Franklin Electric Co., Inc. · NASDAQ:FELE
Franklin Electric — Investor Presentation (August 2023)
24 slides from Franklin Electric's investor presentation, Aug 3, 2023
Slide 1: Investor Presentation
Investor Presentation Gregg Sengstack, Chairperson and CEO is Franklin Electric Jeff Taylor, VP — Chief Financial Officer August 2023
Slide 2: Safe Harbor Statement
= ia) 2 2 3 5 @ 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 r
Slide 3: Strategic Focus
MM idle RAMS. 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. (is Franklin Electric ig
Slide 4: Investment Highlights
Franklin Electric Investment Highlights. market position in groundwater pumping systems Track record of across segments Advantageous to extend leadership and capture revenue in developing markets Strong balance sheet with and opportunity for investment 2 History of returning capital to shareholders;
Slide 5: Franklin Electric Segment Overview (Revenue FY 2022)
@ Franklin Electric Franklin Electric Segment Overview (Revenue FY 2022) DISTRIBUTION FUELING SYSTEMS $668M (31%) $334M (15%) REYWATER ——
Slide 6: Performance by Segment
®& Franklin Electric 4 Performance by Segment?? NET SALES GROWTH Q2 2023 YoY $321.7M up 4% (8% organic growth) First Half 2023 YoY $628.3M up 8% (12% organic growth) NET SALES GROWTH Q2 2023 YoY $193.1M up 1% (1% organic growth) First Half 2023 YoY $336.1M up 3% (3% organic growth) NET SALES GROWTH
Slide 7: Global Presence & Opportunity
@ Franklin Electric Global Presence & Opportunity On a daily basis, the world uses... — oe nw enn: gallons of : 3 Trillion fresh water Se ww enpe gallons of ep? 1 Billion =, A To meet this demand, Franklin Electric produces 20,000 pumps, motors, drives, F 4 and controls daily . i ~6,500 employees io
Slide 8: Water Systems
< A } Franklin Electric 4 Water Systems WATER SYSTEMS Water treatment brands acquired Headwater Distribution Residential, agricultural, municipal and industrial AQUA PURONICS n applications SYSTEMS ¥ sd Hellenbrand Water Treatment Waterite fou sue = od sais! ST High fragmentation of water treatment
Slide 9: Fueling Systems
@ Franklin Electric Fueling Systems FUELING SYSTEMS Adv. us Position in Transitioning Global passenger vehicle fleet by drivetrain - Economic Leader in fuel pumping, containment, and monitoring and Tisvialtbow SSenurto control systems Billion 1.6 Battery Fuel Systems a electric . . . . Plug-in ¢ Adv
Slide 10: Corporate Stewardship
< A } Franklin Electric 4 Corporate Stewardship Our Vision To be an indispensable partner to our customers Q Commitment to Safety Promote a culture of continuous health and safety training + Engagement across all levels + Prioritize employee health and wellness + Actively monitoring progress by Seni
Slide 11: Customer-focused innovation
* Customer-focused innovation Continue i) drive organic ¢ Enhance position in industrial channel * 10 year Developing Region Growth CAGR of 7% growth * Drive synergies through the entire U.S. Groundwater Pro channel Maintain competitive ¢ Extend leadership position via quality, availability and cost
Slide 12: Capital Allocation Performance & Priorities
@ Franklin Electric Capital Allocation Performance & Priorities Priorities for Cash Deployment Share Repurchases 15% Reinvestment in business to drive Dividends 2007 — 2022 18% FCF Deployment organic growth Dividends paid CAGR of 9% (2007 to 2022) Opportunistic share repurchases {a) At 12/31/22 12
Slide 13: Acquisitions are a critical engine for growth
< A } Franklin Electric = a \ Acquisitions are a critical engine for growth . . More FELE-branded products in Product Line Extensions a distribution Geographic Expansion New platforms rida to extend v¥ Demonstrated ability to grow and drive incremental operating margins v Focus on risk adjusted IRR
Slide 14: Financial Performance Summary
Financial Performance Summary (is Franklin Electric 14
Slide 15: Financial Performance Summary
@ Franklin Electric Financial Performance Summary? Consolidated Sales ($M) $2,044 $1,662 $1,298 $1,315 $1,247 ' 2018 2019 2020 2021 2022 EPS $3.97 $3.25 $2.23 §2.03 $2.14 a 2018 2019 2020 2021 2022 1ROIC based on after-tax calculation 7Non-GAAP financial metrics referenced in this slide include ROIC
Slide 16: Cash Generation & Returns
@ Franklin Electric Cash Generation & Returns* Net Income ($M) Free Cash Flow ($M)! $189 $189 $155 $156 $106 $96 $101 $107 $101 LJ L| 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Free Cash Flow Conversion ROIC? 187% 163% 16.4% 13.8% 12.2% 12.0% 12.6% 101% 65% || = 2018 2019 2020 2021° 2022° 201
Slide 17: Organic Sales Growth
@ Franklin Electric Organic Sales Growth :2 | Water Fueling m Distribution 40.0% 35.4% 30.0% 21.5% 19.6% 20.0% 18.6% 719 17.4% 15.0% 12.5% 10.0% 8.1% -0.1% -2.5% 10.0% -20.0% -16.7% 2018 2019 2020 2021 2022 1 Excludes acquisitions for one year and the impact of foreign currency translation. 2Non-GAA
Slide 18: Non-GAAP Reconciliations
Non-GAAP Reconciliations (is Franklin Electric 18
Slide 19: Non-GAAP Reconciliations
@ Franklin Electric 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 princ
Slide 20: Reconciliation of Non-GAAP Financial Measure: Net Debt to Adjusted EBITDA
cs Franklin Electric Reconciliation of Non-GAAP Financial Measure Net Debt to Adjusted EBITDA $n millions Total debt Less: cash and cash equivalents Net debt Net income Depreciation and amortization Income tax expense Interest expense EBITDA Net debt to EBITDA As of June 30, 2023 248.5 (53.2) 195.3,
Slide 21: Reconciliation of Non-GAAP Financial Measure: Operating Cash Flow to Free Cash Flow
@ Franklin Electric Reconciliation of Non-GAAP Financial Measure Sporating Cash Flow to Free Cash Flow in thousands 2022 2021 2020 2019 2018 Cash flows from operating activities 101,674 129,763 211,854 177,676 128,435 Cash flows from investing activities (43,074) (264,805) (78,811) (41,806) (66,292)
Slide 22: Reconciliation of Non-GAAP Financial Measure: Reported to Organic Sales Growth
@ Franklin Electric Reconciliation of Non-GAAP Financial Measure Reported Sales Growth to Organic Sales Growth Net Sales Organic Net Sales Organic Growth % Growth Growth % Growth asReported Acquisitions% __ FX% %t as Reported Acquisitions% __ FX% %* Q2 2023 2021 Water 4 = 4 8 Water 31 (13) 1 19 Fuel
Slide 23: Reconciliation of Non-GAAP Financial Measure: Return on Invested Capital
@ Franklin Electric Reconciliation of Non-GAAP Financial Measure Return on Invested Capital ROIC) In millions Net Operating Income After Tax 2022 2021 2020 2019 2018 Operating income $ 257.2 $ 189.2 $ 1305 $ 127.1 $ 132.0 Income tax on operating income 54.0 37.8 27.9 25.6 24.7 Net operating income a
Slide 24: Moving Forward. For More Information
GFUEL MOVING FORWARD. For More Information: Jeff Taylor, VP — CFO, Franklin Electric Co. Inc. @r ranklin Electric ieffery.taylor@fele.com. 260-827-5520 23
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