Dover Corporation · NYSE:DOV

Dover — Investor Day (December 2012)

124 slides from Dover's investor day presentation, Dec 10, 2012

1. Slide 1: Annual Investor Conference New York, NY – December 10, 2012

   Annual Investor Conference New York, NY – December 10, 2012

2. Slide 2: Our Entrepreneurial Business Model

   Our Entrepreneurial Business Model Our customer-focused business model encourages, promotes and fosters deep customer engagement which has led to Dover’s well established and valued reputation as a global industrial manufacturer that provides industry leading product innovation and superior customer

3. Slide 3: Dover Day 2012 Agenda

   Dover Day 2012 Agenda Time Presenter Topic 11:30 – 12:00 Registration 12:00 – 1:00 Lunch with Dover Executives Paul Goldberg Welcome Remarks Bob Livingston Opening Remarks John Hartner Printing & Identification Segment Tom Giacomini Engineered Systems Segment 2:20 – 2:40 Break Bill Spurgeon Energy S

4. Slide 4: Forward Looking Statements

   Forward Looking Statements 4 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 Corporation by referring to our Form 10-K for a list of factors that could cause

5. Slide 5: Bob Livingston, President and Chief Executive Officer

   Bob Livingston President and Chief Executive Officer

6. Slide 6: Overview, Strategy, 2012 Review, Recent Announcements, 2013 Guidance

   2 Overview  Strategy  2012 Review  Recent Announcements  2013 Guidance

7. Slide 7: Our Strategy

   Our Strategy  Our track record of success is based on: • Core technological advantages • Leading brands in the markets we serve • Commitment to industry leadership through innovation and scale • Strong focus on the customer  Our deep understanding of the customer and our exceptional capabilities i

8. Slide 8: Strategy – Continue to Expand in Key Growth Markets

   Strategy – Continue to Expand in 5 Key Growth Markets 4 . Aerospace/Defense Telecom/Other  In 2012, our 5 growth spaces account for 77% of revenue and 79% of operating earnings  Strong leverage of resources and expertise within and between segments  Well positioned for profitable growth Refrigera

9. Slide 9: Strategy – Leverage Tailwinds in 5 Key Growth Markets

    Increasing living standards  Infrastructure build-out International/ Developing Economies Global energy demand  Increasing demand, depleting resources  Emerging market growth Sustainability  Energy efficiency  Environmentally friendly products Consumer product safety  Product identification

10. Slide 10: Strategy - Geographic Expansion and the Benefits of Common Ownership

    59% 18% 15% 8% Geographic Revenue Mix North America Asia Europe Rest of World 6 Strategy - Geographic Expansion and the Benefits of Common Ownership YTD 2012 revenue Total Sales in Asia as % of Total Dover 11% 13% 14% 16% 18% 2008 2009 2010 2011 YTD 2012  Continue to leverage the strength of Dover

11. Slide 11: 2012 Review

    7 2012 Review 2012 - Solid Performance  Revenues up ≈ 10%  Segment margins ≈ 17.2%  Estimated free cash flow about 10% of revenue  Continued focus on productivity Highlights  Key acquisitions/portfolio changes  $1 Billion share repurchase announced Dover’s E.P.S. over the last decade 0.00 0.50

12. Slide 12: Update - Q4 Markets and Businesses

    Update - Q4 Markets and Businesses  Industrial businesses performing well  Energy remains solid  Sound Solutions improving Portfolio and Capital Allocation  Plan to divest electronics equipment businesses • Market continues to be inconsistent and highly volatile  Additional $1B share repurchase

13. Slide 13: Anthony Acquisition

    Anthony Acquisition  Deal size $602M  Acquired 2012 revenue $310M*  Accelerate Anthony's “Close the Case” and “Re-skinning” activity by leveraging Hillphoenix channels and relationships  Cross sell Hillphoenix products via Anthony's C-store channel  Leverage Anthony's geographic footprint to gr

14. Slide 14: Our Strengthened Company

    Our Strengthened Company 10 13% 22% 31%  Significant change to portfolio over last 4 years as we execute our growth strategy • 26 M&A Transactions; $2.9 Billion in spend • By 2015 our growth markets account for 80% of our businesses • Divesture of highly volatile construction and electronic equipme

15. Slide 15: Our Strengthened Company

    Our Strengthened Company 11 13% 22% 31%  Consistency of earnings dramatically improves due to: • Divestitures of construction and electronic equipment business • Acquisitions and changes in portfolio mix since 2008 Over 50% reduction in earnings volatility

16. Slide 16: Financial Goals – Next Three Years

    12 Financial Goals – Next Three Years GROWTH Grow 4% - 6% organically, complemented by acquisition growth MARGIN Expand segment margin to 19% CASH FLOW Generate free cash flow of 10% of revenue Initiating guidance for 2013 at $5.05 to $5.35

17. Slide 17: Today’s Key Messages

    Today’s Key Messages 13 Engineered Systems  Growth initiatives and new product offerings in the Fluids and Refrigeration spaces, complemented by the acquisition of Anthony, significantly expands the Engineered Systems portfolio and increases integrated solutions for our customers. Communication Tec

18. Slide 18: John Hartner, President & Chief Executive Officer

    John Hartner President & Chief Executive Officer

19. Slide 19: Printing & Identification

    Printing & Identification 2 DOVER 2012E REVENUE ≈ $8.1B Communication Technologies 19% Printing & Identification 12% Energy 27% Engineered Systems 42% Key Brands 58% 42% Revenue by End-Market Fast Moving Consumer Goods Industrial (“FMCG”)

20. Slide 20: The New Printing & Identification Segment

    The New Printing & Identification Segment 3  Consistent organic revenue growth  Improved margins from restructuring and productivity  Positive momentum will fuel segment performance going forward 1st Half 2012 2nd Half 2012 F Revenue $495 $514 % Change (Y/Y) 3.8%* 3.6%* Margin ≈11% ≈15% $ in mill

21. Slide 21: Geography and Product Mix

    Geography and Product Mix 4 59% 41% Product Mix Recurring Revenue Core Products  Installed base management  Business Model – customer stability, high recurring revenue  Growth in developing economies expected to diversify geographic revenue base  North America remains strong and continues to be

22. Slide 22: Tailwinds – Positioning for Growth

    FMCG Industrial      Tailwinds – Positioning for Growth 5 Sustainability Consumer Product Safety International/ Developing Economies

23. Slide 23: End Markets

    End Markets Industrial Market Size: $3.3B 2012-’15 CAGR: 4%-5% FMCG Market Size: $3.5B 2012-’15 CAGR: 3%-4%  Developing economies growing at double the global average  Increased food safety regulations expand opportunities  Key Verticals include Food & Beverage  Developing economies growth doubl

24. Slide 24: DES Market Driver – Plan Period: Global Food And Consumer Staples Growth

    DES Market Driver – Plan Period: Global Food And Consumer Staples Growth Global GDP Growth +3.6% Source: IMF Growth Multiple: + Consumer Staples  Food  Beverages  Pharmaceuticals  Cosmetics Developing Economies Growth Rising Living Standards Regulation/Government 2013 Real GDP Growth Forecast U.

25. Slide 25: Markem-Imaje Today

    Markem-Imaje (˝M-I˝) Today  World leader in marking and coding  Full line solutions provider including printers, consumables and services  Innovator with 300+ engineers in 6 technology centers  Customer intimate delivering and servicing products with logistics and repair centers worldwide 8

26. Slide 26: Three Distinct Areas of Focus Driving Future Growth

    Three Distinct Areas of Focus Driving Future Growth  Investment in customer facing resources to drive growth • Focused investments in BUIC (Brazil, U.S. India, China) to accelerate growth  Refreshed product portfolio • Voice of customer methodology for innovative products addressing technology and

27. Slide 27: Investment in Customer Facing Resources Driving Growth

    Investment in Customer Facing Resources Driving Growth  Added customer facing personnel in Brazil, USA, India and China (BUIC) • +20% BUIC headcount growth  Adding new indirect distributors in developing economies  25% of revenue from BUIC countries driven by new customer acquisitions 10 64% 61%

28. Slide 28: Fully Refreshed Technology Portfolio

    Fully Refreshed Technology Portfolio  Continuous Ink Jet (CIJ) • Platform consolidation around key technology building blocks • Variants to support beverage and cable markets • Entry level products for distributors in developing economies  Thermal Transfer (TTO) • Outstanding product performance •

29. Slide 29: New CIJ Product Family

    New CIJ Product Family  92XX Family address 80% of CIJ applications  Common product technology platform drives benefits for Customers and Markem-Imaje  New 92XX Family approaching 40% of unit sales 12 Pr ic e Performance

30. Slide 30: CIJ 9232 S Expands Beverage Market Opportunity

    CIJ 9232 S Expands Beverage Market Opportunity  High Speed CIJ printer • Up to 120,000 cans/hour • Excellent contrast and print quality at high speed  Optimal Total Cost of Ownership • Designed to optimize fluid consumption and maintenance costs  Designed for durability and efficiency • Full stai

31. Slide 31: New SmartLase C Series Family

    New SmartLase C Series Family  High Speed • More than 100,000 products coded per hour  Innovative design • 99.8% uptime ratio with easy integration  Robust • Extended coder lifetime by 30%  Customized • Wide range of industry-specific models  Targeted markets • Food and Beverage industries 14

32. Slide 32: Evolving Customer Responsive Business Model to Increase Speed

    Evolving Customer Responsive Business Model to Increase Speed Europe 5% EEMEA 10% N. America 7% Brazil 6% India 18% China 42% All Other 12% Global Packaging Growth by Geography 2011-2015  Background • Global Marking & Coding market expected to grow 4% per annum through 2015 • 39% of the global pack

33. Slide 33: New Organization Structure Enables Faster Local Decision Making

    New Organization Structure Enables Faster Local Decision Making 16 U.S. Brazil Switzerland India Singapore China  Establish 6 Regional business units with increased decision making authority and responsibility to grow share  New global headquarters as foundation for global growth  Competence cent

34. Slide 34: Markem-Imaje Positioned for Long Term Success

    Markem-Imaje Positioned for Long Term Success  World leader in attractive marking and coding market  Significant investments and changes in last 2 years • Investment in customer facing resources to drive growth • Refreshed product portfolio • Leaner and more customer responsive organization struct

35. Slide 35: Successful Integrated Solutions are Difficult to Copy and Highly Rewarded

    Successful Integrated Solutions are Difficult to Copy and Highly Rewarded 18

36. Slide 36: Strong & Growing Recurring Revenue Stream

    Strong & Growing Recurring Revenue Stream 19  Recurring revenue is 59% of Printing & Identification’s total revenue  Recurring revenue includes inks, spare parts, supplies and service  Continue to build installed base is important, M-I is a key focus Recurring Revenue as % of Total DPI Revenue 55

37. Slide 37: Productivity Improvements

    Productivity Improvements  Restructuring / Efficiencies  Best Cost Country sourcing  Logistics – Hubs, lead times, freight cost, inventory  Shared facilities & services 20 2012 Productivity Improvements: ≈ $20 million 50% 28% 12% 7% 3% Materials Labor/OH Sourcing Carryover Transportation

38. Slide 38: Productivity Improvements

    Productivity Improvements  Supplier cost reductions  Best cost country sourcing  Inventory management  Indirect spend consolidation  Small package savings  Leverage sourcing data systems 21 Sourcing Focus Lean / Productivity Projects  Line reductions/Redesign  Outside repair savings  Labor

39. Slide 39: Path to 2013 Growth

    Path to 2013 Growth 22 Market Drivers 2013F Growth Rate Comments FMCG Market growth rate ≈2% •Linked to GDP growth, Population Growth Share gains/New Products •Targeting key FMCG verticals (Food & Beverage) •Strong new product pipeline heading into 2013 Industrial Market growth rate ≈3% •Linked to I

40. Slide 40: 2013 – A First Look

    2013 – A First Look Market 2012F Revenue Mix 2012F Revenue Growth 2013F Revenue Growth 2013 Margin Comments FMCG ≈58% ≈6% ↑ Expansion driven by volume leverage, restructuring savings and productivity ↑ Industrial ≈42% ≈flat ↑ Expansion driven by volume leverage, restructuring savings and productivit

41. Slide 41: Capital Deployment – Multiple Opportunities in Core and Adjacencies

    Capital Deployment – Multiple Opportunities in Core and Adjacencies 24 Printing Technologies Industry Fast Moving Consumer Goods (FMCG) Industrial Applications Marking & Coding Dispensing Printing Additive Coating Technologies CIJ DOD Jetting Dispensing Spray Coating Thermal Other Technologies Solut

42. Slide 42: Summary

    Summary 25 2%-3% 1% 1% Printing & Identification Revenue Outlook  Grow in fast moving consumer goods & developing markets  Grow core & adjacent printing positions • Marking & Coding: $800M+ business in $4B+ global space • New products momentum and continued focus on recurring revenues • Pursue cor

43. Slide 43: Tom Giacomini, President & Chief Executive Officer

    Tom Giacomini President & Chief Executive Officer

44. Slide 44: Engineered Systems Revenue by End-Market

    36% 40% 24% Revenue by End-Market Industrial Refrigeration & Food Equipment Fluid Solutions Engineered Systems 2 DOVER 2012E REVENUE ≈ $8.1B Printing & Identification 12% Energy 27% Communication Technologies 19% Engineered Systems 42% Key Brands Fluid Solutions Refrigeration and Food Equipment Indu

45. Slide 45: Geography and Product Mix

    Geography and Product Mix 3  Drive profitable growth in emerging economies • Fluids growing double digits in emerging markets • Strong market opportunities for Industrial companies as productivity and safety become more important in China and Brazil  Key areas of new product development • Energy e

46. Slide 46: Engineered Systems Platforms and Markets

    Engineered Systems Platforms and Markets Fluid Solutions Platform 2012F Revenue: $800M • Pumps • Heat Exchangers • Dispensing 4 Engineered Systems $3.4B Refrigeration & Industrial Platform 2012F Revenue: $2.6B • Refrigeration/Food • Waste & Recycling • Automation

47. Slide 47: Tailwinds – Positioning For Growth

    Fluid Solutions Food & Refrigeration Industrial           International/ Developing Economies Global energy demand Sustainability Consumer product safety Tailwinds – Positioning For Growth 5

48. Slide 48: Market Drivers - Fluid Solutions

    Market Drivers - Fluid Solutions 6  Addressable market: $13B • Positive Displacement Pumps: $8B • Heat Exchangers: $4B • Chemical Dispensing: $650M  Market Growth (global 3-year CAGR ‘12 - 15’) • Pump growth: 4-6% • Brazed Plate Heat Exchanger (BPHE): 6-8% • Chemical Dispensing: 4-6 %  Market Dri

49. Slide 49: Fluids Solutions – Growth and Profitability Strategy

    Fluids Solutions – Growth and Profitability Strategy 7  Focus on growth in vertical end-markets • Accelerate penetration and sales alliances in chemical, oil & gas and hygienic • Application conversion to BPHE through enhanced system efficiency • Globalize brands across geographies and markets • Ne

50. Slide 50: Technology Competitive Advantage

    Technology Competitive Advantage 8 Key Market Drivers Key Technology Advantages  Large customers in Chemical Industry driving “Green Initiatives” to reduce energy and emissions  Example: Dow Chemical globally moving to reduce plant compressed air consumption by 15%  New Air Distribution System (A

51. Slide 51: Market Drivers - Refrigeration

    Market Drivers - Refrigeration 9  Global retail refrigeration market: $10B  Addressable market: $4B  North American market growth (3-year CAGR ‘12-’15): 2%-3% • Rate of adoption of “close the case” could accelerate growth  Market Drivers • Remodeling and new store construction • Energy efficienc

52. Slide 52: Anthony acquisition expands our refrigeration portfolio

    Anthony acquisition expands our refrigeration portfolio with integrated solutions for global customers  “Refresh” Shopping Experience  Drive Product Merchandising  Reduce Energy Consumption  Improve Food Safety  Improve Operator Financial Performance Anthony Acquisition 10

53. Slide 53: Refrigeration – Anthony Acquisition Value Drivers

    Refrigeration – Anthony Acquisition Value Drivers 11  Vertically integrates Anthony’s “best in class” door, glass and accessories technology  “Close the Case” and “Re-skinning” initiative accelerated through Hillphoenix customers  Increased penetration of Hillphoenix products in C-Stores utilizin

54. Slide 54: The “Close the Case” Opportunity

    The “Close the Case” Opportunity  Rising energy costs are driving retailers to consider closing the case  Closing the case makes economic sense for retailers • Up to 60% reduction in energy consumption • Payback period: less than 2 years  “Close the case” activity is global • EU retailers are act

55. Slide 55: Refrigeration – Growth and Profitability Strategy

    Refrigeration – Growth and Profitability Strategy 13  Continue to shift and improve portfolio mix towards higher margin, higher growth segments through product development • Drive energy leadership for case, systems and specialty products • Establish our position as the leading supplier of sustaina

56. Slide 56: Raising the Bar – HP and Anthony Low Energy Case / Door Solution

    Raising the Bar – HP and Anthony Low Energy Case / Door Solution 14  IP protected, integrated frame design – heart of energy reduction benefit  Anthony Low Energy Door part of package  Infinity edge “wall of glass” door design – aesthetically pleasing and best in energy (low and medium temperatur

57. Slide 57: New Refrigeration Products Creating Superior Customer Value

    New Refrigeration Products Creating Superior Customer Value 15 Our Total Solution • Low Energy Door • Low Energy Door Frame • ECM Fan motors • Clearvoyant/Other LED’s • NRG High Efficiency Coil As compared to competitor “Best In Class” offering (5-door case example) Regional Retail Store – 56,000 Sq

58. Slide 58: Productivity Improvements

    Productivity Improvements  Continuous improvement initiatives • Lean Enterprise • Investments in automation • Facility and product line rationalizations  Material savings • Leverage Dover supply chain agreements • BCC and localized sourcing • Insourcing • Value Engineering 16 56% 24% 20% Materials

59. Slide 59: Productivity Improvements

    Productivity Improvements  Segment-wide Lean initiatives • Reduction in labor, overhead and working capital  Facility and product line rationalization • Reduction in number of facilities • Transfer of production to BCC • Trimming of underperforming product lines  Investments in automation • Reduc

60. Slide 60: Path to 2013 Growth

    Path to 2013 Growth 18 Market Drivers 2013 Growth Rate Comments Refrig. & Food Equip. Market growth rate ≈1%-2% • Store remodeling primary driver Share gains • Targeting key accounts • Larger share of current customers New products/ Geographic growth • Advansor CO2 technology • Pure-View Case system

61. Slide 61: 2013 – A First Look

    2013 – A First Look Market 2012 Revenue Mix 2012F Revenue Growth 2013F Revenue Trajectory 2013 Margin Comments Refrigeration & Food Equipment ≈40% ≈9% ↑ Expansion driven by acquisition of Anthony, volume conversion, pricing and productivity ↑ Fluid Solutions ≈24% ≈21% ↑ Expansion driven by higher ma

62. Slide 62: Engineered Systems Revenue Summary

    - 900 1,800 2,700 3,600 4,500 2010 2011 2012F 2013F 2014F 2015F Revenue Summary 20 2%-3% 1% 1% Engineered Systems Revenue Outlook  Build out global footprint  Market share gains through energy efficient and productivity enhancing new products  Acquisitions – Focus on Fluids and Refrigeration & Fo

63. Slide 63: Bill Spurgeon, President & Chief Executive Officer

    Bill Spurgeon President & Chief Executive Officer

64. Slide 64: Energy

    Energy 2 2012E REVENUE ≈ $8.1B Printing & Identification 12% Energy 27% 19% 54% 27% Revenue by End-Market Drilling Production Downstream Key Brands Communication Technologies 19% Drilling Production Downstream Engineered Systems 42%

65. Slide 65: Geography and Product Mix

    Geography and Product Mix  Installed base driving sustainable revenues  Taking key actions to grow recurring revenues 3  Significant investments made to develop local presence in developing countries  North American long term outlook strong 6% 80% 7% 6% Geography Asia North America Europe Rest o

66. Slide 66: Tailwinds – Positioning for Growth

    Drilling Production Downstream          Tailwinds – Positioning for Growth 4 Global energy demand Sustainability International/ Developing Economies

67. Slide 67: Long term Drivers - Demand and Depletion

    Long term Drivers - Demand and Depletion 5 Liquids Demand  Emerging markets driving demand  Accelerating depletion driving increased need for artificial lift  Increasing technology and service intensity  Market will continue to grow long term Source: EIA 2011 Energy Outlook / company estimates S

68. Slide 68: Energy Market Sectors

    Energy Market Sectors 6 Drilling Market Size: $7.5B Production Market Size: $14B Downstream Market Size: $6B  Long-term activity to remain strong in coming years due to supportive oil prices and accelerating well depletion  Continuing stability in international drilling  Increasing horizontal dri

69. Slide 69: Long Term Performance

    - 500 1,000 1,500 2,000 2,500 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 7 Long Term Performance  Consistently outperform market growth • Total growth 2x NA rig count • Significantly outpacing global GDP • Organic growth 1.5x NA rig count  Quick recovery after economic downturn 10-Yr C

70. Slide 70: Growth Strategy

     Grow artificial Lift  Global expansion  Product innovation  Operational excellence  Acquisitions in production and downstream Growth Strategy 8

71. Slide 71: Artificial Lift: Business Evolution

    Artificial Lift: Business Evolution 19 55 19 62 19 63 19 88 20 00 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 P •Sucker rods •Valves •Sucker Rod Guides •Sinker Bars •Coiled Rod •Automation Recent Acquisitions •Rod Pumps •Field Service •PC pumps •PC Top Drives •Gas Lift •Nitrogen Generation

72. Slide 72: Broad Portfolio of Artificial Lift Solutions

    10 Broad Portfolio of Artificial Lift Solutions Gas Lift PCS Ferguson Rod Pump System PC Pump System ESP Lift Plunger Lift Sucker Rod PC Top Drive Coiled Rod Downhole PC Pump Monitoring System Automated Controls Plunger Gas Lift Valves Rod Pump

73. Slide 73: Why is Artificial Lift attractive in 2013?

    Why is Artificial Lift attractive in 2013?  Unconventional resources, such as shale and heavy oil, are altering energy investment strategies  Aging wells around the world are driving demand for artificial lift – 94% of active wells are utilizing artificial lift  Customers increasingly value broad

74. Slide 74: Improving Drilling Efficiency

    Improving Drilling Efficiency 12 0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 180.0 200.0 2007 2008 2009 2010 2011 2012E Fo ot ag e dr ill ed (' 00 0 ft )/ ri g pe r ye ar R un ni ng a ve ra ge Footage Drilled by Horizontal Rig ('000 ft) per year  Horizontal rigs over 60% of total rig count  Fo

75. Slide 75: Artificial Lift Services

    Artificial Lift Services 13  Entered artificial lift services (“ALS”) market in 2011 via acquisition  Focused on providing core services: • Installation and maintenance of rod driven artificial lift systems • Technical support and application engineering services  Provides pull through opportunit

76. Slide 76: ALS Case Study – NPS Advantage – Rapid Service Rig

     Reduction in man-hours – less time to perform ALS support and maintenance  Increased efficiency – significantly shorter setup/teardown time  Smaller footprint – less equipment on the well-site Offers end users considerable cost savings RSRs offer numerous benefits for ALS services over large con

77. Slide 77: Global Expansion in 2013

    Global Expansion in 2013 15  Products and services driving increased penetration internationally  Production to grow 20% outside NA in 2013 • Middle East · Expanding products and service position • Latin America · Venezuela · Colombia • Australia · OilLift expansion- coal seam gas for LNG exports

78. Slide 78: Market Expansion and Product Innovation

    16 Market Expansion and Product Innovation Oil Lift – Market Expansion Next Generation Sealing Technology  Non-contact air sealing mechanism  Significant reduction in air consumption  Improved sealing efficiency improves product life compared to competition  Significant aftermarket opportunity 

79. Slide 79: Downstream Product Innovation – Next Generation Below Ground Package

    Downstream Product Innovation – Next Generation Below Ground Package 17  Patented “plug and play” flexible piping system for gas stations • Eliminates more than 50% of field fabrication for the customer • Lower cost of ownership • Environmental integrity • Unmatched protection from water intrusion

80. Slide 80: Productivity Improvements

    Productivity Improvements  Continuous improvement initiatives across the portfolio • Lean enterprise • Common ERP  Supply chain • BCC sourcing • Targeted categories 18 2012 Productivity Improvements: > $30 million 51% 45% 3% 1% Materials Labor/Overhead Transportation Sustainability

81. Slide 81: Productivity Improvements

    Productivity Improvements  Integrated and closed 8 plants in last 24 months  Current project to consolidate 5 plants to 1  Increasing product lines in shared international facilities 19  Automation drives productivity • Reduced labor costs • Improved quality • Flexibility and setup reduction Pla

82. Slide 82: Acquisitions – Driving Growth

    Acquisitions – Driving Growth  PC pump systems – help penetrating international market  Nitrogen Generation – offshore and shale markets  Gas Lift – providing entry into offshore markets  Automation – PCS acquisition enhanced our current automation portfolio 20 Acquired technologies in last 24 m

83. Slide 83: Path to 2013 Growth

    Market Drivers 2013 Growth Rate Comments Drilling Market growth rate ≈Flat •North American rig count Market share •Targeted key accounts •International markets Diversification •Leveraging expertise in diamond/quartz applications Production Market growth rate ≈3% •Oil prices up 1%, Gas up 33% Geograp

84. Slide 84: 2013 – A First Look

    2013 – A First Look 22 Market 2012F Revenue Mix 2012F Revenue Growth 2013F Revenue Growth 2013 Margin Comments Drilling ≈18% ≈5% Margins flat as productivity gains offset by mix and new product development cost Production ≈55% ≈23% ↑ Margins flat as productivity gains offset by investments related t

85. Slide 85: Energy Revenue Summary

    - 500 1,000 1,500 2,000 2,500 3,000 2010 2011 2012F 2013F 2014F 2015F Revenue Summary 23 Energy Revenue Outlook  Create solutions for customers  Drive consistent profitable organic growth  Operational excellence  Acquisitions  People development $ in millions 3-Yr CAGR 3-5%

86. Slide 86: Jeffrey Niew, President & Chief Executive Officer

    Jeffrey Niew President & Chief Executive Officer

87. Slide 87: Communication Technologies

    Communication Technologies 2 DOVER 2012E REVENUE ≈ $8.1B Communication Technologies 19% Printing & Identification 12% Energy 27% Engineered Systems 42% 45% 18% 27% 10% Consumer Electronics Medical Technology Aerospace / Defense Telecom/Other Key Brands Revenue by End-Market

88. Slide 88: Geography and Product Mix

    Geography and Product Mix 3 58% 31% 10% 1% 2012F Geography Asia North America Europe Rest of World  Continue to service global customer base • Asian presence driven by Consumer Electronics and Telecom markets • Invest in Life Science products for European and Asian markets • Invest in Aerospace pro

89. Slide 89: Tailwinds – Positioning for Growth

    Consumer Electronics Medical Technology Aerospace / Defense Telecom / Other         Tailwinds – Positioning for Growth 4 Consumer product safety Communications International/ Developing Economies

90. Slide 90: Consumer Electronics

    Consumer Electronics 5  We are the leading acoustic supplier in the Smartphone and Feature Phone segments  When premium audio performance matters – we win • “Best in class” acoustic performance • Multiple mics for noise reduction • High performance speakers • Mechanical acoustic/algorithm integrat

91. Slide 91: Acoustic Components

    6 Acoustic Components 0 600 1,200 1,800 Knowles / Sound Solutions Acoustic Units CAGR: 54% Units in millions Note: Stand alone Knowles MEMs CAGR: 45% Unmatched Scale Leveraging Operational Excellence

92. Slide 92: Product Innovation

    Product Innovation 7  Investment in R & D • Handset • Medical Technologies • Aerospace  Geographic R & D expansion  Continued expansion of ASIC capabilities  System solutions rather than component provider  Investigation of other MEMS devices $50 $75 $100 $125 2010 2011 2012F 2013F R & D Spend

93. Slide 93: Product Innovation

    Product Innovation  Knowles is the standard for next generation products • Continuous investment in new products and designs • Smallest size, highest performance  Broadest portfolio of products  Scale drives continuous productivity improvement  Offering all three aspects of the audio needs – mic

94. Slide 94: Consumer Electronics

    Consumer Electronics  Markets & customers  New products  Operational excellence - Commitment to being the low cost producer  Sound Solutions update  The future of acoustics 9

95. Slide 95: Markets - Smartphones

    Markets - Smartphones Source: Gartner, CS 10  2012 total handset market flat/down on 2011  Smartphone growth double digit but slowing  Smartphone 50% of market by 2015  Slowing growth in laptop market in 2013 in millions of units We are well positioned to execute on growth in smartphone area wit

96. Slide 96: Markets - Microphone Growth in Mobile Handsets

    Markets - Microphone Growth in Mobile Handsets New Phones (3 mics) Motorola Droid (3 mics) Samsung Galaxy III (2 mics) 11  Microphones growing at faster rate than handset market driven by new multi mic applications • 2011 = 1.17 mic/phone • 2012 = 1.24 mic/phone • 2013 = 1.43 mic/phone  Knowles ME

97. Slide 97: Markets - Speaker/Receiver Growth in Mobile Handsets

    Markets - Speaker/Receiver Growth in Mobile Handsets ~$0.50 Speaker ~$2.00 Speaker Box 12  Consumers demanding better audio output devices  OEMs seeking more integration from acoustics suppliers • Plastics, Connector, and Speaker  Speaker/Receiver ratio per handset of 1.7 and constant over the pe

98. Slide 98: Market Drivers - Handset Content Evolution and Rising Component ASP

    Market Drivers - Handset Content Evolution and Rising Component ASP 13 PAST PRESENT FUTURE ENTRY PHONE FEATURE PHONE SMARTPHONE 1 ECM 1 MFD < $1 1 ECM 1 RCVR/MFD < $1 1 SiSonic/ECM 1 RCVR/MFD < $1 1-2 SiSonic 1 RCVR 1 SPKR 1 ECM 1 MFD < $1 ~ $2 1 SiSonic 1 RCVR 1 SPKR 2-4 SiSonic 1 HP RCVR 1 Speaker

99. Slide 99: Notebook & Tablets Annual Growth

    Notebook & Tablets Annual Growth 149m 116m 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 0 100 200 300 400 500 600 700 2008 2009 2010 2011 2012 2013 2014 2015 Notebooks Tablets Tablet % of Total Source: i-Suppli, MIC, CS, Knowles  Tablets continue on torrid growth path in 2013  Multi Mic adoption yet t

100. Slide 100: New Products

     New Products  Microphones • Ultra high SNR mic • In house developed ASICS • Smaller part • Tight sensitivity tolerance  Speakers/Receivers • Speaker boxes • N’ Bass™ • Silicone membrane speaker 15  System Solutions • Focus on one stop shop for “Acoustic Enabled Features”; deliver acoustic solutio

101. Slide 101: Growth Opportunities: Evolutionary New Products

     Growth Opportunities: Evolutionary New Products  New MEMS Microphone products that are driving 2013 Growth • More than 25 new SiSonic MEMS mics launching in ‘12-’13 timeframe • Potential to drive more than 40% of total annual revenue • Ultra-high SNR mic · Highest performance MEMS mic in the market

102. Slide 102: Growth Opportunities: Evolutionary New Products

     Growth Opportunities: Evolutionary New Products  New products that are driving 2013 growth • High-power speaker · New unique silicone membrane • Small receiver family · High quality and fully automated · Different versions from a shared platform · Product diversity, common production line • New com

103. Slide 103: Silicone combined with N‘Bass™ Technology for portable audio

     Silicone combined with N‘Bass™ Technology is the ideal combination for portable audio applications Silicone Speaker N’Bass™ Speaker Box w/Technology Enhancement Integrated Speaker Box System 18 BEST-in-Class Audio Performance

104. Slide 104: Systems Solution Evolution

     Capture more audio integration Systems Solution Evolution 19 Turnkey, one-stop-shop enabled solutions and features reduces the time to market and enhances the mobile audio experience

105. Slide 105: Operational Excellence – Leveraging Resources and Expertise

      Integrated organization vs. portfolio structure to leverage: • Asia operations across segment, reporting to segment operations leader • Shared services across segment · Human capital · Supply chain and BCC sourcing · Information technology, common ERP platform · Vertical integration opportunities

106. Slide 106: Operational Excellence

     Operational Excellence 21  Market needs / challenges • Platform components • Time to market is critical • Rising wages in Asia • Modules becoming preferred • Guaranteed acoustic performance • Modules require multiple functions  High volume automation • Lower labor solution • Highest volume output

107. Slide 107: Sound Solutions Update

     Sound Solutions Update 22  Feedback from our customers / market • Customers value our technical capability • Industry automation leader • New product pipeline is more robust after low investment pre-Dover • Relationships with customers are solid • Knowles has unmatched potential (scale, ASICs, acou

108. Slide 108: Sound Solutions Actions

     Sound Solutions Actions  Operational excellence • Leveraging Knowles Asia operational expertise  Talent management • Upgrade leadership and key operational capabilities  Customer diversification • Win with the winners  New product introductions • Execution of new product deliveries 23

109. Slide 109: Sound Solutions – What to Expect

     Sound Solutions – What to Expect  Today • Continued diversification of customer base • Improved financial results  2013 • Sequential growth in sales and income • Focus on continuous improvement  Beyond 2013 • High-teen margins • Leadership position in growing market 24

110. Slide 110: Summary

     Summary  Smartphone and tablets markets continue to grow in 2013  Consumer demand for better audio continues  Knowles’ new products are positioned to take advantage of this growth  Sound Solutions is on path to profitable growth 25

111. Slide 111: Path to 2013 Growth

     Path to 2013 Growth 26 Market Drivers 2013 Growth Rate Comments Consumer Electronics Market growth rate ≈8%* •Mobile phones: ≈ 7% •Smartphones: ≈ 25% •Laptops/tablets: 6% - 10% •Other: 2% - 3% Share gains •Targeting key accounts •Bigger share of current customers New products / services •Design wins

112. Slide 112: 2013 – A First Look

     2013 – A First Look Market 2012F Revenue Mix 2012F Revenue Growth 2013F Revenue Growth 2013 Margin Comments Consumer Electronics ≈47% ≈29% ↑ Further expansion driven by: continued smartphone growth; new product development; increased automation and scale; and synergy benefits ↑ Medical Technology ≈1

113. Slide 113: Communication Technologies Revenue Outlook Summary

     - 500 1,000 1,500 2,000 2,500 2010 2011 2012F 2013F 2014F 2015F Revenue $ in millions Summary 28 Communication Technologies Revenue Outlook Performance Operational Excellence  Manufacturing strategy • Site rationalization • Leverage Asian footprint  Leveraged shared services (HR,IT,SC)  Integrate

114. Slide 114: Brad Cerepak, Senior Vice President & Chief Financial Officer

     Brad Cerepak Senior Vice President & Chief Financial Officer

115. Slide 115: Overview, 2012 Guidance, 2013 Financial Framework, Capital Allocation

     Overview  2012 Guidance  2013 Financial Framework  2013 Guidance  Three-year Outlook  Capital Allocation 2

116. Slide 116: Updated 2012 EPS Guidance – Continuing Operations

      Previous 2012 EPS Guidance $4.55 - $4.65 • Anthony acquisition: (0.02) • Discontinued operations: (0.18) • Additional share repurchases/other: 0.01  Updated 2012 EPS Guidance $4.36 - $4.46 Updated 2012 EPS Guidance – Continuing Operations 3  Discontinued operations include Everett Charles and DE

117. Slide 117: 2013 Financial Framework

     2013 Guidance Comments Sales growth  Organic (%) 3% - 5%  Acquisition (%) ≈ 4% Principally Anthony; Pipeline remains active Segment margin (%) Up ≈ 30 – 70 bps from 2012 Performance improvement and continued cost management/ productivity focus Interest expense Up from 2012 Incremental debt from An

118. Slide 118: Revenue Growth by Segment - 2013

     Revenue Growth by Segment - 2013 5 Segment 2012F Revenue Mix 2013F Organic Growth 2013F Acquisition Growth* Total Communication Technologies 19% 9% - 11% - 9% - 11% Energy 27% 3% - 5% ≈ 2% 5% - 7% Engineered Systems 42% 2% - 4% ≈ 8% 10% - 12% Printing & Identification 12% 2% - 4% - 2% - 4% Total ≈ $

119. Slide 119: 2013 EPS Guidance – Continuing Operations

      Updated 2012 EPS Guidance $4.36 - $4.46 • Acquisitions: 0.11 - 0.14 • Earnings on revenue growth: 0.40 - 0.52 • Share repurchase: 0.25 - 0.30 • Corporate/Interest/Taxes/Other: (0.07)  Initial 2013 EPS Guidance: $5.05 - $5.35 2013 EPS Guidance – Continuing Operations 6  Anthony accounts for $0.10

120. Slide 120: Three Year Outlook

     2013 - 2015 Comments Annual Organic Sales Growth % 4% - 6%* Longer term: 4% – 5% Annual Acquisition Sales Growth % Announced as closed Longer term: 3% – 5% Annualized Segment Margin Improvement ≈ 50 bps per year Sustainable Tax Rate 27.5% - 28.0% Annual Capex Spend ≈ 3% of revenue Free Cash Flow Gen

121. Slide 121: Margin Expansion & Free Cash Flow

     Margin Expansion & Free Cash Flow 8  2012 margin expansion • Continued benefits from productivity and strategic pricing activities • Sound Solutions OEM customer revenue shifts and ramp costs impact margin • 2012 margin expansion includes $14 million net restructuring cost  2013 margin to expand 5

122. Slide 122: Capital Allocation Priorities

     Estimated cumulative cash flow (3-years, $B) Cash flow from operations $3.1 Capital expenditures (0.8) Free Cash Flow* 2.3 Change in net debt 0.2 Total $2.6 Internal investments to support growth initiatives and boost productivity Return cash to shareholders through the continuation of our long-stan

123. Slide 123: Bob Livingston, President and Chief Executive Officer

     Bob Livingston President and Chief Executive Officer

124. Slide 124: Today’s Key Messages

     Today’s Key Messages 2 Engineered Systems  Growth initiatives and new product offerings in the Fluids and Refrigeration spaces, complemented by the acquisition of Anthony, significantly expands the Engineered Systems portfolio and increases integrated solutions for our customers. Communication Tech

Dover — Investor Day (December 2012) on 6ix