Donaldson Company, Inc. · NYSE:DCI
Donaldson — Q3 2023 Earnings Presentation
12 slides from Donaldson's earnings presentation, May 31, 2023
Slide 1: Third Quarter Fiscal Year 2023
DONALDSON COMPANY THIRD QUARTE R FISCAL YEAR 2023 M AY 2 0 2 3
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: Third Quarter Fiscal Year 2023 Update and Overview
Third Quarter Fiscal Year 2023 Update and Overview Continued Shareholder Value Creation, Operational Improvements, and Strategic Investments ✓ Returned $32M in third quarter and $203M year-to-date to shareholders in dividends and share repurchases Key ✓ Improved fill-rates, on-time deliveries and la
Slide 4: Third Quarter FY23 Overview & Highlights
Third Quarter FY23 Overview & Highlights Sales ($M) Operating Margin Diluted EPS Up 5% YoY Constant Currency Basis Up 120 bps YoY Up 14% YoY $0.76 $876 +3% $0.67 $853 14.2% 13.0% Q3’22 Q3’23 Q3’22 Q3’23 Q3’22 Q3’23 Highlights Highlights Highlights • Positive YoY contribution from price (+8%), • Gros
Slide 5: Mobile Solutions Segment Third Quarter FY23 Results
Mobile Solutions Segment Third Quarter FY23 Results Third Quarter Overview Sales • Total sales flat compared to prior year and up 3% on a constant currency basis • Performance by region: US/CA +2%, EMEA +1%, APAC +3%, LATAM -12% • Sales in China increased 5% year over year and 14% on a constant curr
Slide 6: Industrial Solutions Segment Third Quarter FY23 Results
Industrial Solutions Segment Third Quarter FY23 Results Third Quarter Overview Sales • Total sales grew 14% compared to prior year and 16% on a constant currency basis • Performance by region: US/CA +19%, EMEA +7%, APAC +14%, LATAM +3% • Performance by end-market: Industrial Filtration Solutions (IF
Slide 7: Life Sciences Segment Third Quarter FY23 Results
Life Sciences Segment Third Quarter FY23 Results Third Quarter Overview Sales • Total sales decreased 13% compared to prior year and declined 9% on a constant currency basis • Performance by region: US/CA +15%, EMEA -6%, APAC -25%, LATAM -28% • Lower sales driven by ongoing softness in Disk Drive ma
Slide 8: Balance Sheet and Cash Flow Overview
Balance Sheet and Cash Flow Overview Net Debt and Financial Leverage $600 1.2x Net Debt to EBITDA $470 $436 Net Debt(1) ($M) Highlights $400 0.9x $284 0.9x $200 0.7x 0.6x • Adjusted free cash flow conversion of 0.6x 105% in Q3’23, well above 49% in Q3’22 and 93% fiscal year to date compared to $0 0.
Slide 9: Fiscal 2023 Financial Outlook
Fiscal 2023 Financial Outlook Total Company Sales Growth Segment Outlook Prior (Q2’23) Current Prior (Q2’23) Current +2% to 6% +3% to 5% Total Sales +1% to 5% +2% to 4% Off-Road + High-single digits + High-single digits Total Company Gross Margin On-Road + Mid-single digits + Mid-single digits Prior
Slide 10: Appendix
Appendix 10
Slide 11: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ($ in millions, except per share amounts) (Unaudited) RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (In millions) (Unaudited) Three Months Ended Nine Months Ended April 30, April 30, 2023 2022 2023 2022 Net cash provided by operating activities $ 133.2 $
Slide 12: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ($ in millions, except per share amounts) (Unaudited) April, 30 2023 2022 2021 Total debt $ 622.1 $ 638.5 $ 499.1 Less: Cash and cash equivalents (186.0) (168.7) (215.3) Net debt $ 436.1 $ 469.8 $ 283.8 Note: this will always be the trailing twelve month