Finning International Inc. · TSX:FTT

Finning International — Corporate Update (March 2005)

10 slides from Finning International's corporate update, March 2005

  1. Slide 1: March 2005 Update

    Wayne Bingham Executive Vice President and CFO Tom Merinsky Vice President Investor Relations March 2005 Update

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements This presentation contains forward-looking statements and information which reflect the current view of Finning International Inc. ("Finning" or the "Company") with respect to future events and financial performance. Any such forward-looking statements are subject to risks

  3. Slide 3: 2004 Operating Highlights

    2004 Operating Highlights ƒ Very strong market conditions in 2004 ƒ Record revenue levels = $4.2B (up 16% from ’03) ƒ Order book doubles from Dec ’04 ($420M to $835M) ƒ Record results at Finning (Canada) & Finning South America ƒ Hewden results continue to improve ƒ Finning (UK) - challenging ‘04, b

  4. Slide 4: Canada - Outlook

    Canada - Outlook ƒ Excellent business outlook - Mining (oil sands, metals & coal) - Construction (general & infrastructure) - Conventional oil & gas - Forestry - Pipelines ƒ Order backlog up three-fold vs. prior year ƒ New & used equipment inventory and rental fleet at high levels to manage extended

  5. Slide 5: South America - Outlook

    South America - Outlook ƒ 2004 sales-mix was dominated by lower margin new equipment sales ƒ EBIT margins set to improve after new-equipment warranty period ƒ Large future parts & service opportunity - requires investment and pressures EBIT margins through ’05 (absolute EBIT still at record levels)

  6. Slide 6: UK Dealership - Outlook

    UK Dealership - Outlook ƒ “Moving Closer to the Customer” program being implemented ƒ Management team changes ƒ Regional structure being implemented ƒ Outlook positive as activity levels picking up, order backlog almost doubles in last 6 months ƒ CAT fully engaged on market study and strategic plan

  7. Slide 7: Hewden - Outlook

    Hewden - Outlook ƒ Operating at plan levels to-date in ’05 ƒ Markets still very competitive, some modest price increases ƒ Customer Facing Project ƒ “One Hewden” strategy launched with customers in February ƒ Operational management team changes to be finalized in Q1 ‘05 ƒ Completion of first 11 rent

  8. Slide 8: Global Pipeline Dealership

    Global Pipeline Dealership ƒ A global dealership (unique in CAT world) ƒ 25% interest for Finning ƒ ~US$8 million investment for each partner (equipment contribution) ƒ Rental & sales of pipe-laying equipment ƒ Fleet size ~180 units (among the largest in the world) ƒ Benefits to Finning (Canada) ƒ P

  9. Slide 9: CAT Pipelayers

    CAT Pipelayers 9

  10. Slide 10: Consolidated Outlook

    Consolidated Outlook ƒ Strong growth driven by new equipment sales and growing customer service & parts revenues ƒ Strong BC, Alberta & Chilean economies support general construction equipment markets ƒ Major expansion & fleet replacement opportunities in oil sands and mining ƒ CAT price increases e

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