gabelli41st annual automotive · •diversified portfolio of technology and products ... 1990 2017...
TRANSCRIPT
Gabelli 41st Annual Automotive Aftermarket Symposium
Tod CarpenterPresident and CEO
Safe Harbor Statement
This presentation includes forward‐looking statements which reflect the Company’s current views with respect to future events and financial performance, but involve risks and uncertainties that could significantly impact results.
Overview of Donaldson
Donaldson Company
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• Technology leader in our markets
• Diversified portfolio of global businesses
We are a filtration company
Value Proposition To Our Customers
Technology Advantages• Higher efficiency
• Small system size
• Longer filter life
• Reduced operating and maintenance costs
Better Aftermarket Retention
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Value Proposition To Our Shareholders
• Diversified portfolio of technology and products
• Global sales, production and distribution footprint
• Committed to growth & financial performance
• Disciplined capital deployment
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Diversified Product Assortment: Engine
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Diversified Product Assortment: Industrial
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Strategic Growth Plans
Strategic Growth Plans
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Acquisitions
Geography
ExpandCoreDONALDSON
CORE
Expand core products & technologies
Expand geographies
Execute acquisitions
Sales Growth Model
CreateHoles
Sell Replacements
Reinvest
Growth
Use Innovative Technology
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Innovative Product to Improve Retention
0%
20%
40%
60%
80%
100%
Yr 0 Yr 2 Yr 5 Yr 8 Yr 10 Yr 15
LegacyProducts
Innovative Products
Aftermarket retention rate of innovative products is higher than legacy products over time
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Innovative Air Filtration
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PowerCore DownFlo Evolution
Innovative Liquid Filtration
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• Designed for new diesel fuels, higher fuel injector pressure
• Higher efficiency and extended filter life
Capital Deployment
Capital Deployment Priorities
• Invest in our company
• Pay a dividend
• Repurchase our shares
Fiscal 2018 Strategic Investment Priorities
• Technology development• Grow our capabilities with new filtration technologies to
further expand into adjacent markets.
• Capacity expansion• Increase our manufacturing capacity for innovative air and
liquid products, and add distribution capacity to better serve our customers while enhancing productivity.
• Customer engagement• Launch our e‐commerce platform to make it easier for new
and existing customers to buy from Donaldson.
Reinvesting in the Business Over Time
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• Organic Growth Investments• Development of new and innovative products• Lab upgrades and IT investments• Production capacity and distribution expansion
• Acquisitions• Completed five bolt‐on acquisitions in three years
Consistent Dividend Growth
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$0.02
$0.70
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
$0.80
1990 2017
Per Share
16% CAGR
• Paid quarterly dividend for 60+ years• Increased annually for 20+ years
Consistent Share Repurchase
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0
50
100
150
200
250
1990 2017
Shares Outstandingin Millions
-2% CAGR
• Goal is to at least offset annual dilution of ~1%
Value Proposition To Our Shareholders
• Diversified portfolio of technology and products
• Global sales, production and distribution footprint
• Committed to growth & financial performance
• Disciplined capital deployment
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Thank You