Nordson Corporation · NASDAQ:NDSN
Nordson — Investor Presentation (December 2022)
36 slides from Nordson's investor presentation, Dec 15, 2022
Slide 1: Investor Presentation
Investor Presentation December 15, 2022 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 an innovative precision technology company
Nordson is an innovative precision technology company that leverages a scalable growth framework to deliver top tier growth with leading margins and returns. Company Founded *Sales *EBITDA Employees Countries with Direct Presence 1954 $2.6B $807M 7,330+ 35+ 3 *Sales and EBITDA for the full fiscal ye
Slide 4: By the Numbers
By the Numbers Consistent Record Demonstrated Value Disciplined focus on Differentiated Consistent value to Solid Returns of Growth to Customers profitability Product Portfolio* shareholders 5% 55% 29% 19% 2,000+ 59 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 ▪ 56% diverse board (3 gender and 2 racially ▪ Nordson Impact – Invest 5% of domestic ▪ Product design improvements focused on or ethnically diverse) pretax earnings in communities reducing customers
Slide 6: Diversified Sources of Sales
Diversified Sources of Sales FY2022 Profile - $2.6 Billion Product Type Geographies 33% Americas Parts and Consumables 42% Europe 49% 51% Systems Asia Pacific 25% 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 Electronics Consumer Non-Durables Medical Industrial Remaining Markets 30% of revenue 23% of revenue 21% of revenue 15% of revenue 12% 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 INDUSTRIAL PRECISION SOLUTIONS MEDICAL FLUID SOLUTIONS ADVANCED TECHNOLOGY SOLUTIONS Adhesives, Industrial Coatings Systems, Medical & Electronic Processing Systems Measurement and Control Solutions & Polymer Processing Systems Fluid Management & Test and Inspection 51% 27% 22%
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-tech Fluid industrial and other diverse end markets. Related plastic tubing, balloons, catheters, syringes, cartridges, tips, and fluid connection components Solutions are used to dispense or control fluids within customers’ medical dev
Slide 11: Advanced Technology Solutions
Advanced What We Do Design and develop proprietary technologies found in Technology 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. 5%+ CA
Slide 12: Why Invest in Nordson?
Giordson Why Invest in Nordson?
Slide 13: A Diversified Precision Technology Company
A Diversified Precision Technology Company ▪ Sustained organic growth ▪ Data drives action ▪ Enhance depth and diversity REVENUE EBITDA ▪ Accelerate acquisitions ▪ Entrepreneurial, accountable ▪ Enrich inclusive culture $3B+ 30% Long-term 2025 financial targets 13
Slide 14: Driving profitable growth by selecting and investing in best growth opportunities
Driving profitable growth by selecting and investing disproportionately in the 14 best growth opportunities
Slide 15: Entrepreneurial division-led organization
Entrepreneurial division-led organization: ▪ Decisions close to the customer ▪ Autonomy + Accountability ▪ Clear line of sight to deploying NBS Next 15
Slide 16: 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 16
Slide 17: 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 $3,040 $2,625 $2,121 30% Sales CAGR 5% 7%+ 27% $1,750 $1,688 24% EBITDA CAGR 7% 10% $875 Ending ROIC % 13% 13%+ $0 15% 2015 2020 2025 Sales EBITDA % 17
Slide 18: 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 19: CyberOptics Acquisition Closed November 3, 2022
CyberOptics Acquisition Closed November 3, 2022 ACQUISITION FEATURES: ▪ Strategic fit for test and inspection division, which includes Systems x-ray, acoustic and optical applications ▪ Expands Nordson’s optical portfolio into sensor technology Metrology and Inspection Systems for Wafer-Level and CO
Slide 20: CyberOptics expands market opportunities
CyberOptics expands market opportunities Nordson T&I Division CyberOptics Optical Sensors & Systems 3D Optical semi market expected to grow ~15%+, 20 exceeding the broader ‘Wafer Fab Equipment’ market LSD ’23 – ’25 growth
Slide 21: Capital Allocation Priorities
Capital Allocation Priorities SUSTAINED INVESTMENT TO DRIVE ORGANIC DISCIPLINED M&A RETURN OF CAPITAL 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 22: 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 23: Recent Financial Results
Giordson Recent Financial Results
Slide 24: Total Company – Fiscal 2022
Total Company – Fiscal 2022 Full Year Sales Bridge Record Annual Sales ▪ Annual sales of $2.6 billion, an increase of 10% ▪ Organic growth increased 11% with NDC acquisition contributing 3%. This was offset by unfavorable currency impact of 4%. ▪ Broad-based growth across most end markets and geogra
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 $163 million ▪ Conversion rate of 90% of net income ▪ 0.7 net debt leverage ratio based on trailing 12-month ▪ Strategic investments in inventory EBITDA Ne
Slide 26: 2023 Fiscal Full-Year Guidance
2023 Fiscal Full-Year Guidance Full-Year Sales Guidance $2,616 - $2,772 Full-Year Growth from Record 2022 ▪ NBS Next Deployment throughout the business is advancing and delivering results 2590 2616 ▪ Backlog, including CyberOptics, is ~$1 billion 2362 ▪ Fiscal 2023 sales growth of ~1 – 7% ▪ Adjusted
Slide 27: 2023 Fiscal 1Q Guidance
2023 Fiscal 1Q Guidance 1Q 2023 Sales Guidance Steady performance moving into 1Q $605 - $630 ▪ 1Q 23 sales of $605 - $630 million ▪ 1Q 23 adjusted earnings per share in the range of $1.85 - $2.00 609 605 527 ▪ Assumes negative currency impact of ~4% on sales and ~7% on earnings 1Q 21 1Q 22 1Q 23 1Q
Slide 28: Appendix 1: Product Innovation
Appendix 1: Product Innovation
Slide 29: 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 30: Our Role in the Semiconductor Process
Our Role in the Semiconductor Process 30
Slide 31: Advanced Technology – Fluid Management
Advanced Technology – Fluid Management Life Sciences Precision Low-Volume Dispensing Optimum® Syringe Barrels and Tips Fluid Management Components From benchtop dispensers to industry-best Optimum® components are designed as a From specialty tubing, catheters, jetting valves and automated dispensing
Slide 32: Core Adhesives Innovative Technology
Core Adhesives Innovative Technology Auto-fill Tankless Variable Dispense Foaming Jetting Precision dispense Technology Technology Technology Technology technology Delivering different add- Maintains bond strength Increases production efficiency Adhesive fill systems monitor and Dispenses adhesive u
Slide 33: Appendix 2: Financial Exhibits
Appendix 2: Financial Exhibits
Slide 34: 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 35: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Adjusted Operating Profit and EBITDA (Dollars in thousands) 35
Slide 36: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Profitability (Dollars in thousands) 36