Terex Corporation · NYSE:TEX
Terex — Morgan Stanley 2nd Annual Laguna Conference (September 2014)
17 slides from Terex's conference presentation, Sep 16, 2014
Slide 1: Morgan Stanley 2nd Annual Laguna Conference
Morgan Stanley 2nd Annual Laguna Conference September 16, 2014
Slide 2: Forward-Looking Statements & Non-GAAP Measures
Forward-Looking Statements & Non-GAAP Measures This presentation contains forward-looking information regarding future events or the Company’s future financial performance based on the current expectations of Terex Corporation. In addition, when included in this presentation, the words “may,” “expec
Slide 3: Defining Who We Are
Defining Who We Are Lifting & Material Handling Solutions Company Focused on Operational Improvement Leader in Product Categories Geographically Diverse Cash Generator Profitable 3
Slide 4: Why Invest in Terex?
Why Invest in Terex? • Growth in sales is expected to accelerate in the next 2 to 3 years • Margins should continue to improve through initiatives and volume • Committed to deploying capital intelligently and efficiently • Near term performance expectations are positive 4
Slide 5: Second Quarter Results
Second Quarter Results Q2 EPS of $0.76 for continuing operations, $0.59 compared to prior year EPS of $0.17 and $0.12 compared to prior year adjusted EPS Performance was mixed in the quarter • Overall sales growth 10.4% versus prior year period • Another strong growth quarter for AWP; margins impact
Slide 6: Significant Sales Growth Expected
Significant Sales Growth Expected • Terex net sales are at 65% of prior peak…. Significant growth potential ahead as markets improve • AWP category is growing worldwide. Is at 90% of prior peak in 2013, but Europe only at ~40% and ROW is growing • Percentage of prior peak: MP 57%, Cranes 59%, MHPS 7
Slide 7: Global Reach – Positioned for Growth
Global Reach – Positioned for Growth North America : Pro Forma Sales by Year ($M) Western Europe: Pro Forma Sales by Year ($M) ROW: Pro Forma Sales by Year ($M) $3,500 $5,000 $3,500 $4,500 Continuing to focus on $3,000 24% CAGR $3,000 profitable growth $4,000 since '09 $2,500 $3,500 $2,500 Finding B
Slide 8: Sales by Geography Q2-14 vs. Q2-13
Sales by Geography Q2-14 vs. Q2-13 Western Europe 35% North America 15% Asia/ Oceania (3)% Other (8)% North America LATAM (27)% 44% 29% Western Europe Asia/ Oceania 6% 11% 10% Other LATAM Total Terex Sales by Geography % 8
Slide 9: Latest 2014 Segment Outlook
Latest 2014 Segment Outlook (Guidance as of 9/16/2014) Net Sales Operating Margin Initial Guidance Updated Guidance Initial Guidance Updated Guidance High single / Low / mid double digit Stable Stable AWP low double digit growth growth Mid-teens Mid-teens Continued Improvement Continued Improvement
Slide 10: Goals – Where We Are Heading
Goals – Where We Are Heading • Continued strong performance expected from AWP • Improving market conditions and performance expected for Construction, MHPS and MP • Global crane market continues to be challenging to forecast, though macro indicators are positive • Remain focused on execution of inte
Slide 11: Appendix
APPENDIX ] TERE CORPORATION £
Slide 12: Terex Book-to-Bill Trend (USD Millions)
Terex Book-to-Bill Trend (USD Millions) AWP Construction Cranes $900 180% $250 180% $600 180% $800 177% 160% 160% 160% 139% $500 138% $200 140% $700 140% 140% 126% 114% $400 113% 120% $600 120% 127% 120% 87% $150 130% 100.0% $500 100% 95% 82% 100% 100% 85% 89% 108% $300 $400 97% 80% 72% 80% 70% 93%
Slide 13: Backlog Trend (USD Millions)
Backlog Trend (USD Millions) 13
Slide 14: Q2 2013 Adjustments
Q2 2013 Adjustments USD Millions, except Earnings per Share Q2 2013 Q2 2013 Restructuring As Reported & Related As Adjusted Net Sales $1,861.5 - $1,861.5 Gross Profit $351.2 $41.4 $392.6 SG&A ($267.7) $23.5 ($244.2) Income From Operations $83.5 $64.9 $148.4 Interest Income/ (Expense) ($29.6) - ($29.
Slide 15: YTD 2013 Adjustments
YTD 2013 Adjustments USD Millions, except Earnings per Share YTD 2013 YTD 2013 Sale of MHPS Restructuring As Reported Roadbuilding Charge & Related As Adjusted Net Sales $3,515.2 - - - $3,515.2 Gross Profit $672.4 $3.2 - $41.4 $717.0 SG&A ($523.3) $0.2 $2.7 $23.5 ($496.9) Income From Operations $149
Slide 16: Adjusted OP by Segment – Q2 2013
Adjusted OP by Segment – Q2 2013 USD in millions Q2 2013 Restructuring Q2 2013 As Reported & Related As Adjusted AWP $101.2 - $101.2 Construction ($5.2) $3.4 ($1.8) Cranes $23.4 $15.0 $38.4 MHPS ($57.2) $46.5 ($10.7) MP $24.5 - $24.5 Corporate ($3.2) - ($3.2) Consolidated $83.5 $64.9 $148.4 16
Slide 17: Q2 2013 ROIC Calculation
Q2 2013 ROIC Calculation See reconciliation of adjusted amounts below on table following ROIC table. Amounts are as of and for the three months ended for the periods referenced in the table below. Jun '13 Mar '13 Dec '12 Sep '12 Jun '12 Provision for (benefit from) income taxes $ 27.7 $ 14.6 $ (9.2)
Terex — Morgan Stanley 2nd Annual Laguna Conference (September 2014) on 6ix