Nordson Corporation · NASDAQ:NDSN
Nordson — Investor Presentation (December 2024)
36 slides from Nordson's investor presentation, Dec 16, 2024
Slide 1: Investor Presentation
Investor Presentation December 16, 2024 Nasdaq: NDSN NBS NEXT OWNER MINDSET WINNING TEAMS
Slide 2: Safe Harbor Statement
Safe Harbor Statement Click to edit title Under the Private Securities Litigation Reform Act of 1995 Certain statements contained in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by
Slide 3: Nordson is a growth compounder with unique competitive advantages
Nordson is a growth compounder with unique competitive advantages Company Founded 2024 Revenue 2024 EBITDA% Employees Countries with Direct Presence 1954 $2.7B 32% 8,000+ 35+ 3
Slide 4: By the Numbers
By the Numbers Demonstrated Consistent Record Disciplined focus Differentiated Consistent value to Value to Solid Returns of Growth on profitability Product Portfolio* shareholders Customers 6% 55% 30% 13% 2,100+ 61 yrs. Sales Growth Gross Margins EBITDA Margins Global Patents of Annual ROIC Held Di
Slide 5: Commitment to ESG
Commitment to ESG Diversified Board of Directors Strong Culture and Values Environmental Stewardship 50% diverse board (3 gender and 2 Nordson Impact – Invest 5% of domestic Product design improvements focused on racially or ethnically diverse) pretax earnings in communities reducing customers
Slide 6: Diversified Sources of Sales
Diversified Sources of Sales FY2024 Profile - $2.7 Billion Product Type Geographies 29% Parts and Americas 43% Consumables 44% Europe 57% Systems Asia Pacific 27% High percentage of recurring Diversified geographic footprint. sales from parts and Direct presence in over consumables. 35 countries. 6
Slide 7: Diversified End Markets
Diversified End Markets Consumer Non-Durable Electronics Medical Industrial Remaining Markets 25% of revenue 23% of revenue 21% of revenue 19% of revenue 12% of revenue Box sealing Semiconductor packaging Balloons, extrusions, delivery Construction and industrial Consumer durable catheters
Slide 8: How We Are Organized
How We Are Organized INDUSTRIAL PRECISION SOLUTIONS MEDICAL FLUID SOLUTIONS ADVANCED TECHNOLOGY SOLUTIONS Adhesives, Industrial Coatings, Interventional Solutions, Fluid Components Electronic Processing Systems Measurement and Control Solutions & Polymer Processing Systems & Engineered Fluid Dispens
Slide 9: Industrial Precision Solutions
Industrial What We Do Product lines reduce material consumption, Precision increase line efficiency, and enhance product brand and appearance. Components are used for dispensing adhesives, coatings, paint, finishes, Solutions sealants and other materials. This business primarily serves the industria
Slide 10: Medical Fluid Solutions
Medical What We Do Fluid management solutions for medical, high- Fluid tech industrial and other diverse end markets. Related plastic tubing, balloons, catheters, syringes, cartridges, tips, and fluid connection Solutions components are used to dispense or control fluids within customers’ medical de
Slide 11: Advanced Technology Solutions
Advanced What We Do Design and develop proprietary technologies found Technology in progressive stages of an electronics customer’s production processes, such as surface treatment, precisely controlled dispensing of material and test Solutions and inspection to ensure quality and reliability. Long-T
Slide 12: Why Invest in Nordson?
CNordson Why Invest in Nordson?
Slide 13: A Growth Portfolio Ready to Accelerate
A Growth Portfolio Ready to Accelerate 2014 (FY Revenue $1.7B) 2024 (FY Revenue $2.7B) 39% Systems 43% Systems Parts / Service 57% Parts / Service 61% Growth Growth 29% End Markets 44% End Markets 12% 23% 23% 24% Electronics 19% 6% Medical 5% 21% Nondurables 42% Industrial 25% 13 Other
Slide 14: 2025-2029 Financial Targets
2025-2029 Financial Targets Growth Compounder Revenue Adjusted EPS Growth Growth 6-8% 10-12% Average annual growth Engaged Employees Driven by Nordson Values 14
Slide 15: Driving profitable growth by investing in the best growth opportunities
Driving profitable growth by selecting and investing disproportionately in the 15 best growth opportunities
Slide 16: Entrepreneurial division-led organization
Entrepreneurial division-led organization: Decisions close to the customer Autonomy + Accountability Clear line of sight to deploying NBS Next 16
Slide 17: Key ingredient to successful execution of the Ascend strategy
A key ingredient to successful execution of the Ascend strategy: Leaders inspiring trust and building followership in the organization Focus on inclusion and diversity in everything we do Create an engaging culture that attracts and retains top talent 17
Slide 18: Disciplined Approach to M&A
Disciplined Approach to M&A Strategic Criteria Financial Criteria Serving attractive end market niches and Growth at or above market rates with Nordson- applications like gross margins Differentiated product technologies/solutions EBITDA ~20+% with margin expansion opportunities Additive
Slide 19: Growth Algorithm
Growth Algorithm Revenue Adjusted EPS 3% - 4% 4% 6%-8% $2.7B 3% - 4% 10%-12% $9.73 6% - 8% 2024 Organic M&A 2029 2024 Incremental Profit NBS Next 2029 19
Slide 20: Superior Conversion / Deployment of Cash Flows
Superior Conversion / Deployment of Cash Flows Generation of ~ $4.1B in operating cash flows through 2029 Capital Deployment through 2029 Cash Flow Deployment Priorities Fund organic growth 7% Return to shareholders thru dividends and Organic Capital routine stock repurchases to offset dilution
Slide 21: Recent Financial Results
CNorison Recent malatclalerts) Results
Slide 22: Total Company – 4Q 2024
Total Company – 4Q 2024 4Q 2024 Sales Bridge ** Sales $6 $744 $41 Reported sales increased 4% $719 Acquisitions contributed 6% and favorable currency impact contributed 1% $(22) Organic decrease of 3% driven by tough comparisons in Industrial Precision Solutions segment and weakness in Medical
Slide 23: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Healthy Cash Flow with Sufficient Liquidity to Invest in Strategic Initiatives Free Cash Flow Net Debt Cash flow of $492 million, which is a conversion rate of Cash totaled $116 million 105% of net income 2.5x net debt leverage ratio based on trailing 12-month In-
Slide 24: 2025 Fiscal Full-Year Guidance
2025 Fiscal Full-Year Guidance Full-year Sales Guidance Full-Year Growth from Record 2024 $2,750 - $2,870 Ascend strategy is advancing and delivering results Backlog, including Atrion, is ~$580 million $2,689 $2,629 Fiscal 2025 sales growth of 2% to 7%, inclusive of FX headwind of (1.5)% Adj
Slide 25: Appendix 1: Product Innovation
Appendix 1: Product Innovation
Slide 26: Our Electronics Industry Position
Our Electronics Industry Position Surface Mount Manufacturing Solder paste Flux spray Optical Inline Systems Plasma Underfill, Optical X-ray Conformal inspection coating inspection surface encapsulation inspection inspection coating treatment or precise coating Solder paste Component placement Reflo
Slide 27: Our Role in the Semiconductor Process
Our Role in the Semiconductor Process 27
Slide 28: CyberOptics expands market opportunities
CyberOptics expands market opportunities Nordson T&I Division CyberOptics Optical Sensors & Systems 3D Optical semi market expected to grow ~15%+, 28 exceeding the broader ‘Wafer Fab Equipment’ market LSD ’23 – ’25 growth
Slide 29: Medical and Fluid Solutions
Medical and Fluid Solutions Fluid Solutions Interventional Solutions Fluid Components Precision Low-Volume Dispensing Medical balloons, catheters, cannulas Single-use components From benchtop dispensers to industry-best From specialty tubing, catheters, medical Proprietary single-use plastic jetting
Slide 30: Core Adhesives Innovative Technology
Core Adhesives Innovative Technology Auto-fill Tankless Variable Dispense Foaming Jetting Precision dispense Technology Technology Technology Technology technology Adhesive fill systems Delivering different Maintains bond strength Dispenses adhesive Increases production monitor and maintain add-on r
Slide 31: Appendix 2: Financial Exhibits
Appendix 2: Financial Exhibits
Slide 32: Non-GAAP Definitions
Appendix Non-GAAP Definitions This presentation contains references to non-GAAP financial information. Although these are non-GAAP measures, we believe that they are useful to an investor in evaluating the company performance for the period presented. These non-GAAP definitions include: EBITDA is
Slide 33: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Net Income to Adjusted EBITDA (Dollars in thousands) 33
Slide 34: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Adjusted Operating Profit and EBITDA (Dollars in thousands) 34
Slide 35: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Profitability (Dollars in thousands) 35
Slide 36: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Operating Cash Flow to Free Cash Flow 36