Slide 1: SPX Technologies ASPEQ Acquisition
SPX Technologies ASPEQ Acquisition June 5, 2023
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, products introductions, and financial projections, are forward-looking statements within the meaning of Section 27A of the Securities Act
Slide 3: Executive Summary
Executive Summary Closed acquisition of ASPEQ for $418m* Leading electrical heating solutions for industrial and commercial markets Growth rate/margin above SPX average Accelerates growth strategy in HVAC Heating Strong leverage to electrification and decarbonization Further opportunitie
Slide 4: Building Strategic Platforms – HVAC Heating
Building Strategic Platforms – HVAC Heating Hydronic Heating Electrical Heating Leading Position High-efficiency Leader in High-quality in Residential Commercial Supplemental High-efficiency Electric Heating Boilers Boilers Electric Heat for Commercial for Industrial and >$500M high-value Commercial
Slide 5: Value Creation Playbook in Electrical Heating
Value Creation Playbook in Electrical Heating Expands industrial / strengthens commercial positions Extend climate-conscious product lines ASPEQ Add multiple high-value niche applications + MEP Leverage cross-selling and channel opportunities Leverage procurement and manufacturing scale Mu
Slide 6: 2023 Guidance
2023 Guidance Revenue Segment Income Margin $1,110-$1,130m 18.00%-19.00% HVAC Prior $1,035-$1,055m Prior 17.25%-18.25% Detection & $570-$590m 20.50%-21.50% Measurement Unchanged Unchanged $1.68-1.72b 18.75%-19.75% Total SPX Prior $1.61-1.65b Prior 18.50%-19.50% Adj. Operating Income* of
Slide 7: SPX Strategic Portfolio Transformation Continues
SPX Strategic Portfolio Transformation Continues 2021 2023 Current Guidance* 2025 Targets Revenue $1.22B $1.70B ~$2.0B Gross margin % 35.4% ~38% ~40% Segment Income %† 16.4% 19.3% ~20% Adj. Operating Income %† 11.1% 15.4% ~16% Long-term Growth % ~2-4% ~3-5% ~3-5% Adj. EPS $2.33 ~$3.98 ~+$5.00 *Midpo
Slide 8: Financial Position - Liquidity Update
Financial Position - Liquidity Update Bank Net Leverage* 3 1.5x-2.5x 2.5 2 Proforma 1.5 TAMCO 1 0.8x ~2.0x ~1.5x 0.5 0.4x 0 Q1 2023 Q2 2023E** Q4 2023E** LT Target Well-Positioned to Continue Growth Initiatives * Calculated as provided in SPX Technologies’ credit facility agreement. ** Based on mana
Slide 9: Executive Summary
Executive Summary Attractive acquisition with strong growth and margin profiles Increasing adjusted EPS guidance* (+28% y/y) Approaching “SPX 2025” targets Positioned to continue growth investments Well-Positioned to Continue Value Creation Framework *Adjusted results are non-GAAP financial
Slide 10: Questions
SPX4 TECHNOLOGIES Questions
Slide 11: Appendix
SPX4 TECHNOLOGIES Appendix
Slide 12: Modeling Considerations – Full Year 2023
Modeling Considerations – Full Year 2023 Metric Considerations Corporate expense $48-52m Long-term incentive comp $13-14m Restructuring costs $1-2m Interest cost $25-26m Other income/(expense), and Non-service pension benefit/(expense) $4-6m Tax rate 23.5-24.5% Capex ~$25m Cash cost of pension + OPE
Slide 13: 2023 Adjusted EPS Guidance - Key Drivers
2023 Adjusted EPS Guidance - Key Drivers • Favorable economic policy/infrastructure stimulus $4.05 • Accelerated project-related sales • Moderating supply chain challenges and input costs $3.98 Base Case • Worsening supply chain challenges and input costs • Delayed project-related sales $3.90 • Unfa
Slide 14: Q1 2023 Debt Reconciliation
Q1 2023 Debt Reconciliation ($ millions) Q1 2023 Short-term debt $ 68.9 Current maturities of long-term debt 3.5 Long-term debt 241.5 Gross debt 313.9 (1) plus: adjustment associated with credit agreement (1.2) Adjusted gross debt 312.7 less: cash and equivalents (212.2) Adjusted net debt $ 100.5 (1
Slide 15: GAAP Reconciliation Results by Quarter
GAAP Reconciliation Results by Quarter ($ millions) 2022 2023 Q1 Q2 Q3 Q4 FY Q1 Segment income $ 39.6 $ 56.1 $ 63.4 $ 90.5 $ 249.6 $ 74.4 Corporate expense (16.6) (16.4) (17.2) (18.4) (68.6) (14.6) Acquisition related and other costs (0.1) (0.9) (0.1) (0.8) (1.9) (0.6) Long-term incentive compensati
Slide 16: Adjusted SPX 2021 Results by Quarter
Adjusted SPX 2021 Results by Quarter ($ millions) Q1 Q2 Q3 Q4 2021 HVAC segment income $ 23.0 $ 26.6 $ 23.6 $ 34.5 $ 107.7 Detection & Measurement segment income 24.0 18.1 18.0 32.8 92.9 Consolidated segment income $ 47.0 $ 44.7 $ 41.6 $ 67.3 $ 200.6 Operating income from continuing operations $ 25.
Slide 17: Q1 2023 Adjusted EBITDA Reconciliation
Q1 2023 Adjusted EBITDA* Reconciliation ($ millions) Last 12 Months Net Income** $ 31.6 Income tax provision 16.0 Interest expense 9.3 Income before interest and taxes 56.9 Depreciation and amortization 43.1 EBITDA 100.0 Adjustments: Loss on disposition of assets outside the ordinary course of busin
Slide 18: FY 2021 U.S. GAAP to Adjusted EPS Reconciliation
FY 2021 U.S. GAAP to Adjusted EPS Reconciliation GAAP Adjustments Adjusted Segment income $ 200.6 $ — $ 200.6 Corporate expense (1) (60.5) 8.6 (51.9) Acquisition related and other costs (2) (5.1) 5.1 — Long-term incentive compensation expense (12.8) — (12.8) Amortization of intangible assets (3) (21