Finning International Inc. · TSX:FTT

Finning International — CIBC Western Institutional Investor Conference 2020

13 slides from Finning International's conference presentation, Jan 29, 2020

  1. Slide 1: Investor Presentation

    INVESTOR PRESENTATION Scott Thomson, President and CEO, Finning International Amanda Hobson, SVP Investor Relations and Treasury, Finning International CIBC Western Institutional Investor Conference Banff, January 29, 2020

  2. Slide 2: 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 management believes are reasonable as of the date of this presentation, but may ul

  3. Slide 3: Finning Overview

    Finning Overview  Largest Caterpillar dealer Market Statistics(1) - FTT (TSX) Share price 24.53  Unrivalled service since 1933 Market Cap 4.0B S&P/DBRS rating BBB(+/high)  Diversified customer base Annual dividend / share 0.82  ~13,200 employees Dividend yield 3.3% Financial Statistics - LTM(2)

  4. Slide 4: Strategic Framework

    Strategic Framework PURPOSE VISION VALUES We believe in partnering and Leveraging our global expertise and We are trusted innovating to build and power insight, we are a trusted partner in We are collaborative a better world. transforming our customers’ performance. We are innovative We are passiona

  5. Slide 5: Strategic Focus Areas

    Strategic Focus Areas CAPTURE GROWTH  Ultra-class mining vehicles - autonomy, electric drive Lead Mining  Integrated Knowledge Centres (IKCs)  Mining fleet replacement Market Share Customer  Strong alignment with Caterpillar Loyalty Grow Construction  Customer Value Agreements (CVAs) Product Su

  6. Slide 6: Finning Canada – Successful Transformation To Date

    Finning Canada – Successful Transformation To Date Improved financial performance by controlling the controllables through a low amplitude up-cycle (1) Canada’s Financial Performance – 2017 to Q3 2019 Net revenue CAGR(3) 2017 to LTM ended Sep 30, 2019 14% Adjusted SG&A as % of net revenue(2) 340 bps

  7. Slide 7: Finning Canada - Growth Opportunities

    Finning Canada - Growth Opportunities KEY GROWTH DRIVERS Significant Infrastructure Opportunities Infrastructure Opportunities Location Project Name Investment (C$B) Markets Mining Fleet Replacement Kitimat, BC LNG Canada ~40 Power Systems Opportunities Vancouver International Vancouver, BC Airport

  8. Slide 8: Finning South America – Focused on Improving Results

    Finning South America – Focused on Improving Results Close ROIC gap with Canada and generate sustainable returns reflective of risk profile Macro-Economic Catalysts Performance Drivers Copper price US-China trade resolution New leadership up 9% in Q4/19 Social stability in Chile GDP contracted in ER

  9. Slide 9: Autonomy

    Finning Autonomy 20%+ Productivity Improvement vs Imperial Oil Conventional Fleet Kearl (oil sands) SCALABLE ~100 trucks and 250+ auxiliary 797F vs limited from competition Fleet Size 12 trucks As at Jan 2020 INTEROPERABLE with conventional and competitors’ fleets Teck  Highland Valley Copper (Cana

  10. Slide 10: Outlook

    Outlook GROWTH OPPORTUNITIES Low-Growth Environment Infrastructure investment (e.g. LNG, TMX)  Challenging market conditions  Flat revenue in 2020 vs 2019 CANADA Product support (e.g. IKC1, rebuilds, CVAs2)  Weakness in new equipment offset by continued growth in product support Autonomy adoption

  11. Slide 11: Capital Allocation

    Capital Allocation Cumulative Capital Allocation – 2013 to 2018 Cumulative Free Cash Flow – 2013 to 2018 ($ millions) 3,000 560 Share repurchases Dividends Acquisitions 2,500 425 ~$1.9B 2,000 725 Retained cash Reinvested 1,500 in the business Debt repayment $985 M 200 1,000 240 400 Returned to 500 s

  12. Slide 12: Appendix

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  13. Slide 13: UK & Ireland Transformation and Parallels to Canada

    UK & Ireland Transformation and Parallels to Canada Transformation through a relentless focus on all critical ROIC dimensions (1) UK & Ireland’s Improved Financial Performance – Q1 2016 to Q1 2018 Revenue CAGR 18% Revenue growth well in excess of GDP Adjusted SG&A Network reconfiguration, leveraged

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