terex jefferies081308

JEFFERIES INDUSTRIAL CEO SUMMITAugust 13, 2008

Forward Looking Statements & Non-GAAP Measures

The following presentation contains forward-looking information based on the current expectations of Terex Corporation. Because forward-looking statements involve risks and uncertainties, actual results could differ materially. Such risks and uncertainties, many of which are beyond the control of Terex, include among others: our business is highly cyclical and weak general economic conditions may affect the sales of its products and its financial results; our business is sensitive to fluctuations in interest rates and government spending; the ability to successfully integrate acquired businesses; the retention of key management personnel; our businesses are very competitive and may be affected by pricing, product initiatives and other actions taken by competitors; the effects of changes in laws and regulations; our business is international in nature and is subject to changes in exchange rates between currencies, as well as international politics; our continued access to capital and ability to obtain parts and components from suppliers on a timely basis at competitive prices; the financial condition of suppliers and customers, and their continued access to capital; our ability to timely manufacture and deliver products to customers; possible work stoppages and other labor matters; our debt outstanding and the need to comply with restrictive covenants contained in our debt agreements; our ability to maintain adequate disclosure controls and procedures, maintain adequate internal controls over financial reporting and file its periodic reports with the SEC on a timely basis; the previously announced investigations by the SEC and the Department of Justice; compliance with applicable environmental laws and regulations; product liability claims and other liabilities arising out of our business; and other factors, risks, uncertainties more specifically set forth in our public filings with the SEC. Actual events or the actual future results of Terex may differ materially from any forward looking statement due to those and other risks, uncertainties and significant factors. The forward-looking statements speak only as of the date of this presentation. Terex expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement included in this presentation to reflect any changes in expectations with regard thereto or any changes in events, conditions, or circumstances on which any such statement is based.

Non-GAAP Measures: Terex from time to time refers to various non-GAAP (generally accepted accounting principles) financial measures in this presentation. Terex believes that this information is useful to understanding its operating results and the ongoing performance of its underlying businesses without the impact of special items.

Our Purpose

To improve the lives of people around the world

Our MissionTo delight construction, infrastructure, mining and other customers with value added offerings that exceed their current and future needsTo achieve our mission we must attract the best people by creating a Terex culture that is safe, exciting, creative, fun and embraces continuous improvement

Our VisionCustomer – to be the most customer responsive company in the industry as determined by the customerFinancial – to be the most profitable company in the industry as measured by ROICTeam Member – to be the best place to work in the industry as determined by our team members

USA30%

Other Americas8%

Europe / Africa / Middle East

48%

Asia / Australia14%

Strong and Diversified Sales Base

2,817

3,910

4,799

6,157

9,13810,081

7,648

1,000

3,000

5,000

7,000

9,000

11,000

2002 2003 2004 2005 2006 2007 LTM Q22008

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Sales ($M) Operating Profit (%)

Profitability grows faster than net sales:Net sales up 19% in FY 2007 and up 25% in Q2 2008 vs. PYIncome from operations up 36% in FY 2007 and up 30% in Q2 2008 vs. PY

Sales are geographically diverse with 70% of sales generated outside the US

12 year compounded annual growth rate for Sales of 27%

Where We Are Today

$19.0

$10.1 $9.1 $8.7 $8.1$5.2 $5.1 $4.9 $4.5 $4.4 $3.7

$30.4

(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) 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

(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 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

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

Terex is the 3rd largest manufacturer of construction equipment in the world

Based on last twelve months of available Construction Equipment Sales ($’s in Billions)

http://www.volvo.com/

http://www.oshkoshtruck.com/

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Strong Market Presence

Mobile Crushing & Screening equipment

~$3.5 billion marketTerex is one of three major

global competitors

Aerial Work Platforms

~$ 6 billion marketTerex is one of two

major global competitors

Cranes~$14 billion market

Terex is one of three major global competitors

Utilities~$1 billion market (USA)

Terex is one of two major competitors

Material Handlers~$1.4 billion marketTerex is one of four


* Market size approximations based on internal estimates and data from Yengst and Off Highway Research

Hydraulic Mining Excavators

~$2.6 billion marketTerex is one of four


Approximately 75% of 2007 sales were generated in markets where Terex is a major competitors and/or Terex has a significant market presence

Commodity driven based on Global Economics

Material Processing & Mining (23%)

Terex Product Diversity

The Terex strategy of product diversity carriesacross the typical economic cycle with balance throughout

Mid-Cycle

33% of Net SalesAerial Work Platforms (21%)

Heavy Construction Equipment (12%)

Early-Cycle

10% of Net SalesCompact Construction Equipment (6%)Telehandlers & Concrete Mixers (4%)

Late-Cycle

34% of Net SalesCranes (26%)

Light Construction (3%)Utility Equipment (3%)

Roadbuilding (2%)

Note: Percentages are based on 2007 sales

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 supply chain management, pricing process discipline & lean initiatives

15% W.C. to Sales 22.1% Optimize use of assets, particularly inventory

Goals for 2010

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

* LTM = Last Twelve Months

Opportunities to Improve Margin

Ensure Terex is receiving appropriate value for its products

Offset rising commodity costs with commensurate pricing actions

Build a more sophisticated sales process through training and education

Lean initiatives

Optimize manufacturing footprint

Sales and production planning methodology

Coordinate supply efforts to leverage the scale of Terex

Coordinate common platform design

Sourcing centers – China and India

A 2-3% incremental margin improvement is a reasonable objective from these initiatives

Pricing

Supply Management

Productivity

20%

26%

23%

7%

24%

Terex Business Segments

• Aerial Work Platforms

• Construction

• Cranes

• Materials Processing & Mining

• Roadbuilding, Utility Products and Other

Slice 1Slice 2Slice 3Slice 4

Sales by Segment(Last 12 months thru Jun 30, 2008, $ in millions)

$2,409AWP

$2,067Construction

$2,632Cranes

$2,427MPM

$689RBUO

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Aerial Work Platform Segment

Sales by Geography - YTD Q2 2008

8%11%

30%51%

USA Europe/Africa/Middle EastAsia/Australia Other Americas

Manufacturing by Geography - 2007

90+%

<10%Americas

Europe/Africa/MiddleEastAsia/Australia

HighlightsRising labor costs and tightening worker safety regulations is driving demand in developing marketsRecent softening in Western EuropePrices increased for orders after Sept 1, 2008

OpportunitiesEuropean production capacity expansion => reduce transit time and inventory levelsChina manufacturing facility initially for sourcing

Manf. by Geography - Mid-term Goal

~30%~60%

Americas


~10%

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Construction Segment

Manufacturing by Geography - 2007 p.f.

91%

9%

Americas



~40%

~30% Americas


~30%

HighlightsEuropean focused businessLarge market potentialWeak dollar hurts N. American distribution

OpportunitiesSales/service focus in developing marketsEmphasis on sourcing and production in low cost countriesASV acquisition provides N. American distribution for compact equipment and global growth opportunity for compact track loaders


76%

3%7% 14%

USA Europe/Africa/Middle EastAsia/Australia Other Americas

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Crane Segment

HighlightsStrong demand expected through 2010Market leader above 300-ton capacityPricing and volume leverage are driving margin improvement

OpportunitiesChinese investment for cost and strategic reasonsSelective expansion of manufacturing footprint


47%

4%

26%

23%USA


Other Americas


~2 5 %

~6 5 %

~10 %

Americas



~50%

~25% Americas


~25%

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Material Processing & Mining Segment

HighlightsStrong commodity demand through at least 2010Market leader: hydraulic shovels and mobile crushing & screening equipment

OpportunitiesManufacturing in India for Material ProcessingFocus on Aftermarket Growing installed base of shovels that drives parts sales


38%

13%

32%

17%USA


Other Americas


~3 %

~6 2 %

~3 5 %

Americas



~50%

~35% Americas


~15%

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Roadbuilding, Utilities & Other Segment


6%

16%1%

77%

USA Europe/Africa/Middle East Asia/Australia Other Americas

Manufacturing by Geography - 2007~1%

~9 9 %

Americas


HighlightsInadequate funding for infrastructure in the USAUnder-investment in fleet for many years by U.S. based utilities

OpportunitiesUtilize Roadbuilding manufacturing capacity for Construction Segment productsFocus on infrastructure International potential for Utilities


~5%

~85%

Americas


~10%

Financial Overview

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Return on Invested Capital (trailing 12 months)

29.5% 29.4%27.6% 27.0% 26.7%

19.4% 18.2%

7.2%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

Caterpillar * Joy Global Deere * Terex Manitowoc Bucyrus Astec OSK

LTM After-Tax ROIC – Machinery Industry

LTM After-Tax ROIC – Diversified Industrials

27.0%

20.0%17.0%

13.8%11.1%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Terex UnitedTechnologies

Illinois Tool Works Dover Corp. Danaher Corp

ROIC is calculated by dividing the sum of the last four quarters’ net operating profit 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 are as of Apr 30, 2008 and the remainder are as of Jun 30, 2008*Does not include finance arm of company

Net Sales Growth With Minimal Leverage

$1,023$721 $805

$1,209$894 $780

$86 $80$766$571

$1,857 $2,000 $1,824

$2,817

$3,910

$4,799

$6,157

$9,138

$10,081

$7,648

1999 2000 2001 2002 2003 2004 2005 2006 2007 Q2 2008*

Net DebtSales

($ in millions)

* Q2 2008 sales is based on last 12 months sales as of June 30, 2008; Net Debt is as of June 30, 2008

Inventory as % of Sales

0%

5%

10%

15%

20%

25%

30%

35%

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

RAW WIP Finished Goods Aftermarket

20.4%

Working Capital Opportunities

Working capital as a % of sales is comparable to our peers …

32.5%

22.6%23.3%

20.2%18.5% 18.7%

Competitor Working Capital as % of Sales

37.3%

29.1%

25.1% 23.9%22.1%

20.4%

15.1%

7.3%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

JOYG**

Bucyru

s***

Astec

Caterpi

llar*

Terex

OSK

Manito

woc***

Deere*

* Excludes CAT and DE Finance arms** DE and JOYG as of Apr 30. All others as of June 30, 2008*** MTW and BUCY combine accounts payable and accrued

expenses, complicating a comparable analysis to peers

… but the opportunity exists to release hundreds of millions of dollars from inventory.

21.5%

15%

2008 Guidance

$6,157$7,648

$9,138

$10,500to

$10,900

$0

$3,000

$6,000

$9,000

$12,000

2005 2006 2007 2008e

Sales Growth of 71% - 77%

Sales guidance is for a range of $10.5 - $10.9 billion

EPS guidance is between $6.85 - $7.15 per share*

$1.84

$3.88

$5.85

$6.85to

$7.15

$0.00

$2.00

$4.00

$6.00

$8.00

2005 2006 2007 2008e

EPS Growth of 272% - 289%

Forecasted 2008 EPS growth of 17-22% versus 2007

*Does not reflect impact of Fantuzi acquisition, which is expected to me minimally dilutive in 2008

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Growth – Sales and ProfitLeveraging global presence, consolidating vendors and pricing actions

Continue the TEREX business system implementationLean manufacturing focus, customer-centric business approach, and human resource development

Developing market opportunitiesChina, India, Russia and Latin America

ROIC focus27.0% ROIC (after-tax) as of June 30, 200823.0% budgeted ROIC target for 2008

Investment PrioritiesReinvest in the businessOpportunistic and geographic acquisitions$1.2 billion stock repurchase authorization; $362 million completed through Qtr 2 2008

Looking Ahead…….

Appendix

Fantuzzi Overview

Global leader in the design, manufacture, and service of port equipment.

2007 Revenues of approximately €447 millionOffers full range of equipment:

Straddle CarriersRail / Rubber Tired Gantry CranesMobile Harbor CranesShip-to-Shore CranesReach Stackers & Forklift Trucks

Factories in Italy, Germany, and China

Global distribution and geographic reach17 Sales and service branches around the world120+ technicians

2,230 team members

Ship-to- Shore

Cranes / Rail & Rubber

Tired Gantry Cranes

34%

Mobile Harbor Cranes

8%

Reach Stackers /

Forklift Trucks

28%

Straddle Carriers 30%

EMEA 56%

Australia / New Zealand

6%NA 11%

Asia 27%

Product Mix

Revenue Mix

Fantuzzi Acquisition Summary

Fantuzzi provides an important growth opportunity in the intermodal transportation area of infrastructure

Diversifies our crane portfolio with related technology:New attractive end marketsBroad geographic revenue mix

China accounts for 10 – 15% of sales

Global port technology leaderComplete range of equipmentInnovative new technologies – “Sprinter”Leading market positions – Straddle Carriers & Reach Stackers

Sourcing and lean manufacturing opportunities

EPS accretive by the end of 2009

Questions?

terex jefferies081308

Economy & Finance

net sales

total sales

bobcat sales

py sales

sales of gbp

insurance services sales

usasia australia sales

construction mining