Dover Corporation · NYSE:DOV

Dover — Q1 2017 Earnings Presentation

12 slides from Dover's earnings presentation, Apr 20, 2017

  1. Slide 1: Earnings Conference Call First Quarter 2017

    Earnings Conference Call First Quarter 2017 April 20, 2017 – 9:00am CT

  2. 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

  3. Slide 3: Q1 2017 Performance

    3 $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 Q1 Q2 Q3 Q4 Q1 Earnings per share Adj. EPS* Q1 2017 Performance Earnings Per Share Q1 Q1/Q1 * Excludes gains on dispositions of $0.07 in Q1 2016, $0.36 in Q4 2016, $0.39 in Q1 2017, and a $0.09 voluntary product recall charge in Q4 2016 (d) See Press Release for

  4. Slide 4: Revenue Q1 2017

    4 Revenue Q1 2017 Energy Engineered Systems Fluids Refrigeration & Food Equip Total Dover Organic 15% 2% -2% 5% 4% Acquisitions - 9% 35% - 12% Dispositions - -4% - -7% -3% Currency -1% -1% -1% - -1% Total 14% 5% 32% -2% 12% Note: Totals may be impacted due to rounding

  5. Slide 5: Energy

    5 Energy  Revenue increase driven by significant improvement in early cycle oil & gas fundamentals, particularly U.S. rig count and well completions – Q1 revenue up 11% sequentially – Bearings & Compression growth driven by improved OEM build rates – Automation benefitting from customer capex incre

  6. Slide 6: Engineered Systems

    6 Engineered Systems  Organic revenue growth of 2% – Organic growth in Printing & Identification driven by strong marking & coding and digital textile markets – Industrial’s organic decline driven by chassis availability challenges in Environmental Solutions Group  Adjusted margin in-line with exp

  7. Slide 7: Fluids

    7 Fluids  Revenue growth driven by acquisitions – Dover Fueling Solutions off to very strong start – Organic revenue impacted by continued weakness in longer cycle oil & gas markets, especially transport  Solid retail fueling and strong Hygienic & Pharma markets  Margin primarily impacted by acqu

  8. Slide 8: Refrigeration & Food Equipment

    8 Refrigeration & Food Equipment  Organic revenue growth reflects strong activity in retail refrigeration market – Door and specialty case product lines doing very well – Within Food Equipment, can-shaping equipment project timing offsets solid commercial food equipment activity  Margin performanc

  9. Slide 9: Q1 2017 Overview

    9 Q1 2017 Overview 9 Q1 2017 Net Interest Expense $34 million, in-line with forecast Corporate Expense $36 million, in-line with forecast Effective Tax Rate Q1 rate was 25.7%, lower than forecast, reflecting the impact of a disposition and other discrete items. Excluding these items, normalized rate

  10. Slide 10: FY 2017F Updated Guidance

    10 FY 2017F Updated Guidance  Corporate expense: ≈ $130 million  Net interest expense: ≈ $133 million  Q2 – Q4 tax rate: ≈ 28%  Capital expenditures: ≈ 2.4% of revenue  FY free cash flow: ≈ 11% of revenue or 140% of net income* 2017F Energy Engineered Systems Fluids Refrigeration & Food Equip T

  11. Slide 11: 2017F EPS Guidance – Updated Bridge

    11 2017F EPS Guidance – Updated Bridge  2016 EPS – Continuing Ops (GAAP): $3.25 – Less 2016 gain on dispositions(1): (0.44) – Less 2016 earnings from dispositions(2) : (0.05) – Plus 2016 charges related to recall: 0.09  2016 Adjusted EPS $2.85 – Net restructuring(3): 0.08 - 0.10 – Performance incl

  12. Slide 12: Slide 12

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