Illinois Tool Works (ITW) 8-K Results of Operations and Financial Condition

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ITW Conference Call

Fourth Quarter

2009

Exhibit 99.2

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ITW
Agenda

1.Introduction…………………...….. John Brooklier/David Speer

2.Financial Overview…………..….. Ron Kropp

3.Reporting Segments………....…. John Brooklier

4.2010 Forecasts…………………… Ron Kropp

5.Q & A………………......……...…... John Brooklier/Ron Kropp/David Speer

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ITW
Forward - - Looking Statements

This conference call contains forward-looking statements
within the meaning of the Private Securities Litigation Reform
Act of 1995 including, without limitation, statements regarding
operating performance, revenue growth, diluted income per
share from continuing operations, restructuring expenses and
related benefits, tax rates, end market conditions, and the
Company’s related 2010 forecasts.These statements are
subject to certain risks, uncertainties, 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 are detailed
in ITW’s Form 10-K, as updated by our Current Report on
Form 8-K filed August 7, 2009 for 2008.

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Conference Call Playback

Replay number: 402-220-3450

No pass code necessary

Telephone replay available through midnight of
February 10, 2010

Webcast / PowerPoint replay available at
itw.com website

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ITW
Quarterly Highlights

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ITW
Quarterly Operating Analysis

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ITW
Non Operating & Taxes

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ITW
Full Year Highlights

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ITW
Full Year Operating Analysis

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ITW
Invested Capital

ITW
Debt & Equity

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ITW
Cash Flow

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ITW
Acquisitions

Transportation
Quarterly Analysis

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Transportation
Key Points

•Total segment base revenues (+6.3% in Q4 ’09 vs. -7.9% in Q3 ’09)
improved sequentially as Q4 auto builds significantly ramped up
in Europe and North America

•Auto OEM/Tiers: Worldwide base revenues +8.8% in Q4 ’09 vs.
-9.7% in Q3 ’09

–European Q4 builds: 5.1 million vehicles in Q4 ‘09 vs. 3.9
million vehicles in Q3 ’09

•Virtually all OEM’s boost production

–North American Q4 auto builds: 2.7 million vehicles vs. 2.4
million vehicles in Q3 ’09

•Detroit: +16% in Q4 ’09; New Domestics: +15% in Q4 ’09

•Auto aftermarket Q4 worldwide base revenues: -3.0% in Q4 ’09 vs.
-4.5% in Q3 ’09

Industrial Packaging
Quarterly Analysis

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Industrial Packaging
Key Points

•Total segment base revenues continued to show signs of
improvement: - -16.3% in Q4 ’09 vs. -23.3% in Q3 ’09 as
industrial production metrics in U.S. and Europe became
less negative

•Total North American industrial packaging business:
-12.4% in Q4 ’09 vs. -27.0% in Q3 ’09

–End markets associated with primary metals and
construction show modest improvement as year
progressed

•Total international industrial packaging business: -19.4%
in Q4 ’09 vs. -25.0% in Q3 ’09

Food Equipment
Quarterly Analysis

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Food Equipment
Key Points

•Total segment Q4 base revenues: -12.5% vs. -6.3% in Q3 ’09
due to soft equipment sales

•North America Q4 base revenues: -14.6% vs. -8.0% in Q3 ’09
as customers continue to delay equipment purchases

•North America Q4 service revenues continue to be bright
spot: - -0.8% vs. flat in Q3 ’09

•International Q4 base revenues: -10.5% vs. -4.9% in Q3 ’09 as
demand for equipment weakens in Europe and Asia - Pacific

Power Systems and Electronics
Quarterly Analysis

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Power Systems and Electronics
Key Points

•Total segment base revenues improve sequentially: -21.6% in
Q4 ’09 vs. -34.2% in Q3 ’09

•In Q4, Welding’s worldwide base revenues: -24.9% vs. -36.2%
in Q3 ’09

–Q4 North America base revenues:-25.6% vs. -40.0% in Q3
’09

–Q4 International base revenues:-23.5% vs. -26.7% in Q3
’09

•Q4 PC board base revenues significantly improved: -14.5%
vs. - -42.3% in Q3 ’09 as consumer electronics demand ramps
up

Construction Products
Quarterly Analysis

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Construction Products
Key Points

•Total segment base revenues: -5.5% in Q4 ’09 vs. -16.5% in Q3 ’09

•North America Q4 base revenues: -9.0% vs. -27.3% in Q3 ‘09

–Q4 Residential base revenues: -7.2% vs. -30.4% in Q3 ’09; Q4 new
housing starts at 554,000 units (16% y/o/y decrease)

–Q4 Renovation base revenues: -2.3% vs. -20.5% in Q3 ’09; Box
Store penetration improves

–Q4 Commercial Construction base revenues: -13.5% vs. -27.0% in
Q3 ’09; Dodge Index still reflects weak building environment

•International Q4 base revenues: -4.2% vs. -13.2% in Q3 ‘09

–Q4 Europe base revenues: -8.9% vs. -22.0% in Q3 ‘09

–Q4 Asia-Pacific base revenues: +2.4% vs. flat in Q3 ‘09

Polymers and Fluids
Quarterly Analysis

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Polymers and Fluids
Key Points

•Total segment base revenues: -4.7% in Q4 ’09 vs. -13.9% in
Q3 ’09

•Q4 Worldwide Fluids: +0.6% vs. -11.9% in Q3 ’09

–Improved North America business performance linked
to increased demand for hygiene and MRO products

•Q4 Worldwide Polymers: -6.9% vs. -16.8% in Q3 ‘09

–Polymers businesses constrained by exposure to
general industrial and construction end markets

Decorative Surfaces
Quarterly Analysis

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Decorative Surfaces
Key Points

•Total segment base revenues: -10.3% in Q4 ’09 vs. -15.6%
in Q3 ’09

•North America laminate Q4 base revenues: -15.9% vs.
-20.6% in Q3 ’09

–Due to North America and commercial construction mix,
demand for high pressure laminate remained
constrained

•International Q4 base revenues: -3.5% vs. -10.7% in Q3 ’09

–Europe and Asia-Pacific outperformed U.S.

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All Other
Quarterly Analysis

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All Other
Key Points

•Total segment base revenues: -11.9% in Q4 ’09 vs.
-18.9% in Q3 ’09

–Q4 industrial/appliance base revenues: -2.6% vs.
-21.8% in Q3 ’09; improvement largely due to energy
efficiency initiatives in appliance sector

–Q4 worldwide consumer packaging base revenues:
-8.5% vs. -11.7% in Q3 ’09; soft consumer spending
impacts these businesses

–Q4 worldwide test and measurement base revenues:
-13.0% vs. -21.8% in Q3 ’09; weak “cap ex” spending
in North America, Europe and Asia still impacting
sales

ITW
2010 Forecast

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ITW 2010 Forecast
Key Assumptions

•Exchange rates hold at current levels

•Acquired revenues in the $300 to $500 million
range for the year

•Restructuring costs of $50 to $100 million for
the full year

•Tax rate range of 28.75% to 29.25% for the 1st
quarter and the full year

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ITW Conference Call
Q & A

Fourth Quarter

2009