Baird's 2008 Industrial Conference

SPX Corporation

2008 Industrial ConferenceNovember 11, 2008

Chris KearneyChairman, President and CEO

PAGE 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.

The estimates of future performance and guidance are as presented on October 29, 2008. SPX’s inclusion of estimates and guidance numbers in this presentation is not an update, confirmation, affirmation or disavowal of the estimates and guidance given on October 29, 2008.

Although SPX believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. In addition, estimates of future operating results are based on the company’s current complement of businesses, which is subject to change.

Statements in this presentation are only as of the time made, and SPX does not intend to update any statements made in this presentation except as required by regulatory authorities.

This presentation includes non-GAAP financial measures. A copy of this presentation, including a reconciliation of the non-GAAP financial measures with the most comparable measures calculated and presented in accordance with GAAP, is available on our website at www.spx.com.

PAGE 3

SPX Overview

SPX Well Positioned for Future Growth in GlobalInfrastructure, Process Equipment and Tools & Diagnostics Markets

Global Infra

structu

re Process Equipment

Tools & Diagnostics

Global, multi-industrial manufacturer of engineered products

2008E revenue: $6b

Operations in over 35 countries

Over 17,000 global employees

Note: 2008E as of 10/29/2008

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Industrial Products &

Services

Test & Measurement

Flow Technology

Thermal Equipment &

Services

SPX Overview

$6b Global, Multi-Industrial Manufacturing Company

33% 29%

19%19%

2008E Revenueby Segment

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

2005 2006 2007 2008E

Earnings Growth*

$2.62

$4.85

$3.07

$6.40 to $6.50

17%17% 58%58% ~33%~33%

*2005 – 2008 adjusted for certain items, see appendix for reconciliations; 2008E as of 10/29/2008

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2008 Financial Targets and Updated Guidance

Targeting 7% to 8% Organic Growth and More Than 30% Earnings Growth in 2008

2008 Target Range

Revenue

Segment Income Margin

Excluding APV

Adjusted Earnings Per Share

Free Cash Flow

Capital Spending

Note: Data from continuing operations; Targets as of 10/29/2008; see appendix for non-GAAP reconciliations

Comments+28% to 29% Organic: 7% to 8%

13.2% to 13.4% +10 to 30 bps

14.6% to 14.8% +150 to 170 bps

$6.40 to $6.50 32% to 34%

$300 to $320 85% to 90% of NI

$140 to $150 Capacity, Lean & IT Investments

($ millions, except per share data)

PAGE 6

Global End Markets

General Industrial

13%

Global Infrastructure

53%

Sanitary14%

Tools & Diagnostics

20%

Targeting Q4 Organic Growth Between 8% and 10%;Tools & Diagnostics Declining

Pro Forma Revenueby End Market

Note: 2007 data from continuing operations, pro forma for APV acquisition; 2008E as of 10/29/08

Power & Energy

33%

HVAC, Telecom,

Other20%

Q4 2008E OrganicGrowth Expectations

Power & Energy

Sanitary

General Industrial

HVAC, Telecom, Other

Tools & Diagnostics

Mid-Single DigitGrowth

Double Digit DeclineFlatDouble Digit

GrowthROW4%

North America49%

Asia-Pacific15%

Europe32%

Pro Forma Revenueby Geography

(Food, Beverage, Dairy, Pharmaand Personal Care Markets)

PAGE 7

Backlog Development

Backlog Decline Primarily Driven by Foreign Exchange Rate Changes;Total Backlog Down ~$120m or 3% During Q3

($ millions)

$1,401 $799 $696

$2,003 $782 $721

$2,077 $796 $648

$2,002 $763 $648

$0 $1,000 $2,000 $3,000

Q1 '08

Q2 '08

Q3 '08*

Q3 '08

Thermal Flow Industrial

Q3 ending backlog at $3.6b, down $120m or 3% from Q2:

– Foreign currency fluctuations reduced the backlog value by $108m

– Industrial backlog down 10%:• 28% organic growth in Q3• Distribution transformer orders

slowing

~60% of annual revenue from short-cycle businesses

No major contract cancellations

Last 3 Quarters Ending Backlog

*Q3 2008 backlog excluding the impact of foreign currency fluctuations

PAGE 8

Financial Position

12/31/07 9/27/08

Cash $354 $466

Other Current Assets 2,362 2,540

Total Assets 6,237 6,523

Total Debt $1,569 $1,531

Other Current Liabilities 1,837 1,842

Shareholders' Equity 2,006 2,361

$466m of Cash on Hand at September 27th;Gross Leverage Ratio Within Target Range of 1.5x to 2.0x EBITDA

($ millions)Key Balance Sheet

Accounts at,

2.3x

1.9x

1.8x1.4x

Q4 2007 Q3 2008

Net Leverage Gross Leverage

Debt to Capital

Debt to EBITDA (1)

44.0%

39.0%

Q4 2007 Q3 2008

(1) Consolidated leverage ratios; Net and Gross Debt to EBITDA as defined in the credit facility

PAGE 9

Disciplined Capital Allocation

$675

$386

$716

2005 2006 2007

Disciplined Approach to Capital Allocation

15m

8m9m

Share Repurchases Strategic Acquisitions

$1.8B of total share repurchases

Repurchased more than 40% of outstanding share count

($ millions)

Johnson Controls European Diagnostics

6 acquisitions completed

~$1.2B total revenue

PAGE 10

Projected Liquidity

Over $850m of Projected Liquidity After Completing Planned Share Repurchases

Cash on hand at 9/27/2008 $466

Expected cash proceeds from the sale of LDS 102

2008E free cash flow remaining 242Available, committed credit lines 400

Total Projected Availability $1,210

Remaining dividend payments ($15)

2008 minimum remaining debt payments (19)

Working capital management needs (200)

Projected Liquidity $976

Repurchase 3m shares (based on 11/10 closing stock price of $37.92) ($114)

Projected Liquidity after Share Repurchases $862

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

($ millions)

Expected Sources

RequiredUses

PlannedUse

Amount

PAGE 11

Changing Economic Environment

~40% to 45% of SPX’s Revenue is Translated From Foreign Currencies;Too Early to Predict How Economic Changes Will Impact SPX Customers in 2009

Banking failures and consolidations have impacted credit availability for many companies

Global credit crisis has created an uncertain economic environment…

…as a result, capital budgets for 2009 are uncertain

Foreign exchange rates have changed dramatically, impacting SPX’s 2008 outlook and backlog:

– % decline from June through November 10th:

• Euro: (18%)

• British Pound: (21%)-40%

-30%

-20%

-10%

0%

10%

Jun-08

Jun-08

Jun-08

Jul-08

Jul-08

Jul-08

Aug-08

Aug-08

Sep-08

Sep-08

Sep-08

Oct-08

Oct-08

EUR GBP ZAR

% Value Declinevs. U.S. Dollar

PAGE 12

Flow Technology

PAGE 13

Flow Technology Overview

About 1/3 of SPX’s Annual Revenue is Generated from Sales of Flow Technology

2008E Revenue: $2b

Strong brands with market leading positions

Global sales infrastructure and distribution

Engineered products and turnkey solutions

Operational expertise

Key Flow Technology Characteristics

Chemical10%

Compressed Air5%

Sanitary41% Power &

Energy25%

General Industrial

19%

2007 Flow TechnologyRevenue by End Market

Includes Food, Beverage, Dairy, Pharmaceutical and Personal Care Markets

Note: Data from continuing operations, 2007 pro forma for APV acquisition; 2008E as of 10/29/2008

PAGE 14

APV Overview

APV is a Global Manufacturer of Process Equipment and Engineered Solutions

2007 Revenue by End Market

Sanitary (Dairy, Food,

Beverage)73%

General Industrial

16%

Power and Energy11% EMEA

56%

Asia-Pacific24%

Americas20%

2007 Revenue by Geography

PAGE 15

Key Sanitary Market Drivers

Food

Beverage

Dairy

Brewing

Pharmaceutical

Personal Care

SPX Has Technologies that Serve the Food, Beverage, Dairy, Pharmaceutical and Personal Care Manufacturers

Increases in hygienic standards and regulatory controls

Economic expansion in developing regions

Process and business optimization

Energy efficiency and waste reduction

Production of value added or higher quality produce

Demand for new plants

PAGE 16

Food Processing Market Characteristics

$38.6

$40.7

$43.0

$45.4

2008E 2009E 2010E 2011E

Food Processing Machinery and Equipment Global Forecast

($ billions)

Source: Food Processing Machinery & Equipment

Global Food Processing Market Projected to Grow Significantly From 2008E to 2011E

Regulated market

Stable

Consistent growth

Developing market opportunities

Attractive End MarketCharacteristics

6% CAGR

PAGE 17

Expected Growth by Region

Investment in Food Processing Machinery Expected to be Higher in Developing Countries

2001 to 2010E Investmentfor Food Processing Machinery and

Equipment by Region

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

’01 – ’06CAGR

5.8%

3.3%

0.1%

4.0%

Region

Asia-Pac

Europe

US

Latin America

’07 – ’10ECAGR7.1%

3.3%

3.6%

5.6%

EMEA30%

Asia-Pacific35%

North America18% Latin America

10%ROW7%

2007 Global FPME Spend by Region

PAGE 18

Typical Sanitary Customers

Power

SPX Serves a Global Customer Base IncludingMany of the Leading Food and Beverage Manufacturers

PAGE 19

Primary Product Uses

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

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 off

Mixers: Dispersion & solid suspension

Diverse Product Portfolio of Customer Engineered Solutions

PAGE 20

Sanitary Offerings

SPX Offers Customers Engineered Components, Skidded Systems and Turnkey Systems

2007 Revenue by Type

Note: Data from continuing operations, pro forma for APV acquisition

Engineered Components

70%

Process Systems

30%

~70% engineered components for niche end markets:

– Built to order

~30% turnkey and skidded process systems:

– Engineered, designed and installed

PAGE 21

Flow Technology Global Presence Before APV

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

Strong Presence

Growing Presence

PAGE 22

Strong Presence

Growing Presence

Key APV Additions

Flow Technology Global Presence Including APV

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

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

– China

– Eastern Europe

– South America

– Middle East

– Russia

– South Africa

PAGE 23

APV Integration

Streamline combined global presence

Increase leverage with suppliers on combined spend

Share best manufacturing practices globally:– Including implementation of “Lean”

Increased localization of manufacturing

Leverage respective distribution markets globally

– Product “pull-through” combined distribution channels

Expect Integration to be Completed During 2010Projected Annualized Savings of $40m to $60m

PAGE 24

Summary

Industrial Products

19%

Thermal Equipment

32%Test &

Measurement28%

Flow Technology

21%

Flow Technology Revenue has Growth ~160% Since 2005

2005 SPXRevenue by Segment


2008E SPXRevenue by Segment

Industrial Products

19%

Thermal Equipment

29%

Test & Measurement

19%

Flow Technology

33%

Flow Revenue: $775m

Flow Revenue: ~$2b

PAGE 25

Current SPX Situation

Targeting growth in Q4 2008:– Targeting 8% to 10% organic growth

– Targeting 14% to 20% earnings growth

Solid financial position and liquidity:– Expect to repurchase 3m shares of SPX stock

– Significant flexibility in uncertain economic environment

Reducing cost through APV integration

Evaluating and preparing for 2009

Carefully Monitoring Risks In Uncertain Economic Environment

PAGE 26

Questions

PAGE 27

Appendix

PAGE 28

Balance Sheet

($ millions) 12/31/07 9/27/08 Change

Cash $354 $466 $112

Other Current Assets 2,362 2,540 178

Goodwill 1,930 1,921 (9)

Other Assets 1,591 1,595 4

Total Assets $6,237 $6,523 $286

Other Current Liabilities $1,838 $1,842 $4

Total Debt 1,568 1,531 (37)

Long-Term Liabilities 825 790 (35)

Shareholders' Equity 2,006 2,361 355Total Liabilities and Shareholders' Equity

$6,237 $6,523 $286

Debt / Capital Ratio 44% 39%LTM EBITDA (1) $663 $772Net Debt / EBITDA (1) 1.83x 1.35xGross Debt / EBITDA (1) 2.29x 1.89x

(1) As defined in the SPX credit facility

PAGE 29

Full Year Financial Model($ millions, except per share data)

(1) Adjusted EPS, includes businesses discontinued in 2008, see appendix for reconciliationNote: Data from continuing operations

2008E Mid-Point EPS Guidance is $6.45 Per Share

(1)

2007

2008E Guidance Mid-Point

Revenue $4,677 $6,000Segment Income Margin 13.1% 13.3%

Corporate overhead (95) (107) Pension / PRHC (44) (37) Stock-based compensation (41) (43) Special charges (5) (16) Operating Income $428 $598 % of revenues 9.1% 10.0%

Equity Earnings in J/V 40 46 Other Income/(Expense) (5) (7) Interest Expense (71) (107) Pre-Tax Income from Continuing Operations $392 $530Tax Provision (126) (178) Income from Continuing Operations $266 $352

Tax Rate 32% 34%Weighted Average Dilutive Shares Outstanding 56 55

EPS from continuing operations 4.73$ 6.45$ EPS from businesses discontinued in 2008 0.12$ Adjusted EPS 4.85$

Adjusted EPS Guidance Range $6.40 to $6.50

EBITDA 663$ 800$

PAGE 30

2008 Full Year Segment Targets

IndustrialIndustrial

FlowFlow

ThermalThermal

Test & Measurement

Test & Measurement

July 30th

FY Targets

Revenue Growth

Operating Margins

Revenue Growth

Operating Margins

Revenue Growth

Operating Margins

Revenue Growth

Operating Margins

October 29th

FY Targets

+88% to 89%

12.0% to 12.2%

+91% to 93%

11.8% to 12.3%

+10% to 11%

11.7% to 11.9%

+11% to 13%

10.6% to 11.1%

Primary Drivers for Change

+3% to 4%

10.5% to 10.7%

+9% to 11%

10.5% to 11.0%

+19% to 20%

20.6% to 20.8%

+18% to 20%

20.2% to 20.7%

FX fluctuations

Discontinued product line

FX fluctuations

Strong Q3 margin execution

FX fluctuations,

Softness in U.S. market

Discontinued product line

Strong Q3 operating execution

Targets Have Been Adjusted to Reflect Foreign Currency Fluctuations, Discontinued Operations and Q3 Performance


PAGE 31

Re-Stated Quarterly Segment Data

Note: Data from continuing operations

Fourth Quarter Full Year2007 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 $212 $267 $253 $276 $249 $320 $253 $966 Segment Income $26 $54 $34 $57 $44 $70 $52 $156 Segment Margins 12.3% 20.3% 13.5% 20.5% 17.7% 22.0% 20.5% 16.2%

First Quarter Second Quarter Third Quarter

PAGE 32

Non-GAAP Reconciliations

PAGE 33

Q3 2008 Organic Revenue Growth Reconciliation

Net Revenue Acquisitions/ Organic Growth Divestitures Growth

Flow 92.4% 83.1% 1.0% 8.3%

Test 6.1% 7.4% 1.8% -3.1%

Thermal 3.5% 0.0% 5.3% -1.8%

Industrial 28.6% 0.0% 0.4% 28.2%

Consolidated 28.8% 19.7% 2.6% 6.5%

Foreign Currency

Quarter Ended September 27, 2008


PAGE 34

2008E Organic Revenue Growth Reconciliation

Net Revenue Acquisitions/ Organic Growth Divestitures Growth

Consolidated +28% to 29% +19% to 20% +1% to 2% +7% to 8%

Foreign Currency

2008E


PAGE 35

EBITDA Reconciliations

Note: EBITDA as defined in the credit facility

($ millions) 2006 2007

LTM Sept. 2008

Revenues $4,313 $4,822 $5,742

Net Income $171 $294 $381Income tax provision (benefit) 56 90 127Interest expense 50 77 110Income before interest and taxes $277 $461 $618

Depreciation and intangible amortization expense 90 83 102EBITDA from continuing operations $367 $544 $720

Adjustments:Non-cash compensation expense 38 41 43Extraordinary non-cash charges 41 14 (9)Extraordinary non-recurring cash charges 27 7 11Excess of JV distributions over JV income (12) 2 3Loss (Gain) on disposition of assets 56 4 (14)Pro Forma effect of acquisitions and divestitures 53 20Other 8 0

Adjusted LTM EBITDA from continuing operations $525 $663 $772

PAGE 36

Debt Reconciliations

($ millions) 12/31/2007 9/27/2008

Short-term debt 254$ 260$ Current maturities of long-term debt 79 76 Long-term debt 1,235 1,194

Gross Debt 1,568$ 1,531$

Less: Puchase card program and extended A/P programs (58)$ (59)$

Adjusted Gross Debt 1,510$ 1,472$

Less: Cash in excess of $50m (304)$ (416)$

Adjusted Net Debt 1,206$ 1,055$

Note: Debt as defined in the credit facility

PAGE 37

Pro Forma APV Calculation: 2008E

Excluding APV APV

Including APV

SPX Consolidated 2008ERevenue $5,150 $850 $6,000Segment Income $762 $38 $800Segment Margin 14.8% 4.5% 13.3%


PAGE 38

2008E Free Cash Flow Reconciliation to GAAP Financial Measures

($ millions)

Net cash from continuing operations 440$ 470$ Capital expenditures (140)$ (150)$

Free cash flow from continuing operations 300$ 320$

2008E Guidance Range

Free Cash Flow Reconciliation(unaudited)

SPX Corporation and Subsidiaries


PAGE 39

2008E Adjusted Earnings Per Share

GAAP EPS from continuing operations $6.76 $6.86

Q3 Tax Benefits (0.47) (0.47)

Q3 Legal Settlement (Other Expense) 0.11 0.11

Adjusted EPS from continuing operations $6.40 $6.50

2008E EPS Range

Adjusted EPS Presented Consistent with 2008 EPS Guidance


PAGE 40

2007 Adjusted Earnings Per Share


FY 2007

GAAP EPS from continuing operations $5.33

Q3 Tax Benefits (0.34)

Q4 Tax Benefits (0.25)Q4 Asset Impairment 0.05

Q4 Legacy Legal Matters (Corporate Expense) 0.06

Adjusted EPS from continuing operations $4.85

PAGE 41

2006 Adjusted Earnings Per Share


FY 2006

GAAP EPS from continuing operations $3.74

Q2 Tax Accrual Reversal (0.57)

Q2 VSI Legal Settlement 0.20

Q4 Miscellaneous Tax Benefits (0.28)

Q4 Charges for Legacy Legal Matters 0.07

Loss from operations discontinued in 2007 (0.08)

Adjusted EPS from continuing operations $3.07

PAGE 42

2005 Adjusted EPS Reconciliation

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

GAAP net income per share $15.33

Income from discontinued operations (15.61)SFAS 142 asset impairment 0.96Loss on early extinguishment of debt 0.96Normalized 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, 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.

Year ended, Dec 31, 2005

PAGE 43

Economy & Finance

Baird's 2008 Industrial Conference