Franklin Electric Co., Inc. · NASDAQ:FELE
Franklin Electric — Investor Presentation (April 2021)
23 slides from Franklin Electric's investor presentation, Apr 27, 2021
Slide 1: Investor Presentation 2Q-2021
Investor Presentation 2Q-2021 Gregg Sengstack, Chairperson and CEO (is Franklin Electric John J. Haines, VP — Chief Financial Officer April 2021
Slide 2: Safe Harbor Statement
Pe SE 4 I 2 @ 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 red
Slide 3: Strategic Focus
M.tho o bhaise «6 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
Slide 4: Investment Highlights
@ Franklin Electric Investment Highlights -)¢ market position in groundwater pumping systems Track record of ‘ J across segments Advantageous f to extend leadership and capture revenue in developing markets Proven cash flow generation with since 2016 (5 yr. CAGR) Strong balance sheet with 0 and oppo
Slide 5: Franklin Electric Segment Overview (Revenue YTD 2020)
@ Franklin Electric Franklin Electric Segment Overview (Revenue YTD 2020) GROUNDWATER ; cr Cr REYWATER DISTRIBUTION $328M (25%) FUELING SYSTEMS $245M (19%)
Slide 6: Performance by Segment
@ Franklin Electric Performance by Segment : WATER SYSTEMS Q1 2021 YoY Net Sales: $198M up 20% (18% organic growth) FY 2020 YoY Net Sales: $735M down 6% (-3% organic growth) MARKET OPPORTUNITY >$6.0B 1 Market opportunity based on management estimates as of Q42020 DISTRIBUTION Qi 2021 YoY Net Sales:
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
A &! HEADWATER ‘eT 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
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
@ Franklin Electric Foundation for Growth Customer Centricity Roaannen re” U 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 fulfillment to achieve service level agreement (SLA) 2. Central Plann
Slide 12: Innovations in Water Systems
®& Franklin Electric 4 High-Efficiency Submersible Pumps Patent-pending design configurations exceed U.S. Dept of Energy regulations Innovations in Water Systems High-Efficiency Permanent Magnet Motors 4 & 6 inch encapsulated submersible motors with lower operating costs. Variable Frequency Drives w
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: Commitment to Safety
< A } Franklin Electric 4 Commitment to Safety Promote a culture of continuous health and safety training Engagement across all levels Prioritize employee health and wellness * Actively monitor progress 1 * TRR down 33% in 2020 * LTR down 17% in 2020 Senior Management Reviews at least monthly Decoup
Slide 15: Customer-focused innovation
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 manufacturing footprint Becom
Slide 16: Capital Allocation Performance & Priorities
Capital Allocation Performance & Priorities 2006 — 2020 FCF Deployment Share Repurchases 15% CAPEX 27% F ” Acquisitions 35% {a) At3/31/21 Priorities for Cash Deployment Opportunistic approach to acquisitions with >$640M in deal capacity «) Reinvestment in business to drive organic growth Dividends p
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: Consolidated Sales
Consolidated Sales Financial Performance Summary $1,298 2018 $1,315 2019 EPS (before restructuring) $1,400 $ 1,125 $1,200 , $1,000 $950 $800 $600 $400 $200 S$ 2016 2017 $2.50 $1.92 $2.00 $1.64 $1.50 $1.00 $0.50 S- 2016 2017 FCF = Cash Flow from Operations less net CAPEX ?ROIC based on pre-tax calcul
Slide 20: Cash Generation & Returns
@ Franklin Electric Cash Generation & Returns Net Income ($M) Free Cash Flow ($M)? $120 Se $200 $189 $101 $180 $100 $95 $160 $156 8 $79 $78 $140 $120 $107 $60 $100 $82 $80 $40 $60 xo $40 $34 $20 | cS $- 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Free Cash Flow Conversion ROIC2 = = mm son 160%
Slide 21: Organic Sales Growth
@ Franklin Electric Organic Sales Growth. 40.0% @ Water Systems @ Fueling Systems 30.0% 20.0% 15.0% 10.0% 8.2% 8.1% 3.1% 3.5% 2.5% Z | a 0.0% es 0.1% -10.0% 20.0% 2017 2018 2019 2 Distribution first measured in 2018. Excludes acquisitions for one year and impact of Foreign Currency translation. *202
Slide 22: Investment Highlights
@ Franklin Electric Investment Highlights -)¢ market position in groundwater pumping systems Track record of ‘ J across segments Advantageous f to extend leadership and capture revenue in developing markets Proven cash flow generation with since 2016 (5 yr. CAGR) Strong balance sheet with 0 and oppo
Slide 23: For More Information
For More Information: John J. Haines, VP — CFO, Franklin Electric Co. Inc. @ Franiin Electric jhaines@fele.com. 260-827-5442 23
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