Slide 1: Third Quarter 2017 Earnings Conference Call
Third Quarter 2017 Earnings Conference Call NOVEMBER 2, 2017 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 Overview
Q3 Overview • Reported 2017 third quarter EPS of $0.36, Adjusted EPS* of $0.37 • Bookings decreased 6.9% driven by original equipment declines in EPD and FCD and includes approximately 2% headwind from divestitures • Revenue decreased 6.6% driven by original equipment declines across all segments an
Slide 4: Q3 2017 Bookings & Sales Mix
Q3 2017 Bookings & Sales Mix Bookings Sales End-Markets $893M $960M $883M $945M • Oil & Gas project spend remains challenged; Gulf Coast hurricane related delays in aftermarket activity • Chemical opportunities progressing in Asia but 38% 39% 39% 42% remain very competitive; North American second Oi
Slide 5: Q3 Original Equipment / Aftermarket Mix
Q3 Original Equipment / Aftermarket Mix Original Equipment Aftermarket Bookings Mix % Sales Mix % Bookings Mix % Sales Mix % $ millions $ millions $ millions $ millions $514 $507 $533 $454 $458 $452 $439 $444 $443 $439 $435 $413 53% 53% 56% 49% 50% 51% 51% 47% 47% 50% 49% 44% 2017 Q3 2017 Q2 2016 Q3
Slide 6: 2017 Q3 Financial Scorecard
[1] 2017 Q3 Financial Scorecard Bookings Revenue Adjusted OI% Adjusted EPS Oper. Cash Flow Working Capital [2] $ millions $ millions 12.3% $ millions As a % of TTM Revenue $971 $60 $960 $946 $0.55 39.0% 9.3% 37.4% $883 $877 8.1% $43 $0.37 35.9% $893 $26 $0.22 2017 Q3 2017 Q2 2016 Q3 2017 Q3 2017 Q2
Slide 7: 2017 Guidance Assumptions
2017 Guidance Assumptions [1] Revenue Guidance Assumptions Previous 2017 Guidance Current 2017 Guidance [2] Revenue Guidance vs. 2016 -6% to -10% -7% to -9% EUR Rate 1.15 (July 2017) 1.16 (current) FX headwinds vs. 2016 ~0.5% ~0.5% Constant Currency Guidance ~-5.5% to ~-9.5% ~-6.5% to ~-8.5% [1] EPS
Slide 8: Flowserve 2.0
Flowserve 2.0 Realignment • Continue pursuit of optimized manufacturing footprint • Accelerate the program and move to normal operations Flowserve Operating System • Create and implement a consistent operating model • Pursue common global systems • Centralize approach to manufacturing and supply cha
Slide 9: Questions & Answers
Questions & Answers Flowserve Q3 2017 Earnings Conference Call 9
Slide 10: Appendix
Appendix Flowserve Q3 2017 Earnings Conference Call 10
Slide 11: Q3 2017 Consolidated Financial Results
Q3 2017 Consolidated Financial Results 3rd Quarter 3rd Quarter Adjusted 2017 2017 2016 Constant Constant ($ millions) 2017 2016 Delta ($) Delta (%) Adjusted Adjusted Adjusted Delta ($) Delta (%) FX(%)* FX(%)* Items Results Results Bookings $ 892.9 $ 959.5 $ (66.6) -6.9% -8.6% $ - $ 892.9 $ 959.5 $ (
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 ($) Delta (%) Adjusted Adjusted Adjusted Delta ($) Delta (%) FX(%)* FX(%)* Items Results Results Bookings $ 2,820.1 $ 2,855.0 $ (34.9) -1.2% -1.0% $ 2,820
Slide 13: Engineered Product Division Q3 & Year-to-Date 2017 Segment Results
Engineered Product Division Q3 & Year-to-Date 2017 Segment Results 3rd Quarter Year-to-Date Constant Constant ($ millions) 2017 2016 Delta ($) Delta (%) FX(%)* 2017 2016 Delta ($) Delta (%) FX(%)* Bookings $ 432.5 $ 497.5 $ (65.0) -13.1% -14.4% $ 1,357.2 $ 1,387.5 $ (30.3) -2.2% -1.9% Sales $ 424.2
Slide 14: Engineered Product Division Q3 & Year-to-Date 2017 Bookings and Sales
Engineered Product Division Q3 & Year-to-Date 2017 Bookings and Sales 3rd Quarter Year-to-Date Constant Constant ($ millions) 2017 2016 Delta (%) 2017 2016 Delta (%) FX(%)* FX(%)* $ 114 $ 160 -29% -31% $ 402 $ 400 0% 1% OE 26% 32% (600) bps 30% 29% 100 bps Bookings Mix ** $ 319 $ 338 -6% -7% $ 955 $
Slide 15: Industrial Product Division Q3 & Year-to-Date 2017 Segment Results
Industrial Product Division Q3 & Year-to-Date 2017 Segment Results 3rd Quarter Year-to-Date Constant Constant ($ millions) 2017 2016 Delta ($) Delta (%) FX(%)* 2017 2016 Delta ($) Delta (%) FX(%)* Bookings $ 196.9 $ 189.6 $ 7.3 3.9% 1.5% $ 616.6 $ 609.5 $ 7.1 1.2% 1.3% Sales $ 189.7 $ 203.3 $ (13.6)
Slide 16: Industrial Product Division Q3 & Year-to-Date 2017 Bookings and Sales
Industrial Product Division Q3 & Year-to-Date 2017 Bookings and Sales 3rd Quarter Year-to-Date Constant Constant ($ millions) 2017 2016 Delta (%) 2017 2016 Delta (%) FX(%)* FX(%)* $ 121 $ 116 4% 2% $ 388 $ 378 3% 3% OE 61% 61% 0 bps 63% 62% 100 bps Bookings Mix ** $ 76 $ 74 3% 0% $ 229 $ 232 -1% -1%
Slide 17: Flow Control Division Q3 & Year-to-Date 2017 Segment Results
Flow Control Division Q3 & Year-to-Date 2017 Segment Results 3rd Quarter Year-to-Date Constant Constant ($ millions) 2017 2016 Delta ($) Delta (%) FX(%)* 2017 2016 Delta ($) Delta (%) FX(%)* Bookings $ 285.9 $ 291.9 $ (6.0) -2.1% -3.8% $ 911.2 $ 913.8 $ (2.6) -0.3% -0.1% Sales $ 287.7 $ 299.3 $ (11.
Slide 18: Flow Control Division Q3 & Year-to-Date 2017 Bookings and Sales
Flow Control Division Q3 & Year-to-Date 2017 Bookings and Sales 3rd Quarter Year-to-Date Constant Constant ($ millions) 2017 2016 Delta (%) 2017 2016 Delta (%) FX(%)* FX(%)* $ 215 $ 241 -13% -11% $ 693 $ 725 -4% -4% OE 75% 83% (800) bps 76% 79% (300) bps Bookings Mix ** $ 71 $ 50 42% 41% $ 218 $ 188
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 Q3 2017 Earnings Conference Call 19