Terex Materials Processing & Mining

Transcription

1 Terex Materials Processing & Mining MineExpo International 2008 September 22, 2008 Eric Nielsen President, Terex MP&M

2 Forward Looking Statements & Non-GAAP Measures The following presentation contains forward-looking information based on the current expectations of Terex Corporation. Because forward-looking statements involve risks and uncertainties, actual results could differ materially. Such risks and uncertainties, many of which are beyond the control of Terex, include among others: our business is highly cyclical and weak general economic conditions may affect the sales of its products and its financial results; our business is sensitive to fluctuations in interest rates and government spending; the ability to successfully integrate acquired businesses; the retention of key management personnel; our businesses are very competitive and may be affected by pricing, product initiatives and other actions taken by competitors; the effects of changes in laws and regulations; our business is international in nature and is subject to changes in exchange rates between currencies, as well as international politics; our continued access to capital and ability to obtain parts and components from suppliers on a timely basis at competitive prices; the financial condition of suppliers and customers, and their continued access to capital; our ability to timely manufacture and deliver products to customers; possible work stoppages and other labor matters; our debt outstanding and the need to comply with restrictive covenants contained in our debt agreements; our ability to maintain adequate disclosure controls and procedures, maintain adequate internal controls over financial reporting and file its periodic reports with the SEC on a timely basis; the previously announced investigations by the SEC and the Department of Justice; compliance with applicable environmental laws and regulations; product liability claims and other liabilities arising out of our business; and other factors, risks, uncertainties more specifically set forth in our public filings with the SEC. Actual events or the actual future results of Terex may differ materially from any forward looking statement due to those and other risks, uncertainties and significant factors. The forward-looking statements speak only as of the date of this presentation. Terex expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement included in this presentation to reflect any changes in expectations with regard thereto or any changes in events, conditions, or circumstances on which any such statement is based. Non-GAAP Measures: Terex from time to time refers to various non-gaap (generally accepted accounting principles) financial measures in this presentation. Terex believes that this information is useful to understanding its operating results and the ongoing performance of its underlying businesses without the impact of special items. See the Investors section of our website for a complete reconciliation. 2

3 Terex MP&M in Summary $2.4 B * provider of surface mining and aggregate equipment solutions sold to mining, quarrying, and construction customers worldwide Solid foundation of products, geographic presence and team member talent Profitable growth from machinery and aftermarket business Undertaking actions to accelerate growth and better serve our customers * Last 12 months through June 30,

4 Materials Processing & Mining Products Surface Mining Drills Mining Excavators Mining Trucks Highwall Miners Top 3 Top 3 # 3 # 1 Mobile Materials Processing Static Materials Processing Parts/ Tools # 1 Technology High Margin 4

5 Product & Geographic Mix PRODUCT MIX ($) GEOGRAPHIC MIX ($) 58% 47% 13% 13% 13% 29% 27% 29% 15% 22% 34% 35% 21% 19% 25% Q2 YTD Materials Processing Drills/ Other Trucks Excavators Q2 YTD Developing Markets Japan / ANZ W. Europe USA / Canada 5

6 Growing Profitability $B MP&M RESULTS $2.5 $2.0 $1.5 $1.0 $0.5 $ Q2 '08 (ltm) 30% 25% 20% 15% 10% 5% 0% Sales up 31% since 2004 (CAGR) Operating Profit up 51% (CAGR) Robust demand for mining and quarrying Sales Gross Margin Op. Margin 6

7 Terex Mining Global Network Locations: Terex Mining Channel partners Near our customer locations in all major market areas 7

8 Market Environment Pre-feasibiliy Feasibility Under Construction Expansion, Brownfield New Production Starts Number of Mining Projects by Project Phase Key Trends New green field projects Focus on quick start ups Prefer to minimize CAPEX, e.g. no electrification Very well suited for hydraulic excavators Shift towards larger size machines Higher rate of production Lower cost per ton Source: Raw Materials Group, Sweden Helps in overcoming the challenges of the shortage of skilled operators 8

9 100% Growth in Large Size Machines World Market Excavator Units by Class World Market Excavator Sales by Class Units t 160 t 240 t 350 t 500 t 700 t Millions USD t 160 t 240 t 350 t 500 t 700 t World Market Mining Truck Units by Class World Market Mining Truck Sales by Class Units Millions USD t 140 t 170 t 190 t 220 t 290 t 327 t 110 t 140 t 170 t 190 t 220 t 290 t 327 t Terex is well positioned for market needs Sources: VDMA for the 100 t class, Parker Bay for the classes over 160T (Excavators) & 140T (Trucks) 9

10 Hydraulic Excavators Superior mobility as compared to an electric rope shovel Leadership position in electric drive Well suited for rapid mine start-ups Largest hydraulic excavator with bucket size up to 50 cubic meters Hydraulic excavators beginning to replace electric rope shovels Higher mobility provides greater flexibility in mining operations 10

11 Full Range of AC Drive Hauling Solutions Leadership position in high efficiency AC drive trucks Higher up time Lower operating cost Higher payload Better operating performance compared to mechanical drive in starting torque travel speed braking 120 ton to industry leading 400 ton capacity AC electric drive trucks Lower total cost of ownership and superior performance 11

12 Mobile Materials Processing Portable and manoeuvrable for smaller spaces and between job sites Minimizes need for transportation of aggregate Low cost solution for meeting reuse/recycling laws Attractive for larger operators in times of market uncertainty due to mobility between sites or ability to use for a limited period of time and then sell Mobility and flexibility is highly desired by customers 12

13 Outlook Underlying drivers for global mining and aggregate demand are intact and are likely to continue Developing markets driving increased global demand Demand driving increased investment and activity Expanding need for equipment Competition will intensify, but we are well positioned to capitalize on strong global markets Strong product franchises Quality of global distribution Improving aftermarket capabilities 13

14 Commodity Pricing Trends REAL IRON ORE PRICES SINCE 1900 ( 07 $/TON) 1983 Reagan steel tariffs REAL ALUMINUM PRICES SINCE 1900 ( 07 $/TON) Omitted aluminum pre-wwii REAL COPPER PRICES SINCE 1900 ( 07 $/TON) REAL GOLD PRICES SINCE 1900 ( 07 $/troy oz) REAL SILVER PRICES SINCE 1900 ( 07 $/troy oz) Commodity prices are well above production costs GDP growth in developing markets driving demand Source: Analysis of USGS Historical Statistics for Mineral and Material Commodities 14

15 Strategy Key focus areas through New Product Introductions 2. Strength/ Consistency of Global Distribution, Service and Support 3. Globally Optimized Footprint & Cost Structure 4. Leveraging our Portfolio of Businesses 15

16 MP&M: New Product Introductions SK-L Electric Drive MT 6300 Large capacity drill to complement large haul and shovel products Electric drive option to lower fuel cost Work in progress on automation Increased focus on electric drive excavators to lower operating cost New markets for large excavators Work in progress on automation Ultra-capacity truck (400 t) Built with Terexdesigned drive system Trucks in operation in Australia and Canada 16

17 MP&M: New Product Introductions XA 750 Large Crusher, capable of producing 800 tons per hour Targeting large quarries and small mines Market launch scheduled for October/ November SCREEN Large capacity mobile horizontal screen Designed to work in conjunction with higher output crushing plant as part of a mobile system Target customers will be large quarries and mines 17

18 Distribution & Aftermarket Priorities OBJECTIVES Strengthen Global Distribution Raising the bar for standards Improving distribution capabilities Improved support for larger customers Extend into new geographies Greater Aftermarket Participation Improve aftermarket capabilities internally and in the channel Increase perceived value for Terex branded parts & service Add/improve maintenance & service capabilities Installed base continues to grow, driving aftermarket service opportunities EXAMPLE: HYDRAULIC EXCAVATOR INSTALLED BASE

19 MP&M: Manufacturing Footprint Crushing and Screening Products, UK Drills, Crushing and Screening Equipments, USA Mining Trucks Acuna, Mexico High Wall Miners, USA Excavators Germany New Factory Excavators Tianjin, China New Factory Crushing and Screening Products Hosur, India Adding footprint in India (Materials Processing) Adding small excavator capability in China (Mining) Evaluating acquisitions to accelerate global progress 19

20 Portfolio Leverage Segment: Roadbuilding and Construction Contractors Quarries/ Small Mines Large Mines MP&M Offering: Mobile Mobile Materials Materials Processing Processing Static Static Materials Materials Processing Processing Drills/ Drills/ Drilling Drilling Tools Tools Shovels Shovels and and Trucks Trucks Other Terex Offerings: Construction Construction Equipment Equipment Rigid Rigid and and Articulating Articulating Trucks Trucks Potential synergy within MP&M and across Terex Developing approaches to strategic accounts that provide value from a portfolio offering 20

21 Terex MP&M in Summary $2.4 B * provider of surface mining and aggregate equipment solutions sold to mining, quarrying, and construction customers worldwide Solid foundation of products, geographic presence and team member talent Profitable growth from machinery and aftermarket business Undertaking actions to accelerate growth and better serve our customers * Last 12 months through June 30,

22 Questions?