Nordson Corporation · NASDAQ:NDSN
Nordson — Q1 2021 Earnings Presentation
30 slides from Nordson's earnings presentation, Apr 16, 2021
Slide 1: Investor Presentation
INVESTOR PRESENTATION August 19,2021 April 16, 2020I INasdaq: NASDAQ: NDSN NDSN Nordson MEDICAL's LinkTech line of high-performance quick connect couplings are essential for the critical connections in the diagnostic equipment used to perform COVID-19 tests. With thousands of standard and custom sty
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 an innovative precision technology company
Nordson is an innovative precision technology company delivering top-tier growth with attractive margins and returns by serving diversified, attractive end markets around world. Company Founded *Sales *EBITDA Employees Countries with Direct Presence 1954 $2.1B $567M 7,500+ 35+ 3 *Sales and EBITDA fo
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 5% 54% 27% 13% 1,926 57 yrs. Sales Growth Gross Margins EBITDA Margins Global Patents of Annual ROIC Held Div
Slide 5: Commitment to ESG
Commitment to ESG Diversified Board of Directors Strong Culture and Values Environmental Stewardship ▪ 56% 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 FY2020 Profile - $2.1 Billion Product Type Geographies 33% Parts and Americas 43% Consumables 42% Europe 57% Systems Asia Pacific 25% High percentage of recurring Nearly 65% of sales outside USA. sales from parts and Direct presence in over consumables. 35 countries. 6
Slide 7: Diversified End Markets
Diversified End Markets Electronics Consumer Non-Durables Medical Industrial Remaining Markets 27% of revenue 26% of revenue 22% of revenue 14% of revenue 11% of revenue ▪ Semiconductor packaging ▪ Box sealing ▪ Balloons, extrusions, delivery ▪ Farm, construction and ▪ Consumer durable catheters and
Slide 8: How We Are Organized
How We Are Organized 55% 45% INDUSTRIAL PRECISION SOLUTIONS ADVANCED TECHNOLOGY SOLUTIONS Polymer Processing Industrial Coatings Electronic Processing Test and Fluid Adhesives Medical Solutions Solutions Systems Inspection Management 8 *Segment average mix for the full fiscal year ended 10/31/20
Slide 9: Industrial Precision Solutions
What We Do Industrial Product lines reduce material consumption, increase line efficiency, and enhance product Precision brand and appearance. Components are used for dispensing adhesives, coatings, paint, finishes, sealants and other materials. This business Solutions primarily serves the industria
Slide 10: Industrial Precision Solutions: Diverse end markets
Industrial Precision Solutions FY2020 Profile – Diverse end markets 6% End markets include: 10% ▪ Consumer Non-Durable: beverage, disposable hygiene, food, paper, textiles, non-wovens, packaging ▪ Industrial: aerospace, chemical, construction, defense, 10% energy, farm and construction machinery, in
Slide 11: Advanced Technology Solutions
What We Do Advanced Precision dispense, fluid management, test, inspection, surface treatment and proprietary Technology solutions for medical, electronics and general industrial markets. Solutions 5%+ CAGR Long-Term Growth Driven By: ▪ Medical – Aging population, trends toward non- invasive surgica
Slide 12: Advanced Technology Solutions: Diverse End Markets
Advanced Technology Solutions FY2020 Profile – Diverse End Markets 2% 2% 6% End markets include: 7% ▪ Medical: minimally invasive interventional delivery devices, catheters, medical balloons, fluid connection components, specialty 40% tubing 15% ▪ Electronics: electronic components (i.e., computing;
Slide 13: Why Invest in Nordson?
Giordson Why Invest in Nordson?
Slide 14: The Growth Strategy
The Growth Strategy Diversified Precision Technology Company, $3B Revenue and 30% EBITDA ▪ Sustained organic growth ▪ Data drives action ▪ Enhance depth & diversity ▪ Accelerate acquisitions ▪ Entrepreneurial, Accountable ▪ Enrich inclusive culture 14
Slide 15: Driving profitable growth by investing in 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: Long-Term Financial Targets
Long-Term Financial Targets Top-tier growth with attractive margins and returns $3,500 35% $3,000 + 2015 - 2020 2020 - 2025 $3,000 30% $2,500 $2,121 30% Sales CAGR 5% 7%+ $2,000 $1,688 27% 25% $1,500 24% EBITDA CAGR 7% 10% $1,000 20% $500 Ending ROIC % 13% 13%+ $0 15% 2015 2020 2025 Sales EBITDA % 1
Slide 19: Disciplined M&A Strategy
Disciplined M&A Strategy Strategic Criteria Financial Criteria ▪ Differentiated precision technology based ▪ Attractive organic growth rate with Nordson-like product portfolio gross margins ▪ Serving attractive high-growth end market ▪ EBITDA ~20% with clear margin expansion applications opportuniti
Slide 20: Capital Allocation Priorities
Capital Allocation Priorities SUSTAINED INVESTMENT TO DRIVE DISCIPLINED M&A RETURN OF CAPITAL ORGANIC GROWTH ▪ Increased R&D investment ▪ Differentiated precision ▪ Strong history with 57-year of ▪ Sustained investment in direct technologies paying and increasing the sales model ▪ Financially discip
Slide 21: Investment Thesis
Investment Thesis 1. Strong growth drivers enabling Nordson’s future profitable growth performance 2. Proprietary precision technologies remain a competitive advantage 3. NBS Next is the framework driving our profitable growth 4. Ascend Strategy will deliver top tier financial performance ▪ Sustaine
Slide 22: Q1 F21 Financial Results
CNordson Q1 F21 Financial Results
Slide 23: 2021 Q1 Highlights
2021 Q1 Highlights Returning to growth in Continuing to operate safely in 1 comparison to first quarters 2020 and 2019 pandemic environment Continued deployment of 2 NBS Next for long-term profitable growth Optimistic about positive 3 momentum in certain end markets 23
Slide 24: Total Company – 1Q 2021
Total Company – 1Q 2021 Sales Increased 6% 1Q 2021 Sales Bridge ▪ Organic growth increased 3% ▪ Strength in consumer non-durable, industrial and test & inspection product lines ▪ Stability in medical end markets ▪ 1% acquisition and favorable currency Operating Profit $109 million, 21% of sales 1Q 2
Slide 25: 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 $226 million ▪ 175% of net income ▪ Net debt was $794 million ▪ Higher net income and working capital liquidation ▪ 1.3X leverage ratio based on trailing 1
Slide 26: Full-Year Fiscal 2021 Guidance
Full-Year Fiscal 2021 Guidance 2021 Sales Guidance Returning to Growth in Fiscal 2021 $2,206 – $2,248 $2,194 Fiscal 2021 Guidance $2,121 ▪ Sales growth of ~4% to 6% ▪ Earnings per diluted share in the range of $6.30 to $6.70; growth of ~15% to 22% 2019 2020 2021 ▪ Backlog of $495 million, ~7% increa
Slide 27: Appendix: Financial Exhibits
Appendix: Financial Exhibits
Slide 28: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Adjusted Operating Profit and EBITDA (Dollars in thousands) 28
Slide 29: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Profitability (Dollars in thousands) 29
Slide 30: 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