Dover Corporation · NYSE:DOV
Dover — BAML Global Industrials & EU Autos Conference 2014
19 slides from Dover's conference presentation, Mar 20, 2014
Slide 1: BAML Global Industrials & EU Autos Conference
Exhibit 99.1 March 20, 2014 BAML Global Industrials & EU Autos Conference Robert Livingston President & CEO
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. We caution everyone to be guided in their analysis of Dover Corporation by referring to our Form 10-K for a list of factors that could cause
Slide 3: Since our last Dover Day investor meeting…
3 Since our last Dover Day investor meeting… Building our industrial businesses – Continued to expand in our growth areas Energy, Fluids, Refrigeration, Printing & ID all grew organically and through acquisition – Anthony, Finder, KPS, Fibrelite and MS all expand product breadth and geographic reach
Slide 4: …but our strengths remain unchanged
4 …but our strengths remain unchanged Customer intimacy – Innovate for the customer We win when we help our customers win Recurring theme of delivering efficiency (energy, cost & speed) and sustainability – Superior customer service On-time delivery, quality, support Leverage our scale Generate cash
Slide 5: Dover has several levers for value creation
5 Dover has several levers for value creation Mid-term targets* GROWTH Substantial growth 3% - 5% organically, opportunities complemented by acquisition growth Accelerated MARGIN productivity initiatives Expand segment margin to 19% Significant balance CASH FLOW sheet optionality Generate free cash
Slide 6: Energy: At a glance
Energy: At a glance Dover Energy is a leading provider of customer driven solutions and services for safe and efficient production and processing of fuels worldwide, and has a strong presence in the bearings and compression components market. 6
Slide 7: Growth opportunities: A look forward (Energy)
7 Growth opportunities: A look forward Energy Continue to expand geographical presence – Significant investments in sales, field engineering and facilities are paying dividends….will continue in 2014 24% and 45% international growth* in 2012 and in 2013 – Increase participation in global tenders Mid
Slide 8: Engineered Systems: At a glance
Engineered Systems: At a glance Dover Engineered Systems is focused on the design, manufacture and service of critical equipment and components serving the printing & identification, vehicle service, waste handling, and select niche industrial end-markets. 8
Slide 9: Growth opportunities: A look forward (Engineered Systems)
9 Growth opportunities: A look forward Engineered Systems Expand markets served in Printing & Identification – Recent MS acquisition adds exposure to fast growing textile markets Capitalize on “analog to digital” trend Leverage ink expertise to drive additional opportunity Extend technology to other
Slide 10: Fluids: At a glance
Fluids: At a glance Dover Fluids is focused on the safe handling of critical fluids across the oil & gas, retail fueling, chemical, hygienic and industrial end-markets. 10
Slide 11: Growth opportunities: A look forward (Fluids)
11 Growth opportunities: A look forward Fluids Leverage our global footprint to accelerate growth – Targeting 25% growth in markets outside North America and Europe in 2014 Grow presence in Middle East and China through Maag and Finder channels Double revenue in Australia through Ebsray’s LPG and ch
Slide 12: Refrigeration & Food Equipment: At a glance
Refrigeration & Food Equipment: At a glance Dover Refrigeration & Food Equipment is the leading provider of energy efficient equipment and systems serving the commercial refrigeration and food service industries. 12
Slide 13: Growth opportunities: A look forward (Refrigeration & Food Equipment)
13 Growth opportunities: A look forward Refrigeration & Food Equipment Develop broader customer base – Build share with targeted accounts – Leverage strong customer relationships as supermarket chains expand globally Capitalize on secular trends – Rising energy costs and increasing government regula
Slide 14: Margin enhancement through productivity
14 Margin enhancement through productivity Global supply chain – Program now in its 5 th year – Continuing to leverage the scale of Dover Many spend categories are being reviewed again $90 -$120 million in savings or cost avoidance expected over the next 3 years Shared manufacturing – Several consol
Slide 15: Capital allocation: Recent history
15 Capital allocation: Recent history Consistently returning cash to shareholders Acquisition spending will remain disciplined * Includes Knowles capex and acquisitions 15
Slide 16: Capital allocation 2014
16 Capital allocation 2014 Strong balance sheet – $800 million cash as of December 31, 2013 (primarily overseas) – $400 million from Knowles – $170 million in proceeds from DEK sale (expected mid-year) – Strong free cash flow We expect to raise the dividend for 59 th consecutive year Capex expected
Slide 17: Summary
17 Summary 2014 is on track – Early bookings trends show solid Q1 Q2 Q3 Q4 FY 2013 2013 2013 2013 2013 broad-based growth Adjusted EPS* $0.93 $1.13 $1.25 $1.02 $4.33 – Q1 revenue growth as expected, sequentially in-line with Q4 2013 % of FY 21% 26% 29% 24% 100% – EPS seasonality generally consistent
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Slide 19: Appendix – 2013 Quarterly adjusted EPS from continuing operations
Appendix – 2013 Quarterly adjusted EPS from continuing operations (unaudited) (in thousands, except per share data) 2013 Q1 Q2 Q3 Q4 FY 2013 REVENUE: Energy $ 462,679 $ 465,906 $ 467,688 $ 457,580 $ 1,853,853 Engineered Systems 605,325 639,426 642,205 651,606 2,538,562 Fluids 273,638 310,137 309,241
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