Donaldson Company, Inc. · NYSE:DCI
Donaldson — Q4 2023 Earnings Presentation
16 slides from Donaldson's earnings presentation, Aug 29, 2023
Slide 1: Fourth Quarter Fiscal Year 2023
DONALDSON COMPANY FOURTH QUARTER FISCAL YEAR 2023 AUGUST 2023
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: Fourth Quarter Fiscal Year 2023 Update and Overview
Fourth Quarter Fiscal Year 2023 Update and Overview Strategic Investments and Ongoing Execution Driving Shareholder Value Creation ✓ Strategic Life Sciences investments focused on increasing scale; Univercells Technologies acquisition Key ✓ Strong fill-rates, on-time deliveries and improved late bac
Slide 4: Fourth Quarter FY23 Overview & Highlights
Fourth Quarter FY23 Overview & Highlights Sales ($M) Adjusted Operating Margin(1) Adjusted Diluted EPS(1) Down 1.5% YoY Constant Currency Basis Down 60 bps YoY Down 7% YoY $0.84 $890 -1% $0.78 $880 14.9% 14.3% Q4’22 Q4’23 Q4’22 Q4’23 Q4’22 Q4’23 Highlights Highlights Highlights • +5% YoY contributio
Slide 5: Full-Year FY23 Overview & Highlights
Full-Year FY23 Overview & Highlights Sales ($M) Adjusted Operating Margin(1) Adjusted Diluted EPS(1) Up 7% YoY Constant Currency Basis Up 110 bps YoY Up 13% YoY $3.04 $3,431 $2.68 $3,307 +4% 14.6% 13.5% FY22 FY23 FY22 FY23 FY22 1 FY23 2 Highlights Highlights Highlights • +8% YoY contribution from pr
Slide 6: Mobile Solutions Segment Fourth Quarter FY23 Results
Mobile Solutions Segment Fourth Quarter FY23 Results Fourth Quarter Overview Sales • Total Sales YoY: -5% reported and constant currency basis • Sales decline mainly driven by OEM customer inventory management resulting from improved global supply chain • Performance by region YoY: • US/CA -9% • EME
Slide 7: Industrial Solutions Segment Fourth Quarter FY23 Results
Industrial Solutions Segment Fourth Quarter FY23 Results Fourth Quarter Overview Sales • Total Sales YoY: +10% reported and +9% constant currency basis • Sales growth driven by strong global demand and price realization • Performance by region YoY: • US/CA +9% • EMEA +16% Q4’23 Q4’22 YoY • APAC -3%
Slide 8: Life Sciences Segment Fourth Quarter FY23 Results
Life Sciences Segment Fourth Quarter FY23 Results Fourth Quarter Overview Sales • Total Sales YoY: -12% reported and -13% constant currency basis • Lower sales driven by ongoing softness in Disk Drive market demand • Acquisitions added 340 bps to sales growth • Performance by region YoY: • US/CA +38
Slide 9: Building Upon Our Strengths in Life Sciences
Building Upon Our Strengths in Life Sciences HIGHLIGHTS Bioprocessing • Acquired Univercells Technologies in Q4’23 • Investing in Life Sciences R&D headcount; Increased team by 5x in FY23 • Solaris, Purilogics and Isolere acquisitions fully integrated 100 €10M $147M Employees Revenue Transaction • O
Slide 10: End-to-end Solutions for Genetic Medicine Bioprocessing
End-to-end Solutions for Genetic Medicine Bioprocessing Culture Purification Up to 10x increased viral Up to 10x higher 10x 10x Culture pDNA mRNA Viral Vectors yield vs. reference process productivity compared to (adherence & suspension) traditional resin systems Manufacturing footprint Membrane Chr
Slide 11: Balance Sheet and Cash Flow Overview
Balance Sheet and Cash Flow Overview Net Debt and Financial Leverage $600 1.2x $469 Net Debt(1) ($M) $455 Net Debt to Adj. Highlights EBITDA(1) $400 0.9x $287 0.8x $200 0.8x 0.6x • Adjusted free cash flow conversion(1,2) of 173% in Q4’23; 114% in FY23 0.6x $0 0.3x • Working capital a source of cash
Slide 12: Fiscal 2024 Financial Outlook
Fiscal 2024 Financial Outlook Total Company Sales Growth Segment Outlook Total Sales +1% to 5% +3% to 7% Off-Road + Low-single digits On-Road + Low-single digits Total Company Gross Margin Aftermarket + Mid-single digits YoY expansion Mobile Solutions Total Sales +3% to 7% Industrial + Mid-single di
Slide 13: Invest with Donaldson
Invest with Donaldson Investing in leading technologies to accelerate growth across 1 several opportunities including sustainability trends Strengthening position across industries with favorable megatrends 2 that provide long-term growth tailwinds Increasing level of investment directed toward high
Slide 14: Appendix
Ol y naldson. 14 Appendix
Slide 15: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ($ in millions, except per share amounts) (Unaudited) 15
Slide 16: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ($ in millions, except per share amounts) (Unaudited) 16