Franklin Electric Co., Inc. · NASDAQ:FELE
Franklin Electric — Investor Presentation (November 2023)
24 slides from Franklin Electric's investor presentation, Nov 6, 2023
Slide 1: Investor Presentation November 2023
Investor Presentation November 2023 @ Franklin Electric
Slide 2: Safe Harbor Statement
Se. “ee eg | 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
Slide 3: Strategic Focus
“M.S: ob iae U STRATEGIC FOCUS: To grow as a global provider of water, fuel and critical asset monitoring systems, through geographic expansion and product line extensions, leveraging our global platform and competency in system design. & Franklin Electric
Slide 4: Investment Highlights
@ Franklin Electric Investment Highlights: «= market position in groundwater pumping systems Track record of Stent Organic growth — (6 Cos Advantageous - |: to extend leadership and capture revenue in developing markets Strong balance sheet with |- |: : ‘> and opportunity for investment 2 History of
Slide 5: 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 oe eo Maintain competitive advantages that le
Slide 6: Consolidated September YTD Performance
< Q > Franklin Electric 4 Consolidated September YTD Performance? YTD Net Sales (SM) YTD EPS FCF (SM) / FCF Conversion 1,600 3.35 200.0 : $1,592 : ’ 108% $3.30 $3.29 ae $1575 $150.0 " 5 S225 $1,554 $3.20 $100.0 $1,550 $3.15 $3.13 $50.0 3.10 $1,525 e S00 -15% 3.05 ; $1,500 $3.00 Sept YTD 2022 Sept YT
Slide 7: Performance by Segment
q A > Franklin Electric 4 Performance by Segment?~? WATER SYSTEMS DISTRIBUTION FUE EMS © NET SALES GROWTH NET SALES GROWTH NET SALES GROWTH Q3 2023 YoY Q3 2023 YoY Q3 2023 YoY $295.8M up 1% $189.2M down 2% $77.7M down 14% (5% organic growth) (-2% organic growth) (-14% organic growth) First Nine Mont
Slide 8: Franklin Electric Segment Overview (Revenue FY 2022)
Franklin Electric Segment Overview (Revenue FY 2022) WATER SYSTEMS $1,158M (54%) REYWATER <—e ATER WAST! DISTRIBUTION $668M (31%) ry SR, P DRILLING eine SUPPLIES Poe | ane a sep
Slide 9: Global Presence & Opportunity
& Franklin Electric 4 Global Presence & Opportunity On a daily basis, the world uses... seges ~ ene gallons of 3 Trillion ws fresh water gallons of tale Po enge 1 Billion : fuel To meet this demand, Franklin Electric produces 20,000 pumps, motors, drives, , 4 and controls daily e ~6,500 employees ®
Slide 10: Water Systems
(9 Franklin Electric Water Systems WATER SYSTEMS Water treatment brands acquired Residential, agricultural, municipal and industrial A JA PURONICS: : applications QUA... ae Hellenbrand Water Treatment Waterite aif fai ne = — ; Siemans Industries, Inc. ¢ High fragmentation of water treatment provider
Slide 11: Fueling Systems
q A > Franklin Electric 4 Fueling Systems FUELING SYSTEMS Advantageous Position in ning Global passenger vehicle fleet by drivetrain - Economic Transition Scenario nsit Leader in fuel pumping, containment, and monitoring and control systems Billion 16 Battery Fuel Systems 14 electric . Plug-in ¢ Adv
Slide 12: Our Vision
q A > Franklin Electric 4 Our Vision To be an indispensable partner to our customers QD 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 PS Operat
Slide 13: Capital Allocation Performance & Priorities
(9 Franklin Electric Capital Allocation Performance & Priorities Priorities for Cash Deployment Share Repurchases 15% Sicidende 2007 - 2022 2 Reinvestment in pusines® to drive 18% FCF Deployment _ organic grow 3 Dividends paid CAGR of 9% (2007 to 2022) Opportunistic share repurchases (a) Av12/31/22
Slide 14: Acquisitions are a critical engine for growth
(9 Franklin Electric . Acquisitions are a critical engine for growth Expanding our portfolio in adjacent products Product Line Extensions Leverage our global footprint to drive growth ¥ Demonstrated ability to grow and drive incremental operating margins Geographic Expansion Y Focus on risk adjusted
Slide 15: Financial Performance Summary
@ Franklin Electric Financial Performance Summary
Slide 16: Financial Performance Summary
(9 Franklin Electric Financial Performance Summary? Consolidated Sales (SM) $2,044 $1,662 r 1 $1,298 $1,315 $1,247 N \ Tt EPS CAGR | | ’ FY2018-2022 2018 2019 2020 2021 2022 EPS $3.97 $3.25 $2.23 $2.03 $2.14 2018 2019 2020 2021 2022 1ROIC based on after-tax calculation Non-GAAP financial metrics ref
Slide 17: Cash Generation & Returns
& Franklin Electric = 7 > = 4 ; = ae Cash Generation & Returns* Net Income ($M) Free Cash Flow (SM)! $189 $189 $155 $156 $106 $96 $101 $107 $101 L LJ L| L . 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% 32% 2018 2
Slide 18: Non-GAAP Reconciliations
@ Franklin Electric Non-GAAP Reconciliations
Slide 19: Non-GAAP Reconciliations
q Q > Franklin Electric 4 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
Slide 20: Reconciliation of Non-GAAP Financial Measure
& Franklin Electric 4 Reconciliation of Non-GAAP Financial Measure Total debt Less: cash and cash equivalents Netdebt Net income Depreciation and amortization Income tax expense Interest expense EBITDA Net debt to EBITDA Net Debt to Adjusted EBITDA $ In millions As of September 30, 2023 $ 128.4 (62.
Slide 21: Reconciliation of Non-GAAP Financial Measure
q Q > Franklin Electric 4 Reconciliation of Non-GAAP Financial Measure Operating Cash Flow to Free Cash Flow $ in millions Year Ended December 31, Nine Months Ended September 30, 2022 2021 2020 2019 2018 2023 2022 Cash flows from operating activities $ 1017 $ 1298 $ 2119 $ 177.7 $ 1284 $ 198.6 $ 72
Slide 22: Reconciliation of Non-GAAP Financial Measure
& 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 % %* Q3 2023 Consolidated (2) 2 “ Water 1 7 4 5 Fueling (14) : : (14) Distribution (2) 2 2 2) YTD Q3 2023 Consolidated 2 :
Slide 23: Reconciliation of Non-GAAP Financial Measure
q Q > Franklin Electric 4 Reconciliation of Non-GAAP Financial Measure Return on Invested Capital (ROIC) $ In millions Net Operating Income After Tax 2022 2021 2020 2019 2018 Operating income S$ 257.2 § 189.2 §$ 130.5 § 127.1 $ 132.0 Income tax on operating income 54.0 37.8 27.9 25.6 24.7 Net operat
Slide 24: Thank You
& Franklin Electric 4 THANK YOU r ) Jeff Taylor, VP e_ CFO, Franklin Electric Co. Inc. Ao) jeffery.taylor@fele.com. \, 260-827-5520
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