1. SPX Corporation
Chris Kearney
Chairman, President and CEO
2008 Industrial Conference
November 11, 2008
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, uncertainties and other factors which could
cause actual results to differ materially from future results expressed or implied by such forward-looking
statements.
Particular risks facing SPX include economic, business and other risks stemming from our international operations,
legal and regulatory risks, cost of raw materials, pricing pressures, pension funding requirements, integration of
acquisitions and changes in the economy. More information regarding such risks can be found in SPX’s SEC
filings.
The estimates of future performance and guidance are as presented on October 29, 2008. SPX’s inclusion of
estimates and guidance numbers in this presentation is not an update, confirmation, affirmation or disavowal of the
estimates and guidance given on October 29, 2008.
Although SPX believes that the expectations reflected in its forward-looking statements are reasonable, it can give
no assurance that such expectations will prove to be correct. In addition, estimates of future operating results are
based on the company’s current complement of businesses, which is subject to change.
Statements in this presentation are only as of the time made, and SPX does not intend to update any statements
made in this presentation except as required by regulatory authorities.
This presentation includes non-GAAP financial measures. A copy of this presentation, including a reconciliation of
the non-GAAP financial measures with the most comparable measures calculated and presented in accordance
with GAAP, is available on our website at www.spx.com.
PAGE 2
3. SPX Overview
Global, multi-industrial
manufacturer of engineered
products
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2008E revenue: $6b
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Tools & Diagnostics
Operations in over 35
countries
Over 17,000 global
employees
Note: 2008E as of 10/29/2008
SPX Well Positioned for Future Growth in Global
Infrastructure, Process Equipment and Tools & Diagnostics Markets
PAGE 3
4. SPX Overview
2008E Revenue
Earnings Growth*
by Segment
Thermal 17% 58% ~33%
Flow 17% 58% ~33%
Equipment &
Technology $6.40 to
Services
$6.50
$4.85
33% 29%
$3.07
19% 19% $2.62
Industrial
Test &
Products &
Measurement
Services
2005 2006 2007 2008E
Note: Data from continuing operations, 2008E as of 10/29/2008
*2005 – 2008 adjusted for certain items, see appendix for reconciliations; 2008E as of 10/29/2008
$6b Global, Multi-Industrial Manufacturing Company
PAGE 4
5. 2008 Financial Targets and Updated Guidance
2008
Target Range
($ millions, except per share data)
Comments
+28% to 29% Organic: 7% to 8%
Revenue
13.2% to 13.4% +10 to 30 bps
Segment Income Margin
14.6% to 14.8% +150 to 170 bps
Excluding APV
$6.40 to $6.50 32% to 34%
Adjusted Earnings Per Share
$300 to $320 85% to 90% of NI
Free Cash Flow
$140 to $150 Capacity, Lean
Capital Spending
& IT Investments
Note: Data from continuing operations; Targets as of 10/29/2008; see appendix for non-GAAP reconciliations
Targeting 7% to 8% Organic Growth and
More Than 30% Earnings Growth in 2008
PAGE 5
6. Global End Markets
Pro Forma Revenue
Q4 2008E Organic
by End Market
Growth Expectations
Global
Infrastructure
53% HVAC,
Telecom,
Other
Power & Energy
20%
Power &
Energy
Tools &
33%
Diagnostics
20%
Sanitary
General Sanitary
Industrial 14%
(Food, Beverage, Dairy, Pharma
13%
and Personal Care Markets)
General Industrial
Pro Forma Revenue
by Geography
HVAC, Telecom, Other
North America
49%
Tools & Diagnostics
Europe
32%
Double Digit Mid-Single Digit Double Digit
ROW
Asia-Pacific Flat
4%
Growth Growth Decline
15%
Note: 2007 data from continuing operations, pro forma for APV acquisition; 2008E as of 10/29/08
Targeting Q4 Organic Growth Between 8% and 10%;
Tools & Diagnostics Declining
PAGE 6
7. Backlog Development
($ millions)
Q3 ending backlog at $3.6b,
Last 3 Quarters Ending Backlog down $120m or 3% from Q2:
– Foreign currency fluctuations
$2,002 $763 $648
Q3 '08
reduced the backlog value by
$108m
$2,077 $796 $648
Q3 '08*
– Industrial backlog down 10%:
$2,003 $782 $721
Q2 '08
• 28% organic growth in Q3
• Distribution transformer orders
$1,401 $799 $696
Q1 '08 slowing
$0 $1,000 $2,000 $3,000
~60% of annual revenue from
Thermal Flow Industrial
short-cycle businesses
*Q3 2008 backlog excluding the impact of foreign currency fluctuations
No major contract cancellations
Backlog Decline Primarily Driven by Foreign Exchange Rate Changes;
Total Backlog Down ~$120m or 3% During Q3
PAGE 7
8. Financial Position
($ millions)
Key Balance Sheet
Debt to Capital
Accounts at,
44.0%
12/31/07 9/27/08 39.0%
Cash $354 $466
Other Current Assets 2,362 2,540
Total Assets 6,237 6,523 Q4 2007 Q3 2008
Debt to EBITDA (1)
2.3x
Total Debt $1,569 $1,531
1.9x
Other Current Liabilities 1,837 1,842
1.8x
1.4x
Shareholders' Equity 2,006 2,361
Q4 2007 Q3 2008
Net Leverage Gross Leverage
Consolidated leverage ratios; Net and Gross Debt to EBITDA as defined in the credit facility
(1)
$466m of Cash on Hand at September 27th;
Gross Leverage Ratio Within Target Range of 1.5x to 2.0x EBITDA
PAGE 8
9. Disciplined Capital Allocation
Share Repurchases Strategic Acquisitions
($ millions)
$716
$675
6 acquisitions completed
~$1.2B total revenue
$386
15m
9m
8m
2005 2006 2007
$1.8B of total share
repurchases
Johnson Controls
European Diagnostics
Repurchased more than 40%
of outstanding share count
Disciplined Approach to Capital Allocation
PAGE 9
10. Projected Liquidity
($ millions)
Amount
Cash on hand at 9/27/2008 $466
Expected
Expected cash proceeds from the sale of LDS 102
Sources
2008E free cash flow remaining 242
Available, committed credit lines 400
Total Projected Availability $1,210
Remaining dividend payments ($15)
Required
2008 minimum remaining debt payments (19)
Uses
Working capital management needs (200)
Projected Liquidity $976
Planned
Repurchase 3m shares (based on 11/10 closing stock price of $37.92) ($114)
Use
Projected Liquidity after Share Repurchases $862
Note: Our ability to access these sources under our various facilities may be limited by the terms
of our credit facility and by certain tax regulations that pertain to cash in overseas locations
Over $850m of Projected Liquidity
After Completing Planned Share Repurchases
PAGE 10
11. Changing Economic Environment
% Value Decline
Foreign exchange rates have changed
vs. U.S. Dollar
dramatically, impacting SPX’s 2008
outlook and backlog: 10%
0%
– % decline from June through
November 10th: -10%
-20%
• Euro: (18%)
-30%
• British Pound: (21%)
-40%
J J J Jul- Jul- Jul- Au Au Se Se Se O O
un- un- un- 08 08 08 g- g- p- p- p- ct- ct-
08 08 08 08 08 08 08 08 08 08
EUR GBP ZAR
Banking failures and consolidations have impacted credit availability for
many companies
Global credit crisis has created an uncertain economic environment…
…as a result, capital budgets for 2009 are uncertain
~40% to 45% of SPX’s Revenue is Translated From Foreign Currencies;
PAGE 11 Too Early to Predict How Economic Changes Will Impact SPX Customers in 2009
13. Flow Technology Overview
Key Flow
2007 Flow Technology
Technology Characteristics
Revenue by End Market
Includes Food, Beverage, Dairy,
2008E Revenue: $2b
Pharmaceutical and Personal Care Markets
Strong brands with market leading
Sanitary
41% positions
Power &
Energy
25%
Global sales infrastructure and
distribution
General
Engineered products and turnkey
Industrial
solutions
19%
Compressed
Air Chemical
5% 10%
Operational expertise
Note: Data from continuing operations, 2007 pro forma for APV acquisition; 2008E as of 10/29/2008
About 1/3 of SPX’s Annual Revenue is
Generated from Sales of Flow Technology
PAGE 13
14. APV Overview
2007 Revenue by End Market 2007 Revenue by Geography
Power and
Energy
11%
EMEA
Sanitary
56%
(Dairy, Food, Americas
Beverage) 20%
73%
General
Industrial
16%
Asia-Pacific
24%
APV is a Global Manufacturer of
Process Equipment and Engineered Solutions
PAGE 14
15. Key Sanitary Market Drivers
Dairy Food
Increases in hygienic standards
and regulatory controls
Economic expansion in
developing regions
Beverage Pharmaceutical
Process and business
optimization
Energy efficiency and waste
reduction
Brewing Personal Care
Production of value added or
higher quality produce
Demand for new plants
SPX Has Technologies that Serve the Food, Beverage, Dairy,
Pharmaceutical and Personal Care Manufacturers
PAGE 15
16. Food Processing Market Characteristics
Food Processing Machinery and Attractive End Market
Equipment Global Forecast Characteristics
($ billions)
$45.4
6% CAGR
Regulated market
$43.0
$40.7
Stable
$38.6
Consistent growth
Developing market opportunities
2008E 2009E 2010E 2011E
Source: Food Processing Machinery & Equipment
Global Food Processing Market Projected to
Grow Significantly From 2008E to 2011E
PAGE 16
17. Expected Growth by Region
2001 to 2010E Investment
for Food Processing Machinery and
2007 Global FPME Spend by Region
Equipment by Region
’01 – ’06 ’07 – ’10E EMEA
Region
CAGR CAGR 30%
Asia-Pacific
5.8% 7.1% Asia-Pac
35%
Europe
3.3% 3.3%
0.1% 3.6% US
4.0% 5.6% Latin America
North America
Latin America
18%
ROW 10%
7%
Source: Food Processing Machinery and Equipment Report,
Global Industry Analysts
Investment in Food Processing Machinery
Expected to be Higher in Developing Countries
PAGE 17
18. Typical Sanitary Customers
Power
SPX Serves a Global Customer Base Including
Many of the Leading Food and Beverage Manufacturers
PAGE 18
19. Primary Product Uses
Positive Displacement Pumps: Pump viscous products such as
tomato paste, peanut butter
Centrifugal Pumps: Pump thin fluids for beverage or
clean in place systems
Heat Exchangers: Temperature control for mechanically
separated meats, margarines, icings,
fondants
Valves: Process flow diversion & shut off
Mixers: Dispersion & solid suspension
Diverse Product Portfolio of Customer Engineered Solutions
PAGE 19
20. Sanitary Offerings
2007 Revenue by Type
~70% engineered components
for niche end markets:
– Built to order
Engineered
Components
70%
~30% turnkey and skidded
process systems:
– Engineered, designed and
installed
Process
Systems
30%
Note: Data from continuing operations, pro forma for APV acquisition
SPX Offers Customers Engineered Components,
Skidded Systems and Turnkey Systems
PAGE 20
21. Flow Technology Global Presence Before APV
Strong Presence
Growing Presence
Global Expansion of Manufacturing, Sales and Distribution
Presence Underway Prior to APV Acquisition…
PAGE 21
22. Flow Technology Global Presence Including APV
Strong Presence
Growing Presence
Key APV Additions
APV has increased SPX’s
presence in developing
growth markets:
– China
– Eastern Europe
– South America
– Middle East
– Russia
– South Africa
…Addition of APV’s Global Platform is Expected to
Accelerate SPX Flow Technology’s Global Expansion
PAGE 22
23. APV Integration
Streamline combined global presence
Increase leverage with suppliers on combined spend
Share best manufacturing practices globally:
– Including implementation of “Lean”
Increased localization of manufacturing
Leverage respective distribution markets globally
– Product “pull-through” combined distribution channels
Expect Integration to be Completed During 2010
Projected Annualized Savings of $40m to $60m
PAGE 23
24. Summary
2008E SPX
2005 SPX
Revenue by Segment
Revenue by Segment
Flow
Flow Revenue: Flow Revenue:
Flow
Technology
Technology
$775m ~$2b
33%
21%
Thermal
Thermal
Equipment
Equipment
32%
29%
Test &
Measurement
28%
Test &
Measurement
19%
Industrial
Industrial
Products
Products
19%
19%
Note: Data from continuing operations, 2008E as of 10/29/2008
Flow Technology Revenue has Growth ~160% Since 2005
PAGE 24
25. Current SPX Situation
Targeting growth in Q4 2008:
– Targeting 8% to 10% organic growth
– Targeting 14% to 20% earnings growth
Solid financial position and liquidity:
– Expect to repurchase 3m shares of SPX stock
– Significant flexibility in uncertain economic environment
Reducing cost through APV integration
Evaluating and preparing for 2009
Carefully Monitoring Risks In Uncertain Economic Environment
PAGE 25
28. Balance Sheet
($ millions) 12/31/07 9/27/08 Change
Cash $354 $466 $112
Other Current Assets 2,362 2,540 178
Goodwill 1,930 1,921 (9)
Other Assets 1,591 1,595 4
Total Assets $6,237 $6,523 $286
Other Current Liabilities $1,838 $1,842 $4
Total Debt 1,568 1,531 (37)
Long-Term Liabilities 825 790 (35)
Shareholders' Equity 2,006 2,361 355
Total Liabilities and Shareholders'
$6,237 $6,523 $286
Equity
Debt / Capital Ratio 44% 39%
(1)
LTM EBITDA $663 $772
(1)
Net Debt / EBITDA 1.83x 1.35x
Gross Debt / EBITDA (1) 2.29x 1.89x
(1) As defined in the SPX credit facility
PAGE 28
29. Full Year Financial Model
($ millions, except per share data) 2008E
Guidance
2007 Mid-Point
Revenue $4,677 $6,000
Segment Income Margin 13.1% 13.3%
Corporate overhead (95) (107)
Pension / PRHC (44) (37)
Stock-based compensation (41) (43)
Special charges (5) (16)
Operating Income $428 $598
% of revenues 9.1% 10.0%
Equity Earnings in J/V 40 46
Other Income/(Expense) (5) (7)
Interest Expense (71) (107)
Pre-Tax Income from Continuing Operations $392 $530
Tax Provision (126) (178)
Income from Continuing Operations $266 $352
Tax Rate 32% 34%
Weighted Average Dilutive Shares Outstanding 56 55
EPS from continuing operations $ 4.73 $ 6.45
EPS from businesses discontinued in 2008 $ 0.12
(1)
Adjusted EPS $ 4.85
Adjusted EPS Guidance Range $6.40 to $6.50
EBITDA $ 663 $ 800
Note: Data from continuing operations Adjusted EPS, includes businesses discontinued in 2008, see appendix for reconciliation
(1)
2008E Mid-Point EPS Guidance is $6.45 Per Share
PAGE 29
30. 2008 Full Year Segment Targets
July 30th October 29th Primary
FY Targets FY Targets Drivers for Change
Revenue Growth +91% to 93% +88% to 89% FX fluctuations
Flow
Flow
Operating Margins 11.8% to 12.3% 12.0% to 12.2% Discontinued product line
FX fluctuations
Revenue Growth +11% to 13% +10% to 11%
Thermal
Thermal Strong Q3 margin
Operating Margins 10.6% to 11.1% 11.7% to 11.9%
execution
FX fluctuations,
Revenue Growth +9% to 11% +3% to 4%
Test &
Test & Softness in U.S. market
Measurement
Measurement Operating Margins 10.5% to 11.0% 10.5% to 10.7% Discontinued product line
Revenue Growth +18% to 20% +19% to 20% Strong Q3 operating
Industrial
Industrial execution
Operating Margins 20.2% to 20.7% 20.6% to 20.8%
Note: Data from continuing operations, 2008E as of 10/29/2008
Targets Have Been Adjusted to Reflect Foreign Currency
Fluctuations, Discontinued Operations and Q3 Performance
PAGE 30
31. Re-Stated Quarterly Segment Data
First Quarter Second Quarter Third Quarter Fourth Quarter Full Year
2007 2008 2007 2008 2007 2008 2007 2007
Flow Technology
Revenue $237 $492 $266 $535 $256 $493 $311 $1,070
Segment Income $37 $47 $44 $70 $44 $56 $51 $175
Segment Margins 15.4% 9.5% 16.5% 13.1% 17.2% 11.3% 16.4% 16.4%
Test and Measurement
Revenue $236 $270 $284 $320 $245 $260 $315 $1,080
Segment Income $24 $24 $32 $37 $22 $30 $41 $118
Segment Margins 10.0% 8.9% 11.2% 11.4% 9.0% 11.7% 13.0% 11.0%
Thermal Equipment and Services
Revenue $313 $347 $388 $409 $422 $437 $438 $1,561
Segment Income $16 $36 $38 $46 $57 $52 $52 $163
Segment Margins 5.2% 10.5% 9.8% 11.1% 13.4% 12.0% 12.0% 10.4%
Industrial Products and Services
Revenue $212 $267 $253 $276 $249 $320 $253 $966
Segment Income $26 $54 $34 $57 $44 $70 $52 $156
Segment Margins 12.3% 20.3% 13.5% 20.5% 17.7% 22.0% 20.5% 16.2%
Note: Data from continuing operations
PAGE 31
34. 2008E Organic Revenue Growth Reconciliation
2008E
Net Revenue Acquisitions/ Organic
Foreign
Growth Divestitures Growth
Currency
Consolidated +28% to 29% +19% to 20% +1% to 2% +7% to 8%
Note: Data from continuing operations, 2008E as of 10/29/2008
PAGE 34
35. EBITDA Reconciliations
LTM
Sept.
($ millions) 2006 2007 2008
Revenues $4,313 $4,822 $5,742
Net Income $171 $294 $381
Income tax provision (benefit) 56 90 127
Interest expense 50 77 110
Income before interest and taxes $277 $461 $618
Depreciation and intangible amortization expense 90 83 102
EBITDA from continuing operations $367 $544 $720
Adjustments:
Non-cash compensation expense 38 41 43
Extraordinary non-cash charges 41 14 (9)
Extraordinary non-recurring cash charges 27 7 11
Excess of JV distributions over JV income (12) 2 3
Loss (Gain) on disposition of assets 56 4 (14)
Pro Forma effect of acquisitions and divestitures 53 20
Other 8 0
Adjusted LTM EBITDA from continuing operations $525 $663 $772
Note: EBITDA as defined in the credit facility
PAGE 35
36. Debt Reconciliations
($ millions) 12/31/2007 9/27/2008
Short-term debt $ 254 $ 260
Current maturities of long-term debt 79 76
Long-term debt 1,235 1,194
Gross Debt $ 1,568 $ 1,531
Less: Puchase card program and extended A/P programs $ (58) $ (59)
Adjusted Gross Debt $ 1,510 $ 1,472
Less: Cash in excess of $50m $ (304) $ (416)
Adjusted Net Debt $ 1,206 $ 1,055
Note: Debt as defined in the credit facility
PAGE 36
37. Pro Forma APV Calculation: 2008E
Excluding Including
APV APV APV
SPX Consolidated 2008E
Revenue $5,150 $850 $6,000
Segment Income $762 $38 $800
Segment Margin 14.8% 4.5% 13.3%
Note: Data from continuing operations, 2008E as of 10/29/2008
PAGE 37
38. 2008E Free Cash Flow Reconciliation to GAAP Financial Measures
SPX Corporation and Subsidiaries
Free Cash Flow Reconciliation
(unaudited)
($ millions)
2008E Guidance Range
Net cash from continuing operations $ 440 $ 470
Capital expenditures $ (140) $ (150)
Free cash flow from continuing operations $ 300 $ 320
Note: Data from continuing operations, 2008E as of 10/29/2008
PAGE 38
39. 2008E Adjusted Earnings Per Share
2008E EPS Range
GAAP EPS from continuing operations $6.76 $6.86
Q3 Tax Benefits (0.47) (0.47)
Q3 Legal Settlement (Other Expense) 0.11 0.11
Adjusted EPS from continuing operations $6.40 $6.50
Note: Data from continuing operations, 2008E as of 10/29/2008
Adjusted EPS Presented Consistent with 2008 EPS Guidance
PAGE 39
40. 2007 Adjusted Earnings Per Share
FY 2007
GAAP EPS from continuing operations $5.33
Q3 Tax Benefits (0.34)
Q4 Tax Benefits (0.25)
Q4 Asset Impairment 0.05
Q4 Legacy Legal Matters (Corporate Expense) 0.06
Adjusted EPS from continuing operations $4.85
Note: Data from continuing operations
PAGE 40
41. 2006 Adjusted Earnings Per Share
FY
2006
GAAP EPS from continuing operations $3.74
Q2 Tax Accrual Reversal (0.57)
Q2 VSI Legal Settlement 0.20
Q4 Miscellaneous Tax Benefits (0.28)
Q4 C harges for Legacy Legal Matters 0.07
Loss from operations discontinued in 2007 (0.08)
Adjusted EPS from continuing operations $3.07
Note: Data from continuing operations
PAGE 41
42. 2005 Adjusted EPS Reconciliation
Year ended,
Dec 31, 2005
GAAP net income per share $15.33
Income from discontinued operations (15.61)
SFAS 142 asset impairment 0.96
Loss on early extinguishment of debt 0.96
Normalized tax rate (40%) 0.41
Projected share count (64m) 0.26
Normalized interest expense ($37m) 0.12
Other (1) 0.19
Adjusted earnings per share $2.62
(1)
Includes income from businesses discontinued in the second half of 2005,
other expense relating to FX losses on the repatriation of cash, a one-time
legal settlement at our EGS joint venture and a one-time gain on the sale of
property.
Note: The model above has been presented on the same basis as the annual earnings per share
model presented in SPX’s March 3, 2005 investor presentation
PAGE 42
