Q3 2022 Segment Performance and Outlook slide image

Q3 2022 Segment Performance and Outlook

2022 FINANCIAL GUIDANCE GAAP EPS $8.51 $9.45 - $9.55 +11-12% • $15.8 $16.0B +9 - 10% $14.5B REVENUE 2021 2022E OPERATING MARGIN 24.1% - Ex. MTS impact AFTER-TAX ROIC* -24% -24.5% 29.5% ~29% ITW +11 - 12% Organic HIGHLIGHTS Raising 2022 organic growth projection to 11 to 12% as demand remains strong across majority of our businesses - Based on 12% year-to-date, current levels of demand, and anticipated further slowing in certain end-markets Raising 2022 GAAP EPS guidance to $9.45 to $9.55 - Updated for incremental foreign currency translation headwind and an estimated Q4 divestiture gain of $0.45 ITW is well-positioned to deliver a strong Q4 - Organic growth of -10% - EPS growth of -40%; -15% ex-divestiture gain - Operating margin improvement of more than 100 bps - Price/cost accretive to income and margin STRONG OPERATIONAL AND FINANCIAL PERFORMANCE IN 2022 *See ITW's third quarter 2022 press release for the reconciliation from GAAP to non-GAAP measures. 8
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