Finning International Inc. · TSX:FTT
Finning International — TD Securities Engineering & Construction Conference 2023
12 slides from Finning International's conference presentation, Mar 29, 2023
Slide 1: Investor Presentation
Investor Presentation Greg Palaschuk EVP and CFO TD Securities Engineering & Construction Conference, Toronto March 29, 2023 See slides 11 and 12 for important information on forward-looking information, currency, and specified financial measures, including non- GAAP financial measures
Slide 2: Finning Overview
Finning Overview Canada South America UK & Ireland Largest Caterpillar dealer Market Statistics (1) - FTT (TSX) Share price 32.42 Bolivia ‘Servicing what we sell’ for 90 years YT NU Market Cap 4.9B NWT S&P/DBRS rating BBB+/high Annual dividend / share 0.94 Diversified by geography, customer ba
Slide 3: Strong Execution in 2022
Strong Execution in 2022 Drive Product Support Reduce Costs Reinvest to Compound 2022 Product Support Revenue 2022 SG&A as a % of net revenue (1) 2022 EPS 24 % to $4.6B 120 bps to 17.7 % 49 % to $3.25 from 2021 from 2021 from 2021 Adjusted EPS (1) Smooth CEO Transition, Continue to Execute on Our St
Slide 4: Continued Momentum to Start 2023
Continued Momentum to Start 2023 (1) Constructive Mid-Cycle Cost and Continued Momentum Demand Environment Capital Model to Start 2023 Favourable commodity prices Further productivity gains Record backlog maintained despite strong sales in Q4 Strength in mining, energy, Optimizing working
Slide 5: Canada - Strength in Mining, Energy, and Infrastructure
Canada - Strength in Mining, Energy, and Infrastructure (1) Constructive commodity prices Technicians Construction CVAs CAT Truck Population Improved customers’ capital budgets At Dec 31, 2022 2022, at point of sale Ultra-class (2), at Dec 31, 2022 Renewal of aging fleets 1,500 92% 407 Stron
Slide 6: South America - High Quality, High Return Business
South America - High Quality, High Return Business High proportion of contracted product support Technicians CAT Truck Population Contracts US$ denominated; payment obligations inflation linked At Dec 31, 2022 Ultra-class (3), at Dec 31, 2022 Strategic wins with BHP, Teck, Codelco 2,960 277
Slide 7: Strong Copper Fundamentals and Significant Mining Investment Potential
Strong Copper Fundamentals and Significant Mining Investment Potential Chile Copper Production and Capital Investment Projections (1)(2) Chile copper production growth accelerating Capital Investment (1) 9.0 (USD, 2022 – 2031) 8.0 7.1 3.2% $74B 7.0 6.7 6.6 CAGR (2021-2030) Million Tonnes 6.0 5.9 5.6
Slide 8: UK & Ireland - Diversified Construction and Power Systems Market
UK & Ireland - Diversified Construction and Power Systems Market HS2 equipment sold Product support growth (1) Technicians Growing demand for power systems, At Dec 31, 2022 including data centres (1) > £ 200 M HS2 activity ramp up Captured ~40% of total industry High machine utilization across
Slide 9: Q4 2022 Results
Q4 2022 Results vs Q4 2021 Q4 2022 Summary Net Revenue Large mining deliveries and strong product support growth rates $2.4B 34 % EBIT as % of net revenue (1) of 9.0%, led by South America at 11.4% and Canada at 11.0%, with UK & Ireland at 4.4% Free cash flow (2) generation of $332 million; ne
Slide 10: Sustainability at Finning
Sustainability at Finning Reducing our GHG Emissions Helping Customers Decarbonize Strengthening Safety and DE&I Culture Absolute GHG Emissions Reduction Target (1) Caterpillar Low Emission Products Reducing Significant Incident Frequency Electric Drive and Autonomous Mining Trucks 60 % 2022 vs 2021
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). These variances and ratios
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