Franklin Electric Co., Inc. · NASDAQ:FELE
Franklin Electric — Investor Presentation (November 2024)
24 slides from Franklin Electric's investor presentation, Nov 6, 2024
Slide 1: Investor Presentation November 2024
Investor Presentation November 2024 @ Franklin Electric
Slide 2: Safe Harbor Statement
ee | li “a ro : @ 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.tho bi iaee lOc 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
Slide 4: Investment Highlights
@ Franklin Electric Investment Highlights! «= market position in groundwater pumping systems Track record of Stent Organic growth — (6 Cos Advantageous - |: to extend leadership and capture revenue in developing markets Strong balance sheet in = |=: =: © ©-):)) with opportunity for investment ” Hist
Slide 5: Customer-focused innovation and organic growth
* Customer-focused innovation Continue to drive organic ¢ Enhance position in industrial channel * 10 year Developing Region Growth CAGR of 8% growth * Drive synergies through the entire U.S. Groundwater Pro channel Maintain competitive advantages that lead to operational efficiencies Extend leaders
Slide 6: Performance by Segment
q A > Franklin Electric 4 WATER SYSTEMS DISTRIBUTION NET SALES Q3 2024 YoY $190.8M up 1% (2% organic decline) NET SALES Q3 2024 YoY $302.2M up 2% First Nine Months of 2024 YoY $904.4M down 2% (2% organic decline) (2% organic growth) Performance by Segment?23 First Nine Months of 2024 YoY $528.3M up
Slide 7: Franklin Electric Segment Overview (Revenue FY 2023)
} Franklin Electric Franklin Electric Segment Overview (Revenue FY 2023) WATER SYSTEMS DISTRIBUTION FUELING SYSTEMS $1,204M (55%) $673M (31%) $297M (14%) DE : —
Slide 8: On a daily basis, the world uses...
& Franklin Electric 4 On a daily basis, the world uses... ~3 Trillion @°"" fresh water w~w ene gallons of 1 Billion To meet this demand, Franklin Electric produces 20,000 pumps, motors, drives, and controls daily ~6,500 employees ~20 countries Global footprint 6 continents OVER 6,500 EMPLOYEES LOCAT
Slide 9: Water Systems
®& Franklin Electric WV Water Systems WATER TRANSFER/PUMPING SYSTEMS WATER TREATMENT ¢ 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
Slide 10: The Leading Source in Water Systems Distribution
& Franklin Electric 4 The Leading Source in Water Systems Distribution Headwater Companies invests in and operates wholesale distribution companies serving professional contractors in residential, agricultural é ry and commercial, industrial and municipal markets. os oy * A ry ae ry On-Site Inventor
Slide 11: Fueling Systems
q A > Franklin Electric 4 Fueling Systems FUELING SYSTEMS Advantageous Position in Global passenger vehicle fleet by drivetrain - Economic Transition Scenario Leader in fuel pumping, containment, and monitoring and control systems Billion 16 Battery Fuel Systems 14 electric . . . Plug-in ¢ Advances
Slide 12: Our Vision
q A > Franklin Electric 4 Our Vision To be an indispensable partner to our customers gen Commitment to Safety Promote a culture of continuous health and safety training Engagement across all levels * Prioritize employee health and wellness + Active progress monitoring by Senior Management PS Operati
Slide 13: Capital Allocation Performance & Priorities
(9 Franklin Electric Capital Allocation Performance & Priorities Share Repurchases 16% 2007 - 2023 18% FCF Deployment! Dividends 1 at 9/30/24 based on maximum leverage allowed in existing credit agreements Priorities for Cash Deployment Reinvestment in business to drive organic growth Dividends paid
Slide 14: Acquisitions are a critical engine for growth
(9 Franklin Electric . Acquisitions are a critical engine for growth Expanding our portfolio in adjacent products Leverage our global footprint to drive growth ¥ Demonstrated ability to grow and drive incremental operating margins Y Focus on risk adjusted IRR and EPS accretion v Historic cash flow m
Slide 15: Financial Performance Summary
@ Franklin Electric Financial Performance Summary
Slide 16: Financial Performance Summary
(9 Franklin Electric Financial Performance Summary? Consolidated Sales (SM) $2,044 $2,065 4 ? . 6 19% $1,662 $1315 $1,247 N EVENL EPS CAGR FY2019-2023 2019 2020 2021 2022 2023 EPS $3.97 $4.11 $3.25 - . Oo a 2019 2020 2021 2022 2023 1 ROIC based on after-tax calculation *Non-GAAP financial metrics re
Slide 17: Cash Generation & Returns
@ Franklin Electric Cash Generation & Returns? Net Income ($M) Free Cash Flow (SM)! $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% 9 163% - 16.4% 17.2% 142% i Box 12.6% a 65% 32% 2019 2020 2021? 2022° 2023 2
Slide 18: Non-GAAP Reconciliations
@ Franklin Electric Non-GAAP Reconciliations
Slide 19: 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 20: Reconciliation of Non-GAAP Financial Measure: Total Debt to Net Cash
& Franklin Electric 4 Reconciliation of Non-GAAP Financial Measure Total Debt to Net Cash $ In millions As of September 30, 2024 Total debt $ 88.0 Less: cash and cash equivalents (106.3) Net (cash) debt oI] (18.3) 20
Slide 21: Reconciliation: Operating Cash Flow to Free Cash Flow
& Franklin Electric 4 Reconciliation of Non-GAAP Financial Measure Operating Cash Flow to Free Cash Flow $ in millions Year Ended December 31, Nine Months Ended September 30, 2023 2022 2021 2020 2019 2024 2023 Cash flows from operating activities $ 3157 %$ 101.7 $ 129.8 $ 211.9 $ 177.7 $ 1511 $ 198.
Slide 22: Reconciliation: Reported sales growth to organic sales growth
& Franklin Electric 4 Reconciliation of Non-GAAP Financial Measure Reported sales growth to organic sales growth Net Sales Organic Growth % Growth as Reported Acquisitions % FX% %* 932024 Consolidated (1) (2) 1 (2) Water 2 (2) 2 2 Fueling (10) - - (10) Distribution 1 (2) 4 (2) Q3 YTD 2024 Consolidat
Slide 23: Reconciliation: Return on Invested Capital (ROIC)
q Q > Franklin Electric 4 Reconciliation of Non-GAAP Financial Measure Return on Invested Capital (ROIC) $ In millions Net Operating Income After Tax 2023 2022 2021 2020 2019 Operating income § 262.4 § 257.2 § 189.2 § 130.5 § 127.1 Income tax on operating income 52.5 54.0 37.8 27.9 25.6 Net operatin
Slide 24: Thank You
& Franklin Electric 4 THANK YOU 7 Be Jeffery L. Taylor, VP, CFO Franklin Electric Co., Inc. InvestorRelations@fele.com 260-827-5520
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