Nordson Corporation · NASDAQ:NDSN
Nordson — Investor Presentation (October 2024)
40 slides from Nordson's investor presentation, Oct 3, 2024
Slide 1: Investor Presentation
Investor Presentation October 3, 2024 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 a growth compounder with unique competitive advantages
Nordson is a growth compounder with unique competitive advantages Company Founded 2024 TTM Revenue 2024 TTM EBITDA% Employees Countries with Direct Presence 1954 $2.6B 31% 8,600 35+ 3 * 2024 is NDSN Q3 TTM as reported
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 3% 55% 29% 15% 2,500+ 61 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 ▪ 50% 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 FY2023 Profile - $2.6 Billion Product Type Geographies 30% Parts and Americas 47% Consumables 44% Europe 53% Systems Asia Pacific 26% 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 27% of revenue 23% of revenue 22% of revenue 15% of revenue 13% of revenue ▪ Semiconductor packaging ▪ Box sealing ▪ Balloons, extrusions, delivery ▪ Construction and industrial ▪ Consumer durable catheter
Slide 8: How We Are Organized
How We Are Organized INDUSTRIAL PRECISION SOLUTIONS MEDICAL FLUID SOLUTIONS ADVANCED TECHNOLOGY SOLUTIONS Adhesives, Industrial Coatings, Interventional Solutions, Fluid Components Electronic Processing Systems Measurement and Control Solutions & Polymer Processing Systems & Engineered Fluid Dispens
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 Long-T
Slide 12: Why Invest in Nordson?
Ghorison 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 $3B+ 30% Long-term 2025 financial targets 13
Slide 14: Ascend Strategy Delivers
Ascend Strategy Delivers Revenue ($) Ascend 2025 = $3B EBITDA ($) Ascend 2025 = 30% $1,000 $3.0 $900 31% 31% 31% $2.8 30% $800 $2.6 $2.4 $700 Millions 27% Billions $2.2 27% $600 $2.0 $500 $1.8 $1.6 $400 $1.4 $300 $1.2 $1.0 $200 2019 2020 2021 2022 2023 2024* 2019 2020 2021 2022 2023 2024 Tracking to
Slide 15: A Growth Portfolio Ready to Accelerate
A Growth Portfolio Ready to Accelerate 2014 (FY Revenue $1.7B) 2024 (TTM Revenue $2.7B) 39% Systems 44% Systems Parts / Service 56% 61% Parts / Service Growth Growth 29% End Markets 49% End Markets 14% 24% 23% 27% Electronics Electronics 15% 6% Medical Medical 5% Nondurables Nondurables 22% 42% Indu
Slide 16: 2025-2029 Financial Targets
2025-2029 Financial Targets Growth Compounder Revenue Adjusted EPS Growth Growth 6-8% 10-12% Average annual growth Engaged Employees Driven by Nordson Values 16
Slide 17: Driving profitable growth by investing in best growth opportunities
Driving profitable growth by selecting and investing disproportionately in the 17 best growth opportunities
Slide 18: Entrepreneurial division-led organization
Entrepreneurial division-led organization: ▪ Decisions close to the customer ▪ Autonomy + Accountability ▪ Clear line of sight to deploying NBS Next 18
Slide 19: 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 19
Slide 20: Disciplined Approach to M&A
Disciplined Approach to M&A ▪ Strategic Criteria Financial Criteria ▪ Growth at or above market rates with Nordson- ▪ Serving attractive end market niches and like gross margins applications ▪ EBITDA ~20+% with margin expansion ▪ Differentiated product technologies/solutions opportunities ▪ Additive
Slide 21: M&A Strategy
M&A Strategy Programmatic capital deployment creating significant value Estimated Contribution of Acquisitions Selected Portfolio to Enterprise Value Enhancements $7B ▪ Expanded test and measurement technologies ▪ Entered precision agriculture platform ▪ Created scaled medical platform $0B 2010 Acqu
Slide 22: Growth Algorithm
Growth Algorithm Revenue Adjusted EPS 3% - 4% 4% 6%-8% $2.7B 3% - 4% 10%-12% $9.67 6% - 8% 22 *Figures based on TTM Q3 fiscal 2024
Slide 23: Superior Conversion / Deployment of Cash Flows
Superior Conversion / Deployment of Cash Flows Generation of ~ $4.1B in operating cash flows through 2029 Capital Deployment through 2029 Cash Flow Deployment Priorities ▪ Fund organic growth 7% ▪ Return to shareholders thru dividends and Organic Capital routine stock repurchases to offset dilution
Slide 24: Recent Financial Results
CNordson Recent Financial Results
Slide 25: Total Company – 3Q 2024
Total Company – 3Q 2024 Sales 3Q 2024 Sales Bridge** ▪ Reported sales increased 2%, inclusive of 1% organic decline; 4% acquisitive growth ▪ Strong growth in industrial product lines, offset by softness in electronics, primarily semiconductor, and medical product lines ▪ Organic sales increase in As
Slide 26: 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 on hand totaled $165 million ▪ Strong free cash flow of $143 million ▪ Net debt of $1.3 billion ▪ Year-to-date free cash flow of $416 million; cash conversion rate
Slide 27: Full-Year Fiscal 2024 Guidance
Full-Year Fiscal 2024 Guidance Full-Year Sales Guidance $2,665 - $2,705 Full-year guidance as of 8/21/2024 $2,590 $2,629 ▪ Mid-point of sales increases $30 million, reflecting addition of Atrion ▪ Full-year adjusted EPS guidance unchanged, inclusive of Atrion acquisition, which is expected to be sli
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: CyberOptics expands market opportunities
CyberOptics expands market opportunities Nordson T&I Division CyberOptics Optical Sensors & Systems 3D Optical semi market expected to grow ~15%+, 31 exceeding the broader ‘Wafer Fab Equipment’ market LSD ’23 – ’25 growth
Slide 32: Advances in Semiconductor Packaging
Advances in Semiconductor Packaging 2D Architecture 2.5D Architecture 3D Architecture Demand for data requires more complex chip architecture. ds ’s h sp y k y . 32
Slide 33: Medical and Fluid Solutions
Medical and Fluid Solutions Fluid Solutions Interventional Solutions Fluid Components Precision Low-Volume Dispensing Medical balloons, catheters, cannulas Single-use components From benchtop dispensers to industry-best From specialty tubing, catheters, medical Proprietary single-use plastic jetting
Slide 34: 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 35: Appendix 2: Financial Exhibits
Appendix 2: Financial Exhibits
Slide 36: 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: ▪ EBITDA is
Slide 37: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Net Income to Adjusted EBITDA (Dollars in thousands) 37
Slide 38: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Adjusted Operating Profit and EBITDA (Dollars in thousands) 38
Slide 39: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Profitability (Dollars in thousands) 39
Slide 40: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP measures Click to edit title Operating Cash Flow to Free Cash Flow 40