DONALDSON COMPANY

William Blair 2018 Growth Stock Conference

Tod Carpenter

Chairman, President and Chief Executive Officer

SAFE HARBOR STATEMENT

This presentation includes forward-looking statements

which reflect the Company’s current views with respect

to future events and financial performance, but involve

uncertainties that could significantly impact results.

• Technology leader in our markets

• Diversified portfolio of global businesses

DONALDSON IS A FILTRATION COMPANY

• Technology Advantages

- Higher efficiency

- Small system size

- Longer filter life

- Reduced operating and maintenance costs

• Better Aftermarket Retention

4

VALUE PROPOSITION TO OUR CUSTOMERS

• Diversified portfolio of technology and products

• Global sales, production and distribution footprint

• Committed to growth & financial performance

• Disciplined capital deployment

5

VALUE PROPOSITION TO OUR SHAREHOLDERS

DIVERSIFIED ENGINE APPLICATIONS6

DIVERSIFIED INDUSTRIAL APPLICATIONS7

FINANCIAL PERFORMANCE

STRONG SALES GROWTH ENVIRONMENT

• Past program wins (including share gains)

• Innovative products for air and liquid outpacing company averages

• Further expansion into existing geographies, like China

• Favorable conditions for both on- and off-road markets

• Positive trends in all key end markets—transportation, mining,

construction and agriculture

40.6%34.5%

18.3%

-3.5%

12.6%

7.7% 6.1%

FISCAL 2018 YEAR-TO-DATE SALES*

10

Engine Segment: +21.0% Industrial Segment: +10.6%

* Nine months ended April 30, 2018

DRIVERS OF INCREMENTAL MARGIN

• Gross margin pressure

• Higher raw materials and supply chain costs

• Mix pressure from stronger growth of OE businesses

• Strong expense leverage

• Expense discipline to support incremental investments

• Leverage of fixed expenses on higher sales

SLIGHT DECLINE IN YTD OPERATING MARGIN

* Nine months ended April 30, 2018

FORECASTING CONTINUED GROWTH*

• Expecting strong sales and adjusted profit** in FY18

• Sales up ~15%, driven by growth in both segments

• Adjusted EPS** up 17% - 19%

• Momentum is expected to continue into FY19

• Past program wins combined with market strength expected to

drive sales growth in both segments

• Headwinds on margin will likely remain, but committed to growing

operating profit faster than sales

• We will provide more details related to FY19 with full-year

earnings in September 2018

* Reflects guidance, commentary from third quarter earnings release and conference call on May 31, 2018

* * Adjusted EPS is a non-GAAP financial measure that excludes the impact of certain matters not related to the

Company’s ongoing operations, including charges related to the provisional estimates of the impact from tax reform.

See appendix and third quarter 2018 press release from May 30, 2018, for more information.

STRATEGIC GROWTH PLANS

STRATEGIC GROWTH PLANS

Acquisitions

Geography

Expand

CoreDONALDSON

CORE

• Expand core

products and

technologies

• Expand

geographically

• Execute

acquisitions

SALES GROWTH MODEL

Create

Holes Sell

Replacements

Reinvest

Growth

Use

Innovative

Technology

16

INNOVATIVE PRODUCTS DRIVE RETENTION

0%

20%

40%

60%

80%

100%

Yr 0 Yr 2 Yr 5 Yr 8 Yr 10 Yr 15

LegacyProducts

Innovative Products

Aftermarket retention rate of innovative products is higher than legacy products over time

17

INNOVATIVE AIR FILTRATION18

PowerCore DownFlo Evolution

INNOVATIVE LIQUID FILTRATION19

•Designed for new diesel fuels, higher fuel

injector pressure

•Higher efficiency and extended filter life

INVESTING FOR THE FUTURE

LONG-TERM CAPITAL DEPLOYMENT PRIORITIES

• Invest in our company

• Pay a dividend

• Repurchase our shares

CURRENT INVESTMENTS IN OUR COMPANY

• Technology development

• Grow our capabilities with new filtration technologies to further

expand into adjacent markets.

• Capacity expansion

• Increase our manufacturing capacity for innovative air and liquid

products, and add distribution capacity to better serve our

customers while enhancing productivity.

• Customer engagement

• Launch our e-commerce platform to make it easier for new and

existing customers to buy from Donaldson.

REINVESTING OVER TIME23

• Organic Growth Investments

• Development of new and innovative products

• Lab upgrades and IT investments

• Production capacity and distribution expansion

• Acquisitions

• Completed five bolt-on acquisitions since fiscal 2015

CONSISTENT DIVIDEND GROWTH24

$0.02

$0.70

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

1990 2017

Per Share

16% CAGR

• Paid quarterly dividend for 60+ years

• Increased annually for 20+ years

• Recently announced 5.6% increase

CONSISTENT SHARE REPURCHASE25

0

50

100

150

200

250

1990 2017

Shares Outstandingin Millions

-2% CAGR

• Goal is to at least offset annual dilution of ~1%

VALUE PROPOSITION TO OUR SHAREHOLDERS

• Diversified portfolio of technology and products

• Global sales, production and distribution footprint

• Committed to growth & financial performance

• Disciplined capital deployment

26

THANK YOU

APPENDIX

FY17 SALES COMPOSITION AND PERFORMANCE

*Fiscal year ended July 31, 2017

29

Fiscal 2017 sales of $2.37 billion; 6.8% over last year

Engine65%

Industrial35%

Revenue Composition

70%

16%

7% 7%

Engine: +11.6%*

Aftermarket

Off-Road

On-Road

A&D

65%

20%

15%

Industrial: (1.2)%*

Ind. Filtration

Spec. Apps

Gas Turbine

FISCAL 2017 PROFIT PERFORMANCE*

12.3%

13.9%

0.9%

0.4%

0.1%

FY16Operating

Margin

Add BackFY'16

RestructuringCharges

FY17 GrossMargin Chg.

FY17 ExpenseRate Chg.

FY17Operating

Margin

30

*Fiscal year ended July 31, 2017

RECONCILIATION OF YTD GAAP TO NON-GAAP Three Months Ended Nine Months Ended

April 30, April 30,

2018 2017 2018 2017

Net cash provided by operating activities $ 48.9 $ 61.3 $ 158.7 $ 230.8

Net capital expenditures (27.3 ) (16.2 ) (73.1 ) (41.2 )

Free cash flow $ 21.6 $ 45.1 $ 85.6 $ 189.6

Net earnings $ 69.9 $ 60.1 $ 77.9 $ 164.6

Income taxes 29.1 24.2 182.2 65.7

Interest expense 5.4 4.8 15.7 14.4

Depreciation and amortization 19.5 18.5 57.4 55.8

EBITDA $ 123.9 $ 107.6 $ 333.2 $ 300.5

Net earnings $ 69.9 $ 60.1 $ 77.9 $ 164.6

Tax expense for Federal Tax Cuts and Jobs Act 0.4 — 110.1 —

Settlement, net of tax — — — (6.8 )

Adjusted net earnings $ 70.3 $ 60.1 $ 188.0 $ 157.8

Diluted EPS $ 0.53 $ 0.45 $ 0.59 $ 1.23

Tax expense for Federal Tax Cuts and Jobs Act — — 0.83 —

Settlement per share — — — (0.05 )

Adjusted diluted EPS $ 0.53 $ 0.45 $ 1.42 $ 1.18