EPA Tier 4 / EU Stage IV - Technical OverviewSept 2009

22

• Clean Diesel Exhaust requirements are dramatic

• Technology hurdles to meet the regulations

• Cost to the OEM, Cost to the Rental Channel, Cost to the end user.

Regulatory Background

Tier 1

Tier 2

Tier 3

Tier 4i

Tier 4

0 0.2 0.4 0.6 0.8 1.0 1.2 1.4

2

4

6

8

10

12

14NOx[g/kWh]

PM[g/kWh]

1998 - 2000

2011 - 20132008

2004 - 2005

Pre 1998

2014 - 2015

Particulate Matter (Soot)

NO

x (N

itro

us

Oxi

des

)

33

Technology Solutions

TECHNOLOGY SOLUTION IMPACT

Digital Electronic Engine controls Cost and interface with machine controls

EGR- Exhaust Gas recirculation. The re-combustion of exhaust

Higher heat rejection, Larger cooling system, EGR valve maintenance, oil cooled engine obsolete. Cost.

DPF- Diesel Particulate Filter. Traps soot and periodically burns soot into ash

High exhaust temperature, 5000 hr filter maintenance. Cost.

SCR- Selective Catalyst Reduction. Chemically treats exhaust

Urea (SCR fluid) tank, Urea fluid infrastructure, maintenance. Cost.

Ultra-Low Sulfur Diesel Fuel Available now in US, Canada, Europe, Japan, etc.

Not available in lesser regulated countries (Mexico, Brazil, China, Eastern Europe)

44

• Customers have to fill up with fuel and Diesel Exhaust Fluid (2 separate tanks)

• Probably close to oil change interval.

• Limp home mode.

Special fuel required. Will be an issue outside of US and EU.

Impact of EGR and SCR on End User

Fuel

Larger cooling capacity required

EGR SCR

DEF

Oil-cooled obsolete

55

EGR crossover tube

EGR valve

Crankcase BreatherEGR cooler

EGR New Components

Space consumedMaintenance required

Tier 3 Tier 4

66

DPF + SCR + EGR CoolerDPF Only DPF + EGR Cooler

DPF and SCR Space Requirements

•Engine size and Implementation Schedule affects technology solutions•Larger Engines will require DPF + SCR + EGR•Small engines may only require DPF

•These components must fit in the engine compartment

Urea Tank

77

Timing and Possible Solutions

HP Band Product Year Possible Solutions

>174 Hp Generators 180 - 360 kW 2011 EGR+DPF+SCR

75-173 Hp Generators 70 - 120 kW

Large Telehandlers

2012 EGR+DPF

25-75 Hp

(NA 25-48 only, EU already compliant)

Generators 30 – 50 kW

Light towers

Booms and Scissors

Small Telehandlers

2013 EGR+DPF

>174 Hp Generators 180 - 360 kW 2014 EGR+DPF+SCR+ ???

75-173 Hp Generators 70 - 120 kW

Large Telehandlers

2015 EGR+DPF+SCR

Gasoline engines No requirements

88

Summary

• Tier 4 is a game changing event for off road equipment

• Engine solutions in the future will be much different than today

• Terex is working now to partner with the engine supplier that provides the best overall value proposition.• Performance

• Quality/Reliability

• World wide support

• Emissions Technology

Thank You for your business

1010

3.5/0.19 /3.5 /0.04

Appendix:

EPA Tier 4 Phase-in Time Line – 40CFR 1039.102

1111

3.5/0.19 /3.5 /0.04

Appendix:

EU Stage 4 Phase-in Time Line – Directives 97/68 and 2004/26 EC

EU/ECE Off-Road Diesel Engines Emissions Standards and Phase-in Time LineDirectives 97/68/EC and 2004/26/EC

Market Placement Timetable

kW HP 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

19 - 37 25 - 50

37 - 56 50 - 75

56 - 75 75 - 100

75 - 130 100 - 174

130 - 560 174 - 750

> 560 > 750

Stage I (NOx + HC)/PM

Stage II NOx/PM

Stage IIIA

Stage IIIB Engine power is always greater than, or equal to, the lower bound and strictly less than the upper bound

Stage IV

(7.5)/0.6

(4.0)/0.3

(4.0/0.2)

0.4/0.025

2.0/0.025

(4.7)/0.4(4.7/0.025)

3.3/0.025