Q4 2015 Conference Call...This presentation contains forward-looking information regarding future...

Q4 2015 Conference Call February 17, 2016

Forward-Looking Statements

& Non-GAAP Measures

2

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,” “expects,” “intends,” “anticipates,” “plans,” “projects,” “estimates” and the negatives thereof and analogous or similar expressions are intended to identify forward-looking statements. However, the absence of these words does not mean that the statement is not forward-looking. The Company has based these forward-looking statements on current expectations and projections about future events. These statements are not guarantees of future performance.

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 cyclical and weak general economic conditions

affect the sales of our products and financial results; the effect of the announcement and pendency of the merger with Konecranes Plc

(“Konecranes”) on our customers, employees, suppliers, vendors, distributors, dealers, retailers, operating results and business generally,

and the diversion of management’s time and attention; our ability to successfully integrate acquired businesses, including the pending

merger with Konecranes; our need to comply with restrictive covenants contained in our debt agreements; our ability to generate sufficient

cash flow to service our debt obligations and operate our business; our ability to access the capital markets to raise funds and provide

liquidity; our business is sensitive to government spending; our business is highly competitive and is affected by our cost structure,

pricing, product initiatives and other actions taken by competitors; our retention of key management personnel; the financial condition of

suppliers and customers, and their continued access to capital; our providing financing and credit support for some of our customers; we

may experience losses in excess of recorded reserves; the carrying value of our goodwill and other indefinite-lived intangible assets could

become impaired; our ability to obtain parts and components from suppliers on a timely basis at competitive prices; our business is global

and subject to changes in exchange rates between currencies, commodity price changes, regional economic conditions and trade

restrictions; our operations are subject to a number of potential risks that arise from operating a multinational business, including

compliance with changing regulatory environments, the Foreign Corrupt Practices Act and other similar laws, and political instability; a

material disruption to one of our significant facilities; possible work stoppages and other labor matters; compliance with changing laws

and regulations, particularly environmental and tax laws and regulations; litigation, product liability claims, intellectual property claims,

class action lawsuits and other liabilities; our ability to comply with an injunction and related obligations imposed by the United States

Securities and Exchange Commission (“SEC”); disruption or breach in our information technology systems; and other factors, risks and

uncertainties that are more specifically set forth in our public filings with the SEC. 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 appendix at the end of this presentation as well as the Terex fourth quarter 2015 earnings release on the Investor Relations section of our website www.terex.com for a description and/or reconciliation of these measures.

3

Proud Past - Better Future

4

Operating Summary

• Sales declined 11.8% in the

quarter, 6.2% related to

currency translation

• Q4 EPS of $0.50 and FY EPS

of $1.84 as adjusted(1),

reported EPS of $0.13 and

$1.30 respectively

• Free cash flow(2) of

$290 million for the year

• Backlog up 17% from Q3-15

but down 13% year on year

(1) See the reconciliations to GAAP provided in the appendix of this presentation.

(2) Free cash flow = net cash provided by (used in) operating activities less capital expenditures, excluding the impact of Terex Financial Services

North America

Western Europe Asia/

Oceania

Other*

LATAM

Sales by Geography 2015 vs 2014

5

(4)%

Actual FX-Adj.

(4)%

3%

(4)%

Q4

FY (3)%

(34)%

Actual FX-Adj.

(32)%

Q4

FY

(16)%

Actual FX-Adj.

(6)%

(15)%

Q4

FY

5%

(26)%

Actual FX-Adj.

(16)%

(9)%

Q4

FY

Actual FX-Adj.

Q4

FY

3%

5%

3%

15%

(21)%

(17)%

(8)%

29%

15%

10%5%

41%

2015 Q4

Western Europe

Asia/ Oceania

Other

LATAM

North America

29%

12%

10%5%

44%

2015 FY

*Other includes Eastern Europe, Middle East, and Africa

0%

Q4 Continuing Operations Results

6

USD Millions, except Earnings per Share

Q4 2015

As

Reported

Q4 2015

As

Adjusted(1)

Q4 2014

As

Reported

Q4 2014

As

Adjusted(1)

Net Sales $1,577.7 $1,577.7 $1,789.4 $1,789.4

% Change Q4 2014 (11.8%) (11.8%)

Income From Operations 50.8 91.1 70.4 118.1

Operating Margin 3.2% 5.8% 3.9% 6.6%

Earnings per Share $0.13 $0.50 $0.71 $0.72

EBITDA $81.9 $122.2 $106.6 $154.3

% Net Sales 5.2% 7.7% 6.0% 8.6%

ROIC 6.6% 11.2%

Free Cash Flow $246.9 $226.7


FY Continuing Operations Results

7


FY 2015

As

Reported

FY 2015

As

Adjusted(1)

FY 2014

As

Reported

FY 2014

As

Adjusted(1)

Net Sales $6,543.1 $6,543.1 $7,308.9 $7,308.9

% Change FY 2014 (10.5%) (10.5%)

Income From Operations 355.2 410.4 423.1 481.5

Operating Margin 5.4% 6.3% 5.8% 6.6%

Earnings per Share $1.30 $1.84 $2.27 $2.35

EBITDA $478.1 $533.3 $571.1 $629.5

% Net Sales 7.3% 8.2% 7.8% 8.6%

ROIC 6.6% 11.2%

Free Cash Flow $289.6 $340.3


Aerial Work Platforms

8

USD Millions

637 571 517 342 451 799 603 382 936 500 374 439 698

177%

114%

87%

65%97%

139%

85%

65%

207%

100%

56%

80%

163%

0%

50%

100%

150%

200%

250%

0

200

400

600

800

1,000

Q4

'12

Q1

'13

Q2

'13

Q3

'13

Q4

'13

Q1

'14

Q2

'14

Q3

'14

Q4

'14

Q1

'15

Q2

'15

Q3

'15

Q4

'15

Net Bookings Book-to-Bill Ratio

Q4'15 Q4'14 FY 15 FY 14

Net Sales 455.3 468.2 2,213.4 2,369.7

% Change vs. 2014 (2.8%) (6.6%)

Operating Profit 42.7 38.7 269.3 302.8

Operating Margin% 9.4% 8.3% 12.2% 12.8%

Backlog 567.5 698.4

% Change vs. 2014 (18.7%)

• Cautious NA

rental market

• EU steady,

with some

upside

• Pricing

pressure

• Material cost

offsets

Cranes

• Continued softness in NA

crane market

• Towers stable

• Redesigned Explorer®

gaining acceptance

• Some softening in Utilities

USD Millions

* 473 458 460 363 512 533 499 286 457 375 433 303 446

93%

98%

89%81%

108%

138%

100%

69%97%

98% 95%

76%102%

0%

20%

40%

60%

80%

100%

120%

140%

160%

0

100

200

300

400

500

600

Q4

'12

Q1

'13

Q2

'13

Q3

'13

Q4

'13

Q1

'14

Q2

'14

Q3

'14

Q4

'14

Q1

'15

Q2

'15

Q3

'15

Q4

'15


9

Q4'15 Q4'14 FY 15 FY 14

Net Sales 437.3 474.3 1,699.7 1,791.1

% Change vs. 2014 (7.8%) (5.1%)

Operating Profit, as adjusted (1) 18.9 34.6 61.9 85.9


Operating Profit, as reported 18.9 34.6 57.5 85.9


Backlog 431.9 538.5

% Change vs. 2014 (19.8%)


Material Handling & Port Solutions

USD Millions

• Material Handling market flat,

opportunities with new products

• Growth in mobile harbor cranes

– flattening in ‘16

• Expect growth in gantry cranes

in 2016

10

374 496 393 510 375 398 418 303 354 309 395 335 290

90%

148%

107% 112%

71%

109%

98%

66% 70%

97%

109%

93%

75%

0%

20%

40%

60%

80%

100%

120%

140%

160%

0

100

200

300

400

500

600

Q4

'12

Q1

'13

Q2

'13

Q3

'13

Q4

'13

Q1

'14

Q2

'14

Q3

'14

Q4

'14

Q1

'15

Q2

'15

Q3

'15

Q4

'15


Q4'15 Q4'14 FY 15 FY 14

Net Sales 390.0 515.6 1,445.8 1,783.4

% Change vs. 2014 (24.4%) (18.9%)



Operating Loss, as reported (15.9) (31.2) (8.6) (17.2)

Operating Margin% (4.1%) (6.1%) (0.6%) (1.0%)

Backlog 538.7 574.8

% Change vs. 2014 (6.3%)


Materials Processing

11

• Accretive acquisitions

• Investing in products

• Persistent weakness in mining

sector remains a headwind

155 168 151 139 159 163 174 144 153 171 135 155 156

103%110%

86%94%

106% 109%

96% 93%98%

119%

81%

99% 95%

0%

20%

40%

60%

80%

100%

120%

140%

0

40

80

120

160

200

Q4

'12

Q1

'13

Q2

'13

Q3

'13

Q4

'13

Q1

'14

Q2

'14

Q3

'14

Q4

'14

Q1

'15

Q2*

'15

Q3

'15

Q4

'15

Net Bookings Book-to-Bill RatioQ4'15 Q4'14 FY 15 FY 14

Net Sales 164.1 164.4 636.5 653.1

% Change vs. 2014 (0.2%) (2.5%)



Operating Profit, as reported 10.5 18.2 57.1 60.6


Backlog 54.3 51.4

% Change vs. 2014 5.6%


USD Millions

Construction

• German compact market

remains soft

• Growth in NA Concrete

business

USD Millions

237 184 194 139 224 223 183 128 191 198 122 109 162

130%

95% 93%

82%

127%

126%

89%

69%

103%

149%

75%71%

120%

0%

20%

40%

60%

80%

100%

120%

140%

160%

0

50

100

150

200

250

Q4

'12

Q1

'13

Q2

'13

Q3

'13

Q4

'13

Q1

'14

Q2

'14

Q3

'14

Q4

'14

Q1

'15

Q2

'15

Q3

'15

Q4

'15


Q4'15 Q4'14 FY 15 FY 14

Net Sales 155.9 206.4 673.6 836.6

% Change vs. 2014 (24.5%) (19.5%)

Operating Profit (Loss) (9.1) 0.6 (10.2) 1.2

Operating Margin% (5.8%) 0.3% (1.5%) 0.1%

Backlog 145.9 137.9

% Change vs. 2014 5.8%

12

2016 Outlook

($ in Millions, except Earnings per Share)

USD Millions

Caution prevails in our markets:

• Commodity prices continue to

decline

• Currency markets remain volatile

• China growth slowing

• Geopolitical uncertainty

Focus on what we can control:

• Investing through the cycle – new

product development

• Manufacturing footprint / supply chain

• General & administrative expenses

• Restructuring actions

13

2016 Segment Outlook

14


USD Millions

(1) Reflects the re-segmentation of the Scrap Material Handling business from Construction to MP (approximately

$145 million revenue in 2015) and the Service business from Cranes to MHPS and AWP (approximately $100 million

and $30 million revenue respectively in 2015) and excludes the impact of future acquisitions, divestitures, restructuring

and other unusual items.

Net Sales Operating Profit

Guidance(1) Guidance(1)

AWP Down ~ 15% 10 - 11%

Cranes Down ~ 15% 3.0 - 4.0%

MHPS ~ Flat 2.0 - 2.5%

MP Up ~ 5% 7.5 - 8.5%

Construction Down ~ 15% (1) to (2%)

2016 Outlook


(2) Excludes the impact of future acquisitions, divestitures, restructuring and other unusual items.

15



2016

As Reported As Adjusted(1) Outlook(2)

Net Sales $6,543 $6,543 Down ~ 10%

Operating Margin 5.4% 6.3% 5.25 - 6.25%

EPS (cont.ops) 1.30 1.84 $1.30 - 1.60

Interest/Other Expense (128.6) (115.7) ~ (105)

Tax Rate 35.7% 30.4% 30 - 32%

Depreciation/Amortization 128.2 128.2 130 - 135

Free Cash Flow 289.6 289.6 200 - 250

Share Count 109.6 109.6 ~ 111

2015

Questions?

16

Appendix

17

Backlog Trend

Backlog shown is less than 12 months

USD Millions

18

$ % $ %

Terex 256 17% (263) (13%)

MP (8) (12%) 3 6%

MHPS (37) (6%) (36) (6%)

Cranes 5 1% (107) (20%)

Constr. 27 22% 8 6%

AWP 269 90% (131) (19%)

Sequential

Change

Year on Year

Change

295

523 418

214

698 699

436 298

567

166

214

188

132

138 204

164

119

146 501

673

661

552

539563

540

427

432

805

879

865

751

575

596

631

576

539

61

75

67

55

51

79

64

62

54

Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

AWP Construction Cranes MHPS MP

1,835

2,0012,141

1,482

2,3642,199

1,7041,828 1,738

$ %

Terex (157) (8%)

MP 6 12%

MHPS 10 2%

Cranes (79) (15%)

Constr. 13 9%

AWP (107) (15%)

Year on Year

Change

295

523 418

214

698 699

436 298

591 166

214

188

132

138 204

164

119

151 501

673

661

552

539563

540

427

460

805

879

865

751

575

596

631

576

585

61

75

67

55

51

79

64

62

57

Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

AWP Construction Cranes MHPS MP

1,835

2,0012,141

1,482

2,3642,199

1,7041,828

1,844

Backlog Trend – Currency Neutral

- Currency Neutral

USD Millions

19 Backlog shown is less than 12 months

Q4 2015 Adjustments

20

Net Sales $1,577.7 - - - $1,577.7

Income From Operations 50.8 1.6 4.0 34.7 91.1

Interest Income (Expense) (23.5) - - - (23.5)

Other Income (Expense) (7.0) 4.3 - - (2.7)

Income (Loss) from Cont. Ops before Taxes 20.3 5.9 4.0 34.7 64.9

Benefit from (Provision for) Income Taxes (5.6) (0.9) (0.8) (2.1) (9.4)

Noncontrolling Interest (0.1) - - - (0.1)

Income (Loss) from Continuing Operations $14.6 5.0 3.2 32.6 $55.4

Earnings per Share $0.13 $0.04 $0.03 $0.30 $0.50

Q4 2015

As Adjusted

Goodwill &

Intangible

Impairment

Restructuring &

Related

Merger

Related

Q4 2015

As Reported


FY 2015 Adjustments

21

Net Sales $6,543.1 - - - - $6,543.1

Income From Operations 355.2 1.6 16.4 2.5 34.7 410.4

Interest Income (Expense) (100.3) - - - - (100.3)

Other Income (Expense) (28.3) 12.9 - - - (15.4)

Income (Loss) from Cont. Ops before Taxes 226.6 14.5 16.4 2.5 34.7 294.7

Benefit from (Provision for) Income Taxes (81.0) (1.6) (4.1) (0.9) (2.1) (89.7)

Noncontrolling Interest (3.1) - - - - (3.1)

Income (Loss) from Continuing Operations $142.5 12.9 12.3 1.6 32.6 $201.9

Earnings per Share $1.30 $0.12 $0.11 $0.01 $0.30 $1.84

Product

Campaign

FY 2015

As Adjusted

Goodwill &

Intangible

Impairment

FY 2015

As Reported

Merger

Related

Restructuring &

Related


Q4 2014 Adjustments

22

Q4 2014 Q4 2014

As Reported As Adjusted

Net Sales $1,789.4 - - - $1,789.4

Income From Operations 70.4 31.5 16.2 - 118.1

Interest Income (Expense) (26.4) - - - (26.4)

Other Income (Expense) (4.6) - 2.9 - (1.7)

Income (Loss) from Cont. Ops before Taxes 39.4 31.5 19.1 - 90.0

Benefit from (Provision for) Income Taxes 41.5 (9.7) 0.6 (41.1) (8.7)

Noncontrolling Interest (1.0) - - - (1.0)

Income (Loss) from Continuing Operations $79.9 $21.8 $19.7 ($41.1) $80.3

Earnings per Share $0.71 $0.19 $0.18 ($0.36) $0.72

Net Tax

Impact

Restructuring

& Related

Portfolio

Management


FY 2014 Adjustments

23

FY 2014 FY 2014

As Reported As Adjusted

Net Sales $7,308.9 - - - - $7,308.9

Income From Operations 423.1 - 42.2 16.2 - 481.5

Interest Income (Expense) (112.5) - - - - (112.5)

Other Income (Expense) (13.4) 2.6 - 2.9 - (7.9)

Income (Loss) from Cont. Ops before Taxes 297.2 2.6 42.2 19.1 - 361.1

Benefit from (Provision for) Income Taxes (37.7) (0.9) (13.0) 0.6 (41.1) (92.1)

Noncontrolling Interest (0.5) - - - - (0.5)

Income (Loss) from Continuing Operations $259.0 $1.7 $29.2 $19.7 ($41.1) $268.5

Earnings per Share $2.27 $0.01 $0.26 $0.17 ($0.36) $2.35

Net Tax

ImpactDebt

Restructuring

and Related

Portfolio

Management


2015 Adjusted OP by Segment

USD Millions

24

Q4 2015 Q4 2015 FY 2015 FY 2015

As Reported As Adjusted As Reported As Adjusted

AWP 42.7 - 42.7 269.3 - 269.3

Cranes 18.9 - 18.9 57.5 4.4 61.9

MHPS (15.9) 34.7 18.8 (8.6) 35.3 26.7

MP 10.5 0.4 10.9 57.1 3.5 60.6

Construction (9.1) - (9.1) (10.2) - (10.2)

Corporate 3.7 5.2 8.9 (9.9) 12.0 2.1

Consolidated 50.8 40.3 91.1 355.2 55.2 410.4

Adjustments Adjustments

2014 Adjusted OP by Segment

USD Millions

25

Q4 2014 Q4 2014 FY 2014 FY 2014

As Reported As Adjusted As Reported As Adjusted

AWP 38.7 - 38.7 302.8 - 302.8

Cranes 34.6 - 34.6 85.9 - 85.9

MHPS (31.2) 64.4 33.2 (17.2) 75.1 57.9

MP 18.2 - 18.2 60.6 - 60.6

Construction 0.6 - 0.6 1.2 - 1.2

Corporate 9.5 (16.7) (7.2) (10.2) (16.7) (26.9)

Consolidated 70.4 47.7 118.1 423.1 58.4 481.5

Adjustments Adjustments

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