Franklin Electric Co., Inc. · NASDAQ:FELE
Franklin Electric — Investor Presentation (May 2023)
23 slides from Franklin Electric's investor presentation, May 8, 2023
Slide 1: Investor Presentation 2Q-2023
Investor Presentation 2Q-2023 Gregg Sengstack, Chairperson and CEO is Franklin Electric Jeff Taylor, VP — Chief Financial Officer May 2023
Slide 2: Safe Harbor Statement
ma fa 2 & 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 reducti
Slide 3: Strategic Focus
MP aS Lise 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 p to extend leadership and capture revenue in developing markets History of returning capital to shareholders; © Js “since 1993 Corporate gy aligne: pr focus on increasing transparency 1) At 3/31/
Slide 5: Distribution Fueling Systems
DISTRIBUTION FUELING SYSTEMS $668M (31%) $334M (15%)
Slide 6: Performance by Segment
< A } Franklin Electric 4 Performance by Segment??? fia: LN | NET SALES GROWTH Qi 2023 YoY $306.6M up 12% (18% organic growth) FY 2022 YoY $1,157.5M up 20% (21% organic growth) NET SALES GROWTH Q1 2023 YoY $143.0M up 6% (6% organic growth) FY 2022 YoY $668.1M up 34% (20% organic growth) NET SALES GR
Slide 7: Global Presence & Opportunity
@ Franklin Electric Global Presence & Opportunity On a daily basis, the world uses... “3 Trillion 2°" fresh water “1 Billion #°"" fuel To meet this demand, Franklin Electric produces 20,000 pumps, motors, drives, : , and controls daily . 7 ~6,500 employees @® GLOBAL HEADQUARTERS ~ a r 20 countries (
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 a Hellenbrand Water Treatment Waterite P pe ae = [ miiiareened aE s * High fragmentation of water treatment providers in indst
Slide 9: Fueling Systems
FUELING S EMS Global passenger vehicle fleet by drivetrain - Economic Transition Scenario Leader in fuel pumping, containment, and monitoring and control systems Billion 1.6 Battery Fuel Systems 14 electric ; _ . , Plug-i * Advances in petroleum piping and containment systems, 12 hybrid. electronic
Slide 10: 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 + Actively monitoring progress by Senior Management Continu
Slide 11: Strategic Priorities
q A } Franklin Electric 4 Strategic Priorities Customer-focused innovation Enhance position in industrial channel 10 year Developing Region Growth CAGR of 7% Drive synergies through the entire U.S. Groundwater Pro channel Continue to drive organic growth Maintain competitive * Extend leadership posi
Slide 12: Capital Allocation Performance & Priorities
@ Franklin Electric Capital Allocation Performance & Priorities Priorities for Cash Deployment Share Repurchases 15% area 2007 — 2022 Reinvestment in business to drive ite FCF Deployment organic growth Dividends paid CAGR of 9% (2007 to 2022) Opportunistic share repurchases (a) At 12/31/22 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 ) Geographic Expansion New platforms and bolt-ons to extend b reac ¥ Demonstrated ability to grow and drive incremental operating margins Product Line Extensions v Focus on risk
Slide 14: Financial Performance Summary
Financial Performance Summary is Franklin Electric 14
Slide 15: Financial Performance Summary
@ Franklin Electric = Financial Performance Summary Consolidated Sales ($M) $2,044 $1,662 $1,298 $1,315 $1,247 1 : NET REVEN EPS CAGR y : I J FY2018-2022 2018 2019 2020 2021 2022 EPS $3.97 $3.25 $2.23 $2.03 $2.14 a 2018 2019 2020 2021 2022 1ROIC based on after-tax calculation a he
Slide 16: Cash Generation & Returns
Cash Generation & Returns* Net Income ($M) Free Cash Flow ($M)! $189 $189 $155 $156 $106 $96 $101 $107 $101 LJ LJ 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Free Cash Flow Conversion ROIC? 187% 163% 16.4% 13.8% 12.2% 12.0% 12.6% 101% 65% | = 2018 2019 2020 2021° 2022°* 2018 2019 2020 2021 202
Slide 17: Organic Sales Growth
®& Franklin Electric 4 Organic Sales Growth :2 | Water Fueling # Distribution 40.0% 35.4% 30.0% 20.0% 18.6% 15.0% 17.1Y 17.4 12.5% 10.0% 8.1%. 0.0% -0.1% -2.5% -10.0% 20.0% 16.7% 2018 2019 2020 2021 2022 1 Excludes acquisitions for one year and the impact of foreign currency translation. Non-GAAP fi
Slide 18: Non-GAAP Reconciliations
Non-GAAP Reconciliations is Franklin Electric 18
Slide 19: Non-GAAP Reconciliations
@ Franklin Electric Non-GAAP Reconciliations As part of this presentation, Franklin Electric presented certain of its historical financial results. In these presentations, Franklin Electric used non-GAAP financial measures of net debt to adjusted EBITDA, free cash flow and conversion, and organic sa
Slide 20: Reconciliation of Non-GAAP Financial Measure
@ Franklin Electric Reconciliation of Non-GAAP Financial Measure a Dace toradjucted EBITDA As of March 31, 2023 Total debt 274.1 Less: cash and cash equivalents 51.9) Net debt 222.2 Three months ended Year ended Three months ended —- Twelve months ended March 31, 2023 December 31, 2022 March 31, 202
Slide 21: Reconciliation of Non-GAAP Financial Measure
@ Franklin Electric ¥ — a ih = \ i Reconciliation of Non-GAAP Financial Measure Operating cost Flow to Free Cash Flow 2022 2021 2020 2019 2018 Cash flows from operating activities 101,674 129,763 211,854 177,676 128,435 Cash flows from investing activities (43,074) (264,805) (78,811) (41,806) (66,29
Slide 22: Reported Sales Growth to Organic Sales Growth
@ Franklin Electric Reconciliation of Non-GAAP Financial Measure Reported Sales Growth to Organic Sales Growth Net Sales Growth % Organic as Acquisitions Growth Reported % FX% Kt 1.2023 Water 2 - 5 18 Fueling - - 1 1 Distribution 6 : - 6 2022 Water 20 Cy) 7 a Fueling 16 2 v7 Distribution 34 (15) : 2
Slide 23: For More Information
For More Information: Jeff Taylor, VP — CFO, Franklin Electric Co. Inc. ® Franicin Electric jeffery.taylor@fele.com. 260-827-5520