Spx Technologies, Inc. · NYSE:SPXC
Spx Technologies — Baird's 2011 Industrials Conference
33 slides from Spx Technologies's conference presentation, Nov 9, 2011
Slide 1: Baird's 2011 Industrials Conference
at Baird’s 2011 Industrials Conference November 9, 2011 1 November 2011 1
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, financial projections and acquisitions are forward-looking statements and are thus prospective. These forward-looking statements are subjec
Slide 3: SPX Overview
SPX Overview INFRASTRUCTURE X PROCESS SOLUTIONS X DIAGNOSTIC SYSTEMS COMPANY CONFIDENTIAL November 2011 3
Slide 4: SPX Transformation
SPX Transformation 1912-1996 2005-Today 1997-2004 U.S. Automotive Global, Multi-Industry Supplier Supplier Diversified Industrial Manufacturer Of Engineered Solutions CLYDEUNION Diversification, Acquisition >100 Acquisitions; Legacy divestitures APV Acquisition Focus on Executing United Dominion Lon
Slide 5: SPX Overview
SPX Overview SPX is a leading global supplier of engineered solutions including: power & energy infrastructure food & beverage process equipment diagnostic tools used in vehicle service U.S. based Fortune 500 company Global capabilities with ~16,000 employees worldwide Power & Food & Vehicle Energy
Slide 6: Revenue Breakdown
Revenue Breakdown Revenue by Segment Revenue by End Market Thermal Equipment & Flow Services 30% Infrastructure Food & Technology 53% HVAC/ Other Beverage 37% 16% 17% Power & Energy Test & 36% Measurement Vehicle 20% Service 16% Industrial Other Products & Markets Services 15% 13% Note: End market r
Slide 7: Geographic Profile
Geographic Profile Emerging Market Revenue % 2010 Revenue % by Geography of Total Reported Revenue 48% 24% 28% 25% 22% 23% 17% 15% 14% 18% 2005 2006 2007 2008 2009 2010 2011* 2% 8% *Through the first nine months of 2011 Globalization has Improved Growth Prospects; Emerging Markets have Provided Grow
Slide 8: Financial Performance
Financial Performance ($ billions; except per share data) Revenue $5.8 Experiencing strong growth in early cycle Adjusted EPS* businesses; recovery in late cycle power ~$5.5 businesses has been mixed $4.8 $4.9 $4.5 $6.53 Positive long-term growth expectations $3.9 $4.85 $4.35 to across key end marke
Slide 9: SPX Flow Technology
FOOD & BEVERAGE POWER & ENERGY INDUSTRIAL PROCESSES SPX Flow Technology GLOBAL INFRASTRUCTURE X PROCESS EQUIPMENT X DIAGNOSTIC TOOLS November 2011 9 November 2011 9
Slide 10: Revenue by Segment
Revenue by Segment 2005 Reported 2011E Pro Forma Revenue by Segment Revenue by Segment Thermal Equipment & Thermal Services Equipment & 28% Flow Services Technology 27% Flow 43% Industrial Technology $4.3b $6.1b Products & 20% Services 27% Test & Measurement 17% Test & Measurement Industrial 25% Pro
Slide 11: Flow Technology's Strategic Development
Flow Technology’s Strategic Development consolidate & integrate 2003 2004 2005 2006 2007 2008 2009 2010 2003 - 2004: brand focused operating structure 2005 - 2007: consolidated product offerings 2011 2008 - 2009: integrated APV acquisition invest & grow: 2010: reorganized to regional management stru
Slide 12: Flow Technology's Strategic Development
Flow Technology’s Strategic Development strengthened base; expanded global market relevance; localized resources 2003 2004 2005 2006 2007 2008 2009 2010 Revenue in $ billions ~$2.6 $2.0 ~$2.0 2011 $1.6 $1.7 $1.1 invest & grow: $0.7 $0.8 end market strategy emerging market capabilities 2005 2006 2007
Slide 13: Key Flow Technology Acquisitions
Key Flow Technology Acquisitions Food & Beverage Power & Energy Industrial Markets Note: CLYDEUNION acquisition targeted to close in Q4 2011 Since 2005, 85% of Acquisition Capital Has Been Focused on Strategically Expanding Flow Technology Segment November 2011 13
Slide 14: SPX Flow Technology Overview
SPX Flow Technology Overview 2010 Revenue % by Geography SPX Flow Technology is a leading global supplier of custom engineered process solutions 32% 30% Key markets served: food & beverage power & energy industrial processes 25% Global capabilities with ~6,000 employees worldwide 6% 2011E revenue: ~
Slide 15: Flow Technology End Market Structure
Flow Technology End Market Structure Food & Beverage Power & Energy Industrial Processes Design, manufacture and Design and manufacture highly Currently supply highly service highly engineered food engineered components and engineered components into processing components, modular systems used in th
Slide 16: Flow Technology Customer Examples
Flow Technology Customer Examples Food & Beverage Power & Energy Industrial Processes Well Recognized, Diverse, and Global Customer Base; Continue to Focus on Expanding Customer Relevance November 2011 16
Slide 17: Flow Technology Revenue Analysis
Flow Technology Revenue Analysis Revenue By Product Type Components Systems ~70% original equipment ~80% fully integrated Components ~30% aftermarket & services ~20% modular skids ~75% lead times: < 3 months lead times: 6 to 18 months sales channels: direct, reps, sales channel: primarily direct dis
Slide 18: Flow Technology Food & Beverage Systems
Flow Technology Food & Beverage Systems ($ millions) Annual Systems Revenue 2011E Systems Revenue by Type +70% to +80% Dairy & Dairy Food Liquid Powder 32% 20% $293 $270 Dairy $232 Turnkey Food 14% 3% Pharma Fats & Oils 4% Cheese Beverage 13% 4% 10% 2008 2009 2010 2011E 14% 14% 18% ~25% % of Total F
Slide 19: Recent Large Food & Beverage System Awards
Recent Large Food & Beverage System Awards Margarine Whey & Butter Powder Milk Evaporation Milk Powder Butter Food Ingredients Yogurt Yogurt Caustic 6 Plants Evaporator Whey Powder Dairy Water Yogurt Yellow Fats Infant Formula Soft Drinks Milk EP Cheese Soft Drinks Orders for Large Scale Food & Beve
Slide 20: Flow Technology Backlog Analysis
Flow Technology Backlog Analysis ($ millions) Quarter End Backlog Backlog Aging Components Systems 2011E Sales 48% $318 $308 $295 $250 $283 $554 $589 $592 $522 $506 2012E Sales 52% Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Note: As of 11/2/2011 17% Year-Over-Year Increase in Flow Technology Backlog to
Slide 21: Flow Technology Segment Income and Margin Development
Flow Technology Segment Income and Margin Development Annual Segment Income and Margin +20% to +25% $243 16.4% $216 15.6% $211 14.4% 13.0% to $175 12.9% 13.0% 13.2% 12.2% $128 $106 acquisition acquisition dilution: 550 pts dilution: 50 pts 2005 2006 2007 2008 2009 2010 2011E Note: 2011E as of 11/2/2
Slide 22: Flow Technology End Market Development
Flow Technology End Market Development ($ billions) Revenue by End Market 2005 2011E Pro Forma 2011E Pro Forma Revenue by End Market ~$1b ~$1b Food & ~$0.6 Beverage 37% Power & $0.3 Energy $0.2 38% $0.2 Food & Power & Industrial Beverage Energy Markets Industrial Processes 25% Note: 2011E as of 11/2
Slide 23: Questions?
questions? November 2011 23 November 2011 23
Slide 24: Appendix
appendix November 2011 24 November 2011 24
Slide 25: Flow Technology Food & Beverage Business
Flow Technology Food & Beverage Business Primary Applications 2010 Revenue by End Market liquid dairy products Dairy powder dairy products Products 52% beverages ~$740m processed foods Food & Beverages 42% pharmaceuticals Pharma & Personal personal care products Care 7% A Global Market Leader in Dai
Slide 26: Flow Technology Industrial Business
Flow Technology Industrial Business 2010 Revenue by End Market Primary Applications Mining & Marine & mining of minerals Minerals Shipbuilding 28% 28% marine & shipbuilding ~$630m chemical processing Other 10% Rubber & waste water treatment Plastics 14% Waste Water Treatment pulp & paper Paints & In
Slide 27: Flow Technology Power & Energy Business
Flow Technology Power & Energy Business 2010 Revenue by End Market Primary Applications Oil & Gas Oil & Gas transportation 61% & distribution Chemical Injection for Coal Fired petroleum processing ~$293m Power 15% Nuclear and conventional power generation Nuclear Power Other Natural Gas 8% 10% Power
Slide 28: CLYDEUNION Pumps Acquisition
CLYDEUNION Pumps Acquisition Revenue % by Geography CLYDEUNION Pumps is a leading global supplier of Pump Technologies into oil & gas, power generation and industrial markets 22% 20% Based in the U.K. Global capabilities with ~2,000 employees: 8 manufacturing plants 25% 25 service centers Projected
Slide 29: CLYDEUNION End Markets
CLYDEUNION End Markets Revenue by End Market Applications Upstream oil & gas Oil & Gas 52% Downstream oil & gas Nuclear power generation Conventional power generation Industrial Power Water desalination Markets Generation 9% 39% Mining & minerals Offshore and marine CLYDEUNION Designs, Manufactures
Slide 30: CLYDEUNION Oil & Gas Pumps
CLYDEUNION Oil & Gas Pumps Upstream Oil CLYDEUNION provides a comprehensive range of Exploration & production highly engineered centrifugal and reciprocating Transportation & storage pumps that are critical to oil extraction from increasingly Downhole & subsea marginal or difficult fields Downstream
Slide 31: CLYDEUNION Power Generation Pumps
CLYDEUNION Power Generation Pumps Nuclear Power CLYDEUNION is a leading global supplier of diverse pump technologies that are used in the nuclear power generation process feed water pump residual heat safety injection/ recovery pump containment pump Conventional Power CLYDEUNION is a leading provide
Slide 32: Pro Forma Calculations
Pro Forma Calculations 2011E ($ billions) Revenue SPX Flow Technology $2.0 CLYDEUNION Pumps $0.6 Pro Forma SPX Flow Technology - CLYDEUNION Pumps $2.6 2011E Revenue SPX Corporation $5.5 CLYDEUNION Pumps $0.6 Pro Forma SPX Corporation - CLYDEUNION Pumps $6.1 Note: 2011E as of 11/2/2011 Note: CLYDEUNI
Slide 33: Full Year Adjusted EPS
Full Year Adjusted EPS 2011E 2006 2007 2008 2009 2010 Mid-Point GAAP EPS from continuing operations $ 3.74 $ 5.33 $ 4.68 $ 0.95 $ 3.86 $ 4.14 refinancing charges - - - - 0.33 - asset impairments - 0.05 2.21 3.40 - 0.29 tax benefits (0.85) (0.59) (0.47) (0.43) (0.57) (0.41) legal matters 0.27 0.06 0.