Aerial Work Platforms. Tim Ford

Transcription

1 Aerial Work Platforms Tim Ford

2 Agenda Business Overview Global Growth Potential Leadership Transition

3 Terex Aerial Work Platforms Articulating Booms Telescopic Booms Scissor Lifts Portable Material Lifts

4 Terex Aerial Work Platforms Construction Trailers Agricultural European Telehandlers Construction Telehandlers Light & Safety Generators Power Buggies

5 Terex Aerial Work Platforms

6 Terex Aerial Work Platforms

7 Terex Aerial Work Platforms

8 Terex Aerial Work Platforms Redmond and and Moses Lake, Washington Baraga, Michigan UK UK Elk Elk Point, South Dakota MEXICO Rock Hill, Hill, South Carolina FRANCE SPAIN GERMANY ITALY U.A.E. CHINA KOREA JAPAN Manufacturing Distribution Centers Sales/Service Office BRAZIL SINGAPORE SOUTH AFRICA AUSTRALIA

9 Agenda Business Overview Global Growth Potential Leadership Transition

10 Market Conditions Is the cycle peaking 5,000 Total Nonresidential Construction Spending Billions of US Dollars 4,000 3,000 2,000 1, US Rest of W orld Source: Global Insight 2007 Spring Global Construction Outlook.or is the best yet to come?

11 Market Summary Market Demand North America + Latin America ++ EMEAR (1) +++ Dynamics Big booms in high demand Scissors strong, telehandlers weak Unsettled channel Small market but growing Strong rental channel in western Europe Middle East white hot Russia and Baltics emerging Asia Pacific ++ (1) Europe, Middle East, Africa and Russia Australia rental channel consolidating Japan rebounding nicely Strong shipbuilding market in China and Korea

12 North American Channel Eight national rental companies are significant equipment buyers (1) H&E Caterpillar United Rentals Neff Sunbelt NES $3.0 Billion + RSC Hertz Current Market Forces Residential housing slow down Ownership of large rental companies by private equity Major players positioning for global expansion Source: Daniel Kaplan Associates, internal estimates Estimated 2007 total capital expenditures for selected companies (1) Independent Cat dealer purchases of AWP categories only Channel in in transition

13 North America Market Tepid 1Q order rate gaining momentum Balanced pricing equilibrium between buyers and sellers Cap Ex at majors but regionals and independents Users looking to extend useful life of equipment Growth Seasonal pattern returning after three years of straight line growth Solidified buying agreements with all major customers Focused sales effort targeted at independent rental companies Strengthening relationships in secondary equipment market

14 EMEAR Market Strong demand for aerials in all markets Early signs of channel consolidation in western Europe Middle East driven by dramatic commercial development Competitors adding capacity, defunct players returning Growth Appointed new EMEAR leader Opened new warehouse to handle increased capacity Added new offices in Middle East and Russia Began production of Z-45 in Italian factory in April

15 Asia Pacific Market Economic strength in developed countries underpinning growth Alternative methods still prevalent where productivity requirements and safety standards are less developed Regional competitors more prevalent than traditional players Growth Adding sales and service infrastructure throughout region Recent incorporation in three markets for further expansion Low cost country sourcing Evaluating Asian manufacturing locations

16 Lean as a Growth Driver Background Genie has utilized the Toyota Production System for a decade Three years of growth resulted in product out rather than improvement efforts 50+ leaders transplanted from Genie to Terex Institutionalized in the company Growth Reinvigorating lean efforts to drive cost out and quality up 40+ full time team members New product development using 3P methodology Extending to administrative processes, suppliers and customers

17 Agenda Business Overview Global Growth Potential Leadership Transition

18 Cultural Transition FROM Genie Founder led Redmond centric Lean manufacturing Protected from Terex TO AWP Empowered leadership team Global Lean enterprise Full transparency Cultural shift beginning

19 2007 Focus Areas Complete the leadership transition and build the team Globalize the business beginning in Europe Reinvigorate our emphasis on lean across the entire organization Extend the value proposition beyond products Strengthen key customer relationships across the business and make them personal Listen, learn and lead change

20 Summary AWP is a strong franchise, is performing well and has a great deal on which to build Our global markets are strong and we expect growth to continue for the foreseeable future Lean is a core element of our culture and an essential building block of our future The leadership transition is going smoothly and nearly complete

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