Donaldson Company, Inc. · NYSE:DCI
Donaldson — Q3 2024 Earnings Presentation
14 slides from Donaldson's earnings presentation, Jun 4, 2024
Slide 1: Third Quarter Fiscal Year 2024
DONALDSON COMPANY THIRD QUARTE R FISCAL YEAR 2024 JUNE 2024
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 2024 Update and Overview
Third Quarter Fiscal Year 2024 Update and Overview Strong Execution Through Mixed End-Market Conditions ✓ Robust gross margin expansion Key ✓ Sales growth and profitability across all three segments Updates ✓ Ongoing investments in innovation and scaling of acquisitions ✓ Returned $57M to shareholde
Slide 4: Third Quarter FY24 Overview & Highlights
Third Quarter FY24 Overview & Highlights Sales ($M) Operating Margin Diluted EPS Up 6.0% YoY Up 130 bps YoY Up 21.7% YoY $928 $0.92 $876 15.5% $0.76 14.2% Q3’23 Q3’24 Q3’23 Q3’24 Q3’23 Q3’24 Highlights Highlights Highlights • ~5% YoY contribution from volume • Gross margin increased 260 bps versus p
Slide 5: Mobile Solutions Segment Third Quarter FY24 Results
Mobile Solutions Segment Third Quarter FY24 Results Third Quarter Overview Sales • Total Sales YoY: +6% • Strength in Aftermarket from share gains and prior year destocking, partially offset by decreases in On-Road and Off-Road due to lower global equipment production • Performance by end-market YoY
Slide 6: Industrial Solutions Segment Third Quarter FY24 Results
Industrial Solutions Segment Third Quarter FY24 Results Third Quarter Overview Sales • Total Sales YoY: +3% • Sales driven by volume growth and pricing • Performance by end-market YoY: • Aerospace & Defense +6% • Industrial Filtration Solutions (IFS) +2% Q3’24 Q3’23 YoY • Performance by region YoY:
Slide 7: Life Sciences Segment Third Quarter FY24 Results
Life Sciences Segment Third Quarter FY24 Results Third Quarter Overview Sales • Total Sales YoY: +24% • Sales increase driven by Bioprocessing Equipment project timing and Disk Drive strength • Performance by region YoY: • US/CA +28% • EMEA +31% Q3’24 Q3’23 YoY • APAC +13% • LATAM +80% Sales $74 $59
Slide 8: Balance Sheet and Cash Flow Overview
Balance Sheet and Cash Flow Overview Net Debt and Financial Leverage $600 1.2x $470 Net Debt(1) ($M) $436 Net Debt to Adj. Highlights EBITDA(1) $400 $333 0.9x 0.9x $200 0.5x 0.6x • Free cash flow conversion(2) of 106% in 0.7x Q3’24 • Strong conversion driven by $0 0.3x continued focus on working cap
Slide 9: A Sustainability Strategy For a Thriving Future
Scan to Access Our A Sustainability Strategy For a Thriving Future Sustainability Report PRODUCTS PEOPLE PLANET Creating Sustainable Value Promoting Safety & Diversity Operating Sustainably Supporting Low-Carbon Transition Progress towards eliminating serious Progress towards our goal of reducing Pl
Slide 10: Fiscal 2024 Financial Outlook
Fiscal 2024 Financial Outlook Total Company Sales Growth Segment Outlook Current Prior (Q2’24) Current Prior (Q2’24) +4% to 6% +3% to 7% Total Sales +2% to 4% +1% to 5% Off-Road - Low-double digits - Low-double digits Total Company Gross Margin On-Road - Low-single digits Flat Current Prior (Q2’24)
Slide 11: Key Investment Points
Key Investment Points Leader in filtration with long history of solving the most difficult filtration problems 1 and forming mission critical partnerships across global customer base Best-in-class technology and strategic organizational redesign strengthens ability 2 to drive long-term profitable gr
Slide 12: Appendix
Ol y naldson. 12 Appendix
Slide 13: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ($ in millions, except per share amounts) (Unaudited) 13
Slide 14: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ($ in millions) (Unaudited) April 30, 2024 2023 2022 Total debt $ 556.2 $ 622.1 $ 638.5 Less: Cash and cash equivalents (223.7) (186.0) (168.7) Net debt $ 332.5 $ 436.1 $ 469.8 Twelve months ended April 30, 2024 2023 2022 Adjusted EBITDA $ 637.5 $ 609.0