Franklin Electric Co., Inc. · NASDAQ:FELE
Franklin Electric — Investor Presentation (November 2021)
26 slides from Franklin Electric's investor presentation, Nov 3, 2021
Slide 1: Investor Presentation 4Q-2021
Investor Presentation 4Q-2021 Gregg Sengstack, Chairperson and CEO @ Franklin Electric Jeff Taylor, VP — Chief Financial Officer November 2021
Slide 2: Safe Harbor Statement
ee a | 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
Slide 3: Strategic Focus
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 Luss
Slide 4: 1) At 12/31/20
1) At 12/31/20
Slide 5: Franklin Electric Segment Overview (Revenue YTD 2021)
rs Franklin Electric Franklin Electric Segment Overview (Revenue YTD 2021) DISTRIBUTION FUELING SYSTEMS $380.7M (29%) $210.0M (16%) \ PA\GREvwareR —
Slide 6: Performance by Segment
rs Franklin Electric Performance by Segment : WATER SYSTEMS Q3 2021 YoY Net Sales: $260.7M up 28% (11% organic growth) Q3 YTD 2021 YoY Net Sales: $705.6M up 29% (17% organic growth) MARKET OPPORTUNITY >$6.0B 1 Market opportunity based on management estimates at 12/31/20 DISTRIBUTION Q3 2021 YoY Net
Slide 7: Water Systems Evolution
@D Franiain Electric = =, i ees a = Water Systems Evolution Year: 2000 Year: 2020 MOTORS & CONTROLS PUMPING SYSTEMS Franklin has evolved its portfolio and established itself as a leading supplier of groundwater pumping systems, and forward integrating in the U.S.
Slide 8: Water Systems Evolution — Water Treatment
rs Franklin Electric Water Systems Evolution — Water Treatment Natural Extension from Water Quality Dealer Adds Creates Growth Platform within Groundwater Capabilities Significant Value in the Channel Franklin’s Wheelhouse ® sreat need for Water } ~2. 7B Addressable market Increased demand for clean
Slide 9: FE Acquired Water Treatment Providers
rs Franklin Electric FE Acquired Water Treatment Providers Annual Headquarters Dealers (+/-) Acquisition Date Revenue «yysp) U YSTEMS Indianapolis, IN 590 2a 2021 $76 Hellenbrand PURONICS’ Livermore, CA 150 2Q 2021 $24 Waterite Winnipeg, ON 1,600 4Q 2020 $27 Churubusco, IN 30 3Q 2019 $17 FELE Water
Slide 10: Franklin Water Treatment Go-to-Market Strategy
rs Franklin Electric Franklin Water Treatment Go-to-Market Strategy Retail (DIY) Wholesale Distribution Water Quality Dealers y-N ve Western V1 7 — ane ZF PURONICS Zs STERLING STERLING STERLING WATER TREATMENT WATER TREATMENT AQUA... WATER TREATMENT Waterite Waterite ———~_ Waterite = — Hellenbrand’
Slide 11: Headwater Distribution Companies
A @ ’ HEADWATER ‘ew COMPANIES Headwater Distribution Companies * Extend our position in groundwater * Move closer to contractor * Optimize supply chain * Opportunities to move into adjacencies: * Filtration * Treatment ¢ Irrigation * Commercial * Gicon Pump & Equipment acquired December 2020 11
Slide 12: Fueling Evolution
< A > Franklin Electric 4 Fueling Evolution Year: 2000 Year: 2020 PUMPS & CONTROLS TOTAL SYSTEMS Gl _—~ =- “ ry Proven growth from listening to and serving our customers 12
Slide 13: Foundation for Growth
@ Frantsin Electric ~~ Foundation for Growth Customer Centricity Sacniie cS” 13
Slide 14: Driving productivity and building competitive advantage
rs Franklin Electric Continue driving productivity & building a competitive advantage by closely connecting the value chain to the customer. Functional focus areas 1. Order Management, Distribution & Logistics — Customer centric fulfillment to achieve service level agreement (SLA) 2. Central Plannin
Slide 15: Innovations in Water Systems
rs Franklin Electric Innovations in Water Systems High-Efficiency High-Efficiency Permanent —_ variable Frequency Drives Inline Delta Pressure Submersible Pumps Magnet Motors with Bluetooth-Enabled Mobile Apps Booster Patent-pending design 4 & G inch encapsulated Residential/Commercial HVAC, High-Ri
Slide 16: Innovations in Fueling Systems
rs Franklin Electric Innovations in Fueling Systems Evo 200/400 FFS PRO Verify Corrosion Control Fuel Management Installation Assurance In-Tank & In-Sump Highly accurate Automated Cloud service that provides Mitigates corrosion and Tank Gauges for small to remote installation quality protects sites
Slide 17: Commitment to Safety
< A > Franklin Electric 4 Commitment to Safety Promote a culture of continuous health and safety training Engagement across all levels Prioritize employee health and wellness * Actively monitor progress 1 * TRR down 33% in 2020 ¢ LTR down 17% in 2020 Senior Management Reviews at least monthly Decoup
Slide 18: Customer-focused innovation
rs Franklin Electric Customer-focused innovation Enhance position in industrial channel 10 year Developing Region Growth CAGR of 8% Drive synergies through the entire U.S. Groundwater Pro channel Extend leadership position via quality, availability and cost Optimize distribution network and manufact
Slide 19: Capital Allocation Performance & Priorities
Q Franktin Electric = oe \ Capital Allocation Performance & Priorities 2006 — 2020 FCF Deployment Share Repurchases 15% CAPEX : “Acquisitions 35% {a) At 6/30/21. Priorities for Cash Deployment Opportunistic approach to acquisitions with >$600M in deal capacity «) Reinvestment in business to drive or
Slide 20: Acquisitions are a critical engine for growth
< A > Franklin Electric 4 Acquisitions are a critical engine for growth Key Priorities Outcomes Criteria ¢ Demonstrated ability to grow and drive incremental operating margins More FELE- branded products in distribution Product Line Extensions ¢ Focus on risk adjusted IRR and EPS accretion New platf
Slide 21: Financial Performance Summary
Financial Performance Summary @ Franklin Electric
Slide 22: Financial Performance Summary
Financial Performance Summary Consolidated Sales $1,400 $1,298 $1,315 gy 947 1,229 $1,200 $1,125 r = $1,000 $950 . $800 j C 2 Be} % $600 $400 ; K N FREE CASH FLOW? §200 CAGR CAGR a ¥2016-2020 FY2016-2020 2016 2017 2018 2019 2020. = YTD 2021 EPS (before restructuring) $3.00 ; 2.40 $2.50 $1.92 $2.26 $
Slide 23: Cash Generation & Returns
$120 $100 160% 140% 120% 100% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% $82 2016 15.1% 2016 Cash Generation & Returns Net Income ($M) $95 i os : : Free Cash Flow Conversion 18 a0a%s 101% ! 43% 1 FCF = Cash Flow from Operations less net CAPEX ? ROIC based on pre-tax calculation 13.1% 2017 Free Cash Flow (SM)
Slide 24: Organic Sales Growth
rs Franklin Electric Organic Sales Growth: 40.0% Water Systems MFuelingSystems Distribution 34.2% 30.0% 20%: 17.1% 15.0% 15.5% 12.5% 10.0% 8.2% 8.1% = | [| = = 0.1% oo, | [] —_ -0.1% -2.5% -10.0% -20.0% -16.7% 2017 2018 2019 2020 2021 YTD 2 Distribution first measured in 2018. Excludes acquisitions
Slide 25: 1) At 12/31/20
1) At 12/31/20
Slide 26: For More Information
dik pales For More Information: Jeff Taylor, VP — CFO, Franklin Electric Co. Inc. @ Franklin Electric jeffery.taylor@fele.com. 260-827-5520
Franklin Electric — Investor Presentation (November 2021) on 6ix