Nordson Corporation

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Nordson Corporation
Sidoti Company, LLC Emerging Growth
Institutional Investor Forum April 7, 2005
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The World Leader in Precision Application of
Materials
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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
  Corporations actual results could differ
  materially from the expectations expressed in the
  forward-looking statements. Factors that could
  cause the Companys 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
  customer-requested delays in system
  installations and unanticipated delays.

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Nordson Today

• Market leader in nearly all businesses
• Unusually global leading presence in fast
  growing Asian markets
• Direct field sales and service organization a
  unique and major competitive strength
• Technology leader continual stream of new
  products
• High degree of operating and capital efficiency
  through Lean
• Excellent margins and free cash flow

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Nordson Overview

• 25,000 Nordson customers
• Diverse end markets largest industries
• Food, beverage, soaps and other household
  products
• Disposable baby diapers and other nonwoven
  products
• Semiconductors
• Appliances
• Office Furniture
• Cell phones electronic devices
• Medical devices
• Ranked by Business Ethics as among 100 Best
  Corporate Citizens for past 4 years

• 2004 sales 794 million
• 3,500 employees
• Operating directly in 30 countries
• Manufacturing facilities
• United States
• Germany
• Netherlands
• U.K.
• China
• Headquarters Cleveland, Ohio

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Sales Distribution First-Quarter 2005
INDUSTRY SEGMENT
Advanced Technology 22
Finishing and Coating 18
Adhesive Dispensing 60
PRODUCT TYPE
GEOGRAPHIC DISTRIBUTION
Americas 8
Engineered Systems 25
Parts 38
United States 32
Europe 37
Standard Product 37
Asia Pacific 12
FY 2004
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Markets Served - 2004
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Nordson Corporation Sales 1955 to 2004
2005 Full-Year Guidance
Millions

• Annual Growth Rate
• 1964 2004 13

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Annual Sales Growth
1st Qtr '05
'91
'92
'93
'94
'95
'96
'97
'99
'00
'01
'98
'02
'03
'04
.11 .05 (.10) .01 .16 (.11 )
(.19) (.20) .04 (.10) (.20) .01 .30
. 27 .04
EPS CurrencyEffect
VolumeGrowth
CurrencyEffect
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Dividend Record

• Dividend increased for 41 consecutive years
• This record ranks us tied for 19th among US
  public companies

2004
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Fiscal 2004 Financial Highlights

• Revenue grew 19
• Sales per employee grew 19
• Earnings per share grew 66
• Return on equity increased to 18 from 13
• Free cash flow of 125 million, or 16 of revenue
• Debt reduced by 26
• Dividends increased for 41st consecutive year
• Total return to shareholders of 29

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2004 Revenue Growth of 19

• Sales growth by region
• Growth Share of Growth
• United States 8 16
• Europe 21 41
• Japan 19 11
• Asia Pacific 52 25
• Americas 21 7
• Total 19 100
• Sales growth by segment
• Growth Share of Growth
• Adhesive systems 17 57
• Advanced technology 29 29
• Finishing systems 16 14
• Total 19 100

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Asia Pacific Sales 2002 to 200442 Annual Rate
of Growth
Millions
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First-QuarterFiscal 2005 Results
First Quarter Fiscal 2004
First Quarter Fiscal 2005
Percent Change

Record sales and earnings
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Nordson Corporation

• Business Segments

16
Adhesive Dispensing Systems
60 of total sales

• Applications
• Carton closing
• Case sealing
• Diaper assembly
• Window assembly
• Edge banding
• Envelope construction
• Nonwoven fabric construction
• Automotive sealing
• Furniture assembly

• End markets
• Food and beverage packaging
• Disposable nonwoven products
• Wood products and architectural windows
• Nonwoven fabrics
• Automotive
• Paper converting
• General industrial assembly

Brands
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Adhesive Dispensing Systems

• 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

• Fiscal Year 2004
• Sales 498m
• Sales Growth 17
• Operating margin 20
• First-Quarter 2005
• Sales Growth 8
• Operating margin 16
• Characteristics of business
• Excellent margins
• High market share
• Entirely new product line

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Advanced Technology Systems
22 of total sales

• 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

• End markets
• Semiconductors
• Electronic assembly systems
• Life sciences
• General industrial assembly
• Graphic arts

Brands
19
Advanced Technology Systems

• Drivers of growth
• Semiconductor innovations
• Circuit shrinkage in cell phones, PDAs, etc.
• Drive for yield and quality improvements
• Productivity investments
• Entry into Life Sciences
• Growth in China
• Received Intels Supplier Continuous Quality
  Improvement Award

• Fiscal Year 2004
• Sales 165m
• Sales Growth 28
• Operating margin 18
• First-Quarter 2005
• Sales Growth 18
• Operating margin 17
• Characteristics of business
• World leader in rapidly growing flip chip
  underfill microprocessor assembly
• Growing opportunities in flat panel displays
• Rapid growth in life sciences

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Finishing and Coating Systems

• Applications
• Powder finishing
• Liquid finishing
• Metal container inside coating
• Battery inside coating
• Control systems

18 of total sales

• End markets
• Appliance
• Office furniture
• Outdoor products
• Automotive components
• Food and beverage containers
• Disposable batteries

Brands
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Finishing and Coating Systems

• Fiscal Year 2004
• Sales 131m
• Sales Growth 16
• Operating margin 2
• First-Quarter 2005
• Sales Growth 15
• Operating margin 2
• Characteristics of business
• Emphasis on industrial powder paint systems
• Highly profitable beverage container and alkaline
  battery business

• Drivers of growth
• Environmental advantages of powder coatings
• Productivity investments
• Lean
• Growth in China
• Drive for yield and quality improvements

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Nordson Strategy

• Accelerate revenue growth through sales to new
  applications and new markets
• Fuel sales growth through increased investment in
  new application and market development
• Fund increased investments through Lean

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Strategic FocusNew applications and markets

• Product and business development, and other
  product support expenditures targeted at 9 of
  revenue
• Investments targeted at new applications and new
  markets
• 1,920 active patents worldwide
• 20 of revenue generated from new products

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Nordson in China

• Direct in China for 11 years
• Principal offices in Shanghai, Guangzhou,
  Beijing, with direct personnel in 11 other
  provinces
• 5 of global employment in China
• Design and manufacturing of Adhesive and
  Finishing products
• Expanding manufacturing to 5 of global production

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Strategic FocusFund increased investments
through Lean

• Excellent start
• Inventory reduced by 50
• Consolidating product lines simplifying
  processes
• Continuing to drive operational and functional
  excellence across entire corporation
• Supply chain management
• Information systems
• Support staffs
• Sales, service and distribution

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Aggressive Expense Control
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Inventory Reduction Driven by Lean
Days of Inventory
Goal
28
Dramatic Balance Sheet Improvement
Debt
Equity
Proforma reflecting acquisition debt
Net of cash and marketable securities
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Business Wrap-Up

• Market leader in every segment
• Positioned to profit from emerging market growth
• High margins strong, growing cash flow
• Robust internal product development investment
• Growth rates and performance above average