Franklin Electric Co., Inc. · NASDAQ:FELE
Franklin Electric — Investor Presentation (October 2022)
18 slides from Franklin Electric's investor presentation, Oct 28, 2022
Slide 1: Investor Presentation 4Q-2022
Investor Presentation 4Q-2022 Gregg Sengstack, Chairperson and CEO is Franklin Electric Jeff Taylor, VP — Chief Financial Officer October 2022
Slide 2: Safe Harbor Statement
ma fa 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 reducti
Slide 3: Strategic Focus
MP aS Lise 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. ® Franklin Electric
Slide 4: Investment Highlights
Investment Highlights: market position in groundwater pumping systems Track record of [ across segments Advantageous - p to extend leadership and capture revenue in developing markets Proven cash flow generation with srow / since 2017 (5 yr. CAGR) Strong balance sheet with bt-to } ‘= and opportunity
Slide 5: Segments: Water, Fueling Systems, Distribution
DISTRIBUTION FUELING SYSTEMS $497.6M (28%) $289.1M (17%)
Slide 6: Performance by Segment
< A } Franklin Electric 4 Performance by Segment? NET SALES GROWTH Q3 2022 YoY $293.1M up 12% (19% organic growth) YTD9 2022 YoY $876.2M up 24% (24% organic growth) NET SALES GROWTH Q3 2022 YoY $193.2 up 38% YTD9 2022 YoY $519.2M up 36% (22% organic growth) (22% organic growth) NET SALES GROWTH Q3 2
Slide 7: Global Presence & Opportunity
@ Franklin Electric Global Presence & Opportunity On a daily basis, the world uses... “3 Trillion 2°" fresh water “1 Billion #°"" fuel To meet this demand, Franklin Electric produces 20,000 pumps, motors, drives, : , and controls daily . 7 6,200+ employees @® GLOBAL HEADQUARTERS 20+ countries (@ MAN
Slide 8: Water Systems
q A } Franklin Electric 4 Water Systems WATER SYSTEMS Water treatment brands acquired Residential, agricultural, municipal and industrial AQUA PURONICS: applications SYSTEMS a Hellenbrand Water Treatment Waterite P pe ae = [ miiiareened aE s * High fragmentation of water treatment providers in indst
Slide 9: Fueling Systems
FUELING S EMS Global passenger vehicle fleet by drivetrain - Economic Transition Scenario Leader in fuel pumping, containment, and monitoring and control systems Billion 1.6 Battery Fuel Systems 14 electric ; _ . , Plug-i * Advances in petroleum piping and containment systems, 12 hybrid. electronic
Slide 10: Our Vision
q A } Franklin Electric 4 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 Senior Management Continuo
Slide 11: Strategic Priorities
q A } Franklin Electric 4 Strategic Priorities Customer-focused innovation Enhance position in industrial channel 10 year Developing Region Growth CAGR of 8% Drive synergies through the entire U.S. Groundwater Pro channel Continue to drive organic growth Maintain competitive * Extend leadership posi
Slide 12: Capital Allocation Performance & Priorities
@ Franklin Electric Capital Allocation Performance & Priorities Priorities for Cash Deployment Share Repurchases 14% Reinvestment in business to drive Dividends ae 2007 — 2021 FCF Deployment ; organic growth Dividends paid CAGR of 8% (2007 to 2021) Opportunistic share repurchases (a) At 12/31/21 12
Slide 13: Acquisitions are a critical engine for growth
®& Franklin Electric . vi a: aa 5 Acquisitions are a critical engine for growth More FELE-branded products in Product Line Extensions distribution ©) Geographic Expansion New platforms and bolt-ons to extend 4d reach ¥ Demonstrated ability to grow and drive incremental operating margins v Focus on r
Slide 14: Financial Performance Summary
Financial Performance Summary is Franklin Electric 14
Slide 15: Financial Performance Summary
@ Franklin Electric = Financial Performance Summary Consolidated Sales = 10% 32% 1,125 ; $1,298 $1,315 $1,247 FREE CASH FLOW? CAGR L FY2017-2021 2017 2018 2019 2020 2021 EPS (Before Restructuring) 14% $3.26 EPS $1.92 #226 $2.07 $2.18 (BEFORE RESTRUCT.) CAGR |] [| | FY2017-2021 2017 2018 2019 2020 20
Slide 16: Cash Generation & Returns
Cash Generation & Returns Net Income ($M) Free Cash Flow ($M)! $155 $189 $156 5106 $101 $107 $78 $95 $101 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Free Cash Flow Conversion ROIC? 187% 13.8% 163% 12.2% 12.0% 12.6% 9.3% 101% 65% = | 2017 2018 2019 2020 2021°* 2017 2018 2019 2020 2021 1 FCF =
Slide 17: Organic Sales Growth
®& Franklin Electric 4 Organic Sales Growth: m|Water Fueling mDistribution 40.0% 35.4% 30.0% 23.9% 21.8% I 20.0% 15.0% 12.5% 10.0% 8.1% 3.1% 3.5% 0.0% -0.1% 18.6% 17.1%} 2018 2019 2020 2021 YTD 2022 -10.0% -20.0% SIG 76 2 Distribution first measured in 2018. Excludes acquisitions for one year and im
Slide 18: For More Information
For More Information: Jeff Taylor, VP — CFO, Franklin Electric Co. Inc. ® Franicin Electric jeffery.taylor@fele.com. 260-827-5520 18
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