Nordson Corporation

August 21, 2017 | Fiscal 2017 3Q Results & 4Q Outlook

: NDSN

A premier industrial technology company

focused on precision dispensing, fluid

control and related processes

Investor Presentation

Nordson Corporation

2

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.

Nordson at a GlanceA premier industrial technology company focused on precision dispensing,

fluid control and related processes

3

Founded in 1954

FY16 sales = $1.8 billion

7,200 employees

Direct presence in 35+ countries

Best-in-class technology

Diversified, growing end markets

Market leading positions

Sustained financial performance

Outstanding long-term returns

Parts & Consumables

40%

Standard Product

39%

Engineered Systems

21%

4

USA29%

Americas7%

Europe28%

Japan7%

Asia Pacific29%

Product Type

High percentage of

recurring revenue

from parts and

consumables

Diversified Sources of RevenueFY2016 Profile - $1.8 billion

Industrial Coating

14%

Advanced Technology

37%

Adhesive Dispensing

49%

Consumer Non-Durables

38%

Consumer Durables

17%

Industrial6%

Automotive7%

Medical8%

Electronic Components

9%

Semiconductor6%

PCB Assembly9%

Geography

Very global. 71% of

revenue outside USA.

Direct presence in

nearly 40 countries.

Diverse End Markets

Consumer non-durables,

durables, industrial,

medical and technology

Operating Segments

Three segments with leading

product lines and brands

Investment Highlights

5

8%

CAGR

2011-2016

Strong

growth:

organic and

acquisitive

Excellent

operating

margins

Strong cash

returns to

shareholders

Reliable and

consistent

dividend

Outstanding

long term

Total

Shareholder

Returns

22%

Operating

Margin

Average

2011-2016

$1.1 billion

Share

repurchases &

dividends

2011-2016

53 Yearsof annual

increases

(21% payout

ratio in 2016)

$1.4 billion

101% of

net income

2011-2016

High level of

free cash

flow before

dividends

124%

TSR*

2011-2016

Outstanding

gross

margins

57%

Gross

Margin

Average

2011-2016

*((Share Price at 10/31/2016 – Share Price at 10/31/2011 + dividends) / Share Price at 10/31/2011 ) = (($100.13 - $46.37 + $3.81) / $46.37 ) = 1.24 = 124%

Total Shareholder Return Above Our Peers

6

*Peer Group = AIN, AME, ATU, B, CLC, DCI, ENTG, ESL, FLIR, GGG, GTLS, IEX, ITT, KEYS, LECO, ROP, TER, WTS, WWD

Assumes $100 invested on 11/1/2011, dividends reinvested, fiscal year ending 10/31/2016Source:

Why invest in Nordson?

7

Outstanding Culture and Values

Leading Global Businesses

Clear Strategy and Goals

Strong Execution and Performance

Numerous Growth Opportunities

Common Themes of our 2017-2022 Strategic Plan Continue to be a Premier Industrial Technology Company

Product innovation

New applications

Emerging markets

Recapitalize

installed base

Segmentation

Accelerate

organic

growth

Embed Nordson

Business System

Expand margins

Working capital

initiatives

Drive synergies

with acquisitions

Further

optimize our

business

Targeted spaces

Growth and

technology

Cultivate

proprietary deals

Execute and close

deals effectively

Disciplined pricing

Fast integration

Add key

acquisitions

Deepen bench

strength

Leadership

development

Rotational

assignments

Diversity

Enhance

and expand

organization

capability

Deliver top quartile total shareholder returns

Support our communities & good corporate citizenship

Revenue Operating Profit

2017-22 Strategic Plan TargetsFocused initiatives drive premium sales growth and expand profitability

~2x global GDP%

Outpace Revenue

Growth %

Underlying

Markets

Growth

Initiatives

Continuous

Improvement

The Nordson Business System Driving Continuous Improvement Across the Organization

10

Key Performance

Indicators

Growth Initiatives

Price Effectiveness

Cost Reduction Initiatives

Cost of Poor Quality

Customer Delivery

Performance

Days of Sales in Inventory

Productivity

Sales from New Products

Why invest in Nordson?

11

Outstanding Culture and Values

Leading Global Businesses

Clear Strategy and Goals

Strong Execution and Performance

Numerous Growth Opportunities

0

300

600

900

1,200

1,500

1,800

2,100

'06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16

0%

5%

10%

15%

20%

25%

30%

06 07 08 09* 10 11 12 13 14 15 16

12

Strong Top Line Growthorganic and acquisitive

0%

10%

20%

30%

40%

50%

60%

70%

06 07 08 09 10 11 12 13 14 15 16

Industry Leading Gross MarginsConsistently mid 50s and above

Mill

ions o

f $

Financial Highlights

*FY09 excludes non-cash charges for impairment of goodwill and other long-lived assets. FY15 results impacted by significant negative currency translation effects compared to the prior year. source – NDSN SEC filings

Strong Operating MarginsContinuous Improvement Initiatives

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

$5.00

06 07 08 09* 10 11 12 13 14 15 16

EPS Growth Outpaces Sales Growth Over Time

Dilutive effect

of acquisitions

10 Year CAGR = 7.3%

10 Year CAGR = 12.7%

+7.1%

over FY15+0.8 pts

over FY15

+2.7 pts

over FY15

+37.1%

over FY15

Strong Cash Generation Funds Growth and Returns to Shareholders

13

Strong Cash Conversion: 2006-16Free cash flow before dividends = 103% of net income

Cash from Operations: 2006-16> 10% as a % of sales every year

$000

$000

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

Net cash provided by operating activities

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

Free cash flow before dividends Net income

*FY09 excludes non-cash charges for impairment of goodwill and other long-lived assets. FY15 results impacted by significant negative currency translation effects compared to the prior year. source – NDSN SEC filings

$24.8 $30.0

$49.2 $49.1 $66.7

$64.6

$284.4

$293.0

$441.7 $176.3

$186.4

$75.6

$42.7

$1,215.7

$29.8

$33.8

$40.5

$48.4

$54.8

$56.4

$263.7

$138.0

$88.5 $33.4

$166.4

$383.9

$33.4 $843.6

$28.5 $20.2 $25.8 $40.6 $37.7

$21.3 $174.1

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2013 2014 2015 2016 TOTAL

Disciplined Capital Deployment

14

PP&E/Leases

10%

Acquisitions

44%

Dividends

10%

Share Repur.

30%

Working Cap.

6%

40% or $1.1 billion

to shareholders via share repurchases

and dividends

Self funding business model generates excess cash

Low Working Capital Requirements

Low Capital Expenditures (approx. 3% of sales)

Strong free cash

54 consecutive years of dividend increases - 14th among publicly traded companies

$ millions

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

15

Strong Capital Management

Four

Acquisitions

10% Outstanding

Stock Repurchase

$100$22

$905

$57(b)

$173

$343

$100(a)

$257

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

Private

Placement(1)

Term Loan A

EUR(2)

Term Loan A

US(3)

NYLIM Shelf(4) Private

Placement(5)

Syndicated

Revolver(6)

Drawn Available

Net Debt to EBITDA*Strong Cash Generation Lets Nordson

De-lever Quickly

EFD

Acquisition

*Net Debt to EBITDA calculated net of cash

In m

illio

ns $

Acquisitions &

Share

Repurchases

at fiscal years ending 10/31

Debt Positionat 7/31/2017

[€19]

At 7/31/2017

Net Debt to TTM EBITDA = 3.0 times

2.7x including TTM acquired EBITDA

(1) Amortizing-avg rate – 3.04% -Remaining Avg. life – 6.5 years

(2) Term: ~$22m o/s – 3 years (Q4 FY19) at 1.125bps over EUR Libor / EUR denominated

(3) -Term $100m - 3 years (Q2 FY18) at 1.125 bps over USD Libor

-Term $100m - 5 years (Q2 FY20) at 1.25 bps over USD Libor

-Term $305m – 5 years (Q3 FY22) at 137.5 bps over USD Libor

-Term $200m – 3 years (Q3 FY20) at 125 bps over USD Libor

-Term $200m – 18 mos (Q1 FY19) at 112.5 bps over USD Libor

(4) (a) $100m matures Oct 2026 at 125 bps over USD Libor

(b) $57m – 1.80 remaining avg life at 2.36%

(5) Amortizing-avg rate – 3.02% -Remaining Avg. life – 3.77 years

(6) Ends Feb 2020 - 122.5 bps over USD Libor based on Q3 grid

Fiscal Year 2017 3Q Results and 4Q Guidanceas reported in August 21-22, 2017 press release and webcast

16

Nordson Corporation Reports Record Quarterly Revenue, Operating Profit, Diluted EPS

and EBITDA in Third Quarter of Fiscal Year 2017

Sales increase 20 percent from prior year’s third quarter to $589 million, with all three segments contributing to

11 percent organic growth

Operating profit increases 24 percent to $153 million and operating margin improves by 1 percentage point to

26 percent, both compared to the prior year’s third quarter and both inclusive of $6 million of intangible asset

amortization expense for fiscal 2017 acquisitions

GAAP diluted EPS increases 19 percent to $1.74 and adjusted diluted EPS increases 21 percent to $1.78,

both compared to the prior year’s third quarter

EBITDA increases 29 percent to $179 million, EBITDA margin improves 2 percentage points to 30 percent,

and EBITDA per diluted share increases 27 percent to $3.08, all compared to the prior year’s third quarter

Free cash flow before dividends increases 14 percent compared to the prior year’s third quarter to $55 million

Order Rates and Guidance

Pro-forma 12 week order rates decrease 2 percent over same period a year ago

Fourth quarter 2017 guidance: sales expected to increase 4 to 8 percent over prior year; GAAP diluted EPS in the

range of $1.18 to $1.32; EBITDA in the range of $133 to $144 million, or $2.27 to $2.46 per diluted share

See Nordson press release, conference call transcript, presentation Appendix, and SEC filings reconciling adjusted amounts to reported amounts

Why invest in Nordson?

17

Outstanding Culture and Values

Leading Global Businesses

Clear Strategy and Goals

Strong Execution and Performance

Numerous Growth Opportunities

We Win with Unique Competitive AdvantagesCommon across our businesses

Strategic Assets

Customer relationships with leaders

Product breadth

Technology position

Premier brand reputation

Large installed product base

Global footprint (distribution, support)

Balance sheet / ability to scale production

Core Competencies

Application development

Precision manufacturing

Engineering strength

Technical expertise

Direct global sales and service

Customer “touch” / solutions provider

18

Customer Value Proposition

Product reliability = more uptime

Speed = greater productivity and yield

Efficiency = lower material usage

Leading product features = ease of operation

Unmatched global support

Lower Cost of

Ownership

Industrial Coating Systems: durable goods and industrial market focus

Advanced Technology Systems: electronics, medical and industrial market focus

Adhesive Dispensing Systems: consumer non-durable market focus

Every Day You Experience the Value We Bring

19

Nonwovens

20

Adhesive Dispensing Systems

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.

Leader in recession-resistant, consumer non-durable end markets

Targeted organic growth rate: 1.5 to 2x global GDP

Growth Drivers

Increased use of disposable

hygiene products (diapers,

fem care, etc)

Increased use of packaged

convenience foods

Increased use of plastics

Emerging markets

Product tiering

Recapitalization of large

installed base

Productivity investments

Material, machinery and

process innovations

Key End Markets

Food and beverage packaging

Nonwovens / disposable

hygiene / diapers

Furniture and building

products

Macro electronics

General industrial assembly

Alternative energy

Medical devices

Labeling

Transportation

2011-16 Sales CAGR = 7.5%

2011-16 average annual operating margin = 27.7%

Polymer Processing

Packaging

Product Assembly

21

Advanced Technology Systems

What we do: Precision dispensing, fluid management, test, inspection and

surface treatment products for electronics, medical and general industrial markets

Automated Dispensing

Semi Automated Dispensing

Leader in rapidly growing electronics, medical and related markets

Targeted organic growth rate: 2 to 3x global GDP

Growth Drivers

Mobile computing –

smart phones, tablets

Circuit shrinkage / new

architectures / flip chips

Medical needs driven by aging

population

Medical OEM outsourcing

New consumers in emerging

markets

Product tiering

Internet of things

Key End Markets

Semiconductor packaging

Printed circuit board assembly

General electronic assembly

Medical devices

Medical components

General industrial assembly

Automotive electronics

MEMS, sensors, LEDs

Solar

2011-16 Sales CAGR = 9.0%

2011-16 average annual operating margin = 24.2% Test & Inspection

Single Use Fluid Components

Surface Treatment

Industrial Coating Systems

22

What we do: Precision equipment and systems to apply and cure paints, sealants,

coatings, cold materials and other materials to a wide range of products

Leader in consumer durable goods and industrial end markets

Targeted organic growth rate: global GDP+

Growth Drivers

Growth in emerging markets

Environmental advantages of

powder coatings

Glues replacing mechanical

fasteners

Light-weighting of vehicles

Productivity investments

Lean manufacturing

Quick color change

Product tiering

Key End Markets

Appliances

Lawn and garden

Food and beverage

Automotive assembly

Cold material dispensing

Pipe coating and construction

Woodworking

General industrial

Electronics / UV curing

2011-16 Sales CAGR = 6.7%

2011-16 average annual operating margin = 15.1%Container Coating

Powder Coating

Liquid Painting

Cold Material Dispensing

Why invest in Nordson?

23

Outstanding Culture and Values

Leading Global Businesses

Clear Strategy and Goals

Strong Execution and Performance

Numerous Growth Opportunities

0

5

10

15

20

Global GDP NDSN Annual Organic Growth Rate Target

24

Multiple Paths to Organic GrowthAnnual Target is ~2x global GDP

New Products

Recapitalize Installed Base

Emerging Markets

New Applications

Customer Product Changes

48

44

67

62

53

6263

35

45

55

65

75

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

2010 2011 2012 2013 2014 2015 2016

R&D Spend ($ 000) US Patents Granted

Innovation Drives Organic GrowthSteady stream of new products

25

Granted

Emerging Markets Drive Organic GrowthGrowing middle class drives increased consumption

26

baby diapers, disposable hygiene products

packaged foods, beverages, convenience items

appliances and other durable goods

electronic devices

medical products

plastic goods

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

2006 2011 2016

Asia Pacific Americas

Nordson Sales (000s)

• Americas reporting includes Canada, but not US -Asia Pacific excludes Japan -Eastern Europe, Middle East and Africa are reported in Europe and not broken out separately

Biopharmaceuticals

Orthobiologics

Minimally invasive catheters

Bottle labeling

Pipe coating

Flexible packaging

New Applications Drive Organic GrowthLeveraging our expertise – numerous emerging opportunities over last five years

Sensor assembly

LED assembly

MEMS assembly

Wafer level inspection

Wearable electronics

Micro-materials testing

Aerospace assembly

27

Recapitalization Drives Organic GrowthLarge installed base of Nordson products worldwide provides

regular replacement and upgrade opportunities

28

Packaging lines

Nonwovens lines

Powder coating lines

Extrusion & injection molding lines

Electronics assembly lines

-25.0%

-15.0%

-5.0%

5.0%

15.0%

25.0%

35.0%

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

Organic Volume Acquisitions

Acquisitions Drive GrowthHigh quality properties supplement organic growth

29

Current Focus and Recent Transactions

Polymer

Processing

Fluid Mgmt.

(medical)

Test &

InspectionCold Material

Dispense

Core Dispense

Portfolio

Key Criteria

Strategic fit

Strong performers

Growth rate at/above Nordson

High % recurring revenue

Reasonable multiples

Revenue and cost synergies

2006-16: 3.7% average annual growth from acquisitions

pause

during

recession

FY17 YTD Update - Four Transactions AnnouncedAll align with previously articulated strategy

All will become part of Nordson Advanced Technology Systems segment

– further balances segment and adds greater mix of less cyclical end markets

Core electronics fluid dispense

and management

Core industrial, animal

health, and general fluid

packaging & dispense

Medical single use

components and devices

See www.nordson.com/investors for more detail

34

Why invest in Nordson?

31

Outstanding Culture and Values

Leading Global Businesses

Clear Strategy and Goals

Strong Execution and Performance

Numerous Growth Opportunities

Strong Culture and ValuesRooted in the vision of our founders

32

Evan Nord

Eric Nord

“My hope for Nordson is that we continue to be a venturesome

company, operating somewhere out on the leading edge…

we must encourage innovators and entrepreneurs.”

“”To be truly fit, we must exercise our ‘giving’ muscles.”

33

Giving Back - Part of Who We Are~$46 million donated 2006-2016

Employees also volunteer thousands of hours via Time ‘n Talent program

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

Foundation Grants Corporate Donations

34

Investment SummaryProven Model for Long Term Value Creation

Outstanding Culture and Values

Leading Global Businesses

Clear Strategy and Goals

Strong Execution and Performance

Numerous Growth Opportunities

Strong

growth:

organic and

acquisitive

Excellent

operating

margins

Strong cash

returns to

shareholders

Reliable and

consistent

dividend

Outstanding

long term

Total

Shareholder

Returns

High level of

free cash

flow

Outstanding

gross

margins

Financial Appendix

36

THIRD QUARTER PERIOD NORDSON CORPORATION

Period Ending July 31, 2017 FINANCIAL HIGHLIGHTS

(Unaudited) (Dollars in thousands except for per-share amounts)

CONSOLIDATED STATEMENT OF INCOME CONSOLIDATED BALANCE SHEET

Third Quarter Year-to-Date July 31 October 31

2017 2016 2017 2016 2017 2016

Net sales 589,438$ 489,899$ 1,493,044$ 1,299,711$ Cash and marketable securities 110,705$ 67,239$

Cost of sales 263,173 216,679 666,130 581,179 Receivables 498,848 428,560

Selling & administrative expenses 172,799 149,534 494,000 440,964 Inventories 275,705 220,361

Other current assets 34,901 29,415

Operating profit 153,466 123,686 332,914 277,568 Total current assets 920,159 745,575

Interest expense - net (11,038) (4,471) (24,041) (14,989) Property, plant & equipment - net 335,680 273,129

Other income (expense) - net 27 (1,978) (1,452) 551 Other assets 2,219,515 1,401,879

3,475,354$ 2,420,583$

Income before income taxes 142,455 117,237 307,421 263,130

Income taxes 40,999 33,023 91,454 67,154 Notes payable and debt due within one year 127,540$ 40,234$

Accounts payable and accrued liabilities 324,684 291,309

Net Income 101,456$ 84,214$ 215,967$ 195,976$ Total current liabilities 452,224 331,543

Long-term debt 1,569,680 942,771

Other liabilities 369,019 294,666

Return on sales 17% 17% 14% 15% Total shareholders' equity 1,084,431 851,603

Return on average shareholders' equity 28% 44% 45% 37% 3,475,354$ 2,420,583$

Average common shares outstanding (000's) 57,594 57,085 57,495 57,012

Average common shares and

common share equivalents (000's) 58,259 57,616 58,171 57,419

Per share: Other information:

Basic earnings 1.76$ 1.48$ 3.76$ 3.44$

Diluted earnings 1.74$ 1.46$ 3.71$ 3.41$ Employees 7,427 6,104

Dividends paid .27$ .24$ .81$ .72$ Common shares outstanding (000's) 57,692 57,051

Total dividends 15,550$ 13,690$ 46,549$ 41,008$

37

THIRD QUARTER PERIOD NORDSON CORPORATION

Period Ending July 31, 2017 FINANCIAL HIGHLIGHTS

(Unaudited) (Dollars in thousands)

Third Quarter % Growth over 2016 Year-to-Date % Growth over 2016

SALES BY BUSINESS SEGMENT 2017 2016 Volume Currency Total 2017 2016 Volume Currency Total

Adhesive dispensing systems 233,367$ 220,800$ 6.0% -0.3% 5.7% 668,146$ 645,269$ 4.5% -1.0% 3.5%

Advanced technology systems 290,406 205,372 41.8% -0.4% 41.4% 645,907 481,787 35.1% -1.0% 34.1%

Industrial coating systems 65,665 63,727 3.4% -0.4% 3.0% 178,991 172,655 4.9% -1.2% 3.7%

Total sales by business segment 589,438$ 489,899$ 20.7% -0.4% 20.3% 1,493,044$ 1,299,711$ 16.0% -1.1% 14.9%

OPERATING PROFIT BY BUSINESS SEGMENT 2017 2016 2017 2016

Adhesive dispensing systems 66,451$ 60,423$ 185,226$ 173,760$

Advanced technology systems 87,385 63,115 168,054 109,819

Industrial coating systems 13,192 10,612 30,529 25,082

Corporate (13,562) (10,464) (50,895) (31,093)

Total operating profit by business segment 153,466$ 123,686$ 332,914$ 277,568$

Third Quarter % Growth over 2016 Year-to-Date % Growth over 2016

SALES BY GEOGRAPHIC REGION 2017 2016 Volume Currency Total 2017 2016 Volume Currency Total

United States 182,953$ 135,067$ 35.5% - 35.5% 464,569$ 383,720$ 21.1% - 21.1%

Americas 41,604 30,534 35.6% 0.7% 36.3% 107,971 90,823 19.7% -0.8% 18.9%

Europe 133,846 128,583 4.0% 0.1% 4.1% 381,473 374,234 4.2% -2.3% 1.9%

Japan 41,472 34,709 25.4% -5.9% 19.5% 96,504 83,578 16.1% -0.6% 15.5%

Asia Pacific 189,563 161,006 17.9% -0.2% 17.7% 442,527 367,356 21.6% -1.1% 20.5%

Total Sales by Geographic Region 589,438$ 489,899$ 20.7% -0.4% 20.3% 1,493,044$ 1,299,711$ 16.0% -1.1% 14.9%

Year-to-Date

FREE CASH FLOW BEFORE DIVIDENDS 2017 2016 2017 2016

Net income 101,456$ 84,214$ 215,967$ 195,976$

Depreciation and amortization 25,954 17,662 65,366 52,824

Other non-cash charges (8,592) 4,455 3,041 13,213

Changes in operating assets and liabilities (41,991) (38,485) (68,183) (67,279)

Net cash provided by operating activities 76,827 67,846 216,191 194,734

Additions to property, plant and equipment (22,295) (19,931) (49,324) (45,452)

Proceeds from the sale of property, plant and equipment 308 173 3,906 1,044

Free cash flow before dividends 54,840$ 48,088$ 170,773$ 150,326$

Adjustments:

Acquisition costs and adjustments, net of tax (1) 1,597 - 12,564 1,325

Free cash flow before dividends, adjusted 56,437$ 48,088$ 183,337$ 151,651$

(1) Represents one-time costs, net of tax, associated with our 2017 and 2016 acquisitions, including the step up in the value of acquired inventory and acquisition

transaction costs that are required to be expensed as incurred.

Third Quarter Year-to-Date

Third Quarter

38 |

THIRD QUARTER PERIOD NORDSON CORPORATION

Period Ending July 31, 2017 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Unaudited) (Dollars in thousands except for per-share amounts)

EBITDA and EBITDA per diluted share Third Quarter Year-to-Date

2017 2016 2017 2016

Net income 101,456$ 84,214$ 215,967$ 195,976$

Adjustments:

Depreciation and amortization expense 25,954 17,662 65,366 52,824

Interest expense, net 11,038 4,471 24,041 14,989

Income taxes 40,999 33,023 91,454 67,154

EBITDA 179,447$ 139,370$ 396,828$ 330,943$

Adjustments:

Acquisition costs and adjustments (1)

2,252 - 17,898 1,888

EBITDA As Adjusted 181,699$ 139,370$ 414,726$ 332,831$

EBITDA per diluted share 3.08$ 2.42$ 6.82$ 5.76$

EBITDA As Adjusted per diluted share 3.12$ 2.42$ 7.13$ 5.80$

(1) Represents one-time costs associated with our 2017 and 2016 acquisitions, including the step up in the value of acquired inventory and

acquisition transaction costs that are required to be expensed as incurred.

EBITDA and EBITDA per diluted share are non-GAAP financial measures used by management to evaluate the Company's ongoing

operations. 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.

Third Quarter Year-to-Date

2017 2016 2017 2016

Diluted EPS as reported (U.S. GAAP) 1.74$ 1.46$ 3.71$ 3.41$

Short-term inventory purchase accounting adjustments 0.02 - 0.05 0.02

Acquisition costs 0.01 - 0.17 -

Severance and restructuring 0.01 0.02 0.02 0.05

Litigation settlement - - - (0.01)

Discrete tax items - (0.03) 0.04 (0.19)

Other pre-tax items related to discrete tax benefits - 0.02 - (0.01)

Diluted EPS as adjusted (Non-GAAP) 1.78$ 1.47$ 3.99$ 3.27$

Adjusted Diluted 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. Our calculations of this non-GAAP financial

measure may not be comparable to the calculations of similarly titled measures reported by other companies.

39

NORDSON CORPORATION

ORDER RATES FOR 12-WEEK PERIOD ENDING AUGUST 13, 2017

CHANGE FROM PRIOR YEAR

BUSINESS SEGMENT % CHANGE GEOGRAPHY % CHANGE

Adhesive dispensing systems -1% United States -6%

Advanced technology systems -3% Americas 5%

Industrial coating systems -4% Europe 12%

Japan -20%

Total -2% Asia Pacific -6%

Total -2%

Notes:

1. Numbers in this table are unaudited and exclude the effects of currency movements.

2. Pro-forma changes in order rates were calculated as though our 2017 and 2016 acquisitions

were owned in both years.

40

-30%

-20%

-10%

0%

10%

20%

30%

$ .11 (.10) .18 .29 (.23) .15 .16 (.11) (.09) (.06) (.54) (.19)

Appendix: Currency Impact Annual Sales Growth and EPS

Volume Growth

Currency Effect

EPS Currency Effect

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ‘16

Numbers as reported and do not factor in stock splits

1% impact on revenue due to FX equals approximately 2.5% impact on EPS