Terex Corporation · NYSE:TEX
Terex — Jefferies 2019 Global Industrials Conference
10 slides from Terex's conference presentation, Aug 6, 2019
Slide 1: Jefferies 2019 Global Industrials Conference
Jefferies 2019 Global Industrials Conference August 6, 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: Q2 Highlights
Q2 Highlights Results are Continuing Operations • Continued global growth, FX-neutral revenue up 8% • MP continues excellent performance +44% • Global AWP market generally +40% stable at a healthy level • Strong cash flow generation – cash provided by operating activities of $217 million and Free Ca
Slide 4: Terex Strategy: Focus, Simplify, Execute to Win
Terex Strategy Focus Simplify Execute to Win FOCUS • SIMPLIFY • EXECUTE TO WIN 4
Slide 5: Strategy Deployment Progress
Strategy Deployment Progress Demag® Mobile Crane sale closed Focus High August 1. Performing Portfolio Completed sale of boom truck, truck crane and crossover product lines Simplify G&A reduction underway Reduce Complexity New manufacturing facilities and G&A progressing as planned Continuing to imp
Slide 6: 2019 Guidance Update
2019 Guidance Update Continuing Operations Guidance (1) • Net sales of ~$4.6 billion • Operating margin of 8.8% to 9.3% • EPS of $3.40 to $3.80 • Reaffirming full year free cash flow of ~$165 million Returning Capital to Shareholders • Quarterly dividend increase of 10%, to $0.11 per share • ~$200 m
Slide 7: Disciplined Capital Allocation
Disciplined Capital Allocation • Q2 Free Cash Flow of $168 million – more than double the Cash Flow from Operations + prior year After-tax Proceeds from Divestures • In addition to FCF - generating cash through portfolio actions including sale of Demag® Mobile Cranes and ASV stock, expect ~$150 mill
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 $4.6b (1% CAGR) Operating Margin 4.7% 10%+ 9.0% ROIC 9.4% 20%+ ~20% Free Cash Flow 199% 100%+ ~65% (% of net income) FOCUS • SIMPLIFY • EXECUTE TO WIN 7 8
Slide 9: Summary
Summary • Excellent quarter for MP, AWP continued to grow • Strong cash flow generation • 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 • SIMPLIFY • EXECUTE TO
Slide 10: Questions?
Questions? FOCUS • SIMPLIFY • EXECUTE TO WIN 10