Franklin Electric Co., Inc. · NASDAQ:FELE
Franklin Electric — Investor Presentation (February 2021)
23 slides from Franklin Electric's investor presentation, Feb 17, 2021
Slide 1: Investor Presentation 1Q-2021
Investor Presentation 1Q-2021 Gregg Sengstack, Chairperson and CEO (is Franklin Electric John J. Haines, VP — Chief Financial Officer February 2021
Slide 2: Safe Harbor Statement
>» ® _ > q ge \ “i Fes, aa ye T call az, a, @ 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
Slide 3: Strategic Focus
M@.Slo biiae 06 | |L 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 ig
Slide 4: Investment Highlights
@ Franklin Electric Investment Highlights : market position in groundwater pumping systems Track record of Q | across segments Advantageous ot to extend leadership and capture revenue in developing markets Proven cash flow generation with ’. since 2016 (5 yr CAGR) Strong balance sheet with | and opp
Slide 5: Franklin Electric Segment Overview (Revenue YTD 2020)
@ Franklin Electric Franklin Electric Segment Overview (Revenue YTD 2020) DISTRIBUTION $328M (25%) FUELING SYSTEMS $245M (19%) \ Apecrares Sot 3 WATER WELL’ DRILLING ‘SUPPLIES sel OTHER INDUSTRIAL ~
Slide 6: Performance by Segment
@ Franklin Electric Performance by Segment: WATER SYSTEMS Q4 2020 YoY Net Sales: $189M up 1% (4% organic growth) 2020 YTD YoY Net Sales: $735M down 6% (-3% organic growth) MARKET OPPORTUNITY >$6.0B 1Market opportunity based on managementestimates as of Q42020 DISTRIBUTION Q4 2020 YoY Net Sales: $S98
Slide 7: Water Systems Evolution
®& Franklin Electric =a \ Water Systems Evolution 2000 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: Headwater Distribution 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 A 4 HEADWATER ew COMPANIES
Slide 9: Fueling Evolution
@ Franklin Electric Fueling Evolution 2000 2020 PUMPS & CONTROLS TOTAL SYSTEMS Proven growth from listening to and serving our customers
Slide 10: Foundation for Growth
Orono Foundation for Growth Corporate Stewardship " a is 10
Slide 11: Driving productivity and building competitive advantage
®& Franklin Electric 4 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 fulfillmentto achieve service level agreement (SLA) 2. Central Planni
Slide 12: Innovations in Water Systems
@ Frantdin Electric —- a = 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 &6 inch encapsulated Residential/Commercial HVAC, Hi
Slide 13: Innovations in Fueling Systems
@ 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 f
Slide 14: Corporate Stewardship
@ Franklin Electric Corporate Stewardship Corporate strategy aligned with ESG principles; Focus on increasing transparency ¢ Engagement across all levels . * Prioritize employee health and Operational wellness Integrity ¢ Actively monitor progress1 ¢ TRR down 33% in 2020 ¢ LTR down 17% in 2020 * Sen
Slide 15: Customer-focused innovation
@ 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 manufactu
Slide 16: Capital Allocation Performance & Priorities
Capital Allocation Performance & Priorities 2006 — 2020 FCF Deployment Priorities for Cash Deployment Share Repurchases CAPEX 1 Opportunistic approach to acquisitions 27% with >$600M in deal capacity Reinvestment in business to drive organic growth Dividends paid CAGR of 8% (2006 to 2020) Opportunis
Slide 17: Acquisitions are a critical engine for growth
@ Franklin Electric 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 platforms *
Slide 18: Financial Performance Summary
Financial Performance Summary (is Franklin Electric 18
Slide 19: Financial Performance Summary
Financial Performance Summary Consolidated Sales $1,400 $1,298 $1,315 $1,247 $1,200 $1,125 ; $1,000 $950 I 2 3 % $800 _. $600 J ! FREE CASH FLOW? $400 AGR CAGR ms y 2020 FY2016-2020 2016 2017 2018 2019 2020 EPS (before restructuring) $2.50 $2.26 $2.18 (0) $2.00 $1.92 wa0e 16.2% [EPS $1.64 ROIC (BEFO
Slide 20: Cash Generation & Returns
@ Franklin Electric Cash Generation & Returns Net Income ($M) Free Cash Flow ($M)! $120 $200 $189 Sus S101 $180 $100 $95. $160 $156 ee $79 $78 $140 $120 $107 $60 $100 $82 $80 $40 $60 $20 $40 $34 : a $- = = = = = $ 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Free Cash Flow Conversion ROIC2 ‘com
Slide 21: Organic Sales Growth
@ Franklin Electric Organic Sales Growth’ @ Water Fueling @ Distribution 20.0% 15.0% 15.0% 12.5% TOD 8.2% 8.1% 5.0% 3.5% 25% 3.1% 0.1% 0.0% 0.1% -5.0% -10.0% -15.0% “16.7% -20.0% 2016 2017 2018 2019 2020 1Distribution first measured in 2018. Excludes acquisitions for one year and impact of Foreign C
Slide 22: Investment Highlights
@ Franklin Electric Investment Highlights : market position in groundwater pumping systems Track record of Q | across segments Advantageous ot to extend leadership and capture revenue in developing markets Proven cash flow generation with ’. since 2016 (5 yr CAGR) Strong balance sheet with | and opp
Slide 23: Moving Forward. For More Information
GFUEL MOVING FORWARD. For More Information: John J. Haines, VP — CFO, Franklin Electric Co. Inc. @r ranklin Electric ihaines@fele.com. 260-827-5442 23
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