• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
terex Minexpo_09-21-08_web
 

terex Minexpo_09-21-08_web

on

  • 515 views

 

Statistics

Views

Total Views
515
Views on SlideShare
515
Embed Views
0

Actions

Likes
0
Downloads
5
Comments
0

0 Embeds 0

No embeds

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    terex Minexpo_09-21-08_web terex Minexpo_09-21-08_web Presentation Transcript

    • Terex Materials Processing & Mining MineExpo International 2008 September 22, 2008 Eric Nielsen President, Terex MP&M
    • 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
    • Terex MP&M in Summary • $2.4 B*provider of surface mining and aggregate equipment solutions sold to mining, quarrying, and construction customers worldwide • Solid foundation of products, geographic presence and team member talent • Profitable growth from machinery and aftermarket business • Undertaking actions to accelerate growth and better serve our customers * Last 12 months through June 30, 2008 3
    • Materials Processing & Mining Products Mining Mining Highwall Surface Trucks Excavators Miners Mining Drills Top 3 Top 3 #3 #1 Parts/ Mobile Materials Static Materials Tools Processing Processing High Margin #1 Technology 4
    • Product & Geographic Mix PRODUCT MIX ($) GEOGRAPHIC MIX ($) 29% 35% 47% 58% 15% 21% 13% 22% 13% 19% 13% 34% 29% 27% 25% 2004 2008 Q2 YTD 2004 2008 Q2 YTD Developing Markets Materials Processing Japan / ANZ Drills/ Other W. Europe Trucks USA / Canada Excavators 5
    • Growing Profitability MP&M RESULTS $B $2.5 30% • Sales up 31% since 25% $2.0 2004 (CAGR) 20% • Operating Profit up $1.5 51% (CAGR) 15% $1.0 • Robust demand for 10% mining and $0.5 5% quarrying $0.0 0% 2004 2005 2006 2007 Q2 '08 (ltm) Sales Gross Margin Op. Margin 6
    • Terex Mining Global Network Locations: Terex Mining Channel partners Near our customer locations in all major market areas 7
    • 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
    • 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)
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • Questions?