Franklin Electric Co., Inc. · NASDAQ:FELE
Franklin Electric — Investor Presentation (July 2024)
24 slides from Franklin Electric's investor presentation, Jul 24, 2024
Slide 1: Investor Presentation July 2024
Investor Presentation July 2024 @ Franklin Electric
Slide 2: Safe Harbor Statement
Se. “ee eg | 2 @ Franklin Electric SAFE HARBOR STATEMENT: "Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including those relating to market conditions or the Company’s financial results, costs, expenses or expense
Slide 3: Strategic Focus
“M.S: ob iae U STRATEGIC FOCUS: To grow as a global provider of water, fuel and critical asset monitoring systems, through geographic expansion and product line extensions, leveraging our global platform and competency in system design. & Franklin Electric
Slide 4: Investment Highlights
@ Franklin Electric Investment Highlights! «= market position in groundwater pumping systems Track record of Stent Organic growth — (6 Cos Advantageous - |: to extend leadership and capture revenue in developing markets Strong balance sheet with |- |: : ‘> and opportunity for investment 2 History of
Slide 5: Customer-focused innovation
* Customer-focused innovation Continue to drive organic ¢ Enhance position in industrial channel * 10 year Developing Region Growth CAGR of 8% growth * Drive synergies through the entire U.S. Groundwater Pro channel Maintain competitive advantages that lead to operational efficiencies Extend leaders
Slide 6: Performance by Segment
q A > Franklin Electric 4 Performance by Segment?23 WATER SYSTEMS DISTRIBUTION FUE NET SALES NET SALES NET SALES Q2 2024 YoY Q2 2024 YoY Q2 2024 YoY $315.6M down 2% $190.5M down 1% $73.1M down 9% (2% organic decline) (4% organic decline) (9% organic decline) First Half 2024 YoY First Half 2024 YoY F
Slide 7: Franklin Electric Segment Overview (Revenue FY 2023)
} Franklin Electric Franklin Electric Segment Overview (Revenue FY 2023) WATER SYSTEMS DISTRIBUTION FUELING SYSTEMS $1,204M Ebel $673M (31%) $297M (14%)
Slide 8: Global Presence & Opportunity
& Franklin Electric 4 Global Presence & Opportunity On a daily basis, the world uses... ~3 Trillion @°"" fresh water w~w ene gallons of 1 Billion To meet this demand, Franklin Electric produces 20,000 pumps, motors, drives, and controls daily e 2 ry OVER 6,500 EMPLOYEES kh ~6,500 employees ’ LOCATED
Slide 9: Water Systems
®& Franklin Electric WV Water Systems WATER TRANSFER/PUMPING SYSTEMS WATER TREATMENT ¢ A leading global provider of complete water systems, including water well pumping systems, HVAC condensate removal, agricultural pumping systems, sump, sewage and effluent pumps, mobile pumping systems and control
Slide 10: The Leading Source in Water Systems Distribution
& Franklin Electric 4 [i ccc bd veapwarer @ 2 “@ = =) @ =) = ay The Leading Source in Water Systems Distribution Headwater Companies invests in and operates wholesale distribution companies serving professional contractors in residential, agricultural ry ry and commercial, industrial and municipal m
Slide 11: Fueling Systems
q A > Franklin Electric 4 Fueling Systems FUELING SYSTEMS Advantageous Position in Global passenger vehicle fleet by drivetrain - Economic Transition Scenario Leader in fuel pumping, containment, and monitoring and control systems Billion 16 Battery Fuel Systems 4A electric ; _ ; Plug-in ¢ Advances
Slide 12: Our Vision
q A > Franklin Electric 4 Our Vision To be an indispensable partner to our customers QD Commitment to Safety Promote a culture of continuous health and safety training Engagement across all levels * Prioritize employee health and wellness + Active progress monitoring by Senior Management PS Operatio
Slide 13: Capital Allocation Performance & Priorities
(9 Franklin Electric Capital Allocation Performance & Priorities Share Repurchases 16% 2007 - 2023 18% FCF Deployment! Dividends 1 At 6/30/24 based on maximum leverage allowed in existing credit agreements Priorities for Cash Deployment Reinvestment in business to drive organic growth Dividends paid
Slide 14: Acquisitions are a critical engine for growth
(9 Franklin Electric . Acquisitions are a critical engine for growth Expanding our portfolio in adjacent products Product Line Extensions Leverage our global footprint to drive growth ¥ Demonstrated ability to grow and drive incremental operating margins Geographic Expansion Y Focus on risk adjusted
Slide 15: Financial Performance Summary
@ Franklin Electric Financial Performance Summary
Slide 16: Financial Performance Summary
(9 Franklin Electric Financial Performance Summary? Consolidated Sales (SM) $2,044 $2,065 4 ? . 6 19% $1,662 $1315 $1,247 N EVENL EPS CAGR FY2019-2023 2019 2020 2021 2022 2023 EPS $3.97 $4.11 $3.25 - . Oo a 2019 2020 2021 2022 2023 1 ROIC based on after-tax calculation *Non-GAAP financial metrics re
Slide 17: Cash Generation & Returns
@ Franklin Electric Cash Generation & Returns? Net Income ($M) Free Cash Flow (SM)! $276 $189 $195 $155 $189 $156 $96 $101 $101 [| | | - 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Free Cash Flow Conversion ROIC? 187% 9 163% - 16.4% 17.2% 142% i Box 12.6% a 65% 32% 2019 2020 2021? 2022° 2023 2
Slide 18: Non-GAAP Reconciliations
@ Franklin Electric Non-GAAP Reconciliations
Slide 19: Non-GAAP Reconciliations
q Q > Franklin Electric 4 Non-GAAP Reconciliations To supplement Franklin Electric’s consolidated financial statements presented on a U.S. GAAP basis, the company discloses certain non-GAAP financial measures. These non-GAAP financial measures are not in accordance with generally accepted accounting
Slide 20: Reconciliation of Non-GAAP Financial Measure: Net Debt to Adjusted EBITDA
& Franklin Electric 4 Reconciliation of Non-GAAP Financial Measure Net Debt to Adjusted EBITDA $ In millions As of June 30, 2024 Total debt $ 129.6 Less: cash and cash equivalents (58.1) Net debt $ 715 Six months ended Year ended Six months ended Twelve months ended June 30, 2024 December 31, 2023 J
Slide 21: Reconciliation of Non-GAAP Financial Measure: Operating Cash Flow to Free Cash Flow
q Q > Franklin Electric 4 Reconciliation of Non-GAAP Financial Measure Operating Cash Flow to Free Cash Flow $ in millions Year Ended December 31, Six Months Ended June 30, 2023 2022 2021 2020 2019 2024 2023 Cash flows from operating activities $315.7 $ 1017 $ 1298 $ 2119 $ 1777 $ 30 $ 430 Cash flow
Slide 22: Reconciliation of Non-GAAP Financial Measure: Organic Sales Growth
& Franklin Electric 4 Reconciliation of Non-GAAP Financial Measure Reported sales growth to organic sales growth Net Sales Growth % Organic as Acquisitions Growth Reported % FX% %* Q2 2024 Consolidated (5) (2) 1 (5) Water (2) 1) 2 (2) Fueling (9) : - (3) Distribution (y) (2) . (4) Q2 YTD 2024 Consol
Slide 23: Reconciliation of Non-GAAP Financial Measure: ROIC
q Q > Franklin Electric 4 Reconciliation of Non-GAAP Financial Measure Return on Invested Capital (ROIC) $ In millions Net Operating Income After Tax 2023 2022 2021 2020 2019 Operating income § 262.4 § 257.2 § 189.2 § 130.5 § 127.1 Income tax on operating income 52.5 54.0 37.8 27.9 25.6 Net operatin
Slide 24: Thank You
& Franklin Electric 4 THANK YOU 7 1 De Jeffery L. Taylor, VP, CFO Franklin Electric Co., Inc. InvestorRelations@fele.com 260-827-5520
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