global infrastructure x process equipment x diagnostic tools




                       2008 Q4 and Full Year Results
    ...
Forward-Looking Statements
 Certain statements contained in this presentation that are not historical facts, including an...
Introduction
                       global infrastructure x process equipment x diagnostic tools




                     ...
Q4 2008 Financial Results

($ millions, except per share data)
                                                           ...
2008 Financial Results

($ millions, except per share data)
                                                              ...
2008 Strategic Highlights

           APV integration on track


           Continued progress on non-core disposals:
  ...
Capital Structure

                       December 31, 2008                                                             Ke...
2009 Full Year Guidance

         Earnings Per Share:                                                             Free Cas...
Q4 and Full Year 2008
                            Financial Results
                       global infrastructure x process...
Adjusted Earnings Per Share



                                                               Q4 2008           FY 2008


...
Q4 Adjusted Earnings Per Share

Q4 Adjusted Earnings Per Share                                                         Yea...
Q4 Consolidated Results

                          Revenue                                                        Segment ...
Full Year Earnings Per Share

        Full Year Earnings Per Share                                                 Year-Ov...
2008 Consolidated Results
    ($ millions)

                           Revenue                                            ...
Segment Analysis
                       global infrastructure x process equipment x diagnostic tools




                 ...
Flow Q4 Financial Results
($ millions)

                    Q4 Revenue                                                    ...
Flow 2008 Full Year Results
($ millions)
                                                                                 ...
Thermal Q4 Financial Results
($ millions)

                    Q4 Revenue                                                 ...
Thermal 2008 Full Year Results
($ millions)
                                                                              ...
Test and Measurement Q4 Financial Results
($ millions)

                    Q4 Revenue                                    ...
Test & Measurement 2008 Full Year Results
                         Annual Revenue
                                        ...
Industrial Q4 Financial Results
    ($ millions)

                        Q4 Revenue                                      ...
Industrial 2008 Full Year Results
($ millions)
                      2008 Quarterly Backlog                               ...
Equity Earnings
($ millions)




                 Q4 Equity Earnings                             Full Year Equity Earnings...
2008 Free Cash Flow
                                 and Capital Allocation
                       global infrastructure x...
Free Cash Flow
($ millions)

               Q4 Free Cash Flow                                                    Full Year...
Capital Allocation
                                                                                2-Year
 ($ millions)

 ...
2009 Financial Targets
                       global infrastructure x process equipment x diagnostic tools




           ...
2009 Financial Targets

                                                                        2009
                     ...
2009 Q1 Targets
($ millions, except per share data)

                                                         Q1 2008     ...
Executive Summary
                       global infrastructure x process equipment x diagnostic tools




                ...
Backlog

                                                                                                                1...
SPX Global End Markets
                                                                                                 Or...
Current SPX Situation

   2009 EPS Guidance: $5.40 to $5.80 per share


   Solid financial position and liquidity:
     ...
Questions
                       global infrastructure x process equipment x diagnostic tools




                        ...
Appendix
                       global infrastructure x process equipment x diagnostic tools




                         ...
Full Year Mid-Point Target Financial Model
                                                                               ...
Re-Stated Quarterly Segment Data




                                        First Quarter   Second Quarter    Third Quart...
Pro Forma APV Calculation



                                             Excluding          Including
                   ...
Pro Forma APV Calculation



                                             Excluding          Including
                   ...
Non-GAAP Reconciliations
                          global infrastructure x process equipment x diagnostic tools




COMPAN...
2008 Adjusted Earnings Per Share




                                                               Q4 2008           FY 2...
2007 Adjusted Earnings Per Share


                                                                        Q4
            ...
Q4 2008 Organic Revenue Growth Reconciliation




                                              Quarter Ended December 31,...
2008 Organic Revenue Growth Reconciliation




                                              Year Ended December 31, 2008
...
Free Cash Flow Reconciliation to GAAP Financial Measures


                                SPX Corporation and Subsidiarie...
2009E Free Cash Flow Reconciliation


                           SPX Corporation and Subsidiaries
                        ...
EBITDA Reconciliations




      ($ millions)                                                        2008     2009E

     ...
Debt Reconciliations




           ($ millions)                                 12/31/2007    12/31/2008


 Short-term de...
50
Upcoming SlideShare
Loading in …5
×

SPX Corporation 4th Quarter and Full Year 2008 Results

502 views

Published on

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
502
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
9
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

SPX Corporation 4th Quarter and Full Year 2008 Results

  1. 1. global infrastructure x process equipment x diagnostic tools 2008 Q4 and Full Year Results where a sound approach meets new challenges global infrastructure x process equipment x diagnostic tools February 25, 2009 1 COMPANY CONFIDENTIAL
  2. 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 changes in the economy, our international operations, legal and regulatory risks, cost of raw materials, pricing pressures, pension funding requirements, and integration of acquisitions. 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. 2
  3. 3. Introduction global infrastructure x process equipment x diagnostic tools February 2009 COMPANY CONFIDENTIAL
  4. 4. Q4 2008 Financial Results ($ millions, except per share data) Q4 2008 Comments Adjusted Earnings Per Share $2.06 +21% (1) Revenue $1,508 7% organic growth Segment Income Margin 15.0% +90 points excluding APV Free Cash Flow $214 Capital spending: $40 (1) As compared to Q4 2007 adjusted EPS of $1.70 Note: Data from continuing operations; see appendix for non-GAAP reconciliations 7% Organic Revenue Growth; 4 21% Adjusted Earnings Per Share Growth
  5. 5. 2008 Financial Results ($ millions, except per share data) 2008 Comments Adjusted Earnings Per Share $6.53 +35% (1) Revenue $5,856 6% organic growth Segment Income Margin 13.7% +200 points excluding APV Free Cash Flow $288 Capital spending: $116 (1) As compared to 2007 adjusted EPS of $4.85 Note: Data from continuing operations; see appendix for non-GAAP reconciliations 6% Organic Revenue Growth; 5 35% Adjusted Earnings Per Share Growth
  6. 6. 2008 Strategic Highlights  APV integration on track  Continued progress on non-core disposals: – Air Filtration, LDS, Scales and Dezurik sales completed (~$165m in proceeds) – Discontinued product line in the Industrial segment in Q4 2008: • ~$100m in annual revenue  Reduced debt by $223m: - Gross Debt to EBITDA reduced from 2.3x to 1.6x (1)  Repurchased 3.6m shares in 2008: – Additional 1.9m shares repurchased in 2009 YTD  Acquired AutoBoss (1) Gross Debt to EBITDA as defined in the SPX credit facility Continued to Focus on Long-Term Strategy; 6 Disciplined Capital Allocation
  7. 7. Capital Structure December 31, 2008 Key December 31, 2008 Capital Structure Balance Sheet Figures ($ millions)  Cash: $476 Debt 39% Equity 61%  Total Assets: $6,187 Debt to EBITDA (1) 2.3x  Total Debt: $1,345 1.6x 1.8x 1.1x  Shareholders’ Equity: $2,261 Dec-07 Dec-08 Net Leverage Gross Leverage (1) Consolidated leverage ratios. Net and Gross Debt to EBITDA as defined in the credit facility Conservative Leverage Ratios; 7 Solid Financial Position and > $1b of Available Liquidity
  8. 8. 2009 Full Year Guidance Earnings Per Share: Free Cash Flow: $5.40 to $5.80 $230m to $270m Note: Data from continuing operations; See appendix for non-GAAP reconciliations Upside Potentials Downside Potentials  Macro-economic factors:  Macro-economic factors: – Stronger organic growth – Continued disruption in credit markets – Foreign exchange fluctuations – Lower organic growth – Raw material cost changes – Foreign exchange fluctuations – Raw material cost changes  Internal factors:  Internal factors – Timing and execution of restructuring – Additional share repurchases – Timing and execution of restructuring – Acquisitions – Disposals – Lower tax rate Earnings Guidance Range: $5.40 to $5.80 EPS from Continuing Operations 8 Certain Events Could Influence Earnings Per Share
  9. 9. Q4 and Full Year 2008 Financial Results global infrastructure x process equipment x diagnostic tools February 2009 COMPANY CONFIDENTIAL
  10. 10. Adjusted Earnings Per Share Q4 2008 FY 2008 GAAP EPS from continuing operations ($0.20) $4.68 Q3 tax benefits (0.47) Q3 legal matter 0.11 Q4 asset impairment 2.26 2.21 Adjusted EPS from continuing operations $2.06 $6.53 Note: Data from continuing operations Adjusted EPS Presented Consistent with 2008 EPS Guidance 10
  11. 11. Q4 Adjusted Earnings Per Share Q4 Adjusted Earnings Per Share Year-Over-Year Changes to From Continuing Operations Earnings Per Share  Q4 2007 Adjusted EPS $1.70 $2.06  Segment Income +$0.41 $1.70 21%  Special Charges ($0.08)  Other items +$0.03  Q4 2008 Adjusted EPS $2.06 Q4 2007 Q4 2008 Note: Data from continuing operations; see appendix for non-GAAP reconciliations 21% Adjusted Earnings Per Share Growth 11 Driven by Increased Segment Income
  12. 12. Q4 Consolidated Results Revenue Segment Income ($ millions) 17% $1,508 17% $227 $194 $1,290 15.0% 15.0% Q4 2007 Q4 2008 Q4 2007 Q4 2008  7% organic growth:  17% increase in segment income – Driven by power and energy markets  90 points of margin expansion  15% acquisition growth: excluding the dilutive impact of the APV acquisition – APV  (4%) foreign currency impact Note: Data from continuing operations; see appendix for non-GAAP reconciliations 7% Organic Revenue Growth; 12 90 Points of Segment Margin Expansion Excluding APV Dilution
  13. 13. Full Year Earnings Per Share Full Year Earnings Per Share Year-Over-Year Changes to From Continuing Operations Adjusted Earnings Per Share  2007 Adjusted EPS $4.85 35%  Segment Income +$2.35 $6.53 $5.23 $4.68  Share Repurchases +$0.26  Interest Expense ($0.45) $4.85  Tax Rate ($0.23)  Special Charges ($0.15) 2007 2008  Other Items ($0.10) Adjusted EPS GAAP EPS  2008 Adjusted EPS $6.53 Note: Data from continuing operations; see appendix for non-GAAP reconciliations 35% Adjusted Earnings Per Share Growth 13 Driven by Increased Segment Income
  14. 14. 2008 Consolidated Results ($ millions) Revenue Segment Income & Margin $802 $5,856 28% $606 $4,575 13.7% 13.2% 2007 2008 2007 2008  6% organic growth:  32% increase in segment income – Driven by power and energy markets  Segment income margins expanded 50 points:  20% acquisition growth from APV  Up 200 points excluding APV dilution  2% foreign exchange benefit Note: Data from continuing operations; see appendix for non-GAAP reconciliations 6% Organic Revenue Growth; 14 200 Points of Segment Margin Expansion Excluding APV Dilution
  15. 15. Segment Analysis global infrastructure x process equipment x diagnostic tools February 2009 COMPANY CONFIDENTIAL
  16. 16. Flow Q4 Financial Results ($ millions) Q4 Revenue Q4 Segment Income & Margin $71 $479 54% $51 $311 16.4% 14.9% Q4 2007 Q4 2008 Q4 2007 Q4 2008  3% organic growth:  40% increase in segment income  Strong demand in Oil & Gas and Power  220 points of margin expansion in markets offset softness in Dehydration core business and Industrial end markets  APV operating margins in high  59% acquisition growth from APV single digits  (8%) foreign currency impact Note: Data from continuing operations; see appendix for non-GAAP reconciliations 3% Organic Revenue Growth; 16 Core Margin Expansion Offset by APV Dilution
  17. 17. Flow 2008 Full Year Results ($ millions) 2008 Drivers 2008 Quarterly Backlog  Q4 backlog decline: 15% $799 $782 $763 – 9% due to foreign exchange $646 fluctuations  87% revenue growth in 2008: Q1 Q2 Q3 Q4 – 8% organic growth: • Driven by sales into the oil & gas, Revenue and Segment Income Margins power and food & beverage markets +3% to $1,875 to – 79% acquisition growth (APV) 5% $1,999 $1,975 – Foreign exchange neutral to full year $1,070 14% to  2008 segment margins: 13.7% to 16.4% 16% 14.7% – 550 points of margin dilution from 12.2% APV acquisition 2007 2008 2009E LT – Core margins expanded 130 points Note: Data from continuing operations; see appendix for non-GAAP reconciliations Targeting Low Single Digit Organic Growth in 2009; 17 2009 Targeted Margin Improvement Driven by APV Integration
  18. 18. Thermal Q4 Financial Results ($ millions) Q4 Revenue Q4 Segment Income & Margin $70 14% $497 $438 $52 14.1% 12.0% Q4 2007 Q4 2008 Q4 2007 Q4 2008  17% organic growth:  34% increase in segment income  Increased power generation sales,  210 points of margin expansion: particularly for heat exchangers and cooling systems – Contract discipline – Project execution  (3%) foreign currency impact – Project mix Note: Data from continuing operations; see appendix for non-GAAP reconciliations 17% Organic Revenue Growth; 18 210 Points of Operating Margin Expansion
  19. 19. Thermal 2008 Full Year Results ($ millions) 2008 Drivers 2008 Quarterly Backlog  Q4 backlog increase: 4% $2,084 $2,002 $2,003 – ~$125m order in South Africa $1,401 – 2 dry cooling contracts in China – 6% decline due to foreign exchange fluctuations Q1 Q2 Q3 Q4  8% revenue growth in 2008: Annual Revenue - 5% organic growth;  Increased Power and Energy sales 5% + $1,695 to - 3.5% foreign exchange benefits $1,775 $1,690 $1,561  170 points of margin expansion in 11% to 2008: 10.4% to 12.1% 13% 11.4% 10.4% - Improved contract discipline and project execution - Favorable project mix in 2008 2007 2008 2009E LT Note: Data from continuing operations; see appendix for non-GAAP reconciliations Targeting Mid Single Digit Organic Growth in 2009; 19 Margin Decline in 2009E Due Primarily to Lower Margin Project Mix
  20. 20. Test and Measurement Q4 Financial Results ($ millions) Q4 Revenue Q4 Segment Income & Margin (21%) $41 $315 $250 $18 13.0% 7.2% Q4 2007 Q4 2008 Q4 2007 Q4 2008  (17%) organic decline:  56% decrease in segment income  Challenging U.S. aftermarket  580 points of margin decline:  (4%) foreign currency impact – Volume declines  1% acquisition growth Note: Data from continuing operations; see appendix for non-GAAP reconciliations Operating Declines Reflect Difficulties in 20 North American Aftermarket and Dealer Equipment Market
  21. 21. Test & Measurement 2008 Full Year Results Annual Revenue 2008 Drivers ($ millions) +3% to  8% acquisition growth $1,100 $1,080 5% $920 to $980  7% organic decline  End market analysis: – Decline in US market: • Decline in aftermarket sales • No significant new model launches 2007 2008 2009E LT • Dealership consolidation Annual Segment Margins • “Big 3” financial difficulties 11% to – Europe and Asia steady 13% 11.0% 8.3% to 9.9% 9.3%  2007/2008 U.S. restructuring: – Reduced footprint to one manufacturing plant and one distribution center – Reduced headcount by ~225  Integration of European and Asian 2007 2008 2009E LT acquisitions Note: Data from continuing operations; see appendix for non-GAAP reconciliations Expecting 2009E Organic Decline of ~10%; 21 Significant Restructuring Actions Planned
  22. 22. Industrial Q4 Financial Results ($ millions) Q4 Revenue Q4 Segment Income & Margin $281 24% $67 $227 $50 23.9% 22.0% Q4 2007 Q4 2008 Q4 2007 Q4 2008  25% organic growth:  35% increase in segment income  Increased sales for power transformers  190 points of margin expansion: and crystal growers – Leverage on organic growth  (1%) foreign currency impact – Improved pricing Note: Data from continuing operations; see appendix for non-GAAP reconciliations Sales of Power Transformers and Crystal Growing Equipment 22 Drove 25% Organic Revenue Growth and 190 Points of Margin Expansion
  23. 23. Industrial 2008 Full Year Results ($ millions) 2008 Quarterly Backlog 2008 Drivers $711  Q4 backlog decrease: 14% $686 $639 $550 –Transformer orders down 27% –No new solar orders  23% organic revenue growth: - Organic growth across all reporting Q1 Q2 Q3 Q4 units in the segment:  Increased sales of power transformers, Annual Revenue crystal growers and broadcast antennas 3% to $1,067 5%  570 points of margin expansion: $790 to $865 $850 - Improved pricing, particularly for transformers 23.0% 18.5% to ~20% - Leverage on organic growth 19.5% 17.3% - Lean and supply-chain improvements 2007 2008 2009E LT Note: Data from continuing operations; see appendix for non-GAAP reconciliations Credit Crisis Significantly Impacting Industrial Segment; 23 Expecting Organic Decline in 2009 Greater than 20%
  24. 24. Equity Earnings ($ millions) Q4 Equity Earnings Full Year Equity Earnings $46 $40 $12 ~$40 $11 Q4 2007 Q4 2008 2007 2008 2009E Equity Earnings Contributed ~9% of 2008 Pre-Tax Income 24
  25. 25. 2008 Free Cash Flow and Capital Allocation global infrastructure x process equipment x diagnostic tools February 2009 COMPANY CONFIDENTIAL
  26. 26. Free Cash Flow ($ millions) Q4 Free Cash Flow Full Year Free Cash Flow $329 $245 $288 $214 Q4 2007 Q4 2008 2007 2008  Negative foreign exchange impact  APV working capital investment ~$40  Working capital investment:  One-time pension payment $40 – Driven by increased A/R, primarily  Increased capital spending $33 in Cooling Technologies  Increased cash restructuring $13  Increased cash restructuring $23  Increased capital spending $4 Note: Data from continuing operations; See appendix for non-GAAP reconciliations $288m of Free Cash Flow Reported in 2008 26
  27. 27. Capital Allocation 2-Year ($ millions) 2007 2008 Total Cash Proceeds from Disposals $118 $131 $248 Investments Acquisitions / Investments ($567) ($15) ($582) Capital Expenditures (83) (116) ($199) Financing Activities Net Change in Debt $593 ($223) $370 Stock Repurchases (716) (115) ($831) Dividends Paid (57) (54) ($110) Note: Data from continuing operations Disciplined, Balanced Approach to Capital Allocation 27
  28. 28. 2009 Financial Targets global infrastructure x process equipment x diagnostic tools February 2009 COMPANY CONFIDENTIAL
  29. 29. 2009 Financial Targets 2009 Target Range Comments ($ millions, except per share data) $5,280 to $5,580 Organic: flat to (5%) Revenue FX: (~5%) 12.5% to 13.5% Segment Income Margin (1) $5.40 to $5.80 (11%) to (17%) Earnings Per Share $230 to $270 85% to 95% of NI Free Cash Flow Capital Spending ~$100 (1) As compared to 2008 adjusted EPS; see appendix for non-GAAP reconciliations Note: Data from continuing operations 2009E EPS Guidance Range: $5.40 to $5.80 29
  30. 30. 2009 Q1 Targets ($ millions, except per share data) Q1 2008 Q1 2009E Revenue $1,350 ~(10%) Segment Income $ $160 $126 to $131 (18%) to (21%) Segment Income % 11.9% 10.3% to 10.7% (120) to (160) bps EPS $1.15 $0.75 - $0.85 (25%) to (35%) Note: Data from continuing operations Expect Decline in Q1 EPS of 25% to 35% 30
  31. 31. Executive Summary global infrastructure x process equipment x diagnostic tools February 2009 COMPANY CONFIDENTIAL
  32. 32. Backlog 12/31/2008 Backlog Year-End Backlog by Geography $3.4 Europe 30% Americas ($ billions) 38% $2.6 $2.0 Asia Pacific 9% ROW $1.3 South Africa 2% 21% Backlog Aging 2009E 2005 2006 2007 2008 66% 2010E & Beyond Thermal Flow Industrial 34% Note: Data from continuing operations; Test and Measurement’s backlog is immaterial and not reported publicly 21% of the Consolidated 2008 Year End Backlog is 32 Multi-Year Power Projects in South Africa
  33. 33. SPX Global End Markets Organic Revenue 2008 Revenue by End Market 2009E Long-Term Power & Energy (3%) to +1% 5%+ Infrastructure 56% HVAC & Other Infrastructure (5%) to flat 3% to 5% Other Power & 15% Energy Tools & 41% Diagnostics Tools & Diagnostics (12%) to (7%) 3% to 5% 17% Food & Food & Beverage flat to +4% 3% to 5% Beverage General 13% Industrial 14% General Industrial (5%) to flat 3% to 5% Total (5%) to flat 4% to 6% Note: Data from continuing operations Current Economic Environment Impacting 2009 Expectations; 33 Long-Term Organic Growth Target is 4% to 6%
  34. 34. Current SPX Situation  2009 EPS Guidance: $5.40 to $5.80 per share  Solid financial position and liquidity: – Additional 3m share repurchase plan active – >$1b of available liquidity – Significant flexibility in uncertain economic environment  APV integration and other restructuring actions aligning cost structure with revenue stream and creating flexibility for the future  Continue to focus on executing long-term strategy: – 3 core, global end markets – Fundamental demand for SPX technologies unchanged – Long-term organic growth target 4% to 6% Carefully Monitoring Risks In Uncertain Economic Environment; 34 Continue to Drive Long-Term Strategy
  35. 35. Questions global infrastructure x process equipment x diagnostic tools February 2009 COMPANY CONFIDENTIAL
  36. 36. Appendix global infrastructure x process equipment x diagnostic tools February 2009 COMPANY CONFIDENTIAL
  37. 37. Full Year Mid-Point Target Financial Model 2009E ($ millions, except per share data) 2008 Adjusted Guidance Earnings Mid-Point Revenue $5,856 $5,435 Segment Income Margin 13.7% 13.0% Corporate overhead (108) (95) Pension / PRHC (39) (36) Stock-based compensation (42) (28) Special charges (17) (65) Operating Income $596 $482 % of revenues 10.2% 8.9% Equity Earnings in J/V 46 40 Other Income/(Expense) 2 (7) Interest Expense (105) (95) Pre-Tax Income from Continuing Operations $539 $420 Tax Provision (186) (141) Income from Continuing Operations $353 $279 Tax Rate 34% 34% Weighted Average Dilutive Shares Outstanding 54 50 (1) EPS Mid-Point from continuing operations $ 6.53 $ 5.60 EPS Guidance Range $5.40 to $5.80 EBITDA $ 803 $ 725 Note: Data from continuing operations (1) Adjusted EPS, see appendix for reconciliation Mid-Point EPS Guidance at $5.60 37
  38. 38. Re-Stated Quarterly Segment Data First Quarter Second Quarter Third Quarter Fourth Quarter Full Year 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 Flow Technology Revenue $237 $492 $266 $535 $256 $493 $311 $479 $1,070 $1,999 Segment Income $37 $47 $44 $70 $44 $56 $51 $71 $175 $243 Segment Margins 15.4% 9.5% 16.5% 13.1% 17.2% 11.3% 16.4% 14.9% 16.4% 12.2% Test and Measurement Revenue $236 $270 $284 $320 $245 $260 $315 $250 $1,080 $1,100 Segment Income $24 $24 $32 $37 $22 $30 $41 $18 $118 $109 Segment Margins 10.0% 8.9% 11.2% 11.4% 9.0% 11.7% 13.0% 7.2% 11.0% 9.9% Thermal Equipment and Services Revenue $313 $347 $388 $409 $422 $437 $438 $497 $1,561 $1,690 Segment Income $16 $36 $38 $46 $57 $52 $52 $70 $163 $204 Segment Margins 5.2% 10.5% 9.8% 11.1% 13.4% 12.0% 12.0% 14.1% 10.4% 12.1% Industrial Products and Services Revenue $187 $241 $228 $248 $224 $296 $227 $281 $865 $1,067 Segment Income $25 $53 $33 $55 $42 $69 $50 $67 $150 $245 Segment Margins 13.6% 22.2% 14.4% 22.1% 18.8% 23.5% 22.0% 23.9% 17.4% 23.0% Note: Data from continuing operations 38
  39. 39. Pro Forma APV Calculation Excluding Including APV APV APV SPX Consolidated Q4 2008 Revenue $1,325 $183 $1,508 Segment Income $211 $16 $227 Segment Margin 15.9% 9% 15.0% Flow Technology Q4 2008 Revenue $296 $183 $479 Segment Income $55 $16 $71 Segment Margin 18.6% 9% 14.9% Note: Data from continuing operations 39
  40. 40. Pro Forma APV Calculation Excluding Including APV APV APV SPX Consolidated 2008 Revenue $5,017 $839 $5,856 Segment Income $764 $38 $802 Segment Margin 15.2% 5% 13.7% Flow Technology 2008 Revenue $1,160 $839 $1,999 Segment Income $205 $38 $243 Segment Margin 17.7% 5% 12.2% Note: Data from continuing operations 40
  41. 41. Non-GAAP Reconciliations global infrastructure x process equipment x diagnostic tools COMPANY CONFIDENTIAL
  42. 42. 2008 Adjusted Earnings Per Share Q4 2008 FY 2008 GAAP EPS from continuing operations ($0.20) $4.68 Q3 tax benefits (0.47) Q3 legal matter 0.11 Q4 asset impairment 2.26 2.21 Adjusted EPS from continuing operations $2.06 $6.53 Note: Data from continuing operations Adjusted EPS Presented Consistent with 2008 EPS Guidance 42
  43. 43. 2007 Adjusted Earnings Per Share Q4 2007 FY 2007 GAAP EPS from continuing operations $1.85 $5.23 Q3 Tax Benefits (0.34) Q4 Tax Benefits (0.26) (0.25) Q4 Asset Impairment 0.05 0.05 Q4 Legacy Legal Matters (Corporate Expense) 0.06 0.06 Adjusted EPS from continuing operations $1.70 $4.75 Businesses discontinued during 2008 0.00 0.10 Adusted EPS from continuing operations $1.70 $4.85 (as reported in 2007) Note: Data from continuing operations 43
  44. 44. Q4 2008 Organic Revenue Growth Reconciliation Quarter Ended December 31, 2008 Net Revenue Acquisitions/ Organic Foreign Growth Divestitures Growth Currency Flow 54.3% 59.3% -8.4% 3.4% Test -20.5% 0.9% -4.3% -17.1% Thermal 13.6% 0.0% -3.3% 16.9% Industrial 24.2% 0.0% -0.8% 25.0% Consolidated 16.9% 14.5% -4.3% 6.7% Note: Data from continuing operations 44
  45. 45. 2008 Organic Revenue Growth Reconciliation Year Ended December 31, 2008 Net Revenue Acquisitions/ Organic Foreign Growth Divestitures Growth Currency Flow 86.8% 78.9% -0.1% 8.0% Test 1.9% 7.7% 1.4% -7.2% Thermal 8.3% 0.0% 3.5% 4.8% Industrial 23.3% 0.0% 0.1% 23.2% Consolidated 28.0% 20.3% 1.5% 6.2% Note: Data from continuing operations 45
  46. 46. Free Cash Flow Reconciliation to GAAP Financial Measures SPX Corporation and Subsidiaries Free Cash Flow Reconciliation (unaudited) ($ millions) Q4 2007 Q4 2008 Net cash from continuing operations $ 280 $ 254 Capital expenditures $ (36) $ (40) Free cash flow from continuing operations $ 245 $ 214 2007 2008 Net cash from continuing operations $ 411 $ 405 Capital expenditures $ (83) $ (116) Free cash flow from continuing operations $ 329 $ 288 46
  47. 47. 2009E Free Cash Flow Reconciliation SPX Corporation and Subsidiaries Free Cash Flow Reconciliation (unaudited) ($ millions) 2009E Guidance Range Net cash from continuing operations $ 330 $ 370 Capital expenditures $ (100) $ (100) Free cash flow from continuing operations $ 230 $ 270 47
  48. 48. EBITDA Reconciliations ($ millions) 2008 2009E Revenues $5,856 $5,435 Net Income $248 $279 Income tax provision (benefit) 153 141 Interest expense 116 103 Income before interest and taxes $517 $523 Depreciation and intangible amortization expense 105 105 EBITDA from continuing operations $621 $628 Adjustments: Amortization or write-off of intangibles and organizational costs 127 0 Non-cash compensation expense 42 28 Extraordinary non-cash charges (22) 0 Extraordinary non-recurring cash charges 13 65 Excess of JV distributions over JV income 11 0 Loss (Gain) on disposition of assets 12 5 Pro Forma effect of acquisitions and divestitures (1) 0 Other 0 (1) Adjusted LTM EBITDA from continuing operations $803 $725 Note: EBITDA as defined in the credit facility; 2008E as of 10/29/2008 48
  49. 49. Debt Reconciliations ($ millions) 12/31/2007 12/31/2008 Short-term debt $ 254 $ 113 Current maturities of long-term debt 79 76 Long-term debt 1,235 1,155 Gross Debt $ 1,568 $ 1,345 Less: Puchase card program and extended A/P programs $ (58) $ (48) Adjusted Gross Debt $ 1,510 $ 1,297 Less: Cash in excess of $50m $ (304) $ (426) Adjusted Net Debt $ 1,206 $ 871 Note: Debt as defined in the credit facility 49
  50. 50. 50

×