Slide 1: Sharpening Our Focus - Spring 2011
Sharpening Our Focus 7 Spring 2011
Slide 2: Forward-looking information statement
Statements and information herein that are not historical facts are "forward-looking information". Words such as “plans”, “intends”, “outlook”, “expects”, “anticipates”, “estimates”, “believes”, "likely", “should”, "could", "will", "may" and similar expressions often identify forward-looking informa
Slide 3: Returns on equity, dividends and net debt-to-equity
Return on Opening Shareholder’s Equity Dividends Per Share (%) (Cents) 0.70 20.6 21.6 21.5 0.60 18.7 18.9 17.1 17.5 18.3* 0.50 15.9 15.5 12.9 0.40 0.30 8.5 0.20 0.10 0.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Note: Q2 2011 divid
Slide 4: Pro Forma Net Earnings from Continuing Operations
Pro Forma Net Earnings from Continuing Operations (Millions) 82.2 73.6 73.2 59.4 52.3 40.3 42.6 37.5 32.6 24.9 26.7 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 * Pro Forma Net Earnings from continuing operations (excludes results from Enerflex and predecessor TESI) 4
Slide 5: Proven and Experienced Leadership
Management Board of Directors Robert Ogilvie Robert M. Ogilvie Chairman & CEO ─ Toromont Industries Ltd. Chairman & President ─ Signalta Capital Corporation CEO Robert M. Franklin Director ─ Barrick Gold Corporation, Paul Jewer Canadian Tire Corporation, Previous Chair – Placer Dome VP Finance
Slide 6: Diversified by Division, Industry and Customer
2010 by Segment PRODUCT SUPPORT EQUIPMENT Cimco Cimco 56% 32% 6% 9% Equipment Group Equipment Group 26% 47% Equipment Group 12% RENTAL 12% Diversified by Division, Industry and Customer 6
Slide 7: Equipment Group
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Slide 8: Equipment Sales by Segments Served
EQUIPMENT GROUP 15% 21% Power 4% Large Contractor 6% Local Contractor Mining Quarry 20% 16% Agriculture Nunavut Other* 1 18% Baker Lake Toromont CAT Equipment Sales by Segments Served Mine Site Branches 6 Voisey’s Bay Newfoundland 1. Agnico Eagle & Labrador 2. Goldcorp 3. DeBeers Manitoba 4. Detour
Slide 9: Battlefield: 250 Brands, 37 Stores, 13,600 Customers
EQUIPMENT GROUP Sectors Electrical Plumbing Steel Erectors Newfoundland Manitoba HVAC Ontario Battlefield Surveyors Special Trades >250 Brands Totalling >28,000 Items 9 37 Stores Serving 13,600 Customers
Slide 10: Strategy Drives Strong Growth
EQUIPMENT GROUP Mining Sales ($ millions) 166 181 155 107 94 67 2005 2006 2007 2008 2009 2010 Remote Mines Total Mining Strategy Drives Strong Growth 10
Slide 11: Investment Has More than Doubled in Our Territory Over Past 5 Years
EQUIPMENT GROUP Canadian Exploration Expenditures (1) 45% 44% Ontario Ontario Newfoundland & Labrador Manitoba Newfoundland & Labrador Nunavut Manitoba Nunavut 2005 $1.3 Billion (total Canada) 2010 $2.8 Billion (total Canada) Source: Natural Resources Canada Investment Has More than Doubled in 11 Ou
Slide 12: Management Estimates 47 New Projects and Transformational Expansions
EQUIPMENT GROUP 9 Nunavut 2 3 Large Prospect Mine Sites 1. Lalor, HudBay Minerals Newfoundland 2. Hope Bay, Newmont & Labrador 3. Meliadine, AEM Manitoba 4. Hollinger, Goldcorp 5. Marathon PGM, Stillwater 1 6. Ring of Fire, Cliffs 6 7. Hammond Reef, Osisko 8. Rainy River, Resources 9. Mary River, Ba
Slide 13: Significant Levels of Investment Expected to Continue in Toromont Territory
EQUIPMENT GROUP Infrastructure Investment ($ billions) $16.9 $15.6 $14.4 $10.6 2008/09 2009/10 2010/11 2011/12 Source: ON/MB/NL Governments, ORBA, Management estimates Significant Levels of Investment Expected to Continue in Toromont Territory 13
Slide 14: Ontario, Newfoundland, Manitoba infrastructure projects
EQUIPMENT GROUP • Windsor Essex Parkway - $1.6B • Hwy 407 – unknown Ontario • Pan-Am Games investment • Hebron - $6B plus • Lower Churchill - $6.2B Newfoundland • Bipole III - $3.2B • Keeyask Generating Station - $3B • East Side Transportation Manitoba • Potential significant infrastructure requirem
Slide 15: Three Successive Quarters of Record Product Support
EQUIPMENT GROUP 90.0 Three Successive Quarters of Record Product Support Product Support Sales ($MM) 82.3 81.4 80.0 80.6 70.0 60.0 Toromont has: • More significant product support network than any competitor 50.0 • Increasing base of higher requirement mining equipment 40.0 • Increasing opportunitie
Slide 16: Providing Broader Range of Offerings
EQUIPMENT GROUP Commercial Truck Industrial Electric Power Marine Complete Vehicle Engine Sales Prime & Stand-by Marine Power Sales, Parts to OEMs Power Systems Systems & Service Growing Position in Renewable Energy Providing Broader Range of Offerings 16
Slide 17: Generating Significant New Internal Growth
EQUIPMENT GROUP Trimble Metso MWM Bucyrus Intl. Machine guidance Mobile & stationary aggregate Manufacturer of Broader mining equipment control systems crushing & screening natural gas engines product line 2005 2006 2007 2008 2009 2010 2 0 11 MaK O&K Heavy Equipment CAT Vocational Large bore Front s
Slide 18: Largest Installed Base, Highest Market Share & Strongest Customer Support Network
EQUIPMENT GROUP Largest Installed Base, Highest Market Share & Strongest Customer Support Network in Territory Served Represents Best Brand with Widest Product Offering Industry Leading Profitable Rental Operations Diversity of Products & Services Skilled Labour Base Growing Presence in Mining Secto
Slide 19: CIMCO
ECC CHILL
Slide 20: Canadian Industry Leader with Market Growth Opportunities
Revenue Split Product Recreational Support 31% 42% CT Industrial 27% KY AR AL FL 20 Canadian Industry Leader with Market Growth Opportunities
Slide 21: Industrial Refrigeration
Industrial Refrigeration Market leading engineering capabilities & expertise Food & beverage processing, cold storage, food distribution, HVAC, IPC & mining applications Excellent growth potential - with improving economy comes improving investment Leverage proven Eco Chill in industrial mar
Slide 22: Recreational Facilities
Recreational Facilities Market leading engineering capabilities & expertise 4,500 installed facilities worldwide Official NHL rink provider for 12 years Marquee Winter Olympic installations: Vancouver, 2010 & Calgary,1988 Strong backlog in 2011 Strong product support network 22
Slide 23: Saves Money, Reduces Greenhouse Gas Emissions
Saves Money Reduces Greenhouse Gas Emissions 23
Slide 24: Growth Strategy
TOROMONT Growth Strategy
Slide 25: Growth strategy: Equipment Group, CIMCO, Power
CIMCO Equipment Group Eco Chill in industrial markets Gain market share Expand market leadership position Focus on mining sector Capitalize on green technologies Expand heavy rents, product support Ammonia-based HVAC applications Expand product offerings (Bucyrus, Metso, MaK) Power
Slide 26: Acquisitions and territory expansion
• History of successful acquisitions • Consolidating heavy equipment industry offers opportunities • Broadening product offerings through Caterpillar acquisitions • Positioned for territory expansion 26
Slide 27: Investment highlights summary
Track Record of Superior Financial Performance Strong Balance Sheet Rising Momentum in Bookings & Order Backlog Diversified by Division, Industry & Customer Market Leading Brands & Position Solid Growth Opportunities 27
Slide 28: Sharpening Our Focus - Spring 2011
Sharpening Our Focus 7 Spring 2011