Slide 1: First Quarter 2021 Earnings Conference Call
FIRST QUARTER 2021 EARNINGS CONFERENCE CALL May 4, 2021 Q1 2021 EARNINGS CONFERENCE CALL 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: Q1 2021 Highlights
Q1 2021 HIGHLIGHTS • Strong sequential bookings growth of 14.5% driven by increased aftermarket and MRO activity • Improved our full-year 2021 bookings growth outlook on earlier than expected return of customer spending • Continued transformation progress drove 250 basis point adjusted operating mar
Slide 4: Q1 2021 Overview
Q1 2021 OVERVIEW Bookings • Strong sequential bookings Sales • Increased 2021 revenue $ millions growth of 14.5% on improved $ millions guidance to down 3% - 5% from $977 early cycle aftermarket and prior guide of down 4% - 7% on $945 MRO activity $985 improved market outlook $925 $924 $808 $806 $82
Slide 5: Supporting Customers During the Freeze
SUPPORTING CUSTOMERS DURING THE FREEZE February's winter storm paralyzed the petrochemical and refining industry operations in the U.S. Gulf Coast • Impacting more than 80% of US oil refinery capacity • Idling nearly a quarter of the national refining capacity • Flowserve responded to our customer’s
Slide 6: Q1 Bookings Mix
Q1 BOOKINGS MIX Original Equipment End-Market Mix End-Market Outlook Water General Industries Power Chemical Oil & Gas $ millions $977M $945M Oil & Gas $475 $488 • Mobility continues to increase as vaccinations drive $405 COVID cases down in North America and parts of Europe 51% 49% 52% 31% • Asia P
Slide 7: Q1 Sales Mix
Q1 SALES MIX Original Equipment Region Mix $ millions $895M $857M $507 $452 $407 51% 51% 47% 37% 44% 2020 Q1 2020 Q4 2021 Q1 North America Europe Asia Pacific 21% Middle East & Africa Aftermarket 18% Latin America $ millions $478 $442 $450 19% 24% 53% 49% 49% 14% 13% 2020 Q1 2020 Q4 2021 Q1 5% 5% 20
Slide 8: First Quarter Segment Highlights FPD FCD
FIRST QUARTER SEGMENT HIGHLIGHTS FPD FCD Sequential Bookings Growth 15.4% 13.8% Adjusted Gross Margin* 31.7% 60 bps 29.5% 170 bps Adjusted SG&A as % of Sales* 22.0% 160 bps 19.2% 220 bps Adjusted Operating Margin* 10.3% 230 bps 10.4% 60 bps Book-to-Bill 1.08x 1.15x Adjusted Margins and SG&A as compa
Slide 9: 2021 Guidance Assumptions
2021 GUIDANCE ASSUMPTIONS Guidance 2021 Revised 2021 Prior Assumptions Guidance Guidance Revenue Guidance Down 3.0% - 5.0% Down 4.0% - 7.0% [1] Reported EPS Guidance $1.15 - $1.40 $1.15 - $1.40 [2] Adjusted EPS Guidance $1.40 - $1.60 $1.30 - $1.55 EUR Rate 1.20 1.20 Adjusted Tax Rate 22% - 24% 22% -
Slide 10: Driving Energy Transition via Multiple Paths
DRIVING ENERGY TRANSITION VIA MULTIPLE PATHS Energy Efficiency Clean / Renewable Greenhouse Gas Decarbonization Sustainability Energy Emissions Reduction Energy Transition Objectives Supported By Flowserve CO2 Flowserve Capabilities Energy recovery devices | Carbon Capture & Hydrogen Economy | Coal
Slide 11: Energy Transition – Carbon Capture and Greenhouse Gas Emission Reduction
ENERGY TRANSITION – CARBON CAPTURE AND GREENHOUSE GAS EMISSION REDUCTION • Flowserve’s SIHI liquid ring compressor Refinery Flare Gas Recovery System introduced in 2020 supports customers’ greenhouse gas emission reduction targets • Flare gas/vapor recovery and carbon capture are among its many capa
Slide 12: 2021 Outlook and Strategic Focus
2021 OUTLOOK AND STRATEGIC FOCUS • Steady progress toward carbon intensity reduction target of 40% by 2030 • Continued global community support through FlowserveCares ESG • Potential for significant environmental contributions through energy transition technology and solutions • Positioned to outper
Slide 13: Questions & Answers
Questions & Answers Q1 2021 EARNINGS CONFERENCE CALL 1 3
Slide 14: Appendix
APPENDIX Q1 2021 EARNINGS CONFERENCE CALL 1 4
Slide 15: Q1 2021 Consolidated Financial Results
Q1 2021 CONSOLIDATED FINANCIAL RESULTS 1st Quarter 1st Quarter Adjusted 2021 2021 2020 Constant Constant ($ millions) 2021 2020 Delta ($) Delta (%) FX(%)* Adjusted Adjusted Adjusted Delta ($) Delta (%) FX(%)* Items Results Results Bookings $ 945.0 $ 976.9 $ (31.9) -3.3% -6.0% $ - $ 945.0 $ 976.9 $ (
Slide 16: Flowserve Pump Division Q1 2021 Segment Results
FLOWSERVE PUMP DIVISION Q1 2021 SEGMENT RESULTS 1st Quarter Constant ($ millions) 2021 2020 Delta ($) Delta (%) FX(%)* Bookings $ 653.8 $ 685.1 $ (31.3) -4.6% -7.2% Sales $ 602.6 $ 635.7 $ (33.1) -5.2% -8.1% Gross Profit $ 182.9 $ 195.8 $ (12.9) -6.6% Gross Margin (%) 30.4% 30.8% (40) bps SG&A $ 132
Slide 17: Flowserve Pump Division Q1 2021 Bookings and Sales
FLOWSERVE PUMP DIVISION Q1 2021 BOOKINGS AND SALES 1st Quarter Constant ($ millions) 2021 2020 Delta (%) FX(%)* 264 259 2% -1% OE 40% 38% 200 bps Bookings Mix ** 390 426 -9% -11% AM 60% 62% (200) bps 215 253 -15% -18% OE 36% 40% (400) bps Sales Mix ** 388 383 1% 0% AM 64% 60% 400 bps * Constant FX r
Slide 18: Flow Control Division Q1 2021 Segment Results
FLOW CONTROL DIVISION Q1 2021 SEGMENT RESULTS 1st Quarter Constant ($ millions) 2021 2020 Delta ($) Delta (%) FX(%)* Bookings $ 294.0 $ 296.3 $ (2.3) -0.8% -3.6% Sales $ 255.8 $ 259.4 $ (3.6) -1.4% -4.6% Gross Profit $ 74.6 $ 74.8 $ (0.2) -0.3% Gross Margin (%) 29.2% 28.8% 40 bps SG&A $ 49.9 $ 57.7
Slide 19: Flow Control Division Q1 2021 Bookings and Sales
FLOW CONTROL DIVISION Q1 2021 BOOKINGS AND SALES 1st Quarter Constant ($ millions) 2021 2020 Delta (%) FX(%)* 225 218 3% 0% OE 77% 74% 300 bps Bookings Mix ** 69 79 -12% -15% AM 23% 26% (300) bps 193 199 -3% -5% OE 76% 77% (100) bps Sales Mix ** 63 60 5% 5% AM 24% 23% 100 bps * Constant FX represent
Slide 20: Investor Relations Contacts
Investor Relations Contacts Jay Roueche Mike Mullin 972.443.6560 972.443.6636 jroueche@flowserve.com mmullin@flowserve.com Q1 2021 EARNINGS CONFERENCE CALL 2 0