Federal Signal Corporation · NYSE:FSS
Federal Signal — Investor Presentation (September 2007)
24 slides from Federal Signal's investor presentation, Sep 21, 2007
Slide 1: Advancing Security and Well-Being Every Day
Advancing Security and Well-Being Every Day Robert D. Welding Stephanie K. Kushner September 19, 2007
Slide 2: Safe Harbor
This presentation contains various forward-looking statements as of the date hereof and the Company undertakes no obligation to update these statements regardless of new developments or otherwise. Statements in this presentation that are not historical are forward-looking statements. These risks and
Slide 3: Investment Highlights
Strong management team 100+ years of product leadership Business transformation gaining momentum Focus shifting to higher-growth mission critical products Diversity of markets Investment Highlights
Slide 4: Management Team
Management Team Executive Officer Position (years at FSS) IM Experience (Years in Industry) Robert Welang ceo ‘ BorgWaner aw Stephanie Kusner oro 5 FMC, Amaco 28 Peter ule President €-ONE " Kaleral gral 2 Dave MeConnaushey ——_—Presdert, $86 2 Maytag Borg 20 sa eta President, Brrto Fa brorto x Mark W
Slide 5: Product Leadership Drives Our Business
Product Leadership Drives Our Business Renewed focus on providing best-in-class products 100+ year history of product leadership #1 or #2 in most markets Mission-critical products Trusted brands - proven performance Boosted new product engineers by more than 50% in past year FS Codespear interoperab
Slide 6: Revenues and Orders
Segment Revenues $1.2 billion Customer Orders $1.2 billion 2006 Revenues and Orders Environmental Solutions 33% Fire Rescue 32% Tool 10% Safety & Security Systems 25% U.S. Municipal 39% U.S. Industrial/ Commercial 25% Non-U.S. 36%
Slide 7: Recent History
Recent History Robert Welding joins as CEO Initiated "Shrink to grow" strategy December 2003 2004 2005 2006 2007 February Divested cutting tools Acquired Security Focused Technology Companies Significant New Products Launched New Growth Strategy Launched Closed 6 plants Sold/divested 7 business unit
Slide 8: Growth and Enabling Strategies
Growth and Enabling Strategies
Slide 9: EV Growth Strategy
EV Growth Strategy Safety & Security Top line growth > 15% Retain 14% - 15% margins Aggressive entry into software solutions Environmental Solutions Global growth Adding intelligence to products E-One Regain North American share Dealer network New products Restore profitability Bronto Increase capac
Slide 10: Segment Overview
Segment Overview (a) Adjusted for 2007 acquisitions.
Slide 11: Changing our Portfolio
Changing our Portfolio Leasing portfolio Plastisol Preble Justrite TTI Victor product lines Refuse FAPD do Brasil Cutting tools Superior Codespear $17M Riverchase $7M PIPS $117M "Shrink to Grow" Acquisitions $150 million proceeds $141 million
Slide 12: Acquisition Criteria
Acquisition Criteria Contribution to Growth ~1/3 growth from acquisitions plus One-time redeployment of "shrink to grow" proceeds NPV (risk adjusted cost of capital) TTM EBITDA Multiples EV positive @ 10% after year 2 Acquire new technologies Accelerate global growth Leverage channel Extensive integ
Slide 13: Global Safety and Security Industry Market Size & Growth
Locks 5.9% Safes, Vaults, Fire Extinguishers 4.8 Monitor / Alert INDUSTRY MARKET SIZE & GROWTH ($ in billions) Respond / Enforce Security Market Response Management Systems > 10 Emergency Response Vehicles 4-6 (Police, Fire, Border, Ports) Global Safety and Security Products and Systems Physical Saf
Slide 14: Global Safety and Security Products and Systems: FSS Product Placement
Global Safety and Security Products and Systems FSS Product Placement Monitor / Alert Respond / Enforce Physical Safeguards
Slide 15: Safety & Security Systems Group
Safety & Security Systems Group % of SSG Product/ Solutions Customers Municipal and Government Systems Mobile Systems Industrial Systems Transportation Systems
Slide 16: SSG Organic Growth
SSG Organic Growth ($ in millions) +18% +15% CAGR = 2%
Slide 17: What Drives Our Growth Opportunities
Broadband Wireless Video VoIP Voice recognition Sensors Unique footprint Product depth Employee talent Culture of innovation Customer relationships Interoperability Communication Intelligence Infrastructure Data transfer What Drives Our Growth Opportunities White Space Opportunities Needs Capabiliti
Slide 18: Recent Acquisitions
ecent Acquisitions s.nmatns ~ Purchase Strategic Target Price Rationale Codespear $17M Personal alerting complements mass-warning Best interoperable communications product Software platform Riverchase 7M Software modules sought by EOC s ¢ Modules easily plug into Codespear platform Strong reseller c
Slide 19: Codespear
Codespear SmartMsg - IP-based software blends communications interoperability, alert notification, secure urgent messaging, and interactive data sharing Radio Interoperability - Voice-over- IP architecture enables simultaneous text and voice broadcasts from any device to any other device Scenario Ma
Slide 20: Riverchase Technologies
Enables 911 dispatchers to properly route municipal assets Captures video via a motion- activated camera Tracks and locates vehicles via GPS technology Enables hand-held devices to access public safety databases Merges functionality of field reporting and in-house records management 911 Center Compu
Slide 21: PIPS Technology
PIPS Technology Largest installed base > 10,000 ALPR cameras 220 customers in 25 countries 20% - 25% global market share Highest performing technology History of innovation and product leadership Captures and recognizes up to 3,600 plate images per hour at speeds of up to 160 mph Law Enforcement Tol
Slide 22: Codespear Platform Links Municipal Assets
Codespear Platform Links Municipal Assets - prevent, warn, respond, recover, maintain Many assets with interoperability
Slide 23: Convergence of Interoperable Security and FRG - Comms-ONE
Convergence of Interoperable Security and FRG - Comms-ONE Command & Control Vehicle Mobile command and control for first responders Codespear platform for seamless communications interoperability Riverchase mobile data module provides real-time access to local & state databases Satellite link, landl
Slide 24: Investment Highlights
Strong management team 100+ years of product leadership Business transformation gaining momentum Focus shifting to higher-growth mission critical products Diversity of markets Investment Highlights
Federal Signal — Investor Presentation (September 2007) on 6ix