Slide 1: Third Quarter 2020 Earnings Conference Call
November 6, 2020 Third Quarter 2020 Earnings Conference Call 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 2020 Overview
Q3 2020 Overview • Q3 2020 Reported and Adjusted EPS of $0.39 and $0.50* • Bookings decreased 21.2%, or 21.6% constant currency - Aftermarket bookings of $425 million decreased 13.5%, or 13.6% constant currency • Revenue decreased 7.2%, or 7.7% constant currency and essentially flat sequentially • $
Slide 4: Q3 Bookings & Sales Mix
Q3 Bookings & Sales Mix Bookings Sales End-Markets $806M $1.02B $924M $996M Oil & Gas • Oil demand remains constrained due to COVID 30% driven mobility limitations 40% 37% 41% • Oil price volatility stabilizing throughout Q3 North America • Moderate increases in refined product demand Oil & Gas • Re
Slide 5: Original Equipment / Aftermarket Mix
Original Equipment / Aftermarket Mix Original Equipment Aftermarket [1] Bookings Mix % Sales Mix % Bookings Mix % Sales Mix % [1] $ millions $ millions $ millions $ millions $532 $509 $479 $463 $492 $488 $443 $445 $462 $425 $381 $366 53% 55% 52% 52% 51% 50% 50% 48% 49% 48% 47% 45% 2020 Q3 2020 Q2 20
Slide 6: Q3 2020 Financial Scorecard
[1] Q3 2020 Financial Scorecard [1] [2] Bookings Revenue Adjusted OI% Adjusted EPS [1] Operating Cash Flow PWC $ millions $ millions $ millions As a % of TTM Revenue $95 $1,023 $996 11.3% 11.5% $0.56 10.9% 30.0% $924 $925 $0.50 $0.51 $70-$75 28.4% 28.7% $806 $808 2020 Q3 2020 2019 Q3 Q2 -$26 2020 Q3
Slide 7: New Product Development – Recent Launches
New Product Development – Recent Launches Limitorque Smart Electric Actuator SIHI Liquid Ring Compressor Valtek Compressor Anti-Surge Valve Ensures trouble-free commissioning, Supports flare gas and vapor recovery Revolutionary solution to anti-surge control improved process control from advanced op
Slide 8: Commitment to ESG Initiatives
Commitment to ESG Initiatives Flowserve Commitments People • Promote and commit to safety and integrity • Focus on social justice and change in communities where our employees live and work Planet • 40% reduction in carbon intensity by 2030 • Sign WASH Pledge: Commit to safe water access, sanitation
Slide 9: 2020 Priorities and Outlook
2020 Priorities and Outlook 2020 Q4 Outlook* • Continue protecting the health and safety of our workforce, customers and suppliers • Fourth quarter bookings expected to be in-line with Q2 and Q3 levels, while anticipating an upward inflection in mid-to-late 2021 • Expect significant progress on conv
Slide 10: Questions & Answers
Questions & Answers Flowserve Q3 2020 Earnings Conference Call Preliminary results subject to confirmation 10
Slide 11: Appendix
Appendix Flowserve Q3 2020 Earnings Conference Call Preliminary results subject to confirmation 11
Slide 12: Q3 2020 Consolidated Financial Results
Q3 2020 Consolidated Financial Results 3rd Quarter 3rd Quarter Adjusted 2020 2020 2019 Constant Constant ($ millions) 2020 2019 Delta ($) Delta (%) Adjusted Adjusted Adjusted Delta ($) Delta (%) FX(%)* FX(%)* Items Results Results Bookings $ 806.1 $ 1,023.4 $ (217.3) -21.2% -21.6% $ - $ 806.1 $ 1,02
Slide 13: Year-to-Date 2020 Consolidated Financial Results
Year-to-Date 2020 Consolidated Financial Results Year-to-Date Year-to-Date Adjusted 2020 2020 2019 Constant Constant ($ millions) 2020 2019 Delta ($) Delta (%) Adjusted Adjusted Adjusted Delta ($) Delta (%) FX(%)* FX(%)* Items Results Results Bookings $ 2,587.3 $ 3,188.4 $ (601.1) -18.9% -17.7% $ -
Slide 14: Flowserve Pump Division 2020 Segment Results
Flowserve Pump Division 2020 Segment Results 3rd Quarter Year-to-Date Constant Constant ($ millions) 2020 2019 Delta ($) Delta (%) FX(%)* 2020 2019 Delta ($) Delta (%) FX(%)* Bookings $ 574.1 $ 742.1 $ (168.0) -22.6% -22.8% $ 1,792.3 $ 2,253.5 $ (461.2) -20.5% -19.2% Sales $ 670.2 $ 682.7 $ (12.5) -
Slide 15: Flowserve Pump Division 2020 Bookings and Sales
Flowserve Pump Division 2020 Bookings and Sales 3rd Quarter Full Year Constant Constant ($ millions) 2020 2019 Delta (%) 2020 2019 Delta (%) FX(%)* FX(%)* 204 322 -37% -37% 622 962 -35% -35% OE 36% 43% (700) bps 35% 43% (800) bps Bookings Mix ** 370 420 -12% -12% 1,170 1,291 -9% -8% AM 64% 57% 700 b
Slide 16: Flow Control Division 2020 Segment Results
Flow Control Division 2020 Segment Results 3rd Quarter Year-to-Date Constant Constant ($ millions) 2020 2019 Delta ($) Delta (%) FX(%)* 2020 2019 Delta ($) Delta (%) FX(%)* Bookings $ 237.6 $ 282.7 $ (45.1) -16.0% -16.8% $ 807.8 $ 942.8 $ (135.0) -14.3% -13.4% Sales $ 255.2 $ 314.0 $ (58.8) -18.7% -
Slide 17: Flow Control Division 2020 Bookings and Sales
Flow Control Division 2020 Bookings and Sales 3rd Quarter Full Year Constant Constant ($ millions) 2020 2019 Delta (%) 2020 2019 Delta (%) FX(%)* FX(%)* 179 210 -15% -16% 601 720 -17% -16% OE 75% 74% 100 bps 74% 76% (200) bps Bookings Mix ** 59 73 -20% -20% 207 223 -7% -7% AM 25% 26% (100) bps 26% 2
Slide 18: Investor Relations Contacts
Investor Relations Contacts Jay Roueche Mike Mullin 972.443.6560 972.443.6636 jroueche@flowserve.com mmullin@flowserve.com Flowserve Q3 2020 Earnings Conference Call Preliminary results subject to confirmation 18