Slide 1: Third Quarter 2019 Earnings Conference Call
Third Quarter 2019 Earnings Conference Call October 31, 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: Q3 2019 Overview
Q3 2019 Overview • Q3 2019 Reported and Adjusted EPS of $0.52 and $0.59* • Bookings increased 1.3%, or 3.5% constant currency - Strong original equipment growth of 5.6% driven by power, chemical and water markets • Revenue increased 4.6%, or 6.9% constant currency driven primarily by conversion of s
Slide 4: Q3 Bookings & Sales Mix
Q3 Bookings & Sales Mix End-Markets Bookings Sales Oil & Gas • Downstream upgrade and expansion opportunities continue with $1.02B $1.01B $997M $953M demand growth and regulatory initiatives • Dynamic geopolitical environment dampening global spending and slowing project timing • Global LNG projects
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 $597 $509 $493 $496 $498 $508 $507 $488 $492 $532 $457 $504 54% 52% 52% 50% 51% 50% 50% 49% 50% 48% 48% 46% 2019 Q3 2019 Q2 2018 Q3 20
Slide 6: Q3 2019 Financial Scorecard
[1] Q3 2019 Financial Scorecard [1] [2] Bookings Revenue Adjusted OI% Adjusted EPS [1] Operating Cash Flow PWC $ millions $ millions $0.59 $ millions As a % of TTM Revenue $1,105 12.0% $997 $990 11.3% $0.54 $95 11.0% $953 $0.49 $83 28.9% 28.5% 28.9% $1,023 $1,010 $11 2019 Q3 2019 Q2 2018 Q3 2019 Q3
Slide 7: 2019 Guidance Assumptions
2019 Guidance Assumptions [1] Guidance Assumptions Prior Guidance 2019 Guidance [2] Revenue Guidance 4% - 5% 2.5% - 3.5% Reported EPS Guidance $1.75 - $1.90 $1.85 - $1.90 [3] Adjusted EPS Guidance $2.05 - $2.20 $2.15 - $2.20 EUR Rate 1.12 1.11 Adjusted Tax Rate 26% - 28% 25% - 27% Capital Expenditur
Slide 8: Questions & Answers
Questions & Answers Flowserve Q3 2019 Earnings Conference Call 8
Slide 9: Appendix
Appendix Flowserve Q3 2019 Earnings Conference Call 9
Slide 10: Q3 2019 Consolidated Financial Results
Q3 2019 Consolidated Financial Results 3rd Quarter 3rd Quarter Adjusted 2019 2019 2018 Constant Constant ($ millions) 2019 2018 Delta ($) Delta (%) FX(%)* Adjusted Adjusted Adjusted Delta ($) Delta (%) FX(%)* Items Results Results Bookings $ 1,023.4 $ 1,010.4 $ 13.0 1.3% 3.5% $ - $ 1,023.4 $ 1,010.4
Slide 11: Year-to-Date 2019 Consolidated Financial Results
Year-to-Date 2019 Consolidated Financial Results Year-to-Date Year-to-Date Adjusted 2019 2019 2018 Constant Constant ($ millions) 2019 2018 Delta ($) Delta (%) FX(%)* Adjusted Adjusted Adjusted Delta ($) Delta (%) FX(%)* Items Results Results Bookings $ 3,188.4 $ 2,974.5 $ 213.9 7.2% 10.5% $ - $ 3,1
Slide 12: Flowserve Pump Division Q3 2019 Segment Results
Flowserve Pump Division Q3 2019 Segment Results 3rd Quarter Year-to-Date Constant Constant ($ millions) 2019 2018 Delta ($) Delta (%) FX(%)* 2019 2018 Delta ($) Delta (%) FX(%)* Bookings $ 742.1 $ 698.4 $ 43.7 6.3% 8.7% $ 2,253.5 $ 2,023.2 $ 230.3 11.4% 14.9% Sales $ 682.7 $ 648.0 $ 34.7 5.4% 7.7% $
Slide 13: Flowserve Pump Division Q3 2019 Bookings and Sales
Flowserve Pump Division Q3 2019 Bookings and Sales 3rd Quarter 2019 Year-to-Date Constant Constant ($ millions) 2019 2018 Delta (%) 2019 2018 Delta (%) FX(%)* FX(%)* 322 265 22% 25% 962 763 26% 31% OE 43% 38% 500 bps 43% 38% 500 bps Bookings Mix ** 420 433 -3% -1% 1,291 1,260 2% 5% AM 57% 62% (500)
Slide 14: Flow Control Division Q3 2019 Segment Results
Flow Control Division Q3 2019 Segment Results 3rd Quarter Year-to-Date Constant Constant ($ millions) 2019 2018 Delta ($) Delta (%) FX(%)* 2019 2018 Delta ($) Delta (%) FX(%)* Bookings $ 282.7 $ 314.2 $ (31.5) -10.0% -8.3% $ 942.8 $ 957.9 $ (15.1) -1.6% 1.2% Sales $ 314.8 $ 306.2 $ 8.6 2.8% 4.9% $ 9
Slide 15: Flow Control Division Q3 2019 Bookings and Sales
Flow Control Division Q3 2019 Bookings and Sales 3rd Quarter 2019 Year-to-Date Constant Constant ($ millions) 2019 2018 Delta (%) 2019 2018 Delta (%) FX(%)* FX(%)* 210 240 -12% -11% 720 722 - 1% OE 74% 76% (200) bps 76% 75% 100 bps Bookings Mix ** 72 74 -2% 2% 223 236 -6% - AM 26% 24% 200 bps 24% 25
Slide 16: Investor Relations Contacts
Investor Relations Contacts Jay Roueche Mike Mullin 972.443.6560 972.443.6636 jroueche@flowserve.com mmullin@flowserve.com Flowserve Q3 2019 Earnings Conference Call 16