Terex Corporation · NYSE:TEX
Terex — Credit Suisse 7th Annual Industrials Conference (December 2019)
9 slides from Terex's conference presentation, Dec 4, 2019
Slide 1: Credit Suisse 7th Annual Industrials Conference
Credit Suisse 7th Annual John D. Sheehan Industrials Conference Senior Vice President December 4, 2019 Chief Financial Officer FOCUS • SIMPLIFY • EXECUTE TO WIN 1
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: Q3 Highlights
Q3 Highlights Results are Continuing Operations • Industrial equipment market softening • Pressure on AWP sales • AWP production declines impacting margins • MP continues strong performance • Excellent cash flow generation • Strong balance sheet and liquidity FOCUS • SIMPLIFY • EXECUTE TO WIN 3
Slide 4: Terex Strategy
Terex Strategy FOCUS • SIMPLIFY • EXECUTE TO WIN 4
Slide 5: Strategy Deployment Progress
Strategy Deployment Progress New Utilities Facility in Watertown, South Dakota Completed sale Demag® Mobile Cranes Focus High Performing Portfolio Completed transition to a two-segment organization Simplify Aggressively reducing cost structure Reduce Complexity and G&A New manufacturing facilities p
Slide 6: 2019 Guidance / 2020 Operations Outlook
2019 Guidance / 2020 Operations Outlook 2019 Continuing Operations Guidance (1) • Net sales of ~$4.4 billion • Operating margin of 8.3% to 8.5% • EPS of $3.00 to $3.20 • Anticipating full year free cash flow of ~$110 million 2020 Operations Outlook • Operationally planning for revenue down approxima
Slide 7: Disciplined Capital Allocation
Disciplined Capital Allocation • Q3 Free Cash Flow of $104 million Cash Flow from Operations + After- tax Proceeds from Divestures • In addition to FCF, generated $150 million of liquidity through portfolio actions including sale of Demag Mobile Cranes and ASV stock. ◦ Strengthened balance sheet by
Slide 8: Summary
Summary • In a softening environment for industrial equipment • Generating cash and aggressively managing working capital • Excellent liquidity, strong balance sheet and business portfolio • Continue to implement Simplify and Execute to Win priorities • Maintaining our disciplined capital allocation
Slide 9: Questions?
Questions? FOCUS • SIMPLIFY • EXECUTE TO WIN 9
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