![]() Investor Meeting March 5, 2014 Exhibit 99.1 |
![]() 2 Forward looking statements 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 our results to differ from those anticipated in any such forward-looking statements. We would also direct your attention to our website, dovercorporation.com, where considerably more information can be found. 2 |
![]() 3 Since our last New York meeting… Building our industrial businesses – Continued to expand in our growth areas Energy, Fluids, Refrigeration, Printing & ID all grew organically and through acquisition – Anthony, Finder, KPS, Fibrelite and MS all expand product breadth and geographic reach – Our business profile is more consistent and focused with sustainable higher margins New segment structure to capture growth opportunities – Energy, Fluids, Refrigeration & Food Equipment, and Engineered Systems The next generation of Dover leadership to drive performance – Andy Fincher, Bill Johnson and Soma Somasundaram to lead Engineered Systems, Refrigeration & Food Equipment, and Energy, respectively 3 |
![]() 4 …but our strengths remain unchanged Customer intimacy – Innovate for the customer We win when we help our customers win Recurring theme of delivering efficiency (energy, cost & speed) and sustainability – Superior customer service On-time delivery, quality, support Leverage our scale Generate cash – Free cash flow remains consistently strong Market share leadership – Strong focus on technology leadership and innovation drive share gains and customer loyalty 4 |
![]() 5 Dover has several levers for value creation 5 GROWTH 3% - 5% organically, complemented by acquisition growth MARGIN Expand segment margin to 19% CASH FLOW Generate free cash flow in excess of 10% of revenue Substantial growth opportunities Accelerated productivity initiatives Significant balance sheet optionality Mid-term targets* *Mid-term: 2014 -2016 |
![]() 6 Energy: At a glance Dover Energy is a leading provider of customer driven solutions and services for safe and efficient production and processing of fuels worldwide, and has a strong presence in the bearings and compression components market. 2013PF 2013PF Pro forma basis 81% 19% Drilling & Bearings & Compression Production 8% 11% 14% 17% 20% 23% 26% $- $400 $800 $1,200 $1,600 $2,000 2011 2012 2013 2014F $ in millions Revenue Margin Revenue & margin Revenue by market 78% 7% 2% 13% North America Europe China Rest of World Revenue by geography |
![]() 7 Growth opportunities: A look forward Energy Continue to expand geographical presence – Significant investments in sales, field engineering and facilities are paying dividends….will continue in 2014 24% and 45% international growth* in 2012 and in 2013 – Increase participation in global tenders Middle East, South America & Australia – Seek additional industry partnership opportunities Fill in product gaps internally and through acquisition – Progressive cavity pumps……..others – Remote monitoring/automation for oil and gas production Grow core business – Leverage plunger and gas lift technologies into international markets – Strengthen our position in faster growing basins – Increase OEM share in bearings and compression 7 *Note: Outside North America and Europe, on a pro forma basis |
![]() 8 Engineered Systems: At a glance Dover Engineered Systems is focused on the design, manufacture and service of critical equipment and components serving the printing & identification, vehicle service, waste handling, and select niche industrial end-markets. 2013PF 2013PF Pro forma basis 59% 22% 5% 14% North America Europe China Rest of World 6% 10% 14% 18% $700 $1,400 $2,100 $2,800 2011 2012 2013 2014F $ in millions Revenue by geography Revenue & margin Revenue Margin 40% 60% Revenue by market Printing & Identification Industrial $- |
![]() 9 Growth opportunities: A look forward Engineered Systems Expand markets served in Printing & Identification – Recent MS acquisition adds exposure to fast growing textile markets Capitalize on “analog to digital” trend Leverage ink expertise to drive additional opportunity Extend technology to other textiles including flooring and wall coverings – Grow North American and China presence in core markets Make focused industrial investments – Concentrate on after-market customer productivity solutions Curotto Can a great example of creating value in “mature” markets More opportunities in vehicle service markets – Expand in high growth recycling and waste-to energy markets Extend geographic reach – Achieve YOY 10%+ growth outside the US – Growing middle class consumption and higher operating costs driving automation solutions in emerging markets 9 |
![]() 10 Fluids: At a glance Dover Fluids is focused on the safe handling of critical fluids across the oil & gas, retail fueling, chemical, hygienic and industrial end-markets. 2013PF 2013PF Pro forma basis 54% 19% 7% 20% Revenue by Geography North America Europe China Rest of World 46% 54% Revenue by Market Pumps Fluid Transfer 6% 10% 14% 18% 22% $- $400 $800 $1,200 $1,600 2011 2012 2013 2014F $ in millions Revenue & Margin Revenue Margin |
![]() 11 Growth opportunities: A look forward Fluids Leverage our global footprint to accelerate growth – Targeting 25% growth in markets outside North America and Europe in 2014 Grow presence in Middle East and China through Maag and Finder channels Double revenue in Australia through Ebsray’s LPG and chemical pump technologies Access new markets through recent acquisitions – Complete “station in a box” offering worldwide with KPS and Fibrelite – Penetrate North American plastics and oil & gas markets though European acquisitions Develop and acquire products that provide complete solutions – Build comprehensive offering of highly engineered pump technologies – Innovate around automation, energy efficiency and evolving regulatory standards – Expand hygienic pump presence 11 |
![]() 12 Refrigeration & Food Equipment: At a glance Dover Refrigeration & Food Equipment is the leading provider of energy efficient equipment and systems serving the commercial refrigeration and food service industries. 2013PF 2013PF Pro forma basis 77% 23% Revenue by Market Refrigeration Food Equipment 0% 6% 12% 18% $- $500 $1,000 $1,500 $2,000 2011 2012 2013 2014F $ in millions Revenue & Margin Revenue Margin 70% 13% 4% 13% Revenue by Geography North America Europe China Rest of World |
![]() 13 Growth opportunities: A look forward Refrigeration & Food Equipment Develop broader customer base – Build share with targeted accounts – Leverage strong customer relationships as supermarket chains expand globally Capitalize on secular trends – Rising energy costs and increasing government regulation are driving strong demand for energy efficient solutions Close-the-case sales grew +15% in 2013 with strong growth expected to continue Penetrate higher growth adjacent markets – Large retailers shifting to smaller store formats – C-store and “Dollar” stores expected to continue above market growth rates Leverage new sales channel organization and synergies – Convergence of refrigeration and food equipment in supermarket – Extend Anthony after-market business Acquire assets that expand technology and geography – Build turn-key refrigeration capabilities in Brazil and Europe; Add-ons in food equipment 13 |
![]() 14 Margin enhancement through productivity Global supply chain – Program now in its 5 th year – Continuing to leverage the scale of Dover Many spend categories are being reviewed again $90 -$120 million in savings or cost avoidance expected over the next 3 years Shared manufacturing – Several consolidation projects are near completion Hill Phoenix will consolidate 4 sites in Atlanta area ~$3M of annualized savings * More projects are on the way Investing in Lean and Post-Merger Integration (“PMI”) – Adding lean resources across segments – PMI leaders driven to integrate faster with focus on near term accretion 14 * Annualized savings over 3 years (2014 – 2016) Energy will combine 5 sites in Houston ~$1M of annualized savings * |
![]() 15 Capital allocation: Recent history Consistently returning cash to shareholders Acquisition spending will remain disciplined 15 * Includes Knowles capex and acquisitions $5.7B $ $300 $600 $900 $1,200 $1,500 Dividends Capex* Acquisitions* Share Repurchase $ in millions 2011 2012 2013 2011 – 2013 Capital allocation Capital Deployed 2011 – 2013: 12% 14% 48% 26% Dividends Capex* Acquisitions* Repurchase |
![]() 16 Capital allocation 2014 Strong balance sheet – $800 million cash as of December 31, 2013 (primarily overseas) – $400 million from Knowles – $170 million in proceeds from DEK sale (expected mid-year) – Strong free cash flow We expect to raise the dividend for 59 th consecutive year Capex expected to be roughly $200 million Acquisitions – Pipeline is active – Could close $500 million to $1 billion in deals this year Will complete $1 billion program in Q1 – Capacity to do more; largely dependent on how pipeline develops 16 |
![]() 17 Summary 2014 Organic growth rate Mid-term (a) Organic Growth rate Energy 4% - 5% 4% - 6% Engineered Systems 3% - 4% 3% - 5% Fluids 4% - 5% 4% - 6% Refrigeration & Food Equipment 2% - 3% 2% - 4% Total organic 3% - 4% 3% - 5% Acquisitions 3% (b) 5% Total growth 6% - 7% 8% - 10% 2014 is on track – Early bookings trends show solid broad-based growth – Q1 revenue growth as expected, sequentially in-line with Q4 2013 Mid-term growth complemented by: – Mid-term margin expansion to 19% driven by continuing focus on lean and productivity initiatives – Strong free cash flow generation in excess of 10% of revenue – Consistent return of cash to shareholders 17 (a): 2014 – 2016 (b): Growth from completed acquisitions |
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