Franklin Electric Co., Inc. · NASDAQ:FELE
Franklin Electric — Investor Presentation (April 2010)
18 slides from Franklin Electric's investor presentation, Apr 29, 2010
Slide 1: Shareowners' Presentation
Shareowners’ Presentation April 2010
Slide 2: Strategic Objective
Strategic Objective: To be the world’s premier supplier of pumping solutions for groundwater, residential, agricultural, commercial, and fueling applications. Global addressable market $6.5B Franklin share approximately 10% - #2 global competitor Headroom for additional growth
Slide 3: Recession Impact on Sales: Franklin and Major Competitors
2009 Recession Impact on Sales Franklin and Major Competitors North American Groundwater and Residential Wastewater Pump Shipments 2009 % Decline (units) Franklin Electric (17%) Balance of Industry (33%) 1. Source: SSMPA and WSC Data.
Slide 4: Recession Impact on Sales: Franklin and Major Competitors
2009 Recession Impact on Sales Franklin and Major Competitors 2009 % Sales Decline1 Pentair Water (16.2%) ITT Fluid (12.4%) Grundfos (10.3%) EBARA (10.6%) Franklin Electric Water (9.5%) 1. Percent changes done in local currency.
Slide 5: Response to Recession
Response to Recession Focus on cash flow Reduce costs Continue selective investment in growth strategy
Slide 6: Franklin Electric Financial Summary
Franklin Electric Financial Summary 2007 2008 2009 Sales $602M $746M $626M EPS 1 $1.33 $1.96 $1.29 Net Cash Flow from Operating Activities $4M $44M $113M Net Debt $96M $139M $65M Net Debt/Equity 25% 40% 17% 1. Before restructuring expenses.
Slide 7: Franklin Response to Global Recession: Cost Reduction
2009 Franklin Response to Global Recession Cost Reduction Salary freeze Temporarily discontinue 401K match Reduce global salary headcount by 9% Reduce corporate staff headcount by 16% Fixed cost reduction $27M or 11.4%
Slide 8: Linares Manufacturing Complex
Linares Manufacturing Complex Motor Motor Pump Pump
Slide 9: Best Manufacturing Plant in Mexico
“Best Manufacturing Plant in Mexico” - Business Directives Initiative Platinum Era Outfit Award “Best Manufacturing Plant in Mexico” - Best Places to Work Institute “Finalist” - Industry Week Magazine Best Plants in North America
Slide 10: Franklin Electric Earnings Per Share
Franklin Electric Earnings Per Share 4th Qtr % 4th Qtr 1st Qtr % 1st Qtr 2009 +(-) 2008 2010 +(-) 2009 EPS1 $0.34 + 62% $0.37 + 95% 1. Before restructuring expenses.
Slide 11: Continue Selective Investment in Franklin Growth Strategy
Continue Selective Investment In Franklin Growth Strategy: Product line extensions and geographic expansion within our core water and fueling businesses.
Slide 12: Vertical Complex
Vertical Complex
Slide 13: Franklin Electric Sales in International Markets
Franklin Electric Sales in International Markets $400 $353.5M $347.0M $350 $300 $264.9M $250 $193.2M $200 $162.5M $148.5M $150 $128.9M $122.6M $100 $50 $0 2002 2003 2004 2005 2006 2007 2008 2009 % of Total Franklin Sales: 35% 36% 40% 40% 35% 44% 47% 55%
Slide 14: Ongoing Investment in Product Development
Ongoing Investment in Product Development
Slide 15: SubDrive2W – Electronic Drive
SubDrive2W – Electronic Drive Low-cost constant pressure solution
Slide 16: SubDrive Inline 1100 – Compact, Quiet Constant Pressure System
SubDrive Inline 1100 – Compact, Quiet Constant Pressure System For homeowners on municipal water systems
Slide 17: Colibri – Fuel Tank Monitoring System
Colibri – Fuel Tank Monitoring System
Slide 18: (ie Franklin Electric
(ie Franklin Electric
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