Spx Technologies, Inc. · NYSE:SPXC

Spx Technologies — Americas Select Conference 2011

37 slides from Spx Technologies's conference presentation, May 24, 2011

1. Slide 1: Americas Select Conference

   Americas Select Conference INFRASTRUCTURE X PROCESS SOLUTIONS X DIAGNOSTIC SYSTEMS COMP ANY CONFIDENTIAL May 24, 2011 1

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: Introductory Comments

   Introductory Comments INFRASTRUCTURE X PROCESS SOLUTIONS X DIAGNOSTIC SYSTEMS COMP ANY CONFIDENTIAL May 2011 3

4. 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 Focus on Executing Long-Term Strategy, Cyclical Recovery Focus on 3 Strategic Markets Diversification, Focus on >100 Acquisitions Str

5. Slide 5: Key End Market Drivers

   Key End Market Drivers Power & Energy Food & Beverage Vehicle Service Electricity Demand Customer Globalization, New Vehicle Platforms Emerging Markets Retrofit and Refurbishement Increasing Electronic of Aged Infrastructure Sustainability & Complexity of Vehicles Environmental Considerations Emergi

6. Slide 6: Primary Technology Offerings

   Primary Technology Offerings Infrastructure Power & Energy Cooling Systems Heat Exchangers Power Transformers Process Solutions Food & Beverage Engineered Components Skidded Systems Full-Line Systems Diagnostic Tools Vehicle Service OEM Professional Aftermarket Professional Aftermarket Do-it-Yoursel

7. Slide 7: Strategic Overview

   Strategic Overview Growth Initiatives Internal Focus Develop Continue LEAN Innovative Solutions Journey Expand Customer Migrate to Relevance Shared Services Broaden Geographic Promote Presence Brand Localize Content One with Global Expertise Global Operating System Power & Food & Vehicle Energy Beve

8. Slide 8: Revenue by Region

   Revenue by Region Emerging Market Revenue % 2010 Revenue % by Geography of Total Reported Revenue $1.2b 48% 24% 25% 22% 23% $0.6b 17% 15% 14% 18% 2% 2005 2006 2007 2008 2009 2010 8% Globalization has Improved Growth Prospects; Emerging Markets have Provided Growth Opportunities May 2011 8

9. Slide 9: Financial Performance

   Financial Performance ($ billions; except per share data) peak revenue & EPS achieved in 2008 Revenue EPS* $5.8 Actions Since Late 2008 ~$5.5 $4.8 $4.9  Structural improvements: $4.5 $6.53  >$100m of restructuring actions $3.9  Reduced tax rate 300 points $3.5 $4.85 $4.25 to  Reduced debt & inte

10. Slide 10: Cyclical Analysis of Primary End Markets

    Cyclical Analysis of Primary End Markets Recovery Stage Later Vehicle Service Diagnostic Tools Food & Beverage & Equipment Components Recovery Stage Middle HVAC & Other Infrastructure Food & Beverage Power Systems Recovery Stage Generation Power T&D Early Oil & Gas Late Cycle Mid Cycle Early Cycle N

11. Slide 11: Medium Term Growth Drivers

    Medium Term Growth Drivers  Cyclical recovery, particularly in power-related businesses  Expansion in large power transformers  Expansion in food & beverage systems  Robust OEM new vehicle launch forecast  Margin expansion across all four segments  Strategic acquisitions  Innovation focus We

12. Slide 12: Business Matrix: % of 2010 revenue

    Business Matrix: % of 2010 revenue Reporting Segment Flow Thermal Equipment Test & Industrial Products Technology & Services Measurement & Services End Market 34% 33% 19% 14% Power & Energy 36% 6% 23% 7% HVAC & Other Infrastructure 4% 8% 3% 2% 17% Food & Beverage 16% 16% Vehicle Service 16% 16% Indu

13. Slide 13: Flow Technology

    Flow Technology INFRASTRUCTURE X PROCESS SOLUTIONS X DIAGNOSTIC SYSTEMS COMP ANY CONFIDENTIAL May 2011 13

14. Slide 14: Global Flow Technology Overview

    Global Flow Technology Overview pumps 2010 Revenue by End Market valves Dairy, Food & Beverage 45% homogenizers General Industrial mixers 22% Power Generation heat exchangers Compressed Oil & Gas 6% Air Infrastructure 11% 8% 8% filters Dairy, Food & Beverage is Largest End Market; Diverse Offering o

15. Slide 15: Global Flow Technology Revenue by Region

    Global Flow Technology Revenue by Region Emerging Market Revenue % of 2010 Revenue % by Geography Flow Technology Reported Revenue >$500m 32% 30% 35% ~$200m 31% 30% 23% 22% 19% 25% 6% 2005 2006 2007 2008 2009 2010 7% Globalization has Improved Growth Prospects; Emerging Markets Represent More than 3

16. Slide 16: Global Flow Technology Historical Financial Results

    Global Flow Technology Historical Financial Results ($ millions) Long-term targets:  Average annual revenue growth: 4% to 6% Revenue  Segment income margins: 14% to 16% Segment Margins APV Acquisition Gerstenberg & Anhydro 12/31/2007 Acquisitions, 2010 $1,999 +15% to +20% 16.4% $1,634 $1,662 15.6%

17. Slide 17: Food & Beverage Business

    Food & Beverage Business INFRASTRUCTURE X PROCESS SOLUTIONS X DIAGNOSTIC SYSTEMS COMP ANY CONFIDENTIAL May 2011 17

18. Slide 18: Global Food & Beverage Market

    Global Food & Beverage Market ($ millions) Food & Beverage Market: Global Retail Industry Revenues 2010 – 2014E CAGR 2009 decline $16,000 due to global +6% $14,000 recession $12,000 +4% $10,000 +6% $8,000 +3% $6,000 $4,000 +7% $2,000 $0 Asia Pacific Europe Middle East & Africa North America Latin Am

19. Slide 19: Food & Beverage Expansion

    Food & Beverage Expansion 2001-2007 2008-Today U.S. Based Supplier of Global Supplier Food & Beverage Components Of Full-Line, Automated Solutions >$800m in Revenue >50% International Expanded Systems Capabilties Globalization & Systems Acquired Waukesha Cherry-Burrell and Bran & Luebbe businesses i

20. Slide 20: Role in Food & Beverage Processing

    Role in Food & Beverage Processing White Water Recovery System ~65% components ~35% systems Today SPX is a Leading Global Supplier of Engineered Systems That are Used for Dairy, Food and Beverage Processing May 2011 20

21. Slide 21: Key Food Categories

    Key Food Categories  Milk products  Yogurt Customer Examples  Cream  Baby formula Dairy  Cheese  Whey & milk powder  Butter  Dairy ingredients  Soft drinks  Soya drinks Beverages  Fruit juices  Beer  Flavored water  Wine  Coffee & tea  Spirits  Baby food  Processed egg  Yeast  De

22. Slide 22: Food & Beverage Systems

    Food & Beverage Systems Recent Large Project Awards 2011E Systems Revenue Margarine Milk & Butter Powders Dairy (liquid) Milk Whey 52% Powders Powders Butter Food Plant Dairy Ingredients Yogurt (powder) Whey Plants 18% Powders Dairy Brewery & Products Other Yellow Fats Factory 6% Beverages Fats & Oi

23. Slide 23: Key Market Drivers

    Key Market Drivers Increasing Globalization Emerging Middle Class Emerging Markets Food Safety Regulations Social Responsibility Increasing Standards Product Energy Efficiency Safety Sustainability High Integrity in Process Waste Prevention Product Innovation Health & Wellness Sports Nutrition Globa

24. Slide 24: Emerging Markets: Dairy Products Factory Example

    Emerging Markets: Dairy Products Factory Example Example of Daily Production in a Dairy Products Factory Goal 240 Tons 50 Tons per day per day 120 Tons 8 Tons 15 Tons 1,000,000 per day per day per day liters per day Milk Juice Yogurt Cheese Butter Whey Powder Acquisitions Have Expanded SPX’s Capabil

25. Slide 25: Emerging Markets: Fast Growing UHT Milk

    Emerging Markets: Fast Growing Ultra High Temperature (UHT) Milk 2010 to 2015 CAGR 5.5% to 11% 3.5% to 5.4% 2.1% to 3.4% 0.0% to 2.0% -0.1% to -5.0% data not available Source: Euromonitor International; Retail Value, US$, Fixed 2010 Ex. Rates Sales of Long-Life UHT Milk Expected to Grow Fastest in E

26. Slide 26: Standardization Program with Global Yogurt Customer

    Standardization Program with Global Yogurt Customer  Customer benefits: Asia Pacific Quicker time to market Localization Progress   Increased production consistency  Reduced cost of ownership Material 100% Engineering  Reduced level of training 90% Assembly 80% 70%  Key results: 60% 50%  Aver

27. Slide 27: Sustainability: SPX Nexus Heat Exchanger

    Sustainability: SPX Nexus Heat Exchanger Conventional SPX Reduced Energy Consumption Product Nexus Heat Recovery Option Natural Refrigerant Electric 1,780 MWh 1,450 MWh Power 18% savings Gas/Oil 3,000 MWh 950 MWh Power 68% savings The Nexus Scraped Surface Heat Exchanger is a Sustainable Solution Ma

28. Slide 28: Product Innovation & Safety: Instant Infusion

    Product Innovation & Safety: Instant Infusion  Heat technology that destroys bacteria while maintaining taste, texture and important nutrients  Benefits include a uniform bacteria kill rate, consistent product quality  Technology is currently used by manufacturers of milk concentrates and infant

29. Slide 29: Product Safety: Regulatory Environment

    Product Safety: Regulatory Environment North America Europe Emerging Regions Highly Regulated at Regulatory environment is Regulatory authority varies Federal & State level wide-ranging, strictly enforced Generally, emerging regions Key Regulatory Agencies: Key Regulatory Agencies: are not as highly

30. Slide 30: Food & Beverage Summary

    Food & Beverage Summary  SPX is a leading global supplier of process solutions into the food & beverage market  Food & beverage is an attractive, steady growth market with higher growth opportunities in emerging markets  SPX is well positioned to benefit from capital investments by food & beverag

31. Slide 31: Questions

    Questions INFRASTRUCTURE X PROCESS SOLUTIONS X DIAGNOSTIC SYSTEMS COMP ANY CONFIDENTIAL May 2011 31

32. Slide 32: Appendix

    Appendix INFRASTRUCTURE X PROCESS SOLUTIONS X DIAGNOSTIC SYSTEMS COMP ANY CONFIDENTIAL May 2011 32

33. Slide 33: Acquired APV in Q4 2007

    Acquired APV in Q4 2007 2007 Revenue by Region Europe 56%  Expanded global presence and added critical mass  Increased exposure to attractive food & Asia Americas 24% 20% beverage market  Highly complementary products 2007 Revenue by End Market  Strong, global APV brand name Food & Beverage 73%

34. Slide 34: Acquired Gerstenberg Schroeder in Q1 2010

    Acquired Gerstenberg Schroeder in Q1 2010 Revenue by Region Europe 49%  A leading global manufacturer of food processing equipment  Core technologies include fats and oils processing ROW 12% Americas 24% Asia 15% Revenue by Product Type Components 47% Skidded Spare Systems Parts Butter Blend Syste

35. Slide 35: Acquired Anhydro in Q3 2010

    Acquired Anhydro in Q3 2010 2009 Revenue by End Market  Anhydro’s core competencies are in evaporation and drying technologies Food & Beverage 72% Chemical & Pharma 14% Parts & Service Other 9% 5% 2009 Revenue by Region Asia 21% Europe 68% South America 11% Annual Revenue was ~$100m; Completed the

36. Slide 36: Acquired B.W. Murdoch in Q1 2011

    Acquired B.W. Murdoch in Q1 2011 Strategic Rationale  ~$15m of annual revenue  Increases capabilities in New Zealand  Provides design, fabrication and plant engineering solutions to the dairy, beverage and bio-tech industries  New Zealand is one of the world’s leading exporters of dairy products

37. Slide 37: 2006 to 2010 Adjusted EPS

    2006 to 2010 Adjusted EPS 2006 2007 2008 2009 2010 GAAP EPS from continuing operations $ 3.74 $ 5.33 $ 4.68 $ 0.95 $ 3.86 refinancing charges - - - - 0.33 asset impairments - 0.05 2.21 3.40 - tax benefits (0.85) (0.59) (0.47) (0.43) (0.57) legal matters 0.27 0.06 0.11 - - other (0.08) - - - - Adjust

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