STRENGTH . DIVERSITY . GROWTH . Investor Presentation October 2008 - PowerPoint PPT Presentation

STRENGTH . DIVERSITY . GROWTH . Investor Presentation October 2008

Forward-Looking Statements • Certain information in this presentation contains forward-looking statements based on management’s current expectations and assumptions regarding the business and anticipated financial results of the Fund. There is, however, no assurance forward- looking statements will materialize if known and unknown risks or uncertainties affect the Fund’s business or if management’s uncertainties affect the Fund’s business or if management’s expectations and assumptions prove to be incorrect. In such circumstances, actual results of operations could differ materially from expectations and forward-looking statements. • You can find a discussion of risks and uncertainties pertaining to the Fund and its business and other factors that could cause financial results to fluctuate in our regulatory filings on SEDAR at www.sedar.com. The Fund assumes no obligation to publicly update or revise its forward-looking statements to reflect new information, events or circumstances.

Wajax Income Fund Three Distribution Businesses Revenue* • Mobile Equipment 53% – Construction, Mining and Material Handling Equipment • Industrial Components 26% – Bearings and Power Transmission Parts, Hydraulic and Process Components Hydraulic and Process Components • Power Systems 21% – Diesel and Natural Gas Engines, Power Transmissions • 2007 Revenues: $1.192 billion • 2007 EBITDA: $88.3 million • Current monthly distributions: $0.36 ($4.32/year) * Based on 2007 consolidated revenue

Wajax Income Fund Diverse Geographic Coverage Over 100 branches with 45,000 customers

Wajax Income Fund 2007 Revenue by Region Western Eastern Canada Canada ��� ��� ��� ��� Central Canada

Wajax Income Fund 2007 Revenue by Industry Forestry Mining ��� ��� Other �� Conventional ��� ��� Oil & Gas ��� Construction ��� Oil Sands �� Government �� & Utilities ��� Metal ��� Processing Industrial/ Transportation Commercial

Mobile Equipment Mobile Equipment ���

Mobile Equipment Diverse Geographic Coverage 30 Locations

Mobile Equipment Diverse Products Largest multi-line distributor of mobile equipment in Canada

Mobile Equipment 2007 Revenue by Industry Forestry Mining Other �� ��� Conventional �� Oil & Gas �� ��� Construction ��� Oil Sands �� �� �� ��� Metal Processing Government & Utilities Transportation Industrial/ Commercial

Mobile Equipment Growth Initiatives Capitalize on strong demand for mining equipment • Hitachi hydraulic shovels • LeTourneau wheel loaders – > 100 units operating across – > 100 units operating across Canada – 50% sold last 3 years – Sales value $1-$10 million per unit – Parts/service - 2X capital cost - 5 yr CAGR 17%

Mobile Equipment Growth Opportunities • Recently secured distribution rights for Tigercat full line of forestry equipment for all of Canada, excluding British Columbia and Saskatchewan • High quality line with excellent market acceptance • Immediate parts and service opportunity

Mobile Equipment Growth Initiatives • Expand JCB construction equipment territory in Southern Ontario with Greer acquisition • Open a new 30,000 sq. ft. crane utility assembly centre in Red Deer, Alberta, and expand presence in eastern Canada • Complete expansion of the Fort McMurray branch • Expand the lift truck rental fleet and revamp marketing approach by customer application

Mobile Equipment Revenue and EBIT Revenue EBIT % 700,000,000 9.0% 8.0% 8.0% 600,000,000 7.2% 7.0% 6.7% 500,000,000 6.0% 5.6% 400,000,000 400,000,000 5.0% 5.0% 5.0% 5.0% 4.2% 4.0% 300,000,000 3.0% 200,000,000 2.0% 100,000,000 1.0% - 0.0% 2003 2004 2005 2006 2007 YTD Q2 2008 • Equipment 70% • Parts and Service 30%

Industrial Components Industrial Components �� �

Industrial Components Locations 58 Locations Serving >22,000 customers

Industrial Components Diverse Products • Bearings and power transmission parts • Hydraulic components and systems and process equipment

Industrial Components 2007 Revenue by Industry Mining Forestry ��� ��� Conventional Oil & Gas ��� ��� ��� Other ��� Metal �� Processing �� Construction �� ��� Food & Beverage Transportation Industrial/ Manufacturing

Industrial Components Growth Opportunity Acquisitions • Product market is approximately $3 billion annually • Current market share is estimated at approximately 10% Size of market + Lack of dominant competitors Opportunities for growth

Industrial Components Growth Initiatives Weir Acquisition • Acquired assets of Weir Process Equipment business September 5, 2008 for $25.4 million. • Adjusted sales and EBIT LTM June 2008 $50 million and $5 million. and $5 million. • A leading distributor of pumps, process controls and instrumentation filtration products and material handling equipment to the following industries: – Oil and gas – Power generation – Mining – Infrastructure

Industrial Components Growth Initiatives Revenue • Expand offering and market penetration of globally sourced private label products • Introduce new products leveraging 55 branch network • Target contract customers in under-represented sectors

Industrial Components Other Initiatives • Further improve margins – Low volume accounts – Private label imported products – Freight cost reductions • Improve inventory turns • New computer system implementation

Industrial Components Revenue and EBIT Revenue EBIT % 350,000,000 7.0% 6.5% 300,000,000 6.5% 6.0% 6.4% 250,000,000 5.0% 4.6% 4.6% 200,000,000 4.0% 3.0% 150,000,000 3.0% 100,000,000 2.0% 1.8% 50,000,000 1.0% - 0.0% 2003 2004 2005 2006 2007 YTD Q2 2008

Power Systems Power Systems ���

Power Systems Locations One of the largest distributors in Canada 20 Locations

Power Systems Products Diesel Engines Transmissions Generators

Power Systems 2007 Revenue by Industry Mining Other Oil Sands �� �� �� Conventional Industrial/ ��� ��� Oil & Gas Commercial ��� On-Highway Transportation

Power Systems Growth Initiatives • Further develop power generation business focussing on standby and prime power in the industrial/commercial sector

Power Systems Growth Initiatives • Expansion of GE Energy product line across Canada – Strong future bid opportunities ($200M to $300M), especially in Ontario. • Evaluate acquisition opportunities

Power Systems Growth Initiatives – GE Energy ���������������������� ����� ���������� ���������� ������������� ������������ ������������ �� �� ���������� �������

Power Systems Revenue and EBIT Revenue EBIT % 300,000,000 12.0% 250,000,000 10.0% 10.0% 9.4% 8.9% 8.9% 8.8% 8.5% 200,000,000 8.0% 150,000,000 150,000,000 6.0% 6.0% 100,000,000 4.0% 50,000,000 2.0% - 0.0% 2003 2004 2005 2006 2007 YTD Q2 2008 • Equipment 40% • Parts and Service 60%

Financial Highlights

Wajax Income Fund Financial Highlights ($Cdn millions, except unit and per unit data) (From continuing operations) Full Year 2007 2006 Revenue $1,192.3 $1,206.5 EBIT $78.8 $79.3 Basic earning per unit/share $4.34 $4.31 Distributable cash per unit – basic $4.47 $4.46 Cash distributions declared $4.36 $4.43 Units/shares outstanding 16.6 16.6 Debt-to-EBITDA 0.69x 0.77x

Wajax Income Fund Financial Highlights ($Cdn millions, except unit and per unit data) YTD Q2 2008 2007 Revenue Revenue $596.9 $596.9 $621.4 $621.4 Basic earning per unit $2.29 $2.03 Distributable cash per unit – basic $2.24 $2.12 Debt-to-EBITDA 0.96x 0.98x

Wajax Income Fund Monthly Distributions Sept-08 Aug-08 (Per Unit) $0.36* May-08 $0.35 Aug-07 $0.34 $0.33 Nov-06 $0.32 Aug-06 May-06 $0.30 May-06 Mar-06 $0.27 * $4.32 Annually $0.25 Jan-06 $0.23 Nov-05 10 increases in monthly distributions $0.21 Jun-05 since June 2005 $0.1833 * Yield of 13.5% at $32.00 (not including special distributions)

STRENGTH . DIVERSITY . GROWTH.