Nordson : Fourth Quarter and Fiscal Year 2019 Results Presentation

INVESTOR

PRESENTATION

January 15, 2020 | NASDAQ: NDSN

Nordson MEDICAL Products (see detail on page two)

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.

	ON THE COVER: Nordson MEDICAL products: Top left - High-pressure urethane balloons for use in dilation, stent delivery, and occlusion procedures; Top right - Nitinol components can be braided and formed in
2	virtually any shape for the urology, neurology, or vascular markets; Bottom left - Fluid management components find their way into virtually every medical space where quality and safety are paramount
requirements for life saving fluid management; Bottom right - Biomaterial delivery devices make the transfer of valuable autologous and synthetic biomaterials safe, efficient and effective for surgeons and clinicians

the world over.

A premier industrial technology company focused on precision dispensing,

fluid control and related processes and proprietary technology.

1954 $2.2B $587M 7,500+ 35+

Company Founded	*Sales	*EBITDA	Employees	Countries with
				Direct Presence

3

*Sales and EBITDA for the full fiscal year ended 10/31/19.

Investment Highlights

Strong Average

Annual Sales

Growth

5%

Average

2015-2019

		High Level of			Outstanding
	Excellent	Free Cash Flow	Strong Cash	Reliable and	Long Term Total
Outstanding	EBITDA	Before	Returns to	Consistent	Shareholder
Gross Margins	Margins	Dividends	Shareholders	Dividend	Returns

55%	26%	$1.2B	$895M	56 yrs	21%
Gross Margins	EBITDA	100% of	Share	of Annual	TSR CAGR
Average	Margin	Net Income	Repurchases &	Increases	2009-2019
		Dividends
2015-2019	Average		24% payout ratio
	2015-2019
	2015-2019		in 2019
		2015-2019

4

Diversified Sources of Sales

FY2019 Profile - $2.2 Billion

Product Type	Geographies

					7%
23%					6%
		Parts and				United States
			Consumables		35%		Europe
			Standard Product	26%
	54%				Asia Pacific
						Japan
23%			Engineered
					Americas
		Systems
				26%

High percentage of recurring	Nearly 70% of sales outside USA.
sales from parts and	Direct presence in over
consumables.	35 countries.

5

Diversified End Markets

FY2019 Profile - $2.2 Billion

4%

6%

23%

12%

16%

	22%
17%
Electronics	Consumer Non-Durable
Medical	OEM
Industrial	Automotive
Consumer Durable

6

End markets include:

• Electronic Components: semiconductors, printed circuit boards, computing, communications/mobile, consumer electronics (i.e., gaming, wearables, automotive electronics)
• Consumer Non-Durable: beverage, disposable hygiene, food, paper, textiles, packaging
• Medical: minimally invasive interventional delivery devices, catheters, medical balloons, fluid connection components, specialty tubing
• Original Equipment Manufacturer (OEM)/Distributors: Nordson products used to build manufacturing line, not end market specific
• Industrial: aerospace, chemical, construction, energy, farm and construction machinery, industrial machinery, rigid container, metal, transportation
• Consumer Durable: appliance, furniture, lighting
• Automotive: applications for new vehicle platforms

*Percentages are for directional use only; may not add to 100% due to rounding.

Nordson Business Segments

ADVANCED TECHNOLOGY SYSTEMS*	ADHESIVE DISPENSING SYSTEMS*	INDUSTRIAL COATINGS SYSTEMS*
45%	43%	12%

Precision dispense, fluid management,	Hot melt dispense solutions for recession-	Standard and highly-engineered systems used
surface treatment, test & inspection and	resistant, consumer non-durable end markets.	primarily for applying coatings, paint, finishes,
proprietary solutions for electronics, medical	Additional components for use in the	sealants, and more, for the consumer durable
and general industrial end markets.	thermoplastic melt stream.	goods and industrial end markets.
Targeted organic growth rate:	Targeted organic growth rate:	Targeted organic growth rate:
2-3x Global GDP	1.5-2x Global GDP	Global GDP+
7

*Segment mix for the full fiscal year ended 10/31/19

Advanced

Technology

Systems

Organic 5.2%

Acquisitive 8.3%

Currency (0.9%)

2015-19 Average

Annual Sales Growth

20.9%

2019 Annual

Operating Margin

What We Do

Precision dispense, fluid management, test, inspection, surface treatment and proprietary solutions for medical, electronics and general industrial markets.

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

8

Advanced Technology

FY2019 Profile - Diverse End Markets

1% 1%

4%

5%

6%

37%

7%

15%

24%
	Medical	Electronic Components
	Semiconductors	OEM
	Printed Circuit Boards	Industrial
	Automotive	Consumer Non-Durable
	Consumer Durable

9

End markets include:

• Medical: minimally invasive interventional delivery devices, catheters, medical balloons, fluid connection components, specialty tubing
• Electronics: electronic components (i.e., computing; communications/mobile; consumer electronics - gaming, wearables; automotive electronics), semiconductors, printed circuit boards
• OEM/Distributor: Nordson products used to build manufacturing line, not end market specific
• Industrial: aerospace, construction, defense, energy, industrial machinery
• Consumer Durable: general applications (i.e., furniture, lighting)
• Consumer Non-Durable: disposable hygiene, food, textiles

*Percentages are for directional use only

Adhesive

Dispensing

Systems

Organic 3.3%

Acquisitive 0.2%

Currency (2.3%)

2015-19 Average

Annual Sales Growth

28.9%

2019 Annual

Operating Margin

10

What We Do

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
• New applications, including electric battery and fabric bonding
• Material, machinery and process innovations
• Emerging markets

▪ Product tiering

Adhesive Dispensing

FY2019 Profile - Diverse end markets

4%

5%

8%

30%

4%

49%

End markets include:

• Consumer Non-Durable:beverage, disposable hygiene, food, paper, textiles, non-wovens,packaging
• OEM/Distributor: Nordson products used to build manufacturing line, not end market specific
• Industrial: aerospace, chemical, construction, defense, energy, farm and construction machinery, industrial machinery, rigid container, metal, transportation
• Consumer Durable: appliance, furniture, lighting
• Automotive: applications for new vehicle platforms
• Electronics: electronic products (i.e., wearables), printed circuit boards

Consumer Non-Durable	OEM
Industrial	Consumer Durable
Electronics	Automotive

11

*Percentages are for directional use only

Industrial

Coatings

Systems

Organic 2.9%

Acquisitive 0.0%

Currency (1.6%)

2015-19 Average

Annual Sales Growth

20.9%

2019 Annual

Operating Margin

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:

• Environmental advantages of powder coatings
• Adhesives replacing mechanical fasteners
• Light-weightingof vehicles
• Productivity investments
• Quick color change
• Product tiering
• Diverse end markets, including appliance, lawn and garden, food and beverage, aerospace, automotive assembly, and more

12

Industrial Coatings

FY2019 Profile - Diverse end markets

1%

8%

10%

10%

53%

19%

		Industrial	Automotive
		Consumer Non-Durable	Consumer Durable
13		Electronics	OEM

End markets include:

• Industrial: aerospace, chemical, construction, defense, energy, farm and construction machinery, industrial machinery, rigid container, metal
• Automotive: applications for new vehicle platforms; upgrades of current vehicle lines
• Consumer Non-Durable:beverage, food, general applications
• Consumer Durable: appliance, furniture
• Electronics: UV curing of semi-conductor wafers and other electronic components
• OEM/Distributor: Nordson products used to build manufacturing line, not end market specific

*Percentages are for directional use only

Why Invest in Nordson?

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

2

3

4

Accelerate organic growth

Diversify through acquisitions

Leverage NBS for profitable growth

Sustain our cultures and values

15

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
3. Recapitalize Installed Base
4. Emerging Markets
5. Product Tiering

Reported Organic Sales Growth (2015-2019):

4% Average Annual Growth

16

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:

1. Strategic Fit
2. High Quality Businesses: Strong Performers & Proprietary Technology
3. Growth Rate at or Above Nordson
4. High % of Recurring Sales
5. Sales and Cost Synergies

Sales Growth from Acquisitions (2015-2019):

3% Average Annual Growth

17

Strong Growth: Organic and Acquisitive

On average across the past five years, Nordson has delivered annual sales growth of 5 percent, inclusive of

4 percent organic growth, 3 percent growth related to the first year effects of acquisitions and a

decrease of 2 percent related to the unfavorable effects of foreign currency.

15.0%

13.0%

11.0%

9.0%

7.0%

5.0%

3.0%

1.0%

-1.0%

-3.0%

-5.0%

-7.0%

18

		14.3%
		6.9%
				9.1%
	2.0%		2.0%
		7.1%
2.4%			4.6%
	7.9%
	6.5%
3.4%			2.5%	0.4%
-0.9%	-1.4%	-0.5%		-1.1%
				-2.0%
-6.7%				-2.7%

2015	2016	2017	2018	2019
	Organic Growth		Acquisitive Growth		Currency Impact	Total Growth

3 Optimize Business

Driving continuous improvements across the organization.

Key Performance Indicators:

1. Growth Initiatives
2. Price Effectiveness
3. Cost Reduction Initiatives
4. Cost of Poor Quality
5. Customer Delivery Performance
6. Days of Sales in Inventory
7. Productivity
8. Sales from New Products

19

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 $109M in overall giving to date
2. More than 100K total hours volunteered
3. $3M towards BUILDS scholarships
4. Investing in locations where we have significant operations (over 20 communities in the United States and 11 countries)

20

Financial Results

Fiscal 4Q2019 Results & FY2020 Guidance

4QF19 Results

	$585M		$140M		$164M	$1.76		$128M
	Sales		Operating Profit		EBITDA		GAAP Diluted EPS		Free Cash Flow
			(24% of Sales)		(28% of Sales)				Before Dividends
									(125% of net income)
					2020 Guidance

• Organic sales volume growth in the range of 1 to 3 percent compared to Fiscal 2019

• Interest expense expected to be appx. $36 million
• Maintenance capital expenditures expected to be appx. $50 million

• Growth from acquisitions adding 20 bps

▪ Estimated effective tax rate 22 percent

• Unfavorable currency translation effect of 30 bps

▪ GAAP diluted EPS growth in the range of 2 to 6

22	▪ Hold reported operating margin and EBITDA margin	percent compared to Fiscal 2019
	equal to Fiscal 2019

Total Shareholder Return Above Our Peers

Comparison of 10 Year Cumulative Total Return

800.00
700.00
600.00
500.00
400.00
300.00
200.00
100.00
0.00
2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019
Nordson Corporation	S&P 500 Index		S&P MidCap 400	S&P 500 Ind. Machinery	S&P MidCap 400 Ind. Machinery	Peer Group

23Assumes Initial Investment of $100 on November 1, 2009 Fiscal Year Ending October 31, 2019

Source: Zack's Investment Research

Industry Leading Gross Margins

Consistently Mid 50s

70%
60%	54.9%	55.1%	54.8%	54.3%
54.1%
50%
40%
30%
20%
10%
0%
2015	2016	2017	2018	2019

24

$000

$700,000

$600,000

$500,000

$400,000

$300,000

$200,000

$100,000

$0

Strong EBITDA Margins

Continuous Improvement Initiatives

5 Year CAGR = 6.6%

26.8%26.7%

26.4%

25.4%

22.7%

*2015

2016

2017

2018

2019

25	*FY15 results impacted by significant negative currency translation effects compared to the prior year.

EPS Growth

High gross margins lead to significant volume leverage

		5 Year CAGR = 8.6%
$7.00			$6.40
$6.00				$5.79
	$4.73	$5.08
$5.00
$4.00
$3.45
$3.00
$2.00
$1.00
$0.00
* 2015	2016	2017	2018	2019

26	*FY15 results impacted by significant negative currency translation effects compared to the prior year.

Strong Cash Generation

Funds Growth and Returns to Shareholders

Strong Cash Conversion: 2015 - 2019

2019 Free Cash Flow Before Dividends

= 95% of Net Income

$450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000

$-

*

27

2015	2016	2017	2018	2019
	Free cash flow before dividends	Net income

*FY15 results impacted by significant negative currency translation effects compared to the prior year.

100%

80%

60%

40%

20%

0%

-20%

28

Disciplined Capital Deployment

37% or $894.5 Million to Shareholders via Share Repurchases and Dividends

																			▪ Self funding business model
	$37.7	$21.3	$62.5	$3.2					Working	$192.1
	$24.0				Capital 8%				generates excess cash
				$63.8				$79.7
											Share Repurchases				▪	Low working capital
		$33.4
										23%	$565.0				requirements
									$72.4										▪	Low capital expenditures
	$383.9	$56.4										Dividends	$329.5				(approx. 3% of sales)
							$120.5	14%
																			▪	Strong free cash
				$805.9				$50.6										▪	56 consecutive years of
																				dividend increases - 14th
		$42.7
								$82.1					$987.3				among publicly traded
											Acquisitions
												40%					companies
	$54.8
	$75.6	$64.6						$94.7	$12.5
										$67.8		PP&E/Leases	$366.6
	$66.7			$72.8							15%
	2015	2016	2017				$(9.1)	2019					TOTAL
				2018

PP&E / Capital Leases		Acquisitions		Dividends		Share Repurchases		Working Capital

Investment Summary

1. Clear Strategy and Goals
2. Strong Execution and Performance
3. Leading Global Businesses
4. Numerous Growth Opportunities
5. Outstanding Culture and Values
6. Committed to Community

Appendix

• Product Innovation
• Historic Financials
• 4QF19 Financial Exhibits

Appendix:

Product Innovation

Solder paste

inspection

Solder paste

printer

32

Our Electronics Industry Position

Surface Mount Manufacturing

Flux spray	Optical	Inline Systems	Plasma	Underfill,	Optical	X-ray	Conformal
coating	inspection		surface	encapsulation	inspection	inspection	coating
			treatment	or
				precise coating

Component placement

Reflow oven

QA Lab / Island of Automation

X-ray inspection

Acoustic inspection

Bond testing

Our Role in the Semiconductor Process

33

Advanced Technology - Fluid Management

Precision Low-Volume Dispensing		Optimum® Syringe Barrels and Tips	Life Sciences
	Fluid Management Components
From benchtop dispensers to industry-best		Optimum® components are designed as a	From specialty tubing, catheters,
jetting valves and automated dispensing		complete system to help companies	medical balloons, quick-connect
robots, Nordson EFD systems deliver		improve yields and reduce costs.	couplings and couplers, Nordson is an
accurate, repeatable deposits of glues,			expert in the design, development and
greases, and other industrial fluids in		Dispense tips deliver a clean, smooth flow	manufacture of complex medical
precise, low-volume applications.		path, free of flash and burrs. In 200+ sizes	devices and component technologies.
		and styles, tips are lot-tracked for process
		control and traceability.

34

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 rates with one	while reducing volume	using non-contact jetting
efficiency for nonwovens
optimum adhesive levels	applicator	of adhesive required	into channels as small
manufacturing process
			as 0.3mm or 300 micron
			per second

35

Industrial Coating Systems

36

Appendix:

Historic Financials

Strong Capital Management

Net Debt to EBITDA*

Strong cash generation lets Nordson de-lever quickly

At 10/31/2019 Net Debt to TTM EBITDA = 1.9 times

Acquisitions &

3.00	Share
Repurchases
		Vention
2.50			Acquisition
2.00
1.50
1.00
0.50
0.00
	2015	2016	2017	2018	2019

38At fiscal years ending 10/31

* Net Debt to EBITDA calculated net of cash

Strong Capital Management

Debt Position (as of 10/31/19)

$900
															Drawn		Available
$800																																		$850
$700
$600
$500
			$505
$400
$300																													$350
$200
$100
														$128					$141
																					$93
$0									$31
	Term Loan A	NYL			Term Loan A		2012 Private		2015 Private		2018 Private Revolver
			(US) & PNC							(EUR)		Placement		Placement		Placement
				Loan

	▪$100M -at 65.0 bps,	▪Amortizing avg
	maturity 3/31/20	rate: 2.50%
	▪$200M -at 70.0 bps,	▪Remaining avg.
39	maturity 9/30/22	life: 0.34 yrs

▪Maturity 10/15/21 at 100.0 bps over EUR Libor

▪EUR denominated

▪Amortizing avg	▪Amortizing avg.	▪Amortizing avg.	▪Ends April, 2024
rate: 3.05%	rate: 3.05%	rate: 3.90%	▪78.5 bps over
▪Remaining avg.	▪Remaining avg.	▪Remaining avg.	USD Libor at
life: 2.76 yrs	life: 4.59 yrs	life: 6.05 yrs	7/31/19

▪$205M -at 80.0 bps, maturity 3/31/24

Innovation Drives Organic Growth

Steady Stream of New Products

	$60,000						80
	$50,000		63				70
	62					Number of U.S. Patents Granted
					58		60
R&D Spend (in thousands)
$40,000			51
				47	50
$30,000						40
$20,000						30
						20
	$10,000						10
	$0						0
		2015	2016	2017	2018	2019

40		R & D Spend		U.S. Patents Granted

Currency Impact

Annual Sales Growth and EPS

20.0%

15.0%

10.0%

5.0%

0.0%

-5.0%

-10.0%

2015

2016

2017

2018

2019

Currency Effect Volume Growth

41	FX Impact to EPS:	($0.54)	($0.19)	($0.03)	$0.24	($0.30)

Appendix:

Financial Exhibits

Nordson Corporation

2015 - 2019 Sales Growth

Nordson Corporation

	Organic		Acquisitive		Currency		Total
FY2015	3.4%	2.4%	-6.7%	-0.9%
FY2016	6.5%	2.0%	-1.4%	7.1%
FY2017	7.9%	6.9%	-0.5%	14.3%
FY2018	2.5%	4.6%	2.0%	9.1%
FY2019	-1.1%	0.4%	-2.0%	-2.7%
5 yr avg	3.8%	3.3%	-1.7%	5.4%

Advanced Technology Systems

	Organic		Acquisitive		Currency		Total
FY2015	1.7%	6.9%	-2.9%	5.7%
FY2016	10.1%	4.6%	-0.8%	13.9%
FY2017	15.1%	18.3%	-0.7%	32.7%
FY2018	3.8%	10.7%	1.3%	15.8%
FY2019	-4.6%	0.9%	-1.4%	-5.1%
43 5 yr avg	5.2%	8.3%	-0.9%	12.6%

Adhesive Dispensing Systems

	Organic		Acquisitive		Currency		Total
FY2015	2.0%	0.3%	-9.4%	-7.1%
FY2016	6.2%	0.7%	-1.7%	5.2%
FY2017	4.3%	0.0%	-0.2%	4.1%
FY2018	1.5%	0.0%	2.8%	4.3%
FY2019	2.4%	0.0%	-2.8%	-0.4%
5 yr avg	3.3%	0.2%	-2.3%	1.2%

Industrial Coating Systems

	Organic		Acquisitive		Currency		Total
FY2015	12.5%	0.0%	-5.8%	6.7%
FY2016	-0.6%	0.0%	-1.6%	-2.2%
FY2017	0.8%	0.0%	-0.7%	0.1%
FY2018	1.1%	0.0%	1.6%	2.7%
FY2019	0.5%	0.0%	-1.5%	-1.0%
5 yr avg	2.9%	0.0%	-1.6%	1.3%

FOURTH QUARTER PERIOD											NORDSON CORPORATION
Period Ended October 31, 2019											FINANCIAL HIGHLIGHTS
(Unaudited)								(Dollars in thousands except for per-share amounts)
CONSOLIDATED STATEMENT OF INCOME(1)												CONSOLIDATED BALANCE SHEET
		Fourth Quarter			Year-to-Date		October 31		October 31
		2019			2018			2019			2018			2019			2018
Sales	$	585,451	$	569,295	$	2,194,226	$	2,254,668	Cash and marketable securities	$	151,164	$	95,678
Cost of sales		266,476			261,431			1,002,123			1,018,340	Receivables		530,765			491,423
Selling & administrative expenses		179,315			191,067			708,990			733,749	Inventories		283,399			264,477
												Other current assets		45,867			32,524
Operating profit		139,660			116,797			483,113			502,579	Total current assets		1,011,195			884,102
Interest expense - net		(10,216)			(11,847)			(45,301)			(48,192)	Property, plant & equipment - net		398,895			386,666
Other income (expense) - net		(2,162)			(762)			(6,708)			(5,868)	Other assets		2,106,357			2,150,244
													$	3,516,447	$	3,421,012
Income before income taxes		127,282			104,188			431,104			448,519
Income taxes		24,609			17,486			94,013			71,144	Notes payable and debt due within one year	$	168,738	$	28,734
												Accounts payable and accrued liabilities		308,888			321,546
Net Income	$	102,673	$	86,702	$	337,091	$	377,375	Total current liabilities		477,626			350,280
												Long-term debt		1,075,404			1,285,357
												Other liabilities		382,372			334,634
Return on sales		18%			15%			15%			17%	Total shareholders' equity		1,581,045			1,450,741
Return on average shareholders' equity		26%			24%			23%			28%		$	3,516,447	$	3,421,012

	Average common shares outstanding (000's)		57,456		58,085		57,462		57,970
	Average common shares and
	common share equivalents (000's)		58,255		58,994		58,202		58,931
	Per share:									Other information:
	Basic earnings	$	1.79	$	1.49	$	5.87	$	6.51
	Diluted earnings	$	1.76	$	1.47	$	5.79	$	6.40	Employees	7,579	7,536
	Dividends paid	$	.38	$	.35	$	1.43	$	1.25	Common shares outstanding (000's)	57,600	58,037
	Total dividends	$	21,820	$	20,334	$	82,145	$	72,443
	(1) Results for the three and twelve months ended October 31, 2018 have been revised to reflect the retrospective adoption of Accounting Standards Update No. 2017-07, Compensation
44	- Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Cost ("ASU 2017-07"). The adoption of ASU 2017-07
resulted in a net increase to previously reported operating income of $2.2 million & $8.0 million for the three and twelve months ended October 31, 2018, respectively, and a

corresponding increase of $2.2 million & $8.0 million to other expense for the three and twelve months ended October 31, 2018, respectively, with no net impact to net income or earnings per share.

	FOURTH QUARTER PERIOD											NORDSON CORPORATION
	Period Ended October 31, 2019											FINANCIAL HIGHLIGHTS
	(Unaudited)											(Dollars in thousands)
				Fourth Quarter		% Growth over 2018				Year-to-Date		% Growth over 2018
	SALES BY BUSINESS SEGMENT			2019			2018		Volume		Currency		Total				2019			2018		Volume		Currency			Total
	Adhesive dispensing systems	$	253,694	$	250,825	2.7%	-1.6%	1.1%		$	950,917	$	955,192	2.4%	-2.8%			-0.4%
	Advanced technology systems		249,000			250,231	0.5%	-1.0%	-0.5%				985,850			1,039,366	-3.7%	-1.4%			-5.1%
	Industrial coating systems		82,757			68,239	22.1%	-0.8%	21.3%				257,459			260,110	0.5%	-1.5%			-1.0%
	Total sales by business segment	$	585,451		$	569,295		4.0%		-1.2%		2.8%			$	2,194,226		$	2,254,668		-0.7%		-2.0%			-2.7%
				Fourth Quarter										Year-to-Date
	OPERATING PROFIT BY BUSINESS SEGMENT(1)		2019			2018										2019			2018
	Adhesive dispensing systems	$	78,623	$	69,031								$	275,216	$	262,627
	Advanced technology systems		54,727			51,232										205,609			244,880
	Industrial coating systems		20,730			14,193										53,838			52,421
	Corporate		(14,420)			(17,659)										(51,550)			(57,349)
	Total operating profit by business segment	$	139,660		$	116,797									$	483,113		$	502,579
				Fourth Quarter			% Growth over 2018				Year-to-Date		% Growth over 2018
	SALES BY GEOGRAPHIC REGION		2019			2018		Volume		Currency		Total				2019			2018		Volume		Currency			Total
	United States	$	206,874	$	184,666	12.0%	-	12.0%		$	758,383	$	720,832	5.2%	-			5.2%
	Americas		44,503			46,689	-3.3%	-1.4%	-4.7%				167,661			158,837	7.4%	-1.8%			5.6%
	Europe		145,946			174,724	-13.3%	-3.2%	-16.5%				571,596			622,108	-3.3%	-4.8%			-8.1%
	Japan		37,190			34,506	3.5%	4.3%	7.8%				126,756			161,771	-22.2%	0.6%			-21.6%
	Asia Pacific		150,938			128,710	19.0%	-1.7%	17.3%				569,830			591,120	-1.3%	-2.3%			-3.6%
	Total Sales by Geographic Region	$	585,451		$	569,295		4.0%		-1.2%		2.8%			$	2,194,226		$	2,254,668		-0.7%		-2.0%			-2.7%
45
(1) Results for the three and twelve months ended October 31, 2018 have been revised to reflect the retrospective adoption of ASU 2017-07.

FOURTH QUARTER ENDED		NORDSON CORPORATION
Period Ended October 31, 2019	RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Unaudited)		(Dollars in thousands except for per-share amounts)
EBITDA		Fourth Quarter				Year-to-Date
		2019			2018			2019			2018
Net income	$	102,673	$	86,702		$	337,091	$	377,375
Adjustments:
Depreciation and amortization expense		26,913			27,370			110,244			108,407
Interest expense, net		10,216			11,847			45,301			48,192
Income taxes		24,609			17,486			94,013			71,144
EBITDA	$	164,411	$	143,405		$	586,649	$	605,118
Adjustments:
Acquisition costs and adjustments (1)		342			-			530			3,484
EBITDA As Adjusted	$	164,753		$	143,405		$	587,179		$	608,602
EBITDA per diluted share	$	2.82		$	2.43		$	10.08		$	10.27
EBITDA As Adjusted per diluted share	$	2.83		$	2.43		$	10.09		$	10.33

1. Represents costs and adjustments associated with our 2019 and 2018 acquisitions, including accounting adjustments to inventory
   that were charged to cost of sales when the inventory was sold; transaction-related costs comprising of acquisition fees, legal, financial and tax due diligence expenses; and valuation costs that are required to be expensed as incurred.

EBITDA, EBITDA As Adjusted, EBITDA per diluted share and EBITDA As Adjusted per diluted share are non-GAAP financial measures

used by management to evaluate the Company's ongoing operations. Therefore, the Company believes these financial measures provide useful information to investors. EBITDA is defined as earnings before interest, taxes, depreciation and amortization and EBITDA As Adjusted is defined as EBITDA plus certain acquisition costs and adjustments. EBITDA per diluted share is defined as EBITDA divided by the Company's diluted weighted average shares outstanding. EBITDA As Adjusted per diluted share is defined as EBITDA As Adjusted divided by the Company's diluted weighted average shares outstanding.

			Fourth Quarter				Year-to-Date
		2019				2018			2019			2018
	Diluted EPS as reported (U.S. GAAP)	$	1.76	$	1.47	$	5.79	$	6.40
	Short-term inventory purchase accounting adjustments		-			-			0.01			0.05
	Severance and restructuring		0.02			0.04			0.05			0.08
	U.S. Tax Reform discrete item		-			(0.07)			0.08			(0.45)
	Other discrete tax items		-			-			(0.07)			(0.15)
	Diluted EPS as adjusted (Non-GAAP)	$	1.79		$	1.44		$	5.87		$	5.94
46	Adjusted EPS is not a measurement of financial performance under GAAP, and should not be considered as an alternative
	to EPS determined in accordance with GAAP. Management believes that EPS as adjusted to exclude the items in the

table above assist in understanding the results of Nordson Corporation. Amounts may not add due to rounding.

FOURTH QUARTER ENDED		NORDSON CORPORATION
Period Ended October 31, 2019	RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Unaudited)		(Dollars in thousands except for per-share amounts)
Free Cash Flow Before Dividends		Fourth Quarter				Year-to-Date
		2019			2018			2019			2018
Net income	$	102,673	$	86,702		$	337,091	$	377,375
Depreciation and amortization		26,913			27,370			110,244			108,407
Other non-cash charges		4,907			20,243			19,606			(9,025)
Changes in operating assets and liabilities		11,969			27,396			(84,048)			27,881
Net cash provided by operating activities		146,462			161,711			382,893			504,638
Additions to property, plant and equipment		(18,242)			(43,818)			(64,244)			(89,790)
Proceeds from the sale of property, plant and equipment		248			159			1,285			458
Free cash flow before dividends	$	128,468	$	118,052		$	319,934	$	415,306
Adjustments:
Acquisition costs and adjustments, net of tax (1)		276			-			416			2,658
Free cash flow before dividends, adjusted	$	128,744	$	118,052		$	320,350	$	417,964

1. Represents costs and adjustments associated with our 2019 and 2018 acquisitions, including accounting adjustments to inventory that were charged to cost of sales when the inventory was sold; transaction-related costs comprising of acquisition fees, legal, financial and tax due diligence expenses; and valuation costs that are required to be expensed as incurred.

Free cash flow before dividends, a non-GAAP financial measure, is defined as net cash provided by operating activities less purchased property, plant and equipment and proceeds from the sale of property, plant and equipment. It is a financial measure used by management to assess its ability to generate cash in excess of its operating needs. Therefore, the Company believes this financial measure provides useful information to investors. Free cash flow before dividends is not a measure of financial performance under GAAP and should be considered in addition to, and not as a substitute for, operating cash flows or other financial measures prepared in accordance with GAAP. Our calculations of non-GAAP measures may not be comparable to the calculations of similarly titled measures reported by other companies.

47