New Wajax Corporation · 2018. 4. 11. · Palfinger Weldco 14 ... –Private label Hy-Spec and National lines. Upgrade e-commerce capability. 19 Industrial Components Growth Strategies

Wajax Corporation

Investor Presentation

May 2011

Corporation

Corporation

Forward Looking Statement

Certain information in this presentation contains forward-looking

statements based on management’s current expectations and

assumptions regarding the business and anticipated financial

results of the Corporation. There is, however, no assurance

forward-looking statements will materialize if known and unknown

risks or uncertainties affect the Corporation’s business or if

management’s expectations and assumptions prove to be

incorrect. In such circumstances, actual results of operations

could differ materially from expectations and forward-looking

statements.

You can find a discussion of risks and uncertainties pertaining to

the Corporation and its business and other factors that could

cause financial results to fluctuate in our regulatory filings on

SEDAR at www.sedar.com. The Corporation assumes no

obligation to publicly update or revise its forward-looking

statements to reflect new information, events or circumstances.

2

Corporation

Mobile Equipment

Industrial Components

Power Systems

50% 27% 23%

Three Core Businesses

3

Corporation

2010 Revenue by Region

118 Branches

> 40,000 Customers

4

Corporation

2010 Revenue by Market

5% 7% 7%

Industrial/Commercial

Construction

Forestry Transportation

Mining

Oil Sands

Government and Utilities Other

Metal Processing

Oil & Gas

16%

10%

12%

10% 10%

13%

10%

5

Corporation

2007 2008 2009 2010

$1,192 $1,214

$1,007 $1,112

Revenue (Millions)

2007 2008 2009 2010

$4.34 $4.57

$2.06

$3.31

Net Earnings Per Unit (Basic)

Historical Financial Data

Consolidated

Revenue and Earnings

6

Corporation

Q1 Consolidated

Revenue and Earnings

2010 2011

$303.9

Revenue $ Millions

$227.4

2010 2011

$18.0

$8.5

Earnings Before Tax $ Millions

Monthly dividends $0.18 per share ($2.16 annualized)

Debt to EBITDA: 1.1 to 1 (March 31, 2011) 7

Corporation

Consolidated Backlog

$ Millions

Q1 2010 Q4 2010 Q1 2011

$188.4

$217.3 $215.7

8

50% of Total Revenue

EQUIPMENT

9

30%

30%

17%

12% 11%

Crane & Utility

Mining / Oil Sands

Construction

Material

Handling

Forestry

Equipment

2010 Revenue by Product Type

10

Growth Strategies

Increase equipment market share in key categories.

– Sales coverage and inventory availability

– Line extensions

Aftermarket parts and service growth.

– Parts fill rates

– Labour efficiencies

Branch coverage in key metropolitan areas.

– GTA and Montreal

Tigercat

Forestry

Hyster

Material Handling Construction

Hitachi JCB

11

Equipment

Product Offering and Growth Strategies

Equipment

Expanded Distribution Rights

Peterson Pacific

Wirtgen and Vogele

12

Retail value per unit: $1M - $15M

Units in operation Canada-wide:

140

Parts and service consumption

over 10 years - up to 2X capital

cost.

Mining

Hitachi Phillips

Underground Mining

LeTourneau

13

Growth Strategies:

New products and line

extensions

Aftermarket parts and

service

– Parts fill rates

– Labour efficiencies

Equipment


Crane / Utility

Terex

Palfinger Weldco

14

Equipment


Hitachi Japan Supply Chain

Earthquake and tsunami in Japan caused damage

to certain Hitachi manufacturing facilities. All

facilities are back in production.

Wajax sources equipment and parts from U.S. and

Japanese facilities.

Wajax expects to have:

– Adequate stock of Hitachi parts and

construction excavators

– Some mining equipment delays

(2011 revenue impact expected: $40 million)

15


INDUSTRIAL COMPONENTS

16

Industrial /

Manufacturing

Forestry

Construction

Transportation

Mining

Food & Beverage

Other

Metal

Processing

Oil & Gas

17%

7%

15%

14% 12%

5%

10%

5% 15%

> 15,000 Customers



17

Bearings and

Power Transmission

18

Process

Equipment

Hydraulic Components

and Systems

(SKF, NSK, Timken) (Cuno, Moyno) (Eaton, Aeroquip, Vickers)


Product Offering

Leverage technical capabilities by expanding higher margin engineering services.

Sales growth:

– Bearings and power transmissions in the west and hydraulics in the east.

– New branches, product line additions and acquisitions.

– Private label Hy-Spec and National lines.

Upgrade e-commerce capability.

19


Growth Strategies


POWER SYSTEMS

20

7%

14% 3%

Industrial/

Commercial

On-Highway

Transportation Mining

Oil Sands

Other

Oil & Gas

24%

25%

27%

Power Systems


21

Applications

Prime and standby power

Growth Strategies

Develop national focus

– Geographic and product line expansion

Rental market expansion

Electric Power Generation

GE Jenbacher MTU

22

Power Systems


Applications

Oil and gas exploration and servicing (fracking)

Other Off-Highway applications

Growth Strategies

Develop national focus

– Geographic and product line expansion

Further develop packaging and integration

capabilities

Mechanical Drive Systems

Allison MTU

23

Power Systems


Applications

Parts and service for On-Highway Detroit

Diesel engines and Allison transmissions

Growth Strategies

Geographic expansion

On-Highway

24

Power Systems


Power Systems

Harper Power Products Acquisition

10 Branches ~$71 million revenue

200 employees

25

Power Systems

New Distribution Rights

Doosan Power Generation

Distribution rights

for all of Canada

Standby power

Rental fleet

application

26

Corporation

Wajax Rebranding

POWER

SYSTEMS

EQUIPMENT

INDUSTRIAL

COMPONENTS

New

Industries

Current

27

Corporation Corporation

Corporation

Q1 Summary and 2011 Outlook

Robust energy and mining markets in western

Canada

Stronger activity in central and eastern Canada

Expect pre-tax earnings to exceed 2010 levels

Monthly dividend increase of $0.03 per share to

$0.18 per share for May, June and July

28

Corporation

New Wajax Corporation · 2018. 4. 11. · Palfinger Weldco 14 ... –Private label Hy-Spec and National lines. Upgrade e-commerce capability. 19 Industrial Components Growth Strategies

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