Franklin Electric Co., Inc. · NASDAQ:FELE
Franklin Electric — Q3 2024 Earnings Presentation
16 slides from Franklin Electric's earnings presentation, Oct 29, 2024
Slide 1: Q3 2024 Earnings Presentation
Q3 2024 Earnings Presentation @ Franklin Electric October 2024
Slide 2: Safe Harbor Statement
@ 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, pro
Slide 3: Q3 CEO Summary
< Q > Franklin Electric 4 Q3 CEO Summary Continued execution in a muted market with strong free cash flow generation CEO Transition Plan Executed with a Productive Summer Q3 orders growth delivered strong but slightly lower margins * Demand remains healthy across key markets Strategy execution: ¢ Ad
Slide 4: Franklin Electric is committed to
(9 Franklin Electric Franklin Electric is committed to: i * Our customers, employees, and community . i ASE Secs —— ¢ Being a great place to work a * Quality and | @usarooay service in the AMERICA’S a industries we CLIMATE te serve LEADERS ers 2024 Statistara [ose
Slide 5: Q3 2024 Overview
q Q > Franklin Electric 4 Q3 2024 Overview * Financial Performance: $538 M $531M * Sales of $531M, down 1% YoY iS) | * Operating income of $74M, down 6% Yoy, with operating margin of 13.8% — * GAAP EPS of $1.17, down 5% YoY CaaS seed) Operating Income $78M weather across the US $74M * Strong operati
Slide 6: Water Systems
Water Systems New products in wastewater and mining provide a hedge to weather and macroeconomic headwinds Growth in groundwater, Europe, LATAM (excluding FX), and APAC Segment Update / Pulse (ob. Higher-value technology products continue to drive the business Strong Margins Normalized backlog and Y
Slide 7: Q3 2024 FELE Performance
Q3 2024 FELE Performance $550 $538 M $9M $531M $500 -$11M “$5M $450 $400 Down 1% $300 $250 a ($m) Q3 2023 Volume/Price Acquisitions FX Q3 2024 Sales of $531.4 million declined 1% YoY + Lower volumes in Fueling Systems and Distribution, partially offset by increases in Water Systems * 2023 Acquisitio
Slide 8: Q3 2024 Segment Performance
@ Franklin Electric —— ; 5 a Q3 2024 Segment Performance (in Millions US$) Operating Operating Sales Income Margin Comments + Alltime third-quarter record for sales and operating income $302.2 $52.8 17.5% * Sales of large dewatering equipment down from record 2023 levels up 2% up 0.2% down 30 bps +
Slide 9: Balance Sheet and Cash Flow
& Franklin Electric 4 Balance Sheet and Cash Flow {in Millions US$) Nine Months Ended Sep. 30, INet debt, December 2023 $ (15.4) 2024 2023 Free cash flow 122.9 : Acquisitions (1.2) [Net income $ 147.3 $155.9 Dividends paid (35.4) ; _ Proceeds from issuance of common stock 53 Depreciation andiamontza
Slide 10: Capital Allocation Performance & Priorities
Franklin Electric Capital Allocation Performance & Priorities Share Repurchases 16% 2007 - 2023 Dividends 18% FCF Deployment | 1 At 9/90/24 based on maximum leverage allowed in existing credit agreements, Priorities for Cash Deployment Reinvestment in business to drive organic growth Dividends paid
Slide 11: 2024 Outlook
& Franklin Electric 4 2024 Outlook Highlights Prior FY Guide Current FY Guide * Solid underlying demand in as of July 23, 2024 as of October 29, 2024 core markets * Maintaining strong margins Sal $2.10 to $2.17 Billion ~$2.0 Billion * Managing through ales up 2-5% down ~3% transient weather-related
Slide 12: Non-GAAP Reconciliations
@ Franklin Electric Non-GAAP Reconciliations
Slide 13: 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 14: Reconciliation of Non-GAAP Financial Measure
q Q > Franklin Electric 4 Reconciliation of Non-GAAP Financial Measure Total Debt to Net (cash) debt $In millions As of September 30, As of December 31, 2024 2023 Total debt $ 88.0 $ 100.4 Less: cash and cash equivalents (106.3) (85.0) Net (cash) debt $ (18.3) $ 15.4
Slide 15: 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 Nine Months Ended September 30, 2024 2023 Cash flows from operating activities $ 151.1 $ 198.6 Cash flows from investing activities $ (29.3) $§ (36.8) Cash flows from financing a
Slide 16: Thank You
& Franklin Electric 4 THANK YOU 7 Be Jeffery L. Taylor, VP, CFO Franklin Electric Co., Inc. InvestorRelations@fele.com 260-827-5520