Slide 1: Earnings Conference Call Fourth Quarter 2023
February 1, 2024 – 8:30am CT Earnings Conference Call Fourth Quarter 2023
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, including general economic conditions and conditions in the particular markets in which we operate, changes in
Slide 3: Q4 2023 Key Messages
Q4 2023 Key Messages ▪ Q4 performance – Proactively managed production volumes and working capital to drive strong cash flow and reset inventory balances going into 2024 – Another record high quarterly segment margin(1) on positive market conditions in certain secular growth-exposed businesses – Sol
Slide 4: Q4 2023 Performance Highlights
Q4 2023 Performance Highlights Organic Revenue(1) -3% Y-o-Y Organic Bookings(2) +2% Y-o-Y All-in revenue declined 2% Quarterly Y-o-Y Organic Bookings Growth 61% 25% 22% 27% -4% -12% -4% 2% Total Segment +100 bps Y-o-Y to 22.0% Earnings Margin(1) -5% -8% -9% -18% Represents record-high quarterly marg
Slide 5: Summary Corporate Q4 and Full Year Results
Summary Corporate Q4 and Full Year Results Q4 2023 FY 2023 Highlights Revenue change All-in -2% -1% ▪ Q4 FX impact: +1%; acquisitions +1% (Y-o-Y) Organic(1) -3% -1% Bookings change All-in(2) +3% -4% ▪ Q4 book-to-bill(2): 0.94 (Y-o-Y) Organic(2) +2% -5% Margin % 22% 21% Segment Earnings(1) ▪ Q4 Segme
Slide 6: Segment Results
Segment Results Q4 2023 FY 2023 Revenue ($M) / Segment Revenue ($M) / Segment Segment Y-o-Y Earnings % / Y-o-Y Earnings % / Q4 Performance Commentary Organic(1) ∆ % bps ∆ Y-o-Y Organic(1)∆ % bps ∆ Y-o-Y ▪ Strong volume in waste handling, industrial winches and aerospace & defense. $529 22% $2,005 19
Slide 7: Revenue & Bookings
Revenue & Bookings Q4 2023 Revenue Change in Organic Revenue(1): -$73M, or -3% ’23 Organic Rev Growth(1) Q4 Year ($M) 2,139 0 -16 -10 2 -48 22 18 2,106 US 57% +2% -3% Q4 2022 DEP DCEF DII DPPS DCST FX ACQUISITIONS Q4 2023 Organic Q4 2023 Bookings(2) Change in Organic Bookings(2): +$38M, or +2% EUROP
Slide 8: Full Year 2023 Free Cash Flow
Full Year 2023 Free Cash Flow $M FY ‘23 FY ‘22 ∆ Net Earnings 1,057 1,065 (8) D&A 317 308 9 Change in working capital 130 (387) 517 Change in accrued and deferred taxes (116) (91) (25) Change in other (1) (52) (89) 37 Cash flow from operations 1,336 806 530 Capex (193) (221) 28 Free cash flow(2) 1,1
Slide 9: Recent Investments Into Platforms Drive Portfolio to Higher Growth and Margins
Recent Investments Into Platforms with ~$200M(1) in Revenue Drive Portfolio to Higher Growth and Margins US CO2 Systems Thermal Connectors North America Heat Exchangers ▪ New Class 8 clean room and R&D facility ▪ Property acquired in Q4’23 to support future Recent ▪ 100+% capacity expansion in US la
Slide 10: Strong FCF Performance Positions DOV to Continue Playing Offense on Capital Allocation
Strong FCF Performance Positions DOV to Continue Playing Offense on Capital Allocation Priorities Commentary Cash Flow and Capital Allocation Capacity ▪ Capex of $193M (2.3% of revenue) in 2023, down Annual Free Cash Flow(4) Invest >10% vs. 2022 1 1.6-1.8 Organically ▪ Significant capacity expansion
Slide 11: Strong Value-Creation Driven by Growth and Margin Improvement
Strong Value-Creation Driven by Growth and Margin Improvement; Equipped With the Portfolio, Strategy and Levers to Drive Future Value Segment Earnings(1) ($M) Through-Cycle Adj. EPS(1) Segment Margin DFS+CPC+PSG Rest of Dover 5-Year Earnings +10-11% CAGR 1,755 1,768 CAGR 1,633 $8.80 $8.95-$9.15 $8.4
Slide 12: FY 2024 Guidance
FY 2024 Guidance ▪ All-in 2% - 4% Revenue Growth ▪ Organic(1): 1% - 3% ▪ GAAP EPS: $7.90 - $8.10 ▪ Adjusted EPS(1): $8.95 - $9.15 EPS and other ▪ Effective Tax Rate: 20% - 21.5% ▪ Free Cash Flow(1): 13% - 15% of Revenue Cash Flow ▪ Capex: $160M - $170M Dollar/euro exchange rate: 1.10 (1) Non-GAAP me
Slide 13: Appendix
Appendix 13
Slide 14: Q4 2023 Total Segment Earnings and Adjusted Net Earnings
Q4 2023 Total Segment Earnings and Adjusted Net Earnings Change in Total Segment Earnings(2) +$14M 23.8% 22.6% 22.0% 21.0% +100 bps ($M) 449 35 484 14 -11 -1 3 11 501 37 463 TOTAL SEG. NON-ACQ. ADJ. DEP DCEF DII DPPS DCST ADJ. NON-ACQ. TOTAL SEG. EARNINGS D&A (1) EBITDA (2) EBITDA (2) D&A (1) EARNIN
Slide 15: Organic Revenue Bridges
Organic Revenue Bridges Note: Numbers may not add due to rounding 15
Slide 16: Organic Bookings Bridges
Organic Bookings Bridges Note: Numbers may not add due to rounding (1) Refer to Performance Measures Definitions section.. 16
Slide 17: Q4 2022 to Q4 2023 Revenue and Bookings Bridges
Q4 2022 to Q4 2023 Revenue and Bookings Bridges Note: Numbers may not add due to rounding (1) Refer to Performance Measures Definitions section.. 17
Slide 18: Reconciliation of Net Earnings to Total Segment Earnings and Adjusted Segment EBITDA
Reconciliation of Net Earnings to Total Segment Earnings and Total Adjusted Segment EBITDA Note: Numbers may not add due to rounding (1) Other depreciation and amortization relates to property, plant, and equipment and intangibles, and excludes amounts related to purchase accounting expenses and res
Slide 19: Reconciliation of Net Earnings to Total Segment Earnings and Adjusted Segment EBITDA
Reconciliation of Net Earnings to Total Segment Earnings and Total Adjusted Segment EBITDA Note: Numbers may not add due to rounding (1) Other depreciation and amortization relates to property, plant, and equipment and intangibles, and excludes amounts related to purchase accounting expenses and res
Slide 20: Adjusted EBITDA
Adjusted EBITDA Note: Numbers may not add due to rounding (1) Other depreciation and amortization relates to property, plant, and equipment and intangibles, and excludes amounts related to purchase accounting expenses and restructuring and other 20 costs (benefits).
Slide 21: Reconciliation of Net Earnings to Adjusted Net Earnings and Diluted EPS
Reconciliation of Net Earnings to Adjusted Net Earnings and Diluted EPS to Adjusted Diluted EPS Note: Numbers may not add due to rounding 21
Slide 22: Reconciliation of Free Cash Flow and EPS to Adjusted EPS
Reconciliation of Free Cash Flow and EPS to Adjusted EPS Note: Numbers may not add due to rounding 22
Slide 23: Non-GAAP Definitions
Non-GAAP Definitions Definitions of Non-GAAP Measures: Adjusted Net Earnings: is defined as net earnings adjusted for the effect of purchase accounting expenses, restructuring and other costs/benefits, Tax Cuts and Jobs Act, disposition costs and gain/loss on dispositions. Adjusted Net Earnings Marg
Slide 24: Performance Measure Definitions
Performance Measure Definitions Definitions of Performance Measures: Bookings represent total orders received from customers in the current reporting period and now exclude de-bookings. For comparability, prior periods were revised to exclude non-binding orders and previously disclosed de-bookings.
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