Dover Corporation · NYSE:DOV
Dover — William Blair Growth Stock Conference 2015
18 slides from Dover's conference presentation, Jun 9, 2015
Slide 1: William Blair Growth Stock Conference
William Blair Growth Stock Conference June 9, 2015 Bob Livingston President & Chief Executive Officer Exhibit 99.1
Slide 2: Forward looking statements
2 Forward looking statements 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 by referring to the documents we file from time to time with the SEC, i
Slide 3: Our strategy is focused on
3 Our strategy is focused on Expanding our businesses in key markets with significant growth potential Capitalizing on our expertise and providing products and solutions globally to customers who value our offerings Innovating to address our customers’ needs and help them win in their markets
Slide 4: Our strategy execution revolves around key objectives
4 Our strategy execution revolves around key objectives Invest in areas of growth – Markets with attractive growth characteristics – Profitable, with stable margins and opportunity for improvement – “Sticky” customer relationships Operate well, efficiently – Expand margins through Dover producti
Slide 5: We continue to execute on our guiding strategy and objectives
5 We continue to execute on our guiding strategy and objectives Our business profile is more focused, with sustainable strong margins and returns We have invested in and expanded our businesses within our growth areas We have accelerated our efforts and processes around innovation, focusing on
Slide 6: Our track record of success
6 Our track record of success $0 $3,000 $6,000 $9,000 2004PF 2011 2014 2015F Revenue $ in millions $0 $500 $1,000 $1,500 2004PF 2011 2014 2015F Segment Income $ in millions $0 $300 $600 $900 2004PF 2011 2014 2015F Free Cash Flow* $ in millions $0.00 $0.30 $0.60 $0.90 $1.20 $1.50 $1.80 2004 2011 2014
Slide 7: Several levers for shareholder value creation over the long-term
7 Dover has several levers for shareholder value creation over the long-term 7 GROWTH Solid organic growth, complemented by acquisition growth MARGIN Expand “core” margin 30 to 50 bps per year* CASH FLOW Generate free cash flow in excess of 11% of revenue Growth opportunities Leverage Dover producti
Slide 8: Long-term tailwinds across our businesses
8 Long-term tailwinds across our businesses Emerging economies Sustainability & Productivity Consumer product safety Global energy demand Energy efficiency Environmental regulations Green initiatives Labor inflation Increasing living standards Rising consumer class Automobile ownership
Slide 9: Mid-Quarter Update
9 Mid-Quarter Update Energy markets continue to be weak as expected – Significant destocking continuing in Q2 – Price pressure continues – Q2 expected to be lowest revenue quarter in 2015 Demand environment remains soft in refrigeration, oil & gas related pump markets, and industrial businesses
Slide 10: Near-term areas of focus
10 Near-term areas of focus Energy Align cost structure to demand environment Pursue share gains in Drilling & Production and expand international presence Engineered Systems Grow NA and Asia business in Printing & Identification, including conversion to digital print Focus on productivity s
Slide 11: Broad organic growth opportunities: Energy
11 Broad organic growth opportunities: A look forward Energy Grow core business – Leverage eventual recovery of North American oil & gas markets – Provide productivity solutions through ESP offering and our Automation platform – Strengthen our position in select basins – Increase OEM share in bear
Slide 12: Broad organic growth opportunities: Engineered Systems
12 Broad organic growth opportunities: A look forward Engineered Systems Expand and extend markets served in Printing & Identification – Capitalize in fast growing textile market – Grow North American and China presence in core markets Make focused industrial investments – Concentrate on after-m
Slide 13: Broad organic growth opportunities: Fluids
13 Broad organic growth opportunities: A look forward Fluids Leverage our global footprint to accelerate growth – Grow presence in Middle East and China – Expand in Australia / Asia through recent acquisitions Access new markets – Complete “station in a box” offering worldwide with recent acquis
Slide 14: Broad organic growth opportunities: Refrigeration & Food Equipment
14 Broad organic growth opportunities: A look forward Refrigeration & Food Equipment Develop broader customer base – Build share with targeted accounts Capitalize on secular trends – Rising energy costs and increasing government regulation are driving strong demand for energy efficient solutions
Slide 15: Multiple areas for acquisition growth
15 Multiple areas for acquisition growth Fluids Build on our position in select verticals and pump technologies Additional opportunities to expand in Fluid Transfer Engineered Systems Expand verticals served in Printing Selective industrial opportunities Refrigeration & Food Equipment Grow
Slide 16: Dover productivity processes drive margin enhancement
16 Dover productivity processes drive margin enhancement Dover productivity processes – Global supply chain Target $30 - $40 million in annual savings – Focus on continuous improvement (“CI”) and lean Productivity projects expected to be 30% of capex spend – Shared infrastructure in plants and
Slide 17: Capital allocation
17 $- $300 $600 $900 $1,200 Acquisitions Capex Dividends Share Repurchase $ in millions 2012 2013 2014 2015F Return to investors Capital allocation Invest in growth; acquisitions and capex ≈ 50% Consistently return cash to shareholders; dividends and repurchases ≈ 50% Investment spending will
Slide 18: Summary
18 Summary Multiple organic growth opportunities across each segment Prioritized roadmap of acquisition targets driven by strategy Our acquisition integration and restructuring enables higher investment for innovation and growth We remain focused on broad-based margin expansion opportunities