Slide 1: Wajax Financial Results – Q2 2022
Wajax Financial Results – Q2 2022 August 5, 2022
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
Slide 3: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding \\ Forward-Looking Information The foregoing list of factors is not exhaustive. Further information concerning the risks and uncertainties associated with these forward-looking statements and the Corporation’s business may be found in our Annual Information Form for th
Slide 4: Non-GAAP and Additional GAAP Measures
\\ Non-GAAP and Additional GAAP Measures This presentation contains certain non-GAAP and additional GAAP measures that do not have a standardized meaning prescribed by GAAP. Therefore, these financial measures may not be comparable to similar measures presented by other issuers. Investors are cautio
Slide 5: Highlights – Second Quarter
\\ Highlights – Second Quarter • Revenue increased 14.6% due to higher construction and forestry sales in western and eastern Canada, higher Revenue $511.2 industrial parts and ERS sales in all regions and higher 15% million product support revenue across most categories • These increases were parti
Slide 6: Revenue by Region
\\ Revenue by Region Q2 2022 YTD 2022 • Revenue increased $65.1 million, or 14.6%, to • For the six months ended June 30, 2022, revenue $511.2 million in Q2 2022 versus $446.1 million for increased $117.5 million, or 14.1%, to $950.7 million the same period in 2021 versus $833.2 million in 2021 • In
Slide 7: Equipment and Product Support Revenue
\\ Equipment and Product Support Revenue Equipment YoY Change 3.3% (1.4)% (17.5)% (1.2)% 22.0% • Increase from Q1 2022 was due mainly to higher construction and forestry sales in all regions • Increase from Q2 2021 was due mainly to strong construction and forestry revenue in western and eastern Can
Slide 8: IP & ERS Revenue
\\ IP & ERS Revenue Industrial Parts YoY Change 40.1% 32.6% 27.0% 24.1% 17.2% • Increase from Q1 2022 was due to higher sales in central and eastern Canada • Increase from Q2 2021 was due mainly to organic strength in bearings sales in all regions 2021 2022 ERS YoY Change 72.2% 49.0% 53.0% 21.2% 6.8
Slide 9: Revenue by Category
\\ Revenue by Category YTD* Category4 Q2 2022 Q2 2021 Change YTD 2022 YTD 2021 Change E W C Heavy Equipment $ 304.3 $ 263.4 $ 40.8 $ 554.8 $ 497.1 $ 57.6 ↑ ↑ ↓ Construction & Forestry 160.0 121.9 38.1 264.0 236.9 27.1 ↑ ↑ ↓ Mining 38.7 53.8 (15.1) 88.7 86.4 2.3 ↑ ↑ ↓ Material Handling 43.5 35.9 7.6
Slide 10: Backlog
\\ Backlog 1 1 Backlog at Q2 2022 remained strong at $534.8 million compared to the record backlog of $540.1 million at Q1 2022 2 Backlog increased by $218.1 million (68.8%) compared to Q2 2021 ◦ Increase due to higher orders in most categories, most notably construction and forestry 2 1 2021 2022 W
Slide 11: Inventory
\\ Inventory 1• Total inventory increased $4.9 million compared to Q1 2022 ◦ Inventory of $414.0 million at Q2 2022 increased $4.9 million from Q1 2022 due primarily to higher industrial parts and ERS inventory, offset partially by lower construction and forestry inventory 2 Total inventory increase
Slide 12: Cash Flow and Leverage
\\ Cash Flow and Leverage Cash Flow from Operating Activities 2021 2022 Leverage1 Total committed credit facilities 2.04x 1.73x 1.29x 1.24x 1.10x 2021 2022 Wajax Financial Results – Q2 2022 (August 5, 2022) 12
Slide 13: Balance Sheet
\\ Balance Sheet Adjusted Return On Net Assets (RONA)1 • RONA increased from Q1 2022 and Q2 2021 due primarily to higher trailing 12- month adjusted EBIT and lower trailing 12-month average net assets(1) Working Capital Efficiency1 • Working capital to sales ratio has decreased from Q1 2022 and Q2 2
Slide 14: 2022 Outlook
\\ 2022 Outlook • Wajax had an excellent first half of 2022, with revenues of $950.7 million and adjusted EBITDA of $84.5 million.(1) The business has performed well, with strong industrial parts sales, as well as strong equipment sales, especially in the construction and forestry category, due in p
Slide 15: Appendix 1
Appendix 1 -\\ Together We Get More Done:
Slide 16: Endnotes
\\ Endnotes 1. This measure does not have a standardized meaning prescribed by GAAP. Please see Wajax’s Management’s Discussion and Analysis for the three and six months ended June 30, 2022 under the heading “Non-GAAP and Additional GAAP Measures”, which is available on SEDAR at www.sedar.com, for d
Slide 17: Appendix 2
Appendix 2 -\\ Together We Get More Done:
Slide 18: Non-GAAP and Additional GAAP Measures
\\ Non-GAAP1 and Additional GAAP Measures Except where noted, all figures are in millions of Canadian dollars, except per share data and ratio calculations. This presentation contains the following non-GAAP and additional GAAP measures that do not have a standardized meaning prescribed by GAAP and a
Slide 19: Non-GAAP and Additional GAAP Measures
\\ Non-GAAP1 and Additional GAAP Measures Reconciliation of the Corporation’s net earnings to EBT, EBIT and Adjusted EBIT and the calculation of the Corporation’s RONA is as follows: For the twelve For the twelve For the twelve months ended months ended months ended June 30 March 31 June 30 2022 202
Slide 20: wajax.com
b viata \\ Together We Get More Done. Wajax.com