMERS & FLUIDS +10 bps 31.5% 31.6% $477M $468M (2)% $473M $458M (3)% +280 bps 28.1% 25.3% Q3'22 Q3'23 Total Revenue Q3'22 Q3'23 Operating Margin Q3'22 Q3'23 Q3'22 Q3'23 Total Revenue Operating Margin Organic revenue (2)% Equipment (3)%, Consumables (1)% North America (3)% International flat • • Organic revenue 3%; divestiture impact (6)% Automotive Aftermarket 10% Polymers (1)% Fluids (4)% Never stronger. Never better positioned for the future.#7ITW 7 Q3'23 Segment Performance CONSTRUCTION PRODUCTS $527M (1)% $522M 25.7% SPECIALTY PRODUCTS +420 bps 29.9% $438M (6)% +10 bps $414M 27.8% 27.7% Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Total Revenue Operating Margin Q3'23 Total Revenue • Organic revenue (2)% North America 2% • Europe (8)% • Australia/New Zealand (4)% Q3'22 Q3'23 Operating Margin • Organic revenue (6) %, divestiture impact (2)% • North America (9) % • International 1% Never stronger. Never better positioned for the future.#8ITW 2023 Financial Guidance GAAP EPS $9.77 $9.65 - $9.85 -Ex. '22 Divestiture gains $9.17 +5 - 7% +1-2% $16 - $16.2B $15.9B +2 - 3% Organic REVENUE 2022 2023E • • HIGHLIGHTS Narrowed GAAP EPS guidance range from $9.55 to $9.95 - Includes $(0.12) for estimated Auto strike impact in Q4 Projecting organic growth of 2 to 3% - Based on current levels of demand and estimated Auto strike impact in Q4 Raising margin forecast to 25 to 25.5% Improvement of 150 bps at the mid-point - Enterprise initiatives contribute more than 100 bps • Free cash flow conversion of 100%+ to net income OPERATING MARGIN 23.8% 25 - 25.5% - Share repurchases of -$1.5 billion. AFTER-TAX ROIC* 29.1% 30%+ STRONG OPERATIONAL EXECUTION AND FINANCIAL PERFORMANCE 8 * See ITW's Q3'23 press release for the reconciliation from GAAP to non-GAAP measures. Never stronger. Never better positioned for the future.#9ITW Q&A