Exclusive Interview With The President And CEO: Nordson Corporation (NDSN) - Michael F. Hilton

Wall Street Transcript

67 WALL STREET, New York - July 10, 2012 - The Wall Street Transcript has just published its Electronic Components Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Electronics Manufacturing Supply Chain - Secular Connector Demand Growth - Automotive, Data Center and Mobile Spending - Component Price Erosion

Companies include: AVX Corp. (AVX); Arrow Electronics (ARW); RELM Wireless Corporation (RWC); T-Mobile (DTE.DE); and many more.

In the following brief excerpt from the Electronic Components Report, expert analysts discuss the outlook for the sector and for investors.

Michael F. Hilton has been President and Chief Executive Officer of Nordson Corporation since January 2010. Prior to joining Nordson, Mr. Hilton spent 33 years at Air Products & Chemicals, Inc., in a variety of roles of increasing responsibility. Immediately before joining Nordson, Mr. Hilton served as Senior Vice President and General Manager for Air Products with specific responsibility for leading its $2 billion global electronics and performance materials segment. He was also responsible for leading the company's environment, health and safety, continuous improvement and customer engagement organizations, and he served as a member of the company's corporate executive committee. He serves on the board of directors of Ryder System Inc. and he is a member of the Manufacturers Alliance for Productivity and Innovation. Mr. Hilton holds a B.S. in chemical engineering and an MBA from Lehigh University.

TWST: Briefly describe Nordson with an overview and its history, and what the company is doing today.

Mr. Hilton: We think of Nordson (NDSN)as an industrial technology company, so each market and geography that we operate in, we are bringing a precision solution to solve the set of customer problems. In our adhesives business, that could be bringing a technology that allows customers to operate their diaper manufacturing lines faster or to add more features to their lines as an example.In the case of our technology business, it might be allowing the smartphones to pack more capability into the same geographic footprint.In the case of our coatings business, it might be something like speeding up the time it takes to convert from one color to another, if you are painting some office furniture as an example.In our medical space, it might be supporting new therapies and new ways of doing things, like adhesive dispensing to replace sutures in the operating room. Those are the kinds of things that we bring.So in all our different end markets and geographies, and we operate in 38 countries around the world, we bring a technology that's a precision solution to customers that in the end, makes them more productive and efficient and reduces significantly their cost of ownership.

TWST: What is Nordson's value proposition?

Mr. Hilton: If you really think about it, the last point that I mentioned, everything that we do is focused on lowering their cost of ownership, and it starts with supplying them with the most reliable products. And what does that do for them? It gives them more uptime. You can think about that as more on-stream time and less maintenance.Secondly, for many of our customer's operations, speed is important. Our products and technology impact how fast they operate their production lines, so we typically give them more productivity and ultimately more yield. So out of the same capital investment, they get more products out. The third element that we give them is typically efficiency, and this applies mainly to the dispensing part of our business, which is about 75% or 80% of our company. And that means they can use less dispense material, which tends to be a very, very valuable material. If we can get them the same performance using less material, that's a big advantage.And then finally, if they're trying to do something new, if they're trying to add leading edge features, we are typically the one that they come to to do that. So when you add all that up, we are significantly reducing their cost of ownership, and that's really at the heart of what we do as an industrial technology solutions provider.

TWST: Who do you see as your customers and how do you sell to that customer base?

Mr. Hilton: We really sell to two groups of customers. One group we sell to is the end users. These might be folks like the cellphone manufacturers or, as I said earlier, the diaper manufacturers or the office products companies. Oftentimes the ultimate value we provide is going to end up with those end customers, so we need to make sure they understand our cost of ownership value proposition appropriately. But we also sell to the OEM chain in parallel. Our equipment typically gets integrated into the OEMs' broader supply. For example, we might sell three or four critical components that get integrated into a large packaging line that is being put together by the OEM, who then ultimately sells that line to the end user. Now, the value proposition that we bring to the OEM is also leading technology and support on that design and integration - and it's support on installation at the end user locations around the world, because we are everywhere. That's important. We continue to support that end user over the life of the equipment with ongoing service and critical replacement parts. So we effectively manage and support both of those customer bases because that's what's critical to provide the best ultimate solution.

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