Finning International Inc. · TSX:FTT

Finning International — Q3 2021 Earnings Presentation

11 slides from Finning International's earnings presentation, Nov 9, 2021

  1. Slide 1: Q3 2021 Results

    Q3 2021 Results Scott Thomson President and CEO Greg Palaschuk EVP and CFO November 9, 2021 See slides 10 and 11 for important information on forward-looking information, currency, and non-GAAP financial measures

  2. Slide 2: Highlights

    Highlights Executing to Demonstrate Earnings Capacity Energy Transition Opportunities(2) Product Support SG&A as a % of Product Portfolio Revenue Inventory Net Revenue(1) Q3 2021 vs Q3 2020 Q3 2021 Q3 2021 vs Q4 2020  CAT® 3512E Dynamic Gas Blending Tier 4 engine 11% 17.8 % $150 M  Hydrogen-capabl

  3. Slide 3: Q3 2021 Results

    Q3 2021 Results vs Q3 2020 (Adjusted) (1) Q3 2021 Summary Net Revenue  Record third quarter EPS $1.7B 21 %  Strong execution and improved operating leverage  Product support revenue growth across all regions and market sectors  Higher new equipment sales led by strong construction markets EBITDA

  4. Slide 4: Net Revenue

    Q3 2021 Net Revenue Net Revenue by Line of Business $ Millions Q3 2021 Revenue Drivers 90 4 1,748  Higher new equipment sales driven by strong demand in construction 196 0 15 markets in all regions, mining deliveries in Chile, and HS2 deliveries in the UK 211  Product support revenue growth reflec

  5. Slide 5: EBITDA

    Q3 2021 EBITDA EBITDA $ Millions Q3 2021 EBITDA Drivers 80 (24)  Increase in gross profit driven by higher net revenue, higher used (4 ) 230 equipment margins, and improved rental utilization  SG&A up 7% on a 21% increase in net revenue from Q3 2020, reflecting cost savings and continued focus to

  6. Slide 6: Financial Results – Canada

    Q3 2021 Financial Results – Canada Net Revenue EBITDA Return on Invested Capital $ Millions Adjusted, $ Millions, as % of Net Revenue Adjusted, 4 Quarter Average 14.6% 14.7% 16.5% 20.0% 15.3% 15.0% 16.0% 14.0% 879 150 129 132 10.0% 805 728 106 5.0% 12.0% 10.8% 0.0% 100 -5.0% -10.0% 8.0% -15.0% 50 -2

  7. Slide 7: Financial Results – South America

    Q3 2021 Financial Results – South America Net Revenue EBITDA Return on Invested Capital $ Millions Adjusted, $ Millions, as % of Net Revenue Adjusted, 4 Quarter Average 700 19.0% 638 13.7% 20.0% 12.2% 12.5% 15.0% 17.2% 600 100 10.0% 80 512 71 5.0% 479 11.3% 500 75 59 0.0% -5.0% 400 50 -10.0% -15.0%

  8. Slide 8: Financial Results – UK & Ireland

    Q3 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% 9.0% 14.9% 40 305 16.0% 10.0% 5.0% 12.9% 236 27 27 32 12.0% 0.0% 24 -5.0% 18 16 8.0% -10.0% 3.9% -15.0% 8 4.0% -20.0%

  9. Slide 9: Ahead of Schedule on EPS and ROIC Targets

    Ahead of Schedule on EPS and ROIC Targets(1) Investor Day Mid-Cycle Targets (Q3 2021 – Q2 2022) Simple Execution Plan 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 >15% Canada 17% South America 18% UK & Ire

  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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