Nordson Corporation · NASDAQ:NDSN
Nordson — Investor Presentation (February 2023)
36 slides from Nordson's investor presentation, Feb 21, 2023
Slide 1: Investor Presentation
Investor Presentation February 21, 2023 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 Demonstrated Consistent Record Disciplined focus Differentiated Consistent value to Value to Solid Returns of Growth on profitability Product Portfolio* shareholders Customers 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 ▪ 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 FY2022 Profile - $2.6 Billion Product Type Geographies Parts and 33% Americas Consumables 42% 49% 51% Europe 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
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: Medical Fluid Solutions
What We Do Medical Fluid management solutions for medical, high- tech industrial and other diverse end markets. Fluid Related plastic tubing, balloons, catheters, syringes, cartridges, tips, and fluid connection components are used to dispense or control fluids Solutions within customers’ medical de
Slide 11: Advanced Technology Solutions
What We Do Advanced Design and develop proprietary technologies found in progressive stages of an electronics customer’s Technology production processes, such as surface treatment, precisely controlled dispensing of material and test and inspection to ensure quality and reliability. Solutions 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 ▪ Data drives action ▪ Enhance depth REVENUE EBITDA growth ▪ Entrepreneurial, and diversity ▪ Accelerate acquisitions accountable ▪ Enrich inclusive culture $3B+ 30% Long-term 2025 financial targets 13
Slide 14: Driving profitable growth by investing in the 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 $3,000 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 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 Metrology and Inspection ▪ Expands Nordson’s optical portfolio into sensor technology Systems for Wafer-Level and Ad
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 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 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
CNordson Recent Financial Results
Slide 24: Total Company – 1Q 2023
Total Company – 1Q 2023 Sales 1Q 2023 Sales Bridge ▪ Reported sales of $610M ▪ Organic growth increased 1%; acquisitive growth of 3%; unfavorable currency impact of 4% ▪ Strong combined 9% growth in Europe and Americas offset by weakness in Asia Pacific, primarily China Operating Profit* 1Q 2022 1Q
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 $122 million ▪ $8 million increase, or 109% of adjusted net income ▪ 1.1 net debt leverage ratio based on trailing 12-month ▪ Dividend payments of $37 mill
Slide 26: Full-Year Fiscal 2023 Guidance
Full-Year Fiscal 2023 Guidance Full-Year Sales Guidance Updating guidance, sustaining $2,590 $2,590 - $2,667 record 2022 performance $2,362 ▪ Fiscal 2023 sales growth of 0% - 3% ▪ Adjusted earnings comparable to 2022 ▪ Remain invested in innovation and differentiated 2021 2022 2023 customer experien
Slide 27: 2Q Fiscal 2023 Guidance
2Q Fiscal 2023 Guidance 2Q 2023 Sales Guidance Managing dynamic market $635 $630 - $645 conditions $590 ▪ 2Q 23 sales comparable to prior year, acquisition benefits are largely offset by currency headwinds ▪ 2Q 23 adjusted earnings per share in the range of $2.00 to $2.15 2Q 21 2Q 22 2Q 23 ▪ Order e
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 Adhesive fill systems Delivering different Maintains bond strength Dispenses adhesive Increases production monitor and maintain add-on r
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