Terex Corporation · NYSE:TEX
Terex — Wells Fargo 2018 Industrials Conference
9 slides from Terex's conference presentation, May 8, 2018
Slide 1: Wells Fargo 2018 Industrials Conference
Wells Fargo 2018 Industrials Conference New York City – May 8, 2018 FOCUS • SIMPLIFY • EXECUTE TO WIN
Slide 2: Forward Looking Statements
Forward Looking Statements 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 press release, the words “may,” “expects,” “intends,” “an
Slide 3: Q1 Financial Highlights
Q1 Financial Highlights Results are Continuing Operations, Except Cash Figures • Increased sales by 25% to $1.3 billion • Increased as reported Operating Profit by $76 million, and as adjusted Operating Profit by $57 million or ~350% • EPS of $0.59 as reported, $0.55 as adjusted • Increased bookings
Slide 4: Q1 Strategy Deployment Highlights
Q1 Strategy Deployment Highlights Simplify Reduce Approved Utilities Manufacturing Strategy Complexity and SG&A Reduced G&A while investing in priority areas Developed and piloted the Terex Proven Sales Commercial Process Execute to Win Excellence Deployed CRM at Powerscreen® Enhanced pricing waterf
Slide 5: Q1 Segment Highlights
Q1 Segment Highlights AWP • Increased sales 35% • Increased operating margin 480 bps, incremental margin ~22%(1) • Increased backlog 43% (1) Excluding the impact of non-recurring tax charge of $2.2 million in Q1 2017 Cranes • Increased sales 19% • Supply base challenges in mobile cranes impacted pro
Slide 6: 2018 Guidance Update
2018 Guidance Update USD Millions, except Earnings per Share Net Sales Operating Margin Terex 2018 Segment (1) 2018 2018 Guidance (1) Original Updated Guidance Original Updated Original Updated AWP Up ~10% Up ~18% 9.5% - 10.5% 10.3% - 11.3% Net Sales Up ~10% Up ~15% Operating Cranes Up ~12% Up ~12%
Slide 7: Disciplined Capital Allocation
Disciplined Capital Allocation Cash Flow from Operations + • Improved Q1 free cash flow by ~$90 million(1) After-tax Proceeds from Divestures • Repriced USD term loan, reducing interest rate spread by 0.25% to Libor +200 bps • Increased quarterly dividend 25% to $0.10 per share Optimal Capital Struc
Slide 8: Summary
Summary • Strong start in AWP and Materials Processing • Addressing Mobile Cranes operational challenges • Raising full year 2018 guidance • Continue to implement plans in the Simplify and Execute to Win priority areas • Strong execution of our disciplined capital allocation strategy FOCUS • SIMPLIF
Slide 9: Questions?
Questions? FOCUS • SIMPLIFY • EXECUTE TO WIN 9