Slide 1: Earnings Conference Call Fourth Quarter and Full Year 2021
Earnings Conference Call Fourth Quarter and Full Year 2021 January 27, 2022 – 8:30am CT Exhibit 99.2
Slide 2: Forward-Looking Statements and Non-GAAP Measures
2 Forward-Looking Statements and Non-GAAP Measures We want to remind everyone that our comments may contain forward-looking statements that are inherently subject to uncertainties and risks, including the impacts of the novel coronavirus (COVID-19) on the global economy and on our customers, supplie
Slide 3: Q4 and 2021 Highlights
3 Free Cash Flow(1) +60 bps to 17.7% $277M Q4 and 2021 Highlights (1) Non-GAAP measures (definitions and reconciliations in appendix) (2) See performance measures definitions in appendix EPS: $7.45 - $7.65 (GAAP); $8.45 – $8.65 (Adjusted(1)) Revenue growth: 8% - 10% (7% - 9% Organic(1)) Revenue +22%
Slide 4: Summary Corporate Q4 and Full Year Results
4 Summary Corporate Q4 and Full Year Results Q4 2021 FY 2021 Highlights and Comments Revenue change (Y-o-Y) All-in Organic(1) +12% +11% +18% +15% Q4 Y-o-Y organic growth in all segments but DCEF Q4 FX impact: -1%; acquisitions (net of divestitures) +1% Bookings change (Y-o-Y) All-in(2) Organic(2
Slide 5: Segment Q4 Performance Commentary
5 Segment Revenue ($M) / Organic Change % Adj. EBIT % / bps ∆ Y-o-Y Revenue ($M) / Organic Change % Adj. EBIT % / bps ∆ Y-o-Y Q4 Performance Commentary DEP $463 +16% 12.5% -300 bps $1,781 +14% 14.7% -160 bps Top line growth and strong order rates across all businesses Margin pressured by absente
Slide 6: Q4 2021 Revenue and Bookings Bridges
6 Q4 2020 Revenue & Bookings Q4 2021 Revenue Change in Organic Revenue(1): +$204M, or +11.5% Q4 2021DIIDCEF DPPS DCST FX ACQ./ DISP. (2) Q4 2020 DEP DCEF DII DPPS DSCT FX ACQ./ DISP. (3) Q4 2021 Note: $ in millions. Numbers may not add due to rounding Q4 2021 Bookings(4) Change in Organic Bookings(4
Slide 7: Q4 2021 Adjusted Segment EBIT and Adjusted Net Earnings
7 Q4 2021 Adjusted Segment EBIT and Adjusted Net Earnings CORP. EXPENSE GAAP EARNINGS SEGMENT EBIT GAINS ON SALE (4) RIGHT SIZING ADJ. EARNINGS ACQ. AMORT. INT./TAX EXPENSE ADJ. EARNINGS ACQ. AMORT. RIGHT SIZING GAAP EARNINGS Change in Adjusted Net Earnings (3) +$34M 182 17 26 225 47 -8 -5 259 -27 -
Slide 8: FY 2021 Free Cash Flow
8 FY 2021 Free Cash Flow 12.3% (1) Includes stock-based compensation and changes in other current and non-current assets and liabilities (2) Non-GAAP measures (reconciliations and definitions in appendix) Note: Numbers may not add due to rounding $M FY21 FY20 ∆ Net earnings 1,124 683 +440 Adjustment
Slide 9: Delivering on Capital Allocation Priorities
9 2 Grow through Acquisitions Ample opportunity to acquire in core markets Possible larger deals if high fit Strict strategic fit and financial discipline criteria Priorities: DPPS, DII, DCEF; software, recurring revenue, product adjacencies 3 Return Capital Dividend: Grow and target ~30%
Slide 10: Substantial Investments in Support of Growth and Productivity
10 Substantial Investments in Support of Growth and Productivity DPPS 2021 2022E DII DEP DCEF 171 Corporate DCST 200-220 $ in millions 2021 / 2022E Capex Comparison Major Investment Projects % of Revenue 2.2% 2.3% - 2.6% (1) Total spend over 2020-22E time period for projects expected to be completed
Slide 11: Segment Demand Trends and 2022 Outlook
11 Segment Demand trends ’22 Organic Growth(1) Outlook Price – Cost Inputs availability Comments DEP HSD- LDD Favorable market outlook, strong bookings and healthy backlog across all businesses COVID protocol absenteeism and logistics costs continue to impact H1 margins along with price / materi
Slide 12: FY 2022 Guidance
12 FY 2022 Guidance (1) Non-GAAP measure (definition and/or reconciliation in appendix) EPS and other Cash Flow Free Cash Flow(1): 13% - 15% of Revenue Capex: $200 – $220 million GAAP EPS: $7.45 - $7.65 Adjusted EPS(1): $8.45 - $8.65 Revenue All-in: 8% - 10% Organic(1): 7% - 9% Tax rat
Slide 13: FY 2022 Adjusted EPS Bridge Guidance
13 $0.30 $0.85-$1.05 2021 Adj. EPS Organic Revenue Growth / Conversion ($0.15) FX $8.45-$8.65 $7.63 Acquisitions / Dispositions ($0.18) Corporate, Interest, Shares, and ETR 2022E Adj. EPS Adjusted EPS(1) ($/share) 2022E Adjusted EPS up 11-13% Year-over-Year FY 2022 Adjusted EPS Bridge Guidance (1) N
Slide 14: Dover Strategy Delivers Through-Cycle Value Creation
14 Dover Strategy Delivers Through-Cycle Value Creation $7.0B $7.1B $6.7B $7.9B 18.9% 20202018 2021 14.8% 16.7%16.6% 2019 2022E $8.5 – $8.7B ~4-5% Org. Rev CAGR(1) Adj. Segment EBIT Margin (%) Revenue ($B) $4.97 $5.93 $5.67 $7.63 2018 2019 2020 2021 2022E $8.45-$8.65 +14-15% CAGR (1) Non-GAAP measur
Slide 15: Appendix
15 Appendix
Slide 16: Organic Revenue and Bookings Bridges
16 Organic Revenue and Bookings Bridges Note: Numbers may not add due to rounding Revenue Bookings Revenue Bookings 16.3% 19.7% 14.1% 33.2% -4.3% -7.0% 5.8% 11.2% 2.8% 0.7% 8.0% 7.7% 29.8% 26.3% 26.6% 48.2% 13.3% 69.9% 22.0% 53.3% 11.5% 22.2% 15.3% 31.9% 1.5% 1.4% 1.3% 1.5% -0.5% -0.5% -0.2% -0.2% -
Slide 17: Q4 2020 to Q4 2021 Revenue and Bookings Bridges by Segment
17 Q4 2020 to Q4 2021 Revenue and Bookings Bridges by Segment Note: Numbers may not add due to rounding DEP DCEF DII DPPS DCST Total 394 409 288 347 342 1,780 64 (18) 8 104 45 204 (3) 3 (5) (4) (2) (12) 7 16 2 1 (9) 17 463 411 292 447 376 1,989 DEP DCEF DII DPPS DCST Total 484 403 305 365 379 1,936
Slide 18: FY 2020 to FY 2021 Revenue and Bookings Bridges by Segment
18 FY 2020 to FY 2021 Revenue and Bookings Bridges by Segment Note: Numbers may not add due to rounding DEP DCEF DII DPPS DCST Total 1,531 1,476 1,038 1,324 1,316 6,684 216 86 83 352 289 1,025 25 33 28 25 17 128 9 53 14 8 (14) 70 1,781 1,648 1,163 1,709 1,608 7,907 DEP DCEF DII DPPS DCST Total 1,558
Slide 19: Reconciliation of Q4 2021 Net Earnings to Adj. EBIT and Adj. EBITDA
19 Reconciliation of Q4 2021 Net Earnings to Adj. EBIT and Adj. EBITDA and Calculation of Adj. EBIT Margin and Adj. EBITDA Margin by Segment (1) Adjusted depreciation and amortization expense excludes depreciation and amortization included within rightsizing and other costs Note: Numbers may not add
Slide 20: Reconciliation of FY 2021 Net Earnings to Adj. EBIT and Adj. EBITDA
20 Reconciliation of FY 2021 Net Earnings to Adj. EBIT and Adj. EBITDA and Calculation of Adj. EBIT Margin and Adj. EBITDA Margin by Segment (1) Adjusted depreciation and amortization expense excludes depreciation and amortization included within rightsizing and other costs Note: Numbers may not add
Slide 21: Reconciliation of Q4 2020 Net Earnings to Adj. EBIT and Adj. EBITDA
21 Reconciliation of Q4 2020 Net Earnings to Adj. EBIT and Adj. EBITDA and Calculation of Adj. EBIT Margin and Adj. EBITDA Margin by Segment (1) Adjusted depreciation and amortization expense excludes depreciation and amortization included within rightsizing and other costs Note: Numbers may not add
Slide 22: Reconciliation of FY 2020 Net Earnings to Adj. EBIT and Adj. EBITDA
22 Reconciliation of FY 2020 Net Earnings to Adj. EBIT and Adj. EBITDA and Calculation of Adj. EBIT Margin and Adj. EBITDA Margin by Segment (1) Adjusted depreciation and amortization expense excludes depreciation and amortization included within rightsizing and other costs Note: Numbers may not add
Slide 23: Reconciliation of Adjusted Net Earnings and Adjusted Diluted EPS
23 Reconciliation of Adjusted Net Earnings to Net Earnings and Adjusted Diluted EPS to Diluted EPS Note: Numbers may not add due to rounding ($ in millions, except per share data) Q4 2021 Q4 2020 FY 2021 FY 2020 FY 2019 FY 2018 Net earnings from continuing operations ($) 363 182 1,124 683 678 591 Ac
Slide 24: Reconciliation of FY 2018-21 Earnings to Adj. Segment EBIT
24 Reconciliation of FY 2018-21 Earnings from Continuing Operations to Adj. Segment EBIT and Calculation of Adj. EBIT Margin FY 2021 FY 2020 FY 2019 FY 2018 7,907 6,684 7,136 6,992 1,124 683 678 591 161 127 124 130 102 108 121 122 277 158 165 134 Loss on extinguishment of debt - - 24 - 1,664 1,077 1
Slide 25: Reconciliation of Free Cash Flow, EPS to Adjusted EPS
25 Reconciliation of Free Cash Flow, EPS to Adjusted EPS, and Adjusted EBIT Conversion Margin Range FY 2022 Guidance for Earnings per Share (GAAP) $7.45 $7.65 Acquisition-related amortization, net $0.89 Rightsizing and other costs, net $0.11 FY 2022 Guidance for Adjusted Earnings per Share (Non-GAAP
Slide 26: Non-GAAP Definitions
26 Non-GAAP Definitions Definitions of Non-GAAP Measures: Adjusted Net Earnings: is defined as net earnings adjusted for the effect of acquisition-related amortization, rightsizing and other costs/benefits, gain/loss on dispositions, loss on extinguishment of debt, loss on assets held for sale, and
Slide 27: Performance Measure Definitions
27 Performance Measure Definitions Definitions of Performance Measures: Bookings represent total orders received from customers in the current reporting period. This metric is an important measure of performance and an indicator of revenue order trends. Organic Bookings represent total orders receiv