Finning International Inc. · TSX:FTT
Finning International — TD Securities Engineering & Construction Conference 2022
15 slides from Finning International's conference presentation, Mar 29, 2022
Slide 1: Investor Presentation
Investor Presentation Greg Palaschuk EVP and CFO TD Securities Engineering & Construction Conference March 29, 2022 See slides 14 and 15 for important information on forward-looking information, currency, and specified financial measures, including non- GAAP financial measures
Slide 2: Finning Overview
Finning Overview Market Statistics(1) - FTT (TSX) Canada South America UK & Ireland Share price 39.36 Largest Caterpillar dealer Market Cap 6.2B Bolivia S&P/DBRS rating BBB+/high Unrivalled service for nearly 90 years YT NU Annual dividend / share 0.86 NWT Dividend yield 2.2% Diversified by ge
Slide 3: Simple Execution Plan – 2021 Investor Day
Simple Execution Plan – 2021 Investor Day 3
Slide 4: 2021 Highlights
2021 Highlights Revenue Recovery >$2.00 EPS ROIC Expansion Strong Balance Sheet Net Revenue (2) Basic EPS Adjusted EPS Adjusted ROIC Net Debt / Adjusted EBITDA(1) 16% $2.26 $2.18 16.4% 1.1 2021 vs 2020 2021 Q4 2021 Q4 2021 Improved market activity Solid gross profit margins Revenue recovery Increase
Slide 5: 2021 & 2022 Key Themes: Upcycle and Shift to Growth
2021 & 2022 Key Themes(1) Upcycle and Shift to Growth Positive Drive Product Support Reduce Costs Reinvest to Compound Market Backdrop Product support revenue growth Continued demonstration of Mid-teens & above EPS growth Sustained Upcycle, 2021 Base strong operating leverage Sustained Upcycle, 2021
Slide 6: Hydraquip Acquisition to Drive Product Support Growth
Hydraquip Acquisition to Drive Product Support Growth(1) UK’s second largest provider of mobile hydraulic hose services Highly diversified customer base across Revenue(2) EBITDA(3) Employees Mobile Services Products & Parts Sales multiple industries and equipment types as % of 2021 revenue as % of
Slide 7: Canada
Canada Strong 2021 Performance Key Growth Drivers (1) Product Support Revenue 2021 vs 2020 10 % Western Canada GDP to grow ~4% in 2022 (2) Infrastructure investment in roadwork, pipelines, power EBIT as % of Net Revenue (3) 240 bps Strong commodity prices 2021 vs 2020, Adjusted 6x Increasing cap
Slide 8: South America
South America Strong 2021 Performance Significant Mining Potential (2) Product Support Revenue Technicians Employees Large and Strong Copper 2021 vs 2020, USD 9% Hired in 2021 Dec 31, 2021 Mature Fleets Fundamentals Net Revenue per Employee (1) 450 5,420 254 Copper price 2022 2021 vs 2016, USD 40
Slide 9: UK & Ireland
UK & Ireland Strong 2021 Performance Key Growth Drivers (1) Record Equipment Backlog (2) Cloud data centre markets in Q4 2021 vs Q4 2020 2 .5 x HS2 Phase 1 (2021 - 2024) £500M total industry opportunity UK and Ireland projected to grow at 5.5% p. a. until 2030 (3) Product Support Revenue 2021 vs 202
Slide 10: Energy Transition Opportunities
Energy Transition Opportunities(1) Product Portfolio Natural Gas Copper and Lithium CNG, RNG, Hydrogen CAT® 3512E Dynamic Cu Gas Blending Engine 7.2 Chile copper 9.6 Montney Shale natural 2027 production(2) 2030 gas production(3) 5.7 million tons million tonnes 6.5 Bcf / day 2020 2020 Zero-emissions
Slide 11: Reducing Our Carbon Footprint
Reducing Our Carbon Footprint Absolute Greenhouse Gas Emissions Reduction Target (1) Previous Target Significant Progress New Target 2017 2027 20% 31% 40% 2017 to 2027 2021 vs 2017 2017 to 2027, includes 4Refuel 2021 Emissions Reduction Initiatives Absolute GHG Emissions Drivers of Lower Emissions 1
Slide 12: Employee Safety, Wellbeing, and Development
Employee Safety, Wellbeing, and Development Total Injury Frequency Preventing Significant Injuries Professional Development 2021 virtual refresher training 2021 average training hours per employee 3.50 Critical Safety Standard # of Employees 3.00 3.21 12 % Cases per 200,000 exposure hours 2021 vs 20
Slide 13: Inclusion and Diversity
Inclusion and Diversity Promoting Workforce Diversity Broadening Inclusion UK & Ireland 1,540 Embedded Indigenous Guiding Principles into Women in leadership roles processes for recruitment, procurement, 2021 statistics new businesses and strategic relations, and community investment in Canada Canad
Slide 14: 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
Slide 15: 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). These variances and ratios
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