Federal Signal Corporation · NYSE:FSS
Federal Signal — Investor Presentation (May 2007)
23 slides from Federal Signal's investor presentation, May 16, 2007
Slide 1: We are advancing security and well-being every day. May 2007
We are advancing security and well-being every day. May 2007 Safe Harbor About Federal Signal 2006 Revenues and Orders Product Leadership Drives Our Business Our Global Presence and Expertise Foundation for a New Vision OUR VISION Municipality of the Future Federal Signal Repositioning Underway Grow
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 and brand recognition Broadest array of municipal solutions Diversity of markets and customer base
Slide 4: 2006 Revenues and Orders
Segment Revenues $1.2 billion Customer Orders $1.2 billion 2006 Revenues and Orders Environmental Solutions 33% Fire Rescue 32% Tool 10% Safety & Security Systems 25% U.S. Municipal 39% U.S. Industrial/ Commercial 25% Non-U.S. 36%
Slide 5: 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 6: Our Global Presence and Expertise
Our Global Presence and Expertise Our worldwide capability in security is unmatched. Interoperable industry platform Detroit, Mich. Tsunami warning systems Pudang, Indonesia Parking systems Beijing, China Glycol recovery vehicles St. John's, Newfoundland Industrial security systems Qatar Bronto aeri
Slide 7: Foundation for a New Vision
PROTECT Foundation for a New Vision
Slide 8: Our Vision
Federal Signal ... the leader in advancing security and well-being for communities and workplaces around the world.
Slide 9: Municipality of the Future
Broadband Wireless Network Community Video Surveillance Outdoor Warning Walking Path Emergency Station Water Meter Reader City Name SCADA IL 129 5678 License Plate Recognition Police Parking Gate Fire Truck City Garage SelecTone Command Smoke Heat Rate of Rise Fire Water Security Alarm Voice EOC Das
Slide 10: Federal Signal Smart Security Solutions
Federal Signal Smart 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 11: Repositioning Underway
Repositioning Underway Research indicates non- military security market growing at 8% per year worldwide Renamed some businesses to align with customer needs More sales will be into the public safety and security space Enhancing our customer- facing marketing efforts Expecting higher organic growth
Slide 12: Growth and Enabling Strategies
Growth and Enabling Strategies
Slide 13: Growth Strategy Metrics
Growth Strategy Metrics 2005 2006 2007 Long-term Organic Growth in Orders 2% 12% 8-10% 6-8% Sales % outside U.S. 32% 35% 40% 50% Sales from New Products 9% 12% 15% 30% Target
Slide 14: Enabling Strategy Metrics
Enabling Strategy Metrics 2005 2006 2007 Long-term Operating Margin 5.1%* 5.8% 6-7% 10% Operating Working Capital 20% 20% <20% 15% Economic Value ($21 mm) ($12 mm) >$0 15% ROIC Target *Excluding 0.6% impact of product-line divestitures
Slide 15: 2007 Priorities
2007 Priorities Continue expansion in China Launch initial operations in Eastern Europe Expand comprehensive security solution offerings Integrate one or two technology acquisitions Recover N.A. fire apparatus market share Expand capacity at Vactor/Guzzler and Bronto Increase credit facility to $250
Slide 16: Safety and Security Systems Group
Safety and Security Systems Group Mobile Vehicular Systems Industrial Communications, Safety and Security Public Safety and Transportation Systems Products Lightbars, beacons, sirens and speakers Beacons, horns, interoperable communications systems, mining and marine hazardous area lighting Gates, t
Slide 17: Safety and Security Systems Group Overview/Outlook
1st Qtr 2004 247 13.5 2005 277 13.9 2006 305 13.5 1Q06 68 10.9 1Q07 79 12 Safety and Security Systems Group Overview/Outlook Orders rose 18% in 2006 and 24% in 1Q07 Robust demand for police products and electrical products for arduous environments Customers seeking integrated systems for mission-cri
Slide 18: Fire Rescue Group
Fire Rescue Group Rescue and Homeland Security Pumper and Tanker ARFF Apparatus Aerial Fire Apparatus Products Custom and commercial rescues for command/ operation centers, bomb trucks, HazMat Custom and commercial pumpers and tankers for municipal and industrial markets Apparatus designed for rapid
Slide 19: Fire Rescue Group Overview/Outlook
Fire Rescue Group Overview/Outlook Robust demand for Brontos Enhanced Ez-ONE unveiled Four innovative new trucks launched in April Focused on profitable growth and improved market coverage Sales vs. Operating Margin Sales ($M) Operating Margin (%) 1st Qtr 2004 361 -6.6 2005 371 0.6 2006 385 1.8 1Q06
Slide 20: Environmental Solutions Group Overview/Outlook
Environmental Solutions Group Overview/outlook: Orders rose 21% in 2006 and were flat in 1Q07 Strong growth in vacuum trucks and street sweepers Introducing innovative new products Increased demand from industrial and rental fleets Primary growth focus: globalization Significant investments underway
Slide 21: 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 22: Tool Group Overview/Outlook
Tool Group Overview/outlook: Cutting tool businesses divested Increased international volume Declining automotive market Operational issues stabilized Operating Margin (%) Sales vs. Operating Margin 1st Qtr 2004 122 8.1 2005 124 9.1 2006 123 6.7 1Q06 33 5 1Q07 31 6.9 $ %
Slide 23: Vision
Vision Federal Signal ... the leader in advancing security and well-being for communities and workplaces around the world.