Slide 1: First Quarter 2018 Earnings Conference Call
First Quarter 2018 Earnings Conference Call May 11, 2018 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 2018 Overview
Q1 2018 Overview • Q1 2018 Reported and Adjusted Earnings per share of $0.12 and $0.27 - Adjusted EPS* excludes approximately $25 million consisting primarily of realignment and below-the-line foreign exchange expenses • Bookings decreased 3.1%, including approximately 2.5% headwind from 2017 busine
Slide 4: Q1 Bookings & Sales Mix
Q1 Bookings & Sales Mix Bookings Sales End-Markets $929M $958M $920M $866M • Oil & Gas • MRO spending outlook improved on expected increased refinery maintenance and efficiency upgrades • North America LNG activity increasing 34% 41% 42% 40% • International upstream projects remain challenged Oil &
Slide 5: Q1 Original Equipment / Aftermarket Mix
Q1 Original Equipment / Aftermarket Mix Original Equipment Aftermarket Bookings Mix % Sales Mix % Bookings Mix % Sales Mix % $ millions $ millions $ millions $ millions $521 $537 $502 $501 $482 $464 $457 $455 $465 $410 $447 $457 53% 52% 50% 52% 50% 52% 48% 48% 48% 53% 47% 47% 2018 Q1 2017 Q4 2017 Q1
Slide 6: Q1 2018 Financial Scorecard
[1] Q1 2018 Financial Scorecard [2] Bookings Revenue Adjusted OI% Adjusted EPS Oper. Cash Flow PWC $ millions $ millions $ millions As a % of TTM Revenue $239 $1,034 9.8% $0.50 32.0% $985 $958 29.5% 7.1% 27.9% $929 $920 6.8% $866 $0.27 $0.26 2018 Q1 $4 ($121) 2018 Q1 2017 Q4 2017 Q1 2018 Q1 2017 Q4
Slide 7: 2018 Guidance Assumptions
2018 Guidance Assumptions [1] Guidance Assumptions 2018 Guidance Revenue Guidance 3% - 6% Reported EPS Guidance $0.95 - $1.15 Adjusted EPS Guidance $1.50 - $1.70 EUR Rate 1.22 Effective Tax Rate 27% - 28% Capital Expenditures $80 - $90 million [1] 2018 Reported and Adjusted EPS guidance as of May 11
Slide 8: Questions & Answers
Questions & Answers Flowserve Q1 2018 Earnings Conference Call 8
Slide 9: Appendix
Appendix Flowserve Q1 2018 Earnings Conference Call 9
Slide 10: Q1 2018 Consolidated Financial Results
Q1 2018 Consolidated Financial Results 1st Quarter 1st Quarter Adjusted 2018 2018 2017 Constant Constant ($ millions) 2018 2017 Delta ($) Delta (%) Adjusted Adjusted Adjusted Delta ($) Delta (%) FX(%)* FX(%)* Items Results Results Bookings $ 928.5 $ 958.2 $ (29.7) -3.1% -8.1% $ - $ 928.5 $ 958.2 $ (
Slide 11: Engineered Product Division Q1 2018 Segment Results
Engineered Product Division Q1 2018 Segment Results 1st Quarter Constant ($ millions) 2018 2017 Delta ($) Delta (%) FX(%)* Bookings $ 424.3 $ 460.9 $ (36.6) -7.9% -12.2% Sales $ 467.7 $ 424.7 $ 43.0 10.1% 4.4% Gross Profit $ 139.8 $ 136.7 $ 3.1 2.3% Gross Margin (%) 29.9% 32.2% (230) bps SG&A $ 103.
Slide 12: Engineered Product Division Q1 2018 Bookings and Sales
Engineered Product Division Q1 2018 Bookings and Sales 1st Quarter Constant ($ millions) 2018 2017 Delta (%) FX(%)* $ 92 $ 145 -36% -41% OE 22% 31% (900) bps Bookings Mix ** $ 332 $ 316 5% 1% AM 78% 69% 900 bps $ 143 $ 130 10% 2% OE 31% 31% - Sales Mix ** $ 325 $ 295 10% 6% AM 69% 69% - * Constant F
Slide 13: Industrial Product Division Q1 2018 Segment Results
Industrial Product Division Q1 2018 Segment Results 1st Quarter Constant ($ millions) 2018 2017 Delta ($) Delta (%) FX(%)* Bookings $ 198.5 $ 206.7 $ (8.2) -4.0% -9.9% Sales $ 198.1 $ 178.4 $ 19.7 11.0% 4.4% Gross Profit $ 45.9 $ 34.8 $ 11.1 31.9% Gross Margin (%) 23.2% 19.5% 370 bps SG&A $ 47.9 $ 4
Slide 14: Industrial Product Division Q1 2018 Bookings and Sales
Industrial Product Division Q1 2018 Bookings and Sales 1st Quarter Constant ($ millions) 2018 2017 Delta (%) FX(%)* $ 120 $ 132 -9% -14% OE 60% 64% (400) bps Bookings Mix ** $ 78 $ 75 4% -2% AM 40% 36% 400 bps $ 121 $ 113 7% 1% OE 61% 63% (200) bps Sales Mix ** $ 77 $ 65 18% 11% AM 39% 37% 200 bps *
Slide 15: Flow Control Division Q1 2018 Segment Results
Flow Control Division Q1 2018 Segment Results 1st Quarter Constant ($ millions) 2018 2017 Delta ($) Delta (%) FX(%)* Bookings $ 327.3 $ 309.8 $ 17.5 5.6% 0.6% Sales $ 277.2 $ 280.4 $ (3.2) -1.1% -5.8% Gross Profit $ 88.2 $ 98.0 $ (9.8) -10.0% Gross Margin (%) 31.8% 35.0% (320) bps SG&A $ 54.3 $ 56.5
Slide 16: Flow Control Division Q1 2018 Bookings and Sales
Flow Control Division Q1 2018 Bookings and Sales 1st Quarter Constant ($ millions) 2018 2017 Delta (%) FX(%)* $ 244 $ 234 4% 2% OE 74% 75% (100) bps Bookings Mix ** $ 84 $ 76 10% -3% AM 26% 25% 100 bps $ 212 $ 222 -5% -7% OE 76% 79% (300) bps Sales Mix ** $ 66 $ 58 13% -3% AM 24% 21% 300 bps * Const
Slide 17: Investor Relations Contacts
Investor Relations Contacts Jay Roueche Mike Mullin 972.443.6560 972.443.6636 jroueche@flowserve.com mmullin@flowserve.com Flowserve Q1 2018 Earnings Conference Call 17