Terex Materials Processing & Mining. Rick Nichols

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1 Terex Materials Processing & Mining Rick Nichols

2 Terex Materials Processing & Mining Mining Shovels MINING PRODUCTS AC Drive Trucks MATERIALS PROCESSING Crushing Plants Mining Drills Utility Auger Drills Crushing & Screening

3 Terex Materials Processing & Mining

4 Terex Materials Processing & Mining

5 Terex Materials Processing & Mining

6 Terex Materials Processing & Mining Vancouver, WA Gillette, WY Tulsa, OK Fort McMurray Alberta Gillette, Cedarapids, USA IA IA Sherman, TX Louisville, KY UK & Ireland Dortmund GERMANY Beijing CHINA Jakarta Indonesia Santiago CHILE Perth AUSTRALIA Mackay AUSTRALIA 6

7 Terex Mining Expanding Global Affluence Growing Demand for Energy and Materials GLOBAL GDP, ($T, PPP)* '80'84'88'92'96'00'04'08 '12'16'20'24 '28 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

8 Terex Mining Demand for Basic and Precious Materials Mining --COPPER, The Challenge of of Meeting Demand 25 Demand for Mining Equipment GLOBAL DEMAND FOR MINING EQUIPMENT ($B)** Reserves available New mining investments required to access 0 '04 '05 '06 '07 '08 New equipment required to support growth in output from existing mines Emerging opportunities in support of continuing exploration Growing annuities from equipment in place

9 Projected Global Production Levels for Commodities Coal - Billion Tons Iron Ore - Billion Tons Gold - Million Ounces Copper tons

10 How We Look at the Mining Market 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 29% Revenues By Region 9% 25% 11% 26% North America Europe Asia/Middle East Australia Rest of World

11 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

12 MT short ton average payload 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) Electronic slip/slide control Horsepower: 2797 kw (3750 HP) Dynamic retarding to full stop 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

13 New Products For The Drill Market SK-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 panels Positions Terex in the Large Mining Drill Market complementing Large Haul Truck & Shovel Products R30C Improvements 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)

14 New Developments CAT Engine Installation New Attachment Design New Control System Remote Service Capabilities CAL System

15 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 Track Cone Crusher Track Impact Crusher Vertical Shaft Impact Crusher Track Jaw Crusher Different designs for different crushing applications Differ in throughput, operating cost, and suitability for different input materials 7 primary competitors* Gyratory Crusher Cone Crusher Jaw Crusher Komatsu Astec Industries Sandvik Kalmar SMV CVS Ferrari Linde Atlas Copco * Includes all materials processing competitors. Some may not compete in these specific products

16 Terex Materials Processing Material clean-up Tracked Mobile Screen Horizontal Vibrating Screen Low Profile Vibrating Screen Different designs for different applications Differ in throughput, operating cost, and suitability for different operating environments Trommel Trommel Static Trommel Mobile Rinser Mobile Rinser/ Washer Recovery and Dewatering 7 primary competitors* Komatsu Astec Industries Sandvik Kalmar SMV CVS Ferrari Linde Atlas Copco * Includes all materials processing competitors. Some may not compete in these specific products

17 Projected Global Production Levels for Commodities US Aggregate

18 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)

19 Market Characteristics and Trends 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 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

20 Terex Materials Processing Market Trends 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

21 Market Characteristics and Trends Terex has approximately 20% of the combined crushing and screening market and 30% of the mobile market Market estimates Mobile market: Crushing -$1.6 - $1.8 Billion Screening - $700m - $800m Terex market-share: Crushing - 20% of the global Screening - 40% - 45% of the global Mobile portion is growing and static is declining

22 Terex Materials Processing Focused Market Strategy Focused on mobile product offering Growth area of market Revenues By Region 9% 2% 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 12% 35% 42% North America Europe Asia/Middle East Australia Rest of World

23 Terex Materials Processing Development Program XA 750 Jaw Crusher an entirely new Primary larger quarry and recycling Launch February R Screening Plant incorporating live pre screen and/or recirculating system Launch November 2007

24 Terex Materials Processing Development Program Launch May 2007

25 16x5 Horizon Horizon 16x5 Screen Plant to complement 20x8 introduced last year Launch May 2007 C1540 Jaw Crusher w/ Pre Screen Launch July 2008

26 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

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