1. Welcome to ITW’s Annual
Investor Meeting
New York City
December 8, 2008

2. Today’s Agenda
• 8:00am – 8:50am Breakfast buffet
• 8:50am – 9:00am John Brooklier, Vice President of Investor Relations
Welcome and Today’s Topics
• 9:00am – 9:45am Ron Kropp, Senior Vice President and CFO
Capital Structure
• 9:45am – 10:45am Scott Santi, Vice Chairman
John McDonough, President, Food Equipment North America
Food Equipment: A Growth Platform
• 10:45am – 11:00am Break
• 11:00am – 12:30pm David Speer, Chairman and Chief Executive Officer
ITW Overview: End Market Perspectives
Q&A
• 12:30pm Lunch
Meeting concludes

3. Today’s Presenters
Ron Kropp, Senior Vice President and Chief Financial Officer
• 15-year tenure with ITW
• Named SVP and CFO in 2006
• Previously held role of vice
president & controller
controller,
financial reporting

4. Today’s Presenters
Scott Santi, Vice Chairman
• 25-year tenure with ITW
• Responsible for ITW’s
ITW s
worldwide Welding, Electronic
Co po e t ab cat o ,
Component Fabrication,
Aircraft Ground Support, and
Food Equipment businesses
• Named executive vice
president in 2004 and vice
chairman in December 2008

5. Today’s Presenters
John McDonough, President, Food Equipment North America
• 17-year tenure with ITW
• Responsible for North
American operations of such
b a ds
brands as Hobart, Traulsen,
oba t, au se ,
Vulcan, Wolf, Stero, Somat
and Kairak
• Named to this position in 2006

6. Today’s Presenters
David Speer, Chairman and Chief Executive Officer
• 30-year tenure with ITW
• Named president of ITW in
2004 and chief executive
o ce
officer in 2005
005
• Assumed additional
responsibilities as chairman in
p
2006
• Managed an assortment of
construction businesses earlier
in career

7. ITW Forward - Looking Statements
Forward - L ki St t
F d Looking Statements t
This meeting contains forward-looking statements
within the meaning of the Private Securities Litigation Reform
Act of 1995 including, without limitation statements regarding
including limitation,
operating performance, revenue growth, operating income,
income from continuing operations, diluted income per share
from continuing operations use of free cash potential
operations, cash,
acquisitions, end market conditions, discontinued operations,
and the Company’s related forecasts. These statements are
subject to certain risks, uncertainties, and other factors which
j
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 set
forth in ITW’s Form 10-Q for the 2008 third quarter and
Form 10-K for 2007.

8. Forecast & Capital Structure
Ron Kropp
New York City
December 8, 2008

9. 4th Quarter 2008 Forecast
Q

10. 4th Quarter 2008 – Economic data
• U d l i macro d t f N th A
Underlying data for North America and E
i d Europe
trending down significantly
• North America:
• Industrial production (ex: tech) -6.1% in September and
October vs. -3.2% in August
• ISM Index: 36.2% in November (Under 50% “declining
declining
growth”) vs. 43.5% in September
• Europe:
• E roZone industrial production: -2.2% in October vs.
EuroZone ind strial prod ction 2 2% s
0.6% in August
• EuroZone Purchasing Managers: 35.6% in November vs.
47.6% in August

11. Revised 4th Quarter 2008 Forecast
Mid
Low High Point
4th Quarter
Total Revenues -7% -9% -8%
Diluted Income per Share - Continuing $0.44 $0.52 $0.48
% F(U) 2007 -46% -37% -41%
Full Year
Total R
T l Revenues 6% 7% 6.5%
6 5%
Diluted Income per Share - Continuing $2.94 $3.02 $2.98
% F(U) 2007 -5% -2% -3%

12. Revised 4th Quarter 2008 Forecast
Key Assumptions
y p
• Base revenue decline of between 9% and 11%
• Exchange rates through November 30
• Acquired revenues in the $1.5 billion to $1.6 billion range
i i $ ii $ ii
• Share repurchases of $1.3 billion to $1.4 billion for the year (previous: $1.0 to
$1.2 billion)
• No further impairment o goodw /
ue p e of goodwill/intangibles
g b es
• Net nonoperating expense, including interest expense and other nonoperating
income, of $125 to $135 million (previous: $110 to $120 million), which is higher
than 2007 by $80 to $90 million
• T rate range of 28 25% to 28.75% for the fourth quarter and 28 4% t 28 6%
Tax t f 28.25% t 28 75% f th f th t d 28.4% to 28.6%
for the year

13. Revised 4th Quarter 2008 Forecast
Reconciliation to Prior Forecast/Year
Vs. Prior Vs. Prior
Forecast Year
Prior forecast/year EPS $ 0.78 $ 0.82
Base (0.20) (0.25)
Currency translation (0.04) (0.04)
Restructuring (0.02) (0.04)
Acquisitions (0.02) -
Nonoperating (0.02) (0.02)
Taxes - (0.03)
Shares - 0.04
4th Quarter 2008 EPS - Midpoint $ 0.48 $ 0.48

14. Questions ??

15. Capital Structure

16. Capital Structure
1998-2007
• Target debt-to-capital range of
20-30%
– Current debt-to-capital ratio at 28%
– Would go above target range for
larger acqu s t o s
a ge acquisitions
• Primary uses of free operating
cash flow:
– Dividends Dividends
– Acquisitions Acquisition
– Share repurchases Investments
Share Repurchases

17. Primary Uses of Free Cash Flow
• Dividends
– Guideline of 25-35% of trailing two years net income
– Increased annual dividend rate from $1.12 to $1.24 (11% increase)
in August 2008
• Acquisitions:
– Preferred use of free operating cash flow
– 2008 range: annualized revenues of $1.5 to $1.6 billion
• Share repurchase program:
– Repurchase shares with expected excess free cash flow and debt capacity
– August 2007: $3 billion authorization ($1.6 billion remaining)
– Current 2008 Range: $1.3 billion to $1.4 billion (YTD 3Q08 $992 mil)
– Estimated benefit of share repurchases (net of interest) to
2008 EPS = 13¢

18. Debt Capacity by Type
$5,440 (in millions)
Euro Fixed
Debt outstanding at 9/30/08:
$1,100
$1 100
US$ bonds $ 940
Euro bonds 1,100
Commercial paper 1 493
1,493
$3,000
Other 64 US$ Variable
$3,595
Debt-to-capital % 28.3%
$940 US$ Fixed
$350 Euro Variable
$50 Other
Oth

19. Liquidity
• Primary sources of liquidity are strong free cash flow and
credit facilities
• Credit facilities recently increased from $2.0 billion to $3.0
billion
• Credit facilities used to backstop commercial paper program
– No issues with placing commercial paper
– “Flight to quality” - rated A1+/P1
– Current outstanding is approximately $1.8 billion
$1 8
– Average term: 67 days (≈70% after year-end)
– Average interest rate: 1.7%
• Strong AA-/Aa3 credit rating
AA /Aa3
– Debt capital markets readily accessible

20. Free Cash Flow 1998-2007
CAGR
Net Income = 11%
Free Cash = 15% Recession
Free Cash Net Income Linear (Free Cash)

21. Capital Structure Summary
• Strong conservative balance sheet with
strong credit ratings
• Have historically generated strong cash flow
in downturns
do tu s
• No liquidity issues
• Ample short term debt capacity
short-term
• Readily accessible debt capital markets

22. Questions ??

23. Food Equipment:
A Growth Platform
Scott Santi, Vice Chairman
John McDonough, President,
Food Equipment North America
December 8, 2008

24. Today’s Topics
• Business Overview
• Major End Markets
• Core Product Lines
• Key Growth Strategies
•Q&A

25. Business Overview

26. ITW Food Equipment Group
13% of total ITW revenues—2008(F)
Industrial Packaging
16%
20%
Power Systems &
Electronics
Transportation
15%
8%
Construction Products
13%
Food Equipment
15%
13%
Polymers & Fluids
All Other

27. ITW Food Equipment Group
• Commercial Food Equipment and Related Services
• 55 businesses in 22 countries represent $2 1 billion in
$2.1
total revenues
• 2007 Revenues: +27%
• 2008(F) Revenues: +10%

28. ITW Food Equipment Group
• Revenue by Category
11%
Food Service
Service
59%
30%
Food Retail

29. ITW Food Equipment Group
• Revenue by Region

30. Major End Markets

31. ITW Food Equipment Group
• Revenue by End Market
Institutions
18%
Food Retail
7%
Food Service
Chains
47%
Ind. R
I d Restaurants
12%
Other Food Service
16%

32. Institutions
• Colleges/Universities
• Schools
• Healthcare
• Lodging/Casinos
• Canteens/Catering Cos.
• Government

33. Food Service Chains
• Full Service restaurants
– Family Style
– Ethnic
– Seafood
– Steak
• Quick Serve Chains
– Burger
– Chicken
– Sandwich
– Ethnic
– Bakery Cafes
• P b &T
Pubs Taverns

34. Independent Restaurants
• Independents
• Restaurant Groups

35. Other Food Service
• Air Catering
• Marine
– Cruise
– Offshore
– Shipyards
Marine
• Transportation
• Misc./Other

36. Food Retail
• Supermarkets
• Mass Merchandisers
• Membership Clubs
• Hyper Marches
• Convenience Stores
• Petroleum / Convenience
• Grocers
G

37. Core Product Lines

38. ITW Food Equipment Group
• Revenue by Product Line
3%
13% Service
Warewash
W h
30%
14% Cooking/Baking
Food Processing
Refrigeration
19% 21%
Other

39. Warewash
• North America
• International

40. Cooking/Baking
• North America
• International

41. Food Processing
• North America
• International

42. Refrigeration
• North America
• International

43. Service
• North America
Billed Services
•
Service
•
Contracts
• P t (OTC)
Parts
• Installations
• Other
• International

44. ITW Food Equipment Group
Performance Since Premark Acquisition
Total Op.
Revenues $2,500 Margins
$2,000 20%
15%
$1,500
$1,000 10%
$500 5%
0%
$0
2000 2001 2002 2003 2004 2005 2006 2007 2008
($500)
( )
Base Revenues New Acquisitions

45. ITW Toolbox Impact - Hobart Germany
Innovation
MRD
80/20 USa
2000 2008
Segmentation
PLS In-Lining
Operating Margins: ~20.0%
Operating Margins: <5.0 %
• ITW Tool Box Implementation Drives:
– Significant Core Business Profitability Improvement
– Customer Driven Innovation/Organic Growth

46. ITW Toolbox Impact - Hobart France
MRD
80/20 USa
2000 2008
Segmentation
PLS In-Lining
Operating Margins: 14%
Operating Margins: (5.0%)
• 80% reduction in SKUs
• Refocused on “80” products and geographies
• Streamlined sales and admin processes
St li d l ddi
• Segmented business by core served markets
• Targeted growth in direct service contracts

47. Key Growth Strategies

48. Key Growth Strategies
• Customer-Driven Innovation
• Service as a Growth Platform
• Geographic Expansion/Emerging Market Growth
• Targeted Product Category Additions

49. Customer-Driven Innovation:
MBM/Hobart Combi
• The Opportunity:
• Operators focused on production efficiencies
» Simplicity of operation / ease of replication
py p p
» Process solutions vs. discrete pieces of
equipment
• Often used with other “vertical” platforms
» Combi
» Chiller
» Holding/transport carts
• The User Driven Solution:
User-Driven
• Bar code scanning to deliver ease of replication
» Oven recipes embedded in food company bar
codes
» Recipes programmed on-site; onboard label
on site;
printer
• Interchangeable racking across platforms

50. Customer-Driven Innovation:
3000 Series Slicer
• The Opportunity:
• A core industry product with long-unmet needs
– True ease of use and ease of cleaning
T d
f fl i
– Reliable slice quality (chain specification)
– Improved yield (shrink management)
– Operator productivity
• The User-Driven Solution:
• Nine (9) patent-pending innovations, including:
– Removable knife (ease of cleaning)
– Knife geometry (slice quality and yield)
– Product tray presentation (slice quality and yield)
– Simplified controls interface (ease of use)
– Efficiency enhancers on automatic (productivity)

51. Customer-Driven Innovation:
Somat eCorect
• The Opportunity:
• Escalating waste management costs
» Weight and/or volume fees vary by municipality
• Demand for cost-effective sustainability solutions
cost effective
» Majority of foodservice waste is compostable
»Food waste; cardboard; compostable
disposables
• The User Driven Solution:
User-Driven
• Zero-environmental impact waste elimination
» 8:1 reduction of waste into soil-grade mulch in 24-
hours
» Mulch can be used, donated or sold
» No water, enzymes, bio-filters or ventilation needed
» Complements use of pulpers in high volume
applications
»Pulpers reduce waste volume by 80% to a
p y
wet pulp
»eCorect further reduces weight (70%) and
volume (55%)
• Saves energy; supplies; hauling fees; labor

52. Service as a Growth Platform
Service Progression (2000-2008)
– Created separate business units to provide focus
– Identified core Hobart equipment and service customers
» Focused on service quality and field efficiencies
» Targeted field operations against this profile of
accounts
» Built in-depth tech training programs around this core
– In-depth USa projects to simplify field and back-office
processes
– Since acquisition:
q
» Revenue growth: 2x
» Income growth: 4x
» Current worldwide operating margin %: mid-20’s

53. Service as a Growth Platform
• Building a Global Service Platform
• Current Status
– Expanding International footprint:
» US, Canada, Mexico, Brazil; Puerto Rico; Columbia
» UK, France, Germany, Benelux
» Australia, Japan, Hong Kong, China, Korea
– Unique Value Proposition
U que a ue opos t o
» Factory-owned service arm
» 1700 Hobart technicians in the United States alone
» Actively manage total ownership experience for customers
– Adding user-driven product and service offerings to grow base
» Multi-brand and full-store service agreements for select customers
» Water treatment and grease management products (US and
Canada)
» Installation services

54. Service as a Growth Platform
• Service Growth Opportunities Going Forward:
• Currently serve less than 20% of ITW-installed base
ITW installed
– Additional share of ITW-installed base
– Active trials of full-kitchen service in select accounts underway
– Evaluate coverage of non-ITW-installed base
• Recent acquisitions enhance service platform
– (
(UK, Ireland, France)
)
– & (France)

55. Emerging Markets
• History:
• Have been successfully selling US/European equipment to
Western-style hotels, large restaurants, institutions and employee
dining facilities for years
• Have an established manufacturing and service presence to
support these activities
• Targeted Growth Initiatives
• Currently building localized marketing co pete ce/capab t es in
Cu e t y bu d g oca ed a et g competence/capabilities
these regions
• Focusing on penetrating select key end markets in key
ggp
geographies
• Expanding our service coverage

56. Recent Acquisitions: Horis
• Revenue @ acquisition: $225 million
• Acquisition closed January 2007
• St t i Attraction
Strategic Att ti
• Complementary positions with Hobart France
» Cooking, Refrigeration
» Restaurants and Institutions
» New projects focus vs. Renewals (replacements)
• Attractive direct service business
• Current Status
•MManufacturing toolbox implementation i f ll swing
f t i t lb i l t ti in full i
• Targeting service margin improvements
• Detailed market segmentation process was
initiated in early 2008
y
• Operating margin improvements on track with
acquisition plan

57. Recent Acquisitions: Avery Berkel
• Revenue @ Acquisition: $80 million
• Scales; Slicers; Wrappers
• 95% revenues emanate from Europep
• Acquisition closed September 2007
• Strategic Attraction
• Strong brand recognition
• Attractive direct service business
• Well positioned range of premium to value-line
products
•C
Current Status
t St t
• Toolbox implementation is well underway
• Leveraging growth opportunities across Europe
• Exploring global platform development opportunities
with Hobart
• Operating margin improvements on track
w/acquisition plan

58. Food Equipment: A Growth Platform
• Significant Future Growth Potential:
– Relatively small existing ITW share position
•GGlobal Food Equipment market estimate: $22 - $ billion
$ $26
• Market still highly fragmented
– Lots of Room to Grow:
• Customer Driven Innovation
• Service as a Growth Platform
• Geographic Expansion/Emerging Market Growth
• New P d t C t
N Product Category Additi
Additions
– Direct Service Capabilities
• A highly leveragable differentiating advantage

59. QUESTIONS

60. Welcome to ITW’s Annual
Investor Meeting
g
BREAK
New York City
December 8, 2008

61. ITW Overview: End
Market Perspectives
David Speer
New York City
December 8, 2008

62. Today’s Agenda
• Revenue Diversification and Acquisitions
• Review of Economic Trends and ITW
Segments
• Today’s Key Takeaways
• Questions

63. Revenue Diversification
and Acquisitions

64. Revenue Diversification
• ITW’s 2008 revenue mix continues to
shift toward broader variety of end markets
and geographies
• Acquisitions continue to play a meaningful
role in expanding both our geographic and
end market diversification

65. Revenue Diversification:
ITW Revenues by End Markets
Automotive OEM General Industrial
17%
23%
Food Institutional/Service
13%
General Industrial
21% Auto OEM/Tiers
12%
Commercial Construction
Commercial Construction 7%
10% Food & Beverage
6%
Food & Beverage
Residential Construction
6%
9%
Consumer Durables Primary Metals
5%
6% Consumer Durables
Residential Construction 5%
6% Electronics
Renovation Construction 5%
Renovation Construction
3% 4%
Auto Aftermarket
4%
Other
22%
16% All Others
1997 2008(F)

66. Revenue Diversification:
ITW Revenues by Geography
R bG h
North America
45%
50%
64%
EMEA
30%
36%
26%
Asia/Pacific and Other
25%
14%
10%
1997 2008(F) 2012(F)

67. Growth Through Acquisitions:
Current E
C t Economic E i
i Environment
t
• Valuations are lower than before due to falling market values and the economy’s
impact on business outlook
• Creates opportunity to acquire businesses previously overpriced for ITW
• ITW’s strong cash flow and sound balance sheet provide adequate funding
required for acquisitions
• Review of 2008 Acquisitions (through 11-7-2008):
– Of 44 acquisitions completed, 42 deals were generated by business units
– Expect to acquire $1.5 billion of annualized revenues in 2008
$1 5
– On average, ITW has paid about 1.0X revenues for deals
– Majority of companies acquired are international
– Acquisitions complement existing business units and add to growth platforms
(test and measurement, polymers and fluids, and food equipment)

68. ITW Acquisition Criteria
• Products that provide value add to customers
• Strong market position
• Well known brand name
• Improve financial metrics - double below average
margins in three to five years
• Retain key management at acquired companies
• Utilize management talent to implement
ITW Toolbox initiatives
• Further di
F th diversify geographically
if hi ll
• Further diversify end markets
• Return on investment significantly exceeding
the cost of capital within three to five years

69. 10-Year Historical Acquisition Summary
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
(11-7-08)
32 45 29 21 28 24 22 53 52 44
# Deals
Acquired
Revenues $3800 $1000 $556 $195 $347 $624 $584 $1714 $995 $1450
(in millions)
Avg. Size
$119 $22 $19 $9 $12 $26 $27 $32 $19 $33
Acquisition
# Business
488 592 614 603 622 650 700 750 825 850+
Units
350 Acquisitions (1999-YTD) $11.3 billion acquired revenues
$32 million average acquisition size

70. Acquisitions – Historical Look
Acquired in 2000-2007
A i d i 2000 2007
25%
20%
15%
10%
5%
0%
Year 1 Year 2 Year 3 Year 4 Year 5
Margin Revenue Growth ROI

71. Acquisitions – Historical Look
• Reviewed performance of larger acquisitions from 2000 – 2007
– Revenues > $20 million
– Businesses which remained discrete for five years
• 73 Acquisitions with $4.2 million of first year revenue
(70% of total)
• Conclusions:
– Revenue growth only 0.2% in 2nd full year from first full year –
reflects impact of 80/20 simplification
– Margins improve each year – from 9.2% in
year 1 to 19 3% in year 5
19.3%
– Return on investment improves from 9.2% in
year 1 to 17.0% in year 5
– More recent acquisitions have room for continued improvement
q p

72. Review of Economic
Trends and ITW Segments

73. Review of Economic Trends
Underlying macro data for North America and Europe is negative
United St t
U it d States
Euro Zone
Industrial Production (ex. tech):
Industrial production:
• 2007 +0.7%
• 2007 +3.4% vs.
•Oct. 2008 -6.1%
Ot 6 1%
• Oct. 2008 -2.2%
ISM:
PMI:
• Jan. 2008 50.7%
• Jan 2008 52 8%
Jan. 52.8%
• Nov. 2008 36.2%
• Oct. 2008 41.1%
(November New Orders Index: 27.9%;
lowest level since June 1980)

74. ITW Reporting Segments
• Industrial Packaging
• Power Systems & Electronics
• Transportation
• Construction Products
• Food Equipment
•P l
Polymers & Fluids
Fl id
• All Other

75. Industrial Packaging
16%
20%
15%
8%
13%
15%
13%
16% of total ITW revenues—2008(F)

76. Industrial Packaging
• Steel, plastic and paper products used for bundling,
shipping and protecting transported goods
• 108 businesses in 45 countries represent
$ 6 billion of e e ues
$2.6 b o o revenues
• 2007 revenues: +11%
• 2008(F) revenues: +9%

77. Industrial Packaging
W ld id Revenues 2008(F)
Worldwide R
Primary Metals
25%
42%
North America
General Industrial
22%
Food & Beverage
13%
Europe
41%
Consumer Durables
13%
Construction
10%
Other Asia/Pacific and Other
17% 17%
By End Markets By Geography

78. Industrial Packaging
2008 T
Trends
d
• North America primary metals markets decrease 12%
during Q3 vs year earlier periods
vs. year-earlier
• North America building materials market declines 25% to
30% for first nine months vs. prior-year periods
p y p
• Base revenues in Europe and Asia grew in the first half of
2008, but Europe declines in the second half of 2008 as
metals and general i d t i l markets f ll significantly
tl d l industrial k t fall i ifi tl
• Asia growth continues up 10% from July through October

79. Industrial Packaging
2009 G
Growth Assumptions
th A ti
• Worldwide base revenues: -4% to -8% in 2009
• Developed markets (North America and Western
Europe) forecasted to contract 5% to 10% as metals,
construction and general industrial markets continue
to sag
• Emerging markets (
gg (Asia Pacific/Latin America/India)
)
expected to grow base revenues with slowing market
growth in China, Brazil, and India

80. Power Systems & Electronics
16%
20%
15%
8%
13%
15%
13%
15% of total ITW revenues—2008(F)

81. Power Systems & Electronics
• Designer and manufacturer of arc welding
equipment, consumables, and accessories
for a wide array of industrial and
commercial applications
• 96 businesses in 25 countries represent
$2.4
$2 4 billion of revenues
• 48% Capital Equipment,
52% Consumables & Accessories
• 2007 revenues: +22%
• 2008(F) revenues: +5%

82. Power Systems & Electronics
Worldwide Revenues 2008(F)
General Industrial
G lI d t i l
26%
North America
Electronics 67%
21%
Construction
9%
Fabrication
7%
Shipbuilding
6% Ground Power
G dP Europe
6% 12%
MRO
5%
Energy
5%
Asia/Pacific and Other
21%
Other
15%
By End Markets By Geography

83. Power Systems & Electronics
2008 Trends
• Welding Businesses:
– +6% YTD through September
• North America : Flat, equipment slows while consumables
continue modest growth
g
• International : +18%, Europe slows during Q3 while
Asia continues strong +20%
– Flat in October
• North America slows dramatically across all markets: -9%
• International: +22%, Europe flat while Asia still going strong +20%
• Electronic Component Assembly Businesses:
– Flat YTD through September with equipment orders very slow and
g p qp y
consumable volumes modestly positive
– -38% in October as equipment orders in telecommunications and consumer
electronics dry up; consumables drop as production schedules are curtailed
• Aircraft Ground Support Equipment Businesses:
– Flat YTD through September
– +15% in October

84. Power Systems & Electronics
2009 G
Growth Assumptions
th A ti
• Worldwide segment base revenues expected to be down 4% to 6%
in 2009 vs. 2008
• Welding Businesses down 4% to 6%
– North America: Down 5% to 8% overall on declining general industrial and
construction markets, offset partially by relatively robust new product pipeline
– International: Flat to +2%, reasonable growth in energy-related and shipbuilding end
markets in Asia offset by lower capital spending in the heavy construction sector;
Europe declining
• Electronic Component Assembly Businesses down 10% to 14%
on continued weak capital spending
• Aircraft Ground Support Equipment Businesses up 4% to 5%
on moderating fuel prices and a strong backlog of airport
projects worldwide

85. Transportation
16%
20%
15%
8%
13%
15%
13%
15% of total ITW revenues—2008(F)

86. Transportation
• Components, fasteners, fluids and polymers for
transportation-related applications
p pp
• 85 businesses in 22 countries represent
$2.4 billion of revenues
• 2007 revenues: +13%
• 2008(F) revenues: +7%
()

87. Transportation
Worldwide R
W ld id Revenues 2008(F)
North America
55%
65% Auto OEM/Tiers
Europe
E rope
38%
Auto Aftermarket
23%
Commercial Truck Aftermarket
6% Asia/Pacific and Other
7%
Other
6%
End Market Geography

88. Transportation
2008 T
Trends
d
• Penetrated new global platforms with Honda, Hyundai,
Renault/Nissan, D i l GM & F d d i 2008
R lt/Ni Daimler, Ford during
• Revenues for businesses located in Asia/Pacific approaching
$200 million in 2009
• Product development activities begun in emerging markets with
Suzuki, TATA, Chery and Daewoo during 2008
• North America total builds: -15% (Detroit 3: -20% and
New Domestics: -6%)
• Europe total builds: -2% (1st half +5%; 2nd half down – 8%)

89. Transportation
2009 G
Growth Assumptions
th A ti
• Base revenues: -8% to -12% for full year 2009
• North America will continue to show weakening automotive market
g
– +/- 11 million vehicle builds
– Detroit 3: -16% to -20%
– New domestics: -4% to -6%
• International auto builds also decline in 2009
– Europe: -12% to -15%
– Brazil: flat
– China: flat
• Lower gas price and aging car population should lead to improving
markets for car maintenance and care products in the U.S. and
Western Europe
• Truck aftermarket service in U.S. offers some potential upside

90. Construction Products
16%
20%
15%
8%
13%
15%
13%
13% of total ITW revenues—2008(F)

91. Construction Products
• Designer and manufacturer of
construction fastening systems
and truss products for the
commercial, residential and
remodeling/rehab sectors
• 94 autonomous businesses
in 29 countries represent
$2.0 billion of revenues
• 2007 revenues: +9%
• 2008(F) revenues: -3%3%

92. Construction Products
W ld id R
Worldwide Revenues 2008(F)
35%
Residential North America
38%
Commercial
29% Europe
38%
29% Renovation
Asia/Pacific and Other
27%
Other
4%
End Markets Geography

93. Construction Products
2008 Trends
• U.S. new residential housing starts drop from 1.15 million
at end of Q4 2007 to forecasted 785,000 starts
at end of Q4 2008 (32% decline) and Europe housing
declines 13%
• Non-residential construction awards in U.S. drop nearly
20% and Europe falls over 6%
• North American renovation sales dampened in 2008 as
consumer credit issues curtail spending
• HIRI forecasts renovation activity -3% t 4% i 2008
f t ti ti it 3% to in
• Rapid slowing in European and modest growth in Asia/Pacific
construction end markets results in 1% base revenue growth
for i t
f international b i
ti l businesses th
through Q3 2008
h

94. Construction Products
Dodge Construction Potentials Bulletin
2008 YTD/Sq. Ft % Change
U.S. Summary
y in thousands (Oct. 2008)) vs. YTD 2007
(
Total Non-Residential 1,166,838 -19%
Commercial 660,969 -28%
Stores and Food Service, Warehouse (ex. mfr. owned)
Office and Bank Buildings Hotels & Motels
Buildings, Motels,
Garages & Service Stations
Manufacturing 62,699 -17%
Manufacturing Plants, Warehouses (mfr. owned),
Laboratories (mfr. owned)
Education & Science 192,453 +3%
Schools & Colleges, Laboratories (ex. mfr. owned),
Libraries & Museums, etc.
Dormitories 24,925 +12%
Hospital & Health Treatment 87,594 -2%
Public Buildings 41,212 -3%
Government Administration, Other Government Service
Religious 23,083
23 083 -13%
13%
Amusement 54,494 -9%

95. Construction Products
2009 Growth Assumptions
• Worldwide construction base revenues: -6% to -10%
• North America (2009 forecast)
– Residential: Further decline of 20% to 25% with 2009 starts
between 700,000 and 750,000 (NAHB)
– Renovation: HIRI projects renovation activity to
increase 1% to 2% in 2009
– Non-residential: square footage initiated ( FW Dodge)
projected to decline 12% in 2009
• Europe (2009 forecast) - EuroConstruct
– Residential: -15% to -18%
– Non-residential: -8% to -10%
– Renovation: flat

96. ITW Construction Products
2009 G
Growth Assumptions (
th A ti (cont.)
t)
• Asia/Pacific (2009 forecast)
– Australian/New Zealand housing starts: Flat to +2%
– Australian/New Zealand commercial construction
activity (square meters): Flat to +2%
– Australian and New Zealand renovation : +4%
– Southeast Asia construction: +4 to +5%
4 5%
– China construction: +6 to +8%

97. Food Equipment
16%
20%
15%
8%
13%
15%
13%
13% of total ITW revenues—2008(F)

98. Food Equipment
• Commercial food equipment and related service
• 55 businesses in 22 countries represent
$2.1 billion of revenues
• 2007 revenues: +27%
• 2008(F) revenues: +10%

99. Food Equipment
W ld id Revenues 2008(F)
Worldwide R
North America
49%
Food Institutional/
59% Restaurants
45%
4%
Service
30% EMEA
Food Retail
11% Asia/Pacific and Other
6%
By Category By Geography

100. Food Equipment
2008 Trends
• Expect to finish 2008 with base revenues +3%
– North America:
• Food service / food retail chains pulled back new store construction and deferred
rollouts early in the year
• Institutional base began to slow in late summer
g
• Channels conserving cash, burning off inventories going into 2009
– EMEA:
• A strong start in the first q
g quarter met with a g
gradual softening in the institutional
g
markets
– Emerging Markets:
• Remained strong through Q3, softening going into 2009
• Asia-Pacific beginning to see a slowdown in the lodging sector

101. Food Equipment
2009 Growth Assumptions
• Worldwide base revenues expected to be in a range of -4% to -8%
• Broad-based slowdown in North America expected to last through
Broad based
2009
• Continued softening in European institutional base and
independent restaurants
• Latin America to largely mirror North America
• Positive growth expected in Asia-Pacific, but at a much reduced
g
pace
• Service business worldwide is expected to mitigate some of the
decline in equipment sales

102. Polymers & Fluids
16%
20%
8% 15%
13%
15%
13%
8% of total ITW revenues—2008(F)

103. Polymers & Fluids
• Adhesives, sealants, lubrication and cutting fluids,
and janitorial and sanitation supplies
• 94 business units in 32 countries represent $1.3 billion of
revenues
• 2007 revenues: +24%
24%
• 2008(F) revenues: +32%

104. Polymers & Fluids
Worldwide Revenues by Geography 2008(F)
General Industrial
North America
35%
31%
Construction
14%
MRO
13% Europe
Electronics/Consumer 47%
Durables/Primary Metals
11%
Auto Aftermarket
8%
Asia/Pacific and Other
Other
23% 18%
By End Market By Geography

105. Polymers & Fluids
2008 T
Trends
d
• General Industrial markets
– Wind, solar, rail and petrochemical industries
, , p
continue to demonstrate growth
– Maintenance and repair markets demonstrating
continued strength
– OEM market (recreational marine, transportation)
is lackluster
• Construction end markets decline in NA and Europe partially
offset by strong new product introductions
• Applications of performance technologies in new industries
like aerospace yield good growth
• BRIC markets: acquisitions have added new channels and
market opportunities

106. Polymers & Fluids
2009 G
Growth Assumptions
th A ti
• Worldwide base revenues expected to expected to be in
ranges of -5% to flat in 2009
g
• Increased market penetration, new products and lower
raw material costs will allow stabilization of margins in
base business
• Utilization of ITW Toolbox offers good margin
improvement opportunities in newer acquisitions
• Investments in BRIC countries will show increasing
returns in 2009
• Overall global market is highly fragmented and the
opportunity for acquisitions remains good with a solid
potential pipeline

107. All Other
16%
20%
15%
8%
13%
15%
13%
20% of total ITW revenues—2008(F)

108. All Other Businesses
• All other operating segments include equipment and related
software for test and measurement, paint spray equipment, finishing
equipment, p
qp , plastic reclosable p
packaging, p
g g, plastic consumables,
,
plastic and metal fasteners
• End markets include general industrial, finishing, consumer
p
packaging, beverage and food, and test & measurement
g g, g ,
• $3.3 billion in revenues
• 2007 revenues: +15%
• 2008(F) revenues: +4%

109. All Other
Worldwide Revenues by Geography 2008(F)
General Industrial
23%
North America
57%
Consumer Durables
21%
Food & Beverage
18%
Electronics
6%
Auto OEM/Tiers
5% Europe
E rope
34%
Other
27%
Asia/Pacific and Other
9%
By End Market By Geography

110. All Other
2008 Trends
• T t & Measurement:
Test M t
– Base revenues: +6% for full-year 2008, with double-digit growth coming from Asia
– Three 2008 acquisitions (QSA, Sonotech and Avery Weigh-Tronix) drive Test &
Measurement annualized revenues to nearly $900 million
• Consumer Packaging:
– Base revenues: +2%
– Material costs in most of consumer packaging businesses are declining following record
price levels in 2008
– Private Label volume has shown strength at the expense of branded products as
consumers cut back on expenditures
• Finishing:
– Base revenues: -1%
– Economic softness has delayed large system orders and diminished automotive
refinishing markets
– Continued success in the finishing business is increasingly dependent upon global reach
and partnerships, for which we are well positioned

111. All Other
2009 G
Growth Assumptions
th A ti
• Total segment revenues: -4% to -7%
• T t & Measurement:
Test M t
– Base revenues: -3% to flat in 2009, with majority of growth again
emanating from Asia
– Acquisition opportunities expected to push platform revenues to
over $1 billion in 2009
• Consumer Packaging:
– Base revenues for Consumer Products Group: -3% to -5% due to
3% 5%
weakening consumer demand
• Finishing:
– Base revenues: -5% to -7% due to declining general industrial activity
5% 7%

112. Today s
Today’s Key Takeaways

113. Today’s Key Takeaways
• Newly-reduced Q4 forecast reflects slowing end markets
both in North America and internationally as well as
significantly l
i ifi tl lower currency contributions
t ib ti
• ITW’s balance sheet, cash flow and credit ratings
remain strong g
• Food Equipment is a growing business platform…one we
will continue to grow via innovative products and
complementary acquisitions
• 2009 will be a challenging year in nearly all end markets
with preliminary total company base revenues expected to
be in a range of -5% to -10% for the full year
5% 10%
• We are prepared for the challenge!

114. Questions ??