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Terex Investment Analyst Meeting
Welcome
September 4, 2008

                    Laura Kiernan
                    Director, Investor Relatons
Forward Looking Statements &
 Non-GAAP Measures
The following presentation contains forward-looking information based on t...
Overview and Strategy
September 4, 2008

                        Ron DeFeo
                        Chairman & Chief Execut...
Agenda

      8:30 – 9:00    Registration and Breakfast
      9:00 – 9:30    Opening Remarks and Strategic Overview
      ...
Who is Terex?

  Purpose       To improve the lives of people around the world
            •


  Mission       To delight ...
Who is Terex?

          •   Diversified Portfolio of Equipment Businesses
          •   Positioned for Continuing Long - ...
Why Invest?

         Diversified Portfolio of Equipment Businesses




                               Terex sales percent...
Why Invest?

              Diversified Portfolio of Equipment Businesses
                  Commodity
                     ...
Why Invest?

      Diversified Portfolio of Equipment Businesses
                                   2007 SALES BY GEOGRAPH...
Why Invest?

                    Positioned for Continuing Long - Term Trends
                                        WORL...
Why Invest?

                        Positioned for Continuing Long - Term Trends
                                        ...
Why Invest?

                          Positioned for Continuing Long - Term Trends
                                      ...
Why Invest?

                                Leader in Our Categories and Our Industry
                                   ...
Why Invest?

                        Leader in Our Categories and Our Industry
                              Approximately...
Why Invest?

                        Leader in Our Categories and Our Industry
           LTM After-Tax ROIC-Machinery Ind...
Why Invest?

       Leveraging the Power of One Company




                                • Our framework to build
     ...
Why Invest?

             Leveraging the Power of One Company




                                    Tom Riordan,        ...
Goals for 2010

                  GOAL              June 30, 2008 LTM*   What we must accomplish


      $12.0B in Sales  ...
Summary

Continue Building a Better Company
   •   Improved capabilities
   •   Diverse end market exposure
   •   ROIC fo...
Terex Investment Analyst Meeting
Supporting Profitable Growth
September 4, 2008

                               Phil Widman
                               ...
Summary

• 5+ years of strong g
     y             g growth, driven by favorable market
                           ,      ...
Terex to Date:
Consistent Sales Growth
                      Sales growth from 2003 to 2007 was ~90% organic
  Sales (USD ...
Terex to Date:
Balanced Sales Growth
Sales (USD billions)
                                                                ...
Terex to Date:
Broad-based Profit Growth
Operating Income
                                                                ...
Terex to Date:
  Growth with Minimal Leverage
                            g

                                             ...
Terex to Date:
   Cash Flow
                            FREE CASH FLOW ($M)                                               ...
Priorities for Cash Utilization

  Internal investment
    • Manufacturing capability / footprint
    • Human capital
    ...
Terex to Date:
 Return on Invested Capital

            50%
                                                              ...
Terex to Date:
Shareholder Returns




                            Dec-02   Dec-03   Dec-04   Dec-05   Dec-06   Dec-07   J...
Current Valuation versus Peer Group

                                ENTERPRISE VALUE TO EBITDA
 16
                      ...
Near Term Outlook - 2008

 Continuing favorable trends in Cranes and Mining

 AWP and Construction anticipating weakness n...
Goals through 2010

                GOAL                   June 30, 2008 LTM* What we must accomplish


       $12.0B in S...
Sales Growth Drivers

                       Active and relevant in high growth markets
    Global Market
                ...
Operating Income Drivers


                  Ensure Terex is receiving appropriate value for its p
                       ...
Cash Flow Drivers

                        Grow Sales
      Product
                        Enhance P fit bilit
          ...
Enabling Initiative:
Terex Financial Services (TFS)

      ’03 – ’05             ’06 - ’08                 ’09 +

        ...
TFS: Path Forward


  Owning More of the Customer Experience                                      2010
                   ...
Enabling Initiative:
Information Systems & TMS

 Infrastructure enhancements
   • E-mail standardized across the globe
   ...
Terex Management Systems:
Progress

                                                    Single Integrated System
     Lega...
Tax Planning Objectives
                   EFFECTIVE TAX RATE – TEREX VS.
                      INDUSTRY PEERS (Q2 2008)
4...
Tax Strategy

One Terex                   • OATS* can increase simplification, standardization,
                          ...
Summary

• 5+ years of strong g
     y             g growth, driven by favorable market
                           ,      ...
Terex Investment Analyst Meeting
Operations Overview
September 4, 2008

                      Tom Riordan
                      President and Chief Operati...
Safety First


   Safety is ingrained in our culture through constant
             emphasis, training and tracking

      ...
Operational Update


• Progress towards a integrated ope a g co pa y
    og ess o a ds an eg a ed operating company

• Int...
Transformation Underway

  • Transitioning from a holding company to an operating company
  • Upgrading capabilities to dr...
Progress to Date

                                  Right          Clear         Good
                                    ...
Progress Examples


  • Customer Satisfaction

  • Supply Management

  • Product Development

  • Terex Business System (...
Customer Satisfaction: Objectives

       Vision: Most Responsive Company in the Industry as Determined by the Customer
  ...
Customer Satisfaction: Actions

  • Multiple activities in progress to:
         Understand customer purchase drivers
    ...
Customer Satisfaction Example:
Net Promoter Score

                     METHODOLOGY                                       ...
Customer Satisfaction Example:
Terex Brand of the Future

              METHODOLOGY                                   STAT...
Progress Examples


  • Customer Satisfaction

  • Supply Management

  • Product Development

  • Terex Business System (...
Supply Management: Objectives

 Create competitive advantage in the supply chain while minimizing
         the impact of r...
Supply Management: Priorities

         Teams activity engaged in major material cost elements

Expected                  ...
Building a Solid Foundation through
Integrated Information Management



                                  eCOST
         ...
Hydraulics Value Engineering

Dramatic cost savings and efficiency improvement achieved by
consolidating multiple componen...
Steel Fabrication Sourcing in India

Five-year agreement executed with a large, well positioned Indian
fabricators to prod...
Progress Examples


  • Customer Satisfaction

  • Supply Management

  • Product Development

  • Terex Business System (...
Product Development: Process
                                   Customer Insights/ Feedback

                New Technolog...
Product Development: Objectives

            SITUATION:                                          OBJECTIVE: ENHANCE
      ...
Product Development: Status

  • VP of Technology added in late 2007
  • Launched New Product and Process Development
    ...
Progress Examples


  • Customer Satisfaction

  • Supply Management

  • Product Development

  • Terex Business System (...
Terex Business System (TBS)

    The Terex Business System is our framework
              to build a stronger Terex
TBS: Objectives

• Improve margin from efficiency/productivity gains

• Increase production capacity within existing manuf...
TBS Operational Diagnostic

  • Terex facilities are at various stages of TBS implementation – diagnostic
    tool will:
 ...
TBS: Recent Improvements
    TEREX CRANES - WAVERLY, IOWA                         TEREX UTILITIES – WATERTOWN, SD




    ...
TBS: Recent Improvements

Material Processing – Omagh, N. Ireland                    Mining Trucks – Acuna Mexico



     ...
TBS and Global Manufacturing Footprint

 • Developing shared production campuses in India and China
      45 acre site nea...
TBS and Global Manufacturing Footprint

         DEVELOPED WORLD                            DEVELOPING WORLD




  Improve...
Other Progress

• Impossible to cover the amount of improvement underway
  at Terex in a 30 minute presentations
• Paralle...
Terex Operations Summary

• Continuing our journey to be an effective global operating
  company

• Significant talent now...
Terex Investment Analyst Meeting
Terex Developing Markets
September 4, 2008

                           Steve Filipov
                           President,...
Developing Markets Summary


      • ~$2 2B* of sales were from developing countries growing at
        ~$2.2B            ...
What is a is a Developing
   What developing market?                                             Market?
   ’06–’07 Growth...
What is a is a Developing
    What developing market?                                           Market?
                  ...
What is a Developing Market?
Shenzhen




     Source: http://www.tongz.net/life/bulletin.asp            Source: http://ww...
What is a Developing Market?
Dubai




           1990




                                                          2007
...
What is a Developing Market?
Mexico City
          y




                              ~ 1970                             ...
Long-Term Global Infrastructure Need


                                       • W ld t spend
                             ...
Terex: Developing Markets
Growth to Date

                                                DEVELOPING MARKET
        DEVELO...
Developing Markets - Goal

Developed Markets                Developing Markets




                        Sales
         ...
Developing Markets – How?

    Accelerate              • Remove roadblocks, accelerate
                                   ...
Developing Markets: First Steps

   ‘One Terex’ Strategies
    • Chi
      China, India, S/C America, Russia/ E t
        ...
Specifics by Market: China

                                                                                    PATH FORWA...
Specifics by Market: India

                                                                                     PATH FORW...
Hosur, India – Regional Presence
Specifics by Market:
South & Central America

                                             PATH FORWARD IN SOUTH
         ...
Specifics by Market: Russia/ E. Europe

                                               PATH FORWARD IN
                   ...
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  1. 1. Terex Investment Analyst Meeting
  2. 2. Welcome September 4, 2008 Laura Kiernan Director, Investor Relatons
  3. 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. materially Such risks and uncertainties, many of which are beyond the control of Terex include among others: our uncertainties Terex, 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 p p y y pricing, p g, product initiatives and other actions taken by competitors; the effects of y p ; 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.
  4. 4. Overview and Strategy September 4, 2008 Ron DeFeo Chairman & Chief Executive Officer
  5. 5. Agenda 8:30 – 9:00 Registration and Breakfast 9:00 – 9:30 Opening Remarks and Strategic Overview 9:30 – 10:00 Financial Update 10:00 – 10:30 0 00 0 30 Ope at o s O e e Operations Overview 10:30 – 10:45 Break 10:45 – 11:15 Developing Markets 11:15 – 11:45 Terex Materials Processing and Mining 11:45 – 12:45 Luncheon 12:45 1:15 12 4 – 1 1 Terex Aerial Work Platforms f 1:15 – 1:45 Terex Construction 1:45 – 2:15 Terex Cranes 2:15 – 2:30 Break 2:30 – 3:00 Terex Roadbuilding, Utility Products & Other g y 3:00 – 4:00 Closing Remarks and Q&A
  6. 6. 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 pp y g • 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 b h best place to work i our i d T be the b l k in industry as • determined by our team members
  7. 7. Who is Terex? • Diversified Portfolio of Equipment Businesses • Positioned for Continuing Long - Term Trends g g • 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
  8. 8. Why Invest? Diversified Portfolio of Equipment Businesses Terex sales percentage is based on last twelve months of sales through June 30 2008 30, Broadest portfolio in the industry
  9. 9. Why Invest? Diversified Portfolio of Equipment Businesses Commodity Infrastructure Building and Operations/ Extraction Residential Construction Industrial Maintenance X Mining X X Matls. Proc. X X X X Construction X X X Roadbuilding X X Utilities X X X X Cranes X X X X AWP Exposure to Commodity, Construction, and Post - Construction Drivers
  10. 10. Why Invest? Diversified Portfolio of Equipment Businesses 2007 SALES BY GEOGRAPHY 2007 SALES BY BUSINESS 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 Balanced by business; Balanced geographically
  11. 11. 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
  12. 12. Why Invest? Positioned for Continuing Long - Term Trends EXPENDITURES BY TOP 40 MINING COMPANIES EXAMPLE: NON-FERROUS METALS EXPLORATION (1989 – 2007), $B* CAPEX ($B)** OPEX ($B)** 200 60 12 $176 $51 180 50 10 160 $141 $134 140 $125 $37 40 8 120 $95 $28 100 30 6 $5 $75 80 20 4 60 40 10 2 20 0 0 0 '02 '03 '04 '05 '06 '07 '05 '06 '07 '89 '90'91 '92'93 '94'95 '96'97 '98'99'00 '01'02 '03'04 '05'06 '07 • Gl b l consumption d i i unprecedented l Global ti driving d t d levels of i l f investment t t • 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
  13. 13. Why Invest? Positioned for Continuing Long - Term Trends GLOBAL RESIDENTIAL GLOBAL NON-RESIDENTIAL $B $B CONSTRUCTION (REAL 2007 $)* CONSTRUCTION (REAL 2007 $)* $4,000 $7,000 4.4 % $3,500 $6,000 CAGR 5.6 % $3,000 CAGR -0.8 % $5,000 CAGR 5.6 % $2,500 CAGR 1.3 % 5.1 % $4,000 CAGR 1.6 % CAGR $2,000 CAGR $3,000 $1,500 $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 Total Residential Infrastructure Industrial Other Non-residential • Global construction strong, despite weakness in developed markets • Terex is increasingly well positioned to capitalize with 22% of sales over capitalize, sales, 4,000 team members, and more than 30 locations now in developing countries * Source: Global Insights, July ‘07; 69 countries tracked by GI + 5% to account for rest of world … consistent with global GDP’s
  14. 14. Why Invest? Leader in Our Categories and Our Industry Terex is one of the Largest Manufacturers 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) (4) Liebherr (7) CNH Global (8) Sandvik (10) Deere (5) JCB (7) Doosan (6) Oshkosh (9) Volvo Komatsu (2) Terex (1) R Represents t t l sales b f t total l before PPower Products, Fi P d t Financing and I i d Insurance S i Services sales l (6) Represents 2007 Construction equipment sales of $1.5 billion b R t C t ti i tl f $1 5 billi based on exchange d h for the 9 months ended March 31, 2008 plus Building Construction Products, EAME rate at December 31, 2007 of KRW/USD 936.07 plus estimated 2007 Bobcat sales of Operations, Heavy Construction & Mining and Infrastructure Development sales for the 3 $2.9 billion 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, JCB: 2007 sales of GBP 2.25 billion converted at Dec 31, 2007 GBP/USD rate of 2008. 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 (3) Exchange rate used as of June 30, 2008 of USD/JPY 106.18 Eh t d fJ 30 f 106 18 31, 31 2007 EUR/USD rate of 1.4598 t f 1 4598 (4) Represents Volvo’s Construction segment as of June 30, 2008. Rate of USD/SEK (8) Represents CNH Global’s Construction Equipment Segment as of June 30, 2008 6.0241 (9) Represents Access & Concrete Placement equipment sales for the 9 months ended (5) Represents Deere’s Construction and Forestry segment as of April 30, 2008 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
  15. 15. 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 MP&M CRANES PLATFORMS • Hydraulic Excavators (top 3) • All Terrain Cranes (top 2) • Articulated boom lifts (top 2) (p) • Mining Trucks Mi i T k (#3) • Rough Terrain Cranes (top 3) • Telescopic boom lifts (top 2) • Surface Drills (# 3) • Tower Cranes (#3) • Scissor lifts (top 3) • Crushing & Screening (#1)** • Large Crawlers (#1) • NA Telehandlers (#2) • Highwall Miners ( ) g (#1) • Port Cranes (top 2)* (p) 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
  16. 16. Why Invest? Leader in Our Categories and Our Industry LTM After-Tax ROIC-Machinery Industry • In-line with larger, more vertically integrated competitors • Better than diversified LTM After-Tax ROIC-Diversified Industrials 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
  17. 17. Why Invest? Leveraging the Power of One Company • Our framework to build a stronger Terex • Process improvements will assure long term success
  18. 18. Why Invest? Leveraging the Power of One Company Tom Riordan, Phil Widman President & Chief Senior Vice President & Operating Officer Chief Financial Officer Steve Filipov, Tim Ford, Bob Isaman, Rick Nichols, Eric Nielsen, George Ellis, President President President President President President Developing Markets Terex AWP Terex Construction Terex Cranes Terex MP&M Terex RBU
  19. 19. 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 pricing process discipline, supply chain management, & TBS t initiatives 15% Working Capital to Sales 22.1% Optimize supply chain planning and execution “12 by 12 in ’10” is our medium - term stretch goal * LTM = Last Twelve Months
  20. 20. Summary 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 y • Overcome challenges that are often hard to predict
  21. 21. Terex Investment Analyst Meeting
  22. 22. Supporting Profitable Growth September 4, 2008 Phil Widman Senior Vice President Chief Financial Officer
  23. 23. Summary • 5+ years of strong g y g growth, driven by favorable market , y conditions and an increasingly robust portfolio •C Committed t core financial principles itt d to fi il i il Growth with modest debt leverage Industry l di I d t 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 long-term
  24. 24. 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 $1 0 $8.0 $0.8 $6.0 $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 Q2 LTM Acquisitions: PPM Simon O&K Reedrill Powerscreen, Cedarapids ASV Hydra Fermec SHM CMI, Atlas Schaeff, Demag, Genie
  25. 25. Terex to Date: Balanced Sales Growth Sales (USD billions) 2010 Goal $12B $10.0 $8.0 $8 0 CAGR 26% $6.0 $4.0 $2.0 $0.0 2002 2003 2004 2005 2006 2007 LTM Q2 2008 Aerial Work Platforms Construction Cranes Material Processing & Mining Roadbuilding, Utilities & Other Sales balanced between segments
  26. 26. Terex to Date: Broad-based Profit Growth Operating Income 2010 Goal $1.44B (USD billions) $1.2 $1 2 $1.0 $0.8 CAGR 82% $0.6 $0.4 $0.2 $0.0 2002 2003 2004 2005 2006 2007 LTM Q2 2008 Aerial Work Platforms Construction Cranes Material Processing & Mining Roadbuilding, Utilities & Other Operating income growth outpacing sales growth Increasingly evenly distributed (AWP, MPM, Cranes)
  27. 27. Terex to Date: Growth with Minimal Leverage g $10.1 $10 1 Net Debt Sales $9.1 ($ in billions) $7.6 $7 6 $6.2 $4.8 $4 8 $3.9 $2.8 $2.0 $2 0 $1.9 $1.8 1999 2000 2001 2002 2003 2004 2005 2006 2007 Q2 2008* Net leverage of .7x in Q2 provides flexibility • Q2 2008 sales is based on last 12 months sales as of June 30, 2008; Net Debt is as of June 30, 2008 • Net leverage ratio is defined as debt less cash and cash equivalents divided by last twelve months EBITDA
  28. 28. Terex to Date: Cash Flow FREE CASH FLOW ($M) WORKING CAPITAL DETAIL (DAYS) 140 450 400 120 350 100 300 80 250 60 200 40 150 100 20 50 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 0 '03 '04 '04 '04 '04 '05 '05 '05 '05 '06 '06 '06 '06 '07 '07 '07 '07 '08 '08 2004 2005 2006 2007 Q2 '08 LTM Inventory Days Receivable Days Payable Days • Steady improvement in cash • Working capital has remained generation, with 2007 shift consistent but presents a explained b utilization of t l l i d by tili ti f tax loss significant opportunity t improve i ifi t t it to i benefits • Working capital (particularly • Targeting further improvement as g g p inventory) can and should y) our business continues to grow decrease with higher scale and improved processes Free Cash Flow is defined as Cash from Operations less Capital Expenditures
  29. 29. Priorities for Cash Utilization Internal investment • Manufacturing capability / footprint • Human capital • Systems Value generating acquisitions • Geographic expansion • Category diversification • Bolt-ons Returning cash to shareholders Rt i ht h h ld • Current program in place • $1.2 billion authorized through June 2009
  30. 30. Terex to Date: Return on Invested Capital 50% 43% 45% 40% 38% 40% 35% 30% 27% Pre-tax ROIC 27% 25% 5% 25% 21% After-tax ROIC f OC 20% 12% 15% 14% 10% 10% 3% 5% 0% 2003 2004 2005 2006 2007 Q2 LTM ROIC growth driven by operating income g g yp g growth faster than invested capital p 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.
  31. 31. Terex to Date: Shareholder Returns Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Jun-08 $100 $256 $428 $533 $1,159 $1,177 $922 Terex Corp. $100 $129 $143 $150 $173 $183 $161 S&P 500® Custom Composite Index (8 $100 $163 $196 $228 $280 $434 $373 Stocks)
  32. 32. Current Valuation versus Peer Group ENTERPRISE VALUE TO EBITDA 16 (Trailing 12 Months) 14 12 10 Sector Average 9.1x 8 6 4 2 0 Terex Manitow oc Oshkosh Astec CNH CAT Deere Joy Bucyrus Trading well below average industry valuation, despite continuing strong performance ii f
  33. 33. Near Term Outlook - 2008 Continuing favorable trends in Cranes and Mining AWP and Construction anticipating weakness near term Difficult market conditions in the US • Europe softening faster than anticipated E ft i f t th ti i t d • Material costs increasing in advance of offsetting pricing actions • 2008 sales guidance $10.2 t $10 6 billi l id $10 2 to $10.6 billion 2008 earnings per share guidance: gp g $6.35 to $6.65 • 9% to 14% increase over 2007 • 2008 quarterly earnings per share guidance: 3rd quarter: $1.26 to $1.38 • 4th quarter: $1.20 to $1 33 $1 20 $1.33 • All EPS amounts are on a fully diluted basis
  34. 34. Goals through 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 pricing process discipline, supply chain management, & TBS initiatives 15% Working Capital to Sales 22 1% 22.1% Optimize supply chain planning and execution “12 by 12 in ’10” is our medium - term stretch goal g * LTM = Last Twelve Months
  35. 35. Sales Growth Drivers Active and relevant in high growth markets Global Market Doing business efficiently and effectively Participation Positioned to support product after sale Aligned with local market needs “Local” Delivered at local market price points Products Optimized production with global supply chain Clear product, service, or other advantages in all markets Competitive Value-adding relationships with customers Differentiation Leveraging th P L i the Power of O Company f One C 20% developing and 5% developed world growth would achieve ~$12B in 2010
  36. 36. Operating Income Drivers Ensure Terex is receiving appropriate value for its p g pp p products Pricing / Mix Optimize product mix Offset rising commodity costs with commensurate pricing actions Coordinate supply efforts to leverage the scale of Terex Supply pp y Facilitate common designs and components Management Sourcing centers – China and India Terex Business System (TBS) & Terex Management System (TMS) Optimize manufacturing footprint Productivity Sales and production planning methodology Goal: 2 3% incremental margin G l 2-3% i tl i
  37. 37. Cash Flow Drivers Grow Sales Product Enhance P fit bilit Eh Profitability Margin Integrated and aligned approach to tax planning More tax efficient business structure(s) Tax Planning Processes and resources to assure tax minimization Continued diligence around AP / AR Capital Aggressive inventory management Efficiency Capital expenditures to enhance profitable growth 15% working capital / trailing sales by 2010 Capex between 1.5% and 2.0% of sales 1 5% 2 0% Cash taxes will approximate tax expense
  38. 38. Enabling Initiative: Terex Financial Services (TFS) ’03 – ’05 ’06 - ’08 ’09 + Expand Launch Transform Impact • Limited • Reflect Terex • True Global Captive Geography Global Footprint • Enable Terex Growth • Low Coverage & • Segment Coverage Globally Penetration & Penetration • O ti i Partnerships Optimize P t hi • Functions • Influence • Expand Customer Outsourced Customer Touch Points Experience pe e ce Protect balance sheet while supporting growth of business, especially in developing markets
  39. 39. 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 Oi i t d • Increase Avenues to Competitive Capital Originate & Sell 2007 $1.3B 3rd Party Funding 2004 $0.5B Dealer Fi D l Finance Dealer Finance
  40. 40. Enabling Initiative: Information Systems & TMS Infrastructure enhancements • E-mail standardized across the globe • Collaboration tools deployed to share information • St d di d WAN i f t t Standardized infrastructure t support Video, V i to t Vid Voice, and D t d Data Value-added solutions Supply Management analytics • Human Resource Standardization • Service Part Demand Planning • Customer Relationship Management (CRM) • Terex Management System (TMS) T M tS t Multi-year ERP Implementation • 1/3 of sales addressed by end of 2009 • Rest of company to follow •
  41. 41. Terex Management Systems: Progress Single Integrated System Legacy Systems Architecture MK Avantage PRMS SPCS DIAPASON KBM Motherwell Coventry Data3 Great Plains Redmond Zweibrücken Zweibrü SAP R2 SAGE PBS Southaven Brisbane Omnis Germiston Langenburg SAP R3 Coalville Fourth Shift AUDITOR • Complete systems overhaul - implementing a single integrated ERP system single, • 3 businesses have “gone live” and the pace of implementation is accelerating • Implementation will enable more effective and efficient business practices
  42. 42. Tax Planning Objectives EFFECTIVE TAX RATE – TEREX VS. INDUSTRY PEERS (Q2 2008) 40% 36% 36% 35% 34% 35% 33% 33% 32% 31% 29% TAX STRATEGIES 30% 28% 25% 25% 25% 23% 20% • Traditional Planning and 15% Execution 10% 10% 5% • Statutory Rate Reduction 0% 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 p yg • Industry minimums only achievable through Industry-minimums Strategies (OATS) aggressive structural change, but meaningful improvement can come through improved processes and practices
  43. 43. Tax Strategy One Terex • OATS* can increase simplification, standardization, scalability and process i l bilit d improvement across T t Terex. • Proactively integrate business change with operational Total Solution and legal structures to place earnings in low tax countries. •C Comprehensive OATS are currently i place at our h i tl in l t Proven Strategy competitors and other leading multinationals. Material Tax Savings • Structural ETR# reductions average between 6% and 12% depending on industry and geographical footprint. Sustainable Benefits • Structural ETR reduction improves the ROI of business initiatives, increasing EPS and cash flow. * Operationally Aligned Tax Strategies; # Effective Tax Rate
  44. 44. Summary • 5+ years of strong g y g growth, driven by favorable market , y conditions and an increasingly robust portfolio •C Committed t core financial principles itt d to fi il i il Growth with modest debt leverage Industry l di I d t 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 long-term
  45. 45. Terex Investment Analyst Meeting
  46. 46. Operations Overview September 4, 2008 Tom Riordan President and Chief Operating Officer
  47. 47. Safety First Safety is ingrained in our culture through constant emphasis, training and tracking Lost Time Days continue to improve 4.5 4.0 3.5 Terex LTR 3.0 2.5 2.0 1.5 Jan 07 Jun 08 Dec 08
  48. 48. Operational Update • Progress towards a integrated ope a g co pa y og ess o a ds an eg a ed operating company • Integration examples g Customer Satisfaction Supply M S l Management t New Product Development Terex Business Systems • Other progress and path forward
  49. 49. Transformation Underway • Transitioning from a holding company to an operating company • Upgrading capabilities to drive business and functional performance GOALS OBJECTIVES •E Experienced l d hi d i i d leadership, driven t create change to th Right Talent • Resources and mandate required to succeed • Measurements defined and goals established Clear Metrics • Alignment within and across businesses • Well defined and well executed business processes Good Process •S t Systems that enable execution th t bl ti • Clear, permanent shifts in performance Results Res lts • Ability to sustain and improve
  50. 50. Progress to Date Right Clear Good Results Talent Metrics Process AREA Safety Human Resources Information Technology Supply Management Product Development Manufacturing Marketing M k ti Finance/ Financial Services Distribution/ Logistics Aftermarket Support Process Improvement (TBS) Talent in place – progress underway
  51. 51. Progress Examples • Customer Satisfaction • Supply Management • Product Development • Terex Business System (TBS)
  52. 52. Customer Satisfaction: Objectives Vision: Most Responsive Company in the Industry as Determined by the Customer People to People Solutions P ltP l S l ti Customer-Defined Value Ct D fi d V l Make My Job Easier M k M J bE i “Relationships that II can depend Relationships that can depend “Make it easy for me to run my ““Deliverhighly competitive entry, Deliver highly competitive entry, “Make it easy for me to run my on to help me ”” business” operating and exit value”” on to help me business” operating and exit value 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
  53. 53. 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 g p 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
  54. 54. Customer Satisfaction Example: Net Promoter Score METHODOLOGY STATUS √ Current customer list • Piloted in Terex Fuchs in 2007 1. Target √ Decision makers & key influencers and extended into company- √ Core questions Conduct survey: 2. Listen wide roll-out in 2008 roll out √ Approved third party 3. Understand • Revealing significant opportunities to improve √ Sr. Management calls detractors 4. Detractor Follow Ups p • Revealing opportunities to √ Cross function team action plan meetings 5. Act √ Determine priorities better position in our markets √ To customers √ To team members 6. Communicate • Part of an on-going process on going √ Correlate with that will continue in our 7. Use to secondary number to validate business results company √ Once a year for relationship 8. Repeat & monitor Satisfaction studies NPS to be implemented in all Terex businesses by mid-2009
  55. 55. Customer Satisfaction Example: Terex Brand of the Future METHODOLOGY STATUS • 1,268 interviews • Findings revealed several key insights regarding our customers, • Addressed a broad cross section of the our company and our industry company, industry • Currently using these findings to End-users, dealers and rental houses refine long-term objectives for the g j All b i businesses Terex brand Multiple geographies • Actions are already underway to • Sample included owners and non non- address some underlying d i dd d l i drivers of long-term brand value owners of Terex equipment Committed to building a strong brand that drives customer preference for our products di t f f dt
  56. 56. Progress Examples • Customer Satisfaction • Supply Management • Product Development • Terex Business System (TBS)
  57. 57. 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 Expand the Core sourcing processes Build the Common objectives Achieve Excellence A hi E ll organization International Sourcing Enhance sourcing Infrastructure tool set Deeper supplier integration eepe supp e eg a o Drive savings and TBS initiatives mitigate inflation Continual focus on savings and mitigating cost i fl ti d iti ti t inflation
  58. 58. Supply Management: Priorities Teams activity engaged in major material cost elements Expected Valves, hydraulic Other consumables, average tools & dispatch kits Clamps, ties & straps 1 5% savings Documentation Plastic, polymers Fittings & adaptors Paint & coatings & rubber Other hydraulic & Cabs, accessories Aluminum Bearings, bushings & accessories & ropes pneumatic Transmissions, components hydrostatic Machined components, steel Other Other Other Gearboxes Pumps & pump hardware mech. electrical & gears assemblies, hydraulic Indirect & control spend p components 10% Product identification & labeling Motors, Fluid transfer Cylinders hydraulic & control, Fasteners & retainer rings non-hydraulic Hose Other structural fabricated components assemblies Other Controllers, timers, control powertrain modules & PBC Complex Tires, Axles Batteries assemblies rubber 5% Other power Castings & Steel Other running plants, IC engine forgings gear Tire & Crawler track Engine, wheel diesel assemblies assemblies Weldment, steel High Third Second priority priority priority 0% Ease of Implementation Difficult Easy Size of bubble: Total spend of respective commodity
  59. 59. Building a Solid Foundation through Integrated Information Management eCOST COST Data warehouse Spending by BU, supplier, commodity, part, etc. NEW NEW GBT TST Terex Sourcing Tool Global Benefit Tracker eSourcing system used Detailed tracking and to efficiently manage NEW analysis of pricing changes l i f ii h RFIs, RFPs d Reverse RFI RFP and R TPT Auctions Terex Project Tracker j System used by sourcing teams to manage implementation steps following supplier award decisions
  60. 60. Hydraulics Value Engineering Dramatic cost savings and efficiency improvement achieved by consolidating multiple component suppliers into a single, preferred g p p pp g ,p system supplier. Many similar opportunities currently being evaluated. • Value analysis and supplier consolidation • Annual spending on initial in scope components: $2.6 million • Savings by sourcing as a complete system: over $1.5 million, 59% •I l Implemented July 2008 t dJ l
  61. 61. Steel Fabrication Sourcing in India Five-year agreement executed with a large, well positioned Indian fabricators to produce large fabrications for Terex operations world-wide. world wide. • 5-year fixed labor, overhead and profit margins Advantage: favorable labor cost environment • Linkage to published local Indian steel price index Advantage: favorable Indian steel market dynamics • Local Terex sourcing & SQA presence to support supplier pp pp One-Terex approach • Build business presence in India • Six initial business units, annual spend: $16.8 million • Initial annual savings: $3.1 million
  62. 62. Progress Examples • Customer Satisfaction • Supply Management • Product Development • Terex Business System (TBS)
  63. 63. Product Development: Process Customer Insights/ Feedback New Technologies Competitive Benchmarking Ideas for New Products / Product Enhancements New P d t Product Identification “Doing the (NPI) method Right Things” New Product & • Customer driven Process • Innovative NOT Development Inventive (NPPD) method • Profitability based • Cross-functional “Doing Things Right” Gate 0 • Clear upfront objectives • Detailed plans • Progress metrics • Rapid escalation and p decision-making
  64. 64. Product Development: Objectives SITUATION: OBJECTIVE: ENHANCE INCREASING DEMAND CAPABILITY AND CAPACITY New Global Markets Tier 4 Regulations Standardization and Collaboration • Powertrain Global R&D Centers • Electrical & Electronics • H d li Hydraulics Process Efficiency • Metals Improvements • Major new regulatory requirements (Tier 4) and new market opportunities will place increasing demand on existing product development capacity • Improve processes, collaboration and standardization within and across businesses • Utilize existing resources more efficiently and effectively • Access incremental staffing with the right skills through R&D Centers in India and China
  65. 65. 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 d Actively migrating existing product programs to • new process and new phase-gate discipline Upgrading engineering and cross functional cross-functional • product development capabilities in parallel • Realizing clear benefits as we go
  66. 66. Progress Examples • Customer Satisfaction • Supply Management • Product Development • Terex Business System (TBS)
  67. 67. Terex Business System (TBS) The Terex Business System is our framework to build a stronger Terex
  68. 68. 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 p • 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
  69. 69. TBS Operational Diagnostic • Terex facilities are at various stages of TBS implementation – diagnostic tool will: Determine progress Enable team member education and development Provide a roadmap for dep oy g TBS co cep s o de oad ap o deploying S concepts • Provides a consistent framework for measuring improvement over time
  70. 70. 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, t l transparent factory floor with flow tf t fl ith fl Mixed M d l Line, d i Mi d Model Li designed f ergonomic d for i and visual controls build activity and attached to a moving line • Parts Carts • Increased throughput by 4 – 5 x – P t pulled and kitt d prior t b ild Parts ll d d kitted i to build • Cut working capital days by 2/3 – Visual Management for unit status and identification of part shortages • Now turning inventory at 11-12 times per – Carts follow build sequence adding a sequence, year vs. 2 3 at the beginning of 2005 vs 2-3 visual quality step • Andon System/ Escalation Procedure • On time delivery improved by 50% On-time
  71. 71. TBS: Recent Improvements Material Processing – Omagh, N. Ireland Mining Trucks – Acuna Mexico After Photo After Before After Before New “craneless” production line Portable crane in use to rotate frame • 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. • Eliminated the use of cranes, improving • Additional improvements will now be productivity, quality and safety based on the established standards • Monthly production levels increased by a • Production increased almost 50% over factor of 4 times within existing two years within the existing manufacturing footprint manufacturing footprint • Inventory turns improved 35% over a two year period to mid-teens
  72. 72. TBS and Global Manufacturing Footprint • Developing shared production campuses in India and China 45 acre site near Chennai India currently under construction Chennai, 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 g • Each campus will house up to 3 Terex shipping segments, leveraging shared capabilities g , gg p 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
  73. 73. TBS and Global Manufacturing Footprint DEVELOPED WORLD DEVELOPING WORLD Improve effectiveness at existing Increase presence in developing locations – applying TBS to countries ti streamline operations Leverage product and cost Rationalize developed market positions globally footprint • Significant progress is underway, but change will require investment g pg y, g q • Balancing opportunity for change with market and other factors
  74. 74. Other Progress • Impossible to cover the amount of improvement underway at Terex in a 30 minute presentations • Parallel progress continues on multiple fronts: pg p Talent Recruitment and Development Diversity and Inclusion y Terex Management Systems implementation Branding/ Marketing/ and Customer Satisfaction Terex Financial Services Global Logistics Global Service d Support Gl b l S i and S t • Positioned to take our performance to the next level
  75. 75. 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 • Progress is significant • 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
  76. 76. Terex Investment Analyst Meeting
  77. 77. Terex Developing Markets September 4, 2008 Steve Filipov President, Terex Developing Markets and Strategic Accounts
  78. 78. Developing Markets Summary • ~$2 2B* of sales were from developing countries growing at ~$2.2B countries, more than 3x our overall growth rate • 4,000 team members operating from more than 30 company and joint venture facilities in developing markets j pg • The Developing Markets Team will enable and drive our continued success • Goal of $4B sales at the end of 2010 * Latest 12 months sales as of Q2 ‘08
  79. 79. What is a is a Developing What developing market? Market? ’06–’07 Growth in GDP/Capita $25k/head (i.e., “development”) 15% “Developing” “Developed” • Low but increasing prosperity High • Increasing 10% Growth construction spending Moderate 5% Growth • Increasing commodityy Low consumption Growth 0% • Conditions favoring ($10) $0 $10 $20 $30 $40 $50 $60 GDP/Capita GDP/C it sustained, long- (i.e., “prosperity”) term growth -5% W. E W Europe N. America NA i ANZ M. East ME t Africa Af i Japan Asia E. Europe S/C America Source: Analysis of data from the Economist eiu; Bubbles represent countries. Bubble size is proportioned to country GDP
  80. 80. What is a is a Developing What developing market? Market? REAL GDP REAL GDP PER CAPITA ($Trillion, ’07) ($000, ‘07) China India Other Asia Russia E. Europe Brazil Other S/C America 2007 2017 Middle East 2027 Southern Africa $0 $2 $4 $6 $8 $10 $12 $0 $5 $10 $15 $20 • China and India are important, but we are at least as bullish on other economies where total GDP is smaller but average wealth is increasing rapidly • Strong potential both within and outside of “BRIC” countries Source: Analysis of data from the Economist eiu; + Terex internal estimates
  81. 81. What is a Developing Market? Shenzhen Source: http://www.tongz.net/life/bulletin.asp Source: http://www.tongz.net/life/bulletin.asp 1992 2007 Source: Source: http://urbancom.blogspot.com/2007_07_01_archive.html http://urbancom.blogspot.com/2007_07_01_archive.html Source: http://urbancom.blogspot.com/2007_07_01_archive.html 2007 2007
  82. 82. What is a Developing Market? Dubai 1990 2007 2003 No attribution – can be found on numerous websites regarding Dubai
  83. 83. What is a Developing Market? Mexico City y ~ 1970 ~ 2007 Source: MEXonline.com® LLC Source: www.wikipedia.com
  84. 84. Long-Term Global Infrastructure Need • W ld t spend World to d >$40T on infrastructure • 65 % will be in developing countries • Opportunity to benefit from this trend and the subsequent building and operating activity that it creates
  85. 85. Terex: Developing Markets Growth to Date DEVELOPING MARKET DEVELOPING MARKET SALES BY BUSINESS ($) SALES GROWTH ($) RBU AWP Africa Construction Middle East S/C America MP&M Russia/ E. Europe Cranes Asia, ex. Japan 2004 2005 2006 2007 2004 2005 2006 2007 Broad Based Global Growth 22% of 2007 sales Strongest In 3 Businesses 42% CAGR 2004 - 2007
  86. 86. Developing Markets - Goal Developed Markets Developing Markets Sales Current Goal 2007 ~$ 2B 2010 $ 4B
  87. 87. Developing Markets – How? Accelerate • Remove roadblocks, accelerate roadblocks progress we are investments, etc. to enable faster growth already making where traction has already been achieved Broaden benefits • Leverage synergies between businesses from the progress to achieve greater overall benefit from we make market progress that is made Establish traction in • Facilitate entry by Terex businesses into high potential but high growth developing markets where we under-penetrated are currently under-represented geographies Pursue “white • Identify and pursue opportunities in space” opportunities developing markets that offer growth that might have been potential but sit outside the domain of missed i d current Terex businesses
  88. 88. Developing Markets: First Steps ‘One Terex’ Strategies • Chi China, India, S/C America, Russia/ E t I di A i R i / Eastern Europe, Africa E Af i Great Talent – Organized to Win • Top talent in key country roles • Local “back-office” Support teams • Clarity of roles and responsibilities Global Network with Local Relevance • Global Supply and Manufacturing, positioned to deliver locally •LLocally d i ll driven b t globally consistent sales, service, and support but l b ll it t l i d t • Terex Financial Services Integrated Execution that leverages the Power of One Company • Visibility from the top • Aligned approach to maximize outcomes
  89. 89. Specifics by Market: China PATH FORWARD IN CHINA • Build-out leadership and support structure – Shared service in Beijing – Local business teams • Strengthen local p g presence in existing high-growth product areas – Construction products – Mining products TEREX TODAY • # 1 in >100 t trucks (2007) – Cranes • # 1 in <100 t trucks (minority position) • Develop emerging opportunities p g g pp • # 3 in truck mounted cranes (JV) – Aerials • # 1 in a small current market for AWPs – Mining Excavators • 5 manufacturing l f t i locations* ti * –Mt il P Materials Processing i * Includes JVs and minority owned facilities; also includes Fantuzzi at Xiamen
  90. 90. Specifics by Market: India PATH FORWARD IN INDIA • Build-out leadership and support structure – Shared service in Delhi – Local business teams • Establish manufacturing and engineering center in Hosur – Materials Processing – Tower Cranes – Technology TEREX TODAY • # 1 in mobile materials processing • Develop distribution and strengthen local alliances • # 4 in backhoe loaders – Vectra distribution • Long sales history in mining ( g y g (trucks) ) – Local partners • Positioning for future growth * Includes JVs and minority owned facilities; also includes Fantuzzi at Xiamen
  91. 91. Hosur, India – Regional Presence
  92. 92. Specifics by Market: South & Central America PATH FORWARD IN SOUTH AND CENTRAL AMERICA • Build-out leadership and support structure – Sao Paulo – Mexico City Continue momentum with “One- Terex” offering concept • Increase local manufacturing content/ presence TEREX TODAY – Porto Allegre g • # 1 in aerial work platforms – Other? • # 1 in asphalt paving • Increase exposure to local centers • Strong recent growth in construction of demand (mining, Panama, …) and mining products
  93. 93. Specifics by Market: Russia/ E. Europe PATH FORWARD IN RUSSIA AND EASTERN EUROPE • Build-out leadership and support Russia structure – Shared service in Moscow – Local business teams • Develop and strengthen local distribution TEREX TODAY • ~$400M in 2007 sales • Access local components – especially for use in W. European • Excellent growth across multiple manufacturing fti businesses (Construction, Cranes, Materials Processing, …) • Develop options around local/ • Primarily succeeding via strong local y g g regional manufacturing distribution
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