Slide 1: First Quarter 2013 Earnings Conference Call
First Quarter 2013 Earnings Conference Call April 17, 2013 - 9:00am CT
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 by referring to our Form 10-K for a list of factors that could cause our results to
Slide 3: Q1 2013 Performance
$0.40 $0.50 $0.60 $0.70 $0.80 $0.90 $1.00 $1.10 $1.20 $1.30 $1.40 Q1* Q2* Q3* Q4* Q1* Q2 Q3* Q4* Q1* Revenue $2.0B 4% (a) EPS (cont.) $1.12 12% Bookings $2.2B 7% Seg. Margins 16.2% -50 bps Organic Rev. -1% Acq. Growth 6% FCF (b) $31M -67% Q1 2013 Performance Continuing Earnings Per Share • Solid rev
Slide 4: Revenue Q1 2013
4 Revenue Q1 2013 Communication Technologies Energy Engineered Systems Printing & Identification Total Dover Organic 4% - -5% -1% -1% Acquisitions - 6% 11% - 6% Currency - - - -1% < -1% Total 4% 6% 6% -2% 4%
Slide 5: Sequential Results – Q4 12 to Q1 13
$613 $664 $254 $238 $401 $373 $540 $561 $207 $204 $0 $300 $600 $900 DCT Q4 DCT Q1 DE Q4 DE Q1 DES Q4 DES Q1 DPI Q4 DPI Q1 $607 $755 $253 $237 $364 $379 $550 $621 $210 $224 $0 $250 $500 $750 $1,000 DCT Q4 DCT Q1 DE Q4 DE Q1 DES Q4 DES Q1 DPI Q4 DPI Q1 Sequential Results – Q4 12 → Q1 13 Fluid Solution
Slide 6: Communication Technologies
6 Communication Technologies • Solid growth in Consumer Electronics and Medical Technology markets • Consumer Electronics revenue reflects normal seasonality • Aerospace/Defense and Telecom/Other markets generally stable • Margin impacted by customer mix, incremental restructuring costs and legal ex
Slide 7: Energy
7 Energy • Revenue and earnings growth driven by production and downstream markets and acquisitions; drilling continues to be soft as anticipated •Oil prices remain supportive of continued investment in production and international markets are robust • Operating margin of 24.9% reflects strong execu
Slide 8: Engineered Systems
8 Engineered Systems • Revenue growth driven by recent acquisitions •Results in refrigeration impacted by non-repeating project in prior year period • Margin performance reflects impact of Anthony acquisition • Bookings grow seasonally • Book-to-bill at a strong 1.13 $ in millions Quarterly Comments
Slide 9: Printing & Identification
Printing & Identification • Stable revenue in fast moving consumer goods partially offsets a sluggish industrial market, particularly in bar coding • Operating margin increase reflects the benefits of prior restructuring, cost initiatives and a favorable product mix • Several new product introductio
Slide 10: Q1 2013 Overview
Q1 2013 Overview Q1 2013 Net Interest Expense $30 million, essentially flat with last year, in-line with expectations Corporate Expense $34.0 million, down $3 million from last year. Effective Tax Rate (ETR) Q1 normalized rate was 27.8%, excluding $0.02 cents of discrete tax benefits(a) Capex $47 mi
Slide 11: FY 2013 Guidance – Revenue Growth by Segment
FY 2013 Guidance – Revenue Growth by Segment 11 Segment 2012 Revenue Mix 2013F Organic Growth 2013F Acquisition Growth* Total Communication Technologies 19% 9% - 11% - 9% - 11% Energy 27% 3% - 5% ≈ 2% 5% - 7% Engineered Systems 42% 2% - 4% ≈ 8% 10% - 12% Printing & Identification 12% 1% - 2% - 1% -
Slide 12: FY 2013 Guidance
FY 2013 Guidance Revenue: • Organic revenue : ≈ 3% - 5% • Acquisitions: ≈ 4% • Total revenue: ≈ 7% - 9% Corporate expense: ≈ $150 million Interest expense: ≈ $127 million Full-Year Tax Rate: ≈ 27.5% - 28.0%(a) Capital expenditures: ≈ 3.4% of revenue FCF for full year: ≈ 10% of revenue 12
Slide 13: 2013 EPS Guidance Bridge - Cont. Ops
2012 EPS – Continuing Ops $4.53 • Less 2012 tax benefits (1): ($0.09) 2012 Adjusted EPS – Continuing Ops $4.44 • Volume, mix, price (inc. FX): $0.28 - $0.46 • Net benefits of productivity: $0.12 - $0.22 • Acquisitions: $0.13 - $0.16 • Investment / Compensation: ($0.12 - $0.18) • Corporate expens