Franklin Electric Co., Inc. · NASDAQ:FELE
Franklin Electric — Investor Presentation (May 2024)
24 slides from Franklin Electric's investor presentation, May 3, 2024
Slide 1: Investor Presentation April 2024
NING FUEL “= MOVING FORWARD. Investor Presentation April 2024 @ Franklin Electric
Slide 2: Safe Harbor Statement
pe | fa 2 od cs @ 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
A ii Lisle 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 rif
Slide 4: Investment Highlights
c(i Franklin Electric Investment Highlights! -.- market position in groundwater pumping systems Track record of siste ga g across segments Advantageous ~ to extend leadership and capture revenue in developing markets Strong balance sheet with - - and opportunity for investment ” History of returning
Slide 5: Strategy to drive organic growth and shareholder return
cs ranklin Electric Continue to drive organic growth Customer-focused innovation Enhance positio! industrial channel 10 year Developing Region Growth CAGR of 8% Drive synergies through the entire U.S. Groundwater Pro channel Maintain competitive advantages that lead to operational efficiencies Exten
Slide 6: Performance by Segment
cs Franklin Electric Performance by Segment!23 WATER SYSTEMS DISTRIBUTION NET SALES GROWTH Q1 2024 YoY $147.0M up 3% (0% organic growth) NET SALES GROWTH Q1 2024 YoY $286.6M down 7% (8% organic decline) Fiscal Year 2023 YoY $1,203.7M up 4% Fiscal Year 2023 YoY $673.3M up 1% NET SALES GROWTH Q1 2024
Slide 7: Franklin Electric Segment Overview (Revenue FY 2023)
cs Franklin Electric Franklin Electric Segment Overview (Revenue FY 2023) WATER SYSTEMS DISTRIBUTION FUELING SYSTEMS $1,204M (55%) $673M (31%) $297M (14%) TFUELING = = HARDWARE = DEWATERING = 13%
Slide 8: Global Presence & Opportunity
ras Franklin Electric WV Global Presence & Opportunity On a daily basis, the world uses... ~3 Trillion 2" fresh water “1 Billion 1" fuel To meet this demand, Franklin Electric produces 20,000 pumps, motors, drives, and controls daily ~6,500 employees ~20 countries 6 continents = 5 rf 2 . a = o OVER
Slide 9: Water Systems
ras Franklin Electric WV Water Systems WATER TRANSFER/PUMPING ays: ¢ A leading global provider of complete water systems, including water well pumping systems, HVAC condensate removal, agricultural pumping systems, sump, sewage and effluent pumps, mobile pumping systems and control systems to name a
Slide 10: The Leading Source in Water Systems Distribution
cs Franklin Electric The Leading Source in Water Systems Distribution Headwater Companies invests in and operates wholesale distribution companies serving professional contractors in residential, agricultural and commercial, industrial and municipal markets. On-Site Inventory Program Headwater Compa
Slide 11: Fueling
c(i Franklin Electric FUELING Global passenger vehicle fleet by drivetrain - Economic Leader in fuel pumping, containment, and monitoring and Trahstioniscenario' control systems Billion 16 Battery Fuel Systems 14 os —— a -in * Advances in petroleum piping and containment systems, 12 hybrid electroni
Slide 12: Our Vision
cs ranklin Electric Our Vision To be an indispensable partner to our customers _ | To accomplish thes tive _ Commitment to Safety ‘3 Operational Integrity Promote a culture of continuous health and safety : 2 2 enema Ensuring proper practices and ethics throughout Ra etree rent amet levers our busin
Slide 13: Capital Allocation Performance & Priorities
Capital Allocation Performance & Priorities Priorities for Cash Deployment Share Repurchases 16% Reinvestment in business to drive organic growth Dividends 2007 — 2023 18% FCF Deployment Dividends paid CAGR of 12% (since 1993) Opportunistic share repurchases * 3/31/24 based on maximum leverage allow
Slide 14: Acquisitions are a critical engine for growth
Acquisitions are a critical engine for growth Expanding our portfolio in adjacent products Geographic Expansion Leverage au global footprint : to drive growth Product Line Extensions Y Demonstrated ability to grow and drive incremental operating margins Y Focus on risk adjusted IRR and EPS accretion
Slide 15: Financial Performance Summary
cy Franklin Electric Financial Performance Summary
Slide 16: Financial Performance Summary
Financial Performance Summary? Consolidated Sales ($M) $2,044 $2,065 $1,662 J $4,315 $1247 . 1 ET REVE EPS CAGR | I J q FY2019-20 FY2019-2023 2019 2020 2021 2022 2023 EPS $3.97 $4.11 17.2% + ROIC based on after-tax calculation >Non-GAAP financial metrics referenced in this slide include ROIC. A reco
Slide 17: Cash Generation & Returns
Cash Generation & Returns* Net Income ($M) Free Cash Flow ($M)? $276 $189 $195 $155, $189 $156 $96 $101 $101 || || - 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Free Cash Flow Conversion ROIC? 187% 163% 16.4% 112% 142% i 12.6% 13.8% 65% | | = 2019 2020 2021? 2022° 2023 2019 2020 2021 2022 2023
Slide 18: Non-GAAP Reconciliations
cy Franklin Electric Non-GAAP Reconciliations
Slide 19: Non-GAAP Reconciliations
cs Franklin Electric 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 prin
Slide 20: Reconciliation of Non-GAAP Financial Measure: Net Debt to Adjusted EBITDA
ras Franklin Electric WV Reconciliation of Non-GAAP Financial Measure Net Debt to Adjusted EBITDA $ In millions Total debt Less: cash and cash equivalents Net debt Net income Depreciation and amortization Income tax expense Interest expense EBITDA Net debt to EBITDA Three months ended March 31, 2024
Slide 21: Reconciliation: Operating Cash Flow to Free Cash Flow
cs Franklin Electric Reconciliation of Non-GAAP Financial Measure Operating Cash Flow to Free Cash Flow $ in millions Year Ended December 31, Quarter Ended March 31, 2023 2022 2021 2020, 2019 2024 2023 Cash flows from operating activi $ 315.7 $ 1017 $ 1298 $ 219 $ 1777 $ (14) $ (12.0) Cash flows fro
Slide 22: Reconciliation: Reported sales growth to organic sales growth
ras Franklin Electric WV Reconciliation of Non-GAAP Financial Measure Reported sales growth to organic sales growth Net Sales Organic Growth % Growth asReported Acquisitions % __ FX% et Qi 2024 Consolidated (5) (2) - (6) Water ”) (2) 1 (3) Fueling (15) - - (15) Distribution 3 (3) - - FY 2023"* Conso
Slide 23: Reconciliation: Return on Invested Capital (ROIC)
ras Franklin Electric WV Reconciliation of Non-GAAP Financial Measure Return on Invested Capital (ROIC) $ In mil Net Operating Income After Tax 2023 2022 2021 2020 2019 Operating income $ 2624 $ 2572 $ 1892 $1305 $ 1271 Income tax on operating income 52.5. 54.0 37.8 27.9 25.6 Net operating income af
Slide 24: Thank You
c(i Franklin Electric Jeffery L. Taylor, VP, CFO Franklin Electric Co., Inc. @ z_ T H AN K YO U InvestorRelations@fele.com N \Q 260-827-5520 24