Toromont Industries Ltd. · TSX:TIH
Toromont Industries — Merger or Acquisition (August 2017)
16 slides from Toromont Industries's merger presentation, Aug 28, 2017
Slide 1: Investor Conference Call
Investor Conference Call August 28, 2017
Slide 2: Forward-looking Statements
Forward-looking Statements 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 ident
Slide 3: Toromont to Acquire Hewitt Equipment
Toromont to Acquire Hewitt Equipment Transaction is valued at $1.0177 billion Represents Toromont’s most significant milestone Toromont and Hewitt have complementary operations and customer service model Driven by growth opportunities and trend towards industry consolidation Supported by Toromont’s
Slide 4: Putting Transaction in Perspective
Putting Transaction in Perspective Largest Toromont $1.0177 B acquisition Largest Caterpillar dealer transaction Total consideration Serves as a testament to the successes of Toromont and Hewitt 4
Slide 5: Complementary Operations to Toromont
Complementary Operations to Toromont Toromont Hewitt Group 100 locations 45 locations 3600 employees 2100 employees Opportunity to extend Toromont’s decentralized operating model 55
Slide 6: Hewitt at a Glance
Hewitt at a Glance Founded in 1952 Authorized Caterpillar dealer in Quebec and Western Labrador – Hewitt Cat Authorized Caterpillar dealer in the Maritimes – Atlantic Cat Authorized MaK dealer in Quebec, Maritimes & eastern U.S. (ME to VA) Authorized MCFA dealer (Lift) in Quebec and most o
Slide 7: Complementary Operations to Toromont
Complementary Operations to Toromont Sectors Mining Construction Energy Forestry Services Sales Rentals Material handling Service & Support Share similar values, customers and processes 77
Slide 8: Hewitt's Financial Performance
Hewitt’s Financial Performance 3-yr Revenue Results 3-yr EBIT Results ($millions) ($millions) $1,200 $1,108 $1,049 $70.0 $66.4 $1,088 $1,000 $60.0 $56.9 $800 $50.0 $40.0 $34.0 $600 $30.0 $400 $20.0 $200 $10.0 $0 $0.0 2014 2015 2016 2014 2015 2016 Principal markets recovering from downturn in 2012 88
Slide 9: Hewitt's Diversified Results
Hewitt’s Diversified Results Hewitt FY 2016 Hewitt FY 2016 Revenue by Division Revenue by Product Line Material Used Machine HRI Rental Handling Sales 8% 9% 11% 13% Parts 36% Energy 12% Heavy Equipment New 65% Machine Truck Sales Service 4% 32% 10% Diversified revenues contribute to steady performan
Slide 10: Toromont's Expanded Presence
Toromont’s Expanded Presence Current markets • Manitoba • Nunavut • Ontario • Newfoundland & Labrador New markets • Quebec • Western Labrador • The Maritimes Significant heavy equipment dealer spanning Eastern Canada 10
Slide 11: How Transaction Will be Funded
How Transaction Will be Funded Settlement upon close: 2.25 million Toromont shares Cash on hand $1.0177B Committed bank credit facility Total consideration Bond offering to be launched in coming weeks Possible due to Toromont’s strong balance sheet 11
Slide 12: Opportunities for Growth
Opportunities for Growth $91B Plan Nord Recovery of commodity prices in infrastructure Opportunities for synergies spending pledged by Québec government over next 10 years Favorable long-term outlook 12
Slide 13: Significant Mining Operations
Significant Mining Operations Quebec is home to 3 mining regions Presence of precious, base and ferrous metals – diversity contributes balance Hewitt has strong relationships with customers Large customer fleets Opportunities to expand operations and capitalize on sector turnaround 13
Slide 14: Summary
Summary Transaction is valued at $1.0177 billion Represents Toromont’s most significant milestone Toromont and Hewitt have complementary operations and customer service model Driven by growth opportunities and trend towards industry consolidation Supported by Toromont’s strong balance sheet 14
Slide 15: Q&A
Q&A For more information contact: Paul R. Jewer Executive Vice President and CFO Toromont Industries Ltd. (416) 514-4790 pjewer@toromont.com For media inquiries: Nini Krishnappa T (647) 828-2553 nkrishnappa@national.ca or Andrea Danielle Wong T (514) 843-2384 awong@national.ca 15
Slide 16: Investor Conference Call
Investor Conference Call August 28, 2017
Toromont Industries — Merger or Acquisition (August 2017) on 6ix