Food Service Equipment INTERNATIONAL CORPORATION

Engraving HydraulicsEngineeringTechnologies

ElectronicsTechnologies

F h Q Fi l 2012Fourth Quarter Fiscal 2012Conference CallAugust 28, 2012

Agenda

Overview Roger Fix – President & Chief Executive Officer

Financial Review Tom DeByle – Chief Financial Officer

Segment Results and Outlook

Statements in this presentation include, or may be based upon, management's current expectations, estimates and/orprojections about Standex's markets and industries. These statements are forward-looking statements within themeaning of The Private Securities Litigation Reform Act of 1995 Actual results may materially differ from those

Segment Results and Outlook Roger Fix – President & Chief Executive Officer

meaning of The Private Securities Litigation Reform Act of 1995. Actual results may materially differ from thoseindicated by such forward-looking statements as a result of certain risks, uncertainties and assumptions that are difficultto predict. Among the factors that could cause actual results to differ are the impact of implementation of governmentregulations and programs affecting our businesses, unforeseen legal judgments, fines or settlements, uncertainty inconditions in the financial and banking markets, general domestic and international economy including more specificallyincreases in raw material costs, the ability to substitute less expensive alternative raw materials, the heavy constructionvehicle market, the ability to continue to successfully implement productivity improvements, increase market share,

k t i t d d t d h i t t i h l th f laccess new markets, introduce new products and enhance our presence in strategic channels, the successfulexpansion and automation of manufacturing capabilities and diversification efforts in emerging markets, the ability tocontinue to achieve cost savings through lean manufacturing, cost reduction activities and low cost sourcing, effectivecompletion of plant consolidations, the successful integration of acquisitions, and the other factors discussed in theAnnual Report of Standex on Form 10-K for the fiscal year ending June 30, 2011, which is on file with the Securitiesand Exchange Commission, and any subsequent periodic reports filed by the company with the Securities andExchange Commission. In addition, any forward-looking statements represent management's estimates only as of the

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g , y g p g yday made and should not be relied upon as representing management's estimates as of any subsequent date. Whilethe company may elect to update forward-looking statements at some point in the future, the company andmanagement specifically disclaim any obligation to do so, even if management's estimates change.

Fourth Quarter 2012 Overview

Positive results demonstrate success of growth strategy Strong YOY sales growth in Q4 Strong YOY sales growth in Q4 Q4 total sales up 5.0% Organic sales +6.5% FX impact of 1 5% FX impact of -1.5%

Four of five groups reported YOY sales growth

3 groups grew the top line double digits3 groups grew the top line double digits

All five groups reported YOY operating income growth

4 groups grew the bottom line double digitsg p g g

Non-GAAP operating income +16.5% and non-GAAP EPS from continuing ops +12.1% for Q4

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Full Year Fiscal 2012 Overview

• Full year sales grew 9.2%– Organic sales +6.9%– Acquisitive growth +2.4%– FX impact -0.2%

• Second consecutive record year for non-GAAP EPSNon-GAAP EPS of $3 39/share up 14 1% YOY– Non-GAAP EPS of $3.39/share up 14.1% YOY

• Ended the year in a net cash position of $4.7M after making $6M voluntary defined benefit plan contribution

• Strong Cash Generation – Free cash flow per share from continuing operations at $3.40 excluding pension contribution

• Significant progress in executing Focused Diversity strategy– Successfully divested the Air Distribution Products business and related

excess real estateexcess real estate– Metal Spinners contributed to both top and bottom line performance of SXI– Excited about potential for both Meder Electronics and Giorik acquisitions

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Acquisition of Meder Electronics

• Meder will become part of Electronics reporting segment integrated with Standex Electronicswith Standex Electronics

• Meder CY2011 financial performance– Sales €46M

EBITDA > 13%– EBITDA > 13%• Combined business proforma financials

– Sales ≈ $104MEBITDA≈ $17M– EBITDA≈ $17M

• Anticipated accretion– FY13 $.08-$.12/share (including purchase accounting)

FY14 $ 26 $ 31/share– FY14 $.26-$.31/share• Meder and Standex Electronics are highly complementary in terms of

product offering, geographic sales channel and served end markets– Combined business has critical mass and global reach– Combined business has critical mass and global reach

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Sales by Country

Europe (Other)

Asia9%

Europe6%

Germany 41%

USA & Canada17%

Europe (Other)22%

USA

Canada10%

Asia20%

USA75%

USA & CanadaAsia

Europe (Other)14%

USA & Canada48%

Germany 23%

15%

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Sales by Product Category

7

Sales by Industry Segment

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Historical Financial Performance

$4 00

Cost structure in place, organic and acquisition initiatives working = EPS Expansion

$3.39 $620

$640

$3.50 

$4.00 

$2.41 

$2.97 

$580

$600

$2.50 

$3.00  Recession andMajor Restructuring

$1.60  $540

$560

$1 50

$2.00 

$1.32 

$500

$520

$1.00 

$1.50 

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Adjusted EPS Sales

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Quarterly Results

Q4 Q4FY 2012 FY 2011 Delta

Sales 169.800$ 161.694$ 5.0%

($ in thousands, except per share data)

Operating Income 18.525$ 15.548$ 19.1%

Operating Income Margin 10.91% 9.62% 129 bps

Operating Income excl Special Items 19.220$ 16.499$ 16.5%

Operating Income Margin % excl Special Items 11.32% 10.20% 112 bps

EBITDA 22.096$ 19.143$ 15.4%

EBITDA % 13.01% 11.84% 117 bps

EBITDA w/o Special Items 22.791$ 20.094$ 13.4%

EBITDA % w/o Special Items 13.42% 12.43% 100 bps

EPS Continue Ops 1.05$ 0.86$ 22.1%

EPS Continue Ops w/o Special Items 1 02$ 0 91$ 12 1%EPS Continue Ops w/o Special Items 1.02$ 0.91$ 12.1%

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Quarterly Bridge

Proforma net income and EPS at +12% improvement YOY($ in thousands, except per share data)($ , p p )

Quarter Comparison Prior Year FY 12 FY 11 % Change FY 12 FY 11 % Change

Net Income Continuing Operations 13,486$ 10,921$ 23.5% 1.05$ 0.86$ 22.1%

Net Income Q4 EPS Q4

Add:Restructuring (Tax Effected) 153$ 245$ 0.01$ 0.02$ Acquisition-related expenses 303$ 378$ 0.02$ 0.03$

Less:

Non Recurring Tax Items (790)$ -$ (0.06)$ -$

Proforma Net Income from Continuing Operations 13,151$ 11,544$ 13.9% 1.02$ 0.91$ 12.1%g p ,$ ,$ % $ $ %

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Full Year Results

Full Year Full YearFY 2012 FY 2011 Delta

Sales 634.640$ 581.369$ 9.2%

($ in thousands, except per share data)

$ $

Operating Income 64.580$ 55.256$ 16.9%

Operating Income Margin 10.18% 9.50% 67 bps

Operating Income excl Special Items 61.951$ 55.586$ 11.5%

Operating Income Margin % excl Special Items 9.76% 9.56% 20 bps

EBITDA 78.589$ 68.329$ 15.0%

EBITDA % 12.38% 11.75% 63 bps

EBITDA w/o Special Items 75 960$ 68 659$ 10 6%EBITDA w/o Special Items 75.960$ 68.659$ 10.6%

EBITDA % w/o Special Items 11.97% 11.81% 16 bps

EPS Continue Ops 3.67$ 2.98$ 23.2%

EPS Continue Ops w/o Special Items 3.39$ 2.97$ 14.1%

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Full Year Bridge

Proforma net income and EPS at +14% improvement YOY($ in thousands, except per share data)($ , p p )

YTD Comparison FY 12 FY 11 % Change FY 12 FY 11 % Change

Net Income Continuing Operations 46,907$ 38,026$ 23.4% 3.67$ 2.98$ 23.2%

YTD EPS YTD

Add:Restructuring (Tax Affected) 1,104$ 1,207$ 0.09$ 0.09$ Acquisition-related expenses 303$ 1,215$ 0.02$ 0.10$

Less: Building Sales (3,301)$ (2,168)$ (0.26)$ (0.16)$ Non Recurring Tax Items (1,635)$ (503)$ (0.13)$ (0.04)$

Proforma Net Income from Continuing Operations 43 377$ 37 777$ 14 8% 3 39$ 2 97$ 14 1%Proforma Net Income from Continuing Operations 43,377$ 37,777$ 14.8% 3.39$ 2.97$ 14.1%

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Net Working Capital

6/30/2012Net Receivables 99,432$ Days Sales Outstanding 52

4

5.8

.4

5.9

5.8 5.

9

6.3

6.2

6.0

7.0

300,000

350,000

Inventories 72,955 Turns 6.0

Accounts Payable (61,992) Days Payable Outstanding 45

3.5 3.

7

4.3

5.4

5.

5.1

3.0

4.0

5.0

150,000

200,000

250,000

Net Working Capital 110,395$ % of Revenue 16.3%

Net Working Capital Turns 6.20.0

1.0

2.0

0

50,000

100,000

Q4-01 Q4-02 Q4-03 Q4-04 Q4-05 Q4-06 Q4-07 Q4-08 Q4-09 Q4-10 Q4-11 Q4-12

• Working Capital turns show improvements over time

NWC NWC Turns Linear ( NWC ) Linear ( NWC Turns )

• Focus remains on Accounts Receivable, Inventory and Accounts Payable metrics

• Management continues to employ best practices to target g p y p gWorking Capital turns around 6.0

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Debt Management

45%

55%

$120 000

$140,000

$160,000

$180,000

6/30/2012Short Term Debt -$ Long Term Debt 50,000 Funded Debt 50,000

5%

15%

25%

35%

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000 Less: Cash (54,749) Net Debt (4,749)$

Shareholder's Equity 242,907$

-5%($20,000) Q4 01 Q4 02 Q4 03 Q4 04 Q4 05 Q4 06 Q4 FY 07 Q4 FY 08 Q4 FY 09 Q4 FY 10 Q4 FY 11 Q4 FY 12

Net Debt Funded Debt Net Debt to Capital Ratio

Net Debt & Equity 237,910$

Net Debt to Capital -2.0%Funded Debt to Capital 21.0%

• Net Debt to Capital at -2.0% as of June 30, 2012– Lowest leverage in Standex’s history

Capacit to f nd organic initiati es prod cti it• Capacity to fund organic initiatives, productivity improvements and bolt on acquisitions

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SXI Free Cash Flow

$4.31

$3.40$3 50

$4.00

$4.50

$5.00

FCF Per Share

$2.84

$1.50

$2.00

$2.50

$3.00

$3.50

$0.00

$0.50

$1.00

FY 2010* FY 2011 FY 2012*

FCF Per Share*Adjusted for Voluntary Pension Contributions

Continuing Operations

Free operating cash flow:Q4

FY2012Q4

FY2011 FY2012 FY2011

FCF Per Share

Net cash provided by operating activities, as reported 24,312$ 28,003$ 47,441$ 60,834$ Add: Voluntary Pension Contribution 6,000 6,000 Less: Capital Expeditures (1,723) (1,088) (9,936) (5,919) Free operating cash flow 28 589$ 26 915$ 43 505$ 54 915$

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Free operating cash flow 28,589$ 26,915$ 43,505$ 54,915$Net Income 13,486 10,921 46,907 38,026 Conversion of free operating cash flow 212.0% 246.5% 92.7% 144.4%

Capital Spending

$20,000

$6,772

$10,233

$13,000 to $16,000

$10,901 $10,778

$12,000 to$13,000

$10,000

$15,000

$2,374 $2,712

$4,000 to$4,500

$0

$5,000

FY 2011 FY 2012 FY 2013

• Key CAPEX ProjectsF d S i F th i t t i t l f i d t ti

CAPEX Depreciation Amortization

– Food Service – Further investments in metal forming and automation– Engraving – Create mold texturizing operations in India and Korea, expand the use of

digital technologies – Electronics – New manufacturing facility in Mexico and expansion of reed switch

production capacityproduction capacity– Engineering Technologies – Acquisition of 2 CNC spin lathes– Hydraulics – Expansion of China facility capacity

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Fourth Quarter FY12 QOperational Segment Review

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Food Service Equipment Group

Q4’12 (‘000s) $ Δ%(yoy)

Revenues $100,749 3.9%

Operating Income $11,111 11.2%

• Good sales growth at Refrigerated Solutions– Continuing strength at Quick Serve Chains

Progress in Dollar Store segment– Progress in Dollar Store segment– New Products (rack refrigeration and value line refrigeration) showing good growth

• Cooking Solutions continues to be negatively impacted by lower chain sales in the US and lower retail sales in the UKC stom b sinesses sa good demand• Custom businesses saw good demand

• Improved profitability driven by Refrigeration and Custom businesses• Efforts to improve Cooking Solutions profitability

– Ongoing cost reduction efforts

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– Expanding breadth of chain business similar to Refrigerated Solutions

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Engraving Group

Q4’12 (‘000s) $ Δ%(yoy)

Revenues $24,762 13.5%

Operating Income $4,896 48.0%

• Strong demand and record year performance for mold texturizing business globallyg oba y

– Share gains driven by global infrastructure and technology• Improvements in Innovent business driven by new products and emerging

market penetrationR ll i d hi b i till t l l l b t t bili d ith• Roll engraving and machinery business still at a low level but stabilized with improving quotation activity

• Continue to invest in emerging market strategy with new facilities in Brazil, India and Korea planned for FY13

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• New automotive program launches in FY13 will be down somewhat from FY12 but expect strong demand in FY14

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Engineering Technologies Group

Q4’12 (‘000s) $ Δ%(yoy)

Revenues $22,673 -5.7%

Operating Income $4,964 2.9%

• Difficult YOY comparison as prior year included large aerospace and navy nuclear shipmentsy p

• Metal Spinners continues to benefit from oil and gas segment– Expect first half oil and gas shipments to be low with strong sales

throughout CY14• Aerospace shipments expected to remain stable at a high level

through FY13.• Land based turbine business recovery remains uncertain

2121

Electronics Group

Q4’12 (‘000s) $ Δ%(yoy)

Revenues $13,355 11.5%51.5%

42.8%35.3%12 000

14,00016,00018,00020,000

Electronics YOY Revenue Change

Revenues $13,355 11.5%

Operating Income $2,556 34.8%-0.1%-0.5%-2.3%

4.3% 0.6%-11.2%

-33.5%-44.3%

-32.3%-19.8%

16.3%23.0%

6.9%-0.7%0.6% 1.9%

11.5%

02,0004,0006,0008,000

10,00012,000

• Solid YOY top line growth driven by several new customer program and product launches and strengthening in reed switch business

• Expect legacy business to continue to benefit from new products and

Revenue YOY %

• Expect legacy business to continue to benefit from new products and business opportunities through FY13

• Initial customer reaction to Meder acquisition is very positive and we are already seeing early signs of cross selling opportunitiesy g y g g pp

• Focus of integration– Complete Finance and IT integration– Identify and begin implementation of specific sales synergies

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y g p p y g– Exploit material and infrastructure cost synergies

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Hydraulics Group

Q4’12 (‘000s) $ Δ%(yoy)

Revenues $8,261 19.9% 0 8%

28.1%39.4%39.8%43.8%42.7%42.0%

24.3%19.9%20%

40%

60%

6,000

7,000

8,000

9,000

10,000

Hydraulics YOY Revenue

Revenues $8,261 19.9%

Operating Income $1,402 74.4%-12.2%

-2.1%-2.4%-5.0%-7.5%

-32.7%

-47.4%-46.6%-53.3%

-37.0%

-5.5%0.8%

-60%

-40%

-20%

0%

0

1,000

2,000

3,000

4,000

5,000

6,000

• North America market for dump trailer applications continues to recover

Revenue YOY %

• Benefiting from market share gains in refuse handling applications

• Export of cylinders from China facility contributing to both topExport of cylinders from China facility contributing to both top and bottom line growth

• Investing in further expansion of China facility

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Summary

• Q4 was a record quarterly finish to a record year in FY12

• Success in Q4 and FY12 is the result of organic and acquisitive growth initiatives and focus on operational excellence

• Exited FY12 in a net cash position for the first time in company history

• Some headwinds expected for FY13

• Will continue to drive organic growth initiatives and cost reduction efforts

• Balance sheet is extremely well positioned to support additional acquisitions

24• Meder acquisition will provide earnings accretion in FY13

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Q & AQ & AQ & A Q & A SessionSession

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