March 2017 Forward-looking Statements Statements and information - PowerPoint PPT Presentation

March 2017

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 simil ar 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 2016 contained in the 2016 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. 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

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 49 Year Dividend Record, 28 Of Consecutive Growth 3

Safety Proper PPE Immediate Control Be Fit For Assess All for Work Incident Hazardous Duty Hazards Area/ Task Reporting Energy 4

Multiple Growth Platforms Construction Industries EQUIPMENT GROUP Resource Industries 5

Growth In Revenue GROWTH FUELED BY: ► Expanded Markets and New Branches ► Expanded Service Offerings ► Increased Population and Larger Equipment Fuels Product Support 1,500 30,000 1,250 25,000 1,000 20,000 Estimated Installed Base (Units) Revenue ($millions) 750 15,000 500 10,000 250 5,000 0 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Product Support Sales Equipment Sales Rental Estimated Installed Base 6 Revenue presented is based on trailing 12 months. Installed units based on management estimates for Toromont CAT.

Equipment Group Strong Dealer Network 7 +2,700 Members Mary River Toromont CAT Meadowbank Mine Site Branches Nunavut DEDICATED TEAM 1 1. Agnico Eagle 2. Goldcorp DELIVERS 3. DeBeers 4. Detour Gold 6 SPECIALIZED 5. Goldcorp Voisey’s 6. Vale Bay Newfoundland EQUIPMENT Manitoba 7. Baffinland & Labrador AND MUCH MORE Toromont CAT Branches 3 Musselwhite Victor 2 75 Locations Detour 4 Lake Porcupine 5 Ontario IN NEWFOUNDLAND & Remote mine sites contributed LABRADOR, ONTARIO, $1,400MM over past MANITOBA AND NUNAVUT decade >250 Brands >28,000 Items 33 Toromont CAT Branches 42 Stores Serving History of Successful Consolidation 14,500 Customers 7

Diverse Markets Served Large & Local Contractors 40% 1 Other Large 19% Contractor 24% Other Quarry & 12% Road Aggregate Construction 5% Infrastructure 15% Equipment Services 6% Local Contractor Utilities 16% 4% Industrial 6% Mining Residential 3% 24% Excavation & Earthmoving 4% DIVERSE MARKETS WITH EMPHASIS ON INFRASTRUCTURE 8 Source: Internal data Toromont Cat total sales for the three years ended Dec. 31.16

Diverse Markets Served Rental and sales mix Estimated rental market opportunity Other Paving 1% 4% Small Tool Sports 1 Sales 8% 4% Fleet Mining 6% 7% Golf Product Courses Support 5% 6% Oil & Gas Building 3% Power 38% Products 6% Landscape Rental 7% 55% Cat Compact Electrical Equipment 8% Sales 19% Construction Manufacturing 7% 16% Source: Mgmt 2016/17 estimates – Total rental opportunity Source: 2016 actual results in Toromont territories Diverse Rental & Complementary Opportunities 9 9

Substantial Infrastructure Deficit 79 % infrastructure ffailing people 35% 9 million $388 b illion * of assets in need by 2031 of attention* The Greater Toronto and Hamilton • Roads, municipal buildings, sport $141 billion in very poor and and recreational facilities and Area is one of the fastest-growing poor conditions regions in North America. public transit are the asset • $247 billion in fair physical classes most in need of attention Approximately 100,000 new condition residents per year. *Source: 2016 Canadian Infrastructure Report Card, Federation of Canadian Municipalities Continued need demands continued investment – recognized by all levels of government (Municipal, Provincial, Federal) 10

Infrastructure Commitment Ontario Infrastructure Ontario plans $137 billion ten-year spend (up $3B from plans announced in the prior year) 11 Source: 2016 Ontario Budget

Infrastructure Commitment Federal • Including pre-existing programs and commitments in the 2016 Budget and Fall Economic Statement, total committed spend add up to an unprecedented $186 billion over 12 years • To-date, specific projects have been slower to release leading to reluctance for customers to pull the trigger on equipment investment and rental commitments 12 Source: Fall Economic Statement 2016, The Government of Canada

Equipment Group Rental Market POWER 250 GENERATION 200 HEAVY RENTS R12 Revenue ($millions) 150 100 LIGHT EQUIPMENT 50 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Light Equipment Heavy Equipment Power Generation Rent with a Purchase Option Rental - Used 13

Equipment Group Rental Market Opportunity 1,400 Total market* Toromont revenue $1,240 1,200 Rental Revenues $ Millions $1,000 1,000 Significant 800 growth opportunity 600 400 $200 200 $40 186 $150 15% 15% $25 12% $11 28% 0 Battlefield Heavy Rent Power Total ($ Millions) Battlefield Heavy Rent Power Total Fleet at Original $ 314.2 $ 112.1 $ 46.4 $ 472.7 R’12 Revenues to Dec. 31/16 * Market Size based on internal management estimates SUBSTANTIAL ROOM FOR CONTINUED GROWTH 14

Mining Opportunities Resource Industries CAT 6060FS Diesel Shovel Loads 795F AC Truck CAT R2900G ► Good diversity of commodities in Toromont territories ► Gold has been a significant contributor ► Opportunities continue – albeit tight market ► Significant increase in installed base increases product support opportunity. ► Large geography in safe jurisdiction 15