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1. SPX Flow Technology:
Global Food, Beverage &
Dairy Equipment Market
Ross Skelton: VP Global Sales and Marketing, SPX Flow Technology
September 25, 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.
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.
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.
PAGE 2
3. SPX is Focused on Three Global End Markets
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Tools & Diagnostics
SPX Well Positioned in Global Infrastructure,
Process Equipment and Tools & Diagnostics Markets
PAGE 3
4. SPX Flow Technology Overview
2007 Pro Forma Key Flow Technology
Revenue by Segment Characteristics
2007 Pro Forma Revenue: $2b
Thermal
Flow
Equipment &
Technology
Services Strong brands with market leading
positions
35% 28%
35% 27% Global sales infrastructure and
distribution
18% 19%
17% 21% Engineered products and turnkey
solutions
Industrial
Test &
Products & Operational expertise
Measurement
Services
Note: Data from continuing operations, 2008E as of 7/30/2008
Flow Technology is SPX’s Largest Segment and
Provides Engineered Process Solutions Globally
PAGE 4
5. SPX Flow Technology Integration History
Johnson
Pump
Industrial
Valves
2008
Sanitary
Pumps
2007
2005/2006
2004 Dryers &
Filters
2003
2002
Metering Pumps
& Mixers
Product Line Integration has Broadened Customer Offerings
PAGE 5
6. SPX Flow Technology Key Brands
Food, Beverage, Dairy,
Power, Oil & Gas
Pharma & Personal Care
General Industrial Air Dehydration & Filtration
Strong, Global Brand Equity in Niche End Markets
PAGE 6
7. SPX Flow Technology Revenue Breakdown
2007 Pro Forma $2b
2007 Pro Forma $2b
Flow Revenue by Geography
Flow Revenue by End Market
Includes Food, Beverage, Dairy,
Pharmaceutical and Personal Care Markets
North
America
Sanitary
Europe
33%
41% Power &
38%
Energy
25%
General
Industrial
19% ROW Asia-Pacific
Compressed
8% 21%
Air Chemical
5% 10%
Note: Data from continuing operations, 2007 pro forma for APV acquisition
Balanced Global Presence;
41% of Revenue Supports the Global Sanitary Market
PAGE 7
9. Key Sanitary Market Drivers
Dairy Food
Increases in hygienic standards
and regulatory controls
Economic expansion in
developing regions
Beverage Pharmaceutical
Process and business
optimization
Energy efficiency and waste
reduction
Brewing Personal Care
Production of value added or
higher quality produce
Demand for new plants
SPX Has Technologies that Serve the Food, Beverage, Dairy,
Pharmaceutical and Personal Care Manufacturers
PAGE 9
10. Food Processing Market Characteristics
Food Processing Machinery and Attractive End Market
Equipment Global Forecast Characteristics
($ 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 10
11. Developing Economies A Key Growth Driver
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 11
13. APV Overview
2007 APV
2007 revenue: $876m
Revenue by End Market
Acquired on December 31, 2007
Power and
Energy
11% APV is a global manufacturer of
Sanitary
process equipment and
(Dairy, Food,
Beverage)
engineered solutions
73%
General
Industrial
16%
The Acquisition of APV Increased
SPX’s Sanitary Revenue Base to More Than $1B
PAGE 13
14. APV Strategic Rationale
Expanded global presence and 2007 APV
added critical mass Revenue by Geography
Increased exposure to attractive
sanitary market
EMEA
Highly complementary products 56% Americas
20%
Strong, global APV brand name
Expanded presence in low cost Asia-Pacific
countries (China / Eastern Europe) 24%
Expect significant revenue and cost
synergies
The APV Acquisition Significantly Increased
SPX’s Presence in the Global Sanitary Market
PAGE 14
15. Complimentary Areas of Excellence
Lean manufacturing Research and development
Engineered components Engineering solutions
competency
Complete system solutions
North American distribution
efficiencies Global sales infrastructure and
distribution
Operational expertise
Global market reputation / brand
Strong brands with market equity
leading positions
Leverage “Best Practices” Within Each Organization
PAGE 15
16. SPX Flow Technology Global Presence Before APV
Strong Presence
Growing Presence
Global Expansion of Manufacturing, Sales and Distribution
Presence Underway Prior to APV Acquisition…
PAGE 16
17. APV Increased SPX’s Flow Technology Presence in Key Developing Economies
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 17
18. Middle East Example
– Previous SPX Flow Technology
presence:
– 1 sales office in Dubai
– 4 sales professionals
APV additions:
– Permanent offices in Riyadh, Dubai
– Work camps in Al Kharj, Haradh and
Jeddah, Saudi Arabia
– 1 financial entity in Dubai serving 18
countries
– ~100 professionals of 14 different
nationalities
– Sales, service, engineering, fabrication,
automation, skidded systems assembly
APV’s Presence in the Middle East Provides an Opportunity to
Transition from an Import Model to an In-Country Model
PAGE 18
20. Typical SPX Sanitary Customers
Power
SPX Serves a Global Customer Base Including
Many of the Leading Food and Beverage Manufacturers
PAGE 20
21. SPX Flow Technology Sanitary Offerings
2007 Pro Forma
~70% engineered components
Revenue by Type
for niche end markets:
– Built to order
Engineered
Components
70% ~30% turnkey and skidded
process systems:
– Engineered, designed and
installed
Market channels:
– Sales reps
Process
Systems
– Direct
30%
– Distributers
– OEM’s
Note: Data from continuing operations, pro forma for APV acquisition
SPX Offers Customers Engineered Components,
Skidded Systems and Turnkey Systems
PAGE 21
22. Flow Technology Sanitary Components
Positive
Homogenizers
Centrifugal Pumps
Displacement Pumps
Pump viscous products Pump thin fluids for Emulsify liquids,
such as tomato paste, beverage or clean in uniformly disperse solid
peanut butter place systems particles throughout a
liquid and high pressure
pumping applications
Custom Engineered Product Offerings
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23. Flow Technology Sanitary Products
Heat Exchangers Valves Mixers
Process Regulating Butterfly
Temperature control for Process flow diversion Dispersion and solid
mechanically separated and shut off suspension
meats, margarines,
icings, fondants
Custom Engineered Product Offerings
PAGE 23
24. Typical Beverage Process Flow Diagram
Mixers Valves
Pumps
SPX Manufactures Engineered Components That
Can be Used Throughout a Typical Beverage Process
PAGE 24
25. Typical Dairy Process Flow Diagram
Mixers Valves
Pumps Homogenizer
Heat Exchangers
SPX Manufactures Engineered Components That
Can be Used Throughout a Typical Dairy Process
PAGE 25
26. SPX Flow Technology Sanitary Systems
2007 System Revenue by Application Offerings include both turnkey and
skidded systems
Beverage
18%
~30% of 2007 sanitary revenue
Other
2% from systems;
Foods
17%
65% of systems were for dairy
Other Dairy
17% applications
~20% of systems revenue
Butter Milk
generated in developing countries
17%
3%
Yogurt
12%
Cheese
14%
Note: Data from continuing operations, pro forma for APV acquisition
Skidded and Turnkey Systems Range from $1m to $30m and
Provide Significant Aftermarket Opportunities
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27. Core Technologies
Cheese & Butter Processes Utlra High Temperature Processes
Ultrafiltration & Microfiltration Mixing & Blending
Strong Experience With Proven Core Technologies
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28. System Examples
Ultra High Temperature Infusion: China
Engineered for the sterilization of
drinking milk, milk shakes,
chocolate milk, cream and ice
cream
Ultrafiltration Unit: Ukraine
Engineered for the concentration
of whole milk to be used in the
production of feta cheese
Dairy Markets in Developing
Countries have been a Growth Driver
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29. New Innovations
LeanCreame FlexMix Processing
Technology Without
Whey Separation White Water Recovery
Continue to Focus on System Innovation;
New Technologies Designed to Add Value for our Customers
PAGE 29
31. Summary
The global food, beverage and dairy market is a steady, single digit
growth market with higher growth rates expected in developing
countries:
– Attractive growth market for SPX
The APV acquisition has increased SPX’s sanitary market presence
and accelerated globalization:
– ~$1b global sanitary business
SPX Flow Technology offers a global customer base engineered
components, skidded systems and turnkey solutions
SPX Flow Technology is Well Positioned to
Serve the Global Food, Beverage and Dairy Markets
PAGE 31