Finning International Inc. · TSX:FTT

Finning International — Investor Presentation (October 2013)

18 slides from Finning International's investor presentation, Oct 23, 2013

  1. Slide 1: Investor Presentation: OEM Remanufacturing

    Investor Presentation OEM Remanufacturing October 23, 2013

  2. Slide 2: Investor Presentation - Mauk Breukels

    Investor Presentation Mauk Breukels, VP Investor Relations and Corporate Affairs October 23, 2013

  3. Slide 3: 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

  4. Slide 4: Investor Presentation - Juan Carlos Villegas, EVP and COO

    Investor Presentation Juan Carlos Villegas, EVP and COO October 23, 2013

  5. Slide 5: Finning International Inc. (TSX:FTT)

    Finning International Inc. (TSX:FTT)  World’s largest Caterpillar dealer:  New equipment and engines sales  Used equipment sales Yukon The Northwest  Products support / parts and service Territories  Equipment rental Fort McMurray  Main industries: British Columbia Alberta  Mining (oil sands,

  6. Slide 6: South America Update

    South America Update  Mining activity softening  Producers are reducing operating costs, delaying equipment purchasing decisions  Equipment utilization remains solid as production levels maintained  Expect growth in product support but at a slower rate compared to 2012  Bidding on a number of m

  7. Slide 7: UK and Ireland Update

    UK and Ireland Update  Continued macroeconomic challenges  Market share opportunities in construction and power systems  Soft market conditions and uncertainty around product support in coal mining  Cost controls in place  Profitability upside when market conditions improve 7

  8. Slide 8: Financial Outlook

    Financial Outlook  2013 revenues expected to be modestly higher than in 2012, but at very low end of 0 to 10% range  Expect lower new equipment sales in 2013 compared to 2012  Soft market conditions for mining equipment (including oil sands)  Active construction and power systems markets  Expec

  9. Slide 9: Investor Presentation - Dave Primrose

    Investor Presentation Dave Primrose, EVP Mining, Construction and Forestry October 23, 2013

  10. Slide 10: Finning Canada

    Finning Canada  2012 revenue = $3.3 billion  2012 EBIT = $231 million Northwest  Employees: ~5,800 Territories  Industries: Yukon Western Canada  Mining (including oil sands)  Construction  Power systems Alberta Fort McMurray  Petroleum / Oil & Gas (4 branches + Fort McKay) British Columbia

  11. Slide 11: Canada Revenue Profile

    Canada Revenue Profile Revenue Product Support New Equipment by Line of Business Revenue by Industry Sales by Industry Industrial & Used Rental Power Systems Agriculture 3% Forestry 5% Equipment 9% 5% 5% Government 10% New Mining Equipment Construction Petroleum 28% 34% 28% 11% Product Mining Suppor

  12. Slide 12: Canada Update

    Canada Update  Slowdown in mining impacting equipment sales and product support  Pleased with progress on Bucyrus  Slightly stronger activity in construction and forestry compared to 2012  Significant opportunities to improve profitability and customer loyalty  Market share in non-mining  Supp

  13. Slide 13: Investor Presentation - Chris Goodwin, OEM Remanufacturing

    Investor Presentation Chris Goodwin, VP Operation Services, OEM Remanufacturing October 23, 2013

  14. Slide 14: Vital Statistics

    Vital Statistics  Division of Finning International  Primary focus is Finning Canada product support  Mining and heavy construction  365,000 square foot purpose built Caterpillar      facility  550+ employees  Two shift operation  Fully integrated facility  Investments in inspection, sa

  15. Slide 15: The Reman Business Model

    The Reman Business Model End-of-life Advanced salvage New part Assemble component technology content and test Return end-of-life components to same as new condition in a manufacturing environment Profitability consistent with traditional product support business 15

  16. Slide 16: Value Proposition

    Value Proposition  Reman components reduce equipment owning and operating costs  Typically 50% to 75% the cost of new components  Critical customer requirements  Availability  Quality and reliability  Cost efficiency  Supporting services  Finning Canada mining and heavy construction focus 

  17. Slide 17: OEM's 2013 Areas of Focus

    OEM’s 2013 Areas of Focus  Safety remains a core value  Goal is a world-class safety culture  Improved safety performance in 2013  TRIF down 40% YoY  Operational Excellence  Continued progress in Six Sigma and lean manufacturing  Ongoing focus on waste reduction  Financial performance  Incr

  18. Slide 18: Notable Changes at OEM (YoY)

    Notable Changes at OEM (YoY)  Safety  Hard hats now mandatory PPE  Continued operational improvements  New Fluorescent lighting fixtures  Brighter, environmentally friendly, lower operating cost  New CNC (Computer Numerical Control) machinery and other tooling  Safer, enhanced capability, imp

Finning International — Investor Presentation (October 2013) on 6ix