Franklin Electric Co., Inc. · NASDAQ:FELE
Franklin Electric — Investor Presentation (May 2022)
18 slides from Franklin Electric's investor presentation, May 3, 2022
Slide 1: Investor Presentation 2Q-2022
Investor Presentation 2Q-2022 Gregg Sengstack, Chairperson and CEO is Franklin Electric Jeff Taylor, VP — Chief Financial Officer April 2022
Slide 2: Safe Harbor Statement
ee | @ 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 reductions
Slide 3: Strategic Focus
MP aS Lise Je 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. ® Franklin Electric
Slide 4: Investment Highlights
Investment Highlights. market position in groundwater pumping systems Track record of [ across segments Advantageous - p to extend leadership and capture revenue in developing markets Proven cash flow generation with SrOW - since 2017 (5 yr. CAGR) Strong balance sheet with pt-to ‘and opportunity for
Slide 5: Distribution, Fueling Systems and Water Systems segments
DISTRIBUTION FUELING SYSTEMS $497.6M (28%) $289.1M (17%) yGREYWATER
Slide 6: Performance by Segment
< A } Franklin Electric 4 Performance by Segment? NET SALES GROWTH Q1 2022 YoY $272.6M up 38% (27% organic growth) FY 2021 YoY $963.6M up 31% (19% organic growth) NET SALES GROWTH Q1 2022 YoY $134.9 up 41% FY 2021 YoY $497.6M up 52% (35% organic growth) (26% organic growth) NET SALES GROWTH Q1 2022
Slide 7: Global Presence & Opportunity
@ Franklin Electric Global Presence & Opportunity On a daily basis, the world uses... — al ~ enn: gallons of 3 Trillion F fresh water e Wey ow one gallons of ny 1 Billion : fuel To meet this demand, Franklin Electric produces 20,000 pumps, motors, drives, 4 and controls daily . e cy OVER5,400 EMPLOY
Slide 8: Water Systems
q A } Franklin Electric 4 Water Systems WATER SYSTEMS Water treatment brands acquired Residential, agricultural, municipal and industrial AQUA PURONICS: ; applications SYSTEMS ‘ Hellenbrand Water Treatment Waterite aie al STERLING * High fragmentation of water treatment providers in indisites ines N
Slide 9: Fueling Systems
< A > Franklin Electric 4 Fueling Systems FUELING S EMS Leader in fuel pumping, containment, and monitoring and control systems Fuel Systems ¢ Advances in petroleum piping and containment systems, electronic leak detection and overfill protection enable providers to safely keep up with the world’s l
Slide 10: Our Vision
q A } Franklin Electric 4 Our Vision To be an indispensable partner to our customers pon 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 as Ope
Slide 11: Strategic Priorities
Strategic Priorities Continue to drive organic growth Maintain competitive advantages that lead to operational efficiencies Franklin Electric is well positioned to drive long-term shareholder returns Customer-focused innovation Enhance position in industrial channel 10 year Developing Region Growth
Slide 12: Capital Allocation Performance & Priorities
@ Franklin Electric Capital Allocation Performance & Priorities Priorities for Cash Deployment Share Repurchases 14% Reinvestment in business to drive Dividends er 2007 - 2021 FCF Deployment ; organic growth Dividends paid CAGR of 8% (2007 to 2021) Opportunistic share repurchases (a) At 12/31/21 12
Slide 13: Acquisitions are a critical engine for growth
®& Franklin Electric . vi a: aa 5 Acquisitions are a critical engine for growth More FELE-branded products in distribution Product Line Extensions Geographic Expansion New platforms and polt-ons to extend reac ¥ Demonstrated ability to grow and drive incremental operating margins v Focus on risk adj
Slide 14: Financial Performance Summary
Financial Performance Summary is Franklin Electric 14
Slide 15: Financial Performance Summary
@ Franklin Electric = Financial Performance Summary Consolidated Sales = 10% 32% 1,125 ; $1,298 $1,315 $1,247 " ¥ NET FREE CASH FLOW? | CAGR CAGR FY2017-2021 2017 2018 2019 2020 2021 EPS (Before Restructuring) 0 14% $3.26 EPS $1.92 92.26 $2.07 $2.18 (BEFORE RESTRUCT.) CAGR [] | | FY2017-2021 2017 20
Slide 16: Cash Generation & Returns
Cash Generation & Returns Net Income ($M) Free Cash Flow ($M)! $155 $189 $156 5106 $101 $107 $78 $95 $101 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 2021°* 2017 2018 2019 2020 2021 + FCF =
Slide 17: Organic Sales Growth
< A > Franklin Electric 4 Organic Sales Growth: @ Water @ Fueling @ Distribution 28.9% 27.1% _— 18.6% 11 15.0% 12.5% 8.1% 3.1% 3.5% -0.1% || -2.5% -16.7% 2018 2019 2020 2021 2022 YTD 2 Distribution first measured in 2018. Excludes acquisitions for one year and impact of Foreign Currency translation.
Slide 18: For More Information
For More Information: Jeff Taylor, VP — CFO, Franklin Electric Co. Inc. ® Franicin Electric jeffery.taylor@fele.com. 260-827-5520 18