Franklin Electric Co., Inc. · NASDAQ:FELE
Franklin Electric — Investor Presentation (March 2022)
18 slides from Franklin Electric's investor presentation, Mar 8, 2022
Slide 1: Fuel Moving Forward. Investor Presentation 1Q-2022
FUEL MOVING FORWARD. Investor Presentation 1Q-2022 Gregg Sengstack, Chairperson and CEO @ Franklin Electric Jeff Taylor, VP — Chief Financial Officer February 2022
Slide 2: Safe Harbor Statement
— - ad “3 Sy @ 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 re
Slide 3: Strategic Focus
-» Po Ss] Pal a oe. ar ia — 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. ® Frantain Electric at Bey:
Slide 4: Investment Highlights
Investment Highlights. -.. market position in groundwater pumping systems Track record of 2 g across segments Advantageous - to extend leadership and capture revenue in developing markets Proven cash flow generation with since 2017 (5 yr. CAGR) Strong balance sheet with — —- and opportunity for inve
Slide 5: Franklin Electric Segment Overview (Revenue FY 2021)
cy Franklin Electric Franklin Electric Segment Overview (Revenue FY 2021) DISTRIBUTION FUELING SYSTEMS. $497.6M (28%) $289.1M (17%) AN 5 A\\ S ea (ge GROUNDWATER
Slide 6: Performance by Segment
cs Franklin Electric Performance by Segment? WATER SYSTEMS DISTRIBUTION FUELING SYSTEMS NET SALES GROWTH Q4 2021 YoY $258.0M up 36% (23% organic growth) FY 2021 YoY $963.6M up 31% (19% organic growth) NET SALES GROWTH Q4 2021 YoY $116.9 up 50% (39% organic growth) FY 2021 YoY $497.6M up 52% (35% org
Slide 7: Global Presence & Opportunity
ras Franklin Electric WV Global Presence & Opportunity On a daily basis, the world uses... ~ onie gallons of = 7 - j 3 Trillion fresh water ? ‘ oy. ~1 Billi gallons of [te ae ° co) WON |, oe ° % é To meet this demand, Franklin Electric e produces 20,000 pumps, motors, drives, ° x . ° and controls da
Slide 8: Water Systems
cy Franklin Electric Water Systems WATER SYSTEMS Water treatment brands acquired Residential, agricultural, municipal and industrial AQUA PURONICS d ’ applications SYSTEMS Ms 2 Hellenbrand 1 cd Water Treatment Waterite - aie a7 BER —_— se Sin Industries, Inc. * High fragmentation of water treatment
Slide 9: Fueling Systems
@ Frantain Electric = 2s \ Fueling Systems FUELING SYSTEMS Advantageous Position in Trans ig Market Leader in fuel pumping, containment, and monitoring and Global share of total annual passenger vehicle sales by drivetrain control systems % Fuel Systems 100% - a . — Electric * Advances in petroleum
Slide 10: Our Vision
a eT cy Franklin Electric Our Vision To be an indispensable partner to our customers 2X, 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 Opera
Slide 11: Customer-focused innovation and growth drivers
* 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 a! Maintain competitive * Extend leadership position via quality, availability and c
Slide 12: Capital Allocation Performance & Priorities
Capital Allocation Performance & Priorities Priorities for Cash Deployment 2 Reinvestment in business to drive ganic growth 3 Dividends paid CAGR of 8% (2007t02021) 4 Opportunistic share repurchases Share Repurchases 14% Dividends a 2007 - 2021 FCF Deployment (ay avaa/31/21 D
Slide 13: Acquisitions are a critical engine for growth
Acquisitions are a critical engine for growth oe Product line bat More FELE-branded products in a roduct Line Extensions distribution Geographic Expansion New platforms and holtons to extend Z reac Y Demonstrated ability to grow and drive incremental operating margins Y Focus on risk adjusted IRR an
Slide 14: Financial Performance Summary
IN MOVING FORWARD. Financial Performance Summary @ Franklin Electric
Slide 15: Financial Performance Summary
Franklin Electric Financial Performance Summary Consolidated Sales $1,662 Lo} $1125 : $1,298 $1,315 $1,247 j 3 Z FREE CASH FLOW? CAGR L J L FY2017-2021 2017 2018 2019 2020 2021 EPS (Before Restructuring) (0) j 14% $3.26 1 3 . 8 % EPS as $2.26 $2.07 $2.18 ROIC2 (BEFORE RESTRUCT.) 2021 CAGR FY2017-202
Slide 16: Cash Generation & Returns
Cash Generation & Returns Net Income ($M) Free Cash Flow ($M)? $189 155 s $156 $106 $101 95 $107 $78 $ $101 L LJ LJ = 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 20217 2017 2018 2019 2020
Slide 17: Organic Sales Growth
Organic Sales Growth : 35.4% Water Systems mFuelingSystems Distribution 18.6% 17.1% 15.0% 12.5% 8.2% 8.1% 2.5% || 3.1% = iz aicae -0.1% = 2.5% “16.7% 2017 2018 2019 2020 2021 Distribution first measured in 2018. Excludes acquisitions for one year and impact of Foreign Currency translation. *2020 Tot
Slide 18: For More Information
FUEL MOVING FORWARD. For More Information: Jeff Taylor, VP — CFO, Franklin Electric Co. Inc. @ Franklin Electric jeffery.taylor@fele.com. 260-827-5520
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