Spx Technologies, Inc. · NYSE:SPXC

Spx Technologies — Electrical Products Group Conference (May 2015)

27 slides from Spx Technologies's conference presentation, May 18, 2015

  1. Slide 1: Electrical Products Group Conference

    Electrical Products Group Conference Chris Kearney, Chairman, President and CEO May 18, 2015 COMPANY CONFIDENTIAL

  2. Slide 2: Forward-looking statements

     Certain statements contained in this presentation that are not historical facts, including any statements as to future market conditions, results of operations and financial projections, are forward-looking statements and are thus prospective. These forward-looking statements are subject to risks,

  3. Slide 3: Agenda

    Agenda  Transformation and SPX FLOW Overview Chris Kearney  The “New” SPX Corporation Overview Gene Lowe  Spin-Off Update Jeremy Smeltser  Questions May 18, 2015 3

  4. Slide 4: Strategic Transformation

    Strategic Transformation 1997-2004 2005-2007 2008-2014 2015 + General Signal + Johnson Pump + APV SPX FLOW, Inc. + United Dominion + Anhydro SPX Corporation Select Key Acquisitions + Gerstenberg + ClydeUnion Flow Spin-Off Flow Market Development ‒ Service Solutions Strategic Market ‒ EGS JV Interest

  5. Slide 5: Strategic Transformation

    Strategic Transformation 1997 to 2004 2005 to 2011 2012 to 2014 2015 future and state Beyond 9 Growth Platforms 3 Core Platforms 3 Key End Markets 2 Independent 5 Reporting Segments 4 Reporting Segments 3 Reporting Segments Companies 2004 Revenue* 2011 Revenue 2014 Revenue 2015E Revenue Industrial I

  6. Slide 6: Strategic Rationale

    Strategic Rationale Strategic Rationale  Significant progress has been made over the last several years to simplify and strengthen SPX  Following a thorough review of various alternatives, management and the Board have decided to pursue a spin-off of SPX’s Flow business  The spin-off will result

  7. Slide 7: SPX FLOW, Inc.

    SPX FLOW, Inc. Chris Kearney, Chairman, President and CEO COMPANY CONFIDENTIAL Company Confidential

  8. Slide 8: SPX FLOW Overview

    SPX FLOW Overview SPX FLOW, Inc. 2015E Pro Forma Revenue by End Market Power &  Chairman, President and CEO: Chris Kearney Energy 31%  VP and Chief Financial Officer: Jeremy Smeltser Food & Beverage ~$2.5B  2015E Consolidated EBITDA (1): ~$360m 37% Industrial (1) As defined by SPX’s credit facili

  9. Slide 9: SPX FLOW Strengths

    SPX FLOW Strengths Business Strengths  Pure-play flow company, well positioned in attractive end markets with diverse, global customer base  Diversified product offering of highly engineered flow control and process technologies  Strong brands with leading market positions  Large installed base

  10. Slide 10: SPX FLOW Key Product Offerings

    SPX FLOW Key Product Offerings Food & Beverage Power & Energy Industrial Key Products Key Products Key Products  Reciprocating pumps  Centrifugal pumps  Air dryers  Centrifugal pumps  Reciprocating pumps  Compressed air technologies  Various valve technologies  Control valves  Gas treatment

  11. Slide 11: SPX FLOW Summary

    SPX FLOW Summary Drive Sustainable, Profitable Growth Improve Operational Performance  Increase aftermarket capabilities  Disciplined approach to project selectivity  Leverage combined technology offerings  Continuous operational improvement  Expand sales and distribution channels  Expand conf

  12. Slide 12: The "New" SPX Corporation

    The “New” SPX Corporation Gene Lowe, Future President and CEO Company Confidential

  13. Slide 13: "New" SPX Corporation

    “New” SPX Corporation New SPX Corporation 2015E Revenue by End Market  Chairman: Michael Mancuso HVAC 30% Power T&D  President and CEO: Gene Lowe 20%  VP and Chief Financial Officer: Scott Sproule ~$1.9B Detection & Power Gen. /  2015E Consolidated EBITDA (1): ~$160m Measurement Industrial (1) A

  14. Slide 14: "New" SPX Corporation

    “New” SPX Corporation Business Strengths  A diversified global infrastructure company with market leading positions  Scalable HVAC platform  Leading positions in niche detection and measurement businesses  Strong position in U.S. power transformer market  Strong brand recognition driven by new

  15. Slide 15: "New" SPX Corporation

    “New” SPX Corporation HVAC Detection & Measurement Power T&D Power Generation  Underground locators and inspection equipment  Package cooling towers  Medium and large  Cooling systems  Fare collection systems power transformers  Heat exchangers  Residential and commercial  Communication boil

  16. Slide 16: "New" SPX Corporation: Growth Platforms

    “New” SPX Corporation: Growth Platforms HVAC Platform Detection & Measurement  2015E Revenue: ~$560m  2015E Revenue: ~$260m  Mid-Teens EBITDA margins  >20% EBITDA margins  Scalable growth platform  Niche businesses with market leading technologies  Driving growth through:  Driving growth thr

  17. Slide 17: HVAC New Product Developments

    HVAC New Product Developments  Package Towers:  SlimFit Commercial Condensing Gas Boiler :  Ultra quiet and efficiency technologies  93.9% thermal efficiency  Key innovations driving  Easy to install sustained growth  Easy to own  Easy solution for retrofits  Marley Cube Evaporative  Artis

  18. Slide 18: Detection & Measurement New Product Developments: Genfare

    Detection & Measurement New Product Developments: Genfare Legacy Farebox Fast Fare Box Fast Fare-eTM e-FareTM E-ticketing Point of Sale Cloud Based Software Support Fast Fare Suite of Products Integrated With Back-End Support is Creating a New Industry Standard May 18, 2015 18

  19. Slide 19: "New" SPX Corporation: Power Businesses

    “New” SPX Corporation: Power Businesses Power Transfomers Power Generation  2015E Revenue: ~$380m  2015E Revenue*: ~$600m  High-single digit EBITDA margins  Mid-single digit EBITDA margins*  A leading U.S. supplier of medium and  Leading global supplier of cooling systems, large voltage power

  20. Slide 20: "New" SPX Corporation Strategic Priorities

    “New” SPX Corporation Strategic Priorities  Grow HVAC platform  Expand niche detection and measurement businesses  Improve operating efficiency of power transformer business  Reduce costs and enhance margins in the power generation business Opportunity to Drive Value Through Growth in Higher Pro

  21. Slide 21: Update on Spin-Off

    Update on Spin-Off Jeremy Smeltser, VP & CFO COMPANY CONFIDENTIAL

  22. Slide 22: Update on Spin-Off of Flow Business

    Update on Spin-Off of Flow Business  Recent updates:  Filed initial Form 10 with the SEC on May 14th  Finalized corporate organizational structures for both companies last week  Key timeline milestones:  Targeting investor roadshows in June  Plan to report Q2 earnings on July 29th  Targeting

  23. Slide 23: SPX FLOW Segments

    SPX FLOW Segments Food & Beverage Power & Energy Revenue Segment Income Margins ($ millions) Revenue Segment Income Margins ($ millions) $970 $969 $947 $1,011 $998 $962 17.5% 9.7% 10.2% 9.3% 12.8% 9.6% 2012 2013 2014 2012 2013 2014 Industrial Revenue Segment Income Margins ($ millions) $888 $837 $83

  24. Slide 24: Future Capital Structures

    Future Capital Structures  SPX intends to refinance its existing credit facilities Planned Debt Actions  SPX FLOW will become obligated to repay SPX’s 6.875% Senior Notes due 2017; Received clarifying consent from the existing bondholders  Expect the leverage ratios and credit ratings of both com

  25. Slide 25: Questions

    Questions COMPANY CONFIDENTIAL

  26. Slide 26: Pro Forma Future Company Reconciliations

    Pro Forma Future Company Reconciliations NOTE: Pro Forma 2015 estimates for revenue and consolidated EBITDA are based on SPX’s 2015 mid-point financial targets as categorized in the proposed future structure and inclusive of estimated stand-alone costs ($ millions) SPX FLOW, Inc. SPX Corporation Rev

  27. Slide 27: COMPANY CONFIDENTIAL

    COMPANY CONFIDENTIAL

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