Slide 1: Fourth Quarter 2018 Earnings Conference Call
Fourth Quarter 2018 Earnings Conference Call February 21, 2019 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 2018 Overview
Q4 2018 Overview • Q4 2018 Reported and Adjusted EPS* of $0.48 and $0.58 - Adjusted EPS* excludes approximately $27 million of pre-tax items • Bookings increased 6.1%, or 8.8% constant currency - Strong aftermarket growth of 14.9% - Mid-teens percentage increases in oil and gas and general industrie
Slide 4: Q4 Bookings & Sales Mix
Q4 Bookings & Sales Mix End-Markets Bookings Sales • Oil & Gas • Increased focus on maintenance and efficiency driving strong $1.05B $985M $987M $1.03B global MRO spend • Downstream brownfield projects continue on increased clean fuels demand where Flowserve’s product mix is favorable • Flowserve co
Slide 5: Q4 Original Equipment / Aftermarket Mix
Q4 Original Equipment / Aftermarket Mix Original Equipment Aftermarket Bookings Mix % Sales Mix % Bookings Mix % Sales Mix % $ millions $ millions $ millions $ millions $537 $521 $533 $513 $495 $496 $502 $504 $507 $496 $464 $457 53% 52% 52% 50% 50% 51% 50% 49% 50% 47% 48% 48% 2018 Q4 2018 Q3 2017 Q4
Slide 6: Q4 2018 Financial Scorecard
[1] Q4 2018 Financial Scorecard [1] [2] Bookings Revenue Adjusted OI% Adjusted EPS [1] Oper. Cash Flow PWC $ millions $ millions $ millions $239 As a % of TTM Revenue $1,045 $1,034 11.9% $1,010 $0.58 11.0% 28.9% $985 $987 $953 10.2% 27.9% $164 $0.50 27.0% $0.49 $83 2018 Q4 2018 Q3 2017 Q4 2018 Q4 20
Slide 7: 2019 Guidance Assumptions
2019 Guidance Assumptions [1] Guidance Assumptions 2019 Guidance [2] Revenue Guidance 4% - 6% Reported EPS Guidance $1.60 - $1.80 [3] Adjusted EPS Guidance $1.95 - $2.15 EUR Rate 1.16 Adjusted Tax Rate 26% - 28% Capital Expenditures $90 - $100 million [1] 2019 Reported and Adjusted EPS guidance as o
Slide 8: Flowserve 2.0 Transformation Driving Towards 2022 Financial Targets
Flowserve 2.0 Transformation Driving Towards 2022 Financial Targets * Operations Growth Commercial Organizational Health Cost Aftermarket Structure Working Capital * As presented at Flowserve’s December 13, 2018 Analyst Day Flowserve Q4 2018 Earnings Conference Call 8
Slide 9: Questions & Answers
Questions & Answers Flowserve Q4 2018 Earnings Conference Call 9
Slide 10: Appendix
Appendix Flowserve Q4 2018 Earnings Conference Call 10
Slide 11: Q4 2018 Consolidated Financial Results
Q4 2018 Consolidated Financial Results 4th Quarter 4th Quarter Adjusted 2018 2018 2017 Constant Constant ($ millions) 2018 2017 Delta ($) Delta (%) FX(%)* Adjusted Adjusted Adjusted Delta ($) Delta (%) FX(%)* Items Results Results Bookings $ 1,045.1 $ 984.6 $ 60.5 6.1% 8.8% $ - $ 1,045.1 $ 984.6 $ 6
Slide 12: Year-to-Date 2018 Consolidated Financial Results
Year-to-Date 2018 Consolidated Financial Results Year-to-Date Year-to-Date Adjusted 2018 2018 2017 Constant Constant ($ millions) 2018 2017 Delta ($) Delta (%) FX(%)* Adjusted Adjusted Adjusted Delta ($) Delta (%) FX(%)* Items Results Results Bookings $ 4,019.8 $ 3,803.9 $ 215.9 5.7% 4.9% $ 4,019.8
Slide 13: Engineered Product Division Q4 & Year-to-Date 2018 Segment Results
Engineered Product Division Q4 & Year-to-Date 2018 Segment Results 4th Quarter Year-to-Date Constant Constant ($ millions) 2018 2017 Delta ($) Delta (%) FX(%)* 2018 2017 Delta ($) Delta (%) FX(%)* Bookings $ 545.0 $ 485.5 $ 59.5 12.3% 15.3% $ 1,995.1 $ 1,842.1 $ 153.0 8.3% 7.9% Sales $ 484.6 $ 498.9
Slide 14: Engineered Product Division Q4 2018 Bookings and Sales
Engineered Product Division Q4 2018 Bookings and Sales 4th Quarter Year-to-Date Constant Constant ($ millions) 2018 2017 Delta (%) 2018 2017 Delta (%) FX(%)* FX(%)* $ 144 $ 153 -6% -2% $ 546 $ 554 -1% -2% OE 26% 31% (500) bps 27% 30% (300) bps Bookings Mix ** $ 401 $ 333 20% 23% $ 1,449 $ 1,288 12%
Slide 15: Industrial Product Division Q4 & Year-to-Date 2018 Segment Results
Industrial Product Division Q4 & Year-to-Date 2018 Segment Results 4th Quarter Year-to-Date Constant Constant ($ millions) 2018 2017 Delta ($) Delta (%) FX(%)* 2018 2017 Delta ($) Delta (%) FX(%)* Bookings $ 203.2 $ 205.8 $ (2.6) -1.3% 1.0% $ 838.5 $ 821.7 $ 16.8 2.0% 0.5% Sales $ 196.4 $ 215.3 $ (1
Slide 16: Industrial Product Division Q4 2018 Bookings and Sales
Industrial Product Division Q4 2018 Bookings and Sales Constant Constant ($ millions) 2018 2017 Delta (%) 2018 2017 Delta (%) FX(%)* FX(%)* $ 132 $ 127 4% 6% $ 522 $ 514 2% 0% OE 65% 62% 300 bps 62% 63% (100) bps Bookings Mix ** $ 72 $ 79 -10% -8% $ 316 $ 308 3% 1% AM 35% 38% (300) bps 38% 37% 100 b
Slide 17: Flow Control Division Q4 & Year-to-Date 2018 Segment Results
Flow Control Division Q4 & Year-to-Date 2018 Segment Results 4th Quarter Year-to-Date Constant Constant ($ millions) 2018 2017 Delta ($) Delta (%) FX(%)* 2018 2017 Delta ($) Delta (%) FX(%)* Bookings $ 318.0 $ 314.1 $ 3.9 1.2% 3.5% $ 1,274.3 $ 1,225.7 $ 48.6 4.0% 3.0% Sales $ 325.9 $ 344.6 $ (18.7)
Slide 18: Flow Control Division Q4 2018 Bookings and Sales
Flow Control Division Q4 2018 Bookings and Sales 4th Quarter Year-to-Date Constant Constant ($ millions) 2018 2017 Delta (%) 2018 2017 Delta (%) FX(%)* FX(%)* $ 247 $ 252 -2% -1% $ 967 $ 945 2% -1% OE 78% 80% (200) bps 76% 77% (100) bps Bookings Mix ** $ 71 $ 62 15% 21% $ 307 $ 280 10% 16% AM 22% 20
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 Q4 2018 Earnings Conference Call 19