Dover Corporation · NYSE:DOV

Dover — Q1 2021 Earnings Presentation

22 slides from Dover's earnings presentation, Apr 20, 2021

  1. Slide 1: Earnings Conference Call First Quarter 2021

    Earnings Conference Call First Quarter 2021 April 20, 2021 – 9:00am CT Exhibit 99.2

  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

  3. Slide 3: Q1 2021 Highlights

    3 Free Cash Flow(1) +320 bps Adj. Segment EBIT Margin(1) to 19.1% +$110M Y-o-Y +560 bps to 7.8% of Revenue Q1 2021 Highlights (1) Non-GAAP measures (definitions and reconciliations in appendix) (2) See performance measures definitions in appendix (3) Refer to definition of total segment earnings (EB

  4. Slide 4: Summary Corporate Q1 Results

    4 Summary Corporate Q1 Results Q1 2021 Highlights and Comments Revenue change (Y-o-Y) All-in Organic(1) 13% 9%  Y-o-Y growth in all segments  Q1 FX impact: +3%; acquisitions (net of divestitures) +1% Bookings change (Y-o-Y) All-in(2) Organic(2) +31% +27%  Q1 book-to-bill(2): 1.25; bookings up Y-o

  5. Slide 5: Segment Revenue and Adjusted EBIT Performance Commentary

    5 Segment Revenue ($M) / Organic Change % Adj. EBIT % / bps ∆ Y-o-Y Performance Commentary DEP $428 +2% 17.0% +0 bps  Top line strength in vehicle aftermarket, industrial automation, and aerospace & defense  Backlog(2) up $109M Y-o-Y (+24%); book-to-bill(2) 1.23; organic bookings(2) up 25% driven

  6. Slide 6: Q1 2021 Revenue and Bookings Bridges

    6 Q1 2020 Revenue & Bookings Q1 2021 Revenue Change in Organic Revenue(1): +$145M, or +8.8% DII ACQ./ DISP. (2) DFS DPPS DRFE FX Q1 2021 Q1 2020 ACQ./ DISP. (3) FXDEP DPPSDFS DII DRFE Q1 2021 Note: $ in millions. Numbers may not add due to rounding Q1 2021 Bookings(4) Change in Organic Bookings(4):

  7. Slide 7: Q1 2021 Adjusted Segment EBIT and Adjusted Net Earnings

    7 Q1 2021 Adjusted Segment EBIT and Adjusted Net Earnings SEGMENT EBIT ACQ. AMORT. GAIN ON SALE CORP. EXPENSE GAAP EARNINGS RIGHT SIZING ADJ. EARNINGS INT./TAX EXPENSE ADJ. EARNINGS ACQ. AMORT. RIGHT SIZING GAAP EARNINGS Change in Adjusted Net Earnings (3) +$60M 176 6 -5 26 203 94 -14 -21 263 -27 Q1

  8. Slide 8: Q1 2021 Free Cash Flow

    8 Q1 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 Q1 ’21 Q1 ’20 ∆ Net earnings 233 176 +57 Adjustmen

  9. Slide 9: Trends and Business Outlook

    9 Trends and Business Outlook Segment Comments DEP  Strength in vehicle aftermarket, industrial automation, and aerospace & defense  Waste handling backlog improved in Q1; shipments levered toward H2 ‘21  Industrial winches trending above expectation but recovery levered toward H2 ‘21 DFS  Susta

  10. Slide 10: FY2021 Guidance Update

    10 FY2021 Guidance Update (1) Non-GAAP measure (definition and/or reconciliation in appendix) Euro/Dollar assumption: 1.18 Initial Guide Revised Guide All-in Revenue Growth 8-10% 10-12% EPS GAAP Adj.(1) $5.42 - $5.62 $6.25 - $6.45 $5.92 - $6.02 $6.75 - $6.85 Tax rate 21% - 22% No change Free Cash Fl

  11. Slide 11: 2021 Recovery Expected to Result in Solid Through-Cycle Performance

    11 2021 Recovery Expected to Result in Solid Through-Cycle Performance $7.0B $7.1B $6.7B 18.2% $7.4 – 7.5B 16.7% 14.8% 2018 16.6% 2019 2020 2021E Adj. Segment EBIT Margin (%) Revenue ($B) $4.97 $5.93 $5.67 1 2 3 4 5 6 7 8 9 202020192018 2021E $6.75-$6.85 +11% CAGR (1) Non-GAAP measure (definitions a

  12. Slide 12: Appendix

    12 Appendix

  13. Slide 13: Q1 2020 to Q1 2021 Revenue and Bookings Bridges by Segment

    13 Q1 2020 to Q1 2021 Revenue and Bookings Bridges by Segment Note: Numbers may not add due to rounding DEP DFS DII DPPS DRFE Total 408 360 257 320 312 1,656 9 11 9 59 57 145 9 10 12 12 8 51 1 9 6 4 (5) 15 428 390 284 394 372 1,868 DEP DFS DII DPPS DRFE Total 415 373 273 369 355 1,785 103 27 0 163 1

  14. Slide 14: Organic Revenue and Bookings Bridges

    14 Organic Revenue and Bookings Bridges Revenue Bookings 2.3% 24.8% 3.0% 7.3% 3.7% 0.1% 18.4% 44.0% 18.3% 50.7% 8.8% 26.5% 1.2% 1.5% -0.3% -0.3% 3.1% 3.0% Total 12.8% 30.7% Geographic Revenue Growth Factors Q1 2021 6.9% 3.0% 12.7% 19.8% -4.7% 8.8% 1.2% -0.3% 3.1% Total 12.8% Currency translation Org

  15. Slide 15: Reconciliation of Q1 2021 Net Earnings to Adj. EBIT and Adj. EBITDA

    15 Reconciliation of Q1 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 DEP DFS DII DPPS DRFE Tot

  16. Slide 16: Reconciliation of Q1 2020 Net Earnings to Adj. EBIT and Adj. EBITDA

    16 Reconciliation of Q1 2020 Net Earnings to Adj. EBIT and Adj. EBITDA and Calculation of Adj. EBIT Margin and Adj. EBITDA Margin by Segment DEP DFS DII DPPS DRFE Total 408 360 257 320 312 1,656 - - - - - 176 - - - - - 24 - - - - - 26 - - - - - 37 69 53 51 66 24 264 16.9% 14.9% 20.1% 20.7% 7.5% 15.9

  17. Slide 17: Reconciliation of Adjusted Net Earnings and Adjusted Diluted EPS

    17 Reconciliation of Adjusted Net Earnings to Net Earnings and Calculation of Adjusted Diluted EPS under U.S. GAAP Note: Numbers may not add due to rounding ($ in millions, except per share data) Q1 2021 Q1 2020 FY 2020 FY 2019 FY 2018 Net earnings from continuing operations ($) 233 176 683 678 591

  18. Slide 18: Reconciliation of FY 2020, 2019, 2018 Earnings to Adj. Segment EBIT

    18 Reconciliation of FY 2020, FY 2019, and FY 2018 Earnings from Continuing Operations to Adj. Segment EBIT and Calculation of Adj. EBIT Margin FY 2020 FY 2019 FY 2018 6,684 7,136 6,992 683 678 591 127 124 130 108 121 122 158 165 134 Loss on extinguishment of debt - 24 - 1,077 1,112 977 16.1% 15.6%

  19. Slide 19: Reconciliation of Free Cash Flow, EPS to Adjusted EPS, and EBIT Conversion Margin

    19 Reconciliation of Free Cash Flow, EPS to Adjusted EPS, and Adjusted EBIT Conversion Margin Range 2021 Guidance for Earnings per Share (GAAP) $5.92 $6.02 Acquisition-related amortization, net $0.73 Rightsizing and other costs, net $0.10 2021 Guidance for Adjusted Earnings per Share (Non-GAAP) $6.7

  20. Slide 20: Non-GAAP Definitions

    20 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, and gain on dispositions. Adjusted Net Earnings Margin: is defined as adjusted net earnings divided by

  21. Slide 21: Performance Measure Definitions

    21 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

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