Slide 1: Fourth Quarter 2013 Earnings Conference Call
Fourth Quarter 2013 Earnings Conference Call January 24, 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: Dover's Q4 2012 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* Revenue $2.0B 6% $8.1B 10% EPS (cont.) $1.16 10% $4.53 11% Bookings $2.0B 4% $8.1B 7% Seg. Margins 16.6% -30 bps 17.2% +10 bps Organic Rev. 2% 5% Acq. Growth 5% 6% FCF (a) $482M 92% $964M 40% Dover’s Q4 2
Slide 4: Revenue growth by segment Q4 and FY 2012
4 Revenue Q4 2012 Communication Technologies Energy Engineered Systems Printing & Identification Total Dover Organic 1% 1% 4% 1% 2% Acquisitions - 5% 9% - 5% Currency - - -1% -1% -1% Total 1% 6% 12% - 6% FY 2012 Communication Technologies Energy Engineered Systems Printing & Identification Total Dov
Slide 5: Sequential Results – Q3 12 to Q4 12
$674 $613 $247 $254 $396 $401 $562 $540 $218 $207 $0 $300 $600 $900 DCT Q3 DCT Q4 DE Q3 DE Q4 DES Q3 DES Q4 DPI Q3 DPI Q4 $600 $607 $245 $253 $412 $353 $527 $550 $198 $210 $0 $300 $600 $900 DCT Q3 DCT Q4 DE Q3 DE Q4 DES Q3 DES Q4 DPI Q3 DPI Q4 Sequential Results – Q3 12 → Q4 12 Fluid Solutions ↑ 1%
Slide 6: Communication Technologies
6 Communication Technologies • Within the Consumer Electronics market, strong MEMs revenue growth offset by expected lower year-over-year Sound Solutions volume • Improved sequential performance at Sound Solutions • Medical Technology and Aerospace/Defense were strong while Telecom remains weak • Ma
Slide 7: Energy
7 Energy • Revenue and earnings growth driven by production and downstream markets; drilling continues to slow as anticipated •Oil prices remain supportive of continued investment in production and international markets offer strong opportunities • Operating margin of 24.7% reflects strong execution
Slide 8: Engineered Systems
8 Engineered Systems • Revenue growth in Refrigeration & Food Equipment was broad- based; revenue gains in Fluids were driven by recent acquisitions •Results in Fluids continue to be impacted by a weak Europe • Margin performance includes Anthony acquisition related costs, absent this acquisition ma
Slide 9: Printing & Identification
Printing & Identification • 4% organic revenue growth (ex. FX) in fast moving consumer goods offset by a sluggish industrial market decline • Operating margin increase reflects the benefits of prior restructuring, cost initiatives and a favorable customer mix • Several new product introductions are
Slide 10: Q4 2012 Overview
Q4 2012 Overview Q4 2012 Net Interest Expense $31 million, up $2 million from last year, driven in part by higher debt levels connected with recent acquisitions Corporate Expense $31.0 million, down $1 million from last year, in-line with expectations Effective Tax Rate (ETR) Q4 normalized rate was
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% 2% - 4% - 2% -
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: ≈ $130 million Full-Year Tax Rate: ≈ 27.5% - 28.0% Capital expenditures: ≈ 3% - 3.5% of revenue FCF for full year: ≈ 10% of revenue
Slide 13: 2012 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: ($0.10 - $0.16) • Corporate expens