2. Forward Looking Statements &
Non-GAAP Measures
The following presentation contains forward-looking information based on the current expectations of Terex
Corporation. Because forward-looking statements involve risks and uncertainties, actual results could differ
materially. Such risks and uncertainties, many of which are beyond the control of Terex, include among others: our
business is highly cyclical and weak general economic conditions may affect the sales of its products and its
financial results; our business is sensitive to fluctuations in interest rates and government spending; the ability to
successfully integrate acquired businesses; the retention of key management personnel; our businesses are very
competitive and may be affected by pricing, product initiatives and other actions taken by competitors; the effects of
changes in laws and regulations; our business is international in nature and is subject to changes in exchange rates
between currencies, as well as international politics; our continued access to capital and ability to obtain parts and
components from suppliers on a timely basis at competitive prices; the financial condition of suppliers and
customers, and their continued access to capital; our ability to timely manufacture and deliver products to
customers; possible work stoppages and other labor matters; our debt outstanding and the need to comply with
restrictive covenants contained in our debt agreements; our ability to maintain adequate disclosure controls and
procedures, maintain adequate internal controls over financial reporting and file its periodic reports with the SEC on
a timely basis; the previously announced investigations by the SEC and the Department of Justice; compliance with
applicable environmental laws and regulations; product liability claims and other liabilities arising out of our
business; and other factors, risks, uncertainties more specifically set forth in our public filings with the SEC. Actual
events or the actual future results of Terex may differ materially from any forward looking statement due to those
and other risks, uncertainties and significant factors. The forward-looking statements speak only as of the date of
this presentation. Terex expressly disclaims any obligation or undertaking to release publicly any updates or
revisions to any forward-looking statement included in this presentation to reflect any changes in expectations with
regard thereto or any changes in events, conditions, or circumstances on which any such statement is based.
Non-GAAP Measures: Terex from time to time refers to various non-GAAP (generally accepted accounting
principles) financial measures in this presentation. Terex believes that this information is useful to understanding
its operating results and the ongoing performance of its underlying businesses without the impact of special items.
See the Investors section of our website www.terex.com for a complete reconciliation.
2
3. Terex Is…
• A diversified portfolio of equipment businesses
• Positioned for continuing long - term trends
• A leader in our industry
• Leveraging the Power of One Company
AERIAL WORK MATERIALS PROC.
CRANES
PLATFORMS AND MINING
ROADBUILDING AND
CONSTRUCTION
UTILITIES
3
4. Terex Is Diversified
Diversified Portfolio of Equipment Businesses
2008 Sales by Geography
2008 Sales by Segment
RBU
7%
Developing
AWP
Markets
21% W. Europe
Construction 23% 32%
19%
Japan / ANZ
10%
USA /
Cranes
MP&M
Canada
29%
24%
35%
Balanced by business; Balanced geographically
4
5. Positioned for Long Term Trends
2009 GDP Forecasts: October 2008 versus Current Period
%
2009 Global GDP outlook has worsened but remains
positive for developing markets
5
*Source: The Economist (economic intelligence unit)
6. Terex Is A Leader In Our Industry
$3 1.8
$2 2 .0
$9 .9
$9 .1
$8 .1 $7.2
$4 .8
$4 .9 $4 .5 $4 .5 $4 .4 $3 .6
Deere (8) CNH Global (9) Oshkosh (11)
Sandvik (7) JCB (6) Doosan (10)
Komatsu (2) Terex (3)
Caterpillar (1) Hitachi (4) Liebherr (6) Volvo (5)
Based on last twelve months of available Construction Equipment Sales ($’s in Billions)
(1) Represents Machinery sales for the last twelve months ended December 31, 2008; excludes Engine and Financial Product sales
(2) Represents Komatsu’s Construction, Mining & Utility Equipment segment ended December 31, 2008 converted at an exchange rate of JPY/USD of 90.727
(3) Last twelve months ended December 31, 2008
(4) Represents the Construction Machinery segment ended September 30, 2008 converted at an exchange rate of USD/JPY 106.349
(5) Represents Volvo’s Construction Equipment segment as of December 31, 2008 converted at an exchange rate of USD/SEK 7.8247
(6) Estimated, as these are privately owned companies:
JCB: 2007 sales of GBP 2.25 billion converted at December 31, 2007 GBP/USD rate of 1.9870
Liebherr: 2007 Cranes/Mining/Construction sales of EUR 5.5 billion converted at December 31, 2007 EUR/USD rate of 1.4598
(7) Represents Mining & Construction sales through December 31, 2008 converted at an exchange rate of SEK/USD 7.8247
(8) Represents Deere’s Construction and Forestry segment last twelve months ended October 31, 2008
(9) Represents CNH Global’s Construction Equipment Segment last twelve months ended December 31, 2008
(10) Represents 2007 Construction Equipment sales of $1.5 billion converted at an exchange rate at December 31, 2007 of KRW/USD 936.07 plus estimated 2007 bobcat sales of $2.9 billion
(11) Represents Access & Commercial (both concrete & refuse trucks) for the last twelve months ended December 31, 2008
6
7. Leveraging The Power
Of One Company
• Our framework to
build a stronger
Terex
• Process
improvements for
long term benefits
7
8. Near Term Outlook Challenging
• Sales trends continue to be impacted by current market
conditions with 2009 net sales forecasted to be down 30-
35%, including currency translation of 13%
• AWP / Utilities down 35% - 45%
• Construction / Roadbuilding down 25% - 35%
• Cranes down 25 - 35%
• Materials Processing & Mining down 25% - 35%
• Mining and Cranes not immune to credit crisis but some
stability at the high end
8
9. Aerial Work Platforms
$B
$2.5 30%
25%
Current Environment
$2.0
Current Environment
20%
•• Strong global market share position (top 2)
$1.5
Strong global market share position (top 2)
15%
•• N. America downturn and accelerated
$1.0
N. America downturn and accelerated
10%
downturn in W. Europe back half of 2008
downturn in W. Europe back half of 2008
$0.5 5%
•• Long-term growth expected in developing
Long-term growth expected in developing
$0.0 0%
markets
2004 2005 2006 2007 2008
markets
Terex Response
Sales Gross Margin Op. Margin
Terex Response
•• Production and head-count reductions
Sales by Product Sales by Geography
Production and head-count reductions
10%
10%
•• Temporary factory shutdowns
5%
Temporary factory shutdowns
11%
28% •• Rescheduling/delaying of raw material
21%
Rescheduling/delaying of raw material
deliveries
deliveries
•• Increased emphasis on refurbishment
Increased emphasis on refurbishment
57%
58%
•• Continued TBS / /improvement initiatives
Continued TBS improvement initiatives
2008
2008
Developing Markets
Portable & Other
Japan / ANZ
Telehandlers
W. Europe
Scissors
USA / Canada
Booms
9
10. Construction
$B
30%
Current Environment
$2.0
Current Environment
25%
•• Largest market potential but small market
20%
Largest market potential but small market
$1.5
15% position
position
10%
•• N. America downturn and accelerated
$1.0
N. America downturn and accelerated
5%
downturn in W. Europe back half of ’08
downturn in W. Europe back half of ’08
0%
$0.5
•• Operational improvements - -TBS,
-5%
Operational improvements TBS,
distribution, developing markets ––expected
$0.0 -10%
distribution, developing markets expected
2004 2005 2006 2007 2008*
to drive future profit growth
to drive future profit growth
Terex Response
Sales Gross Margin Op. Margin
Terex Response
* 2008 operating margin excludes goodwill impairment
•• Production & head-count reductions
Production & head-count reductions
Sales by Product Sales by Geography
•• Strong Dollar creates opportunity in N.
Strong Dollar creates opportunity in N.
24%
18%
America
America
1%
17%
•• Temporary factory shutdowns
Temporary factory shutdowns
•• Rescheduling/delaying of raw material
58%
36%
Rescheduling/delaying of raw material
deliveries
deliveries
29%
•• Facility consolidations
17%
Facility consolidations
•• Continued TBS / /improvement initiatives
2008 2008
Continued TBS improvement initiatives
Trucks Developing Markets
Material Handling Japan / ANZ
Heavy W. Europe
10
Compact USA / Canada
11. Cranes
$B
30%
$2.5
Current Environment
Current Environment
25%
$2.0
•• Strong global market position (top 3)
Strong global market position (top 3)
20%
$1.5 •• Infrastructure and energy projects
Infrastructure and energy projects
15%
driving strength of larger cranes
driving strength of larger cranes
$1.0 10%
(crawlers, ATC’s, larger RT’s)
(crawlers, ATC’s, larger RT’s)
$0.5 5%
•• Tower crane and smaller capacity
Tower crane and smaller capacity
0%
$0.0
cranes have been negatively impacted
cranes have been negatively impacted
2004 2005 2006 2007 2008
by credit crisis
by credit crisis
Sales Gross Margin Op. Margin
Terex Response
Terex Response
•• Production and head-count reductions
Sales by Product Sales by Geography Production and head-count reductions
•• Facility consolidation
13%
25%
Facility consolidation
22% 6%
•• Rescheduling/delaying of raw material
Rescheduling/delaying of raw material
8%
deliveries
deliveries
40%
•• Continued TBS / /improvement initiatives
Continued TBS improvement initiatives
57%
29%
2008
2008
Towers Developing Markets
Japan / ANZ
Crawlers
W. Europe
Other Mobile & Stackers
USA / Canada
ATC / RT 11
12. Materials Processing & Mining
$B
Materials Processing
Materials Processing
$2.5 30%
Current Environment
Current Environment
25%
$2.0
• • Leading global market position in mobile products
Leading global market position in mobile products
20%
• • Accelerated global downturn in back half of 2008
$1.5 Accelerated global downturn in back half of 2008
15%
• • Long-term growth expected in developing markets
Long-term growth expected in developing markets
$1.0
10% Terex Response
Terex Response
$0.5
• • Production and head-count reductions
5%
Production and head-count reductions
• • Temporary factory shutdowns
$0.0 0% Temporary factory shutdowns
2004 2005 2006 2007 2008
• • Rescheduling/delaying of raw material deliveries
Rescheduling/delaying of raw material deliveries
• • Continued TBS / /improvement initiatives
Sales Gross Margin Op. Margin
Continued TBS improvement initiatives
Mining
Mining
Sales by Product Sales by Geography
• • Strong global market position (top 3)
Strong global market position (top 3)
33%
40%
• • Significant commodities volatility
Significant commodities volatility
• • Some rescheduling / /cancellations of order backlog
Some rescheduling cancellations of order backlog
11% 26%
14%
Terex Response
Terex Response
15%
• • Reconfirming backlog and delivery schedules
Reconfirming backlog and delivery schedules
35%
26%
• • More stringent production scheduling
More stringent production scheduling
• • Increased emphasis on customer support for installed
2008 2008
Increased emphasis on customer support for installed
base (parts & service)
base (parts & service)
Developing Markets
Materials Processing
Japan / ANZ
Drills/ Other
• • Continued TBS / /improvement initiatives
Continued TBS improvement initiatives
W. Europe
Trucks
USA / Canada
Shovels 12
13. Terex Response To Environment
• Focus on customers
• Developing markets distribution development, large infrastructure
projects, localized service and support
• Increased utilization of Terex Financial Services
• Customer support / refurbishment / parts and service
• Internal cash generation
• Discipline on terms and conditions
• Raw material demand planning and scheduling vigilance
• Capital spending scrutiny
• Discretionary spending – wage freeze, benefit reductions, travel
curtailment and reduced trade show activity …
• Internal improvement initiatives continue
• Right-sizing business for anticipated demand levels – expect in
excess of 5,000 jobs reduced from June 2008 employment levels
13
14. Terex To Date:
Growth With Moderate Leverage
Net Debt $9.9
Sales $9.1
$7.6
($ in billions)
$6.2
$4.8
$3.9
$2.8
$2.0
$1.9 $1.8
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Net leverage of 1.0x at year end 2008 provides flexibility
• Net leverage ratio is defined as debt less cash and cash equivalents divided by last twelve months EBITDA
14
15. Terex Debt Profile
Major components of debt include:
• $700 million Revolver - July 2012
• $195 million Term Loan* - July 2013
• $300 million 7 3/8% Notes - January 2014
• $800 million 8.00% Notes - November 2017
Liquidity of $1,067 million at December 31, 2008, including:
• Cash of $484 million
• Revolver availability of $583 million
• Working capital reductions
Seeking waiver to amend fixed charge covenant related to credit facility
No near-term debt maturities
Adequate liquidity
* Term Loan balance as of Dec 31, 2008
15
16. Summary
• Diversified portfolio – geographic and product
• Leadership position in over 75% of revenue base
• Positioned for long-term trends
• Near term outlook challenging - aggressively responding to
changing market conditions
• Internal initiatives will enhance operating performance
• No near term debt maturities, adequate liquidity
16
