SPX : March 2021 Investor Presentation

SPX Corporation Investor Presentation

March 2021

SPX Corporation 2019 Investor Event - New York

•  Certain statements contained in this presentation that are not historical facts, including any statements as to future market conditions, results of operations, products introductions, prospective M&A activity, and financial projections, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to safe harbor created thereby. These forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from future express or implied results. Although SPX believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. In addition, forward-looking statements are based on the company's existing operations and complement of businesses, which are subject to change.

•  Particular risks facing SPX include risks relating to economic, business and other risks stemming from changes in the economy, including changes resulting from the impact of the COVID-19 pandemic; market specific cycles and weather related fluctuations; legal and regulatory risks; cost of raw materials; pricing pressures; our reliance on U.S. revenues and international operations; our ability to successfully resolve various claims and disputes associated with our large power projects in South Africa; legacy liability (including asbestos, environmental and pension); liabilities retained in connection with dispositions; integration of acquisitions and achievement of anticipated synergies; our 2015 spin-off transaction; the effectiveness, success, and timing of restructuring plans; and other risks and uncertainties arising from impact of the COVID-19 pandemic or related government responses on SPX's businesses and the businesses of its customers and vendors, including whether SPX's businesses and those of its customers and vendors will continue to be treated as "essential" operations under government orders restricting business activities or, even if so treated, whether health and safety concerns might otherwise require certain operations to be halted for some period of time. More information regarding such risks can be found in SPX's most recent Annual Report on Form 10-K and other SEC filings.

•  Statements in this presentation are only as of the time made, and SPX disclaims any responsibility to update or revise such statements except as required by regulatory authorities.

•  This presentation includes non-GAAP financial measures. Reconciliations of the non-GAAP financial measures with the most comparable measures calculated and presented in accordance with GAAP are available in the appendix to this presentation. We believe that these non-GAAP measures are useful to investors in evaluating our operating performance and our management of business from period to period.

March 2021

2

Executive Management

SPX Corporation Overview

Company Overview

•  Headquartered in Charlotte, NC

  2020 Adjusted Revenue* by Region

•  A leading supplier of:

  •  HVAC products

  •  Detection & Measurement technologies, and

  •  Engineered Solutions

•  ~$1.6b Adjusted Revenue* in 2020

•  ~4,500 employees

•  NYSE Ticker: SPXC

SPX is a Leading Supplier of HVAC, Detection & Measurement and Engineered Solutions Products;

The Majority of Revenue is Generated by North American Sales

*Non-GAAP financial measure. Reconciliations from US GAAP financial measures are available in the Appendix of the presentation.

March 2021

5

Attractiveness of SPX for Long-Term Holders

Well positioned key platforms in growth marketsFavorable long-term secular trends and business mix; growth initiatives in early innings

>100% conversion of adjusted net income*Consistent repeatable process to drive improvementSubstantial available capital and liquidity

Well Positioned to Continue Growth Journey

*Non-GAAP financial measure. Reconciliations from US GAAP are available in the appendix of this presentation. Based on historical conversion rates.

Strong Product Offerings and Attractive Market Dynamics

•  Cooling towers

•  Refrigeration

•  Boilers

•  Electrical heating

•  Location & inspection

•  Fare collection

•  Communication technologies

•  Transformers

•  Process cooling & components

2020

ADJUSTED

REVENUE EBITDA MARGIN*

$591m 18%

$387m 23%

$578m 12%

2020 REVENUE FROM #1 OR #2 MARKET POSITION†

2020 REVENUE FROM REPLACEMENT SALES†

*Non-GAAP financial measure. Reconciliations from US GAAP financial measures are available in the appendix of this presentation.

†Based on management estimates.

Note: Weil-McLain is a division of The Marley-Wylain Company, LLC

Transformation of SPX

12% 10% 8%

6%

4%

2%

0%

Adjusted EPS from Continuing Operations*

2016 2016*

Adjusted Operating Income Margin*

2015*2015

(as reported (as reported 2/25/21/62)5/16)2/23/21/72)3/17)

2017 2017*

2018 2018*

2019 2019*

2020 2020*

20212021

(as reported (as reported

Guidance Guidance

N/A

$1.47

$1.74

$2.27

$2.76

$2.80

$3.00-3.20

Actions Taken Since Spin Have Significantly Strengthened SPX's Financial Profile

*Non-GAAP financial measure. Reconciliations from historical US GAAP financial measures are available in the applicable earnings release or in the Appendix of the presentation.

Note: Adjusted results are non-GAAP financial measures that exclude, among other items, the results of the South African operations categorized as "Other" in the company's reporting structure.

Value Creation Framework

Organic Growth

SPX Business System

•	New products	•	Policy deployment
•	Channel expansion	•	Operational excellence
•	Adjacent markets	•	Due diligence/integration

Inorganic Growth

• • Focus in HVAC and D&M

• • Significant capital to deploy

• • Large target pipeline

Culture & Values

• • Integrity

• • Results/accountability

• • Diversity & Inclusion

• • Employee development

2021+ Initiatives

Revenue & Margin Enhancement - Tools & Drivers

Growth & Margin Accretive Investment Focus

SPX has acquired ~$225M of revenue in ~3 years

50%

2020GrossMargin

44%

40%

30%

20%

10%

0%

HVAC

Detection & MeasurementEngineered Solutions

Segment Overview

•  HVAC

•  Detection & Measurement

•  Engineered Solutions

HVAC

HVAC Segment Overview

2020 Revenue by Product

Revenue

Adjusted segment income* %

Heating Products 50%

2020 Revenue $591m

Cooling Products 50%

2020 Revenue by Geography

($ millions)

2017

2018

2019

2020

.

*Non-GAAP financial measure. Reconciliations from US GAAP financial measures are available in the Appendix of the presentation.

Strong Product Brands and Leading Market Positions Across HVAC Heating and Cooling Product Portfolio

Cooling Products Overview

2020 Revenue by Product

Parts & Service 14%

2020 Revenue $297m

Package Cooling Towers & Refrigeration 86%

2020 Revenue by Geography

•  Cooling products used in non-residential, commercial construction, process cooling and refrigeration applications

•  Well-recognized product brands: Marley and Recold

•  Well-established sales channel including reps and distributors

•  Demand generally follows construction trends (e.g., Dodge Index)

•  Approximately 50% replacement sales

Strong Product Brands and Leading Market Positions Across Cooling Product Portfolio

Cooling Product Examples

Marley NC Cooling Tower

•  High efficiency

•  Low drift rates

•  Quiet by design

•  Long-life construction

Marley MH Element Fluid Cooler

•  Industrial and process cooling

•  High performance copper coils

•  Most efficient system in its class

Marley MD Everest Tower

•  Suitable for larger applications

•  85% more cooling capacity than any other pre-assembled tower

•  Installed 80% faster than field erected

Recold Fluid Cooler

•  High performance design

•  Low cost of ownership

Strong Product Portfolio and Brands with Opportunities for Expansion

Heating Products Overview

2020 Revenue by Product

•  North American businesses with strong brands

  Boiler Systems 72%

  Electrical Heating

  Products

  28%

•  Products used in residential and non-residential markets and sold primarily through distributors

•  Demand for boiler systems is seasonal:

  •  Concentrated in the fourth quarter

•  High level of replacement revenues

Strong Product Brands and Leading Market Positions in North America;

Financial Performance Seasonally Strong in Second Half

Heating Product Examples

Residential Boilers

•  High efficiency natural gas

•  Standard cast iron

•  Unique hybrid design

•  Gas Combi boilers

Commercial Boilers

•  High efficiency natural gas

•  Standard cast iron

Electrical Heating Products

Wash-down, corrosion resistant heaters

Digital

wall heaters

Trench heaters

Broad Product Offering of Heating Solutions for Residential and Commercial Applications

Note: Weil-McLain is a division of the Marley-Wylain Company, LLC.

Detection & Measurement

Detection & Measurement Segment Overview

2020 Revenue by Product

Fare Collection

Communication Technologies & ATON 28%

Technologies 16%

Location & Inspection Equipment 56%

2020 Revenue by Geography

Revenue

Adjusted segment income* %

*Non-GAAP financial measure. Reconciliations from US GAAP financial measures are available in the Appendix of the presentation.

Attractive Platform for Growth Investments; Long-Term Targets Include 2% to 6% Annual Organic Revenue Growth

Location & Inspection Overview

2020 Revenue by Product

Location 44%Inspection 56%

•  A leading global supplier of location & inspection equipment for underground infrastructure

•  Continuous new product enhancement and loyal customer base

•  Key demand drivers:

  •  Global infrastructure growth

  •  Construction growth

  •  Health & Safety Legislation

Leading Global Supplier of Equipment to Locate and Inspect Buried Utility Cables & Pipes

Location & Inspection - Key Products

Location Equipment Inspection Equipment

Full Lifecycle Infrastructure Solutions Provider for Location & Inspection Markets

March 2021

22

Communication Technologies Overview

2020 Revenue by Product

Aids to Navigation

(ATON) 69%

SMS & Comm. Int.*

31%

•  TCI : A leading global supplier of spectrum monitoring,communication intelligence and geolocation technology

•  Aids to Navigation (ATON): A leading global supplier of Flash Technology and Sabik marine obstruction lighting products

•  Key demand drivers:

  •  Global growth of wireless usage

  •  Increased spectrum provisioning and monitoring

  •  Anti-terrorism and drug interdiction effort

  •  Compliance with government & industry regulations

  •  Approximately two-thirds of sales are replacements

  •  Connectivity and lower maintenance benefits

TCI, Flash and Sabik are Leaders in Their Respective Markets

* Spectrum Monitoring Solutions and Communications Intelligence products

Communication Technologies Products

SMS & Communications	Terrestrial Obstruction	Marine Obstruction
Intelligence	Lighting	Lighting

Our Communication Technologies Solutions are Adapting to Serve Evolving and Complex Customer Needs

Transportation

•  Genfare is a leading North American supplier in fare collection:

  •  Historical market position concentrated on fare box installations

•  Rapidly evolving technology in the market has driven a transformation in our business:

  

  Evolved from "farebox supplier" to "fare collection system provider"

  •  Invested in software, product development, program management and marketing

•  New product introductions have expanded product offering to include:

  •  Strategic relationships with larger public infrastructure system integrators

  •  Mobile ticketing

  •  Cloud-based data hosting

  •  Remote ticket validator

  •  Point-of-sale delivery systems

GENFARE

Genfare is a Leading North American Supplier in Fare Collection

Transportation Products: Next Generation Fare Collection

Legacy FareboxFast Fare FareboxFast Fare-ee-FareMobileTicketingCloud-Based InfrastructurePoint-of-Sale

Fare Collection Suite of Products Integrated with Back-End Support;

We Believe This is The New Industry Standard

Engineered Solutions

Engineered Solutions Segment Overview

2020 Revenue by Product

Process Cooling

26%

2020 Revenue $578mTransformers 74%

2020 Revenue by Geography

RevenueSegment income %

2017

2018

2019

2020

($ millions)

*Non-GAAP financial measure. Reconciliations from US GAAP financial measures are available in the Appendix of this presentation.

Large Installed Base, Strong Product Offering and Brands;

Well-Positioned to Achieve Margin Improvement

Transformers Overview

Transformer Business

•  SPX is a leading supplier of power transformers into North America with strong brand equity

•  Customers include:

  •  Public and private electric utilities

  •  Independent power producers

  •  Large industrial sites

•  Two primary manufacturing locations:

  •  Waukesha, WI

  •  Goldsboro, NC

•  Service and Components center in Dallas, TX

A Leading North American Supplier of Power Transformers

Transformer Product and Service Examples

Transformer Service

Large Power (High Voltage) Transformer

Process Cooling Overview

2020 Revenue by Product

Cooling Towers 31%

2020 Revenue $150mParts & Services 69%

2020 Revenue by Geography

•  Based in the U.S., a leading global manufacturer of cooling towers and parts & components

•  Continuous new product enhancements and exceptional quality equipment for more than a century

•  Large installed base in U.S. and abroad

•  Growing component and aftermarket opportunities

•  Greater selectivity in projects

Repositioning Business for Greater Aftermarket Opportunities

Process Cooling - Key New Products

Gear Reducer

Air Flow Components

Heat Transfer Media

Aftermarket Service and Components is Focus Area of New Product Initiatives

Financial Performance & Capital Allocation

Capital Allocation Discipline

Methodology	Expected Outcome
1) Utilize strategic planning process to evaluate future revenue and earnings growth	 Quantify projected future cash flows and estimate total company valuation
2) Maintain target capital structure	 Net Debt to EBITDA(1) target range: 1.5x to 2.5x
3) Invest available capital in highest, risk-adjusted, return opportunities	 Cost reduction initiatives  Organic business development  Bolt-on acquisitions  Return of capital to shareholders

(1) Net Debt and EBITDA as defined in SPX Corporation's credit agreement

Quantify projected future cash flows and

Capital Structure

($millions)

Q3 2020

Q4 2020

Short-term debt $108 $101

Current maturities of long-term debt Long-term debt

Total Debt

Less: Cash on hand Net Debt

6 7 350 304

2.16x1.85x

Leverage Ratios

1.95x

$464 (71) $393

$412 (68) $344

1.65x

1.5-2.5x

Q3 2020

Q4 2020

Gross Leverage

LT Target

Bank Net Leverage*

Solid Balance Sheet: Well Positioned for Growth Initiatives

* Calculated as defined by SPX's credit facility agreement. Gross leverage is calculated using gross debt to adjusted EBITDA.

SPX Acquisition Approach

Qualitative

Quantitative

•  Focused on building existing platforms

  •  Existing markets or close adjacencies

•  Engineered products

•  Attractive growth opportunities

  

  Revenue transaction size $20-$200 million (primary focus); opportunistically consider larger targets

   Cash ROIC ≥ double digits 3-5 yrs

  •  Secular growth drivers

  •  Fragmented market with consolidation opportunities

•  Differentiated offering through technology, brand or channel



Accretive to adjusted EPS in year 1, GAAP EPS in year 2

Building Strategic Platforms - Location & Inspection

Note: Based on approximate run-rate revenue prior to COVID-19 pandemic

Building Strategic Platforms - Aids to Navigation

Flash Technology Obstruction

Lighting Equipment

Sabik Market Leading Marine Lighting Products

Global Leader in Aid to Navigation Lighting Solutions

Building Strategic Platforms - HVAC Cooling and Heating

Strengthened

Industrial

Refrigeration

Solutions

Accelerated

Growth

Strategy in

Commercial

High Efficiency

Boilers

Environmental Social & Governance (ESG) Commitment

E 
Efficiency and safety-focused product innovation
	Highly efficient, innovative solutions for the
maintenance of critical infrastructure
S 
Ethics-centered compliance training
	Talent development and Diversity & Inclusion
initiatives
G 
Strong, independent board (37.5% female)
	Shareholder-aligned incentive structure

1 Metric tons of CO2 equivalents per million dollars of revenue

Publish detailed annual sustainability reports

Executive Summary

Executive Summary

•  Balanced business portfolio with attractive and diverse end market drivers

•  Strong balance sheet, liquidity and cash generation

•  Effective business system and continued focus on growth accelerators, including inorganic opportunities

Significant Value Creation Opportunity

March 2021

42

Appendix

2021 Guidance

Adjusted Operating Income Margin of ~12%;

Adjusted EPS in a Range of $3.00-3.20

Note: Adjusted results are non-GAAP financial measures that exclude, among other items, the results of the South African operations categorized as "Other" in the company's reporting structure. Reconciliations of guidance measures to US GAAP financial measures are not predictable and accordingly are not included in the Appendix of the presentation.

Modeling Considerations - Full Year 2021

Metric	Considerations
Corporate Expense	$46-49m
Long-term incentive comp	~$14-15m
Restructuring costs	$1-2m
Interest cost	$13-14m
Equity earnings in JV, Other income/(expense), and Non-service pension benefit/(expense)	$3-5m
Tax rate	~21-23%
Capex	~$20m
Cash cost of pension + OPEB	$13-14m
D&A	~$45-47m
Share count	~46.3-46.6m
Currency effect	Topline sensitivity to USD-GBP rate

2021 Adjusted EPS Guidance - Key Drivers

• • Favorable economic policy/infrastructure stimulus

• • Stronger-than-normal seasonal heating demand

• • Accelerating non-residential activity

• • Moderating input cost trends

• • Accelerated project-related sales

• • Weaker-than normal seasonal heating demand

• • Decelerating non-residential activity

• • Worsening input cost trends

• • Delayed project-related sales

• • Unfavorable economic policy/macroeconomic decline

Note: Adjusted results are non-GAAP financial measures that exclude, among other items, the results of the South African operations categorized as "Other" in the company's reporting structure. Reconciliations of guidance measures to US GAAP financial measures are not practicable and accordingly are not included in this Appendix.

FY 2016-2020 Adjusted Segment EBITDA to U.S. GAAP Reconciliation

HVAC Segment Segment income

Exclude: Depreciation & amortization Adjusted HVAC Segment EBITDA

Detection & Measurement Segment Adjusted Segment income

Exclude: Depreciation & amortization, and one-time acquisition costs Detection & Measurement Segment EBITDA

Engineered Solutions Segment

Adjusted Segment income

Exclude: Depreciation & amortization Engineered Solutions Segment EBITDA

FY 2020

$

• 96.9 $

  (6.8)

  $

• 103.7 $

  $

• 80.9 $

  (5.6)

  $

• 86.5 $

  $

• 60.5 $

  (11.1)

  $

• 71.6 $

FY 2019

• 95.4 $

  (6.6)

• 102.1 $

• 91.2 $

  (5.3)

• 96.5 $

• 43.0 $

  (10.0)

• 53.0 $

FY 2018

FY 2017

90.0 $ 74.1

(5.4) (5.5)

95.4 $ 79.6

81.2 $ 63.4

(7.6) (4.1)

88.8 $ 67.5

35.0 $ 44.2

(10.6) (10.4)

45.6 $ 54.6

($ millions)

FY 2016

$

$

$

$

$

(

$

FY 2020 Adjusted Earnings Per Share to U.S. GAAP Reconciliation

($ millions)

GAAP

Adjustments

Adjusted

Segment income (1)

$

203.7 $

34.6 $ 238.3

Corporate expense (2)

(44.8)

1.7 (43.1)

Long-term incentive compensation expense

(14.0)

- (14.0)

Impairment of intangible assets (3)

(0.7)

0.7

-

Special charges (4)

(3.2)

0.8 (2.4)

Other operating expenses (5)

(9.0)

(0.4) (9.4)

Operating income

132.0

37.4 169.4

Other income, net (6) Interest expense, net

2.7

(2.7)

-

(18.2)

- (18.2)

Income from continuing operations before income taxes

116.5

34.7 151.2

Income tax provision (7)

(15.8)

(7.4) (23.2)

Income from continuing operations

100.7

27.3 128.0

Dilutive shares outstanding

45.766 45.766

Earnings per share from continuing operations

$

2.20 $ 2.80

(1) Adjustment represents the removal of (i) operating losses associated with the South Africa business ($19.3), (ii) amortization expense associated with acquired intangible assets ($14.0), (iii) one-time acquisitions costs of ($1.0), and (iv) inventory step-up charges related to the Sensors & Software acquisition of ($0.3).

• (2) Adjustment represents the removal of acquisition related expenses incurred during the period.

• (3) Adjustment represents removal of non-cash charges related to the impairment of certain intangible assets.

• (4) Adjustment primarily represents removal of restructuring charges associated with the South Africa business.

• (5) Adjustment represents the removal of income associated with revisions to estimates of certain liabilities retained in connection with the 2016 sale of the dry cooling business.

• (6) Adjustment primarily represents the removal of non-service pension and postretirement charges ($7.8), foreign currency gains associated with the South Africa business ($1.9), and a gain on equity security associated with a fair value adjustment ($8.6).

(7) Adjustment primarily represents the tax impact of items (1) through (6) above.

March 2021

48

FY 2019 Adjusted Earnings Per Share to U.S. GAAP Reconciliation

($ millions)

GAAP

AdjustmentsAdjusted

Segment income (1)

$

174.0

$

57.0 $ 231.0

Corporate expense (2)

(46.7)

2.6 (44.1)

Long-term incentive compensation expense

(13.6)

- (13.6)

Special charges, net (3)

(4.0)

3.0 (1.0)

Other operating expenses (4)

(1.8)

1.8

-

Operating income

107.9

64.4 172.3

Other income (expense), net (5)

(4.9)

6.4 1.5

Interest expense, net (6)

(19.2)

(0.1) (19.3)

Loss on amendment/refinancing of senior credit agreement (7)

(0.6)

0.6

-

Income from continuing operations before income taxes Income tax provision (8)

83.2

71.3 154.5

(13.5)

(16.9) (30.4)

Income from continuing operations

69.7

54.4 124.1

Less: Net loss attributable to redeemable noncontrolling interest Net income from continuing operations attributable to SPX Corporation common shareholders

Adjustment related to redeemable noncontrolling interest (9)

- 69.7 5.6

- 54.4 (5.6)

- 124.1

-

Net income from continuing operations attributable to SPX Corporation common shareholders after adjustment to redeemable noncontrolling interest

$

75.3

$

48.8 $ 124.1

Dilutive shares outstanding

44.957 44.957

Earnings per share from continuing operations attributable to SPX Corporation common shareholders after adjustment to redeemable noncontrolling interest

$

1.67 $ 2.76

(1) Adjustment represents the removal of (i) operating losses associated with the South Africa business ($43.6), (ii) amortization expense associated with acquired intangible assets ($8.9), and (iii) inventory step-up charges related to the Sabik and Cues acquisitions of ($2.0) .

• (2) Adjustment represents the removal of acquisition related expenses incurred during the period.

• (3) Adjustment primarily represents removal of restructuring charges associated with the South Africa business.

• (4) Adjustment represents removal of charges associated with revisions to estimates of certain liabilities retained in connection with the 2016 sale of the dry cooling business.

• (5) Adjustment primarily represents the removal of non-service pension and postretirement charges ($14.0), foreign currency losses associated with the South Africa business ($0.6), and a gain on equity security associated with a fair value adjustment ($7.9).

• (6) Represents removal of interest income associated with the South Africa business.

• (7) Adjustment represents the removal of a non-cash charge associated with an amendment to our senior credit agreement.

• (8) Adjustment represents the tax impact of items (1) through (7) above and the removal of certain income tax benefits that are considered non-recurring.

• (9) Adjustment represents removal of non-controlling interest amounts associated with our South Africa business.

FY 2018 Adjusted Earnings Per Share to U.S. GAAP Reconciliation

GAAP

Adjustments

Adjusted

($ millions)

Segment income (1) Corporate expense (2)

$

181.4

$

25.2 $ 206.6

(49.1)

5.5 (43.6)

Long-term incentive compensation expense Special charges, net (3)

(15.5)

- (15.5)

(3.7)

2.4 (1.3)

Loss on sale of dry cooling Operating income

(0.6)

0.6

-

112.5

33.7 146.2

Other income (expense), net (4) Interest expense, net

(7.6)

8.5 0.9

(20.0)

- (20.0)

Loss on amendment/refinancing of senior credit agreement (5)

(0.4)

0.4

-

Income from continuing operations before income taxes Income tax (provision) benefit (6)

84.5

42.6 127.1

(2.6)

(23.3) (25.9)

Income from continuing operations Dilutive shares outstanding

$

81.9

$

19.3 $ 101.2

44.660 44.660

Earnings per share from continuing operations

$

1.83 $ 2.27

• (1) Adjustment primarily represents the removal of (i) operating losses associated with the South Africa business ($16.0), (ii) the inventory step-up charge related to the Cues and Schonstedt acquisitions ($4.7), and (iii) amortization charges associated with acquired intangible assets ($4.1).

• (2) Adjustment represents the removal of acquisition related expenses incurred during the period.

• (3) Adjustment represents removal of restructuring charges associated with the South Africa business.

• (4) Adjustment represents the removal of non-service pension and postretirement items and removal of foreign currency losses associated with the South Africa business.

• (5) Adjustment represents the removal of a non-cash charge associated with an amendment to our senior credit agreement.

• (6) Adjustment represents the taximpact of items (1) through (5) above and the removal of certain income taxbenefits that are considered non-recurring.

March 2021

50

FY 2017 Adjusted Earnings Per Share to U.S. GAAP Reconciliation

As Reported in Form 10-K for the Year Ended December 31, 2018

($ millions)

GAAP

Adju s tm e n ts

Adju s te d

Segment income (1) Corporate expense

$

124.9 $ (46.2)

57.4

$ 182.3

(0.9) (47.1)

Long-term incentive compensation expense Pension service cost

(15.8) - (15.8)

(0.3) - (0.3)

Special charges, net (2)

Operating income

(2.7) 59.9

1.5 (1.2)

58.0 117.9

Other expense, net (3)

(7.1)

5.4 (1.7)

Interest expense, net (4)

(15.8)

0.6 (15.2)

Loss on amendment/refinancing of senior credit agreement (5)

(0.9)

Income from continuing operations before income taxes

36.1

Income taxprovision (benefit) (6)

47.9

0.9 64.9 (72.4)

- 101.0 (24.5)

Income from continuing operations

84.0

(7.5) 76.5

Dilutive shares outstanding

43.905 43.905

Earnings per share from continuing operations attributable to SPX Corporation common shareholders after adjustment related to redeemable noncontrolling interest

$

1.91

$ 1.74

(1) Adjustment represents the removal of (i) operating losses associated with the South Africa business and the operating income of the Heat Transfer business, and (ii) amortization charges associated with acquired intangible assets ($0.4).

• (2) Adjustment represents removal of restructuring charges associated with the South Africa and Heat Transfer businesses.

• (3) Adjustment represents removal of a gain on interest rate swaps, as these swaps no longer qualified for hedge accounting in connection with an amendment to our senior credit agreement, foreign currency losses associated with the South Africa and Heat Transfer businesses, and the removal of non-service pension and postretirement items.

• (4) Adjustment relates to the removal of interest expense incurred in connection with borrowings under a line of credit in South Africa.

• (5) Adjustment represents the removal of a non-cash charge associated with an amendment to our senior credit agreement.

• (6) Adjustment represents the taximpact of items (1) through (5) above and the removal of certain income taxbenefits that are considered non-recurring.

March 2021

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FY 2016 Adjusted Earnings Per Share to U.S. GAAP Reconciliation

As Reported in Form 10-K for the Year Ended December 31, 2016

($ millions)

GAAPAdjustmentsAdj u s t e d

Segment income

$

Corporate expense

Pension and postretirement income (expense)

142.8 $ (41.7) (15.4)

14.5

$ 157.3

- (41.7)

16.0 0.6

Long-term incentive compensation expense

(13.7) - (13.7)

Special charges, net

(5.3) - (5.3)

Impairment of intangible assets

Gain on sale of dry cooling business Operating income

(30.1) 18.4 55.0

30.1 (18.4)

- -

42.2 97.2

Other income (expense), net (1)

(0.3)

2.1 1.8

Interest expense, net (2)

(14.0)

0.2 (13.8)

Loss on early extinguishment of debt

(1.3)

1.3

-

Income from continuing operations before income taxes

39.4

45.8 85.2

Income taxprovision

(9.1)

(14.1) (23.2)

Income from continuing operations

30.3

31.7 62.0

Less: Net loss attributable to redeemable noncontrolling interest (3)

(0.4)

0.3 (0.1)

Net income from continuing operations attributable to SPX Corporation common shareholders

30.7

Adjustment related to redeemable noncontrolling interest (3)

(18.1)

31.4 18.1

62.1 -

Net income from continuing operations attributable to SPX Corporation common shareholders after adjustment to redeemable noncontrolling interest

12.6

49.5 62.1

Dilutive shares outstanding

42.161 42.161

Earnings per share from continuing operations attributable to SPX Corporation common shareholders after adjustment to redeemable noncontrolling interest

$

0.30

$ 1.47

(1) Adjustment represents the removal of operating losses associated with the South African projects.

(2)Adjustment represents the removal of non-service pension and postretirement items.

• (3) Adjustment represents the removal of a non-cash impairment charge associated with our Heat Transfer business, which was subsequently classified as discontinued operations.

• (4) Adjustment represents removal of gain on sale of dry cooling business

• (5) Adjustment represents removal of foreign currency losses associated with the South African projects.

• (6) Adjustment relates to the removal of interest expense incurred in connection with borrowings under a line of credit in South Africa.

(7)Adjustment represents the removal of a non-cash charge associated an amendment to the senior credit agreement.

(8) Adjustment represents the tax impact of the items noted in (1) through (7) above.

(9)Adjustment represents removal of noncontrolling interest amounts associated with the South Africa projects.

FY 2020, 2019 and 2018 Adjusted Revenue and Adjusted Segment Income to U.S. GAAP Reconciliation

CONSOLIDATED SPX:

Twelve months ended

($ millions)

December 31, 2020

December 31, 2019

December 31, 2018

U.S. GAAP revenue Exclude:

$1,559.5

$1,520.9

$1,512.6

Other (1) Adjusted revenue

4.0 $1,555.5

(6.1)

72.1

$1,527.0 $1,440.5

U.S. GAAP segment income Exclude:

$203.7

$176.5 $181.4

Exclude: Other(2)

(20.6)

(45.6) (21.1)

Exclude: Amortization expense (3)

(14.0)

(8.9) (4.1)

Adjusted segment income as a percent of adjusted revenues

$238.3 15.3 %

$231.0 $206.6

15.1 %

14.3 %

HVAC REPORTABLE SEGMENT: HVAC segment income

$

93.4

$

95.4

$

90.0

Exclude: One time acquisition related costs

(0.6)

-

-

Exclude: Amortization expense (3) HVAC adjusted segment income as a percent of HVAC segment revenues (4)

(2.9)

(1.4)

(0.4)

$96.9

$

96.8

$

90.4

16.4 %

16.3 %

15.5 %

DETECTION & MEASUREMENT REPORTABLE SEGMENT: Detection & Measurement segment revenue

$

387.3

$

384.9 $ 320.9

Acquisition accounting adjustment to acquired deferred revenue Detection & Measurement adjusted segment revenue Detection & Measurement segment income

-

- (0.5)

$ $

387.3

69.1

$ $

384.9 $ 321.4

81.7 $ 72.4

Exclude: One time acquisition related costs (2) Exclude: Amortization expense (3)

(0.7)

(2.0) (5.1)

(11.1)

(7.5) (3.7)

Detection & Measurement adjusted segment income

$

80.9

$

91.2 $ 81.2

as a percent of Detection & Measurement adjusted segment revenues

20.9 %

23.7 %

25.3 %

(1) Represents the removal of the financial results of our South African operations. Note: This business is being reported as an "Other" operating segment for U.S. GAAP purposes due to certain wind-down activities that are occurring within this business.

(2) Primarily represents additional "Cost of products sold" recorded during the twelve months ended December 31, 2020, related to the step-up of inventory (to fair value) acquired in connection with the Sensors & Software acquisition, the twelve months ended December 31, 2019 related to the step-up of inventory (to fair value) acquired in connection with the Sabik acquisition, and the twelve months ended December 31, 2018 related to the step-up of inventory (to fair value) acquired in connection with the Cues and Schonstedt acquisitions.

(3) Represents amortization expense associated with acquired intangible assets.

.

FY 2016-2020 Consolidated EBITDA to U.S. GAAP Reconciliation

Adjusted net income excluding amortization (1)

Exclude: Interest expense

Exclude: Tax expense

Exclude: Depreciation & amortization

Adjusted earnings before interest, tax, depreciation and amortization as a percent of adjusted revenue

FY 2020

$

• 128.0 $

  (18.2)

  (23.2)

  (27.4)

  $

• 196.9 $

124.1 $ 101.2

(19.3) (25.4)

(28.5) (20.0)

(25.7) (24.0)

197.6 $ 170.6

13 %

(1) Non-GAAP financial measure. Reconciliations from US GAAP are available elsewhere within this appendix.

($ millions)

FY 2019

FY 2018

13 % 12%

$

$

FY 2016 Engineered Solutions Adjusted Revenue, Adjusted Gross Profit and Adjusted Segment Income to U.S. GAAP Reconciliation

Engineered Solutions and "Other"* revenueFY 2016

$ 736.4

Exclude: South African projects 83.3

Engineered Solutions adjusted revenue

($ millions)

$

653.1

Engineered Solutions and "Other"*gross profit

$ 97.7

as a % of revenues 13%

Exclude: South African projects (5.8)Engineered Solution adjusted gross profit

$

103.5

as a % of adjusted revenue 16%

Engineered Solutions and "Other"* segment income

$ 17.3

Exclude: Losses fromSouth African projects (14.5)Engineered Solutions adjusted segment income as a % of adjusted revenue

$

31.8 5%

* The South Africa business is reported as an "Other" operating segment due to certain wind down activities occuring within this business.

FY 2015 Adjusted Operating Income to U.S. GAAP Reconciliation (As Reported)

Full Year 2015

Operating Loss

$ (170.0)

Exclude:South African projects 120.5

Certain corporate expenses (1) 80.2

Spin-related costs (2) 3.5

Asset impairments 13.7

Non-service pension expense 15.0

Core Adjusted Operating Income

as a percent of Core revenues

$

62.9 3.7%

(1) Represents an estimate of the corporate costs, related to the support provided to the SPX Flow businesses, that were anticipated to no longer be incurred by SPX Corp following the spin off.

(2) Represents non-recurring charges incurred in connection with the spin-off

($ millions)