Spx Technologies, Inc. · NYSE:SPXC

Spx Technologies — Investor Presentation (January 2016)

32 slides from Spx Technologies's investor presentation, January 2016

1. Slide 1: January 2016

   January 2016

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: SPX Corporation: Company Overview

   SPX Corporation: Company Overview *Contingent on completion of the spinoff of FLOW January 2016 September 2, 2015

4. Slide 4: Strategic Transformation

   Strategic Transformation SPX Pre-Spin SPX Post-Spin Detection & Measurement Thermal Flow & HVAC Base Power(1) Hydraulic Industrial ex. Hydraulic South African Projects 2014 Revenue: ~$4.7b 2014 Revenue: ~$2.0b (1) Excludes South African projects Spin Objective: Narrow the Strategic Focus and Create

5. Slide 5: Company Overview

   Company Overview The “New” SPX Corporation  Headquartered in Charlotte, NC 2014 Revenue by Region  A leading supplier of: 64% 17%  HVAC products,  Detection & Measurement technologies, and  Power equipment 12%  ~$2.0b of revenue in 2014  ~6,000 employees 1%  NYSE Ticker: SPXC 6% SPX Corporat

6. Slide 6: Key Product Offerings and Financial Profile by Segment

   Key Product Offerings and Financial Profile by Segment  Package cooling units 2014:  Fluid coolers  Residential and non-residential boilers  $536m revenue  Electrical heating products  mid-teens EBITDA %  Locators 2014:  Fare collection systems  $244m revenue  Communication technologies 

7. Slide 7: Value Creation Strategies

   Value Creation Strategies Grow HVAC platform: Grow Detection & Measurement platform: Measurement New product development Continue to upgrade installed base Detection &   HVAC  New product launches in 2016  Channel development  Expand vertically and geographically  Geographic expansion  Extend

8. Slide 8: Value Creation Key Accomplishments

   Value Creation Key Accomplishments Grow HVAC platform: Grow Detection & Measurement platform: Measurement Launch of new evaporative condenser New Genfare Link fare collection system Detection &   HVAC product (industrial refrigeration) installed in key reference market  Launch of new high-efficie

9. Slide 9: GE (Alstom) Agreement Amendment – South African Projects

   GE (Alstom) Agreement Amendment – South African Projects  De-scoped our construction activities on final 3 units of the Kusile Air Cooled Condensers (“ACC”)  Will maintain a technical support role  Remain responsible for construction activities on the first 3 units  Structurally reduces risk pro

10. Slide 10: Kusile Air Cooled Condenser ("ACC")

    Kusile Air Cooled Condenser (“ACC”) Driving to Completion of the First 3 Units January 2016 10

11. Slide 11: Sale of Global Dry Cooling Business

    Sale of Global Dry Cooling* Business  Agreement to sell Dry Cooling business to Paharpur Cooling Towers Limited (a leading cooling solution provider with global operations, headquartered in India)  Expected to be finalized in 1H 2016  Purchase price is ~$48m pretax – subject to adjustments for wo

12. Slide 12: Segment Overview

    Segment Overview *Contingent on completion of the spinoff of FLOW January 2016 September 2, 2015

13. Slide 13: HVAC Segment Overview

    HVAC Segment Overview 2014 Revenue by Product HVAC Segment Overview  A leading North American supplier of package cooling products, Heating Cooling Products boiler systems and electric comfort heating products $536m Products 56% 44%  Well-recognized product brands and large installed base:  Provi

14. Slide 14: Cooling Products Overview

    Cooling Products Overview 2014 Revenue Breakdown  Cooling products used in non-residential, commercial construction, process cooling and refrigeration applications Package Parts and Cooling  Well-recognized product brands: Marley and Recold $237m Service Towers 20% 80%  Well-established sales cha

15. Slide 15: Cooling Product Examples

    Cooling Product Examples Over 90 Years of Experience Engineering and Manufacturing Cooling Towers; Marley Sets a High Standard for Efficiency and Quality January 2016 15

16. Slide 16: Heating Products Overview

    Heating Products Overview  North American businesses with strong brands 2014 Revenue Breakdown  Products used in residential and non-residential markets and sold primarily through distributors Boiler  End customers concentrated in the Northeast and Midwest Systems $299m 66% Electrical  Demand fo

17. Slide 17: Heating Product Examples

    Heating Product Examples Residential Boilers Commercial Boilers Electrical Heating Products  Standard cast iron  Standard cast iron Digital  High efficiency  High efficiency wall heaters  Natural gas and oil  Natural gas and oil Wash-down, corrosion resistant heaters Aluminum convection heater

18. Slide 18: Detection & Measurement Segment Overview

    Detection & Measurement Segment Overview 2014 Revenue by Product Detection & Measurement Segment Overview Locators & Communications Inspection Technology Equipment  Technology intensive product portfolio 38% 41% $244m  Strong new product development and innovation programs Fare Collection Technolo

19. Slide 19: Locators & Inspection Equipment

    Locators & Inspection Equipment 2014 Revenue by Product  Based in the U.K., a leading global supplier of underground pipe and Locators Inspection conduit locators and inspection equipment 70% 10% $100m  Continuous new product enhancements and loyal customer base Dry Air  ~7% revenue CAGR from 201

20. Slide 20: Communications Technology

    Communications Technology 2014 Revenue by Product SMS &  A leading global supplier of spectrum monitoring (SMS) and Obstruction COMINT Lighting communications intelligence (COMINT) systems 51% Products $94m 49%  A leading North American supplier of obstruction lighting products  Key demand driver

21. Slide 21: Communications Technology

    Communications Technology Spectrum Monitoring (SMS) Communications Intelligence (COMINT) From Borders to Battlefields and From Urban Landscapes to Wide Open Spaces, Our Products Empower Customers to Monitor, Analyze and Manage the RF Spectrum January 2016 21

22. Slide 22: Communications Technology

    Communications Technology Flash Lighting Systems Flash Lighting Systems We Provide High-Quality LED and Xenon Lighting Systems for a Variety of Tower Applications January 2016 22

23. Slide 23: Fare Collection Technologies

    Fare Collection Technologies  A leading North American supplier in fare collection:  $51m of revenue in 2014  Historical market position concentrated on fare box installations  Rapidly evolving technology in the market has driven a transformation in our business:  Evolved from “fare box supplie

24. Slide 24: Next Generation Fare Collection System

    Next Generation Fare Collection System Legacy Farebox Fast Fare Box Fast Fare-eTM e-FareTM E-ticketing Point-of-Sale Cloud-Based Software Support Software Field Support Support Fast Fare Suite of Products Integrated With Back-End Support; We Believe This is The New Industry Standard January 2016 24

25. Slide 25: Base Power Segment Overview

    Base Power* Segment Overview 2014 Revenue by Product Power Segment Overview Power Generation Power  A leading global supplier of cooling technologies, heat exchangers 66% Transformers and pollution control systems $1.1b 34%  A leading North American supplier of power transformers  Large installed

26. Slide 26: Power Generation Equipment

    Power Generation Equipment Hybrid Cooling (ClearSky)  Leading supplier of cooling systems, large scale heat exchangers and pollution control systems  Highly engineered products  Equipment and technological solutions for several types of power generation plants  Large installed base with recurrin

27. Slide 27: Power Transformers

    Power Transformers  SPX is a leading supplier of power transformers into North America with strong brand equity  Locations: Waukesha, WI and Goldsboro, NC  Demand largely driven by replacement of aging installed base:  Average age of installed base is ~40 years  Recent end market trends:  Repl

28. Slide 28: South Africa

    South Africa *Contingent on completion of the spinoff of FLOW January 2016 September 2, 2015

29. Slide 29: South African Projects Overview

    South African Projects Overview Medupi and Kusile Power Stations  Medupi and Kusile are the two mega-projects:  Twelve 800 mega-watt coal-fired plants (six at each project site)  Eskom is a state-owned South African utility  Alstom and Mitsubishi Hitachi are the primary contractors Boiler Island

30. Slide 30: Capital Allocation Overview

    Capital Allocation Overview *Contingent on completion of the spinoff of FLOW January 2016 September 2, 2015

31. Slide 31: Capital Allocation Discipline

    Capital Allocation Discipline Methodology Expected Outcome 1) Utilize strategic planning process to evaluate  Quantify projected future cash flows and future revenue and earnings growth estimate total company valuation 2) Maintain target capital structure  Gross Debt to EBITDA(1) target range: 1.5

32. Slide 32: Thank You

    Thank You *Contingent on completion of the spinoff of FLOW January 2016 September 2, 2015

SPX — Investor Presentation (January 2016) on 6ix