Federal Signal Corporation · NYSE:FSS
Federal Signal — Investor Presentation (August 2013)
20 slides from Federal Signal's investor presentation, Aug 14, 2013
Slide 1: Disciplined Growth
Disciplined Growth Investor Presentation August 14, 2013
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 • Management • Company overview • Investment case • Recent progress • Growth strategy • Business groups and products • Financial results and outlook 3 Advancing security and well-being.
Slide 4: Experienced Management Team
Experienced Management Team Dennis Martin, President and Chief Executive Officer President and Chief Executive Officer since October 2010 Previously served as Chairman, President and CEO of General Binding Corporation 35+ years operational and leadership experience, primarily at Illinois Tool
Slide 5: Federal Signal Overview
Federal Signal Overview Company Overview Sales by Segment, June 2013 TTM, $ Millions Fire Rescue Group Founded in 1901, joined NYSE in 1969 (“FSS”) 17% Safety, security and environmental products and $137 services that protect people and the planet Environmental Solutions Group (ESG) $448 Envi
Slide 6: Investment Case
Investment Case • Dominant market position in critical infrastructure markets • Unparalleled brand equity and distribution franchise in core markets • Strengthened balance sheet and improving profitability and free cash flow – Funding internal growth and potential renewal of dividends • Flexible man
Slide 7: Recent Progress and Accomplishments
Recent Progress and Accomplishments • Major repositioning with sale of FSTech • Debt refinancing to improve balance sheet and interest costs • 80/20 focus and continuous improvement – Lean manufacturing changes – Customer prioritization and pricing – Working capital efficiency targets • Investments
Slide 8: Growth Strategy
Growth Strategy Geographic Expansion New Markets for Existing New Product Products Development and • Jetstream and Industrial Acquisitions Systems in the Asia Pacific • Waterblasting and Middle East • Innovation program • Hydro-excavation • Export markets from U.S. • Effective use of • Security syst
Slide 9: Growth Markets and Opportunities
Growth Markets and Opportunities • Developing growth product areas – Vactor (hydro-excavation and sewer cleaning) – Jetstream (waterblasting) – Industrial Systems (integrated communication safety systems) These areas aggregate to ≈50% of total revenue * • Other markets – Industrial uses for high-rea
Slide 10: Industrial Business Growth Opportunities
Industrial Business Growth Opportunities Business Unit Industrial Success Factors in Increasing Industrial Order Mix* 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 11: Execution on Building Industrial Customer Mix at Bronto
Execution on Building Industrial Customer Mix at Bronto Percentage of Orders from Industrial Customers* 2010 2011 2012 *Lifts only, excluding service revenue. Data reflect revenue mix in Euros. 11 Advancing security and well-being.
Slide 12: Margin Expansion and Debt Reduction
Margin Expansion and Debt Reduction Continued Progress on Operating Margin Targets * 8.0% 1st Half FY 2011 2013 6.6% 7.0% FY 2012 Total FSC Continuing Operations Business Operating Operating Operating Margin 6.0% Operating Margin Segment Margin Margin Margin Targets 4.8% ESG 6.8% 9.8% 11.9% 10% - 12
Slide 13: Federal Signal Segments
Federal Signal Segments Environmental Systems (ESG) Safety and Security (SSG) Fire Rescue (Bronto) Elgin street sweepers Vehicle lights and sirens (U.S. and Vama) Aerial lift access platforms for fire rescue Products Vactor truck-mounted sewer cleaners, Indoor and outdoor mass warning and
Slide 14: Diversified Product Mix
Diversified Product Mix 14 Advancing security and well-being.
Slide 15: Hydro-Excavation
Hydro-Excavation Hydro-excavating through ice with hot water 15 Advancing security and well-being.
Slide 16: Waterblasting
Waterblasting Hydro-demolition, hydro-cleaning and high pressure cleaning 16 Advancing security and well-being.
Slide 17: Industrial Systems
Industrial Systems ICS Integrated Public Outdoor Interoperable Command Address/General Warning Systems Communications SmartMsg Solution Indoor Warning Alarm Public Safety Citizen Alerting Enabled Systems System Software Systems Systems Integrated Communications 17 Advancing security and well-being.
Slide 18: Consolidated Historical Financial Performance
Consolidated Historical Financial Performance* June 2013 ($ in millions) 2010 2011 2012 TTM Revenue $ 633.1 $ 688.7 $ 803.2 $ 825.1 % Growth — 8.8% 16.6% 2.7% COGS 482.2 533.3 613.4 631.2 Gross Profit $ 150.9 $ 155.4 $ 189.8 $ 193.9 % Margin 23.8% 22.6% 23.6% 23.5% Operating Expenses 138.5 122.2 138
Slide 19: 2013 and Beyond Overview
2013 and Beyond Overview Areas of Focus Adjusted EPS* and Outlook $ per share Progress toward margin targets 0.80 0.62 – 0.72 at Bronto and SSG 0.70 0.60 Accelerate growth in industrial 0.50 0.43 markets 0.40 0.30 0.21 0.20 Deliver increased value to 0.10 shareholders 0.00 YR 2011 YR 2012 YR 2
Slide 20: Building Equity in Our Brands
Building Equity in Our Brands 20 Advancing security and well-being.