Finning International Inc. · TSX:FTT
Finning International — Q1 2022 Earnings Presentation
11 slides from Finning International's earnings presentation, May 10, 2022
Slide 1: Q1 2022 Results
Q1 2022 Results Scott Thomson President and CEO Greg Palaschuk EVP and CFO May 10, 2022 See slides 9 and 10 for important information on forward-looking information, currency, and specified financial measures, including non- GAAP financial measures
Slide 2: Q1 2022 Highlights
Q1 2022 Highlights Executing on Our Strategic Plan 5th Annual Sustainability Report Drive Product Support Reduce Costs Reinvest to Compound Product support revenue EBIT as a % of net revenue (1) Q1 2022 vs Q1 2021 Q1 2022 vs Q1 2021 Adjusted (1) New Absolute GHG Emissions Target (2) 16 % 180 bps $61
Slide 3: Q1 2022 Results
Q1 2022 Results vs Q1 2021 Q1 2022 Summary Net Revenue (1) Upcycle demand conditions across all regions and sectors $1.7B 18 % Strong execution of product support growth strategy All regions demonstrated improved operating leverage vs Q1 2021 Continued management of supply constraints and in
Slide 4: Q1 2022 Net Revenue
Q1 2022 Net Revenue Net Revenue by Line of Business Equipment Backlog $ Millions $ Millions 140 7 1,736 2,055 1,860 124 (24) 20 1,205 1,469 Q1 2021 Q4 2021 Q1 2022 Power Systems $1,000 ~15% Q1 2021 New Used Rental Product Fuel and Q1 2022 Mining Equipment Equipment Support Other ~30% Expected Timing
Slide 5: Q1 2022 EBITDA
Q1 2022 EBITDA EBITDA Q1 2022 EBITDA Drivers $ Millions 88 (37) Increase in gross profit driven by higher net revenue, strong rental utilization, and improved equipment margins 1 (1) 221 Increase in SG&A reflected additional technical workforce and higher variable costs to support revenue growth
Slide 6: Q1 2022 Results – Canada
Q1 2022 Results – Canada Net Revenue EBITDA Return on Invested Capital $ Millions Adjusted, $ Millions, as % of Net Revenue Adjusted (1), 4 Quarter Average 13.6% 15.5% 14.3% 20.0% 20.0% 17.4% 15.0% 16.9% 914 884 150 142 127 15.0% 10.0% 773 105 5.0% 100 0.0% 10.8% -5.0% 10.0% -10.0% 5.0% -15.0% 50 -2
Slide 7: Q1 2022 Results – South America
Q1 2022 Results – South America Net Revenue EBITDA Return on Invested Capital $ Millions $ Millions, as % of Net Revenue Adjusted, 4 Quarter Average 700 12.8% 14.0% 15.4% 20.0% 21.7% 20.3% 15.0% 582 571 88 600 100 81 10.0% 5.0% 482 14.4% 500 61 75 0.0% -5.0% 400 50 -10.0% -15.0% 300 25 -20.0% -25.0%
Slide 8: Q1 2022 Results – UK & Ireland
Q1 2022 Results – UK & Ireland Net Revenue EBITDA Return on Invested Capital $ Millions $ Millions, as % of Net Revenue Adjusted, 4 Quarter Average 40 7.9% 8.3% 8.7% 18.0% 15.7% 281 14.8% 10.0% 278 5.0% 32 214 23 24 12.0% 0.0% 24 -5.0% 17 -10.0% 7.6% 16 6.0% -15.0% -20.0% 8 -25.0% 0 0.0% -30.0% Q1 2
Slide 9: Disclosures
Disclosures Forward-looking information This presentation includes “forward-looking information” (as defined in applicable Canadian securities legislation) that is based on expectations, estimates and projections that we believe are reasonable as of the date of this presentation, but may ultimately
Slide 10: Disclosures
Disclosures Currency Monetary amounts referred to in this presentation are in Canadian dollars unless noted otherwise. All variances and ratios in this presentation are based on the functional currency of each operation (Canada: CAD, South America: USD, UK & Ireland: GBP). These variances and ratios
Slide 11: 2022 Earnings Schedule
2022 Earnings Schedule All dates and times are preliminary and subject to change Release Date Investor Call Time Quarter Investor Call Date after market close Eastern Q2 2022 August 2, 2022 August 3, 2022 10:00 AM Q3 2022 November 7, 2022 November 8, 2022 10:00 AM Q4 2022 February 6, 2023 February 7
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