Finning International Inc. · TSX:FTT

Finning International — CIBC Western Institutional Investor Conference 2021

13 slides from Finning International's conference presentation, Jan 22, 2021

  1. Slide 1: Investor Presentation

    INVESTOR PRESENTATION Scott Thomson, President and CEO, Finning International CIBC Western Institutional Investor Conference January 22, 2021 See slides 12 & 13 for important information on forward-looking information and non-GAAP financial measures in this presentation. Monetary amounts referred to

  2. Slide 2: Finning Overview

    Finning Overview Market Statistics(1) - FTT (TSX)  Largest Caterpillar dealer Share price 29.50  Unrivalled service since 1933 Market Cap 4.8M S&P/DBRS rating BBB(+*-/high)  Diversified by geography, customer base, product and sector Annual dividend / share 0.82  ~12,000 employees Dividend yield

  3. Slide 3: Executing Our Strategy

    Executing Our Strategy  Accelerating growth in product support revenue Focus on  Driving down cost base to improve competitiveness Improving  Delivering solid free cash flow(1) to invest in opportunities that improve earnings capacity ROIC(1) through the cycle, return capital to shareholders, and

  4. Slide 4: Q3 2020 Results

    Q3 2020 Results vs Q3 2019 vs Q2 2020 Q3 2020 Financial Statistics ($ Millions) Net Revenue(1) Revenue 1,553 EBITDA(1) 215 $1.4B 21 % 8% Net Revenue 1,443 Net Income 88 EBIT 138 Basic EPS $0.54 Operational Highlights Adjusted EBITDA(1) Customer Loyalty Total Injury Frequency 13 % 52 % Q3/20 vs Q3/19

  5. Slide 5: Q3 2020 Financial Results – Canada

    Q3 2020 Financial Results – Canada Net Revenue EBITDA as % of Net Revenue Return on Invested Capital $ Millions Adjusted Adjusted(1), 4 Quarter Average 14.6% 978 12.8% 15.0% 10.6% 705 728 11.6% 10.8% Q3 2019 Q2 2020 Q3 2020 Q3 2019 Q2 2020 Q3 2020 Q3 2019 Q2 2020 Q3 2020 8.5% 4.0% 8.1% Adjusted EBIT

  6. Slide 6: Q3 2020 Financial Results – South America

    Q3 2020 Financial Results – South America Net Revenue EBITDA as % of Net Revenue Return on Invested Capital $ Millions Adjusted Adjusted, 4 Quarter Average 12.2% 577 11.2% 11.2% 11.3% 469 479 9.8% 9.0% Q3 2019 Q2 2020 Q3 2020 Q3 2019 Q2 2020 Q3 2020 Q3 2019 Q2 2020 Q3 2020 7.8% 5.1% 8.2% Adjusted EB

  7. Slide 7: Q3 2020 Financial Results – UK & Ireland

    Q3 2020 Financial Results – UK & Ireland Net Revenue EBITDA as % of Net Revenue Return on Invested Capital $ Millions Adjusted Adjusted, 4 Quarter Average 264 14.1% 8.3% 7.9% 236 161 4.9% 4.6% 3.9% Q3 2019 Q2 2020 Q3 2020 Q3 2019 Q2 2020 Q3 2020 Q3 2019 Q2 2020 Q3 2020 5.1% -1.0% 4.1% Adjusted EBIT

  8. Slide 8: Finning Autonomy

    Finning Autonomy 20%+ Productivity Improvement vs Imperial Oil Conventional Fleet Kearl (oil sands) SCALABLE ~100 trucks and 250+ auxiliary vs limited 797F scalability of competitors’ offering Fleet Size 25 trucks As at Dec 2020 INTEROPERABLE with conventional and competitors’ fleets Teck  Highland

  9. Slide 9: Advanced Digital and e-Commerce Capabilities

    Advanced Digital and e-Commerce Capabilities 80% CAT Assets Connected Technology – a great risk mitigator in a crisis in Finning territories Technology adoption by customers is accelerating  Machine Condition Monitoring  eCommerce on www.parts.cat.com  Integrated Knowledge Centers (IKCs)  Integr

  10. Slide 10: Free Cash Flow, Balance Sheet, Capital Allocation

    Free Cash Flow, Balance Sheet, Capital Allocation Free Cash Flow ($ Millions) Q3 2020 Highlights 700 578 600  Strong working capital management 500 483 441  Monetized surplus inventory in South America 370 400 325  Continue to expect net capex and rental fleet spend 300 in the $90-140 million ran

  11. Slide 11: Q4 2020 and 2021 Considerations

    Q4 2020 and 2021 Considerations  Key commodity prices have recovered to constructive levels Modest Market  Product support activity continues to improve Recovery  Significant mining and infrastructure projects underpin 2021 revenue outlook  Planning for revenue recovery and purchasing inventory;

  12. Slide 12: Disclosures

    Disclosures Forward-looking information This presentation includes “forward-looking information” (as defined in 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 turn out to

  13. Slide 13: Disclosures

    Disclosures Forward-looking information (continued) We caution readers that the risks described in the AIF and MD&A are not the only risks that could impact the company. We cannot accurately predict the full impact that COVID-19 will have on our business, results of operations, financial condition o

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