Dover Corporation · NYSE:DOV

Dover — Investor Day (June 2016)

111 slides from Dover's investor day presentation, Jun 6, 2016

1. Slide 1: Investor Meeting & OPW Facility Tour

   Investor Meeting & OPW Facility Tour Raleigh, North Carolina June 6 & 7, 2016

2. Slide 2: Forward looking statements

   2 Forward looking statements We want to remind everyone that our comments may contain forward-looking statements that are inherently subject to uncertainties and risks. We caution everyone to be guided in their analysis of Dover by referring to the documents we file from time to time with the SEC, i

3. Slide 3: Agenda

   3 Agenda Date Time Activity June 6 12:00 pm Arrival at OPW 12:45 pm Presentations, Facility Tour and Q & A 3:45 pm Bus departs to The Umstead Hotel & Spa 6:00 pm Cocktails & dinner – The Salon June 7 8:15 am Breakfast – The Salon 9:00 am Presentations and Q & A 11:30 am Bus departs to RDU

4. Slide 4: Investor Meeting & OPW Facility Tour

   Investor Meeting & OPW Facility Tour June 6 & 7, 2016 Bob Livingston

5. Slide 5: Creating value over the long term

   5 Creating value over the long term  Organic growth – Investing in sales, service and engineering across several markets and geographies – Adapting products to local markets – Expanding share through delivery of productivity solutions  Strong portfolio of businesses with opportunity for growth – B

6. Slide 6: Select growth markets at a glance

   6 Select growth markets at a glance Text Estimated market size $13B $7B $7B 2016 – 2018 est. market CAGR Key competitors Markets Pumps & Polymer Equipment (PSG & Maag) Artificial Lift (DAL) Retail Refrigeration (HP & Anthony) $11B Food Equipment (UB & Belvac) 2016E DOV revenues ~$900M ~$650M ~$500M

7. Slide 7: Select growth markets at a glance - continued

   7 Select growth markets at a glance - continued Text Estimated market size $6B $4.5B 2016 – 2018 est. market CAGR double- digits Key competitors Markets Digital Printing (MS & JK) Refuse collection, compaction & processing equip. (ESG) $1.5B Auto after- market equipment (VSG) 2016E DOV revenues ~$80

8. Slide 8: Growth – Printing & Identification

   8 Growth – Printing & Identification Recent acquisitions in digital textile printing create a full solution set that will drive growth  Marking & Coding – Stable global markets  ≈3% mid-term market growth rates  High recurring revenue  Emphasis on quality and technology – Multiple applications f

9. Slide 9: Growth – Retail fueling

   9 Growth – Retail fueling Acquisitions create a leading retail fueling systems provider, featuring the most complete product offering  Retail fueling – Stable global markets  ≈3% mid-term market growth rates  Diversified global customers  Regular replacement cycles  Constantly evolving environm

10. Slide 10: Growth – Specialty pump applications

    10 Growth – Specialty pump applications Recent acquisitions expand our positions in global plastics and polymers processing markets  Plastics & polymers, hygienic and pharma – Stable global markets  Mid-single digit mid-term market growth rates  Highly diversified customers  Strong distribution

11. Slide 11: Other growth opportunities

    11 Other growth opportunities  Engineered Systems – ESG (refuse collection / compaction equipment)  Complete product offering known for quality and durability  Unique robotics improve driver / truck productivity and safety – VSG (auto after-market service equipment)  Global auto growth  Custome

12. Slide 12: Productivity update

    12 Productivity update  Global supply chain – Actions continue to yield significant benefits – $40 - $50M annual target – Reduced vendors and improved service  Shared services – Transition to Oracle underway – Shared service centers established  Rollout over next two years  Financial transaction

13. Slide 13: OPW Smithfield facility – Creating value through acquisition integration

    13  Oct 2006 – Acquired the assets of Environ  2007 – Rationalized and vertically integrated OPW’s Flexible Piping system with Environ’s to create FlexWorks  2008 – Integrated OPW’s metal fabricating business from California into the Smithfield facility  2009-2010 – Integrated OPW’s Environmenta

14. Slide 14: PSG – Creating value through technology integration and lean manufacturing

    14  Wilden established as global #1 AODD brand  Blackmer established as global #1 vane brand  2007 – Acquired Griswold pump company  2009 – Griswold integrated into Grand Terrace facility  2011 – Acquired EnviroGear gear pump design and began manufacturing in Grand Terrace  2013-2015 – Global

15. Slide 15: Business improvement - Maag

    15 Business improvement - Maag  Prior state (2012) Maag acquired – Revenue: ˂ $200M – Employees: ≈600  Future state – Integrating Gala & Reduction Scheer – Leading provider of processing equipment to the plastics / polymers markets – Proforma 2016 revenue: ≈$300M – Proforma 2016 GM: ≈40% – Employe

16. Slide 16: Key takeaways

    16 Key takeaways  Our strategy remains consistent. We have great businesses serving markets that offer ample opportunities for growth  We are investing for growth and have above market share expectations of this portfolio. Even in challenging markets we continue to invest even more and expand our

17. Slide 17: OPW Overview

    OPW Overview David Crouse June 6 & 7, 2016

18. Slide 18: OPW overview

    18 43% 7% 26% 24% Available Market: $7.1B 43% 24% 26% 7% North America EMEA Asia-Pacific Latin America OPW overview OPW Mission Statement: Global platform focused on customer driven solutions for the safe & efficient handling of fuels and critical fluids  Global business  Attractive End-Markets 

19. Slide 19: OPW products & markets served

    19 OPW products & markets served  Chemical & Industrial – Products: Loading arms, swivel joints, dry disconnect couplers and breakaways – Customers: Loading terminals, chemical plants and fluids distribution facilities  Transportation – Products: Valves for rail tank cars and tank trucks & trailer

20. Slide 20: Touch points between OPW product groups

    20 Touch points between OPW product groups

21. Slide 21: Key customers

    21 Key customers Major Oil Companies National Oil Companies Convenience Stores Rail / Tank OEMs Hypermarkets Fleets Chemical/Industrial Chemical / Industrial CNG

22. Slide 22: Strategic initiatives

    22 Strategic initiatives  Global Expansion: Focus on rapidly developing markets  Product Leadership: Best products in each world region  Key Account Conversion / Specifications: Capture market share  Continuous Improvement: Be better, every day, in serving customers  Acquisitions: Roadmap for G

23. Slide 23: Fairbanks acquisition

    23 Fairbanks acquisition  Provides fuel site owners and operators with wetstock (fuel) management tools: – Service provided via remote monitoring and real time cloud based data collection – Statistical inventory reconciliation between fuel delivered and fuel sold – Accurate enough to meet stringent

24. Slide 24: Competitive position: Industry's only end-to-end solution

    24 Competitive position: Industry’s only end-to-end solution  Retail & Commercial Dispensers  Automation & POS Systems  Transaction & Data Management Complete Fueling Systems & Solutions  UST & AST Valves  Piping & Containment  Access & Fill Covers  Hanging Hardware  Emergency & Overfill Val

25. Slide 25: Competitive position: Systems & Automation end-to-end solutions

    25 Retail Systems & Automation Fleet Systems & Automation Remote Monitoring Competitive position: Systems & Automation end-to-end solutions

26. Slide 26: Execution driving performance gains

    26 Execution driving performance gains 4. Dover & Shared Services 3. Productivity & Continuous Improvement 2. Integration 1. Strategy & Execution

27. Slide 27: OPW margin expansion: 2010 – 2015

    27 2010 – 2015 GM +397 bps % OF SALES SG&A -298 bps % OF SALES EBIT +695 bps % OF SALES EBIT +63% PER EMPLOYEE OPW margin expansion: 2010 – 2015 2010 2011 2012 2013 2014 2015 EBIT Margin Revenue CAGR: 10.2% - Earnings CAGR: 17.6%

28. Slide 28: OPW's global presence

    28 OPW’s global presence Indicates OPW sites prior to Tokheim acquisition Indicates additional OPW sites acquired with Tokheim Retail Fueling Manufacturing Site Transportation Manufacturing Site Chemical and Industrial Manufacturing Site Electronic Systems Manufacturing Site

29. Slide 29: Market drivers: All trending positive on a global scale

    29 Market drivers: All trending positive on a global scale  Global infrastructure growth: – Population growth, increasing incomes, vehicle ownership, increase in consumption of fuel – Growing middle-class drives demand for conveniences, such as automated car washes – Investment in NA chemical plant

30. Slide 30: OPW's competitive advantage

    30 OPW’s competitive advantage Global Footprint Global Engineering Team Product Leadership Close to the Customer

31. Slide 31: Summary: OPW poised for long-term global growth

    31 Summary: OPW poised for long-term global growth  Broad portfolio of leading products, spanning four markets  Positive market drivers  Global business  Additional acquisition opportunities  OPW well positioned  Culture of execution

32. Slide 32: Productivity driving business improvement OPW – Smithfield facility

    32 Productivity driving business improvement OPW – Smithfield facility  Prior state (2007) – Revenue: $15M – Gross margin: -2% – Employees: 89 – Product lines in facility: 1  Current state (2016E) – Revenue: ˃$100M – Gross margin: ˃40% – Employees: 168 – Product lines in facility: 4  Future state

33. Slide 33: Smithfield OPW retail fueling facility tour

    33 Smithfield OPW retail fueling facility tour 1 2 3 4 5 6 7 7 8  Products and processes you’ll see on the tour – Spill containers – Overfill valves – Emergency impact valves – Shipping (“Station-in-a-box”) – Poly sumps (Roto molding) – “Loop System” assembly – Flexible pipe extrusion – Island form

34. Slide 34: Slide 34

35. Slide 35: Fluids

    Fluids Bill Spurgeon June 6 & 7, 2016

36. Slide 36: Fluids

    36 18% 45% 24% 13% Asia North America Europe Rest of World Fluids 36 62% 38% Fluid Transfer Pumps Engineered Systems 34% Refrigeration & Food Equip. 25% Fluids 26% 2016E Dover Revenue ≈$6.8B End-Market 29% 71% Recurring & Replacement Core Products Geography Product Mix Energy 15% 2016E Revenue by: 

37. Slide 37: Fluids – Building our business

    37 Fluids – Building our business 37 $760M $830M $690M $800M $890M $1.1B $1.4B Significant investment since 2008, including recent acquisitions of Tokheim, Gala, and RES 2007 2008 2009 2010 2011 2012 Pre-2008 2008 2009 2010 2011 2012 2013 2014 2015 PSG Consolidation OPW Consolidation Segment annual

38. Slide 38: Competitive position: Industry's only end-to-end solution

    38 Competitive position: Industry’s only end-to-end solution  UST & AST valves  Piping & containment  Access & fill covers  Hanging hardware  Emergency & overfill valves  Stage 1 vapor recovery  Fleet fueling systems  Tank gauges  Car wash systems  Retail & commercial dispensers  Automati

39. Slide 39: Fluids markets

    39 Fluids markets 39 Pumps Fluid Transfer  Continued infrastructure build in developing countries  Rising middle-class in emerging economies drives demand for food & beverage and pharmaceuticals  Growing single use products in hygienic markets  Population growth with increasing vehicle ownership

40. Slide 40: Markets at a glance

    40 Markets at a glance Text Estimated market size $5B $8B 2016 – 2018 est. market CAGR low singles mid- singles low-to- mid- singles Key competitors Markets Polymer equipment (Maag) Retail fueling (OPW) $1B high- singles Quick disconnect (CPC) 2016E DOV revenues ~$350M ~$300M ~$900M ~$100M $7B Posit

41. Slide 41: Fluids long-term performance

    41 41 Fluids long-term performance  Three year revenue CAGR of 13% (organic CAGR low single digits ex FX) driven by strong markets, geographic expansion and expanded technology offering  Market headwinds from oil & gas conditions have reduced organic growth in 2015 and 2016  Completed 10 acquisit

42. Slide 42: Ample opportunities to grow

    42 Ample opportunities to grow  Innovate through new product development and expand geographically  Grow hygienic pumps and expand plastics and polymers solutions platform  Leverage retail fueling growth opportunities from regulatory changes and new product offerings  Identify and execute key ac

43. Slide 43: Pumps

    43 Pumps  High recurring revenue  Strong North American distribution channel  Investment continues in new product development  Geographic expansion  Acquisition activity focused on new technologies and system offering

44. Slide 44: PSG priorities

    44  Grow from core by defending and globalizing our strongest brands  Build positions organically to capture share in markets where significant “white space” exists  Tube: adding to QuattroFlow, fills bulk of biopharma applications  Gear: Accelerate completion of portfolio, regional growth  Scr

45. Slide 45: Pumps new products

    45 Pumps new products 100HP Blackmer Compressor:  First horizontal design designed for Vapor Recovery  Unique capability to handle sour and hazardous gases (H2S) EnviroGear Series Pump:  Both standard and seal- less designs  Designed for broad range of industrial applications across all vertical

46. Slide 46: Single use adjacency potential

    46 Single use adjacency potential 1 3 2 4 5 6 Pumps 6 4 1 3 2 5 Mixer Valves Tubes Fittings Vessel  Applied in bioreactor, separation, virus removal and sterile filtration applications  Addresses spalling (tube particulate contamination release), needs in process scale up and issues from flow puls

47. Slide 47: Plastics and polymers systems offering

    47 Plastics and polymers systems offering Material Handling Feeding / Dosing Extrusion Growth Opportunity to Expand Systems Offering Gear Pumps Filtration Pelletizers / Accessories Strong Maag Position

48. Slide 48: Key benefits of the Gala & RES acquisitions

    48 Strategic Rationale  Addition of key products expand system offering  Expands geographic presence  Product opportunities  Facility consolidation opportunities Key benefits of the Gala & RES acquisitions

49. Slide 49: Margin expansion opportunities

    49 Margin expansion opportunities DF Margin 2015 A 2018 Goal  Acquisition synergies  Plant cons.  DEx  Shared services  Oracle benefits  Deliver identified revenue and cost synergies  Consolidate manufacturing operations across North America, EMEA and APAC  Continue to drive lean benefits 

50. Slide 50: Key takeaways

    50 Key takeaways 50 Near term  Achieve low single-digit organic growth in retail fueling, industrial, pharma and hygienic markets, partially offsetting oil & gas market headwinds  Aggressively pursue deal flow across the segment  Improve core margin and integrate new acquisitions Mid-term  Drive

51. Slide 51: Energy

    Energy Soma Somasundaram June 6 & 7, 2016

52. Slide 52: Energy

    52 4% 78% 7% 11% Asia North America Europe Rest of World Energy 52 65% 24% 11% Drilling & Production Bearings & Compression Automation Energy 15% Engineered Systems 34% Refrigeration & Food Equip. 25% Fluids 26% 2016E Dover Revenue ≈$6.8B 2016E Revenue by: 60% 40% Core Products Recurring & Replaceme

53. Slide 53: Energy markets

    53 Energy markets 53 Drilling & Production Bearings & Compression Automation  Long term market fundamentals remain attractive  Current downturn has significantly impaired E&P investment – depletion of current wells require additional investment to meet future demand  E&Ps intensely focused on low

54. Slide 54: Markets at a glance

    54 Markets at a glance Text Estimated market size $1B $7B 2016 – 2018 est. market CAGR Tied to pace of MRO, well completions & capex mid singles Key competitors Drilling (USS) Bearings & Compression $3B Automation 2016E DOV revenues ~$500M ~$100M ~$275M ~$125M $8B Artificial Lift (DAL) Tied to rig c

55. Slide 55: Market conditions – historical perspective

    55 Market conditions – historical perspective 55 20% 30% 40% 50% 60% 70% 80% 90% 100% 110% 1 6 11 16 21 26 31 36 41 46 51 56 61 66 71 76 81 86 91 96 10 1 10 6 11 1 11 6 12 1 12 6 13 1 13 6 14 1 14 6 15 1 15 6 16 1 In de xe d U S R ig Co un t Weeks US Rig Count Cycles 1997 Cycle 2001 Cycle 2008 Cycle

56. Slide 56: Near-term market outlook

    56 Source: EIA Short-Term Energy Outlook, April 2016 Near-term market outlook 56  Demand growth and a moderation of supply will bring production and consumption back into balance in late-2016 and into 2017  Non-OPEC production expected to decline significantly in 2016 and into 2017  OPEC crude oi

57. Slide 57: Long-term market outlook – Increased investments to meet demand

    57 2015 Production Decline in Producing Assets 2025 prod. from existing fields New onshore New shale/tight New oil sands/ extra heavy New offshore 2025 production Producing Sanctioned Not sanctioned Other liquids and NGLs Long-term market outlook – Increased investments to meet demand 57  Significa

58. Slide 58: Potential market recovery trajectory

    58 $20 $40 $60 $80 $100 $120 Jan-1 4 M ar -1 4 M ay -1 4 Ju l-1 4 Se p-1 4 No v-1 4 Jan-1 5 M ar -1 5 M ay -1 5 Ju l-1 5 Se p-1 5 No v-1 5 Jan-1 6 M ar -1 6 M ay -1 6 Ju l-1 6 Sep- 16 No v-1 6 Jan-1 7 M ar -1 7 M ay -1 7 Ju l-1 7 Se p-1 7 No v-1 7 Jan-1 8 M ar -1 8 M ay -1 8 Ju l-1 8 Se p-1 8 No v-1

59. Slide 59: We are well positioned for a market recovery

    59 We are well positioned for a market recovery 59 Improved Market Position in Key Product Lines Preserved Investment in Technology & Core Capabilities Retained / Added Key Talent  Share expansion in key product lines (ESP, B&C, Controllers)  Build out of Automation organizational capabilities and

60. Slide 60: Improved market position in key product lines

    60 Improved market position in key product lines 60 Electric Submersible Pumps (ESP’s) Middle East Revenues Key elements of success  Expanded revenues in 2015 through share gains, despite market softness  Continued share gain expected in 2016  Investment in talent: critical hires in key functions

61. Slide 61: Energy share gains

    61 Energy share gains ESP’s Wellsite Automation Bearings & Comp.  Innovation / new product development  Superior customer service – key differentiator  Rental business model – expansion to new basins  Recruited key industry talent  New product development ‒ Wellsite controller optimizes product

62. Slide 62: Preserved investment in technology & core capability

    62 Preserved investment in technology & core capability to help customers reduce operating costs and increase production 62  ESP LOOKOUTtm monitoring – New ESP online diagnostics and monitoring tools – Customer value: increased production  PDC cutters – New technology reduces spalling failures – C

63. Slide 63: Continued investment in growth spaces - Artificial Lift

    63 Continued investment in growth spaces - Artificial Lift  Market dynamics / Emerging trends – Investment in artificial lift required to replace production as current wells deplete – North America investment will be focused on basins with superior economics – Increasing international investments i

64. Slide 64: Continued investment in growth spaces - Automation

    64 Continued investment in growth spaces - Automation 64  Market dynamics / Emerging trends — Customer focus on safety and productivity will drive investment — Convergence of monitoring and controls – leading to connected wellsite — Increasing emphasis on data analytics to drive production optimiza

65. Slide 65: Continued investment in growth spaces - Bearings & Compression

    65 Continued investment in growth spaces - Bearings & Compression 65  Market dynamics / Emerging trends — Positive long term investments driven by energy infrastructure build-out, adoption of natural gas for power generation and global GDP growth — Emerging market OEM’s increasing their global pres

66. Slide 66: Productivity initiatives and continuous improvement

    66 Productivity initiatives and continuous improvement 66  Productivity, cost reduction and optimizing our use of capital – Focused on reducing cost through headcount reductions, facility consolidations and product line rationalizations – Segment-wide initiative to increase best value country (BVC)

67. Slide 67: Margin expansion opportunities

    67 Margin expansion opportunities DE Margin 2015 A 2018 Goal  Leverage on revenue growth from market recovery, international expansion & share gains  Productivity improvements through lean / continuous improvement initiatives, facility rationalization, and best value country sourcing  Carryover b

68. Slide 68: Key takeaways

    68 Key takeaways 68  Near term markets remain challenging; long term market remains positive  We expect market fundamentals come into balance during the remainder of 2016; modest reinvestment and growth expectations starting in 2017  We are managing the downturn with a focus: ‒ Executing on reduc

69. Slide 69: Relentless focus on our customers

    69 Relentless focus on our customers Based upon 700 industry respondents….  #1 in Artificial Lift  #1 in Performance and Reliability  #1 in Engineering & Design  #1 in Horizontal & Directional Wells Delivering differentiated customer service during the downturn

70. Slide 70: Engineered Systems

    Engineered Systems Andy Fincher June 6 & 7, 2016

71. Slide 71: Engineered Systems

    71 12% 57% 22% 9% Asia North America Europe Rest of World Engineered Systems 71 44% 56% Printing & Identification Industrials Refrigeration & Food Equip. 25% 2016E Dover Revenue ≈$6.8B End-Market 37% 63% Recurring & Replacement Core Products Geography Product Mix Energy 15% 2016E Revenue by:  Inves

72. Slide 72: Engineered Systems markets

    72 Engineered Systems markets 72 Printing and Identification Industrial  Growth of FMCG in developing countries  Increased requirement for tracking / traceability  Fast fashion trends and supply chain optimization  Analog-to-digital (A2D) conversion  Vehicle sales global growth  Change in vehi

73. Slide 73: Markets at a glance

    73 Markets at a glance Text Estimated market size $0.5B $4.5B 2016 – 2018 est. market CAGR low-to- mid singles double- digits Key competitors Digital printing equipment (MS) Refuse collection & processing equipment (ESG) 2016E DOV revenues ~$800M ˂$100M ~$400M $5.5B Marking & Coding (M-I) Digital in

74. Slide 74: Printing & Identification market

    74 Printing & Identification market  $11B market with high recurring revenues and exposure to macro growth trends Traceability & Product Authentication Developing Economies Growth Growing middle class creates demand for FMCG Regulation and product safety / liability concerns driving traceability an

75. Slide 75: Digital textile printing: Strong tailwinds driving technology conversion

    75 Digital textile printing: Strong tailwinds driving technology conversion opportunity  35B+ m2 printed globally, only 2% digital  Digital hardware and ink to grow double digits through 2019 to $1.4B  Faster reaction to trends  Sustainable / environmentally friendly production  Reduced print l

76. Slide 76: Full digital textile printing range

    76 • 640 m2/hr (textile) • 900 m2/hr (paper) JPK Series • 4,500 m2/hr (textile) • 10,000 m2/hr (paper) LaRio  Range of inks for multiple applications  Print heads, filters, pumps and software Print Heads, Spares, Software, Service JP4 JP5 JP6 JP7 • 180 m2/hr (paper) • 100 m2/hr (textile) • 155 m2/

77. Slide 77: Digital textile printing – Customer perspective

    77 Digital textile printing – Customer perspective Large Italian textile printing customer  Converted 70% to digital prior 3 years  Major customers include Zara and H&M  10M€+ investment: 3 Lario, 1 JPK, 2 JP7, 4 JP6, 1 JP4 – Producing 33M m2 annually  Customer value proposition – Production cyc

78. Slide 78: Full digital textile solution set

    78 Full digital textile solution set ▪ MS offers full printer portfolio (7 speed categories) ▪ Consistent print quality as customers’ production grows ▪ Offer customer an integrated solution including printer, ink, software, service & support ▪ 100 sales & service technicians and access to 400+ dist

79. Slide 79: Printing & ID: Accelerating innovation

    79 2015 2016F New Product Revenue 79 Printing & ID: Accelerating innovation  Speed in new product development accelerating  Global centers of excellence: Dedicated teams for technology development and application knowledge  Substantial increase in downstream and upstream partnerships  Leveraging

80. Slide 80: Marking & Coding: regulatory and industry standards drive tailwinds

    80 Marking & Coding: Acceleration of regulatory and industry standards drive marking and coding tailwinds  Growing government regulations  Increasingly rigorous customer sustainability policies  Enhanced complexity of coding to track & trace products driven by customer mandates M-I offerings incl

81. Slide 81: Leader in select industrial markets

    81 Government Regulation Leader in select industrial markets Focused Market Verticals Waste Processing Vehicle Services  Leading positions in industrial markets totaling $15B Energy & Resource Efficiency Developing Economies Growth Increased demand for vehicles and higher levels of waste Demand on

82. Slide 82: Refuse Vehicles: Creating value for our customers

    82 Refuse Vehicles: Creating value for our customers  17 Patents issued to date  Creates barriers to entry, premium margins  Double digit market share gains in Automated Front Loader (AFL) category since 20111  TCO: safe, light, smart-asset, productive, fuel efficient, alt fuels, fleet commoniza

83. Slide 83: Organics processing adjacency

    83 Organics processing adjacency - Leveraging position in waste handling to drive outsized growth  Municipal solid waste growing at 4.6% (1.7B tons / year by 2020)  Legislative trend to limit organics landfilling  What to do with waste? – Landfill diversion – Waste as resource  Entrepreneurs cre

84. Slide 84: Leveraging strategic partnerships in organics processing

    84 Leveraging strategic partnerships in organics processing  Anaerobic Digestion (AD) – Diverts organic waste from landfill and creates renewable energy  Kinetic Pulverizer – Processes multiple waste-streams into saleable products (compost or energy)  BurCell – Pre-treatment improves AD process e

85. Slide 85: Collision adjacency evolution

    85 Collision adjacency evolution - Regulatory action driving opportunity  CAFE forcing changes in vehicle design to reduce weight  New materials being introduced – Aluminum use expected to double by 2025 – 70% of new pickup trucks will be aluminum-bodied by 2025  Complete re-tooling of repair sho

86. Slide 86: Margin expansion opportunities

    86 Margin expansion opportunities DES Margin 2015 A 2018 Goal  Growth in recurring revenue  Changing favorable business mix  Acquisition revenue and cost synergies  Site consolidations  Continuing lean benefits  Leveraging shared services across Dover EBITDA Margin: high teens 2016 F EBITDA Ma

87. Slide 87: Key takeaways

    87 Key takeaways 87  Exploiting multiple growth opportunities – Driving digital textile printing conversion – Leading innovation in marking & coding to meet regulatory and industry standards – Leveraging our position to drive organics processing adjacency – Taking advantage of fuel efficiency regul

88. Slide 88: Refrigeration & Food Equipment

    Refrigeration & Food Equipment Bob Livingston Paul Sindoni June 6 & 7, 2016

89. Slide 89: Refrigeration & Food Equipment

    89 7% 76% 13% 4% Asia North America Europe Rest of World Refrigeration & Food Equipment 89 23% 77% Food Equipment Refrigeration Engineered Systems 34% Refrigeration & Food Equip. 25% Fluids 26% 2016E Dover Revenue ≈$6.8B 2016E Revenue by: 14% 86% Recurring & Replacement Core Products Geography Produ

90. Slide 90: Refrigeration & Food Equipment markets

    90 Refrigeration & Food Equipment markets 90 Refrigeration Food Equipment  North American growth driven by government regulations, rising energy costs, and food safety mandates  Emerging market growth driven by improving living standards and increased consumption of chilled and frozen foods  Stro

91. Slide 91: Markets at a glance

    91 Markets at a glance Text Estimated market size $6B $1B 2016 – 2018 est. market CAGR low-to- mid- singles mid singles Key competitors Markets Retail Refrigeration (HP & Anthony) Heat exchangers (SWEP) Food equipment (UB) $1B Can making equipment (Belvac) 2016E DOV revenues ~$1B ~$225M ~$170M ~$130

92. Slide 92: Fundamental, long running macro trends provide powerful tailwinds

    92 Fundamental, long running macro trends provide powerful tailwinds Food Equipment Refrigeration Rising cost and global demand for energy driving increase in efficiency regulation Energy efficiency Increase demand for natural chemicals / reduced waste to minimize environmental impact. Government re

93. Slide 93: Hillphoenix – Industry leaders in food retail

    93 Hillphoenix – Industry leaders in food retail Products Services Resources

94. Slide 94: Three key trends are changing the retail supermarket landscape

    94 Three key trends are changing the retail supermarket landscape Growing importance of millennial generation who prize convenience Consumer trend towards “away from home” dining vs. cooking Rising demand for health through "real," non-processed food

95. Slide 95: Data supports a clear trend in prepared foods

    95 Data supports a clear trend in prepared foods Fastest Growing Segment of Food Service - IRI

96. Slide 96: Consumers are seeking healthier options

    96 In addition to convenience, consumers are seeking healthier options Source: BCG Global Consumer Sentiment Survey, 2013; Morningstar; BCG analysis 5% 1% 0 2 4 6 2014 sales growth (%) Center of store Perimeter of store Consumers report increasing spend on healthy / organic food options… …driving gr

97. Slide 97: Retail supermarket market trend takeaways

    97 Retail supermarket market trend takeaways  The lines between restaurants, grocery stores and C-stores are blurring  C-stores are migrating up to more sophisticated refrigeration and cooking  Retailers are investing heavily in fresh and prepared food offerings  Supermarkets increasingly focuse

98. Slide 98: Hillphoenix strategy focused on leveraging leading technologies

    98 Hillphoenix strategy focused on leveraging the portfolio of leading technologies  Focused growth – Capitalize on retail trends towards “fresh” via specialty cases – Extend leading food retail position into higher growth C-Store adjacency – Utilize market leading CO2 technology to drive customer

99. Slide 99: Market leader with broadest product offering for supermarket refrigeration

    99 We are the market leader and have the broadest product offering for supermarket refrigeration in North America Refrigeration cases Refrigeration systems Glass doors & engineered solutions Key Product Offerings  Refrigeration systems and display cases  Engineered glass doors  Extensive installa

100. Slide 100: Gaining share through leading technologies and merchandising solutions

     100  Energy efficient solutions providing strong customer ROI – Clear leader in CO2 technology as industry adoption accelerates – New “AdvansorFlex” CO2 technology in demand for small store formats – Innovative proprietary vacuum glass provides a unique-to-market offering – “Close-the-Case” solutio

101. Slide 101: Advanced CO2 technology and emerging government regulations

     101 Our advanced CO2 technology is well positioned to capitalize on emerging government regulations Opportunity overview  Global energy regulations  Studies have proven CO2 as a mainstream all-natural solution  CO2 systems have lower annual operating and maintenance costs Tailwinds for growth  G

102. Slide 102: Leader in medium temp door applications

     102 We are the leader in medium temp door applications and momentum is building as retailers accelerate adoption Areas of actions  Industry leading customer solutions for both “Close the Case” and new cases w/doors  Hillphoenix’s Close the Case “ECO Kit” simplifies installation process and results

103. Slide 103: Anthony Elite refrigerated door

     103 Anthony Elite refrigerated door Innovating to win Opportunity overview  New to market technology  Requires no heat (zero energy consumption)  Significant annual operating cost savings & customer ROI Tailwinds for growth  Strong market demand for zero energy door  Retailers focused on reduci

104. Slide 104: Anthony Elite product benefits

     104 Anthony Elite product benefits  Provides “wall of glass” look  Full merchandising visibility  Energy free door  More comfortable shopping experience

105. Slide 105: C-Store growth rate is 2x North American supermarkets

     105 C-Store growth rate is 2x North American supermarkets Opportunity overview  C-Store market is growing as customers are trending towards convenience and “immediacy” vs. traditional grocery store format  Our core competencies are well positioned to gain share Tailwinds for growth  Shopper prefe

106. Slide 106: Customer design and learning center is a differentiator

     106 Hillphoenix customer design and learning center is a differentiator Design Center  Development of store layout  Lighting consultation for energy efficiency and improved merchandising  Fully customizable product design capabilities Learning Center  Utilizing customer education to facilitate a

107. Slide 107: Hillphoenix and Unified Brands: Retail channel leverage

     107 Hillphoenix and Unified Brands: Retail channel leverage (4) Type 1 Hoods (4) Type 2 Hood (1) Power Soak (1) Produce Soak (2) Work Top Refrigerators (2) Pizza Prep Refrigerator (2) Prep Top Refrigerator Large food retailer: Food service (2) Under counter Refrigerator (2) Under counter Freezer (3)

108. Slide 108: Multiple levers to drive productivity and margin expansion

     108 Hillphoenix has multiple levers available to drive productivity and margin expansion  Continuous improvement initiatives – CI and Lean – Investments in factory automation  Migration to back office shared services – Leverage finance, HR and IT infrastructure costs  Supply chain savings – Lever

109. Slide 109: Margin expansion opportunities

     109 Margin expansion opportunities DRFE Margin 2015 A 2018 Target  DEx  Plant cons.  Factory automation  Shared services  ERP benefits  Continuous improvement culture driving sustained productivity improvements  Footprint rationalization across North America, EMEA and APAC  Investing in fact

110. Slide 110: Key takeaways

     110 Key takeaways 11 0  Extending market leading positions through technology and innovation – Energy regulations providing tailwinds for CO2 and Door Display growth – Product leadership in specialty cases helping customers transition to fresh – Proprietary vacuum glass technology is new and unique

111. Slide 111: Slide 111

Dover — Investor Day (June 2016) on 6ix