Finning International Inc. · TSX:FTT

Finning International — Q3 2022 Earnings Presentation

13 slides from Finning International's earnings presentation, Nov 8, 2022

  1. Slide 1: Q3 2022 Results

    Q3 2022 Results Scott Thomson Kevin Parkes Greg Palaschuk President and CEO EVP and COO EVP and CFO November 8, 2022 See slides 11 and 12 for important information on forward-looking information, currency, and specified financial measures, including non- GAAP financial measures

  2. Slide 2: Strong Execution and Continued Market Momentum Drive Record Results

    Strong Execution and Continued Market Momentum Drive Record Results Drive Product Support Reduce Costs Reinvest to Compound Product support SG&A as a % of revenue Q3 2022 vs Q3 2021 30 % net revenue (1) Q3 2022 16.7 % EPS LTM Q3 2022 $3.01 Leadership Position in Technologically Advanced Projects Rec

  3. Slide 3: President and CEO Succession

    President and CEO Succession Scott Thomson, outgoing president Kevin Parkes, currently EVP and and CEO COO, will assume the role of president and CEO Thoughtful and comprehensive succession planning 3

  4. Slide 4: Supporting Customers in a Dynamic Business Environment

    Supporting Customers in a Dynamic Business Environment Encouraging Market Backdrop Entering 2023 with a large and diverse backlog Record  Healthy demand conditions equipment  Customers are making commitments into 2023 and beyond  Constructive commodity prices backlog  Winning aftermarket and min

  5. Slide 5: Q3 2022 Results

    Q3 2022 Results vs Q3 2021 Q3 2022 Summary Net Revenue  Strong momentum in business activity across all regions $2.1B 20 %  Successful execution of product support growth strategy, supply chain management, and cost discipline drove record profitability and earnings  EBIT as % of net revenue at ~1

  6. Slide 6: Q3 2022 Net Revenue

    Q3 2022 Net Revenue Net Revenue by Line of Business All comparisons are to Q3 2021 results unless indicated otherwise $ Millions 277 10 2,107 Q3 2022 Revenue Drivers  New equipment sales up 8%, driven by mining deliveries in Canada 48 13 11 and construction deliveries in the UK, including HS2 1,748

  7. Slide 7: Q3 2022 EBITDA

    Q3 2022 EBITDA EBITDA All comparisons are to Q3 2021 results unless indicated otherwise $ Millions Q3 2022 EBITDA Drivers 120 (42)  Gross profit up 25% driven by net revenue growth and a higher 308 proportion of product support in the revenue mix  SG&A increase of 13% reflects workforce additions

  8. Slide 8: Q3 2022 Results – Canada

    Q3 2022 Results – Canada Net Revenue EBITDA Return on Invested Capital $ Millions $ Millions, as % of Net Revenue Adjusted, 4 Quarter Average 1,072 16.5% 16.1% 20.0% 18.2% 1,013 14.7% 16.9% 20.0% 200 172 15.3% 805 149 15.0% 10.0% 150 132 0.0% 100 10.0% -10.0% 50 -20.0% 5.0% 0 -30.0% 0.0% Q3 2021 Q2

  9. Slide 9: Q3 2022 Results – South America

    Q3 2022 Results – South America Net Revenue EBITDA Return on Invested Capital $ Millions $ Millions, as % of Net Revenue 4 Quarter Average 800 22.7% 692 13.7% 15.9% 12.5% 20.0% 120 20.3% 638 637 19.0% 87 110 10.0% 600 90 80 0.0% 60 400 -10.0% 30 -20.0% 200 0 -30.0% Q3 2021 Q2 2022 Q3 2022 Q3 2021 Q2

  10. Slide 10: Q3 2022 Results – UK & Ireland

    Q3 2022 Results – UK & Ireland Net Revenue EBITDA Return on Invested Capital $ Millions $ Millions, as % of Net Revenue 4 Quarter Average 9.0% 9.3% 9.1% 18.0% 16.6% 354 343 14.9% 14.8% 10.0% 305 40 33 32 5.0% 30 27 12.0% 0.0% -5.0% -10.0% 20 6.0% -15.0% -20.0% 10 -25.0% 0 0.0% -30.0% Q3 2021 Q2 2022

  11. 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

  12. 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

  13. Slide 13: 2023 Earnings Schedule

    2023 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 Q4 2022 February 6, 2023 February 7, 2023 10:00 AM Q1 2023 May 8, 2023 May 9, 2023 10:00 AM Q2 2023 August 8, 2023 August 9, 2023 10:

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