![]() Exhibit 99.1 William Blair Growth Stock Conference Bob Livingston June 11, 2014 |
![]() 2 Forward looking statements 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 from time to time with the SEC, including our Form 10-K for 2013 and our Form 10-Q for the first quarter of 2014, 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, www.dovercorporation.com, where considerably more information can be found. 2 |
![]() 3 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 in providing solutions enable us to win Our technologies and innovative products are enablers for our customers to win Our focus on people drives our performance – Develop deep bench – Move talent through organization |
![]() 4 Recent activities support our underlying strategy & strengths New segment structure to capture growth opportunities 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 4 Customer intimacy – Innovate for the customer Recurring theme of delivering efficiency and sustainability – Superior customer service On-time delivery, quality, support Leverage our scale Generate cash Market share leadership – Focus on technology and innovation drive share gains and customer loyalty Recent Activities Underlying Strengths |
![]() 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 |
![]() 6 Our track record of success Revenue EBIT EPS Dividends Note: Revenue and EBIT is in millions; adjusted EPS represents Dover’s earnings from continuing operations per common share adjusted for gains from discrete and other tax items of $0.17, $0.16, $0.23, $0.09 and $0.46 respectively, for 2009, 2010, 2011, 2012 and 2013, and other one-time gains of $0.02 in 2013. $0 $325 $650 $975 $1,300 $0 $2,000 $4,000 $6,000 $8,000 2009 2010 2011 2012 2013 Revenue & EBIT Revenue EBIT $1.00 $1.20 $1.40 $1.60 $0.00 $1.50 $3.00 $4.50 2009 2010 2011 2012 2013 Adj. EPS & Dividends Paid Adj. EPS Dividend per share |
![]() 7 Dover segments at a glance Revenue Mix Revenue Mix Fluids is focused on the safe handling of critical fluids across the oil & gas, retail fueling, chemical, hygienic and industrial end-markets. Revenue Mix Refrigeration & Food Equipment is the leading provider of energy efficient equipment and systems serving the commercial refrigeration and food service industries. Revenue Mix 81% 19% Drilling & Production Bearings & Compression 60% 40% Industrial Printing & Identification 54% 46% Fluid Transfer Pumps 77% 23% Refrigeration Food Equipment Energy is a leading provider of customer driven solutions and services for safe and efficient production and processing of oil & gas worldwide, and has a strong presence in the bearings and compression components market. 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. |
![]() 8 Growth opportunities: A look forward 8 10% 15% 20% 25% 30% $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 2011 2012 2013 2014F $ in millions Revenue & margin Revenue Margin Energy 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 Continue to expand geographical presence – Significant investments in sales, field engineering and facilities – Increase participation in global tenders – Seek additional industry partnership opportunities Fill in product gaps internally and through acquisition |
![]() 9 Growth opportunities: A look forward 9 6% 10% 14% 18% $1,200 $1,600 $2,000 $2,400 $2,800 2011 2012 2013 2014F $ in millions Revenue & margin Revenue Margin – Capitalize in fast growing textile market – Grow North American and China presence in core markets Make focused industrial investments – Concentrate on after-market customer productivity solutions – 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 Engineered Systems Expand and extend markets served in Printing & Identification |
![]() 10 Growth opportunities: A look forward 10 6% 10% 14% 18% 22% $400 $800 $1,200 $1,600 2011 2012 2013 2014F $ in millions Revenue & Margin Revenue Margin Develop and acquire products that provide complete solutions – Innovate around automation, energy efficiency and compliance Access new markets through recent acquisitions – Complete “station in a box” offering worldwide with KPS and Fibrelite – Penetrate NA plastics and oil & gas markets though European acquisitions Leverage our global footprint to accelerate growth – Grow presence in Middle East and China through Maag and Finder channels – Expand in Australia through Ebsray’s LPG and chemical pump technologies Fluids |
![]() 11 Growth opportunities: A look forward 11 0% 6% 12% 18% $500 $1,000 $1,500 $2,000 2011 2012 2013 2014F $ in millions Revenue & Margin Revenue Margin Refrigeration & Food Equipment Develop broader customer base – Build share with targeted accounts Capitalize on secular trends – Rising energy costs and increasing government regulation are driving strong demand for energy efficient solutions Penetrate higher growth adjacent markets – C-store and small format stores expected to continue above market growth rates – Capitalize on convergence of refrigeration and food equipment in supermarkets Acquire assets that expand technology and geography – Build refrigeration capabilities in Brazil and Europe; Add-ons in food equipment |
![]() 12 Margin enhancement through productivity Global supply chain – Program now in its 5 year – Continuing to leverage the scale of Dover Many spend categories are being reviewed again Shared manufacturing – Several consolidation projects are near completion Hill Phoenix will consolidate 4 sites in Atlanta area ~$3M of annualized savings * Energy will combine 5 sites in Houston ~$1M 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 12 * Annualized savings over 3 years (2014 – 2016) th |
![]() 13 Capital allocation 2014 Strong balance sheet – $486 million cash as of March 31, 2014 (primarily overseas) – $170 million in proceeds from DEK sale (expected mid-year) – Strong FY free cash flow expected ( 11% of revenue) We expect to raise the dividend for 59 consecutive year Capex expected to be roughly $200 million Acquisitions – Pipeline is active Completed $1 billion share repurchase program in Q1 – Capacity to do more; largely dependent on how pipeline develops 13 th |
![]() 14 14 Activity is solid across all segments – Energy, Engineered Systems and Fluids all performing well Well count and rig count showing modest improvement Product Identification, waste handling and auto service markets remain solid Plastics & petro-chemical, and Oil & gas markets drive strong results in Fluids – Refrigeration & Food Equipment seasonally ramping as anticipated Solid FY growth expected in US and Europe; China grows at more modest levels Margin sequentially improves in seasonally strong Q2 and Q3 Targeting the high-end of our $4.60 - $4.80 EPS range Market commentary |
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