Wajax : Investor Presentation (September 26, 2023)

Wajax Corporation

Investor Presentation

September 26, 2023

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 or the future performance of Wajax Corporation (the "Corporation" or "Wajax"). 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 Wajax management's current beliefs and are based on information currently available to Wajax management. Although Wajax 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: the expected benefits to Wajax as the sole Canadian distribution partner of Hitachi, including an expanded direct distribution strategy, enhanced access to key products and parts, a direct product support relationship, and an evolving differentiated product line; Wajax's expectation that its reinvigorated relationship with Hitachi will help drive near-, mid- and long-term growth in equipment sales and product support; our view that industrial parts and services is a higher margin, less cyclical business line, with strong growth potential; our approach to industrial parts and engineered repair services acquisitions, including targeted parts and services categories, the attributes of the acquisition targets upon which we focus, and the financial and other criteria which we apply; the elements of Wajax's multi-pronged growth strategy, including business-wide heavy equipment and industrial parts and engineered repair services initiatives, as well as Wajax's targeting of top-line growth, meaningful margin expansion and improved profitability; Wajax's sustainability roadmap, including its primary environmental, social and governance priorities; our view that the Corporation has significant growth potential across all its business lines; Wajax's focus on growing revenue and driving enhanced operational leverage; and the stability of Wajax's dividend. 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 One Wajax strategy, including our ability to execute on our organic growth priorities, complete and effectively integrate acquisitions, and successfully implement new information technology platforms, systems and software, such as our ERP system; the receding effects of the COVID-19 pandemic and actions taken by governments, public authorities, suppliers and customers in response to the COVID-19 virus and its variants; 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, including as a result of new COVID-19 variants or armed conflicts between nations; supply chain disruptions and shortages related to or arising from the impacts of COVID-19 or armed conflicts between nations; fluctuations in financial market conditions, including interest rates; the impacts of new COVID-19 variants, including the duration and severity of travel, business and other restrictions imposed by governments and public authorities in response to such variants; actions taken by our suppliers and customers in relation to new COVID-19 variants, including slowing, reducing or halting operations; 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; 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 level of demand for, and prices of, the products and services we offer; a decrease in levels of customer confidence and spending; 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 (including those caused by or related to new COVID-19 variants), 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, 2022 (the "2022 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 2022 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.

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2	Wajax Corporation - Investor Presentation (September 26, 2023)

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 and six months ended June 30, 2023 and for the three and twelve months ended December 31, 2022 under the heading "Non-GAAP and Other Financial Measures", which is available under the Corporation's profile on SEDAR+ at www.sedarplus.ca, for definitions of these measures and reconciliations to the most directly comparable GAAP measures.

For the three and twelve months ended December 31, 2021, December 31, 2020, December 31, 2019, December 31, 2018, December 31, 2017, and December 31, 2016, please see Wajax's Management's Discussion and Analysis under the heading "Non-GAAP and Additional GAAP Measures", which are available under the Corporation's profile on SEDAR+ at www.sedarplus.ca, for definitions of these measures and reconciliations to the most directly comparable GAAP measures.

3	Wajax Corporation - Investor Presentation (September 26, 2023)

2022 REVENUE SOURCES

($ millions)

Industrial Parts and Engineered Repair Services (ERS) 41%

WAJAX AT-A-GLANCE

NATIONAL FOOTPRINT

165-year operating history

124 branches coast-to-coast

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

Equipment Sales

	$275.5		Product Support
	$628.6		34%	35%
		EMPLOYEES
	$1,962.7 B	Rentals	~3,100
	BY FUNCTION
$535.8	IN REVENUE		EMPLOYEES
	IN 2022	Industrial Parts
$39.1
	$483.9		Engineered Repair		31%
			Services (ERS)
				Technical Sales	Operations
	Heavy Equipment 59%

4	Wajax Corporation - Investor Presentation (September 26, 2023)

FINANCIAL HIGHLIGHTS

											Q2 2023							Q2 2022				2022				2021
	Revenue ($ millions)						$586.2						$511.2					$1,962.7			$1,637.3
	Adjusted Basic Earnings per					$1.26							$0.92					$3.26				$2.41
	Share1
	Adjusted EBITDA1 ($ millions)					$57.2							$45.2					$165.9			$145.6
						Revenue ($ millions)																	Leverage
												$1,962.7	$2,114.4				2.07x	2.17x		2.45x		2.60x	2.28x
											$1,637.3													1.76x
					$1,481.6	$1,553.0	$1,422.6
			$1,318.7																				1.29x
	$1,221.9																				1.13x
	2016		2017	2018	2019	2020			2021		2022 Q2 2023 TTM		2016	2017	2018		2019	2020	2021	2022		Q2 2023 TTM
											Earnings & Adjusted Earnings Per Share1
																												$3.38	$3.26		$3.78		$3.70
							$1.82	$2.02		$1.98	$2.10			$1.58 $1.75	$2.50	$2.41
					$1.40 $1.54
				$1.01
			$0.55
			2016		2017	2018		2019				2020		2021		2022		Q2 2023 TTM
										Basic Earnings Per Share				Adjusted Earnings Per Share

TTM = Trailing Twelve Month

5	Wajax Corporation - Investor Presentation (September 26, 2023)