1. Goldman Sachs Global Industrials
Conference
November 5, 2008 Eric Nielsen
President,
Materials Processing & Mining
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.
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3. Where We Are Today
Leader in Our Categories and Our Industry
Terex is one of the Largest Manufacturers of
Construction Equipment in the World
$31.6 Based on last twelve months of available Construction Equipment Sales ($’s in Billions)
$19.9
$10.4 $9.2 $8.7 $8.1
$5.3 $5.1 $4.8 $4.5 $4.4 $4.1
Caterpillar (1) Hitachi (3) Volvo Liebherr (7) Sandvik (10) CNH Global (8) Deere (5) JCB (7) Doosan (6)
(4)
Komatsu (2) Terex Oshkosh (9)
(7) Estimated, as these are privately owned companies:
(1) Represents Machinery sales for the last twelve months ended Sep 30, 2008; excludes
JCB: 2007 sales of GBP 2.25 billion converted at Dec 31, 2007 GBP/USD rate of
Engine and Financial Product sales.
1.9870
(2) Represents Komatsu’s Construction, Mining & Utility Equipment segment as of Sep 30,
Liebherr: 2007 Cranes/Mining/Construction sales of EUR 5.5 billion converted at Dec
2008 converted at an exchange rate of JPY/USD of 106.35
31, 2007 EUR/USD rate of 1.4598
(3) Exchange rate used as of Sep 30, 2008 of USD/JPY 106.35
(8) Represents CNH Global’s Construction Equipment Segment as of Sep 30, 2008
(4) Represents Volvo’s Construction Equipment segment as of Sep 30, 2008 converted at
(9) Represents Access & Commercial (both concrete & refuse trucks) for the 12 months
an exchange rate of USD/SEK 6.9252
ended Sep 30, 2008.
(5) Represents Deere’s Construction and Forestry segment as of July 31, 2008
(10) Represents Mining & Construction sales through Sep 30, 2008 converted at an
(6) Represents 2007 Construction Equipment sales of $1.5 billion converted at an exchange
exchange rate of SEK/USD 6.9252
rate at Dec 31, 2007 of KRW/USD 936.07 plus estimated 2007 bobcat sales of $2.9
billion
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4. Segment and Geographic Diversification
Diversified Portfolio of Equipment Businesses
2007 Sales by Geography
2007 Sales by Segment
RBU
7%
Developing
AWP
Markets
25%
W. Europe
22%
Construction
37%
Japan / ANZ
21%
7%
USA /
Cranes
MP&M
Canada
24%
23%
34%
$ 9.1 B $ 9.1 B
$ 9.1 B $ 9.1 B
Balanced by business; Balanced geographically
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5. Terex MP&M in Summary
• $2.6 B*provider of surface mining and aggregate equipment
solutions sold to mining, quarrying, and construction
customers worldwide
• Solid foundation of products, geographic presence and
team member talent
• Profitable growth from machinery and aftermarket business
• Undertaking actions to accelerate growth and better serve
our customers
* Last 12 months through September 30, 2008
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7. Materials Processing & Mining Products
Mining
Mining Highwall
Surface
Trucks
Excavators Miners
Mining Drills
Top 3 Top 3 Top 3 #1
Parts/
Mobile Materials Static Materials
Tools
Processing Processing
#1 Technology High Margin
Industry leading range of equipment for construction, mining
and infrastructure industries 7
8. Annual Mining Equipment Industry of $20 B
Discontinuous Mining $B Continuous Mining $B
Bucket Wheel Excavators, etc. 2.0
Blast hole Drill 1.4
Surface Miners (Easy Miners) 0.2
Hydraulic Excavators 1.7
Electric Mining Shovel 1.3 Highwall Miners 0.1
Wheel Loaders (large) 0.5
Surface Trucks 2.5
Mining
Tractors (Dozers) 1.0
Draglines 0.3
(44%) 8.7 (12%) 2.3
Development & Production Drill (Ore) 1.5 Long wall Face Support 2.0
Load Haul Dump (LHDs Ore) 2.0 Long wall Face Conveyor (AFC) 1.3
Continuous Miner / Roadheader 0.6 Long wall Shearer 0.7
Underground Shuttle Car (Coal) 0.6
Mining
(20%) 4.7 (24%) 4.0
Focus is on highest value adding surface mining processes of drilling, digging, and hauling
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2007 Data: International Press, Mining Companies, OEMs, Goldman Sachs; Analysis: RWTH Aachen, BGMR
9. Mining End Market Equipment Usage
Industry Terex
( Mining Trucks and Hydraulic Excavators)
( Mining Trucks, Hydraulic Excavators, Electric .Shovels & Wheel Loaders)
20054 Years
2005 Years avg
4 - 2008 - 2008 avg
Other,
Other,
16%
16%
Oil Sands,
Oil Sands,
1.3%
5% Coal, 38%
Coal, 46%
Iron Ore,
Iron Ore, 19%
13% Copper,
16% Gold, 11%
Gold, 11% Copper,
7%
• Market growth from $6 B to $ 9.6B over 3 • 85+ % of Terex mining equipment used by
years large multinational companies or large state
owned companies
• Equipment investment focused in surface
mining industry • Current offering well suited for metal and
coal production
• For China coal production, beginning of shift
from underground to surface mining • Focused penetration of oil sands underway
• Demand from developing world driving
investments in coal, iron ore, and copper
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Source : Percentage of units shipped by end market, Parker Bay 2005- 2008, 2008 Data until June.
10. Mining Product Mix
Industry Terex
( Mining Trucks and Hydraulic Excavators)
( Mining Trucks, Hydraulic Excavators, Electric .Shovels & Wheel Loaders)
20054 Years
20054 Yearsavg
- 2008 - 2008 avg
Highwall
Miners, 2%
Drills, 17%
Drills, 13%
Wheel Tools, 4%
Loaders,
Tools, 20%
6% Trucks,
Electric 21%
Shovels, 1%
Hydraulic
Hydraulic
Excavators,
Excavators,
56%
15%
Trucks,
46%
• Industry leading performance and strong
• One loading tool is required for every three
global channel driving excavator sales
or four trucks
• Truck volume growing in line with channel
• Move towards hydraulic excavators due to
improvements
flexibility of electric or diesel power
• Addition of drills, tools, and high wall miner
depending on mine requirement.
business provides total solutions offering
• Tire capacity constraints has moderated
growth of large surface mining equipment
during past four years
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Source : Parker Bay 2005-2008, 2008 Data until June.
11. Mining sales by region
Industry Terex
( Mining Trucks and Hydraulic Excavators)
( Mining Trucks, Hydraulic Excavators, Electric .Shovels & Wheel Loaders)
2005 -Years avg
4 2008
20054- Yearsavg
2008
Asia
Asia Australia/ 15%
Africa
Africa 6%
Indonesia 14%
10% 26%
Australia/
Indonesia
North
Europe 31%
America
North 9%
Europe
19%
America
Russia/CIS 2%
Latin
27% Latin 5%
America Russia/CIS
America
13% 7%
17%
• North America and Australia continue to be • Solid strength in largest mining equipment
significant markets for mining equipment markets
• Significant growth in Africa, Latin America • Increasing focus on growing Asia markets
and Asia • Opportunity to grow the business in
Americas through channel improvements
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Source : Percentage of units shipped by end market, Parker Bay 2005-2008, 2008 Data until June.
12. Looking Forward
Roadbuilding and
Segment: Quarries/ Small Mines Large Mines
Construction Contractors
Mobile Materials Processing
MP&M Mobile Materials Processing
Offering:
Static Materials Processing
Static Materials Processing
Shovels and Trucks
Shovels and Trucks
Drills/ Drilling Tools
Drills/ Drilling Tools
Construction Equipment
Other Terex Construction Equipment
Offerings: Rigid and Articulating Trucks
Rigid and Articulating Trucks
• Leading solutions provider to targeted industries & applications
• Strength/consistency of global distribution, service & support
• Leverage opportunities across the Terex product portfolio
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14. Market Environment for Mining
Key Trends
• New green field
Number of Mining Projects by Project Phase
projects
450
Pre-feasibiliy
Feasibility
400
• Focus on quick start ups
Under Construction
350
Expansion, Brownfield • Prefer to minimize CAPEX,
New Production Starts
e.g. no electrification
300
• Very well suited for hydraulic
250
excavators
200
• Shift towards larger
150
size machines
100
50
• Higher rate of production
0
• Lower cost per ton
2000 2001 2002 2003 2004 2005 2006 2007 2008
• Helps in overcoming the
Source: Raw Materials Group, Sweden
challenges of the shortage of
skilled operators
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15. Market Environment for Materials Processing
Positioned for Continuing Long - Term Trends
GLOBAL RESIDENTIAL
GLOBAL NON-RESIDENTIAL $T
$T
CONSTRUCTION (REAL 2007 $)*
CONSTRUCTION (REAL 2007 $)* $7,000
$7,000
$6,000
$6,000
5.6 %
CAGR
$5,000
$5,000
4.4 %
-0.8 % CAGR
$4,000
$4,000
1.6 % CAGR
5.6 %
CAGR
CAGR
$3,000
$3,000 1.3 %
5.1 % CAGR
CAGR
$2,000 $2,000
$1,000
$1,000
$0 $0
'90'91 '92'93 '94'95 '96'97 '98'99 '00'01 '02'03'04 '05'06 '07'08 '09'10 '11'12 '13'14 '15'16 '90 '91'92 '93 '94'95 '96 '97'98 '99 '00 '01'02 '03 '04'05 '06 '07 '08'09 '10 '11'12 '13 '14'15 '16
Infrastructure Industrial Other Non-residential Total Residential
• Global growth in construction continues, despite weakness in US
• Construction driving high need for quarrying and aggregates
• Flexibility of mobile equipment is increasingly valued
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* Source: Global Insights, July ‘07; 69 countries tracked by GI + 5% to account for rest of world … consistent with global GDP’s
16. Distribution & Aftermarket Priorities
OBJECTIVES
Installed base continues to grow,
• Strengthen Global Distribution driving aftermarket service
opportunities
– Raising the bar for standards
– Improving distribution capabilities
– Improved support for larger EXAMPLE: HYDRAULIC
EXCAVATOR INSTALLED BASE
customers
– Extend into new geographies
• Greater Aftermarket Participation
– Improve aftermarket capabilities
internally and in the channel
– Increase perceived value for Terex
branded parts & service
– Add/improve maintenance & service
capabilities
2002 2003 2004 2005 2006 2007
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17. MP&M: Manufacturing Footprint
Crushing and
Crushing and
Screening
Screening
Products, UK
Products, UK
Drills, Crushing
Drills, Crushing Excavators
Excavators
and Screening
and Screening Germany
Germany
Equipments, USA
Equipments, USA
New Factory
New Factory
Excavators
Excavators
High Wall
High Wall Tianjin, China
Tianjin, China
Mining Trucks
Mining Trucks Miners, USA
Miners, USA
Acuna, Mexico
Acuna, Mexico
New Factory
New Factory
Crushing and
Crushing and
Screening
Screening
Products
Products
Hosur, India
Hosur, India
• Adding footprint in India (Materials Processing)
• Adding small excavator capability in China (Mining)
• Evaluating acquisitions to accelerate global progress
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18. Hydraulic Excavators
• Superior mobility as compared to an
electric rope shovel
• Leadership position in electric drive
• Well suited for rapid mine start-ups
• Largest hydraulic excavator with
bucket size up to 50 cubic meters
• Hydraulic excavators beginning to
replace electric rope shovels
• Price range is ~ $1.5 - $16.0 million
with most popular about $9.0 million
Higher mobility provides greater flexibility in mining operations
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19. Full Range of AC Drive Hauling Solutions
• Leadership position in high efficiency AC
drive trucks
• Higher up time
• Lower operating cost
• Higher payload
• Better operating performance compared
to mechanical drive in
• starting torque
• travel speed
• braking
• 120 ton to industry leading 400 ton
capacity AC electric drive trucks
• Price range is ~ $2.0 - $6.5 million, with
most popular about $3.0 million
Lower total cost of ownership and superior performance
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20. Mobile Materials Processing
• Portable and maneuverable for
smaller spaces and between job
sites
• Minimizes need for transportation of
aggregate
• Low cost solution for meeting re-
use/recycling laws
• Attractive for larger operators in
times of market uncertainty due to
mobility between sites or ability to
use for a limited period of time and
then sell
• Price range is approximately $75,000
to over $600,000
Mobility and flexibility is highly desired by customers
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