Slide 1: Earnings Conference Call First Quarter 2015
Earnings Conference Call First Quarter 2015 April 21, 2015 – 9:00am CT
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. We caution everyone to be guided in their analysis of Dover Corporation by referring to the documents we file
Slide 3: Q1 2015 Performance
3 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 Q1* Q2 Q3* Q4* Q1 Q1 2015 Performance Adjusted Earnings Per Share* (continuing operations) Q1 Q1/Q1 * Excludes discrete & other tax benefits of $0.01 in Q1 2014, $0.03 in Q3 2014 and $0.02 in Q4 2014 (a) See Press Release for free cash flow reconciliation
Slide 4: Revenue Q1 2015
4 Revenue Q1 2015 Energy Engineered Systems Fluids Refrigeration & Food Equip Total Organic -24% 6% 2% -7% -6% Acquisitions 15% 1% 2% - 5% Currency -1% -6% -5% -3% -4% Total -10% 1% -1% -10% -5%
Slide 5: Sequential Results – Q4 2014 to Q1 2015
5 Printing & ID Industrial $374 $337 $535 $417 $248 $236 $346 $339 $368 $420 $0 $200 $400 $600 $800 DE Q4 DE Q1 DES Q4 DES Q1 DF Q4 DF Q1 DRE Q4 DRE Q1 Sequential Results – Q4 2014 → Q1 2015 5 $345 $343 $550 $430 $247 $230 $377 $340 $459 $372 $0 $200 $400 $600 $800 DE Q4 DE Q1 DES Q4 DES Q1 DF Q4 DF
Slide 6: Energy
6 Energy Revenue decline driven by steeper and broader deterioration in NA oil & gas markets resulting in destocking and reduced capex spending – Drilling and production most impacted – Bearings & Compression less impacted due to broader end-markets served – Automation benefitting from recent acqu
Slide 7: Engineered Systems
7 Engineered Systems Revenue growth is broad- based – Printing & Identification grew 8% organically, driven by strong digital printing activity and solid global markets for core printing and coding products – Industrial’s organic growth of 4% was broad-based, led by waste handling and auto-related
Slide 8: Fluids
8 Fluids Organic revenue grew 2%, driven by continued strong activity in Fluid Transfer; Revenue impacted by 5% FX headwind – Fluid Transfer continues to benefit from increased safety and environmental regulations – Pumps impacted by timing of shipments to customers in plastics & polymers markets
Slide 9: Refrigeration & Food Equipment
9 Refrigeration & Food Equipment Revenue decline driven by softer spending on refrigeration cases and systems, and timing of shipments in food packaging equipment – Glass door, heat exchanger and commercial kitchen equipment markets continue to perform well Segment margin performance reflects lo
Slide 10: Q1 2015 Overview
10 Q1 2015 Overview 10 Q1 2015 Net Interest Expense $32 million, down $1 million from last year and inline with expectations Corporate Expense $35 million, up $4 million from last year; largely consistent with expectations Effective Tax Rate (ETR) Q1 rate was 28.8%, essentially inline with revised f
Slide 11: Energy Update
11 Energy Update Market Organic Growth Acq. Growth FX Impact Total Growth Organic Growth Acq. Growth FX Impact Total Growth Drilling and Prod. (19% - 17%) ≈ 7% (≈ 1%) (14% - 11%) (30% - 32%) ≈ 10% (1%-2%) (24% - 20%) Bearings and Comp. 2% - 4% - (≈ 1%) 1% - 3% (2% - 4%) - (≈ 2%) (6% - 4%) Automation
Slide 12: FY 2015 Guidance
12 FY 2015 Guidance Revenue – Organic revenue: (2% - 4%) – Completed acquisitions: ≈ 2% – FX impact: (4%) – Total revenue: (4% - 6%) Corporate expense: ≈ $125 million Interest expense: ≈ $127 million Full-year tax rate: ≈ 29.0% Capital expenditures: ≈ 2.3% of revenue FY free cash flow: ≈
Slide 13: 2015 EPS Guidance – Continuing Ops
13 2015 EPS Guidance – Continuing Ops 2014 EPS – Continuing Ops (GAAP) $ 4.61 – Less 2014 tax items(1): (0.07) 2014 Adjusted EPS $ 4.54 – Net restructuring and one-time items(2): (0.01) - 0.02 – Performance including restructuring benefits(3): (0.58 - 0.47) – Acquisitions(4): 0.04 - 0.06 – Share
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