Spx Technologies, Inc. · NYSE:SPXC

Spx Technologies — Investor Presentation (December 2016)

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

1. Slide 1: December 2016

   December 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 within the meaning of Section 21E of the Securities Exchange Act of 1934, as ame

3. Slide 3: SPX Corporation: Company Overview

   SPX Corporation: Company Overview December 2016

4. Slide 4: Company Overview

   Company Overview The “New” SPX Corporation  Headquartered in Charlotte, NC 2015 Revenue by Region  A leading supplier of: 71% 16%  HVAC products,  Detection & Measurement technologies, and  Power equipment 10%  ~$1.7b of revenue in 2015  ~6,000 employees 0%  NYSE Ticker: SPXC 3% SPX Corporat

5. Slide 5: Key Product Offerings and Financial Profile by Segment

   Key Product Offerings and Financial Profile by Segment  Package cooling units 2015:  Fluid coolers  $529m revenue  Residential and non-residential boilers  Electrical heating products  Segment Income margin: 15%  Locators 2015:  Fare collection systems  $232m revenue  Communication technol

6. Slide 6: Value Creation in Core Businesses

   Value Creation in Core Businesses 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

7. Slide 7: SPX "Year 1" Key Value Creation Accomplishments

   SPX “Year 1” Key Value Creation Accomplishments Delivering Operational Excellence Building Large Project Backlog Driving Operational Initiatives  Driving year-over-year margin  Awarded two of largest jobs in  Transformer business tracking ahead expansion several years of schedule to achieve long-

8. Slide 8: Transformation of Power Segment

   Transformation of Power Segment Actions Taken Results • Restructured Americas Power Generation • Adjusted EPS* impact greater than $0.30** Business over the past 12 months (full-year effect) • Closed sale of Dry Cooling Business during • Significant increase in forward cash flows Q1’2016 • Significa

9. Slide 9: Segment Overview

   Segment Overview December 2016

10. Slide 10: HVAC Segment Overview

    HVAC Segment Overview ($ millions) 2014 2015 3-Yr Target Revenue $536 $529 2-4% CAGR 2015 Segment Income % 13.0% 15.2% 15-16% Heating Cooling Revenue 54% 46% $529 2016 Outlook Considerations  EMEA and APAC market environments APAC  Timing of start of Q4’15 winter heating EMEA 8% season 5% New Buil

11. Slide 11: Heating Products Overview

    Heating Products Overview  North American businesses with strong brands  Products used in residential and non-residential markets 2015 Revenue Breakdown and sold primarily through distributors  End customers concentrated in the Northeast and Midwest Boiler Systems $286m 66% Electrical  Demand fo

12. Slide 12: Heating Product Examples

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

13. Slide 13: Cooling Products Overview

    Cooling Products Overview 2015 Revenue Breakdown  Cooling products used in non-residential, commercial construction, Package process cooling and refrigeration applications Cooling Towers $243m Parts and  Well-recognized product brands: Marley and Recold 84% Service 16%  Well-established sales cha

14. Slide 14: 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 December 2016 14

15. Slide 15: Detection & Measurement Segment Overview

    Detection & Measurement Segment Overview Fare Collection Locators & Inspection Technologies ($ millions) 2014 2015 3-Yr Target Equipment 17% 45% Revenue $244 $232 2-6% CAGR 2015 Segment Income % 22.6% 19.8% 22-24% Revenue Communication $232 Technologies 38% 2016 Outlook Considerations  U.S. federal

16. Slide 16: Locators & Inspection Equipment

    Locators & Inspection Equipment 2015 Revenue by Product  Based in the U.K., a leading global supplier of underground pipe and Locators Inspection 10% conduit locators and inspection equipment 70% $104m  Continuous new product enhancements and loyal customer base Dry Air 20%  ~6% revenue CAGR from

17. Slide 17: Communication Technologies

    Communication Technologies 2015 Revenue by Product SMS &  A leading global supplier of spectrum monitoring (SMS) and COMINT Obstruction communications intelligence (COMINT) systems 55% Lighting $89m Products 45%  A leading North American supplier of obstruction lighting products  Key demand drive

18. Slide 18: Communication Technologies

    Communication Technologies 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 December 2016 18

19. Slide 19: Communication Technologies

    Communication Technologies Flash Lighting Systems Flash Lighting Systems We Provide High-Quality LED and Xenon Lighting Systems for a Variety of Tower Applications December 2016 19

20. Slide 20: Fare Collection Technologies

    Fare Collection Technologies  A leading North American supplier in fare collection:  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 supplier” to “fare collection sys

21. Slide 21: 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 Fast Fare Suite of Products Integrated With Back-End Support; We Believe This is The New Industry Standard December 2016 21

22. Slide 22: Base Power Overview

    Base Power Overview Power/Industrial Transformers ($ millions) 2014 2015 3-Yr Target 60% 40% Revenue $1,097 $931 (3%)-0% CAGR 2015 Segment Income % 3.5% 1.1% 4-5% Revenue $931 2016 Outlook Considerations  Transformer pricing and lead times  Impact of transformers’ operational initiatives APAC 11%

23. Slide 23: 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

24. Slide 24: Power/Industrial Equipment

    Power/Industrial 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

25. Slide 25: South Africa

    South Africa December 2016

26. Slide 26: South African Projects Overview

    South African Projects Overview Medupi & 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 T

27. Slide 27: Financial Position & Capital Allocation

    Financial Position & Capital Allocation December 2016

28. Slide 28: Financial Position

    Financial Position Capital Structure Update ($ millions) Q2 2016 Q3 2016 Leverage Ratios 2.9x Short-term debt $22 $15 2.7x 2.6x 1.5-2.5x 2.3x Current maturities of long-term debt 18 18 Long-term debt 334 331 Gross Debt $374 $364 Less: Cash on hand (102) (83) Q2'16 Q3'16 LT Target Net Debt $272 $281

29. Slide 29: Financial Position

    Financial Position Capital Structure Update ($ millions) Term Debt Repayment Schedule Term Debt Cash Other ST Debt $24 300 $15 250 200 $350 $346 150 $289 100 $101 $83 50 $9 $18 $18 $18 0 Q4'15 Q3'16 2016 2017 2018 2019 2020 No Significant Debt Repayment Requirement Until 2020 December 2016 29

30. Slide 30: 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  Net Debt to EBITDA(1) target range: 1.5x

31. Slide 31: Capital Allocation

    Capital Allocation Capital Allocation Strategy Incremental Liquidity of $200m by YE 2018 • Growth Investments in Core Businesses • Return of Capital to Shareholders • Reduction in Debt and Equivalents Expect At Least $200m of Cumulative Incremental Liquidity by Year-End 2018 December 2016 31

32. Slide 32: SPX

    SPX

SPX — Investor Presentation (December 2016) on 6ix