Nordson : Second Quarter 2024 Results Presentation

Investor Presentation

May 21, 2024

Nasdaq: NDSN

NBS NEXT

OWNER MINDSET

WINNING TEAMS

Safe Harbor Statement

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 terminology such as "such as "anticipates," "supports," "plans," "projects," "expects," "believes," "should," "would," "could," "hope," "forecast," "management is of the opinion," use of the future tense and similar words or phrases.. These statements reflect management's current expectations and involve a number of risks and uncertainties. These risks and uncertainties include, but are not limited to, U.S. and international economic conditions; financial and market conditions; currency exchange rates and devaluations; possible acquisitions, including the Company's ability to successfully integrate acquisitions; the Company's ability to successfully divest or dispose of businesses that are deemed not to fit with its strategic plan; the effects of changes in U.S. trade policy and trade agreements; the effects of changes in tax law; and the possible effects of events beyond our control, such as political unrest, including the conflicts in Europe and the Middle East, acts of terror, natural disasters, pandemics and the other factors discussed in Item 1A (Risk Factors) in the Company's most recently filed Annual Report on Form 10-K and in its Forms 10-Q filed with the Securities and Exchange Commission, which should be reviewed carefully. The Company undertakes no obligation to update or revise any forward-looking statement in this press release.

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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	$819M	7,900		35+

3

*Sales and EBITDA for the full fiscal year ended 10/31/23.

By the Numbers

Consistent Record	Demonstrated	Disciplined focus	Solid Returns	Differentiated
Value to
of Growth	on profitability	Product Portfolio*
Customers

3%	55%	29%	15%	2,100+
Sales Growth	Gross Margins	EBITDA Margins	ROIC	Global Patents
				Held

4

Consistent value to

shareholders

60 yrs.

of Annual

Dividend

Increases

Note: Financial amounts presented are averages of 2019 - 2023, except ROIC, which is 2023, and dividends which updated August 2023

*Active Patents as of 10/31/23

Commitment to ESG

Diversified Board of Directors	Strong Culture and Values

Environmental Stewardship

• 4% diverse board (2 gender and 2 racially or ethnically diverse)
• 8 out of 9 independent directors
• 6 years average tenure

• Nordson Impact - Invest 5% of domestic pretax earnings in communities
• Paid time off for volunteer hours
• Employee support programs

• Product design improvements focused on reducing customers' material utilization
• Journey to Zero adverse impacts to employees and community

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Diversified Sources of Sales

FY2023 Profile - $2.6 Billion

Product Type

			Parts and
47%	53%		Consumables
	Systems

High percentage of recurring

sales from parts and

consumables.

Geographies

30%

44%		Americas
	Europe

Asia Pacific

26%

Diversified geographic footprint.

Direct presence in over

35 countries.

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Diversified End Markets

	Consumer Non-Durables			Remaining Markets
Electronics	Medical	Industrial
27% of revenue	23% of revenue	22% of revenue	15% of revenue	13% of revenue

	Semiconductor packaging		Box sealing
	Wafer-level packaging		Baby diapers
	Printed circuit boards		Convenience food packaging
	Electronic component		Beverage straw and spot
	assembly - mobile phone,		attachment
	camera, ear buds, PC		Container and bottle labeling

• Automotive electronics

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• Balloons, extrusions, delivery catheters and other minimally invasive devices
• Single-usefittings, connectors, fluid transfer components in medical equipment and surgical procedures
• Single-usespecialty cannula for cardio-pulmonary procedures

• Construction and industrial machinery
• Rigid container
• Aerospace
• Chemical
• Defense
• Energy

• Consumer durable
• Automotive
• Animal health & delivery systems

Note: Approximate fiscal 2023 revenue mix for directional use only.

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
53%			25%		22%
REVENUE		REVENUE		REVENUE

8	*Segment average mix for the full fiscal year ended 10/31/23

Industrial

Precision

Solutions

2023 Revenues

$1,391M

20232023

Operating EBITDA Margin*

34% 36%

What We Do

Product lines reduce material consumption, increase line efficiency, and enhance product brand and appearance. Components are used for dispensing adhesives, coatings, paint, finishes, sealants and other materials. This business primarily serves the industrial, consumer durables and non-durables markets.

Long-Term Growth Driven By:

• Material, machinery and process innovations
• Emerging markets and product tiering
• New applications, including electric vehicle battery, automotive electronics, and fabric bonding
• Recapitalization of large installed base
• Deploying NBS Next in our divisions

9 *Adjusted operating profit - see reconciliation in appendix

Medical

Fluid

Solutions

2023 Revenues

$660M

20232023

Operating EBITDA Margin*

29% 37%

What We Do

Fluid management solutions for medical, high- tech industrial and other diverse end markets. Related plastic tubing, balloons, catheters, syringes, cartridges, tips, and fluid connection components are used to dispense or control fluids within customers' medical devices or products, as well as production processes.

Long-Term Growth Driven By:

• Aging population
• Trends toward non-invasive surgical techniques
• Medical OEM outsourcing
• Emerging markets
• Deploying NBS Next in our divisions

10 *Adjusted operating profit - see reconciliation in appendix