Donaldson Company, Inc. · NYSE:DCI
Donaldson — Q4 2024 Earnings Presentation
15 slides from Donaldson's earnings presentation, Aug 28, 2024
Slide 1: Donaldson Company Fourth Quarter Fiscal Year 2024
DONALDSON COMPANY F O U RT H Q U ARTE R FI S CA L Y EA R 2 0 2 4 AUGUST 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: Fourth Quarter Fiscal Year 2024 Update and Overview
Fourth Quarter Fiscal Year 2024 Update and Overview Advancing Filtration for a Cleaner World Through Strong Execution Record fourth quarter and full-year 2024 earnings Key Fourth quarter sales growth and improved profitability across all three segments Updates Ongoing reinvestment into Donalds
Slide 4: Fourth Quarter FY24 Overview & Highlights
Fourth Quarter FY24 Overview & Highlights Sales ($M) Adjusted Operating Margin(1) Adjusted Diluted EPS(1) Up 7.6% YoY Constant Currency Basis Up 200 bps YoY Up 20.5% YoY 16.3% $0.94 +6% $935 $0.78 $880 14.3% Q4’23 Q4’24 Q4’23 Q4’24 Q4’23 Q4’24 Highlights Highlights Highlights • +5% YoY contribution
Slide 5: Full-Year FY24 Overview & Highlights
Full-Year FY24 Overview & Highlights Sales ($M) Adjusted Operating Margin(1) Adjusted Diluted EPS(1) Up 5% YoY Constant Currency Basis Up 80 bps YoY Up 13% YoY $3.42 +5% $3,586 $3.04 $3,431 15.4% 14.6% FY23 FY24 FY23 FY24 FY23 1 FY24 2 Highlights Highlights Highlights • +3% YoY contribution from vol
Slide 6: Mobile Solutions Segment Fourth Quarter FY24 Results
Mobile Solutions Segment Fourth Quarter FY24 Results Fourth Quarter Overview Sales • Total Sales YoY: +6% reported and +7% on a constant currency basis • Sales increase mainly driven by strength in Aftermarket, lapping OEM customer destocking in the prior year period as well as improved delivery rat
Slide 7: Industrial Solutions Segment Fourth Quarter FY24 Results
Industrial Solutions Segment Fourth Quarter FY24 Results Fourth Quarter Overview Sales • Total Sales YoY: +4% reported and +5% constant currency basis • Sales growth driven by robust Aerospace and Defense results from strong end-market conditions • Performance by region YoY: • US/CA +11% • EMEA -6%
Slide 8: Life Sciences Segment Fourth Quarter FY24 Results
Life Sciences Segment Fourth Quarter FY24 Results Fourth Quarter Overview Sales • Total Sales YoY: +21% reported and +23% constant currency basis • Higher sales driven by volume growth in Disk Drive and Food and Beverage • Performance by region YoY: • US/CA -15% Q4’24 Q4’23 YoY • EMEA +17% • APAC +4
Slide 9: Balance Sheet and Cash Flow Overview
Balance Sheet and Cash Flow Overview Net Debt and Financial Leverage $600 1.2x $455 $469 Net Debt(1) ($M) Net Debt to Adj. Highlights $400 0.9x EBITDA(1) $304 0.8x 0.8x $200 0.6x • Adjusted free cash flow conversion(1,2) of 93% in Q4’24; 97% in FY24 0.5x $0 0.3x • Supported by continued efficient ma
Slide 10: Fiscal 2025 Financial Outlook
Fiscal 2025 Financial Outlook Segment Outlook Total Company Total Sales +0% to 4% +2% to 6% Sales Growth Off-Road + Low-single digits On-Road - Low-double digits Aftermarket + Low-single digits Total Company Mobile Solutions YoY Expansion Gross Margin Total Sales +4% to 8% Industrial Filtration Solu
Slide 11: Updated Long-Term Financial Targets | FY26
Updated Long-Term Financial Targets | FY26 Segment Sales CAGR FY23 – FY26 Total Company Sales CAGR FY23 – FY26 Mobile Industrial Life Solutions Solutions Sciences +3% to +7% +4% to +8% Current +2% to 6% +4% to 8% +12% to 16% Current Prior (2023 Investor Day) Prior +2% to 6% +4% to 8% +18% to 22% Tot
Slide 12: Invest with Donaldson
Invest with Donaldson Leader in filtration with long history of solving the most difficult filtration problems and 1 forming mission critical partnerships across global customer base Best-in-class technology and strategic organizational redesign strengthens ability to 2 drive long-term profitable gr
Slide 13: Appendix
~. fa I \S Donaldson Appendix 13
Slide 14: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ($ in millions, except per share amounts) (Unaudited) Three Months Ended Twelve Months Ended July 31, July 31, 2024 2023 2024 2023 Net cash provided by operating activities $ 126.0 $ 190.8 $ 492.5 $ 544.5 Net capital expenditures (19.1) (25.5) (84.9) (11
Slide 15: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ($ in millions, except per share amounts) (Unaudited) 15