Franklin Electric Co., Inc. · NASDAQ:FELE
Franklin Electric — Investor Presentation (March 2023)
18 slides from Franklin Electric's investor presentation, Mar 8, 2023
Slide 1: Investor Presentation 1Q-2023
NGFUEL ING FORWARD. Investor Presentation 1Q-2023 Gregg Sengstack, Chairperson and CEO @ Franklin Electric Jeff Taylor, VP — Chief Financial Officer February 2023
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
M.tka base | 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. ® Frantain Electric , ik UGE
Slide 4: Franklin Electric investment highlights
cy Franklin Electric -.- 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 - 1 and opportunity for investment History of returning capital to shareholders;
Slide 5: Franklin Electric Segment Overview (Revenue FY 2022)
cs Franklin Electric Franklin Electric Segment Overview (Revenue FY 2022) WATER SYSTEMS DISTRIBUTION FUELING SYSTEMS $1,158M (54%) $668M cise $334M (15%) Taagy ET
Slide 6: Performance by Segment
cs Franklin Electric Performance by Segment!” WATER SYSTEMS DISTRIBUTION FUELING SYSTEMS NET SALES GROWTH Q4 2022 YoY $281.3M up 9% (15% organic growth) FY 2022 YoY $1,157.5M up 20% (21% organic growth) NET SALES GROWTH Q4 2022 YoY $148.9 up 27% (12% organic growth) FY 2022 YoY $668.1M up 34% (20% o
Slide 7: Global Presence & Opportunity
cs Franklin Electric Global Presence & Opportunity On a daily basis, the world uses... a Z > . a ~ HI gallons of Pa - —_ — 3 Tri I I ton fresh water - ° Se ~ oni: gallons of ee oe° 1 Billion “°° ‘ fuel % % é To meet this demand, Franklin Electric e produces 20,000 pumps, motors, drives, 2 x 4 and co
Slide 8: Water Systems
cy Franklin Electric Water Systems ‘WATER SYSTEMS Water treatment brands acquired Residential, agricultural, municipal and industrial AQUA PURONICS applications SYSTEMS" oe: Hellenbrand Water Treatment Warterite rods ae i Ek * High fragmentation of water treatment providers in Mebietien tne, North A
Slide 9: Fueling Systems
& Franklin Electric WV Fueling Systems FUELING SYSTEMS Advantageous Posi Global passenger vehicle fleet by drivetrain - Economic Leader in fuel pumping, containment, and monitoring and Trahstioniscenario' control systems Billion 16 = Battery Fuel Systems Hs electric . oe i Plug-in ¢ Advances in petr
Slide 10: Our Vision
cy ranklin Electric Our Vision To be an indispensable partner to our customers _ Commitment to Safety Promote a culture of continuous health and safety training + Engagement across all levels + Prioritize employee health and wellness + Actively monitoring progress by Senior Management ; » Operationa
Slide 11: Strategy for long-term shareholder returns
cy ranklin Electric Continue to drive organic growth Maintain competitive advantages that lead to operational efficiencies Customer-focused innovation Enhance positio! industrial channel 10 year Developing Region Growth CAGR of 7% Drive synergies through the entire U.S. Groundwater Pro channel Exten
Slide 12: Capital Allocation Performance & Priorities
Capital Allocation Performance & Priorities Priorities for Cash Deployment Share Repurchases 15% | F t Reinvestment in business to drive Dividends 2007 — 2022 whe FCF Deployment supeiste arena Dividends paid CAGR of 9% (2007 to 2022) Opportunistic share repurchases (a) Ae 12/31/22 12
Slide 13: Acquisitions are a critical engine for growth
Acquisitions are a critical engine for growth More FELE-branded products in Product Line Extensions distribution ; : e New platforms and bolt-ons to extend Geographic Expansion h . reac Y Demonstrated ability to grow and drive incremental operating margins Y Focus on risk adjusted IRR and EPS accret
Slide 14: Financial Performance Summary
Financial Performance Summary @ Franklin Electric 14
Slide 15: Financial Performance Summary
Franklin Electric Financial Performance Summary Consolidated Sales ($M) $2,044 $1,662 $1,298 $1,315 $1,247 ES I | | r | (BEFORE RESTRUCT.) 2 CAGR ‘ ; =a FY2018-2022 2018 2019 2020 2021 2022 EPS (Before Restructuring) $4.00 1 6 A% $3.26 a $2.26 $2.07 $2.18 Kelle En __ *ROIC based on after-tax calcula
Slide 16: Cash Generation & Returns
Cash Generation & Returns Net Income ($M) Free Cash Flow ($M)? $189 $189 $155 $156 $106 $96 $101 $107 $101 L] [| [J 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Free Cash Flow Conversion ROIC? 187% 163% 16.4% 13.8% 12.2% 12.0% 12.6% 101% 65% | | = 2018 2019 2020 2021° 2022? 2018 2019 2020 2021
Slide 17: Organic Sales Growth
& Franklin Electric WV Organic Sales Growth: mWater @Fueling m Distribution 40.0% 54% 30,0% 21.5% 19.66 20.0%6 17.4% 15.0% 125% 10.0% 0.0% 0.19 -25% -10.0% -20.0% “16.7% 2018 2019 2020 2021 2022 + Excludes acquisitions for one year and the impact of foreign currency translation. 17
Slide 18: For More Information
MING FUEL MOVING FORWARD. For More Information: Jeff Taylor, VP — CFO, Franklin Electric Co. Inc. @ Franklin Electric jeffery.taylor@fele.com. 260-827-5520 18
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