Franklin Electric Co., Inc. · NASDAQ:FELE
Franklin Electric — Baird 2016 Global Industrial Conference
24 slides from Franklin Electric's conference presentation, Nov 8, 2016
Slide 1: Baird 2016 Global Industrial Conference
November 8, 2016 Baird 2016 Global Industrial Conference
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: Moving Water. Moving Fuel. Moving Forward.
Moving Water. Moving Fuel. Moving Forward. Franklin Electric is a global leader in the production and marketing of systems and components for the movement of water and automotive fuels. Recognized as a technical leader in its products and services, Franklin serves customers around the world in resid
Slide 4: 3Q YTD 2016 - Consolidated
3Q YTD 2016 - Consolidated Franklin Electric Co. Inc. 4 3Q YTD 2016 3Q YTD 2015 % +(-) Prior Year Sales $710 $706 1% Operating Income(1) $85.6 $70.9 21% EPS(1) $1.28 $1.12(2) 14% (1) After non-GAAP adjustments – see 10-Q for reconciliation to GAAP EPS (2) Adjusted earnings per share includes approxi
Slide 5: Strategy
Strategy 5
Slide 6: Strategic Focus
Strategic Focus 6 Residential, Agricultural, Commercial Water Systems $6.0 B Global Market Potential(1) Complete Fueling Systems $1.2 B Global Market Potential(1) (1) Current Franklin management estimates Strong Brand Franchise #1 or #2 in Addressable Markets Growing Global Footprint Fragmented Cust
Slide 7: To grow as a global provider of water and fuel systems
7 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.
Slide 8: FE Strategy Continues to Drive Organic Growth
FE Strategy Continues to Drive Organic Growth 5.8% 4.9% 6.8% 7.8% -7.2% 3.9% 8.5% 7.1% 5.9% 11.7% 2.1% 2.9% 6.3% 5.4% 6.6% 8.6% -5.2% 3.7% 2011 2012 2013 2014 2015 YTD 3Q 2016 Water Fueling Consolidated 8 * Organic growth calculation excludes impact of foreign currency and revenue from acquisitions
Slide 9: Sales in Developing Regions
Sales in Developing Regions 9 $92 $149 $218 $202 $242 $288 $316 $336 $372 $355 $360 $- $50 $100 $150 $200 $250 $300 $350 $400 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 ($ in millions) * *2016 is Last Four Quarters Through Q3
Slide 10: Water Systems
Water Systems 10
Slide 11: Sales Growth Rates in US $ and Local Currency
MENA (IMPO) US $ Local 6.1% 18.8% Sales Growth Rates in US $ and Local Currency 11 2010-2015 CAGR LATIN AMERICA US $ Local 5.8% 19.1% SOUTHERN AFRICA US $ Local (7.6%) 2.2% APAC US $ Local 8.1% 21.4%
Slide 12: Geographic Expansion: Brazil
• 2008 – Acquired Motobombas Schneider – Leading producer of surface pumps • Residential, Agriculture, Commercial • 5,000 active customers • 2009 – Imported Franklin Brand – Addressed premium market – Established Field Service • 2014 – Acquired Bombas Leao – Leading Brazilian submersible pump brand
Slide 13: Leverage Product Platforms Across Developing Regions
Leverage Product Platforms Across Developing Regions 13
Slide 14: Product Development Focus
Engineered Systems High Efficiency Products • Permanent Magnet Motors – 5-10% efficiency improvement • Submersible Pumps – 3-8% • Async Submersible Motors – 3-5% • Surface Pumps – 3-10% Drives – Pumping and HVAC • New Pressure Boosting Products – Inline 400 Booster – VMS Booster Packages – VMS MonoB
Slide 15: Fueling Systems
Fueling Systems 15
Slide 16: Fueling Systems
Fueling Systems 16 $131 $217 2010 2015 Sales 11% CAGR Operating Income $22 $52 2010 2015 19% CAGR Revenue Growth by Region 2010-2015 CAGR ▲ 16% ▲ 9% Developed Developing ($ in millions)
Slide 17: Product Innovation
Diesel Exhaust Fluid System Variable Speed Technology Overfill Prevention Reinvented • Industry’s only complete system – Submersible pump – Fluid level detection – Piping and containment – Automatic recirculation control to prevent DEF/AdBlue® from freezing • Most robust, lowest cost solution • Fill
Slide 18: Fueling Systems
Fueling Systems 18 • Industry's most powerful complete site quoting tool • Built by Franklin design optimization engineers • Powered by years of petroleum equipment design expertise
Slide 19: Fueling Systems: Shell New Global Agreement
Fueling Systems 19 Shell New Global 5 Year Agreement • Now includes complete end-to-end underground fuel system • Expanded to address dealer network of 28,000 branded sites • Introduces new services which enhance safety and reduce total cost of ownership
Slide 20: Capital Allocation
Capital Allocation 20
Slide 21: Capital Allocation
Capital Allocation 21 Return to Shareholders $263 CAPEX/R&D $402 Acquisitions $449 Total $1,114 Last 10 Years Debt to EBITDA 1.3 Debt to Total Capital 23% 2016 3Q YTD ($ in millions)
Slide 22: Consecutive Annual Dividend Payment Increases
24 Consecutive Annual Dividend Payment Increases 22 $- $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 $0.35 $0.40 $0.45 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Slide 23: Acquisition Timeline
Acquisition Timeline 23 2016 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2004 JBD FUE LI N G FUE LI N G W A TE R 2015
Slide 24: Baird 2016 Global Industrial Conference
Baird 2016 Global Industrial Conference November 8, 2016
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