Federal Signal Q3 2015 Earnings Call November 3, 2015

Dennis Martin, President & Chief Executive Officer

Brian Cooper, SVP, Chief Financial Officer

Jennifer Sherman, SVP, Chief Operating Officer

Safe Harbor

This presentation contains unaudited financial information and various forward-looking statements as of the date hereof and we undertake no obligation to update these forward-looking statements regardless of new developments or otherwise. Statements in this presentation that are not historical are forward-looking statements. Such statements are subject to various risks and uncertainties that could cause actual results to vary materially from those stated. Such risks and uncertainties include but are not limited to: economic conditions in various regions, product and price competition, supplier and raw material prices, foreign currency exchange rate changes, interest rate changes, increased legal expenses and litigation results, legal and regulatory developments and other risks and uncertainties described in filings with the Securities and Exchange Commission. This presentation also contains references to certain non-GAAP financial information. Such items are reconciled herein and in our earnings news release provided as of the date of this presentation.

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• Strong Q3 results exceeded our expectations, despite headwinds

12.6% operating margin vs. 11.4% last year

Operating margin improvements in all of our groups

$41 M of operating cash flow, almost double prior-year levels

• Recently announced 17% increase in dividend

Dividend of $0.07 per share declared for Q4

• Increased share repurchases to $5.6 M during Q3

• Raised full-year earnings outlook to a new range of $1.00 to $1.04 per share

Increased from a range of $0.95 to $1.02

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CEO Remarks

Q3 Highlights *

• Net sales of $206 M, down 6%

• Operating income of $25.9 M, up 4%

• Operating margin of 12.6%, up from 11.4%

Improved operating margin in each of our groups

• EPS of $0.26, up 8% from $0.24

• Operating cash flow of $40.9 M, up 96%

• Orders of $204 M, down 9%

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* Comparisons versus Q3 of 2014

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Group and Corporate Results

$ millions, except % Q3 2015 Q3 2014 % Change

ESG Orders 108.5$ 140.1$ -23%

Sales 123.0 134.1 -8%

Operating income 21.5 21.5 0%Operating margin 17.5% 16.0%

SSG Orders 59.7$ 62.4$ -4%

Sales 56.7 59.7 -5%

Operating income 9.3 9.4 -1%Operating margin 16.4% 15.7%

FRG Orders 36.1$ 22.3$ 62%

Sales 26.1 25.5 2%

Operating income (loss) 0.7 (0.2) NMOperating margin 2.7% -0.8%

Corporate expenses 5.6$ 5.8$ -3%

Consolidated Orders 204.3$ 224.8$ -9%

Sales 205.8 219.3 -6%

Operating income 25.9 24.9 4%Operating margin 12.6% 11.4%

Income from Continuing Operations

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$ millions, except % and per share Q3 2015 Q3 2014 $ Change % Change

Net sales 205.8$ 219.3$ (13.5)$ -6%

Gross profit 59.6 58.4 1.2 2%

SEG&A expenses 33.4 33.4 - 0%

Restructuring 0.3 0.1 0.2 NM

Operating income 25.9 24.9 1.0 4%

Interest expense 0.5 0.9 (0.4) -44%

Other expense, net 0.3 0.3 - NM

Income tax expense 8.7 8.5 0.2 2%

Income from continuing operations 16.4 15.2 1.2 8%

Diluted earnings per share from

continuing operations 0.26$ 0.24$ 0.02$ 8%

Effective tax rate 34.7% 35.9%

• Q3 Cash flow from continuing operations of $41 M vs. $21 M in prior-year quarter Year-to-date operating cash flow up $24 M, or 53%

• Total debt at 9/30/15 was $47 M Down $22 M since 9/30/14 Cash on hand at 9/30/15 exceeded total debt by $19 M

• Debt to adjusted EBITDA declined to 0.4x Compared to 0.5x on 12/31/14 and 0.7x a year ago

• Used $3.8 M for dividends, $5.6 M for share repurchases Quarterly dividend of $0.06 per share paid in the third

quarter of 2015

• Aggregate authorization under share repurchase programs of $69 M

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Balance Sheet and Cash Flow *

* As of or for the period ending 9/30/2015

• Resilient municipal demand, softness in industrial businesses

• Another strong quarter for ESG, reporting a 17.5% operating margin

• Healthy performance overall at SSG, particular strength in global public safety markets

• FRG third quarter results improved as turnaround plan gains traction

• Committed to disciplined growth through internal investments and acquisitions

Target adding at least $250 M from acquisitions to our revenue run rate over the next three years

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COO Remarks

Full-Year Outlook

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2014 2015

Adjusted EPS of $0.93 EPS range of $1.00 to $1.04

Adjusted for:

• release of valuation allowance

• tax rate changes

Raised from a range of $0.95 to $1.02

Federal Signal Q3 2015 Earnings Call

November 3, 2015

Q&A

Dennis Martin, President & Chief Executive Officer Brian Cooper, SVP, Chief Financial Officer Jennifer Sherman, SVP, Chief Operating Officer