Terex Corporation · NYSE:TEX
Terex — Jefferies Industrials Conference 2024
14 slides from Terex's conference presentation, Sep 5, 2024
Slide 1: Jefferies Conference
Jefferies Conference Simon Meester, CEO Julie Beck, CFO September 5, 2024 EXECUTE • INNOVATE • GROW
Slide 2: Forward Looking Statements
Forward Looking Statements Certain information in this presentation includes forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”) and the Private Securities Litigation Reform Act of 1995)
Slide 3: Strong Commitment to Zero Harm Culture and Terex Values
Strong Commitment to Zero Harm Culture and Terex Values TEREX WAY VALUES... SUPPORT A STRONG COMPANY CULTURE Integrity • Guide team members' actions with all stakeholders, so the Company Respect performs at the highest level Improvement • Drive our unwavering focus on Zero Harm safety, strong govern
Slide 4: ... By Transforming the Company
… By Transforming the Company Divested capital intensive, Focused on areas with high Capitalized on operating low margin businesses growth potential, supported by system and process megatrends improvements Focus JANUARY 2017 2020 Sold Material Handling Accelerated operational Port Solutions excellen
Slide 5: Significantly Improved Results
Significantly Improved Results Sales ($B) and Operating Earnings Per Share ROIC (%) Margin 12.4% $2.6 5.4% $7.56 28.5% $5.2 $3.9 6.6% $1.30 2015 2023 Ongoing Divested 2015 2023 2015 2023 Significantly improved More than quadrupled profitability More than 5x EPS ROIC on higher sales 5
Slide 6: Q2 2024: Strong Execution by the Terex Team
Q2 2024: Strong Execution by the Terex Team $1.4B $193.1M 14.0% 25.9% $2.08 / $2.16 (GAAP / Adjusted)* (2%) (8%) (100) bps 370 bps EPS OUTLOOK Full-Year Adjusted EPS Outlook of $7.15 to $7.45 *See the appendix for GAAP to Non-GAAP reconciliation 6
Slide 7: Market Strength in Infrastructure, Utilities, Manufacturing & Recycling
Market Strength in Infrastructure, Utilities, Manufacturing & Recycling 7
Slide 8: Well-Positioned for Sustained Growth
Well-Positioned for Sustained Growth Megatrends Government Investment Sources: Mckinsey Global Institute; J.P. Morgan; Precedence Research; C&D Recycling Market: Municipal Waste Recycling Market 8
Slide 9: Ahead of Our Investor Day Targets
Ahead of Our Investor Day Targets Terex Sales Target ($B), Organic Terex OP Margin Target, Organic ~$6.0+ 13.0% - 14.0% 12.4% $5.2 9.5% $4.4 2022 2023 2027 2022 2023 2027 Organic Growth to ~$6.0B+ at 13-14% OP Margin 9
Slide 10: Acquisition of ESG - July 22, 2024
• ACQUISITION OF • JULY 22, 2024 E X E C U T E • I N N O V A T E • G R O W E X E C U T E • I N N O VAT E • G R O W
Slide 11: ESG Accelerates Long-Term Shareholder Value
ESG Accelerates Long-Term Shareholder Value Adds meaningful scale and significantly reduces cyclicality Financially accretive Tangible cost and revenue synergies Market leader in waste recycling Adds attractive addressable market in North America Reduces capital intensity 11
Slide 12: Produces a Scaled, High Performing and Diversified Platform
Produces a Scaled, High Performing and Diversified Platform Enhanced Business Mix with ~24% of revenue tied to ESG segment (Pro Forma) Revenue (Pro Forma) ~$5.3bn2 ~$6.2bn (2024 Outlook) Environmental EBITDA1 Solutions4 ~$750mm2 ~$960mm Includes Materials ~24% (2024 Outlook) ~$25mm of Processing ~42
Slide 13: Creates Three Market-Leading Business Segments with $40B TAM
Creates Three Market-Leading Business Segments with $40B TAM Environmental Solutions Materials Processing Aerials ESG Utilities • Market leader in providing solutions • Operates in high growth utility & • Global, well-established platform • Market leader in aerial work to waste end markets environme
Slide 14: Positioned to Deliver Long-Term Value
Positioned to Deliver Long-Term Value Diversified industrial leader well-positioned for profitable growth Excellent portfolio of market-leading business positioned to benefit from megatrends Operating system enables profitability through cycles and high ROIC Strong balance sheet and cash flow suppor