Dover Corporation · NYSE:DOV
Dover — Investor Day (November 2020)
64 slides from Dover's investor day presentation, Nov 19, 2020
Slide 1: Fueling Solutions Analyst & Investor Meeting Presentation
Exhibit 99.1 November 19, 2020 Fueling Solutions Analyst & Investor Meeting Presentation
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 the impacts of the novel coronavirus (COVID-19) on the global economy and on our customers, suppliers
Slide 3: Today's Presenters
Today’s Presenters Richard Tobin CEO & President Dover Corporation David Crouse President Dover Fueling Solutions (part of Fueling Solutions segment) Kevin Long President OPW (part of Fueling Solutions segment) 3
Slide 4: Agenda
Agenda Fueling Solutions overview Market growth drivers Business line deep-dives • Retail fueling equipment • Software & systems • Vehicle wash • Fluid transfer New opportunities in alternative fuels & future C-stores Closing remarks 4
Slide 5: Important and attractive part of Dover portfolio
Important and attractive part of Dover portfolio Dover Revenue by Segment . Attractive profile: GDP+ growth, high ROIC, low capital intensity and high FCF . Leading global brands, relationships with Refrigeration and Fueling winning customers Food Equipment Solutions . Proprietary technologies with
Slide 6: Global fueling solutions leader with strong business profile
Global fueling solutions leader with strong business profile 5% Vehicle Wash Solutions 150+ 9% Transportation Components countries with commercial presence 14% Aftermarket Parts and Services 4,500+ 14% Systems & Software global employees 1,600+ 20% Underground & Hanging Hardware global patents Low-2
Slide 7: Industry's broadest offering to convenience and fuel retailers
Industry’s broadest offering to convenience and fuel retailers A Fluid Transfer Solutions Solutions for safe handling, monitoring, and transportation of hazardous fluids A B Vehicle Wash A B Wash equipment and payment systems for on- E station and stand-alone sites C Fueling Equipment Dispensers, ab
Slide 8: Foundation of leading and well-known brands
Foundation of leading and well-known brands Dispensers Above-ground equipment Below-ground equipment Fueling Equipment Chemical & Industrial Transportation Fluid Transfer Solutions Forecourt and fleet solutions Payment & POS Site-wide Systems Fuel POS In-bay automatic Tunnel Vehicle Wash Solutions E
Slide 9: Track record of strong performance
Track record of strong performance . China “double-wall” 2017-19 CAGR . China NOC slowdown . COVID-19 +10% 1,620 +1-2% Superior organic1 1,466 growth performance Revenue 1,338 ($M) 2017-2019 CAGR 10% Fueling Solutions Segment Direct peers3 5% 20172018 2019 2020E 2021E2 Adj. EBITDA1 % 17% 16% 19% Low
Slide 10: DFS participates in a diverse, growing $12B+ space
DFS participates in a diverse, growing $12B+ space Retail & fleet Adjacent markets fueling solutions Fueling equip. Fluid Transfer Solutions $3.5B $1.0B LSD LSD Dispensers Below-ground Above-ground Fuel transfer Rail, cargo transport Site-wide systems Vehicle Wash Solutions $5.0B+ $1.5B MSD MSD Fore
Slide 11: Proven 3-pronged strategy to drive 10yr+ above-GDP growth
Proven 3-pronged strategy to drive 10yr+ above-GDP growth New markets 3 LSD growth expected in core equipment Establish positions in new energy markets business over next decade driven by: to capture incremental growth • Continued growth of global ICE and Hybrid car parc, particularly in emerging ma
Slide 12: Proven 3-pronged strategy to drive 10yr+ above-GDP growth
Proven 3-pronged strategy to drive 10yr+ above-GDP growth MSD growth attainable through near New markets 3 adjacencies Establish positions in new energy markets • MSD vehicle wash growth driven by long-term consumer shift away from DIY washes and growth to capture incremental growth of car washes as
Slide 13: Proven 3-pronged strategy to drive 10yr+ above-GDP growth
Proven 3-pronged strategy to drive 10yr+ above-GDP growth Multiple pathways for new growth in 3 New markets early-stage industries (e.g., Establish positions in new energy markets EV charging, alternative fuels, to capture incremental growth new C-store services) Alternative fuels Current adjacencie
Slide 14: Agenda
Agenda Fueling Solutions overview Market growth drivers Business line deep-dives • Retail fueling equipment • Software & systems • Vehicle wash • Fluid transfer New opportunities in alternative fuels & future C-stores Closing remarks 14
Slide 15: Key long-term market tailwinds
5 key long-term market tailwinds Global fuel Evolving customer High-impact Shift from DIY Digitalization demand growth, landscape & regulations wash to automatic of site ops, race to rise of alt. fuels business models service "traffic & value" Global car parc Growth of retail Application of Growth o
Slide 16: Core fueling market has reliable, healthy growth path through 2035+
Core fueling market has reliable, healthy growth path through 2035+ Expected ~30% of new car sales battery- powered by 2030 1.80 1.69 1.57 14% 17% 24% EV 1.44 6% 14% 14% 5% 6% 8% 18%1.29 8% 17% 25% 14% 18% 10% 26% Hybrid Car parc drives 7% 9% steady 1% p.a. fuel 5% Diesel demand growth through 2035+
Slide 17: C-store consolidation, robust economics & emerging market buildout support growth
C-store consolidation, robust underlying economics & buildout in emerging markets will continue to support growth Number stores Number of gas stations 200k +2% 200k +2% 145k 153k 153k 140k 150k 99k 110k 76k Single Stores 100k 100k 89k 95k 50k 0k 56k 58k 76k Chain Stores 20142020 2030 0k 2009A 2019A
Slide 18: Large players continue to consolidate the landscape and deploy capital
Large players continue to consolidate the landscape and deploy capital towards growth and upgrades Capital Expenditures1 ($B) Cash spent on M&A1 ($B) 2.6 8.0 2.1 +17% 2.0 2.7 1.7 1.5 1.7 1.0 1.1 0.9 1.3 1.2 0.6 0.7 0.4 0.4 0.4 0.3 0.2 20102011 2012201320142015 2016 2017 2018 2019 2010 20112012201320
Slide 19: Other market tailwinds will also support long-term growth
Other market tailwinds will also support long-term growth High-impact regulations Expected regulatory trajectory Application of environmental and efficiency regulations driving incremental equipment upgrades Systems optimization • Vapor recovery systems in emerging markets (e.g., India, China) Vapor
Slide 20: Large install base enables sustainable long-term revenue growth
Large install base enables sustainable long-term revenue growth Growing revenue potential per site Growing number of sites / adoption Illustrative current and projected revenue potential from a representative site1,2,3 ~$30K Hanging hardware Fuel volume growth Forecourt parts OpEx ~$20K Car wash par
Slide 21: Agenda
Agenda Fueling Solutions overview Market growth drivers Business line deep-dives • Retail fueling equipment • Software & systems • Vehicle wash • Fluid transfer New opportunities in alternative fuels & future C-stores Closing remarks 21
Slide 22: Dover Retail Fueling Business Video Presentation
Dover Retail Fueling Business Video Presentation . Watch the video here: https://youtu.be/1CNBi70VROs 22
Slide 23: DFS is the global supplier of innovative fuel dispensers
DFS is the global supplier of innovative fuel dispensers Fueling Equipment Fueling equipment Dispenser product lines Traditional dispensers Headquarters Austin, TX DFS has #1 or #2 Employees 2,350+ dispenser market positions across • North America global regions • EMEA Geographies Retail Fleet • APA
Slide 24: Future value driven by dispenser innovation & margin improvement
Future value driven by dispenser innovation & margin improvement DFS' global leadership in cutting-edge dispensers is driven by unique competitive advantages with focus on improving the customer experience • Next-gen dispensers that meet most stringent upgrade requirements & enable a superior on-sit
Slide 25: Steady increase in equipment sophistication and value
Steady increase in equipment sophistication and value 1990’s 2020’s . Cutting edge customer engagement technology . Increased fuel throughput . 27” screen . Multiple secure payment options . Media and entertainment . Loyalty & personalization . Remote monitoring . Connectivity . Potential UX applica
Slide 26: DFS Anthem UX User Experience Platform Video Presentation
DFS Anthem UX User Experience Platform Video Presentation . Watch the video here: https://youtu.be/WUwLBrD0QI8 26
Slide 27: DFS offers highest quality digital forecourt & payment systems
DFS offers highest quality digital forecourt & payment systems Software & Systems Software & Systems Product lines Forecourt management solutions Headquarters Austin, TX DFS is a top 3 global provider of forecourt solutions Employees 450+ • North America Geographies • EMEA Site efficiency solutions
Slide 28: Leading position in forecourt management & payment systems
Leading position in forecourt management & payment systems Carwash access Indoor Loyalty terminal / POS1 Back office Fuel pricing payment programs controller Wetstock Remote Outdoor Site controller Auto. tank gauge Dispenser media monitoring monitoring payment 1. Point of sale. EU only. 28
Slide 29: Adoption of digital solutions at retail fueling sites is in early stages
Adoption of digital solutions at retail fueling sites is in early stages and will continue growing driven by robust ROI to customers Increasing adoption of site Race to drive traffic & spend Need for integration to simplify efficiency solutions via improved experience disparate systems • Forecourt e
Slide 30: Taking customers' digital capabilities to the next level
Taking customers’ digital capabilities to the next level . Industry-unique approach to deploy DFS Cloud platform via edge computing and leveraging DFS’s Anthem UX . Faster time-to-value and time-to- revenue enabled through an open, extensible, IoT platform as a service . Superior asset optimization
Slide 31: Digital Transformation: Future Technologies Are Happening Now
Digital Transformation: Future Technologies Are Happening Now . Watch the video here: https://youtu.be/HCTq3fkpY9E 31
Slide 32: Case study: Wetstock Management drove high ROI for a customer
Case study: Wetstock Management drove high ROI for a customer Situation In 2017, a customer utilizing DFS wetstock management services was notified by DFS that fuel deliveries were being shorted across multiple site locations by a fuel supplier. Value add functionality Using the data analyzed from t
Slide 33: Case study: Payment solutions deliver bottom-line improvement
Case study: Payment solutions deliver bottom-line improvement 33% 50% 73% 88% Leave the store Of shoppers Prefer Are likely to buy without buying if avoid stores self-service if helped by a lines are longer with long lines technologies knowledgeable than 7 minutes sales associate 20% Increased Reduc
Slide 34: Systems solutions growth strategy
Systems solutions growth strategy CURRENT ADOPTION High Payments & POS Example functionality Enable seamless site-wide • POS Systems Leverage core install base to payment • Outdoor payment systems grow adoption of digital solutions Back & head office Example functionality Integrates site efficiency
Slide 35: OPW is the leading worldwide supplier of retail fueling equipment
OPW is the leading worldwide supplier of retail fueling equipment Fueling equipment Equipment product lines Above-ground equipment Headquarters Smithfield, NC OPW is the #1 global supplier of above-ground hanging hardware Employees 950+ • North America • Latin America Geographies • EMEA Traditional
Slide 36: OPW driving value with 2-pronged, time-tested strategy
OPW driving value with 2-pronged, time-tested strategy Superior trusted products Market expansion OPW offers innovative equipment that meets the strictest OPW continues to develop & offer widest global array of compliance & performance requirements underground & hanging hardware for various fuels Ex
Slide 37: OPW Innovation Video Presentation
OPW Innovation Video Presentation . Watch the video here: https://youtu.be/zOyciEMbL-Q 37
Slide 38: OPW is a leading vehicle wash equipment supplier in North America
OPW is a leading vehicle wash equipment supplier in North America Vehicle wash Product lines In-bay automatic (IBA) equipment DePere, WI & Headquarters Detroit, MI Software and PDQ is the Employees ~240 #1 supplier of access solutions • North America IBA equipment in Target expansion • Latin America
Slide 39: OPW Vehicle Wash Video Presentation
OPW Vehicle Wash Video Presentation . Watch the video here: https://youtu.be/Cl4OC6_7CGg 39
Slide 40: Broad market trends expected to drive vehicle wash market growth
Broad market trends expected to drive vehicle wash market growth Consistent, long-term Attractive economics drives Accelerating demand for consumer demand investments and upgrades automated vehicle wash • Industry has observed consistently • Retail fueling customers likely to invest • Broad industry
Slide 41: Multiple growth paths available to supplement winning core business
Multiple growth paths available to supplement winning core business Core business Additional growth paths Expanded product portfolio Add further capabilities in ancillary components and payment & access technology; consumables and service an option Tunnel equipment Advantaged distribution channels L
Slide 42: Long history of vehicle wash innovation
Long history of vehicle wash innovation 1992 2003 2007 2011 2015 2018 Access® Kondor® Cube® Pay Station Touch-free product suite with Light-touch overhead system Wash segment’s first bill unique lighted arm design using shine-mitts for dispenser, with secure vault to assist with bay navigation maxim
Slide 43: OPW is a premier global fluid transfer solutions provider
OPW is a premier global fluid transfer solutions provider Fluid transfer solutions Product lines Chemical & industrial (C&I) Founded 1998 OPW is the #1 worldwide supplier of loading systems Headquarters Lebanon, OH Employees ~520 • North America Loading systems Couplers Manhole covers Geographies •
Slide 44: OPW Fluid Transfer Video Presentation
OPW Fluid Transfer Video Presentation . Watch the video here: https://youtu.be/YrFYAfIMg3Q 44
Slide 45: OPW offers world's first digital tank truck solution
OPW offers world's first digital tank truck solution Cargo customers need solutions that allow them to optimize their operations & save costs Civacon's CivaCommand solution enables customers to increase safety and efficiency via: • Built-in digital monitoring & security technology • Live tracking of
Slide 46: Agenda
Agenda Fueling Solutions overview Market growth drivers Business line deep-dives • Retail fueling equipment • Software & systems • Vehicle wash • Fluid transfer New opportunities in alternative fuels & future C-stores Closing remarks 46
Slide 47: EV charging is a long-term growth opportunity for DFS
EV charging is a long-term growth opportunity for DFS EV charging will be integral to Core customers are already EV charging complexity will future gas station offerings investing in EV charging today require systems integration • Over 20% of all public EV charge points • Retail fueling customers ar
Slide 48: DFS has established EV charging partnerships with global leaders
DFS has established EV charging partnerships with global leaders ChargePoint • Leading global EV charger supplier • Collaborating with Electrify America in US DFS capturing value today as a distribution channel partner for ABB & ChargePoint • DFS distributors are often involved in installation ABB a
Slide 49: DFS positioned to support customers' EV needs in several ways
DFS positioned to support customers’ EV needs in several ways Equipment Unique channel Systems and existing position • OEM-agnostic solutions tailored • Charging hardware and / or and capability enable related component parts to to the core customer bases enable fast charging DFS to integrate (e.g.,
Slide 50: DFS is well positioned to support all future customer fueling needs
DFS is well positioned to support all future customer fueling needs Alternative fuel use will be localized & segment-specific DFS will execute a localized CNG, LNG, & hydrogen represent large opportunity; strategy across global footprint CNG & LNG represent nearest-term, highest-likelihood $750M to
Slide 51: Multiple logical participation options in hydrogen fueling
Multiple logical participation options in hydrogen fueling Hanging Hardware Dispenser • Nozzle Medium Pressure Low Pressure Storage Buffer Storage • Hose Kit • Safety Breakaway Refrigeration Unit Vaporizer Piping High-Pressure Cryo-Pump High & Low Pressure Booster Compressors 51
Slide 52: C-store evolution will provide additional opportunities for DFS growth
C-store evolution will provide additional opportunities for DFS growth Key trends Future opportunity Retail fueling & C-store customers Develop equipment & systems that enable an have increasing appetite for unmanned C-store & integrate into current automated systems driven by C-store systems offeri
Slide 53: Agenda
Agenda DFS overview Market growth drivers Business line deep-dives • Retail fueling equipment • Software & systems • Vehicle wash • Fluid transfer New opportunities in alternative fuels & future C-stores Closing remarks 53
Slide 54: 2021 growth initiatives more than offset near-term EMV headwind
2021 growth initiatives more than offset near-term EMV headwind . EMV represents ~$500M total opportunity for DFS; 70+% DFS Segment ‘21E Revenue Bridge achieved through end of 2020 ‒ Initiative launched in 2015; current deadline - April ‘21 +1-2% ‒ 2020 will likely be peak with step-down over next 2
Slide 55: Well-positioned for growth and value creation
Well-positioned for growth and value creation Attractive fundamentals Strong value-creation Clear decade+ runway for growth in the core retail fueling business Favorable market structure, large and Clear path to contribute to Dover’s healthy customer base top quartile shareholder value creation Logi
Slide 56: Dover trading update
Dover trading update Q4 2020 Performance 2021 Early Outlook . Results in October as expected across the majority . Revenue growth prospects look encouraging across much of the portfolio of the portfolio as end markets recover – Continued strength in food retail, marking & coding, . New product launc
Slide 57: Appendix
Appendix 57
Slide 58: Broad global footprint
Broad global footprint North America APAC . ~55-60% of global sales . ~15-20% of global sales . >1,800 employees . >1,200 employees . 10 locations . 7 locations Latin America . ~5% of global sales EMEA . >200 employees . ~20% of global sales . 1 location . >1,300 employees . 13 locations 58
Slide 59: Dover Fueling Solutions '17-'19 Organic Revenue Growth Bridge
Dover Fueling Solutions ’17-’19 Organic Revenue Growth Bridge ($ in millions) FY 2017 FY 2018 FY 2019 17-'19 CAGR Organic$ 1,338 $ 1,471 $ 1,620 10% Acquisitions/dispositions - (1) 45 Currency translation - (4) (44) Total$ 1,338 $ 1,466 $ 1,620 10% 59
Slide 60: Reconciliation of Segment Earnings (EBIT) to Adj. EBITDA
Reconciliation of Dover Fueling Solutions FY 2017-2019 Segment Earnings (EBIT) to Adj. EBITDA and Calculation of EBIT Margin and Adj. EBITDA Margin ($ in millions) FY 2017 FY 2018 FY 2019 Revenue$ 1,338 $ 1,466 $ 1,620 Segment earnings (EBIT) 159 152 232 EBIT % 12% 10% 14% Adjustments: Rightsizing a
Slide 61: Reconciliation of EPS to Adjusted EPS
Reconciliation of EPS to Adjusted EPS Range 2020 Guidance for Earnings per Share (GAAP) $4.52 $4.57 Acquisition-related amortization, net 0.72- Rightsizing and other costs, net 0.19- Gain on disposition, net (0.03) 2020 Guidance for Adjusted Earnings per Share (Non-GAAP) $5.40 $5.45 61
Slide 62: Non-GAAP Definitions
Non-GAAP Definitions Definitions of Non-GAAP Measures: Adjusted Net Earnings: is defined as net earnings adjusted for the effect of acquisition-related amortization, rightsizing and other costs, and a 2020 gain on disposition. Adjusted Diluted Net Earnings Per Share: is defined as adjusted net earni
Slide 63: Performance Measure Definitions
Performance Measure Definitions Definitions of Performance Measures: Bookings represents total orders received from customers in the current reporting period. This metric is an important measure of performance and an indicator of revenue order trends. Backlog represents an estimate of the total rema
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