November 8, 2016
Baird 2016 Global Industrial Conference
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, inventory levels, foreign currency translation rates,
liquidity expectations, business goals and sales growth, involve risks and uncertainties, including but not
limited to, risks and uncertainties with respect to general economic and currency conditions, various
conditions specific to the Company’s business and industry, weather conditions, new housing starts, market
demand, competitive factors, changes in distribution channels, supply constraints, effect of price increases,
raw material costs, technology factors, integration of acquisitions, litigation, government and regulatory
actions, the Company’s accounting policies, future trends, and other risks which are detailed in the
Company’s Securities and Exchange Commission filings, included in Item 1A of Part I of the Company’s Annual
Report on Form 10-K for the fiscal year ending January 2, 2016, Exhibit 99.1 attached thereto and in Item 1A
of Part II of the Company’s Quarterly Reports on Form 10-Q. These risks and uncertainties may cause actual
results to differ materially from those indicated by the forward-looking statements. All forward-looking
statements made herein are based on information currently available, and the Company assumes no
obligation to update any forward-looking statements.
2
Moving Water. Moving Fuel. Moving Forward.
Franklin Electric is a global leader in the production and marketing of systems and components for the movement of water and
automotive fuels. Recognized as a technical leader in its products and services, Franklin serves customers around the world in
residential, commercial, agricultural, industrial, municipal, and fueling applications. Franklin Electric offers numerous solutions for
cost-effective, efficient, reliable water systems needs.
3
• Founded in 1944, Franklin manufactured the first
water-lubricated submersible motor for water systems,
and the first submersible motor for fueling systems.
• Headquarted in Fort Wayne, Indiana, Franklin employs
5,000 people globally located in over 50 locations.
• With a business mix of 77% water systems and 23% fueling
systems, Franklin sales are approximately $1 billion.
Franklin Water System Markets
Franklin Energy Systems
Agricultural Residential Commercial Industrial
Construction Mining Municipal Solar
Lake & Pond Fire Prevention
Franklin Fueling Systems
Power Reliability Systems
Artificial Lift Systems
3Q YTD 2016 - Consolidated Franklin Electric Co. Inc.
4
3Q YTD
2016
3Q YTD
2015
% +(-)
Prior Year
Sales $710 $706 1%
Operating Income(1) $85.6 $70.9 21%
EPS(1) $1.28 $1.12(2) 14%
(1) After non-GAAP adjustments – see 10-Q for reconciliation to GAAP EPS
(2) Adjusted earnings per share includes approximately $0.10 of benefits from the Pioneer acquisition in 1Q 2015
($ in millions)
Strategy
5
Strategic Focus
6
Residential, Agricultural, Commercial Water Systems
$6.0 B Global Market Potential(1)
Complete Fueling Systems
$1.2 B Global Market Potential(1)
(1) Current Franklin management estimates
Strong Brand Franchise
#1 or #2 in
Addressable Markets
Growing Global Footprint
Fragmented
Customer Base
Fragmented
Supply Base
Mission Critical Products
and Systems
Applications with High
Cost of Downtime
Contractors Value
Technical Support
Deep Understanding
of Applications
7
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.
FE Strategy Continues to Drive Organic Growth
5.8%
4.9%
6.8%
7.8%
-7.2%
3.9%
8.5%
7.1%
5.9%
11.7%
2.1%
2.9%
6.3%
5.4%
6.6%
8.6%
-5.2%
3.7%
2011 2012 2013 2014 2015 YTD 3Q 2016
Water Fueling Consolidated
8 * Organic growth calculation excludes impact of foreign currency and revenue from acquisitions for the first 12 months post closing.
Weather & Oil Prices
Adversely Impacted
2015 Results
Sales in Developing Regions
9
$92
$149
$218
$202
$242
$288
$316
$336
$372
$355 $360
$-
$50
$100
$150
$200
$250
$300
$350
$400
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
($ in millions)
*
*2016 is Last Four Quarters Through Q3
Water Systems
10
MENA (IMPO)
US $ Local
6.1% 18.8%
Sales Growth Rates in US $ and Local Currency
11
2010-2015 CAGR
LATIN AMERICA
US $ Local
5.8% 19.1% SOUTHERN AFRICA
US $ Local
(7.6%) 2.2%
APAC
US $ Local
8.1% 21.4%
• 2008 – Acquired Motobombas Schneider
– Leading producer of surface pumps
• Residential, Agriculture, Commercial
• 5,000 active customers
• 2009 – Imported Franklin Brand
– Addressed premium market
– Established Field Service
• 2014 – Acquired Bombas Leao
– Leading Brazilian submersible pump brand
– 50 year heritage
• 2015 – Integrated Bombas Leao
– Leveraged Schneider and Franklin infrastructure
12
▶ Today – Franklin holds a leading position in the Brazilian pump market(1)
19% annual growth from 2010 to 2015
Geographic Expansion: Brazil
(1) Source: Government filings
Leverage Product Platforms Across Developing Regions
13
Engineered Systems
High Efficiency Products
• Permanent Magnet Motors – 5-10%
efficiency improvement
• Submersible Pumps – 3-8%
• Async Submersible Motors – 3-5%
• Surface Pumps – 3-10%
Drives – Pumping and HVAC
• New Pressure Boosting Products
– Inline 400 Booster
– VMS Booster Packages
– VMS MonoBlock Pumps
• New Wastewater Packages
– PitPlus
– PowerSewer
• New SubDrive Family – New features and
extended HP range
• New HVAC Drives – Integrated into Huntair
and Greenheck fan systems
• Deschutes Drive Family – HVAC and
Pumping Applications
Solar
• New Drive Family – 0.75 to 10 HP
– Optimized for performance, cost and reparability
– More water per photon = reduced panel count
– Modular design enables rapid extension
• New Positive Displacement Pumps
– Completing range (higher flows/pressures)
– Executing cost reduction tasks
Product Development Focus
14
Fueling Systems
15
Fueling Systems
16
$131
$217
2010 2015
Sales
11%
CAGR
Operating Income
$22
$52
2010 2015
19%
CAGR
Revenue Growth by Region
2010-2015 CAGR
▲
16%
▲
9%
Developed Developing
($ in millions)
Diesel Exhaust Fluid System
Variable Speed Technology Overfill Prevention Reinvented
• Industry’s only complete system
– Submersible pump
– Fluid level detection
– Piping and containment
– Automatic recirculation control to
prevent DEF/AdBlue® from freezing
• Most robust, lowest cost solution
• Fills cars faster
• Efficient energy consumption
• Higher, more consistent flow rates
• Reduces system wear
• Preserves the life of the system
Turbine Pump Interface
• Network fuel management system
with submersible pumps for
enhanced control and management
• Minimizes equipment downtime
resulting in lost fuel sales
Product Innovation
17
• Positive shutoff with zero leak paths
• Simplified installation
• One model for high and low flow
• Test without removing from riser
• Simplified offering with all approvals
Fueling Systems
18
• Industry's most powerful complete
site quoting tool
• Built by Franklin design optimization
engineers
• Powered by years of petroleum
equipment design expertise
Fueling Systems
19
Shell New Global 5 Year Agreement
• Now includes complete end-to-end
underground fuel system
• Expanded to address dealer network
of 28,000 branded sites
• Introduces new services which enhance
safety and reduce total cost of ownership
Capital Allocation
20
Capital Allocation
21
Return to Shareholders $263
CAPEX/R&D $402
Acquisitions $449
Total $1,114
Last 10 Years
Debt to EBITDA 1.3
Debt to Total Capital 23%
2016 3Q YTD
($ in millions)
24 Consecutive Annual Dividend Payment Increases
22
$-
$0.05
$0.10
$0.15
$0.20
$0.25
$0.30
$0.35
$0.40
$0.45
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Acquisition Timeline
23
2016 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2004
JBD
FUE
LI
N
G
FUE
LI
N
G
W
A
TE
R
2015
Baird 2016 Global Industrial Conference
November 8, 2016