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SPX Investor questions???

Presentation

Bairds 2012 Industrial Conference November 7th 2012

Certain statements contained in this presentation that are not historical facts, including any statements as to future market conditions, results of operations, financial projections and acquisitions, 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 express or implied results. 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 companys current complement of businesses, which is subject to change. 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 SPXs SEC filings. 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. The 2012 full year financial data and other estimates of future performance are estimates presented by SPX on October 31, 2012 and are presented here only for comparison purposes. SPXs inclusion of these estimates in the presentation is not an update, confirmation, affirmation, or disavowal of the estimates. These estimates do not reflect any subsequent developments. 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. Unless otherwise indicated, amounts in this presentation relate to continuing operations.

November 2012

Strategic Transformation
1997-2004 Diversified Industrial Manufacturer 2005-2011 Global, Multi-Industry Supplier of Engineered Solutions 2012 & Beyond Global Supplier of Flow Technology Solutions

Diversification, >100 Acquisitions; Legacy divestitures

APV Acquisition
United Dominion Acquisition General Signal Acquisition Focus on Diversification EST, Kendro & Bomag Divestitures Focus on Strategic Markets

ClydeUnion Acquisition

Service Solutions Divestiture (pending)

Focus on Building Flow Technology

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Note: Arrow is for illustration purposes only

SPX Has Undergone a Significant Transformation; Since 2004, Strategy Has Targeted on Narrowing Focus
November 2012 3

Strategic Transformation

2004 Revenue Mix (1)

2012E Revenue Mix

Vehicle Service 15% Security 10% 9%

Infrastructure 24%

Industrial Products & Services 18%

$5.7b

14%
6%

FLOW TECHNOLOGY

~$5.1b
29% Thermal Equipment & Services

53%

FLOW TECHNOLOGY

8% 7% 7% Compaction Niche Industrial Machinery Auto Other Components Laboratory Industrial Equipment

Exited businesses

(1)

Includes the revenue of businesses discontinued in Q4 2004 including EST, Kendro and Bomag Note: 2012E as of 10/31/2012

Flow Technology Segment Now Represents More Than 50% of Annual Sales; Divested 56% of 2004 Revenue Mix
November 2012 4

Strategic Update

Flow Technology

Power Infrastructure

Sale of Service Solutions

ClydeUnion integration:
Completed 5% headcount reduction Profitability continued to improve sequentially Expect focus on operational improvement to benefit 2013 financial performance

Power Transformers:
Received a total of 34 orders for large power transformers On track to ship 15 large power units in 2012

European regulatory approval received in Q2 U.S. approval process:


Expect final regulatory requirements to be satisfied within the next few weeks Anticipate deal to close by early December

Joint Venture with Shanghai Electric:


Awarded 5 contracts YTD totaling over $70m

After-tax proceeds of ~$1b

Sale of Service Solutions Expected to Close by Early December; 2012 Strategic Actions Expected to Benefit 2013 Financial Performance
November 2012 5

Capital Allocation

Debt to EBITDA (1)


Gross Leverage 3.5x 2.5x 1.5x 0.5x -0.5x 2007 2008 2009 2010 2011 2012E Net Leverage

Capital Allocation Plan


Estimate ~$2b of available liquidity in Q4 (2) 1. $350m of Debt Reduction:
Plan to pay off $300m term loan X Plan to pay down $25m of term loan A and $25m of short-term debt

2. $275m of Share Repurchases:


Plan to execute Phase II of 10b5-1 plan (announced in Q1 2012)

Gross Leverage Target Range: 1.5x to 2.5x


(1) (2)

Estimate ~$1.3b of available liquidity following debt reduction and share repurchases

See appendix for reconciliation to GAAP Assumes ~$1b of net proceeds from the sale of Service Solutions

Plan to Execute $350m Debt Reduction and an Additional $275m of Share Repurchases With Proceeds From Sale of Service Solutions
November 2012 6

SPX Key Growth Drivers


Key Growth Drivers Details
Integrating ClydeUnion, building Power & Energy platform Continued growth in Food & Beverage Additional strategic acquisitions Next investment cycle for U.S. power transformers Expansion into U.S. large-power transformer market Recovery in global power generation investment Expanded relationships with Asian EPC firms Strong financial position Planned debt reduction and share repurchases ~$1.3b of projected liquidity Long-term tax rate of 26% to 28% Low outstanding share count to be further reduced with 2012 share repurchase plan

1. Expansion of Flow Technology segment

2. Attractive positions in late-cycle power markets

3. Capital allocation discipline

4. EPS leverage

Attractive Growth Prospects Led by Our Flow Technology and Power Transformer Businesses
November 2012 7

SPX Revenue by Segment

2012E Pro Forma Revenue Breakdown


Thermal Equipment & Services 29%

Food & Beverage ~$1b

Flow Technology 53%

Power & Energy ~$1b

Industrial Products & Services 18%

Industrial Processes ~$700m

Note: 2012E as of 10/31/2012

Flow Technology Well Positioned in 3 End Markets


November 2012 8

Flow Technology Food & Beverage Expansion


2008 2009 2010 Gerstenberg
defining acquisition expanded niche position into global platform butter, fats & oils processing

2011 Murdoch
engineering expertise New Zealand customer relationships

2012 Seital
separation technology expands F&B component portfolio scalable

Anhydro
liquid to powder dehydration infant milk formula

e&e
extraction & evaporation technology coffee industry

APV Integration

~$100m revenue in 2007


Note: 2012E as of 10/31/2012

>$1b revenue in 2012E

Expanded Global Presence & Technology Offerings in Attractive Food & Beverage Market
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Butter Process

Integrated Technologies Have Increased Our Customer Relevance


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Flow Technology Power & Energy Expansion


2010
legacy offerings

2011

2012

2013

2014

ClydeUnion
defining acquisition expanded niche position into global platform added highly engineered pump technology

future expectations operating improvement multi-product offerings / revenue synergies bolt-on acquisitions

valves

filtration

dehydration

chemical injection ~$300m revenue in 2010


Note: 2012E as of 10/31/2012

ClydeUnion Integration
~$1b revenue in 2012E

Expanded Global Presence & Technology Offerings in Attractive Growth Market


November 2012 11

Oil & Gas Pipeline Content

ClydeUnion Pump Technology P ClydeUnion Pumps SPX Flow Technology V Valves & Closures D Dehydration F Filtration M Mixers H Heat Exchangers P Pumps

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Typical ClydeUnion Pump Lifecycle


25 Year Pump Timeline
Original Equipment Purchase Customer Value Add Upgrade / Re-rate

Insurance Consumable Spares Spare

Stock Spares

Consumable Spare

Shelf Spares

Stock Spares

Consumable Spare

5 years
Site Installation Site Service Overhaul Labor

10 years

15 years
Overhaul Labor Re-rate Upgrade Parts

20 years
Site Service

25 years
Overhaul Labor

o
Site Service Warranty Support

Re-rate Upgrade Overhaul

The Typical Product Lifecycle Provides an Aftermarket Revenue Opportunity Ranging from 2x to 5x the Original Equipment Sale, Over a 25 Year Period
November 2012 13

Flow Technology Organic Revenue Profile


Annual Organic Revenue Change

10% CAGR

Recession

10% CAGR

15% 9%

15% 4% to 6%

8%

8%

2009 2005 2006 2007 2008

2010 2011 -4% 2012E

-14%
Note: 2012E as of 10/31/2012; see appendix for reconciliation to GAAP

Organic Revenue Profile Reflects Strategic Actions, Globalization, End Market Growth and Market Share Gains
November 2012 14

SPX Transformer Solutions questions???

Electric Power Transmission & Distribution Network

Transformers are Used Throughout the Electrical Grid to Step-Up and Step-Down the Voltage of Power Being Distributed
November 2012 16

Current State of the Business

SPX is a leading supplier of power transformers into the U.S. market with strong brand equity for quality and reliability Cyclical market with a correlation between volume, lead times and price We believe the next investment cycle is underway and will be driven primarily by the need to replace aged transformers Production in expanded large power capacity is progressing very closely to original plan

Many Factors Pointing to Strong Growth Potential Over the Next Few Years
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Historical Financial Results (excluding expansion)


($ millions)

Quarterly Backlog Value* Full Year Revenue Full Year Operating Margin %
$485

$393 $324 $283

$379

~$300 $249 $239

$209 $171

$227

5%

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2003

2004

2005

2006

2007

2008

2009

2010

2011

2012E

Note: Operating profit % excludes $11m of 2011 start up costs and ~$10m of 2012E start-up costs related to the expanded facility

Historical Financial Performance Reflects Market Dynamics; Two Previous Cycles Interrupted by Non-Cyclical Events
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Key Changes Since Prior Cycle

Installed base is older:


Average age has increased to ~38 years

Stricter regulatory environment:


FERC reliability standards implemented mid-2007 Korean tariffs finalized in Q3 2012

Incrementally more supplier capacity:


SPX, Hyundai, EFACEC

Slower growth economy and housing environment Expected increase in natural gas and alternative power generation

End Market Dynamics are Somewhat Different Than Prior Investment Cycle
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Key Demand Drivers


Failure Curve by Age Key Demand Drivers
Avg. Age of Installed Base

Replacement of aging equipment:


Average age of installed base is >35 years

Electricity Demand:
Load growth

Annual Cumulative Failures

New capacity: natural gas, wind, solar New housing starts

Regulatory standards:
2010 to 2020

Energy Policy Act of 2005 Electric Reliability Organization (2007) Korean import tariffs (2012)

Source: Hartford Steam Boiler; 2012 transformer failure analysis 2012 by Bill Bartley

Replacement Demand Expected to be the Primary Growth Driver Over the Next 10 Years
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Executive Summary

FLOW TECHNOLOGY PROCESS SOLUTIONS X DIAGNOSTIC SYSTEMS INFRASTRUCTURE X X INFRASTRUCTURE X VEHICLE SERVICE SOLUTIONS

COMPANY CONFIDENTIAL

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SPX Key Growth Drivers


Key Growth Drivers Details
Integrating ClydeUnion, building Power & Energy platform Continued growth in Food & Beverage Additional strategic acquisitions Next investment cycle for U.S. power transformers Expansion into U.S. large-power transformer market Recovery in global power generation Expanded relationships with Asian EPC firms Strong financial position Planned debt reduction and share repurchases ~$1.3b of projected liquidity Long-term tax rate of 26% to 28% Low outstanding share count to be further reduced with 2012 share repurchase plan

1. Expansion of Flow Technology segment

2. Attractive positions in late-cycle power markets

3. Capital allocation discipline

4. EPS leverage

Attractive Growth Prospects Led by Our Flow Technology and Power Transformer Businesses
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questions??? appendix

2005 to 2012E Organic Growth

Flow Segment - Organic Revenue Reconciliation 2005 Net Revenue Change Acquisitions/Divestitures Currency Organic 8.4% 0.0% 0.1% 8.3% 2006 11.2% 0.9% 1.0% 9.3% 2007 31.2% 14.0% 2.5% 14.7% 2008 86.8% 78.9% -0.1% 8.0% 2009 -18.2% 0.0% -4.3% -13.9% 2010 1.7% 5.6% 0.2% -4.1% 2011 22.8% 4.3% 3.4% 15.1% 2012E 30% to 32% 28% to 30% ~(3%) 4% to 6%

Note: 2012E as of 10/31/2012

November 2012

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