JP Morgan Industrial Conference

3rd Annual Basics & Industrials Conference

New York, New YorkJune 4th, 2008

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 April 30, 2008. SPX’s inclusion of estimates and guidance in the presentation is not an update, confirmation, affirmation, or disavowal of the estimates.

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.

SPX Transformation

SPX Growth Strategy

Growth Strategy Established in 2005Underpins 34% CAGR of EPS from 2005 to 2008E

*2005 – 2007 adjusted for certain items, see appendix for reconciliations; 2008E as of April 30, 2008

2005 2006 2007 2008E

Earnings Per Share*

$2.62

$4.85

$3.07

$6.20 to $6.40

Strategic Initiatives

Focus growth on three global end markets

Drive continuous improvement culture

Disciplined approach to capital allocation

Achieve profitable and sustainable long-term growth

17%17% 58%58% ~30%~30%

Focus on Three Global End Markets

Focused Growth Around Three Global End Markets

Global

Infra

struc

ture Process Equipment

Tools & Diagnostics

SPX Operating Initiatives

Operating Initiatives Supporting Growth and Improvement Within SPX

Growth

Improvement

Resources

Emerging Markets

New Product Development

IT Infrastructure

Lean Organization

Supply-Chain Management

Learning and DevelopmentShared

Services

Disciplined Capital Allocation

$675

$386

$716

2005 2006 2007

Disciplined Approach to Capital Allocation

15m

8m9m

Share Repurchases

Johnson Controls European Diagnostics

Strategic Acquisitions

5 acquisitions completed

~$1.2B total revenue

$1.8B of total share repurchases

Average purchase price of $58 per share

Financial Results

The Transformation of SPX is Clearly Reflected in Our Improving Financial Performance

*Excludes dilutive impact of APV

Segment Income Margins

11.1%

12.1%

13.5% to 14.0%*

13.0%

6% 10% ~5-7%10%

Revenue GrowthOrganic growth

($ millions)

2005 2006 2007 2008E

$3,658$4,097

$4,747

$6,175

2005 2006 2007 2008E

12.4% to 12.9%

Including APV

Note: Data from continuing operations; 2008E as of 4/30/2008; See appendix for non-GAAP reconciliations

Positioned for Future Growth

SPX Well Positioned for Future Growth

ROW4%

North America

49%

Asia-Pacific15%

Europe32%

> 50% of Revenue Generated Outside North America;> 50% of Revenue Supports Global Infrastructure Growth

Revenue by Geography Revenue by End Market

General Industrial

13%

Global Infrastructure

53%

Sanitary Flow14%

Tools & Diagnostics

20%

Key External Market Drivers

Global Growth Providing Opportunities for SPX

Global Infrastructure

Process Equipment

Tools & D

iagnostics

Growing world population

Advancement of developing countries

Increasing demand for power and energy

Increasing demand for processed food and beverages

Government regulations

Increasing environmental awareness

$562$640

$763

$348

$731$799

$1,217$1,254

$1,401

Q12007

Q42007

Q12008

Q12007

Q42007

Q12008

Q12007

Q42007

Q12008

Backlog Development

Strong Global Demand for Power and Energy InfrastructureAnd Process Equipment Driving Backlog Increases

Thermal($ millions)

Note: Data from continuing operations

FlowIndustrial

~3 Months Visibility

~9 MonthsVisibility

> 1 Year Visibility

Global Energy Infrastructure Investment

$22 Trillion Estimated to be Spent on Energy Infrastructure From 2006 Through 2030

Coal3%

Power53%

Gas19%

Oil25%

$5.4 trillion

$11.6 trillion

Cumulative Expected Investment in Energy Infrastructure, 2006 - 2030

Source: WEO 2007 Copyright OECD/IEA, 2007; Table 1.9, page 95 , as modified by SPX Corporation

$4.3 trillion

Investment in Power and Energy Infrastructure by Region

Perfect Storm of Aging Infrastructure in Developed Countries andRising Demand for Electricity Throughout the World

$5t

$2t $2t

$2t

$2t

$3t$4t

$1t

Source: WEO 2007 Copyright OECD/IEA, 2007; Figure 1.13, page 96, as modified by SPX Corporation

Fuel Source Debate

South Africa Represents a Significant Opportunity for SPX

Fuel Source

Abundant, less expensive

Easy to transport

Easy to transport, low pollution rate

Zero CO2 emissions, low fuel cost

Zero CO2 emissions, free inputs

Positive Factors Negative Factors

High emissions, CO2 storage concerns

Availability, inflating price, CO2 emissions

Availability, inflating price, CO2 emissions

High initial capital cost, long-term waste

Low energy density, reliability concerns

SPX Power and Energy Opportunities

SPX Technologies Serve Customers Across Many Global Power and Energy Applications

Coal Nuclear Solar T&DOil &

Natural Gas

Biofuels Petrochemicals Refinement Mining and Minerals

SPX Power and Energy Initiatives

Focused on Maximizing Global Power & Energy Opportunities

Profitability improvement

Geographic expansion

New product development

Customer relationships

Increase capacity & optimize global footprint

Strengthen engineering capabilities

$1,495

$1,965

2006 2007

Power & Energy Revenue SPX Focus

SPX New Product Development: Squib Valves for Nuclear Plants

SPX Designed Squib Valves Supporting Nuclear Power Growth

SPX contracted in 2007 to design and engineer squib valves for Westinghouse

US Department of Energy funded 50% of the design fees

Critical component for the AP1000 nuclear plant design

Expect deployment in the US and Asia

SPX Squib Valve

Permits the rapid exit of fluid from a pressurized fluid source

SPX Leading Technology: Crystal Growers for Solar Power

SPX Has Leading Technology with Global Reach;~$90m in Orders Received Within the Past Year

0

2

4

6

8

10

12

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Gig

aWat

ts

MonocrystallineDemand Projection SPX Crystal Growers

Source: ?

South African Power Market

South Africa Represents a Significant Opportunity for SPX

Reserve margin below 10%

Economic growth driving increased electricity demand

Government committed to double generating capacity to 80gw over the next decade

Eskom targeting ~70% of South Africa’s new capacity

Electricity Demand vs.Installed Capacity

Current installed capacity is 38,000 MW

Peak demand expected to reach 55,000 MW by 2022

Source: www.eskom.com

Previous SPX Projects in South Africa

SPX has Significant Demonstrated Experience in South Africa

Kendal Power Station (1993) Majuba Power Station (2000)

Size: 4,116 MW Size: 2,100 MW

Eskom’s Coal-Fired Power Generation Expansion

Eskom’s Expected Investment in Energy Infrastructure Represents a Significant Long-Term Opportunity for SPX

Province: Limpopo

Size: 4,800 MW

Source: Coal

Medupi

Province: Mpumalanga

Size: 4,740 MW

Source: Coal

Project Bravo

Approved Capacity Expansions Project Pipeline

Project Delta: 2,200 MW

Project Echo: 1,000 MW

Project Charlie: 2,100 MW

Project Golf: 4,200 MW

Project Foxtrot: 4,200 MW

Coal Plants

Source: Eskom Presentation: Overview of Eskom Future Generation Options

SPX Presence in South Africa

SPX is Committed to Providing Critical Components to Help South Africa Expand its Power Capacity

SPX Located inNigel, South Africa

X

SPX established in South Africa in 1970

Currently ~210k square feet of manufacturing capacity:

Planning additional capacity expansion of ~100k square feet

Employing local labor for manufacturing

25.1% BEE minority shareholder

Process Equipment

APV Impact on Process Equipment End Markets

APV Acquisition Increases SPX’sExposure to Global Sanitary Flow Market

Chemical17%

Compressed Air8%

Power & Energy35%

General Industrial

22%

Sanitary18%

Including APV

2007 Revenue by End Market

Note: Data from continuing operations.

Chemical10%

Compressed Air5%

Sanitary41% Power &

Energy25%

General Industrial

19%

Excluding APV

SPX Sanitary Flow Overview

APV Acquisition Provides SPX Critical Mass Needed toCompete in Global Sanitary Flow Market

SPX Strengths

Note: Data from continuing operations; 2008E as of 4/30/2008.

$200

~$875

2007 2008E

Sanitary Flow Revenue

Custom engineered solutions

Brand leadership

Global presence

Cross channel leverage

New product development

SPX Sanitary Flow Products

Full Line of Product Offerings

Positive Displacement Pumps Centrifugal Pumps

Mixers

Homogenizers

Valves

Process Regulating Butterfly

Heat Exchangers

SPX Sanitary Flow Opportunities

SPX has Technologies that Serve Customers Across Many Global Sanitary Applications

Processed Food Beverage

Dairy

Brewing

Pharmaceutical Personal Care

Global Food and Beverage Market

Investment in Food Processing Machinery Expected to be Higher in Developing Countries

2001 to 2010E Investmentfor Food Processing Machinery and

Equipment by Region

Source: Food Processing Machinery and Equipment Report, Global Industry Analysts, Inc. 2006

’01 – ’06CAGR

5.8%

3.3%

0.1%

4.0%

Region

Asia-Pac

Europe

US

Latin America

’07 – ’10ECAGR7.1%

3.3%

3.6%

5.6%

Regulated market

Stable

Accelerating growth

Developing market opportunities

Attractive End MarketCharacteristics

APV Integration Update

Expect APV to be Neutral to Slightly Accretive in 2008;Targeting Greater than 25 Cents EPS Accretion in 2009

Gross margins on component sales >30%

Transitioning from “cost center” to “profit center”organization

Optimizing global footprint

Synergizing distribution channels

Operating Margin OpportunityAPV Margin Development

2.2%3.6%

~5.0%

16.0%

APV FY2007

APV Q12008*

APV FY2008E

SPX Avg.Process

EquipmentMargins

*Excludes $7.5m inventory charge related to purchase accounting

Diagnostic Tools

Primary Diagnostic Tools and Service Offerings

32

VehicleRepair Manuals,Wiring Diagrams

Repair Labor Time Studies & Warranty Reduction Initiatives Technology Based

Applications for Content Creation Management & Delivery

Training Development& Delivery

Field Surveys, Investigations & Training Programs

Dealer Equipment and Services

Dealer Facility Design

OEM Essential Service Tool Programs

Aftermarket Electronic Diagnostic Tools

Aftermarket Specialty Tools & EquipmentOEM

Electronic Diagnostic Tools

Managed Program Provider to Support Customer Service Readiness

ToolsTechnical

Information

DES

Only Global Provider with a Full Line of Products and Services for the Transportation Industry

Regional Market Trends

US Market Remains Challenging in the Near Term;International Markets are Growing

US remains challenging:No significant new model introductions expected until 2009

Soft aftermarket

Europe providing growth:SPX growing globally with European OE’s

2007 acquisitions performing well

Investing in Asia-Pacific:Future growth market

Diagnostic Tools Evolving Global Presence

ROW1%

North America78%

Asia-Pacific6% Europe

15%

Expect Globalization to Continue


2005 Revenueby Geography

2007 Revenueby Geography

ROW1%

North America59%

Asia-Pacific8%

Europe32%

SPX Diagnostic Tools Strategic Initiatives

Positioning for Global Growth;Strategic Plan on Track

Restructure US cost base:Closed facility in Owatonna, MN (2007-2008)

Announced intent to close facility in Cleveland, OH (2008)

Expand international operations:Increase global OE customer base: BMW, Volkswagen, Renault

European acquisitions: CarTool, JCID, Matra

Investment in China: Engineers, Sales, R&D

$0$2$4$6$8

$10$12$14$16$18$20

1995 2000 2005 2010 2015 2020 2025 2030

Overtake Japan Sales

Overtake US Sales

Source: WEO 2007 Copyright OECD/IEA, 2007; Figure 9.6, page 300, as modified by SPX Corporation

($ billions)

Projected New Car Sales in China

Renault Case Study: As Renault Grows…

Renault Continues to Expand into New Markets

Renault focused on growing in emerging markets:

Brazil, India, Russia, Korea, Romania and Morocco

Targeting 37% of sales outside Europe by 2009 by:

Expanding product line

Designing new vehicles for specific markets

35% of RenaultSales Outside Europe

Globalization of Renault

…SPX Grows With Renault

Roll out of diagnostic platform: SPX providing sales and service to 15,000 dealers globally

SPX’s Ability to Provide Sales, Distribution and Service in EmergingMarkets is Critical to Our Customers’ Global Success

SPX Tools & Diagnostics New Products

New Product Launches Expected to Drive Future Growth

Next GenerationGlobal Diagnostic Tool

DT-500Chinese Scan Tool

Launched Q4 2007 Expected to Launch Summer of 2008

SPX Well Positioned for Continued Growth

SPX Well Positioned for Future Growth in GlobalInfrastructure, Process Equipment and Tools & Diagnostics Markets

Global Infra

structu

re Process Equipment

Tools & Diagnostics

2005 2006 2007 2008E

…Driving Earnings Growth*

$2.62

$4.85

$3.07

$6.20 to $6.40

17%17% 58%58% ~30%~30%

Three Global Growth Markets…

*2005 – 2007 adjusted for certain items, see appendix for reconciliations; 2008E as of April 30, 2008

Questions

Appendix

Q1 2008 Highlights

Q1 2008

Note: Data from continuing operations, see appendix for non-GAAP reconciliations

Comments($ millions, except per share data)

Earnings Per Share

Revenue

Organic Growth

Segment Income Margin

$1.14 +115%

$1,393 +37%

7% Power & Energy Market Strength

11.6% +140 points

Significant Earnings Growth in Q1

2008 Q2 Targets

20% to 26% Earnings Growth Expected in Q2

($ millions, except per share data)Q2 2008E

Revenue $1,208 +28% to 30% +9% to 11%

Segment Income $ $149 $189 to $195

Segment Income % 12.4% 12.2% to 12.6% 13.8% to 14.0%+140 to 160 pts

EPS $1.25 $1.50 - $1.57

Note: Data from continuing operations; 2008E as of 4/30/2008

Q2 2007

+27% to 31%+27% to 31%

~ Flat~ Flat

+20% to 26%+20% to 26%

Excluding APV

2008 Financial Targets

Targeting 27% to 32% Revenue Growth and 28% to 32% Earnings Growth

2008ETarget Range

Revenue

Segment Income Margin

Excluding APV

Earnings Per Share

Free Cash Flow

Capital Spending

Note: Data from continuing operations; see appendix for non-GAAP reconciliations; 2008E as of 4/30/2008

Comments+27% to 32% Organic: 5% to 7%

12.7% to 13.2% ~flat

13.8% to 14.3% +80 to 130 bps

$6.20 to $6.40 28% to 32% (1)

$260 to $300 75% to 85% of NI

$140 to $150 Capacity, Lean & IT Investments

($ millions, except per share data)

(1) As compared to 2007 adjusted EPS

Full Year Financial Model($ millions, except per share data)

2008E Mid-Point EPS Guidance is $6.30 Per Share

(1)

2007

2008E Guidance Mid-Point

Revenue $4,822 $6,175Segment Income Margin 12.9% 12.9%

Corporate overhead (95) (102) Pension / PRHC (44) (39) Stock-based compensation (41) (46) Special charges (8) (15) Operating Income $435 $594 % of revenues 9.0% 9.6%

Equity Earnings in J/V 40 46 Other Income/(Expense) (5) (5) Interest Expense (71) (110) Pre-Tax Income from Continuing Operations $399 $526Tax Provision (126) (181) Income from Continuing Operations $273.1 $344

Tax Rate 32% 35%Weighted Average Dilutive Shares Outstanding 56 55

EPS from continuing operations 4.85$ 6.30$

Guidance Range $6.20 to $6.40

EBITDA 663$ 840$ Note: Data from continuing operations; see appendix for non-GAAP reconciliations; 2008E as of 4/30/2008

Expected APV Impact

Revenue: ~3-5% revenue growth ($885m to $900m)

Operating margin: ~5%

Interest expense: ~$40m

Cash restructuring $30m to $50m

Capital spending: ~$15m

Depreciation expense: ~$15m

2008E APV Financial Modeling Targets

Expect APV Acquisition to Dilute Consolidated Margin Performance;Neutral to Slightly Accretive Impact to EPS

Note: Quarterly results may vary

Pro Forma APV Calculation

Base Flow Segment APV

Purchase Accounting

Pro Forma Flow

SegmentQ1 2007

Revenue $251 $248 $499Segment Income $38 $9 $47Segment Margin 15.0% 3.5% 9.3%

Q1 2008Revenue $277 $227 $0 $504Segment Income $45 $8 ($8) $46Segment Margin 16.4% 3.6% na 9.1%


Pro Forma Calculation

RevenueSegment Income

Segment Margin

2007SPX $4,747 $616 13.0%

APV $876 $19 2.2%

Pro Forma SPX $5,623 $635 11.3%

2008E

SPX $5,165 - $5,350 13.8% to 14.3%

APV $885 - $900 ~5%

Total SPX $6,050 - $6,250 12.7% to 13.2%

2008E

SPX Flow Technology 16.3% to 16.8%

APV ~5%

Total SPX Flow Technlogy 11.5% to 12.0%


Re-Stated Quarterly Segment Data


2006 2007 2006 2007 2006 2007 2006 2007 2006 2007

Flow Technology Revenue $194 $251 $215 $278 $212 $269 $244 $323 $866 $1,121 Segment Income $28 $38 $34 $45 $34 $45 $37 $50 $133 $177 Segment Margins 14.3% 15.0% 15.9% 16.0% 16.2% 16.8% 15.2% 15.4% 15.4% 15.8%

Test and Measurement Revenue $242 $240 $270 $289 $260 $250 $296 $320 $1,067 $1,098 Segment Income $22 $24 $40 $33 $42 $23 $46 $41 $150 $120 Segment Margins 9.3% 9.9% 14.7% 11.3% 16.3% 9.2% 15.6% 12.7% 14.1% 10.9%

Thermal Equipment and Services Revenue $275 $313 $300 $388 $322 $422 $431 $438 $1,328 $1,561 Segment Income $12 $16 $15 $38 $34 $57 $50 $52 $111 $163 Segment Margins 4.4% 5.2% 4.9% 9.8% 10.7% 13.4% 11.7% 12.0% 8.4% 10.4%

Industrial Products and Services Revenue $196 $212 $207 $253 $206 $249 $227 $253 $837 $966 Segment Income $19 $26 $22 $34 $25 $44 $33 $52 $99 $156 Segment Margins 9.6% 12.3% 10.8% 13.5% 11.9% 17.7% 14.6% 20.5% 11.8% 16.2%

Full YearFirst Quarter Second Quarter Third Quarter Fourth Quarter

Non-GAAP Reconciliations

Organic Revenue Growth Reconciliation

Net Revenue Acquisitions Organic Growth/(Decline) and Other Growth/(Decline)

2005 6.2% 0.5% 0.0% 5.7%

2006 11.8% 1.4% 0.7% 9.7%

2007 15.7% 3.2% 2.7% 9.8%

2008E 27% - 32% 20% - 22% 2% - 3% 5% - 7%

Foreign Currency

Note: Data from continuing operations; 2008E as of 4/30/2008

2007 Adjusted Earnings Per Share

Adjusted EPS Presented Consistent with 2007 EPS Guidance


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

2006 Adjusted Earnings Per Share

FY 2006

GAAP EPS from continuing operations $3.65

Q2 Tax Accrual Reversal (0.57)

Q2 VSI Legal Settlement 0.20

Q4 Miscellaneous Tax Benefits (0.28)

Q4 Charges for Legacy Legal Matters 0.07

Adjusted EPS from continuing operations $3.07

2005 Adjusted EPS Reconciliation

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

GAAP net income per share $15.33

Income from discontinued operations (15.61)SFAS 142 asset impairment 0.96Loss on early extinguishment of debt 0.96Normalized tax rate (40%) 0.41Projected share count (64m) 0.26Normalized interest expense ($37m) 0.12Other (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.

Year ended, Dec 31, 2005

JP Morgan Industrial Conference

Economy & Finance

Transcript of JP Morgan Industrial Conference