Franklin Electric Co., Inc. · NASDAQ:FELE
Franklin Electric — KeyBanc Conference 2010
20 slides from Franklin Electric's conference presentation, Jun 1, 2010
Slide 1: KeyBanc Conference Presentation
KeyBanc Conference Presentation June 2, 2010 1
Slide 2: Agenda
Agenda • Company Overview & Financial Summary • Growth Strategies 2
Slide 3: Market Focus
Market Focus Residential, Agricultural & Commercial Water Systems Fueling Equipment $5.1 B global market potential $1.0 B global market potential • Brand equity • Leading market position • Global growth potential • Fragmented customer base • Fragmented competitor base 3
Slide 4: Global Product Portfolio
Global Product Portfolio % of $636M Sales, LTM 3-31-10 Industrial & Irrigation Groundwater Pumping Systems 18% Residential Groundwater Pumping Systems Water Products 31% 82% Residential, Industrial, and Irrigation Surface Water Pumping Systems 33% Fueling Products 18% 4
Slide 5: Geographic Sales Mix
Geographic Sales Mix % of $636M Sales, LTM 3-31-10 U.S. 45% International 55% 5
Slide 6: Global Market Leadership
Global Market Leadership Major Product Categories Franklin Market Water Systems Share Rank G Groundwater d t Pumping P i # 1 (Global) (Gl b l) Residential Wastewater Pumping # 2 (North & South America) Fueling Systems Fuel Pumping & Containment Systems # 1 (Global) Fuel & Vapor Management Systems #
Slide 7: Global Manufacturing Footprint
Global Manufacturing Footprint 3,500 employees Wittlich Madison Bluffton Saco Brno Berzo Demo Oklahoma City Dueville Grant County Wilburton Suzhou Linares Joinville Johannesburg Headquarters Manufacturing Facilities 7
Slide 8: Manufacturing Headcount In Low Cost Regions
Manufacturing Headcount In Low Cost Regions 8
Slide 9: Linares, Mexico
Linares, Mexico Plant Complex “Best Manufacturing Plant in Mexico” - Business B i Di Directives ti IInitiative iti ti Platinum Era Quality Award Motor “Best Best Manufacturing Plant in Mexico” Pump - Best Places to Work Institute “Finalist” - Industry Week Magazine Best Plants in North America 9
Slide 10: Sales & Earnings Trend
Franklin Electric Sales & Earnings Trend Last % Last % Last % 12 months Change 6 months Change 3 months Change 3-31-2010 Prior year 3-31-2010 Prior year 3-31-2010 Prior year Net Sales $636 mm (12%) $305 mm 1% $160 mm 7% Operating Income * $60 mm (17%) $29 mm 58% $15 mm 67% EPS * $1.47 (18%) $0.71 78
Slide 11: Sales & Operating Earnings Trend By Segment
Sales & Operating Earnings Trend By Segment Last % Last % Last % 12 months Change 6 months Change 3 months Change 3-31-2010 Prior year 3-31-2010 Prior year 3-31-2010 Prior year WATER Net Sales $523 mm (2%) $252 mm 13% $134 mm 17% Operating Income * $76 mm 16% $36 mm 76% $19 mm 82% FUELING Net Sales
Slide 12: Outlook
Outlook 2nd QTR 2010 versus 2nd QTR 2009 • Water: • Sales up ~10% and operating income margin before restructuring up ~100 – 200 bps • Fueling: • Sales S l flat fl andd operating i income i margin i before restructuring up ~50 – 100 bps 12
Slide 13: Strong cash generation & balance sheet
Franklin Electric Strong cash generation & balance sheet Last % 12 months Change 3-31-2010 Prior year Cash flow from operations $101 mm 47% Free cash flow $90 mm 94% At 3-31-2010 At 3-31-2009 Net debt to equity 21% 47% 13
Slide 14: Growth Strategy: Product Line Extensions & Geographic Expansion
Growth Strategy Product Line Extensions & Geographic Expansion Water Systems Franklin Motors, Controls Motors, Pumps, Drives Adjacent Pumping $5.1 B Global Submersible Motor and Drives and Controls Systems Addressable 1950s 1990s 2004 2006 Market eling Systtems Fue Franklin FE Petro FE Petro Turbine
Slide 15: Growth strategies: Water developing markets
Growth strategies WATER: Developing markets Franklin Water Systems Sales in Developing Regions 2003-2009 ($ mm) Water sales in developing regions were up 28% in Q1 2010 vs. prior year 15
Slide 16: Growth strategies: Increasing revenue per installation
Growth strategies WATER & FUELING: Increasing revenue per installation • Increase demand for pumping systems that incorporate advanced technologies Water Systems 4” Motor 4” Pump Motor Assembly 4” QuickPAK ~$100 ~$250 ~$600 eling Systtems Fue Motor, Pump, Motor & Pump Motor, Pump Motor, Pump, Piping
Slide 17: SubDrive2W – Electronic Drive
SubDrive2W – Electronic Drive Low-cost constant pressure solution 17
Slide 18: SubDrive Inline 1100 – Compact, quiet constant pressure system
SubDrive Inline 1100 – Compact, quiet constant pressure system for homeowners on municipal water systems 18
Slide 19: Colibri - Fuel Tank Monitoring System
Colibri - Fuel Tank Monitoring System 19
Slide 20: , “0 7< Ae) -0 Ww = > c (4) = LL
, “0 7< Ae) -0 0 Ww = > c (4) = LL