2. Terex NDRS Team
Ron DeFeo, Chairman & Chief Executive Officer
Tom Riordan, President & Chief Operating Officer
Phil Widman, Senior Vice President & Chief Financial Officer
Laura Kiernan, Director of Investor Relations
2
3. 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.
3
5. Who is Terex?
Purpose • To improve the lives of people around the world
Mission • To delight construction, infrastructure, mining and
other customers with value-added offerings that
exceed their needs
• To attract the best people by creating a culture that
is safe, exciting, creative, fun, and embraces
continuous improvement
Vision • To be the most responsive company in the industry
as determined by the customer
• To be the most profitable company in the industry as
measured by Return on Invested Capital (ROIC)
• To be the best place to work in our industry as
determined by our team members
5
6. Who is Terex?
• Diversified Portfolio of Equipment Businesses
• Positioned for Continuing Long - Term Trends
• Leader In Our Categories and Our Industry
• Leveraging the Power Of One Company
AERIAL WORK MATERIALS PROC.
CRANES
PLATFORMS AND MINING
ROADBUILDING AND
CONSTRUCTION
UTILITIES
6
7. Why Invest?
Diversified Portfolio of Equipment Businesses
Commodity
Extraction Infrastructure Building and Operations/
Residential
Construction Industrial Maintenance
Mining X
Matls. Proc. X X
Construction X X X X
Roadbuilding X X X
Utilities X X
Cranes X X X X
AWP X X X X
Exposure to Commodity, Construction, and Post - Construction Drivers
7
8. Why Invest?
Diversified Portfolio of Equipment Businesses
2007 SALES BY BUSINESS 2007 SALES BY GEOGRAPHY
RBU
7%
Developing
AWP
Markets
25%
22% W. Europe
Construction
Japan / ANZ 37%
21%
7%
MP&M Cranes USA /
23% 24% Canada
34%
$ 9.1 B
$ 9.1 B $ 9.1 B
$ 9.1 B
Balanced by business; Balanced geographically
8
9. Why Invest?
Positioned for Continuing Long - Term Trends
WORLD PRIMARY ENERGY DEMAND*
• Beneficial to multiple Terex categories
• Particularly positive for Cranes and Mining
* Source: International Energy Agency 9
10. Why Invest?
Positioned for Continuing Long - Term Trends
EXAMPLE: NON-FERROUS METALS EXPENDITURES BY TOP 40 MINING COMPANIES
EXPLORATION (1989 – 2007), $B* OPEX ($B)** CAPEX ($B)**
12 200 60
$176
180 $51
10 160 50
$141
$134
140 $125
40 $37
8
120
$95 $28
6 100 30
$75
80
4 60 20
40
2 10
20
0 0 0
'89 '90'91 '92'93 '94'95 '96'97 '98'99'00 '01'02 '03'04 '05'06 '07 '02 '03 '04 '05 '06 '07 '05 '06 '07
• Global consumption driving unprecedented levels of investment
• Outlook for mining equipment remains positive and the
corresponding industrial growth is a driver for other businesses
* Source: Metals Economics Group; **Source: PWC: “Mine: As Good as it Gets?”, 2008 – capex excludes acquisitions
10
11. Why Invest?
Positioned for Continuing Long - Term Trends
$B GLOBAL NON-RESIDENTIAL $B GLOBAL RESIDENTIAL
$7,000 CONSTRUCTION (REAL 2007 $)* $4,000 CONSTRUCTION (REAL 2007 $)*
$3,500 4.4 %
$6,000
CAGR
5.6 %
CAGR $3,000 -0.8 %
$5,000 CAGR
5.6 %
$2,500 CAGR
5.1 % 1.3 %
$4,000
1.6 % CAGR CAGR
CAGR $2,000
$3,000
$1,500
$2,000
$1,000
$1,000 $500
$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 infrastructure construction growing, despite weakness in developed
markets – not yet incorporated in the survey data above
• Terex well positioned to capitalize, with 22% of sales, over 4,000 team
members, and more than 30 locations now in developing countries
* Source: Global Insights, July ‘08; 69 countries tracked by GI + 5% to account for rest of world … consistent with global GDP’s
11
12. Where We Are Today
Leader in Our Categories and Our Industry
Terex is one of the Largest Manufacturers of
$31.6
Construction Equipment in the World
Based on last twelve months of available Construction Equipment Sales ($’s in Billions)
$19.7
$10.4 $9.1 $8.7 $8.1
$5.2 $5.1 $4.8 $4.5 $4.4 $3.7
Caterpillar (1) Komatsu (2) Terex Hitachi (3) Volvo (4) Liebherr (7) Sandvik (10) CNH Global (8) Deere (5) JCB (7) Doosan (6) Oshkosh (9)
(1) Represents Machinery sales for the last twelve months ended Sep 30, 2008; excludes (7) Estimated, as these are privately owned companies:
Engine and Financial Product sales. JCB: 2007 sales of GBP 2.25 billion converted at Dec 31, 2007 GBP/USD rate of
(2) Represents Komatsu’s Construction, Mining & Utility Equipment segment as of June 30, 1.9870
2008 converted at an exchange rate of JPY/USD of 106.18 Liebherr: 2007 Cranes/Mining/Construction sales of EUR 5.5 billion converted at Dec
(3) Exchange rate used as of June 30, 2008 of USD/JPY 106.18 31, 2007 EUR/USD rate of 1.4598
(4) Represents Volvo’s Construction Equipment segment as of Sep 30, 2008 converted at (8) Represents CNH Global’s Construction Equipment Segment as of Sep 30, 2008
an exchange rate of USD/SEK 6.9252 (9) Represents Access & Concrete Placement equipment sales for the 9 months ended
(5) Represents Deere’s Construction and Forestry segment as of July 31, 2008 June 30, 2008 plus Access & Commercial (both concrete & refuse trucks) for the 3
(6) Represents 2007 Construction Equipment sales of $1.5 billion converted at an exchange months ended Sep 30, 2007.
rate at Dec 31, 2007 of KRW/USD 936.07 plus estimated 2007 bobcat sales of $2.9 (10) Represents Mining & Construction sales through Jun 30, 2008 converted at an
billion exchange rate of SEK/USD 6.9252
12
13. Why Invest?
Leader in Our Categories and Our Industry
Approximately 75% of 2007 sales were generated
in markets where Terex has significant market presence
AERIAL WORK CRANES MP&M
PLATFORMS
• All Terrain Cranes (top 2) • Hydraulic Excavators (top 3)
• Articulated boom lifts (top 2)
• Rough Terrain Cranes (top 3) • Mining Trucks (#3)
• Telescopic boom lifts (top 2)
• Tower Cranes (#3) • Surface Drills (# 3)
• Scissor lifts (top 3) • Crushing & Screening (#1)**
• Large Crawlers (#1)
• NA Telehandlers (#2) • Port Cranes (top 2)* • Highwall Miners (#1)
ROADBUILDING AND
CONSTRUCTION
UTILITIES
• Compact Track Loaders (#1)
• Front Discharge Mixers (#1)
• Material Handlers (#2 or 3)
• Insulated Aerials (#2)
* Including pro forma impact of Fantuzzi acquisition; ** Mobile Equipment 13
14. Why Invest?
Leader in Our Categories and Our Industry
2Q 2008 LTM After-Tax ROIC-Machinery Industry
• In-line with larger,
more vertically
integrated competitors
2Q 2008 LTM After-Tax ROIC-Diversified Industrials • Better than diversified
industrials with higher
valuations
ROIC is calculated by dividing the sum of the last four quarters’ net operating income 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 as of Apr 30, 2008 and the remainder are as of Jun 30,
2008; OSK includes $175.2 million goodwill impairment charge incurred during their Q3 2008; *Does not include finance arm of company 14
15. Why Invest?
Leveraging the Power of One Company
• Our framework to build
a stronger Terex
• Process improvements
will assure long term
success
15
16. Why Invest?
Leveraging the Power of One Company
Tom Riordan, Phil Widman
President & Chief Senior Vice President &
Operating Officer Chief Financial Officer
Tim Ford, Bob Isaman, Rick Nichols, Eric Nielsen, George Ellis, Steve Filipov,
President President President President President President
Terex AWP Terex Construction Terex Cranes Terex MP&M Terex RBU Developing Markets
16
17. Summary of Overview & Strategy
Continue Building a Better Company
• Improved capabilities
• Diverse end market exposure
• ROIC focused
Positioned for the Attractive Growth Opportunities
• Right sectors and segments
• Right geographies
• Delivering unique value to customers
• Targeted acquisitions
Execute, Execute, Execute
• Do what we say
• Overcome challenges that are often hard to predict
17
19. Supporting Profitable Growth
• 5+ years of strong growth, driven by favorable market
conditions and an increasingly robust portfolio
• Committed to core financial principles
– Growth with modest debt leverage
– Industry leading ROIC
– Generate cash to enable capital investments, targeted
acquisitions and share repurchases
• Near term outlook is mixed but long term remains positive.
Focus near term is on cash & liquidity, and cost reduction.
• Improving performance via core business initiatives that
will enhance long-term results
19
20. Terex to Date:
Consistent Sales Growth
Sales growth from 2003 to 2007 was ~90% organic
Sales (USD billions) Operating Income (USD billions)
$1.2
$10.0
$1.0
$8.0
$0.8
$6.0
$0.6
$4.0 $0.4
$2.0 $0.2
$0.0 $0.0
'94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 Q3
Acquisitions: PPM Simon LTM
O&K Reedrill
Powerscreen, Cedarapids ASV
Fermec Hydra
CMI, Atlas SHM
Schaeff, Demag, Genie 20
21. Terex to Date:
Balanced Sales Growth
Sales (USD billions)
$10.0
$8.0 CAGR 26%
$6.0
$4.0
$2.0
$0.0
2002 2003 2004 2005 2006 2007 LTM Q3 2008
Aerial Work Platforms Construction Cranes
Material Processing & Mining Roadbuilding, Utilities & Other
Sales balanced between segments
21
22. Terex to Date:
Broad-based Profit Growth
Operating Income
(USD billions)
$1.2
$1.0
$0.8
CAGR 82%
$0.6
$0.4
$0.2
$0.0
2002 2003 2004 2005 2006 2007 LTM Q3 2008
Aerial Work Platforms Construction Cranes
Material Processing & Mining Roadbuilding, Utilities & Other
Operating income growth outpacing sales growth
Increasingly evenly distributed (AWP, MPM, Cranes)
22
23. Terex to Date:
Growth with Minimal Leverage
$10.4
Net Debt
Sales $9.1
($ in billions) $7.6
$6.2
$4.8
$3.9
$2.8
$1.9 $2.0 $1.8
1999 2000 2001 2002 2003 2004 2005 2006 2007 Q3 2008*
Net leverage of 1.0x in Q3 provides flexibility
• Q3 2008 sales is based on last 12 months sales as of Sept 30, 2008; Net Debt is as of Sept 30, 2008
• Net leverage ratio is defined as debt less cash and cash equivalents divided by last twelve months EBITDA 23
24. Terex to Date:
Cash Flow
FREE CASH FLOW ($M) WORKING CAPITAL DETAIL (DAYS)
450 140
400 120
350
100
300
80
250
60
200
150 40
100 20
50
0
0 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2
2004 2005 2006 2007 Q3 '08 LTM '03 '04 '04 '05 '05 '06 '06 '07 '07 '08
Inventory Days Receivable Days Payable Days
• Consistent cash generation, with • Working capital has remained
2007 shift explained by utilization consistent but presents a
of tax loss benefits significant opportunity to improve
• Targeting further improvement as • Working capital (particularly
our business continues to grow inventory) should decrease with
improved processes
Free Cash Flow is defined as Cash from Operations less Capital Expenditures
24
25. Priorities for Cash Utilization
Must consider current environment
Near term focus is on cash, liquidity, and cost reduction
Internal investment
• Manufacturing capability / footprint
• Human capital
• Systems
Value generating acquisitions
Returning cash to shareholders
• Currently suspended share repurchase program, pending
access to credit markets
• $1.2 billion authorized through June 2009 ($0.6 B to date)
25
26. Terex to Date:
Return on Invested Capital
50%
43%
45%
38%
40%
35%
35%
30% 29%
Pre-tax ROIC
25% 21% 25%
24% After-tax ROIC
20%
15% 12%
14%
10% 10%
3%
5%
0%
2003 2004 2005 2006 2007 Q3 LTM
ROIC growth driven by operating income growth faster than invested capital
Recent acquisitions of SHM and ASV dampen returns in the short term
ROIC is calculated by dividing the sum of the last four quarters’ net operating income 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. 26
27. Near Term Outlook
Next four quarters net sales expectations beginning 4Q’08:
• Mining and Cranes continuing favorable trends
• AWP (30%-40%), Construction (25%-35%) and Materials Processing
(15%-20%) negatively impacted by current market conditions
Material Cost pressure continues
Cost reduction actions underway to adjust to market expectations
2008 sales $10.0 to $10.3 billion
2008 EPS $5.69 to $5.79
All EPS amounts are on a fully diluted basis
27
28. Sales Growth Initiatives
Active and relevant in high growth markets
Global Market
Participation Doing business efficiently and effectively
Positioned to support product after sale
Aligned with local market needs
“Local”
Products Delivered at local market price points
Optimized production with global supply chain
Clear product, service, or other advantages in all markets
Competitive
Differentiation
Value-adding relationships with customers
Leveraging the Power of One Company
28
29. Operating Income Initiatives
Ensure Terex is receiving appropriate value for its products
Pricing / Mix Optimize product mix
Offset rising commodity costs with commensurate pricing actions
Coordinate supply efforts to leverage the scale of Terex
Supply
Management Facilitate common designs and components
Sourcing centers – China and India
Terex Business System (TBS) & Terex Management System (TMS)
Productivity Optimize manufacturing footprint
Sales and production planning methodology
Goal: 2% - 3% margin improvement
29
30. Cash Flow Initiatives
Sales Growth
Product
Enhance Profitability
Margin
Integrated and aligned approach to tax planning
Tax Planning More tax efficient business structure(s)
Processes and resources to assure tax minimization
Continued diligence - AP / AR
Capital
Aggressive inventory management
Efficiency
Capital expenditures to enhance profitable growth
15% working capital / trailing sales
Capex between 1.5% and 2.0% of sales
Cash taxes will approximate tax expense
30
32. TFS: Path Forward
Owning More of the Customer Experience 2010
$2.5B
• Tap into Broader Risk Appetite from Multiple Sources
• Responsiveness – “Take the Deal Off the Street”
TFS
Originated
• Increase Avenues to Competitive Capital Originate
& Sell
2007
$1.3B
3rd Party
Funding
2004
$0.5B
Dealer Finance
Dealer Finance
32
33. Tax Planning Objectives
EFFECTIVE TAX RATE – TEREX VS.
INDUSTRY PEERS
40%
36% 36%
35%
34%
35% 33% 33%
32% 31%
29%
30% 28%
25% 25%
TAX STRATEGIES
25% 23%
20%
• Traditional Planning and
15%
10% Execution
10%
5%
0%
• Statutory Rate Reduction
ASTE OSK DE JOYG TEX BUCY CAT KMT UTX MTW DHR PKI IR ETN
• Global Expansion and
• Reduce effective tax rate in line with leading Optimization
industry peers
• Operationally Aligned Tax
• Industry-minimums only achievable through
Strategies (OATS)
aggressive structural change, but meaningful
improvement can come through improved
processes and practices
33
34. Summary Supporting Profitable Growth
• 5+ years of strong growth, driven by favorable market
conditions and an increasingly robust portfolio
• Committed to core financial principles
– Growth with modest debt leverage
– Industry leading ROIC
– Generate cash to enable capital investments, targeted
acquisitions and share repurchases
• Near term outlook is mixed but long term remains positive
• Improving performance via core business initiatives that
will enhance long-term results
34
36. Injury Statistics
Terex Lost Time Rate Trending
(12 Month Moving Average)
7.0
6.0
Cranes
5.0
Construction
4.0
TLTR
MP&M Terex
3.0
AWP RBU
2.0
1.0
0.0
Jan 07 Sept 08
36
37. Operational Update
• Progress towards an integrated operating company
• Integration examples
Customer Satisfaction
Supply Management
New Product Development
Terex Business Systems
• Challenging economic environment – actions we’re
taking
• Other progress and path forward
37
38. Transformation Underway
• Transitioning from a holding company to an operating company
• Upgrading capabilities to drive business and functional performance
GOALS OBJECTIVES
Right • Experienced leadership, driven to create change
Talent • Resources and mandate required to succeed
Clear • Measurements defined and goals established
Metrics • Alignment within and across businesses
Good • Well defined and well executed business processes
Process • Systems that enable execution
• Clear, permanent shifts in performance
Results
• Ability to sustain and improve
38
39. Progress Examples
• Customer Satisfaction
• Supply Management
• Product Development
• Terex Business System (TBS)
39
40. Customer Satisfaction: Objectives
Vision: Most Responsive Company in the Industry as Determined by the Customer
People to People Solutions Customer-Defined Value Make My Job Easier
Relationships that II can depend
“Relationships that can depend Deliver highly competitive entry,
““Deliver highly competitive entry, “Make it easy for me to run my
“Make it easy for me to run my
on to help me ””
on to help me operating and exit value””
operating and exit value business”
business”
CUSTOMER ENABLERS
• Ensure initial experience with products is positive
• Improve aftermarket service and support
• Deliver effectively through multiple channels
Distribution/ Branches
Rental
Direct
• Build long-term value proposition
40
41. Customer Satisfaction: Actions
• Multiple activities in progress to:
Understand customer purchase drivers
Measure current levels of satisfaction
Identify improvement actions for Terex
Build meaning and value for the Terex brand
• Supporting changes are underway:
Product/ offering development
Distribution improvement
Global aftermarket
• We have a long way to go but, increasingly, we have
the right people and processes in place to deliver the
results we are targeting
41
42. Supply Management: Objectives
Create competitive advantage in the supply chain while minimizing
the impact of rising material and component costs
2007 2008 2009 2010
Build the Foundation
Establish consistent
sourcing processes Expand the Core
Build the
Common objectives Achieve Excellence
organization
International Sourcing
Enhance sourcing
Infrastructure
tool set Deeper supplier integration
Drive savings and
mitigate inflation TBS initiatives
Continual focus on savings
and mitigating cost inflation
42
43. Supply Management: Priorities
Teams activity engaged in major material cost elements
Expected Valves, hydraulic Other consumables,
average tools & dispatch kits
15 %
Clamps, ties & straps
savings Plastic, Documentation
Fittings & adaptors polymers Paint & coatings
& rubber
Other hydraulic & Cabs, accessories Aluminum
pneumatic & ropes Bearings, bushings & accessories
Transmissions,
hydrostatic components Machined components, steel
Other Other Other
Pumps & pump Gearboxes electrical hardware mech.
assemblies, hydraulic & gears & control Indirect
10%
components spend
Motors, Fluid transfer Product identification & labeling
Cylinders
hydraulic & control,
non-hydraulic Fasteners & retainer rings
Hose Other structural fabricated components
assemblies
Other Controllers, timers, control
powertrain modules & PBC
Axles Complex Tires,
assemblies rubber Batteries
5%
Other power Other running Castings & Steel
plants, IC engine gear forgings
Engine, Tire & Crawler track
diesel wheel assemblies
assemblies Weldment,
steel
Third Second High
priority priority priority
0%
Difficult Ease of Implementation Easy
Size of bubble: Total spend of respective commodity
43
44. Product Development Status
• VP of Technology added in late 2007
• Launched New Product and Process Development
Process in early 2008
• Roll-out of New Product Identification Process
underway
• Actively migrating existing product programs to
new process and new phase-gate discipline
• Upgrading engineering and cross-functional
product development capabilities in parallel
• Realizing clear benefits as we go
44
45. Terex Business System (TBS)
The Terex Business System is our framework
to build a stronger Terex
45
46. TBS: Objectives
• Improve margin from efficiency/productivity gains
• Increase production capacity within existing manufacturing footprint
• Improve customer satisfaction and reduce warranty costs due to
improved quality
• Lower inventory, particularly raw materials and work-in-process, leads
to improved cash flow
• More easily move or replicate production lines around the globe
• Empower team members, enriching their work experience
• Develop team member skill sets, knowledge, and capabilities
46
47. TBS: Recent Improvements
TEREX CRANES - WAVERLY, IOWA TEREX UTILITIES – WATERTOWN, SD
Before After After After
• From poorly lit, inventory laden facility to a • Moving line for Tree Trimmers and TL
clean, transparent factory floor with flow Mixed Model Line, designed for ergonomic
and visual controls build activity and attached to a moving line
• Increased throughput by 4 – 5 x • Parts Carts
– Parts pulled and kitted prior to build
• Cut working capital days by 2/3 – Visual Management for unit status and
• Now turning inventory at 11-12 times per identification of part shortages
year vs. 2-3 at the beginning of 2005 – Carts follow build sequence, adding a
visual quality step
• Andon System/ Escalation Procedure
• On-time delivery improved by 50%
47
48. TBS: Recent Improvements
Material Processing – Omagh, N. Ireland Mining Trucks – Acuna Mexico
After Photo
Before After Before After
Portable crane in use to rotate frame New “craneless” production line
• Implement a factory wide system to • Redesign of mining truck production line to
smooth production levels to standard takt dramatically increase throughput, on-time
times and implement visual controls delivery and team member safety.
• Additional improvements will now be • Eliminated the use of cranes, improving
based on the established standards productivity, quality and safety
• Production increased almost 50% over • Monthly production levels increased by a
two years within the existing factor of 4 times within existing
manufacturing footprint
manufacturing footprint
• Inventory turns improved 35% over a two
year period to mid-teens
48
49. TBS and Global Manufacturing Footprint
• Developing shared production campuses in India and China
45 acre site near Chennai, India currently under construction
Scheduled to begin producing crushing equipment in early 2009
Other products to follow in late 2009/ early 2010
Expansion of existing facility in Tianjin, China
Will produce crane and mining components
Production begins in 2010
• Each campus will house up to 3 Terex shipping
segments, leveraging shared capabilities MINING – PHASE I
• Designing facilities from the ground-up MINING – PHASE I I
based on TBS principles CRANES
CRANES
• Using TBS to plan and execute line
moves to replicate successes from other stock
global locations
49
50. TBS and Global Manufacturing Footprint
DEVELOPED WORLD DEVELOPING WORLD
Improve effectiveness at existing Increase presence in developing
locations – applying TBS to countries
streamline operations
Leverage product and cost
Rationalize developed market positions globally
footprint
• Significant progress is underway, but change will require investment
• Balancing opportunity for change with market and other factors
50
51. Cost Reduction Activities
• Production level and headcount reductions
• Facility rationalization
• Segment realignment
• Capital spending delayed
• Material inflow constrained
51
52. Other Progress
• Impossible to cover the amount of improvement underway
at Terex in a short presentation
• Parallel progress continues on multiple fronts:
Talent Recruitment and Development
Diversity and Inclusion
Terex Management Systems implementation
Branding/ Marketing/ and Customer Satisfaction
Terex Financial Services
Global Logistics
Global Service and Support
• Positioned to take our performance to the next level
52
53. Terex Operations Summary
• Continuing our journey to be an effective global operating
company
• Significant talent now invested and beginning to deliver the
results that we expect
• We are aggressively responding to changing market
conditions – cash and cost focused
• We remain excited about the transformation that is
underway in our company and about the value that it can
deliver both near and long term
53
