Exhibit 99.2
| Welcome Investor Day 2006 |
| Safe harbor |
| the date and the its risks from about the risks markets, warranty disclosure of of presentation include improve plants, as These to increased resulting information Use or statements control, municipal ability body those Statements in this statements. company’s and refuse closures, including non-public company’s and plant forward-looking the industrial the rescue material beyond fire planned forward-looking are of company’s competitors, its competitiveness contain are which by in cost the execution may of in This presentation therefore may not be distributed, reproduced or historical some of advances the presentation not nature performance with changes are cyclical operating Safe Harbor This company.used without the express written consent of the company.material non-public information by the recipient of this presentation or any one obtaining this information from the recipient may constitute a criminal offense. This presentation contains various hereof and the company undertakes no obligation to update these statements regardless of new developments or otherwise.that uncertainties, technological associated and product liability expenses, risks associated with supplier and other partner alliances, 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. |
| Federal Signal CorporationA New Direction... |
| Changed our measurement system to EV Changed primary growth focus to organic Divesting businesses that don’t fit Investing in our peoplePlaying to Win! |
| What We’re Doing Differently |
| MAINTAIN(Safe Conditions) Jetstream GuzzlerTool GroupSweeper Vactor |
| RECOVER(From An Incident) |
| Police Fire Amber Police Fire Guzzler Fire |
| Safety Products Group |
| RESPOND(To An Incident) Outdoor Warning Integrated Warning Systems Outdoor Warning Mine lighting Police Police |
| PREVENT(An Incident)Fire Rescue Group |
| Mine lighting Sewer Police Sweeper Parking Sewer Police Parking Sweeper Sewer |
| PEOPLE PROPERTY Environmental Products Group ENVIRONMENT |
| What is Federal Signal?PROTECT |
| Municipality |
| Major Strengths |
| Very strong brand names Extensive U.S. distribution network Broad array of core competencies |
| our mission |
| A comprehensive enterprise strategy Shapes every plan and decision we make from competencies; to culture; to business priorities Colors the entire organization — |
| Product Leadership: Our Primary Strategic Thrust |
| Strategies for Growth |
| Passionately pursue Product Leadership through robust market intelligence and increased investment in product development |
| Capitalize on global expansion in targeted areas |
| Attack white space growth opportunities at all levels of the enterprise |
| Cultivate enterprise customers leveraging business relationships and improving channel effectiveness |
| Strengthen the enterprise portfolio improve global market and product positions |
| Enabling Strategies |
| Unite the company around a common culture |
| Implement world-class supply chain |
| Improve the efficiency of our overhead |
| Drive continuous improvement in operations |
| Unleash the collective capabilities of our global workforce |
| our values Commensurate share Long — Term Targets In Ten Years ... Triple revenue 10% operating margin 15% ROIC Strong balance sheet price |
| Federal Signal. . .The leader in advancing security and well-being for communities and workplaces around the world. |
| long term targets |
| Federal Signal CorporationOrganic Growth Through Product Innovation |
| paly to win |
| federal signal |
| federal signal corporation |
| Investor Day 2006 Greg Sink |
| Mission ways to help , drawing upon theimagine innovative solutions |
| We serve organizations that protect people, property, and the environment. We listen to customers and them address emerging needs. We create talent of our employees and a rich portfolio of products and services. We deliver superior growth in economic value. |
| Municipality |
| at Enterprise and Group |
| Culture of innovation Identify “white space” Establish Market & Technical Council Take FSS where it has not gone before |
| Towards Our New Vision |
| White space Competencies Technology |
| Market and Technical Council Macro trends |
| World events identified inefficiencies Customers have new emerging needs FSS has a unique set of core competencies Technology enablers provide new platforms |
| Market and Technical Council Results |
| A Challenging World |
| Indian Ocean Louisiana Central Philippines |
| Oklahoma City bombing USS Cole suicide bombing Attack on World Trade Center Madrid train bombings London underground bombings Tsunami earthquake — Hurricane Katrina — Mud Slide — |
| April 19, 1995 October 12, 2000 September 11, 2001 March 11, 2004 July 7, 2005 December 26, 2004 August 29, 2005 February 17, 2006 |
| Man-made Disasters Natural Disasters |
| damage between equipment across systems informationinfrastructure communicate criticalagency/country responses to eventsnteroperability |
| I Ability to Ability to share Ability to respond despiteMultiple |
| Customer Unmet Needs |
| FSS Core Competencies |
| Mesh Networks Outdoor/indoor Voice over Internet Protocol Voice commands Chemical, Biological, Radiological, Nuclear, Explosive |
| — —— — — Wireless Video surveillance VoIP Voice recognition Sensors Technology Enablers |
| front-end ideas Unveiling proof-of-concept model Brain stormed over 1,000 ideas Identified 100 “fuzzy” Submitted 18 invention disclosures Identified 7 non-traditional products |
| — — — — —December 2004 November 2005 January 2006 February 2006 March 2006 |
| Innovation in Action |
| What Drives Our Growth Opportunities |
| Unique footprint Product depth Employee talent Core competencies Culture of innovation |
| i ti e sab i lCa p |
| White SpaceWireless Video VoIP Voice recognition SensorsOpportunitiessdeTechnology |
| eN |
| World events Interoperability Communication Intelligence Infrastructure |
| Federal Signal will innovate products that communicate with one another. Designed to share and collect data providing security and well-being personnel with intelligent information. So they may make more informed decisions as they carry out their duties and responsibilities. |
| The Path to Our Future |
| Our Vision is Closer Than You Think We invite you to...Embrace our future and experience the difference! |
| Federal Signal. . .The leader in advancing security and well-being for communities and workplaces around the world. |
| Fire Rescue GroupAccelerating |
| Investor Day 2006 |
| Margin improvement Lower warranty expense rollout Economic Value improvement Quality Improved lead times Configurator Reductions in working capital |
| 2005 Highlights |
| Product leadership Innovation Market and distribution expansion The Passing Lane |
| Product development Systems integration Custom manufacturing |
| FRG: Core Competencies |
| FRG: Core Markets |
| Since 1966 |
| Our Portfolio of Leading BrandsSince 1974 |
| Pumpers |
| 2005Indicates E-One is a top two player |
| Other |
| Wildlands ARFF Tankers Aerials |
| NA Served Market —Rescues |
| Fire Rescue market revenues top $1.5B |
| NFPA regulations Urbanization / Sprawl Safety / Security |
| Society••• |
| Productivity Fiscal constraints Fleet demographicsChange Drivers Interoperability Increased functionality Federal regulations |
| Customers Technology••• |
| ·•• |
| Global influence Consolidation / Scale Price pressure |
| Market DynamicsCompetitors••• |
| Top CompetitorsPierce / LDV SVI ALF law enforcement (DEA, SWAT) and HazMat. |
| Custom and commercial rescues for command/operation centers, bomb trucks, Cities, Counties, States, Federal Government Dealer Network |
| Total NA Market $130M |
| Rescue & Homeland SecurityE-One Products Customers Channels |
| Top CompetitorsPierce Rosenbauer ALF Custom and commercial pumpers and tankers for municipal and industrial markets. Cities, Counties, States, Refineries Dealer Network and Direct Sales |
| Total NA Market $825M |
| Pumper & TankerProducts Customers Channels |
| E-One |
| Top CompetitorsOshkosh Rosenbauer intervention for aircraft or airfield events. |
| Apparatus designed for rapid attack and Airports and Military Airbases Direct Sales |
| Total NA Market $40M |
| ARFF ApparatusProducts Customers Channels |
| E-One |
| Top CompetitorsALF Pierce KME Rosenbauer |
| Aerial waterway, ladders, traditional and articulated devices. Cities, Counties, States, Refineries Dealer Network |
| Total NA Market $300M |
| Aerial Fire ApparatusProducts Customers Channels |
| E-One |
| Expand performance boundaries |
| Growth: Product Leadership |
| Aerial Information System Vehicle Information Control |
| Growth: Global Expansion |
| Growth: Channel Effectiveness |
| 2003-2006: FRG Revenue Growth |
| Operational improvements and strategic transition equate to margin growth Recognized brands and extensive product lines Stable markets with growth potential Established and expanding distribution Improving economies of scale and market diversification Growth opportunities for E-ONE and Bronto apparatus 2007 product launches for emerging market segments |
| Summary |
| Protecting Communities Around the World |
| Federal Signal. . .The leader in advancing security and well-being for communities and workplaces around the world. |
| Investor Day 2006 Environmental Products GroupExpanding Opportunities |
| EPG Today |
| A Portfolio of Leading Products |
| of EPG product leadership. |
| 283 years |
| 2005 EPG Distribution of Orders |
| 2002-2006 EPG Revenues — |
| Sweepers |
| Municipal |
| CompetitorsVacCon Super Products Clean Earth Aquatech Vacuum Trucks —Total NA Market $100M FSS |
| IndustrialCompetitorsSuper Products GapVax VacCon Clean Earth Vacuum Trucks —Total NA Market $50M |
| FSS |
| Water Blasters |
| Water BlastersX X X XIndustrial Vacuum TrucksX X X XMunicipal Vacuum TrucksX X X XSweepersX X X |
| What Drives Our Business Environmental standards, regulations Fiber-optic deployment Industrial production Natural disasters Power generation Urbanization |
| What EPG is up to... |
| Increased market and customer intelligence Pursue technology alliances Establish centralized technology group |
| Product Leadership |
| Product Leadership at Work |
| Establishing joint venture in China Introducing water blasters in Europe Delivering vacuum kits to Thailand |
| Global Expansion |
| Establish leadership Dedicated distribution center |
| Service parts business expansion••Expand the product portfolio aggressively |
| White Space |
| What’s Next for EPG... |
| Recast Market Space |
| globally Extending product leadership Seizing environmental opportunities — Attacking white spaces and recasting market size |
| Summary |
| Advancing Well-Being Around the World |
| Federal Signal. . .The leader in advancing security and well-being for communities and workplaces around the world. |
| Safety Products GroupContinued Growth |
| Investor Day 2006 |
| SPG Today |
| 2005 SPG Distribution of Orders |
| 2002-2006: SPG Revenues Grow |
| CompetitorsWhelen Code 3 Ecco Others (8+) Lightbars, beacons, sirens and speakers Police and fire departments, ambulance services, DOTs, utilities, tow truck operators Police and truck equipment distributors, catalog houses, installers, OEMs (firetrucks, utility trucks, tow trucks), direct |
| Total NA Market $300M |
| Emergency ProductsFSS Products CustomersChannels |
| CompetitorsEdwards/GE Gaitronics/Hubbell Crouse-Hinds/Cooper Whelen |
| Total NA Market $300MBeacons, horns, outdoor warning sirens, communications systems, mining and marine hazardous area lighting Industrial plants, petrochemical plants, ship/rig builders, coal mines, municipalities, nuclear plants, military bases Electrical wholesalers, catalog houses, OEMs, direct |
| Electrical ProductsFSS Products Customers Channels |
| & BachmanCompetitorsAmano Ascom Scheidt SkiData |
| Total NA Market $90MGates, ticket dispensers, cash registers, card readers, software Parking operators, airports, municipalities, shopping centers, universities, hospitals, hotels Parking equipment distributors, direct |
| ParkingFSS Products Customers Channels |
| ParkingX X XElectrical ProductsX X X X X X X XEmergency ProductsX X X X X X |
| What Drives Our Business Market Drivers General economy Industrial activity Energy prices Government spending Federal funding Natural/man-made disasters Safety regulations Technology |
| What SPG is up to... |
| Identify trends Generate “big” new solution opportunities Collaborate across the enterprise New product development pipeline... |
| Product Leadership |
| product platforms using |
| LED technology for vehicle and industrial application Several “next-generation” new technology/materials market entry Enhanced software/networking functionality to move from a device manufacturer to a solutions provider Key new products for global expansion and “white space” |
| Product Leadership: NPD Pipeline |
| Product Leadership at Work |
| Far East Select European Areas Mexico and Latin America Mid East |
| Global Expansion |
| Large airport parking systems Water/waste water management system Others to come |
| White Space |
| What’s Next for SPG? |
| ToMkt. Size $1+ billion Mkt. Size $1+ billion Mkt. Size $1+ billion $3+ Billion Specialty vehicle products and systems integration — Emergency warning/response and process control products and systems — Ground transportation revenue and control systems - |
| Mkt. Size $600 million Mkt. Mkt. |
| FromSignaling, communication and hazardous area lighting — Size $600 million Parking and revenue control equipment and systems — Size $400 million $1.6 Billion Recast Market Space Emergency vehicle signaling equipment - |
| Solid market positions and financial performance New product development pipeline Opportunities for global expansion Attacking white space opportunities |
| Summary |
| Advancing Safety Around the World |
| Federal Signal. . .The leader in advancing security and well-being for communities and workplaces around the world. |
| Federal Signal CorporationFinancial Overview |
| Investor Day 2006 |
| 2006 outlook Strategic goals |
| 3-5 Year OutlookMargin stable 8-9% Gradual improvement to 9-10% 2005 product-line gain — 2.5% modest margin upside Continued margin recoveryTarget 10% operating margin Op Margin8- |
| 9% 2.5-4% 14-15% 11-12%6-7% 2006 Revenue+ 5-7% + 6-9% + 4-6% + 5-6%+ 6-8% Op Margin %8.3% 0.9% 16.3% 10.3%6% 2005 Revenue348 371 277 16211572006 Outlook EPG FRG SPG ToolFSS |
| $140MM revenue Negative margin $80MM cash generated |
| Divestitures, Consolidations = |
| SSI Leasing Portfolio Plastisol Dayton France Preble Justrite TTI Victor Product Lines Refuse FAPD do Brasil |
| “Shrink to Grow” |
| Growth Strategies |
| Increase sales from new products Boost organic growth |
| Product Leadership |
| Sales from Products Introduced in Past 3 Years |
| 6-8% per annum |
| Organic growth |
| Organic Growth in New Business |
| 2-4% per annum |
| Growth from acquisitions |
| organic growth strategies Targeted impact: 2-4% (one-third) top-line growth |
| Focused on “jump starting” EV accretion will be the measure Integrate acquired companies to achieve synergies |
| Acquisition Strategy |
| Enabling Strategies |
| Improving Gross Margins |
| 2010 2009 2008 2007 |
| 2006 2005 |
| 2004Globalizing supply chain management processes Simplifying manufacturing footprint Achieving operational productivity through lean enterprise initiatives |
| Key Drivers |
| 18%2008 2007Excludes restructuring and product-line gain * |
| 2006 |
| 19.7%2005 |
| 20.0%2004 |
| 22 10Streamline transactions process using technology Optimize sales channels Fund R&D increases internally Increase market intelligence spend |
| Reduce and Reprioritize Operating ExpensesSG&A % of SalesKey Drivers |
| 2008 |
| 15% |
| 2007Excludes restructuring and product-line gain |
| 2006* |
| 19.7% 2005 24.5% 2004 |
| 25 20 15 10 5 Key DriversLean enterprise focus on inventories Product and sales configurators JD Edwards implementations Increase deposits on customized products |
| Operating Working Capital – /$ Sales |
| Reduce Working Capital¢ |
| 18%2008 2007Excludes restructuring and product-line gain * |
| 2006 |
| 19.7%200520.0%2004 |
| 22 10Streamline transactions process using technology Optimize sales channels Fund R&D increases internally Increase market intelligence spend |
| Reduce and Reprioritize Operating ExpensesSG&A % of SalesKey Drivers |
| Investment grade capital structure Dividend payout: 30-40% of earnings Repurchase stock to offset dilution from compensation Other repurchases to be situation specific |
| Financial Management |
| Growth in Economic Value$ in Millions |
| Break-even Economic Value consistent with 9% ROIC Annual improvements targeting 15% in 3 to 5 years |
| self funding |
| Strong brands Diverse markets Improving margins Growth opportunities – Strengthening balance sheet New vision focused on improving Economic Value |
| Investment Appeal |
| Federal Signal. . .The leader in advancing security and well-being for communities and workplaces around the world. |
| Sales Tool Demo Presented By:Larry Schenavar® Director, IT Special Projects |
| EzONE Note: To save this PowerPoint document from your browser, click File/Save As |
| 122 |
| ® |
| EzONEModular Body Design Managed Product Change ProcessMajor Changes from Current Sales Tool38 Base Models 3300 Salescodes Predefined Location Tables Predefined Color TablesSpec OneDealer controlled product change 150 Base Models 4500 Salescodes Stretchy Body Design Dealer Specified Locations Dealer Specified |
| Colors |
| Components |
| ® |
| EzONE |
| 124 |
| Benefitsengineering |
| ® Increase configuration accuracy Less time configuring orders, more time selling. Reduce Sales Administration Overhead Ability to create standard work instructions Reduce reliance on skilled craftsmen Create stable/repeatable bills of materials Reduce “Per Truck” Free up engineering resources for new product development Stable bill of material increases MRP accuracy MRP accuracy reduces expediting of materials |
| EzONE |
| Sales••• Manufacturing•• Engineering••• Purchasing•• |
| ® |
| EzONE Dealer Portal Demonstration |
| Q & A |