SPX Corporation 4th Quarter and Full Year 2008 Results

global infrastructure x process equipment x diagnostic tools

2008 Q4 and Full Year Results
where a sound approach meets new challenges

February 25, 2009 1
COMPANY CONFIDENTIAL

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

Introduction

February 2009

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

2008 Financial Results

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


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

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

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

Q4 and Full Year 2008
Financial Results

February 2009

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

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


11
Driven by Increased Segment Income

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


7% Organic Revenue Growth;
12
90 Points of Segment Margin Expansion Excluding APV Dilution

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


35% Adjusted Earnings Per Share Growth 13
Driven by Increased Segment Income

2008 Consolidated Results
($ millions)

Revenue Segment Income & Margin
$802
$5,856 28%

$606
$4,575

13.7%
13.2%

2007 2008 2007 2008

– 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

6% Organic Revenue Growth;
14
200 Points of Segment Margin Expansion Excluding APV Dilution

Segment Analysis

February 2009

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

 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

Core Margin Expansion Offset by APV Dilution

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

Targeting Low Single Digit Organic Growth in 2009; 17
2009 Targeted Margin Improvement Driven by APV Integration

Thermal Q4 Financial Results
($ millions)

$70
14%
$497

$438

$52

14.1%

12.0%

Q4 2007 Q4 2008 Q4 2007 Q4 2008

 Increased power generation sales,
 210 points of margin expansion:
particularly for heat exchangers and
cooling systems – Contract discipline

– Project execution
– Project mix

210 Points of Operating Margin Expansion

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

Targeting Mid Single Digit Organic Growth in 2009; 19
Margin Decline in 2009E Due Primarily to Lower Margin Project Mix

Test and Measurement Q4 Financial Results
($ millions)

(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


Operating Declines Reflect Difficulties in 20
North American Aftermarket and Dealer Equipment Market

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

Expecting 2009E Organic Decline of ~10%; 21
Significant Restructuring Actions Planned

Industrial Q4 Financial Results
($ millions)

$281 24% $67

$227
$50
23.9%

22.0%

Q4 2007 Q4 2008 Q4 2007 Q4 2008

 Increased sales for power transformers
and crystal growers
– Leverage on organic growth
– Improved pricing


Sales of Power Transformers and Crystal Growing Equipment
22
Drove 25% Organic Revenue Growth and 190 Points of Margin Expansion

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%
$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

Credit Crisis Significantly Impacting Industrial Segment; 23
Expecting Organic Decline in 2009 Greater than 20%

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

2008 Free Cash Flow
and Capital Allocation

February 2009

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

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)

Disciplined, Balanced Approach to Capital Allocation 27

2009 Financial Targets

February 2009

2009 Financial Targets

2009
Target Range Comments

$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

2009E EPS Guidance Range: $5.40 to $5.80 29

2009 Q1 Targets

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%)

Expect Decline in Q1 EPS of 25% to 35% 30

Executive Summary

February 2009

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

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%

Current Economic Environment Impacting 2009 Expectations;
33
Long-Term Organic Growth Target is 4% to 6%

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

Questions

February 2009

Appendix

February 2009

Full Year Mid-Point Target Financial Model
2009E
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
(1) Adjusted EPS, see appendix for reconciliation

Mid-Point EPS Guidance at $5.60 37

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%


38

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


39

Pro Forma APV Calculation

Excluding Including
APV APV APV
SPX Consolidated 2008
Revenue $5,017 $839 $5,856

Flow Technology 2008
Revenue $1,160 $839 $1,999


40

Non-GAAP Reconciliations


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 Presented Consistent with 2008 EPS Guidance 42

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

Businesses discontinued during 2008 0.00 0.10

Adusted EPS from continuing operations $1.70 $4.85
(as reported in 2007)


43

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%


44

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%


45

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



46

2009E Free Cash Flow Reconciliation

SPX Corporation and Subsidiaries
Free Cash Flow Reconciliation
(unaudited)
($ millions)
2009E Guidance Range



47

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

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

SPX Corporation 4th Quarter and Full Year 2008 Results

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