SPX Investor Meeting

2009 guidance presentation h d h t h ll

1January 21, 2009

where a sound approach meets new challenges

1

global infrastructure x process equipment x diagnostic tools

Introductions

Chris Kearney Chairman, President and Chief Executive Officer

Patrick O’Leary EVP and Chief Financial OfficerPatrick O Leary EVP and Chief Financial Officer

J S lt VP f FiJeremy Smeltser VP of Finance

Ryan Taylor Manager of Investor Relations

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.

Except as specifically noted otherwise, the fiscal year 2008 financial data are the estimates presented by SPX on October 29, 2008, and are presented here only for comparison purposes. SPX’s inclusion of earlier estimates in the presentation is not an update, confirmation, affirmation, or disavowal of the estimates. In keeping with its past practice, SPX will only disclose actual fiscal year 2008 and fourth quarter numbers in its fourth quarter earnings release, expected to be issued on February 25, 2009.

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 statementsStatements 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

3

GAAP, is available on our website at www.spx.com.

Agenda

1) SPX Overview and 2009 Guidance

2) Update on Key End Markets

3) Update on Financial Reporting Segments

4) 2009 Full Year and Q1 Financial Targets4) 2009 Full Year and Q1 Financial Targets

5) Capital Structure and Liquidity

6) Summary and Questions

4

SPX Overviewglobal infrastructure x process equipment x diagnostic tools

COMPANY CONFIDENTIAL

Strategic Transformation

9 Pl tf i 2004

Fundamental Long-TermMarket Drivers

Specialty Engineered

Products

Service Solutions

Fluid Systems

9 Platforms in 2004…

Growing world population

Ad t f d l i

Market DriversProducts

L b d Lif

Broadcast

CoolingPower

Systems

Advancement of developing countries and emerging middle class

CompactionSecurityLab and Life

Sciences

Infrastructure

…3 Core, Global End Markets in 2008E

Aging Western world power and energy infrastructure

Increased electricity demand

Infrastructure56%

Tools & Diagnostics

Power &Energy

41%

HVAC / Other 16%

Increased electricity demand

Increased demand for processed dairy, food and

General Industrial

Food & Beverage

%

Diagnostics17%

66

p y,beverages14% 13%

SPX Has Undergone a Significant Transformation;Long-Term Strategy is Focused on 3 Core, Global End Markets

Note: 2004 data as reported and includes the discontinued revenue of EST, Kendro and BomagNote: Data from continuing operations; 2008E estimated as of 1/21/2009

Business Disposals

~Annual Revenue*

~GrossProceeds# of Disposals

From 2005 through today:

($ millions)

7 $1,440 $2,751

3 $300 $123

From 2005 through today:– 16 total disposals

– $2.3b of revenue sold

2005

2006 3 $300 $123

3 $350 $129

– $3.1b of gross proceeds

2 disposals in process:Flow product line

2006

2007 3 $350 $129

2 $160 $125

– Flow product line discontinued in Q3 2008

– Industrial product line discontinued in Q4 2008

2007

2008

1 $20 $162009

77Consistent Seller of Non-Core Assets;

Increased Focus on 3 Core, Global End Markets

*At the time of disposal

Capital Structure

Reduced outstanding debt by

September 29, 2008Capital Structure

Equity61%

Debt39%

g y$1.7b in 2005

Simplified debt structure in 2007:Re-financed global credit facility in

Gross Debt to EBITDA

September 2007Issued bonds in December 2007 to finance the APV acquisition

$ fGross Debt to EBITDA $1.3b of total debt outstanding at 12/31/2008E

Required debt payments of $75m in 2009 and 2010

2.6x

1.8x1.6x

2.2x

1.6x2009 and 2010

2009E available liquidity: > $1b

2004 2006 2008E*

88Solid Financial Position and > $1b of Available Liquidity

2004 2006 2008E*

*2008E based on EBITDA as of October 29, 2008 and December Balance Sheet

Disciplined Capital Allocation

Gross Debt to EBITDA Excess Capital Usage

> 2.0x Debt reduction

< 2 0x Strategic acquisitions< 2.0x Strategic acquisitions

Share repurchases

9Target Gross Debt to EBITDA of 1.5x to 2.0x

Share Repurchases

Cumulative Share Repurchases

Dilutive Common Shares Outstanding

Total cumulative cost: $1.9b74m

32m

23m

35m

50m

15m

2005 2005 - 2006 2005 - 2007 2005 - 2008*

2005 2006 2007 2008

12/31/2004 2009E

10Repurchased ~35m Shares or 45% of the Ending 2004 Share Count;

Additional 3m Share Repurchase Plan Announced December 18, 2008

*As of December 18th, 2008

Acquisitions

$800m

~Annual Revenue*

Primary End Market

Allocated ~$800m towards i iti f 2005 t 2008

$100m

acquisitions from 2005 to 2008

~$1.1b of revenue acquiredFood & Beverage

$80mJohnson Controls European Diagnostics

Acquisition criteria:

Strategic to three core end

$50mmarkets

Accretive to earnings within the first 12 monthsTools & Diagnostics

$25m

$10m

Generate returns above SPX’s cost of capital within a short time frame

1111Disciplined Acquisitions Strategic to Core End Markets

$10m*At the time of acquisition

Globalization

2004 SPX Revenueby Geography

2008E SPX Revenue by Geography

North America48%

North America70%

Europe28%

Asia Pacific14%

Africa2% South

AmericaMiddle

EastEurope

20%Asia7%

ROW3%

14%3%

East5%

20%7%

12Increased Global Revenue Base;

Greater Than 50% of Sales Outside North America

Note: Data from continuing operations; 2008E estimated as of January 21, 2009

Backlog

Year-End Backlog12/31/2008* Backlog

by Geography$3.4

($ billions)Europe

30%Americas38%

$2.0

$2.6

Asia Pacific

$1.3

$

9%

South Africa21%

ROW2%

N t D t f ti i ti T t d M t’ b kl i i t i l d t t d bli l

2005 2006 2007 2008*

Thermal Flow Industrial

1321% of the Consolidated 2008 Year End Backlog is

Multi-Year Power Projects in South Africa

Note: Data from continuing operations; Test and Measurement’s backlog is immaterial and not reported publicly*12/31/2008 backlog estimated as of January 21, 2009

Backlog

Year-End Backlog Backlog Aging$3.4

2009E66%

($ billions)

$2.0

$2.6

$1.3

$

2010E & Beyond

34%

N t D t f ti i ti T t d M t’ b kl i i t i l d t t d bli l

2005 2006 2007 2008*

Thermal Flow Industrial

14Starting 2009 with a Total Backlog of $3.4b;

Approximately 66% Expected to be Delivered in 2009

Note: Data from continuing operations; Test and Measurement’s backlog is immaterial and not reported publicly*12/31/2008 backlog estimated as of January 21, 2009

Operating Initiatives and Financial Results

Revenue & Segment

Operating Initiatives: 6% 10% ~7-8%10%Organic growth

Revenue & SegmentIncome Margins

Emerging and developing markets

N d t d l t$4.8

~$6.0($ billions)

New product development

Continuous Lean improvements

$3.7$4.1

12.1%

12.9%

13.0% to 13.2%

Efficient supply-chain management

IT infrastructure improvement

11.1%

IT infrastructure improvement

Organizational and talent development2005 2006 2007 2008E

Revenue

– Segment Income Margin

15

– Segment Income Margin

Strategic Transformation and Operating Initiatives Have Contributed to Revenue Growth and Margin Improvement

Note: 2005 – 2007 data as restated in 2007 10-K; 2008E as of October 29, 2008

SPX Today

Adjusted EPS$6 40 t

Global, multi-industrial provider of $6.40 to

$6.50

$4.85

engineered solutions to three core, global end markets

Annual Revenue: ~$6b

$2.62$3.07

$4.85 Annual Revenue: $6b

Solid financial position

Disciplined capital allocation

Continuous improvement culture

2005 2006 2007 2008E$3.4b backlog

1616Strategic Transformation Has SPX Well-Positioned to Manage Through an Uncertain Economic Environment

Note: As reported and adjusted for certain items; see appendix for reconciliations; 2008E as of October 29, 2008

Uncertain Economic Environment

Banking failures and consolidations have impacted credit availability for 2008E Revenue Splitmany companies

Global credit crisis has created an

2008E Revenue Split

Long Cycle40%

uncertain economic environment…

…as a result, capital spending for many companies for 2009 is uncertain

V l til f i h tShort Cycle

Volatile foreign exchange rates

Volatile commodity pricing

60%

1760% of SPX’s Revenue is Short Cycle;

Slowing Global Economy Impacting SPX’s Outlook for 2009

SPX Global End MarketsOrganic Revenue

2009E

Power & Energy (3%) to +1% 5%+

Long-Term2008E Revenue by End Market

I f t t

Organic Revenue

Power & Energy (3%) to +1% 5%+

Other Infrastructure (5%) to flat 3% to 5%HVAC &

Other15%Power &

Energ

Infrastructure56%

Tools & Diagnostics (12%) to (7%) 3% to 5%Tools &

Diagnostics17%

Energy41%

Food & Beverage flat to +4% 3% to 5%

General Industrial (5%) to flat 3% to 5%

Food & Beverage

13%General

Industrial14%

General Industrial (5%) to flat 3% to 5%

Total (5%) to flat 4% to 6%

18Current Economic Environment Impacting 2009 Expectations;

Long-Term Organic Growth Target is 4% to 6%

Note: Data from continuing operations; 2008E estimated as of 1/21/2009

Focused Restructuring in 2009

Reporting Segment Restructuring Expectations

Fl T h l APV i t tiFlow Technology APV integration

Cost controls in response to slower revenue growth

Thermal Equipment & Services Rationalization of package coolingThermal Equipment & Services Rationalization of package cooling business in China

Continued headcount reduction and outsourcing at Guangzhou China facilityoutsourcing at Guangzhou, China facility

Concentration of resources in centers of excellence in Germany, U.S., Belgium and Hungary

19Targeting $65m of Restructuring Actions in 2009;2008 & 2009 Actions Expected to Reduce Global Workforce by ~10%

Hungary

Focused Restructuring in 2009

Reporting Segment Restructuring Expectations

T t & M t U S k t ti li tiTest & Measurement U.S. market rationalization

European acquisition integration

Rationalization of Chinese operations post

Industrial Products & Services

p pAutoboss acquisition

Business by business measuredIndustrial Products & Services Business by business measured response to changing environment

20Targeting $65m of Restructuring Actions in 2009;2008 & 2009 Actions Expected to Reduce Global Workforce by ~10%

2009 Guidance

2009 Guidance

Global economic recession:

2009 Macro-EconomicAssumptions

Earnings Per Share:

Global economic recession:– 1% global GDP growth

Transformer shipments decline $5.40 to $5.80 in 2H of 2009

Continued order decline in U S for vehicle repair toolsFree Cash Flow:

$230m to $270m

U.S. for vehicle repair tools and diagnostics

Mid-January exchange rates

N t D t f ti i ti di f GAAP ili ti

Raw material costs remain stable with existing estimates

21Prudent Management Through Difficult Economic Environment;Maintaining Commitment to Long-Term Strategy

Note: Data from continuing operations; see appendix for non-GAAP reconciliations

Global Power & Energy Market22

January 21, 2009

Global Power & Energy Market

22

global infrastructure x process equipment x diagnostic tools

SPX Power & Energy Technology Examples

Transmission & Distribution

Pumps & Valves22%Cooling

2008E Power & Energy Revenue by Product

2008E Power & Energy Revenue by Market

Distribution21%

Power Generation

54%

22%gSystems

32%(US market only)

Oil & Gas19%

Mining6%

Heat Exchangers &

Filters22%

Transformers21%

Solar Crystal Growers

3%

CoalNatural GasNuclear GeothermalSolar 21%

Cooling SystemsHeat ExchangersMoisture Separator ReheaterPumps and Valves

23Diverse Technology Offerings Provide Efficient Solutions for Customers

and Responds to Many Environmental Challenges

Note: Data from continuing operations; 2008E estimated as of 1/21/2009

Global Energy Infrastructure Investment

Coal

Cumulative Expected Investment in Energy Infrastructure, 2007 - 2030

Coal3%

Power

Gas21% $5 5

Power Generation

50%52%

$6.3

$13.6 trillion

$5.5 trillion

50%

$6.8 trillion

Oil24%

trillion$6.8

trillion

Transmission/ Distribution

50%

24$26 Trillion Estimated to be Spent on

Energy Infrastructure From 2007 Through 2030

Source: WEO 2008 Copyright OECD/IEA, 2008; Figure 2.6, page 89 , as modified by SPX Corporation

Investment in Power Infrastructure by Region

Cumulative Energy-Supply Infrastructure Investment by Region, 2007 - 2030

($ billions)

Key Market Drivers

China

North America

($ billions)

Advancement of developing economies in Asia and South Africa

Latin America

Africa

Middle East

E. Europe / Eurasia

Europe

Developing Countries:

Aging US and Western European infrastructure

$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000

Developed Pacific

Rest of Asia

India

Latin America

Developed Countries:

37% of world total

63% of world totalDemand for higher efficiency products

St i t l t i tStricter regulatory environment

Increasing project size

2525Global Demand Fueled by Aging US and European Infrastructure

And New Power Capacity Expansion in Developing Regions

Source: WEO 2008 Copyright OECD/IEA, 2008; Table 2.4, page 88, as modified by SPX Corporation

Installed Power Capacity by Region

Middle East6%

Africa8% W Europe

Australia4%

India10%

EMEA (746 GW)Asia (852 GW)

8% W. Europe45%

E. Europe19%

China55%

10%

Other Asia

Russia22%

Other Asia31%

Americas (676 GW)S. America

5%

26

N. America95%

Asia, EMEA and the Americas Have Significant Installed Bases of Power Generation Infrastructure

Source: Platt's Global Power Database January 2008; Limited to SPX addressable markets

Aging of Power Fleet

Percent of Installed Capacity (GW)Reaching 40 Years of Age by Year

45%

50%

35%40%

45% 2007 2011 2015

20%

25%

30%

5%

10%

15%

0%Americas Russia Rest of

EMEAIndia China

27The Aging of Existing Infrastructure Provides an Attractive Opportunity for Retrofit and Rebuild


Installed Power Capacity by Major Fuel

CoalNuclear

Nuclear10%

EMEA (746 GW)Asia (852 GW)

43%25%Gas13%

Gas32%

Coal77%

Americas (676 GW)

Coal53%

Nuclear18%

Gas29%

28The Majority of Existing Capacity is Coal Based


Overview of Coal-Fired Installed Base

Coal Plants 1 580 1 190

United States Western Europe

Coal Plants 1,580 1,190

Average Size (MW) 225 MW 185 MWAverage Size (MW) 225 MW 185 MW

Average Age (years) 34 29g g (y )

Average Efficiency 35% 36%

Note: efficiency = electricity producedenergy input

29

Source: IEA, Platts and Alliance Bernstein

New Power Plants Operate in the 40% to 48% Efficiency Range;Significant Opportunity to Improve Efficiency in the Installed Base

Typical Coal-Fired Power Plant

Thermal SegmentFlow SegmentIndustrial Segment

30

New Power Plant Opportunities

800 MW 1 000 MW

($ millions)

800 MWCoal Plant

1,000 MWNuclear Plant

$120$140$160

Pumps & Valves

Filters

SPX Potential Revenue~$150m

~$100m

$80$100$120 Filters

Heat Exchangers

Cooling Systems

~$80m

$20$40$60 Cooling Systems

$0Coal Coal Nuclear

(w / dry cooling) (w / wet cooling) (wet cooling only)

31

Source: SPX management estimates. Actual results may vary based on project specifications, raw material prices and competitive dynamics

Attractive Revenue Opportunities for New Power Plant Projects

Power Projects in China

SPX began selling dry cooling systems in China in 2002

2 d li f t i l tX 2 dry cooling manufacturing plants:– Zhangjiakou

– Tianjin

X

Awarded 8 contracts in 2008

Awarded 2 contracts YTD 2009

X

Awarded 2 contracts YTD 2009

In total, awarded 47 total projects from 2002 to today:

SPX cooling system in Zenglan, China

from 2002 to today:– 32 completed

– 7 under construction

8 i i i /d i

32

– 8 in engineering/design

Steady Orders for Dry Cooling Systems in Competitive Chinese Market;Average Dry Cooling Contract Size is $15m to $25m

Power Projects in South Africa

Current ProjectsCurrent Projects

SPX awarded contracts to supplySPX awarded contracts to supply critical components on two 4.8GW coal-fired mega-projects:

– Medupi

Boiler Island Turbine Island

– Kusile

Multi-year construction projects

T t l l f t t i SPX’

Jet fabric filters Air cooled condenser

Total value of contracts in SPX’s December backlog: ~$725m

Collected cash deposits between 5% d 15% h t tJet fabric filters

Air preheatersBoiler pressure parts

Air cooled condenser (dry cooling)*Feedwater heaters

5% and 15% on each contract

2009E revenue: $50m to $60m

3333South African Contracts Expected to Contribute to

Revenue and Earnings from 2009 through 2012

*Kusile contract only

Kendall Power Station

Kendall Power Station

The Kendall power station’s installed capacity is 4 116 GWinstalled capacity is 4,116 GW

Construction by Eskom was started in 1982 and completed in 1993, no major plants have been added since

Cooled by SPX’s dry cooling y y gtechnology which uses significantly less water in the cooling process than wet cooled power stationsp

Six of SPX’s natural draft, dry cooling towers are used to cool the Kendall Power station

3434The Kendall Power Station was the Last Major Project in South Africa

Presence in South Africa

Established in South AfricaKusile

Power StationMedupi Established in South Africa

in 1970 as DB Thermal

Currently 300k square feet

Medupi Power Station

Currently ~300k square feet of manufacturing capacity in Nigel, South Africa

Employing local labor for manufacturing

25.1% Black Economic Empowerment minority shareholder

3535SPX is Committed to Providing Critical Components to

Help South Africa Expand its Power Capacity

shareholder

Power Project in Iceland

Geothermal plants require a d d li t

SPX was awarded a $100m contract in June 2008 to provide a cold end solution on 5 power plants for Orkuveitacondenser and a cooling tower

Integration of condenser and wet cooling tower (cold end)

on 5 power plants for Orkuveita Reykajavikur

offers unique value proposition

Iceland’s Svartsengi power plant g p pwith SPX’s cold end solution

36Geothermal Power is an Attractive Niche Market Opportunity

Financing for South Africa & Iceland

South AfricaCustomer deposits receivedCustomer deposits received

Customer commitments remain intact

Eskom has increased electricity rates 27% to fund its capital spending program

remain intact

Progress has been made on fi i

The World Bank has indicated a commitment to loan Eskom $5b

Icelandfinancing

Governmental backing Reykjavik received a 170m Euro loan appears firmfrom a European investment bank

3737Financing Appears to be Secure at this Point;

We Will Continue to Monitor Each Situation as Projects Progress

Solar Opportunity

SPX designs crystal growing technology used by solar panel suppliers

Solar concentrator plants require stationary heat exchangers and cooling towerstowers

Emerging market opportunityN d S l O i l d bNevada Solar One is cooled by

SPX cooling technologies

3838Solar is Another Attractive Niche Market Opportunity

Power Transformers: US MarketCustomer Landscape

Investor Owned Utilities:

Power TransformerCustomer Landscape

– 200 Accounts

Public Power:Public Power:

– 3,000 Accounts

Independent Power Producers (IPPs)

Industrial / Commercial: – Automotive, Petroleum & Refining,

Chemical, Pulp & Paper, Etc.

39SPX Custom-Engineers Power Transformers for the

Transmission and Distribution of Electricity in the United States

Power Transformers: US Market

Q4 2008 orders down 27% f Q3

Power Transformer Revenuefrom Q3

Customer sentiment underlying this change:$420

~$500

(20%) to

($ millions)

y g g

– Uncertainty regarding the availability of capital in the current economic environment

$290

$420 (25%)

– The cost of long-term capital needed to fund capital projects

– Uncertainty as to what effect a slowing economy could have on electricity demand in the near-term

2006 2007 2008E 2009E

4040Transformer Orders Slowed During the Latter Part of 2008

Due to Customer Concerns Over the Cost and Availability of Capital

Note: 2008E as of 10/29/2008

Aging US Transformers

100

120

140

160

180

200

A In

stal

led

Increased Electricity Demand (1):

Demand Drivers

0

20

40

60

80

100

Tran

sfor

mer

GVA – Demand for electricity expected to

increase on average 1% per year from 2006 through 2030

90%100%

1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996

Year

Heightened Regulatory Standards:– Energy Policy Act of 2005

30%40%50%60%70%

80%

Haz

ard

Func

tion – Electric Reliability Organization

A i I f t t0%

10%20%

2 8 14 20 26 32 38 44 50 56 62 68 74

Age

Aging Infrastructure: – Average transformer age is 25 years

or greater

41Fundamental Long-Term Demand Drivers Have Not Changed;Need for Infrastructure Replacement is Still Significant

Source: Hartford Steam Boiler(1) WEO 2008 Copyright OECD/IEA, 2008; Table 6.1, page 88, as modified by SPX Corporation

Regulatory Influences on Investment

Federal regulation has increased since the last investment interruption

Current regulatory factors may limit the length of time that investment is deferred:

M d li bili d d– Mandatory reliability standards:• Potential fines up to $1m per day

– FERC incentives:• Capacity margins, transmission

constraints

– State requirements and regulation

– Homeland security

42Investment Decisions May be Influenced by Regulatory Standards

Global Tools & Diagnosticsglobal infrastructure x process equipment x diagnostic tools

Global Tools & Diagnostics

COMPANY CONFIDENTIAL January 21, 2009 43

Primary Tools And Diagnostics Offerings

Repair Labor Time Studies & Warranty Reduction I iti ti

Aftermarket Specialty Tools & EquipmentOEM

Electronic Diagnostic T l

VehicleRepair Manuals,

Initiatives Technology Based Applications for Content Creation Management & Delivery

OEM E ti l

Aftermarket Electronic Diagnostic Tools

Tools ToolsTechnical

Information

Wiring Diagrams

Training Development& DeliveryDealer Equipment

OEM Essential Service Tool Programs

Field Surveys, Investigations & Training P

and Services

Managed Program Provider to Support Customer Service ReadinessDES

Programs

Dealer Facility Design

44Only Global Provider with a Full Line of

Products and Services for the Transportation Industry

Tools & Diagnostics Market Drivers

2008E R b P d t

Key Market Drivers:

2008E Revenue by Product

Electronic Diagnostics

42%

New model introductions

Hard Tools33%

Increasing electronic complexity of vehicles

2008E Revenue by Market

Information & Services

25%

Environmental regulations

OEM outsourcing initiativesAftermarket

32% OEM OEM outsourcing initiatives32% OEM68%

4545New Model Introductions and Increased Vehicle Complexity Drive

Growth Opportunities for Diagnostic Platforms and Service Offerings


Strategic Transformation

2005 US B d B i

2008E revenue: ~$1b

2005: US Based Business w/ European Presence

North America

78%

Globalized business model:– Increased presence in

Europe and Asia– Restructured U.S. footprint

2008E: Global Business

Europe18%

Asia Pacific4%

Expanded relationships with European customers:

– Less dependent on U.S. big three

w/ Regional InfrastructureNorth America

54%

three

Investing for growth in Asian markets

ROW2%

Europe

Asia Pacific5%

4646

markets

Strategically Globalized Tools & Diagnostics Business

Europe39%


International Acquisitions

Annual Key CustomerYear AnnualRevenue* Location

Key CustomerRelationships

~$70m Germany BMW, Volkwagen

Year Acquired

2005

Johnson ControlsJohnson Controls European Diagnostics ~$80m France Renault, Peugeot2007

~$25m Germany Volkswagen2007

~$10m Shenzhen, China

A leading Chinese diagnostic supplier

2008* At the time acquired

47International Acquisitions have Increased Technical Capabilities

and Expanded Global Presence by Region or OEM

At the time acquired

Customer Evolution

2005 Revenue 2008E Revenue

GM, Chrysler, Ford29%

Aftermarket41%

GM, Chrysler, Ford23%

Aftermarket32%

BMW, VW,

Other OEMs30%

Other OEMs29%

, ,Renault-Nissan

16%

48Increased Presence with Leading European OEMs;

Decreased Dependence on US OEMs

Note: Data for Service Solutions business unit; 2008E estimated as of January 21, 2009

Evolving Footprint

2007 & 2008 restructuring Service SolutionsPlant Locations

8

gfocused on reducing U.S. cost base:

– Reduced footprint to one f t i l t d

21

3 3

manufacturing plant and one distribution center

– Headcount reduced by ~225

0

2003 2008

2009 restructuring focus:U.S. market rationalizationIntegrating European and

North American locationsEuropean locationsAsian locations

Integrating European and Asian acquisitions

4949Continuing to Shift Resources to Overseas

Chinese Vehicle Market

Projected New Car Sales in China

China car parc lags well

$16$18$20

($ billions)

China car parc lags well behind Europe and the Americas

$8$10$12$14

Overtake US SalesSignificant increase in new car sales expected

$2$4$6$8

Overtake Japan Sales

Dealer count expected to expand significantly

– ~7% growth in the near term$0

1995 2000 2005 2010 2015 2020 2025 2030

Source: WEO 2007 Copyright OECD/IEA, 2007; Figure 9.6, page 300, as modified by SPX Corporation

g

5050China is Expected to be a Significant Growth Opportunity

Asia-Pacific Expansion

Investing in R&D:Asia-Pacific Revenue*

$58 $59

$65

– ~85 engineers

Expanding OEM customer base:– 30 global OEM customers

$48

$58 – 30 global OEM customers– 29 independent Chinese OEMs

Acquired Autoboss in 2008

Honda order:Selected to design and deliver H d ’ 3rd ti

2005 2006 2007 2008EHonda’s 3rd generation diagnostics system

*Includes Asia, the Middle East and Australia

5151Technology and Expertise Driving Asia-Pacific Expansion

,

New Product Development

Wireless vehicle ti

Next Generation Global Diagnostic Tool Launched in Q4 2008

connection

Speed scroll control

A di & idAudio & video

Information at the fender

1980 to 2007 vehicle coverage

I t t ti itInternet connectivity

Touch screen selection

High speed scope

5252Continue to Focus on New Product Development to

Serve a Global Customer Base

High speed scope

Global Food & Beverage Marketglobal infrastructure x process equipment x diagnostic tools

Global Food & Beverage Market


Key Food & Beverage Market Drivers

Enhanced hygienic standards and regulatory controlsand regulatory controls

Economic expansion in developing regions

Process optimization

Energy efficiency and waste gy yreduction

Production of higher quality productsproducts

Demand for new plants

5454SPX Serves the Global Food & Beverage Market

Food Processing Market Characteristics

Food Processing Machinery and Equipment Global Forecast

Attractive End MarketCharacteristics

$40 7

$43.0

$45.4($ billions)

Regulated market6% CAGR

$38.6

$40.7

Stable, less cyclical

Consistent gro thConsistent growth

Developing market opportunities2008E 2009E 2010E 2011E

Source: Global Industry Analysts’ Food Processing Machinery and Equipment Report, 2007

55Global Food Processing Market is Steadyand Less Cyclical than Most Markets

Expected Growth by Region

2007 to 2010E Investmentfor Food Processing Machinery and

Equipment by Region 2007 Global FPME Spend by RegionEquipment by Region

Region

A i P

’07 – ’10ECAGR7 1%

EMEA30%

A i P ifi

2007 Global FPME Spend by Region

Asia-Pac

Latin America

US

7.1%

5.6%

3 6%

Asia-Pacific35%

US

Europe

3.6%

3.3%North America

18% Latin America

Source: Global Industry Analysts’ Food Processing Machinery and Equipment Report, 2007

18% Latin America10%ROW

7%

56Investment in Food Processing Machinery

Expected to be Higher in Developing Countries

Typical Food & Beverage Customers

Power

57Global Customer Base Including Many

Leading Food and Beverage Manufacturers

Food & Beverage Components

Positive Displacement Pumps: Pump viscous products such as tomato paste, chocolate

Centrifugal Pumps: Pump thin fluids for beverage or clean in place systems

Heat Exchangers: Temperature control for mechanically separated meats, margarines, icings, fondants

Valves: Process flow diversion & shut offValves: Process flow diversion & shut off

Mixers: Dispersion & solid suspension

58

Mixers: Dispersion & solid suspension

Diverse Product Portfolio of Custom Engineered Solutions

Food & Beverage Product Offerings

2008E Revenue by Type ~70% engineered components for niche end markets:

Engineered Components

70%

– Built to order

~30% full-line and skidded process systems:

– Engineered, designed and installed

Process Systems

30%

59SPX Offers Customers Engineered Components,

Skidded Sub-Systems and Full-Line Systems


Food & Beverage Presence Before APV

Strong Presence

Growing Presence

60Global Expansion of Manufacturing, Sales and Distribution Presence Underway Prior to APV Acquisition…

Food & Beverage Presence Including APV

Strong Presence

Growing Presence

Key APV Additions

APV has increased SPX’s presence in developing growth markets:

– China

– Eastern Europe

S th A i– South America

– Middle East

– Russia

– South Africa

61…Addition of APV’s Global Platform is Expected to Accelerate SPX Flow Technology’s Global Expansion

South Africa

APV Integration Update

Streamline combined global presence:– Targeting headcount reduction of ~500 people

Leverage SPX operating initiatives:

– Implementation of “Lean”p

– Leverage global supply base

– IT consolidation

Increased localization of manufacturing

Leverage respective distribution markets globally

– Product “pull-through” from combined distribution channels

62Expect Integration to be Completed in 2010

Projected Annualized Savings of $60m to $80m

Update on Reporting Segmentsglobal infrastructure x process equipment x diagnostic tools

Update on Reporting Segments


Financial Reporting Segments

Th l E i tFlow Technology Thermal Equipment & Services Test & Measurement Industrial Products &

Services

Food & beverage Power generation Vehicle tools & di ti

Power transmission & di t ib ti

End Markets ServedEnd Markets Served

Power generation

General industrial

Chemical

HVAC

General industrial

diagnostics

Telecom

Transportation

& distribution

Solar power generation

General industrialOil & gas

Air dehydration

General industrial

Aerospace

Broadcast

Automotive

64Financial Results Reported in Four Segments

Automotive

Financial Reporting Segment

2008E Revenue by Segment

Thermal

Flow Technology

34%

Thermal Equipment &

Services29%

Test & MeasurementIndustrial easu e e t

19%Products and Services

18%

65

Note: Data from continuing operations; 2008E as of 10/29/2008

Flow Technology Contributed 34% of Consolidated Revenue in 2008E

Flow Technology Product Overview


Engineered gComponents

85%

Pumps Valves

Skidded and

MixersHomogenizers

Full-Line Systems

15%

66Diverse Offering of Branded, Custom-Engineered Processing Solutions

Dryers Heat ExchangersNote: Data from continuing operations; 2008E estimated as of January 21, 2009

Flow Technology Revenue Breakdown

2008E Revenue by End Market

2008E Revenueby Geography

Power Oil & Gas

12%North AmericaEurope

35%

27%Power & Energy

Generation8%

Food & Beverage

36%Mining

7%

26%

Air Dehydration8%

General Industrial

20%Chemical

Africa3%

South America

7%Middle East

7%

Asia-Pacific22%

8% Chemical9%

7% 7%

67Significant Global Presence;

Food & Beverage is Primary End Market


Flow Technology Backlog and Revenue($ millions)

2008 Quarterly Backlog

Q4 b kl d li 15%

$799 $782 $763

$646

($ millions)

Q4 backlog decline: 15%– 9% due to foreign exchange

fluctuations

$646

FX translation impact: (~7%)

Li it d d i ibilit t Q1

Q1 Q2 Q3 Q4*

Annual Revenue

2009 Drivers

Limited order visibility past Q1

End market trends:– Oil & gas and power markets steady$1,070

~$2,000$1,875 to

$1,975

+3% to5%

– Food & beverage markets steady

– General industrial, chemical and dehydration markets softening due to economic slowdown2007 2008E 2009E LT

6868Targeting Low Single Digit Organic Growth in 2009

Note: Data from continuing operations; 2008E as of 10/29/2008*12/31/2008 backlog estimated as of January 21, 2009

Flow Technology Segment Margins

Annual Segment Margins 2009 Drivers

APV Integration:– Facility consolidations

H d t d ti f 500

16.4%13.7% to

14 7%

14% to 16%

– Headcount reduction of ~500

End market trends:Prepared for cost reductions if

12.0% to 12.2%

14.7%

– Prepared for cost reductions if orders decline as the year progresses

2007 2008E 2009E LT

69692009E Margin Improvement Driven by APV Integration


Flow Technology Strategic Focus

APV integration

Globalizing sales channels to leverage niche products

Increasing presence in developing economies

New product development in food & beverage and power markets

Potential acquisitions

70Focus on Continued Globalization and Expansion in Key End Markets

Potential acquisitions

Thermal Product Overview

Personal Comfort Heating


Cooling Systems

59%

18%

Dry Systems48%

Wet Systems33%

Heat Exchangers and Filters

23% Parts2%

Package Systems

17%

Feedwater Heaters

Dry Cooling SystemWet Cooling SystemRotating Heat Exchangers

71A Leading Global Provider of Cooling Systems

And Heat Exchange Technologies


Thermal Revenue Breakdown



North America47%

Power Generation

59%

Europe28%

Petrochemcal10%

Africa4% Asia Pacific

14%Middle East7%

HVAC28%

Industrial3%

72Significant Global Presence;

Power Generation is Largest End Market


Thermal Backlog & Revenue ($ millions)


$2,003 $2,002 $2,084

($ millions)

Q4 backlog increase: 4%$$1,401 – ~$125m order in South Africa

– 2 dry cooling contracts in China– 6% decline due to foreign exchange

fluctuations

Q1 Q2 Q3 Q4*

Annual Revenue5%+

2009 Drivers


$1,561

~$1,700$1,695 to

$1,775

5%+ p ( )

Good visibility to 2009E bookings

End market trends:Power generation markets steady

2007 2008E 2009E LT

– Power generation markets steady

– HVAC market steady

– Industrial market for package equipment softening

7373

2007 2008E 2009E LT

Targeting Mid Single Digit Organic Growth in 2009

Note: Data from continuing operations; 2008E as of 10/29/2008*12/31/2008 backlog estimated as of January 21, 2009

Thermal Segment Margins


High return on sales petrochemical project in 2008

11.7% to 11 9% 10.4% to

11% to 13%

Project management and execution

Lean initiatives

10.4%11.9% 10.4% to

11.4%13%

Lean initiatives

Rationalization of package cooling business in China

2007 2008E 2009E LT

7474Margin Decline in 2009E Due Primarily to Lower ROS Project Mix


Thermal Strategic Focus

New product development, particularly around energy efficient offeringsgy g

Globalizing historically regional products

South African project execution

Margin expansion

Working capital improvement

75Focus on Product Development and Improved Project Execution

Test & Measurement Product Overview


Diagnostic Tools39%

Hard Tools35%

Fare Box Collection Systems

6%

Information & Services

20%

76Providing Process Solutions to

Global, Diverse Markets


Test & Measurement Revenue Breakdown



Americas57%

Vehicle Tools & Diagnostics

86%

Europe35%

Asia Pacific7%

ROW1%

Telecom8%

Transportation6%

8%

77Leading Global Provider of Essential Tools and Diagnostic Systems for New Vehicle Platforms


Test & Measurement RevenueAnnual Revenue

($ millions)

Annual Revenue

$1,081 ~$1,100 $920 to$980

+3% to 5%

2009 Drivers


Short cycle business

End market trends:Declining US market:

2007 2008E 2009E LT

– Declining US market: • No significant new model launches

• Dealership consolidation

• “Big 3” financial difficultiesAnnual Segment Margins11% to

– Europe and Asia steady

Significant U.S. restructuring:– Targeting headcount reduction of

11.0%10.5% to

10.7% 8.3% to 9.3%

11% to 13%

– Targeting headcount reduction of ~400 employees

Integration of European and Asian acquisitions2007 2008E 2009E LT

7878Expecting 2009E Organic Decline of ~10%;Significant Restructuring Actions Planned

q2007 2008E 2009E LT


Industrial Products OverviewH d li T lP T f


Hydraulic ToolsPower Transformers

Power Transformers

43%

Helicopter

Hydraulic Tools13%

Transmission Filters

Helicopter Rotary Parts

10%

Broadcast AntennasAerospace Components

Other11%

BroadcastAntennas

7%

Crystal Growers

8%

8% Broadcast AntennasAerospace Components

79Power Transformer Sales Represent 43% of Total Revenue

Note: 2008E estimated as of January 21, 2009

Industrial Revenue Breakdown



North America82%

Power Generation

7%

Hydraulic Tools

Power Transmission &

Distribution43%

13%

Broadcast10%

Europe8%

Asia Pacific8%

ROW2%

General Industrial

8%

Automotive9%

Aerospace10%

10%

8%

8082% North American Revenue Base;

Power and Energy Infrastructure is Most Significant End Market

Note: 2008E estimated as of January 21, 2009

Industrial Backlog & Revenue ($ millions)


$686 $711$639

$550

($ millions)

Q4 backlog decrease: 14%

2009 Drivers

– Transformer orders down 27%– No new solar orders

Q1 Q2 Q3 Q4*

Annual Revenue

2009 Drivers


Good visibility to 1H of 2009

$865

~$1,050

$790 to $850

3% to 5% Key product line trends:

– Transformer shipments expected to decline significantly in 2H

2007 2008E 2009E LT

– Expect slowdown in solar orders

– Expect less discretionary spending on hydraulic tools

Conversion to HD broadcast

8181Credit Crisis Significantly Impacting Industrial Businesses;

Expecting Organic Decline Greater than 20%

2007 2008E 2009E LT – Conversion to HD broadcast required by FebruaryNote: Data from continuing operations; 2008E as of 10/29/2008

*12/31/2008 backlog estimated as of January 21, 2009

Industrial Segment Margins


Stronger 1H as we execute on the transformer backlog

Expect margins to decline in the

20.6% to 20.8% 18.5% to

19.5%~20%

Expect margins to decline in the 2H of 2009

Business by business measured restructuring response to changing

17.4%

restructuring response to changing environment

2007 2008E 2009E LT

8282Targeting 2009 Margins Between 18.5% and 19.5%


EGS Electrical Group Joint Venture($ millions)

Equity Earnings

($ millions)

EGS 2008E Revenueby End Market

$45$43

Infrastructure47%

General

$39$43General

Industrial28%

2007 2008E 2009E

Aerospace2%

Auto

Agriculture3% Chemical

Sanitary9% 2007 2008E 2009EAuto

5%6%9%

N t 2008E f 10/29/2008

8344.5% Interest in EGS Joint Venture with Emerson Electric;

Solid Earnings and Cash Contributor

Note: 2008E as of 10/29/2008

2009 Financial Targetsglobal infrastructure x process equipment x diagnostic tools

g


2009 Financial Targets

20092009 Target Range

Revenue

Comments$5,280 to $5,580 Organic: flat to (5%)

($ millions, except per share data)

Revenue

Segment Income Margin

FX: (~5%)Discontinued: (~2%)

12.5% to 13.5%

Earnings Per Share $5.40 to $5.80 (10%) to (16%) (1)

Free Cash Flow $230 to $270 85% to 95% of NI

Capital Spending

N t D t f ti i ti

~$100

(1) As compared to 2008E adjusted EPS; see appendix for non-GAAP reconciliations

852009E EPS Between $5.40 and $5.80

Note: Data from continuing operations

Full Year Mid-Point Target Financial Model($ millions except per share data) 2008E 2009E ($ millions, except per share data)

Guidance Mid-Point

Guidance Mid-Point

Revenue $6,000 $5,435Segment Income Margin 13.3% 13.0%

Corporate overhead (107) (95) Pension / PRHC (37) (36) Stock-based compensation (43) (28) Special charges (16) (65) Operating Income $598 $482

% of revenues 10 0% 8 9% % of revenues 10.0% 8.9%

Equity Earnings in J/V 46 43 Other Income/(Expense) (7) (7) Interest Expense (107) (95) Pre-Tax Income from Continuing Operations $530 $423

(1 8) (1 2)Tax Provision (178) (142) Income from Continuing Operations $352 $281

Tax Rate 34% 34%Weighted Average Dilutive Shares Outstanding 55 50

(1) EPS Mid-Point from continuing operations 6.45$ 5.60$

EPS Guidance Range $6.40 to $6.50 $5.40 to $5.80

EBITDA 800$ 725$

(1)

86

(1) Adjusted EPS, see appendix for reconciliationNote: Data from continuing operations, 2008E targets as of October 29, 2008

Mid-Point EPS Guidance at $5.60

2009 EPS Bridge

2008E Adjusted EPS Guidance Range $6.40 - $6.50

EPS

Segment Income ($0.75) to ($0.95)

Foreign currency translation ($0.30) to ($0.40)

Increased special charges ($0.60)

Reduced share count $0.45

Reduced stock compensation expense $0.20

Reduced corporate expense $0.15

Reduced interest expense $0.15

2009E EPS Guidance Range $5.40 - $5.80

87(10%) to (16%) Decline in Earnings Per Share Expected in 2009

Note: Data from continuing operations, 2008E as of 10/29/2008

2009 Full Year Guidance

Stronger organic growthAdditional share repurchases

High-End Potentials

Additional share repurchasesAcquisitionsLower tax rateForeign exchange fluctuations

Earnings Per Share:

$5.40 to $5.80 g gRaw material cost changes

Low-End PotentialsFree Cash Flow:

Lower organic growthContinued disruption in credit marketsDisposals

$230m to $270mp

Foreign exchange fluctuationsRaw material cost changes

N t D t f ti i ti S di f GAAP ili ti

88Certain Events Could Influence Earnings Per Share

Note: Data from continuing operations; See appendix for non-GAAP reconciliations

2009 Q1 Targets

($ millions, except per share data)Q1 2009E

R $1 350 (5%) t (8%)

Q1 2008

Revenue $1,350 (5%) to (8%)

Segment Income $ $160 $130 to $135

(16%) to (19%)(16%) to (19%)

Segment Income % 11.9% 10.3% to 10.7%

(120) to (160) bps(120) to (160) bps

EPS $1.15 $0.75 - $0.85

Note: Data from continuing operations (25%) to (35%)(25%) to (35%)

89Expect Decline in Q1 EPS of 25% to 35%

g p ( ) ( )( ) ( )

Capital Structure and Liquidityglobal infrastructure x process equipment x diagnostic tools

p q y


Financial Position

December Balance Sheet:Debt to EBITDA*

($ millions)

– $477 of cash on hand

– $1,310 of total debt

2.3x

1.6x

Improving leverage ratios

$

1.8x

1.1xRequired debt payments of $75 in 2009 and 2010

2007 2008E*

Net Leverage Gross Leverage

9191Solid Financial Position and Improving Leverage Ratios

*2008E based on EBITDA as of October 29, 2008 and December Balance Sheet

Projected Liquidity

($ millions)

Amount2008

E ti t d h h d t 12/31/2008 $477Estimated cash on hand at 12/31/2008 $477Available, committed credit lines 543

Total Estimated Availability as of 12/31/08 $1,02020092009

Projected FCF $250

Proceeds from closed asset disposals 20

Minimum remaining debt payments (75)Minimum remaining debt payments (75)

Expected dividend payments (50)

Projected 12 Month Liquidity Situation $1,165

Note: Our ability to access these sources under our various facilities may be limited by the terms of

92Projected Available Liquidity of Over $1b;

Will Focus on Maintaining Liquidity As 2009 Progresses

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

Executive Summaryglobal infrastructure x process equipment x diagnostic tools

y


Current SPX Situation

2009 EPS Guidance: $5.40 to $5.80 per share

Solid financial position and liquidity: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 d i fl ibili f h frevenue 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%

94

g g g g

Carefully Monitoring Risks In Uncertain Economic Environment;Continue to Drive Long-Term Strategy

Questionsglobal infrastructure x process equipment x diagnostic tools

Q


Re-Stated Quarterly Segment Data

Fourth Quarter Full Year200 2008 200 2008 200 2008 200 200First Quarter Second Quarter Third Quarter

2007 2008 2007 2008 2007 2008 2007 2007

Flow Technology Revenue $237 $492 $266 $535 $256 $493 $311 $1,070 Segment Income $37 $47 $44 $70 $44 $56 $51 $175 Segment Margins 15.4% 9.5% 16.5% 13.1% 17.2% 11.3% 16.4% 16.4%

Test and Measurement Revenue $236 $270 $284 $320 $245 $260 $315 $1,080 Segment Income $24 $24 $32 $37 $22 $30 $41 $118 Segment Margins 10.0% 8.9% 11.2% 11.4% 9.0% 11.7% 13.0% 11.0%

Thermal Equipment and Services Revenue $313 $347 $388 $409 $422 $437 $438 $1,561 Segment Income $16 $36 $38 $46 $57 $52 $52 $163 Segment Margins 5.2% 10.5% 9.8% 11.1% 13.4% 12.0% 12.0% 10.4%

Industrial Products and Services Revenue $187 $241 $228 $248 $224 $296 $226 $865 Segment Income $25 $53 $33 $55 $42 $69 $50 $150 Segment Margins 13.6% 22.2% 14.4% 22.1% 18.8% 23.5% 22.1% 17.4%


96

g p

Non-GAAP Reconciliationsglobal infrastructure x process equipment x diagnostic tools


2009E Free Cash Flow Reconciliation

Free Cash Flow Reconciliation(unaudited)

SPX Corporation and Subsidiaries

($ millions)

Net cash from continuing operations 330$ 370$

2009E Guidance Range

Net cash from continuing operations 330$ 370$ Capital expenditures (100)$ (100)$

Free cash flow from continuing operations 230$ 270$

98

EBITDA Reconciliations

($ millions) 2008E 2009E

Revenues $6,000 $5,435Revenues $6,000 $5,435

Net Income $352 $280Income tax provision (benefit) 178 142Interest expense 113 103Income before interest and taxes $643 $525

Depreciation and intangible amortization expense 114 105EBITDA from continuing operations $757 $630

Adjustments:Non-cash compensation expense 43 28Extraordinary non-cash charges (10) 0y g ( )Extraordinary non-recurring cash charges 11 65Excess of JV distributions over JV income 12 0Loss (Gain) on disposition of assets (14) 5Pro Forma effect of acquisitions and divestitures (2) 0Other 4 (3)

Adjusted LTM EBITDA from continuing operations $800 $725

99

Note: EBITDA as defined in the credit facility; 2008E as of 10/29/2008

Organic Revenue Growth Reconciliation

Net Revenue Acquisitions Organic G h/(D li ) d O h G h/(D li )

Foreign Growth/(Decline) and Other Growth/(Decline)

2005 6.2% 0.5% 0.0% 5.7%

Currency

2006 11.8% 1.4% 0.7% 9.7%

2007 15.7% 3.2% 2.7% 9.8%

2008E 28% - 29% 18% - 20% 1% - 2% 7% - 8%


100

2007 & 2008 Adjusted Earnings Per Share

2007 2008E

GAAP EPS from continuing operations $5.33 $6.76 $6.86

Q3 Tax Benefits (0 34) (0 47) (0 47)Q3 Tax Benefits (0.34) (0.47) (0.47)

Q3 Legal Settlement (Other Expense) 0.11 0.11

Q4 Tax Benefits (0.25)

Q4 Asset Impairment 0.05p

Q4 Legacy Legal Matters (Corporate Expense) 0.06

Adjusted EPS from continuing operations $4.85 $6.40 - $6.50

101


2006 Adjusted Earnings Per Share

FY 2006

GAAP EPS from continuing operations $3.74

Q2 Tax Accrual Reversal (0 57)Q2 Tax Accrual Reversal (0.57)

Q2 VSI Legal Settlement 0.20

Q4 Miscellaneous Tax Benefits (0.28)

Q4 Charges for Legacy Legal Matters 0.07Q g g y g

Loss from operations discontinued in 2007 (0.08)

Adjusted EPS from continuing operations $3.07

102


2005 Adjusted EPS Reconciliation

GAAP net income per share $15.33

Year ended, Dec 31, 2005

Income from discontinued operations (15.61)SFAS 142 asset impairment 0.96Loss on early extinguishment of debt 0.96Normalized tax rate (40%) 0 41Normalized tax rate (40%) 0.41Projected share count (64m) 0.26Normalized interest expense ($37m) 0.12Other (1) 0.19

Adjusted earnings per share $2.62

(1) Includes income from businesses discontinued in the second half of 2005,

Note: The model above has been presented on the same basis as the annual earnings per share

other expense relating to FX losses on the repatriation of cash, a one-time legal settlement at our EGS joint venture and a one-time gain on the sale of property.

103

Note: The model above has been presented on the same basis as the annual earnings per share model presented in SPX’s March 3, 2005 investor presentation

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SPX Investor Meeting

Economy & Finance