Slide 1: First Quarter 2019 Earnings Conference Call
First Quarter 2019 Earnings Conference Call May 3, 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: Q1 2019 Overview
Q1 2019 Overview • Q1 2019 Reported and Adjusted EPS* of $0.44 and $0.41 • Bookings increased 14.9%, or 19.3% constant currency - Strong original equipment growth of 24.5% driven by 45% increase in oil and gas - Aftermarket bookings increased 5.8%, or 10.4% constant currency • Revenue decreased 3.3.
Slide 4: Q1 Bookings & Sales Mix
Q1 Bookings & Sales Mix End-Markets Bookings Sales Oil & Gas • Downstream brownfield activity and MRO spending driven by $1.07B $929M $890M $920M increased clean fuels demand and increased focus on maintenance and efficiency • North American pipeline and upstream opportunities continue • Increased g
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 $556 $533 $495 $511 $496 $513 $465 $482 $470 $455 $420 $447 50% 50% 52% 51% 52% 53% 49% 47% 48% 50% 50% 48% 2019 Q1 2018 Q4 2018 Q1 20
Slide 6: Q1 2019 Financial Scorecard
[1] Q1 2019 Financial Scorecard [1] [2] Bookings Revenue Adjusted OI% Adjusted EPS [1] Oper. Cash Flow PWC $ millions $ millions $ millions As a % of TTM Revenue 11.9% $0.58 $987 32.0% $1,067 $164 $1,045 $920 9.9% $890 28.4% $0.41 27.0% $929 $39 $0.27 6.8% 2018 Q1 2019 Q1 2018 Q4 2018 Q1 ($121) 2019
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 - $100 million [1] 2019 Reported and Adjusted EPS guidance as o
Slide 8: Questions & Answers
Questions & Answers Flowserve Q1 2019 Earnings Conference Call 8
Slide 9: Appendix
Appendix Flowserve Q1 2019 Earnings Conference Call 9
Slide 10: Q1 2019 Consolidated Financial Results
Q1 2019 Consolidated Financial Results 1st Quarter 1st Quarter Adjusted 2019 2019 2018 Constant Constant ($ millions) 2019 2018 Delta ($) Delta (%) FX(%)* Adjusted Adjusted Adjusted Delta ($) Delta (%) FX(%)* Items Results Results Bookings $ 1,066.8 $ 928.5 $ 138.3 14.9% 19.3% $ - $ 1,066.8 $ 928.5
Slide 11: Flowserve Pump Division Q1 2019 Segment Results
Flowserve Pump Division Q1 2019 Segment Results 1st Quarter Constant ($ millions) 2019 2018 Delta ($) Delta (%) FX(%)* Bookings $ 750.2 $ 604.2 $ 146.0 24.2% 29.0% Sales $ 609.4 $ 644.4 $ (35.0) -5.4% -1.8% Gross Profit $ 200.6 $ 183.3 $ 17.3 9.4% Gross Margin (%) 32.9% 28.4% 450 bps SG&A $ 122.4 $
Slide 12: Flowserve Pump Division Q1 2019 Bookings and Sales
Flowserve Pump Division Q1 2019 Bookings and Sales 1st Quarter 2019 Constant ($ millions) 2019 2018 Delta (%) FX(%)* 318 204 56% 62% OE 42% 34% Bookings Mix ** 433 400 8% 12% AM 58% 66% 206 254 -19% -15% OE 34% 39% Sales Mix ** 403 390 3% 7% AM 66% 61% * Constant FX represents the year over year var
Slide 13: Flow Control Division Q1 2019 Segment Results
Flow Control Division Q1 2019 Segment Results 1st Quarter Constant ($ millions) 2019 2018 Delta ($) Delta (%) FX(%)* Bookings $ 319.8 $ 327.3 $ (7.5) -2.3% 1.0% Sales $ 282.1 $ 277.2 $ 4.9 1.8% 5.3% Gross Profit $ 97.7 $ 88.2 $ 9.5 10.8% Gross Margin (%) 34.6% 31.8% 280 bps SG&A $ 53.3 $ 54.3 $ (1.0
Slide 14: Flow Control Division Q1 2018 Bookings and Sales
Flow Control Division Q1 2018 Bookings and Sales 1st Quarter 2019 Constant ($ millions) 2019 2018 Delta (%) FX(%)* 240 244 -1% 1% OE 75% 74% Bookings Mix ** 80 84 -5% 2% AM 25% 26% 214 212 1% 2% OE 76% 76% Sales Mix ** 67 66 1% 11% AM 24% 24% * Constant FX represents the year over year variance assu
Slide 15: Investor Relations Contacts
Investor Relations Contacts Jay Roueche Mike Mullin 972.443.6560 972.443.6636 jroueche@flowserve.com mmullin@flowserve.com Flowserve Q1 2019 Earnings Conference Call 15