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.
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
4. Changing Economic Environment
% Value Decline
Foreign exchange rates have changed
vs. U.S. Dollar
dramatically, impacting SPX’s 2008
outlook and backlog: 10%
– % decline from June through October: 0%
• Euro: (18%) -10%
• British Pound: (18%) -20%
• Zar: (28%) -30%
-40%
Jun-08 Jul-08 Aug-08 Sep-08 Oct-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
Recent Foreign Exchange Fluctuations Have Impacted SPX’s 2008 Outlook;
Too Early to Predict How Economic Changes Will Impact SPX Customers in 2009
PAGE 4
5. Q3 Financial Highlights
($ millions, except per share data)
Q3 2007 Q3 2008 2008 Comments
GAAP Earnings Per Share $1.74 $2.01 +16%
Adjusted Earnings Per Share (1) $1.39 $1.66 +19%
Revenue $1,172 $1,510 6.5% organic growth
Segment Income Margin 14.2% 13.8% 120 points of margin
expansion excluding APV
Free Cash Flow $30 $71 Improved operating
income and working capital
Q3 2007 EPS excludes $0.35 of tax benefits, Q3 2008 excludes $0.47 of tax benefits and a $0.11 legal charge
(1)
Note: Data from continuing operations; See appendix for non-GAAP reconciliations
6.5% Organic Revenue Growth;
19% Adjusted Earnings Growth
PAGE 5
6. YTD Financial Highlights
($ millions, except per share data)
YTD 2007 YTD 2008 2008 Comments
GAAP Earnings Per Share $3.43 $4.86 +42%
Adjusted Earnings Per Share (1) $3.10 $4.49 +45%
Revenue $3,361 $4,426 6% organic growth
Segment Income Margin 12.4% 13.1% 240 points of margin
expansion excluding APV
YTD 2007 EPS excludes $0.33 of tax benefits, YTD 2008 excludes $0.47 of tax benefits and a $0.11 legal charge
(1)
Note: Data from continuing operations; See appendix for non-GAAP reconciliations
6% Organic Revenue Growth;
45% Adjusted Earnings Growth
PAGE 6
7. SPX Global End Markets
Pro Forma Revenue
Q4 2008E Organic
by End Market
Growth Expectations
Global
Infrastructure
53% HVAC,
Telecom,
Other
Power & Energy
20%
Power &
Energy
Tools &
33%
Diagnostics
20%
Sanitary
General Sanitary
Industrial 14%
(Food, Beverage, Dairy, Pharma
13%
and Personal Care Markets)
General Industrial
Pro Forma Revenue
by Geography
HVAC, Telecom, Other
North America
49%
Tools & Diagnostics
Europe
32%
Double Digit Mid-Single Digit Single Digit
ROW
Asia-Pacific Flat
4%
Growth Growth Decline
15%
Note: 2007 data from continuing operations, pro forma for APV acquisition
Targeting Q4 Organic Growth Between 8% and 10%;
Tools & Diagnostics Declining
PAGE 7
8. Backlog Development
($ 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 8
9. Recent Strategic Actions
Discontinued 2 non-core product lines:
– Flow product line: ~$50m in annual sales
– Test and Measurement product line: ~$20m in annual sales
Signed definitive agreement to sell LDS, our vibration testing and data
acquisition equipment business, for ~$102m:
– Expect to complete the sale by the end of 2008
Acquired Autoboss:
– Chinese-based manufacturer of diagnostic tools and equipment
– ~$10m in annual sales
APV integration progressing:
– Targeting headcount reduction of ~500 people
Announced 10b5-1 share repurchase plan:
– Plan becomes active on November 3, 2008 and is designed to facilitate the
repurchase of up to 3 million shares
Continue to Execute Long-Term Strategy;
Consistent Approach to Capital Allocation
PAGE 9
10. Financial Position
($ 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)
$466m of Cash on Hand at September 27th;
PAGE 10 Gross Leverage Ratio Within Target Range of 1.5x to 2.0x EBITDA
15. Flow Technology: Q3 Financial Results & Q4 Targets
($ millions)
Q3 Revenue and Q4E Revenue and
Segment Income Margins Segment Income Margins
92%
92%
+58%
$493
to 61%
$311
$256
14.2% to
16.4%
14.5%
17.2%
11.3%
Q3 2007 Q3 2008 Q4 2007 Q4 2008E
83% acquisition growth from APV: APV acquisition expected to drive top-
line growth:
APV margin dilution: 550 points
Cost reduction actions expected to
8% organic growth:
benefit margins
Strong power, oil and gas and
Expect mid-single digit organic growth
dehydration sales
Negative foreign currency impact
Shipping delays caused by Hurricane
Note: Data from continuing operations; see appendix for non-GAAP reconciliations
8% Organic Growth in Q3;
APV Q3 Margin Dilution: 550 Points
PAGE 15
16. Thermal Equipment and Services: Q3 Financial Results & Q4 Targets
($ millions) Q3 Revenue and Q4E Revenue and
Segment Income Margins Segment Income Margins
+18%
4%
4% to 22%
$437
$422 $438
12.6% to
13.4%
13.1%
12.0%
12.0%
Q4 2007 Q4 2008E
Q3 2007 Q3 2008
2% organic decline: Targeting double-digit organic growth
Uneven nature of infrastructure projects
Negative foreign currency impact
Lower China sales
28% organic growth in Q3 2007
Expect 60 to 110 points of margin
5% foreign exchange benefit expansion
Lower mix of higher margin dry cooling sales
Note: Data from continuing operations; see appendix for non-GAAP reconciliations
2 Percent Organic Revenue Decline in Q3;
Targeting Double Digit Organic Revenue Growth in Q4
PAGE 16
17. Test and Measurement: Q3 Financial Results & Q4 Targets
($ millions) Q3 Revenue and Q4E Revenue and
Segment Income Margins Segment Income Margins
$315
6%
6%
(13%) to
(17%)
$260
$245
13.0%
11.7%
10.2% to
10.5%
9.0%
Q4 2007 Q4 2008E
Q3 2007 Q3 2008
7% acquisition growth: JCD & Matra Challenging US tools and
diagnostics market
3% organic decline:
– Weak U.S. market volume Reduced volume of OE programs
in Q4 2008 vs. Q4 2007
270 points of margin expansion:
Negative foreign currency impact
– $7m write-off in Q3 2007
Note: Data from continuing operations; see appendix for non-GAAP reconciliations
US Tools and Diagnostics Market Remains Challenging;
Expect Double-Digit Revenue Decline in Q4
PAGE 17
18. Industrial Products and Services: Q3 Financial Results & Q4 Targets
($ millions) Q3 Revenue and Q4E Revenue and
Segment Income Margins Segment Income Margins
$320 29%
29% +13%
to 17%
$253
$249
22.0%
19.5% to
20.5%
17.7%
19.7%
Q3 2007 Q3 2008 Q4 2007 Q4 2008E
28% organic growth: Targeting double-digit organic
growth in Q4
Strong sales for transformers and crystal
growers
60% increase in segment income
430 points of margin expansion
Note: Data from continuing operations; see appendix for non-GAAP reconciliations
28% Organic Revenue Growth and
22% Segment Income Margins in Q3
PAGE 18
19. 2008 Q4 Targets
Q4 2007 Q4 2008E
($ millions, except per share data)
Organic Growth
Revenue $1,316 +18% to 22% +8% to 10%
Segment Income $ $196 $220 to $230
+12% to 17%
+12% to 17%
Excluding APV
Segment Income % 14.9% 14.1% to 14.3% 14.8% to 15.0%
(60) to (80) bps
(60) to (80) bps
EPS $1.67 (1) $1.90 - $2.00
(1) Adjusted EPS, see appendix for reconciliation
+14% to 20%
+14% to 20%
Note: Data from continuing operations
14% to 20% Earnings Growth Expected in Q4
PAGE 19
20. 2008 Full Year Segment Targets
July 30th October 29th Primary
FY Targets FY Targets Drivers for Change
Revenue Growth +91% to 93% +88% to 89% FX fluctuations
Flow
Flow
Operating Margins 11.8% to 12.3% 12.0% to 12.2% Discontinued product line
FX fluctuations
Revenue Growth +11% to 13% +10% to 11%
Thermal
Thermal Strong Q3 margin
Operating Margins 10.6% to 11.1% 11.7% to 11.9%
execution
FX fluctuations,
Revenue Growth +9% to 11% +3% to 4%
Test &
Test & Softness in U.S. market
Measurement
Measurement Operating Margins 10.5% to 11.0% 10.5% to 10.7% Discontinued product line
Revenue Growth +18% to 20% +19% to 20% Strong Q3 operating
Industrial
Industrial execution
Operating Margins 20.2% to 20.7% 20.6% to 20.8%
Note: All data from continuing operations
Targets Have Been Adjusted to Reflect Foreign Currency
Fluctuations, Discontinued Operations and Q3 Performance
PAGE 20
21. 2008 Financial Targets and Updated Guidance
2008
Target Range
($ 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; see appendix for non-GAAP reconciliations
Targeting 7% to 8% Organic Growth and
More Than 30% Earnings Growth in 2008
PAGE 21
22. 2008 Guidance
Potential
2008 EPS Guidance Upsides/Downsides
Additional foreign currency
Previous:
fluctuations
$6.40 to $6.60
Short-cycle end market
developments
Current:
$6.40 to $6.50 Project timing
APV integration
Effective tax rate change
Note: Data from continuing operations; see appendix for non-GAAP reconciliations
Updated 2008 EPS Guidance Range of $6.40 to $6.50;
Free Cash Flow Guidance Range Unchanged at $300 to $320
PAGE 22
24. Free Cash Flow
($ millions)
1st Nine Months Full Year
Free Cash Flow Free Cash Flow
$300 to
$320
$313
$88
$68
(1)
YTD Sept. 2007 YTD Sept. 2008 2007 2008E
(1) Includes $30m to $50m of cash restructuring for the APV acquisition and elevated capital spending of $140m to $150m
Note: See appendix for non-GAAP reconciliations
Strong Q4 Expectations Consistent with Last Year
PAGE 24
25. Debt Structure
($ millions)
Debt Maturity Schedule
Outstanding Debt (1)
Term loan $712
Part of Global
Domestic revolver $130 $500
Credit Facility $486
Global revolver $0
7.625% Senior Notes $500
7.50% Senior Notes $28 $190
6.25% Senior Notes $21 $75
$75
$19 $28
(2)
A/R Securitization $70
Q4 2009 2010 2011 2012 2013 2014
Other indebtedness $69 2008
Total debt $1,531
(1) As of 9/27/2008
(2) One year term
Minimal Debt Repayment Requirements for the Next 2 Years
PAGE 25
26. Projected Liquidity
($ 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 10/28 closing stock price of $43.88) ($132)
Use
Projected Liquidity after Share Repurchases $844
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 $800m of Projected Liquidity
After Completing Planned Share Repurchases
PAGE 26
28. Current SPX Situation
Exceeded Q3 2008 earnings per share guidance
Targeting growth in Q4 2008:
– Targeting 8% to 10% organic growth
– Targeting 14% to 20% earnings growth
Solid financial position and liquidity:
– Expect to repurchase 3m shares of SPX stock
– Significant flexibility in uncertain economic environment
Reducing cost through APV integration
Evaluating and preparing for 2009
Carefully Monitoring Risks In Uncertain Economic Environment
PAGE 28
41. Q3 Free Cash Flow Reconciliation to GAAP Financial Measures
SPX Corporation and Subsidiaries
Free Cash Flow Reconciliation
(unaudited)
($ millions)
Q3 2007 Q3 2008
Net cash from continuing operations $ 48 $ 104
Capital expenditures $ (19) $ (33)
Free cash flow from continuing operations $ 30 $ 71
PAGE 41
42. Nine Months Free Cash Flow Reconciliation to GAAP Financial Measures
SPX Corporation and Subsidiaries
Free Cash Flow Reconciliation
(unaudited)
($ millions)
Nine Months Nine Months
Ended Septem ber Ended Septem ber
2007 2008
Net cash from continuing operations $135 $147
Capital expenditures ($47) ($79)
Free cash flow from continuing operations $88 $68
PAGE 42
43. Full Year Free Cash Flow Reconciliation to GAAP Financial Measures
SPX Corporation and Subsidiaries
Free Cash Flow Reconciliation
(unaudited)
($ millions)
2006 2007
Net cash from continuing operations $ 49 $ 404
Capital expenditures $ (56) $ (91)
Free cash flow from continuing operations $ (7) $ 313
Interst paid on LYONS repurchase $ 84
Taxes paid on LYONs tax recapture $ 91
Adjusted free cash flow from continuing operations $ 168
FCF from operations discontinued in 2007 $ 15
Adjusted free cash flow as reported 2/28/2007 $ 183
PAGE 43
44. 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
PAGE 44
45. 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 $772
Note: EBITDA as defined in the credit facility
PAGE 45
46. Debt Reconciliations
($ 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 46
