SimplexGrinnell Investor Overview Jim Spicer President Dave Baer Vice President, Marketing June 23, 2009
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
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
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
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
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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
Q&A 6