Q Conference Call. August 2, 2017

Transcription

1 Q Conference Call August 2, 2017

2 Forward Looking Statements 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 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 goodwill 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 second quarter 2017 earnings release on the Investor Relations section of our website for a description and/or reconciliation of these measures. 2

3 Q2 Financial Highlights Results are Continuing Operations, Except Cash Figures Sales of $1.2 billion Cranes profitable in Q2 EPS of $0.98 as reported, $0.51 as adjusted (1) Updating FY adjusted EPS guidance to $1.05 to $1.15 Net cash provided in operating activities of $37 million, free cash flow (1) of $23 million Net working capital down to 22% of sales Backlog up 36% year on year (2) (1) See the appendix for reconciliation to US GAAP (2) Excluding the impact of business divestitures 3

4 Terex Strategy Focus Simplify Execute to Win 4

5 Strategy Deployment Highlights Focus Simplify Execute to Win Focus the Portfolio Rationalize Footprint and Reduce SG&A Commercial Excellence Lifecycle Solutions Strategic Sourcing Closed Coventry LBH sale Closed India LBH sale Closed Jinan facility Exited Noida facility Contract to sell Bierbach facility Cranes Germany restructuring plan agreed with Works Council Expanded sales execution and pipeline management capabilities Completed global parts assessment Hosted EU and NA supplier conferences 5

6 Aerial Work Platforms North American market stronger than forecasted Competitive global pricing and steel cost are headwinds Backlog up 46%, up in all major regions AWP Guidance Previous Updated Net Sales Down ~12% Down ~4% Operating Margin ~8% ~8.5% 6

7 Cranes Cranes profitable in Q2; expected to be profitable in second half Executing restructuring program Backlog up 29% Cranes Guidance Previous Updated Net Sales Down ~11% Down ~6% Operating Margin ~(2%) ~(1%) 7

8 Materials Processing Strong financial performance continues Growth in Fuchs material handlers Backlog up 33% MP Guidance Previous Updated Net Sales Up ~1% Up ~9% Operating Margin ~9.5% ~11% 8

9 Disciplined Capital Allocation Cash Flow from Operations + After-tax Proceeds from Divestures Optimal Capital Structure Organic Growth Investments Restructuring Investments Efficient Returns of Capital to Shareholders Monetized 7 million Konecranes shares for proceeds of $277 million, and a YTD total of $549 million Repaid the $254 million remaining 6.5% notes Repurchased ~9.4 million Terex shares for ~$316 million. First half total of ~15.9 million shares for ~$517 million Authorized new share repurchase program of up to $280 million Continue to repurchase shares under this program 9

10 Q2 Operating Results USD Millions, except Earnings per Share Q Q Q Q As Reported As Adjusted (1) As Reported As Adjusted (1) Net Sales $1,181.7 $1,181.7 $1,297.7 $1,297.7 % Change vs 2016 (8.9%) (8.9%) Gross Profit $240.7 $226.9 $242.1 $264.6 % of Sales 20.4% 19.2% 18.7% 20.4% SG&A ($164.8) ($144.8) ($168.7) ($157.9) % of Sales (13.9%) (12.3%) (13.0%) (12.2%) Income (loss) from Operations Operating Margin 6.4% 6.9% 5.7% 8.2% Interest & Other Income (Expense) 42.6 (11.1) (30.9) (23.7) Effective Tax Rate 19.5% 30.1% (157.9%) 27.0% Earnings (loss) per Share $0.98 $0.51 $1.00 $0.55 EBITDA (1) $89.8 $96.0 $90.6 $123.9 % Net Sales 7.6% 8.1% 7.0% 9.5% Note: Results shown are for Continuing Operations (1) See the appendix for reconciliation to US GAAP 10

11 2017 Full Year Guidance Update USD Millions, except Earnings per Share Terex Guidance (1) Previous Updated Net Sales Down ~12% Down ~6% AWP Operating Margin ~4.5% ~4.75% Cranes EPS $ $0.95 $ $1.15 (2) MP Interest/Other Expense ~($57) ~($50) Segment Guidance (1) Corporate & Other Previous Updated Previous Updated Down ~12% Down ~11% Up ~1% Net Sales Down ~4% Down ~6% Up ~9% Operating Margin ~8% ~8.5% ~(2%) ~(1%) ~9.5% ~11% ~$90 ~$25 ~($35) ~($65) (4) Tax Rate ~27% ~30% Depreciation/ Amortization (3) ~$65 ~$60 Free Cash Flow $0 - $50 $0 - $50 (1) Excludes the impact of future divestitures, restructuring, transformation and other unusual items, with the exception of Free Cash Flow (2) Based on an average share count of ~95 million which assumes completion of the authorized repurchase program (3) Depreciation/Amortization excludes ~$5 million of bank fee amortization not included in Income (loss) from operations (4) Includes additional costs of ~$11 million of incentive compensation, ~$10 million of strategic sourcing organization, and ~$7 million of foreign exchange 11

12 2017 Full Year Guidance Bridge USD Millions, except Earnings per Share Down ~(12%) Down ~(6%) $0.60 to $0.80 $0.80 to $0.95 $1.05 to $1.15 ~4.75% ~4.5% (1) Excludes the impact of future divestitures, restructuring, transformation and other unusual items 12

13 Summary Continued momentum in booking and backlog levels Improved full year outlook Met commitments on the Focus element of the strategic plan Implementing plans in the Simplify and Execute to Win priority areas Continue to return capital to shareholders 13

14 Questions? 14

15 Appendix 15

16 Backlog Trend USD Millions 1,434 1, , , , , , , , Sequential Year on Year $ % $ % AWP (126) (20%) % Cranes 52 13% % MP (18) (7%) 55 33% Total (92) (7%) % Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 AWP Cranes MP Backlog shown is deliverable in less than 12 months, and excludes discontinued operations and Corporate & Other 16

17 Global Sales Sales by Geography 2017 vs 2016 Q2 North America Actual FX-Adj. (1)% (1)% Q2 Western Europe Actual FX-Adj. (11)% (6)% E. Europe, Middle East & Africa Q2 Asia/ Pacific Actual FX-Adj. 14% 16% Q2 Actual FX-Adj. (12)% (7)% LATAM Q2 Actual FX-Adj. (15)% (13)% 2017 Q2 YTD 2016 Q2 YTD Western Europe Asia / Pacific 23% 26% E. Eu, ME, Africa LATAM 55% 13% 54% 10% North America 7% 2% 7% 3% Excludes discontinued operations and Corporate & Other 17

18 Aerial Work Platforms USD Millions $800 Net Bookings Book-to-Bill Ratio 180% $ % 170% 125% 160% 140% 120% $400 57% 80% 83% 70% 80% 82% 100% 80% 60% $200 40% 20% $0 $383 $444 $701 $418 $409 $378 $619 $579 $467 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1'17 Q2'17 0% Q2 '17 Q2 '16 YTD '17 YTD '16 Net Sales $ $ $ 1,065.4 $ 1,114.4 % Change vs. '16 (0.1%) (4.4%) Operating Profit (Loss), as reported Operating Margin % 10.3% 12.2% 7.7% 9.9% Operating Profit (Loss), as adjusted (1) Operating Margin % 10.3% 12.4% 7.8% 10.6% Backlog % Change vs. '16 46% (1) See further in the appendix for reconciliation to US GAAP 18

19 Cranes USD Millions $450 Net Bookings Book-to-Bill Ratio 133% 140% $400 $ % 97% 102% 118% 120% 100% $300 $250 95% 74% 82% 83% 80% $200 60% $150 40% $100 20% $50 $400 $272 $416 $293 $279 $228 $318 $343 $352 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1'17 Q2'17 0% Q2 '17 Q2 '16 YTD '17 YTD '16 Net Sales $ $ $ $ % Change vs. '16 (15.0%) (14.6%) Operating Profit (Loss), as reported 14.5 (12.8) (18.3) (29.4) Operating Margin % 4.8% (3.6%) (3.2%) (4.4%) Operating Profit (Loss), as adjusted (1) (17.3) (8.3) Operating Margin % 1.0% 1.5% (3.0%) (1.2%) Backlog % Change vs. '16 29% (1) See further in the appendix for reconciliation to US GAAP 19

20 Materials Processing USD Millions 320 Net Bookings Book-to-Bill Ratio 140% % 119% 94% 118% 100% 111% 95% 120% 100% % 80% % 60% 80 40% 40 20% 0 $183 $214 $244 $261 $236 $265 $236 $272 $264 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1'17 Q2'17 0% Q2 '17 Q2 '16 YTD '17 YTD '16 Net Sales $ $ $ $ % Change vs. '16 9.5% 10.3% Operating Profit (Loss), as reported Operating Margin % 12.6% 11.2% 11.5% 9.3% Operating Profit (Loss), as adjusted (1) Operating Margin % 12.7% 11.4% 11.5% 9.5% Backlog % Change vs. '16 33% (1) See further in the appendix for reconciliation to US GAAP 20

21 Q Adjustments USD Millions, except Earnings per Share Q Restructuring Extinguishment Asset Tax & Interim Q As Reported Deal Related & Related Transformation of Debt Impairment Period As Adjusted Net Sales $ 1, $ 1,181.7 Gross Profit (15.7) SG&A (164.8) (1.6) - (144.8) Income (loss) from Operations (12.6) (1.6) Net Interest (Expense) (13.6) (13.6) Other (Expense) 56.2 (60.2) Income (Loss) from Cont. Ops. Before Taxes (57.7) (12.6) (1.6) Benefit from (Provision for) Income Taxes (23.1) (2.7) (2.4) (21.4) Income (Loss) from Continuing Operations $ 95.4 (54.0) (11.6) (1.0) 1.5 $ 49.6 Earnings (loss) per Share $ 0.98 $ (0.56) $ (0.12) $ 0.16 $ 0.04 $ (0.01) $ 0.02 $

22 Q Adjustments USD Millions, except Earnings per Share Q Restructuring Tax & Interim Q As Reported Deal Related & Related Period As Adjusted Net Sales $ 1, $ 1,297.7 Gross Profit SG&A (168.7) (157.9) Income (loss) from Operations Net Interest (Expense) (24.4) (24.4) Other (Expense) (6.5) Income (Loss) from Cont. Ops. Before Taxes Benefit from (Provision for) Income Taxes 67.1 (3.9) (8.2) (77.4) (22.4) Income (Loss) from Continuing Operations $ (77.4) $ 60.6 Earnings (loss) per Share $ 1.00 $ 0.08 $ 0.18 $ (0.71) $

23 Q2 Adjusted OP by Segment USD Millions Q Q As Reported Adjustments As Adjusted As Reported Adjustments As Adjusted AWP $ 60.8 $ 0.3 $ 61.1 $ 72.5 $ 1.1 $ 73.6 Cranes 14.5 (11.4) 3.1 (12.8) MP Corporate & Other (34.8) 17.2 (17.6) (14.9) 13.2 (1.7) Continuing Operations $ 75.9 $ 6.2 $ 82.1 $ 73.4 $ 33.3 $

24 YTD Operating Results USD Millions, except Earnings per Share YTD 2017 YTD 2017 YTD 2016 YTD 2016 As Reported As Adjusted (1) As Reported As Adjusted (1) Net Sales $2,188.6 $2,188.6 $2,412.0 $2,412.0 % Change vs 2016 (9.3%) (9.3%) Gross Profit $393.0 $389.6 $423.8 $449.9 % of Sales 18.0% 17.8% 17.6% 18.7% SG&A ($323.4) ($292.8) ($339.1) ($314.4) % of Sales (14.8%) (13.4%) (14.1%) (13.0%) Income (loss) from Operations Operating Margin 3.2% 4.4% 3.5% 5.6% Interest & Other Income (Expense) (39.7) (18.3) (60.3) (45.6) Effective Tax Rate (17.4%) 29.9% (259.0%) 27.0% Earnings (loss) per Share $0.34 $0.54 $0.80 $0.60 EBITDA (1) $98.5 $125.7 $117.1 $167.9 % Net Sales 4.5% 5.7% 4.9% 7.0% Note: Results shown are for Continuing Operations (1) See the appendix for reconciliation to US GAAP 24

25 YTD 2017 Adjustments USD Millions, except Earnings per Share YTD 2017 Deal Restructuring & Extinguishment Asset Tax & Interim YTD 2017 As Reported Related Related Transformation of Debt Impairment Period As Adjusted Net Sales $ 2, $ 2,188.6 Gross Profit (11.5) SG&A (323.4) (2.0) (1.6) - (292.8) Income (loss) from Operations (3.6) (1.6) Net Interest (Expense) (33.2) (33.2) Other (Expense) (6.5) (31.0) Income (Loss) from Cont. Ops. Before Taxes 29.9 (24.9) (3.6) (1.6) Benefit from (Provision for) Income Taxes 5.2 (9.0) (0.5) (5.7) (18.8) (23.5) Income (Loss) from Continuing Operations $ 35.1 (33.9) (4.1) (1.0) 4.7 $ 55.0 Earnings (loss) per Share $ 0.34 $ (0.33) $ (0.04) $ 0.20 $ 0.33 $ (0.01) $ 0.05 $

26 YTD 2016 Adjustments USD Millions, except Earnings per Share YTD 2016 Restructuring Tax & Interim YTD 2016 As Reported Deal Related & Related Period As Adjusted Net Sales $ 2, $ 2,412.0 Gross Profit SG&A (339.1) (314.4) Income (loss) from Operations Net Interest (Expense) (47.9) (47.9) Other (Expense) (12.4) Income (Loss) from Cont. Ops. Before Taxes Benefit from (Provision for) Income Taxes 63.2 (5.5) (12.3) (69.7) (24.3) Income (Loss) from Continuing Operations $ (69.7) $ 65.6 Earnings (loss) per Share $ 0.80 $ 0.16 $ 0.27 $ (0.63) $

27 YTD Adjusted OP by Segment USD Millions YTD 2017 YTD 2016 As Reported Adjustments As Adjusted As Reported Adjustments As Adjusted AWP $ 82.5 $ 0.4 $ 82.9 $ $ 7.1 $ Cranes (18.3) 1.0 (17.3) (29.4) 21.1 (8.3) MP Corporate & Other (55.5) 25.7 (29.8) (40.9) 21.5 (19.4) Continuing Operations $ 69.6 $ 27.2 $ 96.8 $ 84.7 $ 50.8 $

28 Glossary In an effort to provide investors with additional information regarding the Company s results, Terex refers to various GAAP (U.S. generally accepted accounting principles) and non-gaap financial measures which management believes provides useful information to investors. These non-gaap measures may not be comparable to similarly titled measures being disclosed by other companies. In addition, the Company believes that non-gaap financial measures should be considered in addition to, and not in lieu of, GAAP financial measures. Terex believes that this non-gaap information is useful to understanding its operating results and the ongoing performance of its underlying businesses. Management of Terex uses both GAAP and non-gaap financial measures to establish internal budgets and targets and to evaluate the Company s financial performance against such budgets and targets. The amounts described below are unaudited, are reported in millions of U.S. dollars (except per share data and percentages), and are as of or for the period ended June 30, 2017, unless otherwise indicated. As changes in foreign currency exchange rates have a non-operating impact on the translation of our financial results, we believe excluding the effect of these changes assists in the assessment of our business results between periods. We calculate the translation effect of foreign currency exchange rate changes by translating the current period results at the rates that the comparable prior periods were translated to isolate the foreign exchange component of the fluctuation from the operational component. 28

29 Glossary: Free Cash Flow USD Millions Free Cash Flow - We calculate a non-gaap measure of free cash flow. We define free cash flow as Net cash provided by (used in) operating activities, plus (minus) increases (decreases) in Terex Financial Services ( TFS ) assets, plus (minus) decreases (increases) in cash balances held for settlement on securitized assets, less Capital expenditures. We believe that the measure of free cash flow provides management and investors further useful information on cash generation or use in our primary operations. Three Months Ended June 30, Six Months Ended June 30, Net cash provided by (used in) operating activities $ 37.2 $ $ (158.9) $ (6.4) Increase (Decrease) in TFS Assets (7.7) (25.2) (9.8) (20.5) (Increase) Decrease in cash for securitization settlement Capital expenditures (7.0) (21.9) (17.6) (44.1) Free Cash Flow 22.5 $ 72.9 $ (186.3) $ (64.8) 29

30 Glossary: Debt & Net Debt USD Millions Debt is calculated using the Condensed Consolidated Balance Sheet amounts for Notes payable and current portion of long-term debt plus Long-term debt, less current portion plus debt from liabilities held for sale. Net Debt is calculated as Debt less Cash and cash equivalents, including amounts in assets held for sale. These measures aid in the evaluation of the Company s financial condition. June 30, 2017 December 31, 2016 Long-term debt, less current portion $ $ 1,562.0 Notes payable and current portion of long-term debt Debt included in liabilities held for sale Debt ,592.6 Less: Cash and cash equivalents (555.5) (428.5) Less: Cash and cash equivalents in assets held for sale (3.1) (73.4) Net Debt $ $ 1,

31 Glossary: EBITDA USD Millions EBITDA is defined as earnings, before interest, other non-operating income (loss), income (loss) attributable to non-controlling interest, taxes, depreciation and amortization. The Company calculates this by subtracting the following items from Net income (loss) attributable to Terex Corporation: Net loss (income) attributable to noncontrolling interests; (Gain) loss on disposition of discontinued operations- net of tax; and (Income) loss from discontinued operations net of tax. Then adds the Provision for (benefit from) income taxes; Interest & Other (Income) Expense; the Depreciation and Amortization amounts reported in the Consolidated Statement of Cash Flows less amortization of debt issuance costs that are recorded in Interest expense. Terex believes that disclosure of EBITDA will be helpful to those reviewing its performance, as EBITDA provides information on Terex s ability to meet debt service, capital expenditure and working capital requirements, and is also an indicator of profitability. Three Months Six Months Ended June 30, Ended June 30, Net income (loss) attributable to Terex Corporation $ $ 65.1 $ 96.2 $ (5.7) Net income (loss) attributable to noncontrolling interest (0.5) (0.7) Net income (loss) (6.4) (Gain) loss on disposition of discontinued operations- net of tax (5.4) (0.1) (61.1) (3.5) (Income) loss from discontinued operations net of tax Income (loss) from continuing operations Provision for (benefit from) income taxes 23.1 (67.1) (5.2) (63.2) Interest & Other (Income) Expense (42.6) Income (loss) from operations Depreciation Amortization Bank fee amortization not included in Income (loss) from operations (1.0) (1.3) (2.3) (2.7) EBITDA Operating profit adjustments Adjusted EBITDA $ 96.0 $ $ $

32 Glossary: ROIC Return on Invested Capital ( ROIC ) continues to be a metric we use to measure our performance. ROIC and Non-GAAP Measures assist in showing how effectively we utilize capital invested in our operations. After-tax ROIC is determined by dividing the sum of NOPAT for each of the previous four quarters by the average of the sum of Total Terex Corporation stockholders equity plus Debt less Cash and cash equivalents for the previous five quarters. NOPAT for each quarter is calculated by multiplying (the sum of (i) Income (loss) from continuing and discontinued operations, (ii) the impact of the MHPS sale and (iii) transactions related to our Konecranes shares investment) by a figure equal to one minus the annualized effective tax rate of the Company. We believe that earnings/losses from discontinued operations, gain/loss on the MHPS sale and transactions related to our Konecranes shares investment as well as the net assets that comprise those operations invested capital, should be included in this calculation because it captures the financial returns on our capital allocation decisions for the measured periods. We have changed the calculation of the effective tax rate from the discrete quarterly tax rate to the annualized effective tax rate for each quarter. We believe this more closely aligns with how our investors consider the effective tax rate in ROIC. Furthermore, we believe returns on capital deployed in TFS do not represent our primary operations and, therefore, TFS assets and results from operations have been excluded from the Non-GAAP Measures. The annualized effective tax rate is equal to the (Provision for) benefit from income taxes divided by Income (loss) from continuing operations before income taxes. Debt is calculated using amounts for Notes payable and current portion of long-term debt plus Long-term debt, less current portion. We calculate ROIC using the last four quarters adjusted NOPAT as this represents the most recent 12-month period at any given point of determination. In order for the denominator of the ROIC ratio to properly match the operational period reflected in the numerator, we include the average of five quarters ending balance sheet amounts so that the denominator includes the average of the opening through ending balances (on a quarterly basis) thereby providing, over the same time period as the numerator, four quarters of average invested capital. 32

33 Glossary: ROIC Continued USD Millions See reconciliation of adjusted amounts below on the following ROIC tables. Amounts are as of and for the three months ended for the period referenced in the tables. Annualized effective tax rate (1),(2) 10.4% 10.4% 27.4% 27.4% Income (loss) from operations as adjusted $ 80.5 $ 71.1 $ (228.0) $ Multiplied by: 1 minus Effective tax rate 89.6% 89.6% 72.6% 72.6% Adjusted net operating income (loss) after tax $ 72.1 $ 63.7 $ (165.5) $ 86.3 Debt (as defined above) as adjusted $ $ 1,242.8 $ 1,592.6 $ 1,688.0 $ 1,709.0 Less: Cash and cash equivalents as adjusted (558.6) (816.4) (501.9) (343.7) (298.1) Debt less Cash and cash equivalents as adjusted $ $ $ 1,090.7 $ 1,344.3 $ 1,410.9 Total Terex Corporation stockholders equity as adjusted $ 1,311.1 $ 1,458.9 $ 1,246.2 $ 1,588.1 $ 1,527.2 Debt less Cash and cash equivalents plus Total Terex Corporation stockholders equity as adjusted $ Jun '17 Mar '17 Dec '16 Sep '16 Jun '16 1,744.5 $ 1,885.3 $ 2,336.9 $ 2,932.4 $ 2,938.1 June 30, 2017 ROIC 2.4% Adjusted net operating income (loss) after tax (last 4 quarters) $ 56.6 Average Debt less Cash and cash equivalents plus Total Terex Corporation stockholders equity as adjusted (5 quarters) $ 2,367.4 (1) The 2017 annualized effective tax rate is based on management s full year 2017 projections (2) The 2016 annualized effective tax rate is based on the full year 2016 actual results 33

34 Glossary: ROIC Continued USD Millions Reconciliation of income (loss) from operations: Three months ended 6/30/17 Three months ended 3/31/17 Three months ended 12/31/16 Three months ended 9/30/16 Income (loss) from operations $ 75.9 (6.3) (272.1) 39.6 Income (loss) from discontinued operations Pretax gain on sale of MHPS 79.5 Konecranes Dividend Income 13.5 Loss on sale of Konecranes stock 7.6 (13.2) Income (loss) from operations of TFS (3.0) (2.4) (6.7) (0.2) Income (loss) from operations as adjusted $ 80.5 $ 71.1 $ (228.0) $ Reconciliation of Cash and cash equivalents: As of 6/30/17 As of 3/31/16 As of 12/31/16 As of 9/30/16 As of 06/30/16 Cash and cash equivalents from continuing operations $ $ $ $ $ Cash and cash equivalents in assets held for sale Cash and cash equivalents as adjusted $ $ $ $ $ Reconciliation of Debt: Debt from continuing operations $ $ 1,242.8 $ 1,575.8 $ 1,663.5 $ 1,686.3 Debt included in liabilities held for sale Debt as adjusted $ $ 1,242.8 $ 1,592.6 $ 1,688.0 $ 1,709.0 Reconciliation of Terex Corporation stockholders equity: Terex Corporation stockholders equity as reported $ 1,539.8 $ 1,695.3 $ 1,484.7 $ 1,877.7 $ 1,856.1 TFS assets (228.7) (236.4) (238.5) (289.6) (328.9) Terex Corporation stockholders equity as adjusted $ 1,311.1 $ 1,458.9 $ 1,246.2 $ 1,588.1 $ 1,

35 Glossary: Working Capital USD Millions Working Capital is calculated using the Consolidated Balance Sheet amounts for Trade receivables (net of allowance) plus Inventories less Trade accounts payable and Customer advances. The Company views excessive working capital as an inefficient use of resources, and seeks to minimize the level of investment without adversely impacting the ongoing operations of the business. For the periods below, working capital was: June 30, 2017 Inventories Trade Receivables Less: Trade Payables (563.2) Less: Customer Advances (35.7) Total Working Capital 1,040.2 Trailing Three Months Annualized Net Sales is calculated using the net sales for the quarter multiplied by four. 3 Months Sales 1,181.7 Number of quarters x 4 Annualized Quarterly Sales 4,726.8 WC % of Quarter Annualized Sales 22.0% The ratio is calculated by dividing working capital by trailing three months annualized net sales. The Company believes this measures its resource use efficiency. 35