Donaldson Company Inc (DCI) 2022 Q4 法說會逐字稿

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Donaldson Company's Fourth Quarter and Full Year 2022 Earnings Conference Call. (Operator Instructions). I would now like to turn the call over to Sarika Dhadwal, Director of Investor Relations. Please go ahead.

早上好，女士們，先生們。謝謝你的支持。歡迎參加唐納森公司 2022 年第四季度和全年收益電話會議。 （操作員說明）。我現在想將電話轉給投資者關係總監 Sarika Dhadwal。請繼續。

Good morning. Thank you for joining Donaldson's Fourth Quarter and Full Year Fiscal 2022 Earnings Conference Call. With me today are Tod Carpenter, Chairman, CEO and President; and Scott Robinson, Chief Financial Officer. This morning, Tod and Scott will provide a summary of our fourth quarter performance, and details on our outlook for fiscal 2023. New and beginning this quarter, we are also providing investors with a supplemental quarterly earnings presentation summarizing our results and outlook, which can be found on our Investor Relations website at ir.donaldson.com.

早上好。感謝您參加唐納森 2022 財年第四季度和全年收益電話會議。今天和我在一起的是董事長、首席執行官兼總裁 Tod Carpenter；和首席財務官 Scott Robinson。今天早上，Tod 和 Scott 將提供我們第四季度業績的摘要，以及我們對 2023 財年展望的詳細信息。從本季度開始，我們還將向投資者提供補充季度收益報告，總結我們的業績和展望，這可以可在我們的投資者關係網站 ir.donaldson.com 上找到。

As a reminder, during today's call, we will reference non-GAAP metrics. A reconciliation of GAAP to non-GAAP metrics is provided within the schedules attached to this morning's press release. Additionally, please keep in mind that any forward-looking statements made during this call are subject to risks and uncertainties, which are described in our press release and SEC filings.

提醒一下，在今天的電話會議中，我們將參考非 GAAP 指標。今天上午新聞稿所附的時間表中提供了 GAAP 與非 GAAP 指標的對賬。此外，請記住，在本次電話會議期間所做的任何前瞻性陳述都存在風險和不確定性，這些風險和不確定性在我們的新聞稿和 SEC 文件中有所描述。

With that, I'll now call over to Tod Carpenter. Please go ahead.

有了這個，我現在打電話給 Tod Carpenter。請繼續。

Thanks, Sarika. Good morning, everyone. Fiscal 2022 was a challenging year given the macroeconomic and geopolitical environment, and I'm really proud of the way our team rallied together in support of our mission of advancing filtration for a cleaner world. We ended the year with revenue over $3 billion, including a $1 billion contribution from our industrial business. Adjusted earnings per share were $2.68 and in line with our most recent guidance. We also returned $281 million to shareholders in the form of dividends and share buybacks.

謝謝，薩里卡。大家，早安。鑑於宏觀經濟和地緣政治環境，2022 財年是充滿挑戰的一年，我為我們的團隊團結一致支持我們推進過濾以打造更清潔世界的使命感到非常自豪。到年底，我們的收入超過 30 億美元，其中包括來自我們工業業務的 10 億美元貢獻。調整後每股收益為 2.68 美元，符合我們最近的指引。我們還以股息和股票回購的形式向股東返還了 2.81 億美元。

We lived up to our principle of enriching our communities throughout the year and gave back, for example, donating to the relief efforts in Eastern Europe and delivering meals to our employees in Shanghai during the recent COVID-19 lockdowns. We also achieved our fiscal 2022 ESG goal of reducing our CO2 emissions by 6,000 metric tons, representing a 5% reduction from the 2019 baseline.

我們全年恪守讓社區富足的原則，並回饋社會，例如，在最近的 COVID-19 封鎖期間，為東歐的救援工作捐款，並為我們在上海的員工送餐。我們還實現了 2022 財年的 ESG 目標，即減少 6,000 公噸的二氧化碳排放量，比 2019 年的基線減少 5%。

We invested for our future across several areas. In our customers through our research and development and capacity expansions and our long-term profitable growth through our Advance and Accelerate portfolio, including acquisitions, particularly in the Life Sciences sector, and in our team, including the addition of new leadership positions supporting ESG and diversity, equity and inclusion.

我們在多個領域為我們的未來進行了投資。通過我們的研發和產能擴張在我們的客戶中，通過我們的 Advance and Accelerate 投資組合（包括收購，特別是在生命科學領域）和我們的團隊中，包括增加支持 ESG 和多樣性、公平性和包容性。

Now on the fourth quarter. We closed the year strong. Sales were up 15% with a pricing contribution of 12% and a negative impact from currency translation of approximately 7%. Adjusted EPS of $0.84 was up 27% versus the prior year despite ongoing inflation and supply chain-related headwinds.

現在在第四季度。我們以強勁的勢頭結束了這一年。銷售額增長了 15%，定價貢獻為 12%，貨幣換算的負面影響約為 7%。儘管通貨膨脹和供應鏈相關的不利因素持續存在，但調整後的每股收益為 0.84 美元，較上年增長 27%。

Touching on pricing for a moment. As we have been talking about the last several quarters, our efforts aimed at offsetting increased input costs have been one of our main focus areas. While we have made significant progress in achieving the appropriate levels of price across most of our customer base, in some areas we have more work to do.

談一談定價。正如我們在過去幾個季度一直在談論的那樣，我們旨在抵消增加的投入成本的努力一直是我們的主要關注領域之一。雖然我們在為大多數客戶群實現適當的價格水平方面取得了重大進展，但在某些領域我們還有更多工作要做。

Moving to the operational and supply chain side, the challenges we have been facing throughout the year continue. However, in fourth quarter, we began to see some areas of stabilization, including pockets of commodity cost leveling, albeit at high levels and a slight easing of global logistics and labor pressures. With that, we started to move back to relocalizing our manufacturing and capitalizing on our region-for-region strategy. Aided by these dynamics, we are seeing some reductions in our late backlog and improvements in our fill rates. While encouraging, we view these recent trends as fragile and are cautiously optimistic regarding their sustainability.

轉向運營和供應鏈方面，我們全年面臨的挑戰仍在繼續。然而，在第四季度，我們開始看到一些穩定的領域，包括一些商品成本水平，儘管處於高水平，全球物流和勞動力壓力略有緩解。有了這個，我們開始重新定位我們的製造並利用我們的區域對區域戰略。在這些動態的幫助下，我們看到後期積壓訂單有所減少，填充率有所提高。雖然令人鼓舞，但我們認為這些最近的趨勢很脆弱，並對它們的可持續性持謹慎樂觀的態度。

In fourth quarter, we continued to lay the foundation for our future growth, pursuing organic and inorganic opportunities to ensure we remain the leader in technology-led filtration. In June, we announced the acquisition of Purilogics, another pearl in our string of pearls Life Sciences strategy aimed at creating a comprehensive solution offering across the upstream and downstream bioprocessing value chain for biopharmaceutical and food and beverage products.

在第四季度，我們繼續為未來的增長奠定基礎，尋求有機和無機機會，以確保我們在以技術為主導的過濾領域保持領先地位。 6 月，我們宣布收購 Purilogics，這是我們生命科學戰略中的另一顆明珠，旨在為生物製藥和食品飲料產品的上下游生物加工價值鏈提供全面的解決方案。

Purilogics novel membrane chromatography technology platform, which provides advantages over traditional resin and bead chromatography along with our membrane expertise, global sales and manufacturing footprint will allow Donaldson to bring a broad portfolio of purification tools to the market for a wide range of biologics. I'm excited to welcome the Purilogics' team to Donaldson and look forward to reporting on our progress in the future.

Purilogics 新型膜層析技術平台提供優於傳統樹脂和珠層層析的優勢以及我們的膜專業知識、全球銷售和製造足跡，這將使唐納森能夠為廣泛的生物製劑市場帶來廣泛的純化工具組合。我很高興歡迎 Purilogics 團隊加入唐納森，並期待在未來報告我們的進展。

Now, I will provide some segment context on our fourth quarter sales. Total company sales were $890 million, up 15% from last year.

現在，我將提供一些關於我們第四季度銷售的細分背景。公司總銷售額為 8.9 億美元，比去年增長 15%。

In Engine, total sales were $620 million, up about 18%.

在引擎方面，總銷售額為 6.2 億美元，增長約 18%。

Sales in Off-Road of $108 million were up 21%, with growth in all major regions, driven by continued high levels of equipment production and significant growth in our Exhaust and Emissions business in Europe.

在設備生產持續高水平以及我們在歐洲的排氣和排放業務顯著增長的推動下，越野車的銷售額增長了 1.08 億美元，增長了 21%，所有主要地區都實現了增長。

On-Road sales of $35 million were up 5% from the prior year. Excluding currency, sales were up in all major regions with the exception of Asia Pacific, where general market weakness continues to weigh on results. Overall, On-Road growth was positive in the quarter as we began lapping the discontinuation of some directed-by equipment to a large OEM customer in North America. That said, supply chain challenges, including chip shortages are improving more modestly in this segment and limiting growth.

公路上的銷售額為 3500 萬美元，比上年增長 5%。除匯率因素外，所有主要地區的銷售額均有所增長，但亞太地區除外，該地區普遍的市場疲軟繼續對業績造成壓力。總體而言，本季度公路增長是積極的，因為我們開始將一些直接由設備停產給北美的大型 OEM 客戶。也就是說，包括芯片短缺在內的供應鏈挑戰在這一領域的改善較為溫和，並限制了增長。

In Engine Aftermarket, sales were $442 million, an increase of 18%. Both the OE and independent channels were up double digits. Proprietary product performance continues to be a very important driver and fourth quarter Aftermarket sales of PowerCore were up 30% year-over-year, in line with performance in the third quarter. On the independent side of the Engine Aftermarket, we continue to build our presence and see encouraging growth rates in underpenetrated markets such as Mexico and Brazil.

在發動機售後市場，銷售額為 4.42 億美元，增長 18%。 OE 和獨立渠道均增長了兩位數。專有產品性能仍然是一個非常重要的驅動因素，PowerCore 的第四季度售後市場銷售額同比增長 30%，與第三季度的業績一致。在發動機售後市場的獨立方面，我們繼續擴大影響力，並在墨西哥和巴西等滲透不足的市場看到令人鼓舞的增長率。

In Aerospace and Defense, sales of $35 million were up 21% year-over-year with strength in replacement parts as we continue to benefit from the recovering commercial aerospace industry and market share gains.

在航空航天和國防領域，隨著我們繼續受益於商業航空航天業的複蘇和市場份額的增長，替換零件的銷售額為 3500 萬美元，同比增長 21%。

Before moving on to industrial, a comment on our Engine business in China. China Engine sales were down 6% versus the prior year and down 2% in constant currency. Overall market weakness, including that stemming from the COVID-19 lockdowns, which resulted in plant closures for 2 weeks in the quarter, negatively impacted results. While our business in China will certainly continue to be impacted by the overall market trends, I remain optimistic and excited about our future growth prospects in country, and we remain committed to growing share.

在進入工業領域之前，先談談我們在中國的發動機業務。中國發動機銷量同比下降 6%，按固定匯率計算下降 2%。整體市場疲軟，包括因 COVID-19 封鎖導致工廠在本季度關閉 2 週，對業績產生負面影響。雖然我們在中國的業務肯定會繼續受到整體市場趨勢的影響，但我仍然對我們在中國的未來增長前景保持樂觀和興奮，我們仍然致力於擴大份額。

Now turning to the industrial segment. Industrial sales increased 10% to $270 million. Sales of Industrial Filtration Solutions, or IFS, grew 14% to $196 million, mainly driven by industrial dust collection, new equipment and replacement parts. Our Process Filtration business also delivered robust sales benefiting from new program wins. This business hit an important milestone for the full year, delivering approximately $100 million in sales excluding the impact from currency translation.

現在轉向工業領域。工業銷售額增長 10% 至 2.7 億美元。工業過濾解決方案 (IFS) 的銷售額增長 14% 至 1.96 億美元，主要受工業除塵、新設備和更換零件的推動。我們的工藝過濾業務也受益於新項目的勝利，實現了強勁的銷售。該業務在全年達到了一個重要的里程碑，不包括貨幣換算的影響，銷售額約為 1 億美元。

Fourth quarter sales of Gas Turbine Systems, or GTS, were approximately $34 million reflecting a 39% increase, bolstered by the timing of replacement part sales in EMEA. Sales of Special Applications were $40 million down 17% as the COVID-19 shutdowns in China continued to dampen Disk Drive sales. Importantly, our venting product sales, which fall within Special Applications were up as customers expand the use of our high-tech vents for batteries and powertrains in the auto industry. This is a key strategic area for Donaldson given the opportunities that lie ahead in this rapidly expanding market.

燃氣輪機系統 (GTS) 第四季度的銷售額約為 3400 萬美元，增長了 39%，這得益於歐洲、中東和非洲地區更換零件銷售的時機。由於中國的 COVID-19 停工繼續抑制磁盤驅動器的銷售，特殊應用的銷售額下降了 4000 萬美元，下降了 17%。重要的是，隨著客戶擴大我們的高科技通風口在汽車行業的電池和動力總成的使用，我們屬於特殊應用的通風產品銷售量有所上升。鑑於這個快速擴張的市場中蘊含的機遇，這是唐納森的一個關鍵戰略領域。

In conclusion, our fourth quarter sales and earnings were a high watermark in the company's history, and I look forward to carrying that underlying momentum forward into fiscal 2023. Although there are many puts and takes as we think about our outlook for 2023, which Scott will discuss in a minute, we are forecasting another year of record revenue and record earnings. Importantly, we are also expecting year-over-year gross margin expansion in addition to a full year operating margin, which is forecasted to be a multi-decade high.

總之，我們第四季度的銷售額和收益是公司歷史上的一個高水位，我期待著將這種潛在的勢頭延續到 2023 財年。儘管在我們考慮 2023 年的前景時有很多看跌期權，斯科特將在一分鐘內討論，我們正在預測另一年創紀錄的收入和創紀錄的收益。重要的是，除了全年營業利潤率預計將達到數十年來的最高水平，我們還預計毛利率將同比增長。

Now I will turn it over to Scott for more details on the financials and our outlook for fiscal '23. Scott?

現在，我將把它交給斯科特，以了解有關財務狀況和我們對 23 財年展望的更多詳細信息。斯科特?

Thanks, Tod. Good morning, everyone. I want to start by thanking our Donaldson employees around the globe. I am impressed with how our teams came together and once again delivered a solid year. I am also excited about what is yet to come as we look to fiscal 2023. Before talking through the details on fiscal 2023, I will add some color to fourth quarter results. My comments to follow will focus on adjusted or non-GAAP results, which exclude charges related to the termination of our operations in Russia. These charges totaled $3.4 million pretax and include write-offs for outstanding receivables and customer-specific inventory. Also included are restructuring charges related to the closing of our office in Russia.

謝謝，托德。大家，早安。首先，我要感謝我們在全球的唐納森員工。我對我們的團隊如何齊心協力並再次創造了堅實的一年印象深刻。當我們展望 2023 財年時，我也對即將發生的事情感到興奮。在討論 2023 財年的細節之前，我將為第四季度的業績增添一些色彩。我接下來的評論將集中在調整後或非公認會計原則的結果上，其中不包括與終止我們在俄羅斯的業務相關的費用。這些費用稅前總額為 340 萬美元，其中包括未清應收賬款和客戶特定庫存的沖銷。還包括與關閉我們在俄羅斯的辦事處相關的重組費用。

To summarize the quarter, sales grew 15%. Operating income was up approximately 19%, and EPS of $0.84 increased 27% year-over-year. Operating margin of 14.9% was up 40 basis points versus prior year as operating expense leverage outweighed gross margin pressure.

總結本季度，銷售額增長了 15%。營業收入增長約 19%，每股收益為 0.84 美元，同比增長 27%。由於運營費用槓桿超過了毛利率壓力，營業利潤率為 14.9%，比上年增長 40 個基點。

Gross margin of 32.9% improved 140 basis points sequentially. However, this represents a 150 basis point decline versus prior year. While our pricing is now offsetting more persistent inflation such as that of commodities and freight, other more transitionary factors such as inefficiencies, labor turnover and training costs as well as sales mix, dampened margins.

毛利率為 32.9%，環比提高 140 個基點。然而，這比去年下降了 150 個基點。雖然我們的定價現在正在抵消更持久的通脹，如商品和貨運，但其他更具過渡性的因素，如效率低下、勞動力流動和培訓成本以及銷售組合，抑制了利潤率。

Operating expenses as a percent of sales was 18.0%, favorable by almost 200 basis points over prior year, driven primarily by leverage on higher sales.

營業費用佔銷售額的百分比為 18.0%，比去年增加了近 200 個基點，這主要是由於銷售額增加的槓桿作用。

I'll now briefly talk about fourth quarter segment profitability.

我現在將簡要談談第四季度的盈利能力。

For the first time this fiscal year, Engine pretax profit margin at 16.6% was up 90 basis points year-over-year as our pricing efforts throughout the year began to offset cost pressure in the segment.

本財年發動機稅前利潤率首次達到 16.6%，同比增長 90 個基點，因為我們全年的定價努力開始抵消該領域的成本壓力。

On the industrial side, pretax profit margin was 17.8%, up 50 basis points versus prior year, rebounding from a year-over-year decline in the third quarter. As a reminder, our 3 fiscal 2022 acquisitions, Solaris, PAIS and Purilogics fall into this segment. The integration of these 3 businesses is going well. We are continuing to invest in their growth and look forward to seeing them scale.

工業方面，稅前利潤率為 17.8%，較去年同期上升 50 個基點，從第三季度的同比下降中反彈。提醒一下，我們在 2022 財年進行的 3 次收購，Solaris、PAIS 和 Purilogics 都屬於這一領域。這三項業務的整合進展順利。我們將繼續投資於他們的成長，並期待看到他們擴大規模。

Now turning to the balance sheet and cash flow statements. Our free cash flow this quarter was pressured by elevated working capital primarily driven by higher receivables from increased sales.

現在轉向資產負債表和現金流量表。我們本季度的自由現金流受到營運資金增加的壓力，主要是由於銷售增加導致應收賬款增加。

Inventory, while still elevated, was less of a story in the quarter. We have begun to see some sequential stabilization in the global supply chain and continue to work towards increased efficiency. Fourth quarter capital expenditures were $28 million, mainly driven by investments in capacity expansion, particularly in North America.

庫存雖然仍處於高位，但在本季度並不是什麼大問題。我們已經開始看到全球供應鏈的一些連續穩定，並繼續努力提高效率。第四季度資本支出為 2800 萬美元，主要受產能擴張投資推動，尤其是在北美。

Cash conversion in the quarter was approximately 80% versus about 40% through the first 9 months of the year as we are beginning to return to more normalized levels of conversion resulting from inventory leveling. In terms of capital deployment, we paid about $20 million on the Purilogics acquisition and returned $45 million to shareholders with $28 million in the form of dividends and $17 million in share repurchases.

本季度的現金轉換率約為 80%，而今年前 9 個月的現金轉換率約為 40%，因為我們開始恢復到由庫存平衡導致的更正常化的轉換水平。在資本配置方面，我們為收購 Purilogics 支付了約 2000 萬美元，並以 2800 萬美元的股息和 1700 萬美元的股票回購形式向股東返還了 4500 萬美元。

Our balance sheet remains in great shape as we close the year with a net debt-to-EBITDA ratio of 0.8x. The strength of our balance sheet, combined with ample liquidity will allow us to continue pursuing our strategic objectives in 2023 and beyond.

我們的資產負債表保持良好狀態，因為我們以 0.8 倍的淨債務與 EBITDA 比率結束了這一年。我們資產負債表的實力加上充足的流動性將使我們能夠在 2023 年及以後繼續追求我們的戰略目標。

Now I'll walk through our fiscal '23 outlook, beginning with sales. We expect our fiscal 2023 sales to be up within a range of between 1% and 5%, which includes a negative impact from currency translation of about 4%. The currency impact of Engine and Industrial is expected to be similar. Also included in our sales guidance is a pricing benefit of about 6%. To add some color on pricing and sales, in fiscal 2022, the pricing impact on the second half of the year was twice what it was in the first half as actions taken throughout the year layered in. Therefore, 2023 pricing benefits will decrease as we begin to lap the prior year's actions, resulting in stronger gains earlier in the year.

現在，我將從銷售開始介紹我們的 23 財年展望。我們預計我們 2023 財年的銷售額將增長 1% 至 5%，其中包括約 4% 的貨幣換算的負面影響。預計發動機和工業的貨幣影響將相似。我們的銷售指南中還包括約 6% 的定價優勢。為了給定價和銷售增添一些色彩，在 2022 財年，由於全年採取的行動層出不窮，對下半年的定價影響是上半年的兩倍。因此，2023 年的定價收益將隨著我們減少開始重複上一年的行動，從而在今年早些時候實現了更強勁的收益。

For Engine, we expect a revenue increase between 0% and 4%, driven by growth in Aftermarket and Aerospace and Defense. We are forecasting mid-single-digit growth in both of these businesses while lapping strong fiscal 2022 results. In Engine Aftermarket, robust demand driven by continued high levels of vehicle utilization and market share gains in less material geographies are expected to contribute to growth. Aerospace and Defense sales are expected to be supported by the strengthening commercial aerospace industry, which still has plenty of runway and remains below pre-COVID levels.

對於發動機，我們預計在售後市場和航空航天和國防增長的推動下，收入將增長 0% 至 4%。我們預測這兩項業務的中位數增長，同時在 2022 財年取得強勁的業績。在發動機售後市場，由持續高水平的車輛利用率和市場份額增長推動的強勁需求預計將有助於增長。航空航天和國防銷售預計將得到不斷加強的商業航空航天工業的支持，該工業仍有大量跑道，仍低於 COVID 之前的水平。

For Off-Road and On-Road, sales are forecasted to be down low single digits due in part to the strategic exiting of certain low-margin programs in both businesses. As we think about the company's profitability and customer portfolio management, we are committed to focusing on higher-margin opportunities that better reflect the value we bring to customers and are becoming more selective in the projects we engage in. While this might have a short-term negative impact on sales, we believe this is the right strategy for increasing profits on increasing sales over time.

對於越野和公路，預計銷售額將下降個位數，部分原因是這兩個業務中某些低利潤項目的戰略退出。當我們考慮公司的盈利能力和客戶組合管理時，我們致力於專注於能夠更好地反映我們為客戶帶來的價值的更高利潤率的機會，並且在我們參與的項目中變得更具選擇性。長期對銷售產生負面影響，我們認為這是隨著時間的推移增加銷售額來增加利潤的正確策略。

A few other factors driving our expectations in these 2 businesses are: within Off-Road, our Exhaust and Emissions business is forecasting to slow as volumes related to new Emissions programs are believed to have peaked in fiscal 2022, now returning to a more normal run rate. Within On-Road, sales will likely be range bound due to continued supply chain issues, including chip shortages.

推動我們對這兩項業務的預期的其他一些因素是：在越野領域，我們的排氣和排放業務預計將放緩，因為據信與新排放計劃相關的數量已在 2022 財年達到頂峰，現在恢復到更正常的運行速度。在 On-Road 中，由於持續的供應鏈問題（包括芯片短缺），銷售可能會受到限制。

Now I'll walk through the Industrial segment, where we expect sales growth of 3% to 7%, led by strength in IFS. IFS sales are projected to increase high single digits driven by continued dust collection and Process Filtration product demand and contributions from our 3 fiscal 2022 acquisitions.

現在我將介紹工業領域，在 IFS 的強勢帶動下，我們預計銷售額將增長 3% 至 7%。由於持續的除塵和工藝過濾產品需求以及我們 2022 財年 3 次收購的貢獻，IFS 銷售額預計將增長高個位數。

GTS sales are projected to increase low single digits year-over-year. Special Applications growth is forecast to be flat versus the prior year. APAC market weakness is expected to continue to impact sales, including Disk Drive sales, which will likely still be pressured through the first half of the year.

GTS 銷售額預計將同比增長低個位數。預計特殊應用的增長將與去年持平。預計亞太地區市場疲軟將繼續影響銷售，包括磁盤驅動器的銷售，可能在今年上半年仍將面臨壓力。

Now I'll move on to our margin outlook. We are forecasting an operating margin range between 14.5% and 15.1%, up from 13.5% in fiscal 2022. Operating margin is expected to be stronger in the second half of the year, driven by gross margin expansion and operating expense leverage. As we move through fiscal 2023, expense discipline will be critical for the company as we manage through a potential recessionary environment, but also strategically invest for the future.

現在我將繼續討論我們的利潤率展望。我們預計營業利潤率在 14.5% 至 15.1% 之間，高於 2022 財年的 13.5%。在毛利率擴張和營業費用槓桿的推動下，預計下半年營業利潤率將走強。隨著我們進入 2023 財年，費用紀律對公司至關重要，因為我們要在潛在的衰退環境中進行管理，同時也要為未來進行戰略投資。

Moving to EPS. We expect a range between $2.91 and $3.07, which at the midpoint represents an approximate 11% increase versus fiscal 2022.

轉向 EPS。我們預計價格區間在 2.91 美元至 3.07 美元之間，中點比 2022 財年增長約 11%。

Now on to our balance sheet and cash flow outlook. As we work towards increased inventory efficiency, we expect working capital to be a source of cash. Driving cash conversion in the range of between 110% and 125%, a higher-than-historical average year.

現在談談我們的資產負債表和現金流展望。隨著我們努力提高庫存效率，我們預計營運資金將成為現金來源。推動現金轉換率在 110% 至 125% 之間，高於歷史平均水平。

Capital expenditures weighted towards our long-term growth initiatives are forecast to be between $115 million and $135 million, including investments in tooling and equipment for new products and technology, maintenance and infrastructure investments, capacity expansion and continuous improvement projects for safety, quality and margin improvement.

用於我們長期增長計劃的資本支出預計在 1.15 億美元至 1.35 億美元之間，包括對用於新產品和技術的工具和設備的投資、維護和基礎設施投資、產能擴張以及安全、質量和利潤方面的持續改進項目改進。

As we think about our capital deployment framework for fiscal 2023, our priorities have not changed. We are committed to maintaining our disciplined and strategic approach to M&A with a focus on expanding in Life Sciences markets as well as returning capital to shareholders through dividends and share repurchases.

當我們考慮 2023 財年的資本部署框架時，我們的優先事項沒有改變。我們致力於維持我們嚴謹和戰略性的併購方式，重點是擴大生命科學市場以及通過股息和股票回購向股東返還資本。

Now I'll turn the call back to Tod.

現在我會把電話轉回給 Tod。

Thanks, Scott. As we embark on the new fiscal year, I am optimistic and confident in the company's path forward. The opportunities that lie ahead, both within our current core businesses and in our newer, less mature, but higher-margin businesses are abundant. And we have the talent, capabilities and resources to capitalize on them, pushing Donaldson to the next stage of its evolution. In fiscal 2023, our investments in our customers, our people and our communities will continue. With all of that said, I would be remiss if I did not touch on the recessionary concerns that are top of mind for all of us.

謝謝，斯科特。隨著我們開始新的財政年度，我對公司的前進道路充滿信心和信心。無論是在我們當前的核心業務中，還是在我們較新的、不太成熟但利潤率更高的業務中，未來的機會都很豐富。我們擁有可以利用它們的人才、能力和資源，推動唐納森進入下一個發展階段。在 2023 財年，我們將繼續對客戶、員工和社區進行投資。綜上所述，如果我沒有談到我們所有人最關心的經濟衰退問題，那我就是失職了。

At Donaldson, over our long history, we have been well positioned to withstand economic downturns and recessions, have come out on the other side and our playbook approach is proven.

在唐納森，在我們悠久的歷史中，我們已經做好了抵禦經濟衰退和衰退的準備，已經走出了另一邊，我們的劇本方法得到了證明。

First, cement our position as a leader in technology-led filtration by meeting customer demand as we work down our backlogs and inventory, utilizing our global and growing footprint to circumvent any supply chain issues.

首先，通過在我們減少積壓和庫存的同時滿足客戶需求，利用我們的全球和不斷增長的足跡來規避任何供應鏈問題，從而鞏固我們作為以技術為主導的過濾領域的領導者的地位。

Second, capitalize on our more resilient business such as our replacement parts businesses and growth areas such as Process Filtration and our high-tech vents for batteries and powertrains.

其次，利用我們更具彈性的業務，例如我們的更換零件業務和增長領域，例如工藝過濾以及我們用於電池和動力總成的高科技通風口。

Third, judiciously manage costs to ensure our expense base aligns with our top line results.

第三，明智地管理成本，以確保我們的費用基礎與我們的最高業績保持一致。

Fourth, utilize our strong balance sheet, which allows to invest even in an economic downturn to pursue key opportunities in strategically important areas such as our Advance and Accelerate businesses and the Life Sciences sector.

第四，利用我們強大的資產負債表，即使在經濟低迷時期也可以進行投資，以在我們的 Advance and Accelerate 業務和生命科學領域等戰略重要領域尋求關鍵機會。

In closing, while there is, once again, a lot of uncertainty heading into the fiscal year, we feel well prepared for what lies ahead and look forward to improving the company's profitability profile and adding another year of record sales and record earnings to the long history of Donaldson. Our team showed tremendous resilience in fiscal 2022, and our agility will be a key asset in fiscal 2023.

最後，雖然進入本財年再次面臨很多不確定性，但我們為未來做好了充分的準備，並期待改善公司的盈利狀況，並在長期業績中再創歷史新高。唐納森的歷史。我們的團隊在 2022 財年表現出了巨大的韌性，而我們的敏捷性將成為 2023 財年的關鍵資產。

Now I'll turn the call back to the operator to open the line questions.

現在我將把電話轉回接線員以打開線路問題。

(Operator Instructions) First question comes from Bryan Blair from Oppenheimer.

（操作員說明）第一個問題來自 Oppenheimer 的 Bryan Blair。

I was hoping you could parse it out for us what you're contemplating in terms of first versus second half volume in your '23 sales guidance? Price impact is reasonably straightforward in terms of the carryover and cadence throughout the year. You've called out potential recessionary impact. And that must be factored in, in some regard. I guess, to be direct, are you assuming that volume goes negative in the back half? Or was that in your current guidance?

我希望你能為我們解析一下你在 23 年銷售指南中對上半年和下半年的預期？就全年的結轉和節奏而言，價格影響相當簡單。你已經提到了潛在的衰退影響。在某些方面，這必須考慮在內。我想，直截了當，您是否假設後半部分的成交量為負數？還是在您當前的指導中？

Bryan, so we tried to take all available factors into our guidance for the year when coming up with the overall sales number. Certainly, because of the COVID situation, we're going to be lapping some easier comps in the first half of the year. So our sales growth will be much, much stronger in the first half, for the second half. But if you look at the half, combined, we'd have growth in both halves, although most of it in the first half of the year.

布賴恩，所以我們在得出整體銷售數字時試圖將所有可用因素納入我們的年度指導。當然，由於 COVID 的情況，我們將在今年上半年進行一些更容易的比賽。因此，我們的銷售增長將在上半年和下半年更加強勁。但如果你看一半，加起來，我們會在兩半都有增長，儘管大部分是在今年上半年。

Okay. Appreciate the color. Just to level set, what was the growth of your Advance and Accelerate portfolio in fiscal 4Q and the full year? And if you have the metric on hand, where did Advance and Accelerate shake out as a percentage of total revenue for the year?

好的。欣賞顏色。就水平而言，您的 Advance 和 Accelerate 投資組合在第四財季和全年的增長情況如何？如果你手頭有這個指標，Advance 和 Accelerate 佔當年總收入的百分比在哪裡？

Sure, Bryan, I'll take that one. So in the fourth quarter, Advance and Accelerate was up 18% year-over-year, and it's about 60% of the total business as of the end of the fourth quarter.

當然，布萊恩，我會接受那個。因此，在第四季度，Advance and Accelerate 同比增長 18%，約佔第四季度末總業務的 60%。

Okay. And curious if the macro uncertainty that you cited and everyone is clearly focused on, whether that has impacted your deal funnel in terms of pursuing Life Science assets, whether in terms of actionability or perhaps positively with regard to Solar expectations, bringing forward some activity at perhaps more reasonable pricing?

好的。並且好奇您引用的宏觀不確定性以及每個人都明確關注的問題，這是否影響了您在追求生命科學資產方面的交易漏斗，無論是在可操作性方面還是在太陽能預期方面可能是積極的方面，在也許更合理的定價？

Yes. We would say that overall, our M&A pipeline still remains strong. It's very strategic and pointed in nature. That valuations have come down slightly within the last quarter. However, we're talking about filtration companies, and we're talking about Life Sciences. So both of them clearly are above industrial averages where we're targeting. So we have to be careful with them when we say it has come down slightly. Still, we view our efforts as being very strong and look forward to continued success as we completed 3 acquisitions in this fiscal year, and we'll continue to execute our overall -- the inorganic portion of our strategy.

是的。我們會說，總體而言，我們的併購渠道仍然強勁。這是非常具有戰略性和針對性的。該估值在上個季度略有下降。然而，我們談論的是過濾公司，我們談論的是生命科學。因此，它們顯然都高於我們目標的工業平均水平。因此，當我們說它略有下降時，我們必須小心它們。儘管如此，我們認為我們的努力非常強大，並期待在本財年完成 3 次收購後繼續取得成功，我們將繼續執行我們的整體戰略——我們戰略的無機部分。

Our next question comes from Laurence Alexander from Jefferies.

我們的下一個問題來自 Jefferies 的 Laurence Alexander。

It's Dan Rizzo for Laurence. You mentioned the backlog and where it is now. I was just wondering -- just to provide color where it is now versus what is the historical average? How much like higher it is? Or what you expect over the next 12 months?

這是勞倫斯的丹·里佐。您提到了積壓工作及其現在的位置。我只是想知道 - 只是為了提供現在的顏色與歷史平均值是多少？它有多高？或者您對未來 12 個月的期望是什麼？

Sure. We would say actually, the channel inventories out there have improved slightly. Our overall late backlog is down slightly. However, our backlog remains strong. And our late backlog, although slightly improved, still remains at uncomfortable levels. And so our backlogs continue to be quite nice.

當然。實際上，我們會說，那裡的渠道庫存略有改善。我們的整體後期積壓略有下降。但是，我們的積壓工作仍然很強勁。我們後期的積壓雖然略有改善，但仍處於令人不安的水平。所以我們的積壓工作仍然很好。

And then you mentioned the lockdowns in China, which are -- I mean, obvious, but I was wondering, as we're coming out of that, are things meeting expectations? Or is there kind of more of a I guess, more of a gradual recovery than would probably would have been expected, say, 2 months ago? Or is it going according to plan?

然後你提到了中國的封鎖，這是 - 我的意思是，很明顯，但我想知道，當我們走出封鎖時，事情是否符合預期？還是我猜想，比兩個月前可能預期的更多的是逐漸恢復？還是按計劃進行？

Yes, that's -- it's a great question. We're a bit more guarded there as we contemplate the outlook to China and what we feel we know we have certainly baked into the guidance. But I would tell you, relative to China, we would clearly be a bit more conservative in -- based upon the nature of what we have been experiencing there in country.

是的，這是一個很好的問題。當我們考慮中國的前景以及我們認為我們知道我們肯定已經融入指導方針時，我們在那裡更加謹慎。但我會告訴你，相對於中國，我們顯然會更加保守——基於我們在該國所經歷的性質。

If we think about the Aftermarket business during the recession, like if you look back to like 2008 or the industrial slowdown, I think, in 2016 or whatever it was, do Aftermarket sales fall or they still (inaudible) volumes anyway or they still remain somewhat positive?

如果我們考慮經濟衰退期間的售後市場業務，例如回顧 2008 年或工業放緩，我認為，在 2016 年或其他任何情況下，售後市場銷售量會下降還是仍然（聽不清）數量，或者仍然存在有點積極？

Overall vehicle utilization across the world right now still remains very positive and very heavy. So we would tell you the market growth opportunities are still prevalent from just overall utilization and end market strength. But also Donaldson has underrepresented geographies where we have additional growth opportunities that we continue to pursue, and we look to have success over the quarters ahead.

目前，全球汽車的整體利用率仍然非常積極且非常沉重。因此，我們會告訴您，僅從整體利用率和終端市場實力來看，市場增長機會仍然很普遍。但唐納森在我們繼續追求額外增長機會的地區的代表性不足，我們希望在未來幾個季度取得成功。

Our next question comes from Dillon Cumming from Morgan Stanley.

我們的下一個問題來自摩根士丹利的狄龍卡明。

I just wanted to put maybe a finer point around the original kind of revenue question that was asked first. I mean, obviously, the guidance does imply that volumes are down, right, for the year, you kind of back out the pricing and the FX headwinds that you guys mentioned. I guess, would your response to that just be that you're still kind of embedding a general level of conservatism, and maybe that's like reflective of some of those product line exits in the Engine segment? Or do you feel like you're actually seeing that materialize in the order book?

我只是想圍繞最初提出的原始收入問題提出一個更好的觀點。我的意思是，很明顯，該指導確實暗示今年的交易量有所下降，對，你有點迴避了你們提到的定價和外匯逆風。我想，您對此的回應是否只是您仍然在某種程度上嵌入了一般程度的保守主義，也許這就像反映了引擎領域中的一些產品線退出？還是您覺得您實際上在訂單簿中看到了這一點？

So I guess from my perspective, it feels like you're still signing a pretty bullish tone on the overall end market backdrop. So just curious if that negative implied volume guidance is actually reflected in your kind of order trends to date?

所以我想從我的角度來看，感覺你仍然對整體終端市場背景持相當看漲的態度。所以只是好奇這種負面的隱含交易量指導是否真的反映在你迄今為止的訂單趨勢中？

Sure. If you look at Engine OE, what we're looking at about the OEM sectors is U.S. up, rest of the world more moderated. But we have a couple of headwinds there, roughly a little bit more than 1%, where we have done some product management. We've walked away from some business, but also on our Exhaust and Emissions business, we will see a decline there because last year, we had the benefits of some prebuy. So you get about a little bit more than 1% based upon those choices from Donaldson Company. And then rest of the world, actually, you really start to feel it over in Japan, where you have some volume moderation, but very heavy FX hit. And in Europe where you have some volume moderation and also a very heavy FX hit.

當然。如果您查看發動機 OE，我們正在關注的 OEM 行業是美國上升，世界其他地區則更為溫和。但是我們在這方面遇到了一些不利因素，大約略高於 1%，我們在這些方面進行了一些產品管理。我們已經放棄了一些業務，但在我們的排氣和排放業務方面，我們將看到那裡的下降，因為去年，我們獲得了一些預購的好處。因此，根據唐納森公司的這些選擇，您可以獲得大約 1% 以上的收益。然後世界其他地方，實際上，你真的開始在日本感受到它，你有一些音量適度，但非常重的 FX 打擊。在歐洲，你有一些音量調節和非常重的外匯衝擊。

So you couple all those factors into the Engine OE side of our business, and that's how you get the more careful base guide. And I do want to stress that we are being careful relative to the outlook in China as well.

因此，您將所有這些因素結合到我們業務的引擎 OE 方面，這就是您獲得更仔細的基本指南的方式。我確實想強調，我們對中國的前景也很謹慎。

Okay. That makes sense. And then maybe just switching over to Europe for a second. Just curious what you guys are seeing in terms of your production preprint over there. I mean, obviously, the energy situation is still pretty volatile. But just curious if that's kind of impacting your ability to produce or if you kind of factor any level of cost inflation on that side of Europe portfolio in fiscal '23?

好的。那講得通。然後也許只是切換到歐洲一秒鐘。只是好奇你們在那邊的生產預印本方面看到了什麼。我的意思是，很明顯，能源形勢仍然非常不穩定。但只是好奇這是否會影響您的生產能力，或者您是否會考慮到 23 財年歐洲投資組合的任何水平的成本通脹？

Yes. So as you look really across our Aftermarket side there, again, we will not have Russia-based revenue year-over-year. So that will be a headwind of -- in the neighborhood of 1% or so. So as you look to Europe, please take that into consideration. But overall, we would say that Europe is doing okay or bouncing along. Surely, there's a bit more moderation, some carefulness going. But the business still remains very strong, very positive. We haven't really seen signs of strong pullbacks or anything like that on incoming order activities, et cetera. we would say it's probably just a little bit more careful at this point in time, and we continue to really keep a keen eye on it.

是的。因此，當您真正看到我們的售後市場時，我們不會再有俄羅斯的收入同比增長。所以這將是一個逆風——大約在 1% 左右。因此，當您展望歐洲時，請考慮到這一點。但總的來說，我們會說歐洲做得很好或正在反彈。當然，還有一點節制，一些謹慎。但業務仍然非常強勁，非常積極。我們還沒有真正看到訂單活動等出現強勁回調或類似情況的跡象。我們會說在這個時間點上可能會更加小心一點，我們會繼續密切關注它。

Okay. That's helpful. And then just last one for me. In terms of the 6% pricing that you guys guided to, I guess, would you kind of characterize that as just reflective of the carryover that you've had from kind of pricing actions to date? Or is there kind of still scope for you to kind of go out there in the market, particularly in the independent channel, maybe put out some further pricing actions as the year progresses?

好的。這很有幫助。然後是我的最後一個。就你們指導的 6% 定價而言，我想，您是否會將其描述為僅反映您迄今為止從某種定價行動中獲得的結轉？或者你是否還有空間在市場上走出去，特別是在獨立渠道，也許隨著時間的推移推出一些進一步的定價行動？

Yes. Dillon, this is Scott. So we said 6% for the year. The majority of that relates from carryover from all the prices that we've layered in this year, which will obviously have a bigger impact in the first half than in the back half. We're still going to go out with our typical standard increases that we would normally do on each year. We still have continuing labor cost increases and other cost increases we're going to have to deal with. But the majority of it would be from this year with a few limited actions next year, that will also contribute.

是的。狄龍，這是斯科特。所以我們說今年是 6%。其中大部分來自我們今年分層的所有價格的結轉，這顯然會在上半年產生比下半年更大的影響。我們仍然會按照我們通常每年都會做的典型標準增加出去。我們仍然有持續的勞動力成本增加和我們將不得不處理的其他成本增加。但其中大部分將來自今年，明年會有一些有限的行動，這也將有所貢獻。

Yes. I would say just basically that we've returned -- in the independent Aftermarket channel, we've returned back to a more normal-like behavior. And should inflation kind of stay where it is, at the current levels, we would expect to behave that way through the forward-looking year.

是的。我想說的是，我們基本上已經恢復了——在獨立的售後市場渠道中，我們已經恢復了更正常的行為。如果通脹保持在目前的水平，我們預計在未來的一年中也會如此。

Our next question comes from Brian Drab from William Blair.

我們的下一個問題來自 William Blair 的 Brian Drab。

I just want to clarify on the revenue growth for the year. When you said a second ago, Tod, that Russia is a 1% impact, that's on a consolidated basis, right?

我只想澄清這一年的收入增長。托德，當你一秒鐘前說過，俄羅斯的影響是 1%，那是在綜合的基礎上，對吧？

Yes. So -- yes, absolutely. And remember, overall, it's 2%, as you look to prior years in the company. But last year, it's closer to 1% because we had taken on some revenue prior to the conflict in Eastern Europe taking place.

是的。所以——是的，絕對的。請記住，總體而言，當您查看公司前幾年的數據時，它是 2%。但去年，它接近 1%，因為我們在東歐衝突發生之前已經獲得了一些收入。

Okay. But in terms of year-over-year impact in fiscal '23, saying it's about a 1 point headwind?

好的。但就 23 財年的同比影響而言，說這大約是 1 個百分點的逆風？

Yes.

是的。

Okay. Got it. So when we take the guidance of 1% to 5% and price FX is a net 2%, volume has been down 1% to the range of negative 1% to positive 3%. So ex Russia that range is basically 0% to 4%.

好的。知道了。因此，當我們採用 1% 至 5% 的指導且外匯價格為淨 2% 時，交易量已下降 1% 至負 1% 至正 3% 的範圍。所以俄羅斯除外，這個範圍基本上是 0% 到 4%。

Yes.

是的。

Okay. Got it. Which segment is that impacting more? Russia? I know we talked about some of the food and beverage work that you're doing -- that you were doing in Russia or continue to and are winding down. Is it more of an impact on the industrial side?

好的。知道了。哪個部分的影響更大？俄羅斯？我知道我們談到了你正在做的一些食品和飲料工作——你在俄羅斯做的或者繼續做的，並且正在逐漸結束。它對工業方面的影響更大嗎？

Engine. And specifically, Engine Aftermarket.

引擎。特別是發動機售後市場。

Okay. And is that true that you have some in the industrial side, though, in food and beverage. And you mentioned some baby food processing, et cetera. Is that just more much minor relative to what you're doing with Engine?

好的。但是，在食品和飲料方面，您在工業方面也有一些，這是真的嗎？你提到了一些嬰兒食品加工等等。相對於您使用 Engine 所做的事情，這是否更小？

Right. We did have some on the industrial side within food and beverage, yes. But it's largely an Engine story.

正確的。我們確實在食品和飲料的工業方面有一些，是的。但這主要是一個引擎故事。

Okay. And if you aggregate the revenue, I don't know if you've been able to give us your revenue for all the acquisitions precisely. But is that revenue material or immaterial to the revenue for -- growth for 2023?

好的。如果您匯總收入，我不知道您是否能夠準確地為我們提供所有收購的收入。但是，該收入對 2023 年的收入增長是重要的還是無關緊要的？

Yes, it's relatively immaterial.

是的，它相對無關緊要。

I mean, is it less than $20 million, Scott? Can you give us any ballpark if you add all 3 of them up?

我的意思是，是不是不到 2000 萬美元，斯科特？如果你把這三個都加起來，你能給我們一個大概嗎？

It's in that range.

是在那個範圍內。

Okay. All right. And then the last question I'll just ask is, you're talking about strategically moving away from some lower-margin business. And a couple of years ago, you had the operating margin target, which I guess we're already beyond the year for which you gave that target of like 15% to 15.8%. I'm just curious if like that 15.8% high end of the range, potentially goes up over the longer term as you move away from this low margin?

好的。好的。然後我要問的最後一個問題是，你說的是從戰略上擺脫一些利潤率較低的業務。幾年前，您制定了營業利潤率目標，我想我們已經超過了您設定 15% 到 15.8% 的目標的那一年。我只是好奇，如果你遠離這個低利潤率，那麼這個範圍的 15.8% 的高端是否會在長期內上漲？

Yes. So I mean, we got to 14.9% this quarter, which was just within a hair of 15%, which is -- would have been a great number, but 14.9% is still a solid improvement. We expect to increase that again next year with our guidance of 14.5% to 15.1%. So for the year, we expect to continue to improve the operating margin. And we're committed to higher levels of profitability on higher sales. We have to continue to leverage the company, invest in higher-margin projects that mix the company up and continue to operate efficiently.

是的。所以我的意思是，本季度我們達到了 14.9%，這僅是 15%，這本來是一個很大的數字，但 14.9% 仍然是一個堅實的進步。我們預計明年將在 14.5% 至 15.1% 的指導下再次增加這一比例。因此，今年，我們預計將繼續提高營業利潤率。我們致力於通過更高的銷售額實現更高水平的盈利能力。我們必須繼續利用公司，投資利潤率更高的項目，使公司混合起來並繼續高效運營。

And so we're going to continue to push the balance of our operating margin horizon because we feel as we continue to grow the company, we can leverage our OpEx and bring in higher-than-average margin opportunities. So we do expect to have an Investor Day next spring. And we're working on planning that now we'd like to invite you all to come to beautiful Bloomington, Minnesota and see our headquarters, and we'll have more to say about that then.

因此，我們將繼續推動營業利潤率水平的平衡，因為我們覺得隨著公司的不斷發展，我們可以利用我們的運營支出並帶來高於平均水平的利潤率機會。所以我們確實希望明年春天有一個投資者日。我們正在製定計劃，現在我們想邀請大家來美麗的明尼蘇達州布盧明頓參觀我們的總部，屆時我們將有更多話要說。

Just the last question on that, though, is -- did you contemplate moving away from the low-margin business in, I think it was April of 2019, when you showed that slide? Or is that a new addition to the strategy since then?

不過，最後一個問題是——你是否考慮過放棄低利潤業務，我認為是 2019 年 4 月，當你展示這張幻燈片時？或者那是從那以後戰略的一個新的補充？

No. Brian, we had that in 2019. And actually some of it was in flight. It's not an easy pivot when you walk away from some of the businesses, especially on the OE base that we've been talking about. So those are multiple quarter-based products when we end up doing that with our customer base.

不，布賴恩，我們在 2019 年就有了。實際上其中一些正在飛行中。當您離開某些業務時，這並不是一個容易的轉變，尤其是在我們一直在談論的 OE 基地。因此，當我們最終與我們的客戶群一起這樣做時，這些都是基於季度的產品。

(Operator Instructions) Our next question comes from Rob Mason from Baird.

（操作員說明）我們的下一個問題來自 Baird 的 Rob Mason。

Could you speak to what your expectations are around the Advance and Accelerate portfolio for '23 relative to your 1% to 5% overall sales guidance?

相對於 1% 到 5% 的總體銷售指導，您能否談談您對 23 年 Advance 和 Accelerate 產品組合的期望？

Yes. I mean we continue to want to invest in our Advance and Accelerate portfolio that currently represents 62% of the company. And when we think about our investments, we're always asking ourselves, are we drive our investments to the right portion of our strategy and to the right portion of our company. And certainly, our opportunities there are going to drive our revenue growth, this year was probably a little bit unusual with 30% growth local currency in the fourth quarter in Off-Road and almost 30% in local currency for the full year.

是的。我的意思是，我們繼續希望投資於目前占公司 62% 的 Advance 和 Accelerate 投資組合。當我們考慮我們的投資時，我們總是在問自己，我們是否將我們的投資推向了我們戰略的正確部分和公司的正確部分。當然，我們在那裡的機會將推動我們的收入增長，今年可能有點不尋常，越野第四季度本地貨幣增長 30%，全年本地貨幣增長近 30%。

So we had some really strong growth in certain pieces of our portfolio. But longer term, our growth will be driven by our Advance and Accelerate portfolio. And you can see from our guidance in Off-Road and On-Road, you can see that coming through this year.

因此，我們在某些投資組合中實現了非常強勁的增長。但從長遠來看，我們的增長將由我們的 Advance 和 Accelerate 產品組合推動。您可以從我們在越野和公路方面的指導中看到，您可以看到這一點在今年即將到來。

Yes. Just on that point, would you have the number of what the Exhaust and Emissions contributed to Off-Road this past year, say, 29% overall?

是的。就在這一點上，您是否知道排氣和排放在過去一年中對越野的貢獻的數量，例如，總體上 29%？

Between 3% and 4% of total company revenue.

占公司總收入的 3% 到 4%。

Okay. Okay. Also just, you've spoken about the moderation and some raw material prices what's sort of built into the gross margin expectation, gross profit expectation for the year in terms of raw materials, will that actually be still a year-over-year headwind? Or does that provide any relief?

好的。好的。同樣，您已經談到了毛利率預期和原材料方面的年度毛利預期中包含的溫和和一些原材料價格，這實際上仍然是同比逆風嗎？或者這是否提供任何緩解？

Yes. I mean we would expect relatively consistent levels of cost this year. We're committed to adjusting our prices if certain costs continue to spike or something happened that would drive an unusual cost increase. But we're planning for relatively consistent commodity pricing this year in our gross margin analysis.

是的。我的意思是，我們預計今年的成本水平會相對穩定。如果某些成本繼續飆升或發生會導致成本異常增加的事情，我們將致力於調整我們的價格。但我們計劃在今年的毛利率分析中實現相對一致的商品定價。

Okay. Sure. Just last question. Purilogics, the acquisition that was completed during the quarter. I'm just curious, I understand that's small and it's early stage. But how should we be thinking about that business ramping over the next few years? And specifically, I'm curious if you -- as you've done your due diligence there, identified areas their already spec-ed into either vaccines, therapeutics success those may have in clinical trials. I'm just curious what kind of visibility you have on that business.

好的。當然。只是最後一個問題。 Purilogics，本季度完成的收購。我只是好奇，我知道這很小，而且還處於早期階段。但是我們應該如何考慮未來幾年的業務增長呢？具體來說，我很好奇你是否 - 當你在那裡做了盡職調查時，確定了他們已經指定到疫苗中的領域，以及臨床試驗中可能取得的治療成功。我只是好奇你對那項業務有什麼樣的知名度。

Sure. So it brings in a differentiated membrane chromatography technology to the company. So if you think overall, at the medias that Donaldson uses, we are very good and strong at membrane-based activities. And so this allows their technology and our membrane experience to really combine and go forward. They have patents as well as some important trade secrets, formulations that all have been proven out in our laboratories prior to the acquisition. They really focus on cutting-edge applications such as they'll be applicable in mRNA and pDNA and ion exchange and other affinity-based separation opportunities.

當然。因此，它為公司帶來了差異化的膜色譜技術。因此，如果您總體而言，在唐納森使用的媒體中，我們在基於膜的活動方面非常出色和強大。因此，這使得他們的技術和我們的膜經驗真正結合起來並向前發展。他們擁有專利以及一些重要的商業秘密、配方，這些都在我們的實驗室被收購之前得到了證明。他們真正專注於尖端應用，例如它們將適用於 mRNA 和 pDNA 以及離子交換和其他基於親和力的分離機會。

They are already working with over 15 biopharmaceutical manufacturing companies. And so while this is a bit of a longer cycle opportunity because they are pre-revenue Donaldson's strength of the balance sheet, we'll certainly be able to help leverage that company forward. And really, we look forward to really great growth over the years ahead.

他們已經與超過 15 家生物製藥製造公司合作。因此，雖然這是一個較長的周期機會，因為它們是收入前唐納森資產負債表的優勢，但我們肯定能夠幫助利用該公司向前發展。真的，我們期待在未來幾年實現真正的巨大增長。

Our last question comes from Nathan Jones from Stifel.

我們的最後一個問題來自 Stifel 的 Nathan Jones。

This is Adam Farley on for Nathan. I wanted to follow up on the strategic exiting of lower-margin programs in On- and Off-Road. Are these exits complete? Or should we expect this to be an ongoing process with maybe more to come in '23?

這是內森的亞當法利。我想跟進 On-Road 和 Off-Road 中利潤率較低的項目的戰略退出。這些出口是否完整？還是我們應該期望這是一個持續的過程，可能會在 23 年出現更多？

The one that we've been talking about for the past 4 quarters, that one is complete. We've lapped it now with the reporting of the fourth quarter. But obviously, it did have a considerable headwind in the year. So that is behind us. However, we continue to look at our portfolio, particularly in light of the inflationary pressures that we felt throughout the balance of the year. And so that's just standard work for us now. And we'll continue to take a look at low margin-based products. And frankly, if we're not getting paid for our technology. we have choices to make. And so that's -- we just consider that standard work looking forward.

過去 4 個季度我們一直在談論的那個，那個是完整的。我們現在已經將它與第四季度的報告相提並論。但顯然，它在這一年確實遇到了相當大的逆風。所以這在我們身後。然而，我們繼續關注我們的投資組合，特別是考慮到我們在今年餘下時間感受到的通脹壓力。所以這只是我們現在的標準工作。我們將繼續關注基於低利潤的產品。坦率地說，如果我們沒有為我們的技術獲得報酬。我們必須做出選擇。所以這就是 - 我們只是認為標準工作是前瞻性的。

Okay. And then turning to CapEx. CapEx is stepping back up to the $115 million to $135 million range. Can you provide some color on where you're deploying that capital organically? And maybe are some of these CapEx-related items related to projects from 2022 that maybe got delayed due to supply chain?

好的。然後轉向資本支出。資本支出正在回升至 1.15 億美元至 1.35 億美元之間。你能提供一些關於你在哪裡有機地部署這些資本的顏色嗎？也許這些與資本支出相關的項目中的一些與 2022 年可能因供應鏈而延遲的項目有關？

Yes. I mean so we -- like you said, we had $115 million to $135 million. We're certainly coming off a lower year. There was certainly some delays in our CapEx. I think we ended up having some delays that pushed some things from this year into next year. If we think overall about our CapEx for next year, we would say it's kind of 75% growth, 25% maintenance. The growth would come in terms of both capacity and new products. So we feel like those are good investments. They have good overall returns for the company and help us -- should help us continue to maintain a very strong return on invested capital.

是的。我的意思是，我們——就像你說的，我們有 1.15 億到 1.35 億美元。我們肯定會經歷一個較低的年份。我們的資本支出肯定有一些延遲。我認為我們最終遇到了一些延誤，將一些事情從今年推到了明年。如果我們整體考慮明年的資本支出，我們會說這是 75% 的增長，25% 的維護。增長將來自產能和新產品。所以我們覺得這些都是很好的投資。他們為公司帶來了良好的整體回報，並幫助我們——應該幫助我們繼續保持非常強勁的投資資本回報。

We have no other questions. I'd like to turn the call back over to Tod Carpenter for closing remarks.

我們沒有其他問題。我想把電話轉回給 Tod Carpenter 做結束語。

That concludes today's call. I'd like to thank everyone who participated, and I look forward to reporting our first quarter results in late November. I also look forward to hosting all of you in the spring at the Investors Day that we'll be holding with more information to come regarding that. Have a great day. Goodbye.

今天的電話會議到此結束。我要感謝所有參與的人，我期待在 11 月下旬報告我們的第一季度業績。我也期待在春季的投資者日接待你們所有人，我們將提供更多關於此的信息。祝你有美好的一天。再見。

This concludes today's conference call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。