Dover Corporation · NYSE:DOV
Dover — J.P. Morgan Aviation, Transportation & Industrials Conference 2019
16 slides from Dover's conference presentation, Mar 6, 2019
Slide 1: Dover Corporation, J.P. Morgan Aviation, Transportation & Industrials Conference
March 6, 2019 Dover Corporation J.P. Morgan Aviation, Transportation & Industrials Conference Rich Tobin, President & CEO
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. We caution everyone to be guided in their analysis of Dover Corporation by referring to the documents we file f
Slide 3: Dover portfolio: strong fundamentals, GDP+ growth exposure, low cyclicality
Dover portfolio: strong fundamentals, GDP+ growth exposure, low cyclicality Common Market and Platforms Dover Positions Business Model Attributes Retail Fueling/Transportï,§ Global #2; #1 EU, Asia â–ª GDP+ long-term growth Industrial Pumpsï,§ Leader high-value apps Fluids #1 in â–ª Limited cyclicali
Slide 4: Q4 2018—Highlights
Q4 2018—Highlights Revenue increases 3% to $1.8B Bookings up 8% to $1.9B Organic growth of 6% Organic growth of 10% Adjusted earnings from continuing Adjusted diluted EPS from continuing operations(1) increases 17% to $211M operations(2) at $1.43, up 25% Earnings from continuing operations on a GAAP
Slide 5: Expect healthy revenue growth and strong EPS accretion in 2019
Expect healthy revenue growth and strong EPS accretion in 2019 Engineered Refrigeration 2019 Systems Fluids & Food Equip Total Organic revenue 3%—4% 3%—4% 1%—3% 2%—4% Acquisitions—2%—1% Dispositions — — Currency (1%) (2%) (1%) (2%) Total revenue 2%—3% 3%—4% 0%—2% 2%—3% ï,§ Net interest expense: â‰^
Slide 6: Growth and margin improvement initiatives expected to deliver ~17-21% growth in Adjusted EPS in 2019
Growth and margin improvement initiatives expected to deliver ~17-21% growth in Adjusted EPS in 2019 Adjusted EPS ($/share) $5.65-$5.85 $0.15 $0.19-$0.39 $0.08 $0.02 $4.97 $0.37 Full year impact from $0.13 discrete tax items $4.84 ’18 Adj. EPS SG&A Footprint Completed Revenue Growth Shares and ’19F
Slide 7: Delivering on commitments—Dover near and medium term priorities
Delivering on commitments—Dover near and medium term priorities 2018 – 1H 2019 2H 2019 and beyond Strengthen Execution, Realize Dover’s Earnings Deliver on Commitments and Growth Potential  Deliver on SG&A rightsizing initiative â–ª Invest behind Dover’s leading businesses to capture growth poten
Slide 8: Balanced model to deliver sustained long-term top-quartile TSR
Balanced model to deliver sustained long-term top-quartile TSR Growth Profitability Cash Flow and Capital Allocation GDP+ sustainable organic growth Finalize synergy capture from Generate strong FCF recent large deals Invest behind the core Disciplined capital allocation Drive operational and execut
Slide 9: Looking ahead
Looking ahead Sep. 2018 Share results from initial business assessment Set near-term priorities Commit to improve execution and operations Announce new rightsizing plan and Retail Fueling and Retail Refrigeration margin improvement initiatives Communicate capital allocation framework Jan. 2019 Repor
Slide 10: Appendix
Appendix
Slide 11: Reconciliation of Q4 2018 and 2017 Earnings to Adj. EBIT and Adj. EBITDA
Reconciliation of Q4 2018 and 2017 Earnings from Continuing Operations to Adj. EBIT and Adj. EBITDA and calculation of Adj. EBIT margin and Adj. EBITDA margin (U.S. GAAP) Q4 2018 $ in millions Revenue 1,809 Earnings from continuing operations 158 Add back: Corporate expense 39 Net Interest expense 3
Slide 12: Reconciliation of Q4 2018 and 2017 Earnings to Adj. EBIT and Adj. EBITDA
Reconciliation of Q4 2018 and 2017 Earnings from Continuing Operations to Adj. EBIT and Adj. EBITDA and calculation of Adj. EBIT margin and Adj. EBITDA margin (U.S. GAAP) Q4 2018 $ in millions Revenue 1,809 Earnings from continuing operations 158 Add back: Corporate expense 39 Net Interest expense 3
Slide 13: Reconciliation of Adjusted Earnings from Continuing Operations
Reconciliation of Adjusted Earnings from Continuing Operations to Earnings from Continuing Operations and calculation of Adjusted diluted EPS under U.S. GAAP $ in millions Q4 2018 Q4 2017 FY 2018 FY 2017 Earnings from continuing operations 158 290 591 747 Acquisition-related amortization, pre-tax 35
Slide 14: Reconciliation of Free Cash Flow and Adjusted EPS
Reconciliation of Free Cash Flow; and EPS from Continuing Operations to Adjusted EPS from Continuing Operations Reconciliation Free Cash Flow Reconciliation $ in millions December 31, December 31, 2018 2017 Net Cash provided by Operating Activities 789 739 Capital Expenditures (171) (170) Free Cash
Slide 15: Non-GAAP Definitions
Non-GAAP Definitions Definitions of Non-GAAP Measures: Adjusted Earnings from Continuing Operations: is defined as earnings from continuing operations adjusted for the effect of acquisition-related amortization, the Tax Cuts and Jobs Act, gains on disposition of businesses, disposition costs, rights
Slide 16: Slide 16
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