MOVING WATER. MOVING FUEL. MOVING FORWARD.

Transcription

1 MOVING WATER. MOVING FUEL. MOVING FORWARD. ANNUALREPORT2013

2 SEPTEMBER 2013 COMPLETED RELOCATION TO OUR NEW WORLD HEADQUARTERS Franklin Electric Co., Inc Coverdale Road Fort Wayne, Indiana telephone: franklin-electric.com OPERATIONS WATER SYSTEMS Bolton, Ontario, Canada Brno, Moravia, Czech Republic Canby, Oregon, USA Cedegolo, Brescia, Italy Dueville, Vicenza, Italy Fresno, California, USA Gaborone, Republic of Botswana Grant County, Indiana, USA Hillsboro, Oregon, USA Izmir, Turkey Johannesburg, Gauteng, South Africa Joinville, Santa Catarina, Brazil Linares, Nuevo León, Mexico Little Rock, Arkansas, USA Melbourne, Victoria, Australia Monterrey, Nuevo León, Mexico Motta di Livenza, Treviso, Italy Oklahoma City, Oklahoma, USA Sanford, Florida, USA Shanghai, China Suzhou, Jiangsu, China Tokyo, Japan Wilburton, Oklahoma, USA Winnipeg, Manitoba, Canada Wittlich, Rhineland, Germany FUELING SYSTEMS Beijing, China Ipswich, Suffolk, United Kingdom Madison, Wisconsin, USA Saco, Maine, USA Wittlich, Rhineland, Germany DIRECTORS JEROME D. BRADY Retired President and Chief Executive Officer, C & K Components, Inc. (a) DAVID T. BROWN Retired President and Chief Executive Officer, Owens Corning (b,c) DAVID A. ROBERTS Chairman, President and Chief Executive Officer, Carlisle Companies, Inc. (b,c) R. SCOTT TRUMBULL Chairman of the Board and Chief Executive Officer, Franklin Electric Company, Inc. THOMAS R. VERHAGE Retired Vice President and Chief Financial Officer, Donaldson Company, Inc. (a) DAVID M. WATHEN President and Chief Executive Officer, TriMas Corporation (a,c) THOMAS L. YOUNG President, Titus Holdings, Ltd. (b,c) (a) Member of Audit Committee (b) Member of Management Organization and Compensation Committee (c) Member of Corporate Governance Committee INDEPENDENT AUDITORS Deloitte & Touche LLP, Chicago, Illinois, USA TRANSFER AGENT Wells Fargo Bank N.A., Minneapolis, Minnesota, USA STOCK EXCHANGE Franklin Electric common stock is traded on the NASDAQ Global Select Market under the symbol FELE.

3 OFFICERS R. SCOTT TRUMBULL Chairman of the Board and Chief Executive Officer GREGG C. SENGSTACK President and Chief Operating Officer JOHN J. HAINES Vice President, Chief Financial Officer and Secretary ROBERT J. STONE Senior Vice President and President, International Water Systems DELANCEY W. DAVIS Vice President and President, North America Water Systems STEVEN W. AIKMAN Vice President, Global Water Systems Engineering DANIEL J. CROSE Vice President, Global Water Product Supply THOMAS J. STRUPP Vice President, Global Human Resources NOTICE OF ANNUAL MEETING The Annual Meeting of Shareholders will be held on May 2, 2014, at 9 a.m. EDT, at the Franklin Electric World Headquarters, 9255 Coverdale Road, Fort Wayne, Indiana. SHAREHOLDERS INFORMATION The Company will provide a copy of supplemental information and Form 10-K Annual Report to the Securities and Exchange Commission free of charge to any shareholder requesting a copy in writing. Inquiries should be directed to: Corporate Secretary, Franklin Electric Co., Inc., 9255 Coverdale Road, Fort Wayne, Indiana VIDEO ANNUAL REVIEW Supplemental material to the 2013 Franklin Electric Annual Report is being presented in a digital video format at franklin-electric.com

4 FINANCIAL HIGHLIGHTS ($ millions, except per share amounts and ratios) OPERATIONS Net sales $ Operating income $ Operating income as a percent of sales % BALANCE SHEET Debt, net of cash, equivalents, and investments $ Shareowners equity $ Net debt as a percent of equity % CASH FLOW Net cash flow from operating activities $ Capital expenditures $ Acquisitions $ INVESTMENT DATA Return on average invested capital (1) % Weighted average common shares outstanding INCOME PER SHARE Per weighted average common share, assuming dilution $ DIVIDENDS PER COMMON SHARE $ (1) Return on average invested capital = (earnings before interest, taxes divided by average year-end net debt plus equity) NET SALES ($ millions) NET INCOME ($ millions) EARNINGS PER SHARE ($) 1,

5 FIVE YEAR FINANCIAL SUMMARY ($ millions, except per share amounts and ratios) (a) 2011 (b) 2010 (c) 2009 (d) OPERATIONS Net sales $ Gross profit $ Interest expense $ Income tax expense $ Franklin Electric Co., Inc. $ Depreciation and amortization $ Capital expenditures $ BALANCE SHEET Working capital (e) $ Property, plant, and equipment, net $ Total assets $ 1, Long-term debt $ Shareowners equity $ OTHER DATA Franklin Electric Co., Inc., to sales Franklin Electric Co., Inc., to average total assets % % Current ratio (f) Number of common shares outstanding PER SHARE Market price range High $ Low $ Franklin Electric Co., Inc., per weighted average common share Franklin Electric Co., Inc., per weighted average common share, assuming dilution $ $ Book value (g) $ Dividends per common share $ (a) Includes the results of operations of the Company s 70.5% owned subsidiary, Pioneer Pump Holdings, Inc., since the Company s acquisition of an additional 39.5% in the first quarter of 2012, 100% of the wholly owned subsidiary, Cerus Industrial Corporation, since its acquisition in the third quarter of 2012, and 100% of the wholly owned subsidiary, Flex-ing, Incorporated, since the Company s acquisition in the fourth quarter of (b) Includes the results of operations of the Company s 80% owned subsidiary, Impo Motor Pompa Sanayi ve Ticaret A.S., since its acquisition in the second quarter of 2011, and 100% of the wholly owned subsidiary, Vertical S.p.A., since the Company s acquisition of the remaining 25% in the fourth quarter of (c) Includes the results of operations of the Company s wholly owned subsidiary, PetroTechnik Limited, since its acquisition in the third quarter of (d) Includes the results of operations of the Company s 75% owned subsidiary, Vertical S.p.A., since its acquisition in the first quarter of (e) Working capital = Current assets minus current liabilities. (f) Current ratio = Current assets divided by current liabilities. (g) Book value = Shareowners equity divided by weighted average common shares, assuming full dilution. Shares and per share data have been adjusted for all periods presented to reflect a two-for-one stock split effective March 18, 2013.

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