Finning International Inc. · TSX:FTT

Finning International — Q4 2012 Earnings Presentation

11 slides from Finning International's earnings presentation, Feb 13, 2013

1. Slide 1: Q4 2012 Investor Call

   Q4 2012 Investor Call February 13, 2013

2. Slide 2: Forward Looking Information

   Forward Looking Information This report contains statements about the Company’s business outlook, objectives, plans, strategic priorities and other statements that are not historical facts. A statement Finning makes is forward-looking when it uses what the Company knows and expects today to make a s

3. Slide 3: Q4 2012 Highlights

   Q4 2012 Highlights  Highest quarterly revenue in 2012; roughly on par with Q4/11 record  Strong market conditions in South America  Healthy business levels in Canada  Softer business environment in UK and Ireland  Continued to improve operating profitability and achieved several earnings record

4. Slide 4: Q4 and FY2012 Results

   Q4 and FY2012 Results C$ millions Q4 2012 Q4 2011 Q4-12/Q4-11 FY2012 FY12/FY11 Revenue 1,779 1,811 (2%) 6,622 12% Gross profit 522 474 10% 1,965 17% GP margin 29.3% 26.2% 29.7% SG&A (382) (367) (4%) (1,483) (16%) SG&A as % of revenue (21.5)% (20.3)% (22.4)% Equity earnings 2 3 10 Other income (expen

5. Slide 5: EBIT Margin Journey

   EBIT Margin Journey EBIT Margin 10.0% 8.4% 8.1% 7.8% 8.0% 8.4% 6.9% 6.7% 5.9% 6.0% 4.0% 3.5% 2.0% ERP launch 0.0% Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 EBIT Margin 5

6. Slide 6: Canada – Q4 and FY2012

   Canada – Q4 and FY2012 C$ millions Q4 2012 Q4 2011 Change FY2012 FY12/FY11 Revenue 788 991 (20%) 3,278 11% Operating costs (699) (920) 24% (2,945) (11%) Depreciation/amortization (27) (31) (116) Equity earnings in JV 2 3 9 Other income 10 - 10 EBIT 74 43 70% 236 39% EBIT margin 9.4% 4.4% 7.2%  Q4 n

7. Slide 7: FINSA – Q4 and FY2012

   FINSA – Q4 and FY2012 C$ millions Q4 2012 Q4 2011 Change Change FY2012 FY12/FY11 C$ US$ C$ US$ Revenue 774 593 31% 35% 2,444 15% 14% Operating costs (679) (524) (30%) (34%) (2,141) (14%) (13%) Depreciation/amortization (18) (12) (62) Other expenses (1) (1) (4) EBIT 76 56 34% 39% 237 23% 22% EBIT mar

8. Slide 8: UK and Ireland – Q4 and FY2012

   UK and Ireland – Q4 and FY2012 C$ millions Q4 2012 Q4 2011 Change Change FY2012 FY12/FY11 C$ GBP C$ GBP Revenue 217 227 (4%) (3%) 901 8% 9% Operating costs (196) (205) 4% 4% (813) (8%) (8%) Depreciation/amortization (10) (6) (35) Other expenses (1) (1) (3) EBIT 10 15 (30%) (29%) 50 (3%) (3%) EBIT ma

9. Slide 9: Financial Targets

   Financial Targets  Drive earnings growth and EBIT margin improvement to 9-10% target  Fundamental shift to higher profitability  Committed to growing earnings at a rate higher than revenue  Produce solid return on invested capital  Completed significant investments  Monitoring asset performanc

10. Slide 10: Operations Update

    Operations Update  UK & Ireland  Expect soft market conditions; outlook remains uncertain  Opportunities to gain market share and grow product support  Canada  Equipment sales have slowed, particularly to resource customers  Expect healthy demand for product support  Fort McKay ramping up ahe

11. Slide 11: Summary

    Summary  Strong Q4 capped successful year  Achieved record revenue and EBIT  Improved profitability, particularly in Canada  Successfully acquired and integrated Bucyrus  Well positioned to drive value in 2013  Benefiting from full year of Bucyrus  Capturing strong demand for product support

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