Slide 1: Earnings Conference Call Fourth Quarter 2014
Earnings Conference Call Fourth Quarter 2014 January 27, 2015 – 9:00am CT
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
Slide 3: Q4 2014 Performance
3 $0.50 $0.70 $0.90 $1.10 $1.30 $1.50 Q1* Q2* Q3* Q4* Q1* Q2 Q3* Q4* Q4 2014 Performance Adjusted Earnings Per Share* (continuing operations) Q4 Q4/Q4 * Excludes discrete & other tax benefits of $0.02 in Q1 2013, $0.36 in Q2 2013, $0.04 in Q3 2013, $0.01 in Q4 2013, $0.01 in Q1 2014, $0.03 in Q3 201
Slide 4: Revenue Growth Q4 2014 and FY 2014
4 Revenue Q4 2014 Energy Engineered Systems Fluids Refrigeration & Food Equip Total Organic 1% 5% 9% 8% 6% Acquisitions 20% 4% 3% 1% 7% Currency -1% -3% -2% -1% -2% Total 20% 6% 10% 8% 11% FY 2014 Energy Engineered Systems Fluids Refrigeration & Food Equip Total Organic 3% 6% 8% 2% 4% Acquisitions 7
Slide 5: Sequential Results Q3 2014 to Q4 2014
5 Printing & ID Industrial $343 $374 $526 $535 $249 $248 $351 $346 $459 $368 $0 $200 $400 $600 $800 DE Q3 DE Q4 DES Q3 DES Q4 DF Q3 DF Q4 DRE Q3 DRE Q4 Sequential Results – Q3 2014 → Q4 2014 5 $355 $345 $507 $550 $257 $247 $362 $377 $529 $459 $0 $200 $400 $600 $800 DE Q3 DE Q4 DES Q3 DES Q4 DF Q3 DF
Slide 6: Energy
6 Energy Strong revenue growth in Drilling & Production driven by recent acquisitions, the completion of U.S. shale projects and solid Middle East activity Bearings & Compression results reflect solid compression end-markets Lower oil prices will impact results going forward; restructuring cha
Slide 7: Engineered Systems
7 Engineered Systems Revenue growth is broad- based – Printing & Identification solid results driven by digital printing; partially offset by European softness – Industrial growth was broad-based, led by auto- related and waste handling businesses Adjusted margin was solid at 16.4% driven by the
Slide 8: Fluids
8 Fluids Revenue growth driven by strong demand in Fluid Transfer and improved pump volume – Fluid Transfer continues to benefit from increased safety and environmental regulations – Pumps results driven by chemical end-markets Adjusted segment margin of 17.4% up on volume leverage Bookings de
Slide 9: Refrigeration & Food Equipment
9 Refrigeration & Food Equipment Revenue growth driven by strong performance in Refrigeration markets, supported by shipments of Q3 push-outs Adjusted segment margin performance reflects improved performance and leverage on refrigeration volume, partially offset by product mix Bookings impacte
Slide 10: Q4 2014 Overview
10 Q4 2014 Overview 10 Q4 2014 Net Interest Expense $31 million, up $1 million from last year and in- line with expectations Corporate Expense $30 million, slightly down from last year, generally in-line with expectations; includes $3.6 million pension settlement Effective Tax Rate (ETR) Q4 rate was
Slide 11: Energy Update
11 Energy Update Oil & gas fundamentals have significantly declined since Dover Day Market Organic Growth Acq. Growth FX Impact Total Growth Organic Growth Acq. Growth FX Impact Total Growth Drilling and Prod. (5% - 2%) 8% - 11% (≈ 1%) 2% - 8% (19% - 17%) ≈ 7% (≈ 1%) (14% - 11%) Bearings and Comp. 2
Slide 12: FY 2015 Guidance
12 FY 2015 Guidance Revenue – Organic revenue: 1% - (2%) – Completed acquisitions: ≈ 2% – FX impact: (2%) – Total revenue: 1% - (2%) Corporate expense: ≈ $125 million Interest expense: ≈ $130 million Full-year tax rate: ≈ 30.0% Capital expenditures: ≈ 2.3% of revenue FY free cash flow: ≈
Slide 13: 2015 EPS Guidance – Continuing Ops
13 2015 EPS Guidance – Continuing Ops 2014 EPS – Continuing Ops (GAAP) $ 4.61 – Less 2014 tax items(1): (0.07) 2014 Adjusted EPS $ 4.54 – Net restructuring and one-time items(2): 0.09 - 0.10 – Performance including restructuring benefits: (0.06) - 0.10 – Acquisitions(3): (0.03 - 0.01) – Shares(4
Slide 14: Slide 14
Slide 15: 2014 Adjusted EPS Reconciliation – Continuing Ops
15 2013 EPS – GAAP Continuing Ops(1) $ 1.00 4.60 – Less 2013 tax benefits and other one-time gains (2): (0.01) (0.46) 2013 Adjusted EPS $ 0.99 $ 4.14 – Performance: 0.08 0.30 – Acquisitions(3): 0.00 0.01 – Corporate expenses: 0.01 0.05 – Interest / Shares / Tax rate (net): 0.10 0.21 – Q4 restruc