Toromont Industries Ltd. · TSX:TIH
Toromont Industries — Shareholder Meeting (April 2016)
53 slides from Toromont Industries's shareholder meeting presentation, Apr 27, 2016
Slide 1: 2016 Annual Meeting of Shareholders
2016 ANNUAL MEETING OF SHAREHOLDERS APRIL 27, 2016
Slide 2: Robert Ogilvie, Chairman
ROBERT OGILVIE CHAIRMAN
Slide 3: Your Board
sel ROMO Your Board
Slide 4: Dedicated Executive Operating Team & Senior Management
Dedicated Executive Operating Team & Senior Management
Slide 5: Agenda
Agenda Introductions Business of the Meeting Management Presentations Question Period
Slide 6: Business Of The Meeting
Business Of The Meeting Appointment of Secretary & Scrutineer Quorum Election of Directors Appointment of Auditors Say on Pay
Slide 7: Scott Medhurst, President and CEO
SCOTT MEDHURST PRESIDENT AND CEO
Slide 8: Daily Safety Talk
Daily Safety Talk
Slide 9: This Is How We Protect Our Employees
This Is How We Protect Our Employees
Slide 10: This Is The Result Of Our Collective Efforts
This Is The Result Of Our Collective Efforts TOROMONT INDUSTRY SAFETY TRENDS [VALUE] HazardHaID zard ID 0-568 8 7.13 600 7 Toromont Industries Safety Results 500 6 4.69 400 5 4 3.38 300 2.98 3 2.28 200 2 1 100 0 0 2011 2012 2013 2014 2015 Hazard ID Recordable Incident Rate
Slide 11: This Is The Next Step In Our Never-ending Quest For Safety And Sustainability
This Is The Next Step In Our Never-ending Quest For Safety And Sustainability
Slide 12: Forward-looking Statements
Forward-looking Statements This presentation contains forward-looking statements that reflect the view of Toromont with respect to future events and financial performance. Such forward-looking statements are subject to risks and uncertainties and Toromont’s actual results could differ materially fro
Slide 13: This Is Who We Are: Equipment Group
This Is Who We Are EQUIPMENT GROUP
Slide 14: Here's How We Grew In 2015
Here’s How We Grew In 2015 Our organizing principle is to provide customers with specialized equipment and the lifetime product support they need to use that equipment safely, effectively and productively.
Slide 15: This Is What Growth Meant For Shareholders
This Is What Growth Meant For Shareholders Revenue 2000 1800 1600 Revenue in Millions 1400 1200 1000 800 600 400 200 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Slide 16: This Is How We Measure Customer Experience
This Is How We Measure Customer Experience is my"They “This“They second are do experience the good, best efficient "They people withwork were veryand get it understanding, “They are very "They are friendly, they have fast professional, them taken care of for the mecustomer.” Weand both have have eve
Slide 17: This Is How We Fuel Productivity
This Is How We Fuel Productivity DAVID MALINAUSKAS President, Cimco
Slide 18: This Is Why Product Support Matters
This Is Why Product Support Matters
Slide 19: This Is What Is New In Product Support
This Is What Is New In Product Support
Slide 20: Slide 20
Slide 21: This Is How Cimco Performed
This Is How Cimco Performed
Slide 22: These Are Cimco Customers Served In 2015
These Are Cimco Customers Served In 2015
Slide 23: This Is Why We Are In The Rental Business
This Is Why We Are In The Rental Business
Slide 24: This Is What We Did To Prepare Ag West For Growth
This Is What We Did To Prepare Ag West For Growth
Slide 25: This Is A High-Level View Of Our Technology Roadmap
This Is A High-Level View Of Our Technology Roadmap Opportunity Analytics EM Solutions Mobile Rental New Application Logistics Online Sales Channel Digital Coverage Capture Define Build Present Construction Monitor Data Opportunity Offer Offer Outcome Resources Power Systems Products
Slide 26: This Is How Power Systems Is Using Technology
This Is How Power Systems Is Using Technology
Slide 27: This Is How Battlefield Is Using Technology
This Is How Battlefield Is Using Technology
Slide 28: This Is How Sitech Is Using Technology
This Is How Sitech Is Using Technology
Slide 29: This Is How Cimco Is Using Technology
This Is How Cimco Is Using Technology
Slide 30: This Is Our Goal
sa ORR This Is Our Goal
Slide 31: NHL Trailer
sean ROMONT NHL Trailer 7 Coles eeeeee
Slide 32: Paul Jewer, Executive Vice President and CFO
PAUL JEWER EXECUTIVE VICE PRESIDENT AND CFO
Slide 33: First Quarter Results
First Quarter Results 400 Equipment CIMCO Revenue 300 • Equipment +10% • CIMCO +15% 200 100 0 Q1 2015 Q1 2016 33
Slide 34: First Quarter Performance
First Quarter Performance Net earnings EPS ($ millions) Up 20% ($ ) Up 19% 25 0.35 $0.31 0.30 20 $0.26 0.25 15 0.20 0.15 10 0.10 5 0.05 0 0.00 Q1 2015 Q1 2016 Q1 2015 Q1 2016 34
Slide 35: Record Annual Results
Record Annual Results Revenue $1.80B $1.66B 35
Slide 36: Record Annual Results, Consecutive Profitable Years
Record Annual Results 48 Consecutive Profitable Years Net Earnings Basic Earnings Per Share 160 $ 2.00 $1.88 $146 $133 $1.73 140 120 1.50 ($ millions) 100 80 1.00 60 40 0.50 20 0 2011 2012 2013 2014 2015 0.00 2011 2012 2013 2014 2015 36 Note: All figures presented on a continuing operations basis
Slide 37: Return on Shareholders Equity
Return on Shareholders Equity 18% 37 Continuing operations from 2011
Slide 38: Record Earnings Offset by Increased Working Capital
Record Earnings Offset by Increased Working Capital 200 150 Working Capital 100 up $91MM 50 Record Earnings 0 contribute $205MM -50 Cash from Ops -100 -150 Opening Net Cash Earnings Stock Options Increased PP&E Rental Dividends Closing Net Debt & Other Working Debt Capital 38
Slide 39: Reinvestment Ramped Up in 2015
Reinvestment Ramped Up in 2015 200 Net $28MM +12% 150 Invested in “Plant” 100 50 Net $86MM 0 Invested in -50 Rental Fleets Battlefield $45 +65% Toromont Cat $41 -100 -150 Opening Net Cash Earnings Stock Options Increased PP&E Rental Dividends Closing Net Debt & Other Working Debt Capital 39
Slide 40: 27 Years of Increased Returns to Shareholders
27 Years of Increased Returns to Shareholders 200 150 Dividends Paid 100 Upped 15% to $51MM 50 0 -50 Plus 2015 Cash Flows Supported -100 2016 6% Dividend Increase -150 Opening Net Cash Earnings Stock Options Increased PP&E Rental Dividends Closing Net Debt & Other Working Debt Capital 40
Slide 41: Solid Financial Footing
Solid Financial Footing 200 150 Year-end Net 100 debt to Total Cap 10% 50 0 -50 $41MM increase in net debt • Bank Facility Increased and Extended -100 • $150MM Bond Issuance Completed in Fall -150 Opening Net Cash Earnings Stock Options Increased PP&E Rental Dividends Closing Net Debt & Other Workin
Slide 42: A Decade of Cash Generation
A Decade of Cash Generation 2006-2015 • Continuing Ops Investment in Working “Cash earnings” Dividends* 22% Capital 17% of $1.3 billion • 64% reinvested Debt Reduction Property, 3% Buybacks* Plant & Equipment • 25% returned 3% 15% • FCF = 56% of Other Net Net Income 8% Investment in Rental Acquisiti
Slide 43: Balance As a Virtue
Balance As a Virtue Working Capital Dividends* 17% 22% Debt Reduction 3% PP&E 15% Buybacks* 3% Acquisition 2% Other 8% Rentals 30%
Slide 44: Profitable Growth Throughout the Cycle
Profitable Growth Throughout the Cycle Pro Forma Net Earnings from Continuing Operations (Millions) 145.7 133.2 123.0 119.5 102.7 82.2 76.7 73.6 59.4 52.3 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 44
Slide 45: Years of Dividends
48 Years of Dividends 6% 0.80 Dividend Increase 0.70 Ten Year CAGR 12.6% Dividends Per Share $ 0.60 0.50 0.40 0.30 0.20 0.10 0.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 • 27th consecutive year of increases in 2016 • $0.72 per share annualized 45 Note: Historic prior to 2011 pro forma
Slide 46: Total Shareholder Return
Total Shareholder Return Cdn$ Cumulative Value of $100 Investment 300 Assuming Dividends Reinvestment 250 10.5% 200 Toromont 10 yr CAGR 150 4.4% 100 S&P/TSX 10 yr CAGR 50 - Dec. 31/05 Dec 31/06 Dec 31/07 Dec 31/08 Dec 31/09 Dec 31/10 Dec 31/11 Dec 31/12 Dec. 31/13 Dec 31/14 Dec 31/15 $100 TIH invest
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Slide 48: sa ORR
sa ORR
Slide 49: Distributed Leadership
Distributed Leadership 49
Slide 50: Distributed Leadership
Distributed Leadership 50
Slide 51: Strength of Distributed Leadership
Strength of Distributed Leadership
Slide 52: The Financial Way Forward
The Financial Way Forward • Consistent Focus: ― Manage Working Capital ― Invest in our Core Assets ― Expand our Rental Fleet ― Invest in our People and Technologies ― Increasing Dividends
Slide 53: 2016 Annual Meeting of Shareholders
2016 ANNUAL MEETING OF SHAREHOLDERS APRIL 27, 2016
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