Presentation Title Goes Here

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Terex Construction Robert Isaman, President
Terex Construction
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Terex Construction Products
Heavy Equipment
Trucks
Articulated Haulers
Motor Scrapers
Excavators
Large Wheeled Loaders
Compactors
Rigid Haulers
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Terex Construction Products
Light Construction
Material Handlers
Loader Backhoes
Site Dumpers
Material Handlers
Mini Compactor
Mini Midi Excavators
Wheel Loader
Telehandlers
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Terex Construction Sales Footprint
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2007 Terex Construction Manufacturing Footprint
Manufacturing Locations
EMEA facilities operations improvements underway
EMEA
Sanhe, PRC mini-excavator facility operational
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Americas
Nodia, India back-hoe loader facility operational
Asia
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Terex Construction Transformation
2006 Tomorrow
Many small companies One Terex
European-Centric manufacturing Globally balanced (flexible factory) footprint
Complex few standard processes Simple standard processes, best practices
Independent local supply chains Holistic global supply chain
Nation of Tribes Distribution focused on the customer
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Strategy to Reach Full Potential
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Optimize Profitability of Current Portfolio
Build around Strongest and Most Attractive
Businesses
Build a Long-term RepeatableSystem
Cost and asset structure Redesign processes Focus investments Develop strongest markets Evaluate disruptive business model where weak Roll-out winning models Focused acquisition
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2007-2008 Focus
Supply chain efficiency Production
effectiveness Pricing Acquisition integration
Margin expansion/ productivity
Regionally focused product/service
innovations Marketing effectiveness closer to
the customer Aftermarket investments BRIC 7
expansion
Growth
Asset velocity Working capital Fixed asset
productivity
Cash generation
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Margin Expansion/Productivity Programs
Terex Construction Operations Transformation
May 2007
Jan 2008
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Mother/Daughter Manufacturing Lines
Example of producing scissor lifts from the
Aerial Work Platform Segment in a Construction
Segment facility in Coventry, UK

Takt time is the available minutes in a
production day divided by the required output,
which is then used to set the production pace
for the day.
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Goal Globally Balanced (Flex Factory) Footprint
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Growth Get Closer to the Customer
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Growth Invest in Strong, Attractive Businesses
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Growth Fill Product and Segment Gaps

• Best in class technology with Unique Posi-Track
  undercarriage 10 year patent protection
• Compact track loaders compete in large skid steer
  market
• Owns Loegering bolt-on track systems
• Global opportunity 90 of sales in the U.S.
  no sales to Europe
• 313 independent ASV dealers (primarily North
  America) minimal rental channel participation
• Operating profit 7.8 (cyclical low), vs. 17.2
  in 2005

A A
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Growth Increase Dealer Effectiveness

• Measuring Dealer Performance, Best Practices and
  Capabilities

• Distributor Capabilities include
• Staffing
• Training
• Marketing
• Service Infrastructure
• Parts Infrastructure
• Business Management
• Facility

3 Crown

• Performance Metrics include
• Market Share
• Customer satisfaction
• Number of Terex lines carried
• Parts sales
• Equipment sales
• Year over year growth
• Utilization of Terex Financial Services
• Rental

2 Crown
1 Crown
0 Crown Qualifying
Crowns are stretched - fix
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Summary
Aggressive full potential profitability plan in
motion

• Cost reduction sourcing, low-cost country
  footprint, process discipline
• One face to customer, closer to the customer
• Expansions in Brazil, Russia, India, China, 7
  other low market penetration countries
• Competencies exist for integration of mergers and
  acquisitions

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