Terex Corporation December 21, 2009 Forward Looking Statements The - PowerPoint PPT Presentation

Terex Corporation December 21, 2009

Forward Looking Statements 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 cyclical and weak general economic conditions, particularly in the key industries we serve, may affect the sales of our products and financial results; uncertainties regarding the duration or severity of the current global economic downturn and disruptions in the financial markets; our ability to access the capital markets to raise funds and provide liquidity; our business is sensitive to fluctuations in government spending; our business is very competitive and may be affected by our cost structure, pricing, product initiatives and actions taken by competitors; a material disruption to one of our significant facilities; our retention of key management personnel; the financial condition of suppliers and customers, and their continued access to capital; our ability to obtain parts and components from suppliers on a timely basis at competitive prices; our ability to timely manufacture and deliver products to customers; the need to generate sufficient cash flow to service our debt obligations and comply with restrictive covenants contained in our debt agreements; our business is global and subject to changes in exchange rates between currencies, as well as international politics, particularly in developing markets; the effects of changes in laws and regulations; possible work stoppages and other labor matters; compliance with applicable environmental laws and regulations; litigation and product liability claims and other liabilities; an investigation by the Department of Justice; our implementation of a global enterprise system and its performance; and other factors, risks and uncertainties that are more specifically set forth in our public filings with the Security and Exchange Commission. Actual events or the actual future results of Terex may differ materially from any forward-looking statement due to these 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. 2

Transaction Overview • Divestiture of Terex’s Mining Business Transaction • Bucyrus International, Inc. Buyer Offer • $1,300,000,000 • 100% Cash Consideration • Fully-underwritten commitments • Mid Q1 2010, subject to regulatory filing and approval Anticipated Closing • Hydraulic Mining Shovels, Product Range Included • Electric Drive Mining Trucks, • Tracked and Rotary Blasthole Drills, • Highwall Miner, and • the related parts and service businesses, including the Company-owned distribution locations 3

Transaction Rationale Fair value received, and the Shareholders Benefit capital will be re-deployed Growth will be accelerated, both for those team members in the Mining business as well as Team-members Benefit those who will continue to be a part of Terex Creates a premier mining equipment manufacturer with Customers Benefit global sales and service capabilities 4

Mining in Context of Terex’s Financial Profile (US$ in millions) Net Sales $9,890 $9,138 $7,824 $6,368 $5,238 85.1% 87.6% $3,849 89.1% 88.7% 91.5% 77.4% 14.9% 12.4% 10.9% 11.3% 22.6% 8.5% 04A 05A 06A 07A 08A 09 YTD Operating Profit $961 $863 $727 87.9% 77.0% $390 87.3% $244 86.7% 92.2% NM 13.3% 12.7% 23.0% NM 7.8% 12.1% 2004 2005 2006 2007 2008 2009-YTD Mining Terex (Excluding Mining) Through 2004A-2008A, on average, Mining has accounted for 12% and 14% of consolidated Net Sales and Operating Profit, respectively 5

Mining in Context of Terex’s Financial Profile (US$ in millions) Working Capital $2,218 $2,071 $1,917 $1,418 79.4% 77.8% $1,140 $1,069 79.9% 81.4% 81.1% 84.1% 20.6% 22.2% 20.1% 18.6% 18.9% 15.9% 2004 2005 2006 2007 2009 2009-YTD Mining Terex (Excluding Mining) Through 2004A-2008A, on average, Mining has accounted for approximately 20% of Terex’s working capital investment, as compared with 12% and 14% of consolidated Net Sales and Operating Profit, respectively 6

Balanced Portfolio with Significant Scale 2008 2008, less Mining Materials Processing Materials Processing and Mining 12% 25% Aerial Work Aerial Work Platforms Platforms 24% 28% Cranes 35% Construction Cranes 21% Construction 30% 25% Net Sales: $8.4 billion Net Sales: $9.9 billion 7

Net Sales ($’s in billions) BUSINESS SEGMENT "YESTERDAY" "TODAY" "TOMORROW" * AWP $1.1 - $2.6 $0.85 $1.0 - $2.0 CONSTRUCTION $1.7 - $2.4 $0.95 $1.1 - $1.8 CRANES $1.1 - $2.9 $1.80 $2.2 - $3.6 MATERIALS PROC. $0.4 - $1.0 $0.40 $0.6 - $1.1 TOTAL TEREX $4.3 - $8.7 $4.0 $4.9 - $8.5 * Terex Port Equipment included in Cranes "Tomorrow" category Note: “Yesterday” – 2005-2008 “Today” – 2009 “Tomorrow” – 2010-2013 8

Operating Margin ($’s in billions) BUSINESS SEGMENT "YESTERDAY" "TODAY" "TOMORROW" * AWP 9% - 18% (13%) 0% - 15% CONSTRUCTION (4%) - 5% (24%) (2%) - 8% CRANES 3% - 14% 5% 4% - 13% MATERIALS PROC. 10% - 13% (10%) 2% - 13% TOTAL TEREX 3% - 11% (8%) 0% - 12% * Terex Port Equipment included in Cranes "Tomorrow" category • 20% CAGR • Double the net sales by 2013 EPS of • Consistent with levels • 12% OP margin level $6.00 achieved in the past attainable possible with • 20% ROIC hurdle would • Acquisitions would be no improve financial results incremental acquisitions 9

The Reshaping of Terex We will re-focus Terex Corporation on becoming a leading manufacturer of Machinery and Industrial Products To be a company of highly successful product niches • To build on our leading positions in specialty machinery like AWPs, Crushing and • Screening, Cranes, and Compact Construction Equipment Targeted acquisitions • 20% after-tax ROIC (Year 2 of acquisition and beyond) • #1 or #2 market position in niche machinery and industrial products • We reiterate our Company’s mission, purpose and vision: To be #1 or #2 in any of our businesses, measured by the customer in responsiveness • To have the highest returns on invested capital compared with our competition. • To be the preferred place to work in our industry • We will set out to execute on a set of financial objectives: Double our business in 2013, achieve at least a 12% operating margin, with an after- • tax ROIC level of 20% This transformation will be built upon a foundation of market winning franchises and new investment opportunities 10

Capital Structure Considerations Potential Outcomes Use of Proceeds • Asset sale covenant broadly requires the reinvestment of proceeds or the repayment Sale of Terex Mining of debt • Repayment of debt applied in descending Use of Proceeds order of priority Senior Notes require 2.0x consolidated • cash flow coverage to be able to pay down junior obligations (carveout for 7 Reinvest Pay Down (within 300 3/8% notes) Term Loan days) Payment of notes is required to comply • with the asset sale test if proceeds remain after 360 days Remaining Senior • Reinvestment period of 300 days in bank; Proceeds Notes 360 days in notes • Bank facility permits $200mm of acquisitions each 12 month period from June 2009-June 2010 and June 2010-June 2011 Sub Notes 11

Summary • Terex is repositioning itself to be a leading manufacturer of machinery and industrial products in niche product categories • Focus on internal growth, building on our leading positions in specialty machinery, as the potential to double our net sales by 2013 exists The Best is Yet To Come! 12

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