Finning International Inc. · TSX:FTT
Finning International — Scotiabank Transportation and Industrials Conference 2019
9 slides from Finning International's conference presentation, Nov 19, 2019
Slide 1: Investor Presentation
INVESTOR PRESENTATION Kevin Parkes, President, Finning Canada Greg Palaschuk, SVP Finance, Finning Canada Scotiabank Transportation and Industrials Conference Toronto, November 19, 2019
Slide 2: 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 management believes are reasonable as of the date of this presentation, but may ul
Slide 3: Finning Overview
Finning Overview Largest Caterpillar dealer Market Statistics(1) - FTT (TSX) Share price 24.47 Unrivalled service for over 85 years Market Cap 4.0B Diversified customer base S&P/DBRS rating BBB(+/high) Annual dividend / share 0.82 ~12,800 employees Dividend yield 3.4% Financial Statistics -
Slide 4: UK & Ireland Transformation and Parallels to Canada
UK & Ireland Transformation and Parallels to Canada Transformation through a relentless focus on all critical ROIC dimensions (1) UK & Ireland’s Improved Financial Performance – Q1 2016 to Q1 2018 Revenue CAGR 18% Revenue growth well in excess of GDP Adjusted SG&A Network reconfiguration, leveraged
Slide 5: Finning Canada – Successful Transformation To Date
Finning Canada – Successful Transformation To Date Improved financial performance by controlling the controllables through a low amplitude up-cycle (1) Canada’s Financial Performance – 2017 to Q3 2019 Net revenue(2) CAGR 2017 to LTM 2019 14% Adjusted SG&A as % of net revenue(2) 340 bps Adjusted EBIT
Slide 6: Profitable Growth Efficiency – Priority Value Drivers
Finning Canada - Priority Value Drivers Mining Leadership Profitable Growth Lowest cost per ton; autonomy adoption; 797 enhancements Expand Exchange (OEM) Growing component exchange business through process and capability improvements Product Support / Performance Solutions Embracing technology to c
Slide 7: Finning Canada - Growth Opportunities
Finning Canada - Growth Opportunities KEY GROWTH DRIVERS Largest Infrastructure Opportunities Infrastructure Opportunities Location Project Name Investment (C$B) Markets Mining Fleet Replacement Power Systems Opportunities Kitimat, BC LNG Canada ~40 Rebuilds Vancouver International Vancouver, BC Air
Slide 8: Finning Canada - Autonomy
Finning Canada - Autonomy 20%+ Productivity Improvement vs Imperial Oil Conventional Fleet Kearl (oil sands) SCALABLE ~100 trucks and 250+ auxiliary 797F vs limited from competition Fleet Size 10 trucks As at Nov 2019 INTEROPERABLE with conventional and competitors’ fleets Teck RETROFITTABLE Highlan
Slide 9: Capital Allocation
Capital Allocation Cumulative Capital Allocation – 2013 to 2018 Cumulative Free Cash Flow – 2013 to 2018 ($ millions) 3,000 560 Share repurchases Dividends Acquisitions 2,500 425 ~$1.9B 2,000 240 Retained cash 725 1,500 Debt repayment Reinvested in the business $1,225 M 1,000 200 400 500 Returned to
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