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Nordson Corporation Precision Technology Solutions

Nordson Corporation Precision Technology Solutions. Dispensing - Processing - Test & Inspection - Surface Treatment - Fluid Management. : NDSN. Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995.

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Nordson Corporation Precision Technology Solutions

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  1. Nordson CorporationPrecision Technology Solutions Dispensing - Processing - Test & Inspection - Surface Treatment - Fluid Management : NDSN

  2. 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; customer-requested delays in system installations; and unanticipated delays. DISCONTINUED OPERATIONS All numbers for years prior to FY 2006 in this presentation include results from discontinued operations unless otherwise noted.

  3. Nordson Investment Summary Sustainable Business Model Applied to Diverse Markets Delivers Exceptional Results 30+ countries, established and emerging Technology, consumer non-durables, consumer durables Emerging applications • Strong top line growth • 49 years of dividend increases • Excellent margins and returns • Strong cash flow for continued investment • Top quartile total shareholder return • Real technology differentiation • Unparalleled application know-how • Global direct sales & service • Parts & consumables annuity • Globally recognized brand

  4. Nordson: Focused on Precision Technology Solutions • Material Dispensing • Dispensing, Coating • Sealing, Finishing • Spraying, Painting • Extrusion • Plastic Processing • Extrusion • Injection Molding • Test and Inspection • X-ray, optical inspection • Bond test • Surface Treatment • UV curing • Plasma treatment • Fluid Management • Components Customer Value Proposition Reliability…uptime Speed…productivity…yield Efficiency…lower material usage Leading edge features Lower Cost of Ownership

  5. Adhesive Dispensing Advanced Technology Electronics, Medical Solar, LEDs Industrial End Markets: Consumer Non-Durables, Durables, Technology ….Every Day You Experience the Value We Bring Industrial Coating Packaging, Nonwovens Product Assembly Plastic Processing Appliances, Agriculture Automotive, Furniture Containers, Construction

  6. Sales Distribution – FY2012 Markets Served Operating Segments Geography Product Type

  7. Adhesive Dispensing Systems Twelve Months Ending 1/31/2013:Sales: $728m Operating Margin: 29% Nonwovens 48% of FY12 sales Income growth in emerging markets Increased use of disposable hygiene products Increased use of processed/convenience foods Increased use of lightweight plastics Productivity investments Material, machinery and process innovations • Melting, filtering, pumping, transporting and deposition of adhesives, plastics and other materials in the manufacturing of a wide range of goods. Rigid Packaging Growth Drivers End Markets • Food and beverage packaging • Nonwovens / disposable hygiene • Furniture and building products • Paper converting • Macro electronics • General industrial assembly • Alternative energy • Medical devices • Labeling • Transportation Flexible Packaging General Product Assembly Includes industry leading brands: Nordson XALOY & Nordson EDI Typical Replacement Parts

  8. Advanced Technology Systems Twelve Months Ending 1/31/2013:Sales: $525m Operating Margin: 27% Automated Dispensing 37% of FY12 sales Mobile computing trend Device convergence / migration to flip chips Circuit shrinkage / new architectures New consumers in emerging markets Medical needs driven by aging population Alternative energy high volume manufacturing Test & Inspection • High precision dispensing, fluid management, test, inspection and surface treatment products and systems for electronics, medical and general industrial markets Growth Drivers End Markets • Semiconductor packaging, testing, inspection, surface prep • Printed circuit board assembly • General electronic assembly • Medical devices and procedures • General industrial assembly • Solar • LED Medical Dispensing Semi Automated Dispensing Includes industry leading brands: Nordson ASYMTEK, Nordson DAGE, Nordson EFD Nordson MARCH, Nordson MICROMEDICS, Nordson YESTECH, Value Plastics Consumable Tips, Cartridges & Connectors

  9. Appliances Lawn and garden Metal container inside coating Automobile sealing & bonding Cold material dispensing Pipe coating and construction Woodworking General industrial Electronics / UV curing Industrial Coating Systems Twelve Months Ending 1/31/2013:Sales: $228m Operating Margin: 14% Powder Coating 15% of FY12 sales Liquid Coating • Precision equipment and systems to apply and cure paints, sealants, coatings, cold materials and other materials to a wide range of products Growth Drivers End Markets • Growth in emerging markets • Environmental advantages of powder coatings • Productivity investments • Lean manufacturing • Quick color change Medical Dispensing Container Coating Cold Material Dispensing Includes industry leading brand: Sealant Equipment & Engineering Typical Replacement Parts

  10. Financial Highlights Consistent Sales Growth Industry Leading Gross Margins FY12 = $1.4B 14 % YOY Growth Millions of $ Strong EPS Growth Strong Operating Margins Includes impact of Acquisitions 2003 – 2012 CAGR: 21% *FY09 excludes non-cash charges for impairment of goodwill and other long-lived assets.

  11. Disciplined Use of Cash Uses of Cash – 2007 to 2012 Dividend increased 49 consecutive years 15th among US public companies 42% increase since 2009 Dividends per share

  12. Capital Management NET DEBT TO EBITDA Strong Cash Generation Lets NordsonDe-lever Quickly DEBT POSITION at 1/31/2013 EFD Acquisition Acquisitions & Share Repurchases In millions $ 10% Outstanding Stock Repurchase Four Acquisitions Ends Feb 2013 @4.98% - Ends Dec 2016 - 87.5 bps over Libor at 10/31 - Amortizing-avg rate – 2.93% - Initial avg. life – 8.26 years - Ends June 2013 - 100 bps over Libor Net Debt to EBITDA calculated net of cash Amortizing-avg rate – 2.21% Avg. life – 3.58 years

  13. Nordson Outperforms its Peers in Total Shareholder Return 10 Year Total Return Source: Zack’s Investment Research Nordson S&P 500 Industrial Machinery Assumes $100 invested on 11/1/2002, dividends reinvested, fiscal year ending 10/31/2012 S&P Midcap 400 Industrial Machinery S&P Midcap 400

  14. FY2013 1Q Results 2Q 2013 Guidance Organic Volume growth 3% to 8% Acquisition Growth 16% Currency (1)% Total Sales Growth 18% to 23% GAAP Diluted EPS $0.78 to $0.87 SOURCE: February 21, 2013 Press Release

  15. 2013 Global Economic Environment: A lot like 2012Nordson Delivered 7.9% Organic Growth in 2012 2012 GDP &NDSN Organic Growth Global GDP Forecasts 2013 January 2013 1H13 NDSN forecast based on midpoint of guidance provided in Feb 22 press release

  16. Going Forward: Multiple Paths for Profitable Growth • Organic - target at mid-to-high single digits • Product Innovation • Emerging Market Penetration • New Applications Asia Pacific and Latin America Sales (millions) • Strategic Acquisitions – target to bring total growth to double digits • Technology • Sales channels • Core portfolio • Adjacencies • Step outs Plastics Processing Test & Inspection Current areas of focus Fluid Mgmt. (esp. medical) Cold Material Dispense

  17. Key Themes for FY2013 • Priorities consistent with FY2012 • Enhance / Protect the Core • Further Penetrate Emerging Markets • Pursue Market Adjacencies • Further Optimize Business • Make Portfolio Adjustments • Enhance / Expand Organizational Capability • With particular focus on: • Further development of Corporate Growth Strategy / Vision • Acquisition integration and organizational development • Increased Asia presence in Advanced Tech segment • Prudence in view of uncertain economic backdrop Technology Continue to deliver top quartile performance for our shareholders

  18. Appendix - Selected Organic Growth Opportunities - Currency Chart

  19. Organic Growth: Recent Product Innovations NexJet Automated dispensing Spectrum jetting for LEDs RediFlex Hot melt hoses Allegro Dispense nozzles Select Coat conformal coating Artiste Medical dispensing X-Plane Test and inspection Trilogy Guns expanded offering StediFlo™ Coating pumps Mini Blue II adhesive applicator

  20. Growth: Summary of Electronics Industry Forecasts* Nordson is well positioned in mobile devices, where growth is outpacing traditional applications CAGR ’12-’15 = 24.9% CAGR ’12-’15 = 32.4% CAGR ’12-’15 = (0.4)% CAGR ’12-’15 = 4.4% *Average of most recent forecasts to Jan 2013 compiled by Nordson. Includes data from Citibank, Digitimes, IC Insights, IDC, Henderson, iSuppli, Merrill, Prismark

  21. Organic Growth: Smart Phones & Tablets multiple Nordson applications Micro coatings for moisture protection Hot Melt for display assembly CSP & PoP Underfill Solder paste for RF shield attach & SIM card solder joints Flip chip underfill for blue tooth module Lens bonding & underfill for camera modules Solder Paste & Silicone Encapsulation for MEMS microphones Epoxy Flux, Liquid RF shielding Test & inspection

  22. Growth Opportunities: MEMS Nordson opportunities in dispensing, test/inspection, plasma treatment

  23. Growth Opportunities: LEDs Market Trend March 2012 Dispensing for LEDs Nordson opportunities in dispensing, test/inspection, plasma treatment

  24. Growth: Nonwovens Trends Favor Nordson Product Trends • Thinner - more discrete • Softer - more comfortable • Stretch - improves fit and performance • Fun - decorative printing • Gender specific designs Production Trends • 20% increase in production speed anticipated by 2015 Emerging Market Trends • (China, SE Asia, Latin America,…) forecasting at or near double-digit growth rates • Relatively low penetration of baby diapers and feminine care • Increasing incomes

  25. Source: 2012 Growth: Solid Trends in Plastic Processing Plastics Machinery Aftmkt Parts CAGR 4.8% Other CAGR 5.8% Thermoforming and Other CAGR 6.6% Construction CAGR 6.5% Blow Molding Machinery CAGR 5.5% Extrusion Machinery CAGR 6.5% Consumer & Industrial CAGR 6.0% Injection Molding Machinery CAGR 6.0% Packaging CAGR 5.9% CAGR 2011-15: China 8.1% CAGR 2011-15: India 9.7% CAGR 2011-15: China 8.1% CAGR 2011-15: India 9.7%

  26. Growth Opportunities: Medical • Biomaterial Dispensing • Dispensing syringes and components • Bleeding control • Wound healing • Bone graft material • Aesthetic devices • Medical Device Fluid Control • Fittings & components • Anesthesia equipment • Cardiovascular surgery equipment • Blood management equipment Source: MedMarket Diligence, various 3rd party reports, Nordson internal estimates • Medical Device Assembly • Hearing Aids, Pacemakers • Catheters, Stents • Dental • Glucose Test Strips • Medical Electronics Advanced Technology segment

  27. Growth: Asia Pacific Sales 2006 to 2012 • Company’s 43nd year of operation in Asia • Direct in China for 17 years • Percent of total revenue: - 2006: 16% - 2012: 29% Asia Pacific Revenue 20% CAGR2006-2012 Note: Nordson Asia Pacific sales exclude Japan, which is reported separately

  28. Currency and Annual Sales Growth '91 ’92 ’ 93 ’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ‘12 $.11 .05 (.10) .01 .16 (.11) (.19) (.20) .04 (.10) (.20) .01 .30 . 27 .11 (.10) .18 .29 (.23) .15 .16 (.11) Volume Growth Currency Effect EPS Currency Effect

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