Wajax Corporation · TSX:WJX
Wajax — Wajax Income Fund — Investor Presentation (April 2006)
23 slides from Wajax's investor presentation, April 2006
Slide 1: Income Fund Investor Presentation April 2006
Income Fund Investor Presentation April 2006 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain information in this presentation contains forward- looking statements based on management’s current expectations and assumptions regarding the business and anticipated financial results of the Fund. There is, however, no assurance forward-looking statements will ma
Slide 3: Fund Overview
Fund Overview Leading Canadian distributor with broad product offering Diversified by market and geography Wajax 2005 Consolidated Wajax 2005 Consolidated Revenues Revenues by Region Industries Served Transportation 7% Quebec & Industrial / Maritimes Commercial 33% 35% Mining / Oil & Western Gas Can
Slide 4: Fund Overview core businesses
Fund Overview 3 core businesses Over 45,000 customers Mobile Equipment Over 100 distribution and service branches in Canada 2,400 employees 2005 Revenues : $1,049 million Industrial Components 2005 EBITDA : $65 million * * From continuing operations and before conversion-related costs Power Systems
Slide 5: 3 Core Businesses
3 Core Businesses Mobile Industrial Power Equipment Components Systems 53% of Total Revenues 5
Slide 6: Mobile Equipment Business Product Lines
Mobile Equipment Business Product Lines 6
Slide 7: Mobile Equipment Business Overview
Mobile Equipment Business Overview Distribute, rent and service broad array of mobile equipment to a variety of sectors 2005 Revenue by Product Type Construction and Crane and Utility Forestry 8% 52% Mining/Oil and Gas 17% Material Handling 23% 7 30 locations
Slide 8: Mobile Equipment Growth Opportunities and Strategies
Mobile Equipment Business Growth Opportunities and Strategies Capitalize on major long-term project opportunities – Mining – Oil sands Expanding market share in the construction and forestry and material handling segments Grow higher margin parts and service business Acquisitions – Broaden geographi
Slide 9: Mobile Equipment Recent Successes
Mobile Equipment Business Recent Successes Orders and long-term product support worth $165 million Oil sands Horizon Project Elk Valley Coal 9
Slide 10: Mobile Equipment Business Revenue
Mobile Equipment Business Revenue Revenue and EBIT % EBIT % 600,000,000 6.0% 500,000,000 5.0% 400,000,000 4.0% 300,000,000 3.0% 200,000,000 2.0% 100,000,000 1.0% - 0.0% 2002 2003 2004 2005 Parts and Service Equipment 30% 70% 1
Slide 11: 3 Core Businesses
3 Core Businesses Mobile Industrial Power Equipment Components Systems 27% of Total Revenues 1
Slide 12: Industrial Components Business Overview
Industrial Components Business Overview Bearings and Power Hydraulics and Transmissions Process Equipment 56% 44% 1
Slide 13: Industrial Components Markets Served
Industrial Components Business Markets Served 2005 Revenue by Market Other 12% 55 branches serving over Mining / Oil & Gas Industrial / Commercial 22,000 customers 20% 45% Forestry 23% 1
Slide 14: Industrial Components Market Positioning
Industrial Components Business Market Positioning The largest market share in Canada for the products we sell: Estimated at 10% Target Market: Approximately $3 billion annually Tremendous room for growth 1
Slide 15: Industrial Components Growth Opportunities and Strategies
Industrial Components Business Growth Opportunities and Strategies Revenue Margins • Expand presence in mobile • Reduce procurement costs hydraulics and low tech through vendor bearings through import consolidation of quality off shore products • Use regional price matrices • Build national accounts
Slide 16: Industrial Components Business Revenue
Industrial Components Business Revenue Revenue and EBIT % EBIT % 300,000,000 5.0% 4.0% 250,000,000 3.0% 200,000,000 2.0% 150,000,000 1.0% 100,000,000 0.0% 50,000,000 -1.0% - -2.0% 2002 2003 2004 2005 1
Slide 17: 3 Core Businesses
3 Core Businesses Mobile Industrial Power Equipment Components Systems 20% of Total Revenues 1
Slide 18: Power Systems Business Product Lines
Power Systems Business Product Lines 1
Slide 19: Power Systems Markets Served
Power Systems Business Markets Served One of the largest distributors in Canada – 19 locations Sales and service of diesel engines, transmissions and power generators in Alberta, Saskatchewan, Manitoba, Northwestern Ontario, Quebec and the Maritimes 2005 Revenue by Market Industrial / Commercial / O
Slide 20: Power Systems Growth Opportunities and Strategies
Power Systems Business Growth Opportunities and Strategies Integration of Midwest acquisition Expansion of niche product lines – EMD – G.E. Energy Selectively expand existing branches and improve service margins Evaluate acquisition opportunities 2
Slide 21: Power Systems Business Revenue
Power Systems Business Revenue Revenue and EBIT % EBIT % 250,000,000 12.0% 10.0% 200,000,000 8.0% 150,000,000 6.0% 100,000,000 4.0% 50,000,000 2.0% - 0.0% 2002 2003 2004 2005 2002 2003 2004 LTM 09/05 Parts and Service Equipment 50% 50% 2
Slide 22: Financial Highlights
Financial Highlights 2
Slide 23: Financial Highlights
Financial Highlights (C$ millions, except unit and per unit data) (From continuing operations) 2005 2004 Revenue $1,049.4 $871.4 Adjusted EBIT * $55.4 $37.2 Basic earnings per unit/share $2.19 $1.12 Estimated distributable cash $51.5 N/A Estimated distributable cash per unit – basic $3.11 N/A Units/
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