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## INFRASTRUCTURE SEGMENT REVIEW 

Infrastructure segment revenues increased 20% due to significantly increased sales of road safety and rail products. 

Lindsay’s infrastructure segment is an international group of companies producing a wide range of products that aid in roadway maintenance and transportation safety. We manufacture moveable road barriers and barrier transfer machines, energy-absorbing crash cushions, specialty barriers for work areas or construction zones, road marking materials, railroad signaling structures, and other safety- related products. Lindsay’s roadway infrastructure products are sold through 35 dealers in the U.S. and 35 international dealers, while railroad products are sold directly to the major railroad companies in the U.S. 

Lindsay’s patented QuickChange Moveable Barrier (QMB ® ), commonly known as The Road Zipper System™, is one of the few ways to effectively and safely manage congestion at a lesser investment than that required to build new roads. The QMB system provides a way to divert traf fi c around construction areas or work zones, increasing safety for work crews and motorists alike. On a permanent basis, the QMB is used to vary the number of lanes available to accommodate rush-hour (tidal) traf fi c fl ow, thus permitting more ef fi cient use of available roadway. More than 200 Road Zipper Systems are in use in the U.S. and internationally. 

## INFRASTRUCTURE SEGMENT PERFORMANCE 

The infrastructure segment provided 13 percent of Lindsay’s revenue in fi scal 2014 compared to 9 percent in fi scal 2013. Operating income was $3.5 million compared to a loss of $0.8 million the prior year, driven 

by higher sales volume. Operating margins increased to a 4.5 percent pro fi t in fi scal 2014 from a 1.3 percent loss in fi scal 2013 due to higher sales and a mix shift to higher margin products. 

## AGGRESSIVE FOCUS ON RESULTS 

The Company made signi fi cant progress in infrastructure pro fi tability in fi scal 2014 through both revenue increases and expense management. The infrastructure sales team was expanded and executed a more aggressive, structured sales process leading to expanded market share in road safety and railroad products. For road safety products, each state has its own quali fi cation requirements for vendors and products. We were able to expand our geographic footprint and make inroads in getting key products quali fi ed in many more states during the year. 

The innovative TAU Tube crash cushion was designed for use in tunnels. 

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