Wajax : Q1 2024 Financial Results (May 1, 2024)

WAJAX CORPORATION

FINANCIAL RESULTS

Q1 2024

May 2, 2024

Together We Get More Done.

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-lookingstatements"). These forward-looking statements relate to future events or the future performance of Wajax Corporation ("we", "us", "our", "Wajax" or the "Corporation"). All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "anticipates", "intends", "predicts", "expects", "is expected", "scheduled", "believes", "estimates", "projects" or "forecasts", or variations of, or the negatives of, such words and phrases or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors beyond the Corporation's ability to predict or control which may cause actual results, performance and achievements to differ materially from those anticipated or implied in such forward-looking statements. To the extent any forward-looking information in this presentation constitutes future-oriented financial information or financial outlook within the meaning of applicable securities law, such information is being provided to demonstrate the potential of the Corporation and readers are cautioned that this information may not be appropriate for any other purpose. There can be no assurance that any forward-looking statement will materialize. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this presentation are made as of the date of this presentation, reflect management's current beliefs and are based on information currently available to management. Although management believes that the expectations represented in such forward-looking statements are reasonable, there is no assurance that such expectations will prove to be correct. Specifically, this presentation includes forward-looking statements regarding, among other things: our corporate purpose and values; our focus on six strategic priorities for 2024: continuing to build a "people first" company, growing Wajax's existing business with a focus on parts, service and margin improvement, unlocking the potential of Wajax's enhanced direct relationship with Hitachi, acquiring industrial parts and engineered repair services ("ERS") businesses, improving cost structure and processes, and continuing Wajax's enterprise resource planning ("ERP") system rollout and additional technology improvements; our belief that fundamentals remain solid in many of the markets we serve - particularly in mining and energy; our belief that the new Hitachi Construction Machinery Americas ("HCMA") financing program introduced March 1, 2024 will benefit Wajax customers and result in stronger equipment sales in the near term; our expectation that the majority of recent increases in short-term equipment rental arrangements will also convert to equipment sales within six to twelve months; our expectation that stronger equipment sales will result in the near term given our increased 2024 first quarter backlog and the new HCMA financing program, and that our inventory will decline over the next two quarters; and our intention to continue to monitor end markets and customer purchasing patterns, while being prudent with costs and maintaining focus on the execution of our strategic priorities. These statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions regarding: the absence of significant negative changes to general business and economic conditions; limited negative fluctuations in the supply and demand for, and the level and volatility of prices for, oil, natural gas and other commodities; the stability of financial market conditions, including interest rates; the ability of Hitachi and Wajax to develop and execute successful sales, marketing and other plans related to the expanded direct distribution relationship which took effect on March 1, 2022; our continued ability to execute our strategic priorities, including our ability to execute on our organic growth priorities, complete and effectively integrate industrial parts and ERS acquisitions, and successfully implement new information technology platforms, systems and software, such as our ERP system; the future financial performance of the Corporation; limited fluctuations in our costs; the level of market competition; our continued ability to attract and retain skilled staff; our continued ability to procure quality products and inventory; and our ongoing maintenance of strong relationships with suppliers, employees and customers. The foregoing list of assumptions is not exhaustive. Factors that may cause actual results to vary materially include, but are not limited to: a continued or prolonged deterioration in general business and economic conditions; negative fluctuations in the supply and demand for, and the level of prices for, oil, natural gas and other commodities; a continued or prolonged decrease in the price of oil or natural gas; the inability of Hitachi and Wajax to develop and execute successful sales, marketing and other plans related to the expanded direct distribution relationship which took effect on March 1, 2022; a decrease in levels of customer confidence and spending; supply chain disruptions and shortages; fluctuations in financial market conditions, including interest rates; the level of demand for, and prices of, the products and services we offer; decreased market acceptance of the products we offer; the termination of distribution or original equipment manufacturer agreements; unanticipated operational difficulties (including failure of plant, equipment or processes to operate in accordance with specifications or expectations, cost escalation, our inability to reduce costs in response to slow-downs in market activity, unavailability of quality products or inventory, supply disruptions, job action and unanticipated events related to health, safety and environmental matters); our inability to attract and retain skilled staff and our inability to maintain strong relationships with our suppliers, employees and customers. 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 MD&A for the year-ended December 31, 2023 (the "2023 MD&A"), which has been filed under the Corporation's profile on SEDAR+ at www.sedarplus.ca, under the heading "Risk Management and Uncertainties". The forward-looking statements contained in this presentation are expressly qualified in their entirety by this cautionary statement. The Corporation does not undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless so required by applicable securities laws.

Readers are cautioned that the risks described in the 2023 MD&A are not the only risks that could impact the Corporation. Risks and uncertainties not currently known to the

Corporation, or currently deemed to be immaterial, may have a material effect on the Corporation's business, financial condition or results of operations.

Together We Get More Done.	2	Wajax Financial Results - Q1 2024 (May 2, 2024)

NON-GAAP AND OTHER FINANCIAL MEASURES

This presentation contains certain non-GAAP and other financial measures that do not have a standardized meaning prescribed by generally accepted accounting principles ("GAAP"). Therefore, these financial measures may not be comparable to similar measures presented by other issuers. Investors are cautioned that these measures should not be construed as an alternative to net earnings or to cash flow from operating, investing, and financing activities determined in accordance with GAAP as indicators of Wajax's performance.

Please see Wajax's Management's Discussion and Analysis for the three months ended March 31, 2024, which is available under the Corporation's profile on SEDAR+ at www.sedarplus.ca, under the heading "Non-GAAP and Other Financial Measures" for definitions of these measures and reconciliations to the most directly comparable GAAP measures.

Together We Get More Done.	3	Wajax Financial Results - Q1 2024 (May 2, 2024)

WAJAX AT-A-GLANCE

NATIONAL FOOTPRINT

166-year operating history

119 branches coast-to-coast

A broad range of industrial products and services Diverse market and sector experience

REVENUE SOURCES Q1 2024

($ millions)

Industrial Parts and Engineered Repair Services (ERS) 50%

$482.3M

IN REVENUE

IN Q1 2024

$10.8

Heavy Equipment 50%

Together We Get More Done.	4	Wajax Financial Results - Q1 2024 (May 2, 2024)

PURPOSE AND VALUES

Empowering People to Build a Better Tomorrow

We commit to safety and well-being;

We develop potential and expertise;

We deliver an exceptional experience together;

We build lasting relationships; and

We strive to continuously improve.

Together We Get More Done.	5	Wajax Financial Results - Q1 2024 (May 2, 2024)

STRATEGIC PRIORITIES

Continue to build a "people first" company.

Grow our existing business with a focus on parts, service, and margin improvement.

Unlock the potential of our enhanced direct

relationship with Hitachi.

Acquire Industrial Parts and ERS businesses.

Improve our cost structure and processes.

Continue ERP system roll-out and technology improvements.

Together We Get More Done.	6	Wajax Financial Results - Q1 2024 (May 2, 2024)

HIGHLIGHTS - FIRST QUARTER

Higher gross profit margins help to offset revenue decline

-6.5%

REVENUE

$482.3

million

• Lower construction and forestry sales in western and eastern Canada and lower material handling sales in eastern Canada
• Higher industrial parts sales in western Canada and higher ERS sales in central Canada

GROSS

PROFIT

MARGIN1

22.0%

• Higher proportion of, and higher margins on, product support, industrial parts and ERS sales

150 bps

-5%

ADJUSTED

EBITDA1

$40.7

million

• Adjusted to exclude non-cash gains on mark to market of derivative instruments of $2.5 million

-28%

ADJUSTED BASIC EPS1

$0.59

per share

• Adjusted to exclude after-taxnon-cash gains on mark to market of derivative instruments of $1.9 million

-54%

YTD TRIF3

0.54

• Five recordable incidents occurred during the quarter, five less than the same quarter last year

Percentage change from Q1 2023

Together We Get More Done.

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Wajax Financial Results - Q1 2024 (May 2, 2024)

REVENUE BY REGION

Six consecutive quarters of growth in central Canada

Revenue by Region ($ millions)

4%

(10)%

(8)%

Note: Totals may not add due to rounding.

Together We Get More Done.	8	Wajax Financial Results - Q1 2024 (May 2, 2024)

HEAVY EQUIPMENT AND PRODUCT

SUPPORT REVENUE

Equipment

YoY Change

12.8%

10.6%

(8.0)%

(21.6)%

(25.8)%

• Decrease from Q4 2023 due primarily to lower construction and forestry revenue in all regions
• Decrease from Q1 2023 was due primarily to lower construction and forestry sales in western and eastern Canada.

Product Support

YoY Change

8.2%

15.0%

13.7%

12.3%

(0.4)%

• Increase from Q4 2023 was due primarily to higher mining revenue in western and eastern Canada, offset partially by lower power systems revenue in central and eastern Canada

Together We Get More Done.

9

Wajax Financial Results - Q1 2024 (May 2, 2024)

INDUSTRIAL PARTS AND ERS REVENUE

Industrial Parts

YoY Change

18.6%

15.7%

19.4%

(1.4)%

1.0%

• Increase from Q4 2023 was due primarily to higher sales in western Canada

ERS

YoY Change

38.5%

24.3%

10.0%

42.8%

(0.9)%

• Decrease from Q4 2023 was due to lower revenues in all regions

Together We Get More Done.

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Wajax Financial Results - Q1 2024 (May 2, 2024)