Franklin Electric Co., Inc. · NASDAQ:FELE
Franklin Electric — Investor Presentation (February 2025)
24 slides from Franklin Electric's investor presentation, Feb 28, 2025
Slide 1: Investor Presentation
Investor Presentation @ Franklin Electric February 2025
Slide 2: Safe Harbor Statement
q Q > Franklin Electric 4 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
Slide 3: Our Strategic Focus
Our Strategic Focus At Franklin Electric, we protect the world's most critical resources. Using responsible innovation and sustainable manufacturing, we serve as an indispensable partner to our customers who work alongside us to keep Moving Life Forward™. @vsatopay AMERICA’S wane CLIMATE LEADERS tI
Slide 4: Investment Highlights
@ Franklin Electric Investment Highlights’ --- market position in groundwater pumping systems Track record of stent organic gro across segments Advantageous =i(0) °--)5 to extend leadership and capture revenue in developing markets Strong balance sheet in= (9) 025) e5" with opportunity for investmen
Slide 5: Value Creation Framework and Business Segments
At Franklin (NASDAQ: FELE), we protect the world’s most critical resources. Using responsible innovation and sustainable manufacturing, we serve as an indispensable partner to our customers who work alongside us to keep Moving Life Forward™. Franklin Electric R VALUE CREATION FRAMEWORK $ © RESILIENT
Slide 6: Capital Allocation Performance & Priorities
< Q > Franklin Electric 4 Capital Allocation Performance & Priorities RETURN TO EXECUTE M&A REINVEST IN BUSINESS MANAGE LEVERAGE SHAREHOLDERS « Acquisitions remain atop * Target Organic CAGR above * Target net debt of less than * 33 years of increasing priority market 2.5-3.0X EBITDA dividends « Acc
Slide 7: Strong Growth End Markets: Mining and Critical Minerals
(9 Franklin Electric Sustainability & Electrification 6x Critical Minerals Urbanization & Aging Infrastructure Construction & Sewer Bypass Strong Growth End Markets: 24% OpEx Mining, Municipal, Commercial & Industrial Minetuff® Series Pumps +86% +50% Backlog YoY; 16% New Cust. Sales ElectricPAK™ +88
Slide 8: Franklin Electric Segment Overview (Revenue FY 2024)
@ Franklin Electric Franklin Electric Segment Overview (revenue Fy 2024) WATER SYSTEMS DISTRIBUTION ENERGY SYSTEMS $1,184M (55%) $686M (32%) $274M (13%) l a wn Fy 'GREYWATER a. 6% mete
Slide 9: Global Presence & Opportunity
< Q > Franklin Electric 4 Global Presence & Opportunity Ona daily basis, the world uses... ~3 Trillion 20ers" fresh water ~1 Billion gallons of fuel To meet this demand, Franklin Electric produces 20,000 pumps, motors, drives, and controls daily ~6,500 employees ~20 countries £ 8 re) 3° rg 3 a2 S| o
Slide 10: Water Systems
®& Franklin Electric WV Water Systems Water Transfer/Pumping Systems Water Treatment ¢ Aleading global provider of complete water systems, including water well pumping systems, HVAC condensate removal, agricultural pumping systems, sump, sewage and effluent pumps, mobile pumping systems, and control
Slide 11: The Leading Source in Water Systems Distribution
& Franklin Electric 4 Ny © The Leading Source in Water Systems Distribution Headwater Companies invests in and operates wholesale distribution companies serving professional contractors in é ry residential, agricultural and commercial, industrial and municipal ry oY oy * markets. ry o6 Oe ad ; On-Si
Slide 12: Energy Systems
q A > Franklin Electric 4 Energy Systems Energy Systems Advanta Global passenger vehicle fleet by drivetrain - Economic us Position In Transitioning Market Leader in fuel pumping, containment, and monitoring and control systems Transition Scenario Billion Bait atte! Fuel Systems “ electric * Advance
Slide 13: Our Vision
q A > Franklin Electric 4 Our Vision To be an indispensable partner to our customers ©. Commitment to Safety Promote a culture of continuous health and safety training * Engagement across all levels * Prioritize employee health and wellness r> Operational Integrity Ensuring proper practices and ethi
Slide 14: Financial Performance Summary
@ Franklin Electric Financial Performance Summary
Slide 15: Financial Performance Summary
(9 Franklin Electric Financial Performance Summary? Consolidated Sales (SM) $2,044 $2,065 $2,021 $1,662 $1,247 FY2020-2024 2020 2021 2022 2023 2024 EPS $3.97 $4.11 $3.86 $3.25 - a i 2020 2021 2022 2023 2024 1 ROIC based on after-tax calculation *Non-GAAP financial metrics referenced in this slide in
Slide 16: Cash Generation & Returns
& Franklin Electric = 7 > = 4 ; = ae Cash Generation & Returns? Net Income ($M) Free Cash Flow (SM)! $276 $189 $195 $182 $221 $155 $189 $101 $101 || - 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Free Cash Flow Conversion ROIC? 187% % 16.4% 17.2% 16.0% 142% % 120% eR 13.8% 65% 32% 2020 2021 202
Slide 17: Performance by Segment
q A > Franklin Electric 4 Performance by Segment?23 WATER SYSTEMS DISTRIBUTION ENER NET SALES NET SALES NET SALES Q4 2024 YoY Q4 2024 YoY Q4 2024 YoY $279.6M flat $157.2M up 6% $68.8M up 5% (2% organic growth) (4% organic growth) (5% organic growth) Full Year 2024 YoY Full Year 2024 YoY Full Year 20
Slide 18: Non-GAAP Reconciliations
@ Franklin Electric Non-GAAP Reconciliations
Slide 19: Non-GAAP Reconciliations
} Franklin Electric Non-GAAP Reconciliations To supplement Franklin Electric’s consolidated financial statements presented on a U.S. GAAP basis, the company discloses certain non-GAAP financial measures. These non-GAAP financial measures are not in accordance with generally accepted accounting princ
Slide 20: Reconciliation of Non-GAAP Financial Measure: Net Debt and Net Leverage
q Q > Franklin Electric 4 Reconciliation of Non-GAAP Financial Measure Total Debt to Net (Cash) Debt and Net Leverage Total debt Less: cash and cash equivalents Net (cash) debt Net income Depreciation and amortization Income tax expense Interest expense EBITDA Net leverage $ In millions As of Decemb
Slide 21: Reconciliation of Non-GAAP Financial Measure: Free Cash Flow
q Q > Franklin Electric 4 Reconciliation of Non-GAAP Financial Measure Operating Cash Flow to Free Cash Flow $ in millions Year Ended December 31, 2024 2023 2022 2021 2020 Cash flows from operating activities $ 2614 $ 3157 $ 1017 $ 1298 $ 2119 Cash flows from investing activities G (45.6) $ (74.3) $
Slide 22: Reconciliation of Non-GAAP Financial Measure: Organic Sales Growth
q Q > Franklin Electric 4 Reconciliation of Non-GAAP Financial Measure Reported sales growth to organic sales growth Net Sales Growth % Organic as Acquisitions Growth Reported % FX% %* Q4 2024 Consolidated 3 (2) 2 3 Water 2 fe) 3 2 Energy 5 5 5 Distribution 6 Q) 4 Q4YTD 2024 Consolidated (2) (2) 1 3
Slide 23: Reconciliation of Non-GAAP Financial Measure: ROIC
& Franklin Electric 4 Reconciliation of Non-GAAP Financial Measure Return on Invested Capital (ROIC) $ In millions Net Operating Income After Tax 2024 2023 2022 2021 2020 Operating income $ 243.6 $ 2624 $§ 2572 $ 1892 $ 1305 Income tax on operating income 56.0 pray 54.0 37.8 27.9 Net operating incom
Slide 24: Thank You
& Franklin Electric 4 THANK YOU 7 Be Jeffery L. Taylor, VP & CFO Franklin Electric Co., Inc. InvestorRelations@FELE.com 260-827-5520
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