Rick Nichols

Terex Materials Processing & Mining

Terex Materials Processing & Mining

Crushing & Screening

Mining Shovels Crushing Plants

Mining Drills Utility Auger Drills

AC Drive Trucks

MINING PRODUCTS MATERIALS PROCESSING

Terex Materials Processing & Mining

Terex Materials Processing & Mining

Terex Materials Processing & Mining

Terex Materials Processing & Mining

6

Fort McMurrayAlberta

Fort McMurrayAlberta

UK & IrelandUK & Ireland

SantiagoCHILE

SantiagoCHILE

PerthAUSTRALIA

PerthAUSTRALIA

JakartaIndonesiaJakarta

Indonesia

BeijingCHINA

BeijingCHINA

DortmundGERMANYDortmundGERMANY

Gillette, WYGillette, WY

MackayAUSTRALIA

MackayAUSTRALIA

Tulsa, OKTulsa, OK

Sherman, TXSherman, TX

Gillette, USACedarapids, IACedarapids, IA

Vancouver, WAVancouver, WA

Louisville, KYLouisville, KY

Terex Mining

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50

100

150

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'80 '84 '88 '92 '96 '00 '04 '08 '12 '16 '20 '24 '28

Expanding Global AffluenceExpanding Global Affluence Growing Demand for Energy and MaterialsGrowing Demand for Energy and Materials

GLOBAL GDP, ($T, PPP)*

• Global GDP expanding at 6.5% CAGR since 1980

• Recent growth is above trendline, driven by expansion in developing economies

• Long term outlook is strong as developing world trends continue

• Sustained Strong Demand

• New supplies required to support demand

Terex MiningDemand for Basic and Precious Materials Mining

- COPPER, The Challenge of Meeting Demand

Demand for Basic and Precious Materials Mining

- COPPER, The Challenge of Meeting DemandDemand for Mining EquipmentDemand for Mining Equipment

• Reserves available

• New mining investments required to access • New equipment required to support growth in output from existing mines

• Emerging opportunities in support of continuing exploration

• Growing annuities from equipment in place

10.4

14.116.2

18.320.3

0

5

10

15

20

25

'04 '05 '06 '07 '08

GLOBAL DEMAND FOR MINING EQUIPMENT ($B)**

Coal - Billion Tons

010002000300040005000600070008000

1980 1990 2000 2002 2004 2006 2007 2009 2010 2012 2014

Iron Ore - Billion Tons

0200400600800

1000120014001600

1980 1990 2000 2002 2004 2006 2007 2009 2010 2012 2014

Gold - Million Ounces

0

20

40

60

80

100

1980 1990 2000 2002 2004 2006 2007 2009 2010 2012 2014

Copper - 000 tons

0

5000

10000

15000

20000

1980 1990 2000 2002 2004 2006 2007 2009 2010 2012 2014

Projected Global Production Levels for Commodities

• Substantial profitable growth• Target 30% market share• Improvement of margins

• One face to the customer• Integrated sales and promotion strategy

• Strategic focus• Product Development Pipeline • Established/competent and committed distribution

• Increase own market coverage & intelligence• Intimacy with customer• Speaking the language of the customer

• Factual business decision making vs. instinct• Optimized business processes

• i.e. bids, key account management• Human Resources focus

How We Look at the Mining Market

Revenues By Region

25%

11%

26%

29%

9%

North America Europe Asia/Middle East Australia Rest of World

Terex Mining Supply Chain

Supply Chain Impacting Growth • Gearboxes• Castings for Attachments• Large Weldment

Lead times are extending and suppliers requiring securing capacity over longer period

Key supply chain activities• Second and third sourcing of alternative gearboxes • Castings sources being developed out of India, China and Romania • Additional weldment sources being developed with internal capability

MT 6300 - 400 short ton average payload

Axle Empty % Loaded %Front 229,000 lb 44% 431,000 lb 33%Rear 291,000 lb 56% 889,000 lb 67%Total 520,000 lb 1,320,000 lb

Payload: 363 MT (400 ton) GVW: 600,000 kg (1,320,000 lb)

EVW: 236,364 kg (520,000 lb) Tires: 59/80R63

Max Speed: 64 km/hr (40 mph) Horsepower: 2797 kW (3750 HP)

Electronic slip/slide control Dynamic retarding to full stop

New Products For The Drill MarketSK-L• Largest air compressor of any drill in its class• State of the art electronic microprocessor controls• Robust box-section high strength frame and mast• Full 360° elevated non-slip open walkways w/ easily removed

lightweight maintenance access panelsPositions Terex in the Large Mining Drill Market complementing

Large Haul Truck & Shovel Products

R30CImprovements over previous model:• Improved drilling coverage• Improved turnability for tramming• Updated larger cab with joystick controls• Electronic “SMART DRILL” to assist in drilling function• Low in-cab noise level (below 80 dBA)

New Developments

CAT Engine Installation

Remote Service Capabilities New Control System CAL System

New Attachment Design

Terex Materials Processing

Terex offers a full range of mobile and static Crushing and Screening equipment to satisfy virtually any need in any industry from landfill and waste management to quarrying, mining and everything in between

Crushing rock for disposal/ reclamation• Different designs for different crushing

applications• Differ in throughput, operating cost, and

suitability for different input materials

7 primary competitors*• Komatsu• Astec Industries• Sandvik• Kalmar

Vertical Shaft Impact Crusher

Cone Crusher

Track Impact CrusherTrack Cone Crusher

Gyratory Crusher Jaw Crusher

Track Jaw Crusher

* Includes all materials processing competitors. Some may not compete in these specific products

•SMV•CVS Ferrari•Linde•Atlas Copco

Terex Materials Processing

Material clean-up• Different designs for different applications• Differ in throughput, operating cost, and

suitability for different operating environments

7 primary competitors*• Komatsu• Astec Industries• Sandvik• Kalmar• SMV• CVS Ferrari• Linde• Atlas Copco

Tracked Mobile Screen

Horizontal Vibrating Screen

Low Profile Vibrating Screen

Trommel Trommel Static Trommel

* Includes all materials processing competitors. Some may not compete in these specific products

Mobile Rinser Mobile Rinser/ Washer Recovery and Dewatering

Projected Global Production Levels for Commodities

US Aggregate

What Do Our Products Do?

Crushers • Crush rock to size for specific uses in construction• Products include jaws, impactors and cones

Screens• Grade “aggregates” to size for specific use in construction• Typically inclined or horizontal and may use water to “wash” screened material• Typically screens and crushers are used by the same customer base and are both used

together as part of a process

Customer Base• Quarries, contractors (road builders), recyclers (demolition companies, land clearance), mines

(ores, road building)

• Since the 1970’s there has been a dramatic shift towards “mobile, crushing and screening.” Initially machines were built on wheels, which gave “site to site” mobility

Market Characteristics and Trends

• Trend since the late 1990’s is for the equipment to incorporate crawler tracks. This trend has been pioneered by European manufacturers

• Currently there are no wheeled manufacturers in Europe

• North America is moving to catch up with the tracked trend

Reasons for the trend from static to mobile (and now tracked mobile):• Increased flexibility

− Machines can move to material− Fixed plant requires material to move to plant

• Planning permission– For large quarries more difficult to get in the developed world– Operators less inclined to invest in large static plant, which have a longer payback timeframe

increasing on mobile plant• Production capabilities

− Becoming more “attractive” to larger producers• Expansion of the “customer base” involved in crushing and screening

– Now includes contractors versus traditional “aggregate producers”

Terex Materials Processing Market Trends

Market estimates

Mobile market:

• Crushing -$1.6 - $1.8 Billion

• Screening - $700m - $800m

Market Characteristics and Trends

Terex has approximately 20% of the combined crushing and screening market and 30% of the mobile market

Terex market-share:

• Crushing - 20% of the global

• Screening - 40% - 45% of the global

• Mobile portion is growing and static is declining

Terex Materials Processing Focused Market Strategy

• Focused on “mobile” product offering

• Growth area of market

• Focused on distribution model of “high wallet” share

• Focused on fast tracking growth in rapidly developing markets such as Eastern Europe and India

• Utilize the “twin channel” concept

Revenues By Region

35%

42%

2%

12%

9%

North America Europe Asia/Middle East Australia Rest of World

Terex Materials Processing Development Program

XA 750 Jaw Crusher an entirely new Primary larger quarry and recycling

Launch February 2008

Launch November 2007

1412R Screening Plant incorporating live pre screen and/or recirculating system

Launch May 2007

Terex Materials Processing Development Program

16x5 Horizon

Launch May 2007

Launch July 2008

Horizon 16x5 Screen Plant to complement 20x8 introduced last year

C1540 Jaw Crusher w/ Pre Screen

Terex Materials Processing Supply Chain• Supply chain constraints impacting growth curve

• Particular issues around:• Track supply (gearboxes)

• Bearings (large crushers bearings)

• Castings (carbon steel)

• Requirement shifting to place firm orders with suppliers over a longer time frame

• Key Actions:

• Expansion of supply base for critical items

• Enhanced scheduling with longer forecasting