Slide 1: Earnings Conference Call Fourth Quarter and Full Year 2021
January 27, 2022 – 8:30am CT Earnings Conference Call Fourth Quarter and Full Year 2021
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, including the impacts of the novel coronavirus (COVID-19) on the global economy and on our customers, suppliers
Slide 3: Q4 and 2021 Highlights
Q4 and 2021 Highlights Revenue Bookings(2) Q4 ’21 FY ’21 Q4 ’21 FY ’21 All in: +12% to $2.0B +18% to $7.9B All in: +23% to $2.4B +35% to $9.4B Organic(1): +22% +32% Organic(1): +11% +15% Book-to-bill(2): 1.20 1.19 Free Cash Flow(1) Segment EBIT Margin(3) Q4 ’21 FY ’21 Q4 ’21 FY ’21 $M: $277M $944M G
Slide 4: Summary Corporate Q4 and Full Year Results
Summary Corporate Q4 and Full Year Results Q4 2021 FY 2021 Highlights and Comments Revenue change All-in +12% +18% Q4 Y-o-Y organic growth in all segments but DCEF (Y-o-Y) Organic(1) +11% +15% Q4 FX impact: -1%; acquisitions (net of divestitures) +1% Bookings change All-in(2) +23% +35% Q4 Book
Slide 5: Segment Results
Segment Results Q4 2021(1) FY 2021(1) Revenue Revenue Adj. EBIT % Adj. EBIT % ($M) / ($M) / Segment / bps ∆ / bps ∆ Q4 Performance Commentary Organic Organic Y-o-Y Y-o-Y Change % Change % Top line growth and strong order rates across all businesses $463 12.5% $1,781 14.7% DEP Margin pressured by
Slide 6: Revenue & Bookings
Revenue & Bookings Q4 2021 Revenue Change in Organic Revenue(1): +$204M, or +11.5% ’21 Organic Rev Growth(1) Q4 FY ($M) 1,780 64 -18 8 104 45 -12 17 1,989 US 54% 16% 16% Q4 2020 DEP DCEF DII DPPS DCST FX ACQ./ Q4 2021 DISP. (2) Organic Q4 2021 Bookings(4) Change in Organic Bookings(4): +$431M, or +2
Slide 7: Q4 2021 Adjusted Segment EBIT and Adjusted Net Earnings
Q4 2021 Adjusted Segment EBIT and Adjusted Net Earnings Change in Adjusted Segment EBIT (3) +$47M 21.2% 17.7% 20.9% 17.1% +60 bps 305 68 373 -2 -10 1 57 2 422 -70 352 ($M) ADJ. EBIT D&A (1) ADJ. EBITDA DEP DCEF DII DPPS DCST ADJ. EBITDA D&A (2) ADJ. EBIT Q4 2020 Q4 2021 Change in Adjusted Net Earnin
Slide 8: FY 2021 Free Cash Flow
FY 2021 Free Cash Flow $M FY21 FY20 ∆ Net earnings 1,124 683 +440 Adjustment for gain on dispositions (206) (5) -201 D&A 290 279 +11 Change in working capital (265) 48 -313 Change in other(1) 173 100 +74 Cash flow from operations 1,116 1,105 +11 Capex (171) (166) -6 Free cash flow(2) 944 939 +5 FCF
Slide 9: Delivering on Capital Allocation Priorities
Delivering on Capital Allocation Priorities Priorities Communicated in September 2019 2021 Results 1 Invest Organically $171M capex in ’21; 2.2% of Revenue High-confidence organic investments Compelling pipeline of organic growth and – Capacity for growth productivity investments – Digitizatio
Slide 10: Substantial Investments in Support of Growth and Productivity
Substantial Investments in Support of Growth and Productivity 2021 / 2022E Capex Comparison Major Investment Projects $ in millions Total OpCo Description Spend(1) Productivity 200-220 ESG Automation of assembly flow at Ft. Payne, AL factory Product and production flow optimization at Madison, IN 17
Slide 11: Business Outlook
Business Outlook Revenue Profitability ’22 Organic Demand Growth(1) Price – Inputs Segment trends Outlook Cost availability Comments Favorable market outlook, strong bookings and healthy backlog across all HSD- businesses DEP LDD COVID protocol absenteeism and logistics costs continue to impact
Slide 12: FY 2022 Guidance
FY 2022 Guidance All-in: 8% - 10% Revenue Organic(1): 7% - 9% Tax rate: 21% – 22% EPS and other GAAP EPS: $7.45 - $7.65 Adjusted EPS(1): $8.45 - $8.65 Free Cash Flow(1): 13% - 15% of Revenue Cash Flow Capex: $200 – $220 million Euro/Dollar assumption: 1.18 (1) Non-GAAP measure (definit
Slide 13: FY 2022 Adjusted EPS Bridge Guidance
FY 2022 Adjusted EPS Bridge Guidance Adjusted EPS(1) ($/share) ($0.18) $8.45-$8.65 $0.30 ($0.15) $0.85-$1.05 $7.63 2021 Organic FX Acquisitions / Corporate, Interest, 2022E Adj. EPS Revenue Growth Dispositions Shares, and ETR Adj. EPS / Conversion 2022E Adjusted EPS up 11-13% Year-over-Year Note: Nu
Slide 14: Dover Strategy Delivers Through-Cycle Value Creation
Dover Strategy Delivers Through-Cycle Value Creation Revenue and Adj. Segment EBIT Margin(1) Adj. Earnings Per Share(1) Adj. Segment EBIT Margin (%) Revenue ($B) +14-15% CAGR ~4-5% Org. $8.45-$8.65 $7.63 Rev CAGR(1) $8.5 – $8.7B $5.93 $5.67 $4.97 $7.9B $7.0B $7.1B $6.7B ~25-35% 2018 2019 2020 2021 2
Slide 15: Appendix
Appendix 15
Slide 16: Organic Revenue and Bookings Bridges
Organic Revenue and Bookings Bridges Segment Growth Factors Q4 2021 Organic Growth FY 2021 Organic Growth Revenue Bookings Revenue Bookings Organic Engineered Products 16.3% 19.7% 14.1% 33.2% Clean Energy & Fueling -4.3% -7.0% 5.8% 11.2% Imaging & Identification 2.8% 0.7% 8.0% 7.7% Pumps & Process S
Slide 17: Q4 2020 to Q4 2021 Revenue and Bookings Bridges by Segment
Q4 2020 to Q4 2021 Revenue and Bookings Bridges by Segment Revenue Bridge by Segment ($ in millions) DEP DCEF DII DPPS DCST Total Q4 2020 Revenue 394 409 288 347 342 1,780 Organic Growth 64 (18) 8 104 45 204 FX (3) 3 (5) (4) (2) (12) Acquisitions / Dispositions 7 16 2 1 (9) 17 Q4 2021 Revenue 463 41
Slide 18: FY 2020 to FY 2021 Revenue and Bookings Bridges by Segment
FY 2020 to FY 2021 Revenue and Bookings Bridges by Segment Revenue Bridge by Segment ($ in millions) DEP DCEF DII DPPS DCST Total FY 2020 Revenue 1,531 1,476 1,038 1,324 1,316 6,684 Organic Growth 216 86 83 352 289 1,025 FX 25 33 28 25 17 128 Acquisitions / Dispositions 9 53 14 8 (14) 70 FY 2021 Rev
Slide 19: Reconciliation of Q4 2021 Net Earnings to Adj. EBIT and Adj. EBITDA
Reconciliation of Q4 2021 Net Earnings to Adj. EBIT and Adj. EBITDA and Calculation of Adj. EBIT Margin and Adj. EBITDA Margin by Segment Q4 2021 ($ in millions) DEP DCEF DII DPPS DCST Total Revenue 463 411 292 447 376 1,989 Net earnings - - - - - 363 Add back: Corporate expense - - - - - 48 Interes
Slide 20: Reconciliation of FY 2021 Net Earnings to Adj. EBIT and Adj. EBITDA
Reconciliation of FY 2021 Net Earnings to Adj. EBIT and Adj. EBITDA and Calculation of Adj. EBIT Margin and Adj. EBITDA Margin by Segment FY 2021 ($ in millions) DEP DCEF DII DPPS DCST Total Revenue 1,781 1,648 1,163 1,709 1,608 7,907 Net earnings - - - - - 1,124 Add back: Corporate expense - - - -
Slide 21: Reconciliation of Q4 2020 Net Earnings to Adj. EBIT and Adj. EBITDA
Reconciliation of Q4 2020 Net Earnings to Adj. EBIT and Adj. EBITDA and Calculation of Adj. EBIT Margin and Adj. EBITDA Margin by Segment Q4 2020 ($ in millions) DEP DCEF DII DPPS DCST Total Revenue 394 409 288 347 342 1,780 Net earnings - - - - - 182 Add back: Corporate expense - - - - - 40 Interes
Slide 22: Reconciliation of FY 2020 Net Earnings to Adj. EBIT and Adj. EBITDA
Reconciliation of FY 2020 Net Earnings to Adj. EBIT and Adj. EBITDA and Calculation of Adj. EBIT Margin and Adj. EBITDA Margin by Segment FY 2020 ($ in millions) DEP DCEF DII DPPS DCST Total Revenue 1,531 1,476 1,038 1,324 1,316 6,684 Net earnings - - - - - 683 Add back: Corporate expense - - - - -
Slide 23: Reconciliation of Adjusted Net Earnings to Net Earnings and Adjusted Diluted EPS
Reconciliation of Adjusted Net Earnings to Net Earnings and Adjusted Diluted EPS to Diluted EPS ($ in millions, except per share data) Q4 2021 Q4 2020 FY 2021 FY 2020 FY 2019 FY 2018 Net earnings from continuing operations ($) 363 182 1,124 683 678 591 Acquisition-related amortization, pre tax 36 35
Slide 24: Reconciliation of FY 2018-21 Earnings to Adj. Segment EBIT
Reconciliation of FY 2018-21 Earnings from Continuing Operations to Adj. Segment EBIT and Calculation of Adj. EBIT Margin ($ in millions) FY 2021 FY 2020 FY 2019 FY 2018 Revenue 7,907 6,684 7,136 6,992 Earnings from continuing operations 1,124 683 678 591 Add back: Corporate expense 161 127 124 130
Slide 25: Reconciliation of Free Cash Flow, EPS to Adjusted EPS, and Adjusted EBIT Conversion Margin
Reconciliation of Free Cash Flow, EPS to Adjusted EPS, and Adjusted EBIT Conversion Margin Free Cash Flow ($ millions) Q4 2021 Q4 2020 FY 2021 FY 2020 Net Cash Provided by Operating Activities 327 418 1,116 1,105 Capital Expenditures (50) (42) (171) (166) Free Cash Flow 277 376 944 939 Free Cash Flo
Slide 26: Non-GAAP Definitions
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 the
Slide 27: Performance Measure Definitions
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 received