Dover Corporation · NYSE:DOV
Dover — Q2 2019 Earnings Presentation
21 slides from Dover's earnings presentation, Jul 18, 2019
Slide 1: Earnings Conference Call Second Quarter 2019
Exhibit 99.2 July 18, 2019 – 9:00am CT Earnings Conference Call Second Quarter 2019
Slide 2: Forward-Looking Statements and Non-GAAP Measures
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. We caution everyone to be guided in their analysis of Dover Corporation by referring to the documents we file f
Slide 3: Q2 2019 - Highlights
Q2 2019 - Highlights Organic revenue growth of 3% Organic bookings decline 2% 3% unfavorable FX impact 2% unfavorable FX impact Solid growth in DF and DES Industrial DES bookings lower as expected Wins in DRFE support growth outlook for the year Adjusted earnings from continuing Adjusted diluted EPS
Slide 4: Q2 2019 – Financial Summary
Q2 2019 – Financial Summary US GAAP from continuing operations Q2 2019 Q2 2018 ∆ Revenue ($M) 1,811 1,798 1% Earnings ($M) 198 166 19% Diluted EPS ($) 1.35 1.08 25% Non-GAAP(1) from continuing operations Adjusted EBIT – Segment ($M) 311 276 13% margin percent 17.2% 15.3% 190 bps Adjusted EBITDA – Se
Slide 5: Q2 2019 - Revenue & Bookings
Q2 2019 - Revenue & Bookings Revenue Split Revenue Change in Organic Revenue: +$52M, or 2.9% 4% 11% By 22% Region 53% 10% ($M) US 1,798 12 52 -11 -45 5 1,811 OTHER AMER. Q2 2018 DES DF DRFE FX ACQ./ Q2 2019 ORG. ORG. ORG. DISP. (1) EUROPE ASIA OTHER Bookings Change in Organic Bookings: -$31M, or -1.
Slide 6: Q2 2019 – Adj. Segment EBIT & EBITDA Walk, and Earnings Walk
Q2 2019 – Adj. Segment EBIT & EBITDA Walk, and Earnings & Adj. Earnings Walk – (Continuing Operations basis) Change in Adjusted Segment EBIT (3) +$35M +13% 20.8% 19.1% 17.2% 15.3% 276 68 343 5 35 -7 376 -65 311 ($M) ADJ. EBIT D&A (1) ADJ. EBITDA DES DF DRFE ADJ. EBITDA D&A (2) ADJ. EBIT Q2 2018 Q2 2
Slide 7: H1 2019 – Free Cash Flow
H1 2019 – Free Cash Flow $M H1 2019 H1 2018 ∆ Net earnings $304 $271 $33 Loss from disc. ops. 0 4 (4) Loss on assets held for sale 47 0 47 D&A 136 138 (2) Chg. in working capital (164) (129) (35) Chg. in other(1) (90) (109) 19 Cash flow from operations $233 $175 $58 Capex (91) (96) 5 Free cash flow
Slide 8: Segment Information
Segment Information 8
Slide 9: Engineered Systems – Financial Results
Engineered Systems – Financial Results Revenue Bookings Printing & Identification ($M) . Organic growth: 1.7% . Organic change: -5.5% . Strength in ESG and expected . Driven by DDP and ESG slower quarter in DDP . Pipeline for solid Q3 703 12 -18 0 697 720 -39 -19 0 662 ($M) Q2 2018 ORG. FX ACQ./ Q2
Slide 10: Fluids – Financial Results
Fluids – Financial Results Revenue Bookings Fueling & Transport ($M) . Organic growth: 7.5% . Continued strength across . Organic growth: 7.0% portfolio 694 52 -22 5 729 737 52 -22 3 770 ($M) Q2 2018 ORG. FX ACQ./ Q2 2019 Q2 2018 ORG. FX ACQ./ Q2 2019 Pumps DISP. (2) DISP. (3) Adjusted EBIT, EBITDA
Slide 11: Refrigeration & Food Equipment – Financial Results
Refrigeration & Food Equipment – Financial Results Revenue Bookings Refrigeration ($M) . Organic change: -2.8% . Organic change: -10.1% . Weak heat exchanger, esp. in Asia . Recent customer wins support growth outlook for 2H 402 -11 -5 0 385 429 -43 -1 0 384 ($M) Q2 2018 ORG. FX ACQ./ Q2 2019 Q2 201
Slide 12: Q2 Adjusted EPS grew by 20%
Q2 Adjusted EPS grew by 20% Adjusted EPS(1) ($/share) $1.56 Q2 ’19 impact $0.03 $0.02 from discrete $0.06 tax items $0.02 21% EBIT conversion $0.15 Q2 ‘18 $1.30 impact from $0.02 discrete tax items Q2 ’18 SG&A Rightsizing Acquisitions / Revenue Growth Shares, ’Q2 19 Adj. EPS Benefit Dispositions / C
Slide 13: 2019 FY Guidance
2019 FY Guidance 13
Slide 14: Updated FY 2019F Guidance
Updated FY 2019F Guidance Engineered Refrigeration 2019 Systems Fluids & Food Equip Total Organic revenue 4% - 5% 4% - 5% 1% - 2% 3% - 5% Acquisitions - 2% - 1% Dispositions - (1%) - (0%) Currency (1%) - (2%) (1%) - (2%) (1%) (1%) - (2%) Total revenue 3% - 4% 4% - 5% 0% - 1% 3% - 4% Adjusted EPS: $5
Slide 15: Appendix
Appendix 15
Slide 16: Reconciliation of Q2 2019 Earnings to Adj. EBIT and Adj. EBITDA
Reconciliation of Q2 2019 Earnings from Continuing Operations to Adj. EBIT and Adj. EBITDA and calculation of Adj. EBIT margin and Adj. EBITDA margin by Segment (U.S. GAAP) Q2 2019 ($ in millions) DES DF DRFE Total Revenue 697 729 385 1,811 Earnings from continuing operations - - - 198 Add back: Cor
Slide 17: Reconciliation of Q2 2018 Earnings to Adj. EBIT and Adj. EBITDA
Reconciliation of Q2 2018 Earnings from Continuing Operations to Adj. EBIT and Adj. EBITDA and calculation of Adj. EBIT margin and Adj. EBITDA margin by Segment (U.S. GAAP) Q2 2018 ($ in millions) DES DF DRFE Total Revenue 703 694 402 1,798 Earnings from continuing operations - - - 166 Add back: Cor
Slide 18: Reconciliation of Adjusted Earnings and Adjusted diluted EPS
Reconciliation of Adjusted Earnings from Continuing Operations to Earnings from Continuing Operations and calculation of Adjusted diluted EPS under U.S. GAAP ($ in millions, except per share data) Q2 2019 Q2 2018 Earnings from continuing operations ($) 198 166 Acquisition-related amortization, pre t
Slide 19: Reconciliation of Free Cash Flow and Adjusted EPS
Reconciliation of Free Cash Flow; and EPS from Continuing Operations to Adjusted EPS from Continuing Operations Reconciliation Free Cash Flow Reconciliation Jun 30, Jun 30, ($ millions) 2019 2018 Net Cash Provided by Operating Activities 233 175 Capital Expenditures (91) (96) Free Cash Flow 142 79 A
Slide 20: Non-GAAP Definitions
Non-GAAP Definitions Definitions of Non-GAAP Measures: Adjusted Earnings from Continuing Operations: is defined as earnings from continuing operations adjusted for the effect of acquisition-related amortization, rightsizing and other costs and a 2019 loss on assets held for sale. Adjusted Diluted Ea
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