Slide 1: Fourth Quarter 2021 Earnings Conference Call
FOURTH QUARTER 2021 EARNINGS CONFERENCE CALL February 24, 2022 Q4 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: Q4 2021 Highlights
Q4 2021 HIGHLIGHTS • Strong 17.5% YoY bookings growth driven by MRO in our traditional markets • Q4 and full year 2021 aftermarket bookings of $500 million and $2.0 billion – at pre-pandemic levels • Continued working capital improvement drove full-year free cash flow conversion of 108%* • Backlog u
Slide 4: Q4 2021 Overview
Q4 2021 OVERVIEW Bookings • Strong year-over-year bookings Sales • Revenue decreased 6.7% $ millions growth driven by aftermarket $ millions versus prior year $969 and MRO $985 - Higher than expected impact of $945 $953 $912 - Original equipment up 15.9% $898 $919 supply chain, logistics and labor $
Slide 5: Q4 Bookings Mix
Q4 BOOKINGS MIX Original Equipment End-Market Mix End-Market Outlook Oil & Gas Water General Industries Power Chemical Oil & Gas • High utilization rates drive continued momentum in aftermarket $ millions $825M $969M and MRO $469 • Middle East project activity now advancing for 2022 awards $405 $417
Slide 6: Q4 Sales Mix
Q4 SALES MIX Original Equipment Region Mix $ millions $985M $919M $507 $425 $438 51% 49% 48% 37% 39% 2020 Q4 2021 Q3 2021 Q4 North America Europe Asia Pacific 22% 19% Middle East & Africa Aftermarket Latin America $ millions $478 $482 $441 23% 22% 51% 52% 49% 12% 13% 6% 7% 2020 Q4 2021 Q3 2021 Q4 20
Slide 7: Q4 Segment Highlights FPD FCD
Q4 SEGMENT HIGHLIGHTS FPD FCD YoY Bookings Growth 22.4% 7.9% Adjusted Gross Margin* 30.6% 29.6% Adjusted SG&A as % of Sales* 21.7% 18.4% Adjusted Operating Margin* 9.7% 11.2% Book-to-Bill 1.07x 1.02x * See appendix for reconciliation to corresponding GAAP-based measure Q4 2021 EARNINGS CONFERENCE CA
Slide 8: 2022 Guidance Assumptions
2022 GUIDANCE ASSUMPTIONS Guidance Metric 2022 Guidance Revenue Growth Up 7.0% - 9.0% Reported EPS [1] $1.65 - $1.85 Adjusted EPS [2] $1.70 - $1.90 EUR Rate 1.14 Adjusted Tax Rate 20% - 22% Capital Expenditures $70 - $80 million [1] 2022 Reported and Adjusted EPS guidance assumes 131 million diluted
Slide 9: 2021 ESG Highlights
2021 ESG HIGHLIGHTS • ESG Program Aligned with Energy Transition - More than $100M in energy transition bookings in 2021 • Substantially helping our customers reduce their carbon emissions intensity • On track to achieve Flowserve’s 2030 carbon emissions reduction target • Target Zero Safety Program
Slide 10: Diversify, Decarbonize, Digitize Growth Strategy
DIVERSIFY, DECARBONIZE, DIGITIZE GROWTH STRATEGY GROWTH DRIVERS DIVERSIFY DECARBONIZE DIGITIZE Diversify end markets Support our customers Leverage technology and data and create a more today and through the to improve internal operations, balanced portfolio energy transition customer experience, an
Slide 11: Flowserve Growth Strategy in Action
FLOWSERVE GROWTH STRATEGY IN ACTION DIVERSIFY – Seawater DECARBONIZE – Flare Gas DIGITIZE – RedRaven Technology Desalination Recovery Prevents Equipment Failure • Flowserve partnering with • Flowserve selected as sole • RedRaven technology detected Middle East customer to reduce supplier of flare ga
Slide 12: Questions & Answers
Questions & Answers Q4 2021 EARNINGS CONFERENCE CALL 1 2
Slide 13: Appendix
APPENDIX Q4 2021 EARNINGS CONFERENCE CALL 1 3
Slide 14: Q4 2021 Consolidated Financial Results
Q4 2021 CONSOLIDATED FINANCIAL RESULTS 4th Quarter 4th Quarter Adjusted 2021 2021 2020 ($ millions) 2021 2020 Delta ($) Delta (%) Constant Adjusted Adjusted Adjusted Delta ($) Delta (%) Constant FX(%)* Items Results Results FX(%)* Bookings $ 969.1 $ 825.1 $ 144.0 17.5% 18.9% $ - $ 969.1 $ 825.1 $ 14
Slide 15: Full Year 2021 Consolidated Financial Results
FULL YEAR 2021 CONSOLIDATED FINANCIAL RESULTS Full Year Full Year Adjusted 2021 2021 2020 Constant Constant ($ millions) 2021 2020 Delta ($) Delta (%) FX(%)* Adjusted Adjusted Adjusted Delta ($) Delta (%) FX(%)* Items Results Results Bookings $ 3,774.4 $ 3,411.6 $ 362.8 10.6% 8.8% $ - $ 3,774.4 $ 3,
Slide 16: Flowserve Pump Division Q4 & Full Year 2021 Segment Results
FLOWSERVE PUMP DIVISION Q4 & FULL YEAR 2021 SEGMENT RESULTS 4th Quarter Full Year Constant Constant ($ millions) 2021 2020 Delta ($) Delta (%) FX(%)* 2021 2020 Delta ($) Delta (%) FX(%)* Bookings $ 693.5 $ 566.5 $ 127.0 22.4% 24.2% $ 2,675.7 $ 2,358.4 $ 317.3 13.5% 11.6% Sales $ 648.9 $ 695.7 $ (46.
Slide 17: Flowserve Pump Division Q4 & Full Year 2021 Bookings and Sales
FLOWSERVE PUMP DIVISION Q4 & FULL YEAR 2021 BOOKINGS AND SALES 4th Quarter Full Year Constant Constant ($ millions) 2021 2020 Delta (%) 2021 2020 Delta (%) FX(%)* FX(%)* 256 214 20% 22% 964 836 15% 13% OE 37% 38% (100) bps 36% 35% 100 bps Bookings Mix ** 437 352 24% 26% 1,712 1,523 12% 11% AM 63% 62
Slide 18: Flow Control Division Q4 and Full Year 2021 Segment Results
FLOW CONTROL DIVISION Q4 AND FULL YEAR 2021 SEGMENT RESULTS 4th Quarter Full Year Constant Constant ($ millions) 2021 2020 Delta ($) Delta (%) FX(%)* 2021 2020 Delta ($) Delta (%) FX(%)* Bookings $ 278.8 $ 258.4 $ 20.4 7.9% 8.6% $ 1,112.8 $ 1,065.8 $ 47.0 4.4% 2.5% Sales $ 272.8 $ 290.7 $ (17.9) -6.
Slide 19: Flow Control Division Q4 & Full Year 2021 Bookings and Sales
FLOW CONTROL DIVISION Q4 & FULL YEAR 2021 BOOKINGS AND SALES 4th Quarter Full Year Constant Constant ($ millions) 2021 2020 Delta (%) 2021 2020 Delta (%) FX(%)* FX(%)* 214 191 12% 13% 840 792 6% 4% OE 77% 74% 300 bps 76% 74% 200 bps Bookings Mix ** 64 68 -6% -4% 272 274 -1% -2% AM 23% 26% (300) bps
Slide 20: Investor Relations Contacts
Investor Relations Contacts Jay Roueche Mike Mullin 972.443.6560 972.443.6636 jroueche@flowserve.com mmullin@flowserve.com Q4 2021 EARNINGS CONFERENCE CALL 2 0