Operations Review

1. Operations Review Phil Widman, Chief Financial Officer Tom Riordan, President & Chief Operating Officer

2. Agenda Horizontal Integration Opportunities Information Systems Emerging Markets Global Manufacturing Footprint Supply Chain Management Lean Emphasis Financial Services Cash Utilization Priorities New Product Development

3. Horizontal Integrators – Key to Success

4. Opportunities within Information Systems Terex Management System Multi-year implementation Benefits realized through information availability to make better decisions Initial focus on major geographies of USA, UK and Germany An enabler to assist in the integration of information across our operations

5. Common vs. Unique System Requirements More Common Chart of Accounts Legal Entity / Organization Structure Common Processes Uniqueness Customer / Supplier Numbering Commodity Classification More Unique Mode of Manufacturing BOM Configurations A a Redmond Watertown Cedar Rapids Waverly Motherwell Dortmund Perugia Zweibrücken

6. Opportunities within Information Systems E-cost – supply management Service Part Demand Planning Customer facing processes Email and collaboration capabilities Global IT network infrastructure Other initiatives justified on their merits, pursued in parallel to ERP implementation

7. Operations Overview • Near term and longer term opportunities for Terex include: • Strategy • Growth in emerging markets • Supply management • Process improvement and emphasis on lean • New product development

8. Corporate Strategy Map OPERATIONAL EXCELLENCE INTENSE CUSTOMER FOCUS PROFITABLE GROWTH Most Customer Responsive – Delighting Customers with a Superior Ownership Experience People to People Solutions“Relationships that I can depend on to help me ” Customer-Defined Value “Deliver highly competitive entry, operating and exit value” Make My Job Easier“Make it easy for me to run my business” Most Profitable Drive Shareholder Value (After-tax ROIC) Financial Increase Operating Margin Generate Cash Flow Grow Revenue Customers World-Class Business Model Build a lean quality enterprise Know the customer Expand competitive positionin low or emerging market share areas Build a global supply chain that creates a competitive advantage Execute service delivery models Develop and expand channels best aligned to customer value Processes Optimize the asset base Establish win-win relationships with customers, dealers, & channel partners Leverage voice of the customer for effective new product development Implement closed-loop customer feedback process Excel at profitable acquisition and integration process Speed & deployment of know-how Preferred Place to Work – Energized People who Think Terex Team Acquire, develop, and retain diverse and agile Team Members Provide optimal team member experience & engagement Intentionally build theTerex culture Live the Terex Values

9. Background/Situation • Terex is underrepresented in several key growth economies around the world • These economies present both opportunities and risks for our company that can only be addressed through significant and decisive action • Success will require facing global realities as one company, not a collection of businesses operating independently and at small scale • In 2008, we will: • Establish one company strategies in major developing markets • Put an organization in place that is equipped to execute these strategies • Increase intensity in developing markets by investing significant new talent and capital where long term strategic value is the greatest

10. Why Emerging Market Growth? 2006 2016 62 % 57 % 56 % 44 % 18 % 33 % ? 80 % N. America, W. Europe, ANZ Japan, South Korea BRIC + Mexico Other Countries Sources: Analysis of data from the Economist, Global Insights, and Terex internal sources

11. Where Emerging Market Growth? ANNUAL CONSTRUCTION SPENDING, 2006 + GROWTH TO 2016 ($B, ’07) 10 YR CAGR GLOBAL PRIORITIES 3 % • Existing core, although lower growth, remains a significant opportunity • China is, by far, the greatest developing world opportunity • Terex is aggressively establishing a presence in India, Russia & Brazil in order to grow with the market as it develops • Significant opportunities in other countries as these markets continue to emerge 2 % 15 % 10 % 8 % 5 % 6 % 7 % Sources: Analysis of data from Global Insights

12. Supporting Footprint Objectives • Increase manufacturing presence in the emerging countries (China, India, Brazil, etc.) • Establish local product and corresponding cost positions to appropriately serve local market needs • Leverage product and cost positions internationally

13. Investment In China–Foundation for Future Growth Baotou Terex NHL Manufacture trucks Terex NHL Atlas Manufacture hydraulic excavators Terex NHL Unit Rig Sales/service and fabricate dump bodies Beijing Terex China Management Material processing & Mining Sales and service Terex O&K Sales and service Terex Hypac Sales and service Demag Sales and service Beijing Baotou Sanhe Tianjin Sanhe Sanhe Factory Manufacture mini excavators Shanghai Shanghai Genie Sales and service with manufacturing in 2009 Roadbuilding Sales and service Demag Shanghai Technical Service Center Luzhou Tianjin Tianjin Factory Manufacture tower cranes sections Luzhou Changjiang CraneManufacture truckcranes

14. Metrics for Success Measures of success are straightforward: revenues by country, earnings by country, assets by country – need to globalize sustainably Goal is for emerging markets to be additive to success in existing core markets Globalization will increase competitiveness everywhere

15. Supply Management Vision Statement Terex Global Supply Management Vision “The Terex Supply Management team exists to create value and competitive advantage by reducing total cost and improving supply chain performance”

16. Global Sourcing Initiative: Progress in 2006 Purchasing: Progress in 2006 • Developed with the collaboration • of 40 individuals from all five divisions • Global access through Internet Commodity Q1 2006 ecost – a tool that tells us who buys what from which supplier Supplier BU Q2 2006 External communication with suppliers • Letter to inform 2,100 incumbent suppliers • 1,700 new suppliers committed to challenge incumbents Q3 2006 Cost regression analyses -combines ecost data with technical specifications • 10 multivariate regression models with in average 20 cost drivers • Involved 100 buyers and engineers Q4 2006 Supplier bids -based on comprehensive technical specifications • First negotiations conducted

17. Category’s Being Sourced Commodity Prioritization Expectedaverage savings Valves, hydraulic Other consumables,tools & dispatch kits Documentation Clamps, ties & straps Plastic,polymers& rubber Paint & coatings Fittings & adaptors Aluminum Cabs, accessories& ropes Other hydraulic & pneumatic components Transmissions,hydrostatic Bearings, bushings & accessories Machined components, steel Othermechanicalcompo-nents Otherhardware Otherelectrical & controlcomponents Gearboxes& gears Indirectspend Pumps & pumpassemblies, hydraulic Product identification & labeling Motors,hydraulic Other materials Cylinders Fluid transfer& control,non-hydraulic Fasteners & retainer rings Other structural fabricated components Otherpowertrain Hoseassemblies Controllers, timers, control modules & PBC Batteries Crawler trackassemblies Complexassemblies Axles Other running gear Other powerplants, IC engine Steel Tire &wheelassemblies Tires,rubber Castings &forgings Engine,diesel Weldment,steel Third priority Second priority High priority Ease of Implementation Difficult Easy Size of bubble: Total spend of respective commodity

18. Manage Suppliers Preferred Suppliers Supplier Integration Supplier Partnerships Strategic Sourcing Supplier Development World Class Supply Base Supplier Exit Advanced Sourcing 2008 - 2009 2009 - 2011 2008 Near Term Objective Building and Qualifying Supplier Relationships

19. Total Direct Spend Country Distribution $130.5 M (2%) $388.5 M (7%) • China procurement office with ~ 20 team members • India procurement office with ~ 10 team members • Goal of 20-25% of sourcing from Low-Cost countries by 2010 $4.8 B (91%) Total Direct Spend: US$ 5.3B

20. Critical Issues Status Improve supplier deliveries by 25% each of the next three years Reduce re-order lead-times by 10% for each of the next 3 years Support new product development program by integrating key suppliers Improve supplier quality by 30% year over year Reduce cost to manage suppliers by 30% in 2010 A 2-3% incremental margin improvement on supplier spend is a reasonable objective

21. Supply Base Restructure – US Steel Fabrications • Competitive selections made through strategic sourcing process • Develop long term relationships based on cost transparency, collaborative material management and joint continuous improvement • Lead division approach expansion to other Terex North American facilities during 4Q2008 Total Cash Flow Savings = $7.3M, or 16.47% • 3 Preferred Fabrication Suppliers in North America: • Lead Time Reduction • Quality Improvement • On Time Delivery • Cost Productivity A A

22. Supply Base Restructure – Europe Direct Steel • Competitive selections made through strategic sourcing process • Consolidate multi-site Terex direct and key fabricator steel usage into regional supply agreements, i.e., One Terex • Develop long-term relationships with select mills based on product portfolio, distribution/service center capabilities, and price transparency linked to index movement • Lead regional approach to global expansion during 2008, with emphasis on LCC steel mill partner 2008 Forecasted Cash Flow Savings of $1.9 million plus cost avoidance benefit of $4.8 million • 2 Preferred Steel Suppliers in Europe (consolidation from 7): • Price Stability • Reduced Waste • Supply Continuity • Quality Improvement

23. Commodity Savings Tracking to original estimates

24. Lean Manufacturing: What is it? Lean manufacturing is about: The core applications of lean thinking involve our promotion of a culture of continuous improvement and the removal of waste (anything that does not add value). • getting the right material, • to the right location, • at the right time, • in the appropriate quantity, • while minimizing waste, • and continually looking for ways to improve.

25. Lean Manufacturing: Benefits for Terex Some of the many benefits of lean include: • Improvemargin from efficiency/productivity gains • Increase production capacity with existing facilities • Higher customer satisfaction and lower warranty costs from improved quality • Lower inventory, particularly raw materials and work-in-process, leads to improved cash flow • Flexible manufacturing allows Terex to more easily move or replicate production lines around the globe • Empowers team members, enriching their work experience

26. Lean Manufacturing: A Terex Example Before and After product flow at the Waverly, Iowa Terex Cranes facility after the intensive application of lean principles • Daily crane production has more than doubled over the past 1 ½ years • Lead time to produce a crane has been reduced by 40% • Distance traveled per machine has decreased by 75% • Space utilized (sq ft) has decreased 35%

27. Terex Financial Services (TFS) Timeline ’06 - ’08 ’09 + ’03 – ’05 Transform Expand impact Launch • Limited Geography • Low Coverage & Penetration • Functions Outsourced • Reflect Terex Global Footprint • Segment Coverage & Penetration • Influence Customer Experience • True Global Captive • Enable Terex Growth Globally • Optimize Partnerships • Expand Customer Touch Point Customer Focused Operations Rigorous Underwriting & Diligent Residual Risk Management Integrity & Compliance A A

28. Building Leasing Capability People “Build an experienced global team, deep in functional expertise.” Deep Functional Expertise “Implement lean processes focused on speed to the customer and backed by rigorous policies and procedures.” Process Lean Built-In Technology “Surround the best people with proven, best-in-class technology to effectively originate high levels of volume with personalized service.” A A Customer Driven Solutions

29. TFS Structural Evolution Owning More of the Customer Experience • Tap into Broader Risk Appetite from Multiple Sources • Responsiveness – Take the Deal Off the Street • Increase Avenues to Competitive Capital 2010 $2.5B Originate & Hold Originate & Sell 2007 $1.0+B 2004 $500MM 3rd Party Funding A A Dealer

30. TFS Global Expansion Deploy TFS Resources to Key Geographies Utilize Strong Partners to fund activity Centralized Functional Team for consistent Compliance and Controllership Worldwide Current TFS Locations Next 24 months

31. Priorities for Cash Utilization Internal investment Manufacturing capability / footprint Information Systems Terex Financial Services (TFS) Acquisitions Regional Product – Superior Highwall Miners, ASV tender offer Transformational Returning cash to shareholders

32. New Product Development – an overview Customer Insights/ Feedback New Technologies Competitive Benchmarking Ideas for New Products / Product Enhancements Customer Value Proposition New Product Identification method Business Strategy Product Strategy “Doing the Right Things” Gate 0 New Product & Process Development method “Doing Things Right”

33. Redirect Redirect Redirect Redirect Redirect Redirect Go Go Go Go Go Go No No No No No No New Product Development - Principlesof a Good NPD Process • Rapidly develop and deliver successful new products and services that exceed the needs of our customers • Benefits will accrue to our customers and stakeholders • Time-to-market improvements of 40% to 60% • Wasted product development reductions of 50% to 80% • Product Development productivity increases of 25% to 30% • New product revenue increases of as much as 100% Which all leads to: GREATER CUSTOMER SATISFACTION Phase 0 Gate 0 Phase 1 Gate 1 Phase 2 Gate 2 Phase 3 Gate 3 Phase 4 Gate 4 Phase 5 Gate 5

34. Technology and Engineering Priorities Elevate product development capabilities and effectiveness Growing product development demand global markets Tier 4 market opportunities/ customer-focused technologies Rigorous Phase Gate Process voice of the customer integral to TBS Strategic Alignment with Global Suppliers Partner with Supply Chain Management

35. Technology and Engineering Priorities R&D Centers in India and China Develop products for local markets Supplement existing engineering resources cost efficiency leverage talented and available skills Product Standardization Complexity Reduction Platform Development Intellectual Property Management

36. Conclusion So, what you heard was: We are working better as a team as we continue to transition to an operating company Our Global Manufacturing Footprint is being driven by our strategy to produce closer to our customers Our emphasis on Lean is helping us to better serve the customer and is generating financial benefits Cash Utilization Priorities are targeted on investing in the business first Terex Management System will begin providing better visibility into the business during 2008 Our Supply Chain Management focus is beginning to generate savings Terex Financial Services is supporting the global growth of Terex