Breakfast Introduction Nordson Overview: Ed Campbell

Transcription

1 Today s Agenda Breakfast Introduction Nordson Overview: Ed Campbell BUSINESS SEGMENTS: Adhesive Dispensing Systems: John Keane Q&A Industrial Coating & Automotive: Doug Bloomfield Q&A Break Advanced Technology Systems: Andy Dunn Q&A Financial Update: Greg Thaxton Ed Campbell Wrap-up Q&A 1

2 $1 Billion and Growing: A Company Positioned for Success Edward P. Campbell Chairman, President & CEO New York, NY - September 12, 2008 : NDSN

3 Safe Harbor Statement SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 Information in this presentation may contain forward-looking statements, as defined by this Reform Act. These statements are identified by words or phrases such as are expected to, will likely result, is anticipated, estimates, will continue, outlook, project, or similar expressions. These forward looking statements are based on current expectations and involve risks and uncertainties. Consequently, Nordson Corporation s actual results could differ materially from the expectations expressed in the forward-looking statements. Factors that could cause the Company s actual results to differ materially from the expected results include, but are not limited to: fluctuations in currency exchange rates; a sales mix different from assumptions; deferral of orders; customerrequested delays in system installations; and unanticipated delays. CONTINUING OPERATIONS All numbers for years prior to FY 2006 in this presentation include results from continuing operations unless otherwise noted. 3

4 Nordson Management Team: John Keane Senior VP, Adhesive Dispensing Systems Nordson Experience: 16 years Key Past Positions: VP, Industrial Coatings & Automotive Engineering Manager Project Engineer Education: B.S. MIT, Mechanical Engineering Harvard Advanced Management Program 4

5 Nordson Management Team: Doug Bloomfield VP, Industrial Coating & Automotive Nordson Experience: 21 years Key Past Positions: VP, Automotive Systems Group Manager, Body Shop Business Market Manager, Automotive Education: B.S. - Bowling Green State University, Business Administration MBA - Case Western Reserve University 5

6 Nordson Management Team: Andy Dunn Senior VP, Advanced Technology Systems Nordson Experience: 37 years Leads Corporate Development Key Past Positions: Vice President, Automotive Group Manager, Automotive Group Manager, Nonwovens Group Sales & Engineering Manager, Europe Education: B.S., University of Cincinnati, Business Administration 6

7 Nordson Management Team: Greg Thaxton VP, Chief Financial Officer Nordson Experience: 19 years Key Past Positions: Corporate Controller Chief Accounting Officer Group Controller Pacific South Division Controller Education: B.S. - Miami (OH) University MBA - Baldwin Wallace College CPA 7

8 Nordson Management Team: Peter Lambert VP, Advanced Technology Systems Nordson Experience: 15 years Key Past Positions: VP, Packaging & Product Assembly Director, Corporate Development & IS Managing Director, Australia Product Development Manager Education: B.S. - Dartmouth College, Engineering M.S. - Air Force Institute of Technology, Aeronautical Engineering MBA - Case Western Reserve University 8

9 Nordson Management Team: Greg Merk VP, Pacific South Division Nordson Experience: 14 years Key Past Positions: Regional Manager, Latin America General Manager, Nordson do Brasil Product Specialist, Nordson Japan Education: B.S., State University of New York, Finance 9

10 The Leader in Precision Technology Solutions FY 2008 Sales est.: Over $1.1B Employees: 4,100+ Direct Operations: 34 countries Customers: 25,000+ Current Patents Worldwide: 1,052 Dozens of Markets Headquartered in Cleveland, OH 10

11 History U.S. Automatic Co. founded 1908 Walter Nord and sons Eric and Evan Nord founded Nordson in 1954 as subsidiary of U.S. Automatic Initial product is airless spray equipment. By 1960s, company develops thermoplastic adhesives application equipment International Expansion Europe 1966 Latin America 1968 Asia Pacific 1969 Company continues to grow through globalization and acquisition to present day 11

12 Nordson Technologies - Focused on Precision Solutions - Material Dispensing Surface Treatment & Preparation Testing & Inspecting Application Coating Delivery Finishing Unloading Cleaning Curing Activation Modification Detection Verification Physical Optical X-Ray Vast Range of Applications 12

13 Nordson: Part of Everyday Living Labeling Packaging Shelving Windows Contact Lenses Molding Medical Devices Dental Equipment Liquid Crystal Displays Electronics Mobile Phones Containers Hygiene Products Furniture Painting Furniture Assembly Paper Bags Carpeting 13

14 Diversified Customer Portfolio No customer accounts for more than 5% of sales 14

15 Investment Thesis Precision technologies with near universal application Market leader in nearly all businesses Diverse end markets: Consumer Non-Durables stability with Technology s rapid growth Excellent margins and free cash flow Unusually global; very strong presence in growing Asian markets Direct field sales and service organization Technology leader; continuous stream of new products Operating and capital efficiency via Lean +14% growth rate over 50 years Dividend increases for 45 consecutive years Experienced management team Socially committed and responsible 15

16 Markets Served - FY2008 Estimate Semiconductors 11% Circuit Board Assembly 6% Electronic Components 5% Medical Products 3% Automotive 4% Industrial 6% Consumer Non-Durables 45% Food Products Diapers Paper Goods Etc. Consumer Durables 20% Appliances Furniture Doors/Windows Etc. 16

17 Recognized Leader Across Industries Intel SCQI Award*** PMT Packaging Line of the Year Supplier*** Circuits Assembly Service Excellence Award*** Global SMT & Packaging Technology Award *** SMT China Vision Award*** Oscar de l Emballage Award Innovation Award International Converting Exposition Industry Week Best Plant 2007 (finalist) Electronics Manufacturing Asia Innovation Award Advanced Packaging Award Surface Treatment Semiconductor International Editor s Choice Award ***Note: recognized multiple years 17

18 Innovation 2000 to 2007 Average # of U.S. Patents Granted Per Year 46 Approximately 1 patent every week Average # of Foreign Patents Granted Per Year 122 Approximately 1 patent every three days 18

19 Sales Distribution Nine Months 2008 INDUSTRY SEGMENT Advanced Technology 33% Adhesive Dispensing 52% Industrial Coating & Automotive 15% PRODUCT TYPE GEOGRAPHIC DISTRIBUTION Parts 37% Engineered Systems 19% Standard Product 44% 19 United States 28% Asia Pacific 17% Americas 7% Japan 9% Europe 39%

20 Adhesive Dispensing Systems 52% of total sales Last Twelve Months: Sales $577m Operating Margin 25% Applications Carton closing Case sealing Diaper assembly Window assembly Edge banding Envelope construction Furniture assembly Labeling End markets Food and beverage packaging Disposable nonwoven products Wood products & architectural windows Paper converting General industrial assembly Drivers of growth Income growth in Asia, Latin America, East Europe Increased use of disposable products globally Increased use of processed foods Productivity investments Material, machinery and process innovations 20

21 Advanced Technology Systems 33% of total sales Last Twelve Months: Sales $359m Operating Margin 16% Applications: Flip chip underfill Semiconductor packaging Flat panel displays Printed circuit board assembly Disk drive assembly Semiconductor surface preparation Medical device assembly UV ink curing Bond testers and x-ray inspection Automated optical inspection (AOI) Two component dispensing End markets: Semiconductors Electronic assembly systems Life sciences General industrial assembly Graphic arts Drivers of growth: Faster processors and memory chips Circuit shrinkage in cell phones, PDA s, etc. Emerging consumers for products in BRIC countries Growth in medical device market driven by aging population Regulations eliminating lead solder Growth in convenience packaging of 2-K materials 21

22 Industrial Coating & Automotive Systems 15% of total sales Last Twelve Months: Sales $182m Operating margin 7% End markets: Appliance Office furniture Outdoor products Automobile assembly Food & beverage containers Disposable batteries Applications: Powder finishing Liquid finishing Metal container inside coating Battery inside coating Control systems Automobile sealing & bonding Drivers of growth: Environmental advantages of powder coatings Productivity investments Lean manufacturing Growth in China 22