SOLID GROWTH. STRONG RETURNS. BEST-IN-CLASS OPERATOR.

Welding Segment OverviewNovember 4th, 2013

SOLID GROWTH. STRONG RETURNS. BEST-IN-CLASS OPERATOR.

Design and market value added welding equipment,

filler metals and accessories

Welding Segment Overview

2013 (F) Revenue: 1,840M OI: 483M (26.2%)

Businesses in 25 countries

Approximately 4,100 employees worldwide

2

-

1,000.0

2,000.0

1993 2003 2013

Revenue

SOLID GROWTH. STRONG RETURNS. BEST-IN-CLASS OPERATOR.

50%

29%

21%

Equipment

Filler Metals

Guns/Accessories/Other

Revenue Diversification

3

Geography Product

2010 2013FRevenue CAGR 9.6 % $1,398M $1,840MIncome CAGR 12.1 % $343M $483M% of Revenue 24.5% 26.2%

65%

35%

North America Rest of World

SOLID GROWTH. STRONG RETURNS. BEST-IN-CLASS OPERATOR.

Organization

Industrial

End markets - Heavy Equipment, Automotive, Shipyards, Railcar and Structural

Products – Welding Solutions, Automation, and Environmental

Oil & Gas

End Markets – Pipeline, Offshore Rig, Refineries Products – Welding Solutions, Orbital

Welding/Cutting, Induction Heating and Insulation

Commercial

End Markets – Small Manufacturers, DIY/Hobby Products - Welding solutions, Personal Protection

11 Major Divisions ($100M +) managed at local level by VP/GMs

Group President led Platforms

4

SOLID GROWTH. STRONG RETURNS. BEST-IN-CLASS OPERATOR.

Welding SystemEquipment, filler metal, gun and accessories

5

Developed EmergingStick 13% 44%MIG – Solid 55% 32%MIG – Tubular 23% 12%Subarc 9% 11%

SOLID GROWTH. STRONG RETURNS. BEST-IN-CLASS OPERATOR.

Equipment

($ Billion)

Filler Metals

($ Billion)

Total

($ Billion)

North America $1.7 $3.0 $4.7

EMEA $1.6 $3.5 $5.1

Asia $3.3 $5.8 $9.1

South America $0.6 $1.0 $1.6

Welding WW $7.2 $13.3 $20.5

Global Welding Market Size

6

SOLID GROWTH. STRONG RETURNS. BEST-IN-CLASS OPERATOR.

Lincoln14%

ESAB10%

ITW8%

Big Bridge6%

Golden Bridge4%

Air Liquide3%Bohler

3%Pansonic3%

Victor2%

Fronius2%

Kobelco2%

Hypertherm2%

OTC1%

Hyundai1%

Kemppi1%

Atlantic1%

Other35%

Competitive Landscape

7

SOLID GROWTH. STRONG RETURNS. BEST-IN-CLASS OPERATOR.

Enterprise Strategy 2012-2017

8

ITW’s Differentiated

Business Model

80/20 Business Process

Customer-Focused Innovation

Decentralized Entrepreneurial Culture

DifferentiatedPerformance

Solid Growth

Strong Returns

Best-in-Class Operator

Key Enterprise Initiatives• Portfolio Management

• Business Structure Simplification

• Strategic Sourcing

Integrity Simplicity Trust Respect Shared Risk

8

SOLID GROWTH. STRONG RETURNS. BEST-IN-CLASS OPERATOR.

●Where do we focus?

– Sizeable end markets

– Favorable growth profile

– High integrity welds

●How do we win?

– Intimate knowledge of customer pain points

– Create value added solutions that make difference in the customer’s business

Strategic Framework

9

SOLID GROWTH. STRONG RETURNS. BEST-IN-CLASS OPERATOR.

Platform: Oil & Gas

Customer/End Market: Process pipe installers/Petrochem -Refinery

● Key customer pain points:– Extremely demanding welding field environment– Downtime cost a major issue for customers– Fewer skilled welders

● ITW solution: Miller PipeWorx– Designed just for pipe installers – shop & field– Key Features/Benefits

• Simplicity driven performance with user interface that reduce training & downtime

• Complete operator control at the weld• Quick process change over while reducing cable

clutter

– Patented technology• 13 Issued Patents

10

ITW’s Differentiated Business ModelCustomer-Focused Innovation

SOLID GROWTH. STRONG RETURNS. BEST-IN-CLASS OPERATOR.

Platform: IndustrialCustomers/End Market: Tier-1 Frame Manufacturers/Automotive

Customer Pain Points

● Light weight vehicles increasing use of galvanized steel

●Difficult to produce high integrity welds without compromising productivity

ITW solution: Hobart F6– Designed welding wire to weld galvanized steel parts– Key Features/Benefits

• Eliminates porosity while welding galvanized steel at higher speed

• Fills gaps in parts • Customized wave forms

– Patented technology• 8 Patent Applications

11

ITW’s Differentiated Business ModelCustomer-Focused Innovation

SOLID GROWTH. STRONG RETURNS. BEST-IN-CLASS OPERATOR.

Platform: IndustrialCustomers/End Market : Construction Machinery/Heavy Equipment

Customer Pain Points● Increased environmental regulation

ITW solution: Miller Capture 5 & Hobart Element– System solution that reduces fume generation

and captures fume more effectively– Key Features/Benefits

• Captures 5x more fume than traditional technology• Reduces amount of specific, regulated elements

– Patented technology• 12 Patent Applications

12

0

0.05

0.1

0.15

0.2

0.25

0.3

Mn(mg/m)

StandardE71T-1MElement71T1M

Respirable Mn

ITW’s Differentiated Business ModelCustomer-Focused Innovation

SOLID GROWTH. STRONG RETURNS. BEST-IN-CLASS OPERATOR.

Platform: CommercialCustomers/End Market: Small-Medium commercial contractors /Construction

Customer Pain Points● Increased environmental regulation

●Desire portability

● Fuel Efficiency

ITW solution: New TrailBlazer & Bobcat – Key Features/Benefits. Up to:

• 35% Less Fuel• 68% Sound Reduction• 108 lbs lighter

– Patented technology• 12 Issued Patents

13

ITW’s Differentiated Business ModelCustomer-Focused Innovation

SOLID GROWTH. STRONG RETURNS. BEST-IN-CLASS OPERATOR.

Welding Segment OverviewNovember 4th, 2013