Investor HandoutFirst Quarter 2018
Company Overview
1997-2004 2005-2007 2008-2014 2015
Sele
ct K
ey
Acq
uis
itio
ns
Select Key Divestitures
Legacy Automotive
Market Diversification
Strategic Market Focus
Flow Market Development
Flow Spin-Off
‒ Sealed Power ‒ Best Power
+ General Signal + United Dominion
‒ EST‒ Kendro‒ Bomag
‒ Service Solutions‒ EGS JV Interest‒ Precision Components
+ APV+ Anhydro+ Gerstenberg + ClydeUnion
+ Johnson Pump
‒ Contech‒ LDS‒ Vance
TRANSFORMATION
TRANSFORMATION ROADMAPJourney to a High Performing Operating Enterprise
ENTERPRISE STRATEGY
Product Strategy
Organic Growth Investments
CREATE VALUE AS A HIGH PERFORMING OPERATING ENTERPRISE
Winning culture
Team focused
Customer centric
Proven system
Accountability
Sustainable, high performanceContinuous Improvement Focus
Operating Structure / Financial Stability
2015-2017: realignment program, transition to operating structure; debt refinancing and net debt reduction
4
General Industrial, 25%
Oil and Gas, 19%
Food and Beverage, 20%
Dairy, 16%
Compressed Air, 8%
Power Generation, 7%
Chemical Processing, 5%
$1,952m
Investor HandoutFirst Quarter 2018
5
Company Overview
2017 Revenue by End Market
FOOD & BEVERAGE
37%
INDUSTRIAL35%
POWER & ENERGY
28%
$1,952M
2017 Revenue by Segment
High quality products; Well-recognized, trusted brands
Deep application expertise in rotating, actuating and hydraulic equipment
Process expertise to optimize configuration in critical and high standard applications
Global manufacturing footprint
Large install base drives attractive aftermarket business
Strengths
Key Brands
Revenue Profile and Financial Performance Investor HandoutFirst Quarter 2018
38% 30%
23%
7%2%
$2,805 $2,770
$2,389
$1,996 $1,952~$2,050
2013 2014 2015 2016 2017 2018E
Revenue
11.8%
13.9%12.3%
10.0% 10.1%~12.1%
Segment Income
2017 Revenue by Geography Historical Financial Performance
7
Q1 Q2 Q3 Q4FY
2017Commentary
Order Growth (y-y) +2% +4% +12% +25% +10% Driven by all three segments
Backlog Growth (YTD) +16% +19% +23% +27% +27% Organic order growth and currency benefit
Adjusted Free Cash Flow $28m $51m $52m $92m $223m Project milestones and completions
Accounts receivable reduction
Proceeds from Asset sales $20m $11m $6m - $37m Sale of legacy assets and closed facilities
Net Debt(1) Reduction 5% 7% 7% 10% 29% $213m of gross debt reduction
Voluntary prepayment of $100m on term loan in Q4
Net Leverage(1) 3.9x 3.8x 3.4x 3.0x 3.0x Significantly improved financial position
Realignment Savings $17m $11m $14m $8m $50m Achieved full year savings target
2017 HIGHLIGHTS10% order growth, net leverage to 3.0x, achieved realignment savings
(1) Net debt and leverage calculations use debt and EBITDA as defined by the company’s credit facilities
Note: See appendix for reconciliation of non-GAAP measures
Investor HandoutFirst Quarter 2018
Investor HandoutFirst Quarter 2018
8
2017Achieved to Date
Program Target
Cost Savings(1) $50 $120 ~$140
Special Charges $16 $138 $138
Headcount Reduction 425 ~5%
1,700~20%
~20%
Footprint Optimization:
Opened 300k square foot manufacturing site in Bydgoszcz, Poland
8 plant consolidations:
• 6 in Europe
• 1 in North America
• 1 in Asia Pacific
1 shared service center consolidation
Opened 2 new service centers (Corpus Christi and Saudi Arabia)
Workforce Actions:
Streamlining functional support
Increasing capabilities in high-value countries
Strategic hires in key commercial and operational roles
($ millions)
(1) Net of merit increases
2015-2017 REALIGNMENT PROGRAMfinal actions substantially complete
Cost savings target of ~$140m:
$120m realized in 2017
$20m incremental savings to be annualized in 2018E
~66% structural / ~33% related to volume declines
Investor HandoutFirst Quarter 2018
9
Global Footprint
End of 2014
End of 2016
End of 2017
Employees ~8,400 ~7,100 ~7,000
Manufacturing Sites
38 34 31
Optimizing our global footprint to improve competitive advantage
Investor HandoutFirst Quarter 2018
10
Bydgoszcz, Poland Facility300k square foot state-of-the-art manufacturing facility
Net investment of $60m to $65m included in realignment program:
~$20m net capital investments [capex]
$40m to $45m of restructuring [special charges]
~$25m of tax incentives mostly recognized in 2016
Plant consolidations completed:
Kolding, Denmark: 84k square feet
Heat exchangers
Unna, Germany: 60k square feet
Valves and homogenizers
Orebro, Sweden: 130k square feet
Marine and Agricultural pumps
Other locations under review
Investor Handout
First Quarter 2018
11
Highest Quarterly
orders since xx
$453$535 $504 $484 $494
$28$72
Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017
Orders > $15m
Run-Rate Orders
$453
$535$504 $512
$565
Y-Y Organic Change (8%) 4% 5% 10% 20%
Q4 Year-Over-Year Analysis
Q4 2017 orders up 25%, or $112m:
Organic increase of 20%, or $92m
Currency benefit was ~5%
Q4 Sequential Analysis
Q4 2017 orders up 10%, or $53m:
Currency benefit was < 1%
($ millions)
QUARTERLY ORDERSconsolidated
4 consecutive
quarters of
organic growth
Highest level of
orders since
Q1 2015
Investor Handout
First Quarter 2018
12
Highest Quarterly
orders since xx
$160 $184 $165 $161 $163
$28$72
Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017
Orders > $15m
Run-Rate Orders
$160$184
$165$189
$235
Y-Y Organic Change (4%) (12%) (7%) 14% 24%
Q4 Year-Over-Year Analysis
Q4 2017 orders up 47%, or $75m:
Organic increase of 42%, or $67m
Currency benefit was ~5%
Q4 Sequential Analysis
Q4 2017 orders up 25%, or $46m:
Currency benefit was < 1%
($ millions)
FOOD & BEVERAGEquarterly orders
Highest Quarterly
orders since xx8% Full Year
Organic
Growth
Investor Handout
First Quarter 2018
13
Highest Quarterly
orders since xx
Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017
Orders > $15m
Run-Rate Orders
$122
$168
$145 $140$150
Q4 Year-Over-Year Analysis
Q4 2017 orders up 23%, or $28m:
Organic increase of 18%, or $22m
Currency benefit was ~5%
Q4 Sequential Analysis
Q4 2017 orders up 7%, or $10m:
Currency impact was < 1%
($ millions)
POWER & ENERGYquarterly orders
Y-Y Organic Change (12%) 31% 10% 17% 18%
Highest Quarterly
orders since xx19% Full Year
Organic
Growth
Investor Handout
First Quarter 2018
14
Highest Quarterly
orders since xx
Q4 Year-Over-Year Analysis
Q4 2017 orders up 5%, or $9m:
Organic increase of 2%, or $3m
Currency benefit was 3%
Q4 Sequential Analysis
Q4 2017 orders down (2%), or ($4m):
Currency benefit was < 1%
($ millions)
INDUSTRIALquarterly orders
Highest Quarterly
orders since xx5% Full Year
Organic
Growth
Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017
Orders > $15m
Run-Rate Orders
$171$183 $193 $184 $180
Y-Y Organic Change (7%) 3% 14% 3% 2%
Investor Handout
First Quarter 2018
15
100 bps of margins
expansion year
over year
Q4 2017 Results & 2018 Guidance
February 6, 2018
BACKLOGhigher beginning backlog across all 3 segments
Highest Quarterly
orders since xx
Backlog
Increased
27%, or $214m
in 2017
$ Millions
Year-Over-Year Analysis
Backlog up 27%, or $214m:
Organic growth of 19%, or $150m
Currency benefit of 8%, or $64m
Sequential Analysis
Backlog up 4%, or $37m:
Organic growth of 3%, or $31m
Currency benefit of 1%, or $6m
$324 $411 $409
$296
$335 $372
$165
$215 $217
Q4 2016 Q3 2017 Q4 2017
Backlog Analysis
Industrial
Food & beverage
Power & Energy
$784
$961 $998
Investor Handout
First Quarter 2018
16
Highest Quarterly
orders since xx
2018 GUIDANCE OVERVIEWas compared to 2017 adjusted actuals
Highest Quarterly
orders since xx
Revenue +5%
EPS +88%
EBITDA +25%
2017 Adjusted Actuals
2018 Mid-point
Commentary
Revenue $1,952 $2,050 5% growth: 3% organic: 2% currency
Operating Income $138 $191 +$53 or 38% growth
Operating Income % 7.1% 9.3% 220 points of expansion
EPS $1.27 $2.39 88% increase
EBITDA $200 $250 25% increase, or $50
Free Cash Flow (1) $223 $115 ~110% conversion of 2018E net income
(1) 2018 guidance includes $13m cash payments related to company’s realignment program
Note: See appendix for reconciliation of non-GAAP measures
($ millions; except per share data)
Food & Beverage
Investor Handout
First Quarter 2018
18
Highest Quarterly
orders since xx
Food & Beverage Overview
Highest Quarterly
orders since xx
Aftermarket32%
Original Equipment
68%
$716m
Food & Beverage57%
Dairy41%
Personal Care2%
$716m
Systems, 39%
Components, 29%
Aftermarket, 32%
$716m
28% 35%
30%
3%4%
2017 Revenue by OE / AM
2017 Revenue by End Market
2017 Revenue by Product
2017 Revenue by Geography
Investor HandoutFirst Quarter 2018
19
Food & Beverage OfferingsFull line of components, turn-key systems, and related aftermarket products
Pumps Valves Heat Exchangers
DispersionSeparation & Clarification Mixing
MECHANICAL COMPONENTS PROCESS TECHNOLOGY
Investor HandoutFirst Quarter 2018
20
Customers and ApplicationsGlobal customer base across a number of applications
Infant Formula
Milk & Whey Powders
Dairy Ingredients
Recombined Milk Products
Butter & Spreads
Yoghurt & Fermented Products
Fresh & UHT Milk
Pressed Cheese
Vegetable Fats
Margarines
Baby Food
Ingredients & Flavorings
Yeast extract
Condiments
Bakery & Confectionery
Proteins
Tea & Coffee Drinks
Instant Coffee
Nutritional & Soy Drinks
Soft Drinks
Fruit Juices
Flavored Water
Beer
Wine
Spirits
Silica & Industrial powders
Extraction, Recovery of Organic Substances
Cosmetics
Healthcare
Detergents
Solvent Recovery
Biofuel, Concentration of Glycerol, Methanol
DAIRY FOODS BEVERAGES PERSONAL CARE/OTHER
CUSTOMER EXAMPLES
Investor HandoutFirst Quarter 2018
21
Process TechnologiesSystem sales are structurally lower margin due to 3rd party content;However, growing installed base fosters component and aftermarket service business
3rd Party Pass-Through
Content45% to 65%
SPX FLOW Engineering20% to 30%
Mechanical Components15% to 25%
GENERAL COST BREAKDOWN INTEGRATED DAIRY EXAMPLE
Investor HandoutFirst Quarter 2018
22
Innovation Centers Comprehensive R&D facilities are critical to our success
Innovation =Insight + Execution
with the purpose of creating something new to provide value to customers and generate value for SPX FLOW
shareholders
Investor HandoutFirst Quarter 2018
23
Innovation Examples Innovation and product development have strengthened our offerings
New Dryer air distributer enhances plant performance and customer attraction in Dry Dairy & Food
Integrated (Wet&Dry) Dairy drives productivity, product safety and Components / Aftermarket content
SPX technology and filling partners for Yoghurt and UHT milk is a strong liquid dairy driver
Microparticulation of Whey helps our customers create low fat and healthy drinks and food products
Homogenizer pressure and capacity improvements to strengthen SPX’s competitive position
The Mixer portfolio strengthens our market position in Infant formula, Beverage and Food applications
Unique Thermal Infusion System increases quality in high growth Infant Formula and specialty drinks
Investor Handout
First Quarter 2018
24
Highest Quarterly
orders since xx
Aftermarket Opportunity
Highest Quarterly
orders since xx Gain self-sufficiency in routine maintenance areas Outsource for specialized tasks, when stretched too thin or when significant
modifications required
Reduce Downtime & Business Risk
Outsource Non-core Functions
Reduce Overhead & Working Capital
Account for Skilled Workforce Shortage
Where Do Our Customers Need Our Help?
Maintain 24/7 operating environment
While also ensuring equipment and process quality / integrity
Reduce internal costs in less frequently needed product and service areas
Improve utilization rates and productivity of existing assets and processes
Labor costs rising as the skilled labor pool remains limited
Leverage our
technology by
providing great
customer
service
Investor HandoutFirst Quarter 2018
25
First 10 Years of Typical F&B SystemAftermarket opportunity is ~20% - 30% of the System’s value
Investor Handout
First Quarter 2018
26
Highest Quarterly
orders since xx
New Product Launch
Highest Quarterly
orders since xx
Twin screw pump
Background:
• Food producers may use positive displacement pumps for product and centrifugal pumps for clean in place
• Twin screw can process product and CIP
• 2017 North American launch
Market:
• Anticipated high growth in overall twin screw market
• Competitive market environment
• SPX FLOW Advantages:
• Well recognized, strong brand name (WCB)
• Established distribution channel
• Only U.S. manufacturer of the twin screw pump
Industrial
Investor Handout
First Quarter 2018
28
Highest Quarterly
orders since xx
Industrial Overview
Highest Quarterly
orders since xx
Aftermarket33%
Original Equipment
67%
$692m
49% 24%
23%
4%<1%
2017 Revenue by OE / AM
2017 Revenue by End Market
2017 Revenue by Product
2017 Revenue by Geography
General Industrial
50%
Air Treatment20%
Marine / Water11%
Chemical Processing
10%Mining
6%Transportation
3%
$692m
Mixers25%
Dehydration Products
22%Hydraulic
Tools18%
Pumps15%
Heat Exchangers
12%Other
8%
$692m
Investor HandoutFirst Quarter 2018
29
Industrial Products
DEHYDRATION / AIR TREATMENT MIXERS
HYDRAULIC TECHNOLOGIES PUMPS HEAT EXCHANGERS
Investor HandoutFirst Quarter 2018
30
Customer and Market Examples
Investor Handout
First Quarter 2018
31
Highest Quarterly
orders since xx
New Product Launch
Highest Quarterly
orders since xx
Industry leading energy savings
Simple, efficient design
Patent Pending 3-1 PCM Heat Exchanger
Low cost manufacturing in Busan, Korea
Korea launched phase 1 in 2016
US / EMEA launch 2017
FLEX Dryer
A better
product at a
better price to
capture the
energy
savings
market
Power & Energy
Investor Handout
First Quarter 2018
33
Highest Quarterly
orders since xx
Power & Energy Overview
Highest Quarterly
orders since xx
Aftermarket48%
Original Equipment
52%
$543m
41% 29%
12%
18%<1%
2017 Revenue by OE / AM
2017 Revenue by End Market
2017 Revenue by Product
2017 Revenue by Geography
Midstream Oil, 28%
Upstream Oil, 17%
Downstream Oil, 14%Gas, 2%
Conventional Power, 5%
Nuclear, 13%
General Industrial, 20%
$543m
Pumps, 21%
Valves, 19%
Filters / Closures / Other, 12%
Aftermarket, 48%
$543m
Investor HandoutFirst Quarter 2018
34
Power & Energy Product OverviewA variety of high performance pump technologies
Investor HandoutFirst Quarter 2018
35
Power & Energy Products and End Users
Investor HandoutFirst Quarter 2018
36
Power & Energy Aftermarket~50% of 2017 Revenues
Apply global aftermarket growth plan across all relevant brands
Expand service center network to leverage existing footprint and increase presence in key markets
Portfolio-based target markets:
Pipeline
Offshore Platform
Middle East development
Develop master service agreements with customers
Expand aftermarket engineering competency as a value proposition for service agreements
Opened 2 new service centers in H1 2017 (U.S. & Iraq)
AFTERMARKET STRATEGY
Investor HandoutFirst Quarter 2018
37
Typical Power & Energy Pump LifecycleAftermarket opportunity is 2x to 5x the OE sale over 25 years
2018 Guidance and Financial Position
39
2018 SEGMENT TARGETS
Revenue Segment Income %
2017 2018 Growth Target (1) 20172018
Target RangeMargin
Expansion
Food & Beverage $716 low/mid-single digits 10.5% 11.2% to 12.2%+70 to +170
points
Power & Energy $543 low/mid-single digits 6.5% 8.7% to 9.7%+220 to +320
points
Industrial $692 mid/high-single digits 12.4% 14.4% to 15.4%+200 to +300
points
SPX FLOW $1,951total growth: 4% to 6%
organic growth: 2% to 4% 10.1% 11.6% to 12.6%
+150 to +250 points
(1) Currency is expected to be an ~2% benefit to revenue year-over-year for each segment and in total
$ millions
targeting revenue growth and margin expansion in each segment
Investor HandoutFirst Quarter 2018
Q1 2018 Guidance Ranges
Revenue $470 to $490
Segment Income $48 to $55
Operating Income $31 to $38
Earnings Per Share $0.30 to $0.42
EBITDA $46 to $53
40
Q1 2017 Adjusted Basis
Q1 2018 Mid-Point Guidance
Variance
Revenue $433 $480 +11%
Segment Income $35 $51 +46%
Corporate Expense ($16) ~($14) (10%)
Special Charges $0 ~($2)
Pension Expense ($0.4) ($0.4)
Operating Income $19 $35 +84%
Interest Expense ($16) ($14) (15%)
Other Income / Expense ($2) <($1)
Earnings Per Share ($0.01) $0.36 na
EBITDA $33 $50 +58%
($ millions, except earnings per share)
Q1 2018 FINANCIAL GUIDANCE
Key Q1 2018 Guidance Assumptions
Tax Rate 25% to 26%
Diluted Shares Outstanding 42.6m
Depreciation & Amortization ~$15
Capex ~$5
Note: See appendix for reconciliation of non-GAAP measures
Investor HandoutFirst Quarter 2018
2018 Guidance Ranges
Revenue $2,025 to $2,075
Segment Income % 11.6% to 12.6%
Operating Income $181 to $201
Earnings Per Share $2.21 to $2.56
EBITDA $240 to $260
Free Cash Flow $105 to $125
41
2017 Adjusted Basis
2018 Mid-Point Guidance
Variance
Revenue $1,952 $2,050 +5%
Segment Income % 10.1% 12.1% +200 points
Corporate Expense ($57) ($51) (10%)
Special Charges $0 ($5)
Pension Expense ($2) ($2)
Operating Income $138 $191 +38%
Interest Expense ($63) ($51) (19%)
Other Income / Expense $1 ($1)
Net Income $54 $103 +91%
Earnings Per Share $1.27 $2.39 +88%
EBITDA $200 $250 +25%
2018 FINANCIAL GUIDANCE
Key 2018 Guidance Assumptions
Tax Rate 25% to 26%
Diluted Shares Outstanding 42.8m
Depreciation & Amortization ~$62
Capex ~$30
Note: See appendix for reconciliation of non-GAAP measures
($ millions, except earnings per share)
Investor HandoutFirst Quarter 2018
42
CASH FLOWnotable items in 2017 and 2018E
2017 Adjusted Free Cash Flow $223m
Notable Items
+ Reduction of accounts receivable $49m
+ Down payments on large projects $20m
Incentive compensation $0m
‒ Capex ($19m)
‒ Restructuring cash payments ($37m)
2018 Free Cash Flow Guidance $115m
Notable Items
+ Reduction of working capital ~$10m
‒ Large project cash outflows ($21m)
‒ Incentive compensation ($32m)
‒ Capex ($30m)
‒ Restructuring cash payments ($15m)
Investor HandoutFirst Quarter 2018
43
Capital Structure 12/31/2016 12/31/2017
Short-term debt $28 $24
Current maturities of LT debt $20 $21
Long-term debt $1,061 $851
Gross debt $1,109 $896
Less: Cash on hand ($215) ($264)
Net debt $894 $632
Net leverage (1) 4.0x 3.0x
Gross leverage (1) 4.8x 4.0x
($ millions)
2017 adjusted free cash flow: $223m
2017 proceeds from sale of assets: $37m
Gross debt reduced by $213m in 2017:
→ In January 2018, we made an additional $30m voluntary prepayment on term loan A
Annual interest expense reduced by ~$12m, or $0.20 per share
Key Cash Investments/Uses 2017 FY 2018E
Realignment program $37m $10m to $15m
Capital Expenditures $19m ~$30m
Gross Debt Reduction $213m TBD
(1)Leverage calculation uses debt and EBITDA as defined by the company’s credit facilities
FINANCIAL POSITIONnet leverage at 3.0x at the end of 2017
Investor HandoutFirst Quarter 2018
Investor Handout
First Quarter 2018
44
100 bps of margins
expansion year
over year
($ millions)
DEBT AND MATURITY SCHEDULEstaggered capital structure
Highest Quarterly
orders since xxNo significant
maturities until
2020
Senior credit facilities:
$240 Term Loan A
$450 Revolver
$500 non-cash performance bond
Maturity in Q3 2020
$300m bonds at 5.625%:
Maturity in 2024
$300m bonds at 5.875%:
Maturity in 2026
Securitization facility: ~$35m
$0
$50
$100
$150
$200
$250
$300
$350
2018 2019 2020 2021 2022 2023 2024 2025 2026
$20 $20
$200
$300 $300
Term Loan A @ ~4% 5.625% Senior Notes 5.875% Senior Notes
$30m prepayment in January
2018
$230
Q4 2017 Results & 2018 Guidance February 6, 2018
45
Certain statements contained in this presentation that are not historical facts, including any statements as to future marketconditions, 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 express or implied results.
Although SPX FLOW 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 continuing operations, which are subject to change.
Particular risks facing SPX FLOW include risks relating to economic, business and other risks stemming from changes in the economy, our international operations, legal and regulatory risks, cost of raw materials, pricing pressures, and integration of acquisitions. More information regarding such risks can be found in SPX FLOW’s SEC filings.
Statements in this presentation are only as February 6, 2018, and SPX FLOW 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.SPXFLOW.com.
Appendix
Investor Handout
First Quarter 2018
47
100 bps of margins
expansion year
over year
Q4 2017 Results & 2018 Guidance
February 6, 2018
U.S. TAX CUTS AND JOBS ACTimpact of U.S. tax reform
Highest Quarterly
orders since xx
($21m) net tax
benefit recorded
in Q4 2017
~$20m in cash
taxes to be paid
over 8 years
Q4 2017 Income Statement
Cash Tax Impact
Deemed Repatriation Tax $50 ~$20
Previously Accrued Repatriation Tax at higher rates
($53) -
Deferred Tax Liabilities ($18) -
Net Tax (Benefit) / Impact ($21) ~$20
($ millions)
Investor Handout
First Quarter 2018
48
Highest Quarterly
orders since xx
Organic Revenue Reconciliation
Highest Quarterly
orders since xx
Total Revenue Foreign Organic Revenue
Change Currency Change
Food & Beverage 8.0 % 4.7 % 3.3 %
Power & Energy 16.5 % 5.6 % 10.9 %
Industrial (1.2) % 3.9 % (5.1) %
SPX FLOW 6.8 % 4.6 % 2.2 %
Total Revenue Foreign Organic Revenue
Change Currency Change
Food & Beverage (1.7) % 1.1 % (2.8) %
Power & Energy (3.5) % 0.0 % (3.5) %
Industrial (1.8) % 1.0 % (2.8) %
SPX FLOW (2.2) % 0.7 % (3.0) %
Three months ended December 31, 2017
Twelve months ended December 31, 2017
Investor Handout
First Quarter 2018
49
Highest Quarterly
orders since xx
Consolidated LTM Bank EBITDA
Highest Quarterly
orders since xx
LTM
Net Income 46$
Income tax provision 11$
Interest Expense, net 63$
Income before interest and taxes 120$
Depreciation and amortization expense, including intangibles 61$
Basic EBITDA 181$
Adjustments:
Non-cash compensation expense 22$
(Gains)/Loses on dispositions of assets (3)$
Pension adjustments (4)$
Extradiordinary non - cash charges 4$
Extradiordinary non - recurring cash charges 15$
Interest income 5$
Other 1$
Bank Consolidation EBITDA 220$
($ millions)
Note: EBITDA as defined by the company’s credit facilities
Investor Handout
First Quarter 2018
50
Highest Quarterly
orders since xx
Adjusted Debt Reconciliation
Highest Quarterly
orders since xx
($ millions)
12/31/2017
Short-term debt 24
Current maturities of long-term debt 21
Long-term debt 851
Gross Debt 896
less: Purchase card program and extended A/P programs (22)
Adjusted Gross Debt 874
Less: Cash in excess of $50 214
Adjusted Net Debt 660
Note: Adjusted debt as defined by the company’s credit facilities
Investor Handout
First Quarter 2018
51
Highest Quarterly
orders since xx
2017 Free Cash Flow Reconciliation
Highest Quarterly
orders since xx
($ millions)
Q1 2017 Q2 2017 Q3 2017 Q4 2017 FY 2017
Net cash from operations $23 $49 $45 $88 $205
Capital expenditures ($5) ($7) ($2) ($6) ($19)
Free Cash Flow $18 $42 $43 $82 $186
Adjustments
Realignment cash outflows $9 $9 $9.3 $9 $37
Adjusted Free Cash Flow $28 $51 $52 $92 $223
Investor Handout
First Quarter 2018
52
Highest Quarterly
orders since xx
2018 Free Cash Flow Reconciliation
Highest Quarterly
orders since xx
($ millions
Net cash from operations* $135 $155
Capital expenditures ($30) ($30)
Free Cash Flow $105 to $125
Shares Outstanding 42.8 42.8
Free Cash Flow Per Share $2.45 $2.92
2018 Guidance
* Includes $15m of cash payments related to company’s realignment program..
Investor Handout
First Quarter 2018
53
Highest Quarterly
orders since xx
Full Year 2018 Guidance Mid-Point Model
Highest Quarterly
orders since xx
($ millions, except per share data)
2017 2018E
Revenue $1,952 $2,050
Segment income % 10.1% 12.1%
Corporate expense ($57) ($51)
Pension and post retirement expense ($2) ($2)
Special charges ($19) ($5)
Operating Income $119 $191
Operating Income % 6.1% 9.3%
Interest expense, net ($63) ($51)
Other income or (expense) $1 ($1)
Income before taxes $58 $139
Income tax provision ($11) ($35)
Income from continuing operations $47 $103
Minority interest, net of taxes ($1) ($1)
Net income from continuing operations $46 $102
Mid-Point EPS Guidance $1.10 $2.39
Shares Outstanding 42.2 42.8
54
Full Year 2018 GuidanceQuarterly Phasing
22%
26% 25%27%
23%25% 25%
26%
0%
5%
10%
15%
20%
25%
30%
Q1 Q2 Q3 Q4
Revenue Phasing
2017 2018E
14%
26%
29%
32%
18%
23%
28%
31%
0%
5%
10%
15%
20%
25%
30%
35%
Q1 Q2 Q3 Q4
Operating Income Phasing
2017 2018E
Investor HandoutFirst Quarter 2018
Investor Handout
First Quarter 2018
55
Highest Quarterly
orders since xx
2018 Mid-Point EBITDA Reconciliation
Highest Quarterly
orders since xx
($ millions) 2018E
Net Income $102
Income Tax Expense $35
Interest Expense $51
Depreciation & Amortization $62
Basic EBITDA $250
Non-cash Compensation Expense $18
Non-service Pension Costs $1
Interest Income $5
Special Charges $5
Other $0
Bank Consolidated EBITDA $279
56
2013 to 2018E Revenue and Segment Income
2013 2014 2015 2016 2017 2018 Guidance*
Food & Beverage
Revenue $962 $965 $870 $728 $716 +Low/mid single digits
Segment Income $83 $95 $104 $75 $75
Segment Income % 8.6% 9.9% 12.0% 10.3% 10.5% 11.2% to 12.2%
Power & Energy
Revenue $1,000 $969 $750 $563 $543 +Low/mid single digits
Segment Income $120 $159 $84 $25 $36
Segment Income % 12.0% 16.4% 11.2% 4.5% 6.5% 8.7% to 9.7%
Industrial
Revenue $844 $836 $768 $705 $692 +mid/high single digits
Segment Income $129 $131 $105 $99 $86
Segment Income % 15.2% 15.7% 13.7% 14.0% 12.4% 14.4% to 15.4%
SPX FLOW Consolidated
Revenue $2,805 $2,770 $2,389 $1,996 $1,952 4% to 6%
Segment Income $331 $386 $293 $199 $196
Segment Income % 11.8% 13.9% 12.3% 10.0% 10.1% 11.6% to 12.6%
FX Translation y/y n/m n/m ($211) ($52) $15 ~$36*
* @ 12/31/17 FX Rates
Investor HandoutFirst Quarter 2018