Donaldson Company, Inc. · NYSE:DCI
Donaldson — Q2 2024 Earnings Presentation
14 slides from Donaldson's earnings presentation, Feb 28, 2024
Slide 1: Second Quarter Fiscal Year 2024
DONALDSON COMPANY S EC O N D Q U A RTER F IS C AL Y E AR 2 0 2 4 February 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 L
Slide 3: Second Quarter Fiscal Year 2024 Update and Overview
Second Quarter Fiscal Year 2024 Update and Overview Consistent Execution Driving Shareholder Value Creation Delivering gross margin expansion Key Sales growth across all three segments, market share gains Updates Continued innovation and product portfolio expansion Focused on executing strat
Slide 4: Second Quarter FY24 Overview & Highlights
Second Quarter FY24 Overview & Highlights Sales ($M) Adjusted Operating Margin(1) Adjusted Diluted EPS(1) Up 5.8% YoY Down 40 bps YoY Up 8.0% YoY $0.81 $877 $0.75 15.2% 14.8% $828 Q2’23 Q2’24 Q2’23 Q2’24 Q2’23 Q2’24 Highlights Highlights Highlights • Approximately 3% contribution from volume, 2% • A
Slide 5: Mobile Solutions Segment Second Quarter FY24 Results
Mobile Solutions Segment Second Quarter FY24 Results Second Quarter Overview Sales • Total Sales YoY: +5% • Strength in Aftermarket partially offset by On-Road and Off- Road declines • Performance by region YoY: • US/CA +8% • EMEA -2% • APAC +3% • LATAM +14% Q2’24 Q2’23 YoY • China Sales YoY: Sales
Slide 6: Delivering Growth and Profitability in Mobile Solutions
Delivering Growth and Profitability in Mobile Solutions Strategic Accounts – Aftermarket Technology & Innovation - OEM Expanding Customer Relationships Winning with PowerCore • Compact air intake filters • Gaining traction in Europe and China PowerCore® Air Intake Filters Effective, Consistent Perfo
Slide 7: Industrial Solutions Segment Second Quarter FY24 Results
Industrial Solutions Segment Second Quarter FY24 Results Second Quarter Overview Sales • Total Sales YoY: +7% • Sales growth driven by market share gains and solid end markets • Performance by region YoY: • US/CA +15% • EMEA -3% Q2’24 Q2’23 YoY • APAC +8% • LATAM -10% Sales $263 $246 +7% • Performan
Slide 8: Life Sciences Segment Second Quarter FY24 Results
Life Sciences Segment Second Quarter FY24 Results Second Quarter Overview Sales • Total Sales YoY: +6% • Sales driven by increased Disk Drive market demand over prior year • Performance by region YoY: • US/CA -38% • EMEA +17% Q2’24 Q2’23 YoY • APAC +20% • LATAM +11% Sales $63 $59 +6% Margins and Key
Slide 9: Balance Sheet and Cash Flow Overview
Balance Sheet and Cash Flow Overview Net Debt and Financial Leverage $600 1.2x $447 $449 Net Debt(1) ($M) Net Debt to Adj. $420 Highlights $400 0.9x EBITDA(1) 0.8x 0.8x $200 0.7x 0.6x • Free cash flow conversion(2) of 67% in Q2’24 • Lower conversion driven by $0 0.3x increased working capital, inclu
Slide 10: Fiscal 2024 Financial Outlook
Fiscal 2024 Financial Outlook Total Company Sales Growth Segment Outlook Total Sales +1% to 5% +3% to 7% Off-Road - Low-double digits On-Road Flat Total Company Gross Margin Aftermarket + Mid-single digits YoY expansion Mobile Solutions Total Sales +3% to 7% Industrial + Mid-single digits Total Comp
Slide 11: Invest with Donaldson
Invest with Donaldson Investing in leading technologies to accelerate growth across 1 several opportunities including sustainability trends Strengthening position across industries with favorable megatrends 2 that provide long-term growth tailwinds Increasing level of investment directed toward high
Slide 12: Appendix
~. fa I \S Donaldson Appendix 12
Slide 13: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ($ in millions, except per share amounts) (Unaudited) 13
Slide 14: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ($ in millions, except per share amounts) (Unaudited) 14