Terex Corporation · NYSE:TEX
Terex — Merger or Acquisition (January 2008)
18 slides from Terex's merger presentation, Jan 14, 2008
Slide 1: A.S.V., Inc. Acquisition
AS.V., Inc. Acquisition January 14, 2008 TEREX.
Slide 2: Terex to Acquire ASV for $18.00 per share
Terex to Acquire ASV for $18.00 per share Opening the door to new Revenue and Profits
Slide 3: Building the Future
Building the Future TEX + ASV * Global distribution = Key product addition = Rental channel access = Best in class technology * Scale and resources * Adaptable to other + Lean manufacturing products * Sourcing = Compact focused U.S. + Marketing distribution Accelerated Growth and Profitability for B
Slide 4: ASV Overview
ASV Overview + Designs and manufactures technology leading rubber track loaders and. undercarriages + Industry pioneer and innovator for 25 years + Roots intraction technology + Extensions to broader vehicle applications + Undercarriage supplier to CAT, Vermeer + “Positrack” technology unique and pa
Slide 5: ASV Overview
ASV Overview + Foundation for growth + ASVhas: + Superior product, + Profitable history + Focused distribution + Infernational eynergies and growth potential + Rental channel growth potential Terex.
Slide 6: ASV Description
ASV Description ASV Revenue 1% + Unique “Posi-Track” undercarriage - 10+ year patent protection ‘+ Compact track loaders competing in large skid steer a i rere + Also owns Loegering, which offers bolt-on track systems =ASY GOEM/CAT mLowgwtng 0% of sales inthe U.S., no sales to Europe + 316 independe
Slide 7: Compact Track Loader (CTL) Benefits vs. Skid Steer
Compact Track Loader (CTL) Benefits vs. Skid Steer * Lower ground pressure (ess damage, more floatation) * Increased traction * Greater working stability * Enhanced productivity and performance Terex.
Slide 8: ASV Advantages vs. Competitive CTLs
ASV Advantages vs. Competitive CTLs * Independent undercarriage and roller suspensions deliver smoother ride * 20% less ground pressure * Greater tractive effort * Lighter pure rubber tracks (vs. steel and rubber) allow for 12 mph top speed vs. 6-8 mph. * Balanced CTL frame creates greater stability
Slide 9: ASV Performance Video
ASV Performance Video Terex.
Slide 10: ASV Applications and Markets
ASV Applications and Markets Se * Anywhere you would use a SSL or utility tractor plus * Wet or soft soil conditions * Rough, non-graded terrain * Anywhere ground damageis an issue * Lawns, golf courses * Key applications * Site clearing, general construction * Forestry, underbrush removal (with bru
Slide 11: Compact Loader Market (CTL plus Skid Steers)
Compact Loader Market (CTL plus Skid Steers) North America SEARED REARS RSD ° co Unite (Thousands) CP PPPOE AS EE SS gS s Total Compact Loaders a Total CTLs + CTLehave grown from <S%b of the market to 30% in 2007 + CTL share growthis expectedto continue Terex.
Slide 12: Compact Equipment Market
Compact Equipment Market SST, 2006 Compact Equipment Market Overview nits) 7 Backhoe Loaders 25050, Mini Exoavators zs2s0 62740 rasa | 16.88 Skid Steer Loaders stars 13038 2a568 99.576 Compact Track Loaderst z5p00 1800 41200 27.700 RILT=~Telescorie 21g25 28,100 10225 53.880 Compact Wheel Loaders zes
Slide 13: Terex Compact Portfolio
Terex Compact Portfolio Terex 2008 Compact Sales Current Compact Product Portfoli a6 + Loader backhoes + Small dumpers + Mini and midi excavators a6 54% + Compact wheel loaders + Telehandlers + Light towers + Portable generators ‘mEuope N America Row Terex Compact Business: 2005 2006 Sales gaan $978
Slide 14: Acquisition Strategy
Acquisition Strategy Se * Adds a key product and large market opportunity to our compact portfolio * Strengthens our dealer proposition globally * Brings complementary North American distribution more focused on small contractors, landscapers. * Will accelerate our overall growth in the compact mark
Slide 15: Acquisition Strategy
Acquisition Strategy Se * Terex plans to preserve the value of ASV brand and distribution * Terex’s scale and resources will accelerate ASV's development * Terex’s strong international compact distribution will allow more rapid ASV penetration * Terex’s global rental company sales and support will a
Slide 16: Financial Commentary
Financial Commentary Se * $48ishare cash offer is a 40% premium to the last 10 trading day average + CAT willtender its shares * Transaction value is $488mm, less $49mm cash on hand = $439mm_ + TEX plans to triple ASV revenue and achieve a pre-tax ROIC of 20%: in the next 35 years * Does not include
Slide 17: Summary
Summary SEARED REARS RSD + ASV opens the door to a more aggressive U.S. and global compact equipment business * Helps Terex Construction in North America * Will be profitable growth * Anticipate North American market to stay slow in 2008 with improvements, beginning in 2008 Terex.
Slide 18: Q&A
TEREX. Q&A