Franklin Electric Co., Inc. · NASDAQ:FELE
Franklin Electric — Baird 2015 Industrial Conference
17 slides from Franklin Electric's conference presentation, Nov 9, 2015
Slide 1: Baird 2015 Industrial Conference
Baird 2015 Industrial Conference Franklin Electric Co. Inc. (FELE) November 9, 2015
Slide 2: Safe Harbor Statement
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, profit margins, inventor
Slide 3: 2015 Results
3 2015 Results 1st Half 2015 vs PY B(W)% Sales $473.2 (8%) Gross Profit $151.7 (15%) % of Sales 32.1% SG&A $111.4 1% % of Sales 23.5% Adjusted OI $41.4 (40%) % of Sales 8.7% Adjusted EPS $0.67 (30%) 3rd Quarter 2015 vs PY B(W)% $232.5 (16%) $76.8 (14%) 33.0% $47.7 14% 20.5% $29.5 (17%) 12.7% $0.45 (
Slide 4: Two Current Issues
4 Two Current Issues
Slide 5: What's Changed
What’s Changed 5 3Q YTD 2014 Revenue $794 M Exchange Rates ($66) Oil Prices ($43) Acquisitions $20 All Other - Organic $ 1 3Q YTD 2015 Revenue $706 M
Slide 6: Business Segments
Business Segments 6 Water Systems 77% Fueling Systems 23% *Based on 2015 Q3 YTD revenue *
Slide 7: Macro Trends
Macro Trends • 5 Billion people moving into the middle class drives growth in: – Consumption of water – Number of vehicles • Water scarcity, degradation of water quality, increase in water re-use • Increased regulation • Efficiency (energy savings) • Integrated products (systems) • More connected (s
Slide 8: Our Strategy
Our Strategy To grow as a global provider of water and fuel pumping systems, through geographic expansion and product line extensions, leveraging our global platform and competency in system design. 8
Slide 9: Sales in Developing Regions
Sales in Developing Regions 9 2010 $0 $50 $75 $100 $125 $150 $175 $200 $225 2004 2005 2006 2007 2008 2009 $25 2011 $250 $300 $350 2012 $325 $275 2013 $65 M 2014 $400 $375 $401 M $361 M $340 M $306 M $258 M $217 M $232 M $161 M $104 M $85 M
Slide 10: Water Systems Sales Growth Rates in US$ and Local Currency
MENA (IMPO) US $ Local 13.0% 22.3% Water Systems Sales Growth Rates in US $ and Local Currency 10 LATIN AMERICA US $ Local 4.1% SOUTHERN AFRICA US $ Local (6.2%) APAC US $ Local 13.0% 2011-2014 (3-year CAGR) 15.3% 6.9% 20.6%
Slide 11: Fueling Systems Regional Growth Rates
Fueling Systems Regional Growth Rates 11 United States 49% Developed Non-US 19% Developing Regions 32% *Based on 2014 revenue Developed Regions 5 YEAR CAGR 9.0% Developing Regions 5 YEAR CAGR 24.0%
Slide 12: Water Systems Sales
Water Systems Sales 12 Groundwater Pumping Systems 60% Surface Pumps 40% * *Based on 2015 Q3 YTD revenue
Slide 13: Water Systems Sales
Water Systems Sales 13 Irrigation & Industrial Groundwater Pumping Systems 25% Residential Groundwater Pumping Systems 35% Residential Surface Pumps 20% Irrigation & Industrial Surface Pumps 20% * *Based on 2015 Q3 YTD revenue
Slide 14: Water Systems Sales
Water Systems Sales 14 * Irrigation & Industrial Groundwater Pumping Systems 25% Residential Groundwater Pumping Systems 35% Residential Surface Pumps 20% Irrigation & Industrial Surface Pumps 20% *Based on 2015 Q3 YTD revenue #2 Global Supplier to residential water pumping systems distribution chan
Slide 15: New Products
New Products 15 SEWER BYPASS COMMERCIAL BOOSTING SOLAR PUMPING CONSTANT PRESSURE WASTEWATER OVERFILL PREVENTION
Slide 16: Uses of Cash - 2006 to YTD 2015
Uses of Cash - 2006 to YTD 2015 16 Dividends/Stock Repurchase Capital Expenditures & R&D Acquisitions $255 M $388 M $449 M 23% 36% 41%
Slide 17: Baird 2015 Industrial Conference
Baird 2015 Industrial Conference Franklin Electric Co. Inc. (FELE) November 9, 2015