Federal Signal Corporation · NYSE:FSS
Federal Signal — Investor Presentation (August 2013)
20 slides from Federal Signal's investor presentation, Aug 14, 2013
Slide 1: Investor Presentation: Disciplined Growth
Investor Presentation August 14, 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 • Management • Company overview • Investment case • Recent progress • Growth strategy • Business groups and products • Financial results and outlook
Slide 4: Experienced Management Team
Experienced Management Team Dennis Martin, President and Chief Executive Officer Brian Cooper, SVP and Chief Financial Officer Jennifer Sherman, SVP, Chief Administrative Officer, General Counsel and Secretary President and Chief Executive Officer since October 2010 Previously served as Chairman, Pr
Slide 5: Federal Signal Overview
Federal Signal Overview Company Overview Sales by Segment, June 2013 TTM, $ Millions Valuable Brands Founded in 1901, joined NYSE in 1969 (“FSS”) Safety, security and environmental products and services that protect people and the planet Environmental Solutions Group (ESG) Safety & Security Systems
Slide 6: Investment Case
Investment Case • • • – Funding internal growth and potential renewal of dividends • • – Aging public infrastructure – Improving municipal markets – Industrial markets opportunities – Growing investments in energy sector – Security requirements for man-made and natural disasters • – Management depth
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 Products New Product Development and Acquisitions Advancing security and well-being. Jetstream and Industrial Systems in the Asia Pacific and Middle East Export markets from U.S. Bronto in North America Waterblasting Hydro-excavatio
Slide 9: Growth Markets and Opportunities
Growth Markets and Opportunities * (as of 6/30/13 TTM) Developing growth product areas Other markets Advancing security and well-being. • – Vactor (hydro-excavation and sewer cleaning) – Jetstream (waterblasting) – Industrial Systems (integrated communication safety systems) These areas aggregate to
Slide 10: Industrial Business Growth Opportunities
Business Unit Industrial Order Mix* Success Factors in Increasing Industrial Mix Industrial Business Growth Opportunities 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* *Lifts only, excluding service revenue. Data reflect revenue mix in Euros. 13% 22% 31%
Slide 12: Margin Expansion and Debt Reduction
Margin Expansion and Debt Reduction Business Segment FY 2011 Operating Margin FY 2012 Operating Margin 1 Half 2013 Operating Margin Margin Targets st Continued Progress on Operating Margin Targets * Complemented by Declining Leverage ESG 6.8% 9.8% 11.9% 10% - 12% SSG 9.7% 12.0% 7.9% 14% - 16% Bronto
Slide 13: Federal Signal Segments
Federal Signal Segments Environmental Systems (ESG) Fire Rescue (Bronto) Safety and Security (SSG) Products Representative Market Share June 2013, TTM Revenue Geographic Mix Elgin street sweepers Vactor truck-mounted sewer cleaners, hydro-excavators, and industrial vacuum trucks Jetstream waterblast
Slide 14: Diversified Product Mix
Diversified Product Mix Advancing security and well-being.
Slide 15: Hydro-Excavation
Hydro-Excavation Hydro-excavating through ice with hot water
Slide 16: Waterblasting
Waterblasting Hydro-demolition, hydro-cleaning and high pressure cleaning Advancing security and well-being.
Slide 17: Industrial Systems
Industrial Systems SmartMsg Enabled Systems ICS Integrated Command Solutions Indoor Warning Systems Public Address/General Alarm Public Safety Software Systems Outdoor Warning Systems Interoperable Communications Citizen Alerting Systems Integrated Communications
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Slide 19: 2013 and Beyond Overview
2013 and Beyond Overview Areas of Focus Progress toward margin targets at Bronto and SSG Accelerate growth in industrial markets Deliver increased value to shareholders Adjusted EPS* and Outlook * Adjusted EPS excludes the effects of debt settlement charges, restructuring charges, and the Q2 2013 ta
Slide 20: Building Equity in Our Brands
Building Equity in Our Brands Advancing security and well-being.