11-0810 Credit Suisse Conference

8/2/2019 11-0810 Credit Suisse Conference

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August 10, 2011

Credit Suisse Industrials Conference


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Key ThoughtsKey Thoughts

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Stronger sales and operating margins expected for 2H of 2011 vs. 1H 2011

Increased productivity and normalized production schedules

Improved price increase realization

Component shortages improving

Backlog and orders remain solid

Restructuring and cost reduction activity in Cranes

Approximately $70M anticipated in annualized savings

~$30-35M in savings being realized in 2011, most in second half

Working capital improvements expected

Generate free cash flow from working capital conversion in 2H 2011


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4

Product LinesProduct Lines

Aerial WorkPlatforms

Boom Lifts Utility ProductsScissor Lifts Telehandlers

MaterialsProcessing

Crushing Screening & Feeders Trommels, Recycling & Washing

Cranes

All Terrain Crawlers Port EquipmentTowers

Construction

Compact Construction Off-Highway Trucks Material Handling

Rough Terrain

4

Light Towers

Roadbuilding(Asphalt / Concrete Plants, Mixer Trucks)


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OverviewOverview

Diversified global manufacturer of capital goods machinery used in a broad rangeof industries and applications

Over 75% of sales generated in markets where Terex is a market leader

Expect to close in August, acquisition of 82% of Demag Cranes AG

5

NorthAmerica

35%

WesternEurope

26%

Asia

19%

LATAM

8%

Other

12%

LTMQ22011SalesbyGeography

AWP

29%Construction

25%

Cranes

34%MaterialsProcessing

12%

LTMQ22011SalesbySegment


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Terex Aerial Work PlatformsTerex Aerial Work Platforms

Predominantly large rental companiesreplacing fleets

Price increases effective with Q3 deliveries

All product categories experienced healthysales increases

Note: In Q2 FY10 there was a pre-tax provision of approximately $7 Mfor expected historical foreign duty and related obligations forcertain products.

66

NorthAmerica,65% Western

Europe,13%

Asia,9%

LATAM,10%Other,3%

AWP

($ in Millions)

Q2

2011

Q1

2011

Q2

2010

Net Sales

% Change vs. Q2 2011

484 377

28%

232

109%

Income (Loss) from Operations

Operating Margin

28

6%

6

2%

(2)

(1%)

Backlog


448 446

1%

189

137%

Net Sales: $1.6B $ 2.4B $2.6B $2.4B $0.8B $1.1B

Net SalesLTM Q2 2011

Strength in N. America and W. EU stabilized


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Terex ConstructionTerex Construction

Solid demand for material handlers, backhoe loadersand off-highway trucks

Strong performance in Russia, Latin America andNorthern Europe

Roadbuilding underperformed mainly due togovernment financing constraints

Restructuring and other charges: Q2 FY11: $2M,Q1 FY11: $0M and Q2 FY10: $6M

77

NorthAmerica

30%WesternEurope

36%

Asia

12%LATAM

9%

Other

13%

Construction

($ in Millions)

Q2

2011

Q1

2011

Q2

2010

Net Sales


361 343

5%

279

29%


Operating Margin

(7)

(2%)

(4)

(1%)

(17)

(6%)

Backlog


301 240

25%

118

155%


Strong performance in Russia, LATAM and N. EU

Net Sales: $1.4 B $1.7B $1.9B $1.8B $0.8B $1.0B


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Terex CranesTerex Cranes

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North American rough terrain and truck cranes orderprospects continue to improve

Some improvement in Port Equipment driven bystraddle carrier demand

Shifting delivery dates and order cancellationsdisrupted German cranes business in 1st half; Clarityimproving for 2nd half deliveries

Restructuring and other charges: Q2 FY11: $36M,Q1 FY11: $0M and Q2 FY10: $2M

8

NorthAmerica

15%

WesternEurope

30%

Asia

30%LATAM

7%

Other

18%

Cranes

($ in Millions)

Q2

2011

Q1

2011

Q2

2010

Net Sales


464 398

17%

449

3%


Operating Margin

(34)

(7%)

(23)

(6%)

17

(4%)

Backlog


918 1,004

(9%)

691

33%


North America starting to see recovery

Net Sales: $1.2B $1.8B $2.3B $2.8B $1.8B $1.7B


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Terex Materials ProcessingTerex Materials Processing

Strong demand for larger capacity machinesworldwide and reduced dealer inventories

Seasonal fluctuations in order activity Demand for new equipment being driven by:

Construction market recovery

Mining demand

New product offerings

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NorthAmerica,28%

WesternEurope

24%

Asia,26%LATAM,7% Other,15%Materials Processing

($ in Millions)

Q2

2011

Q1

2011

Q2

2010

Net Sales


189 152

24%

136

39%


Operating Margin

21

11%

12

8%

9

7%

Backlog


94 102

(8%)

122

(23%)

Strong global demand, especially in developing markets


Net Sales: $0.6B $0.8B $1.0B $1.0B $0.4B $0.5B


10/2010

Backlog TrendBacklog Trend

Backlog stabilization gives positive indication of future ramp of sales

Q2 2011 backlog stabilized to 2006 levels($M)


11/2011

Net Working CapitalNet Working Capital

Inventory = our opportunity to improve cash flow1111

0%

5%

10%

15%

20%

25%

30%

35%

40%

0

250

500

750

1,000

1,250

1,500

1,750

2005 2006 2007 2008 2009 2010 2011F

NWCas%ofNetSalesNWC($Millions)

AWP Construction Cranes Materials

Processing NWC

as

%

of

Net

Sales


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2011 Outlook for Terex2011 Outlook for Terex

Note: All figures exclude the pending Demag acquisition, future acquisitions, restructuring and unusual items

* 1H 2011 figures in the table above are adjusted to reflect non-GAAP items. A reconciliation of non-GAAP operating income and EPS tocomparable GAAP operating loss and EPS is available in the appendix to this presentation

1H 2011 2H 2011Outlook

Current 2011Outlook

Net Sales $ 2.7 billion $ 2.7 2.9 billion $ 5.4 5.6 billion

Income fromOperations

$ 39 million* $ 140 170 million $ 179 209 million

EPS $ (0.07)* $ 0.47 0.67 $ 0.40 0.60

AWP and MP expected to deliver results in 2nd half 2011 consistent with previous outlook

AWP pricing actions and improved productivity are key

Cranes cost reductions, crawler and port equipment deliveries anticipated to improve 2nd half 2011 profitability

Construction demand improving, with supply risks moderating and full effect of pricing actions

Tax rate expected to be approximately 40% in second half

Share count of approximately 116 million based on a $26.80 share price

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600

400

200

0

200

400

600

800

1,000

1,200

1,400

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011F 2012G 2013G 2014G 2015G

OpInc(Loss)($Millions)NetSales($Millions)

NetSales OpInc(Loss)

Financial RoadmapFinancial Roadmap

Targeting over $8 Billion in net sales and 12% operating margin by 2013.and $9.8 Billion in net sales and 13% operating margin by 2015

24%

CAG

R

12%

CAGR

22%

CAG

R

10%

CAGR

1313Note: All figures exclude the pending Demag acquisition, future acquisitions, restructuring and unusual items


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Medium and Longer Term GoalsMedium and Longer Term Goals

SEGMENT RESULT Peak (LTM) 2010 2013 Goal* 2015 Goal*

AERIAL WORKPLATFORMS

Sales $ 2,700 M (Q2 FY08) $ 1,070 M $ 2,500 M $ 3,000 M

OP

Margin

17.0 % 0.3 % 14 % 15%

CRANES

Sales $ 2,889 M (Q4 FY08) $ 1,781 M $ 3,000 M $ 3,500 M

OP

Margin 14.0 % 2 % 12 % 13%

CONSTRUCTION

Sales $ 2,000 M (Q4 FY07) $ 1,088 M $ 1,600 M $ 2,000 M

OPMargin

5.0 % - 5 % 8 % 10%

MATERIALS

PROCESSING

Sales $ 1,107 M (Q3 FY08) $ 533 M $ 1,100 M $ 1,300 M

OPMargin

13.7 % 5 % 13 % 14%

* Operating margins reported using new corporate allocation method14

Note: All figures exclude the pending Demag acquisition, future acquisitions, restructuring and unusual items


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Demag AG Progress SummaryDemag AG Progress Summary

Approximately 82% of Demag Cranes AG shares outstanding

have been tendered or already owned by Terex

Received clearance from US and EU antitrust authorities

Syndication of new term debt completed

Plan to close later this month

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Demag Cranes AG recent Q3 resultsDemag Cranes AG recent Q3 results

Strong performance overall

Most key performance metrics were up, both on a year-over-yearand sequential quarterly basis

Revenue increased to EUR 260M (+26% from Q3 2010)

Operating EBIT increased approximately 87% to EUR 19M over the same period

Order book increased to EUR 395M (+16% from Q3 2010)

All business segments had increased orders in the quarter

Port equipment showing the strongest growth (+25%)

Demag Cranes AG management raised guidance for revenue and operatingEBIT for current and future periods

Management anticipates continued economic growth especially in emerging markets of

Brazil, India and China*

16*excluding possible effects from macroeconomic uncertainties


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DemagDemags Products and Servicess Products and Services

Standard and Process Cranes

Crane Construction Kit

Rope and Chain Hoists

Drives

LTM Sales $1,481mLTM EBITDA(a) $131m (Margin: 8.9%) Q3 2011 Employees 6,001

LTM EBIT(a) $100m (Margin: 6.8%)

Port TechnologyIndustrial Cranes Services

Maintenance

Modernization

Sale of spare parts

Full-service contracts

Mobile Harbor Cranes

Automatic Guided Vehicles andStacker Cranes

Software solutions

Sales: $658m

EBITDA: $26m (Margin: 4.0%)

Sales: $360m


Sales: $463m


Source: Company informationNote: Based on the current $US/ rate of 1.429.(a) Adjusted to reflect the effects of operating adjustments; includes Holding costs of $7.9m.

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18/2018

DiversifiedDiversifiedProducts & GeographyProducts & Geography

Source: Company information (a)Based on the /US$ rate of 1.429. (b) Comprises Terex and Demag Port Equipment businesses.

Cranes29%


29%

Construction25%

MaterialsProcessing

12%

Port Equipment5%

IndustrialCranes

44%Services

31%

$1,481m(a)

LTM Q3

PortTech.25%

$6,573mLTM

Cranes23%

Construction20%


22%

PortEquipment(b)

9%

IndustrialCranes

10%

MaterialsProcessing

9%

Services7%

$5,092mLTM Q2

Rest ofWorld40%

NorthAmerica

35%

Rest of

Europe18%

Germany7%

Rest ofWorld40%

Rest ofEurope

30%

Germany19%

North America11%

Rest ofWorld40%

Rest ofEurope

21%

NorthAmerica

29%

Germany10%


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SummarySummary

Making progress.still significant work in front of us

Delays / disruptions in supply are slowing or are mitigated

Productivity/utilization/pricing effect expected to more than offset input costs in 2nd halfof 2011

Complete, continue, and initiate new cost reduction activities

Generate free cash flow mainly from working capital improvement

Remain focused on the profitable growth goals previously established

Demag Cranes AG will give Terex strong position in port equipment and industrialcranes

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Appendix:Non-GAAP Financial Measures

$ in Millions (except EPS) Q1 2011 Q2 2011 1H 2011

Operating Profit /(Loss) As Reported $ (9) $ 7 $ (2)

Restructuring and Related ItemsCustomer Insolvency

$ 1$ 4

$ 36$ -

$ 37$ 4

Op Profit / (Loss) As Adjusted $ (4) $ 43 $ 39

EPS As Reported $ 0.04 $ 0.01 $ 0.05

Bucyrus Share Sale GainRestructuring and Related ItemsEarly Retirement of DebtCustomer InsolvencyDemag Cranes AG Acquisition Charges

$ (0.28)$ -$ 0.04$ 0.03$ -

$ (0.22)$ 0.29$ -$ -$ 0.02

$ (0.50)$ 0.29$ 0.04$ 0.03$ 0.02

EPS As Adjusted ($ 0.17) $ 0.10 ($ 0.07)

Note: The table above presents reconciliations of non-GAAP operating income and EPS to comparable GAAP operating loss and EPS

11-0810 Credit Suisse Conference

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