EX-99.1 2 c09599exv99w1.htm INVESTOR PRESENTATION MATERIALS exv99w1
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(FEDERAL SIGNAL CORPORATION LOGO)
REGENCY TOWERS, 1415 W. 22ND ST., OAK BROOK, ILLINOIS 60523
FOR IMMEDIATE RELEASE
INVESTOR CONTACT
Dave Janek
(630) 954-2000
MEDIA CONTACT
John Segvich
(630) 954-2000
Federal Signal to present at Goldman Sachs Capital Goods Conference
OAK BROOK, Ill., November 1, 2006 — Federal Signal Corporation (NYSE: FSS) announced today that Robert D. Welding, president and chief executive officer, and Stephanie K. Kushner, vice president and chief financial officer, will speak to investors at the Goldman Sachs Capital Goods Conference in New York City on Wednesday, November 1, 2006.
Investors will be able to access the presentation from http://www.federalsignal.com on Wednesday, November 1, 2006. The presentation will also be filed as Form 8-K.
About Federal Signal Corporation
Federal Signal Corporation (NYSE: FSS) is a global leader in advancing security and well-being for communities and workplaces around the world. The company manufactures a broad range of safety and signaling products, and fire rescue and environmental vehicles that help protect people, property and the environment. Federal Signal’s leading brands include Bronto(R), Elgin(R), E-ONE(R), Federal APD(R), Federal Signal(R), Guzzler(R), Jetstream(R) and Vactor(R). In addition, Federal Signal operates a consumable industrial tooling business that includes the leading CLAPPDiCO(R), Dayton Progress(R), Manchester(R) and PCS(R) brands. Federal Signal was founded in 1901 and is based in Oak Brook, Illinois. To learn more about Federal Signal Corporation visit www.federalsignal.com.

 

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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 uncertainties, some of which are beyond the company’s control, include the cyclical nature of the company’s industrial and municipal markets, technological advances by competitors, the Company’s ability to improve its operating performance, risks associated with the execution of planned plant closures, increased warranty and product liability expenses, risks associated with supplier and other partner alliances, changes in cost competitiveness including those resulting from foreign currency movements, disruptions in the supply of parts or components from sole source suppliers and subcontractors, retention of key employees and general changes in the competitive environment.
November 1, 2006

 

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Investment Appeal
Strong brands
Diverse markets
Improving margins
Strengthening balance sheet
Growth opportunities –self funding
Economic Value key performance measurement
New vision focused on sustainable profitable growth

 

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FSS Overview
Key Statistics
5,500 employees $1.2 billion in revenue
Stock trades on NYSE as FSS
Key Competitive Advantages
Rich 100+ year history of product leadership
Strong brand recognition: #1 or #2 in most markets
High-priority products in municipal and industrial markets
Well developed distribution channels Disciplined, focused management team

 

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Federal Signal Today
Environmental Fire Safety
Tool Products Rescue Products Group Group Group Group
$348 million $371 million $277 million $162 million * 2005 Revenues 5

 

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Market Diversity
Segment Revenues Customer Orders $1.2 billion $1.1 billion
Environmental U.S.-Industrial
Safety            and Commercial            Non-U.S. 30% 24% 27% 31%
Fire Rescue            Tool 14% U.S.-Municipal 32% and Government 42%
2005

 

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FSS Orders By Market Segment
45 40 35
30 6-month average ($ millions) 25 20
15
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 03 03 03 03 03 03 03 03 03 03 03 03 04 04 04 04 04 04 04 04 04 04 04 04 05 05 05 05 05 05 05 05 05 05 05 05 06 06 06 06 06 06 06 06 06
US Municipal/Government US Industrial/Commercial Non-US
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Foundation For a New Vision
PREVENT            RESPOND            RECOVER            MAINTAIN
(An Incident) (To An Incident) (From An Incident) (Safe Conditions) Mine lighting            Mine lighting Sewer cleaners            Police            Police PEOPLE Police            Outdoor Warning            Fire rescue vehicles Systems SweepersAmber Integrated Warning Parking systems            Systems Sewer cleaners Police            Police            Water blasters PROPERTY Police Fire rescue vehicles            Vacuum trucks PROTECT Parking systems Sweepers            Outdoor Warning            Vacuum trucks            Sweepers ENVIRONMENT Systems Sewer cleaners            Fire rescue vehicles            Sewer cleaner
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our vision The leader in advancing security and well-being for communities and workplaces around the world.

 

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Our Mission We serve organizations that protect people, property and the environment.
We listen to customers and imagine ways to help them address emerging needs.
We create innovative solutions drawing upon the talent of our employees and a rich portfolio of products and services.
We deliver superior growth in economic value.

 

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Municipal and Workplace Security and Well-Being
11

 

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Product Leadership: Our Primary Strategic Thrust
A comprehensive enterprise strategy
Shapes every plan and decision we make
Colors the entire organization —from
competencies; to culture; to business priorities
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Growth Strategies

 

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Enabling Strategies

 

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Safety Products Group —
Continued Growth
Emergency Electrical Parking Products Products Products Products Lightbars, beacons, sirens and Beacons, horns, outdoor warning Gates, ticket dispensers, cash speakers sirens, communications systems, registers, card readers, software mining and marine hazardous area lighting
Customers Police and fire departments, Industrial plants, petrochemical            Parking operators, airports, ambulance services, DOTs, plants, ship/rig builders, coal municipalities, shopping centers, utilities, tow truck operators            mines, municipalities, nuclear          &n bsp; universities, hospitals, hotels plants, military bases Channels Police and truck equipment            Electrical wholesalers, catalog            Parking equipment distributors, distributors, catalog houses, houses, OEMs, direct            direct installers, OEMs, direct
Competitors Whelen, Code 3, Ecco Edwards/GE, Gaitronics/Hubbell, Amano, Ascom,
Crouse-Hinds/Cooper, Whelen Scheidt & Bachman, SkiData
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Safety Products Group
Overview/Outlook
Sales vs. Operating Margin
Recent leadership change
350 20 Solid market positions and financial
$ %
300 $277 performance
$247 16
16.2%
250 16.3% 12.9% New product development pipeline
13.5% 12
200 $222
$205 Global expansion
150
8 “Whitespace”—large airport parking 100 systems, water/waste water
4 management systems, integrated
0 0 security systems, others to come
2004 2005 YTD YTD
3Q05 3Q06
Sales ($M)
Operating Margin (%)
* Includes a $6.7 M gain from product-line sales in Q305.

 

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Fire Rescue Group — Accelerating
Rescue and Pumper ARFF Aerial Fire Homeland Security and Tanker Apparatus Apparatus Products Custom and Custom and commercial Apparatus designed for Aerial waterway, ladders, commercial rescues for pumpers and tankers for rapid attack and traditional and articulated command/ municipal and industrial intervention for aircraft or devices operation centers, markets airfield events bomb trucks, HazMat
Customers Cities, Counties, States, Cities, Counties, Airports and            Cities, Counties, Federal Government            States, Refineries            Military Airbases            States, Refineries Channels Dealer Network            Dealer Network            Direct Sales            Dealer Network and Direct Sales Competitors Pierce / LDV, SVI, ALF            Pierce, Rosenbauer, ALF            Oshkosh, Rosenbauer            ALF, Pierce, KME Rosenbauer
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Fire Rescue Group
Overview/Outloo k
Sales vs. Operating Margin
$ 450 Recognized brands and broad
19 % product offering
400 $361 $377
350 15 Stable markets with growth 300 potential
11
250 $263 $261 Established and expanding
7
200 distribution
150 3
1.0%
-0.5% Improving economies of scale and
100 -0.9%
-1 market diversification
50
0 -5.1% -5 Growth opportunities for E-ONE 2004 -5.1% 2005 YTD YTD and Bronto apparatus
3Q05 3Q06
Operational improvements equate
Sales ($M)
to margin growth over time
Operating Margin (%)
Operating margin excludes adverse impact of restructuring cost

 

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Fire Rescue Group
Continuous Improvement Update
Key performance indicators continue to show favorable trends —throughput, lead times, hours per unit, build quality, primary working capital, days sales outstanding, etc.
Cost-reduction initiatives — being realized, more to come
Margin growth from operational improvements and strategic transition
Strengthening, enabling and expanding distribution
EzOne configurator rollout — on-schedule, providing immediate benefits
Transforming product management/engineering to energize product leadership focus
Stable backlog with production essentially filled for 2006
E-ONE brand —loyal customer base, attracting new customers

 

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Environmental Products Group —
Expanding Opportunities
Sweepers Vacuum Trucks — Vacuum Trucks — Water Blasters Municipal Industrial Products Street, parking lot Sewer and catch basin Vacuum loaders that clean Water blasters that and industrial cleaners, glycol recovery up industrial waste or clean and prepare sweepers vehicles, hydro recover and recycle industrial surfaces excavating vehicles valuable raw materials Customers
Contractors, cities, Contractors, cities, Industrial contractors, Industrial contractors, counties, states, counties, states, airports plants and rental houses plants and rental airports houses Channels Dealers, direct Dealers Direct Direct, distributors
Competitors Schwarze, Tymco, VacCon, Super Products, Super Products, GapVax, NLB, Gardner Denver, Allianz Clean Earth, Aquatech VacCon, Clean Earth Woma, Hammelman
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Environmental Products Group
Overview/outlook:
Sales vs. Operating Margin
$ 400 16 % Certain Leach refuse assets sold
350
$348 International growth opportunities 300 12
$295 $297 Federal Signal Shanghai won
250 9.2%
8.5% its first order for refuse truck 200 8.6% $259 8 bodies for the local Chinese
8.3%
150 market
100 4 50
0 0 2004 2005 YTD YTD
3Q05 3Q06
Sales ($M)
Operating Margin (%)

 

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Tool Group —
Expanding Globally
Die & Mold Tooling Cutting Tools Products Punches, pins, Milling inserts, grooving components, retainers, inserts, cut-off tools, grooving matrices, mold bases tools, insert type drilling
Customers Automotive OEMs, Automotive OEMs, tier 1 injection molders, suppliers, small engine diecasters manufacturers, aerospace, pumps and compressors
Channels Industrial distributors, Industrial distributors, direct industrial catalogs, direct Competitors OME, Progressive, Kennametal, Sandvik, Iscar Misumi, Husky, Anchor Danly
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Tool Group
Sales vs. Operating Margin Overview/outlook:
$ 200 20% New leadership focused on 180 profitable growth with increased
160 $162 16
$161 NA market share
140
120 10.3% 12 Global expansion
10.2% 10.4% 8.8%
100 $122 $122
80 8 60
40 4 20
0 0 2004 2005 YTD YTD
3Q05 3Q06
Sales ($M)
Operating Margin (%)
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Financial Overview

 

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2006 Outlook 2005 2006
Revenue Op Margin % Revenue            Op Margin 3-5 Year Outlook
EPG 348 8.3% + 10-14% 8-9% Margin stable 8-9% FRG 371 0.9% + 3-4% <2.5% Gradual improvement to 9-10% SPG 277 16.3% + 9-10% 13-13.5% 2005 product-line gain — 2.5% modest margin upside Tool 162 10.3% Flat 9-10% Continued margin recovery FSS 1157 6% + 6-8% 6-7% Target 10% operating margin

 

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In Ten Years ... 15% ROIC Triple revenue Strong balance sheet
10% operating margin Commensurate share price
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Federal Signal . . .
The leader in advancing security and well-being for
communities and workplaces around the world.

 

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Advancing security and well-being every day.
Robert D. Welding President and CEO November 1, 2006

 

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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 uncertainties, some of which are beyond the company’s control, include the cyclical nature of
the company’s industrial and municipal markets, technological advances by competitors, the Company’s ability to improve its operating performance, risks associated with the execution of planned plant closures, increased warranty and product liability expenses, risks associated with supplier and other partner alliances, changes in cost competitiveness including those resulting from foreign currency movements, disruptions in the supply of parts or components from sole source suppliers and subcontractors, retention of key employees and general changes in the competitive environment. November 1, 2006

 

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The Emerging Security Space
An uncertain world
A fragmented $60B global market
Growing at the rate of 8-9% per year
Customers desire integrated solutions... Federal Signal brings it all together

 

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Federal Signal
Intelligent Municipal Security Solution
New Federal Signal Solutions
hm s orit Alg ar e oftw
& S Command Video/Thermal & Control
Algorithms
Climate
& Software
Sensors CBNRE
Magnetic Field Analyze            Prevent, Warn, Recover, Sense Respond            Maintain Traditional Federal Signal Products

 

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Federal Signal Integrated Security Systems
Customer Example
Qatargas
What Customers Want
Fail-safe communications for government and industrial installations
Technology
Self-healing fiber-optic ring
A scaleable, redundant network solution

 

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Federal Signal All-Hazard Warning Systems
Customer Example
State of Washington
What Customers Want
Tsunami warning
Technology
Pre-recorded and live broadcasting capability
Activation and management via satellite

 

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Federal Signal E-ONE Command and Control Vehicles
Customer Example
City of Chicago
What Customers Want
Mobile emergency operations
Highlights
State-of-the-art communications tools
A custom fully integrated truck body and chassis

 

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Federal Signal Bronto Aerial Devices
Customer Example
Maes Hoogwerkers, Belgium
What Customers Want
Access to challenging industrial and rescue environments
Technology
Bronto product line can reach up to 331 feet
Remote diagnostics

 

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The leader in advancing security and well-being for communities and workplaces around the world.

 

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