Slide 1: Fourth Quarter 2017 Earnings Conference Call
Fourth Quarter 2017 Earnings Conference Call February 16, 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: Q4 Overview
Q4 Overview • Reported 4Q17 Loss Per Share of $0.81 due primarily to discrete tax and realignment expenses • Adjusted EPS* was $0.50; Full year Adjusted EPS of $1.36 • Bookings increased 8.5% driven by growth in all segments - includes approximately 2% headwind from divestitures • Revenue decreased
Slide 4: Q4 2017 Bookings & Sales Mix
Q4 2017 Bookings & Sales Mix Bookings Sales End-Markets $985M $908M $1.03B $1.07B • Oil & Gas • Project spending remains challenged • Pre-FEED and FEED pipeline growing 36% • North America 2018 refinery maintenance outlook improved 39% 39% 38% Oil & Gas North America • Chemical • Opportunities progr
Slide 5: Q4 Original Equipment / Aftermarket Mix
Q4 Original Equipment / Aftermarket Mix Original Equipment Aftermarket Bookings Mix % Sales Mix % Bookings Mix % Sales Mix % $ millions $ millions $574 $ millions $ millions $521 $537 $502 $502 $462 53% $464 $454 $439 52% $446 $439 $444 53% 48% 47% 51% 47% 51% 49% 49% 50% 50% 2017 Q4 2017 Q3 2016 Q4
Slide 6: 2017 Q4 Financial Scorecard
[1] 2017 Q4 Financial Scorecard [2] Bookings Revenue Adjusted OI% Adjusted EPS Oper. Cash Flow PWC $ millions $ millions $1,071 12.9% $ millions As a % of TTM Revenue $239 $1,034 $0.68 $985 9.8% 31.5% 9.3% $170 27.9% 27.8% $0.50 $908 $893 $883 $0.37 $26 2017 Q4 2017 Q3 2016 Q4 2017 Q4 2017 Q3 2016 Q
Slide 7: Discrete Tax Items
Discrete Tax Items Largely due to U.S. Tax Cuts and Jobs Act of 2017 Total Tax Non-Cash Cash Tax ($ millions) Amount Tax Amount Amount One-time deemed repatriation tax and associated withholding taxes $120.4 $120.4 Impact due to reduction in the US corporate tax rate from 35% to 21% (49.0) (49.0) Ot
Slide 8: 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 - $90 million [1] 2018 Reported and Adjusted EPS guidance as of Februa
Slide 9: Questions & Answers
Questions & Answers Flowserve Q4 2017 Earnings Conference Call 9
Slide 10: Appendix
Appendix Flowserve Q4 2017 Earnings Conference Call 10
Slide 11: Q4 2017 Consolidated Financial Results
Q4 2017 Consolidated Financial Results 4th Quarter 4th Quarter Adjusted 2017 2017 2016 Constant Constant ($ millions) 2017 2016 Delta ($) Delta (%) FX(%)* Adjusted Adjusted Adjusted Delta ($) Delta (%) FX(%)* Items Results Results Bookings $ 984.6 $ 907.6 $ 77.0 8.5% 4.7% $ - $ 984.6 $ 907.6 $ 77.0
Slide 12: Year-to-Date 2017 Consolidated Financial Results
Year-to-Date 2017 Consolidated Financial Results Year-to-Date Year-to-Date Adjusted 2017 2017 2016 Constant Constant ($ millions) 2017 2016 Delta ($) Delta (%) FX(%)* Adjusted Adjusted Adjusted Delta ($) Delta (%) FX(%)* Items Results Results Bookings $ 3,803.9 $ 3,760.4 $ 43.5 1.2% 0.4% $ 3,803.9 $
Slide 13: Engineered Product Division Q4 & Year-to-Date 2017 Segment Results
Engineered Product Division Q4 & Year-to-Date 2017 Segment Results 4th Quarter Year-to-Date Constant Constant ($ millions) 2017 2016 Delta ($) Delta (%) FX(%)* 2017 2016 Delta ($) Delta (%) FX(%)* Bookings $ 485.5 $ 437.0 $ 48.5 11.1% 7.7% $ 1,842.1 $ 1,823.8 $ 18.3 1.0% 0.4% Sales $ 498.9 $ 551.8 $
Slide 14: Engineered Product Division Q4 & Year-to-Date 2017 Bookings and Sales
Engineered Product Division Q4 & Year-to-Date 2017 Bookings and Sales 4th Quarter Year-to-Date Constant Constant ($ millions) 2017 2016 Delta (%) 2017 2016 Delta (%) FX(%)* FX(%)* $ 153 $ 125 22% 17% $ 554 $ 524 6% 5% OE 31% 29% 200 bps 30% 29% 100 bps Bookings Mix ** $ 333 $ 312 7% 4% $ 1,288 $ 1,3
Slide 15: Industrial Product Division Q4 & Year-to-Date 2017 Segment Results
Industrial Product Division Q4 & Year-to-Date 2017 Segment Results 4th Quarter Year-to-Date Constant Constant ($ millions) 2017 2016 Delta ($) Delta (%) FX(%)* 2017 2016 Delta ($) Delta (%) FX(%)* Bookings $ 205.8 $ 188.6 $ 17.2 9.1% 4.7% $ 821.7 $ 797.7 $ 24.0 3.0% 2.1% Sales $ 215.3 $ 219.3 $ (4.0
Slide 16: Industrial Product Division Q4 & Year-to-Date 2017 Bookings and Sales
Industrial Product Division Q4 & Year-to-Date 2017 Bookings and Sales 4th Quarter Year-to-Date Constant Constant ($ millions) 2017 2016 Delta (%) 2017 2016 Delta (%) FX(%)* FX(%)* $ 127 $ 106 20% 15% $ 514 $ 483 6% 5% OE 62% 56% 600 bps 63% 61% 200 bps Bookings Mix ** $ 79 $ 83 -4% -9% $ 308 $ 315 -
Slide 17: Flow Control Division Q4 & Year-to-Date 2017 Segment Results
Flow Control Division Q4 & Year-to-Date 2017 Segment Results 4th Quarter Year-to-Date Constant Constant ($ millions) 2017 2016 Delta ($) Delta (%) FX(%)* 2017 2016 Delta ($) Delta (%) FX(%)* Bookings $ 314.1 $ 304.1 $ 10.0 3.3% -0.5% $ 1,225.7 $ 1,216.8 $ 8.9 0.7% -% Sales $ 344.6 $ 318.2 $ 26.4 8.3
Slide 18: Flow Control Division Q4 & Year-to-Date 2017 Bookings and Sales
Flow Control Division Q4 & Year-to-Date 2017 Bookings and Sales 4th Quarter Year-to-Date Constant Constant ($ millions) 2017 2016 Delta (%) 2017 2016 Delta (%) FX(%)* FX(%)* $ 252 $ 242 4% -% $ 945 $ 966 -2% -3% OE 80% 79% 100 bps 77% 79% (200) bps Bookings Mix ** $ 62 $ 62 -% -3% $ 280 $ 251 12% 11
Slide 19: Investor Relations Contacts
Investor Relations Contacts Jay Roueche Mike Mullin 972.443.6560 972.443.6636 jroueche@flowserve.com mmullin@flowserve.com Flowserve Q4 2017 Earnings Conference Call 19