Federal Signal Corporation · NYSE:FSS
Federal Signal — Investor Presentation (January 2010)
25 slides from Federal Signal's investor presentation, Jan 14, 2010
Slide 1: Federal Signal Corporation Investor Presentation January 2010
Federal Signal Corporation Investor Presentation January 2010
Slide 2: Forward-Looking Language
2 Forward-Looking Language FORWARD-LOOKING LANGUAGE 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 histor
Slide 3: Federal Signal Overview, Strategic Plan, Business Update
3 Federal Signal Investor Presentation Overview Strategic Plan Business Update
Slide 4: About Federal Signal
4 About Federal Signal Founded in 1901, Federal Signal enhances the safety, security and well-being of communities and workplaces around the world Leading global designer and manufacturer of products and total solutions that serve municipal, governmental, industrial and institutional customers Opera
Slide 5: 2008 Segment Revenues & Orders
5 2008 Segment Revenues & Orders ESG Bronto SSG 4th Qtr East 441.5 145.5 371.8 20.4 West North Segment Revenues Diverse, Balanced Business Mix and End-Markets Environmental Solutions 46% Safety & Security Systems 39% Customer Orders Fire Rescue Group 15% Non-US I&C Muni 4th Qtr East 433.6 233 273.8
Slide 6: Environmental Solutions Group (ESG)
6 Street Sweepers Sewer Cleaners Combination Cleaners Catch Basin Cleaners Jetting Units Hydroexcavators Industrial Vacuum Loaders Waterblasters #2 WW & #1 NA -Street Sweepers #1 WW & #1 NA - Truck Mounted Sewer Cleaners #2 NA - Truck Mounted Hydroexcavators #1 WW & #1 NA - Industrial Vacuum Trucks
Slide 7: Safety & Security Systems Group (SSG)
7 7 Offer Systems to the Growing Public Safety and Intelligent Transportation Markets Business Units & Solutions Safety & Security Systems Group (SSG) U.S. Non-U.S. 3rd Qtr 4th Qtr Orders 202.5 164.6 Total: $367 million U.S. 55% Non-U.S. 45% Public Safety Systems Industrial Safety & Security Industr
Slide 8: Fire Rescue Operations (Bronto)
8 Leadership in Truck Mounted Aerial Applications: Aerial platforms that may include ladders, rescue cages, and water or foam extinguishing capabilities Fire Rescue Operations (Bronto) Global Leader In Truck Mounted Hydraulic Platforms U.S. Non-U.S. 3rd Qtr 4th Qtr Orders 4 96 Total: $162 million U.
Slide 9: Strategic Plan
9 Federal Signal Investor Presentation Overview Strategic Plan Business Update
Slide 10: Federal Signal is Positioned for Growth
10 Federal Signal is Positioned for Growth Appointed new executive management team following a robust search process Bill Osborne, president and chief executive officer Bill Barker, senior vice president and chief financial officer Divested non-core assets to strengthen balance sheet, focus business
Slide 11: Strategy to Achieve Consistent, Profitable Growth
11 Strategy to Achieve Consistent, Profitable Growth In 2009 Federal Signal launched a two-pronged strategy to deliver consistent, profitable growth and to drive stockholder value: Increase margins and extract efficiencies from the Company's legacy businesses and streamline the business portfolio Dr
Slide 12: I. Improve Margins and Extract Efficiencies
12 I. Improve Margins and Extract Efficiencies Environmental Solutions Group (ESG): Streamline product offering Reduce product design costs Leverage cost efficiencies of single IT system implementation Safety and Security Systems Group (SSG): Outsource non-core manufacturing to reduce footprint Cons
Slide 13: II. Drive Growth Through Public Safety Systems Platform
13 II. Drive Growth Through Public Safety Systems Platform Why Public Safety Systems? Global Growth - rising customer acceptance and government funding FSS Market Leadership / brand strength Attractive growth profile Introduce new products and services to more receptive, better funded global custome
Slide 14: Growth Opportunities in Public Safety & Intelligent Transportation
14 Growth Opportunities in Public Safety & Intelligent Transportation Leverage leadership position in lightbars and sirens Continue growth of global warning systems business Enhanced by Codespear interoperability software Build on PIPS automated license plate recognition business to increase share i
Slide 15: Intelligent Transportation Opportunity: Open Road Tolling
15 Intelligent Transportation Opportunity: Open Road Tolling - - In the Early Growth Phase Open road tolling: process for collecting tolls without stopping to pay a toll Innovative toll technologies offer motorists new state of the art highways with increased efficiency and improved driving experien
Slide 16: Toll Technologies
Toll Technologies 16 5. Transaction processing / toll back-office: Manages customer accounts, some customer service interaction. 4. Lane Controller: Transfers information from lane to back office where account billed or bill mailed to customer. Step 1. Vehicle Classification: Determines toll amount
Slide 17: PIPS: Platform for Public Safety & Transportation Growth
17 PIPS: Platform for Public Safety & Transportation Growth PIPS is the leading ALPR technology "ALPR" = Automated license plate recognition Will deploy into existing infrastructure - provide 24-hour monitoring Maintaining valuable database of information - used to manage traffic, enforce laws, iden
Slide 18: Diamond Consulting Services (DCS)
Diamond Consulting Services (DCS) Completed December 2009 Significant revenue synergies with PIPS DCS sells advanced proprietary software used to detect and classify vehicles in a variety of safety, tolling and data collection applications Has established strong credibility in traffic industry in pa
Slide 19: Sirit, Inc.
Sirit, Inc. Expected to close 1Q 2010. Significant synergies with PIPS and Diamond Leading developer and supplier of radio frequency identification ("RFID") technology solutions One of the top 3 toll technology providers in North America Faces growth opportunities globally in tolling and electronic
Slide 20: Business Update
19 Federal Signal Investor Presentation Overview Strategic Plan Business Update
Slide 21: Q3 Headlines
20 Q3 Headlines Reported EPS, Con't Ops = $0.10 Q3 Overhead Costs $12 Million Lower than Q3 2008 Net Debt Reduced Over $26 Million in the Quarter Orders Stabilized in Q3 (Flat to Q2) Improved Margins for Fire Rescue (Bronto)
Slide 22: Q3 Income Comparison
Q3 Income Comparison (S Millions) Net Sales $ 1666 $ 212.0 Variable Costs 104.1 132.4 Gross Margin $ 420 $ 563, Operating Income Interest Expense 26 3.6 Effective Tax Rate 17.9% " (68.6%) EPS, Cont Ops $ 010 = $¢$ 0.31 fs FEDERAL SIGNAL | sdbencng security and welt being.
Slide 23: Q3 Results
Q3 Results ‘% BIW) vs 2008 (18.6%) 738 903 (18.3%) 67 83 (19.3%) 9.1% 9.2% 262 344 (23.2%) Sales 214 28.4 2.5%) Op Income 22 o7 214.3% Ol Margin 8.0% 25% ESG ‘Orders 608 42 27.8%) Sales 65.4 93.6 (00.1%) Op Income 27 88 (69.3%) Ol Margin 4.1% 9.4% Corp Exp Co) 65) 25.5% Total FSS ‘Orders: 187.5 204.
Slide 24: Cash Flow Summary
Cash Flow Summary (S Millions) yro 72009 ACT 72008 ACT Continuing Operating Cash Flow: Income from Continuing Ops $ 107 $ 267 Deprec & Amort 11.9 Pension Working Capital Other ‘Subtotal Continuing Operating Cash Flow $ 82 $ 38 Capital Expenditures (11.9) (18.8) Asset Sales / Divestitures 12 35.8 Div
Slide 25: Federal Signal Corporation
Federal Signal Corporation Investor Presentation January 2010
Federal Signal — Investor Presentation (January 2010) on 6ix