Slide 1: Second Quarter 2020 Earnings Conference Call
July 31, 2020 Second Quarter 2020 Earnings Conference Call Quarterly Presentation 2017 1
Slide 2: Forward Looking Statements and Non-GAAP Measures
Forward Looking Statements and Non-GAAP Measures Safe Harbor Statement: This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions
Slide 3: Q2 2020 Overview
Q2 2020 Overview • Q2 2020 Reported and Adjusted EPS of $0.07 and $0.53* • Bookings decreased 26.9%, or 25.1% constant currency - Aftermarket bookings of $443 million decreased 12.9%, or 10.7% constant currency • Revenue decreased 6.6%, or 4.2% constant currency • Backlog remained healthy at $2.1 bi
Slide 4: Q2 Bookings & Sales Mix
Q2 Bookings & Sales Mix Bookings Sales End-Markets $808M $1.11B $925M $990M Oil & Gas • Oil price volatility reduced throughout Q2 • Refining utilization remains challenged 31% 41% 41% • Significant CAPEX reductions from integrated and 42% North America national oil companies Oil & Gas • Global oil
Slide 5: Original Equipment / Aftermarket Mix
Original Equipment / Aftermarket Mix Original Equipment Aftermarket Bookings Mix % Sales Mix % Bookings Mix % Sales Mix % $ millions $597 $ millions $ millions $ millions $475 $493 $502 $508 $498 $463 $452 $462 $443 $442 $366 54% 55% 50% 51% 50% 51% 50% 50% 49% 49% 46% 45% 2020 Q2 2020 Q1 2019 Q2 20
Slide 6: Q2 2020 Financial Scorecard
[1] Q2 2020 Financial Scorecard [1] [2] Bookings Revenue Adjusted OI% Adjusted EPS [1] Operating Cash Flow PWC $ millions $ millions $ millions As a % of TTM Revenue $1,105 $47 28.6% 28.5% 11.6% 11.3% $977 $990 $0.54 $925 $0.53 $895 $808 26.4% $11 5.9% $0.21 2020 2020 Q1 2019 Q2 Q2 -$26 2020 Q2 2020
Slide 7: 2020 Priorities and Outlook
2020 Priorities and Outlook 2020 Outlook* • Protecting the health and safety of our workforce, customers and suppliers • Expect second half bookings and revenues to be essentially flat versus first half • Second half decremental operating margins expected in 20% – 25% range • Expect adjusted EPS in
Slide 8: Questions & Answers
Questions & Answers Flowserve Q2 2020 Earnings Conference Call 8
Slide 9: Appendix
Appendix Flowserve Q2 2020 Earnings Conference Call 9
Slide 10: Q2 2020 Consolidated Financial Results
Q2 2020 Consolidated Financial Results 2nd Quarter 2nd Quarter Adjusted 2020 2020 2019 Constant Constant ($ millions) 2020 2019 Delta ($) Delta (%) Adjusted Adjusted Adjusted Delta ($) Delta (%) FX(%)* FX(%)* Items Results Results Bookings $ 808.3 $ 1,105.0 $ (296.7) -26.9% -25.1% $ - $ 808.3 $ 1,10
Slide 11: Year-to-Date 2020 Consolidated Financial Results
Year-to-Date 2020 Consolidated Financial Results Year-to-Date Year-to-Date Adjusted 2020 2020 2019 Constant Constant ($ millions) 2020 2019 Delta ($) Delta (%) FX(%)* Adjusted Adjusted Adjusted Delta ($) Delta (%) FX(%)* Items Results Results Bookings $ 1,783.6 $ 2,165.1 $ (381.5) -17.6% -15.8% $ -
Slide 12: Flowserve Pump Division 2020 Segment Results
Flowserve Pump Division 2020 Segment Results 2nd Quarter Year-to-Date Constant Constant ($ millions) 2020 2019 Delta ($) Delta (%) FX(%)* 2020 2019 Delta ($) Delta (%) FX(%)* Bookings $ 536.5 $ 761.9 $ (225.4) -29.6% -27.7% $ 1,220.1 $ 1,512.0 $ (291.9) -19.3% -17.4% Sales $ 674.1 $ 674.6 $ (0.5) -0
Slide 13: Flowserve Pump Division 2020 Bookings and Sales
Flowserve Pump Division 2020 Bookings and Sales 2nd Quarter Full Year Constant Constant ($ millions) 2020 2019 Delta (%) 2020 2019 Delta (%) FX(%)* FX(%)* 162 323 -50% -49% 419 640 -35% -33% OE 30% 42% (1200) bps 34% 42% (800) bps Bookings Mix ** 375 439 -15% -12% 801 872 -8% -6% AM 70% 58% 1200 bps
Slide 14: Flow Control Division 2020 Segment Results
Flow Control Division 2020 Segment Results 2nd Quarter Year-to-Date Constant Constant ($ millions) 2020 2019 Delta ($) Delta (%) FX(%)* 2020 2019 Delta ($) Delta (%) FX(%)* Bookings $ 274.6 $ 346.4 $ (71.8) -20.7% -19.1% $ 570.8 $ 659.6 $ (88.8) -13.5% -11.8% Sales $ 252.2 $ 316.9 $ (64.7) -20.4% -1
Slide 15: Flow Control Division 2020 Bookings and Sales
Flow Control Division 2020 Bookings and Sales 2nd Quarter Full Year Constant Constant ($ millions) 2020 2019 Delta (%) 2020 2019 Delta (%) FX(%)* FX(%)* 205 276 -26% -24% 423 509 -17% -15% OE 75% 80% (500) bps 74% 77% (300) bps Bookings Mix ** 69 71 -2% -1% 148 150 -2% 0% AM 25% 20% 500 bps 26% 23%
Slide 16: Investor Relations Contacts
Investor Relations Contacts Jay Roueche Mike Mullin 972.443.6560 972.443.6636 jroueche@flowserve.com mmullin@flowserve.com Flowserve Q2 2020 Earnings Conference Call 16