伊利诺伊工具制造ITW-201412-investor-day-presentation_By_CEO.pdf

1、12014 ITW Investor DayNew York,December 5,2014E.Scott Santi,President&CEODavid C.Parry,Vice ChairmanMichael M.Larsen,Senior Vice President&CFOForward Looking StatementsSafe Harbor StatementThis meeting contains forward-looking statements within the meaning of the Private Securities Litigation Reform

2、 Act of 1995 including,without limitation,statements regarding the expected impact and timing of strategic initiatives and related benefits,future financial performance,operating performance,growth in free operating cash flow,organic and total revenue growth,operating margin growth,growth in diluted

3、 income per share from continuing operations,restructuring expenses and related benefits,tax rates,exchange rates,timing and amount of share repurchases,end market economic conditions,and the Companys related 2014 guidance.These statements are subject to certain risks,uncertainties,and other factors

4、 which could cause actual results to differ materially from those anticipated.Important risks that could cause actual results to differ materially from the Companys expectations include those that are detailed in ITWs Form 10-Q for the second quarter of 2014.Non-GAAP MeasuresThe Company uses certain

5、 non-GAAP measures in discussing the Companys performance.The reconciliation of those measures to the most comparable GAAP measures are detailed in the appendix of this presentation.22DAVID C.PARRYVice Chairman20YEARS WITH ITWNAMED VICE CHAIRMAN IN 2010PresentersE.SCOTT SANTIPresident&Chief Executiv

6、e Officer32YEARS WITH ITWNAMED PRESIDENT&CEO IN2012MICHAEL M.LARSENSenior Vice President&CFO2YEARS WITH ITWNAMED SVP&CFO IN20133Agenda12345ITWS ENTERPRISE STRATEGYITWS DIFFERENTIATED BUSINESS MODELThe core conceptUpdated long-term performance goals80/20 business processCustomer-back innovationDecent

7、ralized,entrepreneurial cultureREFOCUSING ITW(2013 2017)Portfolio managementBusiness structure simplificationStrategic sourcingGROWTH(2015 AND BEYOND)Organic revenue growth strategyDifferentiated segmentsThe role of acquisitionsSUSTAINABLE FINANCIAL PERFORMANCE42014 outlook2015 guidance2017 and beyo

8、nd performance goals6BREAK FOLLOWED BY Q&A3ITWs Enterprise Strategy6Best-in-Class Operator4The Core ConceptRefocus the entire company to deliver on the compelling performance potential from ITWs unique and highly differentiated business modelDecentralized Entrepreneurial CultureCustomer-Back Innovat

9、ion80/20 Business ProcessBUSINESS MODEL7200 bps organic rev.growth above global GDP20%+ROIC23%operating marginUpdated Long-Term Performance Targets12-14%total shareholder returnsBY THE END OF 2017This Enterprise Strategy positions ITW to deliver sustainable,world-class financial performance8BEYOND 2

10、0175ITWs Differentiated Business ModelRadically simplify and focus on high value items(the“80”)Apply to the whole business(not just manufacturing)Unique to ITW,deeply embedded in the culture and executed in multiple business contexts,extremely difficult to replicateFocus on solving“80”customer“pain

11、points”Invent solutions for customersHigher velocity,lower risk,serial innovationOne company/one team focused on executing ITWs Enterprise StrategyDivisions have“flexibility within the ITW framework”ITWs Business Model is the Core Source of Value Creation80/20 Business ProcessCustomer-Back Innovatio

12、nDecentralized Entrepreneurial CultureWorld-class margins and returns andsolid organic revenue growthHigh level of product differentiation with IP/patent protectionA culture of execution and performance10680/20 Business Process80/20 structures and focuses our businesses to uniquely satisfy the needs

13、 of our largest and most profitable customers(the“80”)allowing us to capture a disproportionate share of the available profits in the markets that we choose to serve Conversely we handle less critical customers/products/processes(the“20”)differently as we minimize both focus and overhead cost associ

14、ated with managing this part of our businessesCore 80/20 principle:Complexity blurs focus and drives overhead costs1180%Customers,Products,Processes20%Customers,Products,Processesthe“80”20%Revenue&Profit80%Revenue&Profitthe“20”Methodology used to manage all ITW businesses and deliver world-class per

15、formance80/20 Business ProcessSimplify first to eliminate complexity,then improveFocus efforts and investment on high value items(the“80”)i.e.large customers,high volume products,mission critical business processesAggressively reduce overhead costs associated with supporting low value items(the“20”)

16、i.e.small customers,low volume products,non critical business processesApply it to the whole business(not just manufacturing)Unique to ITW,deeply embedded in the culture and executed in multiple business contexts,extremely difficult to replicate127OverheadCosts80/20 Financial ImpactRevenueOverhead CostsOperating IncomeRevenueOverheadCostsOperating IncomeRevenueOperatingIncome80/20 is about driving total cost productivity by focusing on customers,products,and processes that are best positioned fo