Donaldson Company, Inc. · NYSE:DCI
Donaldson — Q1 2023 Earnings Presentation
12 slides from Donaldson's earnings presentation, Nov 30, 2022
Slide 1: First Quarter Fiscal Year 2023 Earnings Call
First Quarter Fiscal Year 2023 Earnings Call November 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: First Quarter Fiscal Year 2023 Update and Overview
First Quarter Fiscal Year 2023 Update and Overview Successful Execution Continues in Early Fiscal 2023 • Delivered double-digit sales and earnings growth • Returned $74M to shareholders in the form of dividends and share repurchases • Announced Company-wide redesign aimed at enhancing commercial exe
Slide 4: Strong Value Proposition
Strong Value Proposition 1. 2. 3. 4. 5. Technology-led Diversified Experienced Global sales, Culture of filtration company portfolio of global management team production and ownership aligns with deep businesses with and engaged distribution with shareholder customer recurring revenue board of direc
Slide 5: First Quarter FY23 Overview & Highlights
First Quarter FY23 Overview & Highlights Sales ($M) Adj. Operating Margin Adj. Diluted EPS Up 19% YoY Constant Currency Basis Up 90 bps YoY Up 23% YoY 15.0% $0.75 +11% $847 14.1% $0.61 $761 Q1’22 Q1’23 Q1’22 Q1’23 Q1’22 Q1’23 • Positive YoY contribution from price (+11%) and • Gross margin up 10 bps
Slide 6: Engine Products Segment First Quarter FY23 Results
Engine Products Segment First Quarter FY23 Results First Quarter Overview ▪ Total sales up 15% compared to prior year and up 22% on a constant currency basis ▪ Sales performance by region: US/CA +26%, EMEA +1%, APAC -2%, Q1’23 Q1’22 YoY LATAM +33% ($ in millions) Sales $605 $527 +15% ▪ Sales in Chin
Slide 7: Industrial Products Segment First Quarter FY23 Results
Industrial Products Segment First Quarter FY23 Results First Quarter Overview ▪ Total sales up 4% compared to prior year and up 12% on a constant currency basis ▪ Sales performance by region: US/CA +22%, EMEA 0%, APAC -16%, LATAM +26% Q1’23 Q1’22 YoY ($ in millions) Sales $243 $234 +4% ▪ Sales perfo
Slide 8: Balance Sheet and Cash Flow Overview
Balance Sheet and Cash Flow Overview Net Debt and Financial Leverage Consolidated Results ($M) $600 1.2x Q1’23 Q1’22 Net Debt to EBITDA(1) $440 Net Debt ($M) $388 Cash from Operations $118 $43 $400 0.9x $313 Capital Expenditures ($28) ($18) 0.7x 0.8x $200 0.7x 0.6x Free Cash Flow (FCF)(1) $90 $25 $0
Slide 9: Fiscal 2023 Financial Outlook
Fiscal 2023 Financial Outlook FY23 Total Company Outlook FY23 Segment Sales Outlook Engine Products Sales Current Prior (Q4’22) Total Sales Growth +1% to +5% Total Segment Sales +1% to +5% Flat to +4% Gross Margin YoY expansion Off-Road Flat - Low-single digits Adjusted Operating On-Road Flat - Low-
Slide 10: Appendix
Appendix ™ Donaldson. Oy FILTRATION SOLUTIONS
Slide 11: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ($ in millions, except per share amounts) (Unaudited) RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (In millions) (Unaudited) Three Months Ended October 31, 2022 2021 Net cash provided by operating activities $ 118.2 $ 42.9 Net capital expenditures (28.1
Slide 12: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ($ in millions, except Net debt to adjusted EBITDA) (Unaudited) October 31, 2022 2021 2020 Total debt $ 600.9 $ 589.3 $ 583.0 Less: Cash and cash equivalents (161.0) (200.8) (270.0) Net debt $ 439.9 $ 388.5 $ 312.9 Twelve Months Ended October 31, 2022 20