Finning International Inc. · TSX:FTT
Finning International — Investor Presentation (September 2019)
11 slides from Finning International's investor presentation, Sep 23, 2019
Slide 1: Investor Presentation
INVESTOR PRESENTATION Scott Thomson, President and CEO Toronto, Montreal September 23-25, 2019
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
Slide 3: Finning Overview
Finning Overview Largest Caterpillar dealer Market Statistics(1) - FTT (TSX) Share price 23.17 Unrivalled service for over 85 years Market Cap 3.8B Diversified customer base S&P/DBRS rating BBB(+/high) Annual dividend / share 0.82 ~12,800 employees Dividend yield 3.5% Financial Statistics -
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
Slide 5: Canada – Priority Value Drivers
Canada – Priority Value Drivers Mining Leadership Lowest cost per ton; autonomy adoption; 797 enhancements Expand Exchange (OEM) Growing component exchange business through process and capability improvements Product Support / Performance Solutions Embracing technology to continuously improve custom
Slide 6: Improved Financial Performance
Improved Financial Performance SG&A as Percentage of Net Revenue(1) (%) 24% 22.7% 22% 20.3% EARNINGS 20% 19.0% TORQUE Adjusted ROIC(1) 18% 20% 18.1% 16.2% 15.0% 16% 14.2% 15% 13.2% 12.2% (2) 12.8% 2016 2017 2018 9.3% 10% Working Capital to Net Revenue(1) (%) 5.9% 32% 5% 30.4% 30% 0% Canada South Ame
Slide 7: Investor Value Proposition – Controlling the Controllables
Investor Value Proposition – Controlling the Controllables GROWTH OPPORTUNITIES Revenue Growth Infrastructure investment (e.g. LNG, TMX) - Net revenue up 9% year to date ended Q2 2019 - Line of sight into 2020 deliveries Canada Product support, including rebuilds Autonomy adoption Improved Return on
Slide 8: Positive Free Cash Flow Through the Cycle
Positive Free Cash Flow Through the Cycle $ millions 2013 2014 2015 2016 2017 2018 2019 E Adjusted EBITDA 737 749 604 465 577 633 Improved(2) Net capital expenditures (74) (63) (54) (70) (118) (182) Reduced by ~20%(2) Rental fleet additions (291) (264) (231) (170) (307) (306) Free cash flow 441 483
Slide 9: 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) 2,500 425 ~$1.9B 2,000 240 Retained cash 725 1,500 Debt repayment Reinvested in the business $1,225 M 1,000 200 400 500 Returned
Slide 10: Caterpillar Autonomy
Caterpillar Autonomy 20%+ Productivity Improvement vs Manned Fleet SCALABLE INTEROPERABLE RETROFITTABLE ~100 trucks and 250+ auxiliary with manned and Caterpillar 789D, 793F, 797F vs limited from competition competitive fleets Komatsu 930E-4 Caterpillar Autonomous Truck Population COMPETITION Larges
Slide 11: Finning Autonomy
Finning Autonomy Canada - Alberta, British Columbia South America - Chile Imperial Oil Teck Kearl (oil sands) QB2 794AC 797F Support Equipment Fleet Size 5-year product support 8 trucks As at Sep 2019 agreement Teck Cu QB2 HIGHLIGHTS(1) One of world’s largest undeveloped copper Highland Valley
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