Franklin Electric Co., Inc. · NASDAQ:FELE
Franklin Electric — KeyBanc Industrial Conference May 2013
33 slides from Franklin Electric's conference presentation, May 29, 2013
Slide 1: KeyBanc Industrial Conference May 2013
KeyBanc Industrial Conference May 2013
Slide 2: 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, inventor
Slide 3: Topics
Topics 3 Financial Summary --- Water & Fueling Systems Overviews --- Growth Initiatives
Slide 4: 2009-2012 Sales History
2009-2012 Sales History 4 2010 $600 $700 $750 $800 $850 $900 $950 2009 $626 M $650 2011 $1000 $891 M 2012 $714 M $821 M
Slide 5: 2009-2012 Operating Income History
2009-2012 Operating Income(1) History 5 (1) After non-GAAP adjustments 2010 $50 $70 $80 $90 $100 $110 2009 $54.2 M $60 2011 $120 $114.9 M 2012 $72.4 M $95.7 M
Slide 6: Strong Return and Balance Sheet Metrics
Strong Return and Balance Sheet Metrics 6 Return on invested capital(1) = 19.8% (12/31/12) Net Debt to book equity = 12% (12/31/12) (1) Return on invested capital = operating income (after non-GAAP adjustments) ÷ (net debt + equity)
Slide 7: Dividend Growth
Dividend Growth Increased Dividend Payments for 21 Consecutive Years(1) $0 1993 $0.10 $0.15 $0.20 $0.25 $0.30 $0.05 1994 1995 1996 1997 1998 1999 2000 2002 2009 2003 2004 2005 2006 2007 2008 2010 2001 2011 2012 2013 7 (1) Includes 2013
Slide 8: Total Annualized Shareowner Return
Total Annualized Shareowner Return 8 1 year TSR = 39% /year 3 year TSR = 29% /year 10 year TSR = 13% /year
Slide 9: Financial Summary First Quarter 2013
Financial Summary 9 First Quarter 2013 3/31/13 % +(-) Prior Net Sales $222.5 M + 10% EPS(1) $0.33 + 10% (1) After non-GAAP adjustments (see company’s 10Q for reconciliation to GAAP EPS)
Slide 10: Business Segments
Business Segments 10 % of Franklin Sales (TTM 3/31/13) Water Systems 80% Fueling Systems 20% Fueling Systems TTM 3/31/13 % +(-) Prior Sales $185.5 M 12% Operating Income1 $38.2 M 21% Water Systems TTM 3/31/13 % +(-) Prior Sales $726.5 M 8% Operating Income1 $127.7 M 14% (1) After non-GAAP adjustment
Slide 11: Water Systems Business Development History
Water Systems 11 Business Development History 1950s Introduced Franklin submersible motor 1960-2004 Expanded submersible motor and control product line 2004 Introduced Franklin submersible pumps 2004-Present Expanded pumping systems product line
Slide 12: Water Systems End Markets
Water Systems 12 End Markets Groundwater Pumping Systems 60% % of Franklin Water Systems Sales Residential Surface Pumps 23% Irrigation & Industrial Groundwater Pumping Systems 26% Residential Groundwater Pumping Systems 34% Irrigation & Industrial Surface Pumps 17%
Slide 13: Water Systems End Markets
Water Systems 13 End Markets Groundwater Pumping Systems 60% % of Franklin Water Systems Sales Residential Surface Pumps 23% Irrigation & Industrial Groundwater Pumping Systems 26% Residential Groundwater Pumping Systems 34% Irrigation & Industrial Surface Pumps 17% #2 Global supplier to residential
Slide 14: Water Systems End Markets
Water Systems 14 End Markets Groundwater Pumping Systems 60% % of Franklin Water Systems Sales Residential Surface Pumps 23% Irrigation & Industrial Groundwater Pumping Systems 26% Residential Groundwater Pumping Systems 34% Irrigation & Industrial Surface Pumps 17% Non-discretionary replacement pur
Slide 15: Fueling Systems Business Development History
Fueling Systems 15 Business Development History 1960s Franklin explosion proof submersible motor 1961-2000 Expanded fuel pumping product line 2001-Present Expanded fueling equipment product offering beyond pumping systems
Slide 16: Fuel Management, Piping & Containment, Vapor Recovery, Leak Detection, Pumping
16 Fuel Management Piping & Containment Vapor Recovery Leak Detection Pumping
Slide 17: Fueling Systems Global Growth Opportunity
Fueling Systems 17 Global Growth Opportunity United States Number of Stations 175,000 Stations with Pressure Pumping Technology(1) 97% Stations with Vapor Recovery Technology(1,2) 95% Stations with Fuel Management Systems 75% (1) Franklin management estimates (2) Includes onboard vapor recovery Rest
Slide 18: Fueling Systems Sales Growth
Fueling Systems 18 Sales Growth 2012 2004 $71 M $167 M % International 24% 43% International Sales $17 M $176 M $71 M $75 M
Slide 19: Developing Regions Growth Opportunity #1
19 Developing Regions Growth Opportunity #1
Slide 20: 20
20
Slide 21: Fueling Systems Developing Regions Sales Growth
Fueling Systems 21 Developing Regions Sales Growth Up 5.8x 2000 2012 3 M 17.4 M China, India & Latin America * Source: Scotiabank Group Global Auto Report New Passenger Vehicle Sales
Slide 22: Developing Regions Sales Growth
Developing Regions Sales Growth 2010 $0 $50 $75 $100 $125 $150 $175 $200 $225 2004 2005 2006 2007 2008 2009 $65 M % of Total Franklin Sales 16% 37% $25 2011 $250 $300 $350 $331 M 2012 22 $325 $275
Slide 23: Electronic Drives & Controls Growth Opportunity #2
23 Electronic Drives & Controls Growth Opportunity #2
Slide 24: Groundwater drive sales increase and installation penetration
24 2012 groundwater drive sales increase = 20% Only 6% of installations included a drive Doubles our revenue per installation
Slide 25: Cerus Industrial Acquisition
Cerus Industrial Acquisition 25
Slide 26: Cerus Industrial Acquisition
Cerus Industrial Acquisition 26
Slide 27: New Products Growth Opportunity #3
27 New Products Growth Opportunity #3
Slide 28: New Products: Artificial Lift Systems for Oil & Gas Applications
New Products 28 Artificial Lift Systems for Oil & Gas Applications Gas Line Water Line Typical Oil/Gas Well Depth (2000 to 6000 feet) Typical Water Well Depth (40 to 600 feet)
Slide 29: SubDrive Solar
29 SubDrive Solar
Slide 30: TS-550 evo
30 TS-550 evo
Slide 31: Large Drives & Controls
31 Large Drives & Controls
Slide 32: Vertical Boosters
32 Vertical Boosters
Slide 33: KeyBanc Industrial Conference May 2013
KeyBanc Industrial Conference May 2013
Franklin Electric — KeyBanc Industrial Conference May 2013 on 6ix