SimplexGrinnell Investor Overview
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1 SimplexGrinnell Investor Overview Jim Spicer President Dave Baer Vice President, Marketing June 23, 2009
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3 Agenda SimplexGrinnell Overview Business Model Services-led Technology Q&A 2 SimplexGrinnell At A Glance North American leader in Fire & Life Safety 200-Year heritage in fire protection Simplex: Electronic fire alarm Grinnell: Fire sprinkler/suppression 11,200 employees, 150 offices One million+ customers 3 1
4 2008 Revenue and Product Line Mix Service Revenue = ~54% ~24% is Recurring ~30% is Time and Material Suppression 8% Sprinkler 33% $2.1B $2.1B Systems Installation = ~46% ~19% is Upgrades/Retrofit ~27% is New Construction-Related Electronic 59% 4 Portfolio Offerings Intrusion Systems Automatic Sprinklers Fire Alarm Systems Special-Hazard Fire Suppression Systems CCTV Systems Kitchen Fire Suppression Systems Fire Extinguishers Emergency Lights Automatic Fire Pumps Communications Systems 5 Smoke Detectors Backflow Flow Prevention Systems Access Control 2
5 High-Profile Success Stories Trump Towers Chicago, Illinois Harvard University Boston, MA Kennedy Space Center Merritt Island, Fla. Mall of America Bloomington, MN The Pentagon Washington, D.C. 6 Product Line Strategy - Markets Electronic Gain contracting market share Increase conversion from contracting to service Sprinkler Focus on selling higher margin projects Improve project execution Improve mix between contracting and service Suppression Sell product line into fire alarm and sprinkler customer base Kitchen Hoods Contractors End Markets Institutional Schools/Universities Hospitals Defense Government buildings Airports Commercial Hotels Retailer Office buildings Shopping centers Financial institutions Industrial Oil and gas Marine/Offshore Mining 7 3
6 Distribution: Operational Model Go to market structure High-level strategy Fu ully integ grated Regional Office GCs Large national footprint Service focus Industry leadership Dual channel Regional office ESDs Regional office ESDs ECs Product focus Add-on to automation Market mover focus Focus on purchase of regional distributors Footprint not uniform Distributor focused ACS ESDs Johnson control ESDs A&Es End users Distributor focused Honeywell ACS focuses on automation but intermittently pushes fire Strict distribution focus Product and technology focus 8 Source: Client interviews; BCG research Our Total Solutions Approach Needs Analysis Planning System Layout Installation Project Management Commissioning Life-Safety Services Complete Life-Safety Solutions SimplexGrinnell is ideally suited to address the sophisticated demands of the commercial market 9 4
7 SP EAK LERS MA ANUDI O SLO W W HO OP 1 HOR20B PM N EMERGENCY OPERAT ING IN ST R UCTIONS SY ST EM SY ST EM SIG NA LS P OW ER. TR OU. BLE SIL ENC ED O N SYSTEM I S NORM FI RE PR IOR ITY 2. ARM A. LA RM S UPE RV. ISO RY... AR M A RM SUP V TBL AR M S YS TE M A CK ACK SIL EN CE RE SET FEM E JAP ANE SE SECBYP ASURI TY S CIP RCUHON EIT M EDIC CH EMI C MA TER I CH LOR INE L EAK C3-1-6OD -4 E 4100 ARM CONTROL AR MO R TRO UB LE CO NDI TIO N: - SYS TE MIN DI CAT OR FL ASH IN G, ON. TO N OW LE DG E: - PRE S "A CK "LO CA TED UN DE RF LA SH ING -I REP ND ICA EA TO PER. RAT ION U NTI LA LR EP OR TS AR E TO - SIPRE S LEN CE "A AR AR M MSILE IGN NC E". S: TO RE ST OR ES YS TEM TO N OR MA L: - PRE S "S"A YST CK "TO EM RESI SELEN CE T." TO NE DE VIC E. SP EAK ERS L M ANU A UDI O SLO W W HO OP 1 20B PM HOR N L M ANU A UDI O W SLOHO WOP 1 20B PM HOR N P U L TO O PE ND O OR EMERGENCY OPERAT ING IN ST R UCTIONS - SYS AR MOTE RMIN TRO DI UB CAT OR LE COFL NDIASH TIOIN G, N: ON. SYSTEM I S NORM TO N OW LE DG E: FI RE PR IOR ITY 2 SY ST EM SY ST EM SIG NA LS P OW ER -I PRE ND ICA S "ATO R. CK "LO CA TED UN DE RF LA SH ING REP EA TO PE RAT ION U NTI LA LR EP OR TS AR E ARM A LA RM S UPE RV ISO RY TR OU BLE SIL ENC ED O N TO SI LEN CE AR MS IGN S: - PRE S "A LAR M SILE NC E". AR M A RM SUP V TBL AR M S YS TE M TO RE ST OR ES YS TEM TO N OR MA L: A CK ACK SIL EN CE RE SET - PRE S "S YST EM RE SE T." - PRE S "A CK "TO SI LEN CE TO NE DE VIC E. FEM E ENGEV AC LIS H JAP ANE SE SEC URI TY BYP AS S PCI RCU HON EIT M EDIC CH EMI C MA TER I L CH EAK LOR INE VC OIC OD E ARM CONTROL P U L TO O PE ND O OR SYSTEM I S NORM. FI RE PR IOR ITY 2 SY ST EM SY ST EM SIG NA LS ARM A LA RM S UPE RV. ISO RY TR OU. BLE SIL ENC ED AR M A RM SUP V TBL AR M A CK ACK SIL EN CE EMERGENCY OPERATING IN STRUCTIONS AR MO R TRO UB LE CO NDI TIO N: - SYS TE MIN DI CAT OR FL ASH IN G, ON. TO N OW LE DG E: - PRE S "A CK "LO CA TED UN DE RF LA SH ING.... P OW. ER -I REP ND EAICA TO PE R. RAT ION U NTI LA LR EP OR TS AR E FEM E JAPE AN SE SEC URI TY BYP AS S O N S YS TE M RE SET P HON E CI RCU IT M EDIC CH EMI C MA TER I CH LOR INE L EAK C OD E ARM CONTROL TO SI LEN CE AR MS IGN S: - PRE S "A LAR M SILE NC E". TO - PRE ST "SOR YST ES EM YS TEM RE TO SE NT." OR MA L: - PRE S "A CK "TO SI LEN CE TO NE DE VIC E. SP EAK ERS L M ANU A UDI O SLO W W HO OP 1 20B PM HOR N EMERGENCY OPERATING IN STRUCTIONS AR MO R TRO UB LE CO NDI TIO N: SYSTEM I S NORM - SYS TE MIN DI CAT OR FL ASH IN G, ON. TO N OW LE DG E: - PRE S "A CK "LO CA TED UN DE RF LA SH ING. SY. ST EM SY ST. EM. SIG NA LS P. OW ER I- NDREP ICA EA TO R. PE RAT ION U NTI LA LR EP OR TS AR E S UPE RV ISO RY TR OU BLE SIL ENC ED O N TO SI LEN CE AR MS IGN S: - PRE S "A LAR M SILE NC E". S YS TE M RE SET -TO PRE ST "SOR ES YST YSEM RETEM SETO T." N OR MA L: - PRE S "A CK "TO SI LEN CE TO NE DE VIC E.. FI RE PR IOR ITY 2 ARM A LA RM AR M A RM A CK SUP V 4100 ARM CONTROL TBL ACK AR M SIL EN CE FEM E JAPE AN SE SEC URI TY BYP AS S P HON E CI RCU IT M EDIC CH EMI C MA TER I CH LOR INE L EAK C OD E INTERFACE A L SPE AKE RS WEA THE R WAR NIN G A L CL EAR 6T HF L SPE AKE RS SPE AKE RS MAU NUA DIO L OVE RI DE PH ONE PA GING LO C H OR N C HIM E S LO W W HO P GSA T ON E H 12 0B OR PM N ST UT ER H I-LO W AIL PULLTO OPEN DOOR P UL LT O P EN DO O R SY STEM IS NORM 12: 35:15am MON 12 JUN 95 FIR E P RIO RI TY 2 SYS TE M S YS TE M S IGN S. AR M SU PER. VIS OR TY. RO UBL E A RM A LAR M S UPV TB L A LA RM AC K ACK A CK S ILE NCE EMERGENCYOPERATI NG IN STRUCTIONS PO WE R A LA RM... SI. LEN CE D. ON SY ST EM R ESE T A LA RM A CKN OWL EDG E F EMA LE EVA C B RIT ISH EVA C FR EN CH / E NGL ISH SP AN ISH/ EN GLI SH JA PAN ES E BSE YPACU SRITY WA TCH TOU R N IGH T SEN SIT IVIT Y C PHOIRC NE UIT M ED ICA L EM ER GEN CY IN DUS TRI FIR E C HEM ICA L EM ERG EN CY HA ZAR DO US M ATE RIA L C HLO RIN E LEA K CO DE ARM CONTROL A LAR M OR TR OU BLE CO ND ITI ON: - SY STE M IND ICA TO RF LAS HIN G, TO NE ON. T OA CK NO WL EDG E: - PR ES S"A CK "L OC ATE DU ND ER FL ASH ING - INDRE PEIC ATO R. PE RA TIO NU NT ILA L RE POR TS AR E N OW LED GE D. T- PROS ILES NCS"A EA LAR RM SILM SIGEN CE" NA LS:. T OR ES TO RE SYS TE MT ON OR MA L: - PR ES S"SS"A YSCK TE"T MROS ILES ET." NC ET ON ED EVI CE. SP EAK LERS A M ANU UDI O SLO W W HO OP 1 20BHOR PM N EMERGENCY OPERATING IN STRUCTIONS SY ST EM SIG NA LS P OW ER. TR. OU BLE SIL ENC ED O N S YS TE M RE SET SYSTEM I S NORM FI RE PR IOR ITY 2 SY ST EM. ARM A LA. RM S UPE. RV ISO RY... AR M A RM SUP V TBL AR M A CK ACK SIL EN CE FEM E JAP ANE SE BYP SEC ASURI STY CIP RCU HON EIT M EDIC CH EMI C MA TER I CH LOR INE L EAK C3-1-6OD -4 E 4100 ARM CONTROL AR MO R TRO UB LE CO NDI TIO N: - SYS TE MIN DI CAT OR FL ASH IN G, ON. TO N OW LE DG E: - PRE S "A CK "LO CA TED UN DE RF LA SH ING -I REP ND ICA EA TO PER. RAT ION U NTI LA LR EP OR TS AR E -TO PRE SI S LEN "ACE LAR MAR MSILE NCIGN E". S: TO RE ST OR ES YS TEM TO N OR MA L: - PRE S "A"S CK YST "TO EM SIRE LEN SE CE T." TO NE DE VIC E. ** SYSTEM IS NORM ** 12:02:15pm Mon 9-Feb-98 ARM SUPERVISORY SYSTEM SYSTEM TROUBLE ARM SILENCED POWER AC ARM SUPV TROUBLE ARM SYSTEM ACK ACK ACK SILENCE RESET ARM CONTROL CAUTION DISCONNECT POWER BEFORE SERVICING Technology Migration Towards Predictive Diagnostics and Data Analytics Detect Process/Analyze Notify Current Fire, heat, CO and combination spot sensors Aspiration and first generation video Nuisance alarms still an issue Proprietary, dedicated fire network Event driven Reactive Basic monitoring via phone line Fire evacuation Minimal informational content Single purpose Disruptive when serviced Next Generation n Multi-technology fire sensors Expanded use of video sensors Life-Safety sensor platform Hazardous gases Security Fire extinguisher monitoring Other Data analytics via internet Predictive and proactive Integration with building automation and emergency communications Multi-function fire, mass notification, weather Voice and visual message for high informational content Personal notification Non-disruptive servicing 10 Remote Services Roadmap Operational Benefits Intelligent Dispatch Customer Benefits Service Vans Tracked by GPS Nat l Service Center Expert Service Techs Remote Services Servers Metadata Analysis etc; Improved Response from Fire-fighters and Emergency Services Building Owner Access to Alarm and Maintenance Data Via Customer Portal RS Agent Remote Diagnostics Predictive Service Internet Panel status and services data to portable devices Improved First- Time Fix Rate Enhanced Reporting Improved Responsiveness Customer Satisfaction & Loyalty 11 5
8 Q&A 6
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