Finning International Inc. · TSX:FTT

Finning International — CIBC Whistler Institutional Investor Conference 2016

8 slides from Finning International's conference presentation, Jan 21, 2016

  1. Slide 1: Investor Presentation

    INVESTOR PRESENTATION Scott Thomson, President and CEO, Finning International CIBC Whistler Institutional Investor Conference January 21, 2016

  2. Slide 2: 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

  3. Slide 3: Finning Overview

    Finning Overview  World’s largest Caterpillar dealer - selling, renting and providing Market Statistics(1) parts and service for Caterpillar equipment and engines Ticker FTT (TSX)  Serving customers for over 80 years and delivering value to Share Price 17.88 public shareholders for over 45 years %

  4. Slide 4: Embracing the Trough

    Embracing the Trough Decisive actions to navigate downturn and improve business for long-term Canada  Workforce  1,100 people or 20% in 2015  Accelerated facility optimization  27 closures / consolidations by late 2016  Footprint  ~20%  Operational excellence agenda is transforming the busine

  5. Slide 5: Transforming Canadian Business

    Transforming Canadian Business Progress in challenging environment Operational Priorities Commitments: ∆ 2013-2016 Canada Progress Highlights  Safety excellence TRIF(1)(2)  44% from Dec Safety and Talent Management  Right people in right roles 2013 to 0.88 in Dec 2015  Talent development Supply

  6. Slide 6: Canada's Sustainable Cost Model

    Canada’s Sustainable Cost Model Permanent SG&A cost reductions $150M SG&A Cost Savings Canada’s SG&A Costs Non-volume related (2014-2016) 2015 Variable Fixed $15M Organizational structure ~20% ~80% transformation $80M Process improvement initiatives $55M Facilities and other SG&A initiatives Permane

  7. Slide 7: Resilient Business Model

    Resilient Business Model Consistently strong cash flows $ millions 2012 2013 2014 2015 LTM(1) EBITDA adjusted(2) 701 736 747 661 Net rental expenditures (93) (73) (35) (28) Net capital expenditures (113) (74) (63) (48) Free cash flow – FCF (37) 441 483 363 Net debt to EBITDA ratio Dividends as % of

  8. Slide 8: Non-GAAP Measures and Reconciliation

    Non-GAAP Measures and Reconciliation  EBIT: earnings before finance costs and income taxes  EBITDA: earnings before finance costs, income taxes, depreciation and amortization; EBITDA is commonly regarded as an indirect measure of operating cash flow  Free cash flow (FCF): cash flow provided by (u

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