Wajax Financial Results - Q3 2021

November 2, 2021

Cautionary Statement Regarding

  • Forward-LookingInformation

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 Corporation's future performance. 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 focus and key objectives in managing our business through the COVID-19 pandemic; the planned expansion of our Canadian direct distribution relationship with Hitachi effective March 1, 2022, as well as the expected benefits of such expanded relationship, including enhanced access to product development, increased market responsiveness, improved reliability of equipment supply and increased market share; our intention to continue working with Hitachi on transition planning for our expanded direct distribution relationship, and our mutual continued expectation of significant long-term benefits from such relationship; our expectation that revenue associated with the acquisition of Tundra will be a significant contributor to our total revenue growth in 2021; our continued intention to work closely with our major suppliers in relation to inventory availability and supply chain service levels; our expectation that current challenges with the availability of construction and forestry, material handling and power systems equipment inventory will persist into the fourth quarter; our plans to continue our focus on success in construction and forestry, mining, material handling and power systems, including improvements in product support volumes; our belief that we have excellent growth opportunities in the aforementioned heavy equipment categories and our intention to continue to work closely with our supplier partners to prudently grow market share and capture aftermarket sales; our expectation that our industrial parts and ERS categories will yield strong growth, including the contribution of Tundra, and that ERS continues to be one of Wajax's most significant opportunities, capable of growth at each point in the economic cycle; and our plan to minimize the implementation risks associated with our new ERP system by conducting such implementation over a 24-month period. These statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions regarding our ability to successfully manage our business through the COVID-19 pandemic and actions taken by governments, public authorities and customers in respect to the novel coronavirus and its variants; the ability of Hitachi Construction Machinery ("HCM") and its current joint venture partner to dissolve the joint venture arrangements through which Wajax has received construction excavators, mining equipment and related aftermarket parts since 2001, including their ability to complete the steps necessary for such dissolution in a timely manner or at all, and to obtain any required approvals for, or consents to, such dissolution; the ability of Hitachi and Wajax to develop and execute successful sales, marketing and other plans related to their expanded direct distribution relationship; general business and economic conditions; the supply and demand for, and the level and volatility of prices for, oil, natural gas and other commodities; financial market conditions, including interest rates; our ability to execute our updated Strategic Plan, including our ability to develop our core capabilities, execute our organic growth priorities, complete and effectively integrate acquisitions, such as Tundra, and to successfully implement new information technology platforms, systems and software, such as our new ERP system; the future financial performance of the Corporation; our costs; market competition; our ability to attract and retain skilled staff; our ability to procure quality products and inventory; and our ongoing relations 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, the geographic spread and ultimate impact of the COVID-19 virus and its variants, and the duration of the coronavirus pandemic; the duration and severity of travel, business and other restrictions imposed by governments and public authorities in response to COVID-19, as well as other measures that may be taken by such authorities; actions taken by our customers in relation to the COVID-19 pandemic, including slowing, reducing or halting operations; the inability of HCM and its current joint venture partner to dissolve their joint venture arrangements satisfactorily, including their inability to complete the steps necessary for such dissolution in a timely manner or at all, or the failure to obtain any required approvals for, or consents to, such dissolution on acceptable terms; the ability of Hitachi and Wajax to develop and execute successful sales, marketing and other plans related to their expanded direct distribution relationship; a continued or prolonged deterioration in general business and economic conditions (including as a result of the COVID-19 pandemic); volatility 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; fluctuations in financial market conditions, including interest rates; the level of demand for, and prices of, the products and services we offer;

Wajax Financial Results - Q3 2021 (November 2, 2021)

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Cautionary Statement Regarding

  • Forward-LookingInformation

levels of customer confidence and spending; market acceptance of the products we offer; 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 (including disruptions caused by the COVID-19 pandemic), job action and unanticipated events related to health, safety and environmental matters); our ability to attract and retain skilled staff and our ability to maintain our relationships with 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 Annual Information Form for the year ended December 31, 2020 (the "AIF"), in our annual MD&A for financial risks, and in our most recently filed quarterly MD&A, all of which have been filed on SEDAR. 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 AIF, and in our annual and quarterly MD&A, are not the only risks that could impact the Corporation. We cannot accurately predict the full impact that COVID-19 will have on our business, results of operations, financial condition or the demand for our products and services due to the uncertainties related to the spread of the virus and its variants. 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.

Wajax Financial Results - Q3 2021 (November 2, 2021)

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  • Non-GAAPand 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 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 the Corporation's performance.

Please see Wajax's Management's Discussion and Analysis for the three and nine months ended September 30, 2021 under the heading "Non-GAAP and Additional GAAP Measures" for definitions of these measures and reconciliations to the most directly comparable GAAP measures.

Wajax Financial Results - Q3 2021 (November 2, 2021)

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Update Regarding COVID-19 Pandemic

  • Response
    • The coronavirus pandemic and the measures implemented to stop the spread of COVID-19 have continued to have a significant effect on Wajax
    • The Corporation's focus is to manage the business according to the following four key objectives:
      1. Protecting the health, safety and well-being of employees
      2. Providing strong service to customers
      3. Protecting the financial health of the Corporation
      4. Continuing to be well-positioned to execute the Corporation's growth strategy as conditions improve

Wajax Financial Results - Q3 2021 (November 2, 2021)

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Wajax Corporation published this content on 01 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 November 2021 19:09:05 UTC.