Slide 1: Fourth Quarter 2019 Earnings Conference Call
Fourth Quarter 2019 Earnings Conference Call February 18, 2020 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: Q4 2019 Overview
Q4 2019 Overview • Q4 2019 Reported and Adjusted EPS of $0.53 and $0.66* • Bookings increased 0.7%, or 1.7% constant currency - Strong constant currency original equipment growth of 5.3% driven by oil and gas and power markets • Revenue increased 8.2%, or 9.3% constant currency driven primarily by c
Slide 4: Q4 Bookings & Sales Mix
Q4 Bookings & Sales Mix End-Markets Bookings Sales Oil & Gas • Coronavirus, geopolitical environment and excess supply $1.05B $1.05B $1.07B $987M potentially slowing project timing • Opportunity remains on downstream regulatory driven initiatives, including upgrades and expansion projects • Global L
Slide 5: Original Equipment / Aftermarket Mix
Original Equipment / Aftermarket Mix Original Equipment Aftermarket Bookings Mix % Sales Mix % Bookings Mix % Sales Mix % $ millions $ millions $ millions $ millions $546 $535 $532 $533 $513 $509 $517 $522 $491 $492 $488 $496 51% 52% 51% 51% 50% 51% 50% 49% 49% 48% 49% 49% 2019 Q4 2019 Q3 2018 Q4 20
Slide 6: Q4 2019 Financial Scorecard
[1] Q4 2019 Financial Scorecard [1] [2] Bookings Revenue Adjusted OI% Adjusted EPS [1] Operating Cash Flow PWC $ millions $ millions $ millions As a % of TTM Revenue $1,068 11.8% 12.0% 11.9% $0.66 $169 $164 $1,052 $1,045 $0.59 28.9% $1,023 $0.58 27.0% 27.0% $997 $987 $95 2019 Q4 2019 Q3 2018 Q4 2019
Slide 7: 2020 Guidance Assumptions
2020 Guidance Assumptions [1] Guidance Assumptions 2020 Guidance Revenue Guidance 3.0% - 5.0% Reported EPS Guidance $2.05 - $2.20 Adjusted EPS Guidance [2] $2.30 - $2.45 EUR Rate 1.12 Adjusted Tax Rate 24% - 26% Capital Expenditures $90 - $100 million [1] 2020 Reported and Adjusted EPS guidance as o
Slide 8: Progress Towards Long-Term Targets
Progress Towards Long-Term Targets [1] 2017 2018 2019 2022 Targets Organic Year-over-Year Revenue Growth [2] (9.1%) 5.0% 6.2% Adjusted Operating Margin [3] 8.8% 9.8% 11.3% Adjusted Free Cash Flow Conversion [4] 140.0% 46.0% 85.0% [5] ROIC 7.6% 10.7% 12.9% Strong progress towards our 2022 financial t
Slide 9: Questions & Answers
Questions & Answers Flowserve Q4 2019 Earnings Conference Call 9
Slide 10: Appendix
Appendix Flowserve Q4 2019 Earnings Conference Call 10
Slide 11: Q4 2019 Consolidated Financial Results
Q4 2019 Consolidated Financial Results 4th Quarter 4th Quarter Adjusted 2019 2019 2018 Constant Constant ($ millions) 2019 2018 Delta ($) Delta (%) Adjusted Adjusted Adjusted Delta ($) Delta (%) FX(%)* FX(%)* Items Results Results Bookings $ 1,052.1 $ 1,045.1 $ 7.0 0.7% 1.7% $ - $ 1,052.1 $ 1,045.1
Slide 12: Full Year 2019 Consolidated Financial Results
Full Year 2019 Consolidated Financial Results Full Year Full Year Adjusted 2019 2019 2018 Constant Constant ($ millions) 2019 2018 Delta ($) Delta (%) FX(%)* Adjusted Adjusted Adjusted Delta ($) Delta (%) FX(%)* Items Results Results Bookings $ 4,238.3 $ 4,019.8 $ 218.5 5.4% 8.1% $ - $ 4,238.3 $ 4,0
Slide 13: Flowserve Pump Division 2019 Segment Results
Flowserve Pump Division 2019 Segment Results 4th Quarter Full Year Constant Constant ($ millions) 2019 2018 Delta ($) Delta (%) FX(%)* 2019 2018 Delta ($) Delta (%) FX(%)* Bookings $ 756.0 $ 728.6 $ 27.4 3.8% 4.9% $ 3,007.9 $ 2,753.5 $ 254.4 9.2% 12.1% Sales $ 739.5 $ 662.5 $ 77.0 11.6% 12.7% $ 2,70
Slide 14: Flowserve Pump Division 2019 Bookings and Sales
Flowserve Pump Division 2019 Bookings and Sales 4th Quarter 2019 Full Year Constant Constant ($ millions) 2019 2018 Delta (%) 2019 2018 Delta (%) FX(%)* FX(%)* 301 267 13% 14% 1,261 1,031 22% 26% OE 40% 37% 300 bps 42% 37% 500 bps Bookings Mix ** 455 462 -2% -1% 1,747 1,722 1% 4% AM 60% 63% (300) bp
Slide 15: Flow Control Division 2019 Segment Results
Flow Control Division 2019 Segment Results 4th Quarter Year-to-Date Constant Constant ($ millions) 2019 2018 Delta ($) Delta (%) FX(%)* 2019 2018 Delta ($) Delta (%) FX(%)* Bookings $ 298.6 $ 318.0 $ (19.4) -6.1% -5.3% $ 1,240.9 $ 1,274.3 $ (33.4) -2.6% -0.4% Sales $ 330.2 $ 325.9 $ 4.3 1.3% 2.2% $
Slide 16: Flow Control Division 2019 Bookings and Sales
Flow Control Division 2019 Bookings and Sales 4th Quarter 2019 Full Year Constant Constant ($ millions) 2019 2018 Delta (%) 2019 2018 Delta (%) FX(%)* FX(%)* 236 247 -4% -4% 955 967 -1% 0% OE 79% 78% 100 bps 77% 76% 100 bps Bookings Mix ** 63 71 -12% -10% 286 307 -7% -2% AM 21% 22% (100) bps 23% 24%
Slide 17: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Twelve Months Ended December 31, 2017 (Amounts in millions, except per share data) As Reported (a) Adjustments As Adjusted Sales $ 3,660.8 $ - $ 3,660.8 Operating income 341.1 19.3 (1) 321.8 Operating income as a percentage of sales 9.3% 8.8% Other (expense) incom
Slide 18: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Organic Revenue Growth $ millions 2017 2018 2019 Reported Revenue $ 3,660.8 $ 3,832.7 $ 3,944.8 Foreign exchange impact 34.0 31.0 (94.0) Divestiture impact (41.2) (31.0) Organic Revenue $ 3,626.8 $ 3,842.9 $ 4,069.8 Prior Year Reported Revenue $ 3,990.5 $ 3,660.8
Slide 19: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2018 Twelve Months Ended December 31, 2019 (Amounts in millions, except ROIC) As Reported (a) ROIC Adjustments ROIC Adjusted As Reported (a) ROIC Adjustments ROIC Adjusted As Reported (a) ROIC
Slide 20: Investor Relations Contacts
Investor Relations Contacts Jay Roueche Mike Mullin 972.443.6560 972.443.6636 jroueche@flowserve.com mmullin@flowserve.com Flowserve Q4 2019 Earnings Conference Call 20