Equipment Group - Toromont Industries Ltd.

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 cycle risk, including general economic conditions in the countries in
which Toromont operates; risk of commodity price changes including precious and base metals; risk of changes in foreign exchange rates,
including the Cdn$/US$ exchange ate; risk of the termination of distribution or original equipment manufacturer agreements; risk of equipment
product acceptance and availability of supply; risk of increased competition; credit risk related to financial instruments; risk of additional costs
associated with warranties and maintenance contracts; interest rate risk on financing arrangements; risk of availability of financing; risk of
environmental regulation. 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 2010
contained in the 2010 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 forwardlooking information and statements.
Forward-looking information and statements contained herein about prospective results of operations, financial position or cash flows are
presented for the purpose of assisting Toromont's shareholders in understanding managements' current view regarding those future outcomes
and may not be appropriate for other purposes. 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
15%
21%
4%
Power
Large Contractor
Local Contractor
6%
Mining
Quarry
16%
Nunavut
18%
Equipment Sales by Segments Served
Toromont CAT
Mine Site Branches
Agnico Eagle
Goldcorp
DeBeers
Detour Gold
Goldcorp
Vale Inco
Toromont CAT
Branches
Agriculture
Other*
1
Baker Lake
1.
2.
3.
4.
5.
6.
20%
6
Voisey’s Bay
Newfoundland
& Labrador
Manitoba
Musselwhite
2
3
Victor
4
Porcupine
Detour Lake
5
Ontario
3
* Other includes equipment services, forestry, government, industrial, waste and lift categories
EQUIPMENT GROUP
Canadian Exploration Expenditures (1)
45%
44%
Ontario
Ontario
Newfoundland
& Labrador
Manitoba
Newfoundland
& Labrador
Nunavut
Manitoba
Nunavut
2005 $1.3 Billion (total Canada)
2010 $2.8 Billion (total Canada)
Source: Natural Resources Canada
Investment Has More than Doubled in
Our Territory Over Past 5 Years
4
EQUIPMENT GROUP
9
Nunavut
3
2
Large Prospect Mine Sites
1.
2.
3.
4.
5.
6.
7.
8.
9.
Lalor, HudBay Minerals
Hope Bay, Newmont
Meliadine, AEM
Hollinger, Goldcorp
Marathon PGM, Stillwater
Ring of Fire, Cliffs
Hammond Reef, Osisko
Rainy River, Resources
Mary River, Baffinland Iron
Toromont CAT
Select Branches
Newfoundland
& Labrador
Manitoba
1
6
Ontario
8
7
5
4
Management Estimates 47 New Projects and
Transformational Expansions on Visible Horizon
5
EQUIPMENT GROUP
Infrastructure Investment
($ billions)
$16.9
$14.4
$15.6
$10.6
2008/09
2009/10
2010/11
2011/12
Source: ON/MB/NL Governments, ORBA, Management estimates
Significant Levels of Investment Expected to
Continue in Toromont Territory
6
EQUIPMENT GROUP
• Windsor Essex Parkway - $1.6B
• Hwy 407 – unknown
Ontario
• Pan-Am Games investment
• Hebron - $6B plus
• Lower Churchill - $6.2B
Newfoundland
• Bipole III - $3.2B
• Keeyask Generating Station - $3B
Manitoba
• East Side Transportation
• Potential significant infrastructure
requirements to support mining and
other initiatives
Nunavut
7
EQUIPMENT GROUP
Product Support Sales ($MM)
90.0
Three Successive Quarters of Record Product Support
80.0
81.4
82.3
80.6
70.0
Toromont has:
60.0
• More significant product support
network than any competitor
50.0
• Increasing base of higher requirement
mining equipment
40.0
• Increasing opportunities with
additional product lines
30.0
Q1 Q3
2001
Q1 Q3
2002
Q1 Q3
2003
Q1 Q3
2004
Q1 Q3
2005
Q1 Q3
2006
Q1 Q3
2007
Q1 Q3
2008
Q1 Q3
2009
Q1 Q3
2010
Q1
2011
8
EQUIPMENT GROUP
Commercial
Truck
Industrial
Electric Power
Marine
Complete Vehicle
Engine Sales
to OEMs
Prime & Stand-by
Power Systems
Marine Power
Systems
Sales, Parts
& Service
Growing Position in Renewable Energy
Providing Broader Range of Offerings
9
EQUIPMENT GROUP
Trimble
Metso
MWM
Bucyrus Intl.
Machine guidance
control systems
Mobile & stationary aggregate
crushing & screening
Manufacturer of
natural gas engines
Broader mining equipment
product line
2005
2006
2007
MaK
O&K
Large bore
marine engines
Front shovels
2008
2009
Heavy Equipment
Rental
2010
2 0 11
CAT Vocational
Truck Introduction
Generating Significant New Internal Growth
10
Equipment Group




Gain market share
Focus on mining sector
Expand heavy rents, product support
Expand product offerings
(Bucyrus, Metso, MaK)
 Increase product rental range
 Widen market coverage with new locations
CIMCO




Eco Chill in industrial markets
Expand market leadership position
Capitalize on green technologies
Ammonia-based HVAC applications
Power
 Gain increasing share of increasing investment CHP
and alternative energies ( MWM, large power plants
for mining and natural gas-fueled distributed power)
11
Track Record of Superior Financial Performance
Strong Balance Sheet
Rising Momentum in Bookings & Order Backlog
Diversified by Division, Industry & Customer
Market Leading Brands & Position
Solid Growth Opportunities
12