Slide 1: Fourth Quarter 2013 Earnings Conference Call
Fourth Quarter 2013 Earnings Conference Call January 30, 2014 - 9:00am CT
Slide 2: Forward Looking Statements and Pro Forma Information
Forward Looking Statements and Pro Forma Information 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 by referring to our Forms 10-K and 10-Q for a list of fac
Slide 3: Q4 2013 Performance
$0.80 $1.00 $1.20 $1.40 $1.60 Q1* Q2 Q3* Q4* Q1* Q2* Q3* Q4* Q4 2013 Performance Adjusted Continuing Earnings Per Share* • Broad-based organic revenue growth, with strong results in the refrigeration, food equipment, fast moving consumer goods, fluids, drilling, downstream and consumer electronics m
Slide 4: Revenue growth by segment Q4 and FY 2013
4 Revenue Q4 2013 Communication Technologies Energy Engineered Systems Printing & Identification Total Dover Organic 7% 4% 3% 8% 5% Acquisitions - 5% 8% 1% 5% Currency - -1% 1% - - Total 7% 8% 12% 9% 10% FY 2013 Communication Technologies Energy Engineered Systems Printing & Identification Total Dov
Slide 5: Sequential Results – Q3 13 to Q4 13
$778 $677 $257 $277 $414 $428 $577 $584 $227 $244 $0 $350 $700 $1,050 DCT Q3 DCT Q4 DE Q3 DE Q4 DES Q3 DES Q4 DPI Q3 DPI Q4 $662 $702 $256 $271 $424 $373 $595 $571 $222 $248 $0 $350 $700 $1,050 DCT Q3 DCT Q4 DE Q3 DE Q4 DES Q3 DES Q4 DPI Q3 DPI Q4 Sequential Results – Q3 13 → Q4 13 Fluid Solutions ↑
Slide 6: Communication Technologies
6 Communication Technologies • Strong growth in Consumer Electronics led by roll-out of OEM smartphone launch, despite declining volumes at other OEMs • Telecom/Other markets continue to improve; Solid hearing health markets in Medical Technology offset by soft specialty acoustic markets; Aerospace/
Slide 7: Energy
7 Energy • Strong drilling and downstream growth • International markets remain robust in production, offsetting weak winch markets and softer U.S. sucker rod markets • Margin in-line with expectations, costs associated with recent acquisitions had 150 basis point impact • Bookings growth is particu
Slide 8: Engineered Systems
8 Engineered Systems • Revenue driven by recent acquisitions and strong results in refrigeration & food equipment, fluids and the auto-aftermarket • Within refrigeration, regional activity improves • Strong plastics and petro- chemical markets aiding Fluids • Margin performance reflects continued st
Slide 9: Printing & Identification
Printing & Identification • Broad-based growth in both fast moving consumer goods and industrial end-markets • Strong growth in Europe, across all product categories. • Project-related shipments increase. • Operating margin impacted by costs associated with completion of restructuring plan and deal
Slide 10: Q4 2013 Overview
Q4 2013 Overview Q4 2013 Net Interest Expense $30 million, down $1 million from last year and in- line with expectations Corporate Expense $45 million, up $14 million from last year, reflecting Q4 spin off costs of $16 million. Effective Tax Rate (ETR) Q4 normalized rate was 29.4%, excluding $0.03 c
Slide 11: Selected Pro Forma Financials for Dover (Un-audited)
Selected Pro Forma Financials for Dover (Un-audited) 11 Revenue $ 6,994 $ 7,521 Operating Earnings (a) 1,113 1,215 Net Interest 121 121 Income Taxes 298 268 Earnings from Con’t Ops. $ 686 $ 832 Diluted Continuing EPS $ 3.73 $ 4.79 Adjusted Diluted Continuing EP S(b) $ 3.64 $ 4.31 Org
Slide 12: FY 2014 Guidance – Pro Forma
FY 2014 Guidance – Pro Forma Revenue: • Organic revenue : ≈ 3% - 4% • Completed Acquisitions: ≈ 2% • Total revenue: ≈ 5% - 6% Corporate expense: ≈ $123 million* Interest expense: ≈ $133 million Full-Year Tax Rate: ≈ 31.0% Capital expenditures: ≈ 2.5% of revenue FCF for full year: ≈ 11% o
Slide 13: 2014 EPS Guidance Bridge - Continuing Ops (Pro Forma)
2013 Pro Forma EPS – Continuing Ops (post-spin basis) $4.79 • Less 2013 tax benefits (1): ($0.46) • Less 2013 one-time items (2): ($0.02) 2013 Pro Forma Adjusted EPS – Continuing Ops (post-spin) $4.31 • Volume, mix, price (inc. FX): $0.21 - $0.33 • Net benefits of productivity: $0.16 - $0.21 • A
Slide 14: Appendix – Reconciliations
Appendix – Reconciliations 14 EPS – Continuing Ops $1.22 $5.57 • Discrete tax items: ($0.03) ($0.44) • Knowles spin-off costs: $0.09 $0.17 • Other one-time gains: - ($0.02) Adjusted EPS – Continuing Ops $1.28 $5.28 Q4 2013 FY 2013 ADJUSTED EPS FROM CONTINUING OPERATIONS Note: Per share data may