PowerPoint PresentationINVESTOR PRESENTATION
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
Information in this presentation may contain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements can be identified by words such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,”
“predicts,” “projects,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events
or trends and which do not relate solely to historical matters.
All statements regarding our future performance, earnings projections, events or developments are forward-looking statements. These forward-looking
statements are made based on known events and circumstances at the time of release, and as such, are subject in the future to unforeseen uncertainties
and risks that could cause actual results to differ materially from those contained in any forward-looking statement. Such risks and uncertainties are
described under “Risk Factors” in Item 1A of our annual report on Form 10-K and any updates to those factors set forth in our subsequent quarterly reports
on Form 10-Q or current reports on Form 8-K. We make these statements as of the date of this disclosure, and undertake no obligation to update them
unless otherwise required by law.
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1954
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A premier industrial technology company focused on precision dispensing, fluid control and related processes and proprietary technology.
*Sales and EBITDA for the full fiscal year ended 10/31/18.
8% Average
Before Dividends
$907M Share
Repurchases & Dividends
Reliable and Consistent Dividend
5
22%
31%
47%
Nearly 70% of sales outside USA. Direct presence in over
35 countries.
Product Type
consumables.
6
Targeted organic growth rate:
Hot melt dispense solutions for recession- resistant, consumer non-durable end markets.
Additional components for use in the thermoplastic melt stream.
Targeted organic growth rate:
goods and industrial end markets.
Targeted organic growth rate:
7
2-3X Global GDP Growth Driven by:
Medical – Aging population, trends toward non- invasive surgical techniques and medical OEM outsourcing
Broad product use across the electronics supply chain from integrated circuit to printed circuit board to end product assembly
Circuit shrinkage / new architectures / flip chips
New applications including automotive electronics, electric batteries, and flexible circuits
Emerging markets
Product tiering
Advanced Technology Systems Strong topline growth Creating our own demand through innovation, new applications, emerging markets and product tiering, as well as an active acquisition diversification strategy drive strong sales growth.
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Products to melt, filter, pump, transport, dispense and deposit adhesives, polymers and other materials in the manufacturing of a wide range of goods.
1.5-2X Global GDP Growth Driven By:
Increased use of disposable hygiene products (diapers, feminine care, etc.) and packaged convenience foods and plastics; demand increase driven by growing middle class
Recapitalization of large installed base
Productivity and efficiency investments
Material, machinery and process innovations
Emerging markets
Product tiering
27.2%
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Adhesive Dispensing Systems Stable Organic Growth Strong track record of organic growth driven by large percentage of consumer non-durable end markets and growth initiatives, including recapitalization, emerging markets and product tiering.
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Industrial Coatings Systems
What We Do
Precision equipment and systems to apply and cure paints, sealants, coatings, ambient temperature adhesives, and other materials to a wide range of products.
GDP+ Growth Driven By:
Adhesives replacing mechanical fasteners
Product tiering
Diverse end markets, including appliance, lawn and garden, food and beverage, aerospace, automotive assembly, and more
2.3% 2014-18 Average
Annual Sales Growth
Why Invest in Nordson?
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Our Priorities Our plan is to deliver top shareholder returns by growing and extending our high value business model in precision dispensing and adjacent technologies.
1 Accelerate organic growth
2 Diversify through acquisitions
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1 Organic Growth We expect to accelerate organic growth by creating our own demand.
Multiple Paths to Organic Growth:
1. New Products
2. New Applications
5% Average Annual Growth
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2 Key Acquisitions Additional growth comes through the acquisition of companies that share our business model characteristics and can leverage our global infrastructure.
Key Criteria for Acquisitions:
3. Growth Rate at or Above Nordson
4. High % of Recurring Sales
5. Sales and Cost Synergies
Sales Growth from Acquisitions (2014-2018):
4% Average Annual Growth
17
Strong Growth: Organic and Acquisitive On average across the past five years, Nordson has delivered annual sales growth of 8 percent, inclusive of
5 percent organic growth, 4 percent growth related to the first year effects of acquisitions and a decrease of 1 percent related to the unfavorable effects of foreign currency.
Chart1
2014
2014
2014
2014
2015
2015
2015
2015
2016
2016
2016
2016
2017
2017
2017
2017
2018
2018
2018
2018
- 0
294,676
494,813
739,569
8.37%
7.60%
7.70%
7.36%
ROUNDED
8.0%
8.0%
8.0%
7.0%
- 0
- 0
217,808
258,009
3.45%
3.45%
3.53%
3.52%
ROUNDED
3.0%
3.0%
4.0%
4.0%
Adhesives
2013
2018
- 0
72,847
719,085
887,084
4.29%
4.01%
4.02%
4.12%
ROUNDED
4.0%
4.0%
4.0%
4.0%
- 0
367,524
1,431,706
1,884,661
5.65%
5.28%
5.30%
5.26%
ROUNDED
6.0%
5.0%
5.0%
5.0%
516,266
561,784
593,858
676,329
897,623
1,034,245
14.9%
7.7%
1.2%
10.5%
14.8%
4.2%
233,167
242,541
258,742
253,092
253,340
258,009
2.0%
5.1%
11.2%
-0.9%
0.8%
1.5%
793,488
899,696
836,066
879,573
916,019
959,931
3.9%
4.2%
1.7%
6.2%
4.4%
3.6%
2013
0.4%
2014
6.2%
2015
3.4%
2016
6.5%
2017
7.9%
1,542,921
1,704,021
1,688,666
1,808,994
2,066,982
2,252,185
7.9%
1,431,706
1,584,737
1,672,145
1,816,159
2,081,179
2,252,185
5.6%
2.9%
6.6%
7.8%
3.6%
Farrell, Diane: excludes pre-acq sales for Kry/Bkg, EDI, and Xaloy
Farrell, Diane: from BPC - use USDWEB fx per Barb
Farrell, Diane: back out entire pre-acq sales for 5-yr period
Line Charts
2011
2012
2013
2014
2015
2016
2017
Waterfall (%'s)
In the table, edit the Label, Pillar, and Delta values.
Place an "x" in the Pillar column to show a value as a
full column. Except for the start value, the Delta value for
a pillar should be zero.
To edit or format different parts of this chart, select
the Chart and go to Layout > Current Selection and
choose the series you want to edit from the drop-down
list, then click on Format Selection.
See the Help worksheet for additional Help.
Label
Pillar
Delta
Flow
Pillars
Base+
Base-
Delta+
Delta-
Invisible
Lines
Average
X
4.5%
0.04
0.04
- 0
- 0
- 0
- 0
- 0
0.04
FY2011
7.0%
0.12
- 0
0.12
- 0
0.07
- 0
0.12
0.12
FY2012
-9.5%
0.02
- 0
- 0
0.02
- 0
0.10
0.12
0.02
FY2013
-3.2%
(0.01)
- 0
- 0
(0.01)
- 0
0.03
0.02
(0.01)
FY2014
7.4%
0.06
- 0
0.06
- 0
0.07
- 0
0.06
0.06
FY2015
-4.2%
0.02
- 0
- 0
0.02
- 0
0.04
0.06
0.02
FY2016
4.2%
0.06
- 0
0.06
- 0
0.04
- 0
0.06
0.06
FY2017
-1.9%
0.04
- 0
- 0
0.04
- 0
0.02
0.06
0.04
Average
X
0.0%
0.04
0.04
- 0
- 0
- 0
- 0
- 0
- 0
← Insert new rows ABOVE this one, then copy formulas down.
2011
2012
2013
2014
2015
2016
2017
&L&"Arial,Regular"&8&K01+049https://www.vertex42.com/ExcelTemplates/waterfall-chart.html&R&"Arial,Regular"&8&K01+049Waterfall Chart Template by Vertex42.com
Pillars: Place a letter "x" in this column to display the Flow value as a full-length bar or column. Except for the Start column, the Delta for a pillar should be zero (0).
Delta: Enter the positive and negative adjustments in this column, or zero (0) for a pillar.
Flow: This column is labled "Flow" because in many waterfall charts, this would represent "Cash Flow."
PR Tables - RTR
In the table, edit the Label, Pillar, and Delta values.
Place an "x" in the Pillar column to show a value as a
full column. Except for the start value, the Delta value for
a pillar should be zero.
To edit or format different parts of this chart, select
the Chart and go to Layout > Current Selection and
choose the series you want to edit from the drop-down
list, then click on Format Selection.
See the Help worksheet for additional Help.
Label
Pillar
Delta
Flow
Pillars
Base+
Base-
Delta+
Delta-
Invisible
Lines
FY2011
X
- 0
- 0
- 0
- 0
- 0
- 0
- 0
- 0
- 0
FY2012
- 0
- 0
- 0
- 0
- 0
- 0
- 0
- 0
- 0
FY2013
- 0
- 0
- 0
- 0
- 0
- 0
- 0
- 0
- 0
FY2014
38,217
- 0
- 0
- 0
- 0
38,217
- 0
- 0
- 0
FY2015
15,015
- 0
- 0
- 0
- 0
15,015
- 0
- 0
- 0
FY2016
100,962
- 0
- 0
- 0
- 0
100,962
- 0
- 0
- 0
FY2017
X
127,422
- 0
- 0
- 0
- 0
- 0
- 0
- 0
- 0
← Insert new rows ABOVE this one, then copy formulas down.
2011
2012
2013
2014
2015
2016
2017
&L&"Arial,Regular"&8&K01+049https://www.vertex42.com/ExcelTemplates/waterfall-chart.html&R&"Arial,Regular"&8&K01+049Waterfall Chart Template by Vertex42.com
Pillars: Place a letter "x" in this column to display the Flow value as a full-length bar or column. Except for the Start column, the Delta for a pillar should be zero (0).
Delta: Enter the positive and negative adjustments in this column, or zero (0) for a pillar.
Flow: This column is labled "Flow" because in many waterfall charts, this would represent "Cash Flow."
Total Rev Growth
2014
2015
2016
2017
2014
2015
2016
2017
Bar Charts
EBITDA Margin
Gross Margins
Reported Revenue Growth
2014
2015
2016
2017
2018
55.5
54.1
54.9
55.1
54.8
Step 1:
Put all numbers in as POSITIVE
The green cells are calculated so don't change these!
Step 2:
Start & Finish
Step 4:
Add color to shout out by selecting one line and changing just it's color
Step 5:
Hidden bars
Key Performance Indicators:
1. Growth Initiatives
2. Price Effectiveness
5. Customer Delivery Performance
7. Productivity
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4 Culture & Values We have a long and proud history of investing in the communities where we live and work. We invest approximately five percent of domestic pretax earnings to human welfare services, education and other charitable activities.
Our Commitment to Giving Back:
1. Over $100M in overall giving to date
2. Nearly 100K total hours volunteered
3. $2.4M towards BUILDS scholarships
4. Investing in locations where we have significant operations (over 20 communities in the United States and 11 countries)
Financial Results
Fiscal 2Q2019 Results & FY2019 Guidance 1Q19 Results
2019 Guidance
Organic sales volume growth expected to be in the low single digits compared to Fiscal 2018
Operating margin and EBITDA margin forecasted to improve 100 basis points
Interest expense expected to be appx. $45 million
Maintenance capital expenditures expected to be appx. $50 million
Estimated effective tax rate 23 percent
Operating Profit (23% of Sales)
$129M
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Total Shareholder Return Above Our Peers Comparison of 10 Year Cumulative Total Return
$0.00
$100.00
$200.00
$300.00
$400.00
$500.00
$600.00
$700.00
$800.00
$900.00
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Nordson Corporation S&P 500 Index S&P MidCap 400 S&P 500 Ind. Machinery S&P MidCap 400 Ind. Machinery Peer Group
Assumes Initial Investment of $100 on November 1, 2008 Fiscal Year Ending October 31, 2018
Source: Zack’s Investment Research
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55.5% 54.1% 54.9% 55.1% 54.8%
0%
10%
20%
30%
40%
50%
60%
70%
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5 Year CAGR = 9.8%
$0 00
*
EPS Growth High gross margins lead to significant volume leverage
*FY15 results impacted by significant negative currency translation effects compared to the prior year.
$3.84 $3.45
$4.73 $5.08
5 Year CAGR = 13.4%
$-
$0 00
Free cash flow before dividends Net income
Strong Cash Conversion: 2014 – 2018 2018 Free Cash Flow Before Dividends
= 110% of Net Income
PP&E / Capital Leases Acquisitions Dividends Share Repurchases Working Capital
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Disciplined Capital Deployment 36% or $906.7 Million to Shareholders via Share Repurchases and Dividends
Self funding business model generates excess cash
Low working capital requirements
dividend increases - 14th
3. Leading Global Businesses
4. Numerous Growth Opportunities
6. Committed to Community
Strong Capital Management Net Debt to EBITDA*
At fiscal years ending 10/31 * Net Debt to EBITDA calculated net of cash
0.00
0.50
1.00
1.50
2.00
2.50
3.00
2014 2015 2016 2017 2018
Strong cash generation lets Nordson de-lever quickly. At 10/31/2018 Net Debt to TTM EBITDA = 2.0 times
Acquisitions & Share
Amortizing avg rate: 3.03%
Ends April 2024
Amortizing avg. rate: 3.04%
Amortizing avg. rate: 3.90%
Amortizing avg rate: 2.45%
[€ 100]
EUR denominated
Loan
2012 Private Placement
2015 Private Placement
2018 Private Placement
Chart1
NYL
NYL
NYL
53
R & D Spend U.S. Patents Granted
Currency Impact Annual Sales Growth and EPS
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-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
Currency Effect Volume Growth
Financial Exhibits
INVESTOR PRESENTATION
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
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