Finning International Inc. · TSX:FTT

Finning International — Investor Presentation (March 2016)

12 slides from Finning International's investor presentation, Mar 29, 2016

  1. Slide 1: Investor Presentation

    INVESTOR PRESENTATION Scott Thomson, President and CEO Mauk Breukels, VP Investor Relations Toronto, Montreal March 29-31, 2016

  2. Slide 2: Forward Looking Information

    Forward Looking Information This report contains statements about the Company’s business outlook, objectives, plans, strategic priorities and other statements that are not historical facts. A statement Finning makes is forward-looking when it uses what the Company knows and expects today to make a s

  3. Slide 3: Finning Overview

    Finning Overview  World’s largest Caterpillar dealer - selling, renting and providing Market Statistics(1) parts and service for Caterpillar equipment and engines Ticker FTT (TSX)  Serving customers for over 80 years and delivering value to Share price 18.96 public shareholders for over 45 years %

  4. Slide 4: Compelling Value Proposition

    Compelling Value Proposition Great products and territories  Aligned with Caterpillar – world’s best heavy equipment company  Operating in high-quality regions with significant long-term growth opportunities Resilient business model and cost reductions support consistent EBITDA margin  Machine po

  5. Slide 5: Transforming Canadian Business

    Transforming Canadian Business Progress in challenging environment Operational Priorities Commitments: ∆ 2013-2016 Canada Progress Highlights  Safety excellence TRIF(1)(2)  44% from Dec Safety and Talent Management  Right people in right roles 2013 to 0.88 in Dec 2015  Talent development Supply

  6. Slide 6: Sustainable Cost Structure

    Sustainable Cost Structure Decisive actions to navigate downturn and transform business for long-term Workforce Reductions(1) Canada’s $150M SG&A Cost Savings Non-volume related (2014 - 2016)   16% since December 2014   20% since peak (July 2013) $15M Optimized organizational structure Facility

  7. Slide 7: Resilient Business Model

    Resilient Business Model Relatively consistent EBITDA(1) and strong cash flows conversion Capital Discpline $ millions, except where specified 2012 2013 2014 2015  Rental investment flexible to EBITDA(1) 701 737 749 604 market demand Net rental expenditures (93) (73) (35) (24)  Any increase in cap

  8. Slide 8: Construction Opportunities

    Construction Opportunities Selected Western Canadian infrastructure projects Infrastructure Opportunities Location Completion Estimated Cost ($B) British Columbia LNG - Pacific Northwest/PETRONAS Lelu Island - 10.0 BC Hydro Site C Dam - Clean Energy Project Ft. St. John 2020 8.8 LNG Export Terminal

  9. Slide 9: Site C

    Site C Finning to supply equipment for BC Hydro’s Site C Clean Energy Project  Peace River Hydro Partners: ACCIONA Infrastructure Canada Inc., Petrowest Corporation, and Samsung C&T Canada Ltd.  160 pieces of equipment, including:  35 Caterpillar 773 off-highway trucks  50 Caterpillar 745 articu

  10. Slide 10: Key Takeaways

    Key Takeaways  Resilient business model and cost reductions support consistent EBITDA margin  Expect weak Q1, then strengthening throughout the year  Only partial benefit from workforce reductions announced in February 2016  Seasonality - Q1 EBITDA margin consistently below annual EBITDA margin

  11. Slide 11: Appendix

    APPENDIX Toronto, Montreal March 29-31, 2016

  12. Slide 12: Non-GAAP Measures and Significant Items

    Non-GAAP Measures and Significant Items  EBIT: earnings before finance costs and income taxes  EBITDA: earnings before finance costs, income taxes, depreciation and amortization; EBITDA is commonly regarded as an indirect measure of operating cash flow  Free cash flow (FCF): cash flow provided by

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