Finning International Inc. · TSX:FTT

Finning International — Q4 2022 Earnings Presentation

12 slides from Finning International's earnings presentation, Feb 7, 2023

  1. Slide 1: Q4 and Annual 2022 Results

    Q4 and Annual 2022 Results Kevin Parkes Greg Palaschuk President and CEO EVP and CFO February 7, 2023 See slides 10 and 11 for important information on forward-looking information, currency, and specified financial measures, including non- GAAP financial measures

  2. Slide 2: Strong Execution in 2022

    Strong Execution in 2022 Drive Product Support Reduce Costs Reinvest to Compound 2022 Product Support Revenue 2022 SG&A as a % of net revenue (1) 2022 EPS 24 % to $4.6B 120 bps to 17.7 % 49 % to $3.25 from 2021 from 2021 from 2021 Adjusted EPS (1) Smooth CEO Transition, Continue to Execute on Our St

  3. Slide 3: Continued Momentum to Start 2023

    Continued Momentum to Start 2023 (1) Constructive Mid-Cycle Cost and Continued Momentum Demand Environment Capital Model to Start 2023  Favourable commodity prices  Further productivity gains  Record backlog maintained despite strong sales in Q4  Strength in mining, energy,  Optimizing working

  4. Slide 4: Q4 2022 Results

    Q4 2022 Results vs Q4 2021 Q4 2022 Summary Net Revenue (1)  Large mining deliveries and strong product support growth rates $2.4B 34 %  EBIT as % of net revenue (1) of 9.0%, led by South America at 11.4% and Canada at 11.0%, with UK & Ireland at 4.4%  Free cash flow (2) generation of $332 million

  5. Slide 5: Q4 2022 Net Revenue

    Q4 2022 Net Revenue Net Revenue by Line of Business Equipment Backlog $ Millions $ Billions 313 7 2,368 2.5 2.5 1.9 292 (33) 15 1,774 Q4 2021 Q3 2022 Q4 2022 Power Systems Mining $1,000 42% 21% Q4 2021 New Used Rental Product Fuel and Q4 2022 Equipment Equipment Support Other 4pts 10pts vs 17% in Q4

  6. Slide 6: Q4 2022 EBIT

    Q4 2022 EBIT All comparisons are to Q4 2021 results unless indicated otherwise EBIT $ Millions 135 (84) Q4 2022 EBIT Drivers  Gross profit up 30% on strong product support and new equipment volumes; gross profit as percentage of net revenue (1) down 80 basis 6 214 points due to a higher proportion

  7. Slide 7: Q4 2022 Results – Canada

    Q4 2022 Results – Canada Net Revenue EBIT Return on Invested Capital $ Millions $ Millions, as % of Net Revenue Adjusted, 4 Quarter Average 1,167 20.0% 24.0% 1,072 10.1% 11.7% 11.0% 180 18.2% 18.7% 914 16.9% 18.0% 10.0% 125 128 0.0% 120 92 12.0% -10.0% 6.0% 60 -20.0% 0 -30.0% 0.0% Q4 2021 Q3 2022 Q4

  8. Slide 8: Q4 2022 Results – South America

    Q4 2022 Results – South America Net Revenue EBIT Return on Invested Capital $ Millions $ Millions, as % of Net Revenue 4 Quarter Average 1000 840 12.3% 20.0% 10.1% 11.4% 24.5% 800 692 22.7% 20.3% 129 10.0% 582 96 600 85 0.0% 86 59 -10.0% 400 43 -20.0% 200 0 -30.0% Q4 2021 Q3 2022 Q4 2022 Q4 2021 Q3

  9. Slide 9: Q4 2022 Results – UK & Ireland

    Q4 2022 Results – UK & Ireland Net Revenue EBIT Return on Invested Capital $ Millions $ Millions, as % of Net Revenue 4 Quarter Average 361 343 24.0% 6.2% 4.3% 4.4% 10.0% 278 5.0% 17.0% 36 16.6% 14.8% 0.0% 16.0% 21 -5.0% 24 16 -10.0% 12 8.0% -15.0% 12 -20.0% -25.0% Q4 2021 Q3 2022 Q4 2022 0 0.0% -30

  10. Slide 10: 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

  11. Slide 11: 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

  12. Slide 12: 2023 Earnings Schedule

    2023 Earnings Schedule All dates and times are preliminary and subject to change Release Date Investor Call Time Quarter Investor Call Date after market close Eastern Q1 2023 May 8, 2023 May 9, 2023 10:00 AM Q2 2023 August 8, 2023 August 9, 2023 10:00 AM Q3 2023 November 7, 2023 November 8, 2023 10:

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