Finning International Inc. · TSX:FTT
Finning International — CIBC Whistler Institutional Investor Conference 2016
8 slides from Finning International's conference presentation, Jan 21, 2016
Slide 1: Investor Presentation
INVESTOR PRESENTATION Scott Thomson, President and CEO, Finning International CIBC Whistler Institutional Investor Conference January 21, 2016
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
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 %
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
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
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
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
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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