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
0
50
100
150
200
250
300
350
'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