Federal Signal Corporation · NYSE:FSS
Federal Signal — Investor Presentation (March 2008)
20 slides from Federal Signal's investor presentation, Mar 5, 2008
Slide 1: Federal Signal Corporation: Advancing Security and Well-Being Every Day
Federal Signal Corporation Advancing Security and Well-Being Every Day (c) 2008 Federal Signal Corporation. All rights reserved. This presentation is for informational purposes only. March 5, 2008
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: Investment Highlights
100+ years of product leadership Diverse markets Shift to higher-growth, higher-return products Focus on cost structure Leadership change Investment Highlights
Slide 4: Management Team
Management Team sim Goodwin Interim CEO 2 United Airines 40 Stephanie Kushner Senior VP, CFO 6 FMC, Amoco 8 Peter Guile President, €-ONE " Concord tng 2 Dave McConnaughey President, SSG 2 Maytag, Borg 30 Esa Peltola President, Bronto ar Bronto 38 Mark Weber President, ESG " Cummins Engine 28 tr FEDE
Slide 5: Revenues and Orders by Segment
Segment Revenues $1.3 billion Customer Orders $1.3 billion 2007 Revenues and Orders Environmental Solutions 35% Fire Rescue 27% Tool 9% Safety & Security Systems 29% U.S. Municipal 36% U.S. Industrial/ Commercial 25% Non-U.S. 39%
Slide 6: Product Leadership Drives Our Business
Product Leadership Drives Our Business Renewed focus on providing best-in-class products and solutions 100+ year history of product leadership #1 or #2 in most markets Mission-critical products Trusted brands - proven performance Boosted new product engineers by more than 50% in past year FS Codespe
Slide 7: Recent History
Recent History Initiated "Shrink to Grow" strategy 2004 2005 2006 2007 February Divested Cutting Tools Acquired Security-Focused Technology Companies Significant New Products Launched New Growth Strategy Launched Closed 6 plants Sold/Divested 7 Business Units Formalized New Product Development Proce
Slide 8: Tightened Strategic Focus
Tightened Strategic Focus Leasing portfolio Plastisol Preble Justrite TTI Victor product lines Refuse FAPD do Brasil Cutting tools Superior Codespear $17M Riverchase $7M PIPS $126M "Shrink to Grow" Acquisitions $150 million proceeds $150 million
Slide 9: Recent Acquisitions
ecent Acquisitions Sinmtionsy Purchase Strategic Target Price Rationale Codespear $17M @ Personal alerting complements mass-warning ¢ Best interoperable communications product ¢ Software platform Riverchase 7M Software modules sought by EOC s ¢ Modules easily plug into Codespear platform ¢ Strong re
Slide 10: Our Markets and Solutions
Our Markets and Solutions Automatic vehicle location Command and control Community wide alerting Computer-aided dispatch Digital video Emergency operations First responder interoperability Mobile data Parking and access control Public safety broadband wireless Public warning Records management Scena
Slide 11: Public Safety Challenges
Public Safety Challenges Leveraging existing technology investments to take control is a top priority for first responders. Communicating across jurisdictions Enabling public-safety networks Implementing digital video and smart applications Alerting citizens
Slide 12: A Platform for True Interoperability
A Platform for True Interoperability Federal Signal Industry Platform Public Safety Networks Smart Messaging Radio Interop Citizen Alerting Scenario Management Campus Alerting Digital Siren Commander Integrated Management Console Facility Management System Computer Aided Dispatch Records Management
Slide 13: Long Term EV Growth Strategy
Long Term EV Growth Strategy Safety & Security Focus resources on public safety markets Integrate products into solutions Environmental Solutions Expand globally Increase capacity Add intelligence to products E-One Exploring strategic alternatives Indications of interest from buyers Bronto Increase
Slide 14: SEG&A Focus in 2008
SEG&A Focus in 2008 Reorganization of business units and departments Elimination of positions Reduction in equity incentives Re-negotiation of contracts % 2005 16.7 2006 17.7 2007 18.4 2008E 17.4
Slide 15: Segment Overview
Segment Overview Sinmios) Operating Assets Revenue LT Organic Margin % 12134107 2007 Growth 2007 LT Target Safety & Security $419 $367 10% -15% 13.5% 14% — 16% Environmental 213 451 6-8 8.9 9-10 Fire Rescue (E-One & Bronto) 229 331 6-8 (3.3) 9-10 Tool 118 119 5-6 55 >7 icy FEDERAL SIGNAL | Advancing
Slide 16: SSG Organic Growth
SSG Organic Growth ($ in millions) +18% +17% CAGR = 2%
Slide 17: ESG Organic Growth
ESG Organic Growth ($ in millions) +21% +5% CAGR = 5%
Slide 18: Bronto Organic Growth
Bronto Organic Growth ($ in millions) +53% +51% CAGR = 13%
Slide 19: Investment Highlights
100+ years of product leadership Diverse markets Shift to higher-growth, higher-return products Focus on cost structure Leadership change Investment Highlights
Slide 20: Federal Signal
FEDERAL SIGNAL Advancing security and well-being. fs FEDERAL SIGNAL | Advancing security and welLbeing. 20