Finning International Inc. · TSX:FTT

Finning International — RBC Capital Markets Energy Resources Conference 2005

39 slides from Finning International's conference presentation, May 2005

1. Slide 1: RBC Capital Markets Energy Resources Conference

   RBC Capital Markets Energy Resources Conference May 2005 Gordon Finlay Vice President, Mining Finning (Canada)

2. Slide 2: Forward-Looking Statements

   Forward-Looking Statements This presentation contains forward-looking statements and information which reflect the current view of Finning International Inc. ("Finning" or the "Company") with respect to future events and financial performance. Any such forward-looking statements are subject to risks

3. Slide 3: Presentation Agenda

   Presentation Agenda ƒ Finning overview ƒ Oil Sands opportunity ƒ Maintenance and Repair Contracts (MARC) 3

4. Slide 4: Finning International Inc.

   Finning International Inc. ƒ Largest Caterpillar dealer in the world ƒ Sell new and used CAT equipment and engines ƒ Provide parts and service ƒ Equipment rental ƒ Focused on three key geographies: Western Canada, UK, South America ƒ 13,000 employees 4

5. Slide 5: Global Diversification & Balance

   Global Diversification & Balance FINNING FINNING FINNING HEWDEN POWER & (CANADA) (UK) LTD. SOUTH AMERICA ENERGY SYSTEMS Revenue Revenue Revenue Revenue Revenue (32%) (21%) (19%) (17%) (11%) 5 12 months to December 31, 2004

6. Slide 6: Finning (Canada)

   Finning (Canada) ƒ 2,900 + employees ƒ 2004 revenue - $1.6B ƒ 27 full service branches ƒ 7 full parts/service depots ƒ 40 field resident service Yukon representatives Northwest Territories ƒ 24 hour/7 day Customer Support Centre 1-888-Finning British Alberta Columbia Edmonton Vancouver 6

7. Slide 7: Finning (Canada) Oil Sands

   Finning (Canada) Oil Sands Three locations: ƒ Fort McMurray (construction, petroleum, forestry) ƒ Mildred Lake (mining) ƒ Albian Sands (dedicated mine maintenance) Employees: May 2005 ƒ Management, sales & support 46 ƒ Parts 48 ƒ Service 188 282 7

8. Slide 8: Finning (Canada) Oil Sands

   Finning (Canada) Oil Sands Support Capabilities ƒ 24/7 shift coverage ƒ 34 bays (all three sites) 125,000 sq. ft. Capability to work on 16 797’s concurrently, plus additional support equipment ƒ 55 fully equipped field service trucks ƒ Parts warehouses at Albian, Mildred Lake and Fort McMurray ƒ Rem

9. Slide 9: Oil Sands Capital Expenditure Projections

   Oil Sands Capital Expenditure Projections 12,000 10,000 2002 Forecast 8,000 $ Millions 2001 Forecast 6,000 2000 Forecast 4,000 1999 Forecast 2,000 1998 Forecast 0 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 Year 9

10. Slide 10: Oil Sands Project Status

    Oil Sands Project Status Projects Open Surface SAGD Approved Shell – Jackpine Orion – Whitesands Syncrude – Stage 3-5 Petro-Canada – Meadow Creek CNRL – Horizon ConcoPhillips – Surmont Opti-Nexen – Long Lake Suncor – Firebag 3 & 4, MCU Deer Creek – Joslyn Ph. 2 Under AEUB Albian Sands – Phase 2 Devo

11. Slide 11: North American Crude Oil Supply

    North American Crude Oil Supply 30,000 25,000 000 barrels per day Imports 20,000 Oil Sands Production (currently 1mm bpd) 15,000 10,000 5,000 Conventional Production Target 3mm bpd (Includes natural gas liquids) 0 90 95 00 05 10 15 Sources: Energy Information Administration (EIA), Projections: EIA,

12. Slide 12: Sources of Expected Oil Production Growth

    Sources of Expected Oil Production Growth Current SAGD Local UTS – Fort Hills Suncor Exxon - KL SCL - Aurora Pipelines Deer Creek Infrastructure Suncor SCL* - BM CNRL Albian Albian 2005 2007 2009 2012 *SCL - Syncrude 12

13. Slide 13: Oil Sands Fleet and Revenue Projections

    Oil Sands Fleet and Revenue Projections 2005-2013 Projections provided in this presentation are forward looking information. They are derived from project information that is generally available in the public domain. These projections are highly speculative and actual results could differ materially

14. Slide 14: Fleet Projections - Approach Taken

    Fleet Projections - Approach Taken Assumptions - Logistics ƒ Reviewed known information regarding existing customer expansion plans ƒ Reviewed known information about new projects including timing and size ƒ Utilize standard life estimates for equipment replacement estimates ƒ Estimated future marke

15. Slide 15: Fleet Projections – Equipment

    Fleet Projections – Equipment ƒ Haulage Trucks ƒ 400 ton ƒ 240 ton ƒ <240 ton not included in revenue projections ƒ Track Type Tractors ƒ D8 through D11 ƒ Graders ƒ 24H ƒ 16H Does not include smaller support equipment, smaller mining support customers or local infrastructure, oil and gas, constructi

16. Slide 16: Fleet Projections – Projects Considered

    Fleet Projections – Projects Considered ƒ Syncrude ƒ Suncor ƒ Albian ƒ Contract Miners ƒ CNRL ƒ Deer Creek ƒ Kearl Lake ƒ UTS/Petro Canada 16

17. Slide 17: Fleet Projections - Truck Market Projections

    Fleet Projections - Equipment Truck Market Projections (400 ton & 240 ton) - All Makes Units 140 Suncor/Albian New Projects 120 100 80 UTS/Deer Creek 60 40 20 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total Units Replacement Units 17

18. Slide 18: Fleet Projections - Tractor Market Projections

    Fleet Projections - Equipment Tractor Market Projections (D8, D10, D11) - All Makes Units 70 60 50 40 30 20 10 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total Units Replacement Units 18

19. Slide 19: Fleet Projections - Grader Market Projections

    Fleet Projections - Equipment Grader Market Projections (16H & 24H) - All Makes Units 20 18 16 14 12 10 8 6 4 2 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total Units Replacement Units 19

20. Slide 20: Fleet Projections – Equipment Revenue

    Fleet Projections – Equipment Revenue $millions Equipment Revenue $700 $600 $500 $400 $300 $200 $100 $0 2005 2006 2007 2008 2009 2010 2011 2012 2013 Finning revenue Total revenue 20

21. Slide 21: Fleet Projections – Parts Revenue

    Fleet Projections – Parts Revenue $millions Parts Revenue $400 $350 $300 $250 $200 $150 $100 $50 $0 2005 2006 2007 2008 2009 2010 2011 2012 2013 Finning revenue 21

22. Slide 22: Fleet Projections – Total Revenue

    Fleet Projections – Total Revenue Total Equipment and Parts Revenue* $millions $800 $700 $600 $500 $400 $300 $200 $100 $0 2005 2006 2007 2008 2009 2010 2011 2012 2013 Finning revenue 22 *Excludes revenue generated from service labour

23. Slide 23: Partnerships/MARCs

    Partnerships/MARCs 23

24. Slide 24: Partnerships/MARCs

    - FINNING Pa rtnersh i ps/ MARCsS INTERNATIONAL INC. arn 24

25. Slide 25: What is a MARC?

    What is a MARC? Maintenance And Repair Contract can be: ƒ A single field serviceman in a truck or ƒ A fully maintained fleet covering preventive maintenance, repair, parts, planning, warehouse… 25

26. Slide 26: MARC

    MARC MARCs are commonplace in: ƒ Australia ƒ South America (with Finning) Finning (Canada) fleet maintenance experience: ƒ Syncrude 789 contract ƒ Ekati Diamond Mine 13 x 793C and 31 pieces of CAT support equipment ƒ Albian Sands 23 x 797B and 37 pieces of CAT support equipment 26

27. Slide 27: Why a MARC?

    Why a MARC? Owner benefits ƒ In a heated economic climate, the owners are able to forecast and guarantee operating costs and equipment performance ƒ Leverage dealers’ technical expertise, logistics (parts), and factory technical support ƒ Eliminates duplicate personnel ƒ Buffers owners from product

28. Slide 28: Why a MARC?

    Why a MARC? Finning provides equipment management for the fleet and controls the key variables that determine mechanical availability and operating costs which are committed to as part of the MARC. ƒ Long term business opportunity (motivates and rewards performance) ƒ Streamlines the solution chain

29. Slide 29: MARC - Services

    MARC - Services ƒ All costs agreed to up front, Finning has committed to supply the labour and parts to maintain the owners MARC fleet for 5 years ƒ Some exclusions (i.e. undercarriage) 29

30. Slide 30: MARC

    MARC As MARC provider Finning supplies: ƒ All labour, parts and service ƒ Supervision – 24 hours, 365 days per year ƒ Maintenance planning ƒ Safety for MARC alliance ƒ Administration ƒ Reliability engineer ƒ Factory technical support ƒ Technical training All on site 30

31. Slide 31: MARC – Does it make a difference?

    MARC – Does it make a difference? Yes! ƒ MARC contracts offer aggressive cost per hour (based on care & control maintenance) ƒ Owners are freed up from all the secondary cost and energy required to run a maintenance department ƒ Key Performance Indicators developed jointly: ƒ Mechanical availability

32. Slide 32: Why is Mechanical Availability Critical?

    Why is Mechanical Availability Critical? ƒ Each 797 load of oil sands ore results in approximately 172 barrels of oil ƒ Each 797 hauls approximately 4 trips per hour on a oil sand haul ƒ At 172 barrels/trip x 4 trips/hour = 688 barrels/hr ƒ Each barrel sells for approximately US $50 x 1.25 = CND $62

33. Slide 33: Mechanical Availability

    Mechanical Availability Availability - January 2005 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 94% 90% 92% 66% 67% 84% 71% 95% 89% 84% 87% 93% 89% 91% 85% 88% 96% 79% 89% 93% 93% 97% 83% 93% 88% 91% 87% 90% 97% 88% 0% 17 6 08 17 9 00 01 17 2 03 17 4 05 17 6 07 14 17 5 16 17 7 18 17 9 20 21 17 3 24 17

34. Slide 34: Mechanical Availability

    Mechanical Availability January 2005 Downtime Distribution - Fleet SCL- Lights SCL - Operator Station 0% Damage Engine 1% 8% SCL - Miscellaneous Lube System 13% 5% 1% Tires Cooling System P4 Service 7% 3% 3% Air and Exhaust System 2% P3 Service 6% Fuel System 0% P2 Service 5% Electrical and Starting

35. Slide 35: Lost Time Injuries

    Lost Time Injuries 1994 – 2005 YTD 180 160 140 120 100 80 60 40 20 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Finning (Canada) Lost Time Injuries 35

36. Slide 36: Lost Time Injury Frequency Rate

    Lost Time Injury Frequency Rate* 5.00 4.38 4.50 4.00 3.50 3.26 3.00 2.82 2.50 2.08 2.00 1.50 1.00 0.55 0.64 0.50 0.00 1999 2000 2001 2002 2003 2004 2005 Lost Time Injury Frequency Target = 0.40 *Finning (Canada) 36

37. Slide 37: Summary

    Summary ƒ Oil Sands development will require human resources, capital and technical expertise to deliver financial expectations in a very challenging environment ƒ Finning is well positioned to deliver the lowest cost per ton, trained people, and solutions to achieve success in this important market

38. Slide 38: Oil Sands Mining Projects……

    Oil Sands Mining Projects…… 38

39. Slide 39: Payload Distribution Curves

    Payload Distribution Curves Payload Distribution 797-391 (17-108,17-109, 17-515, 17-516, 17-522 and 17-523 to 17-528) 7.0 6.0 5.0 Target Mean = 390.5T, Target S.D. = 30.2T Frequency [%] Actual Mean = 392.5T, Actual S.D. = 38.3T 4.0 3.0 Actual Distribution 2.0 Target Distribution Normalized Distribut

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