Enterprise strategy - Seeking Alpha

ACHIEVE EXCELLENCE.Investor and Analyst Meeting

March 8, 2018 New York, NY

2Investor and Analyst Meeting, March 8, 2018

SAFE HARBOR

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 of the time made, 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.

AGENDA

FINANCIALS Capital Allocation

A LOOK BACK The History of SPX FLOW

END MARKETS Food & Beverage : Industrial : Power & Energy

WHAT’S NEXT? Pivot to Growth and Improvement

SUMMARY Questions and Answers

WHO WE ARE Enterprise Overview

AGENDA

A LOOK BACK The History of SPX FLOW→Marc Michael, President and CEO


HISTORYSPX FLOW was built through acquisitions and spun-off in Q3 2015

1997-2004 2005-2007 2008-2014 2015

Sele

ct F

LOW

Acq

uis

itio

ns

Individual Product Lines

Regional Structure

End Market Structure

Spin-Off


A LOOK BACKour work in 2016-2017 created a foundation for success

Highest Quarterly

orders since xx

Significant Progress During

2016-2017

2015: Spin-off from SPX Corporation (September 26, 2015)

2016: Create the future now.

Transitioned to operating structure

Created long-term financial stability

Established strong foundation for future growth

2017: Unlock our Potential

10% order growth

~$280m of cash generated (operating cash flow + sale of assets)

Reduced net debt 29%

2018: Achieve Excellence

PIVOTING STRATEGY TO GROWTH AND IMPROVEMENT


→ CREATED LONG-TERM FINANCIAL STABILITY

reduced net debt by 29% and net leverage to 3.0x

re-financed senior notes and staggered maturities

→ GREW ORDERS AND BACKLOG

10% order growth in 2017

27% backlog growth in 2017

→ IMPLEMENTED PRODUCT LINE STRATEGY

ESTABLISHED A STRONG FOUNDATIONexecuted global realignment program

→ OPTIMIZED FOOTPRINT

9 site consolidations (8 manufacturing, 1 shared-service)

established manufacturing center of excellence in Poland

increased capabilities in high valued countries

opened 2 service centers (Corpus Christi, Saudi Arabia)

→ STREAMLINED WORKFORCE

~20% headcount reduction

streamlined functional support

strategic hires in key commercial and operational roles

aligned incentive programs with strategy

→ TRANSITIONED TO OPERATING STRUCTURE

reduced cost structure by ~$140m

implemented KPIs across all functions


2017 HIGHLIGHTS10% order growth, net leverage at 3.0x, achieved realignment savings

Q1 Q2 Q3 Q4 FY 2017 Commentary

Order Growth (y-y) +2% +4% +12% +25% +10% Driven by all three segments

Backlog Growth (YTD) +16% +19% +23% +27% +27% 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

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

(1) As defined by the company’s credit facility

TRANSFORMATION ROADMAPjourney to a high performing operating enterprise

ENTERPRISE STRATEGY

Product Line Strategy

Organic Growth Investments

A HIGH PERFORMING OPERATING ENTERPRISE

Winning culture

Team focused

Customer centric

Proven system

Accountable

Sustainable, high performanceContinuous Improvement Focus

Operating Structure, Financial Stability


PIVOT TO GROWTH & IMPROVEMENTfocusing on people, products and process to drive performance

PERFORM

Growth & Margin Expansion

PEOPLE

Elevate talent and capabilities

PROCESS

Continuous improvement

PRODUCTS

Execute product line strategies

WHAT’S NEXT?


STRATEGIC OBJECTIVETRANSFORM INTO A HIGH PERFORMING OPERATING ENTERPRISE

PERFORM

Growth & Margin Expansion

PEOPLE


PROCESS

Continuous Improvement

PRODUCTS

Aggressively grow high valuecomponents & aftermarket

WINNING CULTURE

CUSTOMER-CENTRIC

TEAM-FOCUSED

PROVEN SYSTEM

ACCOUNTABILITY

SUSTAINABLE PERFORMANCE

CULTURE

CUSTOMERS SATISFIED

EMPLOYEES ENGAGED

INVESTORS REWARDED

OBJECTIVES

1. GROW ORDERS- focus on highest value product lines and aftermarket

2. EXPAND MARGINS - continuous improvement, project selectivity

3. ACCELERATE CASH FLOW- working capital velocity

4. DISCIPLINED CAPITAL ALLOCATION- expect ~$650 capital available to deploy 2018-2020


VALUE CREATION~12% OPERATING MARGINS BY 2020

~12% OPERATING

MARGINby 2020

GROW COMPONENTS AND AFTERMARKET:

Aggressively invest to grow pumps and valves

Optimize distribution and service contracts

Channel and New Product Development

Be selective and disciplined on systemsFOO

D &

BEV

ERA

GE

CONTINUOUS IMPROVEMENT

Global Process Excellence (GPEX)

Sales, Inventory and Operations Planning (S.I.O.P.)

LEAN

CO

NTI

NU

OU

SIM

PR

OV

EMEN

T

GROW HIGH VALUE PRODUCTS/AFTERMARKET:

Aggressively invest to grow Mixers, Hydraulics, Dehydration, Pumps

Geographic expansion (localize)

Market / channel development

New Product Development

IND

USTR

IAL

GROW SERVICE & AFTERMARKET CAPABILTIES

Disciplined OE selectivity:

Focus on growing OE valves in the midstream and conventional power

Focus OE pumps on industrial applications and nuclear safety

PO

WER

& EN

ERG

Y

Note: 2020 goals assume GDP of ~3% per year, constant currency and no acquisitions or divestitures


VALUE CREATION2020 financial goals

2020 goals

2018-2020 ANNUAL

ORGANIC GROWTH

4% to 5%

2018-2020 ANNUAL

FREE CASH FLOW

~120%CONVERSION OF NET INCOME

2020 SEGMENT MARGINS

→ FOOD & BEVERAGE: MID TEENS

→ INDUSTRIAL: HIGH TEENS

→ POWER & ENERGY: LOW DOUBLE DIGITS

2020 OPERATING MARGIN

~12%


AGENDA

WHO WE ARE Enterprise Overview→ Marc Michael, President and CEO


OUR BUSINESS TODAYexpertise in rotating, actuating and hydraulic equipment

Highest Quarterly

orders since xx

global supplier of high value, engineered

solutions

~7,000 employees

operations in > 30 countries

sales into >150 countries

Skilled workforce

Diverse, loyal customer base

Well-recognized brands

High quality products designed for severe duty and high-standard applications

Engineering expertise to optimize configuration

Global manufacturing footprint

Attractive aftermarket, large installed base

STRENGTHS

PUMPS

VALVES

MIXERS

DEHYDRATION

HYDRAULIC TOOLS

HEAT EXCHANGERS

FILTRATION

HOMOGENIZERS

SEPARATORS

KEY PRODUCTS

CUSTOMER TYPES

DIRECT

INDEPENDENT REPS

DISTRIBUTION

SALES CHANNELS

MULTINATIONALS

REGIONAL

LOCAL


GLOBAL FOOTPRINT key manufacturing locations

6 multi-product manufacturing sites

Burlington

McKean

Sao Paulo

Houston

Delavan

Glasgow

Ocala

RochesterRockford

AnnecyKillarney

NewburyPenistone

NorderstedtBydgoszcz

Silkeborg

Assen

Xidu

Busan

Ahmedabad

28 service centers across the world


REVENUE SPLITS

FOOD & BEVERAGE 37%

INDUSTRIAL 35%

POWER & ENERGY 28%

$2b

Original Equipment 64%

Aftermarket 36%

$2b

38% 30%

23%

7%2%

segment market

regiontype

General Industrial 25%

Food and Beverage 20%

Oil and Gas 19%

Dairy 16%

Compressed Air 8%

Power Generation 7%

Chemical Processing 5%

$2b

3 segments with sales across food, industrial and energy markets; balanced geographic profile; >1/3 of sales are aftermarket


END MARKETSwe serve large, global and diverse end markets

>$100b global market: Projected to grow ~3.5% per year

APAC and N.A. are key regions with accelerating growth

SPX FLOW products serve multiple verticals and customer applications

Our emphasis is on the intersection of high growth verticals with highly critical applications

INDUSTRIAL POWER & ENERGY

Large global project market: Stable with variable demand across verticals

APAC, North America and the Middle East are key markets

Highly cyclical demand

SPX FLOW provides engineered products primarily in valves and pumps

Our emphasis is on developing service and aftermarket business

~$24b global market: Projected to grow ~3% per year

Per capita consumption increasing in developing markets

Highly regulated, steady growth market driven by growing population, changing consumer dietary habits and safety

Broad array of components for dairy, beverage and food processing

Process systems lead to innovation with customers and creates installed base for service and aftermarket

FOOD & BEVERAGE


BOARD OF DIRECTORSexperienced, diverse board; 7 of 8 directors are independent

Board Tenure

Board MemberAppointed to

SPX CorporationSPX FLOW

Cummulative Years Served

Robert Hull, Jr.(non-excecutive Chairman)

Former CFO of Lowe’s Corporation for 14 years 2014 Since spinoff 4

Emerson Fullwood Former Corporate Vice President of Xerox Corporation 1998 Since spinoff 19

Terry Lisenby Former CFO, Treasurer and EVP of Nucor Corporation 2011 Since spinoff 7

David Singer Former President and CEO of Snyder’s-Lance 2013 Since spinoff 5

Patrick Campbell Former SVP and CFO of 3M 2014 Since spinoff 4

Anne Altman Former GM of IBM US Federal and Government Industries 2015 Since spinoff 3

Marc Michael President and CEO of SPX FLOW -- Since spinoff 2

Majdi Abulaban (NEW, appointed 3/1/2018)

Current SVP of Global Signal & Power Solutions at Aptiv PLC, formerly Delphi Automotive

--Appointed

March 2018--


EXECUTIVE TEAMdiverse management team

MARC MICHAELPresident and CEO

JEREMY SMELTSERVP and CFO

DWIGHT GIBSONPresident, Food & Beverage

JOSÉ LARIOSPresident, Industrial and P&E

DAVID KOWALSKIPresident, GMO

KEVIN EAMIGHCIO & VP, Global Business Services

STEVE TSORISVP, Secretary & General Counsel

BELINDA HYDEVP, Chief HR Officer


End Market Teams

Focused on customers and business development

LegalHuman ResourcesFinanceITShared ServicesManufacturing

CUSTOMERS

Functional teams to leverage expertise through standard processes and metrics

Sales Channel Development Product Management Engineering Project Execution

Functional Teams

Focused on supporting end market teams

OPERATING STRUCTUREcustomer centered, cross functional, global

AGENDA

WHAT’S NEXT? Pivot to Growth and Improvement→ Marc Michael, President and CEO


P.A.V.ing the WAYpurpose, aspiration and values that define our customer-centric, performance-based culture

SPX FLOW innovates with customers

to help feed and enhance the world

by designing, delivering and servicing

high value solutions at the heart

of growing and sustaining

our diverse communities

We aspire to be a worldwide leader in

sustainable solutions which ensure the

controlled and measured movements

of life’s essential elements

OWN YOUR ACTIONS

EMBRACE TEAMWORK WITH NO BORDERS

BE OBSESSED WITH BEING THE BEST

ASK THE HARD QUESTION

DO THE RIGHT THING, ALWAYS!

APPRECIATE THE MOMENT

THINK ALL CUSTOMER, ALL THE TIME

PURPOSE: Who We Are Today

ASPIRATION: Who We are Striving to Become

LIVE OUR VALUES


ONE WORLD FINGERPRINTa common approach to delivering a consistent, high quality experience to our customers


OPERATING HELMkey areas of focus

PEOPLE

Elevate Talent and Capabilities

→ Strategic workforce planning

→ Cultural shift to operating model

→ Relentless talent evaluation

PRODUCTS

Enhance Global Product Portfolio

→ Execute growth strategy

→ Implement pricing strategy

→ Disciplined project selectivity

PROCESS


→ LEAN

→ SIOP – sales, inventory and operations planning

→ Eliminate project execution errors

→ Global Process Excellence (GPEX)

PERFORMANCE

→GROWTH

→IMPROVEMENT


PEOPLEengaging our team STRATEGIC WORKFORCE PLAN:

→ Invest in Commercial Capabilities:

PRODUCT MANAGEMENT (increased resources by ~70% since spin)

Technical sales support

Product engineering

→ Invest in Continuous Improvement:

Increased dedicated resources by 20% in 2017


12 dedicated subject matter experts focused on end-to-end process improvement

→ Expand capabilities in high value centers (HVCs):

Doubled team in HVCs since spin (now ~14% of total employees)

→ Cultural change:

Leadership development

Relentless talent evaluation

Recognition based on “living our values”


PRODUCTSkey growth initiatives

→ ENHANCED PRODUCT MANAGEMENT→ “CEOs” of global product lines

→ Responsible for all elements of brand value

→ Deep understanding of market and customer insights

→ Strategic pricing leader / authority

→ LOCALIZATION

→ CHANNEL MANAGEMENT

→ NEW PRODUCT DEVELOPMENT


• Construct-to-projectCTP

• Make-to-projectMTP

• Engineer-to-orderETO

• Configure-to-orderCTO

• Assemble-to-orderATO

• Make-to-stockMTS

• Commodity

• Low valueCommodity

PRODUCTSengineering spectrum

Product Category Examples

Food & Beverage systems

Clyde Union pumps

Large filters

Large plate heat exchangers

Food & Beverage

Pumps

Valves

Homogenizers

Scraped surface heat exchangers

Industrial

Mixers

Hydraulic technologies

Dehydration equipment

Industrial pumps

Plate heat exchangers

Power & Energy

Power gen valves

Pipeline valves

Closures

Filters

Not prevalent in SPX FLOW product portfolio


• Construct-to-projectCTP

• Make-to-projectMTP

• Engineer-to-orderETO

• Configure-to-orderCTO

• Assemble-to-orderATO

• Make-to-stockMTS

• Commodity

• Low valueCommodity

PRODUCTSwhere we will focus our growth investments

CRITICAL to customer application

→ No compromising performance, quality standard

CUSTOMIZED to customer application

→ Differentiated

PREMIUM PRICING as compared to standard product

→ Critical to end user

LOYAL AFTERMARKET for spares, service and replacement

→ Opportunity to be life-cycle partner

NICHE MARKET small % of customer’s overall investment

→ Attracts fewer competitors

LEVERAGE-ABLE across our footprint

→ Multiple products can be delivered from one site

Complex Processes

Product Variability

High Execution Risk

Fewer orders

~70% of Sales


PRODUCTShow we prioritize investment for growth & improvement

INVESTMENT OF TIME AND RESOURCES

→ Product assessment and roles provide a clear priority when we make decisions on investments of time and resources

PRODUCT LINE ASSESSMENT

→ Market attractiveness

→ Strategic fit

→ Financial profile

PORTFOLIO ROLE ASSIGNMENT

1. Aggressively invest to grow

2. Opportunistically invest to grow

3. Enhance performance

2017 SALES OF ~$2b

WE OPERATE 30 PRODUCT LINES

~90% OF SALES

FROM 16PRODUCT LINES

FAST FACTS


PRODUCTSportfolio assessment provides clarity for investment

Fin

anci

al p

rofi

le

Growth profile

→ Homogenizers

→ Scraped Surface Heat Exchangers

→ Marine Pumps

→ Pipeline Valves

→ Power Gen Valves

→ Filters

→ Closures

→ F&B Pumps

→ F&B Valves

→ Mixers

→ Hydraulic Tools

→ Dehydration Equipment

→ Industrial Pumps

→ Food & Beverage Systems

→ Industrial Heat Exchangers

→ ClydeUnion PumpsNA

less attractive highly attractive

hig

h p

erfo

rmer

dif

ficu

lt t

o le

vera

ge

OPPORTUNISTICALLY INVEST TO GROW AGGRESSIVELY INVEST TO GROW

ENHANCE PERFORMANCE EVALUATE INVESTMENT

30% of sales

40% of sales

30% of sales

0% of sales


PRODUCTSkey criteria assessed to each product line

Fin

anci

al p

rofi

le

Growth profile

→ < $1B Addressable Market

→ GDP Growth Rate

→ Gross Margin % = company average

→ Moderate Working Capital Cycle

→ Some Leverage Across Sites

→ >$1B Addressable Market

→ > GDP Growth Rate

→ Gross Margin % above company average

→ Quick Working Capital Cycle

→ Easily Leverage Across Sites

→ Specialty Market

→ < GDP Growth Rate

→ Gross Margin % below company average

→ Long Working Capital Cycle

→ Specialty Footprint/Process

NA


hig

h p

erfo

rmer

dif

ficu

lt t

o le

vera

ge



30% of sales

40% of sales

30% of sales

0% of sales


PRODUCTScapital allocation role

Fin

anci

al p

rofi

le

Growth profile

→ Capex = depreciation

→ Selective R&D and NPD

→ Consider tuck-in acquisitions when organization is ready

→ Highest proportion of capital allocated to accelerate growth

→ Capex > depreciation

→ Increased R&D and NPD

→ Pursue tuck-in acquisitions when organization is ready

→ Disciplined Order/Project Selectivity

→ Capex < depreciation

→ Selective investments with high return/short payback

NA


hig

h p

erfo

rmer

dif

ficu

lt t

o le

vera

ge



30% of sales

40% of sales

30% of sales

0% of sales


GROWTH STRATEGYdefined product strategy drives clarity and alignment

Growth Focused In Highest Value

Products / Aftermarket

Attractive End Markets

Leverage Global Footprint

HIGHEST VALUEPRODUCTS

MARKETS WITH SECULAR GROWTH

GLOBAL FOOTPRINTLOCAL PRODUCTION

Pumps Mixers Dehydration Hydraulics

FOOD & BEVERAGE * LIFE SCIENCES * GENERAL INDUSTRIAL * AGRICULTURE * WATER * CHEMICALS

Americas EMEA Asia

Valves ADJACENCIES*

PRODUCTS WITH STRONG BRANDS THAT PROVIDE HIGH VALUE TO CUSTOMERS IN ATTRACTIVE MARKET

APPLICATIONS

DEVELOP OPERATING MODEL LEVERAGE CURRENT MANUFACTURING FOOTPRINT

EXPAND MANUFACTURING SELECTIVELY IN ASIA (CHINA/INDIA)

*adjacencies includes process optimization, controls, automation and other high value products


PROCESSGlobal Process Excellence - GPEX

VISION

END-TO-END processes delivered

to a higher degree of CUSTOMER SATISFACTION

through FASTER CYCLE TIMES and IMPROVED ACCURACY

MISSION

1. Create the SPX FLOW BUSINESS OPERATING SYSTEM

2. Develop toolkit and playbook including:

3. Develop Master Data Standards

4. Implement, measure and improve processes

~450,000ORDERS/YEAR

>90% OF ORDERS ARE

< $10,000

AVERAGE ORDER IS

~$5,000

FAST FACTSOPPORTUNITY

30 PRODUCT LINES

7 PRIMARY MARKET

DELIVERY REQUIREMENTS

MULTIPLE PRODUCTS AND

VARIOUS CUSTOMERDELIVERY NEEDS


PROCESSestablishing a business operating system

Highest Quarterly

orders since xx

BEST RESULT FOR CUSTOMERS Velocity of execution

Maximizes performance and efficiency

Promotes continuous improvement

Increases workforce flexibility and career opportunity

OUR WAY OF DOING BUSINESSSTANDARD & PROVEN APPROACH TO:

How we go-to-market

How we support our customers

How we operate

End-to-end processes

CUSTOMERSATISFACTION

MOST COMPANIES HAVE GOOD

PEOPLE.

THE COMPANIES THAT WIN OVER THE LONG TERM HAVE THE BEST

PROCESSES.

- Peter Drucker


PERFORMANCEhow we will measure success

PEOPLE

KPI: ENGAGEMENT

→ SAFETY

→ RETENTION

→ LEADERSHIP IMPACT

→ WORKFORCE PLANNING

→ GOAL DEPLOYMENT

PRODUCTS

KPI: ORDER GROWTH

→ VOICE OF CUSTOMER

→ MARKET SHARE

→ PRICING (STANDARD MARGIN)

→ % NEW PRODUCT ORDERS

PROCESS

KPI: GROSS MARGIN %

→ LEAD TIMES / COTD

→ UTILIZATION

→ SOURCING SAVINGS

→ COST OF QUALITY

→ ON-COST PROJECT EXECUTION

→ WORKING CAPITAL

PERFORMANCE

KPI: EBITDA (PROFIT)

→ REVENUE

→ FREE CASH FLOW

→ NET LEVERAGE

→ RETURN ON INVESTED CAPITAL (ROIC)

→ ENTERPRISE VALUE / STOCK PRICE


PERFORMANCE2020 financial goals

2020 goals

2018-2020 ANNUAL

ORGANIC GROWTH

4% to 5%

2018-2020 ANNUAL

FREE CASH FLOW







~12%



5%6% 6%

7%

9%

11%12% 12% 12% 12%

13% 13% 13%14% 14%

17%

22%

peer FLOW2017

peer peer FLOW2018 MP

peer peer peer peer FLOW2020GOAL

peer peer peer peer peer peer peer

2017 Average of 12%

PEER GROUP: 2017 OPERATING MARGINSour 2020 goal is to be at or above peer average

companies below average generally have a

higher mix of project / engineering revenuecompanies at or above average generally have a

higher mix of component and aftermarket revenue


PERFORMANCEhow we expand margins

9.3%

2018 MP Guidance 2020 Goal

~12%

~270 POINTS OF

MARGIN EXPANSION

PROJECTS

DISCIPLINED SELECTIVITY

IMPROVED EXECUTION

PROFITABLE GROWTH

AGGRESSIVELY GROW HIGHEST VALUE PRODUCTS

PRICING / SUPPLY CHAIN

EXECUTE INTEGRATED STRATEGY


GPEX

S.I.O.P.

LEAN

~$75M+ INCREMENTAL

PROFIT

AGENDA

WHAT’S NEXT CONTINUOUS IMPROVEMENT

→ David Kowalski, President of Global Manufacturing Operations


GLOBAL FOOTPRINT OPTIMIZATIONsimplified footprint and expanded in high value or multi-product sites

Consolidated 7 high-cost sites into higher performing multi-product sites

1 site consolidation planned for 2018

Leased Bydgoszcz facility across the street from new facility

Consolidated 3 shared service centers to 2

Expanded:

Bydgoszcz

Xidu

Ahmedabad

Busan


6 MULTI-PURPOSE SITESleverage footprint for growth to increase customer satisfaction

DELAVAN, WI

Square footage: ~260k

Markets: Food & Beverage

Products:

F&B pumps

F&B valves

Homogenizers

Scraped Surface Heat Exchangers

Tubular Heat Exchangers

ROCKFORD, IL


Markets: Industrial

Products:

Hydraulic tools

Pumps

BYDGOSZCZ, POLAND


Markets: Food & Beverage, Industrial

Products

F&B pumps

F&B valves

Homogenizers

Industrial pumps

Plate heat exchangers

NEWBURY, UK


Markets: Power & Energy

Products:

Conventional power valves

Filtration

Closures

Mixers

Chemical injection skids

XIDU, CHINA


Markets: Food & Beverage, Industrial, P&E

Products

Pumps

Valves

Homogenizers

Heat exchangers

AHMEDABAD, INDIA


Markets: Industrial, Food & Beverage

Products:

Industrial pumps

Mixers

F&B valves

Modular F&B skids

Conventional power valves

Hydraulic tools

North America Europe Asia Pacific

Tubular heat exchangers

Modular F&B skids

Hydraulic tools


Bydgoszcz, Poland300k square-foot state of the art facility

Outside moves complete

Focus is now on productivity

Filling newly available capacity by insourcing parts previously sourced across Western Europe

Completing move of existing processes from old Bydgoszcz site to new site

Focusing on obtaining market leading lead times at an efficient cost through process optimization

Achieved target level of efficiency


PROCESScontinuous improvement – create “model factories” for aggressive growth product lines and cascade model across the enterprise

LEAN ORDER HANDLINGValue Stream Assessment

SIOP Sales, Inventory & Operations Planning

MODEL FACTORIES Initial Focus on Highest Return Product Lines

→ Rockford – Hydraulics

→ Bydgoszcz – F&B Pumps & Valves

→ Assen – Industrial Pumps

→ Delavan – F&B Pumps & Valves

→ Rochester – Mixers

GOALSBetter Customer Experience / Higher Profits

→ Improve lead times

→ >95% customer on-time delivery consistently

→ Improve working capital

→ Reduced E&O inventory

→ Stay competitive while improving margins

Increase velocity through value chains:

→ Order entry

→ Engineering order management

→ Supply chain performance

→ Factory utilization and flexibility

Implement standard processes for:

→ Demand management

→ Material planning

→ Production scheduling and control

→ Capacity planning


SUPPLY CHAINstrong team and robust processes in place to effectively manage material price fluctuations

Indirect 14%

Fabrication11%

Raw Materials9%

Castings / Forgings 7%

Gaskets / Seals6%

Installation 6%

Motors 6%

Automation5%

Others 24%

→ Robust supply chain management process

→ ~80% of purchases are centrally managed

→ Strong team in place

→ Consistently striving for best cost, best customer solution

→ Disciplined process to manage cost / price with product management

→ Key supply chain strategies:

→ Low cost country sourcing

→ Competitive bidding

→ Global agreements with rebates for high spend suppliers

→ Standardization of engineered parts

~$850m of Direct Material Spend Annually

AGENDA

END MARKETS Food & Beverage→ Dwight Gibson, President


Systems, 39%

Components, 29%

Aftermarket, 32%

$716m

2017 Revenue by Product

FOOD & BEVERAGE OVERVIEWa leading provider of food and beverage process technology and service

$ millions 2015 2016 2017 2018E2020 GOAL

Orders $769 $714 $792

12/31 Backlog $322 $296 $371

Revenue $870 $728 $716

% y-y change (10%) (16%) (2%)+low-mid

single digits+mid-single

digits

Segment Income $104 $75 $75

Income margin % 12.0% 10.3% 10.5%11.2% to

12.2%mid-teens

28% 35%

30%

3%4%

2017 Revenue by Region

Growth profile


Food & Beverage57%

Dairy 41%

Personal Care 2%

$716m

2017 Revenue by Market

FOOD & BEVERAGE MARKET OVERVIEWlarge global market, highly regulated with steady, consistent growth

~$24b global market expected to grow ~3% per year

Highly regulated market

Key competitors: GEA, Tetra Pak, Alfa Laval, Krones, Fristam, Sudmo Pump

Key demand drivers: Asia Pacific (China) growth Consumer evolving diets (i.e. plant-based diet) Sustainability and production efficiency Food safety

Customer ExamplesAPPLICATIONS

FOODS BEVERAGES DAIRY PERSONAL CARE

Vegetable fats

Margarines

Baby food

Ingredients

Flavorings

Yeast extract

Condiments

Confectionery

Proteins

Nutritional drinks

Plant-based drinks (i.e. almond, soy)

Beer

Flavored water

Soft drinks

Fruit juices

Wine & spirits

Tea & coffee drinks

Infant formula

Milk/Whey powders

Dairy ingredients

Recombined milk products

Butter & spreads

Yoghurt

Fermented products

Fresh & UHT milk

Pressed cheese

Silica powders

Industrial powders

Extraction/recovery of organic substances

Cosmetics

Healthcare

Detergents

Solvent recovery

Biofuel

Methanol

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http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=lElgNvuMyznFyM&tbnid=ESGY8GbTQ0qtSM:&ved=0CAgQjRwwAA&url=http://www.cardofcom.net/1037-net/prmcontact/en-v-v-v.htm&ei=3_cQUdukPMyLqQG_lICoCg&psig=AFQjCNHwG6lb0Y_57zQJqhgZKJrK2wZWXA&ust=1360152928031031

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=xVK20e1rXjHB2M&tbnid=iTm6LPuqBljP5M:&ved=0CAgQjRwwAA&url=http://www.norskdesign.no/graphic-design/tine-visual-identity-article2355-423.html&ei=bvgQUbSBAcunqQGx_ICoDQ&psig=AFQjCNEFIr45QkiBEiu7nl00sh7SeV-uog&ust=1360153070048464

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=xVK20e1rXjHB2M&tbnid=iTm6LPuqBljP5M:&ved=0CAgQjRwwAA&url=http://www.norskdesign.no/graphic-design/tine-visual-identity-article2355-423.html&ei=bvgQUbSBAcunqQGx_ICoDQ&psig=AFQjCNEFIr45QkiBEiu7nl00sh7SeV-uog&ust=1360153070048464


PUMPS VALVES

SCRAPED SURFACE HEAT EXCHANGERS

HOMOGENIZERS

SEPARATORS

MIXING

FOOD & BEVERAGE COMPONENT OFFERINGSfull line of components and related aftermarket parts and service


3rd Party Pass-Through

Content45% to 65%

SPX FLOW Engineering20% to 30%

SPX FLOW Mechanical Components10% to 30%

GENERAL COST BREAKDOWN LIQUID SYSTEM EXAMPLE

PROCESS TECHNOLOGIEScustomers value our process engineering and components

DRY SYSTEM EXAMPLE

growing installed base supports our components and aftermarket business


FIRST 10 YEARS OF A TYPICAL SYSTEMaftermarket opportunity is 10% to 30% of the system’s value


INNOVATION CENTERScomprehensive customer R&D centers enable us to innovate with our customers

Unique Thermal Infusion System increases quality in high growth Infant

Formula and specialty drinks

Microparticulation of Whey helps our customers create low fat and healthy

drinks and food products

Homogenizer pressure and capacity improvements to strengthen SPX

FLOW’s competitive position

The Mixer portfolio strengthens our market position in Infant formula, Beverage and Food applications

THERMAL INFUSION SYSTEM MICROPARTICULATION OF WHEY

HOMOGENIZER TECHNOLOGY

Integrated (Wet&Dry) dairy drives productivity and product safety for our

customers

Technology and filling partners for Yoghurt and UHT milk

INTEGRATED DAIRY

MIXER TECHNOLOGY

FILLING PARTNERS

Silkeborg and Soeborg, Denmark

Xidu, China


Gain self-sufficiency in routine maintenance areas

Outsource for specialized tasks, when stretched too thin or when significant modifications are required

REDUCE DOWNTIME & BUSINESS RISK

OUTSOURCE NON-CORE FUNCTIONS

REDUCE OVERHEAD & WORKING CAPITAL

HOW WE ADD VALUE FOR OUR CUSTOMERS

Maintain 24/7 operating environment

Ensure 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

CUSTOMER VALUE partnering with our customers enables them to be successful

Intimate Customer

Relationships are Critical to our Success

ENABLE HIGH QUALITY PRODUCTS

Achieve product KPIs

Create product differentiation


FOOD & BEVERAGE STRATEGYaggressively grow components and aftermarket

PROCESS

INCREASE MARGINS ON SYSTEMS

→ Project (order) selectivity

→ Continue to improve project delivery / execution

→ Expand customer service capabilities

PRODUCTS

AGGRESSIVELY GROW COMPONENTS & AFTERMARKET

→ Leverage new channel partners and relationships

→ New product launches:

→ Twin screw pump (2017)

→ Universal 3 pump series (2017)

→ D4 mix proof valve (2018)

→ Increase aftermarket upgrades

PEOPLE

INVEST IN COMMERCIAL TALENT

→ Continue to build bench strength

→ Expand technical sales teams

→ Add dedicated aftermarket proposal resources

→ Improve new product engineering capabilities


COMPONENTS

Driving customer intimacy by building deep customer insight and leveraging our innovation centers

Customer driven multi-year NPD, particularly for our core solutions

Expanding touch points with customers directly and via channel partners

Leveraging our capabilities to be best in class on lead times and quality

key growth initiatives

Significant Opportunity to Expand Market

Presence

TWIN SCREW PUMP

processes AND cleans

increases efficiency

maximizes productivity

UNIVERSAL 3 SERIES POSITIVE DISPLACEMENT PUMP

robust, easy to maintain

increases efficiency

maximizes productivity

2017 NEW PRODUCT LAUNCHES


AFTERMARKETwhere we will focus our growth

Greenfield projects

Brownfield expansion

Turnkey solutions

Service plans:

Corrective

Predictive

Preventative

Upgrades

Customer training

Service partners


SYSTEMSEnhance performance

SOURCING

GLOBAL STRATEGY

→ Develop strategic suppliers

→ Required adherence to strategic suppliers list

→ Leverage total spend

→ Drive productivity

PROJECT DELIVERY

IMPROVE EXECUTION

→ Proposal accuracy

→ Design quality and accuracy

→ Project Management

→ Installation & Commissioning

→ Reduced cost overruns by $9m year-over-year in 2017

COMMERCIAL

PROJECT SELECTIVITY

→ Pursue the right projects

→ Secure the best price: Value selling

→ Increase the mix of liquid systems versus dry systems to drive:

→ higher % of our components

→ higher aftermarket content


HOW WE DRIVE EXECUTIONutilizing proven systems applied consistently

APPROACH TO PROBLEM SOLVING (A3):

→ Execution plan for key strategies/initiatives

→ Ensures the plan is active and milestones are met

→ Provides status report at a glance

→ Real Time – occurs in the course of work

→ Intuitive and easy to learn and remember

→ Can be used to create better and fewer meetings

→ Is both a template for problem solving and documentation of the efforts

SCORECARDS that are transparent and reviewed regularly

RUN TO THE RED -Countermeasures if off track.And share learnings

STANDARD WORK & BEST PRACTICES used in execution plans

GOAL ALIGNMENT andkey performance indicators

PLAN DO

CHECKADJUST

GOALS

AGENDA

END MARKETS Industrial→ José Larios, President

61

Investor and Analyst MeetingMarch 8, 2018


INDUSTRIAL OVERVIEWa leading provider of industrial process and flow control technologies

$ millions 2015 2016 2017 2018E2020 GOAL

Orders $755 $697 $733

12/31 Backlog $177 $165 $217

Revenue $769 $705 $692

% y-y change (8%) (8%) (2%)+mid-high

single digits+mid-single

digits


Income margin % 13.7% 14.0% 12.4%14.4% to

15.4%high-teens

49% 24%

23%

4%<1%


Mixers25%

Dehydration Products

21%

Hydraulic Tools18%

Pumps15%

Heat Exchangers13%

Other8%

$692m

Growth profile

62


General Industrial50%

Air Treatment20%

Water/Marine 11%

Chemicals, 10%

Mining 6%

Transportation 3%

$692m


INDUSTRIAL MARKET OVERVIEWlarge global market, multiple verticals, diversified customer base, fragmented supplier universe

>$100b global market expected to grow ~3% per year

Fragmented market served by many regional players

SPX FLOW participates in 5 key product categories:

Mixers, Dehydration, Hydraulic Tools, Pumps & Heat Exchangers

Key competitors: Ekato, Philadelphia Mixer, Chemineer, Parker Hannifin, Enerpac, KSB, Xylem, Viking (IDEX), Alfa Laval, Kelvion

Customer ExamplesKEY VERTICALS

chemical general mining marine water air

Mixers X X X X

Hydraulic Tools X X

Dehydration X X X X X

Pumps X X X X X

Heat Exchangers X X X X

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=QvjBSOZCC19vrM&tbnid=zLKWxUK5d8puBM:&ved=0CAgQjRwwAA&url=http://www.jandksupplyinc.zoomshare.com/4.html&ei=qAsRUf2_Hc6yqAGY2YDYDQ&psig=AFQjCNFEhiG6yoLdi7_2gDtchfVExQlo8w&ust=1360157992519319

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63

Investor and Analyst MeetingMarch 8, 2018MIXER OVERVIEW

a leading global supplier of mixers

Mining 24%

Chemical Processing23%

General Industrial,

17% Personal Care14%

Food and Beverage

11%

Oil and Gas, 11%


57% 9%

21%

8%5%


Top-Entry Mixers Side-Entry Mixers

Portable Mixers Aftermarket Parts and Service

64

Investor and Analyst MeetingMarch 8, 2018HYDRAULIC TOOLS OVERVIEW

a leading global provider of high density power and control systems to customers in global industrial, infrastructure and power & energy markets


Transportation 12%

Oil and Gas 10%

Mining and Minerals2%




40%

39%

14%

3%4%

65

Investor and Analyst MeetingMarch 8, 2018DEHYDRATION OVERVIEW

a leading global provider of air treatment technologies

Compressed Air82%


General Industrial 7%



Desiccant Compressed Air Dryers Rental

FiltersEnergy Saving Refrigerated Air Dryer FLEX

53%

28%

16%

1%2%

66

Investor and Analyst MeetingMarch 8, 2018INDUSTRIAL PUMP OVERVIEW

a niche supplier of industrial pumps to diverse end market applications


Marine & Shipbuilding24% HVAC 20%

Power & Energy 10%




Centrifugal pumps

Gear pumps Rotary lobe pumps

Marine pumps

17%

63%

18%

1%0%

67

Investor and Analyst MeetingMarch 8, 2018HEAT EXCHANGERS

supplier of industrial heat exchangers into diverse end market applications


HVAC 25%

Marine 17%

Food & Beverage10%

Oil and Gas5%



PLATE HEAT EXCHANGER (Gasketed, Semi-Welded, Brazed)

PLATE HEAT EXCHANGER (Sanitary)

20%

23%

49%

3%5%

68

Investor and Analyst MeetingMarch 8, 2018INDUSTRIAL GROWTH PLAN

aggressively invest to grow with our customers

PROCESS

SPEED AS A DIFFERENTIATOR

→ Reduce lead time

→ Commercial and pricing discipline

PRODUCTS

COMMERCIAL EXCELLENCE

→ Aftermarket Business model innovation

→ Accelerated new product introduction

→ Expand underserved geographies and Industries

PEOPLE

BEST PEOPLE IN THE RIGHT PLACES

→ Drive for world class product management

→ Higher investment in engineering and commercial talent

→ World class service operations

AGENDA

END MARKETS POWER & ENERGY→ José Larios, President

70



diversified portfolio with high aftermarket concentration

$ millions 2015 2016 2017 2018E2020 GOAL

Orders $681 $507 $591

12/31 Backlog $408 $324 $409

Revenue $750 $563 $543

% y-y change (23%) (25%) (4%)+low-mid

single digits+low

single digits


Income margin % 11.2% 4.5% 6.5%8.7% to

9.7%low double-

digits

41% 29%

12%

18%<1%


POWER & ENERGY

Pumps 21%

Valves 22%

Filters / Closures / Other 8%

Aftermarket 49%$543m

Growth profile

71



POWER & ENERGY MARKET OVERVIEWlarge global market, SPX FLOW is a supplier in discrete parts of the market

Niche suppliers in:

O&G market:

Midstream – valves, pumps

Offshore upstream - pumps

Power:

Conventional: turbine bypass valves and boiler pumps

Nuclear: safety pumps and valves

Customer Examples KEY VERTICALS

Conventional Power

Nuclear Power

Upstream Oil and Gas

Midstream Oil and Gas

Downstream Oil and Gas

Pumps X X X X

Valves X X X

Filters / Closures X X X X

Key competitors:

Pumps:Flowserve, Sulzer, ITT Gould, Ebara, KSB

Valves: Cameron, IMI, Valvitalia

Midstream Oil, 28%

Upstream Oil, 17%

Downstream Oil, 14%Gas, 2%

Conventional Power, 5%

Nuclear, 13%

General Industrial, 20%

$543m

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http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=9oz-bD0H4EXUoM&tbnid=bZK7L-aVhA61JM:&ved=0CAgQjRwwAA&url=http://www.waterpsa.com/client.php&ei=kAYRUbnHLtL_rAHI74CwCw&psig=AFQjCNFfrCR5J7ca-HEfyh7SYtVfBj768g&ust=1360156688797054

72

Investor and Analyst MeetingMarch 8, 2018PUMP LIFECYCLE - ILLUSTRATIVE

aftermarket opportunity is 2x to 5x the OE sale value over 25 years

73

Investor and Analyst MeetingMarch 8, 2018OIL & GAS PRODUCTS

a leading N.A. supplier of pipeline valves

a global supplier of high performance pump technologies

Upstream Midstream Downstream

74

Investor and Analyst MeetingMarch 8, 2018POWER GENERATION PRODUCTS

provider of nuclear safety pumps, and turbine bypass valves

ConventionalNuclear

turbine bypass valve

nuclear safety pumps

75


continued profitability improvement, selectivity and speed of delivery to customer

PROCESS

SPEED AS A DIFFERENTIATOR

→ Disciplined project selectivity

→ Relentless pursuit of best in class deliveries

PRODUCTS

COMMERCIAL EXCELLENCE

→ Aftermarket Growth

→ Installed base penetration

→ New service centers

→ Focused portfolio around active segments

PEOPLE

BEST PEOPLE IN THE RIGHT PLACES

→ Drive for world class project management

→ Continued engineering and back office investment in high value countries

POWER & ENERGY PERFORMANCE DRIVERS

AGENDA

FINANCIALS CAPITAL ALLOCATION→ Jeremy Smeltser, VP and CFO


FINANCIAL PHILOSOPHYprinciples of our financial operating framework

Our #1 Financial

Priority is to Maintain Long-Term Financial

StabilityInvest in

Organic Growth

Staggered and Flexible

Capital Structure

Net leverage < 3x

Global Liquidity

ALWAYS MAINTAIN FINANCIAL STABILITY


DEBT REDUCTIONreduced net debt by 29% in 2017

2018 Guidance Implies Net Leverage of ~2x By Year

End

$1,109

$896$894

$632

$520

$215$264

0

200

400

600

800

1000

1200

12/31/2016 12/31/2017 12/31/2018E

Gross Debt Net Debt Cash on Hand

4.0x

3.0x

~2.0x

Net Leverage

Note: Net leverage as defined by the company’s credit facility; 2018E consistent with financial guidance provided on February, 6 2018

($ millions)


$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 @ ~3.5% 5.625% Senior Notes 5.875% Senior Notes

DEBT MATURITY SCHEDULEstaggered capital structure

100 bps of margins

expansion year

over year

($ millions)

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

$30m prepayment in January

2018

$230


PROJECTED AVAILABLE CAPITAL2018E to 2020E

Highest Quarterly

orders since xx

$450

$200

Estimated Available Capital to Deploy

Expanded Net Leverage Capacitywith EBITDA Growth

2018E - 2020E Free Cash Flow

($ millions)

~$650M OF AVAILABLECAPITAL TO DEPLOY

while maintaining net leverage of 2.5x

$650

Note: Net leverage as defined by the company’s credit facility


2018 CAPITAL ALLOCATIONfocused on organic investments and debt reduction

Highest Quarterly

orders since xx

In 2018…

Capital Allocation Remains Focused

on Organic Investments and Debt Reduction

NET LEVERAGE

> 3.0x 3.0x to 2.0x < 2.0x

Organic investments + + +

Debt reduction + + +

Acquisitions x x x

Share Repurchases x x x

Dividend x x x

2018E net leverage range and capital allocation focus



LONG-TERM CAPITAL ALLOCATIONdisciplined, long-term approach to capital allocation

Highest Quarterly

orders since xx

Long-Term…

A DisciplinedApproach to Drive Highest Value for

Shareholders

NET LEVERAGE

> 3.0x 3.0x to 2.0x < 2.0x

Organic investments + + +

Debt reduction + + +

Acquisitions x + +

Share Repurchases x + +

Dividend x + +


AGENDA

CLOSING EXECUTIVE SUMMARY


STRATEGIC OBJECTIVEtransform into a high performing operating enterprise

PERFORM

Growth and Margin Expansion

PEOPLE


PROCESS


PRODUCTS

Strategic growth in highest-value components & aftermarket

WINNING CULTURE

CUSTOMER-CENTRIC

TEAM FOCUSED

PROVEN SYSTEM

ACCOUNTABILITY

SUSTAINABLE PERFORMANCE

CULTURE

CUSTOMERS SATISFIED

EMPLOYEES ENGAGED

INVESTOR REWARDED

OBJECTIVES

1. GROW SALES - focus on highest value product lines and aftermarket

2. EXPAND MARGINS - continuous improvement, project selectivity

3. ACCELERATE CASH FLOW- working capital velocity

4. DISCIPLINED CAPITAL ALLOCATION- expect ~$650 capital available to deploy 2018-2020


VALUE CREATION~12% OPERATING MARGINS BY 2020

~12% OPERATING

MARGINby 2020

GROW COMPONENTS AND AFTERMARKET:

Optimize distribution and service contracts

Channel development

New product development

Be selective and disciplined on systemsFOO

D &

BEV

ERA

GE



Sales, Inventory And Operations Planning (S.I.O.P.)

LEAN

CO

NTI

NU

OU

S IM

PR

OV

EMEN

T

GROW HIGHEST VALUE PRODUCT LINES AND AFTERMARKET CAPABILITIES:

Grow Mixers, Hydraulics, Dehydration, Pumps

Geographic expansion (localize)

Market / channel development

New product developement

IND

USTR

IAL

GROW SERVICE & AFTERMARKET CAPABILTIES

Disciplined OE selectivity:

Focus on growing OE valves in the midstream and conventional power

Focus OE pumps on industrial applications and nuclear safety

PO

WER

& EN

ERG

Y



VALUE CREATION2020 financial goals

2020 goals

2018-2020 ANNUAL

ORGANIC GROWTH

4% to 5%

2018-2020 ANNUAL

FREE CASH FLOW







~12%



ACQUISITION FRAMEWORKconsistent with product line strategy; focused on tuck-ins

Strategic Considerations

Organizational readiness

Expand presence of highest value products/services:

CRITICAL to customer application

PREMIUM PRICING due to criticality / configuration

LOYAL AFTERMARKET for spares & service

Address gaps in current capabilities:

Customer

Channel

Regional presence

Footprint (Asia Pacific & high value centers)

Minimum Financial Criteria

ROIC > 10%

EPS accretive < 3 years

Enhances organic growth profile

Accretive to EBITDA margins

*will continue to evaluate financial criteria as we get closer to execution

Fragmented Market Provides Opportunities to

Accelerate Growth Strategy Through

Tuck-In Acquisitions


WHY INVEST IN SPX FLOWdisciplined strategy to shareholder value creation

Strategy

Strategy linked to highest returning product lines with

attractive aftermarket that

serve large diverse global end markets

Brands

Reputable brands and products

designed for severe duty, high-standard applications for a diverse and loyal customer base

Innovation

Engineering process expertise to optimize

and innovate products for sophisticated

customer requirements

Performance

Diverse management team committed to

creating a high performing

operating company

Cash Flow

Operating model which generates

120% cash flow to net income conversion

Capital

Disciplined and balanced capital

allocation strategy designed to create

attractive shareholder returns

AGENDA

QUESTIONS AND ANSWERS

APPENDIX


Marc Michael

President and CEO

Jeremy Smeltser

Vice President and CFO

David Kowalski

President, Global

Manufacturing Operations

Marc Michael is the president and chief executive

officer of SPX FLOW, Inc. Prior to that, he served as

president of SPX FLOW Food and Beverage and

under his leadership the business significantly

improved its customer relationships, market position

and operational execution. He joined the board of

directors in January 2016 and was appointed an

officer of the company in December 2014. Mr.

Michael has extensive experience with emerging

markets, managing large project businesses and

operations across EMEA. Previously, he was

president of SPX Flow Technology's EMEA region

and he also held senior positions at SPX Cooling

Technologies as president of the global evaporative

and dry cooling businesses. Prior to joining SPX in

2003, Mr. Michael held positions with General Electric

and TDK Corporation. He earned a B.S. in accounting

and finance from the University of North Alabama.

Jeremy Smeltser assumed the role of vice president

and chief financial officer for SPX FLOW, Inc. in

September 2015. He was appointed vice president

and chief financial officer of SPX Corporation in

August 2012 and was named an officer of the

company in April 2009. Prior to this, he spent a

decade serving the company in various other roles

including vice president, chief financial officer for the

company’s Flow Technology segment and vice

president, finance. Mr. Smeltser first joined SPX in

2002 from Ernst & Young LLP where he served as an

audit manager. Prior to that, he held various positions

with Arthur Andersen LLP where he focused primarily

on assurance services for global manufacturing

clients. A graduate of Northern Illinois University, Mr.

Smeltser earned a B.S. in accountancy.

David Kowalski assumed the role of president, Global

Manufacturing Operations in September 2015. He

was named president, Global Manufacturing

Operations, of SPX Corporation in August 2013 and

segment president, Industrial Products and Services,

in August 2011. He joined SPX in 1999 as the vice

president and general manager of Tools and

Equipment at Service Solutions and was named

president of Service Solutions in 2004. He became

segment president, Test and Measurement, and an

officer in August 2005. Before joining SPX he held

positions with American National Can Company, J.I.

Case, Picker International and Warner Swasey. He

holds a master’s degree in industrial engineering from

Cleveland State University and a bachelor’s degree in

mechanical engineering from the University of Notre

Dame.

EXECUTIVE MANAGEMENTspeaker bios


Dwight Gibson

President, Food and Beverage

José Larios

President, Industrial and Energy

Dwight Gibson joined SPX FLOW in June 2016 as an officer of the

company and president, Food and Beverage. Previously, Mr. Gibson

served as president of Strategic Initiatives for Ingersoll Rand’s Climate

segment. Mr. Gibson joined Ingersoll Rand in 2004 and held a variety

of general management, business development and product

management roles. From 2011 to 2015, Mr. Gibson served as vice

president and general manager for the Thermo King Europe, Middle

East and Africa truck and trailer business, with more than 800

employees in 80 EMEA countries. During that time, he was based in

Brussels, Belgium. Prior to joining Ingersoll Rand, Mr. Gibson was a

consultant with McKinsey and Company. He holds a bachelor’s degree

in business administration from Howard University as well as an

M.B.A. from Stanford University. Mr. Gibson also received a Master of

Science degree in International Strategy and Diplomacy from the

London School of Economics.

José Larios serves as president, Power and Energy and Industrial for

SPX FLOW and is responsible for driving growth and operational

enhancements of the Power and Energy and Industrial segments. He

joined the SPX FLOW team in July 2015 as vice president of Global

Original Equipment Sales for Power and Energy and was appointed

an officer of the company in August 2016. He assumed the role of

president, Industrial in January 2017. Mr. Larios has more than 20

years of experience in the oil and gas and energy industries. Prior to

joining SPX FLOW, he spent 15 years at GE and progressed in sales,

product management, marketing, operations and global commercial

leadership, where he last served as Global VP of Sales for O&G

Surface products. He earned an engineering degree from Monterrey

Institute of Technology and an M.B.A. from the Red McCombs School

of Business at the University of Texas at Austin.

EXECUTIVE MANAGEMENTspeaker bios


2018 FINANCIAL GUIDANCE($ millions, except earnings per share)

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

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 IncomeOperating Income %

$1387.1%

$1919.3%

+38%+220 points

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%

Key 2018 Guidance Assumptions

Tax Rate 25% to 26%

Diluted Shares Outstanding 42.8m

Depreciation & Amortization ~$62

Capex ~$30

($ millions, except earnings per share)


HISTORICAL REVENUE AND INCOME BY SEGMENT

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%

Industrial

Revenue $844 $836 $768 $705 $692 +mid/high single digits

Segment Income $129 $131 $105 $99 $86


Power & Energy

Revenue $1,000 $969 $750 $563 $543 +Low/mid single digits

Segment Income $120 $159 $84 $25 $36


SPX FLOW Consolidated

Revenue $2,805 $2,770 $2,389 $1,996 $1,952 4% to 6%

Segment Income $331 $386 $293 $199 $196


FX Translation y/y n/m n/m ($211) ($52) $15 ~$36*

* @ 12/31/17 FX Rates


FINANCIAL POSITIONnet leverage at 3.0x at the end of 2017

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:

→ Made an additional $30m voluntary prepayment on TLA on 1/31/18

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) As defined by the companies credit facility

Documents

Enterprise strategy - Seeking Alpha