Finning International Inc. · TSX:FTT
Finning International — Corporate Update (March 2005)
10 slides from Finning International's corporate update, March 2005
Slide 1: March 2005 Update
Wayne Bingham Executive Vice President and CFO Tom Merinsky Vice President Investor Relations March 2005 Update
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
Slide 3: 2004 Operating Highlights
2004 Operating Highlights Very strong market conditions in 2004 Record revenue levels = $4.2B (up 16% from ’03) Order book doubles from Dec ’04 ($420M to $835M) Record results at Finning (Canada) & Finning South America Hewden results continue to improve Finning (UK) - challenging ‘04, b
Slide 4: Canada - Outlook
Canada - Outlook Excellent business outlook - Mining (oil sands, metals & coal) - Construction (general & infrastructure) - Conventional oil & gas - Forestry - Pipelines Order backlog up three-fold vs. prior year New & used equipment inventory and rental fleet at high levels to manage extended
Slide 5: South America - Outlook
South America - Outlook 2004 sales-mix was dominated by lower margin new equipment sales EBIT margins set to improve after new-equipment warranty period Large future parts & service opportunity - requires investment and pressures EBIT margins through ’05 (absolute EBIT still at record levels)
Slide 6: UK Dealership - Outlook
UK Dealership - Outlook “Moving Closer to the Customer” program being implemented Management team changes Regional structure being implemented Outlook positive as activity levels picking up, order backlog almost doubles in last 6 months CAT fully engaged on market study and strategic plan
Slide 7: Hewden - Outlook
Hewden - Outlook Operating at plan levels to-date in ’05 Markets still very competitive, some modest price increases Customer Facing Project “One Hewden” strategy launched with customers in February Operational management team changes to be finalized in Q1 ‘05 Completion of first 11 rent
Slide 8: Global Pipeline Dealership
Global Pipeline Dealership A global dealership (unique in CAT world) 25% interest for Finning ~US$8 million investment for each partner (equipment contribution) Rental & sales of pipe-laying equipment Fleet size ~180 units (among the largest in the world) Benefits to Finning (Canada) P
Slide 9: CAT Pipelayers
CAT Pipelayers 9
Slide 10: Consolidated Outlook
Consolidated Outlook Strong growth driven by new equipment sales and growing customer service & parts revenues Strong BC, Alberta & Chilean economies support general construction equipment markets Major expansion & fleet replacement opportunities in oil sands and mining CAT price increases e
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