#1P FEDERAL SIGNAL Moves. Cleans. Protects. M HAA ME Disciplined Growth Investor Presentation August 2023#2Safe Harbor Statement This presentation contains unaudited financial information and forward-looking statements. Statements that are not historical are forward-looking statements and may contain words such as "may", "will","believe", "expect", "anticipate", "intend", "plan", "project", "estimate", and "objective" 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. Such risks and uncertainties include, but are not limited to: direct and indirect impacts of the coronavirus pandemic and the associated government response, risks and adverse economic effects associated with emerging geopolitical conflicts, product and price competition, supply chain disruptions, work stoppages, availability and pricing of raw materials, cybersecurity risks, risks associated with acquisitions such as integration of operations and achieving anticipated revenue and cost benefits, 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 ("SEC"). Such forward-looking statements are made as of the date hereof and we undertake no obligation to update these forward-looking statements regardless of new developments or otherwise. This presentation also contains certain measures that are not in accordance with U.S. generally accepted accounting principles ("GAAP"). The non-GAAP financial information presented herein should be considered supplemental to, and not a substitute for, or superior to, financial measures calculated in accordance with GAAP. The Company has provided this supplemental information to investors, analysts, and other interested parties to enable them to perform additional analyses of operating results, to illustrate the results of operations giving effect to the non-GAAP adjustments shown in the reconciliations, and to provide an additional measure of performance which management considers in operating the business. A reconciliation of these items to the most comparable GAAP measures is provided in our filings with the SEC and/or in the Appendix to this presentation. a D D- HYDR ovravatar www.HIVI VACTOR 2#3● ● Federal Signal at a Glance Founded in 1901, joined NYSE in 1969 ("FSS") Diversified industrial manufacturer of specialized vehicles for maintenance and infrastructure markets such as street sweepers, sewer cleaners, vacuum/hydro-excavators ("safe-digging trucks”), industrial vacuum loaders, waterblasting equipment, road-marking and line-removal equipment, dump truck bodies, trailers, metal extraction support equipment and off-road, multi- purpose tractors; as well as safety and security products including audible and visual warning devices Leading brands of premium, value-adding products and systems, with supporting aftermarket business Headquartered in Oak Brook, Illinois with 23 principal manufacturing facilities worldwide Strong operating cash flow generation has facilitated organic growth investment, cash returns to stockholders and M&A in recent years a CENT LINOIS NIAL B ALLING STATE HISTORICAL SOCIETY Meeting the Challenge of Time FASTEST GROWING COMPANIES 20201 100 FORTUNE STRONG CASH FLOW NYSE SYMBOL FSS CRAIN'S CHICAGO BUSINESS 2020 NOTABLE WOMEN IN MANUFACTURING WORLD SWEEPING ASSOCIATION 2020 Award of Excellence in Power Sweeping ELGIN CRAIN'S UNI LARGEST PUBLICLY TRADED COMPANIES 2019 $1.57 B MARKET capitalization REVENUE TTM 6/30/23 ~$3.7 B CHICAGOINNOVATIONAWARDS 2016 WINNER Recognizing Chicago's most innovative new products and services MAYMIZES WE DISTRIBUTION NASCAR GREEN OFFICIAL SWEEPER 2000: Écolnfused Technology™ 3#4Why Federal Signal? Composition of Businesses End Market Exposures Revenue Streams Financial Position Opportunity for M&A Operational Performance New Product Development ("NPD") ● ● ● ● Clearly-defined strategy, with two groups - ESG and SSG - each of which have strong growth potential through a combination of organic initiatives and M&A Typical annual revenue mix of ~50% publicly-funded / ~50% industrial Publicly-funded revenues derived from sale of essential products to municipalities in the U.S., Canada, Europe and Latin America; sewer cleaner purchases typically funded through water taxes Within industrial, markets at different points in the cycle such as construction, utility, oil and gas, infrastructure, waste, rendering, landscaping, military Balanced portfolio of new and used equipment sales and other aftermarket offerings including parts, rentals and service; Aftermarket revenues represented ~28% of ESG's sales in Q2 2023 Increased borrowing capacity by executing new, 5-year $800 M credit facility in October 2022 Low debt leverage; strong balance sheet and healthy cash flow generation Completed acquisitions of TowHaul (Q4 2022), Blasters (Q1 2023) and Trackless (Q2 2023) Ample opportunity for further M&A due to strong financial position, active pipeline and clear view of what we are looking for in acquisition candidates Consistent performance within target EBITDA margin ranges Focus on operational excellence, with Eighty-Twenty Improvement (“ETI") initiatives the cornerstone of our operational philosophies Customer-focused NPD process with emphasis on electrification initiatives; several recent EV product launches 4#5Delivering on our Strategy Strategic acquisitions, primarily focused on developing a Specialty Vehicle platform, and organic growth have contributed meaningfully to Federal Signal's growth since 2016 F 2016 (US$ in millions) $708 2016 WESTECH ravis 2017 FEDERAL SIGNAL $899 2017 Rugby CRYSTEEL DURACLASS OF BODIES "As Strong As An 9x" 2018 $1,090 2018 Net Sales CAGR (2016-22) Total: ~13% Organic: ~6% $1,221 2019 TENT COMPANY, IN 2019 HighMark 2020 $1,131 2020 PUBLIC WORKS EQUIPMENT Subway Feat Signal Copa NIS 2021 wtb $1,213 GROUND FORCE SWITCH N GO 2021 WHEDWIDE ACRED START KAT BUHOONY BAWANY Bucks 2022 TowHaul by SMITH $1,435 2022 Trackless VEHICLES 2023 BI BLASTERS 5#6Segment Markets Products Two Attractive Platforms Ps Environmental Solutions Group (ESG) Serves publicly-funded, industrial, and utility markets for surface and sub-surface cleaning, safe-digging, road-marking, infrastructure maintenance and material hauling Street Sweeping Sewer Cleaning Safe Digging ● ● Industrial Cleaning Dump Bodies and Trailers Metal Extraction Support Road-Marking and Line-Removal Multi-Purpose Tractors VACTOR TRUVAC WESTECH Solutions FsDepot Travis MRL MRL TMENT COMPANY, INC. ANKAS, vacc *TTM Q2 2023 net sales Solutions ТОННШ. $1.3 B* J-CRAFT HighMark DURACLASS SALOM Rugby CRYSTEEL GROUND FORCE ELGIN GUZZLER WORLDWIDE WORLD'S FINEST MINE SUPPORT EQUIPMENT Jetstream Subsidiary of Federal Signal Corporation OX BODIES VEHICLES FEDERAL SIGNAL Safety and Security Systems Public Safety Systems FEDERAL SIGNAL Safety and Security Systems Heavy Duty $264 M* FEDERAL SIGNAL Safety and Security Systems Signaling BI Bucks SWITCH NGO BLASTERS with FEDERAL SIGNAL Safety and Security Systems Systems NE FEDERAL SIGNAL VAMA Safety and Security Systems Victor 112 FELL Safety and Security Systems Group (SSG) Serves the needs of municipalities and industrial verticals for audible and visual safety and security notification devices and systems Lights and Sirens Signaling Devices Warning Systems utdoor Warning 6#7Environmental Solutions Group (ESG) Have established a platform serving maintenance and infrastructure markets to provide customers with a comprehensive suite of products and services Application Brands Products End Markets and Addressable Market** Street sweeping ELGIN Safe Sewer cleaning digging Publicly- Publicly- funded funded* Dealer Dealer P VACTOR * Typically funded through water taxes **Management estimates TRUVAC WESTECH Industrial Utility Oil & Gas Dealer/Direct Depot Solutions Provide parts / service / refurbishment / rental offering through the network of 20+ locations in US and Canada Rental/Aftermarket Industrial cleaning Jetstream ELGIN GUZZLER VACTOR Industrial Direct Road Marking US Dealer Network MRL HighMark... MENT COMPANY, INC. BI BLASTERS, INC. Transportation, Infrastructure, Publicly-funded Direct ~$4.5 B Routes to Market Dealer Network Materials Hauling Metal Extraction Support GROUND FORCE WORLDWIDE ALD'S FINEST MINE SUPPORT EQUIPMENT T ravis BODY & TRAILER, INC. Largest Canadian distributor of maintenance equipment to municipalities J.CRA Rugby DURACLASS OH BODIES NE "As Strong As An Ox" © CRYSTEEL wtb Bucks SWITCH N GO Construction, Industrial, Landscaping, Publicly- funded Dealer / Direct Distribution US Distribution Network TowHaul Industrial Direct Multi- Purpose Tractors Trackless EHICLES For ESG products and other OEM's products such as snow-removal equipment and garbage trucks Publicly- funded Dealer 7#8Safety and Security Systems Group (SSG) Serves the needs of government and industrial verticals for audible and visual safety and security notification devices Public Safety and Security Signaling Lights and siren products for Police, Fire and Heavy Duty (HD) end markets Audible and visual signaling devices Application Brands Products End Markets and Channels Addressable Market * P fr FEDERAL SIGNAL Safety and Security Systems Public Safety Systems FEDERAL SIGNAL Safety and Security Systems Heavy Duty penderado AWS FEDERAL SIGNAL VAMA Publicly-funded Industrial Distributor $1.0 B a tayyor KING FEDERAL SIGNAL Safety and Security Systems Signaling Management estimates Victor Industrial Oil & Gas Commercial Heavy Industry Manufacturing Indirect $600 M 40 Systems Warning Systems Public Address General Alarming (PAGA) FEDERAL SIGNAL Safety and Security Systems Systems Publicly-funded Oil & Gas Commercial Direct $1.0 B 8#9Macro Factors Driving Demand American Rescue Plan Act $350 billion of government spending designated for cities, states, tribal governments and U.S. territories First $175 billion tranche distributed in 2021; second $175 billion tranche distributed in 2022. Funds to be obligated by end of 2024 and expended by end of 2026 As a provider of equipment used to support essential services such as sewer cleaning and street sweeping, Federal Signal is well-positioned to meet the needs of its customers ● Infrastructure Investment and Jobs Act $550 billion of government spending over five years to fund improvements to the nation's transportation, water, electric power and digital infrastructure Federal Signal's sales and rentals of equipment used for materials hauling, road-marking and line-removal, street sweeping, sewer cleaning, safe-digging, and industrial cleaning expected to benefit from infrastructure investment ● ● $6.8 billion of government spending designated for the Federal Emergency Management Agency (FEMA) to invest in disaster mitigation programs, including warning systems Fr Outdoor Warning Infrastructure Spending Allocation Plan $550 billion TRANSPORTATION $283.5 billion $239 billion OTHER Roads, bridges, major projects Passenger and freight rail $110 Airports $66 Public transit $39.2 $25 Ports and waterways $17.3 Safety and research $11 Infrastructure for $15 electric, zero-emission and low-emission vehicles INFRASTRUCTURE Power $73 infrastructure, including grid authority $65 $55 $27.5 Broadband infrastructure Sources: The White House, POLITICO report by Marianne LeVine and Burgess Everett Water Resiliency. $46 cybersecurity, ecosystem restoration infrastructure Other programs 9#10Macro Factors Driving Demand Broadband Infrastructure COVID-19 highlighted the importance of reliable, affordable and fast internet connectivity for all The $65 billion spending allocation in the Infrastructure Bill begins to address the need for substantial investment in this critical necessity ● ● Expected to benefit sales and rentals of safe-digging trucks, industrial vacuum loaders, dump truck bodies, trailers, and street sweeping equipment Electrification Investments Showcased newest EV product offerings at recent trade shows Growing demand for lithium-ion batteries expected to benefit metal extraction industry ● ● Products expected to benefit include electric product offerings and metal extraction support equipment EN ZERO EMISSION Fr 100% ELECTRIC Broom Bear EIGIN Fully-electric street sweeper E PLUG-IN HYBRID RACIN PLUG-IN HYBRID 101 Plug-in hybrid electric Broom Bear® street sweeper L Switch-N-Go® system on electric chassis Global demand for lithium-ion batteries will be over 3,100 GWh in 2030 Market demand for LiB by application [in GWh] 213 2019 363 2021 717 2023 1,327 RVDRY 2025 Sources: Avicenne, Fraunhofer, IHS Markit, Interviews with market participants, Roland Berger 2,208 2028 Global announced capacity: approx 4.2 TWh 3,127 82 175 570 2300 2030 Consumer Electronics & Others Energy Storage Systems Commercial Vehicles Passenger Transportation CAGR 2019-2030 5.5% 32.7% 30.3% 29.9% 10#11Key Strategic Initiatives Areas of Focus a Safe Digging Flexible Manufacturing & "ETI" Culture Aftermarket Parts and Services Solutions FOR New Product Development Specialty Vehicles for Diverse End-Markets Supported By TAADION Technology as an Enabler Audible and Visual Warning Devices HP2 Disciplined M&A 11#12Strategic Initiative - Safe Digging Federal Signal is well positioned to establish a leading position in an emerging application for vacuum-excavation technology; increased regulation expected to accelerate growth ● What is it? Vacuum excavation or "Safe Digging" involves the use of pressurized air or water ("hydro-excavation") to dig (coupled with a vacuum system) as an alternative to the use of traditional equipment such as backhoes and mechanical excavators Acceptance of safe-digging applications continues to improve significantly over the last decade a Application has been widely accepted in Canada; US is behind but great early indicators - 19 states now include vacuum excavation as part of "safe excavation practices" www.verifylocates.com Park-№ Dig VACTOR PARADIGM VACUUM EXCAVATORS ● ● Why is it Attractive? In many circumstances, vacuum excavation is a safer and more productive means for digging (in comparison to traditional excavation) Significantly minimizes chances of damage to underground infrastructure during the digging process Less intrusive to the surrounding site at point of digging; environmental benefits Provides significant environmental benefits by minimizing damage to tree roots (as demonstrated in the image below) Provides opportunity for the use of our broad range of offerings in new and emerging end markets beyond oil and gas VACTOR PARADIGM ** n FAH ● ● ● ● ● ● Why Federal Signal? Sole manufacturer of complete range of truck-mounted safe-digging equipment, with applications across a number of end-markets Optional safe-digging package offered with sewer cleaner product line; included in ~75% sewer cleaner orders 30-year track record of manufacturing leading vacuum- excavation products Widest service and support network for vacuum- excavation products Best-in-class payload for Ontario market Dedicated and experienced sales organization in place to support initiative 2022 orders for safe-digging trucks up 41% YoY 12#13$ in millions Financial Overview $ in millions 708 217 491 2016 674 200 474 2016 899 206 693 2017 1,018 212 806 2017 1,090 226 864 2018 1,173 227 946 2018 Net Sales 1,221 228 993 2019 ESG 1,269 231 1,038 2019 1,131 Orders ESG 215 916 2020 ■SSG 1,047 207 840 2020 SSG 1,213 209 1,004 2021 1,539 242 1,297 2021 1,435 244 1,191 2022 1,692 248 1,566 2022 264 1,302 TTM 6/30/23 1,781 272 1,444 1,509 TTM 6/30/23 1. Adjusted EBITDA Margin% 2. 12.0% 2016 Adjusted EBITDA Margin* (Consolidated) ● 12.4% 2017 14.6% 2018 15.7% 2019 16.1% 2020 14.9% 2021 Target EBITDA Margin ranges¹ ESG: 15% - 18% 15.0% 2 SSG: 17% -21% (new) ² 2022 Consolidated: 12% -16% Historical EBITDA margins and targets place Federal Signal in the top tier of its peer group of specialty vehicle manufacturers 15.6% TTM 6/30/23 Q2 2023 Highlights³: Record net sales of $442M, up $76M, or 21%, with organic growth of $54M, or 15% ● ● ● ● 3. 4. Operating income of $59.4M, up $13.2M, or 29% Adjusted EBITDA* of $75.5M, up $17.3M, or 30% Adjusted EBITDA margin* of 17.1%, up from 15.9% GAAP EPS of $0.66, up $0.11, or 20% Record adjusted EPS* of $0.67, up $0.14, or 26% Record orders of $480M, up $67M, or 16% Underlying assumptions: Absence of extraordinary factors affecting demand from end-markets; No unusual hearing loss litigation expenses Increased SSG target margin range in March 2023 from the previous range of 15% to 18% *Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EPS are non-GAAP measures. See Appendix for additional information, including reconciliation to GAAP measures. Record backlog of $1.01B, up $212M, or 27% Cash and cash equivalents of $49M and ~$381M of availability under credit facility Net debt of ~$360M4 Comparisons to Q2 2022, unless otherwise noted Net debt is a non-GAAP measure, computed as total debt of $409.2M, less total cash and cash equivalents of $48.8M 13#14Strong Financial Position Supports Priority-Driven Long-Term Capital Allocation In October 2022, executed 5-year, $800 M revolving credit facility, with flexibility to increase further for acquisitions; At the end of Q2 2023, net debt leverage remained low, with ~$381 M of availability under credit facility Reinvest in the Business Acquisitions Dividend Policy Share Repurchases ● ● ● ● ● ● ● ● ● ● ● Purchased Elgin, IL manufacturing facility in Q4 2021 (~$20 M) and University Park, IL manufacturing facility in Q1 2022 (~$28 M) Other cap ex of ~$25 M in 2022, including investments in machinery and equipment to support automating and insourcing opportunities; expect cap ex of $27 M - $30 M in 2023 Innovation R&D efforts target new and updated products Completed acquisition of TowHaul Corporation in October 2022 for initial payment of ~$43 M Completed acquisition of Blasters, Inc. in January 2023 for initial payment of ~$13 M Completed acquisition of Trackless in April 2023 for initial purchase price of ~$43 M Focused primarily on acquisitions that fit closely within our existing products and services, manufacturing competencies, channels and customers Provide a competitive dividend yield while funding business growth Paid increased dividend of $0.10 per share in Q2 2023, up from $0.09 in Q1 2023; recently declared similar dividend for Q3 2023 Paid dividends of $6.1 M in Q2 2023 ($21.8 M in full-year 2022) Opportunistic share buybacks as a return of cash to our shareholders Share repurchases of $16.1M in 2022; ~$59 M of repurchase authorization remaining under current programs (~2% of market cap) Cash Deployment (2020-22)¹ Dividends 15% Share Repurchases 11% Acquisitions 45% Capex 29% 2 1) Chart depicts cumulative use of cash for each category, relative to the total cash used on all four activities, for the period 2020-2022; excludes investment in rental fleet, which is reported as part of operating cash flows 2) Includes purchase of 2 manufacturing facilities for ~$48 M (combined) 14#15Raising 2023 Outlook Raising Full-Year Adjusted EPS* Outlook to a new range of $2.30 to $2.46, from the previous range of $2.21 to $2.43 Would represent highest EPS in Company's history and YoY growth of 17%-26%, despite aggregate headwind of ~$0.22 from higher interest expense and increase in effective tax rate Key Assumptions Also raising low end of full-year net sales outlook by $30 M, establishing new range of $1.65 B to $1.72 B ▪ Represents YoY growth of 15% - 20% vs. $1.43 B in 2022 ▪ Double-digit improvement in pre-tax earnings ▪ Depreciation and amortization expense of ~$61 M- $63 M ▪ Capital expenditures of $27 M to $30 M ▪ Interest expense of ~$21-22 M; YOY EPS headwind of ~$0.14 F ▪ Effective tax rate of ~24%, excluding additional discrete items; YOY EPS headwind of ~$0.08 ■ ~61-62 M weighted average shares outstanding ▪ No significant deterioration in current supply chain environment; assumes continued supply chain improvement in 2H 2023, with steady flow of customer-provided chassis ▪ No significant increase in current input costs *Adjusted earnings per share ("EPS") is a non-GAAP measure, which includes certain adjustments to reported GAAP net income and diluted EPS. In the three and six months ended June 30, 2023, we made adjustments to exclude the impact of acquisition and integration-related expenses (benefits) and environmental remediation costs of a discontinued operation. In prior years, we have also made adjustments to exclude the impact of debt settlement charges and certain other unusual or non-recurring items. Should any similar items occur in the remainder of 2023, we would expect to exclude them from the determination of adjusted EPS. However, because of the underlying uncertainty in quantifying amounts which may not yet be known, a reconciliation of our Adjusted EPS outlook to the most applicable GAAP measure is excluded based on the unreasonable efforts exception in Item 10(e)(1)(i)(B). FEDERAL SIGNAL 15#16Positioned for Long-Term Growth With continued focus on organic growth and M&A, and margin performance above that of many of our peers, our financial framework aims to create long-term shareholder value Cumulative Returns to Stockholders a FEDERAL SIGNAL + 144% RUSSELL 2000 + 22% S&P MIDCAP 400 +38% S&P INDUSTRIALS +43% S&P 600 CAPITAL GOODS + 54% $ 300 $ 250 $ 200 $ 150 $ 100 $ 50 2017 2018 2019 2020 2021 This graph assumes that the value of the investment in the Company's common stock, and in each index, was $100 on December 31, 2017 and assumes reinvestment of all dividends through December 31, 2022. 2022 Long-Term Organic Revenue Growth (Couple of % points > GDP) High Single Digit Revenue Growth EBITDA Margin Targets: Value-Added Acquisitions Cash Conversion: ~100% of net income ESG: 15-18% SSG: 17-21% (new) Consolidated: 12-16% ROIC > Cost of Capital 16#17Appendix I. Segments Overview II. Environmental, Social and Governance Initiatives III. Eighty-Twenty Improvement Culture IV. New Product Development V. Non-GAAP Measures VI. Executive Compensation VII. Investor Information Fr 17#18Appendix I: ESG Products ם -000 Refurbies WESTECH Service Solutions Used Equipme ALE ALLGE 0 2100 EVEN HYDRY Tan Chen 40 ENT ELGIN GUZZLER VACTOR Subudiary of Federal SignalCoronatio Stordaryodaisonaleporator TRUVAC by daster MI Jetstream. Sutistury of Federal Signal Corporation WESTECH 4 TowNail Solutions FsDepot GROUND FORCE WORLDWIDE WORLD'S FINEST MINE SUPPORT EQUIPMENT BI pour BLASTERS 18#19Appendix I: ESG Products (continued) a 001 10000 MRL 10+! CRYSTEEL® DURACLASS Schurches de Carpath J-CRAFT OX BODIES Rugby Travis BODY & TRAILER. INC. MAL MRL EQUIPMENT COMPANY, INC. santiereiðulen strakkontabi & wtb NI SWITCH N GO Bucks Trackless 19#20Appendix I: ESG - Market Influencers & Where We Play Market Dynamics Many ESG products support essential services that are focused on cleaning ■ ■ u COVID relief stimulus includes $350 B for state, local and territorial governments; package targets maintenance of essential infrastructure, such as sewer systems and streets Anticipate that meaningful investment in U.S. infrastructure would provide upside potential with most of our product offerings expected to benefit Aging infrastructure, pipeline and broadband expansion and increasing urbanization support long-term demand for safe digging products, industrial vacuum loaders, dump bodies and trailers Improving industrial activity supports growth opportunities for dump bodies and trailers Funding for sewer cleaners through water tax revenues adds further stability Tracking new housing starts, Class 8 truck chassis, public funding sources, oil rig counts, and overall industrial activity Growing demand for lithium-ion batteries expected to benefit metal extraction industry 2022 Sales by Geography 84% Source: Management Estimates ■ U.S. 2022 End Markets by Users 16% Non-U.S. Publicly-funded Industrial Utility Oil and Gas 20#21Appendix I: SSG Products 112 112 8783 CNN Ered 112 He is the be Thay Thay May A Policia Municipal www BUD www MERIL POLICE P PJ FEDERAL SIGNAL Safety and Security Systems Public Safety Systems FEDERAL SIGNAL Safety and Security Systems Heavy Duty FEDERAL SIGNAL Safety and Security Systems Signaling FEDERAL SIGNAL Safety and Security Systems Systems FEDERAL SIGNAL VAMA Safety and Security Systems Victor 21#22Appendix I: SSG - Market Influencers & Where We Play ■ a Market Dynamics Increased national focus on issues of public safety and law enforcement, and rising public expectations for transparency and accountability driving demand for safety and security products Rising occurrence of natural and man-made disasters Incremental FEMA funding to support disaster mitigation Shift in customer preference towards inter-connected. platforms expected to drive demand for security systems integration Tracking data that indicates the number of new vehicle registrations 2022 Sales by Geography 63% 2022 End Markets by Users Source: Management Estimates 37% U.S. Non-U.S. Publicly-funded Industrial Utility Oil and Gas Other 22#23Appendix II: Environmental, Social and Governance Initiatives We know that as a global manufacturer of critical infrastructure products, we have the responsibility to do the right thing-operate sustainably Social Environmental Products Continue to search for ways to integrate electrification into our suite of products, with a focus on improved air quality and a reduced carbon footprint ● ● ● . Fully electric sweeper introduced in Q1 2023 at Con Expo trade show ● Fully electric Switch-N-Go product introduced in Q1 2023 at NTEA work truck show • Resource Consumption ● Ongoing energy consumption assessments and adopting energy efficient measures to reduce CO2 emissions and energy intensity During 2022, our electricity and water consumption intensity were both more than 10% lower than our 2018 baseline, achieving our stated goal early • Launched environmental education and awareness programs to implement best practices Enhanced measuring and reporting practices and energy consumption audits FEDERAL SIGNAL ● ● Diversity, Equity, & Inclusion (DEI) Ongoing DEI training at executive and employee level ● • Workforce data analysis and various programs promoting diverse cultures and viewpoints found at Federal Signal • 60% of current executive officers are gender diverse Community Engagement • Active participation with local charities, promoting and participating in educational and wellness programs Volunteering in local communities ● • Federal Signal and our employees are committed to giving back and improving our surrounding areas at a national and local level Give Where You Live FEDERAL AL Connecting Employees to Their Communities Make A Wish AMERICAN RED CROSS BLOOD DRIVE St. Jude Children's Research Hospital Corporate Governance Board Composition 29% of directors are gender diverse • 43% of directors are considered diverse Lead independent director ● Susan G. komen. ● • ESG Governance Published 2023 Sustainability Report in Q2 • Completed annual Materiality Assessment ● • Held Environmental Compliance Oversight Committee review ● United Way THE JUNE 2023 SUSTAINABILITY REPORT P CAME FEDERAL SIGNAL Moves Cleurs. Protects. 23#24Appendix III: Eighty-Twenty Improvement (“ETI”) Culture U Material Cost Reduction Waste reduction SKU rationalization • Savings through volume aggregation • Sourcing optimization ● ● Pricing Strategy ● Parts pricing strategy OPTIMIZE 80/20 SEGMENT ETI Eighty-Twenty • Effective "options" pricing ● SIMPL Manufacturing Efficiency Lean manufacturing focus Throughput flexibility • Labor pool management • Flexible manufacturing model Recent investments in machinery expected to result in productivity improvements ● ● CZE Working Capital Optimization • Derived benefits from manufacturing efficiencies and SKU rationalization Improved cycle times to drive inventory reductions Improvement 24#25● Appendix IV: New Product Development Several successful new product launches resulting from our customer-focused approach to innovation, including the award-winning launch of the ParaDIGm® vacuum excavator in 2016 Targeting long-term organic revenue growth of a couple percentage points above GDP Continued investment in electrification projects: F a ● ● Introduced a full size, all-electric sweeper and showcased a fully electric Rugby Vari-Class platform dump body at 2023 Con Expo Introduced new Switch-N-Go system on a Class 4 electric chassis at 2023 NTEA work truck show Experiencing high demand from dealers for demonstrations of our plug in, hybrid electric street sweeper products, specifically the Broom Bear and the three-wheel Pelican Environmental Solutions Group (ESG) Sewer Cleaner productivity improvements such as advanced controls and a new, revolutionary boom design All-New Vactor iMPACT compact sewer cleaner All-New RegenX® regenerative air sweeper, and new single-engine versions of legacy sweepers All-New Non-CDL Broom Badger Ⓡ maneuverable compact mechanical four-wheel sweeper All-New HXX® Vacuum Excavator with improved payload carrying capacity Jetstream portfolio of tools and accessories GroundForce 200 ton-capacity, belly dump coal trailer All-New TRUVAC Coyote and APXX Vacuum Excavators All-New TRUVAC® TRXX safe-digging trailer Street sweeper-based road condition assessment service offering Won World Sweeping Association's 2020 Award of Excellence in Power Sweeping THE WAY CHICAGO INNOVATION www Switch-N-Go system on electric chassis Global Series Signaling Devices Allegiant Police Light Bar Pathfinder® Siren Suite Reliant Light Bar Safety and Security Systems Group (SSG) Automatic License Plate Recognition (ALPR) Systems CommanderOne Direct Messaging (SMS/Phone) Smart Police Vehicle Systems Next-Generation PAGA CommanderOne™ ZERO ELECTRIC LESSON Broam Bear DALINDGR Full Size, All-Electric Street Sweeper 25#26Appendix V: Non-GAAP Measures (Adjusted EPS) ($ in millions, except per share data) Net income, as reported Add: Income tax expense Income before income taxes Add: Acquisition and integration-related expenses (benefits) Environmental remediation costs of a discontinued operation (1) Adjusted income before income taxes Adjusted income tax expense (2) Adjusted net income Diluted EPS, as reported Adjusted diluted EPS $ $ a $ $ Three Months Ended June 30, 2023 2022 40.3 $ 12.4 52.7 0.6 0.8 54.1 (12.7) 41.4 $ 0.66 $ 0.67 $ 33.5 11.1 44.6 (1.7) 42.9 (10.7) 32.2 0.55 0.53 (1) Environmental remediation costs of a discontinued operation in the three months ended June 30, 2023 relate to estimated environmental clean up costs at a facility associated with a business that was discontinued in 2009. Such charges are included as a component of Other expense (income), net on the Condensed Consolidated Statements of Operations. (2) Adjusted income tax expense for the three months ended June 30, 2023 and 2022 was recomputed after excluding the impact of acquisition and integration-related expenses (benefits) and environmental remediation costs of a discontinued operation, where applicable. Adjusted net income and earnings per share (“EPS”) The Company believes that modifying its 2023 and 2022 net income and diluted EPS provides additional measures which are representative of the Company's underlying performance and improves the comparability of results between reporting periods. During the three months ended June 30, 2023 and 2022, adjustments were made to reported GAAP net income and diluted EPS to exclude the impact of acquisition and integration- related expenses (benefits) and environmental remediation costs of a discontinued operation, where applicable. 26#27Appendix V: Non-GAAP Measures (Adjusted EBITDA) $ millions, except % Net income Add: Interest expense Acquisition and integration-related expenses (benefits) Other expense (income), net Income tax expense Depreciation and amortization Consolidated adjusted EBITDA Net Sales Consolidated adjusted EBITDA margin a $ $ $ Q2 2023 40.3 $ 5.6 0.6 1.1 12.4 15.5 75.5 $ 442.4 $ 17.1% Q2 2022 33.5 1.9 (1.7) (0.3) 11.1 13.7 58.2 366.7 15.9% Adjusted EBITDA and adjusted EBITDA margin The Company uses adjusted EBITDA and the ratio of adjusted EBITDA to net sales ("adjusted EBITDA margin"), as additional measures which are representative of its underlying performance and to improve the comparability of results across reporting periods. We believe that investors use versions of these metrics in a similar manner. For these reasons, the Company believes that adjusted EBITDA and adjusted EBITDA margin are meaningful metrics to investors in evaluating the Company's underlying financial performance. Other companies may use different methods to calculate adjusted EBITDA and adjusted EBITDA margin. 27#28Appendix V: Non-GAAP Measures (Adjusted EBITDA cont.) ($ in millions) Net income Add (less): Interest expense Pension settlement charges Hearing loss settlement charges Acquisition and integration-related expenses (benefits) Coronavirus-related expenses Restructuring Executive severance costs Debt settlement charges Purchase accounting effects (a) Other (income) expense, net Income tax expense Depreciation and amortization Deferred gain recognition (b) Adjusted EBITDA Net Sales Adjusted EBITDA Margin n $ $ 2016 39.4 $ 1.9 1.4 1.7 2017 60.5 7.3 6.1 1.5 2.7 0.6 0.7 1 3.6 1.8 17.4 19.1 30.0 (1.9) (2.0) 84.7 $ 111.5 4.4 (0.8) 0.5 $ 2018 93.7 9.3 0.4 1.5 0.7 0.6 17.9 36.4 (1.9) $ 158.6 707.9 $ 898.5 $ 1,089.5 14.6% 12.0% 12.4% 2019 $ 108.4 $ 7.9 2.5 0.2 0.6 30.2 41.5 - $ 191.3 $1,221.3 15.7% 2020 2021 96.1 $ 100.6 5.7 2.1 2.3 1.3 0.3 1.1 28.5 44.8 $1,130.8 4.5 10.3 16.1% (2.1) 1.2 0.3 (1.7) 17.0 50.4 $ 182.2 $ 180.5 $ $ 1,213.2 14.9% $ 2022 (a) Excludes purchase accounting effects reflected in depreciation and amortization of $0.3 M, $0.4 M, $0.5 M, $0.6 M, $0.4 M and $0.4 M for 2016, 2017, 2018, 2019, 2020 and 2021, respectively. TTM Q2 2023 120.4 $ 134.1 (b) Adjustment to exclude recognition of deferred gain associated with historical sale lease-back transactions. Effective 2019, the Company no longer recognizes the gain due to the adoption of new lease accounting standard. 10.3 (0.5) 0.1 (0.5) 30.5 54.7 17.4 2.2 0.1 1.4 32.0 57.4 215.0 $ 244.6 1,434.8 $ 1,565.8 15.6% 15.0% 28#29Appendix VI: Executive Compensation Aligned with Long-term Objectives The Company continues to focus on executing against a number of key long-term objectives, which include (i) creating disciplined growth, (ii) improving manufacturing efficiencies and costs; (iii) leveraging invested capital; and (iv) diversifying our customer base One Year Three Years Cash Bonus (STIP) Earnings (60%) EBITDA Margin (20%) Individual Objectives (20%) ● ● Performance Share Units EPS (75%) Return on Invested Capital (25%) Relative TSR (modifier) Restricted Stock Awards Share Price Appreciation Stock Options Ten Years Short-Term Annual Goals 1. Profitability and growth 2. Market share Long-Term 3-year Performance and Vesting Periods 1. Profitability and growth 2. Shareholder value creation 3. Efficient use of capital 4. Facilitates stock ownership 5. Executive retention 6. TSR component introduced in 2022 to measure performance vs. peers Long-Term 3-year Cliff Vesting 1. Executive recruitment 2. Executive retention Longer-Term 3-year Ratable Vesting Period and 10 Year Exercise Period 1. Shareholder value creation 2. Facilitates stock ownership 3. Executive retention 29#30Appendix VII: Investor Information Stock Ticker: NYSE:FSS Company website: federalsignal.com/investors HEADQUARTERS 1415 West 22nd Street, Suite 1100 Oak Brook, IL 60523 INVESTOR RELATIONS CONTACTS 630-954-2000 lan Hudson SVP & Chief Financial Officer [email protected] 30#31P FEDERAL SIGNAL Moves. Cleans. Protects.