Linamar Corporation · TSX:LNR

Linamar — Merger or Acquisition (December 2023)

27 slides from Linamar's merger presentation, Dec 20, 2023

  1. Slide 1: Linamar Acquisition of Bourgault Industries

    Linamar Acquisition of Bourgault Industries Linda Hasenfratz, Executive Chair & CEO December 20, 2023

  2. Slide 2: Forward Looking Information, Risk and Uncertainties

    Forward Looking Information, Risk and Uncertainties Certain information regarding Linamar set forth in this presentation and oral summary, including management’s assessment of the Company’s future plans and operations may constitute forward-looking statements. This information is based on current ex

  3. Slide 3: Strategy

    Strategy

  4. Slide 4: Bourgault: A Strategic Expansion of Linamar's Agriculture Platform

    Bourgault: A Strategic Expansion of Linamar's Agriculture Platform with Another Technology Leader  Industry-leading short-line agricultural equipment manufacturer specializing in seeding systems such as air seeders and air carts  Reputation for high quality and advanced technology, with a focus on

  5. Slide 5: Linamar Vision for 2100

    Linamar Vision for 2100 Rapid Technology Growing Intensity to Aging Global Growing Global Address Environmental Urbanization Evolution Population Population Concerns © Linamar Corporation 5

  6. Slide 6: Linamar's Agriculture & Food Strategy: Feed The World

    Linamar’s Agriculture & Food Strategy: Feed The World  To design, manufacture and service complementary Short-Line Agriculture Equipment offerings that are innovative and differentiated to feed a growing planet  Founded within the diversified Linamar Vision for 2100 to support a growing FEED THE g

  7. Slide 7: Complementary Short-line Products

    Complementary Short-line Products Linamar has become a leader in premium short-line agriculture equipment and now with the acquisition of Bourgault provides a full suite of product offerings addressing all segments of the broad acre crop production cycle © Linamar Corporation 7

  8. Slide 8: Agriculture Growth Strategic Criteria

    Agriculture Growth Strategic Criteria SHORT-LINE OEM DIFFERENTIATED CUSTOMER CONNECTION  Distribution synergies  Innovative & Differentiated Offering  Brand Recognition means end users  OEM Complementary  Strong Intellectual Property who pull demand through channels  Additional Value  Configu

  9. Slide 9: Linamar Global Operating Structure

    Linamar Global Operating Structure: Addition of Bourgault Creates New Linamar Agriculture Business Unit Within Industrial Segment Global Support Global Operations Mobility Industrial Corporate Headquarters Linamar Ag Frank Hasenfratz Centre McLaren Engineering North America Europe Asia Pacific Struc

  10. Slide 10: Strategic Rationale for Acquisition

    Strategic Rationale for Acquisition World Class Short-line  Bourgault is an industry-leading agriculture equipment manufacturer with unparalleled agronomic technology and Agriculture Equipment expertise in seeding systems Manufacturer  Global network of agricultural equipment dealers that spans No

  11. Slide 11: Acquisition Transaction Overview

    DRAFT Acquisition Transaction Overview Jim Jarrell, President & COO

  12. Slide 12: Bourgault: Company Overview

    Bourgault: Company Overview Founded  1973 Employees &  ~1,000 total employees Headquarters  St. Brieux, Saskatchewan, Canada Leadership  Experienced senior management team Team  Bourgault's seeding systems includes Air Carts, ParaLink Hoe Drills, ParaLink Coulter Drills and Frame Mounted Seeder

  13. Slide 13: Bourgault Products

    Bourgault Products ADVANCED SEEDING SYSTEMS AIR CARTS HOE DRILL SEEDERS COULTER DRILL SEEDERS FRAME MOUNTER SEEDERS FEED HANDLING & PROCESSING BALE STACKERS BALE PROCESSORS ROCK REMOVAL / PICKER FEED MIXERS © Linamar Corporation 13

  14. Slide 14: Technology & Innovation Market Leader

    Technology & Innovation Market Leader  Broadest air seeding product line with the largest equipment sizes and innovative features  Constantly evolving seeding technology that leads the industry and is at the forefront of ESG regulations TriMaxTM System Quick Depth Adjust & AccuSetTM Hi-FlotationTM

  15. Slide 15: Significant Synergistic Benefits

    Significant Synergistic Benefits  The transaction provide significant opportunity for Linamar to achieve material synergies and create substantial value  Linamar has a successful track record of integrating acquisitions, maximizing synergies and positioning acquired businesses for accelerated orga

  16. Slide 16: Strategic Acquisitions Are Part of Linamar's Long-term Growth & Expertise

    Strategic Acquisitions Are Part of Linamar’s Long-term Growth & Expertise Mobility Acquisition Integration +40% Ag Integration Team Industrial Momentum Acquisition & Integration Team  Linamar’s global  Completely separate integration  Integration will be led by Ag Division manufacturing facilitie

  17. Slide 17: Financial Impact

    Financial Impact Dale Schneider CFO © Linamar Corporation 17

  18. Slide 18: Transaction Overview

    Transaction Overview  Linamar to acquire 100% of the outstanding shares of Bourgault Industries Ltd. ("Bourgault") on a cash-free, debt-free basis for C$640 million Transaction  Acquisition valuation compares favourably with precedent agriculture equipment transactions and Overview public peer val

  19. Slide 19: Purposefully Building a More Diversified Global Manufacturer

    Purposefully Building a More Diversified Global Manufacturer Pro Forma 2023 Operating Earnings1 2022 Mobility 45% 2017 55% Industrial FY2016 Operating Earnings  Through organic growth and acquisitions, Linamar has built a transformed Industrial segment Industrial that now comprises 55% of total Ope

  20. Slide 20: Deployment of Balance Sheet Capacity While Maintaining Prudent Leverage

    Deployment of Balance Sheet Capacity While Maintaining Prudent Leverage  The Bourgault acquisition is an opportunity for Linamar to deploy its financial capacity towards an accretive acquisition with strong growth prospects and synergy potential, with the expectation to rapidly de-lever following t

  21. Slide 21: Linamar: A Diversified Synergistic Business Model

    Linamar: A Diversified Synergistic Business Model Linda Hasenfratz, Executive Chair & CEO

  22. Slide 22: Linamar's Powerful Synergistic Diversification Model

    Linamar’s Powerful Synergistic Diversification Model Cash for Continued Brand Investment Management INDUSTRIAL MOBILITY SEGMENT SEGMENT The Power of a Balanced & Diversified Business Model  OEM Manufacturer  Tier 1 Manufacturer  Strong Brands  High Capital Intensity  Low Capital Intensity  Con

  23. Slide 23: Synergistic Diversification Model Key Driver of Long-Term Performance

    Synergistic Diversification Model Key Driver of Our Long-Term Consistent Strong Performance Since 2010 Double Digit Double Digit Double Digit Net Earnings Return on Capital Sales Growth Net Earnings Growth Positive Free Employed Sales Growth Growth Cash Flow 79% 71% 93% 11 out of 14 years 10 out of

  24. Slide 24: Bourgault is a Highly Strategic Fit for Linamar

    Bourgault is a Highly Strategic Fit for Linamar Another Technically Superior Short-line Company Completing Our Agricultural Portfolio Immediately Accretive Significant Growth Opportunities Further Advances our Powerful Synergistic Diversification Strategy © Linamar Corporation 24

  25. Slide 25: Question and Answer

    Question and Answer © Linamar Corporation 25

  26. Slide 26: Bourgault is a Highly Strategic Fit for Linamar

    Bourgault is a Highly Strategic Fit for Linamar Another Technically Superior Short-line Company Completing Our Agricultural Portfolio Immediately Accretive Significant Growth Opportunities Further Advances our Powerful Synergistic Diversification Strategy © Linamar Corporation 26

  27. Slide 27: Thank You

    is B28 “@LINAMAR Thank: You o www.linamar.com: 00000:

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