Slide 1: Wajax Corporation Investor Presentation
Wajax Corporation Investor Presentation May 15, 2025
Slide 2: Cautionary Statement Regarding Forward-Looking Information
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION This presentation contains certain forward-looking statements and forward-looking information, as defined in applicable securities laws (collectively, “forward-looking statements”). These forward-looking statements relate to future events or
Slide 3: Non-GAAP and Other Financial Measures
NON-GAAP AND OTHER FINANCIAL MEASURES This presentation contains certain non-GAAP and other financial measures that do not have a standardized meaning prescribed by generally accepted accounting principles (“GAAP”). Therefore, these financial measures may not be comparable to similar measures presen
Slide 4: Wajax At-a-Glance
WA JAX AT-A-GLANCE NATIONAL FOOTPRINT 167-year operating history 111 branches coast-to-coast A broad range of industrial products and services Diverse market and sector experience Q1 2025 REVENUE SOURCES 2024 REVENUE SOURCES ($ millions) ($ millions) Equipment Sales Equipment Sales $81.6 $326.5 $170
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS Q1 2025 Q1 2024 2024 2023 Revenue ($ millions) $555.0 $482.3 $2,097.6 $2,154.7 Basic Earnings per Share $0.60 $0.68 $1.97 $3.77 Adjusted Basic Earnings per Share1 $0.69 $0.59 $2.44 $3.88 Adjusted EBITDA1 ($ millions) $43.2 $40.7 $168.0 $197.4 Revenue ($ millions) Leverage1 2.60x
Slide 6: Key Six-Year Business Metrics
KEY SIX-YEAR BUSINESS METRICS 2018 2024 Improvement Revenue ($ billions) $1.48 $2.10 +42% Gross profit margin1 18.4% 19.7% +130bps Net earnings ($ millions) $35.9 $42.8 +19% EBITDA margin1 5.8% 7.6% +180bps Parts and service as a percentage of 61% 68% +7% revenue* Annual dividend per $1.00 $1.40 +40
Slide 7: Purpose and Values
PURPOSE AND VALUES Empowering People to Build a Better Tomorrow We commit to safety and well-being We develop potential and expertise We deliver an exceptional experience together We build lasting relationships We strive to continuously improve 7 Wajax Corporation – Investor Presentation (May 15, 20
Slide 8: 2025 Strategic Priorities
2025 STRATEGIC PRIORITIES Continue to build a people-first company Grow our existing business with a focus on parts, service, and margin improvement Unlock the potential of our enhanced direct relationship with Hitachi Acquire and integrate Industrial Parts and ERS businesses Improve our cost struct
Slide 9: 2025 Capital Priorities
2025 CAPITAL PRIORITIES 1. Investing in organic growth to support working capital and maintenance needs 2. Growing shareholder returns and funding dividend payments 3. Debt repayment – Target Debt/EBITDA1 of 1.5-2.0x 4. Investing in accretive and strategic acquisitions with a focus on Industrial Par
Slide 10: World Class Heavy Equipment OEMs
WORLD CLASS HEAVY EQUIPMENT OEMS Construction Mining Forestry Material Handling Power Systems Image result for terex logo $1,151.6 $1,195.3 $1,199.1 $1,035.3 $1,036.9 $957.4 Heavy Equipment Revenue* $915.8 ($ millions) 2018 2019 2020 2021 2022 2023 2024 Sole or exclusive Canadian distribution relati
Slide 11: Expanded Direct Relationship with Hitachi Construction Machinery Americas
EXPANDED DIRECT RELATIONSHIP WITH HITACHI CONSTRUCTION MACHINERY AMERICAS (HCMA) Highlights • Leading OEM with premium product line and established global track record • Committed partner focused on growing market share in the Americas • Hitachi investing in both increased sales and marketing effort
Slide 12: Industrial Parts and Engineered Repair Services
INDUSTRIAL PARTS AND ENGINEERED REPAIR SERVICES We Represent Leading Vendors INDUSTRIAL PARTS ENGINEERED REPAIR SERVICES (ERS) Combined Industrial Parts and Engineered Repair Services Revenue ($ millions) $1,200 $959.4 $1,000 $898.5 $811.2 $800 $679.8 $600 $516.1 $506.8 $446.3 $400 $200 $0 2018 2019
Slide 13: Building a Canadian Industrial Parts and Services Leader
BUILDING A CANADIAN INDUSTRIAL PARTS AND SERVICES LEADER SERVING MA JOR CUSTOMERS IN A $10 BILLION* ANNUAL MARKET … Mining and Resources Oil Sands / Oil and Gas Energy and Renewables Industrial and Manufacturing …IN MISSION-CRITICAL APPLICATION AREAS Bearing & Power Transmission Hydraulics Electro-m
Slide 14: Wajax Offers a Full Range of Solutions for Canadian Industry
WA JAX OFFERS A FULL RANGE OF SOLUTIONS FOR CANADIAN INDUSTRY 14 Wajax Corporation – Investor Presentation (May 15, 2025)
Slide 15: IP/ERS: Disciplined Approach to Acquisitions
IP/ERS: DISCIPLINED APPROACH TO ACQUISITIONS Bearings & PT Hydraulics Electromechanical Industrial Process Automation We focus on targets that: To fill an existing gap in: Where value can be created through: Are leaders in their market Products Customer cross-selling Have strong talent and technical
Slide 16: IP/ERS: Recent Acquisition History
IP/ERS: RECENT ACQUISITION HISTORY $26.9mm cash purchase price (subject to post-closing adjustments and $99.4mm purchase price $4.2 mm purchase price a 3-year performance based earnout) Industrial process maintenance, Provider/integrator of Custom electrical and instrumentation technical services an
Slide 17: Financial Metrics
FINANCIAL METRICS Revenue and EBIT1 ($ millions) Leverage1 (Debt/EBITDA1) $2,400 Revenue: 6.0% CAGR* $160 2.60x 2.61x 2.53x EBIT: 8.7% CAGR* $140 2.28x $2,000 1.98x $120 $1,600 $100 Revenue 1.29x EBIT $1,200 $80 1.13x $60 $800 $40 $400 $20 $0 $0 2018 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022
Slide 18: Sustainability Roadmap
SUSTAINABILITY ROADMAP ENVIRONMENTAL SOCIAL GOVERNANCE • Reduce our carbon footprint from owned • Focus on employee health, safety and well- • Enhance sustainability governance for or controlled sources being as part of our Purpose and Values future disclosures and regulated • Give back to the commu
Slide 19: Investment Highlights
INVESTMENT HIGHLIGHTS Strong relationships with industry leading OEMs and suppliers Significant growth potential across all businesses Opportunistic acquisitions with a focus on IP and ERS businesses Focus on reducing inventory, lowering costs, and improving margins Proven dividend history: paying d
Slide 20: Market Data
MARKET DATA Exchange: Ticker TSX: WJX Recent Share Price $23.50 (May 14, 2025) Common Shares Outstanding 21.9 million Market Capitalization $514.9 million 52-week Range $15.55 – $27.24 Analyst Coverage BMO, TD, Scotiabank, National Bank 20 Wajax Corporation – Investor Presentation (May 15, 2025)
Slide 21: Appendix
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Slide 22: Revenue Mix
REVENUE MIX 22 Wajax Corporation – Investor Presentation (May 15, 2025)
Slide 23: Heavy Equipment Revenue Mix
HEAVY EQUIPMENT REVENUE MIX Construction, Forestry, Mining Revenue Crane and Utility Revenue ($ millions) Heavy Equipment Revenue ($ millions) ($ millions) 226.5 208.7 196.6 516.4 542.7 511.2 176.0 435.1 420.6 435.7 164.5 170.3 1,199.1 153.2 1,195.3 386.1 1,151.6 1,035.3 1,036.9 957.4 915.8 2018 201
Slide 24: IP/ERS Case Study: Renewables
IP/ERS CASE STUDY: RENEWABLES The Challenge The Need Our Solution Benefits to Customer Power generators need to work A customer’s main hydroelectric Wajax developed new repair Rapid completion of the repair near maximum efficiency and rotor failed and its unique procedures, modified tooling minimize
Slide 25: ERS Case Study: Food and Beverage
ERS CASE STUDY: FOOD AND BEVERAGE The Challenge The Need Our Solution Benefits to Customer The food and beverage industry One of two high-pressure pumps Wajax suggested process piping Improved reliability of critical requires the highest standards of needed for sanitization at a improvements to ease
Slide 26: IP/ERS Case Study: Mining
IP/ERS CASE STUDY: MINING The Challenge The Need Our Solution Benefits to Customer Completing scheduled With 5 weeks to go before The Wajax team custom made The scheduled maintenance maintenance on time requires scheduled maintenance of a the needed components using was able to proceed on time caref
Slide 27: Heavy Equipment Case Study: Construction
HEAVY EQUIPMENT CASE STUDY: CONSTRUCTION The Challenge The Need Our Solution Benefits to Customer Bidding on construction projects A growing construction contractor Wajax’s line of Hitachi ZX Short delivery timelines from can be tricky and hard for small needed rapid access to a full line excavators
Slide 28: Heavy Equipment Case Study: Material Handling
HEAVY EQUIPMENT CASE STUDY: MATERIAL HANDLING The Challenge The Need Our Solution Benefits to Customer In a busy rail yard, loading A growing logistics company A Hitachi ZW370-5 wheel loader A customized solution with power commodities and other material needed a multifunction solution was customize
Slide 29: IP/ERS/Heavy Equipment Case Study: Oil Sands
IP/ERS/HEAVY EQUIPMENT CASE STUDY: OIL SANDS The Challenge The Need Our Solution Benefits to Customer Operating and maintaining a An oil sands customer wanted Wajax offered on-site and Service from a single provider 24/7/365 operation requires a to improve efficiency at 2 in-shop service of crushers
Slide 30: Endnotes
ENDNOTES Except where noted, all figures are in millions of Canadian dollars, except per share data and ratio calculations. 1. This measure does not have a standardized meaning prescribed by GAAP. Please see Wajax’s Management’s Discussion and Analysis for the three months ended March 31, 2025 and t
Slide 31: wajax.com
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