EX-99.1 2 d538068dex991.htm EX-99.1

Disciplined Growth Investor Presentation May, 2013 Exhibit 99.1

Advancing security and well-being. 2 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’s future financial performance, business strategy, plans, goals and objectives. These expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning the Company’s possible or assumed future performance or results of operations and are not guarantees. While these statements are based on assumptions and judgments that management has made in light of industry experience as well as perceptions of historical trends, current conditions, expected future developments and other factors believed to be appropriate under the circumstances, they are subject to risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements to be materially different. These risks and uncertainties, some of which are beyond the Company’s control, include the cyclical nature of the Company’s industrial, municipal, governmental and commercial markets; domestic and foreign governmental policy changes; restrictive debt covenants; availability of credit and third-party financing for customers; our ability to anticipate and meet customer demands for new products and product enhancements and the resulting new and enhanced products generating sufficient revenues to justify research and development expenses; our incurrence of restructuring and impairment charges as we continue to evaluate opportunities to restructure our business; highly competitive markets; increased product liability, warranty, recall claims, client service interruptions and other lawsuits and claims; technological advances by competitors; disruptions in the supply of parts and components from suppliers and subcontractors; attraction and retention of key employees; disruptions within our dealer network; work stoppages and other labor relations matters; increased pension funding requirements and expenses beyond our control; costs of compliance with environmental and safety regulations; our ability to use net operating loss (“NOL”) carryovers to reduce future tax payments; charges related to goodwill and other long-lived intangible assets; our ability to expand our business through successful future acquisitions; unknown or unexpected contingencies in our existing business or in businesses acquired by us. These risks and uncertainties include, but are not limited to, the risk factors described under Item 1A, Risk Factors, in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other filings with the SEC. These factors may not constitute all factors that could cause actual results to differ materially from those discussed in any forward-looking statement. The Company operates in a continually changing business environment and new factors emerge from time to time. The Company cannot predict such factors, nor can it assess the impact, if any, of such factors on its financial position or results of operations. Accordingly, forward-looking statements should not be relied upon as a predictor of actual results.

Advancing security and well-being. Agenda I. Investment Case II. Overview of Company III. Financial Results IV. Growth 3

Advancing security and well-being. Investment Case Dominant Market Position in Critical Infrastructure Markets Unparalleled Brand Equity and Distribution Franchise in Served Markets Strengthened Balance Sheet with Increasing Ability to Generate Free Cash Flow Flexible Manufacturing Capacity that is “In-Place” and Capable of Delivering Higher Revenues and Profits Long-Term Favorable Market Dynamics Aging Infrastructure Growing Investments in Energy Demand for Products to Address Man-Made and Natural Disasters Improving Industrial Markets Management Execution Management Depth in Sales, Marketing, Engineering and Operations 4

Advancing security and well-being. 5

Advancing security and well-being. Experienced Management Team President and CEO since October 2010 Previously served as Chairman, President and CEO of General Binding Corporation 35+ years operational & leadership experience primarily at Illinois Tool Works and Ingersoll-Rand Appointed Chief Financial Officer May 28, 2013 Formerly Chief Financial Officer of Westell Corporation since 2009 Previously Chief Financial Officer of Fellowes, Inc. Strong Treasury and Investor Relations background Chief Administrative Officer since November 2010 and Secretary and General Counsel since March 2004 Operating executive for Safety and Security Systems Group Joined Federal Signal in 1994 as Corporate Counsel 18 years with Federal Signal 6 Dennis Martin, President and Chief Executive Officer Jennifer Sherman, SVP, Chief Administrative Officer, General Counsel and Secretary Brian Cooper, Chief Financial Officer

Advancing security and well-being. Experienced Management Team Safety & Security Systems Group Bryan Boettger, President, Public Safety Systems Division Joseph Wilson, President, Industrial Systems Division Dan DesRochers, Vice President of Operations, Safety and Security Systems Group Fire Rescue Group Esa Peltola, President, Fire Rescue Group 7 Responsible for Federal Signal’s Public Safety Systems Division Joined Federal Signal as Manager of Manufacturing Engineering and has continued through the organization in 25 years with Federal Signal Responsible for Federal Signal’s Industrial Systems Division Joined Federal Signal in 1987 as the Western Regional Sales Manager for Electrical Products and has 25 years with Federal Signal Vice President of Operations, Safety and Security Systems Group since 2011 Former VP and General Manager of Elgin 22 years of operations and management experience in manufacturing 6 years with Federal Signal President of Fire Rescue Group since 2007 Managing Director of Bronto Skylift OY AB since 1998 Joined Bronto in 1969 as an electrician’s assistant and has held a variety of positions of increasing 44 years with Bronto positions of increasing responsibility continually progressed through the organization into positions of increasing responsibility responsibility in design, maintenance, product management and sales and marketing

Advancing security and well-being. Experienced Management Team Vice President and General Manager of Elgin, Vice President of Sales, Elgin/Vactor North American Dealer Channel since 2012 Former Vice President of Sales and Marketing Joined Federal Signal as a Manufacturing Engineer and held several positions in operations, production, service and sales prior to 2004 25 years with Federal Signal Vice President of Vactor since 2010 Transferred to Vactor in February 2003 as Plant Manager 9 years at Elgin in various manufacturing positions 18.5 years with Federal Signal Vice President, Direct Channel Sales since 2012 Vice President and General Manager of Jetstream since 2006 Direct Channel Sales ESG 13 years with Federal Signal Vice President of Sales and Parts Operations since 2013 Former Vice President and General Manager of Vactor 2003-2010 28 years of executive experience in manufacturing 7 years with Federal Signal 8 Environmental Solutions Group Mike Higgins, Vice President Sales and Marketing Sam Miceli, Vice President, General Manager of Vactor Bill Krupowicz, Vice President and General Manager of Jetstream of Houston Dan Schueller, Vice President, Sales and Parts Operations

Advancing security and well-being. Federal Signal Overview Products and Services Enhance the Safety, Security and Well-Being of Communities and Workplaces Around the World 11 Manufacturing Facilities in 6 Countries Operates 3 Segments: Environmental Solutions Group (ESG) Fire Rescue Group (Bronto) Safety & Security Systems Group (SSG) Increasing Global Presence and Installed Base of Customers – Over 3,000 Customers in more than 100 Countries Employees: ~2,600 Worldwide Company Overview 2012 Net Sales by Segment Fire Rescue Group 17% Environmental Solutions Group 53% Safety & Security Systems Group 30% 9

Advancing security and well-being. Federal Signal Segments ESG Products Geographic Mix 2012 Revenue Elgin street sweepers Vactor truck-mounted sewer cleaners, hydro-excavators, and industrial vacuum trucks Jetstream waterblasters FS Depot and FS Solutions – parts and service deliveries and rental center $428MM (53% of sales) $240MM (30% of sales) $135MM (17% of sales) Fire Rescue Aerial lift access platforms for fire rescue and wind turbine maintenance, utilities and other industrial applications SSG Vehicle lights and sirens (U.S. and VAMA) Indoor and outdoor mass warning and notification systems (Industrial Systems and Alerting & Notification Systems) Victor mining and electrical safety equipment U.S. 6% Non-U.S. 94% Non-U.S. 20% U.S. 80% 10 U.S. 58% Non-U.S. 42%

Advancing security and well-being. Diversified Product Mix 11

Advancing security and well-being. Industrial Systems Integrated Communications SmartMsg Enabled Systems ICS Integrated Command Solution Indoor Warning System Public Address/General Alarm Public Safety Software Systems Outdoor Warning Systems Interoperable Communications Citizen Alerting Systems 12

Advancing security and well-being. Hydro-Excavation Hydro-excavating through ice 13 with hot water

Advancing security and well-being. Waterblasting Hydro-demolition, hydro-cleaning and high pressure cleaning 14

Advancing security and well-being. Consolidated Historical Financial Performance* ($ in millions) 2010 2011 2012 Revenue $633.1 688.7 $803.2 % Growth -- 8.8% 16.6% COGS 482.2 533.3 613.4 Gross Profit $150.9 $155.4 $189.8 % Margin 23.8% 22.6% 23.6% Operating Expenses 138.5 122.2 138.3 Operating Income $12.4 $33.2 $51.5 % Margin 2.0% 4.8% 6.4% Interest Expense 10.2 16.4 21.4 Other Expense 1.2 0.2 4.2 Pretax Income $1.0 $16.6 $25.9 * Consolidated financial results reflect only continuing operations of the Company 15

Advancing security and well-being. 2012 Headlines: Margin Expansion and Debt Reduction Continued Progress on Operating Margin Targets Complemented by Declining Leverage Business Segment FY 2011 Operating Margin FY 2012 Operating Margin Margin Targets ESG 6.8% 9.8% 10% - 12% Bronto 6.0% 6.6% 10% - 12% SSG 9.7% 12.0% 14% - 16% 16 Operating Margin excludes the impact of restructuring charges in both 2011 and 2012

Advancing security and well-being. 2013 and Beyond Overview Adjusted EPS* and Guidance *Adjusted EPS excludes the effect of debt settlement charges and reflects only the continuing operations of the Company. 17 Areas of Focus Progress Toward Margin Targets at Bronto and SSG Accelerate Growth in Industrial Markets Deliver Increased Value to Shareholders

Advancing security and well-being. Industrial Business Growth Opportunities Business Unit Industrial Order Mix* Success Factors in Increasing Industrial Mix U.S. Industrial Systems 63% • Extending Leadership in Public Warning Systems in Commercial Markets • Building Global Distribution Capabilities Global Jetstream 100% • Global Channel Development • New Product-Application Development Bronto 23% • North American Distribution • Further Exploit Utility Markets U.S. Vactor 50% • Continued Investment in Efficient Capacity • Leverage New Application Successes (e.g. Hydro-excavation) * Industrial Order Mix Includes Fiscal Years 2010 through 2012 Success Factors Complemented by Targeted Product Line Acquisitions 18

Advancing security and well-being. 2010 2011 2012 Percentage of Orders from Industrial Customers* Execution on Building Industrial Customer Mix at Bronto *Excluding service revenue; lifts only. Data reflect revenue mix in Euros. 19

Advancing security and well-being. Growth Strategy Geographic Expansion New Markets for Existing Products New Product Development and Acquisitions 20 Innovation Program Effective use of established platforms Waterblasting Hydro-excavation Security Systems Bronto in North America Export markets from U.S. Jetstream and Industrial Systems in the Asia Pacific and Middle East

Advancing security and well-being. Building Equity in our Brands 21