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.
2
3. Our Purpose
To improve the lives of people around the world
Our Mission
To delight construction, infrastructure, mining and
other customers with value added offerings that exceed their current and future
needs
To achieve our mission we must attract the best people by creating a Terex culture
that is safe, exciting, creative, fun and embraces continuous improvement
Our Vision
Customer – to be the most customer responsive company in
the industry as determined by the customer
Financial – to be the most profitable company in the industry as
measured by ROIC
Team Member – to be the best place to work in the industry as
determined by our team members
3
4. Strong and Diversified Sales Base
Profitability grows faster than net sales:
Net sales up 19% in FY 2007 and up 25% in Q2 2008 vs. PY
Income from operations up 36% in FY 2007 and up 30% in Q2 2008 vs. PY
Sales are geographically diverse with 70% of sales generated outside the US
Asia / Australia
Sales ($M)
Operating Profit (%) 14%
USA
10,081 12.0%
11,000
9,138
30%
7,648 10.0%
9,000
6,157 8.0%
7,000
4,799 6.0%
5,000
3,910 4.0%
Other Americas
2,817
3,000 8%
2.0%
Europe / Africa /
Middle East
0.0%
1,000
48%
2002 2003 2004 2005 2006 2007 LTM Q2
2008
12 year compounded annual growth
rate for Sales of 27%
4
5. Where We Are Today
Terex is the 3rd largest manufacturer of construction
equipment in the world
$30.4 Based on last twelve months of available Construction Equipment Sales ($’s in Billions)
$19.0
$10.1 $9.1 $8.7 $8.1
$5.2 $5.1 $4.9 $4.5 $4.4 $3.7
Caterpillar (1) Hitachi (3) Volvo Liebherr (7) CNH Global (8) Sandvik (10) Deere (5) JCB (7) Doosan (6)
(4)
Komatsu (2) Terex Oshkosh (9)
(1) Represents total sales before Power Products, Financing and Insurance Services sales for the 9 (6) Represents 2007 Construction equipment sales of $1.5 billion based on exchange rate at
months ended March 31, 2008 plus Building Construction Products, EAME Operations, Heavy December 31, 2007 of KRW/USD 936.07 plus estimated 2007 Bobcat sales of $2.9 billion
Construction & Mining and Infrastructure Development sales for the 3 months ended June 30, 2008. (7) Estimated, as these are privately owned companies:
(2) Represents Komatsu’s Construction and Mining Products segment as of March 31, 2008. JCB: 2007 sales of GBP 2.25 billion converted at Dec 31, 2007 GBP/USD rate of 1.9870
Exchange rate of 99.691 as of Mar 31, 2008 Liebherr: 2007 Cranes/Mining/Construction sales of EUR 5.5 billion converted at Dec 31, 2007
(3) Exchange rate used as of June 30, 2008 of USD/JPY 106.18 EUR/USD rate of 1.4598
(4) Represents Volvo’s Construction segment as of June 30, 2008. Rate of USD/SEK 6.0241 (8) Represents CNH Global’s Construction Equipment Segment as of June 30, 2008
(5) Represents Deere’s Construction and Forestry segment as of April 30, 2008 (9) Represents Access & Concrete Placement equipment sales for the 9 months ended June 30, 2008
plus Access & Commercial (both concrete & refuse trucks) for the 3 months ended Sep 30, 2007.
(10) Represents 2007 Mining & Construction sales converted at SEK/USD 6.46
5
6. Strong Market Presence
Approximately 75% of 2007 sales were generated in markets where Terex is
a major competitors and/or Terex has a significant market presence
Hydraulic Mining
Cranes
Aerial Work
Excavators
~$14 billion market
Platforms ~$2.6 billion market
Terex is one of three
~$ 6 billion market Terex is one of four
major global
Terex is one of two major global
competitors
major global competitors
competitors
Mobile Crushing &
Material Handlers
Utilities Screening equipment
~$1.4 billion market
~$1 billion market (USA)
Terex is one of four ~$3.5 billion market
Terex is one of two
major global Terex isA
one of three major
major competitors
competitors global competitors
A
* Market size approximations based on internal estimates and data from Yengst and Off Highway Research
6
7. Terex Product Diversity
The Terex strategy of product diversity carries
across the typical economic cycle with balance throughout
Early-Cycle
Late-Cycle
10% of Net Sales
34% of Net Sales
Compact Construction Equipment (6%)
Cranes (26%)
Telehandlers & Concrete Mixers (4%)
Light Construction (3%)
Utility Equipment (3%)
Roadbuilding (2%)
Mid-Cycle
33% of Net Sales
Aerial Work Platforms (21%)
Heavy Construction Equipment (12%)
Commodity driven based on Global Economics
Material Processing & Mining (23%)
Note: Percentages are based on 2007 sales
7
8. Goals for 2010
GOAL June 30, 2008 LTM* What we must accomplish
$12.0B in Sales $10.1B Implies 7.2% CAGR
12% Operating Margin 10.9% Execute on supply chain
management, pricing process
discipline & lean initiatives
15% W.C. to Sales 22.1% Optimize use of assets,
particularly inventory
“12 by 12 in ’10”
is our medium term stretch goal
* LTM = Last Twelve Months
8
9. Opportunities to Improve Margin
Ensure Terex is receiving appropriate value for its products
Pricing Offset rising commodity costs with commensurate pricing actions
Build a more sophisticated sales process through training and education
Coordinate supply efforts to leverage the scale of Terex
Supply
Coordinate common platform design
Management
Sourcing centers – China and India
Lean initiatives
Optimize manufacturing footprint
Productivity
Sales and production planning methodology
A 2-3% incremental margin improvement is a reasonable objective
from these initiatives
9
10. Terex Business Segments
Aerial Work Platforms
•
Construction
•
Slice 1
Cranes
• Slice 2
Slice 3
Materials Processing & Mining Slice 4
•
Roadbuilding, Utility Products
•
and Other
Sales by Segment
(Last 12 months thru Jun 30, 2008, $ in millions)
7%
$689
24%
RBUO
$2,409
23%
AWP
$2,427
MPM
20%
$2,067
26% Construction
$2,632
Cranes
10
11. Aerial Work Platform Segment
Highlights Sales by Geography - YTD Q2 2008
Rising labor costs and tightening worker 11%
8%
safety regulations is driving demand in
51%
developing markets 30%
Recent softening in Western Europe
Prices increased for orders after Sept 1, 2008 USA Europe/Africa/Middle East
Asia/Australia Other Americas
Opportunities
European production capacity expansion => reduce transit time
and inventory levels
China manufacturing facility initially for sourcing
Manf. by Geography - Mid-term Goal
Manufacturing by Geography - 2007
~10%
<10%
Americ as
Americ as
~30% Europe/Africa/Middle
Europe/Afric a/Middle East
A
East ~60% Asia/Australia
Asia/Australia
90+%
A
11
12. Construction Segment
Sales by Geography - YTD Q2 2008
Highlights
3%
7% 14%
European focused business
Large market potential
76%
Weak dollar hurts N. American distribution
Opportunities USA Europe/Africa/Middle East
Asia/Australia Other Americas
Sales/service focus in developing markets
Emphasis on sourcing and production in low cost countries
ASV acquisition provides N. American distribution for
compact equipment and global growth opportunity for
compact track loaders
Manf. by Geography - Mid-term Goal
Manufacturing by Geography - 2007 p.f.
9%
~30%
~30% Americas
Americas
A
Europe/Africa/Middle
Europe/Africa/Middle
East
A
East
Asia/Australia
91% Asia/Australia
~40%
12
13. Crane Segment
Sales by Geography - YTD Q2 2008
Highlights 4%
USA
Strong demand expected through 2010 23%
Europe/Africa/Middle
26%
East
Market leader above 300-ton capacity Asia/Australia
47%
Other Americas
Pricing and volume leverage are driving margin
improvement
Opportunities
Chinese investment for cost and strategic reasons
Selective expansion of manufacturing footprint
Manf. by Geography - Mid-term Goal
Manufacturing by Geography - 2007
~10 %
~25%
~25%
~2 5 % Americas
Americ as
A
Europe/Africa/Middle
Europe/Afric a/Middle
A East
East
Asia/Australia
Asia/Australia
~50%
~6 5 %
13
14. Material Processing & Mining Segment
Sales by Geography - YTD Q2 2008
Highlights
13%
Strong commodity demand through at least 2010 USA
17%
Europe/Africa/Middle
East
Market leader: hydraulic shovels and mobile Asia/Australia
32% 38%
crushing & screening equipment Other Americas
Opportunities
Manufacturing in India for Material Processing
Focus on Aftermarket
Growing installed base of shovels that drives parts sales
Manf. by Geography - Mid-term Goal
Manufacturing by Geography - 2007
~3 %
~15%
Americas
Americas
~35%
A
~3 5 % Europe/Africa/Middle
Europe/Afric a/Middle
East
East
A
~6 2 %
Asia/Australia
Asia/Australia
~50%
14
15. Roadbuilding, Utilities & Other Segment
Highlights Sales by Geography - YTD Q2 2008
16%
Inadequate funding for infrastructure in the USA 1%
6%
Under-investment in fleet for many years by U.S. 77%
based utilities
USA Europe/Africa/Middle East Asia/Australia Other Americas
Opportunities
Utilize Roadbuilding manufacturing capacity for Construction
Segment products
Focus on infrastructure
International potential for Utilities
Manf. by Geography - Mid-term Goal
Manufacturing by Geography - 2007
~1% ~10%
~5% Americ as
Americ as
A Europe/Afric a/Middle
Europe/Africa/Middle
East
East
A
~9 9 % Asia/Australia
Asia/Australia
~85%
15
17. Return on Invested Capital (trailing 12 months)
LTM After-Tax ROIC – Machinery Industry
35.0%
29.5% 29.4%
30.0% 27.6% 27.0% 26.7%
25.0%
19.4%
18.2%
20.0%
15.0%
10.0% 7.2%
5.0%
0.0%
Caterpillar * Joy Global Deere * Terex Manitowoc Bucyrus Astec OSK
LTM After-Tax ROIC – Diversified Industrials
30.0% 27.0%
25.0%
20.0%
20.0% 17.0%
13.8%
15.0%
11.1%
10.0%
5.0%
0.0%
Terex United Illinois Tool Works Dover Corp. Danaher Corp
Technologies
ROIC is calculated by dividing the sum of the last four quarters’ net operating profit after tax by the average of the sum of total
stockholders’ equity plus debt less cash and cash equivalents for the last five quarters ended.
DE and JOYG are as of Apr 30, 2008 and the remainder are as of Jun 30, 2008
17 *Does not include finance arm of company
18. Net Sales Growth With Minimal Leverage
$10,081
Net Debt
Sales $9,138
($ in millions)
$7,648
$6,157
$4,799
$3,910
$2,817
$2,000
$1,857 $1,824
$1,209
$1,023 $894
$805 $780 $766
$721 $571
$86 $80
1999 2000 2001 2002 2003 2004 2005 2006 2007 Q2 2008*
* Q2 2008 sales is based on last 12 months sales as of June 30, 2008; Net Debt is as of June 30, 2008
18
19. Working Capital Opportunities
Working capital as a % of sales
is comparable to our peers …
… but the opportunity exists to
release hundreds of millions of
dollars from inventory.
Competitor Working Capital as % of Sales
40.0% 37.3%
35.0%
29.1%
Inventory as % of Sales
30.0%
25.1%
23.9%
25.0% 22.1%
20.4% 35% 32.5%
20.0%
15.1% 30%
15.0%
23.3%
25% 22.6% 21.5%
10.0% 7.3% 20.2% 20.4%
18.5% 18.7%
20%
5.0%
15%
15%
0.0%
r*
SK
10%
*
x
**
*
**
c
re
**
re
lla
te
YG
s*
ee
oc
O
Te
pi
As
ru
JO
w
er
D
cy
i to
at
5%
Bu
C
an
M
0%
Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Jun-07 Jun-08 Target
* Excludes CAT and DE Finance arms RAW WIP Finished Goods Aftermarket
** DE and JOYG as of Apr 30. All others as of June 30, 2008
*** MTW and BUCY combine accounts payable and accrued
expenses, complicating a comparable analysis to peers
19
20. 2008 Guidance
Forecasted 2008 EPS growth of 17-22% versus 2007
Sales guidance is for a range of $10.5 - $10.9 billion
EPS guidance is between $6.85 - $7.15 per share*
$12,000
Sales Growth of 71% - 77%
$9,000
$10,500
$6,000
to
$9,138 $10,900
$7,648
$6,157
$3,000
$0
2005 2006 2007 2008e
$8.00
EPS Growth of 272% - 289%
$6.00
$6.85
$4.00
to
$5.85 $7.15
$2.00 $3.88
$1.84
$0.00
2005 2006 2007 2008e
*Does not reflect impact of Fantuzi acquisition, which is expected to me
20 minimally dilutive in 2008
21. Looking Ahead…….
Growth – Sales and Profit
Leveraging global presence, consolidating vendors and pricing actions
Continue the TEREX business system implementation
Lean manufacturing focus, customer-centric business approach, and human resource development
Developing market opportunities
China, India, Russia and Latin America
ROIC focus
27.0% ROIC (after-tax) as of June 30, 2008
23.0% budgeted ROIC target for 2008
Investment Priorities
Reinvest in the business
Opportunistic and geographic acquisitions
A
$1.2 billion stock repurchase authorization; $362 million completed through Qtr 2 2008
A
21
23. Fantuzzi Overview
Product Mix
Global leader in the design, manufacture, and service of
port equipment. Mobile
Harbor
2007 Revenues of approximately €447 million Cranes
8% Ship-to-
Offers full range of equipment: Shore
Cranes / Rail
Reach
Straddle Carriers & Rubber
Stackers /
Tired Gantry
Forklift
Rail / Rubber Tired Gantry Cranes Cranes
Trucks
34%
28%
Mobile Harbor Cranes
Ship-to-Shore Cranes
Reach Stackers & Forklift Trucks Straddle Carriers
30%
Factories in Italy, Germany, and China
Revenue Mix
Global distribution and geographic reach
Australia /
17 Sales and service branches around the world New Zealand
6%
NA
120+ technicians 11%
2,230 team members EMEA
56%
Asia
27%
23
24. Fantuzzi Acquisition Summary
Fantuzzi provides an important growth opportunity in the intermodal transportation
area of infrastructure
Diversifies our crane portfolio with related technology:
New attractive end markets
Broad geographic revenue mix
China accounts for 10 – 15% of sales
Global port technology leader
Complete range of equipment
Innovative new technologies – “Sprinter”
Leading market positions – Straddle Carriers & Reach Stackers
Sourcing and lean manufacturing opportunities
EPS accretive by the end of 2009
24