Terex Corporation · NYSE:TEX
Terex — Q1 2022 Earnings Presentation
27 slides from Terex's earnings presentation, Apr 29, 2022
Slide 1: Q1 2022 Conference Call
Q1 2022 Conference Call April 29, 2022 EXECUTE • INNOVATE • GROW
Slide 2: Forward Looking Statements
Forward Looking Statements Certain information in this presentation includes forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995) regarding future even
Slide 3: Zero Harm Culture and Terex Way Values
Zero Harm Culture and Terex Way Values Total Recordable Incident Rate (TRIR) 3.4 3.2 3.2 3.0 2.6 Safety is an absolute way of life whether you work for us, supply us, use our equipment, or receive our services 3.82 3.27 2.98 2.09 1.52 1.77 1.83 1.00 2016 2017 2018 2019 2020 2021 2022 Q1 2024 Target
Slide 4: ESG: Progress and Priorities on Social Responsibility
ESG: Progress and Priorities on Social Responsibility Environmental Social Strong Stewardship Governance Responsibility Engaging Our Team Members and Supporting our Communities Leadership Engagement Citizenship Appointed Diversity, Equity and Inclusion Launched 8 Global Affinity Groups to Team membe
Slide 5: Q1 2022: Financial Highlights
Q1 2022: Financial Highlights EPS Sales Backlog $0.74 $1.0 Billion $3.5 Billion +32% YoY +16% YoY +73% YoY SG&A % of Sales NWC as % of Sales Operating Margin 11.1% 21.2% 7.4% (210bps) YoY +230bps YoY +30bps YoY SOLID RESULTS IN A DYNAMIC OPERATING ENVIRONMENT 5
Slide 6: End-Markets Overview
End-Markets Overview • Powerscreen & Finlay: Strength of aggregates demand for infrastructure and MATERIALS PROCESSING sand for silicon used in semiconductors • Ecotec & CBI: Secular growth of environmental and waste recycling solutions Aggregates Construction • Advance Mixer: Residential constructi
Slide 7: Progress on Growth Strategy
Progress on Growth Strategy PRIORITIES RATIONALE EXAMPLES Ecotec waste and recycling solutions Market Expansion High growth Drive penetration of new ProStack bulk handling product offerings end-markets markets and geographies Genie substation utility boom Digital customer experience Parts & Service
Slide 8: Progress on Growth Strategy: Genie Mexico
Progress on Growth Strategy: Genie Mexico People Processes Tools Highly engaged and Commitment to Future world class facility on talented work force operational excellence time and on budget EXCELLENT FOUNDATION FOR GROWTH 8
Slide 9: Dynamic Operating Environment
Dynamic Operating Environment Macro Issues Aggressive Actions Geopolitical uncertainty and regional COVID policies • Engaging with suppliers and customers • Implementing alternative sources, design modifications, and adjusting production schedules Challenging supply chain environment • Collaborating
Slide 10: Q1 2022: Operational Results
Q1 2022: Operational Results USD Millions, except Earnings per Share Q1 2022 Q1 2021 Q1 2022 Financial Call-Outs Net Sales $ 1,002.5 $ 864.2 Operating Profit • Corporate & Other: $5 million of charges associated with % Change vs 2021 16.0% restructuring/severance and litigation on former product lin
Slide 11: Q1 2022: Materials Processing Segment Results
Q1 2022: Materials Processing Segment Results USD Millions Sales Operating Margin Backlog +19.7% YoY +120bps YoY +66% YoY 452.7 14.2% 1,183 378.2 13.0% 713 Q1 '21 Q1 '22 Q1 '21 Q1 '22 Q1 '21 Q1 '22 Terex Ecotec recycling product application Terex Washing Systems product installation CONSISTENT STRON
Slide 12: Q1 2022: Aerial Work Platforms Segment Results
Q1 2022: Aerial Work Platforms Segment Results USD Millions Sales Operating Margin Backlog +15.7% YoY +30bps YoY +77% YoY 551.5 5.6% 5.9% 2,309 476.7 1,306 Q1 '21 Q1 '22 Q1 '21 Q1 '22 Q1 '21 Q1 '22 Genie team members celebrating International Women's Day Utilities team members at an industry trade s
Slide 13: Disciplined Capital Allocation
Disciplined Capital Allocation USD Millions Quarterly and Full-Year Free Cash Flow 1st Quarter Debt & Cash Levels 2019 2020 2021 2022 2019 2020 2021 2022 ~ $200.0 $1,478 Gross Debt reduced 50% $141.3 $1,345 $125.0 vs. Q1 2019 $86.4 $1,148 $39.5 $979 $830 $740 $515 $578 $522 ($71.8) ($112.9) $401 $33
Slide 14: Reaffirming Full-Year 2022 Outlook
Reaffirming Full-Year 2022 Outlook USD Millions, except Earnings per Share Terex Outlook (1) 2022 Outlook 2022 Outlook (1) Segment Outlook Net Sales $4,100 - $4,300 Net Sales Operating Margin SG&A % to Sales ~10.9% Materials Processing $1,800 - $1,900 14.0% - 14.5% Operating Margin 8.8% - 9.5% Aeria
Slide 15: Summary
Summary GREAT BUSINESSES LONG-TERM ATTRACTIVE AND GROWTH POTENTIAL RETURN PROFILE GREAT BRANDS Strong execution in challenging environment Bookings and backlog growth reflect strong customer demand Ample liquidity to support growth 15
Slide 16: Appendix
=) TEREX. APPENDIX 16
Slide 17: Backlog Trend
Backlog Trend USD Millions 3,492 2,990 2,725 1,183 2,305 1,034 2,019 1,020 1,651 868 713 1,349 563 1,158 1,081 989 523 2,309 412 809 328 772 767 1,956 272 1,705 315 262 1,306 1,437 1,088 289 746 753 717 826 494 509 478 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-
Slide 18: Q1 Sales by Geography (2022 vs. 2021)
Q1 Sales by Geography (2022 vs. 2021) North America Western Europe Asia-Pacific Rest of World Actual FX-Adj. Actual FX-Adj. Actual FX-Adj. Actual FX-Adj. 18% 19% 19% 26% -9% -5% 60% 68% 7% 5% 14% 18% North America Western Europe Q1 2022 Q1 2021 54% 52% Asia-Pacific Rest of World 25% 25% Results show
Slide 19: Segment Results
Segment Results USD Millions MATERIALS PROCESSING AERIAL WORK PLATFORMS Q1 '22 Q1 '21 Q1 '22 Q1 '21 Net Sales $452.7 $378.2 Net Sales $551.5 $476.7 % Change vs. '21 19.7% % Change vs. '21 15.7% Operating Profit (Loss) $64.5 $49.1 Operating Profit (Loss) $32.5 $26.6 Operating Margin % 14.2% 13.0% Ope
Slide 20: Glossary
Glossary In an effort to provide investors with additional information regarding the Company’s results, Terex refers to various GAAP (U.S. generally accepted accounting principles) and non-GAAP financial measures which management believes provides useful information to investors. These non-GAAP meas
Slide 21: Glossary: Free Cash Flow
Glossary: Free Cash Flow USD Millions Free Cash Flow - We calculate a non-GAAP measure of free cash flow. We define free cash flow as Net cash provided by (used in) operating activities, plus (minus) increases (decreases) in Terex Financial Services finance receivables consisting of sales-type lease
Slide 22: Glossary: Debt & Net Debt
Glossary: Debt & Net Debt USD Millions Debt is calculated using the Condensed Consolidated Balance Sheet amounts for Current portion of long- term debt plus Long-term debt, less current portion. Net Debt is calculated as Debt less Cash and cash equivalents, including amounts in assets held for sale.
Slide 23: Glossary: EBITDA
Glossary: EBITDA USD Millions EBITDA is defined as earnings, before interest, other non-operating income (loss), income (loss) attributable to non-controlling interest, taxes, depreciation and amortization. The Company calculates this by subtracting the following items from Net income (loss): (Gain)
Slide 24: Glossary: ROIC
Glossary: ROIC ROIC and other Non-GAAP Measures (as calculated below) assist in showing how effectively we utilize capital invested in our operations. ROIC is determined by dividing the sum of NOPAT for each of the previous four quarters by the average of Debt less Cash and cash equivalents plus Sto
Slide 25: Glossary: ROIC Continued
Glossary: ROIC Continued USD Millions Amounts described below are reported in millions of U.S. dollars, except for the annualized effective tax rates. Amounts are as of and for the three months ended for the periods referenced in the tables below. Mar '22 Dec '21 Sep '21 Jun '21 Mar '21 (1) Annualiz
Slide 26: Glossary: ROIC Continued
Glossary: ROIC Continued USD Millions As of 3/31/22 As of 12/31/21 As of 9/30/21 As of 6/30/21 As of 3/31/21 Reconciliation of Cash and cash equivalents: Cash and cash equivalents - continuing operations $ 218.4 $ 266.9 $ 553.2 $ 542.2 $ 572.9 Cash and cash equivalents - assets held for sale — — 5.0
Slide 27: Glossary: Working Capital
Glossary: Working Capital USD Millions Working Capital is calculated using the Condensed Consolidated Balance Sheet amounts for Trade receivables (net of allowance) plus Inventories, less Trade accounts payable and Customer advances. The Company views excessive working capital as an inefficient use