Terex Corporation · NYSE:TEX
Terex — Deutsche Bank Global Industrials & Materials Summit 2019
10 slides from Terex's conference presentation, Jun 5, 2019
Slide 1: Deutsche Bank Global Industrials & Materials Summit
Deutsche Bank Global Industrials & Materials Summit Chicago – June 5, 2019 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 Highlights
Q1 Highlights Results are Continuing Operations Q1 2019 Continuing Operations and Prior Year Results • Significant as Presented in Q1 2018(1, 2) improvement in Operating Profit financial performance (millions) $99.7 $105.7 $71.3 $73.6 • Global markets +40% +44% generally stable at As Reported As Adj
Slide 4: Terex Strategy: Focus, Simplify, Execute to Win
Terex Strategy Focus Simplify Execute to Win FOCUS • SIMPLIFY • EXECUTE TO WIN 3
Slide 5: Strategy Deployment Progress
Strategy Deployment Progress Demag® Mobile Crane sale-related Focus High activities progressing Performing Portfolio Completed sale of boom truck, truck crane and crossover product lines Completed re-segmentation, Simplify Reduce G&A reduction underway Complexity and G&A New manufacturing facilities
Slide 6: 2019 Guidance
2019 Guidance Continuing Operations Guidance (1) • Net sales of ~$4.7 billion • Operating margin of 9% to 10% • EPS of $3.60 to $4.20 • Expect to be in upper half of EPS guidance range Returning Capital to Shareholders • Planned quarterly dividend increase of 10%, to $0.11 per share • ~$200 million
Slide 7: Disciplined Capital Allocation
Disciplined Capital Allocation Cash Flow from Operations + • Q1 free cash flow of ($257) million After-tax Proceeds from Divestures • Making strategic investments in high-performing businesses • Continuing to invest in Restructuring and Execute Optimal Capital Structure to Win initiatives ~$12 milli
Slide 8: December 2016 Investor Day 2020 Objectives
December 2016 Investor Day 2020 Objectives 2020 2019 2016 Objective Guidance Organic Growth $4.4b $4.7b $4.7b (1% CAGR) Operating Margin 4.7% 10%+ 9.5% ROIC 9.4% 20%+ 20%+ Free Cash Flow 199% 100%+ 58% (% of net income) FOCUS • SIMPLIFY • EXECUTE TO WIN 7
Slide 9: Summary
Summary • Strong start in MP, AWP gaining momentum • Expect to be in upper half of full year EPS guidance range • Focused the portfolio on high-performing businesses • Continue to implement Simplify and Execute to Win priorities • Continue to execute our disciplined capital allocation strategy FOCUS
Slide 10: Questions?
Questions? FOCUS • SIMPLIFY • EXECUTE TO WIN 9
Terex — Deutsche Bank Global Industrials & Materials Summit 2019 on 6ix