Slide 1: Second Quarter 2022 Earnings Conference Call
SECOND QUARTER 2022 EARNINGS CONFERENCE CALL July 28, 2022 Q2 2022 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: Q2 2022 Highlights
Q2 2022 HIGHLIGHTS • Strong bookings of $1.04 billion represent YoY growth of 9.6%, or 14.5% constant currency - Included significant number of small project awards across all core end markets - Aftermarket bookings of $526 million – marks third consecutive quarter over $500 million, despite stronge
Slide 4: Q2 2022 Overview
Q2 2022 OVERVIEW Bookings • Year-over-year bookings growth Sales • Revenue decreased 1.8% $ millions driven by strong aftermarket $ millions versus prior year, or up 2.8% on $1,086 $1,044 spending and increased project a constant currency basis investment $919 $953 $969 $898 $882 - Operational and s
Slide 5: Q2 Bookings Mix
Q2 BOOKINGS MIX Original Equipment End-Market Mix End-Market Outlook Oil & Gas Water General Industries Power Chemical Oil & Gas • Increased North America maintenance spending driven by $ millions $544 $518 $953M $1.04B strong demand environment and high utilization rates $428 • LNG demand driving s
Slide 6: Q2 Sales Mix
Q2 SALES MIX Original Equipment Region Mix $ millions $898M $882M $434 $411 $383 48% 47% 47% 38% 44% 2021 Q2 2022 Q1 2022 Q2 North America Europe Asia Pacific 21% Middle East & Africa Aftermarket 19% Latin America $ millions $464 $471 $438 23% 19% 52% 53% 53% 11% 12% 7% 6% 2021 Q2 2022 Q1 2022 Q2 20
Slide 7: Q2 Segment Highlights FPD FCD
Q2 SEGMENT HIGHLIGHTS FPD FCD YoY Bookings Growth 7.3% 14.1% Adjusted Gross Margin* 30.0% 30.0% Adjusted SG&A as % of Sales* 21.4% 17.5% Adjusted Operating Margin* 9.4% 12.5% Book-to-Bill 1.17x 1.23x * See appendix for reconciliation to corresponding GAAP-based measure Q2 2022 EARNINGS CONFERENCE CA
Slide 8: 2022 Guidance Assumptions
2022 GUIDANCE ASSUMPTIONS Guidance Metric 2022 Guidance Factors Driving Outlook To Low End of Revenue and EPS Ranges Revenue Growth Up 5.0% - 7.0% • Strengthened U.S Dollar – 60% plus of Reported EPS [1] $1.25 - $1.45 Flowserve business outside the U.S. • Stronger first half bookings than expected [
Slide 9: Flowserve 3D Growth Strategy in Action
FLOWSERVE 3D GROWTH STRATEGY IN ACTION DIVERSIFY – Specialty Chemicals DECARBONIZE – Enabling DIGITIZE – RedRaven Technology for Global Markets Hydrogen Production in East Africa • Flowserve partnering with • Flowserve supplying over 2,000 • Added RedRaven IoT monitoring customer to construct the wo
Slide 10: 2021 ESG Report Released
2021 ESG REPORT RELEASED Key Highlights • Continued progress to achieve our 2030 carbon emissions reduction goal • Industry leading safety performance • Supported 150 charitable organizations through Flowserve Cares • Received multiple prestigious awards recognizing our social and sustainability eff
Slide 11: Questions & Answers
Questions & Answers Q2 2022 EARNINGS CONFERENCE CALL 1 1
Slide 12: Appendix
APPENDIX Q2 2022 EARNINGS CONFERENCE CALL 1 2
Slide 13: Q2 2022 Consolidated Financial Results
Q2 2022 CONSOLIDATED FINANCIAL RESULTS 2nd Quarter 2nd Quarter Adjusted 2022 2022 2021 ($ m illions) 2022 2021 Delta ($) Delta (%) Constant Adjusted Adjusted Adjusted Delta ($) Delta (%) Constant FX(%)* Items Results Results FX(%)* Bookings $ 1,044.0 $ 952.8 $ 91.2 9.6% 14.5% $ - $ 1,044.0 $ 952.8 $
Slide 14: Year-to-Date 2022 Consolidated Financial Results
YEAR-TO-DATE 2022 CONSOLIDATED FINANCIAL RESULTS Year-to-Date Year-to-Date Adjusted Constant 2022 2022 2021 Constant ($ m illions) 2022 2021 Delta ($) Delta (%) Adjusted Adjusted Adjusted Delta ($) Delta (%) FX(%)* FX(%)* Items Results Results Bookings $ 2,129.7 $ 1,896.8 $ 232.9 12.3% 16.1% $ - $ 2
Slide 15: Flowserve Pump Division Q2 2022 Segment Results
FLOWSERVE PUMP DIVISION Q2 2022 SEGMENT RESULTS 2nd Quarter Year-to-Date Constant Constant ($ m illions) 2022 2021 Delta ($) Delta (%) FX(%)* 2022 2021 Delta ($) Delta (%) FX(%)* Bookings $ 717.8 $ 668.8 $ 49.0 7.3% 12.4% $ 1,513.0 $ 1,322.2 $ 190.8 14.4% 18.4% Sales $ 614.9 $ 617.5 $ (2.6) -0.4% 4.
Slide 16: Flowserve Pump Division Q2 2022 Bookings and Sales
FLOWSERVE PUMP DIVISION Q2 2022 BOOKINGS AND SALES 2nd Quarter Year-to-Date Constant Constant ($ m illions) 2022 2021 Delta (%) 2022 2021 Delta (%) FX(%)* FX(%)* 263 217 21% 27% 587 481 22% 27% OE Bookings Mix 37% 32% 500 bps 39% 36% 300 bps ** 1% 5% 10% 14% 455 452 926 841 AM 63% 68% (500) bps 61%
Slide 17: Flow Control Division Q2 2022 Segment Results
FLOW CONTROL DIVISION Q2 2022 SEGMENT RESULTS 2nd Quarter Year-to-Date Constant Constant ($ m illions) 2022 2021 Delta ($) Delta (%) FX(%)* 2022 2021 Delta ($) Delta (%) FX(%)* Bookings $ 329.9 $ 289.1 $ 40.8 14.1% 18.8% $ 624.2 $ 582.6 $ 41.6 7.1% 10.6% Sales $ 268.4 $ 281.2 $ (12.8) -4.6% -0.6% $
Slide 18: Flow Control Division Q2 2022 Bookings and Sales
FLOW CONTROL DIVISION Q2 2022 BOOKINGS AND SALES 2nd Quarter Year-to-Date Constant Constant ($ m illions) 2022 2021 Delta (%) 2022 2021 Delta (%) FX(%)* FX(%)* 257 213 21% 26% 478 438 9% 13% OE Bookings Mix 78% 74% 400 bps 77% 75% 200 bps ** -3% -1% 1% 3% 73 76 146 145 AM 22% 26% (400) bps 23% 25% (
Slide 19: Investor Relations Contacts
Investor Relations Contacts Jay Roueche Mike Mullin 972.443.6560 214.697.8568 jroueche@flowserve.com mmullin@flowserve.com Q2 2022 EARNINGS CONFERENCE CALL 1 9