1. Terex Materials Processing & Mining
MineExpo International 2008
September 22, 2008
Eric Nielsen
President, Terex MP&M
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 MP&M in Summary
• $2.4 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 June 30, 2008 3
4. Materials Processing & Mining Products
Mining
Mining Highwall
Surface
Trucks
Excavators Miners
Mining Drills
Top 3 Top 3 #3 #1
Parts/
Mobile Materials Static Materials
Tools
Processing Processing
High Margin
#1 Technology
4
7. Terex Mining Global Network
Locations:
Terex Mining
Channel partners
Near our customer locations in all major market areas
7
8. Market Environment
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
8
9. Growth in Large Size Machines
World Market – Excavator Sales by Class
World Market – Excavator Units by Class
•100%
800 1800
1600
700
1400
600
Millions USD
1200
500
Units
1000
400
800
300
600
200
400
100
200
0
0
2002 2003 2004 2005 2006 2007
2002 2003 2004 2005 2006 2007
100 t 160 t 240 t 350 t 500 t 700 t 100 t 160 t 240 t 350 t 500 t 700 t
World Market – Mining Truck Units by Class World Market – Mining Truck Sales by Class
1400 4000
3500
1200
3000
1000
Millions USD
2500
800
Units
2000
600
1500
400
1000
200
500
0
0
2002 2003 2004 2005 2006 2007 2002 2003 2004 2005 2006 2007
110 t 140 t 170 t 190 t 220 t 290 t 327 t 110 t 140 t 170 t 190 t 220 t 290 t 327 t
Terex is well positioned for market needs
9
Sources: VDMA for the 100 t class, Parker Bay for the classes over 160T (Excavators) & 140T (Trucks)
10. 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
Higher mobility provides greater flexibility in mining operations
10
11. 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
Lower total cost of ownership and superior performance
11
12. Mobile Materials Processing
• Portable and manoeuvrable 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
Mobility and flexibility is highly desired by customers
12
13. Outlook
Underlying drivers for global mining and aggregate demand
•
are intact and are likely to continue
Developing markets driving increased global demand
Demand driving increased investment and activity
Expanding need for equipment
Competition will intensify, but we are well positioned to
•
capitalize on strong global markets
Strong product franchises
Quality of global distribution
Improving aftermarket capabilities
13
14. Commodity Pricing Trends
REAL ALUMINUM PRICES REAL COPPER PRICES
REAL IRON ORE PRICES
5000 14000
120 SINCE 1900 (’07 $/TON) SINCE 1900 (’07 $/TON)
SINCE 1900 (’07 $/TON)
4500
1983
12000
100 Reagan
4000
steel tariffs
10000
3500
80
3000 8000
Omitted
2500
60
6000
aluminum
2000
pre-WWII
40 1500 4000
1000
20 2000
500
0 0
0
1898
1908
1918
1928
1938
1948
1958
1968
1978
1988
1998
2008
1898
1908
1918
1928
1938
1948
1958
1968
1978
1988
1998
2008
1898
1908
1918
1928
1938
1948
1958
1968
1978
1988
1998
2008
REAL SILVER PRICES
REAL GOLD PRICES
1800 60
SINCE 1900 (’07 $/troy oz)
SINCE 1900 (’07 $/troy oz)
1600
50
1400
1200 40
1000
30
800
600 20
400
10
200
0 0
1898
1908
1918
1928
1938
1948
1958
1968
1978
1988
1998
2008
1898
1908
1918
1928
1938
1948
1958
1968
1978
1988
1998
2008
• Commodity prices are well above production costs
• GDP growth in developing markets driving demand
14
Source: Analysis of USGS Historical Statistics for Mineral and Material Commodities
15. Strategy
Key focus areas through 2010
1. New Product Introductions
2. Strength/ Consistency of Global
Distribution, Service and Support
3. Globally Optimized Footprint & Cost
Structure
4. Leveraging our Portfolio of Businesses
15
16. MP&M: New Product Introductions
MT 6300
SK-L Electric Drive
• Large capacity drill to • Ultra-capacity truck
• Increased focus on
(400 t)
complement large electric drive
haul and shovel excavators to lower • Built with Terex-
products operating cost designed drive
system
• Electric drive option • New markets for
to lower fuel cost large excavators • Trucks in operation
in Australia and
• Work in progress on • Work in progress on
Canada
automation automation
16
17. MP&M: New Product Introductions
XA 750 984 SCREEN
• Large capacity mobile
• Large Crusher, capable of
horizontal screen
producing 800 tons per hour
• Designed to work in
• Targeting large quarries and
conjunction with higher output
small mines
crushing plant as part of a
“mobile system”
• Market launch scheduled for
October/ November 2008 • Target customers will be large
quarries and mines
17
18. 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
18
19. 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
19
20. Portfolio Leverage
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
Construction Equipment
Other Terex
Offerings: Rigid and Articulating Trucks
Rigid and Articulating Trucks
• Potential synergy within MP&M and across Terex
• Developing approaches to strategic accounts that
provide value from a portfolio offering
20
21. Terex MP&M in Summary
• $2.4 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 June 30, 2008 21
