Dover Corp at Barclays Industrial Select Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Julian Mitchell - Barclays Investment Bank - Analyst : <_ALACRA_META_ABSTRACT>Maybe just start off perhaps with kind of how you see the current demand environment. I think your orders growth has been very good the last couple of quarters. Maybe explain some of kind of the drivers there? Do you think it's sustainable?

Question: Julian Mitchell - Barclays Investment Bank - Analyst : Good. And on that point, on the businesses that had that headwind around post-COVID inventory normalization I guess you had sweat around heat exchanges, Belvac in can shaping, MAAG around polymer processing. And I suppose we'd have a sort of the 0.5 or 3.5 business would be the vehicle wash, which has had a tough time more around interest rates than anything else. How quickly do you see each of those getting better kind of from here?

Question: Julian Mitchell - Barclays Investment Bank - Analyst : Yeah. And then vehicle wash, it's sort of --

Question: Julian Mitchell - Barclays Investment Bank - Analyst : Great. And if you think kind of across the businesses, is there any delta in terms of, say, aftermarket activity versus greenfield project or it's really vertical by vertical, you have to go through. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 20, 2025 / 1:05PM, DOV.N - Dover Corp at Barclays Industrial Select Conference

Question: Julian Mitchell - Barclays Investment Bank - Analyst : Yeah. And I think company-wide, Dover has this sort of 4% to 6% organic growth target through cycle. Kind of just given what you've seen since that last Investor Day, seen how the business has performed, there have been some portfolio changes, how do you feel about that 4% to 6% target?

Question: Julian Mitchell - Barclays Investment Bank - Analyst : And I think one area that you've highlighted as a growth there is around kind of CO2 systems. Maybe help us understand kind of rough scale or market share of that business, how rapid is the sort of customer (technical difficulty)

Question: Julian Mitchell - Barclays Investment Bank - Analyst : And when you look at the sort of customers, is it a handful of very large ones driving it today across the -- REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 20, 2025 / 1:05PM, DOV.N - Dover Corp at Barclays Industrial Select Conference

Question: Julian Mitchell - Barclays Investment Bank - Analyst : Okay. And I think yeah, CO2 systems is one of those you've highlighted as high growth above fleet average. There's a handful of other ones, clean energy, precision biopharma, liquid cooling. When we think of those each in turn, how much are you adding kind of capacity-wise across them? And --

Question: Julian Mitchell - Barclays Investment Bank - Analyst : And when we think about these handful of above fleet average growth assets, what about the margin profile there? As you get this above-average revenue growth or sort of incrementals or leverage --

Question: Julian Mitchell - Barclays Investment Bank - Analyst : And when we think about firm-wide incrementals or operating leverage, again, there's been these portfolio changes, you've got high leverage this year. Do the changes you put in place make that sort of 30%-ish through cycle number look conservative or it's a good starting place? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 20, 2025 / 1:05PM, DOV.N - Dover Corp at Barclays Industrial Select Conference

Question: Julian Mitchell - Barclays Investment Bank - Analyst : And a couple of the businesses that are -- or segments, let's say, that are below the fleet average, maybe start with engineered products, a lot of divestments there the last 18 months, how kind of satisfied are you with the shape of engineered products today? You've got that low 20s margin aspiration from before with the sort of old portfolio, how do you think about it now on margins?

Question: Julian Mitchell - Barclays Investment Bank - Analyst : Got it. And if we look at climate and sustainability, I think the CO2 growth is a margin tailwind. Longer term, is that a division or a segment that can do 20%-plus margin. Is that what you're aiming for?

Question: Julian Mitchell - Barclays Investment Bank - Analyst : Got it. SP1 And on the CO2 side, good growth seems like a high profit margin entitlement. Do you see much in the way of new competitors coming in or incumbents who are behind suddenly trying to catch up? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 20, 2025 / 1:05PM, DOV.N - Dover Corp at Barclays Industrial Select Conference

Question: Julian Mitchell - Barclays Investment Bank - Analyst : Yeah. But your point would be you'll have built out by then a good amount of installed base with large --

Question: Julian Mitchell - Barclays Investment Bank - Analyst : And then DII, it's not a business that gets much attention for some reason from investors, but I think it's been performing at a very high level, margin-wise, maybe help us understand kind of some of the strategic points you're focused on in DII.

Question: Julian Mitchell - Barclays Investment Bank - Analyst : And then within pumps and process, the way people on the outside talk about it, it seems to be -- it's sort of biopharma and then everything else. Clearly, inside it is I'm guessing not run like that. But how do you think about these are some of the verticals aside from biopharma where you're trying to sort of lean into?

Question: Julian Mitchell - Barclays Investment Bank - Analyst : And then acquisition wise, I think as you've seen in the last two years, people went into this year saying this will be a year of great M&A activity. So far, it seemed quite quiet, just overall M&A, particularly January was a very weak month, I think. How are you kind of seeing M&A yourself the sort of appeal and size and number of targets that are coming?

Question: Julian Mitchell - Barclays Investment Bank - Analyst : And what's the appetite to kind of move outside of where Dover is right now? I mean you've got -- again, the sort of half dozen high organic growth verticals where you've added organic CapEx, would you put more M&A money into those or perhaps think about adding a seventh or eighth high organic growth leg?

Question: Julian Mitchell - Barclays Investment Bank - Analyst : And in terms of business model, let's say, aside from brands close to ones you own already, should we expect anything more in the way of a push towards recurring revenue or there I say, software or sort of precision components is the preferred --

Question: Julian Mitchell - Barclays Investment Bank - Analyst : And the point around sort of deal size, that's partly, I guess, what is a function of the market niches that you're in that they tend to be fairly small a handful of players. So there's kind of an automatic limit on the side. Is that the way to look at it?

Question: Julian Mitchell - Barclays Investment Bank - Analyst : Got it. And when you look around, say, the broader industrial landscape, every quarter, it feels like someone announcing some separation, whether under internal or external motives. I guess sort of Dover has had a decent rerating recently, but any thoughts from you around the merits of larger divestment or spins?

Question: Julian Mitchell - Barclays Investment Bank - Analyst : Perfect. Well, with that, we'll switch to the audience response survey. So first question, do you currently own shares in Dover? (voting) So 60%, no. Secondly, what's the sort of general attitude to Dover at present? (voting) So 60% positively inclined.