2. Forward-Looking Statements
& Non-GAAP Measures
2
This presentation contains forward-looking information regarding future events or the Company’s future financial performance based on
the current expectations of Terex Corporation. In addition, when included in this presentation, the words “may,” “expects,” “intends,”
“anticipates,” “plans,” “projects,” “estimates” and the negatives thereof and analogous or similar expressions are intended to identify
forward-looking statements. However, the absence of these words does not mean that the statement is not forward-looking. The
Company has based these forward-looking statements on current expectations and projections about future events. These statements
are not guarantees of future performance.
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 cyclical and weak general economic conditions
affect the sales of our products and financial results; the effect of the announcement and pendency of the merger on our customers,
employees, suppliers, vendors, distributors, dealers, retailers, operating results and business generally, and the diversion of
management’s time and attention while the proposed merger is pending; our ability to successfully integrate acquired businesses; our
ability to access the capital markets to raise funds and provide liquidity; our business is sensitive to government spending; our business is
highly competitive and is affected by our cost structure, pricing, product initiatives and other actions taken by competitors; impairment of
the carrying value of goodwill and other indefinite-lived intangible assets; a material disruption to one of our significant facilities; our
retention of key management personnel; the financial condition of suppliers and customers, and their continued access to capital; our
providing financing and credit support for some of our customers; we may experience losses in excess of recorded reserves; our ability to
obtain parts and components from suppliers on a timely basis at competitive prices; the need to comply with restrictive covenants
contained in our debt agreements; our ability to generate sufficient cash flow to service our debt obligations and operate our business; our
business is global and subject to changes in exchange rates between currencies, regional economic conditions and trade restrictions; our
operations are subject to a number of potential risks that arise from operating a multinational corporation, including compliance with
changing regulatory environments, the Foreign Corrupt Practices Act and other similar laws, and political instability; possible work
stoppages and other labor matters; compliance with changing laws and regulations, particularly environmental and tax laws and
regulations; litigation, product liability claims, intellectual property claims, class action lawsuits and other liabilities; our ability to comply
with an injunction and related obligations imposed by the United States Securities and Exchange Commission (“SEC”); disruption or
breach in our information technology systems; and other factors, risks and uncertainties that are more specifically set forth in our public
filings with the SEC.
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 appendix at the end of this presentation as well as the Terex third
quarter 2015 earnings release on the Investor Relations section of our website www.terex.com for a description and/or reconciliation of
these measures.
3. 3
Continuing to Deliver Solid Results in a
Challenging Environment
Notable year-on-year improvements in the quarter:
• AWP and MP continued to improve profitability, delivering strong incremental
margins in the quarter
• Operating margin up 70 basis points, on an adjusted basis
• Bookings up in AWP, Cranes, MHPS and MP
Shifting global market conditions:
• US market remains flat, negatively impacted by oil and gas investment
• European markets mixed
• China growth slowing, Brazil falling, Australia flat to down
• Pricing remains a headwind, but benefiting from material cost reductions
4. 4
Net Sales Bridge Q3-14 to Q3-15
USD Millions
800
1,000
1,200
1,400
1,600
1,800
1,810
(25)
(27)
(8) (102)
3 (10)
1,641
Q3 Net Sales
6. In Summary
6
• Solid performance in a challenging environment
• Staying focused on internal improvement initiatives and taking
steps to align business structures with markets
• Full year outlook at or near the low end of the previously
announced earnings guidance
• Merger with Konecranes progressing, targeting a first-half
2016 close
9. Q3 Continuing Operations Results
9
USD Millions, except Earnings per Share
*Please see reconciliation to US GAAP on pages 20 and 24
Q3 2015
As Reported
Q3 2015
As Adjusted*
Q3 2014
As Reported
Q3 2014
As Adjusted*
Net Sales $1,641.3 $1,641.3 $1,809.8 $1,809.8
% Change Q3 2014 (9.3%) (9.3%)
Gross Profit 336.6 342.8 357.3 367.4
Gross Margin 20.5% 20.9% 19.7% 20.3%
SG&A (224.7) (216.0) (240.5) (239.9)
% Net Sales (13.7%) (13.2%) (13.3%) (13.3%)
Income From Operations 111.9 126.8 116.8 127.5
Operating Margin 6.8% 7.7% 6.5% 7.0%
Other Income (Expense) - Net (35.0) (26.4) (30.4) (27.8)
Effective Tax Rate 40.1% 35.6% 32.1% 32.0%
Earnings per Share $0.41 $0.58 $0.51 $0.59
EBITDA $137.4 $152.3 $153.2 $163.9
% Net Sales 8.4% 9.3% 8.5% 9.1%
Net Working Capital $1,829.8 $1,876.1
As a % of annualized sales 27.9% 25.9%
ROIC 9.7% 9.8%
10. Q3 Liquidity Bridge
10
USD Millions
Free Cash Flow
$62 million
TFS Net Cash
Impact
($24) million
200
400
600
800
1,000
818
87
(85)
(25)
27
34 (7) (12) (8)
829
*
*Net cash provided by operating activities plus increase in TFS assets, plus decrease in cash for securitization settlement
11. North America
Western Europe
Asia/ Oceania
Other
LATAM
Sales by Geography 2015 vs 2014
11
(2)%
(20)%
(21)%
(17)%
Q3
FX-Adj.
Q3
Q3
Q3
Q3
(1)%
FX-Adj.
FX-Adj.
FX-Adj.
FX-Adj.
3%
12%
5%
30%
12%
10%5%
43%
2015 Q3
Western Europe
Asia/ Oceania
Other
LATAM
North America
33%
13%
8%
6%
40%
2014 Q3
13%
(2)%
31%
(10)%
(3)%
12. Aerial Work Platforms
12
USD Millions
304 637 571 517 342 451 799 603 382 936 500 374 439
70%
177%
114%
87%
65%
97%
139%
85%
65%
207%
100%
56%
80%
0%
50%
100%
150%
200%
250%
0
200
400
600
800
1,000
Q3
'12
Q4
'12
Q1
'13
Q2
'13
Q3
'13
Q4
'13
Q1
'14
Q2
'14
Q3
'14
Q4
'14
Q1
'15
Q2
'15
Q3
'15
Net Bookings Book-to-Bill Ratio
312
214
298
150
200
250
300
350
2013 2014 2015
Q3 Backlog (<12 mo.)
• Solid backlog
and book-to-bill
• Some softening
in NA, pricing
and currency
are headwinds
• Benefits from
material cost
and productivity
13. Construction
13
• Dumpers and concrete products
backlog up year on year
• Terex® Fuchs material handlers
flat to prior year
• Compact
equipment
businesses in
India and
Germany
remain weak
USD Millions
164 237 184 194 139 224 223 183 128 191 198 122 109
82%
130%
95%
93%
82%
127% 126%
89%
69%
103%
149%
75%
71%
0%
20%
40%
60%
80%
100%
120%
140%
160%
0
50
100
150
200
250
Q3
'12
Q4
'12
Q1
'13
Q2
'13
Q3
'13
Q4
'13
Q1
'14
Q2
'14
Q3
'14
Q4
'14
Q1
'15
Q2
'15
Q3
'15
Net Bookings Book-to-Bill Ratio
95
123 119
25
9
50
100
150
2013 2014 2015
Q3 Backlog (<12 mo.)
ASV
120
132
14. Cranes
14
• Encouraging booking
activity in tower cranes
and European mobile
cranes
• Utilities business
steady, but some signs
of softening
• Global crane market
remains challenging
USD Millions
*
357 473 458 460 363 512 533 499 286 457 375 433 303
70%
93% 98%
89%
81%
108%
138%
100%
69%
97% 98% 95%
76%
0%
20%
40%
60%
80%
100%
120%
140%
160%
0
100
200
300
400
500
600
Q3
'12
Q4
'12
Q1
'13
Q2
'13
Q3
'13
Q4
'13
Q1
'14
Q2
'14
Q3
'14
Q4
'14
Q1
'15
Q2
'15
Q3
'15
Net Bookings Book-to-Bill Ratio
485
552
427
200
300
400
500
600
2013 2014 2015
Q3 Backlog (<12 mo.)
15. 665 631
532
162
120
44
200
300
400
500
600
700
800
900
2013 2014 2015
Q3 Backlog (<12 mo.)
Port
Automation
827
751
576
Material Handling & Port Solutions
USD Millions
396 374 496 393 510 375 398 418 303 354 309 395 335
90% 90%
148%
107%
112%
71%
109%
98%
66% 70%
97%
109%
93%
0%
20%
40%
60%
80%
100%
120%
140%
160%
0
100
200
300
400
500
600
Q3
'12
Q4
'12
Q1
'13
Q2
'13
Q3
'13
Q4
'13
Q1
'14
Q2
'14
Q3
'14
Q4
'14
Q1
'15
Q2
'15
Q3
'15
Net Bookings Book-to-Bill Ratio
• Material Handling
backlog steady on
FX neutral basis
• Sluggish Port
Equipment market
with some
momentum in mobile
harbor cranes
15
