Federal Signal Corporation · NYSE:FSS
Federal Signal — Investor Presentation (May 2013)
22 slides from Federal Signal's investor presentation, May 13, 2013
Slide 1: Investor Presentation May 2013: Disciplined Growth
Investor Presentation May, 2013 Disciplined Growth Exhibit 99.1
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward looking statements made by management and may contain words such as “may,” “will,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “project,” “estimate” and “objective” or the negative thereof or similar terminology concerning the Company
Slide 3: Agenda
Agenda I. Investment Case II. Overview of Company III. Financial Results IV. Growth
Slide 4: Investment Case
Investment Case Dominant Market Position in Critical Infrastructure Markets Unparalleled Brand Equity and Distribution Franchise in Served Markets Strengthened Balance Sheet with Increasing Ability to Generate Free Cash Flow Flexible Manufacturing Capacity that is “In-Place” and Capable of Deliverin
Slide 5: Company history since 1901
1901 JohnH. Gilchrist founds the Federal Electric Company in Chicago 1944 production of electronic sirens for WWI and WWII earns the Company the Army-Navy “E” Production “ Award for Distinguished Service % 1969 nowknown as Federal Sign & Signal, company stock R is traded on the NYSE under the ticker
Slide 6: Experienced Management Team
Experienced Management Team President and CEO since October 2010 Previously served as Chairman, President and CEO of General Binding Corporation 35+ years operational & leadership experience primarily at Illinois Tool Works and Ingersoll-Rand Appointed Chief Financial Officer May 28, 2013 Formerly C
Slide 7: Experienced Management Team
Experienced Management Team Safety & Security Systems Group Bryan Boettger, President, Public Safety Systems Division Joseph Wilson, President, Industrial Systems Division Dan DesRochers, Vice President of Operations, Safety and Security Systems Group Fire Rescue Group Esa Peltola, President, Fire R
Slide 8: Experienced Management Team
Experienced Management Team Vice President and General Manager of Elgin, Vice President of Sales, Elgin/Vactor North American Dealer Channel since 2012 Former Vice President of Sales and Marketing Joined Federal Signal as a Manufacturing Engineer and held several positions in operations, production,
Slide 9: Federal Signal Overview: 2012 Net Sales by Segment
Federal Signal Overview Company Overview 2012 Net Sales by Segment Products and Services Enhance the Safety, Security and Well-Being of Communities and Workplaces Around the World 11 Manufacturing Facilities in 6 Countries Operates 3 Segments: Environmental Solutions Group (ESG) Fire Rescue Group (B
Slide 10: Federal Signal Segments
Federal Signal Segments ESG Products Geographic Mix 2012 Revenue Fire Rescue SSG Elgin street sweepers Vactor truck-mounted sewer cleaners, hydro-excavators, and industrial vacuum trucks Jetstream waterblasters FS Depot and FS Solutions – parts and service deliveries and rental center $428MM (53% of
Slide 11: Slide 11
Slide 12: Diversified Product Mix
Diversified Product Mix
Slide 13: Industrial Systems
Industrial Systems SmartMsg Enabled Systems ICS Integrated Command Solution Indoor Warning System Public Address/General Alarm Public Safety Software Systems Outdoor Warning Systems Interoperable Communications Citizen Alerting Systems Integrated Communications
Slide 14: Hydro-Excavation
Hydro-Excavation Hydro-excavating through ice with hot water
Slide 15: Waterblasting
Waterblasting Hydro-demolition, hydro-cleaning and high pressure cleaning
Slide 16: Consolidated Historical Financial Performance
Consolidated Historical Financial Performance* ($ in millions) 2010 2011 2012 Revenue $633.1 688.7 $803.2 % Growth -- 8.8% 16.6% COGS 482.2 533.3 613.4 Gross Profit $150.9 $155.4 $189.8 % Margin 23.8% 22.6% 23.6% Operating Expenses 138.5 122.2 138.3 Operating Income $12.4 $33.2 $51.5 % Margin 2.0% 4
Slide 17: 2012 Headlines: Margin Expansion and Debt Reduction
2012 Headlines: Margin Expansion and Debt Reduction Business Segment FY 2011 Operating Margin FY 2012 Operating Margin Margin Targets Continued Progress on Operating Margin Targets Complemented by Declining Leverage ESG 6.8% 9.8% 10% - 12% Bronto 6.0% 6.6% 10% - 12% SSG 9.7% 12.0% 14% - 16% Operatin
Slide 18: 2013 and Beyond Overview
2013 and Beyond Overview Adjusted EPS* and Guidance *Adjusted EPS excludes the effect of debt settlement charges and reflects only the continuing operations of the Company. Areas of Focus Progress Toward Margin Targets at Bronto and SSG Accelerate Growth in Industrial Markets Deliver Increased Value
Slide 19: Industrial Business Growth Opportunities
Industrial Business Growth Opportunities Business Unit Industrial Order Mix* Success Factors in Increasing Industrial Mix U.S. Industrial Systems 63% • Extending Leadership in Public Warning Systems in Commercial Markets • Building Global Distribution Capabilities Global Jetstream 100% • Global Chan
Slide 20: Execution on Building Industrial Customer Mix at Bronto
Execution on Building Industrial Customer Mix at Bronto Percentage of Orders from Industrial Customers* *Excluding service revenue; lifts only. Data reflect revenue mix in Euros.
Slide 21: Growth Strategy
Growth Strategy Geographic Expansion New Markets for Existing Products New Product Development and Acquisitions Innovation Program Effective use of established platforms Waterblasting Hydro-excavation Security Systems Bronto in North America Export markets from U.S. Jetstream and Industrial Systems
Slide 22: Building Equity in our Brands
Building Equity in our Brands