Franklin Electric Co., Inc. · NASDAQ:FELE
Franklin Electric — Shareholder Meeting (May 2019)
18 slides from Franklin Electric's shareholder meeting presentation, May 3, 2019
Slide 1: Moving Water. Moving Fuel. Moving Forward.
MOVING WATER. MOVING FUEL. MOVING FORWARD.
Slide 2: 2019 Shareholders Meeting
2019 Shareholders Meeting Gregg Sengstack, Chairman and CEO | May 2019
Slide 3: Safe Harbor Statement
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 reductions, profit margins, invento
Slide 4: First Quarter 2019 Results
First Quarter 2019 Results (Amounts in millions except share data) Sales E.P.S. Operating Cash Flow (before restructuring) $300.0 $0.50 $‐ $295.6 $0.45 $290.7 $0.40 $(5.0) $(2.9) $(10.0) $0.30 $275.0 $(15.0) $0.21 $0.20 $(20.0) $0.10 $(25.0) $(30.0) $(27.2) $250.0 $‐ Q1 2018 Q1 2019 Q1 2018 Q1 2019
Slide 5: Strategic Focus: global provider of water and fuel systems
STRATEGIC FOCUS: To grow as a global provider of water and fuel systems, through geographic expansion and product line extensions, leveraging our global platform and competency in system design. 5
Slide 6: Strategic Focus
Strategic Focus Residential, Agricultural, Commercial Water Systems Complete Fueling Systems $6.0 B Global Market Potential(1) $1.2 B Global Market Potential(1) Strong Brand Franchise Mission Critical Products and Systems #1 or #2 in Addressable Markets Applications with High Cost of Downtime Growin
Slide 7: Franklin Electric – Revenue Sources
Franklin Electric – Revenue Sources WATER SYSTEMS FUELING SYSTEMS DISTRIBUTION $800M (60%) $285M (20%) $270M (20%) 7
Slide 8: Global Footprint
Global Footprint Locations with 50+ employees 8
Slide 9: Sales in Developing Regions
Sales in Developing Regions Constant Currency $550 $500 $533 $500 $450 $481 $459 $400 $413 $350 ($ in millions) $356 $335 $300 $286 $250 $246 $200 $218 $150 $100 $50 $0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 9
Slide 10: Headwater Companies
Headwater Companies • Extend our position in groundwater • Move closer to contractor • Optimize supply chain • Opportunities to move into adjacencies: • Filtration • Treatment • Irrigation • Commercial 10
Slide 11: Product Line Extensions
Product Line Extensions Water Systems Fueling Systems 11
Slide 12: Innovations in Water Systems
Innovations in Water Systems INLINE DELTA High Efficiency Variable Frequency Drives High Efficiency PRESSURE BOOSTER PERMANENT MAGNET with Bluetooth‐Enabled SUBMERSIBLE PUMPS MOTORS Mobile Apps High‐Rise Buildings & Light 4 & 6 inch encapsulated Residential/Commercial HVAC, Patent‐pending design Ind
Slide 13: Innovations in Fueling Systems
Innovations in Fueling Systems EVO 200/400 FFS PRO Verify Corrosion Control FUEL MANAGEMENT Installation Quality Assurance In‐tank & In‐Sump Corrosion Control 2018 Sales of $4 Million Cloud service that provides Mitigates corrosion and remote installation quality protects sites from its 2019 Sales o
Slide 14: Organic Sales Growth
Organic Sales Growth(a) 20.0% 15.0% 15.0% 11.7% 9.8% 10.0% 8.6% 7.8% 8.2% 8.1% 5.1% 5.2% 5.1% 5.0% 3.8% 2.1% 2.5% 0.0% 2014 2015 2016 2017 2018 ‐5.0% ‐5.2% ‐7.2% ‐10.0% Water Fueling Consolidated (a) Organic sales growth for FE Water and Fueling Systems segments only. Excludes acquisitions for one y
Slide 15: Sales & EPS
Sales & EPS Consolidated Sales EPS (before restructuring) $1,400 $2.50 $1,298 $2.26 $1,200 $1,125 $1,048 $2.00 $1.92 $1,000 $925 $950 $1.65 $1.64 $1.54 ($ in millions) $1.50 $800 $600 $1.00 $400 $0.50 $200 $‐ $‐ 2014 2015 2016 2017 2018 2014 2015 2016 2017* 2018 *2017: EPS (Before Restructuring and
Slide 16: Cash Flow
Cash Flow $120 $106 $107 $100 $82 $79 $78 $80 $76 $73 $70 ($ in millions) $60 $40 $34 $20 $12 $‐ 2014 2015 2016 2017 2018 Net Income FCF (Cash Flow from Operations less net Capital Expenditures) 16
Slide 17: ROIC & Dividends
ROIC & Dividends ROIC(a) Dividends ($ per Share) 16.5% $0.50 16.0% 16.0% $0.45 $0.40 15.5% 15.0% $0.35 15.0% 14.7% 14.5% $0.30 14.5% $0.25 14.0% $0.20 13.5% 13.5% $0.15 13.0% $0.10 12.5% $0.05 12.0% $‐ 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 201
Slide 18: 2019 Shareholders Meeting
2019 Shareholders Meeting Gregg Sengstack, Chairman and CEO | May 2019