Finning International Inc. · TSX:FTT
Finning International — Investor Presentation (December 2021)
12 slides from Finning International's investor presentation, Dec 3, 2021
Slide 1: Investor Presentation
Investor Presentation Scott Thomson President and CEO December 3, 2021 See slides 11 and 12 for important information on forward-looking information, currency, and non-GAAP financial measures
Slide 2: Finning Overview
Finning Overview Canada South America UK & Ireland Market Statistics(1) - FTT (TSX) Largest Caterpillar dealer Share price 34.39 Market Cap 5.5B Bolivia S&P/DBRS rating BBB+/high Unrivalled service since 1933 YT NU Annual dividend / share 0.86 NWT Dividend yield 2.5% Diversified by geography,
Slide 3: Simple Execution Plan
FINNING Simple Execution Plan REBUILT AND READY. —— LET'S DO THE WORK.
Slide 4: Drive Product Support
Drive Product Support Consolidated Product Support Revenue ($) + > Construction market share + Accelerated Chile greenfield + Oilsands stability and rebuilds + Growing CUBIQ - Canadian regulatory pressure - Chile political landscape 5-9% Product Support Revenue CAGR(1) CAGR(1) 2021 Base Construction
Slide 5: Drive Product Support – While Managing Margin and Competitive Pressures
Drive Product Support – While Managing Margin and Competitive Pressures Business Mix Operational Execution Data and Analytics Matured life-cycle commercial Proactive and accurate Focused on market share in governance inventory orders product support biased products Growing aftermarket market share –
Slide 6: The Next $50m+ of Fixed Cost Reductions – 2021+
The Next $50m+ of Fixed Cost Reductions – 2021+(1) People and Technology Productivity Facilities Productivity Supply Chain End-to-end spend management: Further back-office consolidation Further branch and office space procurement and business collaboration and efficiencies reduction to reduce price
Slide 7: We Have Set Up an Internal Competition for Re-Investment Capital
We Have Set Up an Internal Competition for Re-Investment Capital(1) Organic business development and acquisitions will be competing with share repurchases to attract capital Caterpillar Territories Rental & Used Maximum Uptime Opportunity and timing is not in our control Enhancing capabilities to dr
Slide 8: Q3 2021 Highlights
Q3 2021 Highlights Executing to Demonstrate Earnings Capacity Q3 2021 Summary Record third quarter EPS Product Support SG&A as a % of Revenue Inventory Net Revenue(1) Strong execution and improved operating leverage Q3 2021 vs Q3 2020 Q3 2021 Q3 2021 vs Q4 2020 Product support revenue growth a
Slide 9: Energy Transition Opportunities
Energy Transition Opportunities(1) Product Portfolio Natural Gas Copper and Lithium CNG, RNG, Hydrogen CAT® 3512E Dynamic Gas Blending Tier Cu 4 engine 7.2 Chile copper 9.6 Montney Shale natural 2027 production(2) 2030 gas production(3) Hydrogen-capable generators (hydrogen blending demo in Calg
Slide 10: Ahead of Schedule on EPS and ROIC Targets
Ahead of Schedule on EPS and ROIC Targets(1) Investor Day Mid-Cycle Targets (Q3 2021 – Q2 2022) Sustained Up-cycle Potential Net Revenue ($B) $7.1 - $7.5 Product Support Revenue CAGR Product Support Revenue CAGR 8% 5-9% Mining base and construction inflection 2021 Base SG&A (% of Net Revenue) 17% SG
Slide 11: 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 12: 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). Non-GAAP financial measure
Finning International — Investor Presentation (December 2021) on 6ix