CFA Society of MinnesotaInvestMNt Conference

Tod Carpenter, President & CEO

Safe Harbor Statement

This presentation includes forward-looking statements which reflect the Company’s current views with respect to future events and financial performance, but involve uncertainties that could significantly impact results.

Donaldson Company

• Technology leader in our markets

• Diversified portfolio of global businesses

We are a filtration company

Why Customers Want Our Technology

• Technology Advantages•Higher efficiency

•Small system size

•Longer filter life

•Reduced operating and maintenance costs

• Better Aftermarket Retention

Diversified Product Assortment: Engine

Air Filters

Liquid Filters

Exhaust & Emission Products

Diversified Product Assortment: Industrial

Industrial Filtration Systems Gas turbine filters

Special Applications

FY 2014 Sales Composition

Aftermarket64%

Off-Road22%

On-Road8%

Aero & Defense

6%

Engine

IndustrialFiltration

62%

SpecialApplications

20%

GasTurbine

18%

Industrial

$1.6 billion $900 million

Donaldson Core

Future Growth Plans

Geography

ExpandCore

Acquisitions

Donaldson Core

• $5 billion by FY21

• Through further diversificationExpand core products & technologies

Expand geographies

Execute acquisitions

Sales Growth Model

CreateHoles

Sell Replacements

Re-Invest

Growth

Use Innovative Technology

Innovative First-Fit Improves Aftermarket Retention

0%

20%

40%

60%

80%

100%

Yr 0 Yr 2 Yr 5 Yr 8 Yr 10 Yr 15

Legacy Innovative

PowerCore® Filtration Technology

PowerCore® Filtration Technology

•More than 20 million units sold•90% win rate•G2 is another 1/3 smaller

Fuel Filtration with Synteq® XP

•Designed for the new diesel fuels•Higher efficiency for improved engine protection•Can extend filter life•13 new OEM programs won

Sales and Earnings Growth Over Time

8%

14%

Sales Earnings

25-Year CAGR

Current Environment

Recent challenges• Challenging end markets

• Soft global GDP growth is limiting capital investment

• Significant currency headwinds

Tactics to address challenges• Strategic Growth Plans

• Continued investment in our business

•Bolt-On Acquisitions•Northern Technical•iFil•Partmo*

•Technology•$10 million R&D lab upgrade•Global ERP

•Capacity•Production facility in Poland•Additional distribution in Peru, Slovakia, Columbia

Investing for Growth

* Expected to close in second quarter of fiscal 2016 following standard regulatory approval

High After-Tax Return on Investment

15%

0%

10%

20%

30%

1990 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14

Consistent Dividend Growth

0.02

0.58

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

1990 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14

Per Share

Consistent Share Repurchases

231

140

0

50

100

150

200

250

1990 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14

Shares Outstandingin Millions

Investment Conclusion

•Diversified product lines

•Deeply integrated into global economy

•Committed to growth & financial performance

•Disciplined capital deployment

A Measure of Success:Return to Shareholders

$6,203

$100$2,055

FY89 FY91 FY93 FY95 FY97 FY99 FY01 FY03 FY05 FY07 FY09 FY11 FY13 FY15

DCI S&P 400