Slide 1: Dover Investor Presentation
Dover Investor Presentation December 15, 2015 Bob Livingston President & Chief Executive Officer Exhibit 99.2
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
Slide 3: Our strategy remains consistent
3 Our strategy remains consistent Expanding our businesses in key markets with significant growth potential Capitalizing on our expertise and providing products and solutions globally to customers who value our offerings Innovating to address our customers’ needs and help them win in their mar
Slide 4: Strong execution
4 Strong execution Our business profile is more focused – We have invested in and expanded our businesses within key markets – We have built a very attractive portfolio featuring strong competitive positions and exposure to tailwinds We have accelerated our efforts and processes around innovatio
Slide 5: Creating value over the long-term
5 Creating value over the long-term Market Attributes Areas of action Energy Production & Automation Growth of 5% - 9% Strong margin profile International expansion potential Expand international capabilities in the Middle East and Latin America Build infrastructure to serve life of well n
Slide 6: Creating value over the long-term
6 Creating value over the long-term Market Attributes Areas of action Printing & Identification Growth of 4% - 6% International expansion potential in APAC Consolidated marking & coding industry Invest in local sales and service in China and India Drive conversion to digital textile printi
Slide 7: Aggressively investing to drive product development & innovation
7 Aggressively investing to drive product development & innovation MS JP3 Anthony Vacuum Glass Door DAL Horizontal Pump PSG Stainless G Series Pump
Slide 8: Creating a leading retail fueling systems provider with Station-in-a-Box
8 Creating a leading retail fueling systems provider, featuring a full "Station-in-a-Box" A differentiated position in the retail fueling sector with complete product offering Combined revenue of ≈$900M with ≈22% EBITDA margin before synergies >50% of revenue outside N. America Synergy targe
Slide 9: Building a total solution for the global polymer and plastic processing market
9 Building a total solution for the global polymer and plastic processing market Combination creates a leading solution provider with strong brands and technologies serving the unique needs of multi-national customers Global footprint and world class aftermarket capabilities ≈$275 million in t
Slide 10: Digital textile printing – A full solution set will drive growth
10 Digital textile printing – A full solution set will drive growth ▪ Full printer portfolio ▪ Consistent print quality ▪ Integrated solution including printer, ink, service & support ▪ Nearly 100 sales & service technicians and access to 400+ distributors ▪ Opportunity to leverage integrated digita
Slide 11: Q4 update
11 Q4 update Overall challenging market conditions driving lower than expected performance – Oil & gas related end-markets continue to deteriorate sequentially; impact felt primarily in Energy and Fluids – China markets continue to be sluggish; impact across portfolio Continued focus on ‘self-he
Slide 12: 2016 Preview
12 2016 Preview 2016 will be driven by actions we have already implemented – Meaningful benefits from prior restructuring actions and lower 2016 restructuring costs Lower restructuring costs: $0.15 - $0.17 EPS; carryover benefits: $0.21 - $0.22 EPS – Solid accretion from acquisitions: ≈$0.18 EPS
Slide 13: FY 2016F Guidance
13 FY 2016F Guidance 2016F adjusted organic growth rate Energy (11%) - (8%) Engineered Systems 1% - 3% (1) Fluids (1%) - 2% Refrigeration & Food Equipment 2% - 4% (1) Total adjusted organic (3%) – 0% (1) Acquisitions ≈7% (2) FX Impact (2%) Total adjusted revenue 2% - 5% (2) Reflects completed acquis
Slide 14: Organic growth drivers in 2016
14 Organic growth drivers in 2016 Energy – Increasing our sales and service capabilities in the Middle East and Columbia – Continuing to invest in customer facing activities to gain share (ex. ESP’s) Engineered Systems — Markem-Imaje launching five new printers — Launching new products to accele
Slide 15: DEx drives margin enhancement
15 DEx drives margin enhancement Global supply chain – Target $40+ million in annual savings Capturing the benefits of commodity price weakness – ≈$20M in price reductions in metal and fuels in 2015; more to come Utilizing partnership to improve supplier payment terms, resulting in working cap
Slide 16: Capital allocation
16 $- $300 $600 $900 $1,200 Acquisitions Capex Dividends Share Repurchase $ in millions 2012 2013 2014 2015E Return to investors Capital allocation Invest in growth; acquisitions and capex ≈ 50% Consistently return cash to shareholders; dividends and repurchases ≈ 50% Investment spending will
Slide 17: Key take-a-ways
17 Key take-a-ways 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 ou
Slide 18: Appendix
18 Appendix
Slide 19: FY 2015 guidance update
19 FY 2015 guidance update 19 Prior 2015 EPS Guidance – Continuing Ops (GAAP) $3.73 - $3.80 Mid-point of prior EPS guidance ≈$3.76 – Less: Q4 performance: ≈($0.07) – Less: incremental Q4 restructuring and acquisition-related costs(1): ≈($0.07) Revised 2015 EPS Guidance– Continuing Ops (GAAP) ≈
Slide 20: FY 2016 Guidance – Adjusted revenue by segment
20 FY 2016 Guidance – Adjusted revenue by segment 2016F Energy Engineered Systems Fluids Refrigeration & Food Equip Total Organic (11%) - (8%) 1% - 3% (1%) - 2% 2% - 4% (3%) - 0% Acquisitions - ≈ 3% ≈ 30% - ≈ 7% Currency (1%) (2%) (2%) (1%) (2%) Total (12%) - (9%) 2% - 4% 27% - 30% 1% - 3% 2% - 5% N
Slide 21: FY 2016F Guidance
21 FY 2016F Guidance Revenue – Organic revenue: (3%) - 0% – Completed acquisitions(a): ≈7% – FX impact: (2%) – Total revenue: 2% - 5% Corporate expense: ≈ $120 million Interest expense: ≈ $128 million Full-year tax rate: ≈ 29% Capital expenditures: ≈ 2.3% of revenue FY free cash flow: ≈
Slide 22: 2016F EPS Guidance – Bridge
22 2016F EPS Guidance – Bridge 2015E EPS – Continuing Ops (GAAP)(1): $ 3.62 – Less 2015 tax items(2): (0.05) – Less dispositions(3): (0.08) 2015E Adjusted EPS $ 3.49 – Net restructuring(4): 0.15 - 0.17 – Performance including restructuring benefits(5): 0.33 - 0.47 – Compensation & investment: (0