Slide 1: First Quarter 2020 Earnings Conference Call
May 8, 2020 First 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: Flowserve COVID-19 Crisis Management Framework
Flowserve COVID-19 Crisis Management Framework Protecting Our Employees and Customers While Positioning for the Future COVID-19 crisis management Safety of our people,Safety of our associate their families, people, their families, wellness, associate regulation wellness, compliance regulation compli
Slide 4: COVID-19 Impact on Operations
COVID-19 Impact on Operations NAM • Current Status • 22 Sites Impacted* • 3,149 People Impacted EMA • Current Status APAC • 23 Sites Impacted* • Current Status • 1,463 People Impacted • 33 Sites Impacted* • 2,644 People Impacted LAM • Current Status • 13 Sites Impacted* • 1,359 People Impacted Opera
Slide 5: Q1 2020 Overview
Q1 2020 Overview • Q1 2020 Reported and Adjusted EPS of $0.00 and $0.21* • Bookings decreased 8.4%, or 6.6% constant currency - Aftermarket bookings of $502 million increased 0.3% constant currency • Revenue increased 0.5%, or 2.2% constant currency - Original equipment revenue of $452 million incre
Slide 6: Q1 Bookings & Sales Mix
Q1 Bookings & Sales Mix Bookings Sales $977M $1.07B $895M $890M 40% 42% 43% 44% North America Oil & Gas Europe Chemical 20% Asia-Pac Power 21% 18% 22% Middle East & Africa General Industries 11% 11% Latin America Water 19% 19% 26% 23% 14% 11% 3% 3% 5% 5% 2020 2019 2020 2019 Flowserve Q1 2020 Earning
Slide 7: Market Outlook
Market Outlook FLOWSERVE FLOWSERVE SALES MIX END-MARKET MIX • Utilization down significantly with a handful of temporary closures • CAPEX reductions and delayed spending Oil & Gas • Maintenance and reliability spending continues but COVID-19 impacting timing Downstream ~25-30% • Deep CAPEX reduction
Slide 8: Strong Liquidity and Cash Flow Generation
Strong Liquidity and Cash Flow Generation Historical Liquidity • $1.3 billion of liquidity as of March 31, 2020 $1,348 $1,382 $1,343 - Includes $622 million of cash and cash equivalents and $721 million $1,133 of available revolving credit facility $921 ($ millions) • $1.4 billion of debt primarily
Slide 9: Original Equipment / Aftermarket Mix
Original Equipment / Aftermarket Mix Original Equipment Aftermarket Bookings Mix % Sales Mix % Bookings Mix % Sales Mix % $ millions $556 $ millions $ millions $ millions $546 $535 $517 $522 $511 $502 $475 $470 $452 $442 $420 53% 51% 52% 51% 51% 49% 51% 49% 48% 49% 49% 47% 2020 Q1 2019 Q4 2019 Q1 20
Slide 10: Q1 2020 Financial Scorecard
[1] Q1 2020 Financial Scorecard [1] [2] Bookings Revenue Adjusted OI% Adjusted EPS [1] Operating Cash Flow PWC $ millions $ millions $ millions As a % of TTM Revenue $1,052 $1,067 $1,068 11.8% $0.66 $169 28.4% $977 9.9% 27.0% 26.4% $895 $890 $0.41 5.9% $0.21 $47 $39 2020 Q1 2019 Q4 2019 Q1 2020 Q1 2
Slide 11: Protecting Our Employees and Customers While Positioning for the Future
Protecting Our Employees and Customers While Positioning for the Future • Protecting the health and safety of our workforce, customers and suppliers • Converting our strong $2.2 billion backlog and providing support to maintain customers’ existing infrastructure • Aggressive $100 million cost reduct
Slide 12: Questions & Answers
Questions & Answers Flowserve Q1 2020 Earnings Conference Call 12
Slide 13: Appendix
Appendix Flowserve Q1 2020 Earnings Conference Call 13
Slide 14: Q1 2020 Consolidated Financial Results
Q1 2020 Consolidated Financial Results 1st Quarter 1st Quarter Adjusted 2020 2020 2019 Constant Constant ($ millions) 2020 2019 Delta ($) Delta (%) Adjusted Adjusted Adjusted Delta ($) Delta (%) FX(%)* FX(%)* Items Results Results Bookings $ 976.9 $ 1,066.8 $ (89.9) -8.4% -6.6% $ - $ 976.9 $ 1,066.8
Slide 15: Flowserve Pump Division 2020 Segment Results
Flowserve Pump Division 2020 Segment Results 1st Quarter Constant ($ millions) 2020 2019 Delta ($) Delta (%) FX(%)* Bookings $ 685.1 $ 750.2 $ (65.1) -8.7% -6.7% Sales $ 635.7 $ 609.4 $ 26.3 4.3% 6.2% Gross Profit $ 195.8 $ 200.6 $ (4.8) -2.4% Gross Margin (%) 30.8% 32.9% (210) bps SG&A $ 159.2 $ 12
Slide 16: Flowserve Pump Division 2020 Bookings and Sales
Flowserve Pump Division 2020 Bookings and Sales 1st Quarter Constant ($ millions) 2020 2019 Delta (%) FX(%)* 259 318 -18% -17% OE 38% 42% (400) bps Bookings Mix ** 426 433 -2% 1% AM 62% 58% 400 bps 253 206 23% 25% OE 40% 34% 600 bps Sales Mix ** 383 403 -5% -3% AM 60% 66% (600) bps * Constant FX rep
Slide 17: Flow Control Division 2020 Segment Results
Flow Control Division 2020 Segment Results 1st Quarter Constant ($ millions) 2020 2019 Delta ($) Delta (%) FX(%)* Bookings $ 296.3 $ 319.8 $ (23.5) -7.3% -5.8% Sales $ 260.3 $ 282.1 $ (21.8) -7.7% -6.4% Gross Profit $ 74.4 $ 97.7 $ (23.3) -23.8% Gross Margin (%) 28.6% 34.6% (600) bps SG&A $ 57.7 $ 5
Slide 18: Flow Control Division 2020 Bookings and Sales
Flow Control Division 2020 Bookings and Sales 1st Quarter Constant ($ millions) 2020 2019 Delta (%) FX(%)* 218 240 -9% -8% OE 74% 75% (100) bps Bookings Mix ** 79 80 -1% - AM 26% 25% 100 bps 200 215 -7% -6% OE 77% 76% 100 bps Sales Mix ** 60 67 -11% -10% AM 23% 24% (100) bps * Constant FX represents
Slide 19: Investor Relations Contacts
Investor Relations Contacts Jay Roueche Mike Mullin 972.443.6560 972.443.6636 jroueche@flowserve.com mmullin@flowserve.com Flowserve Q1 2020 Earnings Conference Call 19