Flowserve Corporation · NYSE:FLS
Flowserve — Gabelli 31st Annual Pump, Valve & Water Systems Symposium (February 2021)
24 slides from Flowserve's conference presentation, Feb 25, 2021
Slide 1: Gabelli Pump, Valve & Water Systems Symposium
Gabelli Pump, Valve & Water Systems Symposium Amy Schwetz Senior Vice President Chief Financial Officer February 25, 2021
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: Investment Highlights
Investment Highlights Distinguished history in flow control expertise with a 225+ year heritage Company Overview Diversified business model – geographies, end markets and products Significant installed base provides recurring aftermarket opportunities Transformation Flowserve 2.0 Transformation buil
Slide 4: Flowserve at a Glance
Flowserve at a Glance Geographic diversification Increasingly engaged including significant high associates focused on growth emerging market ~16,000 meeting and exceeding exposure Employees customer expectations Over 50 Over 50 Countries Leading Product Brands Capturing highly profitable Respected
Slide 5: Diversified Business Model
Diversified Business Model ~60% of Business Outside North America Balanced Platform 6% 12% 28% 39% 2020 2020 Sales North America Sales 22% Europe Flowserve Pump Division Asia Pacific 72% Pumps and Seals Middle East & Africa 21% Latin America Flow Control Division Valves and Actuation Attractive End
Slide 6: A Comprehensive, Pure-Play Flow Control Company
A Comprehensive, Pure-Play Flow Control Company Highlights AFTERMARKET • Only company with significant global presence in pumps, valves and seals PUMPS • Unmatched aftermarket capabilities to serve customers across industries and geographies SEALS ‒ Enterprise Frame Agreements ‒ LifeCycle Advantage
Slide 7: Flowserve 2.0 Transformation Journey
Flowserve 2.0 Transformation Journey 2018-2020 2021 2022 Innovative Optimize & Grow Products & Services Customer Experience Fix the Core Flowserve 2.0 Operational Excellence + Process Discipline 7
Slide 8: RedRaven – Flowserve's IoT Platform
RedRaven – Flowserve’s IoT Platform • Digitally connect with our customers • Realtime actionable operating data • Monitoring and prediction capabilities PREDICT. ACT. PROTECT. • Improves productivity and plant reliability 8
Slide 9: Progress Towards Long-Term Targets
[*] Progress Towards Long-Term Targets 2018 2019 2020 Organic Revenue 5.1% 6.0% (4.9%) Growth Adjusted Operating Margin 9.3% 10.8% 9.8% Adjusted Free Cash Flow Conversion 50% 90% 111% ROIC 10.2% 12.5% 11.4% While COVID has impacted timing, we remain confident that all targets are achievable with our
Slide 10: 2020 ESG Accomplishments
2020 ESG Accomplishments Environmental Social Governance • Committed to reduce carbon • Continued commitment to safety • Focused board refreshment – 4 emissions intensity by 40% by 2030 and integrity – Top decile safety new board members since 2018 • Implemented Sustainability performance • 40% Boar
Slide 11: Questions & Answers
Questions & Answers
Slide 12: Appendix
Appendix
Slide 13: 2021 Guidance Assumptions
2021 Guidance Assumptons [1] Guidance Assumptions 2021 Guidance Revenue Guidance Down 4.0% - 7.0% Reported EPS Guidance $1.15 - $1.40 [2] Adjusted EPS Guidance $1.30 - $1.55 EUR Rate 1.20 Adjusted Tax Rate 22% - 24% Capital Expenditures $70 - $80 million [1] 2021 Reported and Adjusted EPS guidance a
Slide 14: Q4 2020 Consolidated Financial Results
Q4 2020 Consolidated Financial Results 4th Quarter 4th Quarter Adjusted 2020 2020 2019 Constant Constant ($ millions) 2020 2019 Delta ($) Delta (%) Adjusted Adjusted Adjusted Delta ($) Delta (%) FX(%)* FX(%)* Items Results Results Bookings $ 825.1 $ 1,052.1 $ (227.0) -21.6% -22.7% $ - $ 825.1 $ 1,05
Slide 15: Full Year 2020 Consolidated Financial Results
Full Year 2020 Consolidated Financial Results Full Year Full Year Adjusted 2020 2020 2019 Constant Constant ($ millions) 2020 2019 Delta ($) Delta (%) Adjusted Adjusted Adjusted Delta ($) Delta (%) FX(%)* FX(%)* Items Results Results Bookings $ 3,411.6 $ 4,238.3 $ (826.7) -19.5% -18.9% $ - $ 3,411.6
Slide 16: Flowserve Pump Division: 2020 Segment Results
Flowserve Pump Division: 2020 Segment Results 4th Quarter Full Year Constant Constant ($ millions) 2020 2019 Delta ($) Delta (%) FX(%)* 2020 2019 Delta ($) Delta (%) FX(%)* Bookings $ 566.5 $ 756.0 $ (189.5) -25.1% -26.0% $ 2,358.4 $ 3,007.9 $ (649.5) -21.6% -20.9% Sales $ 695.7 $ 739.5 $ (43.8) -5.
Slide 17: Flowserve Pump Division: 2020 Bookings and Sales
Flowserve Pump Division: 2020 Bookings and Sales 4th Quarter Full Year Constant Constant ($ millions) 2020 2019 Delta (%) 2020 2019 Delta (%) FX(%)* FX(%)* 214 301 -29% -30% 835 1,261 -34% -34% OE 38% 40% (200) bps 35% 42% (700) bps Bookings Mix ** 352 455 -23% -23% 1,523 1,747 -13% -12% AM 62% 60%
Slide 18: Flow Control Division: 2020 Segment Results
Flow Control Division: 2020 Segment Results 4th Quarter Full Year Constant Constant ($ millions) 2020 2019 Delta ($) Delta (%) FX(%)* 2020 2019 Delta ($) Delta (%) FX(%)* Bookings $ 258.4 $ 298.6 $ (40.2) -13.5% -15.1% $ 1,065.8 $ 1,240.9 $ (175.1) -14.1% -13.8% Sales $ 290.7 $ 330.2 $ (39.5) -12.0%
Slide 19: Flow Control Division: 2020 Bookings and Sales
Flow Control Division: 2020 Bookings and Sales 4th Quarter Full Year Constant Constant ($ millions) 2020 2019 Delta (%) 2020 2019 Delta (%) FX(%)* FX(%)* 191 236 -19% -21% 792 955 -17% -17% OE 74% 79% (500) bps 74% 77% (300) bps Bookings Mix ** 67 63 6% 4% 274 286 -4% -4% AM 26% 21% 500 bps 26% 23%
Slide 20: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Twelve Months Ended December 31, 2018 (Amounts in millions, except per share data) As Reported (a) Adjustments As Adjusted Sales $ 3,835.7 $ - $ 3,835.7 Operating income 227.7 (127.5) (1) 355.2 Operating income as a percentage of sales 5.9% 9.3% Other (expense) in
Slide 21: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Organic Revenue Growth $ millions 2018 2019 2020 Reported Revenue $ 3,835.7 $ 3,939.7 $ 3,728.1 Foreign exchange impact 31.0 (94.0) (17.0) Divestiture impact (41.2) (31.0) - Organic Revenue $ 3,845.9 $ 4,064.7 $ 3,745.1 Prior Year Reported Revenue $ 3,660.8 $ 3,83
Slide 22: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Twelve Months Ended December 31, 2019 Twelve Months Ended December 31, 2020 (Amounts in millions, except ROIC) As Reported (a) ROIC Adjustments ROIC Adjusted As Reported (a) ROIC Adjustments ROIC Adjusted Operating income $ 386.6 $ (37.1) (1) $ 423.8 $ 250.3 $ (11
Slide 23: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Twelve Months Ended December 31, 2018 (Amounts in millions, except ROIC) As Reported (a) ROIC Adjustments ROIC Adjusted Operating income $ 227.7 $ (126.2) (1) $ 353.9 Provision for income taxes (46.6) 45.9 (2) (92.4) Net Operating Profit After Taxes $ 181.2 $ (80.
Slide 24: Investor Relations Contacts
Investor Relations Contacts Jay Roueche Mike Mullin 972.443.6560 972.443.6636 jroueche@flowserve.com mmullin@flowserve.com
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