Third Quarter 2023 Earnings Conference Call slide image

Third Quarter 2023 Earnings Conference Call

ITW 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.
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