Toromont Industries Ltd.

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First Quarter 2021

May 4, 2021

TOROMONT ANNOUNCES RESULTS FOR THE FIRST QUARTER OF 2021 AND QUARTERLY DIVIDEND

Toromont Industries Ltd. (TSX: TIH) reported financial results for the first quarter ended March 31, 2021.

millions, except per share amounts	Three months ended March 31
	2021 2020 % change
Revenues Operating income Net earnings Basic earnings per share ("EPS")	806.2 $ 715.5 $ 13% 70.2 $ 55.2 $ 27% 48.0 $ 37.4 $ 28% 0.58 $ 0.46 $ 26%

Toromont’s first quarter results reflect our people’s unwavering commitment to meet the company’s customer needs as we continue to navigate through a complex operating environment. The Equipment Group reported strong prime product deliveries, reflecting improved activity levels in the quarter. CIMCO revenues increased with good progress on its order backlog. Product support activity, particularly in the recreational markets, continues to reflect the impact of COVID restrictions. Operational efficiencies with continued focus on expense disciplines resulted in solid bottom line growth.

Highlights:

Consolidated results

Revenues increased 13% in the quarter versus the same period last year where early COVID effects caused steep declines in the latter part of the quarter. This reflected improved activity levels in many areas and good execution from our teams. Product support revenues were 2% higher while rental revenues 11% lower compared to the similar quarter last year.
Operating income increased 27% on the higher revenues, coupled with relatively unchanged expense levels.
Net earnings increased $10.6 million or 28% in the quarter versus a year ago to $48.0 million or $0.58 EPS.
Backlogs were $911.5 million at March 31, 2021, compared to $567.0 million at March 31, 2020, reflecting strong bookings in the Equipment Group over the last two quarters.

Equipment Group

Revenues were up $69.6 million or 11% to $727.3 million for the quarter on strong equipment sales combined with product support growth. Weaker rental revenues were experienced on lower activity in most markets.

Operating income was up $14.7 million or 27% reflecting higher revenues against a relatively unchanged level of expenses.
Bookings in the first quarter of $686.1 million increased 103% reaching new highs. All sectors reported higher orders, most notably the mining and construction sector.
Backlogs of $736.0 million at the end of March 2021 were up $382.9 million or 108% from the end of March 2020 across all sectors. Approximately 80% of the backlog is expected to be delivered this year.

CIMCO

Revenues of $78.9 million increased $21.2 million or 37% compared to the first quarter last year with strong package revenues on continued progress against industrial orders booked in 2020.
Operating income of $0.4 million reflect higher package revenues, offset by lower gross margins reflective of a less favourable sales mix (higher package sales and lower product support).
Bookings were $37.9 million in the first quarter of 2021, compared to $112.2 million in the similar period last year. Several large industrial orders were received in Canada in the first quarter of 2020.
Backlogs of $175.5 million were down $38.4 million or 18%, against a very strong level last year, as progress against order backlog continued. Approximately 90% of the backlog is estimated to be realized as revenue this year, however this is subject to construction site access and schedules.

Financial Position

Toromont’s share price of $96.19 at the end of March 2021, translated to a market capitalization of $7.9 billion and a total enterprise value of $8.0 billion.
The Company maintained a very strong financial position. Leverage as represented by the net debt to total capitalization ratio was 2% at the end March 2021, compared to 3% at the end of December 2020 and 18% at the end of March 2020.
The Board of Directors increased the quarterly dividend by 12.9% or 4 cents per share, to 35 cents per common share. The next dividend is payable on July 5, 2021 to shareholders on record on June 9, 2021. Toromont has paid dividends every year since 1968 and this is the 32nd consecutive year of dividend increases.
The Company’s return on opening shareholders’ equity was 16.7% at the end of March 2021, on a trailing twelve-month basis, compared to 16.6% at the end of December 2020 and 21.2% at the end of March 2020. Trailing twelve month pre-tax return on capital employed was 21.5% at the end of March 2021, compared to 20.4% at the end of December 2020 and 22.0% at the end of March 2020.

We continue to provide essential services and solutions to our clients, while remaining diligently focused on safeguarding our employees, and protecting our business for the future. We appreciate our entire

team’s incredible effort and on-going commitment to adapt to changes in the business environment. Although we experienced improvement in market activity in the first quarter of 2021, a tone of caution still exists given the changing status of the pandemic and response. Our order backlog was healthy heading into 2021, and new order bookings in 2021 are supportive. The diversity of our geographic landscape and markets served, extensive product and service offerings, and financial strength together with our disciplined operating culture, continue to position us well to build for the future.

Management’s Discussion and Analysis

This Management’s Discussion and Analysis (“MD&A”) comments on the operations, performance and financial condition of Toromont Industries Ltd. (“Toromont” or the “Company”) as at and for the three months ended March 31, 2021, compared to the preceding year. This MD&A should be read in conjunction with the unaudited interim condensed consolidated financial statements and related notes for the three months ended March 31, 2021, the annual MD&A contained in the 2020 Annual Report and the audited annual consolidated financial statements for the year ended December 31, 2020.

The unaudited interim condensed consolidated financial statements reported herein have been prepared in accordance with International Accounting Standard (“IAS”) 34 - Interim Financial Reporting, and are reported in Canadian dollars. The information in this MD&A is current to May 4, 2021.

Additional information is contained in the Company’s filings with Canadian securities regulators, including the Company’s 2020 Annual Report and the 2021 Annual Information Form. These filings are available on SEDAR at www.sedar.com and on the Company’s website at www.toromont.com.

Advisory

Information in this MD&A that is not a historical fact is "forward-looking information". Words such as "plans", "intends", "outlook", "expects", "anticipates", "estimates", "believes", "likely", "should", "could", "will", "may" and similar expressions are intended to identify statements containing forward-looking information. Forward-looking information in this MD&A reflects current estimates, beliefs, and assumptions, which are based on Toromont’s perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. Toromont’s estimates, beliefs and assumptions are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change. Toromont can give no assurance that such estimates, beliefs and assumptions will prove to be correct. This MD&A also contains forward-looking statements about the recently acquired businesses.

Numerous risks and uncertainties could 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: 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; potential risks and uncertainties relating to the novel COVID-19 global pandemic, including an economic downturn, reduction or disruption in supply or demand for our products and services, or adverse impacts on our workforce, capital resources, or share trading price or liquidity; increased regulation of or restrictions placed on our businesses as a result of COVID-19; 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; information technology failures, including data or cyber security breaches; 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; 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 and acquired in excess of those currently contemplated; and increased insurance premiums. Readers are cautioned that the foregoing list of factors is not exhaustive.

Any of the above mentioned risks and uncertainties could cause or contribute to actual results that are materially different from those expressed or implied in the forward-looking information and statements included in this MD&A. For a further description of certain risks and uncertainties and other factors that could cause or contribute to actual results that are materially different, see the risks and uncertainties set out in the "Risks and Risk Management" and "Outlook" sections of Toromont’s most recent annual Management Discussion and Analysis, as filed with Canadian securities regulators at www.sedar.com or at our website www.toromont.com. 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 statements containing forward-looking information.

Readers are cautioned not to place undue reliance on statements containing forward-looking information, which reflect Toromont’s expectations only as of the date of this MD&A, and not to use such information for anything other than their intended purpose. Toromont disclaims any obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

CONSOLIDATED OPERATING RESULTS

CONSOLIDATED OPERATING RESULTS
	Three months ended March 31
($ thousands, except per share amounts)	2021	2020 $change % change
REVENUES Cost ofgoods sold	806,238 $ 618,860	715,459 $ 90,779 $ 13% 544,601 74,259 14%
Gross profit(1) Sellingand administrative expenses	187,378 117,162	170,858 16,520 10% 115,617 1,545 1%
OPERATING INCOME (1) Interest expense Interest and investment income	70,216 7,177 (2,004)	55,241 14,975 27% 6,931 246 4% (2,726) 722 (26%)
Income before income taxes Income taxes	65,043 17,087	51,036 14,007 27% 13,640 3,447 25%
NET EARNINGS	47,956	37,396 10,560 28%
BASIC EARNINGS PER SHARE	0.58 $	0.46 $ 0.12 $ 26%
KEY RATIOS: Gross profit margin(1) Selling and administrative expenses as a % of revenues Operating income margin(1) Income taxes as a % of income before income taxes	23.2% 14.5% 8.7% 26.3%	23.9% 16.2% 7.7% 26.7%

(1) Described in the sections titled "Additional GAAP Measures and Non-GAAP Measures".

The Company reported good results in the first quarter of 2021. While we have seen higher industry activity levels, we still operate with caution given the rapidly changing situation driven by COVID-19 variants.

Revenues increased $90.8 million or 13% for the quarter. Equipment Group revenues increased 11% on improved equipment deliveries. CIMCO revenues increased 37% as industrial segment construction projects progressed.

Gross profit margin decreased 70 basis points (“bps”) to 23.2% versus the first quarter last year. Equipment Group margins decreased slightly on a less favourable sales mix (lower product support to total revenues), partially offset by improved rental fleet margins on continued fleet adjustments (selective dispositions and additions). At CIMCO, margins were also lower on a less favourable sales mix of product support revenues to total revenues, as well as lower margins on package sales.

Selling and administrative expenses in the first quarter of 2021 increased $1.5 million or 1% versus the similar period last year. The mark-to-market adjustment on deferred share units was $5.3 million higher than the first quarter of 2020, with an expense of $1.4 million in 2021 on the higher share price, compared to a recovery of $3.9 million in the first quarter of 2020 on a lower share price. All other compensation decreased $1.1 million reflecting the lower employment levels, partially offset by regular salary increases and profit sharing accruals on the higher income in the current period. There were no benefits recorded under the Canada Emergency Wage Subsidy (“CEWS”) program in either period. Other selling and administrative expenses were down $2.9 million, reflecting continued focus on containing costs as well as general reductions due to restrictions stemming from such activities as travel. Bad debt expense increased $1.0 million on aging of receivables. Selling and administrative expenses were 14.5% of revenues, compared to 16.2% in the first quarter of last year, reflecting higher revenues in the current period and a full quarter of expense containment.

Operating income increased $15.0 million or 27% in the quarter and was 100 bps higher as a percentage of revenues (8.7% versus 7.7% last year), reflecting higher revenues and lower relative expense levels.

Interest expense increased $0.2 million on costs related to the additional credit facility entered into in April 2020.

Interest income decreased $0.7 million in the quarter on lower interest rates earned on cash balances.

The effective income tax rate for the quarter was 26.3% compared to 26.7% in the first quarter last year, reflecting lower rates on capital gains and other items in the current year.

Net earnings for the quarter were up $10.6 million or 28% to $48.0 million with basic earnings per share (“EPS”) increasing 26% to $0.58.

Comprehensive income in the quarter was $82.2 million (2020 – $68.0 million). Other comprehensive income included an actuarial gain on post-employment benefit plans of $34.2 million after-tax (2020 – actuarial gain of $17.8 million). These gains reflect changes in the weighted average discount rates used in the valuation, which are reflective of underlying financial markets, as well as changes in the fair value of pension plan assets. Other comprehensive income also included a favorable net change in the fair value of cash flow hedges of $0.1 million after-tax (2020 – favourable net change of $11.9 million). These changes reflect mark-to-market differences in the value of foreign exchange derivative contracts designated as cash flow hedges and are largely a function of the underlying USD/CAD exchange rates at period end compared to contract date.

BUSINESS SEGMENT OPERATING RESULTS

The accounting policies of the segments are the same as those of the consolidated entity. Management evaluates overall business segment performance based on revenue growth, operating income relative to revenues and return on capital employed. Corporate expenses are allocated based on each segment’s revenue. Interest expense and interest and investment income are not allocated.

Equipment Group

Equipment Group
	Three months ended March 31
($ thousands)	2021	2020 $change % change
Equipment sales and rentals New Used Rentals	250,327 $ 72,768 72,298	186,773 $ 63,554 $ 34% 64,962 7,806 12% 80,978 (8,680) (11%)
Total equipment sales and rentals Product support Powergeneration	395,393 329,224 2,766	332,713 62,680 19% 322,351 6,873 2% 2,712 54 2%
Total revenues	727,383 $	657,776 $ 69,607 $ 11%
Operating income	69,813 $	55,076 $ 14,737 $ 27%
KEY RATIOS: Product support revenues as a % of total revenues Operating income margin Grouptotal revenues as a % of consolidated revenues	45.3% 9.6% 90.2%	49.0% 8.4% 91.9%

The Equipment group delivered good results for the first quarter of 2021, on higher equipment deliveries and continued expense discipline. Historically results for the first quarter in the Equipment Group have been lower than other quarters of the year due to seasonality, however this pattern may not continue due to variations in customer’s purchasing patterns stemming from the pandemic.

Total equipment sales (new and used) increased $71.4 million or 28%. Sales increased across all markets and regions: construction markets (+32%); power systems (+20%); material handling (+10%); agricultural (+76%); and mining (+3%).

Rental revenues were down $8.7 million or 11% year-over-year. Light equipment rentals were down 7%, with lower activity in most regions, partially offset by improved activity in Quebec. Heavy equipment rentals were up 8% across all regions. Power rentals were 13% lower and material handling rentals were down 5%. Rental revenues from equipment on rent with a purchase option (“RPO”) were down 48% on a smaller average fleet over the period. As at March 31, 2021 the RPO fleet was $38.6 million versus $62.1 million at this time last year, reflecting lower demand.

Product support revenues grew $6.9 million or 2% on higher parts (up 4%) and lower service revenues (down 3%). Activity within construction markets was up 6% with increases in most regions, while material handling and agricultural were also up on a smaller base. Mining activity decreased 2% and power systems decreased 7%, reflecting timing of larger rebuild projects.

Gross profit margins decreased 10 bps in the quarter versus last year. Equipment and product support margins were largely unchanged. Rental margins were 60 bps higher reflecting benefits from fleet adjustments (selective dispositions and additions) over the last year. An unfavourable sales mix with a lower proportion of product support revenues to total revenues decreased margin by 100 bps year-over-year. Product support revenues were 45.3% as a percentage of total revenues compared to 49.0% in the first quarter last year, reflecting stronger comparative equipment sales in the current year.

Selling and administrative expenses in the first quarter of 2021, increased $1.5 million or 1%. The increase is mainly attributable to the mark-to-market adjustment on deferred share units due to the higher share price. This was largely offset by continued cost containment disciplines in discretionary expenditures like travel. Allowance for doubtful accounts increased $1.1 million on aging of accounts receivable. Selling and administrative expenses were 130 basis points lower as a percentage of revenues (14.4% versus 15.7% last year).

Operating income increased $14.7 million (27%) to $69.8 million, mainly reflecting the higher revenues.

Bookings and Backlogs

($ millions)	2021	2020 $ change %change	2020 $ change %change
Bookings - three months ended March 31 Backlogs-as atMarch31	686.1 $ 736.0 $	337.7 $ 353.1 $	348.4 $ 103% 382.9 $ 108%

New bookings were stronger in the first quarter, up $348.4 million or 103%. All sectors reported higher orders: construction (+33%), power systems (+58%), material handling (+27%), and agriculture (+112%). Mining bookings, which can be larger and the timing variable, were $242 million in the quarter, reflecting several large orders.

Backlogs of $736.0 million were up $382.9 million or 108% across all sectors. At March 31, 2021, the total backlog related to construction (34%), power systems (17%), mining (39%), agriculture (6%) and

material handling (4%). Approximately 80% of which are currently expected to be delivered this year but subject to timing differences depending on vendor supply and customer delivery schedules.

Bookings and backlogs can vary significantly from period to period on large project activities, especially in mining and power systems, the timing of orders and deliveries and the availability of equipment from either inventory or suppliers.

CIMCO

CIMCO
	Three months ended March 31
($ thousands)	2021	2020 $change % change
Package sales Product support	46,389 $ 32,466	22,609 $ 23,780 $ 105% 35,074 (2,608) (7%)
Total revenues	78,855 $	57,683 $ 21,172 $ 37%
Operating income	403 $	165 $ 238 $ 144%
KEY RATIOS: Product support revenues as a % of total revenues Operating income margin Grouptotal revenues as a % of consolidated revenues	41.2% 0.5% 9.8%	60.8% 0.3% 8.1%

The first quarter has historically been seasonally the slowest period for CIMCO due to winter shutdowns that negatively affect construction schedules. This pattern could be altered due to impacts of government shutdowns and may not continue due to the continuing and changing response to the pandemic. Against a smaller base, this can create larger variances. Backlogs entering 2021 were strong ($184 million versus $122 million in the prior year).

Package revenues were up $23.8 million or 105% with an increase in both the recreational (up 37%) and industrial (up 148%) markets. Package revenues reflect the progress of project construction applying the percentage-of-completion method for revenue recognition. This introduces a degree of variability as the timing of projects and construction schedules are largely under the control of third parties (contractors and end-customers). In Canada, package revenues were up $19.4 million or 98% reflecting higher industrial revenues. In the US, package revenues increased $4.4 million or 159% on a smaller activity base, with higher revenues in both the industrial and recreational markets.

Product support revenues decreased $2.6 million or 7% versus the first quarter last year on lower activity levels in both Canada (down 7%) and the US (down 9%). Revenues in the first quarter of last year were largely unaffected by the pandemic given the timing of the pandemic late in the quarter. Activity levels in 2021 are lower reflecting continued site restrictions in most areas and reduced demand particularly in recreational centres, which have been closed or severely restricted by the pandemic. The increased technician base and essential services designation continues to support activity levels.

Gross profit margins decreased 560 bps in the quarter versus last year. The decrease in gross profit margins was due to lower package margins (down 230 bps) and product support margins (down 40 bps) combined with an unfavorable sales mix of product support revenues to total revenues (down 290 bps). Margins mainly reflect activity levels, nature of projects in process and construction schedules, which can be somewhat variable.

Selling and administrative expenses were largely unchanged from the similar period last year and expenditure control measures on discretionary spend remained in effect. The allowance for doubtful accounts was lower on good collections, the resolution of long outstanding items, and lower travel costs, largely offset increased compensation expenses. As a percentage of revenues, selling and administrative expenses were lower (16.1% versus 21.9% last year) reflecting the higher revenue.

Operating income was $0.4 million in the first quarter, up from $0.2 million in the comparable period last year, reflecting higher package revenues, partially offset by lower gross margins.

Bookings and Backlogs

($ millions)	2021	2020 $ change %change	2020 $ change %change
Bookings - three months ended March 31 Backlogs-as atMarch31	37.9 $ 175.5 $	112.2 $ 213.9 $	(74.3) $ (66%) (38.4) $ (18%)

Bookings were down $74.3 million or 66% to $37.9 million. Several large industrial orders were received in Canada in the first quarter of 2020, resulting in a decrease in bookings compared to last year. Recreational bookings were 28% lower on reduced market activity. Bookings in Canada were down 69% while bookings in the US were down 20%.

Backlogs of $175.5 million declined 18% versus March last year on progress of construction. Approximately 90% of the backlog is expected to be realized as revenue this year, however this is subject to construction schedules and potential changes stemming from the COVID-19 pandemic.

CONSOLIDATED FINANCIAL CONDITION

The Company maintained a strong financial position. At March 31, 2021, the ratio of net debt to total capitalization was 2%, compared to 3% at December 31, 2020, and 18% at March 31, 2020.

Non-cash Working Capital

The Company’s investment in non-cash working capital was $518.5 million at March 31, 2021. The major components, along with the changes from March 31 and December 31, 2020, are identified in the following table.

($ thousands)	March 31	March 31	December 31 Change Change
	2021	2020	$ % 2020 $ %
Accounts receivable Inventories Other current assets Accounts payable and accrued liabilities Provisions Income taxes receivable (payable) Derivative financial instruments Dividends payable Deferred revenues and contract liabilities	482,844 $ 760,087 13,533 (512,417) (25,034) 12,783 (6,037) (25,587) (181,671)	454,148 $ 28,696 $ 6% 541,580 $ (58,736) $ (11%) 976,401 (216,314) (22%) 728,404 31,683 4% 16,547 (3,014) (18%) 10,897 2,636 24% (726,082) 213,665 (29%) (558,443) 46,026 (8%) (24,287) (747) 3% (26,645) 1,611 (6%) 16,651 (3,868) (23%) (23,281) 36,064 (155%) 36,916 (42,953) (116%) (11,043) 5,006 (45%) (25,435) (152) 1% (25,560) (27) 0% (153,483) (28,188) 18% (149,109) (32,562) 22%
Total non-cash working capital	518,501 $	571,376 $ (52,875) $ (9%) 486,800 $ 31,701 $ 7%

Accounts receivable increased 6% compared to March 31, 2020, mainly reflecting the 13% increase in revenues in the quarter, offset by good collection activity. Days sales outstanding (“DSOs”) decreased

8 days to 42 days on an improvement in both the Equipment Group (down 6 days) and CIMCO (down 31 days).

In comparison to December 31, 2020, accounts receivable decreased 11% on lower trailing revenues (Q1 2021 revenues were 19% lower than Q4 2020 revenues), partially offset by slower collections. DSOs were 41 days at December 31, 2020.

Inventories at March 31, 2021, were 22% lower compared to March 31, 2020:

Equipment Group inventories were down $228.0 million or 24%, reflecting lower levels of equipment (down $186.7 million or 30%), service work-in-process (down $10.7 million or 14%), and parts (down $30.6 million or 12%). Planned equipment and parts inventory reductions continued throughout last year in light of market activity levels. The lower service work-in-process levels reflects reduced hours worked through the latter part of the quarter as activity was reduced in the field and in the shops.
CIMCO inventories were up $11.7 million or 46%, mainly on higher work-in-process levels (up 51%), reflecting orders in process and timing of project construction schedules.

Inventories at March 31, 2021 were 4% higher compared to December 31, 2020, with increases in both Groups:

Equipment Group inventories were 4% higher with increases in equipment (up 7%) and work-in-progress (up 23%), offset by a slight decrease in parts inventories (down 4%). Inventory levels are typically lowest at the end of a fiscal year due to seasonality, with inventories building during the year in advance of the typically busy selling period.
CIMCO inventories were up 5% on higher work-in-process (up 6%) reflecting order backlogs.

Other current assets are comprised mainly of prepaid expenses, and vary from period to period based on timing of receipt of invoice and payment.

Accounts payable and accrued liabilities at March 31, 2021, were 29% lower than at March 31, 2020, principally due to the timing of purchases and payments for inventory. Accounts payable have largely reverted to normal levels as certain transitional terms provided in conjunction with the 2017 acquisition ended mid-year 2020. This was partially offset by the higher DSU liability on the higher relative closing share price.

In comparison to December 31, 2020, accounts payable and accrued liabilities were down 8%, mainly reflecting the timing of purchase and payment for inventory and other supplies and the payment of annual performance incentive bonuses. The extended credit terms from suppliers have largely unwound.

Income taxes receivable/(payable) reflects the difference between tax installments and current tax expense.

Derivative financial instruments represent the fair value of foreign exchange contracts. Fluctuations in the value of the Canadian dollar (stronger) led to a cumulative net loss of $6.0 million as at March 31, 2021. This is not expected to affect net earnings as the unrealized losses offset future gains on the related hedged items, either current accounts payable or future transactions.

Dividends payable remain relatively unchanged compared to March 31 and December 31, 2020, reflective of the maintained dividend rate of $0.31 per share. The slight increase in the current period reflects a higher number of shares outstanding.

Deferred revenues and contract liabilities represent billings to customers in excess of revenue recognized.

In the Equipment Group, these balances arise mainly due to progress billings from the sale of power and energy systems and long-term product support maintenance contracts, as well as on sales of equipment with residual value guarantees and customer deposits for machinery to be delivered in the future. At March 31, 2021, these were up 12.7% versus March 31, 2020 and up 29.5% versus December 31, 2020, largely related to progress billings and customer deposits for deliveries later in the year.
At CIMCO, these balances arise on progress billings from the sale of refrigeration packages. As at March 31, 2021, these were up 37.6% versus March 31, 2020 and up 4.7% versus December 31, 2020, reflecting the higher activity levels seen in Canada and the US, and timing of billings compared to customer’s construction schedules.

Legal and Other Contingencies

Due to the size, complexity and nature of the Company’s operations, various legal matters are pending. Exposure to these claims is mitigated through levels of insurance coverage considered appropriate by management and by active management of these matters. In the opinion of management, none of these matters will have a material effect on the Company’s consolidated financial position or results of operations.

Outstanding Share Data

As at the date of this MD&A, the Company had 82,542,168 common shares and 2,174,128 share options outstanding.

Dividends

The Company declared and paid the following dividends to common shareholders during the last eight quarters.

Record Date	Payment Date	Dividend Amount per Share	Dividends Paid in Total ($ millions)
June 7,2019	July3,2019	$0.27	$22.0
September 6,2019	October 2,2019	$0.27	$22.0
December 9,2019	January3,2020	$0.27	$22.0
March 9,2020	April 2,2020	$0.31	$25.4
June 9,2020	July3,2020	$0.31	$25.4
September 8,2020	October 2,2020	$0.31	$25.5
December 9,2020	January5,2021	$0.31	$25.6
March 9,2021	April 1,2021	$0.31	$25.6

Subsequent to quarter-end, the Board of Directors increased the quarterly dividend by 12.9% or 4 cents per share, to 35 cents per common share. The next dividend is payable on July 5, 2021 to shareholders on record on June 9, 2021. Toromont has paid dividends every year since 1968 and this is the 32nd consecutive year of dividend increases.

LIQUIDITY AND CAPITAL RESOURCES

Sources of Liquidity

Toromont’s liquidity requirements can be met through a variety of sources, including cash generated from operations, long and short-term borrowings and the issuance of common shares. Borrowings are obtained through a variety of senior debentures, notes payable and committed credit facilities.

Toromont’s debt portfolio is unsecured, unsubordinated and ranks pari passu.

No amounts were drawn on these revolving credit facilities as at March 31, 2021 and as at December 31, 2020. As at March 31, 2020, $100.0 million was drawn down on the $500.0 million credit facility and was repaid in September 2020.

Standby letters of credit utilized $30.0 million of the facility as at March 31, 2020, $30.8 million as at December 31, 2019 and $34.0 million as at March 31, 2020.

The Company expects that continued cash flows from operations in 2021, together with cash on hand and currently available credit facilities will be more than sufficient to fund requirements for investments in working capital and capital assets. The Company also has a certain degree of flexibility in its operating and investing plans to mitigate fluctuations.

Principal Components of Cash Flow

Cash from operating, investing and financing activities, as reflected in the Consolidated Statements of Cash Flows, are summarized in the following table:

	Three months ended March 31	Three months ended March 31
($ thousands)	2021	2020
Cash, beginning of period Cash, provided by (used in): Operating activities Operations Change in non-cash working capital and other Net rental fleet additions	591,128 $ 86,344 (29,397) (6,064)	365,589 $ 81,896 (98,551) (24,230)
Investing activities	50,883 (2,856)	(40,885) (9,297)
Financing activities	(25,175)	72,627
Effect of foreign exchange on cash balances	(38)	148
Increase in cash in theperiod	22,814	22,593
Cash, end ofperiod	613,942 $	388,182 $

Cash Flows from Operating Activities

Operating activities provided cash in the first quarter of 2021 compared to using cash in the comparable period last year.

Cash generated from operations increased 5% from the similar quarter last year on higher net earnings.

Non-cash working capital used cash in the first quarter of 2021. Increased inventory levels and timing of payments of taxes and other payable more than offset collections of accounts receivables and customer deposits.

Non-cash working capital used less cash in the first quarter of 2021, compared to the first quarter of 2020. Relatively higher inventory levels of 2020 have been reduced due to recent market activity.

Net rental fleet additions (purchases less proceeds of dispositions) were lower in the first quarter of 2021 compared to the similar period last year. The Company has reduced investment in both the heavy and light equipment rental fleet across Eastern Canada in light of recent market conditions.

The components and changes in non-cash working capital are discussed in more detail in this MD&A under the heading “Consolidated Financial Condition”.

Cash Flows from Investing Activities

Investments in property, plant and equipment totalled $4.6 million and related largely to normal replacement of service and delivery vehicles ($3.9 million). Capital expenditures in 2020 included an investment in the new fabrication and head office facility for CIMCO.

Property dispositions provided cash in both quarters. Disposition proceeds in the first quarter of 2021 were $1.6 million (2020 - $9.4 million), resulting in a capital gain of $1.2 million (2020 - $4.1 million), or $1.0 million after-tax (2020 - $3.5 million).

Cash Flows from Financing Activities

During the first quarter of 2021, the Company used $25.2 million in cash in financing activities, major uses and sources of cash during the quarter included:

Dividends paid to common shareholders of $25.6 million or $0.31 per share;
Cash received on exercise of share options of $2.9 million; and
Lease liability payments of $2.6 million.

In the first quarter of 2020, financing activities provided $72.6 million in cash, major uses and sources of cash during this period included:

Term credit facility drawings of $100.0 million, taken in an abundance of caution at the onset of the pandemic;
Dividends paid to common shareholders of $22.1 million or $0.27 per share;
Cash received on exercise of share options of $1.5 million;
Purchase of shares under the NCIB program of $4.0 million; and
Lease liability payments of $2.7 million.

OUTLOOK

Toromont’s businesses continue to be classified as essential in all circumstances requiring such a designation to date and this supports our operations.

All provinces and territories have begun mass vaccination programs to inoculate Canadians against COVlD-19, however the phased-in roll-outs remain fluid. Currently the government intends that all Canadians will be immunized by the end of September 2021, however this is dependent on approved vaccine suppliers continuing to meet quarterly delivery targets.

The uncertainty created by COVID-19 variants and the resumption of shutdowns could continue to adversely impact the Company for a prolonged period. Emergency measures are variable and evolving based on local conditions. The duration and impact of the COVID-19 pandemic is uncertain and it is not possible to estimate the length and severity of these developments nor the impact on the financial results and condition of the Company in future periods.

The Equipment Group’s parts and service business provides stability along with a large and diversified installed base of equipment, so long as it is working in the field. Prior to the pandemic, the long-term outlook for infrastructure projects and other construction activity was positive across most territories. Mining customers and jurisdictions they operate in continue to evaluate appropriate activity levels on a daily/weekly basis. Longer term, mine expansion will remain dependent on global economic and financial conditions.

We will protect and support our people to the extent possible. In particular, our technical workforce provide one of our most valuable service offerings for our customers. Workforce planning initiatives continue to be reviewed and monitored in light of current and expected activity levels.

Investment in broader product lines, rental equipment, and the development of product support technologies supporting remote diagnostics and telematics represent a strategic platform aligned to longer-term growth once economic, financial and social environments return to a more normalized state.

CIMCO’s installed base and product support levels should support current and future operations and growth trends. CIMCO has a wide product offering using natural refrigerants including innovative CO2 solutions, which remains a differentiator in recreational markets. In industrial markets, CIMCO’s proven track record and strong geographical coverage provides continued growth opportunities. Recreational markets have been slow due to pandemic restrictions, however longer term, opportunity exists. Good current backlogs are supportive for future activity, although carry somewhat lower gross margins due to the nature of projects in process.

The diversity of the markets served, expanding product offering and services, strong financial position and disciplined operating culture position the Company well for continued growth in the long term.

QUARTERLY RESULTS

The following table summarizes unaudited quarterly consolidated financial data for the eight most recently completed quarters. This quarterly information is unaudited but has been prepared on the same basis as the 2020 annual audited consolidated financial statements.

($ thousands, except per share amounts) Q2 2020 Q3 2020 Q4 2020	Q1 2021
REVENUES Equipment Group $ 776,703 $ 834,716 $ 896,904 CIMCO 72,894 86,940 95,281	$ 727,383 78,855
Total revenues $ 849,597 $ 921,656 $ 992,185	$ 806,238
NET EARNINGS $51,210$77,359$88,950	$ 47,956
PER SHARE INFORMATION: Basic earnings per share 0.62 $ 0.94 $ 1.08 $ Diluted earnings per share 0.62 $ 0.94 $ 1.07 $ Dividends paid per share $ 0.31 $ 0.31 $ 0.31 Weighted average common shares outstanding- basic(in thousands) 82,024 82,195 82,373	0.58 $ 0.58 $ $ 0.31 82,499

($ thousands, except per share amounts) Q2 2019 Q3 2019 Q4 2019	Q1 2020
REVENUES Equipment Group $ 895,457 $ 881,487 $ 933,131 CIMCO 82,863 93,734 92,059	$ 657,776 57,683
Total revenues $978,320$975,221$1,025,190	$715,459
NET EARNINGS $77,398$79,688$90,454	$37,396
PER SHARE INFORMATION: Basic earnings per share 0.95 $ 0.98 $ 1.10 $ Diluted earnings per share 0.94 $ 0.97 $ 1.10 $ Dividends paid per share $ 0.27 $ 0.27 $ 0.27 Weighted average common shares outstanding- basic(in thousands) 81,510 81,622 81,897	0.46 $ 0.45 $ $ 0.27 82,015

Interim period revenues and earnings historically reflect variability from quarter to quarter due to seasonality. The pandemic has affected seasonal trends and may result in variations to historically experienced trends.

The Equipment Group has historically had a distinct seasonal trend in activity levels. Lower revenues are recorded during the first quarter due to winter shutdowns in the construction industry. The fourth quarter had typically been the strongest due in part to the timing of customers’ capital investment decisions, delivery of equipment from suppliers for customer-specific orders and conversions of equipment on rent with a purchase option. This pattern is impacted by the timing of significant sales to mining and other customers, resulting from the timing of mine site development and access, and construction project schedules.

CIMCO has also had a distinct seasonal trend in results historically, due to timing of construction activity. Lower revenues are recorded during the first quarter on slower construction schedules due to winter weather. Revenues increase in subsequent quarters as construction schedules ramp up. This trend can be, and has been, impacted somewhat by significant governmental funding initiatives and significant industrial projects.

Historically, inventories have increased through the year to meet the expected demand for higher

deliveries in the third and fourth quarters of the fiscal year. This seasonal sales trend also leads accounts receivable to be at their highest level at year-end.

In 2020, these patterns were impacted by the governmental and market response and reaction to COVID-19, with the second quarter experiencing the most significant slowdown in market activity. The recent surge in COVID-19 variants and further governmental measures imposed to combat the spread of the virus may further alter the typical seasonal trend.

RISKS AND RISK MANAGEMENT

The significant risks and uncertainties affecting the Company and its business are discussed in the Company’s MD&A for the year ended December 31, 2020 under “Risks and Risk Management”. The following is an update to the changes in the risks or uncertainties facing the Company since that date.

- Pandemic Risk (Coronavirus COVID 19)

As COVID-19 is an evolving risk, the duration and impact of the COVID-19 pandemic is unknown at this time, as is the efficacy of the government and central bank interventions. Any estimate of the length and severity of these developments is therefore subject to significant uncertainty, and accordingly estimates of the extent to which the COVID-19 pandemic may, directly or indirectly, materially and adversely affect the Company’s operations, financial results and condition in future periods are also subject to significant uncertainty.

Many provinces and territories had begun to ease restrictions subsequent to late February 2021, but the growing emergence of COVID-19 variants of concern that are more transmissible and carry increased health risks has led to many communities reintroducing emergency measures to counter any resurgence of COVID-19 cases. The uncertainty created by variants of concern and the resumption of shutdowns could continue to adversely impact the Company for a prolonged period. There can be no certainty that inoculations will reduce the impact of the COVID-19 pandemic on the Company's business in the short to medium term.

The Company continues to focus on ensuring the continued safety of our employees, while continuing to serve our customers’ needs as an essential service, and protecting the business and organization for the long-term. A Critical Incident Executive Response Team remains in effect and focuses on developing plans, assessing developments and responding appropriately. The Company is updating employees on a frequent basis to provide information on the situation and on necessary precautions to take. The Company continues to have an open dialogue with public safety and government officials at all levels, as well as key suppliers, partners, and customers.

SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES

Accounting Policies

The significant accounting policies used in the preparation of the accompanying unaudited interim condensed consolidated financial statements are consistent with those used in the Company’s 2020 audited annual consolidated financial statements, and described in note 1 therein. Several amendments, apply for the first time in 2021, but do not have an impact on the unaudited interim condensed consolidated financial statements of the Company for the three-month period ending March 31, 2021.

Estimates

The preparation of financial statements in conformity with IFRS requires estimates and assumptions that affect the results of operations and financial position. By their nature, these judgments are subject to an inherent degree of uncertainty and are based upon historical experience, trends in the industry and information available from outside sources. Management reviews its estimates on an ongoing basis. Different accounting policies, or changes to estimates or assumptions could potentially have a material impact, positive or negative, on Toromont’s financial position and results of operations. There have been no material changes to the critical accounting estimates as described in note 2 to the Company’s 2020 audited annual consolidated financial statements, contained in the Company’s 2020 Annual Report.

CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

Management, under the supervision of the President and Chief Executive Officer (“CEO”) and Executive Vice President and Chief Financial Officer (“CFO”), is responsible for establishing and maintaining disclosure controls and procedures, as defined in National Instrument 52-109 – Certification of Disclosure in Issuers’ Annual and Interim Filings , and have designed such disclosure controls and procedures, or have caused it to be designed under their supervision, to provide reasonable assurance that material information with respect to Toromont is made known to them.

The CEO and the CFO, together with other members of management, have evaluated the effectiveness of the Company’s disclosure controls and procedures. Based on that evaluation, the CEO and CFO concluded that the Company’s disclosure controls and procedures as designed were effective as at March 31, 2021.

Internal Control over Financial Reporting

Management, under the supervision of the CEO and CFO, is responsible for establishing and maintaining adequate internal control over financial reporting, as defined by National Instrument 52-109 – Certification of Disclosure in Issuers’ Annual and Interim Filings, and have designed such internal control over financial reporting, or caused it to be designed under their supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the consolidated financial statements in accordance with IFRS.

There have been no changes in the design of the Company’s internal control over financial reporting during the three months ended March 31, 2021, that would materially affect, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Due to its inherent limitations, internal control over financial reporting may not prevent or detect misstatements on a timely basis. Also, a projection of the evaluation of the effectiveness of internal control over financial reporting to future periods is subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to the financial statement preparation and presentation. Internal controls over financial reporting may not prevent all errors and fraud. A control system, no matter how well conceived or operated, can only provide reasonable, not absolute, assurance that the objectives of the control system are met.

ADDITIONAL GAAP MEASURES

IFRS mandates certain minimum line items for financial statements and also requires presentation of additional line items, headings and subtotals when such presentation is relevant to an understanding of the Company’s financial position or performance. IFRS also requires the notes to the financial statements to provide information that is not presented elsewhere in the financial statements, but is relevant to understanding them. Such measures outside of the minimum mandated line items are considered additional GAAP measures. The Company’s consolidated financial statements and notes thereto include certain additional GAAP measures where management considers such information to be useful to the understanding of the Company’s results.

Gross Profit

Gross Profit is defined as total revenues less cost of goods sold.

Operating Income

Operating income is defined as net earnings before interest expense, interest and investment income and income taxes and is used by management to assess and evaluate the financial performance of its operating segments. Financing and related interest charges cannot be attributed to business segments on a meaningful basis that is comparable to other companies. Business segments do not correspond to income tax jurisdictions, and it is believed that the allocation of income taxes distorts the historical comparability of the performance of the business segments.

	Three months ended March 31	Three months ended March 31
($ thousands)	2021	2020
Net earnings _plus:_Interest expense _less:_Interest and investment income _plus:_Income taxes	47,956 $ 7,177 (2,004) 17,087	37,396 $ 6,931 (2,726) 13,640
Operating income	70,216 $	55,241 $
Total Revenues	806,238	715,459
Operating income margin	8.7%	7.7%

Net Debt to Total Capitalization/Equity

Net debt to total capitalization/equity are calculated as net debt divided by total capitalization and shareholders’ equity, respectively, as defined below, and are used by management as measures of the Company’s financial leverage.

Net debt is calculated as long-term debt plus current portion of long-term debt less cash. Total capitalization is calculated as shareholders’ equity plus net debt.

The calculations are as follows:

($ thousands)	March 31 2021	December 31 March 31 2020 2020
Long-term debt _less:_Cash	646,616 $ 613,942	646,299 $ 745,703 $ 591,128 388,182
Net debt Shareholders' equity	32,674 1,759,631	55,171 357,521 1,698,652 1,575,306
Total capitalization	1,792,305 $	1,753,823 $ 1,932,827 $

Net debt to total capitalization	2%	3% 18%
Net debt to equity	0.02:1	0.03:1 0.23:1

NON-GAAP MEASURES

Management believes that providing certain non-GAAP measures provides users of the Company’s consolidated financial statements with important information regarding the operational performance and related trends of the Company's business. By considering these measures in combination with the comparable IFRS measures set out below, management believes that users are provided a better overall understanding of the Company's business and its financial performance during the relevant period than if they simply considered the IFRS measures alone.

The non-GAAP measures used by management do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. Accordingly, these measures should not be considered as a substitute or alternative for net income or cash flow, in each case as determined in accordance with IFRS.

Working Capital

Working capital is defined as total current assets less total current liabilities. Management views working capital as a measure for assessing overall liquidity.

($ thousands)	March 31 2021	December 31 March 31 2020 2020
Total current assets _less:_Totalcurrentliabilities	1,883,189 $ 750,746	1,872,144 $ 1,888,845 $ 794,216 929,287
Working capital	1,132,443 $	1,077,928 $ 959,558 $

Non-Cash Working Capital

Non-cash working capital is defined as total current assets (excluding cash) less total current liabilities (excluding current portion of long-term debt).

($ thousands)	March 31 2021	December 31 March 31 2020 2020
Total current assets _less:_Cash	1,883,189 $ 613,942	1,872,144 $ 1,888,845 $ 591,128 388,182
	1,269,247	1,281,016 1,500,663
Total current liabilities	750,746	794,216 929,287

Non-cash working capital	518,501 $	486,800 $ 571,376 $

Market Capitalization & Total Enterprise Value

Market capitalization represents the total market value of the Company’s equity. It is calculated by multiplying the market price of the Company’s share by the total outstanding shares.

Total enterprise value represents the total value of the Company and is often used as a more comprehensive alternative to market capitalization. It is calculated by adding net debt (defined above) to market capitalization.

The calculations are as follows:

($ thousands, except for shares and shareprice) Outstanding common shares _times:_Endingshareprice Market capitalization Long-term debt _less:_Cash Net debt Total enterprise value	March 31 2021	December 31 March 31 2020 2020
	82,542,168	82,474,658 81,980,628
	96.19 $	89.20 $ 61.65 $
	7,939,731 $	7,356,739 $ 5,054,106 $
	646,616 $ 613,942	646,299 $ 745,703 $ 591,128 388,182
	32,674 $	55,171 $ 357,521 $

	7,972,405 $	7,411,910 $ 5,411,627 $

KEY PERFORMANCE INDICATORS (“KPIs”)

Management uses key performance indicators to consistently measure performance against the Company’s priorities across the organization. The Company’s KPIs include gross profit margin, operating margin, order bookings and backlogs, return on capital employed and return on equity. Although some of these KPIs are expressed as ratios, they are non-GAAP financial measures that do not have a standardized meaning under IFRS and may not be comparable to similar measures used by other issuers.

Gross Profit Margin

This measure is defined as gross profit (defined above) divided by total revenues.

Operating Income Margin

This measure is defined as operating income (defined above) divided by total revenues.

Order Bookings and Backlogs

The Company’s order bookings represent equipment unit orders that management believes are firm. Backlogs are defined as the retail value of equipment unit ordered by customers for future deliveries. Management uses order backlog as a measure of projecting future equipment deliveries. There are no directly comparable IFRS measures for order bookings or backlog.

Return on Capital Employed (“ROCE”)

ROCE is utilized to assess both current operating performance and prospective investments. The trailing twelve months adjusted earnings numerator used for the calculation is income before income taxes, interest expense and interest income (excluding interest on rental conversions). The denominator in the calculation is the monthly average capital employed, which is defined as net debt plus shareholders’ equity or total capitalization.

	Trailing twelve months ended	Trailing twelve months ended
($ thousands)	March 31 2021	December 31 March 31 2020 2020
Net earnings _plus:_Interest expense _less:_Interest and investment income _plus:_Interest income - rental conversions _plus:_Income taxes	265,475 $ 30,227 (8,361) 3,529 100,068	254,915 $ 284,934 $ 29,981 27,718 (9,083) (9,905) 3,529 4,116 96,621 106,204
Adjusted net earnings	390,938 $	375,963 $ 413,067 $

Average capital employed	1,817,866 $	1,838,533 $ 1,875,188 $
Return on capital employed	21.5%	20.4% 22.0%

Return on Equity (“ROE”)

ROE is monitored to assess the profitability of the consolidated Company and is calculated by dividing trailing twelve months net earnings by opening shareholders’ equity (adjusted for shares issued and redeemed during the period).

	Trailing twelve months ended	Trailing twelve months ended
($ thousands)	March 31 2021	December 31 March 31 2020 2020
Net earnings	265,475 $	254,915 $ 284,934 $

Openingshareholders' equity (net of adjustments)	1,587,570 $	1,538,817 $ 1,345,979 $
Returnon equity	16.7%	16.6% 21.2%

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited)

($thousands) Note	March 31 2021	December 31 March 31 2020 2020
Assets Current assets Cash Accounts receivable Inventories Income taxes recoverable Derivative financial instruments 5 Other current assets	613,942 $ 482,844 760,087 12,783 - 13,533	591,128 $ 388,182 $ 541,580 454,148 728,404 976,401 135 16,651 - 36,916 10,897 16,547
Total current assets Property, plant and equipment 2 Rental equipment 2 Other assets Deferred tax assets Goodwill and intangible assets	1,883,189 416,824 527,116 31,293 493 477,318	1,872,144 1,888,845 423,282 432,087 539,412 592,814 33,263 41,760 504 1,275 478,187 481,962
Total assets	3,336,233 $	3,346,792 $ 3,438,743 $
Liabilities Current liabilities Accounts payable and accrued liabilities Provisions Deferred revenues and contract liabilities Derivative financial instruments 5 Income taxespayable	538,004 $ 25,034 181,671 6,037 -	584,003 $ 751,517 $ 26,645 24,287 149,109 153,483 11,043 - 23,416 -
Total current liabilities Deferred revenues and contract liabilities Long-term lease liabilities Long-term debt 3, 5 Post-employment obligations 9 Deferred tax liabilities	750,746 17,866 15,362 646,616 104,803 41,209	794,216 929,287 16,383 12,895 16,565 21,098 646,299 745,703 149,451 103,443 25,226 51,011
Total liabilities Shareholders' equity Share capital 4 Contributed surplus Retained earnings Accumulated other comprehensive(loss)income	1,576,602 520,126 15,112 1,225,854 (1,461)	1,648,140 1,863,437 516,591 491,452 14,243 14,182 1,169,239 1,057,222 (1,421) 12,450
Total shareholders' equity	1,759,631	1,698,652 1,575,306
Total liabilities and shareholders' equity	3,336,233 $	3,346,792 $ 3,438,743 $

See accompanying notes

TOROMONT INDUSTRIES LTD. INTERIM CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited)

($ thousands, except share amounts) Note	2021 2020 Three months ended March 31	2021 2020 Three months ended March 31
	2021
Revenues 11 Cost ofgoods sold	806,238 $ 618,860	715,459 $ 544,601
Gross profit Sellingand administrative expenses	187,378 117,162	170,858 115,617
Operating income Interest expense 6 Interest and investment income 6	70,216 7,177 (2,004)	55,241 6,931 (2,726)
Income before income taxes Income taxes	65,043 17,087	51,036 13,640
Net earnings	47,956 $	37,396 $
Earnings per share Basic 7 Diluted 7	0.58 $ 0.58 $	0.46 $ 0.45 $
Weighted average number of shares outstanding Basic 7 Diluted 7	82,498,589 83,248,997	82,015,440 82,548,816

See accompanying notes

TOROMONT INDUSTRIES LTD. INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

	Three months ended March 31	Three months ended March 31
($thousands)	2021	2020
Net earnings	47,956 $	37,396 $
Other comprehensive (loss) income, net of income taxes: Items that may be reclassified subsequently to net earnings:
Foreign currencytranslation adjustments	(142)	931
Unrealized (losses) gains on derivatives designated as cash flow hedges Income tax recovery (expense)	(4,107) 1,067	19,606 (5,155)
Unrealized(losses) gains on cash flow hedges,net of income taxes	(3,040)	14,451
Realized losses (gains) on derivatives designated as cash flow hedges Income tax(recovery)expense	4,246 (1,104)	(3,528) 937
Realized losses(gains)on cash flow hedges,net of income taxes	3,142	(2,591)
Items that will not be reclassified subsequently to net earnings: Actuarial and other gains Income tax expense	46,593 (12,347)	24,222 (6,419)
Actuarial and othergains,net of income taxes	34,246	17,803
Other comprehensive income	34,206	30,594
Total comprehensive income	82,162 $	67,990 $

See accompanying notes

TOROMONT INDUSTRIES LTD. INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	Three months ended March 31	Three months ended March 31
($thousands) Note	2021	2020
Operating activities Net earnings Items not requiring cash: Depreciation and amortization Stock-based compensation Post-employment obligations Deferred income taxes Gain on sale of rental equipment and property, plant and equipment	47,956 $ 39,071 1,466 1,945 3,611 (7,705)	37,396 $ 41,867 1,410 1,961 7,355 (8,093)
Net change in non-cash working capital and other 10 Additions to rental equipment 2 Proceeds on disposal of rental equipment	86,344 (29,397) (23,640) 17,576	81,896 (98,551) (36,632) 12,402
Cashprovided by (used in) operating activities	50,883	(40,885)
Investing activities Additions to property, plant and equipment 2 Proceeds on disposal of property, plant and equipment Increase in other assets	(4,605) 1,793 (44)	(19,017) 9,766 (46)
Cash used in investing activities	(2,856)	(9,297)
Financing activities Drawings on credit facility Dividends paid 4 Cash received on exercise of stock options Shares purchased for cancellation 4 Payment of lease liabilities	- (25,560) 2,938 - (2,553)	100,000 (22,139) 1,494 (4,043) (2,685)
Cash(used in) provided by financing activities	(25,175)	72,627
Effect of currencytranslation on cash balances	(38)	148
Increase in cash during the period Cash,at beginningof theperiod	22,814 591,128	22,593 365,589
Cash, at end of theperiod	613,942 $	388,182 $

Supplemental cash flow information (note 10)

See accompanying notes

TOROMONT INDUSTRIES LTD. INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited)

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Share capital Accumulated other comprehensive income (loss)
Foreign
currency
Contributed Retained translation Cash flow
($ thousands, except share numbers) Number Amount surplus earnings adjustments hedges Total Total
At January 1, 2021 82,474,658 $ 516,591 $ 14,243 $1,169,239 $ 1,880 $ (3,301) $ (1,421) $ 1,698,652
- - - - - -
Net earnings 47,956 47,956
Other comprehensive income (loss) - - - 34,246 (142) 102 (40) 34,206
Total comprehensive income - - - 82,202 (142) 102 (40) 82,162
- - - -
Exercise of stock options 67,510 3,535 (597) 2,938
Stock-based compensation expense - - 1,466 - - - - 1,466
Effect of stock compensation plans 67,510 3,535 869 - - - - 4,404
Dividends declared - - - (25,587) - - - (25,587)
At March 31, 2021 82,542,168 $ 520,126 $ 15,112 $ 1,225,854 $ 1,738 $ (3,199) $ (1,461) $ 1,759,631
At January 1, 2020 82,012,448 $ 490,047 $ 13,088 $1,031,097 $ 2,219 $ (2,560) $ (341) $ 1,533,891
- - - - - -
Net earnings 37,396 37,396
Other comprehensive income - - - 17,803 931 11,860 12,791 30,594
Total comprehensive income - - - 55,199 931 11,860 12,791 67,990
- - - -
Exercise of stock options 35,980 1,810 (316) 1,494
Stock-based compensation expense - - 1,410 - - - - 1,410
- - - -
Effect of stock compensation plans 35,980 1,810 1,094 2,904
- - - -
Shares purchased for cancellation (67,800) (405) (3,638) (4,043)
Dividends declared - - - (25,436) - - - (25,436)
At March 31, 2020 81,980,628 491,452 14,182 1,057,222 $ 3,150 $ 9,300 $ 12,450 $ 1,575,306
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See accompanying notes

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS As at and for the three months ended March 31, 2021 (Unaudited)

($ thousands, except where otherwise indicated)

1. DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES

Corporate Information

Toromont Industries Ltd. (the “Company” or “Toromont”) is a limited company incorporated and domiciled in Canada whose shares are publicly traded on the Toronto Stock Exchange under the symbol TIH. The registered office is located at 3131 Highway 7 West, Concord, Ontario, Canada.

Toromont operates through two reportable segments: the Equipment Group and CIMCO. The Equipment Group includes one of the larger Caterpillar dealerships by revenue and geographic territory in addition to industry-leading rental operations and an agricultural equipment business. CIMCO is a market leader in the design, engineering, fabrication and installation of industrial and recreational refrigeration systems. Both segments offer comprehensive product support capabilities.

Basis of Preparation

These interim condensed consolidated financial statements were prepared in accordance with  International Accounting Standard (“IAS”) 34 Interim Financial Reporting (“IAS 34”). Accordingly, these interim condensed consolidated financial statements do not include all disclosures required for annual financial statements and should be read in conjunction with the audited annual consolidated financial statements of the Company for the year ended December 31, 2020.

The preparation of interim condensed consolidated financial statements in accordance with IAS 34 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the interim condensed consolidated financial statements, were the same as those that applied to the Company’s consolidated financial statements as at and for the year ended December 31, 2020. Management also incorporated the potential impact of COVID-19 into its estimates and assumptions.

These interim condensed consolidated financial statements are presented in Canadian dollars and all values are rounded to the nearest thousands, except where otherwise indicated.

These interim condensed consolidated financial statements were authorized for issue by the Board of the Directors on May 4, 2021.

The accounting policies adopted in the preparation of these interim condensed consolidated financial statements are consistent with those followed in the preparation of the Company’s annual financial statements for the year ended December 31, 2020. Several amendments apply for the first time in 2021, but do not have an impact on the interim condensed consolidated financial statements of the Company. The Company has not early-adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

2. PROPERTY, PLANT AND EQUIPMENT AND RENTAL EQUIPMENT

Activity within property, plant and equipment and rental equipment during the period included:

	Three months ended March 31	Three months ended March 31
	2021	2020
Additions Rental equipment Property, plant and equipment	23,640 $ 4,605	36,632 $ 19,017
Total additions	28,245 $	55,649 $
Disposals - Net book value ("NBV") Rental equipment Property, plant and equipment	11,115 $ 549	8,518 $ 5,557
Total disposals - NBV	11,664 $	14,075 $
Depreciation Cost of goods sold Sellingand administrative expenses	31,064 $ 4,224	32,091 $ 5,910
Total depreciation	35,288 $	38,001 $

3. LONG-TERM DEBT

	March 31 2021	December 31 2020 March 31 2020
Bank revolving credit facility Senior Debentures: 3.71%, $150.0 million, due September 30, 2025(1) 3.84%, $500.0 million,due October 27,2027(1)	- $ 150,000 500,000	- $ 100,000 $ 150,000 150,000 500,000 500,000
Debt issuance costs,net of amortization	650,000 (3,384)	650,000 750,000 (3,701) (4,297)
Total long-term debt	646,616 $	646,299 $ 745,703 $

(1) Interest payable semi-annually, principal due on maturity.

All debt is unsecured.

The Company maintains a $500.0 million committed revolving credit facility that matures in October 2022. On April 17, 2020, the Company entered into an additional $250.0 million committed revolving credit facility maturing in April 2021 (this credit facility was not renewed). Debt under these facilities is unsecured and ranks pari passu with debt outstanding under Toromont’s existing debentures. Interest is based on a floating rate, primarily bankers’ acceptances and prime, plus applicable margins and fees based on the terms of the credit facility.

Standby letters of credit issued utilized $30.0 million of the $500.0 million facility as at March 31, 2021 (December 31, 2020 – $30.8 million and March 31, 2020 – $34.0 million).

28 Notes to the Interim Condensed Consolidated Financial Statements As at and for the three months ended March 31, 2021

(Unaudited)

4. SHARE CAPITAL

Normal Course Issuer Bid (“NCIB”)

The Company purchased and cancelled 67,800 common shares for $4.0 million (average cost of $59.62 per share, including transaction costs) under the NCIB program during the first quarter of 2020.

The Company’s NCIB expired in August 2020 and was not renewed.

Dividends

The Company paid dividends of $25.6 million or $0.31 per share during the three months ended March 31, 2021 (2020 - $22.1 million or $0.27 per share).

Subsequent to quarter-end, the Board of Directors approved a dividend increase of 4 cents or 12.9%, to 35 cents per common share per quarter effective with the dividend payable on July 5, 2021 to shareholders on record on June 9, 2021.

5. FINANCIAL INSTRUMENTS

Financial Assets and Liabilities – Classification and Measurement

The following table highlights the carrying amounts and classifications of certain financial assets and liabilities:

	March 31 2021	December 31 March 31 2020 2020
Other financial liabilities: Long-term debt Derivative financial instruments (liabilities) assets, net: Foreign exchange forward contracts	646,616 $ (6,037) $	646,299 $ 745,703 $ (11,043) $ 36,916 $

Fair Value of Financial Instruments

The fair value of derivative financial instruments is measured using the discounted value of the difference between the contract’s value at maturity based on the contracted foreign exchange rate and the contract’s value at maturity based on the comparable foreign exchange rate at period-end under the same conditions. The financial institution’s credit risk is also taken into consideration in determining fair value. The valuation is determined using Level 2 inputs, which are observable inputs or inputs that can be corroborated by observable market data for substantially the full term of the asset or liability, most significantly foreign exchange spot and forward rates.

Notes to the Interim Condensed Consolidated Financial Statements As at and for the three months ended March 31, 2021

(Unaudited)

The fair value and carrying value of long-term debt is as follows:

Long-termdebt	March 31 2021	December 31 March 31 2020 2020
Fair value Carryingvalue	700,469 $ 650,000 $	726,871 $ 771,046 $ 650,000 $ 750,000 $

The fair value was determined using the discounted cash flow method, a generally accepted valuation technique. The discounted factor is based on market rates for debt with similar terms and remaining maturities and based on Toromont’s credit risk. The Company has no plans to prepay these instruments prior to maturity.

During the three-months ended March 31, 2021, there were no transfers between Level 1 and Level 2 fair value measurements.

Derivative Financial Instruments and Hedge Accounting

Foreign exchange contracts and options are transacted with financial institutions to hedge foreign currency-denominated obligations related to purchases of inventory and sales of products. As at March 31, 2021, the Company was committed to USD purchase contracts with a notional amount of $463.4 million at an average exchange rate of $1.2704, maturing between April 2021 and October 2022.

Management estimates that a loss of $6.0 million (December 31, 2020 – loss of $11.0 million; March 31, 2020 – gain of $37.3 million) would be realized if the contracts were terminated on March 31, 2021. Certain of these forward contracts are designated as cash flow hedges, and accordingly, an unrealized loss of $4.3 million (December 31, 2020 – unrealized loss of $4.4 million; March 31, 2020 – unrealized gain of $10.8 million) has been included in other comprehensive income. These losses are not expected to affect net income as the amounts will be reclassified to net income within the next eleven months and will offset losses recorded on the underlying hedged items, namely foreign-denominated accounts payable and accrued liabilities. Certain of those forward contracts are not designated as cash flow hedges, but are entered into for periods consistent with foreign currency exposure of the underlying transactions. A loss of $1.7 million (December 31, 2020 – loss of $6.6 million; March 31, 2020 – gain of $26.5 million) on forward contracts not designated as hedges is included in net income, which offsets losses recorded on the foreign-denominated items, namely accounts payable and accrued liabilities.

Notes to the Interim Condensed Consolidated Financial Statements As at and for the three months ended March 31, 2021

(Unaudited)

6. INTEREST INCOME AND EXPENSE

The components of interest expense were as follows:

	Three months ended March 31 2021 2020	Three months ended March 31 2021 2020
	2021
Credit facilities Senior debentures Interest on leaseliabilities	748 $ 6,243 186	410 $ 6,278 243
	7,177 $	6,931 $

The components of interest and investment income were as follows:

	Three months ended March 31	Three months ended March 31
	2021	2020
Interest on conversion of rental equipment Other	770 $ 1,234	771 $ 1,955
	2,004 $	2,726 $

7. EARNINGS PER SHARE

	Three months ended March 31	Three months ended March 31
	2021	2020
Net earnings available to common shareholders	47,956 $	37,396 $
Weighted average common shares outstanding Dilutive effect of stock option conversions	82,498,589 750,408	82,015,440 533,376
Diluted weighted average common shares outstanding	83,248,997	82,548,816
Earnings per share: Basic Diluted	0.58 $ 0.58 $	0.46 $ 0.45 $

There were no anti-dilutive options in the three-months ended March 31, 2021 or March 31, 2020.

Notes to the Interim Condensed Consolidated Financial Statements

As at and for the three months ended March 31, 2021

(Unaudited)

8. STOCK-BASED COMPENSATION

A reconciliation of the outstanding options was as follows:

	Three months ended March 31, 2021	Three months ended March 31,2020
	Weighted Average Number of Exercise Options Price	Weighted Average Number of Exercise Options Price
Options outstanding, January 1 Exercised(1) Forfeited	2,328,038 58.67 $ (67,510) 43.51 (86,400) 57.55	2,329,705 51.68 $ (35,980) 41.53 (2,000) 65.97
Options outstanding,March 31	2,174,128 59.19 $	2,291,725 51.82 $
Options exercisable,March 31	779,265 46.83 $	859,935 39.81 $

(1) The weighted average share price at date of exercise for the three months ended March 31, 2021 was $92.22 (2020 - $69.62).

The following table summarizes stock options outstanding and exercisable as at March 31, 2021.

Range of Exercise Prices	Options Outstanding	Options Exercisable
	Weighted Weighted Average Average Remaining Exercise Number Life(years) Price	Weighted Average Exercise Number Price
$23.40 - $26.52 $36.65 - $39.79 $53.88 - $66.22 $72.95	119,430 3.0 25.37 $ 373,510 5.0 38.80 $ 1,151,245 7.5 62.97 $ 529,943 9.4 72.95 $	119,430 25.37 $ 304,550 38.58 $ 355,285 61.12 $ - - $
	2,174,128 7.3 59.19 $	779,265 46.83 $

Deferred Share Unit (“DSU”) Plan

A reconciliation of the DSU plan was as follows:

Outstanding, January 1 Units taken or taken in lieu and dividends Redemptions Fair market value adjustment Outstanding,March 31	March 31, 2021 Three months ended	March 31,2020 Three months ended
	Number of DSUs Value	Number of DSUs Value
	394,154 35,555 $ 13,732 1,258 (89,399) (8,211) - 1,353	388,547 27,392 $ 12,017 813 - - - (3,993)
	318,487 29,955 $	400,564 24,212 $

The liability for DSUs is recorded in accounts payable and accrued liabilities.

Notes to the Interim Condensed Consolidated Financial Statements

As at and for the three months ended March 31, 2021

(Unaudited)

9. EMPLOYEE FUTURE BENEFITS

Employee future benefits expense included the following components:

Defined benefit plans Defined contribution plans 401(k)matched savings plans	Three months ended March 31	Three months ended March 31
	2021	2020
	4,911 $	4,914 $
	3,849	4,001
	68	70
	8,828 $	8,985 $

10. SUPPLEMENTAL CASH FLOW INFORMATION

	Three months ended March 31	Three months ended March 31
	2021	2020
Net change in non-cash working capital and other Accounts receivable Inventories Accounts payable and accrued liabilities Provisions Deferred revenues and contract liabilities Income taxes Derivative financial instruments Other	58,736 $ (31,683) (45,738) (1,611) 34,045 (36,064) (4,866) (2,216)	70,904 $ (64,215) (71,803) 607 9,073 (7,376) (31,394) (4,347)
	(29,397) $	(98,551) $
Cash paid during the year for: Interest Income taxes	2,783 $ 51,014 $	4,092 $ 13,870 $
Cash received during the year for: Interest Income taxes	1,929 $ 1,461 $	2,615 $ 166 $

11. SEGMENTED INFORMATION

The Company has two reportable segments: the Equipment Group and CIMCO as described in note 1, each supported by the corporate office. These segments are strategic business units that offer different products and services, and each is managed separately. The corporate office provides finance, treasury, legal, human resources and other administrative support to the segments and does not meet the definition of a reportable operating segment as defined in International Financial Reporting Standards (“IFRS”) 8 – Operating Segments , as it does not earn revenue.

The accounting policies of each of the reportable segments are the same as the significant accounting policies described in the most recent annual audited consolidated financial statements.

Segment performance is assessed based on operating income, which is measured differently than income from operations in the interim condensed consolidated financial statements. Corporate

33 Notes to the Interim Condensed Consolidated Financial Statements As at and for the three months ended March 31, 2021

(Unaudited)

overheads are allocated to the segments based on revenue. Income taxes, interest expense, interest and investment income are managed at a consolidated level and are not allocated to the reportable operating segments. Current income taxes, deferred income taxes and certain financial assets and liabilities are not allocated to the segments as they are also managed on a consolidated level.

The aggregation of the operating segments is based on the economic characteristics of the business units. These business units are considered to have similar economic characteristics including nature of products and services, class of customers and markets served and similar distribution models.

No reportable segment is reliant on any single external customer.

The following table sets forth information by segment for the three months ended March 31, 2021 and 2020:

Equipment Group CIMCO	Consolidated	Consolidated
Three months ended March 31 2021 2020 2021 2020	2021	2020
Equipment/package sales 323,095 $ 251,735 $ 46,389 $ 22,609 $ Rentals 72,298 80,978 - - Product support 329,224 322,351 32,466 35,074 Powergeneration 2,766 2,712 - -	369,484 $ 72,298 361,690 2,766	274,344 $ 80,978 357,425 2,712
Total revenues 727,383 $ 657,776 $ 78,855 $ 57,683 $	806,238 $	715,459 $
Operating income 69,813 $ 55,076 $ 403 $ 165 $	70,216 $	55,241 $
Interest expense Interest and investment income Income taxes	7,177 (2,004) 17,087	6,931 (2,726) 13,640
Net earnings	47,956 $	37,396 $

Operating income from rental operations was $2.5 million for the three months ended March 31, 2021 (2020 – operating income of $2.4 million).

12. BUSINESS SEASONALITY

Interim period revenues and earnings historically reflect seasonality. For the Equipment Group, the first quarter is typically the weakest due to winter shutdowns in the construction industry while the fourth quarter has consistently been the strongest quarter due to higher conversions at the Caterpillar dealership of equipment on rent with a purchase option. For CIMCO, the fourth quarter tends to be the strongest due to higher activity in recreational markets in advance of the winter recreational season.

The breadth and duration of this pandemic are unknown, in part given the many unknowns related to the virus, the ability to contain transmission and the timing of vaccine roll-out. Staff shortages, reduced customer activity and demand, increased government regulations or intervention, are

34 Notes to the Interim Condensed Consolidated Financial Statements As at and for the three months ended March 31, 2021

(Unaudited)

some of the factors that have and may continue to negatively impact the business, consolidated financial results and conditions of the Company. It is not possible to reliably estimate the length and severity of these developments as well as the impact on the consolidated financial results and condition of the Company in future periods.

Notes to the Interim Condensed Consolidated Financial Statements

As at and for the three months ended March 31, 2021

(Unaudited)

How to get in touch with us

Tel: 416.667.5511 Fax: 416.667.5555 E-mail: [email protected] www.toromont.com

How to reach our transfer agent and registrar

Investors are encouraged to contact AST Trust Company (Canada) for information regarding their security holdings.

AST Trust Company (Canada) P.O. Box 700 Station B Montreal, Quebec H3B 3K3

Toll-Free North America: 1.800.387.0825 Local: 416.682.3860 E-mail: [email protected] www.astfinancial.com/ca-en

Common Shares

Listed on the Toronto Stock Exchange Stock Symbol – TIH

Toromont Industries Ltd.

Corporate Office 3131 Highway 7 West P.O. Box 5511 Concord ON L4K 1B7

AI assistant

Toromont Industries Ltd. — Interim / Quarterly Report 2021

43124_rns_2021-05-04_72e08290-86d0-45b4-a948-8882cf923778.pdf

First Quarter 2021

May 4, 2021

TOROMONT ANNOUNCES RESULTS FOR THE FIRST QUARTER OF 2021 AND QUARTERLY DIVIDEND

Highlights:

Consolidated results

Equipment Group

CIMCO

Financial Position

Management’s Discussion and Analysis

Advisory

CONSOLIDATED OPERATING RESULTS

BUSINESS SEGMENT OPERATING RESULTS

Equipment Group

Bookings and Backlogs

CIMCO

Bookings and Backlogs

CONSOLIDATED FINANCIAL CONDITION

Non-cash Working Capital

Legal and Other Contingencies

Outstanding Share Data

Dividends

LIQUIDITY AND CAPITAL RESOURCES

Sources of Liquidity

Principal Components of Cash Flow

Cash Flows from Operating Activities

Cash Flows from Investing Activities

Cash Flows from Financing Activities

OUTLOOK

QUARTERLY RESULTS

RISKS AND RISK MANAGEMENT

- Pandemic Risk (Coronavirus COVID 19)

SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES

Accounting Policies

Estimates

CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

Internal Control over Financial Reporting

ADDITIONAL GAAP MEASURES

Gross Profit

Operating Income

Net Debt to Total Capitalization/Equity

NON-GAAP MEASURES

Working Capital

Non-Cash Working Capital

Market Capitalization & Total Enterprise Value

KEY PERFORMANCE INDICATORS (“KPIs”)

Gross Profit Margin

Operating Income Margin

Order Bookings and Backlogs

Return on Capital Employed (“ROCE”)

Return on Equity (“ROE”)

TOROMONT INDUSTRIES LTD.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited)

TOROMONT INDUSTRIES LTD. INTERIM CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited)

See accompanying notes

TOROMONT INDUSTRIES LTD. INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

TOROMONT INDUSTRIES LTD. INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

TOROMONT INDUSTRIES LTD. INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited)

See accompanying notes

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS As at and for the three months ended March 31, 2021 (Unaudited)

1. DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES

Corporate Information

Basis of Preparation

2. PROPERTY, PLANT AND EQUIPMENT AND RENTAL EQUIPMENT

3. LONG-TERM DEBT

4. SHARE CAPITAL

Normal Course Issuer Bid (“NCIB”)

Dividends

5. FINANCIAL INSTRUMENTS

Financial Assets and Liabilities – Classification and Measurement

Fair Value of Financial Instruments

Derivative Financial Instruments and Hedge Accounting

6. INTEREST INCOME AND EXPENSE

7. EARNINGS PER SHARE

8. STOCK-BASED COMPENSATION

Deferred Share Unit (“DSU”) Plan

9. EMPLOYEE FUTURE BENEFITS

Toromont Industries Ltd. Interim / Quarterly Report 2021