EXHIBIT 99.2
Business Strategy – 2009
Tecumseh Products Company
Investor Presentation, July 2009
1
Forward-Looking Statement
This presentation contains certain statements regarding the Company’s plans and expectations, which are forward-
looking statements and are made pursuant to the Safe Harbor provision of the Securities Litigation Reform Act of 1995.
These forward-looking statements reflect the Company’s views at the time such statements are made, with respect to the
Company’s future plans, objectives, events and financial results such as revenues, expenses, income, earnings per share,
operating margins, financial position, expected results of operation and other financial items, as well as industry trends
and observations.
In addition, words such as estimate, expect, intend, should, could, will and variations of such words and similar
expressions are intended to identify forward-looking statements.
These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that
are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. There are a number of factors,
many of which are beyond the Company’s control, which could cause actual results and outcomes to differ materially
from those described in the forward-looking statements.
In addition, this document presents a number of initiatives with possible implications on the activities of the Company’s
subsidiaries around the world. These initiatives are in various phases of development, and each has been or will be
assessed by management to establish its feasibility and financial impact. Once and if each initiative is established,
implementation will be executed in full compliance with the laws of the relevant countries of operation.
Risk factors exist and new risk factors emerge from time to time that may cause actual results to differ materially from
those contained in any forward-looking statements.
Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a
prediction of actual results. Furthermore, the Company expressly disclaims any obligation to update, amend or clarify
forward-looking statements. In addition to the foregoing, several risk factors are discussed in the Company’s most
recently filed Annual Report on Form 10-K and other SEC filings, under the titles “Risk Factors” or “Cautionary
Statements relating to Forward-Looking Statements” and those discussions regarding risk factors as well as the
discussion of forward-looking statements in such sections are incorporated by reference in this presentation.
2
Progress over last 18 months
Strategy and actions taken
Financial results
3
We made progress against 2008 initiatives
New global processes implemented:
Tecumseh Production System
New product development
Product and service portfolio management
Supply chain
Margin management
Global implementation of basic Oracle
complete
Best Cost Country implementation in
process
Migrating volumes from Europe to Brazil
Migrating volumes from NA to Brazil / India
Mexico condensing unit facility opened
Reducing levels of vertical integration by
outsourcing non-core manufacturing to
lower-cost sources
Laminations
Machining
Stamping
Castings
Expanding offering in high-growth, high-
margin applications
Strengthening the team across regions /
functions … focus on people
Last July we told you what needed to be done …
… and we’ve been busy!
4
And we began executing a longer-term strategy
Growing profitable product lines:
Scroll – beginning to take orders for
compressors and condensing units
Masterflux ® (variable speed) – growing
position
Silensys ® (condensing unit) – growing
position
Investing in new products and services:
Reciprocating – enhancing and rationalizing
Rotary – expanding
Scroll – expanding
Masterflux – expanding
Condensing units – enhancing
Application development – expanding
Optional extended warranty protection – new
offering
Operating profit and net income: sharp
volume decline (recession) drove lower-
than-desired results
More effectively managing working capital:
Jun ’08: Inv $156 MM
Mar ’09: Inv $112 MM
In December we outlined a long-term path …
… and we’ve made progress!
5
After an encouraging 1H’08, the recession has
depressed recent results
When
volumes
come back,
we expect
target
profitability
Financial results then (2007) …
Now …
Impacted severely by
global recession
2007
1H'08
2H'08
1Q'09
Net sales
1,116.8
549.0
419.9
148.1
Cost of sales
976.9
469.9
397.8
138.8
Selling and administrative expenses
130.8
65.9
62.9
32.2
Impairments, restructuring charges, and
other items
7.2
3.8
39.7
5.9
Operating income (loss)
% of Sales
1.9
0.2%
9.4
1.7%
(80.5)
(19.2%)
(28.8)
(19.4%)
Interest expense
22.3
13.5
10.9
2.9
Interest income and other, net
6.2
5.1
4.6
0.8
Income (loss) from continuing operations
before taxes
(14.2)
1.0
(86.8)
(30.9)
Tax (benefit) expense
(8.2)
0.8
(6.7)
(6.4)
Income (loss) from continuing operations
(6.0)
0.2
(80.1)
(24.5)
Income (loss) from discontinued operations,
net of tax
(172.1)
25.8
3.6
0.6
Net income (loss)
(178.1)
26.0
(76.5)
(23.9)
Volume (MM units)
16.1
7.8
6.0
2.4
Ending Cash
76.8
178.6
113.1
88.0
Beginning to show
improvement
* Controllable SG&A reduced by $15.2 MM (2007 vs. 2009 run-rate), but
offset by fees outside the course of ordinary business ($17.7 MM in
2008, $3.3 MM in 1Q’09)
** Cash reduction includes working capital settlement to Platinum Equity
of $13.1 MM in Mar ’09, related to Engine & Powertrain business
*
*
*
*
**
6
Location
2008
2009
2010
FROM
TO
Project
IRR
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
USA
India
AK (3)
58%
RK (9)
42%
AW (8)
113%
AV (7)
137%
Brazil
AE (1)
>200%*
MX (--)
579%
Mexico
CU (2)
82%
France
Brazil
AE (--)
>200%*
India
Capability Build
TP (4)
128%
TW (5)
Project 12
Project 13
Project 10
--
Project 14
--
Project 15
--
Project 17
--
Project 6
--
Project 11
--
Project 16
--
Project 18
--
Project 19
--
Project 20
--
Project 21
--
Meanwhile, we continued implementing our Best
Cost Country strategy
Presented in Dec 2008
We adapted the original
BCC strategy to current
economic conditions to
carefully preserve capital
* No capital but significant savings associated with AE move
Ramp Up
Begun
Begun
Begun
Approved
Vision
Ramp up
Complete
Ramp up
Begun
Begun
Delayed
Complete
Complete
Delayed
Vision
Vision
Vision
Vision
Vision
Vision
Approved
Begun
7
The New Tecumseh
Vision
Markets and products
Operations and culture
8
Our goals … restore the Tecumseh brand promise
To be the SUPPLIER OF CHOICE ...
That deliversPROFITABILITY
improvement and revenueGROWTH in
markets we serve (Commercial, R&F and
AC) …
And to be recognized as theGLOBAL
LEADER IN COMMERCIAL
REFRIGERATION.
9
Our products and our customers’ applications
Compressors
Condensing Units
Customer Applications
Scroll
7,400 – 44,000 btu/h*
Rotary
5,000 – 32,000 btu/h
Reciprocating
200 – 72,000 btu/h
Silensys ®
1,000 – 115,000 btu/h
Specialty AC
and Heat
Pump:
Rotary, Scroll
Household
Refrigerator &
Freezer:
Small
Reciprocating
Commercial
Applications:
Recip, Scroll, Rotary
* Expanding to 150,000 btu/h
Outdoor
7,800 – 72,000 btu/h
Celseon ®
360 – 70,000 btu/h
10
We participate across compressor applications
Tecumseh Hermetic Compressor Market Applications
Specialty AC
Residential
Ducted / Unitary
Room air
Mini-split
Multi-split
Dehumidifier
Light Commercial
Mini-split
Multi-split
Ducted / Unitary
PTAC / PTHP
Household R&F
Refrigerator
Top mount (No frost /
direct cool)
Bottom mount
Side by side
Built in
Under counter
Single door (direct
cool & frost-free)
Freezer
Upright
Chest
OEM primarily, some distribution for repair
Display Case
Food
Bottle coolers
Storage only
Merchandisers
Reach-in / Walk-in
Commercial Refrigeration
Ice Machine
Beverage dispenser
Water coolers
Water fountains
Beverage
Other & Parts
Vending Machines
Bulk milk
Cryogenic
Soft serve
Lab chillers
Medical / Pharma
Transport
FOW
Trucks
Trains
Aircraft
Military
Electronics / Telecom
OEM and distribution – new, repair
and design / build
Industrial / Process
Chillers
Other
11
Commercial
Refrigeration,
54%
Household
R&F, 33%
Our sales mix covers most applications and regions
Revenue by Application (2008)
Specialty AC,
13%
Revenue by Region (2008)
Tecumseh is the only major manufacturer to offer all three hermetic
compressor technologies: reciprocating, rotary and scroll
12
North
America
South
America
Europe &
Africa
India, ME
and Asia
China
Commercial
Refrigeration
Grow
Defend
Grow
Grow
Enter
Specialty AC
Enter
Grow
Enter
Grow
Maintain
Refrigerators
and Freezers
Maintain
Defend
Maintain
Grow
TBD
We clarified market strategies by region and
application
Legend:
Enter = Develop meaningful market presence
Grow = Expand current market share
Defend = Protect our current #1 or #2 position
Maintain = Limited investment, fulfill profitable orders
(Heat pump focus)
= Highly attractive, strong opportunities
= Moderately attractive
= Less attractive
(Retrofit / Distr.)
13
TH
(TH / AZ)
R&F, Com’l
Cost savings
Family rationalization (eliminate
redundancy from decentralized
operating model)
Performance improvement (sound,
efficiency)
TS
R&F
New AE
(AE / TW / TP)
R&F, Com’l
New AK
(AK / TY)
Com’l
AJ
Com’l
New AW
(AW / AH / AV)
Com’l, AC
AG
Com’l
RG / HG
AC
New families
Expand offering (refrigerants,
cooling capacity)
RK / HK
AC, Com’l
RV
AC, Com’l
RN
AC
VS (Scroll)
Com’l
Build out full range offering
MX (Var. Speed)
Com’l
Expand Masterflux ® offering
Cond. Units
Com’l
Expand Silensys ® and Celseon ®
AZ
TH
TS
AE
TW
TP
AK
TY
AJ
AW
AH
AV
AG
RG / HG
RK / HK
MX
Cond. Units
We defined a clear product vision and globally
branded product platforms
Historical
Improved Offering and Development Vision
14
Our Best Cost Country Visionwill help us achieve
world class manufacturing
North America
Europe
Latin America
Asia
TH
TS
New AE
New AK
TH
New AK
New AE
New AW
AG
Best Cost Country Vision
Manufacturing will continue shifting toward
Best Cost Country locations
All regions maintain late stage
customization (LSC)
Balance customer responsiveness, cost
and inventory
Canada
USA
Mexico
Brazil
France
E. Europe
Late stage customization (LSC)
Condensing Units (CU’s)
Late stage customization (LSC)
Condensing Units (CU’s)
India
China
RK / HK
RV
RN
VS
LSC & CU’s
RG / HG
MX
LSC & CU’s
15
The New Tecumseh … 2009 and Beyond
One Company – all regions sell the entire
Tecumseh brand to all customers within their
region
Best Cost Country Footprint – products are
manufactured to world class standards in Best
Cost locations
Worldwide Product and Services – complete
technology offerings to serve current and future
customer needs across all market applications
Worldwide Supply Chain Strategy –
standardizing product platforms
Standardized Processes and Systems –
Tecumseh Production System, global product
development process, integrated sales and
marketing process, etc.
Transformation – business processes and culture
Tecumseh 2007 and Prior
Four regional, independent and
fully vertically integrated
compressor companies
Regional sales organizations
focused primarily on selling what
was designed and manufactured
within their region
Regional product development
organizations resulted in regional
product variants, making global
sourcing impossible
Each regional company had
independent and incompatible data
systems
16
Financial expectations
Projections and assumptions
Risk management
17
Projections
We expect good profitability as volume recovers
Key Assumptions
Volume recovers gradually
from recession, reaching
13.7 MM (~’08 level) by 2012
Dollar weakens slightly
Brazil Real strengthens to
1.90 / USD by 2010
Indian Rupee strengthens to
45 / USD by 2010
Euro maintains strength at
$1.39 / EUR by 2010
BCC implementation finishes
in 2011; then 2012
represents future steady
state*
Product cost improvements
sufficient to maintain share at
current gross margin
No inflation (pricing and
costs flat) and no mix shift
from 1Q’09
Inventory reduction through
2009, then constant days
W/C during 2010-2012
SG&A
Restructuring
EBITDAR
Op. Inc. (EBIT)
Ending
Cash:
$111 MM
102
106
107
141
-7%
-15%
0%
2%
5%
2%
-5%
7%
8%
10%
We will emphasize profitability improvement over top-line growth
Revenue and Profitability
* These figures are based on working hypotheses, and express a potential outcome of the Company’s possible initiatives. Once and if each initiative is
established, implementation will be executed in full compliance with the laws of the relevant countries of operation.
18
2010-2012
Profitability will be driven by cost reduction, return
of volume and BCC implementation
2009
Strategic Imperatives
Fixed cost reduction
SG&A reduction*
BCC implementation
Strategic Imperatives
Regain volume
BCC implementation
* Impact of SG&A reductions is partly masked in 2009 due
to expenses outside ordinary course of business
Operating Income Evolution
19
We expect to use cash this year, but to be in a
stronger cash position by 2012
Cash Position Evolution
2010-2012
2009
Working capital
growth with volume
recovery
Aggressive
inventory reduction
and working capital
decline with volume
Excludes discontinued operations
20
Currency and volume fluctuations (among other
factors) may significantly impact results
Sensitivity Analysis
Currency Sensitivity
Weak
Expected
Strong
BRL
1.55
1.90
2.50
INR
35
45
60
EUR
$1.60
$1.39
$1.10
US Dollar (2010-2012)
Sensitivity Assumptions
Operating
Income
Strong Dollar
Expected
Weak Dollar
Revenue
Expected
Weak Dollar
-7%
-15%
0%
2%
5%
2%
-2%
-1%
6%
2%
10%
Volume Sensitivity
Rapid
Recovery
Expected
Prolonged Recession
Revenue
Expected
Rapid
Recovery
Operating
Income
Prolonged
Recession
Expected
Rapid
Recovery
Vol. (MM)
10.6
13.7
16.8
Volume in 2012
Sensitivity Assumptions
-7%
-17%
0%
2%
5%
3%
-4%
-4%
6%
-1%
10%
-15%
-13%
21
Risks and mitigating actions
Potential Risks
Mitigating Actions
Economic crisis lingers; delayed
return to pre-recession volumes
Careful monitoring and evaluation of each project associated with BCC
strategy to ensure appropriate cash returns and preservation of capital. Stay
alert for signs of prolonged recession and cut overheads further if warranted
New trade restrictions -
governments seek policy
solutions to economic crisis
Maintaining manufacturing operation capability in all global regions helps to
offset potential trade risk by ensuring that local content can be added to our
products in every region
Currency shifts
Utilizing two Best Cost Countries – Brazil and India – we have created the
potential for a natural hedge and can shift volumes between sources if
currencies move in unfavorable directions
Competitor reactions
Competitors are executing similar strategic shifts in production – Embraco
scaling back Brazil production, Danfoss rationalizing capacity in Western
Europe and shifting to Eastern Europe and China. Tecumseh sales strategy
must be careful to maintain existing share levels while pursuing new share
opportunities
Reacting to regional customer
service demands
Maintain late stage customization capability within each region;
Comprehensive global supply chain strategy
Startup difficulty
Maintaining current production facilities until new lines are operational; moves
that require only scheduling are in progress; addressing supply-base
development requirements for outsourcing
Changes in corporate
governance
Provide adequate information to shareholders to highlight the important
elements of the strategy
Product innovation requirements
Stay abreast of market trends and capitalize on potential changes in market
requirements (e.g., political, green initiatives)
22
Company Overview
23
Overview
FOUNDED .. 1934 in Tecumseh, Michigan
HEADQUARTERS .. Completed move of global HQ to Ann Arbor, Michigan during 2H’08
EXCHANGE LISTING .. TECUA (Class A non-voting shares), TECUB (Class B voting shares)
on NASDAQ
CORE COMPETENCY .. Independent, global manufacturer of hermetic compressors,
condensing units and systems for use in residential and commercial refrigeration and air
conditioning applications. The company’s current and future product portfolio includes a
complete line of reciprocating, rotary and scroll compressors ranging in capacity from 1/15th to
15 horsepower. Products are currently manufactured in four continents and are sold globally
through a network of sales professionals, authorized wholesalers and licensed distributors.
ADDRESSABLE END MARKET .. Four primary applications:
Commercial refrigeration applications and aftermarket distribution
Household refrigerators and freezers
Residential and light commercial non-ducted air conditioning systems (room AC, PTAC /
PTHP, wall hung units)
Specialty applications (electronics and telecommunications cooling, transport AC and
refrigeration)
24
Top customers
Commercial Refrigeration
and Distribution
Household Refrigerator
and Freezer
Specialty Air
Conditioning
Carrier
Whirlpool
Al Zamil
True Manufacturing
Electrolux
National Factory for AC
United Refrigeration
Bosch Siemens
Johnstone Supply
Mabe
Metalfrio
Esmaltec
Comments:
Customers in bold are our top 5 (comprising approximately 20% of sales)
Top customer is approximately 8% of sales
After top 5, no customer is greater than 3% of sales
Approximately 1,200 customers
5-star energy rated in most R&F markets
25
Top competitors
Region
Commercial
Refrigeration
Household
Refrigerator
and Freezer
Specialty Air
Conditioning
NORTH AMERICA
Copeland Corp. (sub of Emerson Electric, NYSE: EMR)
Embraco, S.A. (sub of Whirlpool– NYSE: WHR)
Danfoss
Cubigel (spin-off from ACC)
LATIN AMERICA
Embraco, S.A.
Emerson Climate Tech. (Emerson Electric)
EUROPE
Cubigel (spin-off from ACC)
Danfoss
Emerson Climate Technologies
Embraco, S.A.
ACC Group
EAST ASIA / Middle East
Emerson Climate Technologies
Carrier Aircon Ltd. (sub of United Tech. NYSE: UTX)
Godrej
Videocon
26
Important Proxy Information:
Tecumseh Products Company has filed a definitive proxy statement/prospectus and other
relevant documents concerning the annual meeting with the United States Securities and
Exchange Commission (“SEC”) on July 10, 2009. Before soliciting proxies, the Company will
provide shareholders with the definitive proxy statement/prospectus. The Company advises
shareholders to read the definitive proxy statement/prospectus because it contains important
information about the company and certain proposals to be presented to a vote of shareholders
at its 2009 annual meeting. Shareholders may obtain free copies of the definitive proxy
statement/prospectus and other documents the company files with the SEC at the SEC’s website
at www.sec.gov. They may also access a copy of the company’s definitive proxy
statement/prospectus by accessing www.tecumseh.com. In addition, shareholders may obtain a
free copy of the definitive proxy statement by contacting Georgeson Inc. toll free at (866) 203-
1198 (banks and brokers call (212) 440-9800).
The company, its directors, some of its executive officers and certain other of its employees are
participants in the solicitation of proxies in respect of the matters to be considered at the annual
meeting. Information about the participants is set forth in the definitive proxy
statement/prospectus. Information about the participants’ direct or indirect interests in the matters
to be considered at the annual meeting is also contained in the proxy statement/prospectus
referred to above.