Dover Corporation · NYSE:DOV

Dover — Q4 2016 Earnings Presentation

14 slides from Dover's earnings presentation, Jan 26, 2017

  1. Slide 1: Earnings Conference Call Fourth Quarter 2016

    Earnings Conference Call Fourth Quarter 2016 January 26, 2017 – 9:00am CT

  2. Slide 2: Forward looking statements and non-GAAP measures

    2 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

  3. Slide 3: Q4 2016 Performance

    3 $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Earnings per share Adj. EPS* Q4 2016 Performance Earnings Per Share (continuing operations) Q4 Q4/Q4 * Excludes discrete tax benefits of $0.05 in Q3 2015, $0.06 in Q4 2015, $0.05 in Q1 2016, $0.05 in Q4 2016, a $0.01 discrete tax expense

  4. Slide 4: Revenue Q4 2016

    4 Revenue Q4 2016 Energy Engineered Systems Fluids Refrigeration & Food Equip Total Dover Organic -8% 1% flat -1% -2% Acquisitions - 8% 37% - 11% Dispositions - -3% - -9% -3% Currency -1% -1% -1% - -1% Total -9% 5% 36% -10% 5% FY 2016 Energy Engineered Systems Fluids Refrigeration & Food Equip Total

  5. Slide 5: Energy

    5 Energy  Revenue decrease driven by year-over-year declines in oil & gas market fundamentals – Q4 2016 revenue up 7% sequentially – Bearings & Compression growth driven by positive customer mix  Margin of 10.5% exceeds expectation, reflecting very strong incrementals  YoY bookings decline narrow

  6. Slide 6: Engineered Systems

    6 Engineered Systems  Organic revenue growth of 1% – 5% organic growth in Printing & Identification driven by strong marking & coding and digital textile markets – Industrial’s organic decline driven by reduced activity in Environmental Solutions  Margin of 15.5% primarily reflects benefits of pro

  7. Slide 7: Fluids

    7 Fluids  Revenue growth driven by acquisitions – Organic revenue essentially flat  Strong Hygienic & Pharma markets  Improved activity in Petrochemical & Polymer markets  Weak longer cycle oil & gas markets, especially transport  Margin impacted by product recall charge and acquisitions  Book

  8. Slide 8: Refrigeration & Food Equipment

    8 Refrigeration & Food Equipment  Organic revenue decline of 1% primarily driven by project timing in can-shaping equipment business  Margin performance reflects gain on disposition, partially offset by production inefficiencies at Hillphoenix and product mix  Organic bookings decline of 2% large

  9. Slide 9: Q4 2016 Overview

    9 Q4 2016 Overview 9 Q4 2016 Net Interest Expense $33 million, in-line with forecast Corporate Expense $32 million, higher than forecast, includes $3 million settlement charge Effective Tax Rate (ETR) Q4 rate was 25.4%. Excluding discrete tax items, Q4 rate was 29.0% Capex $49 million, generally in-

  10. Slide 10: FY 2017F Guidance

    10 FY 2017F Guidance  Corporate expense: ≈ $125 million  Net interest expense: ≈ $133 million  Full-year tax rate: ≈ 28%  Capital expenditures: ≈ 2.4% of revenue  FY free cash flow: ≈ 11% of revenue 2017F Energy Engineered Systems Fluids Refrigeration & Food Equip Total Organic rev. 13% - 16% 1

  11. Slide 11: 2017F EPS Guidance – Bridge

    11 2017F EPS Guidance – Bridge  2016 EPS – Continuing Ops (GAAP): $3.25 – Less 2016 gain on dispositions(1): (0.44) – Less 2016 earnings from dispositions(2) : (0.05) – Plus 2016 charges related to expected recall: 0.09  2016E Adjusted EPS $2.85 – Net restructuring(3): 0.08 - 0.10 – Performance in

  12. Slide 12: Slide 12

  13. Slide 13: Appendix

    13 Appendix

  14. Slide 14: 2016 EPS – Bridge

    14 2016 EPS – Bridge  2015 EPS – Continuing Ops (GAAP) $ 3.74 – Less 2015 tax items(1): (0.11)  2015 Adjusted EPS $ 3.63 – Net restructuring(2): 0.07 – Performance including restructuring benefits & net acquisitions (3): (0.40) – Compensation & investment: (0.05) – Interest / Corp. / Tax rate / Sh

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