texanalyst090408

Terex Investment Analyst Meeting

WelcomeWelcomeSeptember 4, 2008

Laura KiernanDirector, Investor Relatons

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: ourmaterially. 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 p y y p g, p 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 ourapplicable 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 orthis 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 understandingprinciples) 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.

Overview and StrategyOverview and StrategySeptember 4, 2008

Ron DeFeoChairman & Chief Executive Officer

Agenda

8:30 – 9:00 Registration and Breakfast9:00 9:30 Opening Remarks and Strategic Overview9:00 – 9:30 Opening Remarks and Strategic Overview9:30 – 10:00 Financial Update

10:00 – 10:30 Operations Overview0 00 0 30 Ope at o s O e e10:30 – 10:45 Break10:45 – 11:15 Developing Markets11:15 – 11:45 Terex Materials Processing and Mining11:45 – 12:45 Luncheon 12 4 1 1 f12:45 – 1:15 Terex Aerial Work Platforms1:15 – 1:45 Terex Construction1:45 – 2:15 Terex Cranes1:45 – 2:15 Terex Cranes2:15 – 2:30 Break2:30 – 3:00 Terex Roadbuilding, Utility Products & Otherg y3:00 – 4:00 Closing Remarks and Q&A

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 thatother customers with value-added offerings that exceed their needs

• To attract the best people by creating a culture that is p p y gsafe, 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)

T b h b l k i i d• To be the best place to work in our industry as determined by our team members

Who is Terex?

• Diversified Portfolio of Equipment Businesses• Positioned for Continuing Long - Term Trendsg g• Leader In Our Categories and Our Industry• Leveraging the Power Of One Company

AERIAL WORK PLATFORMS CRANES MATERIALS PROC.

AND MINING

CONSTRUCTION ROADBUILDING AND UTILITIESUTILITIES

Why Invest?

Diversified Portfolio of Equipment Businesses

Terex sales percentage is based on last twelve months of sales through June 30 2008

Broadest portfolio in the industry

Terex sales percentage is based on last twelve months of sales through June 30, 2008

Why Invest?


Commodity Extraction Building and

IndustrialInfrastructure Construction Residential Operations/

Maintenance

Mining

Matls. Proc.

X

X X

Construction

Roadbuilding

X X X

X X X

X

Utilities

Cranes

XX

X XX XCranes

AWP

X XX X

X X X X

Exposure to Commodity, Construction, and Post - Construction Drivers

Why Invest?


2007 SALES BY GEOGRAPHY2007 SALES BY BUSINESS

RBU

AWP 25%

7%Developing

Markets 25%Construction

21%W. Europe

37%Japan / ANZ 7%

22%

Cranes 24%

MP&M 23%

USA / Canada

34%

$ 9.1 B $ 9.1 B

34%

Balanced by business; Balanced geographically

Why Invest?

Positioned for Continuing Long - Term Trends

WORLD PRIMARY ENERGY DEMAND*

• Beneficial to multiple Terex categories

* Source: International Energy Agency

• Particularly positive for Cranes and Mining

Why Invest?


EXAMPLE: NON-FERROUS METALS EXPLORATION (1989 – 2007), $B*

12

EXPENDITURES BY TOP 40 MINING COMPANIES

$176180200

$5160

OPEX ($B)** CAPEX ($B)**

6

8

10

$75

$95

$125$134 $141

80100120140160180

$28

$37

$51

30

40

50

0

2

4$ 5

020406080

0

10

20

'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

Gl b l ti d i i d t d l l f i t t• Global consumption driving unprecedented levels of investment

• Outlook for mining equipment remains positive and the corresponding industrial growth is a driver for other businessescorresponding industrial growth is a driver for other businesses

* Source: Metals Economics Group; **Source: PWC: “Mine: As Good as it Gets?”, 2008 – capex excludes acquisitions

Why Invest?


$6,000

$7,000

GLOBAL NON-RESIDENTIAL CONSTRUCTION (REAL 2007 $)*

$B

5.6 % $3,500

$4,000

GLOBAL RESIDENTIAL CONSTRUCTION (REAL 2007 $)*

$B

4.4 % CAGR

$3,000

$4,000

$5,000

1.6 % CAGR

CAGR

$1 500

$2,000

$2,500

$3,000

5.1 % CAGR

1.3 % CAGR

5.6 % CAGR

-0.8 % CAGR

$0

$1,000

$2,000

$0

$500

$1,000

$1,500

$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

Infrastructure Industrial Other Non-residential

$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

Total Residential

• Global construction strong, despite weakness in developed markets

• Terex is increasingly well positioned to capitalize with 22% of sales overTerex is increasingly 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 ‘07; 69 countries tracked by GI + 5% to account for rest of world … consistent with global GDP’s

Why Invest?

Leader in Our Categories and Our Industry

$30.4

Terex is one of the Largest Manufacturers of Construction Equipment in the World

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

(1) R t t t l l b f P P d t Fi i d I S i l (6) R t 2007 C t ti i t l f $1 5 billi b d h

Caterpillar (1) Komatsu (2) Terex Deere (5)Hitachi (3) Volvo (4) CNH Global (8) Oshkosh (9)Liebherr (7) JCB (7) Doosan (6)Sandvik (10)

(1) Represents total sales before Power Products, Financing and Insurance Services sales for the 9 months ended March 31, 2008 plus Building Construction Products, EAME Operations, Heavy Construction & Mining and Infrastructure Development sales for the 3 months ended June 30, 2008.

(2) Represents Komatsu’s Construction and Mining Products segment as of March 31, 2008. Exchange rate of 99.691 as of Mar 31, 2008

(3) E h t d f J 30 2008 f USD/JPY 106 18

(6) Represents 2007 Construction equipment sales of $1.5 billion based on exchange rate at December 31, 2007 of KRW/USD 936.07 plus estimated 2007 Bobcat sales of $2.9 billion

(7) Estimated, as these are privately owned companies:JCB: 2007 sales of GBP 2.25 billion converted at Dec 31, 2007 GBP/USD rate of 1.9870Liebherr: 2007 Cranes/Mining/Construction sales of EUR 5.5 billion converted at Dec 31 2007 EUR/USD t f 1 4598(3) Exchange rate used as of June 30, 2008 of USD/JPY 106.18

(4) Represents Volvo’s Construction segment as of June 30, 2008. Rate of USD/SEK 6.0241

(5) Represents Deere’s Construction and Forestry segment as of April 30, 2008

31, 2007 EUR/USD rate of 1.4598(8) Represents CNH Global’s Construction Equipment Segment as of June 30, 2008(9) Represents Access & Concrete Placement equipment sales for the 9 months ended

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

Why Invest?

Leader in Our Categories and Our Industry

Approximately 75% of 2007 sales were generated in markets where Terex has significant market presence

• Articulated boom lifts (top 2)

AERIAL WORK PLATFORMS

• All Terrain Cranes (top 2)

CRANES

• Hydraulic Excavators (top 3)Mi i T k (#3)

MP&M

( p )• Telescopic boom lifts (top 2)• Scissor lifts (top 3)• NA Telehandlers (#2)

• Rough Terrain Cranes (top 3)• Tower Cranes (#3)• Large Crawlers (#1)• Port Cranes (top 2)*

• Mining Trucks (#3)• Surface Drills (# 3)• Crushing & Screening (#1)**• Highwall Miners (#1)

CONSTRUCTION

( p ) g ( )

ROADBUILDING AND UTILITIES

• Compact Track Loaders (#1)• Material Handlers (#2 or 3)

• Front Discharge Mixers (#1)• Insulated Aerials (#2)

UTILITIES

* Including pro forma impact of Fantuzzi acquisition; ** Mobile Equipment

Why Invest?

Leader in Our Categories and Our IndustryLTM After-Tax ROIC-Machinery Industry

• In-line with larger, more vertically

• Better than diversified

integrated competitors

LTM After-Tax ROIC-Diversified Industrialsindustrials 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

Why Invest?

Leveraging the Power of One Company

• Our framework to build a stronger Terex

• Process improvements will assure long term success

Why Invest?


Tom Riordan, President & Chief Operating Officer

Phil Widman Senior Vice President & Chief Financial Officer

Tim Ford, President

Terex AWP

Bob Isaman, President

Terex Construction

Rick Nichols, President

Terex Cranes

Eric Nielsen, President

Terex MP&M

George Ellis, President

Terex RBU

Steve Filipov, President

Developing Markets

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

t & TBSmanagement, & TBS initiatives

15% Working Capital to Sales 22.1% Optimize supply chain planning and execution

“12 by 12 in ’10”is our medium term stretch goalis our medium - term stretch goal

* LTM = Last Twelve Months

Summary

Continue Building a Better Company• Improved capabilities• Improved capabilities• Diverse end market exposure• ROIC focused• 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 sayy• Overcome challenges that are often hard to predict

Supporting Profitable GrowthSupporting Profitable GrowthSeptember 4, 2008

Phil WidmanSenior Vice PresidentChief Financial Officer

Summary

• 5+ years of strong growth, driven by favorable market y g g , yconditions and an increasingly robust portfolio

C itt d t fi i l i i l• Committed to core financial principles Growth with modest debt leverageI d t l di ROICIndustry leading ROICGenerate cash to enable capital investments, targeted acquisitions and share repurchasesacquisitions and share repurchases

• Near term outlook is mixed but long term remains positive

• Improving performance via core business initiatives that will enhance long term resultswill enhance long-term results

Terex to Date:Consistent Sales Growth

Sales growth from 2003 to 2007 was ~90% organic

$10.0$1 0

$1.2

Sales (USD billions) Operating Income (USD billions)

$6 0

$8.0$0.8

$1.0

$4.0

$6.0

$0.4

$0.6

$0.0

$2.0

'94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 Q2$0.0

$0.2

'94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 Q2LTMAcquisitions: Simon

O&KPPM

Powerscreen, CedarapidsReedrill

ASVPowerscreen, CedarapidsFermec

CMI, AtlasSchaeff, Demag, Genie

SHM

ASVHydra

Terex to Date: Balanced Sales Growth

2010 Goal $12BSales (USD billions)

$8 0

$10.0

CAGR 26%

$6.0

$8.0 CAGR 26%

$2.0

$4.0

$0.02002 2003 2004 2005 2006 2007 LTM Q2 2008

Aerial Work Platforms Construction Cranes

Material Processing & Mining Roadbuilding, Utilities & Other

Sales balanced between segments

Terex to Date: Broad-based Profit Growth

$1 2

Operating Income (USD billions) 2010 Goal $1.44B

$1.0

$1.2

$0.6

$0.8 CAGR 82%

$0.2

$0.4

$0.02002 2003 2004 2005 2006 2007 LTM Q2 2008

Aerial Work Platforms Construction Cranes

Material Processing & Mining Roadbuilding, Utilities & Other

Operating income growth outpacing sales growthOperating income growth outpacing sales growthIncreasingly evenly distributed (AWP, MPM, Cranes)

Terex to Date:Growth with Minimal Leverageg

$10 1

$9.1

$10.1

$7 6

Net DebtSales

($ in billions)

$4 8

$6.2

$7.6($ in billions)

$2 0

$2.8

$3.9

$4.8

$1.9 $2.0 $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

Net leverage of .7x in Q2 provides flexibility

Terex to Date: Cash Flow

120

140WORKING CAPITAL DETAIL (DAYS)FREE CASH FLOW ($M)

400

450

60

80

100

120

250

300

350

0

20

40

60

50

100

150

200

0Q4'03

Q1'04

Q2'04

Q3'04

Q4'04

Q1'05

Q2'05

Q3'05

Q4'05

Q1'06

Q2'06

Q3'06

Q4'06

Q1'07

Q2'07

Q3'07

Q4'07

Q1'08

Q2'08

Inventory Days Receivable Days Payable Days

02004 2005 2006 2007 Q2 '08 LTM

• Steady improvement in cash generation, with 2007 shift

l i d b tili ti f t l

• Working capital has remained consistent but presents a i ifi t t it t iexplained by utilization of tax loss

benefits

• Targeting further improvement as

significant opportunity to improve

• Working capital (particularly inventory) can and should

Free Cash Flow is defined as Cash from Operations less Capital Expenditures

g g pour business continues to grow

y)decrease with higher scale and improved processes

Priorities for Cash Utilization

Internal investment• Manufacturing capability / footprint• Human capital• Systems

Value generating acquisitionsValue generating acquisitions• Geographic expansion• Category diversification• Category diversification • Bolt-ons

R t i h t h h ldReturning cash to shareholders• Current program in place• $1.2 billion authorized through June 2009

Terex to Date: Return on Invested Capital

43%50%

40%38%

43%

35%

40%

45%

25%27% 27%

21%25%

30%

35%

Pre-tax ROICf O C

14%

25%

12%

21%

15%

20%

5%After-tax ROIC

10%3%5%

10%

0%2003 2004 2005 2006 2007 Q2 LTM

ROIC growth driven by operating income growth faster than invested capitalg y p g g pRecent 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.

Terex to Date: Shareholder Returns

$161 $183 $173 $150 $143 $129 $100 S&P 500®

$922 $1,177 $1,159 $533 $428 $256 $100 Terex Corp.

Jun-08Dec-07Dec-06Dec-05Dec-04Dec-03Dec-02

$373 $434 $280 $228 $196 $163 $100 Custom Composite Index (8 Stocks)

Current Valuation versus Peer Group

ENTERPRISE VALUE TO EBITDA 16

(Trailing 12 Months)

12

14

8

10 Sector Average 9.1x

4

6

0

2

Terex Manitow oc Oshkosh Astec CNH CAT Deere Joy Bucyrus

Trading well below average industry valuation, despite i i fcontinuing strong performance

Near Term Outlook - 2008

Continuing favorable trends in Cranes and Mining

AWP and Construction anticipating weakness near term• Difficult market conditions in the US

E ft i f t th ti i t d• Europe softening faster than anticipated• Material costs increasing in advance of offsetting pricing actions

2008 l id $10 2 t $10 6 billi2008 sales guidance $10.2 to $10.6 billion

2008 earnings per share guidance:g p 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• 4th quarter: $1.20 to $1.33

All EPS amounts are on a fully diluted basis

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% Optimize supply chain15% Working Capital to Sales 22.1% Optimize supply chain planning and execution

“12 by 12 in ’10”is our medium - term stretch goalg

* LTM = Last Twelve Months

Sales Growth Drivers

Active and relevant in high growth marketsGlobal Market

Doing business efficiently and effectively

Positioned to support product after sale

Global Market Participation

Aligned with local market needs

Delivered at local market price points“Local” Products

Optimized production with global supply chainProducts

Clear product, service, or other advantages in all markets

Value-adding relationships with customers

L i th P f O C

Competitive Differentiation


20% developing and 5% developed world20% developing and 5% developed world growth would achieve ~$12B in 2010

Operating Income Drivers

Ensure Terex is receiving appropriate value for its productsg pp p p

Optimize product mix

Offset rising commodity costs with commensurate pricing actions

Pricing / Mix

Coordinate supply efforts to leverage the scale of TerexSupply

Facilitate common designs and components

Sourcing centers – China and India

pp yManagement

Terex Business System (TBS) & Terex Management System (TMS)

Optimize manufacturing footprintProductivity

Sales and production planning methodology

G l 2 3% i t l iGoal: 2-3% incremental margin

Cash Flow Drivers

Grow Sales

E h P fit bilitProduct Enhance Profitability Product 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

Aggressive inventory management

Capital expenditures to enhance profitable growth

Capital Efficiency

15% working capital / trailing sales by 2010Capex between 1 5% and 2 0% of salesCapex between 1.5% and 2.0% of sales

Cash taxes will approximate tax expense

Enabling Initiative: Terex Financial Services (TFS)

’03 – ’05 ’06 - ’08 ’09 +

Launch Transform ExpandImpact

• Limited • Reflect Terex

Impact

• True Global CaptiveLimited Geography

• Low Coverage & Penetration

Reflect Terex Global Footprint

• Segment Coverage & Penetration

True Global Captive

• Enable Terex Growth Globally

O ti i P t hiPenetration

• Functions Outsourced

& Penetration

• Influence Customer Experience

• Optimize Partnerships

• Expand Customer Touch Pointspe e ce

Protect balance sheet while supporting growth of business, especially in developing markets

TFS: Path Forward

Owning More of the Customer Experience 2010

• Tap into Broader Risk Appetite from Multiple Sources

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

O i i t d• Increase Avenues to Competitive CapitalOriginate

& Sell

Originated

20073rd PartyFunding

2007$1.3B

2004$0.5B

D l Fi

Dealer Finance

Dealer Finance

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 t t Vid V i d D t• Standardized WAN infrastructure to support Video, Voice, and Data

Value-added solutions• Supply Management analytics• Human Resource Standardization

Service Part Demand Planning• Service Part Demand Planning• Customer Relationship Management (CRM)

T M t S t (TMS)Terex Management System (TMS)• Multi-year ERP Implementation• 1/3 of sales addressed by end of 2009• 1/3 of sales addressed by end of 2009• Rest of company to follow

Terex Management Systems: Progress

Legacy Systems ArchitectureLegacy Systems ArchitectureLegacy Systems ArchitectureLegacy Systems ArchitectureLegacy Systems ArchitectureLegacy Systems Architecture Single Integrated System

PRMSKBM

SPCS Avantage

Great PlainsData3

MKDIAPASON

MotherwellMotherwell CoventryCoventry

PRMSKBM

SPCS Avantage

Great PlainsData3

MKDIAPASON

MotherwellMotherwell CoventryCoventry

PRMSKBM

SPCS Avantage

Great PlainsData3

MKDIAPASON

PRMSKBM

SPCS Avantage

Great PlainsData3

MKDIAPASON

MotherwellMotherwell CoventryCoventryMotherwellMotherwell CoventryCoventryMotherwellMotherwell CoventryCoventryMotherwellMotherwell CoventryCoventryMotherwellMotherwell CoventryCoventry

SAP R2SAGE

RedmondRedmond ZweibrZweibrüückencken

SAP R2SAGE

RedmondRedmond ZweibrZweibrüückencken

SAP R2SAGE SAP R2SAGE

RedmondRedmond ZweibrZweibrüückenckenRedmondRedmond ZweibrZweibrüückenckenRedmondRedmond ZweibrZweibrüückenckenRedmondRedmond ZweibrZweibrüückenckenRedmondRedmond ZweibrZweibrüückencken

SAP R3Omnis

PBS

Germiston LangenburgLangenburg

SouthavenSouthaven Brisbane

SAP R3Omnis

PBS



SAP R3Omnis

PBS

SAP R3Omnis

PBS











Coalville

• Complete systems overhaul implementing a single integrated ERP system

SAP R3Fourth Shift AUDITOR

Germiston LangenburgLangenburg SAP R3Fourth Shift AUDITOR

Germiston LangenburgLangenburg SAP R3Fourth Shift AUDITOR

SAP R3Fourth Shift AUDITOR

Germiston LangenburgLangenburgGermiston LangenburgLangenburgGermiston LangenburgLangenburgGermiston LangenburgLangenburgGermiston LangenburgLangenburgCoalville

• Complete systems overhaul - implementing a single, integrated ERP system

• 3 businesses have “gone live” and the pace of implementation is accelerating

• Implementation will enable more effective and efficient business practices

Tax Planning Objectives

36% 36% 35% 34%

40%

EFFECTIVE TAX RATE – TEREX VS. INDUSTRY PEERS (Q2 2008)

35% 34% 33% 33% 32% 31%29% 28%

25% 25%23%25%

30%

35%

TAX STRATEGIES

10%

5%

10%

15%

20% • Traditional Planning and Execution

0%

5%

ASTE OSK DE JOYG TEX BUCY CAT KMT UTX MTW DHR PKI IR ETN

• Statutory Rate Reduction

• Global Expansion and • Reduce effective tax rate in line with leading

industry peers

• Industry minimums only achievable through

Optimization

• Operationally Aligned Tax • Industry-minimums only achievable through aggressive structural change, but meaningful improvement can come through improved

p y gStrategies (OATS)

processes and practices

Tax Strategy

• OATS* can increase simplification, standardization, l bilit d i t T

One Terexscalability and process improvement across Terex.

Total Solution • Proactively integrate business change with operational and legal structures to place earnings in low tax countries.

C h i OATS tl i l tProven Strategy • Comprehensive OATS are currently in place at our 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

Summary

• 5+ years of strong growth, driven by favorable market y g g , yconditions and an increasingly robust portfolio

C itt d t fi i l i i l• Committed to core financial principles Growth with modest debt leverageI d t l di ROICIndustry leading ROICGenerate cash to enable capital investments, targeted acquisitions and share repurchasesacquisitions and share repurchases

• Near term outlook is mixed but long term remains positive

• Improving performance via core business initiatives that will enhance long term resultswill enhance long-term results

Operations OverviewOperations OverviewSeptember 4, 2008

Tom RiordanPresident and Chief Operating Officer

Safety First

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

4.5

Lost Time Days continue to improve

3.5

4.0

2.5

3.0

Tere

xLT

R

1.5

2.0

Jan 07 Jun 08 Dec 08

Operational Update

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

• Integration examplesg

Customer Satisfaction

S l M tSupply Management

New Product Development

Terex Business Systems

• Other progress and path forward

Transformation Underway

• Transitioning from a holding company to an operating company• Upgrading capabilities to drive business and functional performance

OBJECTIVES

E i d l d hi d i t t hGOALS

• Upgrading capabilities to drive business and functional performance

Right Talent

• Experienced leadership, driven to create change

• Resources and mandate required to succeed

Clear Metrics

• Measurements defined and goals established

• Alignment within and across businesses

Good Process

• Well defined and well executed business processes

S t th t bl tiProcess

Res lts

• Systems that enable execution

• Clear, permanent shifts in performanceResults

• Ability to sustain and improve

Progress to Date

AREARight Talent

Clear Metrics

Good Process Results

AREASafety

Human Resources

Talent Metrics Process

Human Resources

Information Technology

Supply Management

Product Development

Manufacturing

M k tiMarketing

Finance/ Financial Services

Distribution/ Logistics

Aftermarket Support

Process Improvement (TBS)

Talent in place – progress underway

Progress Examples

• Customer SatisfactionCustomer Satisfaction

• Supply ManagementSupply Management

• Product Development• Product Development

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

Customer Satisfaction: Objectives

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

P l t P l S l ti M k M J b E iC t D fi d V l“Relationships that I can depend

on to help me ”

People to People SolutionsRelationships that I can depend

on to help me ”“Make it easy for me to run my

business”

Make My Job Easier“Make it easy for me to run my

business”“Deliver highly competitive entry,

operating and exit value”

Customer-Defined Value“Deliver highly competitive entry,

operating and exit value”

• Ensure initial experience with products is positive

CUSTOMER ENABLERS

Ensure initial experience with products is positive

• Improve aftermarket service and support

• Deliver effectively through multiple channelsDistribution/ BranchesRentalDirect

• Build long-term value proposition

Customer Satisfaction: Actions

• Multiple activities in progress to:Understand customer purchase driversMeasure current levels of satisfactionIdentify improvement actions for TerexBuild meaning and value for the Terex brand

• Supporting changes are underway:Product/ offering developmentg pDistribution improvementGlobal aftermarket

• We have a long way to go but, increasingly, we have the right people and processes in place to deliver thethe right people and processes in place to deliver the results we are targeting

Customer Satisfaction Example: Net Promoter Score

METHODOLOGY STATUS

• Piloted in Terex Fuchs in 2007 and extended into company-wide roll-out in 2008

1. Target

2. Listen

√ Current customer list√ Decision makers & key influencers

Conduct survey: √ Core questions√ Approved third party wide roll out in 2008

• Revealing significant opportunities to improve

3. Understand

4. Detractor Follow Ups

√ Approved third party

√ Sr. Management calls detractors

• Revealing opportunities to better position in our markets

Part of an on going process

p

5. Act √ Cross function team action plan meetings√ Determine priorities

6. Communicate √ To customers √ To team members• Part of an on-going process

that will continue in our company

7. Use to secondary number to validate

8. Repeat & monitor

√ Correlate with business results

√ Once a year for relationshipSatisfaction studies

NPS to be implemented in all Terex businesses by mid-2009

Customer Satisfaction Example: Terex Brand of the Future

METHODOLOGY STATUS

• Findings revealed several key insights regarding our customers, our company and our industry

• 1,268 interviews

• Addressed a broad cross section of the our company, and our industry

• Currently using these findings to refine long-term objectives for the

Addressed a broad cross section of the industry

End-users, dealers and rental housesAll b i g j

Terex brand

• Actions are already underway to dd d l i d i

All businessesMultiple geographies

• Sample included owners and non address some underlying drivers of long-term brand value

• Sample included owners and non-owners of Terex equipment

Committed to building a strong brand that d i t f f d tdrives customer preference for our products

Progress Examples





Supply Management: Objectives

Create competitive advantage in the supply chain while minimizing the impact of rising material and component costs

2007 2008 2009 2010

the impact of rising material and component costs

Build the Foundation

Expand the Core

A hi E ll

Establish consistent sourcing processes

Build the Common objectives Achieve Excellenceorganization

Enhance sourcing tool set

Common objectives

International Sourcing Infrastructure

Deeper supplier integrationDrive savings and mitigate inflation

eepe supp e eg a o

TBS initiatives

Continual focus on savings d iti ti t i fl tiand mitigating cost inflation

Supply Management: Priorities

Teams activity engaged in major material cost elements

15%

Expectedaverage savings

Fittings & adaptors

Clamps, ties & strapsPlastic,

polymers& rubber

Valves, hydraulic

Paint & coatingsDocumentation

Other consumables,tools & dispatch kits

15%

Expectedaverage savings

Fittings & adaptors

Clamps, ties & strapsPlastic,

polymers& rubber

Valves, hydraulic

Paint & coatingsDocumentation

Other consumables,tools & dispatch kits

10%

Transmissions,hydrostatic

Pumps & pumpassemblies, hydraulic

Gearboxes& gears

Other hydraulic & pneumatic

componentsOther

electrical & control

components

Cabs, accessories& ropes

Otherhardware

Othermech.

Aluminum

Machined components, steel

Bearings, bushings & accessories

Indirectspend10%

Transmissions,hydrostatic

Pumps & pumpassemblies, hydraulic

Gearboxes& gears

Other hydraulic & pneumatic

componentsOther

electrical & control

components

Cabs, accessories& ropes

Otherhardware

Othermech.

Aluminum

Machined components, steel

Bearings, bushings & accessories

Indirectspend

Motors,hydraulic

Other

Cylinders

components

Hoseassemblies

Fluid transfer& control,

non-hydraulic Fasteners & retainer rings

p

Product identification & labeling

Other structural fabricated components

Controllers, timers, control

Motors,hydraulic

Other

Cylinders

components

Hoseassemblies

Fluid transfer& control,

non-hydraulic Fasteners & retainer rings

p

Product identification & labeling

Other structural fabricated components

Controllers, timers, control

5%

Engine,diesel

Other powerplants, IC engine

Axlespowertrain

Other running gear

Complexassemblies

Tire &wheel

modules & PBC

Steel

Batteries

Castings &forgings

Tires,rubber

Crawler trackassemblies

5%

Engine,diesel

Other powerplants, IC engine

Axlespowertrain

Other running gear

Complexassemblies

Tire &wheel

modules & PBC

Steel

Batteries

Castings &forgings

Tires,rubber

Crawler trackassemblies

0%

High prioritySecond

priorityThird priority

diesel wheelassemblies Weldment,

steel

assemblies

0%

High prioritySecond

priorityThird priority

diesel wheelassemblies Weldment,

steel

assemblies

Size of bubble: Total spend of respective commodity

EasyDifficult Ease of ImplementationSize of bubble: Total spend of respective commodity

EasyDifficult Ease of Implementation

Building a Solid Foundation through Integrated Information Management

COSTeCOSTData warehouse Spending by BU, supplier, commodity, part, etc.

GBTTSTNEW NEW

Terex Sourcing TooleSourcing system used to efficiently manage RFI RFP d R

Global Benefit TrackerDetailed tracking and

l i f i i hNEW

TPTTerex Project Tracker

RFIs, RFPs and Reverse Auctions

analysis of pricing changes

jSystem used by sourcing teams to manage implementation steps following supplier award decisions

Hydraulics Value Engineering

Dramatic cost savings and efficiency improvement achieved by consolidating multiple component suppliers into a single, preferred g p p pp g , psystem supplier. Many similar opportunities currently being evaluated.

Value analysis and supplier consolidation• Value analysis and supplier consolidation

• Annual spending on initial in scope• Annual spending on initial in scope components: $2.6 million

• Savings by sourcing as a complete system: over $1.5 million, 59%

I l t d J l 2008• Implemented July 2008

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.fabricators to produce large fabrications for Terex operations world wide.

• 5-year fixed labor, overhead and profit marginsAdvantage: favorable labor cost environmentAdvantage: favorable labor cost environment

• Linkage to published local Indian steel price index Advantage: favorable Indian steel market dynamicsAdvantage: favorable Indian steel market dynamics

• Local Terex sourcing & SQA presence to support supplierpp pp

One-Terex approach• Build business presence in India• Six initial business units, annual

spend: $16.8 million• Initial annual savings:

$3.1 million

Progress Examples





Product Development: Process

Customer Insights/ Feedback

New Technologies Competitive Benchmarking

New P d t

Ideas for New Products / Product Enhancements

“Doing the Right Things”

• Customer drivenNew Product &

New Product Identification (NPI) method

• Customer driven• Innovative NOT

Inventive• Profitability based

Process Development (NPPD) method

Gate 0 • Cross-functional• Clear upfront

objectives

Profitability basedR

ight

”

objectives• Detailed plans• Progress metrics• Rapid escalation and ng

Thi

ngs

pdecision-making

“Doi

Product Development: Objectives

SITUATION: INCREASING DEMAND

OBJECTIVE: ENHANCE CAPABILITY AND CAPACITY

New GlobalTier 4 Regulations

New Global Markets

Standardization andStandardization and Collaboration

• Powertrain• Electrical & Electronics

H d li

Global R&D Centers

• Hydraulics• MetalsProcess Efficiency

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

Product Development: Status

• VP of Technology added in late 2007

• Launched New Product and Process Development Process in early 2008Process in early 2008

• Roll-out of New Product Identification Process dunderway

• Actively migrating existing product programs toActively migrating existing product programs to new process and new phase-gate discipline

Upgrading engineering and cross functional• Upgrading engineering and cross-functional product development capabilities in parallel

• Realizing clear benefits as we go

Progress Examples





Terex Business System (TBS)

The Terex Business System is our framework to build a stronger Terexto build a stronger Terex

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 flowp

• 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

TBS Operational Diagnostic

• Terex facilities are at various stages of TBS implementation – diagnostic tool will:

Determine progressEnable team member education and developmentProvide a roadmap for deploying TBS conceptso de a oad ap o dep oy g S co cep s

• Provides a consistent framework for measuring improvement over time

TBS: Recent Improvements

TEREX CRANES - WAVERLY, IOWA TEREX UTILITIES – WATERTOWN, SD

• From poorly lit, inventory laden facility to a l t t f t fl ith fl

Before After

• Moving line for Tree Trimmers and TL Mi d M d l Li d i d f i

After After

clean, transparent factory floor with flow and visual controls

• Increased throughput by 4 – 5 x

Mixed Model Line, designed for ergonomic build activity and attached to a moving line

• Parts CartsP t ll d d kitt d i t b ild

• Cut working capital days by 2/3

• Now turning inventory at 11-12 times per year vs 2 3 at the beginning of 2005

– Parts pulled and kitted prior to build– Visual Management for unit status and

identification of part shortages– Carts follow build sequence adding ayear 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%• On-time delivery improved by 50%

TBS: Recent Improvements

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

After Photo

• Implement a factory wide system to

Portable crane in use to rotate frame

Before After Before AfterNew “craneless” production line

• Implement a factory wide system to smooth production levels to standard takt times and implement visual controls

• Redesign of mining truck production line to dramatically increase throughput, on-time delivery and team member safety.

• Additional improvements will now be based on the established standards

• Production increased almost 50% over

• Eliminated the use of cranes, improving productivity, quality and safety

• Monthly production levels increased by a two years within the existing manufacturing footprint

• Inventory turns improved 35% over a two

factor of 4 times within existing manufacturing footprint

Inventory turns improved 35% over a two year period to mid-teens

TBS and Global Manufacturing Footprint

• Developing shared production campuses in India and China

45 acre site near Chennai India currently under construction45 acre site near Chennai, India currently under constructionScheduled to begin producing crushing equipment in early 2009Other products to follow in late 2009/ early 2010

Expansion of existing facility in Tianjin, ChinaWill produce crane and mining componentsProduction begins in 2010

shipping

MINING – PHASE I

g

• Each campus will house up to 3 Terex segments, leveraging shared capabilities MINING PHASE I

MINING – PHASE I I

CRANES

g , g g p

• Designing facilities from the ground-up based on TBS principles

stock

CRANES• Using TBS to plan and execute line moves to replicate successes from other global locations

TBS and Global Manufacturing Footprint

DEVELOPED WORLD DEVELOPING WORLD

Improve effectiveness at existing locations applying TBS to

Increase presence in developing t ilocations – applying TBS to

streamline operations

Rationalize developed market

countries

Leverage product and cost positions globally

footprint

• Significant progress is underway, but change will require investmentg p g y, g q

• Balancing opportunity for change with market and other factors

Other Progress

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

• Parallel progress continues on multiple fronts:p g pTalent Recruitment and DevelopmentDiversity and InclusionyTerex Management Systems implementationBranding/ Marketing/ and Customer Satisfaction Terex Financial ServicesGlobal LogisticsGl b l S i d S tGlobal Service and Support

• Positioned to take our performance to the next level

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

Terex Developing MarketsTerex Developing MarketsSeptember 4, 2008

Steve FilipovPresident, Terex Developing Markets and Strategic AccountsMarkets and Strategic Accounts

Developing Markets Summary

• ~$2 2B* of sales were from developing countries growing at• ~$2.2B of sales were from developing countries, growing at more than 3x our overall growth rate

• 4,000 team members operating from more than 30 company and joint venture facilities in developing marketsj p g

• The Developing Markets Team will enable and drive our• 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

What is a developing market?What is a Developing Market?

15%

’06–’07 Growth in GDP/Capita

(i.e., “development”) $25k/head15% “Developed”“Developing”

• Low but increasing prosperity

10% HighGrowth • Increasing

construction spending

5%Moderate Growth

spending

• Increasing commodity

0%

($10) $0 $10 $20 $30 $40 $50 $60GDP/C it

Low Growth

yconsumption

• Conditions favoring

-5%

GDP/Capita(i.e., “prosperity”)

W E N A i ANZ M E t Af i

sustained, long-term growth

W. Europe N. America ANZJapan Asia E. Europe S/C America

M. East Africa

Source: Analysis of data from the Economist eiu; Bubbles represent countries. Bubble size is proportioned to country GDP

What is a developing market?What is a Developing Market?

REAL GDP ($Trillion, ’07)

REAL GDP PER CAPITA($000, ‘07)

China

India

Other Asia

Russia

E. EuropeE. Europe

Brazil

Other S/C America 2007

$0 $2 $4 $6 $8 $10 $12

Middle East

Southern Africa

2017

2027

$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 rapidlywhere 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

What is a Developing Market? Shenzhen

1992 2007Source: http://www.tongz.net/life/bulletin.asp Source: http://www.tongz.net/life/bulletin.asp

20072007Source: http://urbancom.blogspot.com/2007_07_01_archive.htmlSource:

http://urbancom.blogspot.com/2007_07_01_archive.html

Source: http://urbancom.blogspot.com/2007_07_01_archive.html

What is a Developing Market? Dubai

1990

2007

2003 No attribution – can be found on numerous websites regarding Dubai

What is a Developing Market? Mexico Cityy

~ 1970 ~ 2007Source: MEXonline.com® LLC Source: www.wikipedia.com

Long-Term Global Infrastructure Need

W ld t d• World to spend >$40T on infrastructure

• 65 % will be in developing countries

• Opportunity to benefit from this trend and thetrend and the subsequent building and operating activityoperating activity that it creates

Terex: Developing Markets Growth to Date

DEVELOPING MARKET SALES GROWTH ($)

DEVELOPING MARKET SALES BY BUSINESS ($)SALES GROWTH ($) SALES BY BUSINESS ($)

AWPRBU

Africa

MP&M

Construction

S/C America

Middle East

MP&M

Russia/ E. Europe

2004 2005 2006 2007 2004 2005 2006 2007

CranesAsia, ex. Japan

2004 2005 2006 2007

22% of 2007 sales

2004 2005 2006 2007

Broad Based Global Growth42% CAGR 2004 - 2007 Strongest In 3 Businesses

Developing Markets - Goal

Developed Markets Developing Markets

Current Sales GoalCurrent Sales Goal2007 ~$ 2B 2010 $ 4B

Developing Markets – How?

Accelerate • Remove roadblocks accelerateAccelerate progress we are already making

• Remove roadblocks, accelerate investments, etc. to enable faster growth where traction has already been achieved

Broaden benefits from the progress we make

• Leverage synergies between businesses to achieve greater overall benefit from

we make

Establish traction in high potential but

market progress that is made

• Facilitate entry by Terex businesses intohigh potential but under-penetrated geographies

• Facilitate entry by Terex businesses into high growth developing markets where we are currently under-represented

Pursue “white space” opportunities that might have been

i d

• Identify and pursue opportunities in developing markets that offer growth potential but sit outside the domain ofmissed potential but sit outside the domain of current Terex businesses

Developing Markets: First Steps

‘One Terex’ StrategiesChi I di S/C A i R i / E t E Af i• China, India, S/C America, Russia/ Eastern Europe, Africa

Great Talent – Organized to WinTop talent in key country roles• 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

L ll d i b t l b ll i t t l i d t• Locally driven but globally consistent sales, service, and support• Terex Financial Services

Integrated Execution that leverages the Power of OneIntegrated Execution that leverages the Power of One Company• Visibility from the top• Aligned approach to maximize outcomes

Specifics by Market: China

PATH FORWARD IN CHINA

• Build-out leadership and support structure– Shared service in BeijingShared service in Beijing– Local business teams

• Strengthen local presence in

TEREX TODAY

g pexisting high-growth product areas– Construction products– Mining productsTEREX TODAY

• # 1 in >100 t trucks (2007)• # 1 in <100 t trucks (minority position)

– Mining products– Cranes

• Develop emerging opportunities• # 3 in truck mounted cranes (JV)• # 1 in a small current market for AWPs

5 f t i l ti *

p g g pp– Aerials– Mining Excavators

M t i l P i• 5 manufacturing locations*

* Includes JVs and minority owned facilities; also includes Fantuzzi at Xiamen

– Materials Processing

Specifics by Market: India

PATH FORWARD IN INDIA

• Build-out leadership and support structure– Shared service in Delhi– Shared service in Delhi– Local business teams

• Establish manufacturing andEstablish manufacturing and engineering center in Hosur– Materials Processing

Tower Cranes

TEREX TODAY• # 1 in mobile materials processing

– Tower Cranes– Technology

• Develop distribution and• # 1 in mobile materials processing• # 4 in backhoe loaders• Long sales history in mining (trucks)

• Develop distribution and strengthen local alliances– Vectra distributiong y g ( )

• Positioning for future growth

* Includes JVs and minority owned facilities; also includes Fantuzzi at Xiamen

– Local partners

Hosur, India – Regional Presence

Specifics by Market: South & Central America

PATH FORWARD IN SOUTH AND CENTRAL AMERICAAND CENTRAL AMERICA

• Build-out leadership and support structurestructure– Sao Paulo– Mexico City

Continue momentum with “One-Terex” offering concept

TEREX TODAY

• Increase local manufacturing content/ presence – Porto Allegre

• # 1 in aerial work platforms

• # 1 in asphalt paving

Strong recent growth in construction

g– Other?

• Increase exposure to local centers • Strong recent growth in construction

and mining productsof demand (mining, Panama, …)

Specifics by Market: Russia/ E. Europe

PATH FORWARD IN

Russia

RUSSIA AND EASTERN EUROPE

• Build-out leadership and support structure– Shared service in Moscow– Local business teams

TEREX TODAY

• Develop and strengthen local distribution

TEREX TODAY• ~$400M in 2007 sales• Excellent growth across multiple

• Access local components –especially for use in W. European

f t ibusinesses (Construction, Cranes, Materials Processing, …)

• Primarily succeeding via strong local

manufacturing

• Develop options around local/ regional manufacturingy g g

distributionregional manufacturing

Developing Markets Summary

• ~$2 2B* of sales were from developing countries growing at• ~$2.2B of sales were from developing countries, growing at more than 3x our overall growth rate

• 4,000 team members operating from more than 30 company and joint venture facilities in developing marketsj p g

• The Developing Markets Team will enable and drive our• 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

Terex Materials Processing & MiningTerex Materials Processing & MiningSeptember 4, 2008

Eric NielsenPresident, Terex MP&M

Terex MP&M in Summary

• $2.4 B* provider of surface mining and aggregate p g gg gequipment solutions sold to mining, quarrying, and construction customers worldwide

• Capitalizing on continuing favorable trends in global commodity and aggregate demand

• Addressing constraints globally while investing in people and capabilities that improve the customer experienceand capabilities that improve the customer experience

• Well positioned to deliver excellent value to Terex shareholders in the years to comeshareholders in the years to come

* Last 12 months through June 30, 2008

MP&M: Products

Mining Trucks

Surface Mining Drills

Highwall Miners

Mining Excavators

# 3Top 3 # 1Top 3

Parts/Mobile Materials Static Materials Parts/ Tools

Mobile Materials Processing

Static Materials Processing

High Margin# 1 Technology

MP&M: Mix

PRODUCT MIX ($) GEOGRAPHIC MIX ($)

29% 35%58%

47%

22%

15%21%

13%

58%

34% 25%

19%

29% 27%

13% 13%

2004 2008 Q2 YTD

D l i M k t

2004 2008 Q2 YTD

Developing MarketsJapan / ANZW. EuropeUSA / Canada

Materials ProcessingDrills/ OtherTrucksShovels

MP&M: Growth

MP&M RESULTS$B

$2 0

$2.5

25%

30%

$B

• Sales up 31% since (C G )

$1.5

$2.0

15%

20%

25% 2004 (CAGR)• Operating Profit up

51% (CAGR)

$0.5

$1.0

5%

10%

15% 51% (CAGR)• Robust demand for

mining and

$0.02004 2005 2006 2007 Q2 '08

0%

5%quarrying

(ltm)

Sales Gross Margin Op. Margin

MP&M: Market Environment in Mining

120REAL IRON ORE PRICES SINCE 1900 (’07 $/TON)

1983 45005000

REAL ALUMINUM PRICES SINCE 1900 (’07 $/TON) 14000

REAL COPPER PRICES SINCE 1900 (’07 $/TON)

60

80

1001983

Reagan steel tariffs

200025003000350040004500

6000

8000

10000

12000

Omitted aluminum pre WWII

0

20

40

898

908

918

928

938

948

958

968

978

988

998

008

0500

10001500

898

908

918

928

938

948

958

968

978

988

998

008

0

2000

4000

898

908

918

928

938

948

958

968

978

988

998

008

pre-WWII

18 19 19 19 19 19 19 19 19 19 19 20 18 19 19 19 19 19 19 19 19 19 19 20 18 19 19 19 19 19 19 19 19 19 19 20

140016001800

REAL GOLD PRICES SINCE 1900 (’07 $/troy oz)

50

60REAL SILVER PRICES

SINCE 1900 (’07 $/troy oz)

400600800

10001200

20

30

40

0200400

1898

1908

1918

1928

1938

1948

1958

1968

1978

1988

1998

2008

0

10

1898

1908

1918

1928

1938

1948

1958

1968

1978

1988

1998

2008

GDP growth in developing markets driving price growthSource: Analysis of USGS Historical Statistics for Mineral and Material Commodities

MP&M: Market Environment

$7 000

GLOBAL NON-RESIDENTIAL CONSTRUCTION (REAL 2007 $)*

$B$4 000

GLOBAL RESIDENTIAL CONSTRUCTION (REAL 2007 $)*

$B

$5,000

$6,000

$7,000 CONSTRUCTION (REAL 2007 $)

5.6 % CAGR

$2 500

$3,000

$3,500

$4,000 CONSTRUCTION (REAL 2007 $)

5.6 %

-0.8 % CAGR

4.4 % CAGR

$2,000

$3,000

$4,0001.6 % CAGR

$1 000

$1,500

$2,000

$2,5005.1 % CAGR

1.3 % CAGR

CAGR

$0

$1,000

'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$0

$500

$1,000

'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 growth in construction continues, despite weakness in US• Construction driving high need for quarrying and aggregates

Fl ibili f bil i i i i l l d

Source: Global Insights, July ‘07; *69 countries tracked by GI + 5% to account for rest of world … consistent with global GDP’s

• Flexibility of mobile equipment is increasingly valued

MP&M: Outlook

• Underlying drivers for global mining and aggregate demand y g g g gg gare intact and are likely to continue

Developing markets driving increased global demand p g g gDemand driving increased investment and activityExpanding need for equipmentExpanding need for equipment

• Competition will intensify, but we are well positioned to p y pcapitalize on strong global markets

Strong product franchisesg pQuality of global distributionImproving aftermarket capabilitiesImproving aftermarket capabilities

MP&M: Strategy

K f h h 2010Key focus areas through 2010

1 N P d t I t d ti1. New Product Introductions

2 Strength/ Consistency of Global2. Strength/ Consistency of Global Distribution, Service and Support

3. Globally Optimized Footprint & Cost Structure

4. Leveraging our Portfolio of Businesses

MP&M: New Product Introductions

MT 6300 SK-LElectric Drive

• Increased focus on electric drive

t t l

• Ultra-capacity truck (400 t)

• Large capacity drill to complement large h l d h lexcavators to lower

fuel cost

• New markets for

• Built with Terex-designed drive system

haul and shovel products

• Electric drive option• New markets for large excavators

• Work in progress on

system

• Trucks in operation in Australia and

• Electric drive option to lower fuel cost

• Work in progress onWork in progress on automation Canada

Work in progress on automation

MP&M: New Product Introductions

XA 750 984 SCREEN

• Large Crusher, capable of producing 800 tons per hour

• Large capacity mobile horizontal screen

XA 750 984 SCREEN

p g p

• Targeting large quarries and small mines

• Designed to work in conjunction with higher output

hi l t t fsmall mines

• Market launch scheduled for October/ November 2008

crushing plant as part of a “mobile system”

• Target customers will be largeOctober/ November 2008 • Target customers will be large quarries and mines

MP&M: Distribution, Service, and Support Prioritiespp

OBJECTIVES Installed base continues to growOBJECTIVES• Strengthen Global Distribution

– Increased standards

Installed base continues to grow, driving aftermarket service

opportunities

EXAMPLE: HYDRAULIC– Renewal of distribution capabilities – Improved support for larger, more

sophisticated customers

EXAMPLE: HYDRAULIC EXCAVATOR INSTALLED BASE

p– Extend into new geographies

• Greater Aftermarket Participation– Improve aftermarket capabilities

internally and in the channel– Increase perceived value for Terex

branded parts & service– Add/improve maintenance & service

capabilities2002 2003 2004 2005 2006 2007

MP&M: Manufacturing Footprint

Crushing and Crushing and Screening

Products, UK

New FactoryExcavators

ExcavatorsGermany

Drills, Crushing and Screening

Equipments, USA

Mining TrucksAcuna, Mexico

Tianjin, China

New FactoryCrushing andCrushing and

Screening Products

Hosur, India

• Adding footprint in India (Materials Processing)• Adding footprint in India (Materials Processing)• Adding small excavator capability in China (Mining)• Evaluating acquisitions to accelerate global progress

MP&M: Portfolio Leverage

Large MinesQuarries/ Small MinesRoadbuilding and Construction ContractorsSegment:

MP&M Mobile Materials ProcessingMP&M Offering:

g

Static Materials Processing

Shovels and Trucks

Drills/ Drilling Tools

Other Tere Construction EquipmentOther Terex Offerings:

Construction Equipment

Rigid and Articulating Trucks

• Potential synergy within MP&M and across Terex• Developing approaches to strategic accounts that• Developing approaches to strategic accounts that

provide value from a portfolio offering

Terex MP&M in Summary

• $2.4 B* provider of surface mining and aggregate p g gg gequipment solutions sold to mining, quarrying, and construction customers worldwide

• Capitalizing on continuing favorable trends in global commodity and aggregate demand

• Addressing constraints globally while investing in people and capabilities that improve the customer experienceand capabilities that improve the customer experience

• Well positioned to deliver excellent value to Terex shareholders in the years to comeshareholders in the years to come


Terex Aerial Work PlatformsTerex Aerial Work PlatformsSeptember 4, 2008

Tim FordPresident, Terex AWP

AWP: Summary

• $2.3B* supplier of aerial booms, scissor lifts, and other $2.3B supplier of aerial booms, scissor lifts, and other products

Well recognized brands and productsStrong industry reputation

• Short term challenges exist – but the industry is better positioned than in previous cycles

• Long-term aerial work platform growth fundamentals remain strongstrong

• We are building a more diverse business to win globally• We are building a more diverse business to win globally


AWP: Products

Booms ScissorsPower & Other

ProductsTelehandlers & Portables

Growth Potential

GlobalLeader

StrongPosition

Growth Potential

AWP: Mix

PRODUCT MIX ($) GEOGRAPHIC MIX ($)8%5%

21% 29%

6% 4%8%5%

19%13%

9%29%

16%

68% 59%39%

56%

19%

2004 2008 Q2 YTD

39%

2004 2008 Q2 YTD

Developing MarketsJapan / ANZW. Europe

Portable, Power & OtherTelehandlersScissors

USA / CanadaBooms

• Less dependence on North America• Growth propelled by Booms and Scissors

• Growth in Western Europe and Developing Markets

Scissors• Telehandlers and Power Products

represent growth potential

AWP: Growth

AWP RESULTS$B

$2 0

$2.5

25%

30%

$B

• Sales up 30% since 2004 (CAGR)

$1.5

$2.0

15%

20%2004 (CAGR)

• Operating Profit up 48% (CAGR)

$0.5

$1.0

5%

10%48% (CAGR)

• 18.6 % Operating M i Q2 2008

$0.02004 2005 2006 2007 Q2 '08

(ltm)

0%Margin Q2 2008

(ltm)


AWP: Market Environment

U.S. near term construction market is challenging…

ARCHITECT BILLING INDEX

BUSINESS CAPITAL SPENDING CYCLE

AWP: Market Environment

• Near term weakness in North A i d W t EAmerica and Western Europe

2H08 and 1H09 rental cap ex to be down 15% - 30%Recovery beginning in 2H09Recovery beginning in 2H09

• No signs of weakness in Developing Markets

L ti A i i tLatin America remains strongAsia Pacific orders strengtheningEastern Europe, Middle East continue to growto grow

• Manufacturers responsibly reducing production

• Customers recognize need for manufacturers to raise prices

…But long term outlook is promising

AWP: Rental Industry Fleet

Large rental companies getting bigger…

• Top 50 rental companies are growing organically and

TOP 50 RENTAL COMPANY AERIAL FLEET SIZE *(Units)

growing organically and through acquisition

• Large fleets being managed176446400000

500000

332700

402900

446956

• Large fleets being managed with more discipline

• Growth cap ex likely to be81011 95096

151200

124942

200000

300000 266511 283071

332700

Growth cap ex likely to be reduced in the near term

• Replacement cap ex required 185500 187975 207758

251700 270510

100000

p p qto mitigate fleet aging 0

2004 2005 2006 2007 2008

Top 10 Next 40

* Source: Access International…Industry fleet management improving

AWP: What’s Different

Aerials industry has matured in this decade…

2000 – 2002 20084 5 j f t• 25+ manufacturers

• Little rental channel consolidation

• 4 – 5 major manufacturers

• 5 – 10 strong rental leaders in each region

• Largely a U.S. market

• Younger fleet age on average

N li ti

• Accelerating demand in new markets

• Broadening base of applications• Narrow application usage

• Weak fleet management practices

• Inconsistent purchasing behaviors

• Sophisticated fleet management

• More predictable purchasing b h i• Inconsistent purchasing behaviors behavior

More favorable industry structure

AWP: Vision

O i i i t b th tO i i i t b th tOur vision is to be the mostOur vision is to be the most

global trusted and responsiveglobal trusted and responsiveglobal, trusted and responsive,global, trusted and responsive,local solutions providerlocal solutions providerlocal solutions providerlocal solutions provider

in the access industry.in the access industry.yy

AWP: Strategy

Strengthen E t d i l High growthStrengthen and globalize our core business

Maximize the installed base

Extend aerial offering and channel penetration

High growth, high margin

contributor to 12 X 12 in ‘10business penetration 12 X 12 in 10

• Manage cost structure• Globalize

• Grow existing aftermarket business

• New “work at height” offerings

• More global enterprise• More diverse revenue

Terex Business System

• Globalize manufacturing and supply chain

• Extend global sales and service reach

aftermarket business• Expand services

business• Secure business

through TFS

offerings• “Non-aerial”

products for rental• Add new distribution

h l

• More diverse revenue profile

• Increased share of rental wallet

and service reach• Improve IT capability

through TFS channels • Continued industry leader in terms of revenues and returns

Strengthen the core, globalize the business and diversify the revenue

AWP: Terex Business System

Lean with CustomersTEREXLIFT ITALY Z-45

Lean with Customersfor deeper

relationships

Lean with Suppliersfor better cost

and quality Before After

Lean forAdministrative Processesdelivers better efficiency

• Approximately 1500 participants in over 170 TIP events

• Administrative Kaizen focus on forecast to cash;

Lean in Manufacturingfor lower costs and

• Administrative Kaizen focus on forecast–to-cash; over 10 TIP events run in support of the effort

• Japan Study Missions for continued developmentfor lower costs and

better working capitalNearly 100 Team Members sent over past two years

AWP Executive leadership participating end of September

AWP: Globalizing Manufacturing

EUROPE CHANGZHOU, CHINA

• Plans announced in April• Boom production in Italy in 2007

Scissor production in UK in 2007;• Operational mid next year

• Full product line over time

• Scissor production in UK in 2007; second line later this year

• Eastern European facility selection p

• Domestic consumption and exportprocess underway

AWP: Developing Markets

AWP resources deployed to capitalize on emerging opportunitiesopportunities…

MIDDLE EAST LATIN AMERICA CHINA

• Substantial construction investment in region

• Buoyant economic growth in South and Central

• Growing market beginning to adopt aerialsinvestment in region

• Team deployed since early 2007

• Dubai service center

in South and Central America

• Team deployed since 1999

• “One Terex” sales

to adopt aerials

• Team deployed since 1998

• Adding engineering and sourcingDubai service center One Terex sales

approach

• Brazil service center

sourcing

V l iti f “ f t d d ti it ”Value proposition of “safety and productivity” translates around the world…

AWP: Genie Fleet Growth

• 250% increase in Booms; 400% increase in ScissorsFl i d f “fi lif ”• Fleet nearing end of “first life”

• Customers seeking refurbishment and maintenance solutions

600

700

SALES GROWTH SINCE 2002 (Indexed)

Before

300

400

500

600

0

100

200

300

After02002 2003 2004 2005 2006 2007

Scissors Booms

S l h d d illi d ll l b lSeveral hundred million dollar global opportunity with attractive margins

AWP: Beyond Aerials

AWP products represent 23% of rental customer capital expenditurescapital expenditures….. Cross Selling Opportunities

• Utility equipmentB kh l d

Other Products

Current AWP

• Backhoe loaders• Compact track loaders• And more …

Other Products

Compact Equipment

Big Dirt

P t f t th t tPresent one face to the customer to more deeply penetrate the rental channel

AWP: Near Term Agenda

Several initiatives to drive continued performance…

• Align cost with volume• TBS investment

1. Continued cost reduction

• Product line rationalization• Strategic sourcing

2. Strengthen value proposition

• Strengthen sales leadership• Improve financial services offering• Improve parts performance and aftermarket capability

3. Globalize

p p p p y

• Local management teamsinfrastructure • Global sales, service and manufacturing

• Information systems

Terex AWP in Summary

• Leading position in key products and room to grow in• Leading position in key products and room to grow in others

M t i d t ill t h t t• More mature industry will prevent short term challenges from becoming a long term problem

• Value proposition translates around the world and developing markets are adopting aerials

• Focused management team in place to execute through near term challenges and deliver on longthrough near term challenges and deliver on long term strategy

Terex ConstructionTerex ConstructionSeptember 4, 2008

Robert IsamanPresident, Terex Construction

Terex Construction in Summary

• $1.9 B* provider of construction-related equipment

• On-going operations and market-based transformation during a period of weakness in traditional core geographiesp g g p

• Near term performance is challenging but long-term potential has never been higherhas never been higher• Recent addition of ASV furthers an already strong growth platform

in compact• High growth in scrap, quarries, and other segments where Terex

products create unique value• Continuing opportunity to change the game in more crowded, heavyContinuing opportunity to change the game in more crowded, heavy

equipment categories

• Positioning Terex for segment and geographic leadership asPositioning Terex for segment and geographic leadership as conditions improve over the coming 2-3 years


Construction: Products

CompactEquipment

HeavyEquipment

Material Handling

Off-RoadTrucks

1 of 4GlobalGrowth

Robust Portfolio

Filling Gaps

Construction: Mix


13% 20%1%

1%19%

28%17%

65%63%17% 28%

13%19%

21% 16%

42% 36%

2004 2008 Q2 YTD

D l i M k t

2004 2008 Q2 YTD


TrucksMaterial HandlingHeavyCompact

Construction: Growth

CONSTRUCTION RESULTS$B

$2.025%

30%

$B

• Sales up 14% since 2004 (CAGR)

$1.5

15%

20%

25%

• US and W. Europe soft, but global

th lid

$0.5

$1.0

5%

10%

15% growth solid

• Strengthening/ improving

$0.02004 2005 2006 2007 Q2 '08

0%

5% improving performance in advance of recovery

(ltm)


Construction: Market Environment

• Demand weakerCore Geographies Soft• Volume and material costs impacting

margin

• Excellent growth in Eastern Europe, Africa, and other developing geographies

• China, India, and South America are

Developing Geographies Strong

continuing opportunities

• Dollar appreciating, but denomination in Currency Improving but Euro is a continuing disadvantage

• Global Footprint criticalStill a Barrier

• Consolidation likely in a down market and global opportunities continue

• Focused on step-change transactions versus

Opportunities to accelerate via partnerships and/or acquisitions Focused on step change transactions versus

small bolt-ons that bring breadth vs. depthacquisitions

Construction: Strategy

Three phase path toward achieving full potential…

Optimize the profitability Build around the strongest and most

Build-out long-term through

21 3

Roll out winningDevelop and expandFix the overall cost

p p yof the current portfolio

strongest and most attractive businesses

ga repeatable

system

• Roll-out winning models organically across best markets

Evaluate and pursue

• Develop and expand winning, repeatable business model for our strongest

• Fix the overall cost and asset structure

• Implement redesigned business • Evaluate and pursue

focused M&A targets that leverage and enhance our best

our strongest markets

• Evaluate a disruptive business model in

redesigned business processes

• Focus investments d d i d enhance our best

geographic, product, and customer segments

business model in attractive markets areas where you are weaker/not present

and redesign around stronger/attractive markets and products

todayproducts

Construction Programs

Program Activity in Progress

Operations Improvement

d I t ti

• Improve existing manufacturing • Globalize and rationalize footprint

and Integration

Channel M t

• “3 Crown” dealer standards

Local Product Repeatable customer oriented approaches

Management • Integrate and upgrade network

Local Product Density

• Repeatable, customer-oriented approaches • Increase product densities to enable efficient support

Global Growth • Build-out presence in India and China• Continue growth in other developing markets• One-stop shopping where current presence is limited

Operations Improvement Example

MOTHERWELL, SCOTLAND – ARTICULATED AND RIGID TRUCKS

f f fBefore After After

• Integration of TA30 and TA40 articulated truck lines into a single, mixed model line

• Cycle times reduced by 38%• Lead time reduced by 20 – 30%y• Released $750k of work in process inventory

Operations Integration Plan

40 % of Total40 % of TotalManufacturing

Footprint

EMEA

30 % of TotalManufacturing

Footprint

Americas Asia30 % of Total

Manufacturing Footprint

Sourcing

Manufacturing

Engineering

Channel Management Progress

3 Crown: Measuring Dealer Performance/ Implementing Best/ Improving Capabilities

Dealer Capabilities include…•Staffing

Best/ Improving Capabilities

•Staffing•Training•Marketing•Service Infrastructure•Parts Infrastructure

3 Crown

•Parts Infrastructure•Business Management•Facility

Performance Metrics include…• Market Share• Customer satisfaction

Number of Terex lines carried

2 Crown

• Number of Terex lines carried• Parts sales• Equipment sales• Year over year growth

Utilization of Terex Financial Services

1 Crown

0 Crown • Utilization of Terex Financial Services• Rental

0 Crown“Qualifying”

I ti d d l i h l• Investing and developing our channel• Enabling partners to further drive our business

Local Density Objective and Progress

Customer Value Propositionp

• We will “never leave a customer with a problem”

We will drive down the• We will drive down the total lifecycle cost of ownership

Focusing on building• Focusing on building products that increase jobsite productivity

B ild l l hi l ti ffi i t t tt t d d lBuild local machine population sufficient to attract good dealers

Emerging Markets UpdateGlobal Growth

Emerging markets helping to sustain business as g g gdeveloped markets soften.

R ssia/South Africa China India Latin America

• Largest • Significant heavy • Strengthening • Commodities,

Russia/ Eastern Europe

• Transition of developing country for Terex Construction

g yequipment market with opportunities to penetrate

position in backhoes

• Opportunity to

energy, and infrastructure-driven growth

Eastern European economies

Construction

• Promising future outlook

penetrate

• Emerging opportunities in

t

pp ypenetrate in other categories as strong market growth

• Large, multi-year projects in pipeline (e.g., Panama)

• Affinity for Western European products compact market growth

continuesPanama) products

• Excellent growth to date

Terex Construction in Summary

• $1.9 B* provider of construction-related equipment

• On-going operations and market-based transformation during a period of weakness in traditional core geographies

• Near term performance is challenging but long-term potential has never been higherg

Recent addition of ASV furthers an already strong growth platform in compactHi h th i i d th t h THigh growth in scrap, quarries, and other segments where Terex products create unique valueContinuing opportunity to change the game in more crowded, heavy g pp y g g yequipment categories

• Positioning Terex for segment and geographic leadership as g g g g p pconditions improve over the coming 2-3 years


Terex CranesTerex CranesSeptember 4, 2008

Steve FilipovPresident, Terex Developing Markets

Terex Cranes in Summary

• $2.6B* provider of mobile cranes, crawler cranes, and tower $ p , ,cranes sold through dealers and rental houses worldwide

• Benefitting from strong demand for energy, infrastructure, and industrial projects worldwide

• Generating excellent returns via well managed mix and pricing and via targeted productivity improvements in some g g ysegments of the business

W ll iti d i ti i t k t hil• Well positioned in a continuing strong market, while protecting the downside through investment discipline and through increased diversification of the portfoliog p


Cranes: Broad Product Portfolio

All Terrain Cranes

Crawler Cranes

Rough Terrain Cranes

Truck Cranes

# 2Large

it # 3 # 3

Tower Cranes

# 2 capacity leader

Boom

# 3

Pick & Carry Reach

# 3

Cranes Trucks Cranes (AU) Stackers

# 3 # 2 # 1 # 2*

* Including Fantuzzi

Fantuzzi: Diversity & Growth Opportunities

Ship To Shore Straddle Carrier Rail / Rubber Tire Gantry

Mobile Harbor CraneFixed Mast Container Handler Reach Stacker

$• World’s Number 2 in Port Cranes; 2007 sales of $650M • Market, geographic, and product diversification for Terex

Cranes: Mix

PRODUCT MIX* ($) GEOGRAPHIC MIX* ($)

6%7%

17%27%

15%6%

20%

11% 15%6% 3%

55% 40%

7%15%

15%

20%

22% 25%

62%47%

2004 2008 Q2 YTD

Developing Markets

2004 2008 Q2 YTD

Stackers Developing MarketsJapan / ANZW. EuropeUSA / Canada

StackersTowersCrawlersOther MobileATC / RT

Balanced and broad portfolio* Excluding Fantuzzi

Profitable Growth

CRANES RESULTS*$B

$2.525%

30%

$B

• Sales up 29%

$1.5

$2.0

15%

20%

25%(CAGR) since 2004

• Operating Income

$0.5

$1.0

5%

10%

15%up 92% (CAGR)

• Continuing strong

$0.0

$0.5

2004 2005 2006 2007 Q2 '080%

5%outlook

(ltm)


* Excluding Fantuzzi

Cranes: Energy Applications

WORLD WIND PENETRATION

ALTERNATIVESGl b l Wi d P

T ® D

PENETRATIONProjected Wind Consumption as % of Energy Consumption

Global Wind Power Opportunity**

20%22%

on ptio

n

Terex® Demag

CC 2800-1 NT

10%12%14%16%18%

Win

d G

ener

atio

ricity

Con

sum

p

Approximate Wind Penetration, end of 2007

Approximate Wind Penetration, end of 2006

0%2%4%6%8%

Proj

ecte

d W

as %

of E

lect

r

1981 1985 1990 1996 1999 2000 2005 2008 rotor diameter (in meters) 10 17 27 40 50 71 104 120 rated capacity (in kilowatts) 25 100 225 550 750 1,650 3,600 5,000

Den

mar

kSp

ain

Port

ugal

Irela

ndG

erm

any

Gre

ece

Net

herla

nds

Aus

tria

Indi

aU

KIta

lySw

eden

U.S

.Fr

ance

Aus

tral

iaC

anad

aN

orw

ayC

hina

Ja

pan

Bra

zil

TOTA

L

Source: Berkeley Lab estimates based on data from BTM Consult and elsewhere

Product applications: Crawler cranes and All-terrain cranes

Opportunity: Installation and maintenance

* Analysis of data from Oil and Gas Journal, ** AWEA 2007

Cranes: Construction Applications

INFRASTRUCTURE GENERAL CONSTRUCTION

• World to invest >$40T in infrastructure between now and 2030*

• Every dollar of infrastructure creates several dollars of subsequentEvery dollar of infrastructure creates several dollars of subsequent construction activity

• Continuing opportunity across all categories of construction, with Terex iti d t ti i t i i t ll lifti li tipositioned to participate in virtually every lifting application

* Booz Allen & Hamilton: “Lights!, Water!, Motion!”, Strategy and Business: Spring 2007

Cranes: Market Environment

Robust demand continues across most categoriesg

ChallengesStrained capacity• Strained capacity

• Continuing but easing supply constraints• High backlogsHigh backlogs• ‘Low spec’ products from China & India

O t itiOpportunities• Market shift to greater lifting capacity

Growing demand for ‘higher spec’ cranes from developing• Growing demand for higher spec cranes from developing markets

• Differentiate on product and global supportp g pp

Outlook: Remains solid

Cyclical Industry but mid-term outlook is bright

Product & geographic diversity helps mitigate specific market slow-downsmarket slow downs

End Market Strength• Energy demand remains a major driver • Repair/maintenance, population growth and rising

incomes driving infrastructure needs • Global non-residential construction outlook remains

strong - growth forecast 5-7% for next 8–10 years

Excellent time to be in the crane business!

Cranes: Strategy

• One TeamStrengthen

One Team• Shared Objectives• Common Approach• Common Approach

New Products• New Products• New Markets

I d Aft k t

Grow• Increased Aftermarket

• New Applications• Less dependent on the “crane cycle”

DiversifyLess dependent on the crane cycle

Cranes: Strengthen

More from our Facilities More from our Team Members

• Integrated, single business structure

• Factory-led organizations

TEREX CRANES - WAVERLY, IOWA NEW TALENT/ NEW STRUCTURE

• Targeted functional adds (marketing, manufacturing, …)

• Operating as one b i l b ll

g• Isolated functional

capabilities• Little sharing across

businesses in the business globallygroup

• Tripled factory throughput in 2 years, without major capital investment • Global product-management structure

that cuts across legacy businesses and

Before AfterBefore After

• Cut working capital days by 60%

• Turning inventory at 11-12 times per year vs 2-3 at Q1 2005

that cuts across legacy businesses and drives operation as One Terex

• Adding talent to drive best practices in marketing engineering and businessyear vs. 2 3 at Q1 2005

• Resources allocated to Germany to drive similar improvements in All Terrain and Crawler production

marketing, engineering, and business process improvement

• Driving efficiency while improving organizational effectivenessTerrain and Crawler production

processesorganizational effectiveness

Cranes: Grow

New Products New Geographies

CC 8800 TWIN BENDINI RC 60 DEVELOPING MARKETS GROWTH

• Long history of product introductions and 2004 2005 2005 2007improvements

• Recently introduced one of the world’s largest lattice boom crawler cranes, which can lift 3 200 metric tons and travel while

• Cranes continues to lead our company in terms of the percentage of sales derived from developing markets

can lift 3,200 metric tons and travel while carrying the load

• Incremental innovations continue, including a 60 ton Rough Terrain (the RC60) recently

• We continue to grow our global sales and service capabilities

• We are rationalizing our manufacturing a 60 ton Rough Terrain (the RC60), recently introduced by Terex Cranes Italy footprint to provide local products for local

markets

Cranes: Grow

Increased AftermarketNew Markets

CHIANGJIANG CRANES

• Increasing global aftermarket opportunity as the installed base grows• Joint venture with Chiangjiang Cranes in

L h Chi i th 3rd l t t kg

• Opportunity to strengthen value-proposition via improved service and support

• Strengthening core service infrastructure in

Luzhou, China is the 3rd largest truck crane manufacturer in China and has potential to grow into other markets

• Efforts are also underway in markets like • Strengthening core service infrastructure in developed markets

• Sales & Service facility developed in Dubai to serve the Middle East

• Efforts are also underway in markets like India, the Middle East, and elsewhere to further Terex participation in the world’s fastest growing geographies

• Other global investments in progress• Opportunities to acquire or enter via organic

market development

Cranes: Diversify

More Global FootprintNew Applications

PORT AND HARBOR CRANES

Sprinter Straddle CarrierMobile Harbor Crane

• Expansion of Terex facility in Tianjin, China for Cranes

• The acquisition of Fantuzzi provides an excellent example of the opportunities that for Cranes

• Fantuzzi provides additional Chinese based manufacturing capacity that can lead to additional growth opportunities for our

exist to add scope in new categories

• Terex has a long history of successful integration of acquisitions and turning acquired businesses into successful long company

• Local footprint, in many cases, is critical to developing markets growth so India represents a logical location for crane

acquired businesses into successful long-term franchises

• Continue to search for opportunities like Fantuzzi that offer high potential returns for represents a logical location for crane

productionFantuzzi that offer high potential returns for our shareholders

Terex Cranes in Summary

• $2.6B* provider of mobile cranes, crawler cranes, and tower $ p , ,cranes sold through dealers and rental houses worldwide

• Benefitting from strong demand for energy, infrastructure, and industrial projects worldwide

• Generating excellent returns via well managed mix and pricing and via targeted productivity improvements in some g g ysegments of the business

W ll iti d i ti i t k t hil• Well positioned in a continuing strong market, while protecting the downside through investment discipline and through increased diversification of the portfoliog p


Terex Roadbuilding and Utility ProductsTerex Roadbuilding and Utility ProductsSeptember 4, 2008

George EllisVice President and General Manager, Terex Roadbuilding and Utilities

Roadbuilding and Utility Products Summary

• $0 7 B* portfolio of businesses serving two distinct business$0.7 B portfolio of businesses, serving two distinct business segments and mostly concentrated in North America

P f h ff d f i ifi t f ll ff i N th• Performance has suffered from a significant fall-off in North American mixer truck demand, but adjustments have been made and results are now improvingp g

• Improvements continue elsewhere in the business that should drive results going forwarddrive results going forward

• Eventual recovery in mixer trucks, including the opportunity for a now more focused business to take share as the market recovers

* Last 12 months sales through June 30, 2008

RBU: Products

Utility ProductsAsphalt/ Concrete Equipment

Asphalt / Concrete Plants

Concrete Mixer Trucks

Latin America

Front Discharge #1 Number 2

RBUO: Mix


17%1%

1%1%

1%

4%

20% 13%4% 3%

94%81%

33%37%

81%

43% 47%

2004 2008 Q2 YTD2004 2008 Q2 YTD


OtherMixer TrucksAsphalt / ConcreteUtility Equipmenty q p

RBU: Growth

RBUO RESULTS$B

$0 8

$1.0

25%

30%

$B

• Dramatic fall-off in i t k b t

$0.6

$0.8

15%

20%

25% mixer trucks, but now stable

• Recent performance

$0.2

$0.4

5%

10%

15% • Recent performance improving

• Niche product$0.0

2004 2005 2006 2007 Q2 '080%

5% Niche product potential

(ltm)


RBU: Market Environment

N. AMERICA TRANSPORTATION INFRASTRUCTURE SPENDING1

($B ’07)

S. AMERICA TRANSPORTATION INFRASTRUCTURE SPENDING1

($B ’07)

N. AMERICA ELECTRICITY TRANSMISSION INVESTMENTS2

($B Nominal)

$50

$60

$70

$20

$25

$8

$10

$12($B, 07) ($B, 07) ($B, Nominal)

$20

$30

$40

$10

$15

$4

$6

$8

$0

$10

'02

'03

'04

'05

'06

'07

'08

'09

'10

$0

$5'0

2

'03

'04

'05

'06

'07

'08

'09

'10

$0

$2

'02

'03

'04

'05

'06

'07

'08

'09

'10

• Flat outlook for transportation

di

• 5-6% real growth in Latin America R db ildi

• Strong recent investment trends i Utilit P d tspending

• Higher pricing impacting volume

Roadbuilding

• Increasing trade between Brazil and

in Utility Products

• Continued spending on

1. Global Insights, 2. Edison Electric Institute

p gdemand other countries

p gmaintenance

RBU: Outlook

• Steady improvement, with mixer trucks now stabilized and other businesses improving

US residential appears near bottomOther drivers remain healthy to strongBusiness quality improved following actions to reduce costs

• Multiple attractive stories below the surface Healthy and growing utilities businessEffective and profitable business in North American asphaltExcellent trajectory in Latin America, based on domestic production in BrazilS ll b t fit bl b id b i Bid ll & H dSmall but profitable bridge business – Bidwell & Hydra

• Opportunities for portfolio and operations footprint improvement

RBU: Strategy

Key focus areas through 2010Key focus areas through 20101. Continue a successful turn-around in Utility Productsy

2. Build on niche strengths in Roadbuilding• North American asphalt• Bridge paving, inspection, and maintenance• Leadership and growth in Latin AmericaLeadership and growth in Latin America

3. Sustain then grow mixer trucks• Front discharge concept inherently advantaged• Expand the front discharge market

RBU: Utility Products

Operating Margin in Terex Utility Products

UTILITY PRODUCTS NEXT STEPSy

UTILITY PRODUCTS NEXT STEPS

• Execute on-going product enhancements and developmentsenhancements and developments

• Aggressive lean implementation

I t i d2004 2005 2006 2007 2008

LTM

• Improve parts, service, and support

• Leverage route to market for other• Streamlined distribution network

• Consolidated assembly activities

• Leverage route to market for other Terex products

• Explore opportunities for global• Strengthened product and pricing

• Increased sales to major customers

Explore opportunities for global growth (e.g., China)

j

RBU: Roadbuilding

NA ASPHALT BRIDGES LATIN AMERICA

• Technology driven • Full-line bridge • Increase localized• Technology driven growth in plants (super portable, warm mix)

G i d

• Full-line bridge construction and maintenance offering

T t t t

• Increase localized manufacturing

• Upgrade product ff i• Grow improved

distribution in asphalt equipment

• Target contractors, utilities and governments

offering

• Capitalize on market growth & infrastructure

• Expand internationallygdemands

RBU: Mixer Trucks – Front Discharge

INDUSTRY SALES BY REGION*Front

Discharge #1

70%51%

65%

Discharge #1

49%35% 30%

98% 98%

30%2%2%

Central Northeast Southeast Southwest West

Front Rear• Enhanced visibility, higher discharge

point and longer reach allow for accurate placement of concrete

• Preference for front vs. rear discharge is geographicp

• Faster turn around and single operator efficiency save time and money

g g g p

• Significant opportunity to drive market acceptance of front discharge advantages• All wheel drive and superior weight

balance provide excellent mobility

advantages

* Regions are approximately equal in annual truck sales

Roadbuilding and Utilities Summary

• $0.7 B* portfolio of businesses, serving two distinct business $0 po t o o o bus esses, se g t o d st ct bus esssegments and mostly concentrated in North America

• Performance has suffered from a significant fall off in North• Performance has suffered from a significant fall-off in North American mixer truck demand, but adjustments have been made and results are now improving

• Improvements continue elsewhere in the business that should drive results going forwarddrive results going forward

• Eventual recovery in mixer trucks, including the opportunity for a f d b i t t k h th k tnow more focused business to take share as the market

recovers

* Last 12 months sales through June 30, 2008

Closing RemarksClosing RemarksSeptember 4, 2008

Ron DeFeoChairman & Chief Executive Officer

Summary

• Diversified Portfolio of Equipment Businesses• Positioned for Continuing Long - Term Trendsg g• Leader In Our Categories and Our Industry• Leveraging the Power Of One Company

AERIAL WORK PLATFORMS CRANES MATERIALS PROC.

AND MINING

CONSTRUCTION ROADBUILDING AND UTILITIESUTILITIES

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Economy & Finance

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