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August 10, 2011
Credit Suisse Industrials Conference
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Key ThoughtsKey Thoughts
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Stronger sales and operating margins expected for 2H of 2011 vs. 1H 2011
Increased productivity and normalized production schedules
Improved price increase realization
Component shortages improving
Backlog and orders remain solid
Restructuring and cost reduction activity in Cranes
Approximately $70M anticipated in annualized savings
~$30-35M in savings being realized in 2011, most in second half
Working capital improvements expected
Generate free cash flow from working capital conversion in 2H 2011
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Product LinesProduct Lines
Aerial WorkPlatforms
Boom Lifts Utility ProductsScissor Lifts Telehandlers
MaterialsProcessing
Crushing Screening & Feeders Trommels, Recycling & Washing
Cranes
All Terrain Crawlers Port EquipmentTowers
Construction
Compact Construction Off-Highway Trucks Material Handling
Rough Terrain
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Light Towers
Roadbuilding(Asphalt / Concrete Plants, Mixer Trucks)
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OverviewOverview
Diversified global manufacturer of capital goods machinery used in a broad rangeof industries and applications
Over 75% of sales generated in markets where Terex is a market leader
Expect to close in August, acquisition of 82% of Demag Cranes AG
5
NorthAmerica
35%
WesternEurope
26%
Asia
19%
LATAM
8%
Other
12%
LTMQ22011SalesbyGeography
AWP
29%Construction
25%
Cranes
34%MaterialsProcessing
12%
LTMQ22011SalesbySegment
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Terex Aerial Work PlatformsTerex Aerial Work Platforms
Predominantly large rental companiesreplacing fleets
Price increases effective with Q3 deliveries
All product categories experienced healthysales increases
Note: In Q2 FY10 there was a pre-tax provision of approximately $7 Mfor expected historical foreign duty and related obligations forcertain products.
66
NorthAmerica,65% Western
Europe,13%
Asia,9%
LATAM,10%Other,3%
AWP
($ in Millions)
Q2
2011
Q1
2011
Q2
2010
Net Sales
% Change vs. Q2 2011
484 377
28%
232
109%
Income (Loss) from Operations
Operating Margin
28
6%
6
2%
(2)
(1%)
Backlog
% Change vs. Q2 2011
448 446
1%
189
137%
Net Sales: $1.6B $ 2.4B $2.6B $2.4B $0.8B $1.1B
Net SalesLTM Q2 2011
Strength in N. America and W. EU stabilized
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Terex ConstructionTerex Construction
Solid demand for material handlers, backhoe loadersand off-highway trucks
Strong performance in Russia, Latin America andNorthern Europe
Roadbuilding underperformed mainly due togovernment financing constraints
Restructuring and other charges: Q2 FY11: $2M,Q1 FY11: $0M and Q2 FY10: $6M
77
NorthAmerica
30%WesternEurope
36%
Asia
12%LATAM
9%
Other
13%
Construction
($ in Millions)
Q2
2011
Q1
2011
Q2
2010
Net Sales
% Change vs. Q2 2011
361 343
5%
279
29%
Income (Loss) from Operations
Operating Margin
(7)
(2%)
(4)
(1%)
(17)
(6%)
Backlog
% Change vs. Q2 2011
301 240
25%
118
155%
Net SalesLTM Q2 2011
Strong performance in Russia, LATAM and N. EU
Net Sales: $1.4 B $1.7B $1.9B $1.8B $0.8B $1.0B
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Terex CranesTerex Cranes
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North American rough terrain and truck cranes orderprospects continue to improve
Some improvement in Port Equipment driven bystraddle carrier demand
Shifting delivery dates and order cancellationsdisrupted German cranes business in 1st half; Clarityimproving for 2nd half deliveries
Restructuring and other charges: Q2 FY11: $36M,Q1 FY11: $0M and Q2 FY10: $2M
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NorthAmerica
15%
WesternEurope
30%
Asia
30%LATAM
7%
Other
18%
Cranes
($ in Millions)
Q2
2011
Q1
2011
Q2
2010
Net Sales
% Change vs. Q2 2011
464 398
17%
449
3%
Income (Loss) from Operations
Operating Margin
(34)
(7%)
(23)
(6%)
17
(4%)
Backlog
% Change vs. Q2 2011
918 1,004
(9%)
691
33%
Net SalesLTM Q2 2011
North America starting to see recovery
Net Sales: $1.2B $1.8B $2.3B $2.8B $1.8B $1.7B
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Terex Materials ProcessingTerex Materials Processing
Strong demand for larger capacity machinesworldwide and reduced dealer inventories
Seasonal fluctuations in order activity Demand for new equipment being driven by:
Construction market recovery
Mining demand
New product offerings
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NorthAmerica,28%
WesternEurope
24%
Asia,26%LATAM,7% Other,15%Materials Processing
($ in Millions)
Q2
2011
Q1
2011
Q2
2010
Net Sales
% Change vs. Q2 2011
189 152
24%
136
39%
Income (Loss) from Operations
Operating Margin
21
11%
12
8%
9
7%
Backlog
% Change vs. Q2 2011
94 102
(8%)
122
(23%)
Strong global demand, especially in developing markets
Net SalesLTM Q2 2011
Net Sales: $0.6B $0.8B $1.0B $1.0B $0.4B $0.5B
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Backlog TrendBacklog Trend
Backlog stabilization gives positive indication of future ramp of sales
Q2 2011 backlog stabilized to 2006 levels($M)
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Net Working CapitalNet Working Capital
Inventory = our opportunity to improve cash flow1111
0%
5%
10%
15%
20%
25%
30%
35%
40%
0
250
500
750
1,000
1,250
1,500
1,750
2005 2006 2007 2008 2009 2010 2011F
NWCas%ofNetSalesNWC($Millions)
AWP Construction Cranes Materials
Processing NWC
as
%
of
Net
Sales
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2011 Outlook for Terex2011 Outlook for Terex
Note: All figures exclude the pending Demag acquisition, future acquisitions, restructuring and unusual items
* 1H 2011 figures in the table above are adjusted to reflect non-GAAP items. A reconciliation of non-GAAP operating income and EPS tocomparable GAAP operating loss and EPS is available in the appendix to this presentation
1H 2011 2H 2011Outlook
Current 2011Outlook
Net Sales $ 2.7 billion $ 2.7 2.9 billion $ 5.4 5.6 billion
Income fromOperations
$ 39 million* $ 140 170 million $ 179 209 million
EPS $ (0.07)* $ 0.47 0.67 $ 0.40 0.60
AWP and MP expected to deliver results in 2nd half 2011 consistent with previous outlook
AWP pricing actions and improved productivity are key
Cranes cost reductions, crawler and port equipment deliveries anticipated to improve 2nd half 2011 profitability
Construction demand improving, with supply risks moderating and full effect of pricing actions
Tax rate expected to be approximately 40% in second half
Share count of approximately 116 million based on a $26.80 share price
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600
400
200
0
200
400
600
800
1,000
1,200
1,400
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011F 2012G 2013G 2014G 2015G
OpInc(Loss)($Millions)NetSales($Millions)
NetSales OpInc(Loss)
Financial RoadmapFinancial Roadmap
Targeting over $8 Billion in net sales and 12% operating margin by 2013.and $9.8 Billion in net sales and 13% operating margin by 2015
24%
CAG
R
12%
CAGR
22%
CAG
R
10%
CAGR
1313Note: All figures exclude the pending Demag acquisition, future acquisitions, restructuring and unusual items
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Medium and Longer Term GoalsMedium and Longer Term Goals
SEGMENT RESULT Peak (LTM) 2010 2013 Goal* 2015 Goal*
AERIAL WORKPLATFORMS
Sales $ 2,700 M (Q2 FY08) $ 1,070 M $ 2,500 M $ 3,000 M
OP
Margin
17.0 % 0.3 % 14 % 15%
CRANES
Sales $ 2,889 M (Q4 FY08) $ 1,781 M $ 3,000 M $ 3,500 M
OP
Margin 14.0 % 2 % 12 % 13%
CONSTRUCTION
Sales $ 2,000 M (Q4 FY07) $ 1,088 M $ 1,600 M $ 2,000 M
OPMargin
5.0 % - 5 % 8 % 10%
MATERIALS
PROCESSING
Sales $ 1,107 M (Q3 FY08) $ 533 M $ 1,100 M $ 1,300 M
OPMargin
13.7 % 5 % 13 % 14%
* Operating margins reported using new corporate allocation method14
Note: All figures exclude the pending Demag acquisition, future acquisitions, restructuring and unusual items
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Demag AG Progress SummaryDemag AG Progress Summary
Approximately 82% of Demag Cranes AG shares outstanding
have been tendered or already owned by Terex
Received clearance from US and EU antitrust authorities
Syndication of new term debt completed
Plan to close later this month
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Demag Cranes AG recent Q3 resultsDemag Cranes AG recent Q3 results
Strong performance overall
Most key performance metrics were up, both on a year-over-yearand sequential quarterly basis
Revenue increased to EUR 260M (+26% from Q3 2010)
Operating EBIT increased approximately 87% to EUR 19M over the same period
Order book increased to EUR 395M (+16% from Q3 2010)
All business segments had increased orders in the quarter
Port equipment showing the strongest growth (+25%)
Demag Cranes AG management raised guidance for revenue and operatingEBIT for current and future periods
Management anticipates continued economic growth especially in emerging markets of
Brazil, India and China*
16*excluding possible effects from macroeconomic uncertainties
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DemagDemags Products and Servicess Products and Services
Standard and Process Cranes
Crane Construction Kit
Rope and Chain Hoists
Drives
LTM Sales $1,481mLTM EBITDA(a) $131m (Margin: 8.9%) Q3 2011 Employees 6,001
LTM EBIT(a) $100m (Margin: 6.8%)
Port TechnologyIndustrial Cranes Services
Maintenance
Modernization
Sale of spare parts
Full-service contracts
Mobile Harbor Cranes
Automatic Guided Vehicles andStacker Cranes
Software solutions
Sales: $658m
EBITDA: $26m (Margin: 4.0%)
Sales: $360m
EBITDA: $21m (Margin: 5.9%)
Sales: $463m
EBITDA: $92m (Margin: 19.8%)
Source: Company informationNote: Based on the current $US/ rate of 1.429.(a) Adjusted to reflect the effects of operating adjustments; includes Holding costs of $7.9m.
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DiversifiedDiversifiedProducts & GeographyProducts & Geography
Source: Company information (a)Based on the /US$ rate of 1.429. (b) Comprises Terex and Demag Port Equipment businesses.
Cranes29%
Aerial WorkPlatforms
29%
Construction25%
MaterialsProcessing
12%
Port Equipment5%
IndustrialCranes
44%Services
31%
$1,481m(a)
LTM Q3
PortTech.25%
$6,573mLTM
Cranes23%
Construction20%
Aerial WorkPlatforms
22%
PortEquipment(b)
9%
IndustrialCranes
10%
MaterialsProcessing
9%
Services7%
$5,092mLTM Q2
Rest ofWorld40%
NorthAmerica
35%
Rest of
Europe18%
Germany7%
Rest ofWorld40%
Rest ofEurope
30%
Germany19%
North America11%
Rest ofWorld40%
Rest ofEurope
21%
NorthAmerica
29%
Germany10%
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SummarySummary
Making progress.still significant work in front of us
Delays / disruptions in supply are slowing or are mitigated
Productivity/utilization/pricing effect expected to more than offset input costs in 2nd halfof 2011
Complete, continue, and initiate new cost reduction activities
Generate free cash flow mainly from working capital improvement
Remain focused on the profitable growth goals previously established
Demag Cranes AG will give Terex strong position in port equipment and industrialcranes
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Appendix:Non-GAAP Financial Measures
$ in Millions (except EPS) Q1 2011 Q2 2011 1H 2011
Operating Profit /(Loss) As Reported $ (9) $ 7 $ (2)
Restructuring and Related ItemsCustomer Insolvency
$ 1$ 4
$ 36$ -
$ 37$ 4
Op Profit / (Loss) As Adjusted $ (4) $ 43 $ 39
EPS As Reported $ 0.04 $ 0.01 $ 0.05
Bucyrus Share Sale GainRestructuring and Related ItemsEarly Retirement of DebtCustomer InsolvencyDemag Cranes AG Acquisition Charges
$ (0.28)$ -$ 0.04$ 0.03$ -
$ (0.22)$ 0.29$ -$ -$ 0.02
$ (0.50)$ 0.29$ 0.04$ 0.03$ 0.02
EPS As Adjusted ($ 0.17) $ 0.10 ($ 0.07)
Note: The table above presents reconciliations of non-GAAP operating income and EPS to comparable GAAP operating loss and EPS