Slide 1: 3Q Fiscal 2023 Webcast
3Q Fiscal 2023 Webcast August 22, 2023 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: Agenda
Agenda 3Q Fiscal 2023 Webcast – August 22, 2023 Third Quarter Highlights Sales Performance and Earnings Review Balance Sheet and Cash Flow Enterprise Performance, including ARAG acquisition update FY 2023 and 4Q 2023 Guidance Q&A Sundaram Nagarajan Joseph Kelley Lara Mahoney President an
Slide 4: Q3 2023 Highlights
Q3 2023 Highlights • Operational execution in the quarter delivered strong profitability and cash flow • Diversification supports performance o Product lines: Growth in medical interventional solutions, polymer processing and test and inspection, offset most of the weakness in electronics and biopha
Slide 5: Total Company – 3Q 2023
Total Company – 3Q 2023 Sales Reported sales decreased 2%, inclusive of 5% organic decline; 2% acquisitive growth Ongoing pressure in electronics, primarily semiconductor, and biopharma end markets, partially offset by strong growth in medical interventional solutions and polymer processing prod
Slide 6: Industrial Precision Solutions – 3Q 2023
Industrial Precision Solutions – 3Q 2023 Sales Sales decreased 1% to $338 million, inclusive of 2% organic sales decrease Decrease driven primarily by product assembly and nonwovens product lines in Asia Pacific, partially offset by continued strength in the polymer processing product lines Ye
Slide 7: Medical and Fluid Solutions – 3Q 2023
Medical and Fluid Solutions – 3Q 2023 Sales Sales of $171 million, decrease of 4% Double-digit growth for medical interventional solutions product lines was offset by continued softness in medical fluid components for biopharma applications and fluid solutions product lines for electronic assemb
Slide 8: Advanced Technology Solutions – 3Q 2023
Advanced Technology Solutions – 3Q 2023 Sales Sales decreased 3% to $140 million, inclusive of a 13% decrease in organic sales, partially offset by an 11% increase from acquisition Organic sales decrease driven by electronics dispense products serving semiconductor end markets predominantly in A
Slide 9: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Strong Cash Flow with Sufficient Liquidity to Invest in Strategic Initiatives Net Debt Free Cash Flow Cash totaled $143 million Strong free cash flow of $181 million Net debt of $695 million, reflective of $111 million debt Year-to-date cash conversion rate on net
Slide 10: Enterprise Performance
• End market visibility: Enterprise o Short-term sales weakness related to Performance the biopharma market correction in fluid components. Expect to anniversary by the end of 1Q24. o Weakness in electronics dispense products lines near the bottom of the cycle. Expect inflection in 2H24 o Experienci
Slide 11: ARAG Group
ARAG Group Differentiated dispense technology for precision agriculture Acquisition announced June 26, 2023 Precision dispense is core to Nordson Differentiated technology generates Nordson-like gross margins Customer-centric business model Expands capabilities into high-growth precision agr
Slide 12: Full-Year Fiscal 2023 Guidance
Full-Year Fiscal 2023 Guidance Full-Year Sales Guidance Narrowing guidance, sustaining $2,362 $2,590 $2,590 - $2,642 record 2022 sales performance Narrowing fiscal 2023 sales growth guidance of 0% - 2%, inclusive of $20-$30 million from ARAG Narrowing adjusted earnings range to $8.90 to $9.05 20
Slide 13: 4Q Fiscal 2023 Guidance
4Q Fiscal 2023 Guidance 4Q 2023 Sales Guidance Steady Growth $681 - $733 $684 4Q will be strongest sales of the year, increasing low- mid single digits over prior year $599 ARAG, expected to close by late August 2023, is expected to contribute $20-$30 million of sales in Q4 Backlog remains str
Slide 14: Questions?
Questions? Cordson
Slide 15: 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: Adjusted o
Slide 16: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Adjusted Operating Profit and EBITDA (Dollars in thousands) 16
Slide 17: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Profitability (Dollars in thousands) 17