Slide 1: Dover Corporation Third Quarter 2007 Conference Call Presentation
Dover Corporation Third Quarter 2007 Conference Call Presentation October 24, 2007 8:00 a.m. Eastern
Slide 2: Forward Looking Statements
Forward Looking Statements We want to remind everyone that our comments may contain forward-looking statements that are inherently subject to uncertainties. We caution everyone to be guided in their analysis of Dover Corporation by referring to our Form 10K for a list of factors that could cause our
Slide 3: Dover's 2007 Performance
Dover’s 2007 Performance Continuing Earnings Per Share YOY Seq. 0.90 Q3 2007 Q3 / Q3 Q3 / Q2 0.85 Revenue $1.8B +15% +2% 0.80 0.75 EPS $0.88 +16% +5% 0.70 Segment Margins 15.5% +30 bps -10bps 0.65 0.60 Organic Growth 3.3% 0.55 YTD 0.50 $2.36 Acquisition Growth 9.6% 0.45 $2.88 Free Cash Flow $180M -2
Slide 4: Q3 2007 Results – Continuing Operations
Q3 2007 Results – Continuing Operations 4
Slide 5: Other Metrics
Other Metrics CONTINUING EARNINGS Up 15% rm 7 2006 2007 3rd Qtr {in milltons} CAPITAL EXPENDITURES Down 25% $49.6 $37.2 2006 2007 ard Qtr {In millions} wLL 1) CORPORATION SEGMENT OPERATING MARGINS Up 30bps 15.2% 15.5% 2006 ord atr 2007 FREE CASH FLOW Down 23% $233.8 $180.0 2006 3rd Otr 2007 {in mill
Slide 6: Geographic Revenue Mix (nine months 2007)
Geographic Revenue Mix (nine months 2007) Dover Growth Rate: 15% Total Asia 12.2% (0.2%) Rest of World 10.9% 12.2% United States 55.8% Europe 21.1% 14.8% 32.4% Growth Rate 6
Slide 7: PerformanceCOUNTS
PerformanceCOUNTS Target Q3 2007 Q3 2006 Inventory Turns 8 6.3 6.3 Earnings Growth 10% 14.6% 29.4% Operating Margins 15% 15.5% 15.2% WC as a % of Revenue 20% 19.6% 19.3% ROI (Operating) 25% 25.1% 26.3% Dover exceeded 4 out 5 metrics in Q3 2007. 7
Slide 8: Revenue Growth – Q3 2007
te Revenue Growth — Q3 2007 20% 16% 12% 8% 4% 0% 4% 8% Industrial Engineered Fluid Electronic DOVER Products Systems Management Technologies | | i} | Organic |[Acquisition | FX |
Slide 9: Industrial Products
Industrial Products ($ in millions) Q3 2007 Q3 2006 % Change Revenue $548.8 $482.5 +14% Earnings $75.9 $61.9 +23% Op. Margin 13.8% 12.8% Bookings $525.8 $494.5 +6% Material Handling Platform: Paladin accounted for a significant portion of the increased revenue in the segment. Plant rationalization
Slide 10: Engineered Systems
Engineered Systems ($ in millions) Q3 2007 Q3 2006 % Change Revenue $560.9 $430.3 +30% Earnings $79.5 $62.9 +26% Op. Margin 14.2% 14.6% Bookings $525.4 $436.6 +20% Product Identification Platform: Revenue increase driven by Markem acquisition and double digit gains on core direct marking business.
Slide 11: Fluid Management
Fluid Management ($ in millions) Q3 2007 Q3 2006 % Change Revenue $374.5 $337.5 +11% Earnings $79.2 $67.3 +18% Op. Margin 21.1% 19.9% Bookings $371.7 $345.2 +8% Energy Platform: Revenue increase driven by growth in U.S. oil and gas drilling and demand for power generation, slightly offset by weakn
Slide 12: Electronic Technologies
Electronic Technologies ($ in millions) Q3 2007 Q3 2006 % Change Revenue $363.0 $358.1 +1% Earnings $50.8 $52.7 -4% Op. Margin 14.0% 14.7% Bookings $381.8 $340.6 +12% Backlog $266.5 $227.5 +17% Medical and military/space end-markets remain strong while overall telecom markets remained relatively f
Slide 13: Third Quarter Overview
Third Quarter Overview Net Debt to Capital Ratio Third quarter 2007 vs. YE 2006: 28.0% and 26.8%, respectively. Free Cash Flow Third quarter 2007: $180.0 million; 9.8% of revenue. Year-to-date 2007: $406.9 million; 7.6% of revenue. Expect full year free cash flow to be 9% - 10% of revenue. Eff