Flowserve Corporation · NYSE:FLS
Flowserve — BAML Industrials Conference 2019
14 slides from Flowserve's conference presentation, May 14, 2019
Slide 1: BAML Industrials Conference
BAML Industrials Conference Boston May 14, 2019
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 of flow control expertise with a heritage of more than 225 Overview Company years Diversified business model – geographies, end markets and products Recovering end markets, evidenced by year-over-year increased bookings Markets End Significant installed ba
Slide 4: Diversified Business Model
Diversified Business Model ~60% of Business Outside North America Balanced Platform 6% 20% 20% 13% 2018 49% 2018 Sales Europe Sales 20% North America Industrial Pumps Asia Pacific 31% 41% Middle East & Africa Valves and Actuation Latin America Engineered Pumps & Seals Attractive End Markets Powerful
Slide 5: Market Outlook
Market Outlook OIL & GAS CHEMICAL GENERAL INDUSTRY POWER GENERATION WATER 2019 BAML Industrials Conference 5
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: The Power of a Pure-Play
The Power of a Pure-Play Isolation Control Atmospheric Isomerization Valve Valve Distillation Hydrotreater Vacuum Distillation Catalytic Hydrocracker Reformer EXAMPLE: Vapor Recovery Delayed Alkylation System Coking Typical 400K Barrel/day Refinery Liquid Ring Pump Compressor and and Seals Seals 201
Slide 8: Flowserve 2.0: Transforming the Organization
Flowserve 2.0: Transforming the Organization Legacy Flowserve Flowserve 2.0 The operating model worked well during the last period of expansion: • Flexible organization for any market environment • Decentralized operations • Empowered local organizations • Globalized operations • Responsive to a wid
Slide 9: The Transformation Journey
The Transformation Journey 2017 2018 2019 2020 2021 2022 STABILIZE TRANSFORM – FLOWSERVE 2.0 PLAN GROWTH AFTERMARKET COMMERCIAL COST STRUCTURE OPERATIONS WORKING CAPITAL MEASURE OPTIMIZE 2019 BAML Industrials Conference 9
Slide 10: Creating Long-Term Sustainable Shareholder Value
Creating Long-Term Sustainable Shareholder Value* Operating System Revenue Growth Free Cash Flow • Constructing Flowserve 2.0 operating model +2% 100%+ above industry grow th rate of Net Incom e • Developing a flexible cost structure for any Operating Margin ROIC environment 15-17% 15-20% • Creating
Slide 11: Investor Relations Contacts
Investor Relations Contacts Jay Roueche Mike Mullin 972.443.6560 972.443.6636 jroueche@flowserve.com mmullin@flowserve.com 2019 BAML Industrials Conference
Slide 12: Appendix
Appendix 2019 BAML Industrials Conference
Slide 13: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (Unaudited) Twelve Months Ended December 31, 2017 TrailingTwelve Months Ended December 31, 2018 (Amounts in millions, except per share data) As Reported (a) Adjustments As Adjusted As Reported (a) Adjustments As Adjusted Sales $ 3,660.8 $ - $ 3,660.8 $ 3,823.7 $ -
Slide 14: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (Unaudited) Twelve Months Ended December 31, 2015 Twelve Months Ended December 31, 2016 (Amounts in millions, except per share data) As Reported (a) Adjustments As Adjusted As Reported (a) Adjustments As Adjusted Sales $ 4,557.8 $ - $ 4,557.8 $ 3,990.5 $ - $ 3,990