Finning International Inc. · TSX:FTT

Finning International — Q2 2021 Earnings Presentation

11 slides from Finning International's earnings presentation, Aug 4, 2021

  1. Slide 1: Q2 2021 Results

    Q2 2021 Results Scott Thomson President and CEO Greg Palaschuk EVP and CFO August 4, 2021 See slides 10 and 11 for important information on forward-looking information, currency, and non-GAAP financial measures

  2. Slide 2: Highlights

    Highlights Equipment Backlog(1) Revenue Growth Adjusted ROIC (1) Dividend Increase at June 30, 2021 Q2 2021 vs Q1 2021 Q2 2021 to $0.90 per share annualized $1.4B New Equipment 47% 13.3% ~10% 4% Backlog build supports Product Up 330 bps vs Q1 2021; Improved mid-cycle mid-cycle market Support improve

  3. Slide 3: Q2 2021 Results

    Q2 2021 Results vs Q2 2020 (Adjusted) (1) vs Q1 2021 (Adjusted) (1) Q2 2021 Financial Statistics ($ Millions) Net Revenue 16 % Revenue 1,845 EBITDA 215 $1.7B 28 % Strong growth in new Net Revenue 1,705 Net Income 91 EBIT 137 Basic EPS $0.56 equipment sales EBITDA(1) 26 % Q2 2021 Summary $215M 83 % O

  4. Slide 4: Net Revenue

    Q2 2021 Net Revenue Net Revenue by Line of Business $ Millions Revenue Drivers 107 4 1,705  Strong revenue recovery in all regions, led by new equipment and product support 35 13  New equipment sales are driven by higher volumes in the 211 construction sector in all regions and large project deliv

  5. Slide 5: EBITDA

    Q2 2021 EBITDA EBITDA Q2 2021 Highlights $ Millions 122 (16 )  Higher gross profit driven by broad-based revenue recovery and (8) improved margins in all lines of business 215  Solid margins achieved by growing market share in models with most product support opportunity, improving deal execution,

  6. Slide 6: Financial Results – Canada

    Q2 2021 Financial Results – Canada Net Revenue EBITDA Return on Invested Capital $ Millions Adjusted, $ Millions, as % of Net Revenue Adjusted, 4 Quarter Average 13.6% 14.7% 20.0% 10.6% 15.0% 14.0% 879 150 129 10.0% 11.6% 773 10.8% 705 105 5.0% 0.0% 100 75 -5.0% -10.0% -15.0% 50 -20.0% -25.0% 0 -30.

  7. Slide 7: Financial Results – South America

    Q2 2021 Financial Results – South America Net Revenue EBITDA Return on Invested Capital $ Millions Adjusted, $ Millions, as % of Net Revenue Adjusted, 4 Quarter Average 12.8% 13.7% 100 20.0% 17.2% 512 9.8% 15.0% 482 71 10.0% 14.4% 469 75 61 5.0% 0.0% 11.2% 50 45 -5.0% -10.0% -15.0% 25 -20.0% -25.0%

  8. Slide 8: Financial Results – UK & Ireland

    Q2 2021 Financial Results – UK & Ireland Net Revenue EBITDA Return on Invested Capital $ Millions Adjusted, $ Millions, as % of Net Revenue Adjusted, 4 Quarter Average 314 7.9% 8.5% 32 4.9% 10.0% 12.9% 27 5.0% 214 24 0.0% 161 17 7.6% -5.0% -10.0% 16 -15.0% 4.6% 8 -20.0% 8 -25.0% 0 -30.0% Q2 2020 Q1

  9. Slide 9: On Track to Deliver Mid-Cycle Targets

    On Track to Deliver Mid-Cycle Targets(1) Simple Execution Plan Mid-Cycle (Q3 2021 – Q2 2022) Net Revenue ($B) $7.1 - $7.5 Product Support Revenue CAGR 8% SG&A (% of Net Revenue) 17% Reinvestment Capacity(2) ($M) $250 EPS >$2.00 ROIC(3) >15% Canada 17% South America 18% UK & Ireland 15% (1) This outl

  10. Slide 10: 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

  11. Slide 11: 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). Non-GAAP financial measure

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