dov-20200130
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________________________ 

FORM 8-K
_______________________________ 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 30, 2020
_______________________________
dov-20200130_g1.jpg
DOVER CORPORATION
(Exact name of registrant as specified in its charter)
______________________________________________
Delaware1-401853-0257888
(State or other jurisdiction of incorporation) (Commission File Number)(I.R.S. Employer Identification No.)
   
3005 Highland Parkway 
Downers Grove, Illinois
60515
(Address of Principal Executive Offices)(Zip Code)
(630) 541-1540
(Registrant’s telephone number, including area code)
 ______________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common StockDOVNew York Stock Exchange
1.250% Notes due 2026DOV 26New York Stock Exchange
0.750% Notes due 2027DOV 27New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐   
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨



Item 2.02 Results of Operations and Financial Condition.
 
On January 30, 2020, Dover Corporation ("Dover") issued the Press Release attached hereto as Exhibit 99.1 announcing its results of operations for the quarter ended December 31, 2019.
 
The information in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2, is being furnished to the Securities and Exchange Commission (the “SEC”) and shall not be deemed to be incorporated by reference into any of Dover’s filings with the SEC under the Securities Act of 1933, as amended.

Item 7.01 Regulation FD Disclosure.

As previously announced, on January 30, 2020, Dover will hold an investor conference call and webcast at 9:00 a.m. Central time (10:00 a.m. Eastern time) to discuss its results of operations for the quarter ended December 31, 2019. A copy of the supplemental presentation materials that will be used during the conference call is furnished as Exhibit 99.2 to this Form 8-K.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

The following exhibits are furnished as part of this report:
 
99.1 Press Release dated January 30, 2020.

99.2 Presentation Slides.

104 Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document).




SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.
  
Date:January 30, 2020DOVER CORPORATION
 (Registrant)
   
 By:/s/ Ivonne M. Cabrera
  Ivonne M. Cabrera
  Senior Vice President, General Counsel & Secretary
   





Exhibit 99.1
doverlogo1.jpg

Investor Contact:Media Contact:
Andrey GaliukAdrian Sakowicz
Vice President - Corporate DevelopmentVice President - Communications
and Investor Relations  (630) 743-5039 
(630) 743-5131 [email protected]  
[email protected]  

DOVER REPORTS FULL YEAR DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS OF $4.61 ($5.93 ON AN ADJUSTED BASIS); PROVIDES 2020 GUIDANCE


DOWNERS GROVE, Ill., January 30, 2020 — Dover (NYSE: DOV), a diversified global manufacturer, announced its financial results for the fourth quarter and full year ended December 31, 2019.

Three Months Ended December 31,   Twelve Months Ended December 31,  
($ in millions, except per share data)20192018% Change20192018% Change
U.S. GAAP from continuing operations  
Revenue  $1,776  $1,809  (1.8)%$7,136  $6,992  2.1 %
Earnings
168  158  6.4 %678  591  14.7 %
Diluted EPS
1.15  1.07  7.5 %4.61  3.89  18.5 %
Non-GAAP from continuing operations  
Organic revenue growth  (1.1)%3.8 %
Adjusted earnings 1
226  211  7.0 %872  756  15.4 %
Adjusted diluted EPS  1.54  1.43  7.7 %5.93  4.97  19.3 %

1 For the three months ended December 31, 2019 and 2018, adjusted earnings excluded after tax acquisition-related amortization costs of $25.1 million and $26.3 million, respectively, and rightsizing and other costs of $14.2 million and $29.6 million, respectively. In addition, the three months ended December 31, 2019, also excluded a $18.4 million loss on extinguishment of debt, and the three months ended December 31, 2018 excluded a $2.8 million net benefit from the Tax Cuts & Jobs Act.
For the full years ended December 31, 2019 and December 31, 2018, adjusted earnings excluded after tax acquisition-related amortization costs of $103.6 million and $109.3 million, respectively, and rightsizing and other costs of $25.4 million and $58.3 million, respectively. In addition, full year 2019 excluded a $46.9 million non-cash after-tax loss on assets held for sale related to Finder, as well as a $18.4 million loss on extinguishment of debt. Full year 2018 excluded a $2.8 million net benefit from the Tax Cuts & Jobs Act.

For the quarter ended December 31, 2019, Dover generated revenue of $1.8 billion, a decline of 2% (-1% organic) compared to the fourth quarter of the prior year. GAAP earnings from continuing operations of $168 million increased 6%, and GAAP diluted EPS of $1.15 was up 7%. On an adjusted basis, earnings from continuing operations of $226 million grew 7%, and adjusted diluted EPS of $1.54 was up 8% versus the comparable quarter of the prior year.

For the full year ended December 31, 2019, Dover generated revenue of $7.1 billion, up 2% (+4% organic) compared to the prior year. GAAP earnings from continuing operations of $678 million increased by 15%, and GAAP diluted EPS of $4.61 was up 19%. On an adjusted basis, earnings from continuing


operations of $872 million grew 15%, and adjusted diluted EPS of $5.93 was up 19% versus the prior year.

A full reconciliation between GAAP and adjusted measures is included as an exhibit herein.

MANAGEMENT COMMENTARY:

Dover’s President and Chief Executive Officer, Richard J. Tobin, said, “Dover delivered solid results in the fourth quarter. As expected, revenue declined slightly as we faced a difficult comparable from the fourth quarter of 2018. Segment EBIT margin continued to expand year-over-year, consistent with prior quarters as our margin improvement and operational efficiency programs continue to deliver tangible results.

“During the fourth quarter, our Fueling Solutions segment grew despite a challenging comparable quarter in 2018, driven by strong global demand, most notably in North America on a pickup in EMV compliance activity. Solid growth in Engineered Products was driven by healthy activity in both the waste handling equipment and software business and aftermarket vehicle services.

“The Imaging & Identification segment declined slightly in the quarter, a result of continued slower marking & coding activity in Asia, as well as slower activity in the digital textile printing business. The Pumps & Process Solutions segment posted a revenue decline, primarily due to comparable calendarization in our plastics processing business as well as slower demand in our pumps and precision components businesses as a result of channel inventory drawdowns. The segment’s biopharma business continued its double-digit growth trajectory. Finally, Refrigeration & Food Equipment segment had a slower quarter due to continued softness in new food retail store builds negatively impacting our systems volumes, partially offset by continued strength in core food retail case products and return to growth in our beverage can making and heat exchangers businesses.

“Overall, Dover delivered strong results for the full year 2019 despite an uncertain economic backdrop. Revenue growth was healthy across a majority of the portfolio and our businesses converted it well into earnings. Our strong operational execution delivered a significant increase in comparable cash flow and was complemented by value-creating and disciplined capital allocation, including large capital projects focused on growth and productivity, several attractive bolt-on acquisitions, and opportunistic share repurchases.

“As we enter 2020, most markets remain constructive. Order backlog is up year-over-year in four out of five segments, we are progressing well on multiple in-flight cost and productivity initiatives, and our M&A pipeline remains active. We are well-positioned to deliver top-line growth, margin expansion and solid EPS accretion in 2020, as outlined in our September investor meeting. Our strategy remains unchanged for 2020: drive value-creation through sustained growth, continued profitability improvement, strong cash flow and smart organic and inorganic capital deployment.”

FULL YEAR 2020 GUIDANCE:

In 2020, Dover expects to generate GAAP EPS in the range of $5.48 to $5.68 (adjusted EPS of $6.20 to $6.40), based on full year revenue growth of 2% to 3%. A full reconciliation between forecasted GAAP and forecasted adjusted measures is included as an exhibit herein.

SUBSEQUENT EVENTS:

On January 24, 2020, Dover closed the previously-announced acquisition of Systech International, a leading provider of traceability and brand-protection software solutions to global pharmaceutical and FMCG manufacturers. The transaction is expected to deliver accretive first year adjusted EPS.

On January 24, 2020, Dover signed an agreement to acquire Soft-Pak, Incorporated, a provider of software solutions for waste handling fleets. The transaction is expected to close in Q1 2020.





CONFERENCE CALL INFORMATION:

Dover will host a webcast and conference call to discuss its fourth quarter and full year 2019 results and 2020 guidance at 10:00 A.M. Eastern Time (9:00 A.M. Central Time) on Thursday, January 30, 2020. The webcast can be accessed on the Dover website at dovercorporation.com. The conference call will also be made available for replay on the website. Additional information on Dover’s fourth quarter and full year results and its operating segments can be found on the Company’s website.

ABOUT DOVER:

Dover is a diversified global manufacturer with annual revenue of over $7 billion. We deliver innovative equipment and components, specialty systems, consumable supplies, software and digital solutions, and support services through five operating segments: Engineered Products, Fueling Solutions, Imaging & Identification, Pumps & Process Solutions, and Refrigeration & Food Equipment. Dover combines global scale with operational agility to lead the markets we serve. Recognized for our entrepreneurial approach for over 60 years, our team of 24,000 employees takes an ownership mindset, collaborating with customers to redefine what’s possible. Headquartered in Downers Grove, Illinois, Dover trades on the New York Stock Exchange under “DOV.” Additional information is available at dovercorporation.com.

FORWARD-LOOKING STATEMENTS:

This press release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements in this document other than statements of historical fact are statements that are, or could be deemed, “forward-looking” statements. Forward-looking statements are subject to numerous important risks, uncertainties, assumptions and other factors, some of which are beyond the Company’s control. Factors that could cause actual results to differ materially from current expectations include, among other things, general economic conditions and conditions in the particular markets in which we operate, changes in customer demand and capital spending, competitive factors and pricing pressures, our ability to develop and launch new products in a cost-effective manner, our ability to realize synergies from newly acquired businesses, and our ability to derive expected benefits from restructuring, productivity initiatives and other cost reduction actions. For details on the risks and uncertainties that could cause our results to differ materially from the forward-looking statements contained herein, we refer you to the documents we file with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2018, and our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. These documents are available from the Securities and Exchange Commission, and on our website, dovercorporation.com. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.






















INVESTOR SUPPLEMENT - FOURTH QUARTER AND FULL YEAR 2019

DOVER CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)(in thousands, except per share data)

Three Months Ended December 31, Years Ended December 31,
2019201820192018
Revenue$1,775,589  $1,808,950  $7,136,397  $6,992,118  
Cost of goods and services1,124,274  1,163,979  4,515,459  4,432,562  
Gross profit651,315  644,971  2,620,938  2,559,556  
Selling, general, and administrative expenses403,223  426,198  1,599,098  1,716,444  
Loss on assets held for sale—  —  46,946  —  
Operating earnings248,092  218,773  974,894  843,112  
Interest expense30,846  32,015  125,818  130,972  
Interest income(1,428) (2,201) (4,526) (8,881) 
Loss on extinguishment of debt23,543  —  23,543  —  
Other (income) loss, net(1,891) 2,284  (12,950) (4,357) 
Earnings before provision for income taxes197,022  186,675  843,009  725,378  
Provision for income taxes28,900  28,700  165,091  134,233  
Earnings from continuing operations168,122  157,975  677,918  591,145  
Loss from discontinued operations, net—  (16,406) —  (20,878) 
Net earnings$168,122  $141,569  $677,918  $570,267  
Basic earnings (loss) per share*:
Earnings from continuing operations$1.16  $1.08  $4.67  $3.94  
Loss from discontinued operations, net—  (0.11) —  (0.14) 
Net earnings$1.16  $0.97  $4.67  $3.80  
Weighted average shares outstanding144,966  146,007145,198149,874
Diluted earnings (loss) per common share*:
Earnings from continuing operations$1.15  $1.07  $4.61  $3.89  
Loss from discontinued operations, net—  (0.11) —  (0.14) 
Net earnings
$1.15  $0.96  $4.61  $3.75  
Weighted average shares outstanding146,790147,940146,992152,133
Dividends paid per common share$0.49  $0.48  $1.94  $1.90  
* Per share data may be impacted by rounding.

IS - 1

DOVER CORPORATION
QUARTERLY SEGMENT INFORMATION
(unaudited)(in thousands)
20192018
Q1  Q2Q3Q4FY 2019Q1Q2Q3Q4FY 2018  
REVENUE
Engineered Products$418,851  $429,928  $426,689  $422,089  $1,697,557  $402,980  $416,552  $401,243  $412,372  $1,633,147  
Fueling Solutions373,050  390,586  411,769  444,772  1,620,177  319,304  363,355  367,617  415,314  1,465,590  
Imaging & Identification268,354  266,588  275,109  274,420  1,084,471  268,654  286,458  270,299  284,432  1,109,843  
Pumps & Process Solutions330,219  338,924  341,337  328,048  1,338,528  308,840  330,337  322,506  370,210  1,331,893  
Refrigeration & Food Equipment334,643  385,474  370,335  306,165  1,396,617  338,235  401,766  386,214  326,878  1,453,093  
Intra-segment eliminations(360) (794) 106  95  (953) (342) (374) (476) (256) (1,448) 
Total consolidated revenue$1,724,757  $1,810,706  $1,825,345  $1,775,589  $7,136,397  $1,637,671  $1,798,094  $1,747,403  $1,808,950  $6,992,118  
NET EARNINGS
Segment Earnings:
Engineered Products$67,119  $77,129  $74,367  $73,233  $291,848  $59,363  $67,331  $64,570  $61,104  $252,368  
Fueling Solutions37,230  52,637  68,069  73,937  231,873  22,709  35,342  40,615  53,589  152,255  
Imaging & Identification55,955  54,641  61,655  57,233  229,484  42,703  59,318  44,144  52,737  198,902  
Pumps & Process Solutions 1
14,991  76,278  77,433  71,379  240,081  44,639  57,686  60,592  74,632  237,549  
Refrigeration & Food Equipment24,807  44,375  35,211  14,439  118,832  29,182  51,372  42,434  13,131  136,119  
Total segment earnings (EBIT)200,102  305,060  316,735  290,221  1,112,118  198,596  271,049  252,355  255,193  977,193  
Corporate expense / other 2
30,866  24,512  28,658  63,781  147,817  30,763  30,050  30,207  38,704  129,724  
Interest expense31,808  31,754  31,410  30,846  125,818  35,640  32,125  31,192  32,015  130,972  
Interest income(890) (945) (1,263) (1,428) (4,526) (2,057) (2,563) (2,060) (2,201) (8,881) 
Earnings before provision for income taxes138,318  249,739  257,930  197,022  843,009  134,250  211,437  193,016  186,675  725,378  
Provision for income taxes32,613  51,654  51,924  28,900  165,091  24,841  44,981  35,711  28,700  134,233  
Earnings from continuing operations105,705  198,085  206,006  168,122  677,918  109,409  166,456  157,305  157,975  591,145  
Earnings (loss) from discontinued operations, net—  —  —  —  —  22,025  (26,497) —  (16,406) (20,878) 
Net earnings$105,705  $198,085  $206,006  $168,122  $677,918  $131,434  $139,959  $157,305  $141,569  $570,267  
SEGMENT MARGIN
Engineered Products16.0 %17.9 %17.4 %17.4 %17.2 %14.7 %16.2 %16.1 %14.8 %15.5 %
Fueling Solutions10.0 %13.5 %16.5 %16.6 %14.3 %7.1 %9.7 %11.0 %12.9 %10.4 %
Imaging & Identification20.9 %20.5 %22.4 %20.9 %21.2 %15.9 %20.7 %16.3 %18.5 %17.9 %
Pumps & Process Solutions 1
4.5 %22.5 %22.7 %21.8 %17.9 %14.5 %17.5 %18.8 %20.2 %17.8 %
Refrigeration & Food Equipment7.4 %11.5 %9.5 %4.7 %8.5 %8.6 %12.8 %11.0 %4.0 %9.4 %
Total segment operating margin11.6 %16.8 %17.4 %16.3 %15.6 %12.1 %15.1 %14.4 %14.1 %14.0 %
DEPRECIATION AND AMORTIZATION EXPENSE
Engineered Products$10,359  $10,452  $10,095  $10,126  $41,032  $11,443  $11,286  $10,528  $11,739  $44,996  
Fueling Solutions17,879  18,945  18,744  19,477  75,045  17,017  17,241  16,877  17,328  68,463  
Imaging & Identification7,435  7,413  7,360  8,322  30,530  7,797  7,916  7,675  7,494  30,882  
Pumps & Process Solutions 1
17,548  16,201  16,018  17,817  67,584  17,431  17,741  18,078  18,732  71,982  
Refrigeration & Food Equipment13,011  12,777  13,047  12,525  51,360  13,579  13,524  13,533  19,841  60,477  
Corporate1,506  1,981  1,523  1,726  6,736  1,358  1,595  1,399  1,428  5,780  
Total depreciation and amortization expense$67,738  $67,769  $66,787  $69,993  $272,287  $68,625  $69,303  $68,090  $76,562  $282,580  
1 Q1 and FY 2019 include a $46,946 loss on assets held for sale for Finder Pompe S.r.l. ("Finder").
2 Q4 and FY 2019 include a $23,543 loss on early extinguishment of debt.


IS - 2

DOVER CORPORATION
QUARTERLY EARNINGS PER SHARE
(unaudited)(in thousands, except per share data*)
Earnings Per Share
20192018
Q1Q2Q3Q4FY 2019Q1Q2Q3Q4FY 2018  
Basic earnings (loss) per common share:
Continuing operations$0.73  $1.36  $1.42  $1.16  $4.67  $0.71  $1.10  $1.07  $1.08  $3.94  
Discontinued operations—  —  —  —  —  0.14  (0.17) —  (0.11) (0.14) 
Net earnings$0.73  $1.36  $1.42  $1.16  $4.67  $0.85  $0.92  $1.07  $0.97  $3.80  
Diluted earnings (loss) per common share:
Continuing operations$0.72  $1.35  $1.40  $1.15  $4.61  $0.70  $1.08  $1.05  $1.07  $3.89  
Discontinued operations—  —  —  —  —  0.14  (0.17) —  (0.11) (0.14) 
Net earnings$0.72  $1.35  $1.40  $1.15  $4.61  $0.84  $0.91  $1.05  $0.96  $3.75  
Net earnings (loss) and weighted average shares used in calculated earnings per share amounts are as follows:
Net earnings (loss):
Continuing operations$105,705  $198,085  $206,006  $168,122  $677,918  $109,409  $166,456  $157,305  $157,975  $591,145  
Discontinued operations—  —  —  —  —  22,025  (26,497) —  (16,406) (20,878) 
Net earnings$105,705  $198,085  $206,006  $168,122  $677,918  $131,434  $139,959  $157,305  $141,569  $570,267  
Weighted average shares outstanding:
Basic145,087  145,366  145,372  144,966  145,198  154,520  151,744  147,344  146,007  149,874  
Diluted146,911  147,179  147,051  146,790  146,992  157,090  153,938  149,457  147,940  152,133  
* Per share data may be impacted by rounding.

































IS - 3

DOVER CORPORATION
CONSOLIDATED BALANCE SHEETS
(unaudited)(in thousands)

December 31, 2019December 31, 2018
Assets:
Cash and cash equivalents$397,253  $396,221  
Receivables, net of allowances1,217,190  1,231,859  
Inventories, net806,141  748,796  
Prepaid and other current assets127,846  126,878  
Property, plant and equipment, net842,318  806,497  
Goodwill3,783,347  3,677,328  
Intangible assets, net1,055,014  1,134,256  
Other assets and deferred charges440,368  243,936  
Total assets$8,669,477  $8,365,771  
Liabilities and Stockholders' Equity:
Notes payable$84,700  $220,318  
Payables and accrued expenses1,665,191  1,607,103  
Deferred taxes and other non-current liabilities 901,210  826,024  
Long-term debt2,985,716  2,943,660  
Stockholders' equity3,032,660  2,768,666  
Total liabilities and stockholders' equity$8,669,477  $8,365,771  

IS - 4

DOVER CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited)(in thousands)

Years Ended December 31,
20192018
Operating activities:
Net earnings$677,918  $570,267  
Loss from discontinued operations, net—  20,878  
Loss on assets held for sale46,946  —  
Loss on extinguishment of debt23,543  —  
Depreciation and amortization272,287  282,580  
Stock-based compensation29,702  23,698  
Contributions to employee benefit plans(21,436) (25,933) 
Net change in assets and liabilities(83,654) (82,297) 
Net cash provided by operating activities945,306  789,193  
Investing activities:
Additions to property, plant and equipment(186,804) (170,994) 
Acquisitions (net of cash and cash equivalents acquired)(215,687) (68,557) 
Proceeds from the sale of property, plant and equipment4,168  5,908  
Proceeds from the sale of businesses24,218  3,937  
Other(10,150) (15,774) 
Net cash used in investing activities(384,255) (245,480) 
Financing activities:
Cash received from Apergy, net of cash distributed—  689,643  
Change in commercial paper and notes payable, net(135,650) (10,722) 
Net increase (decrease) in long-term debt42,357  (350,000) 
Dividends to stockholders(282,197) (283,570) 
Purchase of common stock(143,280) (894,977) 
Payments to settle employee tax obligations on exercise(37,370) (46,254) 
Other(1,902) (1,958) 
Net cash used in financing activities(558,042) (897,838) 
Net cash used in discontinued operations—  (14,263) 
Effect of exchange rate changes on cash(1,977) 10,645  
Net (decrease) increase in cash and cash equivalents1,032  (357,743) 
Cash and cash equivalents at beginning of period396,221  753,964  
Cash and cash equivalents at end of period$397,253  $396,221  














IS - 5

DOVER CORPORATION
QUARTERLY ADJUSTED EARNINGS AND ADJUSTED EARNINGS PER SHARE (NON-GAAP)
(unaudited)(in thousands, except per share data*)

Non-GAAP Reconciliations
20192018
Q1Q2Q3Q4FY 2019Q1Q2Q3Q4FY 2018  
Adjusted earnings:
Earnings from continuing operations$105,705  $198,085  $206,006  $168,122  $677,918  $109,409  $166,456  $157,305  $157,975  $591,145  
Acquisition-related amortization, pre-tax 1
35,635  34,997  34,244  33,460  138,336  38,150  38,072  34,997  35,078  146,297  
Acquisition-related amortization, tax impact 2
(8,964) (8,777) (8,624) (8,403) (34,768) (9,716) (9,683) (8,785) (8,817) (37,001) 
Rightsizing and other costs, pre-tax 3
3,963  6,457  3,807  17,926  32,153  4,371  6,808  24,201  37,448  72,828  
Rightsizing and other costs, tax impact 2
(861) (1,377) (806) (3,745) (6,789) (797) (1,448) (4,477) (7,809) (14,531) 
Loss on extinguishment of debt, pre-tax 4
—  —  —  23,543  23,543  —  —  —  —  —  
Loss on extinguishment of debt, tax impact 2
—  —  —  (5,163) (5,163) —  —  —  —  —  
Loss on assets held for sale 5
46,946  —  —  —  46,946  —  —  —  —  —  
Tax Cuts and Jobs Act 6
—  —  —  —  —  —  —  —  (2,832) (2,832) 
Adjusted earnings from continuing operations
$182,424  $229,385  $234,627  $225,740  $872,176  $141,417  $200,205  $203,241  $211,043  $755,906  
Adjusted diluted earnings per share:
Diluted earnings per share from continuing operations$0.72  $1.35  $1.40  $1.15  $4.61  $0.70  $1.08  $1.05  $1.07  $3.89  
Acquisition-related amortization, pre-tax 1
0.24  0.24  0.23  0.23  0.94  0.24  0.25  0.23  0.24  0.96  
Acquisition-related amortization, tax impact 2
(0.06) (0.06) (0.06) (0.06) (0.24) (0.06) (0.06) (0.06) (0.06) (0.24) 
Rightsizing and other costs, pre-tax 3
0.03  0.04  0.03  0.12  0.22  0.03  0.04  0.16  0.25  0.48  
Rightsizing and other costs, tax impact 2
(0.01) (0.01) (0.01) (0.03) (0.06) (0.01) (0.01) (0.03) (0.05) (0.10) 
Loss on extinguishment of debt, pre-tax 4
—  —  —  0.16  0.16  —  —  —  —  —  
Loss on extinguishment of debt, tax impact 2
—  —  —  (0.04) (0.04) —  —  —  —  —  
Loss on assets held for sale 5
0.32  —  —  —  0.32  —  —  —  —  —  
Tax Cuts and Jobs Act 6
—  —  —  —  —  —  —  —  (0.02) (0.02) 
Adjusted diluted earnings per share from continuing operations
$1.24  $1.56  $1.60  $1.54  $5.93  $0.90  $1.30  $1.36  $1.43  $4.97  
1 Includes amortization on acquisition-related intangible assets and inventory step-up.
2 Adjustments were tax effected using the statutory tax rates in the applicable jurisdictions or the effective tax rate, where applicable, for each period.
3 Rightsizing and other costs include actions taken on employee reductions, facility consolidations and site closures, product line exits and other associated asset charges.
4 Represents a loss on early extinguishment of €300,000 2.125% notes due 2020 and $450,000 4.30% notes due 2021.
5 Represents a loss on assets held for sale of Finder. Under local law, no tax benefit is realized from the loss on the sale of a wholly-owned business.
6 2018 tax benefits related to additional Tax Cuts and Jobs Act regulatory guidance covered by SAB 118.
* Per share data and totals may be impacted by rounding.



IS - 6

DOVER CORPORATION
QUARTERLY SEGMENT ADJUSTED EBIT AND ADJUSTED EBITDA (NON-GAAP)
(unaudited)(in thousands)
Non-GAAP Reconciliations
20192018
Q1  Q2Q3Q4FY 2019Q1Q2Q3Q4FY 2018  
ADJUSTED SEGMENT EBIT AND ADJUSTED EBITDA
Engineered Products:
Segment earnings (EBIT)$67,119  $77,129  $74,367  $73,233  $291,848  $59,363  $67,331  $64,570  $61,104  $252,368  
Rightsizing and other costs80  1,125  590  1,355  3,150  463  417  2,713  3,693  7,286  
Adjusted EBIT - Segment67,199  78,254  74,957  74,588  294,998  59,826  67,748  67,283  64,797  259,654  
Adjusted EBIT %16.0 %18.2 %17.6 %17.7 %17.4 %14.8 %16.3 %16.8 %15.7 %15.9 %
Adjusted D&A 2
10,359  9,855  10,095  10,126  40,435  11,443  11,286  10,528  11,230  44,487  
Adjusted EBITDA - segment$77,558  $88,109  $85,052  $84,714  $335,433  $71,269  $79,034  $77,811  $76,027  $304,141  
Adjusted EBITDA %18.5 %20.5 %19.9 %20.1 %19.8 %17.7 %19.0 %19.4 %18.4 %18.6 %
Fueling Solutions:
Segment earnings (EBIT)$37,230  $52,637  $68,069  $73,937  $231,873  $22,709  $35,342  $40,615  $53,589  $152,255  
Rightsizing and other costs752  1,768  811  1,554  4,885  1,112  1,623  5,922  6,675  15,332  
Adjusted EBIT - Segment37,982  54,405  68,880  75,491  236,758  23,821  36,965  46,537  60,264  167,587  
Adjusted EBIT %10.2 %13.9 %16.7 %17.0 %14.6 %7.5 %10.2 %12.7 %14.5 %11.4 %
Adjusted D&A 2
17,879  18,945  18,744  19,477  75,045  17,017  17,241  16,877  17,328  68,463  
Adjusted EBITDA - segment$55,861  $73,350  $87,624  $94,968  $311,803  $40,838  $54,206  $63,414  $77,592  $236,050  
Adjusted EBITDA %15.0 %18.8 %21.3 %21.4 %19.2 %12.8 %14.9 %17.3 %18.7 %16.1 %
Imaging & Identification:
Segment earnings (EBIT)$55,955  $54,641  $61,655  $57,233  $229,484  $42,703  $59,318  $44,144  $52,737  $198,902  
Rightsizing and other costs389  1,268  301  4,392  6,350  899  347  7,923  3,476  12,645  
Adjusted EBIT - Segment56,344  55,909  61,956  61,625  235,834  43,602  59,665  52,067  56,213  211,547  
Adjusted EBIT %21.0 %21.0 %22.5 %22.5 %21.7 %16.2 %20.8 %19.3 %19.8 %19.1 %
Adjusted D&A 2
7,336  7,317  7,286  7,892  29,831  7,797  7,916  7,675  7,392  30,780  
Adjusted EBITDA - segment$63,680  $63,226  $69,242  $69,517  $265,665  $51,399  $67,581  $59,742  $63,605  $242,327  
Adjusted EBITDA %23.7 %23.7 %25.2 %25.3 %24.5 %19.1 %23.6 %22.1 %22.4 %21.8 %
Pumps & Process Solutions:
Segment earnings (EBIT)$14,991  $76,278  $77,433  $71,379  $240,081  $44,639  $57,686  $60,592  $74,632  $237,549  
Rightsizing and other costs414  903  943  3,868  6,128  653  2,071  4,552  6,099  13,375  
Loss on assets held for sale 1
46,946  —  —  —  46,946  —  —  —  —  —  
Adjusted EBIT - Segment62,351  77,181  78,376  75,247  293,155  45,292  59,757  65,144  80,731  250,924  
Adjusted EBIT %18.9 %22.8 %23.0 %22.9 %21.9 %14.7 %18.1 %20.2 %21.8 %18.8 %
Adjusted D&A 2
17,548  16,199  16,018  17,004  66,769  17,431  17,741  18,078  17,823  71,073  
Adjusted EBITDA - segment$79,899  $93,380  $94,394  $92,251  $359,924  $62,723  $77,498  $83,222  $98,554  $321,997  
Adjusted EBITDA %24.2 %27.6 %27.7 %28.1 %26.9 %20.3 %23.5 %25.8 %26.6 %24.2 %
Refrigeration & Food Equipment:
Segment earnings (EBIT)$24,807  $44,375  $35,211  $14,439  $118,832  $29,182  $51,372  $42,434  $13,131  $136,119  
Rightsizing and other costs2,293  666  840  2,243  6,042  —  —  451  9,498  9,949  
Adjusted EBIT - Segment27,100  45,041  36,051  16,682  124,874  29,182  51,372  42,885  22,629  146,068  
Adjusted EBIT %8.1 %11.7 %9.7 %5.4 %8.9 %8.6 %12.8 %11.1 %6.9 %10.1 %
Adjusted D&A 2
13,011  12,777  13,047  12,525  51,360  13,579  13,524  13,533  13,541  54,177  
Adjusted EBITDA - segment$40,111  $57,818  $49,098  $29,207  $176,234  $42,761  $64,896  $56,418  $36,170  $200,245  
Adjusted EBITDA %12.0 %15.0 %13.3 %9.5 %12.6 %12.6 %16.2 %14.6 %11.1 %13.8 %
Total Segments:
Segment earnings (EBIT) 3
$200,102  $305,060  $316,735  $290,221  $1,112,118  $198,596  $271,049  $252,355  $255,193  $977,193  
Rightsizing and other costs3,928  5,730  3,485  13,412  26,555  3,127  4,458  21,561  29,441  58,587  
Loss on assets held for sale 1
46,946  —  —  —  46,946  —  —  —  —  —  
Adjusted EBIT - Segment 4
250,976  310,790  320,220  303,633  1,185,619  201,723  275,507  273,916  284,634  1,035,780  
Adjusted EBIT % 4
14.5 %17.2 %17.5 %17.1 %16.6 %12.3 %15.3 %15.7 %15.7 %14.8 %
Adjusted D&A 2
66,133  65,093  65,190  67,024  263,440  67,267  67,708  66,691  67,314  268,980  
Adjusted EBITDA - segment 4
$317,109  $375,883  $385,410  $370,657  $1,449,059  $268,990  $343,215  $340,607  $351,948  $1,304,760  
Adjusted EBITDA % 4
18.4 %20.7 %21.1 %20.9 %20.3 %16.4 %19.1 %19.5 %19.5 %18.7 %
1 Q1 and FY 2019 include a $46,946 loss on assets held for sale for Finder Pompe S.r.l. ("Finder").
2 Adjusted D&A is depreciation and amortization expense, excluding depreciation and amortization included within rightsizing and other costs.
3 Refer to Quarterly Segment Information section for reconciliation of total segment earnings (EBIT) to net earnings.
4 Refer to Additional Information section for definition.

IS - 7

DOVER CORPORATION
REVENUE GROWTH FACTORS & ADJUSTED GUIDANCE (NON-GAAP)
(unaudited)(in thousands, except per share data*)

Other Non-GAAP Reconciliations

Revenue Growth Factors
2019
Q1Q2Q3Q4Full Year
Organic
Engineered Products6.1 %4.9 %7.4 %3.1 %5.4 %
Fueling Solutions20.0 %8.3 %10.7 %5.0 %10.5 %
Imaging & Identification5.5 %(3.1)%4.6 %(1.8)%1.2 %
Pumps & Process Solutions10.0 %6.7 %8.7 %(8.0)%3.9 %
Refrigeration & Food Equipment0.7 %(2.8)%(3.2)%(5.6)%(2.7)%
Total Organic8.3 %2.9 %5.6 %(1.1)%3.8 %
Acquisitions0.5 %0.8 %1.0 %0.9 %0.8 %
Dispositions(0.1)%(0.5)%(0.5)%(0.6)%(0.5)%
Currency translation(3.4)%(2.5)%(1.6)%(1.0)%(2.0)%
Total*5.3 %0.7 %4.5 %(1.8)%2.1 %
* Totals may be impacted by rounding.


2019
Full Year
Organic
United States3.6 %
Other Americas1.2 %
Europe6.5 %
Asia 2.4 %
Other2.3 %
Total Organic3.8 %
Acquisitions0.8 %
Dispositions(0.5)%
Currency translation(2.0)%
Total*2.1 %
* Totals may be impacted by rounding.

Adjusted Guidance Reconciliation
2019 Actual2020 Guidance
Adjusted net earnings per share*:
Net earnings (GAAP)$4.61  $ 5.48 - 5.68  
Acquisition-related amortization, net0.70  0.66  
Rightsizing and other costs, net  0.16  0.06  
Loss on extinguishment of debt  0.12  —  
Loss on assets held for sale  0.32  —  
Adjusted net earnings (Non-GAAP) $5.93  $ 6.20 - 6.40  
* Per share data and totals may be impacted by rounding.







IS - 8

DOVER CORPORATION
QUARTERLY SEGMENT INFORMATION
(unaudited)(in thousands)
20192018
Q1  Q2Q3Q4FY 2019Q1Q2Q3Q4FY 2018  
BOOKINGS
Engineered Products$427,697  $397,420  $426,059  $457,145  $1,708,321  $480,513  $425,322  $403,098  $494,622  $1,803,555  
Fueling Solutions343,083  394,256  450,727  425,698  1,613,764  360,519  392,100  383,749  376,651  1,513,019  
Imaging & Identification267,762  264,175  284,527  276,451  1,092,915  270,653  294,248  258,883  282,519  1,106,303  
Pumps & Process Solutions369,801  375,905  329,642  318,482  1,393,830  342,991  345,278  340,287  358,319  1,386,875  
Refrigeration & Food Equipment376,998  384,365  323,422  361,970  1,446,755  372,701  428,816  331,979  341,221  1,474,717  
Intra-segment eliminations(725) (490) (528) 872  (871) (680) (25) (597) (617) (1,919) 
Total consolidated bookings$1,784,616  $1,815,631  $1,813,849  $1,840,618  $7,254,714  $1,826,697  $1,885,739  $1,717,399  $1,852,715  $7,282,550  
BACKLOG
Engineered Products$451,335  $418,154  $416,025  $452,142  $380,846  $375,975  $370,948  $442,519  
Fueling Solutions185,847  186,202  223,081  205,842  229,234  246,087  251,212  208,574  
Imaging & Identification118,177  116,810  121,877  125,775  131,544  133,570  123,624  118,057  
Pumps & Process Solutions353,066  378,427  361,478  353,073  315,020  318,891  337,420  315,230  
Refrigeration & Food Equipment311,632  310,454  262,870  320,577  283,250  309,440  255,783  268,991  
Intra-segment eliminations(403) (141) (252) (249) (394) (154) (58) (200) 
Total consolidated backlog$1,419,654  $1,409,906  $1,385,079  $1,457,160  $1,339,500  $1,383,809  $1,338,929  $1,353,171  
Bookings Growth Factors
2019
Q1Q2Q3Q4Full Year
Organic
Engineered Products(9.3)%(4.9)%6.9 %(6.8)%(4.0)%
Fueling Solutions(2.3)%1.9 %16.5 %11.0 %6.9 %
Imaging & Identification4.5 %(6.4)%13.0 %(0.3)%2.3 %
Pumps & Process Solutions11.0 %12.8 %(0.8)%(9.2)%3.3 %
Refrigeration & Food Equipment2.8 %(9.2)%(1.5)%6.8 %(0.7)%
Total Organic0.4 %(1.5)%6.8 %(0.1)%1.3 %
Acquisitions0.6 %0.6 %0.9 %0.9 %0.8 %
Dispositions(0.1)%(0.5)%(0.4)%(0.3)%(0.3)%
Currency translation(3.2)%(2.3)%(1.7)%(1.2)%(2.1)%
Total*(2.3)%(3.7)%5.6 %(0.7)%(0.4)%
* Totals may be impacted by rounding.
IS - 9

ADDITIONAL INFORMATION
FOURTH QUARTER AND FULL YEAR 2019
(Amounts in thousands except share data and where otherwise indicated)

Change in Segments

Effective October 1, 2019, the Company transitioned from a three-segment to a five-segment structure as a result of a change to its internal organization. This new structure will increase management efficiency and better align the Company’s operations with its strategic initiatives and capital allocation priorities across its businesses. All periods are presented under the new structure.

Acquisitions

The Company did not complete any acquisitions during the fourth quarter of 2019. For the full year 2019, the Company acquired three businesses in separate transactions for total consideration of $216.4 million, net of cash acquired and including contingent consideration. The businesses were acquired to complement and expand upon existing operations within the Fueling Solutions and Pumps & Process Solutions segments.

Discontinued and Disposed Businesses

The Company did not dispose of any businesses during the fourth quarter of 2019. For the full year 2019, the Company completed the sale of Finder, which generated total cash proceeds of $24.2 million. The Finder business was included in the results of the Pumps & Process Solutions segment. The sale does not represent a strategic shift that will have a major effect on operations and financial results and, therefore, did not qualify for presentation as a discontinued operation.

Rightsizing and Other Costs

During the year ended December 31, 2019, the Company executed several programs in order to further optimize operations. Rightsizing programs in 2019 included 1) broad-based selling, general and administrative expense reduction and 2) initiation of footprint consolidation actions. During the fourth quarter of 2019, the Company recorded rightsizing and other related costs of $17.9 million which is comprised of $14.8 million of restructuring costs and $3.1 million of other charges. During the full year 2019, the Company recorded rightsizing and other related costs of $32.2 million which is comprised of $26.8 million of restructuring costs and $5.3 million of other charges. These costs primarily relate to actions taken on employee reductions, facility consolidations and site closures, product line exits and other associated asset charges. During the fourth quarter and full year 2019, rightsizing and other charges were broad based across all segments as well as corporate, with costs incurred by segment as follows:

($ in millions)20192018
Q4FYQ4FY
Engineered Products$1.4  $3.2  $3.7  $7.3  
Fueling Solutions1.6  4.9  6.7  15.3  
Imaging & Identification4.4  6.4  3.5  12.6  
Pumps & Process Solutions3.9  6.1  6.1  13.4  
Refrigeration & Food Equipment2.2  6.0  9.5  10.0  
Corporate4.5  5.6  8.0  14.2  
Total*$17.9  $32.2  $37.4  $72.8  
* Totals may be impacted by rounding.

Tax Rate

The effective tax rate was 14.7% and 15.4% for the fourth quarters of 2019 and 2018, respectively. On a full year basis, the effective tax rate for 2019 and 2018 was 19.6% and 18.5%, respectively. The 2019 tax rate was primarily driven by the tax deduction for share-based awards and other favorable discrete items, partially offset by the exclusion of capital losses on a disposition of a business under local tax law. The 2018 tax rate was impacted by the tax deduction for share-based awards, the impact of SAB 118 from US Tax Reform, and other favorable discrete items.





IS - 10

ADDITIONAL INFORMATION (CONTINUED)
FOURTH QUARTER AND FULL YEAR 2019
(Amounts in thousands except share data and where otherwise indicated)

Share Repurchases

During the year ended December 31, 2019, the Company purchased approximately 1.3 million shares of its common stock for a total cost of $143.3 million, or $106.64 per share. As of December 31, 2019, 8,360,044 shares remain authorized for repurchase under the February 2018 share repurchase authorization.

Borrowings

On November 4, 2019, the Company issued €500 million of 0.750% euro-denominated notes due 2027 and $300 million of 2.950% notes due 2029. The proceeds from the sale of euro-denominated notes of €494.7 million, net of discounts and issuance costs, were used in part to redeem the €300 million 2.125% notes due 2020. The proceeds from the sale of notes of $296.9 million, net of discounts and issuance costs, and the remaining funds from the sale of the euro-denominated notes, were used to fund the redemption of the $450 million 4.30% notes due 2021. The remainder of the proceeds will be used for general corporate purposes. The early extinguishment of debt resulted in a pre-tax loss of $23.5 million.

Capitalization

The following table provides a reconciliation of total debt and net debt to net capitalization to the most directly comparable GAAP measures:

Net Debt to Net Capitalization Ratio (Non-GAAP)December 31, 2019December 31, 2018
Commercial paper84,700  220,318  
Notes payable84,700  220,318  
Long-term debt2,985,716  2,943,660  
Total debt3,070,416  3,163,978  
Less: Cash and cash equivalents(397,253) (396,221) 
Net debt2,673,163  2,767,757  
Add: Stockholders' equity3,032,660  2,768,666  
Net capitalization$5,705,823  $5,536,423  
Net debt to net capitalization46.8 %50.0 %

Quarterly Cash Flow
20192018
Q1Q2Q3Q4FY 2019  Q1Q2Q3Q4FY 2018  
Net Cash Flows Provided By (Used In):
Operating activities$24,524  $208,709  $350,865  $361,208  $945,306  $15,535  $159,205  $243,944  $370,509  $789,193  
Investing activities(217,690) (69,755) (48,612) (48,198) (384,255) (122,597) (51,606) (35,922) (35,355) (245,480) 
Financing activities36,067  (60,596) (277,901) (255,612) (558,042) (289,103) (227,734) (232,476) (148,525) (897,838) 

Quarterly Free Cash Flow (Non-GAAP)
20192018
Q1Q2Q3Q4FY 2019  Q1Q2Q3Q4FY 2018  
Cash flow from operating activities$24,524  $208,709  $350,865  $361,208  $945,306  $15,535  $159,205  $243,944  $370,509  $789,193  
Less: Capital expenditures(37,122) (53,970) (46,184) (49,528) (186,804) (44,678) (51,686) (38,192) (36,438) (170,994) 
Free cash flow *$(12,598) $154,739  $304,681  $311,680  $758,502  $(29,143) $107,519  $205,752  $334,071  $618,199  
Free cash flow as a percentage of revenue(0.7)%8.5 %16.7 %17.6 %10.6 %(1.8)%6.0 %11.8 %18.5 %8.8 %
Free cash flow as a percentage of earnings from continuing operations(11.9)%78.1 %147.9 %185.4 %111.9 %(26.6)%64.6 %130.8 %211.5 %104.6 %
* FY 2019 and 2018 free cash flow includes cash payments related to restructuring initiatives of $33.3 million and $52.0 million, respectively. Q4 2019 and 2018 free cash flow includes cash payments related to restructuring initiatives of $7.4 million and $13.4 million, respectively.

IS - 11

Non-GAAP Disclosures

In an effort to provide investors with additional information regarding our results as determined by GAAP, Management also discloses non-GAAP information that Management believes provides useful information to investors. Adjusted earnings from continuing operations, adjusted diluted earnings per share from continuing operations, total segment earnings (EBIT), adjusted EBIT by segment, adjusted EBIT margin by segment, adjusted EBITDA by segment, adjusted EBITDA margin by segment, net debt, net capitalization, net debt to net capitalization ratios, free cash flow, free cash flow as a percentage of revenue, free cash flow as a percentage of earnings, and organic revenue growth are not financial measures under GAAP and should not be considered as a substitute for earnings from continuing operations, diluted earnings per share from continuing operations, debt or equity, cash flows from operating activities, or revenue as determined in accordance with GAAP, and they may not be comparable to similarly titled measures reported by other companies. 

Adjusted earnings from continuing operations represents earnings from continuing operations adjusted for the effect of acquisition-related amortization, rightsizing and other costs, loss on extinguishment of debt, loss on assets held for sale, and the Tax Cuts and Jobs Act. We exclude after-tax acquisition-related amortization because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions the Company consummates. We exclude the other items because they occur for reasons that may be unrelated to the Company's commercial performance during the period and/or Management believes they are not indicative of the Company's ongoing operating costs or gains in a given period.

Adjusted diluted earnings per share from continuing operations represents adjusted earnings from continuing operations divided by average diluted shares.

Total segment earnings (EBIT) is defined as earnings from continuing operations before income taxes, net interest expense and corporate expenses. Total segment earnings (EBIT) margin is defined as total segment earnings (EBIT) divided by revenue.

Adjusted EBIT by Segment is defined as earnings from continuing operations before income taxes, net interest expense, corporate expenses, rightsizing and other costs and a 2019 loss on assets held for sale. Adjusted EBIT Margin by Segment is defined as adjusted EBIT by segment divided by segment revenue.

Adjusted EBITDA by Segment is defined as adjusted EBIT by segment plus depreciation and amortization, excluding depreciation and amortization included within rightsizing and other costs. Adjusted EBITDA Margin by Segment is defined as adjusted EBITDA by segment divided by segment revenue.

Management believes these measures are useful to investors to better understand the Company’s ongoing profitability as it will better reflect the Company's core operating results, offer more transparency and facilitate easier comparability to prior and future periods and to its peers.

Net debt represents total debt minus cash and cash equivalents. Net capitalization represents net debt plus stockholders' equity. Net debt to net capitalization ratio equals net debt divided by net capitalization. Management believes the net debt to net capitalization ratio is useful to assess our overall financial leverage and capacity. 

Free cash flow represents net cash provided by operating activities minus capital expenditures. Free cash flow as a percentage of revenue equals free cash flow divided by revenue. Free cash flow as a percentage of earnings from continuing operations equals free cash flow divided by earnings from continuing operations. Management believes that free cash flow and free cash flow ratios are important measures of operating performance because it provides management and investors a measurement of cash generated from operations that is available for mandatory payment obligations and investment opportunities, such as funding acquisitions, paying dividends, repaying debt and repurchasing our common stock.

Management believes that reporting organic revenue growth, which excludes the impact of foreign currency exchange rates and the impact of acquisitions and dispositions, provides a useful comparison of our revenue and bookings performance and trends between periods.
IS - 12
January 30, 2020 – 9:00am CT Earnings Conference Call Fourth Quarter and Full Year 2019

 
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 from time to time with the SEC, including our Form 10-K for 2018, 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. In addition to financial measures based on U.S. GAAP, Dover provides supplemental non-GAAP financial information. Management uses non-GAAP measures in addition to GAAP measures to understand and compare operating results across periods, make resource allocation decisions, and for forecasting and other purposes. Management believes these non-GAAP measures reflect results in a manner that enables, in many instances, more meaningful analysis of trends and facilitates comparison of results across periods and to those of peer companies. These non-GAAP financial measures have no standardized meaning presented in U.S. GAAP and may not be comparable to other similarly titled measures used by other companies due to potential differences between the companies in calculations. The use of these non-GAAP measures has limitations and they should not be considered as substitutes for measures of financial performance and financial position as prepared in accordance with U.S. GAAP. Reconciliations and definitions are included either in this presentation or in Dover’s earnings release and investor supplement for the fourth quarter, which are available on Dover’s website. 2

 
Summary Corporate Results and Highlights Q4 2019 FY 2019 Highlights and Comments . Q4 expectedly slower on challenging comparable All-in -2% +2% Revenue growth . Strong year despite macro uncertainty Organic(1) -1% +4% . FX impact: -1% in Q4; -2% for FY19 . Constructive activity across most end markets All-in -1% Flat Bookings growth . Book-to-bill: 1.04 Organic(1) Flat +1% . Backlog up 8% Y-o-Y; increase in four segments . Q4 margin up despite lower revenue Segment EBIT Reported(2) +220 bps +160 bps margin Y-o-Y . Continued focus on productivity and margin Adjusted(1) +140 bps +180 bps improvement enhancement yields tangible results Earnings Reported $168M $678M . Q4 Y-o-Y growth: Reported +6%; Adjusted +7% from continuing (1) operations Adjusted $226M $872M . FY Y-o-Y growth: Reported +15%; Adjusted +15% Diluted EPS Reported $1.15 $4.61 from continuing . Full year 2019 Reported and Adj. EPS both +19% (1) operations Adjusted $1.54 $5.93 . 2020 EPS guidance: ‒ Reported: $5.48 - 5.68 Guidance and other activities ‒ Adjusted(1): $6.20 - 6.40 . Soft-Pak (signed), Systech (closed) in January ’20 (1) Non-GAAP measures (definitions and reconciliations in appendix) 3 (2) Refer to definition of total segment earnings (EBIT) margin in appendix

 
Q4 and Full Year 2019 Adjusted Segment Results Q4 2019 (1) FY 2019 (1) Revenue Adj. Revenue Adj. ($M) / EBIT % / ($M) / EBIT % / Comments Segment Organic bps ∆ Organic bps ∆ Growth % Y-o-Y Growth% Y-o-Y . Strength in solid waste handling, vehicle services and aerospace $422 17.7% $1,698 17.4% & defense DEP +3% +200 bps +5% +150 bps . Q4 bookings -8% (-7% organically) on difficult comparable at ESG vs. Q4 ’18; Strong backlog into 2020 . Solid demand across all regions in 2019, incl. Q4 (particularly $445 17.0% $1,620 14.6% strong in North America) DFS +5% +250 bps +11% +320 bps . Q4 bookings +13% (+11% organically), driven by acceleration in EMV compliance . Slower coding activity in Asia and order pushouts in digital textile $274 22.5% $1,084 21.7% printing DII -2% +270 bps +1% +260 bps . Q4 bookings -2% (flat organically); impacted by order timing and deliveries at DDP . Slow demand in pumps and precision components, order timing in plastics processing; strong growth in biopharma $328 22.9% $1,339 21.9% DPPS -8% +110 bps +4% +310 bps . Q4 bookings -11% (-9% organically) on channel inventory drawdowns in pumps and slower precision components; Backlog +12% Y-o-Y . Soft new food retail store builds and foodservice equipment; $306 5.4% $1,397 8.9% return to growth in beverage can making and heat exchangers DRFE -6% -150 bps -3% -120 bps . Q4 bookings +6% (+7% organically) on significant increase in food retail case orders; Backlog +19% Y-o-Y (1) Non-GAAP reconciliations in appendix 4

 
Q4 and FY 2019 Revenue & Bookings Geographic Detail Revenue Change in Organic Revenue(1): -$19M, or -1.1% FY 2019 Organic Rev Growth(1) OTHER 4% 2% ASIA 12% 2% EUROPE 22% 6% 1,809 13 21 -5 -30 -18 -20 5 1,776 ($M) Q4 2018 DEP DFS DII DPPS DRFE FX ACQ./ Q4 2019 ORG. ORG. ORG. ORG. ORG. DISP. (2) OTHER AMER. 9% 1% Bookings Change in Organic Bookings: -$2M, or -0.1% US 53% 4% 1,853 -34 41 -1 -33 23 1 -21 10 1,841 ($M) Q4 2018 DEP DFS DII DPPS DRFE SEG FX ACQ./ Q4 2019 ORG. ORG. ORG. ORG. ORG. ELIMS DISP. (3) FY 2019 % of Revenue Note: $ in millions. Numbers may not add due to rounding (1) Non-GAAP measure (definition and reconciliation in appendix) (2) Acquisitions: $17M, dispositions: $12M 5 (3) Acquisitions: $16M, dispositions: $6M

 
Q4 2019 Profitability Drivers Change in Adjusted Segment EBIT (3) +$19M +7% 20.9% 19.5% 17.1% 15.7% 285 67 352 9 17 6 -6 -7 371 -67 304 ($M) ADJ. EBIT D&A (1) ADJ. EBITDA DEP DFS DII DPPS DRFE ADJ. EBITDA D&A (2) ADJ. EBIT Q4 2018 Q4 2019 Change in Adjusted Earnings from Continuing Operations (3) +$15M +7% 12.7% 11.7% 158 30 26 -3 211 19 -5 1 226 -25 -14 -18 168 ($M) GAAP RIGHT ACQ. TAX CUTS & ADJ. SEGMENT CORP. INT./TAX ADJ. ACQ. RIGHT LOSS ON GAAP EARNINGS SIZING AMORT. JOBS ACT EARNINGS EBIT EXPENSE EXPENSE EARNINGS AMORT. SIZING EXT. OF EARNINGS DEBT Q4 2018 Q4 2019 (1) Depreciation: $32M, Amortization: $35M Note: $ in millions. Numbers may not add due to rounding (2) Depreciation: $33M, Amortization: $34M 6 (3) Non-GAAP measures (definitions and reconciliations in appendix)

 
2019 Free Cash Flow Increased $140 Million $M FY 2019 FY 2018 ∆ Net earnings $678 $570 +$108 Adjustments for losses(1) 71 21 +50 D&A 272 283 -10 Chg. in working capital (41) (62) +22 Chg. in other(2) (35) (23) -12 Cash flow from operations $945 $789 +$156 Capex (187) (171) -16 Free cash flow(4) $758 $618 +$140 (3)(4) FCF as % of reported earnings 112% 105%12.3% +730 bps FCF as % of adjusted earnings(3)(4) 87% 82% +520 bps . Q4 cash restructuring costs: $7M, YTD: $33M . Q4 2019 FCF(4) 17.6% of revenue; 18.0% excluding cash restructuring costs . 2019 FCF(4) 10.6% of revenue; 11.1% excluding cash restructuring costs Note: Numbers may not add due to rounding (1) Includes loss from discontinued operations, loss on assets held for sale, and loss on extinguishment of debt (2) Includes stock-based compensation and changes in other current and non-current assets and liabilities 7 (3) From continuing operations. Excludes loss from discontinued operations of $0 million and $21 million in 2019 and 2018, respectively (4) Non-GAAP measures (definitions and reconciliations in appendix)

 
2019 Adjusted EPS Bridge Adjusted EPS(1) ($/share) $5.93 ($0.13) $0.20 $0.81 $4.97 $0.08 2018 Acquisitions / Organic FX Corporate, Interest, 2019 Adj. EPS Dispositions Revenue Growth Shares, and ETR Adj. EPS / Conversion 2019 Adjusted EPS up 19% Year-over-Year Note: Numbers may not add due to rounding (1) Non-GAAP measure (definitions and reconciliations in appendix) 8

 
FY 2020 Guidance Revenue Growth CorporateCorporate Items Items . 2% - 3% all-in . Net interest expense: – Minimal impact from FX – ≈ $102 million and M&A . Tax rate: – ≈ 20% - 22% . 2% - 3% organic(3) . Corporate expenses: – ≈ $135 million EPS Free Cash Flow . Reported: $5.48 - $5.68 . 85 - 90% conversion on adjusted net earnings . Adjusted(1): $6.20 - $6.40 . Capital expenditures: – ≈ $200 - $220 million Guidance implies ~8-11% Y-o-Y growth(2) in adjusted diluted EPS in 2020(1) Dollar/Euro assumption: 1.11 (1) Non-GAAP measure (definitions and reconciliations in appendix); assumes 146.1 million diluted weighted average shares outstanding (2) Excluding discrete taxes 9 (3) Non-GAAP measure (definition in appendix, reconciliation on next page)

 
FY 2020 Revenue Guidance Detail Pumps & Refrig Engineered Fueling Imaging Process & Food Total Products Solutions & ID Solutions Equip. Organic Guidance 3% - 5% 0% - 2% 2% - 3% 3% - 5% 0% - 2% 2% - 3% Acquisitions - 0% - 0% - 0% Dispositions - - - (1%) - 0% Currency 0% (1)% - 0% (1)% - 0% 0% 0% 0% Total Revenue 3% - 5% 0% - 2% 1% - 2% 2% - 4% 0% - 2% 2% - 3% Dollar/Euro assumption: 1.11 10

 
Progress in Delivering on Our Commitments Improve Deploy Capital Maintain Reinvest in Margins and Smartly and Organic Growth the Business Execution Productively ’19 Results . ~$136M SG&A take-out . 4% organic growth(1) in . ~$30M of SG&A savings . Four bolt-on deals FY19 reinvested signed/closed (including in . Above-ground fueling Initiated ~$60M growth January ’20) business exited 2019 . Four out of five segments . above target margin range delivered organic growth and productivity CapEx . $143M of share investments repurchases in 2019 . ’19 total adj. segment EBIT(1) up 180 bps ’20 Plan . $50M incremental cost . Sustained organic . Continued priority on . Robust acquisition pipeline take-out growth(2) of 2-3% organic reinvestment consistent with strategic Expect all segments to Several new growth portfolio intent and criteria . DFR productivity . . programs initiated grow in 2020 CapEx projects . Opportunistic repurchases . Continued investments . Ongoing operating model in digital and operations evolution with increased capabilities focus on operational excellence Strategic Playbook Unchanged for 2020 1. Non-GAAP measure (definition and reconciliation in appendix) 11 2. Non-GAAP measure (definition in appendix, reconciliation on prior slide)

 
Appendix 12

 
Q4 2018 to Q4 2019 Revenue and Bookings Bridges by Segment Revenue Bridge by Segment ($ in millions) DEP DFS DII DPPS DRFE Total Q4 2018 Revenue 412 415 284 370 327 1,809 Organic Growth 13 21 (5) (30) (18) (19) FX (3) (5) (5) (4) (3) (20) Acquisitions / Dispositions - 14 - (9) - 5 Q4 2019 Revenue 422 445 274 328 306 1,776 Bookings Bridge by Segment ($ in millions) DEP DFS DII DPPS DRFE Total Q4 2018 Bookings 495 377 283 358 341 1,853 Organic Growth (34) 41 (1) (33) 23 (2) FX (4) (5) (5) (4) (3) (21) Acquisitions / Dispositions - 13 - (3) - 10 Q4 2019 Bookings 457 426 276 318 362 1,841 Note: Numbers may not add due to rounding 13

 
FY 2019 Organic Revenue and Bookings Bridges FY 2019 Segment Growth Factors Revenue Growth Bookings Growth Organic Engineered Products 5.4% -4.0% Fueling Solutions 10.5% 6.9% Imaging & Identification 1.2% 2.3% Pumps & Process Solutions 3.9% 3.3% Refrigeration & Food Equipment -2.7% -0.7% Total Organic 3.8% 1.3% Acquisitions 0.8% 0.8% Dispositions -0.5% -0.3% Currency translation -2.0% -2.1% Total 2.1% -0.4% FY 2019 Geographic Revenue Growth Factors Revenue Growth Organic US 3.6% Other Americas 1.2% Europe 6.5% Asia 2.4% Other 2.3% Total Organic 3.8% Acquisitions 0.8% Dispositions -0.5% Currency translation -2.0% Total 2.1% Note: Numbers may not add due to rounding 14

 
Reconciliation of Q4 2019 Earnings from Continuing Operations to Adj. EBIT and Adj. EBITDA and Calculation of Adj. EBIT Margin and Adj. EBITDA Margin by Segment Q4 2019 ($ in millions) DEP DFS DII DPPS DRFE Total Revenue 422 445 274 328 306 1,776 Earnings from continuing operations - - - - - 168 Add back: Corporate expense - - - - - 40 Interest expense, net - - - - - 29 Income tax expense - - - - - 29 Loss on extinguishment of debt - - - - - 24 Segment earnings (EBIT) 73 74 57 71 14 290 EBIT % 17.4% 16.6% 20.9% 21.8% 4.7% 16.3% Adjustments: Rightsizing and other costs 1 2 4 4 2 13 Adjusted EBIT - Segment 75 75 62 75 17 304 Adjusted EBIT % 17.7% 17.0% 22.5% 22.9% 5.4% 17.1% Adjusted depreciation and amortization expense(1) 10 19 8 17 13 67 Adjusted EBITDA - Segment 85 95 70 92 29 371 Adjusted EBITDA % 20.1% 21.4% 25.3% 28.1% 9.5% 20.9% Note: Numbers may not add due to rounding (1) Adjusted depreciation and amortization expense excludes depreciation and amortization included within rightsizing and other costs 15

 
Reconciliation of Q4 2018 Earnings from Continuing Operations to Adj. EBIT and Adj. EBITDA and Calculation of Adj. EBIT Margin and Adj. EBITDA Margin by Segment Q4 2018 ($ in millions) DEP DFS DII DPPS DRFE Total Revenue 412 415 284 370 327 1,809 Earnings from continuing operations - - - - - 158 Add back: Corporate expense - - - - - 39 Interest expense, net - - - - - 30 Income tax expense - - - - - 29 Segment earnings (EBIT) 61 54 53 75 13 255 EBIT % 14.8% 12.9% 18.5% 20.2% 4.0% 14.1% Adjustments: Rightsizing and other costs 4 7 3 6 9 29 Adjusted EBIT - Segment 65 60 56 81 23 285 Adjusted EBIT % 15.7% 14.5% 19.8% 21.8% 6.9% 15.7% Adjusted depreciation and amortization expense (1) 11 17 7 18 14 67 Adjusted EBITDA - Segment 76 78 64 99 36 352 Adjusted EBITDA % 18.4% 18.7% 22.4% 26.6% 11.1% 19.5% Note: Numbers may not add due to rounding (1) Adjusted depreciation and amortization expense excludes depreciation and amortization included within rightsizing and other costs 16

 
Reconciliation of FY 2019 Earnings from Continuing Operations to Adj. EBIT and Adj. EBITDA and Calculation of Adj. EBIT Margin and Adj. EBITDA Margin by Segment FY 2019 ($ in millions) DEP DFS DII DPPS DRFE Total Revenue 1,698 1,620 1,084 1,339 1,397 7,136 Earnings from continuing operations - - - - - 678 Add back: Corporate expense - - - - - 124 Interest expense, net - - - - - 121 Income tax expense - - - - - 165 Loss on extinguishment of debt - - - - - 24 Segment earnings (EBIT) 292 232 229 240 119 1,112 EBIT % 17.2% 14.3% 21.2% 17.9% 8.5% 15.6% Adjustments: Rightsizing and other costs 3 5 6 6 6 27 Loss on sale of Finder - - - 47 - 47 Adjusted EBIT - Segment 295 237 236 293 125 1,186 Adjusted EBIT % 17.4% 14.6% 21.7% 21.9% 8.9% 16.6% Adjusted depreciation and amortization expense(1) 40 75 30 67 51 263 Adjusted EBITDA - Segment 335 312 266 360 176 1,449 Adjusted EBITDA % 19.8% 19.2% 24.5% 26.9% 12.6% 20.3% Note: Numbers may not add due to rounding (1) Adjusted depreciation and amortization expense excludes depreciation and amortization included within rightsizing and other costs 17

 
Reconciliation of FY 2018 Earnings from Continuing Operations to Adj. EBIT and Adj. EBITDA and Calculation of Adj. EBIT Margin and Adj. EBITDA Margin by Segment FY 2018 ($ in millions) DEP DFS DII DPPS DRFE Total Revenue 1,633 1,466 1,110 1,332 1,453 6,992 Earnings from continuing operations - - - - - 591 Add back: Corporate expense - - - - - 130 Interest expense, net - - - - - 122 Income tax expense - - - - - 134 Segment earnings (EBIT) 252 152 199 238 136 977 EBIT % 15.5% 10.4% 17.9% 17.8% 9.4% 14.0% Adjustments: Rightsizing and other costs 7 15 13 13 10 59 Adjusted EBIT - Segment 260 168 212 251 146 1,036 Adjusted EBIT % 15.9% 11.4% 19.1% 18.8% 10.1% 14.8% Adjusted depreciation and amortization expense(1) 44 68 31 71 54 269 Adjusted EBITDA - Segment 304 236 242 322 200 1,305 Adjusted EBITDA % 18.6% 16.1% 21.8% 24.2% 13.8% 18.7% Note: Numbers may not add due to rounding (1) Adjusted depreciation and amortization expense excludes depreciation and amortization included within rightsizing and other costs 18

 
Reconciliation of Adjusted Earnings from Continuing Operations to Earnings from Continuing Operations and Calculation of Adjusted Diluted EPS under U.S. GAAP ($ in millions, except per share data) Q4 2019 Q4 2018 FY 2019 FY 2018 Earnings from continuing operations ($) 168 158 678 591 Acquisition-related amortization, pre tax 33 35 138 146 Acquisition-related amortization, tax impact (8) (9) (35) (37) Rightsizing and other costs, pre tax 18 37 32 73 Rightsizing and other costs, tax impact (4) (8) (7) (15) Loss on debt extinguishment, pre tax 24 - 24 - Loss on debt extinguishment, tax impact (5) - (5) - Loss on assets held for sale - - 47 - Tax Cuts and Jobs Act - (3) - (3) Adjusted earnings from continuing operations ($) 226 211 872 756 Weighted average shares outstanding – diluted 147 148 147 152 Diluted EPS ($) 1.15 1.07 4.61 3.89 Acquisition-related amortization, pre tax 0.23 0.24 0.94 0.96 Acquisition-related amortization, tax impact (0.06) (0.06) (0.24) (0.24) Rightsizing and other costs, pre tax 0.12 0.25 0.22 0.48 Rightsizing and other costs, tax impact (0.03) (0.05) (0.06) (0.10) Loss on debt extinguishment, pre tax 0.16 - 0.16 - Loss on debt extinguishment, tax impact (0.04) - (0.04) - Loss on assets held for sale - - 0.32 - Tax Cuts and Jobs Act - (0.02) - (0.02) Adjusted diluted EPS ($) 1.54 1.43 5.93 4.97 Note: Numbers may not add due to rounding 19

 
Reconciliation of Free Cash Flow and EPS from Continuing Operations to Adjusted EPS from Continuing Operations Free Cash Flow Reconciliation ($ millions) Q4 2019 Q4 2018 FY 2019 FY 2018 Net Cash Provided by Operating Activities 361 371 945 789 Capital Expenditures (50) (36) (187) (171) Free Cash Flow 312 334 758 618 Cash Restructuring Costs 7 13 33 52 Free Cash Flow, Excluding Cash Restructuring Costs 319 347 792 670 Free Cash Flow as a % of Earnings from Continuing Operations 185.4% 211.5% 111.9% 104.6% Free Cash Flow as a % of Adjusted Earnings from Continuing Operations 138.1% 158.3%185.4% 87.0% 81.8% Free Cash Flow as a % of Revenue 17.6% 18.5%185.4% 10.6% 8.8% Free Cash Flow, Excluding Cash Restructuring Costs, as a % of Revenue 18.0% 19.2%185.4% 11.1% 9.6% Adjusted EPS from Continuing Operations Reconciliation Range 2020 Guidance for Earnings per Share from Continuing Operations (GAAP) $5.48 $5.68 Acquisition-related amortization, net 0.66 Rightsizing and other costs, net 0.06 2020 Guidance for Adjusted Earnings per Share from Continuing Operations $6.20 $6.40 Note: Numbers may not add due to rounding 20

 
Non-GAAP Definitions Definitions of Non-GAAP Measures: Adjusted Earnings from Continuing Operations: is defined as earnings from continuing operations adjusted for the effect of acquisition-related amortization, rightsizing and other costs, a 2019 loss on debt extinguishment, a 2019 loss on assets held for sale and 2018 tax benefits for the Tax Cuts and Jobs Act. Adjusted Diluted Earnings Per Share from Continuing Operations: is defined as adjusted earnings from continuing operations divided by average diluted shares. Total segment earnings (EBIT): is defined as earnings from continuing operations before income taxes, net interest expense and corporate expenses. Total segment earnings (EBIT) margin: is defined as total segment earnings (EBIT) divided by revenue. Adjusted EBIT by Segment: is defined as earnings from continuing operations before income taxes, net interest expense, corporate expenses, rightsizing and other costs and a 2019 loss on assets held for sale. Adjusted EBIT Margin by Segment: is defined as adjusted EBIT by segment divided by segment revenue. The bps change Y-o-Y is calculated as the difference between adjusted EBIT margin for the current period and the prior period. Adjusted EBITDA by Segment: is defined as adjusted EBIT by segment plus depreciation and amortization, excluding depreciation and amortization included within rightsizing and other costs. Adjusted EBITDA Margin by Segment: is defined as adjusted EBITDA by segment divided by segment revenue. Free Cash Flow: is defined as net cash provided by operating activities minus capital expenditures. Free cash flow as a percentage of revenue equals free cash flow divided by revenue. Free cash flow as a percentage of earnings from continuing operations equals free cash flow divided by earnings from continuing operations. Free cash flow as a percentage of adjusted earnings from continuing operations equals free cash flow divided by adjusted earnings from continuing operations. Free cash flow, excluding cash restructuring costs, is defined as free cash flow minus cash restructuring costs. Free cash flow, excluding cash restructuring costs, as a % of revenue equals free cash flow, excluding cash restructuring costs, divided by revenue. Organic Revenue Growth: is defined as revenue growth excluding the impact of foreign currency exchange rates and the impact of acquisitions and dispositions. The tables included in this presentation provide reconciliations of the non-GAAP measures used in this presentation to the most directly comparable U.S. GAAP measures. Further information regarding management’s use of these non-GAAP measures is included in Dover’s earnings release and investor supplement for the fourth quarter. 21