Federal Signal Corporation · NYSE:FSS
Federal Signal — Investor Presentation (March 2007)
30 slides from Federal Signal's investor presentation, Mar 5, 2007
Slide 1: We are advancing security and well-being every day
We are advancing security and well-being every day. March 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: About Federal Signal
About Federal Signal Key Statistics 5,500 employees $1.2 billion in revenue Trades on NYSE as FSS Key Competitive Advantages Product leadership Well developed distribution channels Disciplined, focused management team
Slide 4: Federal Signal Today: 2006 Segment Revenues
2006 Segment Revenues $1.2 billion Customer Orders $1.2 billion Federal Signal Today Restoring the company's performance Introducing innovative new products and solutions Positioned in emerging security and well-being space Environmental Solutions 33% Fire Rescue 32% Tool 10% Safety & Security Syste
Slide 5: Orders By Market Segment - 2006
Orders By Market Segment - 2006
Slide 6: Growth and Enabling Strategies
Growth and Enabling Strategies
Slide 7: Focused on Customer's Urgent Needs
Focused on Customer's Urgent Needs Repositioning Underway Research indicates non- military security market growing at 8% per year worldwide Renaming some businesses to align with customer needs More sales will be into the public safety and security space Enhancing our customer- facing marketing effo
Slide 8: What Does Federal Signal Do?
What Does Federal Signal Do? Design and manufacture a suite of products and integrated solutions, including: Safety, security and critical communications systems Parking revenue management and security systems Arduous environment lighting systems Mining safety systems Fire rescue vehicles Aerial dev
Slide 9: Leveraging Our Global Presence and Expertise
Leveraging Our Global Presence and Expertise Our worldwide capability in security is unmatched. Tsunami warning systems Pudang, Indonesia Parking systems Beijing, China Glycol recovery vehicles St. John's, Newfoundland Industrial security Qatar Bronto aerial devices Moscow, Russia Command and contro
Slide 10: Focused on These Key Markets
Focused on These Key Markets Municipal Industrial Governmental Airport
Slide 11: Deploying Integrated Systems with Increased Functionality
Deploying Integrated Systems with Increased Functionality, Reliability and Interoperability Qatargas Fail-safe communications for government and industrial installations State of Washington Tsunami warning with satellite activation and management City of Chicago Mobile emergency operations with a cu
Slide 12: Federal Signal Smart Municipal Security Solutions
Federal Signal Smart Municipal Security Solutions Sense Analyze Command & Control Algorithms & Software Sensors CBNRE Magnetic Field Video/Thermal Climatic Algorithms & Software Prevent, Warn, Respond Recover, Maintain Traditional Federal Signal Products New Federal Signal Solutions
Slide 13: What Customers Are Asking For...
What Customers Are Asking For... Ability to communicate across jurisdictions Public safety networks Rapid access to more information High-quality video and intelligent applications Ability to leverage existing investments in radio technology
Slide 14: Federal Signal in Action
Federal Signal in Action We provide a flexible platform that enables customers to leverage your existing investments to enhance security and well-being. PREVENT (An incident) RESPOND (To An Incident) RECOVER (From An Incident) Level 1: ACTION TYPES Border Security Infrastructure Protection Emergency
Slide 15: Delivering Public Safety Broadband Wireless To Municipalities
A high speed broadband wireless system for first responders via the 4.9GHZ spectrum Video surveillance at malls, high- traffic areas, schools and other village locations Ubiquitous 4.9GHZ coverage in municipality Interoperable communications platform for first responders and others Can be upgraded f
Slide 16: Federal Signal Solution Advantages
Federal Signal Solution Advantages Productivity municipal employees can do more Network Speed real-time data Versatility view video in car and remotely Coverage more eyes and ears on the street via video and critical communications systems Analytics video analytics, nuclear, biological, gun shot, ch
Slide 17: Product Leadership Drives Our Business
Product Leadership Drives Our Business 100+ year history of product leadership #1 or #2 in most markets Mission-critical products Trusted brands - proven performance FS Codespear interoperable communications platforms FS Legend Lightbar FS E-ONE Typhoon FS Vactor HXX Vacuum Excavator
Slide 18: Safety and Security Systems Group
Safety and Security Systems Group Mobile Vehicular Systems Industrial Communications, Safety and Security Public Safety and Transportation Systems Products Lightbars, beacons, sirens and speakers Beacons, horns, interoperable communications systems, mining and marine hazardous area lighting Gates, t
Slide 19: Safety and Security Systems Group Overview/Outlook
Safety and Security Systems Group Overview/Outlook Orders rose 18% in 2006 Robust demand for police products and electrical products for arduous environments Customers seeking integrated systems for mission-critical situations Integration of Codespear Increasing R&D investment Sales ($M) Operating M
Slide 20: Fire Rescue Group
Fire Rescue Group Rescue and Homeland Security Pumper and Tanker ARFF Apparatus Aerial Fire Apparatus Products Custom and commercial rescues for command/ operation centers, bomb trucks, HazMat Custom and commercial pumpers and tankers for municipal and industrial markets Apparatus designed for rapid
Slide 21: Fire Rescue Group Overview/Outlook
Fire Rescue Group Overview/Outlook Robust demand for Brontos Enhanced Ez-ONE unveiled Improved gross margins 4Q06 margins at 3.5% Sales vs. Operating Margin Sales ($M) Operating Margin (%) 1st Qtr 2004 361 1.8 2005 371 0.6 2006 385 1.8 $ %
Slide 22: FRG: Continuous Improvement Update
FRG: Continuous Improvement Update Revenue up 4% year-over-year Build quality levels improving and lead times reduced Reducing dealer floor-planned inventory Improving margins driven by operational improvements Strengthening, enabling and expanding distribution Ez-ONE sales configurator fully operat
Slide 23: Environmental Solutions Group
Environmental Solutions Group Sweepers Vacuum Trucks - Municipal Vacuum Trucks - Industrial Water Blasters Products Street, parking lot and industrial sweepers Sewer and catch basin cleaners, glycol recovery vehicles, hydro excavating vehicles Vacuum loaders that clean up industrial waste or recover
Slide 24: Environmental Solutions Group Overview/Outlook
Environmental Solutions Group Overview/outlook: Orders rose 21% in 2006 Strong growth in vacuum trucks and street sweepers Introducing innovative new products Increased demand from industrial and rental fleets Sales ($M) Operating Margin (%) Sales vs. Operating Margin 1st Qtr 2004 295 8.6 2005 348 8
Slide 25: Tool Group
Tool Group Die & Mold Tooling Products Punches, pins, components, retainers, matrices, mold bases Customers Automotive OEMs, injection molders, diecasters Channels Industrial distributors, direct Competitors OME, Progressive, Misumi, Husky, Anchor Danly
Slide 26: Tool Group Overview/Outlook
Tool Group Overview/outlook: Cutting tool businesses divested Increased international volume 4Q06 margins at 8.7% Operating Margin (%) Sales vs. Operating Margin 1st Qtr 2004 122 8.1 2005 124 9.1 2006 123 6.7 $ %
Slide 27: Investment Appeal
Strong brands and diverse markets Improving margins Vision focused on the growing mission-critical security and well-being space Investment Appeal
Slide 28: 2007 Outlook
2007 Outlook 2006 2007 Revenue OpMargin% | Revenue Op Margin% 96 Year Outlook ssG 305 13.5% 10%+ 14-15% “Margins stable abave 14% FRG 385 1.8% 710% 4% Gradual improvernent to 9-10% ESG 399 9.3% 10%+ 9% Margin stable above 9% Tool 123 6.7% 24% 89% Continued margin recovery FSS 1212 58% 810% 67h Targe
Slide 29: Long-Term Targets
Long-Term Targets 15% ROIC Triple revenue Strong balance sheet 10% operating margin Commensurate share price
Slide 30: Vision
Vision Federal Signal ... the leader in advancing security and well-being for communities and workplaces around the world.