CIBC Annual Eastern Institutional Investors Conference September 27, 2018
Forward-looking Statements Statements and information herein that are not historical facts are "forward-looking information". Words such as plans, intends, outlook, expects, anticipates, estimates, believes, "likely", should, "could", "will", "may" and similar expressions often identify forward-looking information and statements. Forward looking statements and information may include, without limitation, statements regarding the operations, business, financial condition, liquidity, expected financial results, performance, obligations, market conditions, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of Toromont and its business units. Forward-looking information and statements contained herein are based on, among other things, Toromont management's current assumptions, expectations, estimates, objectives, plans and intentions regarding projected revenues and expenses, the economic, industry and regulatory environments in which Toromont operates or which could affect its activities, Toromont's ability to attract and retain customers as well as Toromont's operating costs and raw materials supply. By their nature, forward-looking information and statements, and the factors upon which they are based, are subject to risks and uncertainties which may be beyond Toromont's ability to control or predict. Actual results or events could differ materially from those expressed or implied by forward-looking information and statements. Factors that could cause actual results or events to differ from current expectations include, among others: business cycles, including general economic conditions in the countries in which Toromont operates; commodity price changes, including changes in the price of precious and base metals; changes in foreign exchange rates, including the Cdn$/US$ exchange rate; the termination of distribution or original equipment manufacturer agreements; equipment product acceptance and availability of supply; increased competition; credit of third parties; additional costs associated with warranties and maintenance contracts; changes in interest rates; the availability of financing; potential environmental liabilities of the acquired businesses and changes to environmental regulation; failure to attract and retain key employees; damage to the reputation of Caterpillar, product quality and product safety risks which could expose Toromont to product liability claims and negative publicity; new, or changes to current, federal and provincial laws, rules and regulations including changes in infrastructure spending; and any requirement of Toromont to make contributions to the registered funded defined benefit pension plans, postemployment benefits plan or the multi-employer pension plan obligations in which it participates in and acquired in excess of those currently contemplated. Risks and uncertainties related to the 2017 significant acquisition could also cause the actual results to differ materially from the estimates beliefs and assumptions expressed or implied in the forward-looking statements, including but not limited to: changes in consumer and business confidence as a result of the change in ownership; the potential for liabilities assumed in the acquisition to exceed our estimates or for material undiscovered liabilities in the 2017 acquisition; the potential for third parties to terminate or alter their agreements or relationships with Toromont as a result of the acquisition; and risks related to integration of the acquired operations with those of Toromont including cost of integration and ability to achieve the expected benefits. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these factors and other risks and uncertainties that could cause actual results or events to differ from current expectations can be found in the Risks and Risk Management and Outlook section of Toromont s annual MD&A for 2017 contained in the 2017 Toromont Annual Report. Other factors, risks and uncertainties not presently known to Toromont or that Toromont currently believes are not material could also cause actual results or events to differ materially from those expressed or implied by forward-looking information and statements. Readers are cautioned not to place undue reliance on the forward-looking information and statements contained herein, which are given as of the date of this document, and not to use such information and statements for anything other than their intended purpose. Toromont disclaims any obligation or intention to update or revise any forward-looking information or statement, whether the result of new information, future events or otherwise, except as required by applicable law. 2
EQUIPMENT GROUP Multiple Growth Platforms Construction Industries Resource Industries 3
Long-term Business Growth & Returns 10 Yr TSR CAGR*: Toromont 16.2% S&P/TSX 5.2% TIH 50th Foundational Acquisitions (Continuing Ops) Crothers 1993 Battlefield 1996 Newfoundland Tractor 1997 Powell 2001 Hewitt/Atlantic 2017 *TSR determined based on 10 years to Sept. 24/18 4
Toromont Today Business Contribution Revenues Proforma R12 Revenues to June 2018 $3.4B Combined CAT dealership represents 70% of revenues Rental services business contributes 15% 2017 acquired businesses contribute 40%, representing significant opportunity Contributions Rounded to nearest 5% Will not add to 100% due to rounding 5
Diversified Customers & Services Other 9% CIMCO 10% Rental Services 13% Construction 37% Power Systems 9% Mining 21% Product Support is a significant component of the Toromont business model * R12 June 2018, pro forma basis 6
Strong Dealer Network Equipment Group 5,000+ Members DEDICATED TEAM DELIVERS SPECIALIZED EQUIPMENT AND MUCH MORE 132 Locations 60 Toromont CAT Locations History of Successful Consolidation >250 Brands >28,000 Items 72 Locations 7
Approaching a Year Good progress on broad fronts: Branding Structure Operating Disciplines Shared Services Systems 8
Structure Toromont Cat Central Region Leadership appointed Runs with limited integration distraction Quebec Region Leadership appointed Decentralized branch structure announced Atlantic Region Leadership appointed Decentralized branch structure implemented NL integrated with Maritimes to form a true Atlantic Region Power Systems Pan organizational structure implemented Mining Division Pan organizational structure announced Product Support Service Leadership appointed Opportunity to leverage best practices across org Manage REMAN as a portfolio Product Support Parts & Logistics Leadership appointed Opportunity to leverage best practices across org Evaluate Supply Chain Efficiency Balanced Approach to Leadership Selection 9
Battlefield Update Fully rolling out Battlefield Model across Quebec and the Maritimes Separate Rental Services business from Heavy Equipment Dealership Management consolidated and integrated Battlefield systems in final stages of francisation for Q4 implementation Increased investment in rental fleets including expansion of allied products Leveraging existing facilities with view to expansion opportunities 250+ brands including: 10
Rental Revenues $ Millions Rental Market Opportunity Equipment Group 2,500 Total market* Toromont revenue $2,260 2,000 $1,800 1,500 1,000 Significant growth opportunity 500 0 $300 $160 $234 $49 $31 314 13% 16% 19% 14% Battlefield Heavy Rent Power Total R 12 Revenues to Jun. 30/18 * Market Size based on internal management estimates 11
Material Handling Update All rebranded Toromont Toromont Material Handling and Manutention Toromont Separating Material Handling business from Heavy Equipment Dealership Planning for systems integration currently three platforms Increased investment in rental fleets Key to success is an efficient organization 12
Over 100 Years Of Serving Refrigeration Markets Revenue Split (2017) Product Support 41% Recreational 27% Industrial 32% WI MI VT ME NH MA RI IL VW PA VA NJ DE Strong industrial customer base Leader in recreational systems US Sales Coverage 400 Mile Sales Ring AR MS AL GA SC NC FL Note: Total of 21 CIMCO locations not reflected in map above due to overlapping markets resulting from close proximity of locations. 13
Investment Highlights Market Leading Brands And Position Product Support Provides Stability Superior Financial Track Record Continuous Focus on Operational Excellence Strong Balance Sheet Growth Opportunities In Diversified Segments 50 Year Dividend Record, 29 Of Consecutive Growth 14
CIBC Annual Eastern Institutional Investors Conference September 27, 2018