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Flowserve Corporation Morgan Stanley Global Industrials CEOs Unplugged Conference September 11, 2008 Lew Kling, President and Chief Executive Officer Mark Blinn, SVP, CFO and Latin America Operations Tom Pajonas, President, Flow Control Division Zac Nagle, VP Investor Relations

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Flowserve Corporation

Morgan Stanley Global Industrials CEOs Unplugged Conference

September 11, 2008

Lew Kling, President and Chief Executive OfficerMark Blinn, SVP, CFO and Latin America OperationsTom Pajonas, President, Flow Control DivisionZac Nagle, VP Investor Relations

Flowserve Corporation Proprietary & Confidential Page 2

Special NoteSAFE 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 of the Private Securities Litigation Reform Act of 1995, as amended. Words or phrases such as, “may,” “should,” “expects,” “could,” “intends,” “plans,” “anticipates,” “estimates,” “believes,” “predicts” or other similar expressions are intended to identify forward-looking statements, which include, without limitation, earnings forecasts, statements relating to our business strategy and statements of expectations, beliefs, future plans and strategies and anticipated developments concerning our industry, business, operations and financial performance and condition.

The forward-looking statements included in this presentation are based on our current expectations, projections, estimates and assumptions. These statements are only predictions, not guarantees. Such forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict. These risks and uncertainties may cause actual results to differ materially from what is forecast in such forward-looking statements, and include, without limitation, the following: a portion of our bookings may not lead to completed sales, and our ability to convert bookings into revenues at acceptable profit margins; risks associated with cost overruns on fixed-fee projects and in taking customer orders for large complex custom engineered products requiring sophisticated program management skills and technical expertise for completion; the substantial dependence of our sales on the success of the petroleum, chemical, power and water industries; the adverse impact of volatile raw materials prices on our products and operating margins; economic, political and other risks associated with our international operations, including military actions or trade embargoes that could affect customer markets, particularly Middle Eastern markets and global petroleum producers, and non-compliance with U.S. export/re-export control, foreign corrupt practice laws, economic sanctions and import laws and regulations; our furnishing of products and services to nuclear power plant facilities; potential adverse consequences resulting from litigation to which we are a party, such as litigation involving asbestos-containing material claims; a foreign government investigation regarding our participation in the United Nations Oil-for-Food Program; risks associated with certain of our foreign subsidiaries conducting business operations and sales in certain countries that have been identified by the U.S. State Department as state sponsors of terrorism; our relative geographical profitability and its impact on our utilization of deferred tax assets, including foreign tax credits, and tax liabilities that could result from audits of our tax returns by regulatory authorities in various tax jurisdictions; the potential adverse impact of an impairment in the carrying value of goodwill or other intangibles; our dependence upon third-party suppliers whose failure to perform timely could adversely affect our business operations; our dependence on our customers’ ability to make required capital investment and maintenance expenditures; the highly competitive nature of the markets in which we operate; environmental compliance costs and liabilities; potential work stoppages and other labor matters; our inability to protect our intellectual property in the U.S., as well as in foreign countries; obligations under our defined benefit pension plans; and other factors described from time to time in our filings with the Securities and Exchange Commission.

All forward-looking statements included in this presentation are based on information available to us on the date hereof, and we assume no obligation to update any forward-looking statement.

Mining Pulp & PaperOil & Gas Power Chemical Water

Page 3Flowserve Proprietary & Confidential

INFRASTRUCTURE INDUSTRIES

North America Latin America Europe Middle East Africa China India Rest of Asia

GLOBAL PRESENCE

GENERAL INDUSTRIESFood & Bev

A Historical Overview

An Eleven Year Old Company With Over 200 Years of History

Mining Pulp & PaperOil & Gas Power Chemical Water

Page 4Flowserve Proprietary & Confidential

INFRASTRUCTURE INDUSTRIES

North America Latin America Europe Middle East Africa China India Rest of Asia

GLOBAL PRESENCE

GENERAL INDUSTRIESFood & Bev

A Leading Portfolio of Products, Solutions & Services

Flowserve Products Play a Key Role in Infrastructure Build-out Around the Globe

A Broad Set of Product Capabilities Critical IndustryApplication SolutionsPumps - Valves - Seals

AftermarketSupport Services

Global Quick Response Center (QRC) Footprint

Manufacturing Support

Engineering Support

Spare Parts Support

Oil / Gas

Chemical Water

General Industry

Power

Mining Pulp & PaperOil & Gas Power Chemical Water

Page 5Flowserve Proprietary & Confidential

INFRASTRUCTURE INDUSTRIES

North America Latin America Europe Middle East Africa China India Rest of Asia

GLOBAL PRESENCE

GENERAL INDUSTRIESFood & Bev

WCC Multistage Pump and System

Typical Applications

•Pipeline Service•Onshore Oil Production•Offshore Oil Production•Refining

Mining Pulp & PaperOil & Gas Power Chemical Water

Page 6Flowserve Proprietary & Confidential

INFRASTRUCTURE INDUSTRIES

North America Latin America Europe Middle East Africa China India Rest of Asia

GLOBAL PRESENCE

GENERAL INDUSTRIESFood & Bev

Typical Applications

• Pipeline Service• Onshore Oil Production• Offshore Oil Production• Refining

HDO Multistage Pump and System

Mining Pulp & PaperOil & Gas Power Chemical Water

Page 7Flowserve Proprietary & Confidential

INFRASTRUCTURE INDUSTRIES

North America Latin America Europe Middle East Africa China India Rest of Asia

GLOBAL PRESENCE

GENERAL INDUSTRIESFood & Bev

DMX Multistage Pump and System

Typical Applications

• Oil and Gas• Power Generation• Mining• Desalination• Metal Processing

Mining Pulp & PaperOil & Gas Power Chemical Water

Page 8Flowserve Proprietary & Confidential

INFRASTRUCTURE INDUSTRIES

North America Latin America Europe Middle East Africa China India Rest of Asia

GLOBAL PRESENCE

GENERAL INDUSTRIESFood & Bev

Market leader in Large Oil and Gas Valve Applications

Mining Pulp & PaperOil & Gas Power Chemical Water

Page 9Flowserve Proprietary & Confidential

INFRASTRUCTURE INDUSTRIES

North America Latin America Europe Middle East Africa China India Rest of Asia

GLOBAL PRESENCE

GENERAL INDUSTRIESFood & Bev

Market Leader in Cryogenic Valve Applications

Mining Pulp & PaperOil & Gas Power Chemical Water

Page 10Flowserve Proprietary & Confidential

INFRASTRUCTURE INDUSTRIES

North America Latin America Europe Middle East Africa China India Rest of Asia

GLOBAL PRESENCE

GENERAL INDUSTRIESFood & Bev

Driving For Growth

Organic Growth

Globalization

Strategic Acquisitions

Organizational Capability

Process Excellence

Technology/Innovation

Key Strategies

Sustainable ProfitableGrowth

Sustainable Sustainable ProfitableProfitableGrowthGrowth

Flowserve is…

a multinational industrial products company that …

… targets major capital projects in the oil & gas, power, chemical, water, and

general industries that meet our financial and operational criteria …

… leverages our aftermarket services to reduce our customers total cost of

ownership …

… capitalizes on our global footprint of local expertise …

… and utilizes our integrated competencies on a global scale

Our Competencies Drive Our Strategies to Achieve Sustainable Profitable Growth

Portfolio Management

Mining Pulp & PaperOil & Gas Power Chemical Water

Page 11Flowserve Proprietary & Confidential

INFRASTRUCTURE INDUSTRIES

North America Latin America Europe Middle East Africa China India Rest of Asia

GLOBAL PRESENCE

GENERAL INDUSTRIESFood & Bev

Everything Starts With Our Customers

Product is Delivered On-Time

CUSTOMER REQUIREMENTS

Product Performs as Expected

Product is Supported

The Customer is Willing to Purchase Products at a “Fair” Price

Mining Pulp & PaperOil & Gas Power Chemical Water

Page 12Flowserve Proprietary & Confidential

INFRASTRUCTURE INDUSTRIES

North America Latin America Europe Middle East Africa China India Rest of Asia

GLOBAL PRESENCE

GENERAL INDUSTRIESFood & Bev

Flowserve’s Global Presence

Flowserve Has Operations in More Than 55 Countries with Over 14,000 Employees

Mining Pulp & PaperOil & Gas Power Chemical Water

Page 13Flowserve Proprietary & Confidential

INFRASTRUCTURE INDUSTRIES

North America Latin America Europe Middle East Africa China India Rest of Asia

GLOBAL PRESENCE

GENERAL INDUSTRIESFood & Bev

2004 2005 2006 2007 2008

+28%

• Q2 2008 bookings included currency benefit of approximately $97 million and Niigata Worthington acquisition bookings of $16 million compared to Q2 2007.

Continued Strong Bookings Growth

$1,429

$686

$879

$1,089

+24%

+31%

+16%

+15%

+19%

+21%

+20%$696

$912

$1,053

$774

$892

$1,061

$771

$934

$1,116

Q2 Q3 Q4

$621

+10% +9% +22% +23%

$638 $634 $628

Q1

$1,311

+24%

($ millions) +31%

Mining Pulp & PaperOil & Gas Power Chemical Water

Page 14Flowserve Proprietary & Confidential

INFRASTRUCTURE INDUSTRIES

North America Latin America Europe Middle East Africa China India Rest of Asia

GLOBAL PRESENCE

GENERAL INDUSTRIESFood & Bev

2004 2005 2006 2007 2008

+6%

• Q2 2008 sales included currency benefit of approximately $85 million and Niigata Worthington acquisition sales of $29 million compared to Q2 2007.

Strong Bookings Growth Drives Future Sales

$993

$616$654

$803

+24%

+23%

+9%

+24%

+4%

+19%

+20%

+26%

$691$753

$931

$649

$771

$919

$739

$884

$1,109

$577$618 $623

$704

+7%

Q2 Q3 Q4

+12%

+19%

+5%

Q1

$1,158

($ millions) +24%

MiningOil & Gas Power Chemical Water

Page 15Flowserve Proprietary & Confidential

INFRASTRUCTURE INDUSTRIES

North America Latin America Europe Middle East Africa China India Rest of Asia

GLOBAL PRESENCE

Food & Bev Pulp & PaperGENERAL INDUSTRIES

MiningOil & Gas Power Chemical Water

Page 16Flowserve Proprietary & Confidential

INFRASTRUCTURE INDUSTRIES

North America Latin America Europe Middle East Africa China India Rest of Asia

GLOBAL PRESENCE

Food & Bev Pulp & PaperGENERAL INDUSTRIES

MiningOil & Gas Power Chemical Water

Page 17Flowserve Proprietary & Confidential

INFRASTRUCTURE INDUSTRIES

North America Latin America Europe Middle East Africa China India Rest of Asia

GLOBAL PRESENCE

Food & Bev Pulp & PaperGENERAL INDUSTRIES

*From Continuing Operations (Diluted); All monetary figures in this report are calculated in US Dollars.

MiningOil & Gas Power Chemical Water

Page 18Flowserve Proprietary & Confidential

INFRASTRUCTURE INDUSTRIES

North America Latin America Europe Middle East Africa China India Rest of Asia

GLOBAL PRESENCE

Food & Bev Pulp & PaperGENERAL INDUSTRIES

On 7/30/2008, Raised Full Year 2008 EPS Guidance to $7.20-$7.50

2008 Q2 – Consolidated Financial Results

2nd Quarter Year-to-Date2007 2008 Delta ($) Delta (%) 2007 2008 Delta ($) Delta (%)

Bookings 1,053.3$ 1,310.6$ 257.3$ 24.4% 2,142.1$ 2,740.0$ 597.9$ 27.9%

Sales 930.7$ 1,157.6$ 226.9$ 24.4% 1,734.1$ 2,150.9$ 416.8$ 24.0%

Gross Profit 302.4$ 418.0$ 115.6$ 38.2% 567.9$ 763.8$ 195.9$ 34.5%Gross Margin (%) 32.5% 36.1% 360 bps 32.7% 35.5% 280 bps

SG&A 209.5$ 250.9$ 41.4$ 19.8% 413.1$ 484.0$ 70.9$ 17.2%SG&A (%) 22.5% 21.7% (80 bps) 23.8% 22.5% (130 bps)

Income from Affiliates 4.0$ 4.5$ 0.5$ 12.5% 9.6$ 10.5$ 0.9$ 9.4%

Operating Income 96.9$ 171.6$ 74.7$ 77.1% 164.3$ 290.3$ 126.0$ 76.7%Operating Margin (%) 10.4% 14.8% 440 bps 9.5% 13.5% 400 bps

Net Earnings 63.2$ 122.9$ 59.7$ 94.5% 96.8$ 210.9$ 114.1$ 117.9%

Diluted EPS* 1.11$ 2.13$ 1.02$ 91.9% 1.69$ 3.66$ 1.97$ 116.6%

* As of 6/30/08, 0.3 million shares had been repurchased in conjunction with the company’s previously announced $300 million share buyback program. * As of 6/30/08, 0.3 million shares had been repurchased in conjunction with the company’s previously announced $300 million share buyback program.

($ millions)

Mining Pulp & PaperOil / Gas Power Chemical Water

Page 19Flowserve Proprietary & Confidential

INFRASTRUCTURE INDUSTRIES

North America Latin America Europe Middle East Africa China India Rest of Asia

GLOBAL PRESENCE

GENERAL INDUSTRIESFood & Bev

Domestic32%

International73%

Bookings

Flowserve Global Presence – Q2 Year-to-Date 2008

Global Diversified Infrastructure Company

Revenue

International68%

Domestic30%

Plant Locations

International70%

Domestic32%

QRC Locations

International68%

Flowserve Internal Data

Oil and Gas36%

Power16%

Chemical20%

Water7%

GI21%

Mining Pulp & PaperOil & Gas Power Chemical Water

Page 20Flowserve Proprietary & Confidential

INFRASTRUCTURE INDUSTRIES

North America Latin America Europe Middle East Africa China India Rest of Asia

GLOBAL PRESENCE

GENERAL INDUSTRIESFood & Bev

The Oil & Gas Industry Remains Strong and is Forecasted to MaintainIts Strength for the Foreseeable Future

Flowserve 1H 08 Bookings Split

36%Oil & Gas

Sources: FLS Internal Data, WEO 2007, Global Insights, Oil & Gas Journal, Industrial Info Resources, Wall Street Journal, Financial Times – Market Chart Source is EIF adjusted to nominal dollars

Oil & Gas Industry

Total Market - Pumps, Valves & Seals

02468

101214161820

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

$ Bi

llions

Mature Markets Developing Markets

Global demand continues to drive significant infrastructure investments particularly in Asia and the Middle East

Upstream project growth is being supported by both consumption growth and projected depletion rates of mature fields

“New” oil finds will likely come predominately from fields requiring complex recovery methodologies such as tar sands, heavy oil and deep water

Downstream project growth includes increases in refining capacity to meet demand growth and refurbishment of outdated infrastructure to handle “new” oil

Pursuit of cleaner fuels continues to drive increased investments in natural gas developments

Market Perspective

Mining Pulp & PaperOil & Gas Power Chemical Water

Page 21Flowserve Proprietary & Confidential

INFRASTRUCTURE INDUSTRIES

North America Latin America Europe Middle East Africa China India Rest of Asia

GLOBAL PRESENCE

GENERAL INDUSTRIESFood & Bev

The Power Industry is Projected to be in the Early Stages of a Strong Growth Period on a Global Scale

Sources: FLS Internal Data, WEO 2007, Global Insights, Industrial Info Resources, Wall Street Journal, Financial Times – Market Chart Source is EIF adjusted to nominal dollars (fossil and nuclear only)

Power Industry

Capital spending for increased capacity is forecasted to remain robust on a global scale driven by the infrastructure expansionin developing economies

In mature markets, the aging infrastructure coupled with themore stringent emissions standards are supporting strong capital spending in the refurbishment of existing operations

Globally, a majority of the planned new generation unit projects are forecasted to be coal-fired

Environmental concerns are challenging utilities to look at natural gas and nuclear power generation

According to the World Nuclear Association, more than 100 nuclear power plants may be built by 2020

Flowserve 1H 08 Bookings Split

16%Power

Total Market - Pumps, Valves & Seals

0123456789

10

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

$ Bi

llions

Mature Markets Developing Markets

Market Perspective

Mining Pulp & PaperOil & Gas Power Chemical Water

Page 22Flowserve Proprietary & Confidential

INFRASTRUCTURE INDUSTRIES

North America Latin America Europe Middle East Africa China India Rest of Asia

GLOBAL PRESENCE

GENERAL INDUSTRIESFood & Bev

The Chemical Industry Continues to Show Strength

Sources: FLS Internal Data, Global Insights, Industrial Info Resources, Wall Street Journal, Financial Times – Market Chart Source is EIF adjusted to nominal dollars

Chemical Industry

Aggressive investments plans are forecasted for petrochemical plants in the Middle East and most of Asia, particularly China and India

China is experiencing ethylene shortages which is driving increased investments in large integrated projects placing petrochemical plants adjacent to refineries

India’s petrochemical industry is projected to increase total production 12-15% by 2012

Investments in coal gasification projects are forecasted to remain robust as the demand for oil alternatives grows

The chemical manufacturing base is projected to continue its shift to low cost regions driving investments in new plants in the Middle East and Asia

* Chemical percentage includes

Pharmaceutical

Flowserve 1H 08 Bookings Split

20%Chemical

Total Market - Pumps, Valves & Seals

0

2

4

6

8

10

12

14

16

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

$ Bi

llions

Mature Markets Developing Markets

Market Perspective

Mining Pulp & PaperOil & Gas Power Chemical Water

Page 23Flowserve Proprietary & Confidential

INFRASTRUCTURE INDUSTRIES

North America Latin America Europe Middle East Africa China India Rest of Asia

GLOBAL PRESENCE

GENERAL INDUSTRIESFood & Bev

The Water Industry Continues to Show Planned Investment Growth with Significant Investments Forecasted in the Middle East and Asia

Water IndustryGlobal demand for fresh water continues to drive strong investments in water infrastructure

Capital investments are required for increased capacity as well as refurbishment of aging and non-compliant infrastructure

The developing economies of China, India and the Middle Eastare driving significant capital spending plans for water infrastructure

Worldwide desalination capacity is projected to double between now and 2015

Desalination is becoming a more viable approach to providing potable water for many regions of the world

Initial research is showing desalination may be a better environmental choice than diverting fresh water from rivers

Flowserve 1H 08 Bookings Split

7%Water

Sources: FLS Internal Data, Global Insights, Global Water Intelligence, Industrial Info Resources, Wall Street Journal, Financial Times– Market Chart Source is EIF adjusted to nominal dollars

Total Market - Pumps, Valves & Seals

024

68

1012

141618

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

$ Bi

llions

Mature Markets Developing Markets

Market Perspective

Mining Pulp & PaperOil & Gas Power Chemical Water

Page 24Flowserve Proprietary & Confidential

INFRASTRUCTURE INDUSTRIES

North America Latin America Europe Middle East Africa China India Rest of Asia

GLOBAL PRESENCE

GENERAL INDUSTRIESFood & Bev

Flowserve Continues Achieving Successful Organic Growth in this Collection of Growing Industries with Its Application Specific Products & Services

General IndustriesStrong investments continue to be forecasted for the mining and ore processing industry particularly in Asia, Latin America and South Africa

Increasing demand for electricity in developing markets is driving an increased need for coal which is opening closed mines and increasing investments in new mines

The rising price of oil is providing support for continuedinvestments in alternative fuels which is forecasted to drive growth in biofuels

The significant investment plans for the economic development of the Middle East is projected to drive increased investments in district cooling

Specialty products designed for pulp and paper applications continue to grow in Asia and Latin America

Sources: FLS Internal Data, Global Insights, Global Water Intelligence, Industrial Info Resources, Wall Street Journal, Financial Times – Market Chart Source is EIF adjusted to nominal dollars (mining, pulp & paper and food & beverage only)

*This category includes mining & ore processing, pulp & paper, food & beverage, steam systems, district heating & cooling, agriculture and government orders. Genera l industries also includes sales to distributors, whose end customers operate in the industries we primarily serve.

Flowserve 1H 08 Bookings Split

21%General

Industries *

Total Market - Pumps, Valves & Seals

0

2

4

6

8

10

12

14

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

$ Bi

llions

Mature Markets Developing Markets

Market Perspective

MiningOil & Gas Power Chemical Water

Page 25Flowserve Proprietary & Confidential

INFRASTRUCTURE INDUSTRIES

North America Latin America Europe Middle East Africa China India Rest of Asia

GLOBAL PRESENCE

Food & Bev Pulp & PaperGENERAL INDUSTRIES

Strength in Large Projects Around the World Continues

Mining Pulp & PaperOil & Gas Power Chemical Water

Page 26Flowserve Proprietary & Confidential

INFRASTRUCTURE INDUSTRIES

North America Latin America Europe Middle East Africa China India Rest of Asia

GLOBAL PRESENCE

GENERAL INDUSTRIESFood & Bev

Market OutlookStrong global infrastructure investment should continue to drive significant opportunities for growthStrong momentum from 2007, using our global footprint and Quick Response Centers (QRCs) to support our customers’ growth

Financial FocusStrong financial performance in Bookings, Revenue, Operating Income, Operating Margin and Earnings-Per-ShareEffective operational excellence initiatives such as On-Time Delivery, Product Performance and Reliability

Business FocusBuild sustainable, long term relationships with our customersCreate a win-win, low cost of ownership model for our customersStrategic Deployment of Assets and Resources to provide “local” support with global expertise for our customers worldwideShareholder and employee goals are tightly aligned by continuing to link compensation to performance

Execution, Execution, Execution!

Continuing to Execute on Our Strategies

Mining Pulp & PaperOil & Gas Power Chemical Water

Page 27Flowserve Proprietary & Confidential

INFRASTRUCTURE INDUSTRIES

North America Latin America Europe Middle East Africa China India Rest of Asia

GLOBAL PRESENCE

GENERAL INDUSTRIESFood & Bev

Financial Update

Mining Pulp & PaperOil & Gas Power Chemical Water

Page 28Flowserve Proprietary & Confidential

INFRASTRUCTURE INDUSTRIES

North America Latin America Europe Middle East Africa China India Rest of Asia

GLOBAL PRESENCE

GENERAL INDUSTRIESFood & Bev

Continuing Record Financial Performance

2008 Q2 – Consolidated Financial Results

2nd Quarter Year-to-Date2007 2008 Delta ($) Delta (%) 2007 2008 Delta ($) Delta (%)

Bookings 1,053.3$ 1,310.6$ 257.3$ 24.4% 2,142.1$ 2,740.0$ 597.9$ 27.9%

Sales 930.7$ 1,157.6$ 226.9$ 24.4% 1,734.1$ 2,150.9$ 416.8$ 24.0%

Gross Profit 302.4$ 418.0$ 115.6$ 38.2% 567.9$ 763.8$ 195.9$ 34.5%Gross Margin (%) 32.5% 36.1% 360 bps 32.7% 35.5% 280 bps

SG&A 209.5$ 250.9$ 41.4$ 19.8% 413.1$ 484.0$ 70.9$ 17.2%SG&A (%) 22.5% 21.7% (80 bps) 23.8% 22.5% (130 bps)

Income from Affiliates 4.0$ 4.5$ 0.5$ 12.5% 9.6$ 10.5$ 0.9$ 9.4%

Operating Income 96.9$ 171.6$ 74.7$ 77.1% 164.3$ 290.3$ 126.0$ 76.7%Operating Margin (%) 10.4% 14.8% 440 bps 9.5% 13.5% 400 bps

Net Earnings 63.2$ 122.9$ 59.7$ 94.5% 96.8$ 210.9$ 114.1$ 117.9%

Diluted EPS* 1.11$ 2.13$ 1.02$ 91.9% 1.69$ 3.66$ 1.97$ 116.6%

* As of 6/30/08, 0.3 million shares had been repurchased in conjunction with the company’s previously announced $300 million share buyback program.

($ millions)

Mining Pulp & PaperOil & Gas Power Chemical Water

Page 29Flowserve Proprietary & Confidential

INFRASTRUCTURE INDUSTRIES

North America Latin America Europe Middle East Africa China India Rest of Asia

GLOBAL PRESENCE

GENERAL INDUSTRIESFood & Bev

Flowserve Pump Division – Q2 Segment Results

Strong Q2 Bookings, Sales, Gross Margin and Operating Margin

($ millions)

2nd Quarter Year-to-Date2007 2008 Delta ($) Delta (%) 2007 2008 Delta ($) Delta (%)

Bookings 616.2$ 736.4$ 120.2$ 19.5% 1,274.4$ 1,626.7$ 352.3$ 27.6%

Sales 525.2$ 633.2$ 108.0$ 20.6% 943.8$ 1,194.3$ 250.5$ 26.5%

Gross Profit 144.1$ 206.0$ 61.9$ 43.0% 261.1$ 380.6$ 119.5$ 45.8%Gross Margin (%) 27.4% 32.5% 510 bps 27.7% 31.9% 420 bps

SG&A 80.0$ 103.8$ 23.8$ 29.7% 156.9$ 200.4$ 43.5$ 27.7%SG&A (%) 15.2% 16.4% 120 bps 16.6% 16.8% 20 bps

Income from Affiliates 1.3$ 1.2$ (0.1)$ (7.7%) 2.8$ 1.7$ (1.1)$ (39.3%)

Operating Income 65.2$ 103.4$ 38.2$ 58.6% 107.0$ 181.8$ 74.8$ 69.9%Operating Margin (%) 12.4% 16.3% 390 bps 11.3% 15.2% 390 bps

Mining Pulp & PaperOil & Gas Power Chemical Water

Page 30Flowserve Proprietary & Confidential

INFRASTRUCTURE INDUSTRIES

North America Latin America Europe Middle East Africa China India Rest of Asia

GLOBAL PRESENCE

GENERAL INDUSTRIESFood & Bev

+32% AM Growth

Significant growth in both OE and AM

Flowserve Pump Division – Q2 Segment Results

200 bps shift in AM sales

2nd Quarter Year-to-Date2007 2008 Delta ($) Delta (%) 2007 2008 Delta ($) Delta (%)

OE 394 461 67 17% 825 1,084 259 31%Bookings 64% 63% 65% 67%

MixAM 222 275 53 24% 449 543 94 21%

36% 37% 35% 33%OE 322 374 52 17% 566 695 129 23%

Sales 61% 59% 60% 58%Mix

AM 203 259 56 29% 378 499 121 32%39% 41% 40% 42%

($ millions)

Mining Pulp & PaperOil & Gas Power Chemical Water

Page 31Flowserve Proprietary & Confidential

INFRASTRUCTURE INDUSTRIES

North America Latin America Europe Middle East Africa China India Rest of Asia

GLOBAL PRESENCE

GENERAL INDUSTRIESFood & Bev

Flow Control Division – Q2 Segment Results

Strong Q2 Bookings, Sales, Gross Margin and Operating Margin

($ millions)

2nd Quarter Year-to-Date2007 2008 Delta ($) Delta (%) 2007 2008 Delta ($) Delta (%)

Bookings 314.9$ 429.6$ 114.7$ 36.4% 624.0$ 819.5$ 195.5$ 31.3%

Sales 285.1$ 370.2$ 85.1$ 29.8% 553.7$ 670.5$ 116.8$ 21.1%

Gross Profit 101.4$ 132.9$ 31.5$ 31.1% 194.5$ 239.1$ 44.6$ 22.9%Gross Margin (%) 35.6% 35.9% 30 bps 35.1% 35.7% 60 bps

SG&A 61.4$ 71.7$ 10.3$ 16.8% 120.0$ 138.5$ 18.5$ 15.4%SG&A (%) 21.5% 19.4% (210 bps) 21.7% 20.7% (100 bps)

Income from Affiliates 1.0$ 1.5$ 0.5$ 50.0% 3.1$ 5.4$ 2.3$ 74.2%

Operating Income 41.1$ 62.8$ 21.7$ 52.8% 77.5$ 106.0$ 28.5$ 36.8%Operating Margin (%) 14.4% 17.0% 260 bps 14.0% 15.8% 180 bps

Mining Pulp & PaperOil & Gas Power Chemical Water

Page 32Flowserve Proprietary & Confidential

INFRASTRUCTURE INDUSTRIES

North America Latin America Europe Middle East Africa China India Rest of Asia

GLOBAL PRESENCE

GENERAL INDUSTRIESFood & Bev

Investment in QRC Expansion Supporting Strong Bookings and Sales Growth

Flow Solutions Division – Q2 Segment Results ($ millions)

2nd Quarter Year-to-Date2007 2008 Delta ($) Delta (%) 2007 2008 Delta ($) Delta (%)

Bookings 138.4$ 169.5$ 31.1$ 22.5% 279.0$ 340.8$ 61.8$ 22.2%

Sales 134.5$ 174.0$ 39.5$ 29.4% 263.7$ 324.6$ 60.9$ 23.1%

Gross Profit 61.2$ 79.6$ 18.4$ 30.1% 118.4$ 145.6$ 27.2$ 23.0%Gross Margin (%) 45.5% 45.7% 20 bps 44.9% 44.9% 0 bps

SG&A 36.9$ 43.8$ 6.9$ 18.7% 71.1$ 85.4$ 14.3$ 20.1%SG&A (%) 27.5% 25.2% (230 bps) 27.0% 26.3% (70 bps)

Income from Affiliates 1.7$ 1.8$ 0.1$ 5.9% 3.7$ 3.7$ -$ 0.0%

Operating Income 25.9$ 37.5$ 11.6$ 44.8% 51.0$ 63.9$ 12.9$ 25.3%Operating Margin (%) 19.2% 21.6% 240 bps 19.3% 19.7% 40 bps

Mining Pulp & PaperOil & Gas Power Chemical Water

Page 33Flowserve Proprietary & Confidential

INFRASTRUCTURE INDUSTRIES

North America Latin America Europe Middle East Africa China India Rest of Asia

GLOBAL PRESENCE

GENERAL INDUSTRIESFood & Bev

Working Capital to Support Growth in Bookings*** Advance cash commitments from customers to fund working capital; Q2 2008 YTD included $7 million related to Niigata Worthington acquisition** Q2 2008 YTD included impact of $25 million primary working capital related to Niigata Worthington acquisition

Balances for Quarter-End Periods as a % of Trailing Twelve Months Sales

Q2 Primary Working Capital

Q2 2007 12/31/07 Q2 2008($Mil) $ % $ % $ %

Receivables* 664 19.6% 667 17.7% 920 22.0%

Inventory 681 20.1% 680 18.1% 893 21.4%

Payables (405) (12.0%) (513) (13.6%) (491) (11.7%)

Primary Working Capital** 940 27.7% 834 22.2% 1,322 31.7%

Advance Cash*** (178) (5.3%) (252) (6.7%) (348) (8.3%)

Total 762 22.4% 582 15.5% 974 23.4%

Backlog 2,074 2,277 3,047

($ millions)

* Q2 2008 YTD included impact of receivable factoring elimination of approximately $67 million

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Q1 Q2 Year-to-Date2008 2008 2007 2008

Net Income 88 123 97 211 Non-cash expenses 10 32 39 42

Increase in Working Capital* (272) (116) (212) (388) Other** 1 (44) 14 (43)

Total Operating Activities (173) (5) (62) (178)

Capital expenditures (14) (24) (46) (38) Other 1 4 2 5

Total Investing Activities (13) (20) (44) (33)

Net borrowings under lines of credit - - 115 - Dividends (9) (14) (9) (23)

Proceeds of debt or other 8 10 11 18 Repurchase of common shares - (35) (45) (35)

Proceeds from stock option activity 8 2 13 10 Total Financing Activities 7 (37) 85 (30)

Effect of exchange rates 6 1 2 7 Net Decrease in Cash (173) (61) (19) (234)

Q2 Cash Flows

** Q2 2008 included $50 million optional contribution to U.S. pension plan

($ millions)

* Q2 2008 included $27 million impact of receivable factoring elimination; Q2 2008 YTD included $67 million impact of receivable factoring elimination and $25 million of primary working capital impact related to Niigata Worthington acquisition

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FY2008 Outlook

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YEYE

YE

YE

YE

$0

$1

$2

$3

$4

$5

$6

$7

$8

2004 2005 2006 2007 2008 Target

(As of 7/30/2008)2008 EPS Target

$7.20 - $7.50

$0.52$0.91

$2.00

$4.46

EPS ImprovementTraction on Key Initiatives

-

+ + ++

Business Segment Mix

OE/ AftermarketMix

Material Price Increase

Volume Leverage

Low Cost Sourcing

Operational Excellence

Pricing

- -

Negative impact Positive impact

- -

++

ERP Implementation

Selling Exp. Tied to Strong Bookings

ReducedCompliance Costs

Tight HC Mgmt

-

OE/AM &Segment mix

Division SG&A Red’n

- -

Scaling on Corp. Overhead

Estimated

structural

tax rate of

29% plus

benefits of

200 - 400

basis points

in 2008

resulting

from certain

tax items

OrganicSales Growth

SG&

AG

ross

Mar

gin

+End User Strategy

+

Tax Rate

-

Drivers of EPS Growth

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Raising our 2008 EPS target to between $7.20 and $7.50 based on strength of Q2 performance, improved visibility and strengthened outlook for FY 2008

Expect ongoing global infrastructure investments in core markets to present significant future opportunities in 2008 and beyond

Maintain focus on globalizing our assets to drive capacity needed to support growth of developing markets around the world

Continued focus on driving strong end-user aftermarket strategy and taking share

Driving cost containment, gross margin improvement and tax planning strategies to deliver strong operating profit and EPS

Maintain financial flexibility (stock buyback, dividends, acquisitions, etc.) through focus on delivering strong cash flow

Expect FY 2008 structural tax rate of approximately 29% or less going forward, and in addition we see benefits of 200-400 basis points in 2008 resulting from certain tax planning strategies and other tax items

Execution remains biggest key to success

Very Positive Outlook for FY 2008 with Continued Focus on Execution

Looking Forward (As of 7/30/2008)

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Questions and Answers