Federal Signal Corporation · NYSE:FSS
Federal Signal — Investor Presentation (November 2006)
36 slides from Federal Signal's investor presentation, Nov 1, 2006
Slide 1: Federal Signal: Advancing Security and Well-Being
Federal Signal: Advancing Security and Well-Being
Slide 2: Safe Harbor
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. The
Slide 3: Investment Appeal
Investment Appeal Strong brands Diverse markets Improving margins Strengthening balance sheet Growth opportunities –self funding Economic Value key performance measurement New vision focused on sustainable profitable growth
Slide 4: FSS Overview
FSS Overview Key Statistics 5,500 employees $1.2 billion in revenue Stock trades on NYSE as FSS Key Competitive Advantages Rich 100+ year history of product leadership Strong brand recognition: #1 or #2 in most markets High-priority products in municipal and industrial markets Well developed distrib
Slide 5: Federal Signal Today
Federal Signal Today Environmental Fire Safety Tool Products Rescue Products Group Group Group Group $348 million $371 million $277 million $162 million * 2005 Revenues 5
Slide 6: Market Diversity
Market Diversity Segment Revenues Customer Orders $1.2 billion $1.1 billion Environmental U.S.-Industrial Safety and Commercial Non-U.S. 30% 24% 27% 31% Fire Rescue Tool 14% U.S.-Municipal 32% and Government 42% 2005
Slide 7: FSS Orders By Market Segment
FSS Orders By Market Segment 45 40 35 30 6-month average ($ millions) 25 20 15 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 03 03 03 03 03 03 03 03 03 03 03 03 04 04
Slide 8: Foundation For a New Vision
Foundation For a New Vision PREVENT RESPOND RECOVER MAINTAIN (An Incident) (To An Incident) (From An Incident) (Safe Conditions) Mine lighting Mine lighting Sewer cleaners Police Police PEOPLE Police Outdoor Warning Fire rescue vehicles Systems SweepersAmber Integrated Warning Parking systems System
Slide 9: Our Vision
our vision The leader in advancing security and well-being for communities and workplaces around the world.
Slide 10: Our Mission
Our Mission We serve organizations that protect people, property and the environment. We listen to customers and imagine ways to help them address emerging needs. We create innovative solutions drawing upon the talent of our employees and a rich portfolio of products and services. We deliver superio
Slide 11: Municipal and Workplace Security and Well-Being
Municipal and Workplace Security and Well-Being 11
Slide 12: Product Leadership: Our Primary Strategic Thrust
Product Leadership: Our Primary Strategic Thrust A comprehensive enterprise strategy Shapes every plan and decision we make Colors the entire organization —from competencies; to culture; to business priorities 12
Slide 13: Product Leadership
Product Leadership FEDERAL SIGNAL
Slide 14: Enabling Strategies
Enabling Strategies
Slide 15: Safety Products Group — Continued Growth
Safety Products Group — Continued Growth Emergency Electrical Parking Products Products Products Products Lightbars, beacons, sirens and Beacons, horns, outdoor warning Gates, ticket dispensers, cash speakers sirens, communications systems, registers, card readers, software mining and marine hazardo
Slide 16: Safety Products Group Overview/Outlook
Safety Products Group Overview/Outlook Sales vs. Operating Margin Recent leadership change 350 20 Solid market positions and financial $ % 300 $277 performance $247 16 16.2% 250 16.3% 12.9% New product development pipeline 13.5% 12 200 $222 $205 Global expansion 150 8 “Whitespace”—large airport park
Slide 17: Fire Rescue Group — Accelerating
Fire Rescue Group — Accelerating Rescue and Pumper ARFF Aerial Fire Homeland Security and Tanker Apparatus Apparatus Products Custom and Custom and commercial Apparatus designed for Aerial waterway, ladders, commercial rescues for pumpers and tankers for rapid attack and traditional and articulated
Slide 18: Fire Rescue Group Overview/Outlook
Fire Rescue Group Overview/Outloo k Sales vs. Operating Margin $ 450 Recognized brands and broad 19 % product offering 400 $361 $377 350 15 Stable markets with growth 300 potential 11 250 $263 $261 Established and expanding 7 200 distribution 150 3 1.0% -0.5% Improving economies of scale and 100 -0.
Slide 19: Fire Rescue Group Continuous Improvement Update
Fire Rescue Group Continuous Improvement Update Key performance indicators continue to show favorable trends —throughput, lead times, hours per unit, build quality, primary working capital, days sales outstanding, etc. Cost-reduction initiatives — being realized, more to come Margin growth from oper
Slide 20: Environmental Products Group — Expanding Opportunities
Environmental Products Group — Expanding Opportunities Sweepers Vacuum Trucks — Vacuum Trucks — Water Blasters Municipal Industrial Products Street, parking lot Sewer and catch basin Vacuum loaders that clean Water blasters that and industrial cleaners, glycol recovery up industrial waste or clean a
Slide 21: Environmental Products Group Overview/Outlook
Environmental Products Group Overview/outlook: Sales vs. Operating Margin $ 400 16 % Certain Leach refuse assets sold 350 $348 International growth opportunities 300 12 $295 $297 Federal Signal Shanghai won 250 9.2% 8.5% its first order for refuse truck 200 8.6% $259 8 bodies for the local Chinese 8
Slide 22: Tool Group — Expanding Globally
Tool Group — Expanding Globally Die & Mold Tooling Cutting Tools Products Punches, pins, Milling inserts, grooving components, retainers, inserts, cut-off tools, grooving matrices, mold bases tools, insert type drilling Customers Automotive OEMs, Automotive OEMs, tier 1 injection molders, suppliers,
Slide 23: Tool Group Sales vs. Operating Margin
Tool Group Sales vs. Operating Margin Overview/outlook: $ 200 20% New leadership focused on 180 profitable growth with increased 160 $162 16 $161 NA market share 140 120 10.3% 12 Global expansion 10.2% 10.4% 8.8% 100 $122 $122 80 8 60 40 4 20 0 0 2004 2005 YTD YTD 3Q05 3Q06 Sales ($M) Operating Marg
Slide 24: Financial Overview
Financial Overview FEDERAL SIGNAL IRPORATION
Slide 25: 2006 Outlook
2006 Outlook 2005 2006 Revenue Op Margin % Revenue Op Margin 3-5 Year Outlook EPG 348 8.3% + 10-14% 8-9% Margin stable 8-9% FRG 371 0.9% + 3-4% <2.5% Gradual improvement to 9-10% SPG 277 16.3% + 9-10% 13-13.5% 2005 product-line gain — 2.5% modest margin upside Tool 162 10.3% Flat 9-10% Continued mar
Slide 26: In Ten Years ...
In Ten Years ... 15% ROIC Triple revenue Strong balance sheet 10% operating margin Commensurate share price 26
Slide 27: Federal Signal: The leader in advancing security and well-being
Federal Signal . . . The leader in advancing security and well-being for communities and workplaces around the world.
Slide 28: Advancing security and well-being every day
Advancing security and well-being every day. Robert D. Welding President and CEO November 1, 2006
Slide 29: Safe Harbor
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. The
Slide 30: The Emerging Security Space
The Emerging Security Space An uncertain world A fragmented $60B global market Growing at the rate of 8-9% per year Customers desire integrated solutions ... Federal Signal brings it all together
Slide 31: Federal Signal Intelligent Municipal Security Solution
Federal Signal Intelligent Municipal Security Solution New Federal Signal Solutions hm s orit Alg ar e oftw & S Command Video/Thermal & Control Algorithms Climate & Software Sensors CBNRE Magnetic Field Analyze Prevent, Warn, Recover, Sense Respond Maintain Traditional Federal Signal Products
Slide 32: Integrated Security Systems Customer Example: Qatargas
Federal Signal Integrated Security Systems Customer Example Qatargas What Customers Want Fail-safe communications for government and industrial installations Technology Self-healing fiber-optic ring A scaleable, redundant network solution
Slide 33: All-Hazard Warning Systems Customer Example: State of Washington
Federal Signal All-Hazard Warning Systems Customer Example State of Washington What Customers Want Tsunami warning Technology Pre-recorded and live broadcasting capability Activation and management via satellite
Slide 34: Bronto Aerial Devices Customer Example: Maes Hoogwerkers
Federal Signal Bronto Aerial Devices Customer Example Maes Hoogwerkers, Belgium What Customers Want Access to challenging industrial and rescue environments Technology Bronto product line can reach up to 331 feet Remote diagnostics
Slide 35: The leader in advancing security and well-being
The leader in advancing security and well-being for communities and workplaces around the world.
Slide 36: Federal Signal Corporation | Advancing security and well-being
fs FEDERAL SIGNAL CORPORATION | Advancing security and well-being.
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