Terex Corporation · NYSE:TEX
Terex — Q3 2015 Earnings Presentation
27 slides from Terex's earnings presentation, Oct 21, 2015
Slide 1: Q3 2015 Conference Call
Q3 2015 Conference Call October 21, 2015
Slide 2: Forward-Looking Statements & Non-GAAP Measures
Forward-Looking Statements & Non-GAAP Measures 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 presentation, the words “may,” “expec
Slide 3: Continuing to Deliver Solid Results in a Challenging Environment
Continuing to Deliver Solid Results in a Challenging Environment Notable year-on-year improvements in the quarter: • AWP and MP continued to improve profitability, delivering strong incremental margins in the quarter • Operating margin up 70 basis points, on an adjusted basis • Bookings up in AWP, C
Slide 4: Net Sales Bridge Q3-14 to Q3-15
Net Sales Bridge Q3-14 to Q3-15 USD Millions Q3 Net Sales (25) (27) 1,800 (8) (102) 3 (10) 1,600 1,400 1,810 1,641 1,200 1,000 800 4
Slide 5: OP Bridge Q3-14 to Q3-15
OP Bridge Q3-14 to Q3-15 USD Millions Q3 Operating Profit* 11 1 (5) 140 (17) 8 1 120 100 127 80 128 60 40 16% Operating Margin* Q3-14 Q3-15 13.8% 11.4% 12% 10.7% 7.7% 8% 7.0% 6.0% 5.6% 5.2% 4.1% 4% 3.0% 1.5% 0.8% 0% AWP Construction Cranes MHPS MP Terex Total *As adjusted 5
Slide 6: Q3 Continuing Operations Results
Q3 Continuing Operations Results USD Millions, except Earnings per Share Q3 2015 Q3 2015 Q3 2014 Q3 2014 As Reported As Adjusted* As Reported As Adjusted* Net Sales $1,641.3 $1,641.3 $1,809.8 $1,809.8 % Change Q3 2014 (9.3%) (9.3%) Gross Profit 336.6 342.8 357.3 367.4 Gross Margin 20.5% 20.9% 19.7%
Slide 7: Q3 Liquidity Bridge
Q3 Liquidity Bridge USD Millions 1,000 87 (25) (85) 34 (7) (12) 27 (8) 800 Free Cash Flow TFS Net Cash 600 $62 million 818 Impact 829 ($24) million 400 200 * *Net cash provided by operating activities plus increase in TFS assets, plus decrease in cash for securitization settlement 7
Slide 8: Sales by Geography 2015 vs 2014
Sales by Geography 2015 vs 2014 Western Europe North America Q3 Q3 FX-Adj. FX-Adj. (17)% (2)% (2)% Asia/ Oceania (1)% 3% Q3 FX-Adj. Other (20)% (10)% Q3 FX-Adj. 12% 13% LATAM 31% Q3 FX-Adj. 2015 Q3 2014 Q3 (21)% (3)% 5% Western Europe 30% Asia/ Oceania 33% 43% 40% Other LATAM 12% North America 13% 5
Slide 9: Aerial Work Platforms
Aerial Work Platforms USD Millions Q3 Backlog (<12 mo.) 350 300 250 312 298 200 214 150 2013 2014 2015 1,000 Net Bookings Book-to-Bill Ratio 250% • Solid backlog 207% and book-to-bill 800 200% 177% • Some softening 600 139% 150% in NA, pricing 114% and currency 97% 100% are headwinds 400 87% 85% 80%
Slide 10: Construction
Construction USD Millions Net Bookings Book-to-Bill Ratio • Dumpers and concrete products 250 149% 160% backlog up year on year 130% 140% 127% 126% • Terex® Fuchs material handlers 200 103% 120% flat to prior year 95% 93% 89% 100% 150 82% • Compact 75% 80% 82% equipment 100 69% 71% 60% businesses in
Slide 11: Cranes
Cranes USD Millions Net Bookings Book-to-Bill Ratio 600 160% 138% 140% 500 108% 120% 93% 98% 100% 97% 98% 95% 400 89% 100% 300 70% 80% 81% 76% 60% 200 69% 40% 100 20% 357 473 458 460 363 512 533 499 286 457 375 433 303 0 0% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 * Q3 '12 '12 '13 '13 '13 '13 '14 '14 '14
Slide 12: Material Handling & Port Solutions
Material Handling & Port Solutions USD Millions Net Bookings Book-to-Bill Ratio 600 148% 160% 140% 500 107% 109% 109% 120% 98% 97% 400 90% 90% 112% 93% 100% 71% 300 66% 70% 80% 60% 200 40% 100 20% 396 374 496 393 510 375 398 418 303 354 309 395 335 0 0% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 '12 '12
Slide 13: Materials Processing
Materials Processing Net Bookings Book-to-Bill Ratio 200 140% 119% 110% 106% 109% 120% 160 103% 96% 93% 98% 99% 94% 87% 100% 86% 81% 120 80% 60% 80 40% 40 20% 131 155 168 151 139 159 163 174 144 153 171 135 155 0 0% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2* Q3 '12 '12 '13 '13 '13 '13 '14 '14 '14 '14 '15
Slide 14: In Summary
In Summary • Solid performance in a challenging environment • Staying focused on internal improvement initiatives and taking steps to align business structures with markets • Full year outlook at or near the low end of the previously announced earnings guidance • Merger with Konecranes progressing,
Slide 15: Questions?
Questions? SITEREX | CORPORATION
Slide 16: Appendix
TEREX CORPORATION Appendix 16
Slide 17: Backlog Trend
Backlog Trend USD Millions Sequential Year on Year 2,364 Change Change 75 2,199 $ % $ % 67 2,141 Terex (353) (19%) (222) (13%) 79 2,001 51 1,796 1,828 1,835 879 61 1,704 64 MP (2) (3%) 7 12% 52 596 865 55 575 1,482 631 62 MHPS (55) (9%) (175) (23%) 827 805 751 563 539 576 673 661 204 540 Cranes (113
Slide 18: Backlog Trend – Currency Neutral
Backlog Trend – Currency Neutral USD Millions - Currency Neutral 2,364 Year on Year 75 2,199 Change 2,141 67 $ % 2,001 79 Terex (101) (6%) 51 1,796 1,828 1,835 879 52 61 1,704 596 64 865 55 575 1,603 MP 11 20% 66 631 827 805 MHPS (120) (16%) 751 631 563 673 539 661 204 540 138 501 458 Cranes (94) (1
Slide 19: YTD Continuing Operations Results
YTD Continuing Operations Results USD Millions, except Earnings per Share YTD Q3 2015 YTD Q3 2015 YTD Q3 2014 YTD Q3 2014 As Reported As Adjusted* As Reported As Adjusted* Net Sales $4,965.4 $4,965.4 $5,519.5 $5,519.5 % Change YTD 2014 (10.0%) (10.0%) Gross Profit 997.4 1,003.6 1,114.5 1,124.6 Gross
Slide 20: Q3 2015 Adjustments
Q3 2015 Adjustments USD Millions, except Earnings per Share Q3 2015 Merger Restructuring & Product Q3 2015 As Reported Related Related Campaign As Adjusted Net Sales $1,641.3 — — — $1,641.3 Gross Profit 336.6 — 3.7 2.5 342.8 SG&A (224.7) — 8.7 (216.0) Income From Operations 111.9 — 12.4 2.5 126.8 In
Slide 21: YTD 2015 Adjustments
YTD 2015 Adjustments USD Millions, except Earnings per Share YTD 2015 Merger Restructuring & Product YTD 2015 As Reported Related Related Campaign As Adjusted Net Sales $4,965.4 — — — $4,965.4 Gross Profit 997.4 — 3.7 2.5 1,003.6 SG&A (693.0) — 8.7 — (684.3) Income From Operations 304.4 — 12.4 2.5 3
Slide 22: Q3 2015 Adjusted OP by Segment
Q3 2015 Adjusted OP by Segment USD Millions Q3 2015 Gross Q3 2015 SG&A As Reported Profit As Adjusted AWP 79.4 — — 79.4 Construction 2.7 — — 2.7 Cranes 12.4 3.8 0.6 16.8 MHPS 10.3 — 0.6 10.9 MP 13.9 2.4 0.7 17.0 Corporate (6.8) — 6.8 0.0 Consolidated 111.9 6.2 8.7 126.8 22
Slide 23: YTD 2015 Adjusted OP by Segment
YTD 2015 Adjusted OP by Segment USD Millions YTD 2015 Gross YTD 2015 SG&A As Reported Profit As Adjusted AWP 226.6 — — 226.6 Construction (1.1) — — (1.1) Cranes 38.6 3.8 0.6 43.0 MHPS 7.3 — 0.6 7.9 MP 46.6 2.4 0.7 49.7 Corporate (13.6) — 6.8 (6.8) Consolidated 304.4 6.2 8.7 319.3 23
Slide 24: Q3 2014 Adjustments
Q3 2014 Adjustments USD Millions, except Earnings per Share Q3 2014 Q3 2014 Restructuring & Debt As Reported Related - MHPS Refinance As Adjusted Net Sales $1,809.8 — — $1,809.8 Gross Profit 357.3 10.1 — 367.4 SG&A (240.5) 0.6 — (239.9) Income From Operations 116.8 10.7 — 127.5 Interest Income (Expe
Slide 25: YTD 2014 Adjustments
YTD 2014 Adjustments USD Millions, except Earnings per Share YTD 2014 Restructuring & Debt YTD 2014 As Reported Related - MHPS Refinance As Adjusted Net Sales $5,519.5 — — $5,519.5 Gross Profit 1,114.5 10.1 — 1,124.6 SG&A (761.8) 0.6 — (761.2) Income From Operations 352.7 10.7 — 363.4 Interest Incom
Slide 26: Q3 2014 Adjusted OP by Segment
Q3 2014 Adjusted OP by Segment USD Millions Q3 2014 Gross Q3 2014 SG&A As Reported Profit As Adjusted AWP 68.4 — — 68.4 Construction 1.6 — — 1.6 Cranes 21.8 — — 21.8 MHPS 17.6 10.1 0.6 28.3 MP 8.7 — — 8.7 Corporate (1.3) — — (1.3) Consolidated 116.8 10.1 0.6 127.5 26
Slide 27: YTD 2014 Adjusted OP by Segment
YTD 2014 Adjusted OP by Segment USD Millions YTD 2014 Gross YTD 2014 SG&A As Reported Profit As Adjusted AWP 264.1 — — 264.1 Construction 0.6 — — 0.6 Cranes 51.3 — — 51.3 MHPS 14.0 10.1 0.6 24.7 MP 42.4 — — 42.4 Corporate (19.7) — — (19.7) Consolidated 352.7 10.1 0.6 363.4 27