Donaldson Company, Inc. · NYSE:DCI
Donaldson — Q4 FY2022 Earnings Presentation
13 slides from Donaldson's earnings presentation, Aug 31, 2022
Slide 1: Fourth Quarter Fiscal Year 2022 Earnings Call
Fourth Quarter Fiscal Year 2022 Earnings Call August 2022
Slide 2: Forward-Looking Statement Safe Harbor
Forward-Looking Statement Safe Harbor Statements in this presentation regarding future events and expectations, such as forecasts, plans, trends, and projections relating to the Company’s business and financial performance, are forward-looking statements within the meaning of the Private Securities
Slide 3: Fourth Quarter and Full-Year FY22 Update and Overview
Fourth Quarter and Full-Year FY22 Update and Overview Successful Execution Throughout FY22 Despite Challenges and Uncertainty • Delivered double-digit sales and earnings growth and record full-year results • Returned $281M to shareholders in the form of dividends and share repurchases • Invested in
Slide 4: Strong Value Proposition
Strong Value Proposition 1. 2. 3. 4. 5. Technology-led Diversified Experienced Global sales, Culture of filtration company portfolio of global management team production and ownership aligns with deep businesses with and engaged distribution with shareholder customer recurring revenue board of direc
Slide 5: Fourth Quarter FY22 Overview & Highlights
Fourth Quarter FY22 Overview & Highlights Sales ($M) Adj. Operating Margin(1) Adj. Diluted EPS(1) Up 22% YoY Constant Currency Basis Up 40 bps YoY Up 27% YoY $0.84 14.9% $890 14.5% +15% $0.66 $773 Q4’21 Q4’22 Q4’21 Q4’22 Q4’21 Q4’22 • Positive YoY contribution from price (+12%) and • Adjusted gross
Slide 6: Fiscal 2022 Overview & Highlights
Fiscal 2022 Overview & Highlights Sales ($M) Adj. Operating Margin(1) Adj. Diluted EPS(1) Up 19% YoY Constant Currency Basis Down 50 bps YoY Up 16% YoY $2.68 14.0% $2.32 $3,307 +16% 13.5% $2,854 FY21 FY22 FY21 FY22 FY21 FY22 • Positive YoY contribution from volumes (+11%) and • Mainly driven by gros
Slide 7: Engine Products Segment Fourth Quarter FY22 Results
Engine Products Segment Fourth Quarter FY22 Results Fourth Quarter Overview Total sales up 18% compared to prior year and up 24% on a constant currency basis Sales performance by region: US/CA +33%, EMEA -2%, APAC +2% Q4’22 Q4’21 YoY (China -6%), LATAM +39% ($ in millions) Sales $620 $528 +18%
Slide 8: Industrial Products Segment Fourth Quarter FY22 Results
Industrial Products Segment Fourth Quarter FY22 Results Fourth Quarter Overview Total sales up 10% compared to prior year and up 18% on a constant currency basis Sales performance by region: US/CA +31%, EMEA +6%, APAC -5%, LATAM +5% ($ in millions) Q4’22 Q4’21 YoY Sales performance by end-mark
Slide 9: Balance Sheet and Cash Flow Overview
Balance Sheet and Cash Flow Overview Net Debt and Financial Leverage Consolidated Results ($M) $600 1.2x Q4’22 Q4’21 FY22 FY21 Net Debt to EBITDA $455 Net Debt(1) ($M) $390 Cash from Operations $109 $96 $253 $402 $400 0.9x $287 0.9x 0.8x Capital Expenditures ($28) ($18) ($85) ($58) $200 0.6x Free Ca
Slide 10: Fiscal 2023 Financial Outlook
Fiscal 2023 Financial Outlook FY23 Total Company Outlook FY23 Segment Sales Outlook Total Sales Growth +1% to 5% Engine Products Sales Flat to +4% Off-Road - Low-single digits Gross Margin YoY expansion On-Road - Low-single digits Operating Margin 14.5% to 15.1% Aftermarket + Mid-single digits Tax R
Slide 11: Appendix
Donaldson. an W& Appendix
Slide 12: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ($ in millions, except per share amounts) (Unaudited) Three Months Ended Twelve Months Ended July 31, July 31, 2022 2021 2022 2021 Net cash provided by operating activities $ 108.9 $ 96.3 $ 252.8 $ 401.9 Net capital expenditures (28.3) (18.0) (85.2) (58.
Slide 13: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ($ in millions, except per share amounts) (Unaudited) Amounts may not sum due to rounding 13